IMPACT OF TRAIN LAW TO THE BUYING PATTERN OF 4PS

BENEFICIARIES IN PALO, LEYTE

__________________________________________

A Research Proposal
Presented to
The Senior High School Department
Saint Paul School of Professional Studies
Palo, Leyte

_______________________________________

by

HAROLD B. AGULLO
JERICO JOEMARK A. ALBAO
SANDYLAIN I. CORSANES
SHENNA G. DELLERA
BRITNEY ZYRIL E. GARIN
MEHJAY VEROSCA O. ONG
LORRAINE MAE D. ROBRIDO
FEBRUARY 2019
 TABLE OF CONTENTS

Table of Contents…………………………………………………………...…i
Acknowledgement………..………...…………………………………….........ii
List of Figures……………………….………………………………………...iii
List of Tables………………………………..………………………..………..iv
Abstract………………………………………...………………………...…….v

CHAPTER 1: The Problem and Its Background

Introduction……………………………………………………………………1
Conceptual Framework………………………………………………………..3
Statement of the Problem……………………………………………………...4
Significance of the Study……………………………………………………...5
Scope and Delimitation………………………………………………………..5
Definition of Terms…………………………………………………………....6

CHAPTER 2: Review of Related Literature and Studies

Related Literature……………………………………………………………...7
Related Studies………………………………………………………………...18

CHAPTER 3: Methodology
Research Design………………………………………………………….……27
Research Locale……………………………………………………………….27
Respondents of the Study……………………………………………………...28
Instrument of the Study………………………………………………………..29
Validation of and Establishing Reliability…………………………………….29
Data Gathering Procedure……………………………………………………..30
Statistical Treatment……………………………………………………….......30

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CHAPTER 4: Data Analysis and Research Findings
Data Analysis and Research Findings…………………………………………32

CHAPTER 5: Summary of Findings, Conclusion, Recommendation

Summary of Findings…………………………………………………………..38
Conclusion…………………………………………………...…………………39
Recommendations…………………………....……………………………...…40

Bibliography….………..……….………………………...…………………...…41
Appendix..…………………………………………………..……………………46

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 ACKNOWLEDGEMENT

First of all, the researcher would like to thank Mr Carl Aljon Lacaba for giving them

the opportunity to explore and conduct this research. Thank you also for guiding the

researcher throughout the making of each chapters for this research. Secondly, the

researcher would like to whole-heartedly extend our gratitude to the parents who gave

financial and moral support to finish this study, and to the teachers who validated the survey

questions, thank you, for without you, the researchers could not have had attain the results

that we need for this study.

The researchers would also like to express their deepest appreciation to the

respondents for giving their time and effort to answer the questions in the survey and also

because of the warm welcome that the respondent gave when the researchers were

conducting the face-to-face survey. The researchers are very much grateful to their

cooperation which made them gathered the data needed to finish the research study,

similarly, they would like to give credits to the researchers that helps them provide related

studies and literatures of this study. Without their existing research studies, the researchers

would not have reached the conclusion of this research.

Lastly, the researchers thank the people who assisted them during their data

gathering process. Thanks to Bienvinida Hart and Jovy Mae Fumar for their sincerity and

kindness in helping the researchers locate the houses of the respondents. The researchers

are also grateful for the mother of their co-researcher, Sarah Dellera for offering a place to

stay during the surveying process. Without the aid of these people, they surely won’t be able

to provide accurate data for this research study.

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 LIST OF FIGURES

Figure 1: Effects of TRAIN Law to buying pattern ………….……………………..5

iii
i
 LIST OF TABLES

TABLE
1: Common Goods bought Before the Implementation of TRAIN Law.………..25
2: Common Goods bought After the Implementation of TRAIN Law…..……...26
3: Location Preference of Purchasing Goods Before the……………….……….27
Implementation of TRAIN Law
4: Location Preference of Purchasing Goods After the………………………….27
Implementation of TRAIN Law
5: Frequency of Purchasing Goods Before and After the……………….…….....28
Implementation of TRAIN Law

6: Budget Allocation for Goods Before and After the Implementation..………..29

of TRAIN Law

6.1: Changes in the Budget Allocation Before and After the…………………….30

Implementation of TRAIN Law

ivi
 ABSTRACT

This quantitative research study was carried out to determine the previous and

current buying patterns of 4Ps beneficiaries residing in Palo, Leyte who were also affected

by the implementation of TRAIN Law. This was conducted within the vicinity of Palo,

Leyte with a total of 100 4Ps beneficiaries as respondents. Data were collected through a

valid survey questionnaire consisting the evaluation of the frequency, quantity, and timing

of consumers’ usual way of availing goods and services. The descriptive-comparative

research design was used in this study which is appropriate to use in identifying the

purchasing behavior of 4Ps beneficiaries and determining the similarities and differences in

the buying pattern of 4Ps beneficiaries before and after TRAIN Law implementation.

Simple random sampling method was used in the data gathering process, wherein each

member of the population has an equal chance of being included in the sample and gathered

information was summarized and analyzed using SPSS. Results shows that there are bare to

no significant changes of the buying pattern of 4Ps beneficiaries before and after the

implementation of TRAIN law. The researchers conclude that significant changes of buying

pattern due to the implementation of TRAIN is slowly observed as it was just introduced

recently.

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 CHAPTER I

PROBLEM AND ITS BACKGROUND

Introduction

The implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law

has heightened the salaries of Filipino workers by reducing their income tax rates. However,

the corresponding consequence is the sudden increase of prices of basic commodities. The

decrease of tax on personal income is compensated by the taxes on the purchase of goods and

services. Products such as beverages, fuels, and tobaccos have already made a ripple effect on

the other basic commodities throughout the country (Maramara, 2018).

One of the regions affected by the new tax reform is Eastern Visayas, Region 8. It has

been recorded that the inflation rate within the boundaries of the said region reached 4.5 percent

this year compared to the 4.0 percent last year, implying that the effect of TRAIN Law is

already evident. Moreover, the increase of oil prices has made an impact to basic commodities.

According to the Philippine Statistics Authority (PSA), food and non-alcoholic beverages went

up by 1.0 percentage point. Meanwhile, alcoholic beverages and tobacco increased by 0.8

percent, from 6.6 percent in December 2017 to 7.4 percent in January 2018.

Within Region 8, Leyte ranked second with the lowest poverty incidence, followed by

Southern Leyte, Eastern Samar and Samar; Northern Samar remained to record the highest

poverty incidence at 47.9 percent. According to the National Statistical Coordination Board, a

total of 578,100 people including a large portion of school children were made beneficiaries

of the Conditional Cash Transfer Programs by the government such as the Pantawid Pamilyang

1
Pilipino Program (4Ps) in Region 8 in order to alleviate poverty rates. With this, it is evident

that the municipalities of the said region are also carrying the burden of the new tax reform.

Palo, Leyte is no exception. Despite its gradual economic progress, roughly 1,853 households

are considered as beneficiaries of the program and are reliant to the said funding (Calzado,

2017).

The 4Ps provides the poor Filipinos in terms of financial expenses in their day-to-day

consumptions. The 4Ps beneficiaries are classified as low income earners or people below the

poverty line who depend on the government’s cash grants which support their daily living. In

status quo, where excise tax is present, this law tends to bring difficulties to 4Ps beneficiaries

since the products that were affected are some of the basic needs of these people.

The rapid increase on the prices of basic commodities has led a large portion of

consumers to change their buying habits. Primarily, food prices are one of the factors that can

change a household's consumption pattern and poor families are mainly vulnerable to these

rising food prices (Fujii, 2011). Most groups of household spend larger portions of their salary

on foods and provide lesser shares of their wages on healthcare and other necessities. The

sudden implementation of TRAIN Law has greatly affected beneficiaries who rely mostly on

the help of subsidies and those who are living with low income job that could not even support

their daily necessities.

As a form of solution, the government gave an additional fund to the 4Ps beneficiaries

worth P200. This is to help the poor adjust to the increase of prices of the basic commodities

following the implementation of the new tax reform law (Orias, 2018). Though there is an

additional fund given by the government, it is still not enough due to the fact that it is just a

small amount and could not accommodate their needs at the end of the day (Cruz, 2018).

2
 This study will determine the previous and current buying patterns of 4Ps beneficiaries

to assess whether the implementation of the new tax reform law aided the poor families in

sustaining their daily needs. It will be done through evaluating the consumers’ usual way of

availing goods and services which includes frequency, quantity, and timing. It will evaluate

their current situations in order to know if they are able to cope up with the changes around

them. The results of the research can transform them to be wise buyers especially now that the

prices of products already went up and they need to budget their money for the most significant

things.

Conceptual Framework

TRAIN Law Implementation

Buying Pattern before Buying Pattern after TRAIN

TRAIN Law Implementation Law Implementation
 Type of Product  Type of Product
 Frequency  Frequency
 Place or Location  Place or Location
 Budget Allocation  Budget Allocation

Figure 1. Effects of TRAIN Law to buying pattern

Figure 1 suggests that the buying patterns of 4Ps beneficiaries before and after the

implementation of TRAIN law are affected due to the increase of prices on basic commodities

and on other goods that are essential for the family to live. Moreover, figure 1 implies that

3
there is a direct effect of TRAIN law towards the beneficiary’s buying pattern in connection to

the type of commodities, the frequency of product, the place where goods are bought, and the

budget allocation for basic necessities.

Statement of the Problem

This study seeks to determine the previous and current buying pattern of 4Ps beneficiaries

in Palo, Leyte who were affected by the implementation of TRAIN Law. The following

questions will help in finding out the various changes that were made after the said law became

the reason for the increase of prices on basic commodities.

1. What were the common goods bought by 4Ps beneficiaries before TRAIN Law?

2. What are the common goods bought by 4Ps beneficiaries after TRAIN Law?

3. Where did 4Ps beneficiaries buy products before TRAIN Law?

4. Where do 4Ps beneficiaries buy products after TRAIN Law?

5. How often does a 4Ps beneficiary purchase a certain product (food, clothing, school

supplies, and hygiene products) before and after TRAIN Law?

6. How much is their budget for the following products before and after TRAIN Law?

A. Food
B. School Supplies
C. Toiletries
D. Clothing

7. What are the significant changes between the buying patterns of 4Ps beneficiaries

before and after the implementation of TRAIN Law?

4
Significance of the Study

The generalization of this present study would greatly contribute to the society in terms

of assessing how the implementation of TRAIN law made its impact on the buying patterns of

4Ps beneficiaries. Furthermore, the study could be of importance to the following.

4Ps Beneficiaries. The results could help them assess if implementing the said law

would give them greater benefit or not. The ideas presented will help them on how to properly

budget their money and the buying pattern they should adhere to.

Market. Knowing what consumers would usually buy would be an advantage to the

market. The outcome of the study will help them determine what goods they should be selling

for them to earn a greater amount of profit to make their business grow.

To the government. Through this study, it will have an idea on how and where to

allocate the taxes it receives and also gave it insights on how 4Ps beneficiaries are spending

their money.

Researchers. The study will be a form of basis to future researches in line with TRAIN

Law and buying patterns of low-income household. The research could also be a reference for

gathering information and collecting factual data.

Scope and Delimitation

This study focuses on assessing the changes of the buying pattern before and after the

enactment of TRAIN Law to the people who belonged in the low socioeconomic status which

also refers to the beneficiary of Pantawid Pamilyang Pilipino Program in Palo, Leyte. Changes

of buying pattern assessment only includes the frequency, place or the location of purchase,

quantity of purchase, types of products and the budget allocation for the basic commodities.

5
Furthermore, the sample of this study is composed of 100 respondents out of 5021 4Ps

beneficiaries within the vicinity of Palo, Leyte. The information gathered will be summarized

and analysed using Statistical Package for the Social Sciences (SPSS).

Definition of Terms

For the purpose of clarity and understanding, the following terms are operationally

defined:

Buying Pattern. This refers to the usual behavior in which consumers purchase a

certain product that includes the frequency, location, budget allocation and the product

that they typically buy.

Frequency. This refers to the number of times that a consumer purchases a product.

Budget Allocation. This refers to the allotment of budget to the list of products that a

consumer acquires.

Convenience Store. This refers to sari-sari store in the research questionnaire.

Thrift Store. This refers to ukay-ukay in the research questionnaire.

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 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

Related Literature

The general objective of the study is to measure the disparities between the impacts of

TRAIN Law to the buying pattern of the 4Ps beneficiaries before and after it was implemented.

This is to show that changes were made due to the sudden price hikes of basic commodities.

Its main aim is to assess the situations of the lower class families such as those who are

recipients of cash assistance programs. Since they did not get much benefit from the enactment

of the law, this study will be a bridge to help them cope up with the sudden increase of prices

in the market. On the other hand, the major variables are socioeconomic status and buying

pattern. Meanwhile, there are five sub variables under buying pattern which are frequency,

place or location of purchase, quantity of purchase, and types of product.

Socioeconomic Status. Socioeconomic status (SES) refers to the particular social rank

that a person has attained in the society. It is gauged through evaluating and combining an

individual’s educational accomplishment, occupation, and income. In addition, it is stratified

into three categories which consist of the upper, middle, and lower social class. People who

are usually the wealthiest and have the greatest power in the community constitute the upper

class. Meanwhile, professionals or workers who have average compensation are categorized

in the middle class. Lastly, the lower class which has the least rank among the three comprises

people who lack educational attainment, job qualifications, and skills.

To know the current socioeconomic status of people can be a really great aid in

predicting the numerous dilemmas in the society. It can be a basis for tracking inequalities for

7
the variety of dimensions that differentiate the three social ranks from each other. Moreover,

the stratification that was mentioned above can help in easily identifying the impact of various

situations to the social standing categories (Crossman, 2017). This is due to the fact that people

are already categorized and it will be easier to measure existing health, educational, financial,

and other issues if it is done generally.

For food consumption, people who are in the lower class tend to consume less healthy

food due to the fact that they do not have that much financial capacity to buy a complete

balanced meal (Eufic, 2012). Also, they are not that much educated regarding the nutritional

requirements that they need every day. In connection, this may be related to the rampant

malnutrition cases that people especially children are currently experiencing. Meanwhile,

people who belong to the upper and middle class have much healthier food intake because they

have enough purchasing power to buy full course meals in a daily basis.

Furthermore, there are a lot of gaps between the buying behaviors of people who belong

to different social ranks. People who are classified as high income earners tend to spend more

money on branded products and have large budget allocation for shopping. Meanwhile, middle

and low income customers usually allocate a large portion of money for other important

purposes such as food which makes them spend lesser on shopping (Murphy, 1978). There

are really disparities on the products that people prioritize. It only depends on the social status

of an individual since there are also differences on their own definition of needs and wants.

The purchase patterns of customers are highly influenced by the social and economic

segment that they belong to. The social class of a person shapes his/her preferences in acquiring

different types of products. Their buying decisions are based on what will be suitable for them

when they are being watched by the society. The label that was already marked on them can

8
trigger increased societal pressure as they are expected to act based on their status. At times,

individuals who belong to lower and middle classes are more conscious with the things that

they purchase compared to the high income earners.

According to (Testa, 2017), the lowest paid jobs in the Philippines are the wood

processing and plant operators, miners and quarry workers, field crop workers, tailors,

dressmakers, hatters, freight handler, aqua-farm cultivators, and forestry workers. The lower

class people are usually under these types of work. Their monthly income usually ranges from

P6,290-P8,074 which is only a little amount compared to the middle and upper class people’s

salary. In other words, those who are not in the lower class are more privileged when it comes

to having enough purchasing power to sustain daily needs and as well as wants.

Meanwhile, socioeconomic status can greatly create disparities on the different social

ranks in terms of budgeting. Upper class people may not even bother about budgeting their

money anymore because it is already beyond enough to the point that they do not care much

about spending too much. On the other hand, lower to middle class people tend to have a more

detailed budget plan since their money is not that sufficient or either it is just enough to buy

their basic needs such as food, water, and clothing for everyday survival (Middle Class Dad,

2018). It is really a must for a budget plan since they need to do whatever it takes to stretch or

extend the money that they have in order to make it enough for daily consumption. Through

this, they will be able to devise ways on how they will be able to manage their money and as

well as assess the quality of products before deciding to buy.

Meanwhile, socioeconomic status can also affect a learner’s academic

performance in school (PressReader, 2015). Although almost all students who belong in the

three social ranks are attending school, the impact of low socioeconomic standing on student

9
achievement can even pull down their willingness to attain whatever they want in life. Lower

class families often have difficulty in sending their children to school since they only have

limited resources coming from their small income through doing almost all sorts of livelihood.

Parents who are categorized as a low income earner cannot afford and invest on reading

materials, technology, and tutors for their children since they do not that have purchasing

power intended for this particular purpose. They often allocate their money on food and water

which are the most basic needs for everyday survival.

Moreover, low income earners often have a negative learning environment due to

the fact that daily survival has been always a struggle for them. Children who have inadequate

materials for school may often acquire adverse effects since this may be a form of

discouragement on their part (Science Daily, 2011). They might be forced to just give up school

and immediately enter the work field in order to help their families in a more practical way.

This is because some low income parents find it hard to invest on education since it takes more

time than usual. They resort to another option which is to send their children for low income

work instead of sending them to school. Through this, their families may be able to have

additional income that may somehow add ease on buying their daily needs. Also, this is the

reason why low income earners have the most number of children because they cling to the

idea that this might help them in the future (Tullao, 2018). Additional children imply more

workforce especially for the farmers who find it expensive to hire labor for work. If their own

labor is their children, then they do not have to pay them anymore. However, more childbirths

may also greatly affect the financial well-being of families since childcare is also very costly

due to the need of milk and endless diaper supply (Ansel, 2016).

10
 On the other hand, SES can also influence health on different aspects (Baker, 2014).

Low income earners do not have much access to healthcare due to the lack of income. In

relation, they have a myriad of limitations when it comes to buying medicines and other

healthcare products. This is due to the fact that they are not able to afford those kind of products

since it is already expensive. Also, lower class people live far away from pharmacies and are

less educated regarding health issues. This only implies that they may not consider the purchase

of medicines and healthcare products since transportation expenses may also add up to their

budget plan. In other words, lower class people may put their health aside since there are other

things that they should prioritize first such as food and water which they consider as the most

essential for daily survival.

Buying Pattern. Buying patterns simply pertains to the standard way on how consumer

purchase goods or avail services in relation to the buying factors such as frequency, quantity,

location, and the type of products that an individual buy. The buying pattern of a consumer is

largely controlled by his needs, taste, and preferences, which means that the socioeconomic

status of a person has a significant role to his or her buying pattern. Buying pattern

encompasses the behaviors of people towards buying a product and their decision making. It

serves as an indicator for a person’s socioeconomic status which truly affects their attitude

when they purchase a commodity.

Low priced products has much more purchasing potential to the poor families. Because

social ranking their purchasing power differ to those rich people and we can infer that poor

families are more conscious in terms of brand, prices, and quality of the products that they

need. This simply means that poor families capitalize more into purchasing products that are

affordable and not beyond their capacity to buy. (Kuhmar, n.d.).

11
 Consumer behavior includes the buying process of a customer in order to satisfy their

wants and demands. In the end whatever the consumer behavior or the thought they made in

the entire purchasing process the result will depend on the final decision of the customer and

this simply means that the whole purchasing process has of little significance because in the

end the decision will be made by the customer (Khaniwale, 2015).

Being conscious with the benefits and quality of the products can lead the customer to

make more efforts in terms of purchasing. Buying pattern also helps create a good insight

towards how a person will manage his income and create a good attitude when buying a

product. Also, information about the series of buying patterns can greatly aid in analyzing the

current financial position of people in the light of the dynamic changes in the realm of

economics. Lastly, this can create more strategies that can serve as a guide towards uplifting

the people up from the current difficult situations that they are in.

Frequency. Purchase frequency is the measurement of the average number of times a

customer purchases in a given set of time. It is important to know this because it gives you an

idea on how you will structure your marketing strategies that are applicable for the buying

behavior of the customer. And also there are three tips in increasing the purchase frequency:

first is to create retention email campaigns, second is to start a loyalty program and lastly is to

introduce elements. In business, purchase frequency bears so much significance on the

company who produces a good or render a service. This means that people’s purchase

frequency serves as a parameter for the business to know its viability, so marketing strategies

may affect the consumer’s attitude when purchasing a good. (McEachern, 2018).

Frequency means the number of times a customer has made a purchase of products from

a company or in the market. Frequency is an integral part of the trilogy called Recency,

12
Frequency, Monetary (RFM) analysis that is used in predicting the response of the customer

towards the feasibility of a certain company (Hughes, 2018). Moreover, purchase frequency is

a list of data measure that conjures a certain pattern which may describe the current buying

situations of people. It is also very significant in terms of devising strategies on how to

efficiently and effectively utilize money in order to meet an equilibrium between costs and

benefits through being mindful on every purchase decision.

Place or the Location of Purchase. The place or location of the stores that the

consumer choose can influence the buying pattern of the consumer. The quality of products,

convenience of the location, and the product's availability are factors that the consumers

consider in choosing a location of the store to buy their needs and wants to sustain for their

family (Nielsen Holdings, 2016). Aside from that, the store design, store layout, and the quality

of service can also influence the consumer’s buying pattern. As a result, consumers are more

likely willing to stay and spend their money in purchasing products from stores that has a good

ambiance. (Sun & Yazdanifard, 2015). Certainly, the place and location of purchase has a

great significance towards the buying pattern of individuals because of its influence that can

change the minds of the consumer.

The person’s socioeconomic status can also lead to disparity of store choice. It is said

that high-income consumers are less sensitive to distance in their buying pattern compared to

low-income consumers. This conclude that people who are classified as low-income

consumers are willing to travel longer distances in purchasing products, in order to take

advantage of the low priced goods. Meanwhile, high-income consumers place greater value of

their time and less willing to travel further to patronize cheaper products. However low-income

consumers has a greater tendency to limit their purchases, both food and non-foods up to the

13
stores within their neighbourhoods. In fact, Filipinos who belonged in low-income class

preferred buying goods in sari-sari store. Such result can be explained in terms of the ability

of the low-income consumers to make purchases on credit, buy items in piecemeal basis and

save in terms of transportation costs (Nielsen Holdings, 2016). Consumers are influenced by

the store image, pricing and at the same time the location. The location of the stores affects the

decision making of the customer. It is perceived as time and distance, for example a low-

income consumer tends to make small purchases because of their cash is unstable. For people

like these they are often giving value to time so they prefer stores that are easily accessible to

them. It is also important that retailers should cater for low-income consumers to meet the

expectation of every customer. Location affects mostly the decision making of consumers

when they want to purchase a product, and nearness is the common determinant of the

consumer’s buying decision (Eze Felix John, 2015).

Quantity of Purchase. Food purchase decisions often entail tradeoffs among taste,

preference, nutrition, and quality factors to meet spending constraints. Low-income shoppers

can stretch their food budget in a number of ways: shopping in discounted food stores, using

coupons and other promotions to buy a good for a lower price, or perhaps by buying and eating

less food than higher income shoppers who has more capacity to buy goods. Nutrition

educators and those who manage food assistance programs benefit from knowing just how this

economizing behavior occurs, and this serves as a strong determinant to the cost of low-income

consumers. There is much interest in where households shop for food since the choice of where

to shop will impact both prices paid and products purchased. As the variety of store formats in

the retail food industry has expanded, gaining a better understanding of where a certain

14
customer usually go to shop will help both policymakers and industry analysts better

understand consumer behavior.

Low-income consumers spend less than one quarter of their income on food.

Supplemental Nutrition Assistance Program (SNAP) households spend 24 percent of their

income on food (22 percent at home and 2 percent away from home), while eligible families

spend 22 percent of their income on food (18 percent at home and 4 percent away from home).

Low income ineligible households spend 18 percent of their income on food. In contrast,

SNAP, eligible non-SNAP, and ineligible households spend 43 percent, 40 percent, and 38

percent of their incomes, respectively, on housing. Demographic characteristics affect

spending patterns. All categories of households spend larger shares of income on food at home

– and, to a lesser extent, housing and health care – as they age. Expenditure shares a decrease

with age for food away from home, apparel, transportation, and other purchases. Households

with children spend larger shares of income on food at home and apparel, and smaller shares

of income on food away from home. Finally, households living in more populated areas spend

more on housing and less on transportation (Castner, L, and Mabli, J. 2010).

Customers are also considered as price conscious, which means that customers are

more sensitive to different price between alternative choices or substitute goods. It is the

shopping preference of the buyers towards the purchase of products at sale prices and lower

prices in general, which means that price conscious buyers make their purchases solely based

on the price factor. Consumer may even refrain from buying a product if they find the price to

be greater than what is acceptable to them. Price consciousness is positively related to the

income, for example people with low income tends to be more price conscious than the high

15
income people, because they have already realized on what are their capacities in terms of

purchasing a product (Sproles and Sproles, 1990, as cited in Bearden et al., 2011).

Types of Product. The type of product that someone has purchased is one of the

indicators in determining the buying pattern of consumers. The factors that influence the

consumer in choosing the type of product that they want to purchase includes: the buying

capacity of the customer; product perishability or durability; availability of the product

choices; customer requirement of the product; whether the product is available in abundance

or there is a shortage of the product; and product storage. Low-income and high-income

consumers have different buying patterns in terms of choosing the type of product especially

the basic commodities. Those consumers who only have low income would choose raw food

or food grains while those who have high income prefer to buy ready to cook food and purchase

product that are not really needed ( Juneja, 2008).

The spending decision of consumers in purchasing basic commodities depends on the

income they receive and the value of a certain product that they want to buy. They are pushed

to purchase such product not because of the product information but because of the situation

they are into. They consider first their buying capacity before deciding whether to purchase the

product or not. Even if the product has the good quality but the price exceeds their budget, they

would find other substitute or alternative of the product (iresearchservices.com, 2018).

According to World Bank Group, due to irregular income and numerous cash emergencies

of low-income earners, they evaluate first the price of the product before having a purchase. It

was also stated that they might choose to buy those products with lower quality if their

purchasing power cannot meet the price of products with an excellent quality. There are

possibilities that low-income consumers might purchase fake or expired products. But there

16
are also cases that they would rather choose to take the risk in buying the products that are not

in the lowest cost as long as the money they spent for that product or service would benefit

them.

Budget Allocation. Low income earners spent much greater share of their budget on

food because they lack money or resources to be used when purchasing another commodity.

For low-income earners their main budget is allocated to the basic necessities, because they

give value first to things that are important for them to live. Budget functions as the money

that low-income families have settled aside to be allocated on different products, in order to

sustain the needs of their families (Currier Erin, 2016).

For low income groups, they allocate a large percentage of their budget mostly on food,

and this indication means that they are vulnerable to high level of inflation. This is because

their demands and wants is hindered by their capacity to buy (Hunter, 2016). The price hikes

also mean that other important matters such as healthcare will be sacrificed due to the lack of

financial capability. Low income earners do not have any other choice but to first prioritize the

most basic needs first before anything else. Moreover, inflation can greatly affect the budget

allocated to a child’s education which is actually one of the most important aspects that can

possibly lift them up from poverty.

According to (Laura Castner, 2010), there are seven major budget categories which are

intended for different purposes such as for food at home, food away from home, apparel and

apparel services, housing, health, transportation, and other personal wants. In the light of

minimal amount of wages received by lower class families, the budget for the seven categories

are not equally distributed. Other benefits coming from the least prioritized category will

eventually be compromised due to insufficient income. No matter how lower class families

17
will plan on how they will efficiently and effectively utilize their income, there will always be

some aspects that will be sacrificed due to the fact that they do not have any other choice but

to choose the most practical things first.

Related Studies

In the study of Ifthikar, Farooq, Zulfiqar and Saqib (2013) entitled “Social class is a

myth or reality in buying behavior” aims to explore the significance of social class and its

connection with the consumers buying behavior. The researchers conclude that the social class

is real and it has direct influence to the consumer’s buying behavior. The study also implies

that the higher the socioeconomic status of the consumer, the greater is their capacity to spend

on comfort and luxury goods. This study indicates the reason why low income earners are the

beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) in order for them to have a

capacity to spend the basic commodities and to lessen the poverty in the country.

The study about “The effects of social‐economic status of consumers on purchasing,

behaving and attitude to food products: Case study of Van, Turkey" of Koc and Ceylan (2012)

investigates the buying habits, behaviors, and consumers’ approach towards food products. To

gather data, the researchers conducted a face to face interview with 300 consumers from

different socioeconomic status in Van, Turkey. The results indicated that consumers from

lower status spend the biggest portion of their income on food products. While, consumers

from high socio-economic status are more conscious in purchasing food products.

A study conducted by Rufino (2013) about the “Consumption Pattern of Poor

Households in Metro Manila - A Microeconometric Evaluation” analyzed the consumption

profile of the poor household in Metro Manila by using a survey design. Based on the overall

18
results, the typical poor household of Metro Manila consider the food, house rent, and utilities

as their basic necessities. The findings also indicate that the typical poor family finds it difficult

to allocate their income for their various consumptions. This study will encourage the 4P’s

beneficiaries to develop a budget allocation for their basic commodities, especially that there’s

an increase of prices of their basic commodities.

In the study of Delos Reyes & Himatay (2010) about “Food Consumption Patterns and

Household Food security in Calabarzon” aims to determine the food intakes of the households

in the area. A descriptive research is used to analyze the data using simple frequencies,

percentages, means, and pie and bar charts. Based on the results, the researchers found out that

the income is directly proportional to the food consumption and food expenditures for the

people in Calabarzon, because as income increased, the food consumption and expenditure

also increased. This study pertinent to the present study due to the implementation of TRAIN

Law, the government increases the subsidy of 4P’s beneficiaries in order to offset the effects

of tax reform to the low income consumers.

A study on “Financial Priorities of 4p’s Beneficiaries: An Assessment Using First

Bucket Theory” of Malaluan, Malaluan, Leyesa, Malayba, & Perez (2018), aims to determine

the demographic profile of 4P’s beneficiaries in terms of terms of age, civil status, number of

dependents, family monthly income and source of income which were described in terms of

food, shelter, clothing and transportation. The researchers used a descriptive type of research

by conducting a survey of 382 beneficiaries in Lipa City. Frequency/percentage, weighted

mean and comparison of mean are used to analyze the data. The results revealed that majority

of the respondents belonged to the age group of 35–55, married, having four dependents,

earning a monthly income of below Php 7890.00 and have a source of income from

19
employment. The respondents highly prioritized their food, transportation, shelter and clothing

respectively. Furthermore, the findings imply that the assistance of the beneficiaries is merely

enough to sustain their needs in daily life. In this study, the researchers are interested to know

the changes of the financial priorities of the 4P’s beneficiaries now that the government

implemented TRAIN Law that results to an increase of inflation rate of some basic

commodities of the lower income earners.

A study of Frufonga (2015) about “The Pantawid Pamilyang Pilipino Program (4Ps) in

Iloilo, Philippines” aims to evaluate the 4P’s beneficiaries in Iloilo, Philippines. Random

sampling was used to choose the 327 beneficiaries as participants. The statistical tools used in

Statistical Package for the Social Sciences (SPSS) software were frequency count, percentage,

and mean. The results showed that the beneficiaries spent the largest amount of income on

food, followed by education, hospitalization (medicine), and savings.

The study of Kristine R. Vigilla (2015) about “Food Expenditure of Pantawid

Pamilyang Pilipino Program Beneficiary and Non-Beneficiary Households” designed to

analyze the food expenditure of the 270 beneficiary of Pantawid Pamilyang Pilipino Program

(4Ps) and the non-beneficiary households in selected barangays in San Pablo City, Laguna,

Philippines. Based on the findings, the beneficiaries allotted the cash assistance that they

received for the school, health and nutrition of the children. The outcome of the correlation

analysis also suggest that the beneficiary households spend more on food than the non-

beneficiary household.

A study of “Dietary Diversity of Pantawid Pamilyang Pilipino Program Beneficiary

and Non-beneficiary Households in Selected Barangays in San Pablo City, Laguna,

Philippines” by Hurtada, Gordoncillo, Depositario, & Vigilla-Montecillo (2017) analyzed the

20
household dietary diversity of beneficiary and non-beneficiary households of Pantawid

Pamilyang Pilipino Program (4Ps). The researchers randomly selected their participants and

the household dietary diversity of household were determined using household dietary

diversity score (HDDS). This result of the study stated that the household dietary diverse score

(HDDS) of the beneficiary household is higher than the non-beneficiary household. The result

illustrates the economic ability of a household in choosing different variety of foods and

explains that the beneficiary household has the higher ability to access foods and they are less

food insecure than the non-beneficiary households.

The study conducted by Pechey & Monsivais (2016) about “The Socioeconomic

inequalities in the healthiness of food choices: Exploring the contributions of food

expenditures” investigates the extent to which food expenditure intervene the socioeconomic

inequalities in the healthiness of household food choices. The findings of the study indicate

that the key contributor to less-healthy food choices among the lower socioeconomic groups

is the lower food expenditure.

An Investigation of Low-Income Consumer-Buying Behavior in the Personal Care

Industry in South Africa by Starkey (2017) determines the buying behavior of the low income

consumers in the Personal Care Industry in South Africa. The phenomenological research

paradigm was used in this study to utilize interviews to collect the data from respondents in

the Western Cape Province. Inductive reasoning was practiced to draw a conclusion on the

investigation of Low Income consumer buying behavior in the personal care industry in South

Africa. The findings from the study indicate that the Low-Income consumers make

substitutions when personal care products fall outside their realm of affordability. This kind of

study indicates that whenever there’s an increase of basic commodities such as food products,

21
the low income earners find a way to make substitution in order to afford the basic

commodities.

The purpose of the study about “Factors Affecting Low-income Women's Food

Choices and the Perceived Impact of Dietary Intake and Socioeconomic Status on Their Health

and Weigh” conducted by Dammann & Smith (2009) was to examine the factors affecting the

food choices of the low-income women and the health beliefs in the context of their weight

and socioeconomic status. The study has a total of 92 low income women participants and

must be in age of 18-65 years old and has 1 child aged at least 9–13 years old. The study finds

out that 75% out of ninety-two low-income women were recognized overweight/obese and

most of them are in control of choosing food products and preparing foods for their families.

The researchers also found out that the lack of budget for healthy foods is the cause of the

health problem among women.

A study about “The art of grocery shopping on a food stamp budget: factors influencing

the food choices of low-income women as they try to make ends meet” of Smith & Wiig (2019)

examines the grocery shopping behavior and food stamp usage of low-income women with

children to identify the factors influencing their food choices on a limited budget. The

questions are constructed based on the Social Cognitive Theory to investigate the food choice

in the context of personal, behavioral and environmental factors. The key findings of the study

suggest that their food choices and grocery shopping behavior were shaped by not only

individual and family preferences, but also their economic and environmental situation. The

transportation and store accessibility were major determinants of shopping frequency, and they

used various strategies to make their food budget stretch (e.g. shopping based on prices, in-

22
store specials). Overall, according to both the qualitative and quantitative data, meat was the

most important food group for purchase and consumption for low income earners.

Families who have a low level of assets have been badly affected by the food price

inflation. They found out that families who is headed by a causal worker have been vulnerable

to the food price shock. In the point of view of poor people in the urban place, these are

troubling results. With the increase of price of the food items, and being casual workers with

low skills appear to have been badly affected by this food price shocks.

A study about Household-Level Consumption in Urban Ethiopia: The Impact of Food

Price Inflation and Idiosyncratic Shock conducted by Alem & Soderbom (2010) showed that

the household demographics appear to play a limited role in coping with the shocks that they

have experienced. It only suggests that labor supply constraints are not the first important

order. Like in their given example, they said that even though there are households in the

sample who has high dependency ratios, it is not enough evidence that a household can respond

to the shock they have faced. Given that food consumption is one of our basic necessity, it is

not more likely to be surprising.

A study conducted by Ashok (2015) about “Consumer’s purchasing pattern in

liberalized market – a study on the household durable products” determine that there are three

macro factors in purchasing factors. First is the economic factors. This factor consists of factors

that affect the consumer purchasing power and the spending pattern of a family. And according

to their study, in analyzing the effects of economic condition, they selected the following

factors as important elements namely the increase of the family income, the availability of

cheap sources of borrowing a money or funds, the availability of attractive sales promotional

schemes, the changes of the rate of taxes and duties given by the government, the availability

23
of surplus funds or savings, the availability of additional sources of income and lastly the

pricing strategies of companies.

In the result of their data gathering, they said that the increase of family income

influences in purchasing durable products. It means that whenever the income increases, the

demand of an individual in purchasing a product also increases at a medium level. Secondly,

the availability of attractive sales promotional schemes by companies also influences their

purchasing of durable products. It means that even though their income increase, consumers

still looked for alternatives in the form of promotional schemes. Thirdly, the pricing strategies

of a company also influences their purchasing of durable products. It means that every time a

consumer purchases durable products, the quality of the products and its price have a major

influence to them. And lastly, the changes in taxes’ rate and duties given by the central or state

government, the availability of surplus funds or savings, and the availability of cheap sources

of borrowing funds also influences them in purchasing durable products. Hence, all the factors

mention above influences the consumers in purchasing different durable products.

Next, the second macro factors in purchasing factors, according to their study is the

social and cultural factors. Life style of a consumer, social values and beliefs which are

gradually changing than they used to become a complex problem to those marketing

executives. The consumer’s behavior according to their study can be also influence by social

factors such as the consumer’s small groups, family and social roles and status. And in

measuring the influence of social and cultural factors hold over the purchase of durable

products, they selected fourteen factors namely the increase of the number of nuclear families,

the influence of reference groups, the chance of more interactions between the member of the

family, the desire for a leisure time, a one’s standard of living and status, the need of comfort

24
and sophistications, the education and the level of the occupation, the dominance of the elderly

members in the family, the influence of the younger generation members in the family, the

compulsions of religious values and moral values, the individual values and attitudes and

experience, the influence of sentimental and traditional values, and lastly the social conditions

and the freedom of an individuals in living and learning attitudes.

And lastly, the third macro factors in purchasing factors is the psychological factors.

According to their study, studying the behaviour of the consumers is much more important

than studying the number of consumers in the market because each of the consumers have their

uniqueness. Their behaviour, attitude, mentality and their personality have their own wants and

how their needs can be satisfied. According to them, a person’s buying decisions are mostly

influenced by a four major psychological factors namely the motivation, perception, learning

and their beliefs and attitudes. And they selected fifteen factors for this study. They are the

increase of competitions among the sellers of different brands, the differences in prices of

products among brands and sellers, the technological superiority seen among the products, the

influence of promotions and additional benefits, the life expectancy of the products, the

assurance of the prompt after the sales service, the resale value of the item, the frequency of

the usage of the products, the increasing of the expectations of the consumers, the availability

of choice leading to complexity in purchase, the brand loyalty of the consumers to the products,

the sentimental or the traditional values, the availability of the leisure time, and lastly the

convenience in using the products and their realization of their ego needs.

Aside from the macro factors influencing the purchasing patterns of durable products,

there are also micro factors influencing it. According to their study, to test the influence of the

micro factors, they selected the following factors namely the sources of information, the

25
product attributes, the policies in pricing, the policy in distribution, the promotion policies of

various corporate sectors, and lastly the various schemes imposed by the company for the mode

of purchase of durable products

26
 CHAPTER III
METHODOLOGY

Research Design

The researchers used descriptive-comparative research design in order to describe and

compare the buying patterns of 4Ps beneficiaries before and after the TRAIN Law

implementation.

Descriptive research design is useful to test and measure large number of samples. This

method is used to obtain a general overview of the subject (Shuttleworth, 2008). Since the

study also includes comparative analysis, it is appropriate to use comparative research design

as well.

Comparative research design is used by researchers to analyze the similarities and

differences of two groups in order to draw a conclusion about the subject (Richardson, 2018).

To achieve its purpose, a descriptive-comparative research design was used. This

design is appropriate to use because it aims to describe the behavior of the 4Ps beneficiaries in

purchasing goods. Comparative design was used to compare if there are any similarities or

differences in the buying pattern of 4Ps beneficiaries before and after TRAIN la w

implementation.

Research Locale

The study was conducted in Palo, Leyte (officially named as the Municipality of Palo).

This is one of the municipalities that was affected by the implementation of TRAIN law and it

also has a large number of 4P’s beneficiaries. The said municipality is divided into 33

27
barangays (villages) and each barangay has 4Ps beneficiaries. According to the 2015 results of

Philippine Statistics Authority (PSA) the Municipality of Palo has a total population of 69,260

households and among there a total of 5,021 households are 4Ps beneficiaries. Two thousand

seven hundred eighty-one (2781) households benefit from the old 4Ps program, the Regular

Conditional Cash Transfer (RCCT) while 2,240 households benefit from the new 4Ps program,

Modified Conditional Cash Transfer (MCCT).

The researchers randomly chose 4Ps beneficiaries from the 33 different barangays and

the latter was assessed through research questionnaires.

Respondents of the Study

The respondents of this study are the 4Ps beneficiaries residing in Palo, Leyte. Out of

69,260 households, 5,021 are registered beneficiaries of two 4Ps programs, namely: Regular

Conditional Cash Transfer (RCCT) with 2,781 beneficiaries; and Modified Conditional Cash

Transfer (MCCT) with 2,240.

The number of household beneficiaries which is 5,021 represent the population and

since it has a large number, the reliable sample size needs to be able to validate the said

population, thus the researchers had 100 households from the 4Ps beneficiaries of Palo, Leyte

as respondents. The respondents will be screened based on their economic status whether they

lack or have enough money to sustain their needs. They are eligible respondents if they were a

beneficiary before the implementation of TRAIN law.

The sampling method used was probability sampling specifically simple random

sampling, wherein each individual is chosen entirely by chance and each member of the

28
population has an equal chance of being included in the sample. This sampling method will

reduce biases and will produce more precise and reliable data result (Easton & McColl's, n.d.).

Instrument of the Study

The researchers used a survey questionnaire as the essential instrument for data

gathering. According to (Sincero, 2012), researchers often choose the survey method over

other means of collecting data due to its various advantages. Thus in this study, the research

instrument is researcher-made. Through surveying, data gathering will be more convenient

because it will be less costly and more precise results will be further produced and elaborated.

The first part of the data instrument was comprised of the questions about the general

background of the respondents. It includes the demographic and socio-economic info of the

4Ps beneficiaries. Next, the last part of the survey revolved around the questions on the

previous and current buying behavior of the respondents in the midst of TRAIN Law

implementation.

Validation of and Establishing Reliability

The constructed questionnaires were validated by an expert research analyst, Professor

Maria Charito L. Suyom, MS Econ, to ensure that the questionnaires will accurately measure

what it aims to do, regardless of the responder. Valid questionnaire helps to collect better data

with high quality comparability which reduces the effort and the increase the credibility of data

(Abdul & Khalid, 2012).

After the survey questionnaire was validated, the researchers conducted a pre-survey

or pilot-testing in order to ensure the validity of the questions formulated. Through this, some

29
parts of the questionnaire was revised so that data gathering will yield more significant

findings. On the pre-survey, individuals who participated were asked for detailed responses to

the list of questions. The researchers guaranteed that the additional information and rare

insights will also be obtained to ensure accuracy and reliability of the data.

Data Gathering Procedure

To ensure effective data gathering for the study, the researchers requested for the

official list of 4Ps beneficiaries, with their addresses, from the officials of each barangay in

Palo, Leyte. These respondents were then be visited from their residences with the help of two

barangay officials. If ever the respondents will have the difficulty in understanding what is

being asked in the questionnaires, then the researchers will clarify the said questions, for them

to comprehend. The researchers clarified the said questions for those who were not able to

understand.

Statistical Treatment

The statistical software that the researchers used was SPSS. SPSS stands for Statistical

Package for the Social Sciences, and it is used by various kinds of researchers for complex

statistical data analysis (Foley, 2018).

To interpret the data effectively, the researchers employ the following statistical treatment:

the percentage, average weighted mean, mode, and frequency.

30
1. Percentage. It is a number or ratio that represents a fraction of 100. This will be employed to

determine the frequency counts and percentage distribution of personal related

variables of the respondents.

2. Average Weighted Mean. It is an average in which each observation in the data set is assigned

or multiplied by a weight before summing to a single average value (n.a., 2018). This will be

used to determine the assessment of the respondents with regards to their personal

profiles.

3. Mode. It is a statistical term that refers to the most frequently occurring number

found in a set of numbers (n.a., 2018). This will be used to identify the most

occurring number in a given set of data.

4. Frequency. It is a number of occurrence of a repeating event per unit of time (n.a.,

2018). This will be used to show how frequent a 4Ps beneficiary purchase a product

before and after the enactment of TRAIN Law.

5. Frequency Distribution Table. It is a chart that shows the frequency of certain

outcome occurring in a data sample (Bridgens, n.d.). This will give an outline of

the data to allow the researchers to find the changes in the buying pattern of the 4Ps

beneficiaries.

31
 CHAPTER IV
DATA ANALYSIS AND RESEARCH FINDINGS

This chapter overseen the analysis and interpretation of the data gathered by the

researchers. These are presented in tables following the sequence of the specific research

problem regarding the impact of the implementation of TRAIN law to the buying pattern of

4Ps beneficiaries.

Table 1

Food and Beverages Frequency Rank Overall Rank

Grains 99 1
Meat and Poultry 20 18
Fish 70 10
Dairy Products 23 17
Fruits and Vegetables 24 15
Sweetener 7 25 1
Condiments 3 26
Drinks 1 27
Canned Foods 8 23.5
Water 45 13
School Supplies
Writing Tools 63 11
Paper 76 8
Notebooks 95 2 3
Books 9 21.5
Art Materials 9 21.5
Bags 48 12
Toiletries
Detergent 84 6
Bath Soap 86 5
Oral Hygiene 81 7
Hair Products 30 15 2
Personal Creams 8 23.5
Sanitary Napkin 11 20
Clothing
Casual Attire 92 3
Semi-Formal 35 14
Formal 12 19

32
 Uniform 89 4 Common
Undergarments 72 9
Goods
bought Before the Implementation of TRAIN Law

Table 1 shows the goods or products that are commonly bought by 4P’s

beneficiaries in Palo, Leyte before the implementation of TRAIN Law. Food and beverages is

the most common good consumed by the 4P’s beneficiaries. Grains is the most frequent

product that was bought in this category. Next is the toiletries, the usual products bought are

33
bath soap, detergent, and oral hygiene. Lastly, the school supplies, notebook, paper and writing

tools are commonly bought by the beneficiaries. This implies that 4Ps beneficiaries prioritize

buying food compared to other necessities.

Table 2
Common Goods bought After the Implementation of TRAIN Law
Food and Beverages Frequency Rank Overall Rank
Grains 97 1
Meat and Poultry 20 18
Fish 67 10.5
Dairy Products 18 19
Fruits and Vegetables 24 17
Sweetener 7 25 1
Condiments 2 26
Drinks 1 27
Canned Foods 27 16
Water 37 13
School Supplies
Writing Tools 67 10.5
Paper 75 8
Notebooks 87 3.5 3
Books 15 21
Art Materials 14 22
Bags 42 12
Toiletries
Detergent 80 6
Bath Soap 85 5
Oral Hygiene 76 7
Hair Products 33 15 2
Personal Creams 13 23.5
Sanitary Napkin 13 23.5
Clothing
Casual Attire 88 2
Semi-Formal 35 14
Formal 16 20
Uniform 87 3.5 4
Undergarments 74 9

Table 2 shows the goods or products that are commonly bought by 4P’s beneficiaries

in Palo, Leyte after the implementation of TRAIN Law. There is almost no difference between

34
the previous table shown above except there is an increase in the frequency of buying other

food and beverages. Grains is still the most frequent product that the beneficiaries purchase.

According to Koc and Ceylan, the study implies that the socio-economic status of consumers

affects their behavior and attitude towards purchasing food products. The result shows that

consumers from low socio-economic status spend the biggest portion of their income on food

products. This implies that whether or not TRAIN law is implemented, the necessities that the

4Ps beneficiaries bought will undergo bare to no changes, as it already became a form of

automaticity.

Table 3
Location Preference of Purchasing Goods Before the Implementation of TRAIN Law
Town Market Convenient Store Malls Thrift Store
Food And 76 23 1 0
Beverages
School Supplies 48 21 27 4
Toiletries 42 47 10 1
Clothing 26 3 15 56

Table 3 shows the result where 4Ps beneficiaries usually bought goods before the

implementation of TRAIN law. Town market is the most common place where they purchase

food and beverages and school supplies. This implies that the beneficiaries often purchase in

places that offers variety of differentiated products which is also near their location. While for

the clothing, they usually bought in the thrift store, as this is where affordable clothes can be

found.

Table 4

35
Location Preference of Purchasing Goods After the Implementation of TRAIN Law
Town Convenient Store Malls Thrift Store
Market
Food And 72 25 3 0
Beverages
School Supplies 44 31 24 1
Toiletries 36 53 10 1
Clothing 28 1 20 51

Table 4 shows the result where 4Ps beneficiaries usually bought goods after the

implementation of TRAIN law. As shown in Table 5, Town market is still the most common

place where they purchase food and beverages and school supplies. According to Hawes, it

was concluded that the socioeconomic status influences the purchasing pattern of consumers

in terms of where to purchase products. It was indicated that consumers from lower status

prefer to purchase in nearby stores and are less likely to visit different types of store. This

implies that the whether or not there is an implementation of TRAIN law, the location of which

the beneficiaries will purchase their product will stay the same.

Table 5

Frequency of Purchasing Goods Before and After the Implementation of TRAIN Law

BEFORE AFTER
Everyday Once a Twice Once a Everyday Once a Twice Once a
Week a Month Week a Month
Week Week
Food and 60 19 7 14 65 16 6 13
Beverages

36
 School 5 20 19 56 9 18 23 50
Supplies
Toiletries 22 37 19 22 27 34 17 22
Clothing 2 5 4 89 6 5 6 83

Table 5 shows the comparison of how often 4Ps beneficiaries purchase products before

and after the implementation of TRAIN law. Food and beverages are purchased almost every

day. This implies that 4Ps beneficiaries purchased goods in small quantity only since the food

that they will be buying are easily perishable due to lack of equipment preserving foods. After

the implementation of TRAIN law, the number of 4Ps beneficiaries that purchases food and

beverages increased. This implies that since there is an increased of prices, 4Ps beneficiaries

cannot purchase large quantities of goods, that is why they prefer purchasing in smaller

quantities.

Table 6
Budget Allocation for goods Before and After the Implementation of TRAIN Law
BEFORE AFTER
Below 100 500 1000 1500 Below 100 500 1000 1500
P100 to to to to P100 to to to to
500 1000 1500 2000 500 1000 1500 2000
Food and 31 55 7 6 1 29 49 17 3 2
Beverages
School 23 46 18 10 3 20 52 21 6 1
Supplies
Toiletries 48 48 4 0 0 39 46 13 2 0
Clothing 9 50 27 11 3 14 44 27 12 3
Table 6 shows the budget allocation for each necessities that the 4Ps beneficiaries

bought before and after the implementation of TRAIN law. As shown in Table 5, majority of

the beneficiaries allocate their budget mostly on food and beverage. The usual budget for

purchasing goods is around P100 to P500. This implies that there is a lesser budget if the

beneficiaries will purchase goods in a smaller quantity compared to larger ones. Even after the

37
implementation of TRAIN law, there is only a minimal change for the budget allocation for

some products.

Significant Changes between the Buying pattern of 4Ps Beneficiaries Before and After the

Implementation of TRAIN Law

The common goods purchased has bare to no significant changes before and after the

implementation of TRAIN law, especially on food and beverages because the common goods

purchased by the consumers remains the same since these are primary necessities, therefore

increase or decrease of prices, 4Ps beneficiaries still purchase the products. Although there is

a change on the frequency of purchasing the basic commodities. 4Ps beneficiaries tends to

purchase on smaller quantities after the implementation of TRAIN law. The location

preference of the consumers still remains the same but differs on the frequency of which the

4Ps beneficiaries will go to purchase goods. The budget allocation, on the other hand, stays the

same, except for toiletries, which has a highly significant difference compared to before the

implementation of the TRAIN law.

Therefore, there is a minimal change between the buying pattern of 4Ps beneficiaries

before and after the implementation of TRAIN law.

CHAPTER V
SUMMARY/ CONCLUSION/RECOMMENDATION

This chapter presents the summary of findings, conclusions, recommendations and

suggestions for further research.

38
Summary

1. Before the implementation of TRAIN Law, the common goods purchased by the 4Ps

beneficiaries are food and beverages specifically grains which are the primary product.

2. Food and beverages are usually purchased and grains are still the primary product that

are commonly bought by the consumers after the implementation of TRAIN Law.

3. Even before and after the implementation of TRAIN Law, 4P’s beneficiaries are likely

to buy products, specifically food and beverages and school supplies, in the town

market which can be easily located and accessed in their location.

4. 4Ps Beneficiaries often purchase food and beverages every day while other necessities

take a week before they re-purchased again.

5. Before and After TRAIN law implementation, half of the budget of 4Ps beneficiaries

is allocated to food and beverages ranging from P100-P500, since they will be

purchasing a smaller quantity each day.

6. There are no significant changes in budget allocation for food and beverage, clothing,

and school supplies even after the implementation of TRAIN, but there is an increase

of budget allocated for toiletries after TRAIN law has been implemented.

7. Because TRAIN law was recently implemented, the researchers conclude that there is

bare to no changes in the buying pattern of 4Ps beneficiaries. Though minimal changes

have been observed, the impact of the implementation will be greatly felt in the long

run.

Conclusion

The researchers conclude that:

39
 1. 4Ps beneficiaries prioritize the purchase of primary goods needed for every day

consumption.

2. Even if prices of basic commodities increases, 4Ps beneficiaries will still purchase the

products for daily consumption.

3. 4Ps beneficiaries purchase products in a location which can be easily accessed to.

4. Food and Beverages are bough every day while other necessities are re-purchased after

a week or month of purchase.

5. Budget for necessities mostly range from P100-P500 since 4Ps beneficiaries often

purchased in smaller quantities.

6. There is an increased of budget for toiletries because most of the 4P beneficiary’s

occupation is offering a laundry service to other people, thus increase of consumption

of toiletries occur, while there are no significant changes of budget allocation in other

necessities.

7. There is bare to no changes between the buying pattern of 4Ps beneficiaries before and

after the implementation of TRAIN law.

Recommendation

1. Results show that buying patterns does not change in an instant as 4Ps beneficiaries

practiced the form of automaticity.

2. Budget allocation for daily consumptions are expected to be lesser due to purchase of

smaller quantities.

40
 3. The biggest portion of income of low-income earners will always be allocated to food

products compare to other necessities.

4. Implementation of TRAIN law helps the 4Ps beneficiaries increase their budget in daily

expenditures.

5. Data will be more substantial if the respondents of the study will consist of more than

what is stated in the study.

BIBLIOGRAPHY

Abdul, M. K., & Khalid, W. (2012, May). Questionnaire designing and validation. Retrieved
from Journal of Pakistan Medical Association:
www.jpma.org.pk/full_article_text.php

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Alem, Y., & Soderbom, M. (2010). Household-Level Consumption in Urban Ethiopia: The
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APPENDIX A

Dear Respondents:

46
Greetings!

We, the Grade 12 students from Saint Paul School of Professional Studies are conducting a
study about the impact of TRAIN Law to the 4Ps beneficiaries. In line with this, we have chosen you
as our respondent of this study and we are asking for your time and effort to answer the questions
honestly. Rest assured that all data gathered from you will only be used for academic purposes and will
be treated with utmost discretion and confidentiality for your personal safety.

Thank you for your cooperation.

Name: _____________________________________ Age: _______________

Number of family members: __________ Number of 4Ps beneficiaries: _________

Direction: Put a check mark ( ) on the corresponding boxes of your choice.

1. What were the three (3) most common goods that you usually buy before TRAIN Law was

implemented? (Choose 3 items for each category)

BEFORE

Category of goods
Food and Beverages Toiletries School Supplies Clothing and Accessories

 Grains  Laundry soap,  Writing Supplies  Casual Clothes

 Meat detergent, and  Paper  Formal Clothes
 Fish bleaches  Notebooks  Uniform
 Dairy Products  Bath, facial, and hand  Books  Undergarments
 Fruits and Vegetables soaps  Arts & Crafts
 Sweeteners  Oral hygiene products  Bags
 Condiments  Hair care products
 Beverages  Personal creams,
 Canned food lotion, and oils
 Water  Sanitary Napkin

2. What were the three (3) most common goods that you usually buy after TRAIN Law was

implemented? (Choose 3 items for each category)

AFTER
47
 Category of goods
Food and Beverages Toiletries School Supplies Clothing and Accessories

 Grains  Laundry soap,  Writing Supplies  Casual Clothes

 Meat detergent, and  Paper  Semi-formal Clothes
 Fish bleaches  Notebooks  Formal Clothes
 Dairy Products  Bath, facial, and hand  Books  Uniform
 Fruits and Vegetables soaps  Arts & Crafts  Undergarments
 Sweeteners  Oral hygiene products  Bags
 Condiments  Hair care products
 Beverages  Personal creams,
 Canned food lotion, and oils
 Water  Sanitary Napkin

3. Where did you usually buy the products that you need before and after TRAIN Law was

implemented?

BEFORE
Food and Beverages Toiletries School Supplies Clothing and Accessories

 Town market  Town market  Town market  Town market

 Convenience store  Convenience store  Convenience store  Convenience store
 Malls  Malls  Malls  Malls
 Thrift store  Thrift store  Thrift store  Thrift store

AFTER
Food and Beverages Toiletries School Supplies Clothing and Accessories

 Town market  Town market  Town market  Town market

 Convenience store  Convenience store  Convenience store  Convenience store
 Malls  Malls  Malls  Malls
 Thrift store  Thrift store  Thrift store  Thrift store

4. How often did you purchase a certain product (food, clothing, school supplies, and hygiene

products) before and after TRAIN Law?

BEFORE 48
 Food and Beverages Toiletries School Supplies Clothing and Accessories

 Everyday  Everyday  Once every two weeks  Once every two weeks
 Once a week  Once a week  Once a week  Once a week
 Twice a week  Twice a week  Once a month  Once a month
 Once a month  Once a month  Twice a year  Twice a year

AFTER

Food and Beverages Toiletries School Supplies Clothing and Accessories

 Everyday  Everyday  Once every two weeks  Once every two weeks
 Once a week  Once a week  Once a week  Once a week
 Twice a week  Twice a week  Once a month  Once a month
 Once a month  Once a month  Twice a year  Twice a year

49
 5. How much was your budget for the following products before and after TRAIN Law?

BUDGET
BEFORE
Food and Beverages Toiletries School Supplies Clothing and Accessories

 Below 100  Below 100  Below 100  Below 100

 P100-P500  P100-P500  P100-P500  P100-P500
 P500-P1000  P500-P1000  P500-P1000  P500-P1000
 P1000-P1500  P1000-P1500  P1000-P1500  P1000-P1500
 P1500-P2000  P1500-P2000  P1500-P2000  P1500-P2000

AFTER
Food and Beverages Toiletries School Supplies Clothing and Accessories

 Below 100  Below 100  Below 100  Below 100

 P100-P500  P100-P500  P100-P500  P100-P500
 P500-P1000  P500-P1000  P500-P1000  P500-P1000
 P1000-P1500  P1000-P1500  P1000-P1500  P1000-P1500
 P1500-P2000  P1500-P2000  P1500-P2000  P1500-P2000

50
51