50 Chapter III Research Methodology This chapter describes the research methodology carried out by the researcher. The structure of this chapter includes the research design, scale item development questionnaire and research variables, scope population, sample, data collection method, and data analysis used to answer the research question. III.1 Research Design This sub-chapter will emphasize research methodology, including research elements and design, to have a clear picture of research elements and step- by- step details in perfecting this research. This research begins by reviewing the literature on consumer vulnerability caused by the COVID-19 pandemic, mainly on how the state of vulnerability caused by the pandemic affects changes in decisions about saving, investing, consumer spending, and spending on charity during the pandemic. The research was continued as soon as the gap between vulnerability due to COVID-19 and changes in financial decisions during the new normal was discovered and recognized as a problem by conducting a literature review. Supporting analysis in the form of adding the factor of religiosity and social media usage was carried out to find a significant influence on the formation of individual vulnerability levels during a pandemic, as well as changes in personal financial decisions in the scope of investment, savings, consumption, and charity directly or through intermediaries the level of vulnerability that is formed. The scope and objectives of this study are then determined, as shown in Table III. 1. 51 Table III.1 Research Element Element Explanation Classification Quantitative Based Research Research Purpose Analyzing the impact of the pandemic on consumer vulnerability conditions and how this experience influences changes in personal financial decision in the new normal era as well as identifying significant direct and indirect effect of independent variables. Data Type Descriptive Data, Likert-Scale 7 Point Data Collection Online questionnaire using g-form Data Analysis Quantitative Data Processing Method Mann Whitney & Kruskall-Wallis, Wilcoxon test, SEM Research Instrument 16 Exogenous Variables, 1 Mediator Variable and 4 Endogenous Variables Data Population Indonesian Citizenships Needed Sample >200 Data Processing Tools Ms. Excel, SPSS, SmartPLS 4 Source : Author 51 This study employs the theory of vulnerability and changes in financial decisions that align with the perception of psychological reactance theory, which shows that acute stress can cause long-term reactions. Therefore, this research focuses on the potential for changes in financial decisions, consumption, and charity in the new normal era. This study will examine several factors that are thought to significantly influence the level of vulnerability and changes in personal financial decisions, such as demographic factors, personality traits, pandemic-related perceptions and attitudes, social media usage, religiosity, financial planning, and financial situation. A literature review was conducted to identify existing studies' variables, indicators, and questions to determine which measurement items are appropriate to answer research questions and achieve research objectives. Following the completion of the research instrument, the next step in this research is data collection. Questionnaires were distributed via Google Forms. After the sample has been thoroughly examined, the next step is data processing. The data processing process begins by eliminating missing values and inconsistent answers from the data. After that, the measurement model was tested. Validity and reliability tests are conducted on the measurement model using loading factor, Cronbach alpha, AVE (average variance extract), CR (composite reliability), and discriminant validity. Only after all indicators have been declared valid and reliable, the structural model can be evaluated. Structural model tests are carried out to determine the relationship between variables and the ability of the research model to represent reality. Finally, this study provides a different test of demographic factors using the Mann- Whitney and Kruskal Wallis tests on individual vulnerability levels. This study also provides a different test of financial decisions between the pandemic and the new normal era using the Wilcoxon rank test. The outcome of data processing using SEM is used to answer the hypothesis based on the path coefficient value. 52 Figure III.1 Flow chart of research process;source : author III.2 Scale Item Development and Questionnaire The questionnaire used in this research consists of two parts. The first part deals with the profiles and characteristics of the respondents. Then, the second part consists of question items with a 7-point Likert scale and multiple choice questions. The questionnaire is designed following the underlying theory and variable interests. The questionnaire was made by adopting questions from credible sources that had been measured using a scale validated in previous studies. The author built a consumer vulnerability index to capture the fear and concern of individuals caused by the pandemic. The term consumer vulnerability is used to describe various difficult situations consumers face. Generally, consumer vulnerability occurs when control is not in the hands of consumers, creating a state of dependence on external factors. Questionnaire question items are adapted from (Clarke et al., 1993; Cicirelli, 2002) using a Likert 7- point scale (1 = strongly disagree and 7 = strongly agree). 53 Participants were asked to report their agreements/disapproval with statements that capture their fear or worries caused by COVID-19 related to personal health, loved ones, professional life and financial conditions, social life, and concerns about death. The second is personality traits. Licata et al. (2003) measured personality characteristics first developed by Mowen (2000). Respondents were given a short phrase and asked, "how often do you feel/act like this?" (responses are reported on a scale of 7 points with 1 = never up to 7 = always). Next, the perception of the financial impact of the COVID-19 pandemic is considered a factor that can contribute to the level of vulnerability experienced by consumers. It aligns with previous research, which states that being helpless and uncontrolled produces vulnerability (Baker, et al., 2007). Therefore, adapting from previous research, the author measures respondents' perception of the world economy post-pandemic, the Indonesian economy after the pandemic, and their financial situation. In each question, participants get one point if they choose the answer option that indicates that they have a pessimistic view or the highest insecurity, four points if they have the simple view and average concern, and seven points if they have an optimistic view and slight fear. Each question regarding perceptions of the impact of COVID- 19 is presented in multiple-choice form. The final result is the average score of the three questions, worth between one and seven, where a score of one shows more perceptions and negative attitudes. More specifically, participants with a score of one believe that the local and global economy will be destroyed because of the pandemic, and their financial condition will be terrible. On the other hand, a participant with seven scores has a much more optimistic financial view and little or no fear. The author also measures respondents' attitudes towards Indonesia's health system (1 = very bad and 7 = very good). During the health crisis, the health system becomes a safety net whose strength can 54 reduce fear and worries related to the consequences of the pandemic, including the mortality rate. Previous research has also identified physical disabilities and poor health conditions as essential and relevant individual factors contributing to vulnerability (Baker, et al., 2005).