Market Preferences of Consumer in Buying Basic Commodities in Selected Areas of Cavite

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Market Preferences of Consumer in Buying Basic Commodities in Selected Areas of Cavite

MARKET PREFERENCES OF CONSUMER IN BUYING BASIC COMMODITIES IN SELECTED AREAS OF CAVITE

Submitted to the Faculty of the

College of Economics, Management and Development Studies

Cavite State University

Indang, Cavite

In partial fulfillment
of the requirements for the degree
Bachelor of Science in Business Management

April Joy L. Aquino

Mary Ann H. Leyran

MAY 2018

MARKET PREFERENCES OF CONSUMER IN BUYING BASIC COMMODITIES IN SELECTED AREAS OF CAVITE

April Joy L. Aquino

Mary Ann H. Leyran

An undergraduate proposal submitted to the faculty of the Department of Management, College of Economics, Management, and Development Studies, Cavite State University, Indang, Cavite in partial fulfillment of the requirements with the degree of Bachelor of Science in Business Management major in Business Economics with Contribution No. _______________. Prepared under the supervision of Ms. Thea Maries Perez[pic 1]

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INTRODUCTION

Consumers in the Philippines have the lowest per capita disposable income of the five main ASEAN countries. Moreover, sari-sari stores such as wet markets and independent small grocery retailers, represent about 70 percent of the country’s grocery market value sales. The abundance of traditional grocery retailers is due to the number of low income consumers, their close proximity to places of residence, and consumers’ ability to run a ‘tab,’ which is easier for villagers on seasonal incomes. However, modern grocery retailing is expected to grow in the future, while traditional independent retailers will see sales decline.

One of the modern grocery retailing that has an interesting area for the study where features of consumer behavior can easily be seen is Supermarket. It focuses on food products, which are needed by the consumers in daily basis, gives the impression that the consumers have little thought in purchasing than other product like cloths, mobile phones and cars. Nevertheless, consumers are exposed to variety of food product types which is diversified in price, quality, packages and size. Furthermore, consumer and buyer behavior is in fact an ongoing process, not merely indicates the interaction between consumers and producers at the time of purchase but it includes various stages in the consumption process: pre purchase issue, purchase issues and post purchase issue (Solomon, 2013, p. 32).

On the other hand, Hypermarkets achieved the highest sales of any modern retail channel, with SM hypermarkets being the most popular. Other popular modern grocery banners include: Pure Gold Price Club (hypermarket), Save More (neighbourhood store), Robinsons Supermarket (hypermarket) and Shop Wise (hypermarket). Only a few grocery retailers in the Philippines target middle to upper income consumers, such as Robinsons Choice Supermarket and Rustans’ Supermarkets, both located in Eastwood City, the latter of which has 22 outlets throughout the country. There is a particular trend among grocery retailers to open in mall locations, and sometimes create their own shopping centers, such as Walter Mart. These shopping centers act as anchor places for Filipino consumers looking to shop for groceries and non-food items, while also allowing them to eat and socialize (IBM Market Modern Retailing, April 2012).