Essay About Market Preferences Of Consumer And Independent Small Grocery Retailers

Market Preferences of Consumer in Buying Basic Commodities in Selected Areas of Cavite
Essay Preview: 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 CAVITESubmitted to the Faculty of theCollege of Economics, Management and Development StudiesCavite State UniversityIndang, CaviteIn partial fulfillmentof the requirements for the degree Bachelor of Science in Business ManagementApril Joy L. AquinoMary Ann H. LeyranMAY 2018MARKET PREFERENCES OF CONSUMER IN BUYING BASIC COMMODITIES IN SELECTED AREAS OF CAVITEApril Joy L. AquinoMary Ann H. LeyranAn 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][pic 2]INTRODUCTIONConsumers 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).

Grocery retailers, especially modern grocery retailers, is expected to continue to enjoy growth in both outlet numbers and value sales over the forecast period, due to both consumer need and purchasing power. As grocery retailers remain the major source of food and household consumables, players will strive to adapt to consumers’ needs by opening stores in more accessible locations and increasing their presence in underserved markets, but then, as consumers enjoy increasing purchasing power, players will benefit from larger basket sizes and a higher appreciation for imported products and superior goods.In a highly differentiated market environment, food quality has become increasingly important as consumers show more concerns about nutrition, health, and quality of food that they eat (Gil et al. 2000). This is the reason why companies are more concerned on individual consumer behavior. It helps them to yield information about how the consumers think, feel and choose their products. Consumer behavior is the study of the processes involved when individual or groups select, purchase, use, or dispose of the product, service, ideas or experiences to satisfy needs and desires (Michael R.Solomon, 1998, p. 31).Statement of the ProblemThis study will be conducted to determine the market preferences of consumer in buying basic commodities in selected areas of Cavite.        The study seeks to answer the following question:What are the socio-economic characteristics of consumers in selected areas of Cavite?How much is the allocated budget for consuming basic commodities? What is the consumer preference in purchasing basic commodities in terms of:pricequality quantityWhat are the factors that influence market preference of participants in terms of:locationnumber of choices service What are the significant differences between buying in groceries stores and supermarket?What are the problems encountered in buying basic commodities?Objectives of the StudyThe study will be conducted to determine the consumer’s market preferences in buying basic commodities in selected areas of Cavite.determine the socio-economic characteristics of consumers in buying basic commodities in selected areas of Cavite.determine the allocated budget for consuming basic commodities.determine the consumer preference in purchasing basic commodities in termsof:pricequalityquantitydetermine the factors that influence market preference of participants in termsof:a. locationb. number of choicesc. service 5. determine the significant differences between buying in groceries stores and supermarket