0b8xv 3ltnf PDF

Republic of the Philippines
Department of Education
REGION II- CAGAYAN VALLEY
SCHOOLS DIVISION OF CAGAYAN
TUAO VOCATIONAL AND TECHNICAL SCHOOL
NARUANGAN, TUAO,CAGAYAN
BASIC COMMODITIES PRICE HIKE: ITS EFFECT TO CONSUMERS IN
NARUANGAN, TUAO EAST, CAGAYAN
A RESEARCH PRESENTED TO THE SENIOR HIGH SCHOOL
DEPARTMENT OF TUAO VOCATIONAL AND TECHNICAL SCHOOL
NARUANGAN, TUAO EAST, CAGAYAN IN PARTIAL FULFILLMENT OF
THE COURSE REQUIREMENTS IN INQURIES, INVESTIGATIONS AND
IMMERSION (3 I’S)
By:
Jaycel T. Calagui
Justine Anne Miguel
Jamie Ruth Baddal
Erika Laurente
April 2020
1
__________________________________________________________________________________________________
Address: Naruangan, Tuao, Cagayan
Email Address: tvtsmain@gmail.com
Mobile Number: 09175198475
ACKNOWLEDGEMENT
The researchers wish to express their sincere and heartfelt gratitude to the following
who have helped them in making this research study successful.
First, the 3I’s (Inquiries, Investigation and Immersion) teacher, Mrs. Marvelyn M.
Catubag for the patience, motivation, immense knowledge and for her endless support
on this research that has been a factor for the improvement, completion and success of
the study.
To Mrs. Corazon A. Camayang, the principal of Tuao Vocational and Technical
School Main Campus for her approval on the conduct of this research study.
We would also want to express our sincerest gratitude to the Barangay Captain of
Naruangan, Tuao East, Cagayan, Mr. Godofredo Corsino who provided insights and
expertise that greatly assisted the researchers and for his recommending approval.
To our statistician Mr. Rogelip Tabbil for the assistance in the computation of the
gathered data.
To our dear panellist, for being part of the success of this study by evaluating and
improving the research study.
2
__________________________________________________________________________________________________
To the consumers and entrepreneurs of Barangay Naruangan, for extending their
time and for the active participation as respondents during the conduct of the study.
To the loving parents, relatives and friends for their support throughout the second
semester of writing this research study and their lives as general.
Above all, to the ALMIGHTHY GOD, for his blessings and for giving us the success
in this research.
- The Researchers
3
__________________________________________________________________________________________________
DEDICATION
It is with genuine gratefulness and warmest regard that the researchers dedicate this
work to:
 Our Lord Jesus Christ, our creator, our source of wisdom, for all the blessings, love,
guidance and forgiveness.
 The great parents who never stop to love and support them for their whole life, for
the understanding, patience, hard work and leading them through the valley of
darkness with hope.
 Their friends who make them laugh when they are lonely, who encourage them
when they almost give up and sometimes who stand as parents who give some
bucket of advice;
 The Tuao Vocational and Technical School main campus, their second magnifcent
home;
 All the people in their life who never left them through ups and downs of their life;
 May you see the gratitude, hard works and taste the satisfaction of their eforts in
in what they shall become in the future.
4
__________________________________________________________________________________________________
- The Researchers
TABLE OF CONTENTS
5
__________________________________________________________________________________________________
ABSTRACT
This study aimed to determine the efects of basic commodities price hike to
the consumers in Naruangan, Tuao East, Cagayan and to know what basic
commodities had increased from the months of July to December 2019. This study
utilized descriptive survey method to assess the efects of basic commodities price
hike and to see if they were signifcant factor in afecting the lives of consumers in
Naruangan Tuao, Cagayan. Questionnaires were given to the respondents and were
collected after gathering all the results. This research used quantitative methods to
access the feedback and responses from the respondents. After statistically
analysing the data gathered, it is then proved that there is great efect of basic
commodities price hike to the lives of consumers in Narunangan, Tuao, Cagayan
and there is a continuous increase in the prices of each commodity form the Months
of July to December 2019.
6
__________________________________________________________________________________________________
CHAPTER 1
The Problem and Its Background
This chapter includes the background of the study, statements of the
problem, signifcance of the study, conceptual framework, scope and
delimitation and defnition of terms used.
Background of the Study
In today’s generation of business related matters, there are many things
that are currently changing. One of these issues is the rapid increase in the
prices of goods and commodities. . Basic commodities are the main needs of
the consumers in order to live and survive. This is one of the most signifcant
things that the human need to attain and fulfl his/her desires. When the prices
of basic commodities increases many consumers are complaining about the
increase of prices and this issue both afects the consumers and entrepreneurs.
Many entrepreneurs are implementing price increase to cope up with the
economic status and to make the business proftable. As the prices of basic
7
__________________________________________________________________________________________________
commodities increases the entrepreneur also added additional price to the
products they will going to sell.
Data released by the Philippine Statistic Authority (PSA) showed infation
reached 6.4% in August 2018. This has brought the average infation for the
year to 4.8 percent.
”Higher Prices” particularly higher food prices hurts the poor households more
since 60% of their budget is spent in food. The increase in the prices of
products in August 2018 was signifcantly higher than the government’s full
year target of 3.5 to 4.5% infation. This was also higher than economist’s
expectation that infation would reach or peak at 6%.
More Filipinos fall deeper into poverty, given the high commodity prices
being experienced by households nationwide for the past eight months.
Price is the amount a consumer pays for a product or the sum of the values
that consumers exchange for the benefts of having or using a product or
service.
The greater the importance of prices in purchases decisions, the greater the
intensity of inform and greater amount of comparison between competing
brands.
8
__________________________________________________________________________________________________
Consumers are the most important elements in the business because
without consumers the business will no longer proftable and functional. As
the prices of every products increase, consumers tend to ask questions in
every store or establishment regarding the reason of sudden increase in the
prices of products. Many of them are having a hard time to make decision if
they will go to buy or make an alternative.
The researchers observed that there is increase in the prices of basic
commodities in Naruangan, Tuao East, Cagayan. The research study of
Vanessa Olarte entitled ”Factors Afecting the price increase of basic products
among sari-sari stores in Naruangan Tuao Cagayan” shows that there is a great
infation that is happening in Naruangan Tuao Cagayan. There is a research
conducted about the Factors afecting the Price Increase of basic products
among Sari-sari store but there is no such research conducted as to its efect to
the Consumers.
Based on the observation of researchers, consumers are always
complaining on the amount of products that they are going to buy and some
consumers endures the prices of every products even if the amount is too
much high, just to satisfy their needs and wants.
9
__________________________________________________________________________________________________
In addition, people are sacrifcing not to buy “Pitchi-Pitchi” everyday
because it is more expensive. Instead they prefer to buy on market days
(Thursday and Sunday) because they can save some of their money.
These are the reasons that prompted the researchers to conduct the study.
Statement of the problem
The study aimed to determine the efects of commodity price hike among
consumers in Naruangan from July to December 2019.
Specifcally, it sought to answer the following questions:
1. What is the profle of the respondents in terms of;
a. Gender
b. Occupation
c. Monthly Income
2. What basic commodities have increased for the past six months?
10
__________________________________________________________________________________________________
3. What are the efects of basic commodities price hike among consumers in
Naruangan Tuao East Cagayan?
4. Is there a signifcant diference on the prices of basic commodities from the
months of July – December?
Hypotheses
Ho1: There is no signifcant diference between the basic commodities that
increase in month of July-December 2019.
Significance of the study
The results of the study are benefcial to the following:
Students. The results of the study will help the students budget their daily
allowances.
Entrepreneurs. The results of the study will let the entrepreneurs know the
impacts on the increase of the prices of products on their businesses.
Consumers. The results of the study will help the consumers to know the
reasons behind the continuous increase in the prices of basic commodities and
to let them budget their daily money.
11
__________________________________________________________________________________________________
Community. The results of the study will help the people in the community to
budget their daily money efectively.
Future Researchers. The results of the study will help them to conduct
parallel studies on the subject.
Scope and Delimitation
This study was limited only within the 186 consumers of Naruangan,
Tuao, Cagayan for the months of July to December 2019. The researchers
used stratifed sampling technique in distributing the survey questionnaire to
the respondents.
Determining the products that increased for the past 6 months and its
efect to the consumers was the focus of this research.
Definition of terms
For better clarifcation and understanding of the terms related to this
study, the following terms are defned conceptually and operationally.
Consumers. Are the individuals who buy and consumer products or services.
Entrepreneurs. An individual who creates new business and sells products.
12
__________________________________________________________________________________________________
Basic Commodities. Are the materials that satisfy human wants needs and
the main needs of the consumers in order to live and survived.
Price. Is the amount of consumer pays for a product or the sum of the values
that consumers exchange for the beneft of having or using a product or
services?
Price Increase. Is the increase of prices among basic commodities.
Conceptual Framework
The major concept of this study is to know the efects of the increase in
the prices of basic commodities among consumers in Naruangan, Tuao,
Cagayan. This study is based on the factors afecting the lives of consumers
and on the increase of prices of basic commodities. There are many factors
that afect the decisions of the consumers and when it comes to buying
products.
INPUT PROCESS OUTPUT
 Profle of  Survey  Efects of basic

respondents in  Floating of commodities
terms of: Questionnaire price hike to the
a. Occupation  Data Gathering consumers in
13
b. Month  Data Analysis Naruangan, Tuao,
__________________________________________________________________________________________________
income
Address:  Data
Naruangan, Tuao, Cagayan Cagayan.
c.Email
Gender
Address: tvtsmain@gmail.com Interpretation
 Basic
commodity
Figure 1. The Conceptual Framework of the study
The input contains the profle of the respondents in terms of occupation and
monthly income, the basic commodities that increase in last six months and
the efects on the increase of prices of basic commodities among consumers in
Naruangan, Tuao, Cagayan. On the process, the researchers asked permission
to the Barangay Captain of Naruangan, Tuao, Cagayan to gather information
to the people used in the study and also the researchers asked permission to
the Principal to conduct the of study. These are the materials used to gather
14
__________________________________________________________________________________________________
information the data gathering, data analysis and data interpretation. And the
output contains the analysis on the Efects of the Increase on the prices of
basic commodities among consumers in Naruangan, Tuao, Cagayan.
CHAPTER II
Review of Related Literature and Studies
This chapter presents the additional idea for better understanding of the
researchers. This chapter also presents the Efects of the increase of prices of
products among consumers and entrepreneurs in Naruangan, Tuao, Cagayan.
Price Increase
According to the study of Bearden et al (2004) as retrieved by the International
Journal of Research in Management, Science and Technology, Price is the

15
__________________________________________________________________________________________________
amount a consumer’s pays for a product or the sum of the values that
consumers exchange for the benefts of having or using a product or service.
Increase in price is the amount by which something increases. Price Increase is
the increase of prices among the products. The prices are increasing each
time. It is typically the result in reduced consumers demand. Many of the
business will eventually increase prices to deal with things in regards to
economic growth. The price determines what products/services could be
produced and in what quantities. There are diferent ways in which the price of
the products is determined. These are the foremost strategies that business
use like Competition based pricing, Cost-plus pricing, Creaming or skimming,
limit pricing, Loss leader, Market-oriented pricing, Penetration pricing, Price
discrimination, Premium pricing, Predatory pricing, Contribution margin-based
pricing, Psychological pricing, Dynamic pricing, Price leadership, Target pricing,
Absorption pricing and Marginal-cost pricing. As their name it explains the
method of pricing.
I. EFFECTS OF THE INCREASE OF BASIC COMMODITIES AMONG
CONSUMERS
According to Mian, Rao and Suf (2013), if consumers expect increase in prices
of products to be higher they increase present consumption as results of

16
__________________________________________________________________________________________________
wealth- redistribution channel, given that they have higher marginal
propensities to consumer out of their wealth.
In addition, higher increase in the prices of products serve as implicit task on
paper money use by households as a medium of exchange and as a results
higher increase in the price of products periods leads to lower consumer
spending in an economy since disposable income reduces.
Periods in the increase of prices of products infuences consumers to save
rather than consume because of pessimism and uncertainty in the economy.
Increase in prices again infuence consumers spending behaviour by
infuencing both liquid and illiquid assets since in period of increase in the
prices of products, there is motivation to hold real assets and not assets fxed
to nominal values or not indexed to increase in the price of products. As stated
by the Consumer theory is concerned with how a rational consumer would
make consumption decisions (Martijn 2011). The consumer theory arises
because the consumer‘s choice sets are assumed to be defned by certain
prices and the consumers income or wealth. Similarly, if the consumers think
that high price goods are more likely to perform in a satisfactory way that
would suggest quite a diferent formulation.
Consumers and determination of price is necessary for every organization. As
this both consumers and price have a high relation to the demand for products.
17
__________________________________________________________________________________________________
Even there is a small increase in price levels it will highly afect the demand for
the product and the organization proft. Increases in the cost of food have two
efects on consumer, the income efect and the substitution efect, which occur
simultaneously. The substitution efect refers to the decrease in consumption
of the good whose price has increased, with its substitution by relatively
cheaper goods (Dorward, 2012). In the case of increases in food prices, the rise
in the price of food in relation to the price of other goods will result in a
decrease in the demand for food (Ligon, 2008). The income efect takes place
because the increase in a good’s price causes an increase in the total cost of
purchases (Dorward, 2012). According to the author, this leads to a fall in real
income, pushing downward the consumption of all goods and services, and
resulting in reduced consumer welfare.
a. Consumers Satisfaction
Based on the Journal of Marketing and Consumer Research said that
“satisfaction is a person’s feelings of pleasure or disappointment that result
from comparing a product perceived performances (outcome) to expectations”
(Kotler and Keller 2012). Whereas, the consumer’s satisfaction according to
Jahan Shahi et al (2011) consumer’s satisfaction is the result of a consumer’s
perception of the value received in the transaction or relationship-where equals

18
__________________________________________________________________________________________________
perceived service quality relative to price and consumers acquisition cost.
However, it is in contrast to with the research to Tu et al (2013), which
indicated that “consumers satisfaction is viewed as infuencing repurchasing
intentions and behaviour which, intern, leads to an organization’s future
revenue and profts”.
Consumer’s satisfaction is a consumer’s feedback in the form of evaluation
after purchasing some goods and services compared with consumers
expectations. Consumers’ satisfaction is measured by using consumers’
expectation with the performance of goods or services that can meet the needs
and desires of the consumers. A satisfed consumer means that there are
similarities between the performance of the goods and services with the hope
of consumers’, where it will encourage them to re-purchase the products. At
the same time, a disappointed consumer would persuade the other consumers
to not repurchase and as a result, they will move to another brand competitor.
Consumer’s satisfaction is a word that is commonly used in marketing; it is how
company produces product and services that meet consumers need and want
that they can easily earn maximum proft by satisfying those needs. (Oliver
1981). Consumer satisfaction is considered an emotion-based reaction which is
determined by consumer expectations for product or service in advance of
19
__________________________________________________________________________________________________
purchases are stable with the real product or service gained resulting purchase
(Oliver 1981).
Raymond A. Bauer (1967) introduced the notion of ―perceived risk to
consumer behaviour research. He suggested, ―Consumer behaviour involves
risk in the sense that any action of a consumer will produce consequences
that he cannot anticipate with anything approximating certainty, and some of
which are likely to be unpleasant.
Whereas, if consumers is not satisfed from the price of the products, they will
eventually save their money than to buy their needs. (Jahanshahi et al. 2011).
Consumer’s satisfaction is measured by using the consumers’ expectations
with the performance of the goods or services that can meet the needs and
desires of the consumers. A satisfed consumers means that there are
similarities between the performance of the goods and services with the hope
of the consumers, where it will encourage them to re-purchase the products. At
the same time, a disappointed consumer would persuade the other consumers
to not re-purchase and as a result, they will move to another brand competitor.
Kotler and Armstrong (2012) defned that “consumer’s satisfaction is the
extent to which a product’s perceived performance matches a buyer’s
expectations.”
20
__________________________________________________________________________________________________
Consumers Satisfaction is a term used by the companies that the products or
services ofered meet or surpass the expectation of their consumers. Greenwell
describes consumer’s satisfaction as the post purchase, judgement, connected
with the purchase decision and tends to return again back for the purchase
(2002). In addition to that, Oliver argued that consumers satisfaction as a
psychological behaviour and in action.
Consumer’s satisfaction has shown itself to be an increasingly important
determinant of a business’s success and this arguably more so in relation to
the cafe industry. Studies have been undertaken whereby it was concluded
that satisfed consumers are central to the long term success of a business. It
should be mentioned that the linkage between consumer satisfaction and
consumer behaviour (return consumers patronage) has been well documented
in marketing literature. Consumer’s satisfaction is defned in Oliver’s (1997)
study as the consumer’s fulflment response. It is a judgement that a product
or service feature, or the product or service itself, provides a pleasurable level
of consumption related fulflment. In other words, it is the overall level of
contentment with a service/product experience (Andaleeb & Conway, 2006)
Anderson and Fornell (2000) assume business exist and compete to create
satisfed consumers. Investors are attracted to companies that can perform
well at satisfying their consumers. It emphasizes that business prosperity

21
__________________________________________________________________________________________________
would not be able to bloom without increasing consumers satisfaction. It is not
the amount of goods and services so they will return and keep the business
growing.
The early study on consumer’s satisfaction emphasized those achieving high
consumers satisfaction can generate more new and repeat purchases and
favourable word-of-mouth communication, which in turn will lead to higher
revenue and profts (Tam, 2011). At early studies, researchers have also found
a strong relationship between satisfaction and loyalty as shown by study by
Bearden and Teel in 1983 (Andaleeb & Conway, 2006). Study by Szymanski
and Herald in 2001 in their met analysis, also indicated 15 positive and
signifcant correlations between the two constructs. However, in fact Jones et
al. in 1995 argue that this relationship is not a simple linear one but according
to several cause-related attributes.
b. Consumers Value
Monroe(1990), defnes that “consumers value is buyers perceptions of value
represent a trade-of between the quality or benefts they perceive in the
product relative to the sacrifce they perceived by paying the price”, while
22
__________________________________________________________________________________________________
Naumann (1995) showed that “consumers value is created when consumers
expectation in each of the three areas are met or exceeded. Only when all
three are in harmony will be maximized consumers value”. Therefore, Ma and
Ding (2010) and Sugiarti have a diferent perspective concerning the
consumer’s value taught “consumers value is directly related to the beneft
that a product or services”, whereas Sugiarti et al. (2013) conclude that
“consumers value is an evaluation of the beneft of a product or service that is
perceived by consumers as Compared to what they had dedicated to get the
product or service”.
Consumer’s value is seen as a ratio of the benefts felt by the consumers along
with its sacrifce. The implementation of this sacrifce is in line with the
exchange process such as transaction costs and the risk of the products
ofered by the company. Henceforth, there will be disappointment when the
ratio value that is perceived by the economic sacrifces of the consumers with
the product ofered by the company is not in accordance with consumer’s
expectation. Otherwise, when the ratio value is appropriate or exceeding the
consumer expectations, consumers will feel such satisfaction. Another idea
about consumer’s value is that it is the perception of the consumers about the
quality and the beneft of toothpaste toward the sacrifce to pay the price.
23
__________________________________________________________________________________________________
Consumers value can be measured by functional value, emotional value, and
social value (Kotler and Keller, 2012; Aff and Astuti, 2009; Shoki, 2012).
Consumer value is “the fundamental basis for all marketing activity” (Agwu
2013) and high value is one primary motivation for consumer patronage. Some
consumer associate high value with high price. Monroe (1979, 1990) has led an
intellectually productive research stream that has its origins in the study of
price. The frst study is focused on the categorization and analysis of the
quality-price relationship. This led to the initial conceptualization of value as
the psychological.
According to Zeithaml (1988), from the consumer view, “price is what is given
up or sacrifced to obtain a product or service”. Bei and Chiao (2001) indicated
that “the price is defned as what is given up or sacrifced to acquire a service
or product”, while Kotler and Armstrong (2012) suggested that “Price is the
amount of money charged for a product or a service; the sum of the values
that consumers exchange for the benefts of having or using a product or
service “ How consumer perceive a certain price, in which the high-low price of
a product can be a signifcant efect on a consumer intention to purchase the
product. Consumer will give an attention to the price paid by other consumer,
no one is happy to pay more cash compared to other consumer. The fairness of
the price will infuence the perception of the consumer and it ultimately will
24
__________________________________________________________________________________________________
infuence their willingness to become a consumer. For toothpaste products, the
price is the amount of money that is taken out for a toothpaste; consumer
value that is exchanged to get the beneft from the ownership or use of a
toothpaste. Kotler and Keller (2012) and Kusdiyah (2012) defned price as
something that can be measured which consists of several indicators, such as
the afordable price, the fair price, discounted price, competitor price, and price
suitability.
The efect of the price increase of products on the consumption patterns of
consumer unlike the efect of income on consumer expenditure has not
received the needed attention in the marketing environment literature both
theoretically and empirically. The efect of the increase in the price of products
on consumer spending is both direct and indirect (Katona, 1975). Periods of
increase in the price of products, infuences consumer to save rather than
consume because of pessimism and uncertainty in the economy. The increase
in the price of products again infuence consumer spending behaviour by
infuencing both liquid and illiquid assets since in period of the price increase of
products, there is motivation to hold real assets and not assets fxed to nominal
values or not indexed to the increase in the price of products. Household’s
income distribution (employers, employees, debtors and creditors) is changed
by the increase in the price of products (Howard, 1978). Increase in the price of
25
__________________________________________________________________________________________________
products may erode the real value of nominal assets and reduces the real
value of wealth held in those assets by the households. Cash-out mechanism
(mortgage equity withdrawal) in the presence of a long term interest rate in an
economy may results from the increase in the price of products since price
increase determines nominal interest rate and savings. Studies have examined
the conditions under which the increase in the price of products infuence
consumer spending in an economy using both survey data and time series
data.
c. Importance of Price Decisions
According to Munroe (2003), pricing a product or service is one of the vital
decisions management makes. Pricing has been viewed as the major pressure
point for managerial decision making hence its importance. Munroe examined
the environmental pressures that allowed for an increased pressure on the
importance of pricing. The importance of pricing can be examined with faster
technological progress, proliferation of new products, increased demand for
service, increased global competition, the changing legal environment, and
economic uncertainty.
In the 20th century, the understanding of entrepreneurship owes much to the
work of economist Joseph Schumpeter in the 1930s and other Austrian

26
__________________________________________________________________________________________________
economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek. In
Schumpeter, an entrepreneur is a person who is willing and able to convert a
new idea or invention into a successful innovation. Entrepreneurship employs
what Schumpeter called “the gale of creative destruction” to replace in whole
or in part inferior innovations across markets and industries, simultaneously
creating new products including new business models. In this way, creative
destruction is largely responsible for the dynamism of industries and long-run
economic growth, [Kotler, 2006]. The proposition that entrepreneurship leads
to economic growth is an interpretation of the residual endogenous growth
theory and Kirzner as such, is hotly debated by academic in economics. An
alternate, description posited by, according to Baunmol, (1990) suggests that
majority of innovations may be much more of incremental improvement.
Entrepreneurship concept, like other concept has no specifc or single
defnition. It has been defned in diferent ways by many authors, according to
their understanding of the view or of the subject matter. For instance, Baumo
(1990) defnes entrepreneurship as “a practical 11 creativeness, which
combines resources and opportunities in new ways. It involves the application
of personal qualities, fnances and other resources within the environment for
the achievement of business success”. Barro (1997) sees entrepreneurship as
the process of using available capital in any form, for the business in an open
27
__________________________________________________________________________________________________
and free market economy for the sole purpose of making proft and it includes
all enterprises in new felds.
Entrepreneurship is the act of being an entrepreneur, which is a French word
meaning “one who undertakes innovations, fnance and business acumen in an
efort to transform innovations into economic goods”. This may result in new
organizations or may be part of revitalizing mature organizations in response to
a perceived opportunity. The most obvious form of entrepreneurship is that of
starting new businesses (referred as Startup Company); however, in recent
years, the term has been extended to include social and political forms of
entrepreneurial activity. When entrepreneurship is describing activities within a
frm or large organization it is referred to as intra-premiership and may include
corporate venturing, when large entities spin-of organizations.
Entrepreneur is any person who coordinates other factors of production and
bears the risk of uncertainty by investing his scarce resources in the business
venture. He also takes the managerial decision such as planning, stafng,
organizing, developing and controlling the business organization. A person who
is willing to risk his capital and other resources in a new business venture from
which he expects substantial rewards, if not immediately, out in the
foreseeable future at least.
28
__________________________________________________________________________________________________
Empirically, a lot of research work has been carried out on the efects of
marketing strategy such as promotion and market segmentation on the
entrepreneurial development of the economy. Majority of the researches do not
focus on the development of enterprise and this poses a challenge because of
the strategic importance of entrepreneurial sector as it helps in the
development of developing nations. Today, many CEOs of major companies are
disappointed over marketing’s inability to produce measurable results.
Interestingly, they view their marketing department as not living up to
expectations. Again, fewer marketers today are rising through the ranks to
become CEOs, [Asika and Osuagwu, 1995]. While companies unabashedly
declare their wish to get closer to consumer, marketing is actually losing power
to other functions in the enterprise. What happened? How did marketers lose
their infuence, and marketing its organizational relevance? More importantly,
how can marketers capture the imagination of CEOs and marketing its strategic
role in the frm? Ironically, while the marketing infuence has been declining,
the need for marketing function has been on the increase. However to rescue
themselves from the corporate obscurity that comes from responsibility for
implementing tactics, marketers must start driving overall strategic change.
They must help CEOs lead organization wide transformational initiatives that
will be able to deliver substantial revenue growth and increased proftability.

29
__________________________________________________________________________________________________
The entrepreneur is a risk taker and is prone to assume business risks. Any
error in making business decision is a probable source of threat or opportunity
in assuring the success of the business. The distinctiveness of entrepreneurs
businesses, rivalries and the tight economic situations has obligated the
entrepreneurs’ capability on predicting the business risks. Busenitz (1999)
noted the basis of risk is that the dominant theme running throughout the
entrepreneurship literature is risk and how entrepreneurs are predisposed
towards risky alternatives or how they should manage risk” (p. 325). However,
this statement contradicts with McCarthy (2000) statement on the risk that
“...the risk construct dominates the literature on entrepreneurship and the
ability to bear risk has been identifed as the primary challenge facing
entrepreneurs.
Furthermore, Klein (1997) has summarized that the capacity to take risk as
being an inherent attribute of the entrepreneurial venture as stated that if an
entrepreneur is to proft from an unexploited potential, he must also inevitably
deal with a greater degree of uncertainty.
Business risks occur from uncertainty about the future and the efects of
current judgements, therefore business choices need to consist of an
assessment of their outcomes and the possibility that the outcome may difer
from expectation. Entrepreneurs confront the problem that the sum of tolerable
30
__________________________________________________________________________________________________
risk is based on likelihood of unconstructive to the amount of risk taken. Bird
(1989) diferentiates risks to fve types which four of them are clearly pertinent
to any potential entrepreneurs such as economic risk, risk in social relations,
risk in career development, psychological and health risk.
The general concept of “risk” has been broken into several dimensions by
several authors used the Atkinson’s model (consumer model of risk perception)
which resulted in a six dimensions to defne risk among entrepreneurs as the
decision to become an entrepreneur involves consumer risk. The dimensions
included in the model are fnancial risk, social risk, psychological risk,
performance risk, safety risk and convenience risk.
However, Harrington and Niehaus, (2004) noted that in business several types
of risks are present and can be applied to entrepreneur business decision
making such as price risks, credits risk and pure risks. Price risks include
market risks associated to the victory of the business plan, demand for the
product, and issues of cost and price which include output price and input price
risks. Romano et al, (2001), includes price risk to business-related fnancial
risks involving credit, cash fow, foreign currency and working capital. Every
business risks are not monetary, yet, a good deal of risk is inherent in
companies and operations itself. It can be concluded that many of these risks
31
__________________________________________________________________________________________________
resulted from pressures related to company growth, company culture and
information management.
Other type of business risks is credit risks. Credit risk is a chance and
magnitude of fnancial loss involved in the spending of money. To quote
Harrington and Niehaus, (2004), on the credit risk of the business risk:
“The risk that a frm’s consumer and the parties to which it has lent money will
delay or fail to make promised payment is known as credit risk. Most frms face
some credit risk for account receivables. The exposure to credit risk is
particularly large for fnancial institution, such as commercial banks, that
routinely make loans that are subject to risk of default by the borrower. When
frms borrow money, they in turn expose lenders to credit risk (i.e., the risk that
frm will default on its promised payment). As a consequence, borrowing
exposes the frm’s owner to the risk that the frm will be unable to pay its debt
and thus be forced into bankruptcy, and the frm generally will have to pay
more to borrow money as credit risk increases”.
d. Budgetary Controls
In the broader context of management controls and management control
systems (MCS), controls are manifest in many aspects. In the context of
budgeting, controls have a narrower defnition. Budget control is the process of
comparing budgeted plans and standards to actual fnancial results, analyzing

32
__________________________________________________________________________________________________
variances, and taking corrective action (Bedford, 2015; Umapathy, 1987). A
background and discussion of both views of controls follow. Control, as broadly
defned in Simons’ (1994) seminal work, involves the rules, operating
procedures, and routines that guide an activity (Chenhall, 2003). Based on a
longitudinal study of top managers in their frst 18 months, Simons identifed
four categories of control systems: belief, boundary, diagnostic, and
interactive. Simons found that in all cases, control systems were signifcant
tools leaders used to implement a new strategy. Managers used control
systems to formalize beliefs, establish strategic boundaries, defne and
measure crucial variables of performance, and facilitate dialogue about
strategic uncertainty. These managers also used control systems to set goals
for strategy implementation and to communicate and maintain focus on new
strategic initiatives. However, Simons provided little detail of specifc controls
and few examples of control tools, including budgets.
This lack of detail on controls and their measurement was a common feature in
the majority of the literature on controls. For example, Lee and Cobia (2013)
studied 4,858 small and medium enterprises in the United Kingdom to evaluate
perceived barriers to growth. In their case study, Lee and Cobia described how
a small but growing company improved decision-making by adopting
management accounting practices as part of a management control system.

33
__________________________________________________________________________________________________
Two primary management accounting aspects discussed were planning and
control, albeit with little detail. Similarly, in a longitudinal case study, Zhong
(2014) found that fnancial controls were important for the success of small
businesses. However, Zhong did not measure or describe the controls in detail.
Likewise, in a literature review of quantitative management accounting studies,
Shields (2015) found that planning and control are common elements of MCS.
However, the article did not include measurements of controls or how
organizations implement specifc controls. Similarly, the case studies by
Bourmistrov and Kaarbøe (2013) and Henttu-Aho and Järvinen (2013) involved
the control function of budgets, but neither included a detailed description or
measurement of controls.
The lack of specifcity of how leaders use budgets for control is evident in other
literature as well. For instance, Bedford (2015) studied the efect of MCS on
frm performance using Simons’ (1994) levers of control. Bedford used cluster
and regression analyses of the survey results of 400 frms to examine how
frms implemented diagnostic and interactive controls through budgets and
performance management systems.
However, like Simons, Bedford did not examine how managers used budgets
for control.
34
__________________________________________________________________________________________________
This is also the case in other literature involving budgets as a form of control
identifed budgets as a major type of control, and that the types and intensity
of controls evolve over time. However, as other researchers discussed, Li et al.
did not provide details of how managers use budgets for control.
In contrast, Anderson, Christ, Dekker, and Sedatole (2014) identifed 31 specifc
controls used in strategic alliances in their study. Anderson et al. found that
companies ameliorated compliance and regulations risks through informal
controls while addressing relationship controls primarily through explicit exit
agreements. Firms used careful partner selection and agreements on contract
outcomes as controls to address performance risks. However, Anderson et al.
did not specifcally identify budgets as a form of control in their study. In a
similar way, Sanger (2013) identifed control measures such as comparisons of
actual to planned performance and industry standards as a best practice in
high-performing municipalities, although Sanger did not specifcally mention
budgets.
Other researchers have defned or examined budget control by the degree that
business leaders used variance analysis. For example, Davila et al. (2014)
studied an international sample of 66 young companies to examine the
relationship between the adoption of MCS and the frms’ value. The results of
35
__________________________________________________________________________________________________
Davila et al’s study indicated some MCS are basic and adopted by nearly all
companies. These include (by function, not specifc system) fnancial and
strategic planning, fnancial evaluation, and sales targets.
Part of fnancial evaluation was the degree to which organizations used budget
variances as a means of control and evaluation. Davila et al.’s study also
supports the theory that adopting more formal MCS results in better decision-
making and indicates growth potential, which increases a company’s value.
Similarly, Chenhall and Moers (2015) discussed the use of budget variances
and analysis in simple MCS to attain organizational goals.
Other aspects of budget controls researchers studied include the level of detail,
tightness of controls, and trend analysis. Both Gates and Germain (2015) and
Bedford and Malmi (2015) measured budget control by the level of detail in
their studies.
According to these researchers and others, more detail in budgets (and their
subsequent review) equated to greater control. Closely related to the level of
detail is whether budgets are loose or tight. The level of tightness relates to
how closely an organization adheres to its budget, which is another means of
budget control (Gates & Germain, 2015). Other studies involved tightness of
controls, although the researchers did not specifcally identify budgets as the
36
__________________________________________________________________________________________________
control mechanism (e.g., Li et al., 2013; Sandelin, 2008). Finally, Karadag
(2015) identifed feedback and trend analysis as forms of control, though
Karadag did not specifcally mention budgets.
Based on the review of the literature on the control function of budgets, I
measured budget control based on studies by the NFIB (2007) and Umapathy
(1987). Therefore, my study involved the measurement of budget control by
measuring the frequency of budget reviews. Consistent with the theory by
Churchill and Lewis (1983), greater use of these tools indicates more advanced
stages of organizational growth.
37
__________________________________________________________________________________________________
CHAPTER III
Research Methodology
This chapter presents the research design, locale of the study, research
instrument, respondents of the study, statistical treatment of data, data
gathering procedure and data analysis.
Research Design
This study determined the Efects of Basic commodity price hike to
consumers in Naruangan, Tuao, Cagayan. The aimed of the study was to
determine if there is a continuous increased in the prices of basic
commodities from the month of July-December 2019. The descriptive survey
was utilized in this study.
Locale of the study

38
__________________________________________________________________________________________________
This study was conducted at Naruangan, Tuao East, Cagayan particularly to
the 186 consumers from the month of July to December 2019.
Research Instrument
The instrument that was used in gathering the data needed in the study is
adapted and research made questionnaire.
Respondents of the study
The respondents of this study were the 186 consumers around
Naruangan, Tuao East, Cagayan. The researchers used stratifes sampling
technique in selecting the respondents of the study.
Sampling Technique
The stratifed sampling technique was utilized in the study. The researchers
used the stratifed in dividing the number of respondents per zone.
ZONE NUMBER OF RESPONDENTS

Zone 1 31
Zone 2 31
Zone 3 31
Zone 4 31
Zone 5 31
Zone 6 31
39
__________________________________________________________________________________________________
TOTAL 186
Data Gathering and Procedure
In order to conduct this study, the researchers followed the following
steps:
The researchers asked permission to the school principal to conduct the study
and also to seek the help to the Barangay Captain of Naruangan, Tuao,
Cagayan to know the number of constituents per zone.
Upon the approval, the researchers let the respondents participate in the
study through answering the questionnaire. After answering the questionnaires
the gathered responses were collected for tallying. The data gathered were
interpreted and analyzed through the use of statistical treatment of data.
Lastly, the researchers gave conclusions and recommendation from the result
of data gathered.
Statistical Tools
The statistical tools that the researchers used in the analysis and
interpretation of the data to be gathered in the study are the following:
Frequency Distribution
40
__________________________________________________________________________________________________
The frequency distribution can be determined by gathering the number
of responses from the descriptive scale provided. The percentage distribution
is computed by dividing frequency by n and multiplying the quotient by 100.
Weighted Mean
The weighted mean is used to get the average perception of the
respondents on the Efects of the Increase of the Prices of Products. To
understand better the meaning of weighted mean, the following arbitrary
scale will be use.
Likert-Type Scale
The likert-type scale provided a quantitative basis for interpreting
results of the study given by the answer of respondents.
Likert Scale Limits of Description
Descriptive Scale
3 2.34-3.00 Agree
2 1.67-2.33 Neutral
1 1.00-1.66 Disagree
One Way Anova.
41
__________________________________________________________________________________________________
It is used to test the signifcance diference between means of three or
more sets of data simultaneously. It is a method of dividing the variation
observed in experimental data into diferent parts, each part assignable to a
known source, cause or factor.
CHAPTER IV
Presentation, Interpretation and Analysis of Data
This chapter presents the fndings of the study in illustrative tables and
analysis as well as the interpretation based from the treatment of data.
Figure 1
PROFILE OF THE RESPONDENTS
42
__________________________________________________________________________________________________
GENDER
Male; 35.48%
Female; 64.52%
Figure 1 shows the Profile of the respondents in terms of Gender. As shown
in the table above there are 120 females out of 186 respondents or exactly 65%
and 66 males with a percentage of 35%. It clearly says that majority of the
respondents are female.
Figure 2
43
__________________________________________________________________________________________________
OCCUPATION OF RESPONDENTS
OCCUPATION
90
80 83
70
60
50
40
41 Number of respondents
30
20 25
10
0 7 5 4 4 4
3 2 1 1 1 1l 1 1 1 1
wif me do ing rer aid dor ply yee ady BNS sser ger ne wad her ker nod
e r r
e r h
n c b o M esa up plo s L re ana erso aga Butc or Ta
ous Fa Ve Tea La al S m ale D M eP K W
H K on 't E S
t v Hair al ce
c
u o S O f
nstr G
Co
Figure 2 shows the occupation of every respondent in Naruangan,
Tuao East Cagayan. The top most occupation in this Barangay is housewife and
there are 83 housewives out of the 186 respondents.. While on the other hand, the
BNS, Hair dresser, Manager, Sale Personnel, Kagawad, Butcher, Ofce work and
Tanod are the top least occupation in Naruangan Cagayan.
Figure 3
MONTHLY INCOME OF THE RESPONDENTS
44
__________________________________________________________________________________________________
140 127
120
100
80
60
38
40
20 9 8
4
0
0 0 0 0 e
00 ,0
0
,0
0
,0
0 ov
5, 10 15 20 ab
h p p p p 0 0
-P Ph Ph Ph ,0
00 0- 0- 0- 20
1,
0 00 ,0
0
,0
0 p
p 6, 11 16 Ph
Ph Ph
p p p
Ph Ph
Monthly Income
Figure 3 shows the monthly income of the respondents in Naruangan
Tuao East Cagayan. As shown in the graph above, there are 127 consumers who had a
monthly income of Php. 1,000- Php. 5,000, 38 consumers who had a monthly income
ranges from Php. 6,000 – Php. 10,000, 9 consumers who had income of Php. 11,000 –
Php 15,000, 4 consumers who had montly income of Php. 16,000-Php. 20,000 and 8
consumers who had Php. 20,000 and above monthly income per month. It clearly shows
that majority of the consumers in Naruagan, Tuao, Cagayan had a montly income ranges
from Php. 1,000- Php. 5,000 a month.
45
__________________________________________________________________________________________________
46
__________________________________________________________________________________________________
Table 1
SCHOOLS DIVISION
LIST OF BASIC COMMODITIES AND OFITS
CAGAYAN
PRICE MARK-UP FROM JULY TO
TUAO VOCATIONAL AND TECHNICAL
DECEMBER 2019 SCHOOL
PRODUCTS PRICE MARK UP OF EACH BASIC COMMODITIES
AVER
July August Sept. October Nov. Dec.
AGE
Price Price Price Price Price Price
Sugar (Red
Sugar) 2.19 3.30 3.70 3.97 4.94 5.19 23.2
9
Coffee
25grams 1.35 1.86 1.98 2.48 3 3.39 14.0
6
White egg 0.52 0.55 0.62 0.64 1.52 1.92 5.75
Body 3.10 3.75 3.98 4.57 5.07 5.12 21.0
soap(sachet 6
)
Toothpaste 1.13 2.93 3.38 4.10 4.42 4.79 20.7
(sachet) 5
Shampoo 1.17 1.91 5.5 1.22 1.38 5.75 16.9
(sachet) 3
Powder 0.76 1.28 4.63 1.87 1.66 1.44 11.6
(Surf) 4
Soy (datu 0.16 0.24 0.22 0.23 0.22 0.26 1.33
puti) 350ML
47
__________________________________________________________________________________________________
Vinegar 0.25 0.26 0.26 0.27 0.29 0.28 1.61
(Datu-Puti)
Milo 1.69 2.00 2.10 1.57 3.67 3.67 14.7
0
Milk (Bear 0.60 0.90 1.17 1.24 1.13 0.62 5.66
Brand)
Ajinomoto 0.81 0.92 0.92 1.16 1.16 0.96 5.93
(Vetsin)
Paminta 0.83 1.05 1.69 1.69 1.69 2.45 9.40
Payless 0.54 0.57 0.65 0.89 1 1.98 5.63
Pancit 0.85 1.17 1.90 2.79 2.83 3 12.5
Canton 4
Bagoong 0.65 1.42 1.29 2.19 2.38 2.76 10.6
Sardines 0.41 0.64 0.55 0.50 0.53 0.81 3.44
Fresca Tuna 0.47 0.56 0.60 0.76 0.77 0.92 4.08
Argentina 0.85 1.10 1.26 2.12 2.92 3.05 11.3
Meat Loaf
Argentina 0.80 1.12 1.52 2.15 2.70 3.15 11.4
Corn Beef 4
Ʃ of X 19.13 27.53 33.9 36.41 43.28 51.98 212.
4 27
Ʃx 2
27.57 56.36 116. 96.64 136.1 193.6 627.
48
__________________________________________________________________________________________________
8 1 3 11
Table 1 shows the basic commodities that increased for the past six
months and the average prices mark up of each commodity. As shown in the
table above, Red sugar is the top most basic commodity that increased in price for the
past six months with a total of 23.29 price mark up. From the month of July, August,
September, October, November and December with a price mark up of 2.19, 3.30, 3.70,
4.94, and 5.19 respectively.
This implies that in these months the production of sugar cane is not in season that’s
why the supply of sugar is lesser than the usua
Table 2
EFFECTS OF PRICE INCREASE AMONG CONSUMERS
Question Agree Neutral Disagree

s
F F F W I R
1. If
products 97 65 24 2.59 Agree 2
increase in
prices,
consumers
will tend
not to buy.
2. Increase
of prices of 124 45 17 2.39 Agree 13
products
infuences
consumers
to save
rather than
consume.
49
__________________________________________________________________________________________________
3. Price
increase 136 37 13 2.44 Agree 8
afects the
decision
making of
consumers.
4. If
consumers 110 62 14 2.55 Agree 3
expect
increase in
prices of
products to
be higher
they
increase
present
consumptio
n as results
of wealth-
redistributi
on.
5. Increase
in the 104 54 28 2.27 Neutral 19
Prices of
products
lessens the
consumer’s
satisfaction.
6. Increase
in prices 113 55 18 2.34 Agree 16
infuence
consumers
spending
behaviour.
7. Basic
commoditie 101 61 24 2.28 Neutral 18
s price hike
afects the
consumers’
satisfaction
to be
higher.
8.Price hike
helps the 145 35 6 2.50 Agree 4
consumers
to budget
50
__________________________________________________________________________________________________
their money
9. Increase
in the 128 44 14 1.62 Disagre 20
prices of
basic
e
commoditie
s lessens
the
consumptio
n of the
consumers.
10. Too
much 150 26 10 2.85 Agree 1
increase in
the prices
of products
afects the
daily
budget of
the
consumers.
11.Increase
in price 138 34 14 2.45 Agree 6
teaches the
consumers
to value
their
12. Price
Hike 128 42 16 2.41 Agree 10
changes
the
consumer’s
choice in
buying
commoditie
s.
13.
Increase in 129 42 15 2.41 Agree 11
the prices
of
commoditie
s causes
consumers
to
experience
poverty.
51
__________________________________________________________________________________________________
14. If
products 130 47 9 2.44 Agree 7
increase in
prices
consumers
will lessen
the amount
of supply.
15. When
price 112 59 15 2.35 Agree 15
increase
consumers
will tend to
buy
supplies as
one.
16. If there
is an 136 43 7 2.46 Agree 5
increase in
the prices
of products
consumers’
budget for
other
expenses
will be
lessen.
17.
Increase in 111 46 29 2.29 Neutral 17
the prices
of
commoditie
s will allow
consumers
to borrow
money
from others
just to
sustain
your needs.
18. Price
Increase 118 51 17 2.36 Agree 14
lessens the
consumers’
value.
19. If the
52
__________________________________________________________________________________________________
commoditie 131 43 12 2.43 Agree 9

s increase
in prices
the demand
of the
consumers
decreases.
20.
Increase in 130 37 19 2.41 Agree 12
the prices
of products
afects
customer’s
occupation.
TOTAL 2.40 Agree
Table 6 shows the Consumer’s responses on the effects of basic
commodities price hike. As shown in the table, the highest average weighted
mean value of 2.85 interpreted as AGREE fell under item 10, “Too much
increase in the prices of products affects the daily budget of the consumers.”
This in support to the study of Sari Ollila (2010), which states that High food prices can
be a barrier in the budgetary control of the consumers if food products are perceived as
expensive and the consumers are not willing to accept the higher prices and it will afect
the consumption of consumers in buying products.
This implies that increase in the prices of basic commodities had a greater impact to the
fnancial and daily budget of the consumers and also they need to budget their money
efciently and efectively in buying their needs.
53
__________________________________________________________________________________________________
The least weighted mean value of 1.75 interpreted as DISAGREE fell
under item 9, “Increase in the prices of basic commodities lessens the
consumption of the consumers.” this is in contrast to the study of Smith 2011, says
that increase in the price of all goods does not result a reduction of goods consumption.
This implies that increase in the prices of basic commodities does not lessen the
consumption of consumers in buying basic commodities needed in their living. And even
when the prices of every product increase consumers will tend to buy because they
prioritize their needs.
With a total weighted mean of 2.40 interpreted as Agree it implies that
there is a great efect of price increase to the lives of consumers in Naruangan, Tuao,
Cagayan.
Table 3
Significant difference between the basic commodities that increase in month
of July-December 2019.
Computed F- Tabular Value Conclusion Decision
Value
There is a Null Hypotheses
3.49 2.29 signifcant rejected
54
__________________________________________________________________________________________________
diference
Ho1: There is no significant difference between the basic commodities
that increase in month of July-December 2019.
The fnal computed value 3.49 is greater than the Tabular value 2.29 therefore,
there is a signifcant diference between the basic commodities that increased in
the months of July to December 2019.
CHAPTER V
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
This chapter discusses the summary of fndings and the conclusion of
the study.
Recommendations are also presented in this chapter.
Summary of Findings
This survey was conducted to know the Efects of Basic Commodities
Price Hike to the consumers in Naruangan Tuao East Cagayan and to know
the basic commodities that increased for the past six months. Questionnaires
were used in collecting the data.
The respondents drew the following fndings of the study:
55
__________________________________________________________________________________________________
1. Majority of the respondents in the conducted study are females.
2. The top most occupation in Naruangan Cagayan is Housewife.
3. The average monthly income of the people in Naruangan is between Php.
1,000.00- Php. 5,000.00.
4. Majority of the basic commodities increased their prices for the past six
months.
5. The top most basic commodities that increased in prices for the past six
months is Red Sugar.
6. Increase in the prices of Basic commodities afects the budgetary control of
the consumers.
7. If basic commodities increased in prices, consumers in Naruangan Tuao
Cagayan will tend to buy.
8. Majority of the respondents in Naruangan Tuao Cagayan says that even
when the prices of each basic commodity increased, they will always going
to buy what they are needed in order to fulfll their desires.
9. The fnal computed value 3.49 is greater than the Tabular Value 2.29 that’s
why null hypothesis is rejected.
10. The continuously increases in the prices of basic commodities afects
the consumers.
56
__________________________________________________________________________________________________
Conclusion
The researchers derived the following conclusions based on the fndings of the
study:
1. There is a greater population of female consumers in Naruangan Tuao
Cagayan.
2. Most of the respondent’s occupation in Naruangan Tuao Cagayan is
housewife.
3. Consumers in Naruangan Tuao Cagayan had only a minimal amount of
money spared in buying basic commodities because their monthly income
ranges only to Php. 1,000- Php. 5,000.
4. There is a maximum increased in the prices of each commodity from the
month of July-December.
5. Red sugar is the top most basic commodities that increased for the past six
months because during these months the product of sugar cane is not in
season.
6. Increased in the prices of basic commodities had a greater impact to the
daily budget of the consumers in Naruangan, Tuao, Cagayan.
7. If the basic commodities increase in prices there is a reduction in the
consumption of basic commodities to the consumers in Naruangan Cagayan.
57
__________________________________________________________________________________________________
8. Increased in Prices is not a hindrance for them to not buy their needs in
living.
9. There is a signifcant diference between the basic commodities that
increased for the past six months.
10. Consumers are greatly afected by the continuous price increase of
basic commodities which they need in their daily living.
Recommendation
Based on the fndings and conclusions that were presented below are the
recommendations of the researchers.
1. The consumers in Naruangan, Tuao, Cagayan needs to be thriftier in
buying basic commodities needed in their living. They must only buy the
most needed products that they use every day to avoid the shortening of
money.
2. The Department of Trade and Industry should make the over pricing policy
reach even the smallest retailers which is the sari-sari stores within a
community and conduct regular monitoring.
3. Since there is an increase in the prices of every products, consumers in
Naruangan, Tuao, Cagayan should make an alternative way to save
money.
58
__________________________________________________________________________________________________
4. The researchers recommend that as the price increases, consumers will
have to adjust and they must reduce the number of products they will buy
in order to deal with the increase of prices of products.
5. The consumers must read and analyze this study for them to know the
efects of price increase to their living and for them to budget their money
properly in buying commodities.
6. The future researchers must increase the number of respondents in both
customers and entrepreneurs.
7. The future researchers must do parallel study focusing on comparing the
efects of price hike now and to the next year.
8. The future researchers must compare the basic commodities that
increased for the past 3 years to come up with a more reliable and
concrete results.
REFERENCES
a. INTERNET
www.ijrmst.org
http://scholarworks.waldenv.eduldissertations
59
__________________________________________________________________________________________________
Yuichiro Ito
Yuuichirou.itou.@boj.or.jp
Sohei Kaihatsu
Souhei.kaihatsu@boj.or.jp
Novalatif@gmail.com
www.RAND.org/t/rr835
http://www.researchgate.net/publication/240281618
http://jsr.sagepub.com/content/11/3/232
b. BOOKS AND JOURNALS
Management Studies and Economic System (MSES),(2(4),279-
286,Spring 2016-ZARSMI
University of Helsinki
Department of Economics and Management Publication Nr.52,Found
Economics
DTI .Philippines
Accounting Research, 27, 47-66. doi:10.1016/j.mar.2015.03.001
Anderson, S. W., Christ, M. H., Dekker, H. C., & Sedatole, K. L. (2014).
The use of
60
__________________________________________________________________________________________________
management controls to mitigate risk in strategic alliances: Field and
survey
evidence.
Journal of Management Accounting Research, 26, 1-32.
doi:10.2308/jmar-50621
61
__________________________________________________________________________________________________
APPENDICE
S
62
__________________________________________________________________________________________________
SURVEY QUESTIONNAIRE
Directions: Fill out and tick the boxes that are appropriate to the data needed.
PERSONAL INFORMATION
Name: ____________________________________________________
Gender: MALE FEMALE
Occupation: ___________________________
Monthly Income:
Php.1,000 – Php.5,000 Php.16,000 – Php.20,000
Php.6,000 – Php.10,000 Php.20,000 and above
Php.11,000 – Php.15,000
Directions: Please answer the following questions truthfully. Please help us
by participating in this survey. We will carefully consider all your responses. Put a
check (√) on your responses.
Scale:
AGREE NEUTRAL DISAGREE
(3) (2) (1)
63
__________________________________________________________________________________________________
I. Effects of the Increase of Basic Commodities among Consumers
INCREASE IN THE PRICE
Questions Agree Neutral Disagree
(3) (2) (1)
1. If products increase in prices,
consumers will tend not to buy.

2. Increase of prices of products
infuences consumers to save
rather than consume.

3. Price increase afects the
decision making of consumers.

4. If consumers expect increase
in prices of products to be
higher they increase present
consumption as results of
wealth- redistribution.
5. Increase in the Prices of
products lessens the
consumer’s satisfaction.
6. Increase in prices infuence
consumers spending
behaviour.
7. Basic commodities price hike
afects the consumers’
satisfaction to be higher.
64
__________________________________________________________________________________________________
8. Price hike helps the consumers
to budget their money wisely.
9. Increase in the prices of basic
commodities lessens the
consumption of the consumers.

10. Too much increase in the
prices of products afects the
daily budget of the consumers.
11. Increase in price teaches the
consumers to value their
money.
12. Price Hike changes the
consumer’s choice in buying
commodities.
13. Increase in the prices of
commodities causes
consumers to experience
poverty.
14. If products increase in prices
consumers will lessen the
amount of supply.
15. When price increase
consumers will tend to buy
supplies as one.
16. If there is an increase in the
65
__________________________________________________________________________________________________
prices of products consumers’
budget for other expenses will
be lessen.
commodities will allow
consumers to borrow money
from others just to sustain your
needs.
18. Price Increase lessens the
consumers’ value.
19. If the commodities increase in
prices the demand of the
consumers decreases.
products afects customer’s
occupation.
Directions: Please answer the following questions truthfully. Please help us
by participating in this survey. We will carefully consider all your responses. Specify
the amount of each product.
66
__________________________________________________________________________________________________
I. Basic Commodities that Increased for the past six Months
Augus Novembe Dec

PRODUCTS July September October
t r .
Pric Price Price Price Price Pric
e e
Sugar (Red Sugar)
Cofee 25grams
White egg
Body soap(sachet)
Toothpaste(sachet)
Shampoo(sachet)
Powder (Surf)
Safeguard
Soy(datu puti)
350ML
Vinegar (Datu-Puti)
Milo
Milk(Bear Brand)
Ajinomoto (Vetsin)
Paminta
Payless
Pancit Canton
Bagoong
Sardines
Fresca Tuna
Argentina Corn
Beef
Argentina Meat
Loaf
(Other Specify)_______________________________________________________
67
__________________________________________________________________________________________________
Solution: ONE WAY ANOVA
1. Total sums of Squares

Ʃx2 – (Ʃx)2
N
= 627.11 – (212.27)2
120
= 627.11 – 45,058.55
120
= 627.11 – 375.49
= 251.62
2. Sum of Squares between columns

____1____ Ʃ (sum of each columns)2 – (Ʃx)2
no. of rows N
____1____ (365.45 + 757.90 + 1,151.93+1,323.69 + 1,873.16 + 2,701) – (Ʃx)2

no. of rows N
____1____ (8,175.63) – 45,058

20 120
= 8,175.63 - 375.49
20
68
__________________________________________________________________________________________________
= 408.78 – 375.49
= 33.29
3. Sum of squares within columns

(TSS-SSB)
251.62 – 33.29 = 218.3
4. Total Degree of Freedom

(N-1)
120 – 1 = 119
5. Between Columns Degree of Freedom

(K-1)
6–1=5
6. Within Columns Degree of Freedom

(Dft-Dfb)
119 – 5 = 114
7. Mean sum of Square between columns

SSb/dfb
33.29 / 5 = 6.658
8. Mean sum of Squares

SSw/dfw
218.3 / 114 = 1.91
9. F-Computed
MSSb/MSSw
6.658 / 1.91 = 3.49
Final computed Value of 3.49
69
__________________________________________________________________________________________________
JANUARY 28, 2020

GODOFREDO CORSINO
Barangay Captain
Naruangan, Tuao Cagayan
Sir:
The undersigned General Academic Strand students are conductng a research study on the Basic Commodites Price
Hike: Its efects to the consumers in Naruangan, Tuao East, Cagayan in partal fulflment of their course requirements in
Inquiries, Investgatons and Immersion (3I’s).
In this connecton, the researchers would like to ask permission to allow them to conduct the study among the
constumers in your Barangay.
Thank you very much and may you always give support to your consttuents.
Very truly yours,
JAYCEL T. CALAGUI JUSTINE MIGUEL JAMIE BADDAL ERIKA LAURENTE
Recommending Approval:
MARVELYN M. CATUBAG GEORGE C. CAUILAN

Research teacher/SHS Coordinator Head Teacher I
70
__________________________________________________________________________________________________
Approved by:
CORAZON A. CAMAYANG
Secondary School Principal
JANUARY 28, 2020

GODOFREDO CORSINO
Barangay Captain
Naruangan, Tuao Cagayan
Sir:
The undersigned General Academic Strand students are conductng a research study on the Efects of Price Increase in
Tuao East Cagayan in partal fulflment of their course requirements in Inquiries, Investgatons and Immersion (3I’s).
In this connecton, the researchers would like to ask permission to allow them to conduct the study among the
costumers in your Barangay.
Thank you very much and may you always give support to your consttuents.
Very truly yours,
JAYCEL T. CALAGUI JUSTINE MIGUEL JAMIE BADDAL ERIKA LAURENTE
Recommending Approval:
MARVELYN M. CATUBAG GEORGE C. CAUILAN

Research teacher/SHS Coordinator Head Teacher I
Approved by:
71
__________________________________________________________________________________________________
CORAZON A. CAMAYANG
Secondary School Principal I
JUSTINE ANNE SANTIAGO MIGUEL

NARUANGAN, TUAO EAST CAGAYAN
09168857066
justineannemiguel@gmail.com
______________________________________________________________________________
CAREER OBJECTIVE
A grade 12 senior high school student taking up General Academic Strand (GAS) with an elective of
Accountancy and Business Management (ABM) at Tuao Vocational and Technical School, Naruangan who is
aiming to use my skills and knowledge to achieve my goals and for the success of the agencies and to gain more skills
as a work immersion student.
______________________________________________________________________________
EDUCATION
 Tuao Vocational and Technical School
Naruangan Tuao Cagayan
Senior High School
S.Y. 2017-2020

Junior High School
S.Y 2013-2017
 Naruangan Elementary School

72
__________________________________________________________________________________________________

Primary Education
S.Y 2007-2013
______________________________________________________________________________
EXTRA-CURRICULAR
 Mapeh Club Member
S.Y 2013-2016
S.Y 2019-2020
 Mapeh Club Tresurer

S.Y 2019-2020
 Math Club Tresurer

S.Y 2016- 2017
 Math Club Member

S.Y 2016-2018
______________________________________________________________________________
SEMINAR AND TRAINING:
 Department of Agriculture
Agri-Caravan
Solana Cagayan
Year 2019
 School Symposium (Teenage Pregnancy and Drug Prevention)

Year 2019
 School Base Campus Journalism

Naruangan, Tuao, Cagayan
Year 2019
__________________________________________________________________
WORK EXPERIENCE:
73
__________________________________________________________________________________________________
 Work Immersion (DTI REGIONAL OFFICE TUGEGARAO)

Carig Tuguegarao Cagayan
Year 2019
______________________________________________________________________________
SKILLS:
 Good in Computer managing
 Good in Mathematical Solving
 Dancing
 Communicating Skills
 Singing
______________________________________________________________________________
INTERESTS/HOBBIES
 Reading books
 Watching Movies
 Solving Logical problems
______________________________________________________________________________
CHARACTER REFERENCES
JEMIMA O. URABA
Work Immersion Teacher
Tuao Vocational and Technical School Main
09069614149
KRYSTLE JOY D. SIBAL

Senior High School Teacher
Tuao Vocational and Technical School
09266559995
74
__________________________________________________________________________________________________
CORAZON A. CAMAYANG
Secondary School Principal II
09175198475
I hereby affirm that the above information id true and correct to the best of my knowledge and belief.
Justine Anne S. Miguel

Applicant
75
__________________________________________________________________________________________________
JAMIE RUTH NABUA BADDAL

NARUANGAN, TUAO EAST CAGAYAN
09067305036
baddaljhamie@gmail.com
_____________________________________________________________________________________
CAREER OBJECTIVE
A grade 12 senior high school student taking up General Academic Strand (GAS) with an elective
of Accountancy and Business Management (ABM) at Tuao Vocational and Technical School,
Naruangan who is aiming to gain experience, enhance my skill and personality as an immersionist
student and to give an opportunity to work productvely and accurately in your department.
______________________________________________________________________________
EDUCATION
Senior High School
S.Y. 2017-2020

Junior High School
S.Y 2013-2017
 Naruangan Elementary School

Primary Education
S.Y 2007-2013
______________________________________________________________________________
EXTRA-CURRICULAR
 Mapeh Club Member
76
__________________________________________________________________________________________________
S.Y 2018-2019
_________________________________________________________________________

Year 2019
_________________________________________________________________
WORK EXPERIENCE:
 Work Immersion (DTI REGIONAL OFFICE TUGEGARAO)
Carig, Tuguegarao Cagayan
Year 2019
______________________________________________________________________________
SKILLS:
 Singer
______________________________________________________________________________
INTERESTS/HOBBIES
 Reading books
 Watching Movies
_________________________________________________________________________
JEMIMA O. URABA
09069614149

09266559995
CORAZON A. CAMAYANG
09175198475
77
__________________________________________________________________________________________________
I hereby affirm that the above information id true and correct to the best of my knowledge and
belief.
Jamie Ruth N. Baddal

Applicant
ERIKA QUINTO LAURENTE
MAMBACAG, TUAO EAST CAGAYAN
09066281304
laurenteerika@gmail.com
______________________________________________________________________________
CAREER OBJECTIVE
A grade 12 senior high school student taking up General Academic Strand (GAS) with an elective
of Accountancy and Business Management (ABM) at Tuao Vocational and Technical School,
Naruangan who is aiming to enhance my skills and to gather more ideas that can help me to improve my
learning.
___________________________________________________________________________
EDUCATION
Senior High School
S.Y. 2017-2020
Junior High School
S.Y 2013-2017
 Mambacag Elementary School
Villa Laida Tuao Cagayan
Primary Education
S.Y 2007-2013
______________________________________________________________________________
EXTRA-CURRICULAR
 Math Club Member
S.Y 2013-2019
______________________________________________________________________________
78
__________________________________________________________________________________________________

Year 2019
__________________________________________________________________
WORK EXPERIENCE:
 Work Immersion (PHILHEALTH REGIONAL OFFICE TUGEGARAO)
Bagumbayan, Del Rosario Street, Tuguegarao Cagayan
Year 2019
______________________________________________________________________________
AWARDS/ACHIEVEMENTS:
 Grade 6, Elementary
With Honors
S.Y 2012-2013
______________________________________________________________________________
SKILLS:
 Good in Analyzing Statistics
______________________________________________________________________________
INTERESTS/HOBBIES
 Reading books
 Watching Movies
______________________________________________________________________________
JEMIMA O. URABA
09069614149

09266559995
CORAZON A. CAMAYANG
79
__________________________________________________________________________________________________

09175198475
I hereby affirm that the above information id true and correct to the best of my knowledge and
belief.
Erika Q. Laurente
Applicant
80
__________________________________________________________________________________________________
JAYCEL TAGUINOD CALAGUI

VILLA LAIDA, TUAO EAST CAGAYAN
09168857331
Jhaycellecalagui@gmail.com
______________________________________________________________________________
CAREER OBJECTIVE
A grade 12 senior high school student taking up General Academic Strand (GAS) with an elective of
Accountancy and Business Management (ABM) at Tuao Vocational and Technical School, Naruangan who is
aiming to share my knowledge and learnings to the department and to gain more skills and experience as a
work immersion student.
______________________________________________________________________________
EDUCATION
Senior High School
S.Y. 2017-2020

Junior High School
S.Y 2013-2017
81
__________________________________________________________________________________________________
 Villa Laida Elementary School

Villa Laida Tuao Cagayan
Primary Education
S.Y 2007-2013
______________________________________________________________________________
EXTRA-CURRICULAR
 SSG Club Treasurer
S.Y 2018-2019
 SSG Club President

S.Y 2019-2020
 Math Club President

S.Y 2017-2018
______________________________________________________________________________

 Department of Agriculture
Agri-Caravan
Solana Cagayan
Year 2019

Year 2019
 Youth Innovation Challenge

Pasay City
Year 2019
 Leadership Training
82
__________________________________________________________________________________________________
Tuguegarao City
Year 2019
 Youth Innovation Challenge

Pasay City
Year 2019
 SSG election and Training

Penablanca Cagayan
Year 2019
__________________________________________________________________
WORK EXPERIENCE:
 Work Immersion at the Department of Trade and Industry Region 2
(Tuguegarao,Carig,Cagayan)
______________________________________________________________________________
AWARDS/ACHIEVEMENTS:
 Grade 11, SHS
With Honors
S.Y 2017-2018
 Grade 7-9, JHS

With Honors
Conduct Awardee
Perfect Attendance Awardee
S.Y 2013-2016
 Grade 10, JHS

Batch Salutatorian
S.Y 2016-2017
 Grade 6, Elementary
Batch Salutatorian
S.Y 2012-2013
 Science and Technology Quizbee

83
__________________________________________________________________________________________________
3rd placer
Bagumbayan Tuao Cagayan
Year 2019
______________________________________________________________________________
SKILLS:
 Good in Analyzing Statistics
 Good in Computer managing
______________________________________________________________________________
INTERESTS/HOBBIES
 Reading books
 Watching Movies
 Playing board games and outdoor games
 Solving Logical problems
 Playing Minecraft
______________________________________________________________________________
JEMIMA O. URABA
09069614149

84
__________________________________________________________________________________________________

09266559995
CORAZON A. CAMAYANG
09175198475
I hereby affirm that the above information id true and correct to the best of my knowledge and belief.
JAYCEL T. CALAGUI
Applicant
85
__________________________________________________________________________________________________

0b8xv 3ltnf PDF

Uploaded by

Document Informationclick to expand document information

Copyright:

Available Formats

0b8xv 3ltnf PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

0b8xv 3ltnf PDF

Uploaded by

Copyright:

Available Formats

Republic of the Philippines

BASIC COMMODITIES PRICE HIKE: ITS EFFECT TO CONSUMERS IN

NARUANGAN, TUAO EAST, CAGAYAN

A RESEARCH PRESENTED TO THE SENIOR HIGH SCHOOL

DEPARTMENT OF TUAO VOCATIONAL AND TECHNICAL SCHOOL

NARUANGAN, TUAO EAST, CAGAYAN IN PARTIAL FULFILLMENT OF

THE COURSE REQUIREMENTS IN INQURIES, INVESTIGATIONS AND

Justine Anne Miguel

Jamie Ruth Baddal

who have helped them in making this research study successful.

To Mrs. Corazon A. Camayang, the principal of Tuao Vocational and Technical

improving the research study.

To the consumers and entrepreneurs of Barangay Naruangan, for extending their

semester of writing this research study and their lives as general.

guidance and forgiveness.

darkness with hope.

in what they shall become in the future.

commodities price hike to the lives of consumers in Narunangan, Tuao, Cagayan

of July to December 2019.

The Problem and Its Background

This chapter includes the background of the study, statements of the

problem, signifcance of the study, conceptual framework, scope and

delimitation and defnition of terms used.

Background of the Study

In today’s generation of business related matters, there are many things

of basic commodities increases many consumers are complaining about the

Many entrepreneurs are implementing price increase to cope up with the

commodities increases the entrepreneur also added additional price to the

products they will going to sell.

Data released by the Philippine Statistic Authority (PSA) showed infation

year to 4.8 percent.

expectation that infation would reach or peak at 6%.

being experienced by households nationwide for the past eight months.

that consumers exchange for the benefts of having or using a product or

intensity of inform and greater amount of comparison between competing

Consumers are the most important elements in the business because

without consumers the business will no longer proftable and functional. As

the prices of every products increase, consumers tend to ask questions in

every store or establishment regarding the reason of sudden increase in the

they will go to buy or make an alternative.

The researchers observed that there is increase in the prices of basic

commodities in Naruangan, Tuao East, Cagayan. The research study of

infation that is happening in Naruangan Tuao Cagayan. There is a research

Based on the observation of researchers, consumers are always

much high, just to satisfy their needs and wants.

In addition, people are sacrifcing not to buy “Pitchi-Pitchi” everyday

because it is more expensive. Instead they prefer to buy on market days

Statement of the problem

consumers in Naruangan from July to December 2019.

Specifcally, it sought to answer the following questions:

1. What is the profle of the respondents in terms of;

Naruangan Tuao East Cagayan?

4. Is there a signifcant diference on the prices of basic commodities from the

months of July – December?

Ho1: There is no signifcant diference between the basic commodities that

increase in month of July-December 2019.

Significance of the study

The results of the study are benefcial to the following: