Article Sidebar

The Influence of Delayed Payment Obligation on Purchase Decision of Household Evidence from Nigerian Data
Submitted
October 16, 2022
Accepted
December 21, 2022
Published
December 24, 2022
Download
PDF
Statistic
Read Counter : 233 Download : 135

Downloads

Download data is not yet available.

Main Article Content

Abstract

The purpose of this study is to examine how delayed payment obligation influences household purchase decision in Nigeria. Unlike the large of existing studies, this study used binary regression model estimation and draws a dataset of 2019 General Household Survey with sample size of 2911 household for the analysis. The stylized facts from the dataset revealed more share of rural household than their counterparts in urban household. Interestingly, the results show that delayed payment obligation is positive and significantly influence purchase decision of household in Nigeria. But when the household is disaggregated into rural and urban household, the result shows that some household that barrowed from friends and family and household that reduced food consumption expenditure have positive and significant influence on purchase decision in both rural and urban household while household that received assistance from friends and family has positive and significant influence on purchase decision by rural household. This study recommends delayed payment obligation for important factor to drive purchase decision by household. This could be achieved through policy formulation that will promote delayed payment obligation.

Article Details

License
  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
How to Cite
Ojonta, O. I. (2022). The Influence of Delayed Payment Obligation on Purchase Decision of Household: Evidence from Nigerian Data. Unisia, 40(2), 369–390. https://doi.org/10.20885/unisia.vol40.iss2.art7
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Abdulqader, Q. M. (2017). Applying the binary logistic regression analysis on the medical data. Science Journal of University of Zakho, 5(4), 330. https://doi.org/10.25271/2017.5.4.388

  2. Abdul-Rahman, H., Berawi, M. A., Berawi, A. R., Mohamed, O., Othman, M., & Yahya, I. A. (2006). Delay mitigation in the Malaysian construction industry. Journal of Construction Engineering and Management, 132(2), 125–133. https://doi.org/10.1061/(ASCE)0733-9364(2006)132:2(125)

  3. Abotaleb, I. S., & El-adaway, I. H. (2017). Administering employers’ payment obligations under national and international design–build standard forms of contract. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 9(2), 04517003. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000213

  4. Adelino, M., Gerardi, K., & Willen, P. S. (2013). Why don’t Lenders renegotiate more home mortgages? Redefaults, self-cures and securitization. Journal of Monetary Economics, 60(7), 835–853. https://doi.org/10.1016/j.jmoneco.2013.08.002

  5. Adigwe, O. P., Onavbavba, G., & Wilson, D. O. (2022). Challenges associated with addressing counterfeit medicines in Nigeria: An exploration of pharmacists’ knowledge, practices, and perceptions. Integrated Pharmacy Research and Practice, 11, 177–186. https://doi.org/10.2147/IPRP.S387354

  6. African Development Bank. (2020). Annual Report 2019. African Development Bank. https://www.afdb.org/en/documents/annual-report-2019

  7. Agarwal, S., Ambrose, B. W. (Brent W., & Liu, C. (2006). Credit lines and credit utilization. Journal of Money, Credit, and Banking, 38(1), 1–22. https://doi.org/10.1353/mcb.2006.0010

  8. Aldcroft, D. H. (2014). Governance, institutions and corruption: Negative sovereignty in Africa. In Corruption, Good Governance and Economic Development (pp. 63–83). WORLD SCIENTIFIC. https://doi.org/10.1142/9789814612593_0005

  9. Amzat, J., Aminu, K., Kolo, V. I., Akinyele, A. A., Ogundairo, J. A., & Danjibo, M. C. (2020). Coronavirus outbreak in Nigeria: Burden and socio-medical response during the first 100 days. International Journal of Infectious Diseases, 98, 218–224. https://doi.org/10.1016/j.ijid.2020.06.067

  10. Arabi, K. A. M. (2019). Impact of shocks on the balance of payment evidence via MGARCH from Sudan. International Journal of Applied Economics, Finance and Accounting, 4(1), 1–9. https://doi.org/10.33094/8.2017.2019.41.1.9

  11. Armstrong, W. E. (1958). Utility and the “ordinalist fallacy.” The Review of Economic Studies, 25(3), 172. https://doi.org/10.2307/2295985

  12. Arora, N., Kaur, S., & Kaur, R. (2019). Demonetization impeded indian economic growth? Test of Hawtrey’s theory of business cycles. Indian Journal of Industrial Relations, 55(1), 1–14. https://www.jstor.org/stable/27124695

  13. Astari, D. W. & Kismiantini. (2019). Analysis of factors affecting the health insurance ownership with binary logistic regression model. Journal of Physics: Conference Series, 1320(1), 012011. https://doi.org/10.1088/1742-6596/1320/1/012011

  14. Aziz, B., Wasim, S., & Iqbal, Z. (2017). Consumption behavior and household economies of scale: An analysis of variations across rural-urban regions of Pakistan. International Journal of Health and Medicine, 2(3), 6. https://doi.org/10.24178/ijhm.2017.2.3.06

  15. Azuh, D. E., Azuh, A. E., Iweala, E. J., Adeloye, D., Akanbi, M., & Mordi, R. C. (2017). Factors influencing maternal mortality among rural communities in southwestern Nigeria. International Journal of Women’s Health, 9, 179–188. https://doi.org/10.2147/IJWH.S120184

  16. Cameron, L. A., & Worswick, C. (2003). The labor market as a smoothing device: Labor supply responses to crop loss. Review of Development Economics, 7(2), 327–341. https://doi.org/10.1111/1467-9361.00194

  17. Christiano, L. J., Eichenbaum, M., & Evans, C. (1996). The effects of monetary policy shocks: Evidence from the flow of funds. The Review of Economics and Statistics, 78(1), 16. https://doi.org/10.2307/2109845

  18. Corbett, J. (1988). Famine and household coping strategies. World Development, 16(9), 1099–1112. https://doi.org/10.1016/0305-750X(88)90112-X

  19. del Rio-Chanona, R. M., Mealy, P., Pichler, A., Lafond, F., & Farmer, J. D. (2020). Supply and demand shocks in the Covid-19 pandemic: An industry and occupation perspective. Oxford Review of Economic Policy, 36(Supplement_1), S94–S137. https://doi.org/10.1093/oxrep/graa033

  20. deRitis, C., Kuo, C., & Liang, Y. (2010). Payment shock and mortgage performance. Journal of Housing Economics, 19(4), 295–314. https://doi.org/10.1016/j.jhe.2010.09.003

  21. El-Habil, A., & El-Jazzar, M. (2014). A comparative study between linear discriminant analysis and multinomial logistic regression. An-Najah University Journal Research (Humanities), 8(6), 1525–1548. https://journals.najah.edu/media/journals/full_texts/8_3.pdf

  22. Etiaba, E., Onwujekwe, O., Uzochukwu, B., & Adjagba, A. (2015). Investigating payment coping mechanisms used for the treatment of uncomplicated malaria to different socio-economic groups in Nigeria. African Health Sciences, 15(1), 42. https://doi.org/10.4314/ahs.v15i1.6

  23. Ewelukwa, O., Onoka, C., & Onwujekwe, O. (2013). Viewing health expenditures, payment and coping mechanisms with an equity lens in Nigeria. BMC Health Services Research, 13(1), 87. https://doi.org/10.1186/1472-6963-13-87

  24. Ezeoke, O. P., Onwujekwe, O. E., & Uzochukwu, B. S. (2012). Towards universal coverage: Examining costs of illness, payment, and coping strategies to different population groups in southeast Nigeria. The American Journal of Tropical Medicine and Hygiene, 86(1), 52–57. https://doi.org/10.4269/ajtmh.2012.11-0090

  25. Fuster, A., & Willen, P. (2013). Payment size, negative equity, and mortgage default (No. w19345; NBER Working Paper, p. w19345). National Bureau of Economic Research. https://doi.org/10.3386/w19345

  26. Gautam, C. S., Utreja, A., & Singal, G. L. (2009). Spurious and counterfeit drugs: A growing industry in the developing world. Postgraduate Medical Journal, 85(1003), 251–256. https://doi.org/10.1136/pgmj.2008.073213

  27. Haggblade, S., Hazell, P., & Reardon, T. (2010). The rural non-farm economy: Prospects for growth and poverty reduction. World Development, 38(10), 1429–1441. https://doi.org/10.1016/j.worlddev.2009.06.008

  28. Hawtrey, R. G. (1927). The monetary theory of the trade cycle and its statistical test cycle and its statistical test. The Quarterly Journal of Economics, 41(3), 471. https://doi.org/10.2307/1883702

  29. Heller, D., & Lengwiler, Y. (2003). Payment obligations, reserve requirements, and the demand for central bank balances. Journal of Monetary Economics, 50(2), 419–432. https://doi.org/10.1016/S0304-3932(03)00011-4

  30. Hope, K. R., Sr. (2017). Fighting corruption in developing countries: Some aspects of policy from lessons from the field. Journal of Public Affairs, 17(4), e1683. https://doi.org/10.1002/pa.1683

  31. Klantschnig, G., & Huang, C. (2019). Fake drugs: Health, wealth and regulation in Nigeria. Review of African Political Economy, 46(161), 442–458. https://doi.org/10.1080/03056244.2018.1536975

  32. Kochar, A. (1999). Smoothing consumption by smoothing income: Hours-of-work responses to idiosyncratic agricultural shocks in rural india. Review of Economics and Statistics, 81(1), 50–61. https://doi.org/10.1162/003465399767923818

  33. Kwon, H. D., Lippman, S. A., McCardle, K. F., & Tang, C. S. (2010). Project management contracts with delayed payments. Manufacturing & Service Operations Management, 12(4), 692–707. https://doi.org/10.1287/msom.1100.0301

  34. Lorenzoni, G. (2009). A theory of demand shocks. American Economic Review, 99(5), 2050–2084. https://doi.org/10.1257/aer.99.5.2050

  35. Mcdonald, J. T. (1999). The determinants of firm profitability in Australian manufacturing. Economic Record, 75(2), 115–126. https://doi.org/10.1111/j.1475-4932.1999.tb02440.x

  36. Mehar, M., Mittal, S., & Prasad, N. (2016). Farmers coping strategies for climate shock: Is it differentiated by gender? Journal of Rural Studies, 44, 123–131. https://doi.org/10.1016/j.jrurstud.2016.01.001

  37. Nwosu, E. O., Ojonta, O., & Orji, A. (2018). Household consumption expenditure and inequality: Evidence from Nigerian data. International Journal of Development Issues, 17(3), 266–287. https://doi.org/10.1108/IJDI-06-2017-0113

  38. Obembe, T. A., Bankole, O. T., Abbas, G., & Ajayi, I. O. (2020). Healthcare service payment methods and coping strategies of nomads and labor migrants in Oyo Atate, Nigeria. The American Journal of Tropical Medicine and Hygiene, 102(5), 1022–1029. https://doi.org/10.4269/ajtmh.18-0615

  39. Odeh, A. M., & Battaineh, H. T. (2002). Causes of construction delay: Traditional contracts. International Journal of Project Management, 20(1), 67–73. https://doi.org/10.1016/S0263-7863(00)00037-5

  40. Ojonta, O. I. (2023). Influence of credit access on the total sales of household non-farm enterprises in Nigeria: Evidence from binary logit regression. International Journal of Economics and Business Research, 25(1). https://doi.org/10.1504/IJEBR.2022.10038249

  41. Ojonta, O. I., Obodoechi, D. N., & Ugwu, P. N. (2021). Start-up capital source and credit access participation of household nonfarm enterprises in nigeria: Evidence from logistic regression model. Managing Global Transitions, 19(3), 249–267. https://doi.org/10.26493/1854-6935.19.249-267

  42. Ojonta, O. I., & Ogbuabor, J. E. (2021). Credit access and the performance of non-farm household enterprises: Evidence from Nigerian data. International Journal of Sustainable Economy, 13(1), 72. https://doi.org/10.1504/IJSE.2021.113318

  43. Okiemy, M., & Mbongo, K. G. (2021). Effects of the oil shocks, interest rate, and current account balance on the sovereign debt of CEMAC member countries. Modern Economy, 12(1), 194–214. https://doi.org/10.4236/me.2021.121010

  44. Omaka-Amari, L. N., Aleke, C. O., Obande-Ogbuinya, N. E., Ngwakwe, P. C., Nwankwo, O., & Afoke, E. N. (2020). Coronavirus (Covid-19) pandemic in Nigeria: Preventive and control challenges within the first two months of outbreak. African Journal of Reproductive Health, 24(2), Article 2. https://www.ajrh.info/index.php/ajrh/article/view/2294

  45. Omotoyinbo, C., Worlu, R., & Ogunnaike, O. (2017). Consumer behaviour modelling: A myth or heuristic device? Perspectives of Innovations, Economics and Business, 17(2), 101–119. https://doi.org/10.15208/pieb.2017.09

  46. Onwujekwe, O. E., Uzochukwu, B. S., Obikeze, E. N., Okoronkwo, I., Ochonma, O. G., Onoka, C. A., Madubuko, G., & Okoli, C. (2010). Investigating determinants of out-of-pocket spending and strategies for coping with payments for healthcare in southeast Nigeria. BMC Health Services Research, 10(1), 67. https://doi.org/10.1186/1472-6963-10-67

  47. Onyeaghala, A. A., & Olajide, I. (2020). Managing Covid-19 outbreak in Nigeria: Matters arising. Clinical Chemistry and Laboratory Medicine (CCLM), 58(10), 1645–1650. https://doi.org/10.1515/cclm-2020-0748

  48. Peng, C.-Y. J., Lee, K. L., & Ingersoll, G. M. (2002). An introduction to logistic regression analysis and reporting. The Journal of Educational Research, 96(1), 3–14. https://doi.org/10.1080/00220670209598786

  49. Qi, M., Scheule, H., & Zhang, Y. (2021). Positive payment shocks, liquidity and refinance constraints and default risk of home equity lines of credit at end of draw. The Journal of Real Estate Finance and Economics, 62(3), 423–454. https://doi.org/10.1007/s11146-020-09752-x

  50. Rothan, H. A., & Byrareddy, S. N. (2020). The epidemiology and pathogenesis of coronavirus disease (COVID-19) outbreak. Journal of Autoimmunity, 109, 102433. https://doi.org/10.1016/j.jaut.2020.102433

  51. Runyon, K. E., & Stewart, D. W. (1987). Consumer behaviour and the practice of marketing (3rd edition). Merrill Publishing Company.

  52. Tracy, J. S., & Wright, J. (2012). Payment changes and default risk: The impact of refinancing on expected credit losses. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2080261

  53. Tuccio, M., Wahba, J., & Hamdouch, B. (2019). International migration as a driver of political and social change: Evidence from Morocco. Journal of Population Economics, 32(4), 1171–1203. https://doi.org/10.1007/s00148-019-00734-9

  54. Yogesh, F., & Yesha, M. (2014). Effect of social media on purchase decision. Pacific Business Review International, 6(11), 45–51. http://www.pbr.co.in/2014/2014_month/May/9.pdf