BIBLIOGRAPHY LEGANIO, JENIO M. APRIL...

BIBLIOGRAPHY
LEGANIO, JENIO M. APRIL 2011. Chain Actors Perception on Quality of Chayote in
the Spot Market.Benguet State University, La Trinidad, Benguet.
Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)

ABSTRACT
This study was conducted following the geographic flow of chayote from the major
source (production) to the major market assembly and collection, and the geographic distribution
and retailing markets to determine the perceived quality criteria used by the chain actors in
selling and procuring chayote from different points in the spot market chain, to determine the
perceived abilities to meet the criteria used by the chain actors in the spot market, to determine
the perceived inabilities the chain actors needs and the various constraint to meet the quality of
chayote offered for sale.
The results revealed that the perceived product quality, the different chain actors give
much importance to color and size of chayote. Some of the perceived product quality criteria are
free from chemical residue, pest and diseases and physical injury, and firmness of chayote. In the
perceived service quality most of the chain actors are undecided to the criteria, but given much
importance to the adequacy of logistics.
In the perceived functional quality, most of the actors are not extending credit term
arrangement, and have no outstanding loan from the buyers. However, actors (sellers) give notice



about supply shortage and price changes. Moreover, the sellers must accurately weighed and
packed the chayote. Most actors however were not flexible in pricing chayote.
To the perceived abilities to meet the quality requirements, the actors appropriately
classify, weigh and pack the chayote before trading. Not all actors can sell/buy chayote at a
negotiated price, and the usually buy/sell chayote which are fresh, clean and firm.
The different actors’ inabilities were dependence on the quality/quantity of chayote
produce/procure, and some respondents claimed to have insufficient capital to produce/procure
chayote.
Most of the constraints encountered by the respondents to improve/maintain the quality
of chayote offered were as follows: the inadequacy of logistics facilities/equipment, less control
in grading/packaging and lack of storage facility in trading.
It is recommended that the different actors should plan and worked together inorder to
obtain and to improve the quality of chayote sold in the spot market.The farmer must be given
priority for improvement, and they must produced chayote free from pest and diseases, chemical
residue and physical injury, the color and size of chayote are specified, the chayote must be firm,
fresh and clean to meet the buyers requirements.




1

INTRODUCTION
Rationale
Chayote is considered as one of the cash crops in Benguet. In fact, it was claimed
as the “hanging green gold" since it provides a promising income to farmers with low
production cost. The province of Benguet is one of the producers of fresh chayote in the
Philippines. The province produced an average of 55,833 metric tons of chayote yearly
and being traded at La Trinidad Vegetable Trading Post (LTVTP), Merryland trading
center, in La Trinidad and Hangar Market in Baguio City. Trucks, ford fierra, jeeps,
vans, and buses are used to transport the product to these trading centers. Poor road
condition and the absence of farm to market roads and the quality of postharvest handling
affects the freshness of the product.
Today, trading of vegetable involved many activities and different processes takes
place. In the spot market, imperfection is a vague concept because there are many sources
and effect of market failure. The problem of imperfection market transaction could stem
from the action of people that function within the market. Farmers or producers tend to be
the weak party in the supply chain due to the distance to market, asymmetric quality and
price information and lack of joint actions. They are, consequently very dependent on the
structure and performance of the supply chain for the part of the value added that they
receive (Tilburg et al., 2007).
Most research being conducted in the province is concern with the production
aspect of agriculture and they have overlooked the importance of a well functioning
supply chain.

Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

2

Statement of the Problem
1. What are the perceived quality criteria used by the chain actors in selling and
procuring chayote from different point in the spot market chain?
2. What are the perceived abilities to meet the criteria used by the chain actors in
the spot market?
3. What are the perceived inabilities of the actor’s to meet needsof market
intermediary and the various constraints to meet the quality of chayote offered for sale?
Objective of the Study
1. To determine the perceived quality criteria used by chain actors in selling and
procuring chayote from different point in the spot market chain in terms of:
a. Product (technical) quality
b. Service quality
c. Functional quality
2. To determine the perceived abilities of actors to meet the quality criteriaused by
the buyers in the spot market.
3. To determine the perceived inabilities of the actors to meet the needs of market
intermediaries.
4. To determine the constraints or barriers to improve the quality demand of the
buyers.
Importance of the Study
In the Philippines, agricultural commodity supply chains researches become a
research priority agenda for industry development. Hence, this research would contribute
in some ways information about the fresh vegetable spot market. The expected research
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

3

results would in one way or another could be a source of information to explain the
behavior of spot market actors.
Scope and Delimitation of the Study
The scope of this study focus on the fresh vegetables sector supply chain analysis
in the Cordillera Administrative Region, Philippines using the supply chain management
theories with emphasis on the behavioral dimension specifically focusing on the quality
perception.
The limitations associated in this study primarily relate:
1. The fresh vegetables spot market or wet market supply chain operations.
Institutionally initiated vegetables supply chains that involve highly organized firms will
not be considered.
2. The unknown number of target groups of respondents; the multiple functions
(especially the traders) in the marketing process and the non-accommodating traders to
give information.
3. The chain actors involve in production and market transactions on chayote in
the region shall be the major focus of this research and exclude the other actors involved
in other type or variety of vegetables from the other regions.
4. The research locations to be covered will be limited to major production and
marketing areas of chayote in CAR and Metro Manila.
5. The analysis shall be focused on the objectives and framework of this research.


Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

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REVIEW OF LITERATURE
Supply Chain and Networks
Folkerts and Koehorst (1998) define supply chain as “a set of interdependent
companies that work closely together to manage the flow of goods and services along the
value-added chain of agricultural and food products, in order to realize superior customer
value at the lowest possible cost”.Van der Vorst (2000), further defined supply chain as
“a network of physical and decision making activities connected by material and
information flows that cross organizational boundaries.” According to Lambert and
Cooper (2000), there are four main characteristics of a supply chain: First, it goes through
several stages of increasing intra- and inter- organizational, vertical coordination. Second,
it includes many independent firms, suggesting that managerial relationship is essential.
Third, a supply chain includes a bi-directional flow of products and information and the
managerial and operational activities. Fourth, chain members aim to fulfill the goals to
provide high customer value with an optimal use of resources.
Supply chain means the process of planning, implementing and controlling the
efficient, cost effective flow and storage of raw materials, in-process inventory, finished
goods and related information from the point-of-origin to point of final consumption for
the purpose of conforming to customer requirements (Council of Logistics Management
1986).Supply chain is a dual flow of products and information. It is the drive to meet the
central needs of the consumer and it stresses the importance of the relationships between
participants in the marketing system. However, the tendency is often focus solely on the
immediate economic aspects when firms are building supply chains (Champion and
Fearne, 2000). Hongze Ma (2005) pointed out that supply chain is a network of
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

5

organizations from suppliers with the purpose to improve the flow of material and
information. Drabenstott (1999) discusses the increasing move toward the development
of supply chains and describes supply chain structures where all stages of production,
processing and distribution are bound together tightly to ensure reliable, efficient delivery
of high quality products.
Networks or business networks on the other hand is defined as a set of two or
more connected business relationships, in which each exchange relation is between
business firms that are conceptualized as collective actors (Anderson et a1., 1994).
Networks are specific properties of the transaction relationships, typifiedby relational
relationships in which formal and informal sharing and trust building mechanisms are
crucial (Zylbersztjn and Farina 2003). In essence are the concept of “collective actor” and
consequently the existence of “collective actions.” Networks are looked upon as the total
actors within one industry and/or between related industries, which can potentially work
together to add value to customers. The basic assumptions on networks: (1). There exists
collective actors within an industry who can potentially work together to add value to
customers (2) One actor is dependent on the resources controlled by another and (3.)
There are established long-term relationships with formal and informal sharing and trust-
building mechanisms.
Perceptions and Quality in the Supply Chain
Robbins (1988) defined perception as a process by which individuals organize
and interpret their sensory impressions in order to give meaning to their environment.
People can emerge with different perceptions on the same object because of three
perceptual processes: selective attention, selective distortion, and selective retention.
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

6

1. Selective attention means that a marketer has to work hard to attract
consumers’ notice.
2. Selective distortion is the tendency to twist information in a way that will fit
one’s preconceptions. Unfortunately, there is not much a marketer can do about selective
distortion.
3. In selective retention,people will forget much that they learn but will tend to
retain information that supports their attitudes and beliefs. Because of selective retention,
people are likely remember good points mentioned about a product they like and forget
good points mentioned about competing products (Berelson and Steiner, 1964).
A number of factors operate to shape and sometimes distort perception. These factors
can reside in the perceiver, in object, or target, or in the context of the situation which the
perception is made. When an individual looks at a target and attempts to interpret what he
sees, his personal characteristics heavily influence the interpretation. These personal
characteristics include attitudes, personality, motives, interest, past experiences, and
expectations (Robbins 1988). Individuals cannot assimilate all they observe, so they
engage into selectivity depending on the observer’s interests, background, experience,
and attitudes.
Quality and Its Dimension.
Quality is determined based upon the customer’s actual experience with product
measured against the customer’s stated requirements (Fiegenbaum, 1991). It does not
necessarily mean best; quality means fitness for intended purpose; it may also mean
providing customers with products that consistently meet their specifications. Customers
that are in businesses will define quality very clearly using specifications, standards and
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

7

other measures. However, it is not just product quality that is important; quality also
describes the way in which suppliers go about meeting the needs of their customers,
providing the product on time, in the quantity required, correctly packaged and correctly
invoiced. Perceived quality therefore is a major factor by which people make distinctions
in the marketplace. Quality entails being responsive, pro-active and reactive, and about
being able to meet customer’s special request (Batt, 2005).
Gronroos (1990) describes quality by differentiating it into two dimensions:
technical and functional. Technical quality describes the customer’s specifications. This
is a physical description of the product in terms of its size; shape; color; freedom from
pests and diseases; purity (in terms of its freedom from chemical contaminants,
pathogenic organisms and genetically modified plants); maturity or freshness; and the
manner in which the product is packed. Functional quality, on the other hand, describes
the way a supplier goes about delivering the product to the customer. Fundamentally, this
means being able to deliver the product when the customer wants it. By implications, it
involves many inter-related activities such as production, scheduling, storage and
warehousing, logistics, ordering and invoicing.Parasuraman (1998) introduced a third
dimension called service quality, which describes the extra things a supplier is willing to
do to retain customer’s business.While the exact meaning of the term “service” varies
with the nature of the product and the requirements of the buying organizations, service
may include such variables as providing technical assistance, innovative suggestions,
credit arrangements, support for special needs, or providing advance notice of impending
price changes or shortages in supply (Hutt and Speh, 1995).

Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

8

Perceived Quality
The fresh vegetables sector supply chain in the Philippines, the operation is
generally characterize as spot-markets or networks, hence the transactions involves the
interactions of chain actors in the market. These chain actors (farmers, assemblers,
trucker-wholesalers and retailers) may assume varied perceptions about quality. In most
cases, the physical quality of vegetables is given more importance while the other criteria
are sometimes overlooked. In the frame of this study is to examine the perceived quality
based on the selective retention perception concept (Robbins, 1988) and the descriptions
and dimensions on quality as Gronroos (1990) - technical and functional quality; and
Parasuraman (1998) - the service quality defined.
Definition of Terms
Producer/ Farmer- the one who produces the commodity.
Wholesaler-refers to middlemen who directly sell chayote to retailers in wholesale
basis.
Assembler wholesaler- they are the one who assemble the product to make it in a
large quantity.
Trucker/ viajeros- this are wholesaler who purchase vegetables from the trading
post and distribute the vegetables to the different market centers in provinces or regions.
Retailer- refers to the individuals who market chayote directly to ultimate
consumer.
Spot Market- place where the product are being deliver and sold.
Abilities- this refers to the capability of the actors in the spot market in meeting
the quality requirements.
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

9

Inabilities- this refers to the inabilities of the chain actors in the spot market in
meeting the quality requirements.
Conceptual Framework
In the frame of this study, we consider the supply chain management definition as
a network of interconnected activities of individuals operating independently but
dependent on the supply of goods and services from other individual. The fresh vegetable
industry as supply chains involves number of different groups of people, institutions, and
processes. The people (organizations) are the chain actors performing different functions
in the flow of goods; operate the business independently and manage intra– and inter-
organizational relationships; and the exchange processes involve formal and informal
coordination of activities and information.

Chain Actors

Farmers


Expected Output
D
Assembler-
imensions of
Perceived quality
Quality:Perceptions
Wholesalers
criteria


Technical

(Physical)
Trucker-Wholesalers
Perceived abilities


Service



Functional
Wholesalers
Perceived inabilities




Wholesaler-Retailers
Various constraints

to meet quality


Retailers


Figure 1. Conceptual framework
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011



METHODOLOGY
Locale and Time of the Study
The study was conducted in La Trinidad, Benguet which served as the primary
markets (assembly/collection), and the secondary markets are Urdaneta, Pangasinan and
Metro Manila such as Balintawak market and Urdaneta city. While the tertiary markets
are Novaliches, Kamuning, Mega Q, Nepa Q, Blumentritt and Basilio. The research was
conducted on November 2010 to January 2011.
Respondents of the Study
Table 1 shows the distribution of sample size according to respondents. The
respondents represent the major actors in the fresh vegetables supply chain. The
production group is composed of Cordillera farmers producing chayote. The next groups
of respondents are the primary buyers representing the assembly/collection group which
consist of the assembler-wholesalers and the financier-assembler-wholesalers. Most of
them are operating in the La Trinidad Vegetable Trading Post, and in the privately owned
and managed trading facility. The third group is the distributors consist of the trucker-
wholesalers, wholesalers and wholesaler-retailers. The trucker-wholesaler respondents
are those responsible in the transportation and distribution of vegetables to various
geographic market outlets. The wholesalers and wholesaler-retailers, on the other hand,
are traders in the spot markets to whom the trucker-wholesalers supply the vegetables.
The last group is the retailers representing the last link in the marketing process. The
retailers sell the vegetables to ultimate users or consumers.




Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011


Table 1. Distribution of sample size according to respondents

RESPONDENTS GROUP
TOTAL SAMPLE SIZE
Farmers
30
Assembler/ collector

• Assembler-wholesalers
19
• Financier/wholesaler-retailers
16
Distributors

• Trucker-wholesaler
11
• Wholesaler/ Wholesaler-retailers
49
Retailers
48
TOTAL
173

Data Gathering Procedure
The data required to answer the research questions will obtained primarily
through a survey with the use of interview schedules and observation.
Data Gathered
The data gathered was the perceived quality criteria such as perceived technical or
physical quality, functional quality and service quality. The perceived abilities and
inabilities of chain actors were also gathered and the various constraints to meet the
quality of chayote.
Data Analysis
The data was tabulated in Excel program and analyzed using the SPSS Version
16. Frequency counts, average and percentages was used for descriptive analysis which
Kruskal-Wallis test for statistical test.
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011



RESULT AND DISCUSSION
Demographic Profile of Respondents
Age.Table 2 shows the demographic profile of the different respondents groups.
Majority of the farmers (46%), assembler-wholesalers (32%) wholesaler (36%) and
wholesaler-retailers (37%) belong to age bracket of 21-30 years old, while the financier-
assembler-wholesalers (44%) and trucker-wholesalers (45%) are in older bracket of 31-
40. Majority of the retailers (38%) belong to the oldest age bracket of 41-50 years old. It
can be noted however that respondents from different groups with age of over 51 years
old. The result implies that age is not a factor to engage in vegetable business as long as
they can perform the task required.
Gender.Mostly of the farmers (90%), assembler-wholesalers (68%) and trucker-
wholesalers (67%) are males which the other groups were dominated by female. The data
implies that the domination of gender in some activities/functions differ from other
activities. Like for example, in production the male dominated the females as reflected by
the nature of works.
Marital status. Almost all the respondents are married and therefore implies that
engaging in vegetable business would the source of livelihood for the family. There is
also a significant number of respondents that are single .It could be observed further;
from the different groups of respondents that there were actors to be separated and
widow. It may assumed that vegetable business could be their chosen occupation.
Religion. Almost all the respondents interviewed from production group to
retailing group were Catholic. However, some respondents were Protestant and other
religious affiliation.
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011


Table 2. Demographic profile of respondents
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING

PARTICULAR
F
A-W
F-A-W
T-W
W
W-R
R
N
%
N
%
N
%
N
%
N
%
N
%
N
%

Age
20 and below

0

0
2

11

0

0

0

0
3

21

3

9

0
0
21-30
14
47
6
32
3
19
4
36
5
36 13
37
11
23
31-40
10
33
5
26
7
44
5
45
1
7 12
34
10
21
41-50
5
17
3
16
4
25
1
9
3
21
2
6
18
38
51-60
1
3
3
16
2
13
1
9
2
14
3
9
7
15
60 and above
0
0
0
0
0
0
0
0
0
0
1
3
2
4
TOTAL
30 100 19 100 16 100 11 100 14 100 35 100
48
100
Gender
Male

27

90

13

68

5

31

7
64
4

29

12

34

9

19
Female
3
10
6
32 11
69
4
36 10
71 23
66
39
81
TOTAL
30 100 19 100 16 100 11 100 14 100 35 100
48
100
Marital Status
Single

9

30
2

11

1

6

5
45
7

50

16

46

9

19
Married
21
70 17
89 14
88
6
55
6
43 18
51
38
79
Separated
0
0
0
0
1
6
0
0
0
0
0
0
1
2
Widow
0
0
0
0
0
0
0
0
1
7
1
3
0
0
TOTAL
30 100 19 100 16 100 11 100 14 100 35 100
48
100
Religious Affiliation
Catholic
22
73

14

74

10

63

11

100

13

93

26

74

41

85
Protestant
8
27
3
16
5
31
0
0
2
14
7
20
5
10
Others
0
0
2
11
1
6
0
0
0
0
1
3
2
4
TOTAL
30 100 19 100 16 100 11 100 14 100 35 100
48
100
Educational Background
Elementary
9
30
2

11

4

25

2
18
2

14

6

17

7

15
High School 14
47
9
47
4
25
3
27
5
36 14
40
29
60
College
7
23
8
42
8
50
6
55
7
50 13
37
10
21
Vocational
0
0
0
0
0
0
0
0
0
0
2
6
2
4
TOTAL
30 100 19 100 16 100 11 100 14 100 35 100
48
100
Legend:
F-farmers

A-W-assembler-wholesalers
F-A-W- financier-assembler-wholesalers
T-W- trucker-wholesalers W-wholesalers

A-W-assembler-wholesalers
R-retailers
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011


Educational background.Most of the farmers, assembler-wholesalers, wholesaler-
retailers and retailers respondents achieved high school education. The financier-
assembler-wholesalers, trucker-wholesalers and wholesalershave attained college degrees
or college level. Some wholesaler-retailers and retailers are vocational graduate. This
result implies that the respondents have more or less with formal studies, thus proving to
be engage in vegetable business must be literate.
Number of years engaged in business. Table 3 shows the number of years
engaged in chayote trading. Results showed that majority of the assembler-wholesalers
(42%), financier-assembler-wholesalers (38%), trucker-wholesalers (36%), wholesalers
(43%), and wholesaler-retailers (32%) were engaged in business for 1-5 years. It also
indicates that some farmers (37%) and retailers (28%) have been trading chayote for 6-10
years. It could be noted from the different groups, a representative number of actors to
the business for over 11 years and some are 21 years. In fact, there are wholesaler-
retailers (9%) and retailers (2%) who had been operating their business for over 31 years.
Organizational affiliation.As exhibited in Table 4, Most of the respondents were
notaffiliated to any organization, but few farmers (10%) and wholesalers (14%) were
affiliated to farmer’s association. Some respondents from production to retailing were
cooperative members and other respondents were connected/affiliated to other
organizations like traders or vendors association. The results revealed that most of the
respondents could never see/consider the importance of organizations in the business
undertaking.


Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011


Table 3. Number of years engaged in business
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING
YEARS
F
A-W
F-A-W
T-W
W
W-R
R
N
% N
% N
% N
% N
% N
%
N
%
Below 1 year
0
0
1
5
0
0
0
0
6
43
5
14
2
5
1-5 years
9
30
8
42
6
38
4
36
6
43 11
31
1
2
6-10 years
11
37
5
26
2
13
3
27
1
7
8
23
12
28
11-15 yrs
6
20
3
16
6
38
4
36
0
0
5
14
8
19
16-20 yrs
2
7
0
0
0
0
0
0
0
0
1
3
4
9
21-25 yrs
1
3
1
5
1
6
0
0
0
0
1
3
11
26
26-30 yrs
1
3
1
5
1
6
0
0
1
7
1
3
9
21
31 and above
0
0
0
0
0
0
0
0
0
0
3
9
1
2
TOTAL
30
100 19 100 16 100 11 100 14 100 35 100
48
100
Legend:
F-farmers

A-W-assembler-wholesalers F-A-W- financier-assembler-wholesalers
T-W- trucker-wholesalers W-wholesalers
A-W-assembler-wholesalers
R-retailers

Table 4. Organizational affiliation
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING
ORGANIZATION F
A-W
F-A-W
T-W
W
W-R
R
N
%
N
%
N
%
N
%
N
%
N
%
N
%
Farmer's
Organization
3
10
0
0
0
0
0
0
2
14
0
0
0
0
Cooperative
2
7
2
11
4
25
3
27
1
7
6
17
2
4
Others
0
0
3
16
2
13
3
27
0
0
3
9
5
10
None
25
83 14
74 10
63
5
45 11
79 26
74
41
85
TOTAL
30
100 19 100 16 100 11 100 14 100 35 100
48 100
Legend:
F-farmers

A-W-assembler-wholesalers F-A-W- financier-assembler-wholesalers
T-W- trucker-wholesalers W-wholesalers
A-W-assembler-wholesalers
R-retailers

Spot Market Chain for Chayote
Figure 2 illustrates the different chain actors involved in the procurement and
selling of chayote in the spot market.
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011



F
F

PTC
LTVTP






A-W
F-A-W
A-W
F-A-W



LTVTP
LTVTP
BALINTAWAK
BALINTAWAK

A-W


F-A-W-R




PTC
LTVTP







T-W

BALINTAWAK

T-W
LTVTP


A-W

W
W

URDANETA, PANG.
BALINTAWAK
BALINTAWAK





F-A-W
W-R

W-R
URDANETA, PANG.
LTVTP
W
METRO MANILA
METRO MANILA






W-R

R
URDANETA, PANG.
LTVTP
R



METRO MANILA

W-R

METRO MANILA
CONSUMERS
URDANETA, PANG.
R
URDANETA, PANG.
CONSUMERS

LTVTP
CONSUMERS

LEGEND:

METRO MANILA

F (Farmer) A-W (Assembler-Wholesaler) F-A-W (Financier- Assembler-Wholesaler)
F-A-W-R (Financier-Assembler-Wholesaler-Retailer)T-W (Trucker-Wholesaler)

W (WholesalerW-R (Wholesaler-Retailer)R (Retailer)
LTVTP (La Trinidad Vegetable Trading Post) Metro Manila


PTC(Private Trading Center)Balintawak

Urda
neta, Pangasinan


Figure 2. Spot market chain and location for chayote
16




It further shows the flow of chayote from its point of production to its point of
consumption. It is illustrated in the chart that farmers have contact with the different
buyers in the spot market.In the interviewed respondents in La Trinidad Vegetable
Trading Post, the financier-assembler-wholesalers and assembler-wholesalers sold their
procured chayote to trucker-wholesalers, and some of their procured chayote was sold
other customers.The wholesalers and retailers sold the chayote procured to the end users
in La Trinidad vegetable Trading Post. It implies that trucker-wholesalersprocure chayote
from La Trinidad Vegetable Trading Post and distribute to the different market areas. It
can also be seen that farmers directly sell their produce to retailer.

Furthermore, it also shows that trucker-wholesalers are not directly trading to
those in the distribution group like the wholesalers, wholesaler-retailers and especially to
the retailers. It is also shown in the chart that in trading chayote in different market areas
there are many actors to pass through before it reach its final customers or the end user.
The retailers we interviewed were from the different market places we visited. They were
the one selling chayote in small quantities.
Perceived Product Quality
by Different Chain Actors

Product (technical) quality refers to the physical description of the product in
terms of its size; shape; color; freedom from pests anddiseases; purity (in terms of its
freedom from chemical contaminants, pathogenic organisms and genetically modified
plants); maturity or freshness; and the manner in which the product is packed (Gronroos,
1990).It is indicated in Table 5a the perceived product quality of chayote by the different
actors involved.




Table 5a. Product quality criteria perceived by different chain actors
1
2
3
4
5
AVE
STATEMENT
N
% N
% N
%
N
%
N %

A. Farmers











1. Chayote are free from chemical residue.
1
3
1
3 6
20
3
10 19 63
4
2. Chayote are free from pests and diseases.
1
3
1
3 2
7
7
23 19 63
4
3. Color and size of chayote are specified.
0
0
2
7 4
13
4
13 20 67
4
4. Chayote are free from physical injury.
0
0
1
3 9
30
8
27 12 40
4
5. Chayote are fresh and clean.
0
0
0
0 2
7 10
33 18 60
5
6. Chayote are firm.
0
0
0
0 2
7 12
40 16 53
4
B. Assembler -Wholesalers
1. Chayote are free from chemical residue.
1 5 1 5 2 11 7 37 8 42
4
2. Chayote are free from pests and diseases.
0
0
1
5 2
11
2
11 14 74
5
3. Color and size of chayote are specified.
0
0
1
5 0
0
4
21 14 74
5
4. Chayote are free from physical injury.
0
0
0
0 0
0
7
37 12 63
5
5. Chayote are fresh and clean .
0
0
0
0 2
11
4
21 13 68
5
6. Chayote are firm.
0
0
0
0 0
0
5
26 14 74
5
C. Financier -Assembler-Wholesalers
1. Chayote are free from chemical residue.
1
6
2

13

5

31

2

13
6

38
4
2. Chayote are free from pests and diseases.
1
6
2
13 4
25
2
13
7 44
4
3. Color and size of chayote are specified.
0
0
1
6 4
25
4
25
7 44
4
4. Chayote are free from physical injury.
0
0
1
6 7
44
3
19
5 31
4
5. Chayote are fresh and clean.
0
0
2
13 3
19
3
19
8 50
4
6. Chayote are firm.
0
0
0
0 4
25
2
13 10 63
4
D. Trucker-Wholesalers











1. Chayote are free from chemical residue.
1
9
0
0 1
9
2
18
7 64
4
2. Chayote are free from pests and diseases.
0
0
0
0 1
9
3
27
7 64
5
3. Color and size of chayote are specified.
1
9
0
0 2
18
0
0
8 73
4
4. Chayote are free from physical injury.
1
9
0
0 1
9
2
18
7 64
4
5. Chayote are fresh and clean.
0
0
1
9 0
0
1
9
9 82
5
6. Chayote are firm.
0
0
0
0 2
18
0
0
9 82
5
Numerical value and descriptive equivalent
1 strongly disagree
2 moderately disagree
3undecided

4 moderately agree
5 strongly agree






Table 5a. Continued…
1
2
3
4
5
AVE
STATEMENT
N
% N
% N
%
N
%
N %

E. Wholesalers











1. Chayote are free from chemical residue.
0
0
2
14 0
0
2
14 10 71
4
2. Chayote are free from pests and diseases.
1
7
1
7 2
14
2
14
8 57
4
3. Color and size of chayote are specified.
0
0
0
0 2
14
2
14 10 71
5
4. Chayote are free from physical injury.
2
14
1
7 2
14
3
21
6 43
4
5. Chayote are fresh and clean.
1
7
0
0 1
7
0
0 12 86
5
6. Chayote are firm.
0
0
1
7 3
21
1
7
9 64
4
F. Wholesaler- Retailers











1. Chayote are free from chemical residue.
2
6
1
3 8
23
9
26 15 43
4
2. Chayote are free from pests and diseases.
1
3
1
3 4
11 10
29 19 54
4
3. color and size of chayote are specified.
1
3
0
0 2
6 10
29 22 63
4
4. Chayote are free from physical injury.
1
3
3
9 5
14 11
31 15 43
4
5. Chayote are fresh and clean.
1
3
1
3 2
6
9
26 22 63
4
6. Chayote are firm.
0
0
0
0 4
11 15
43 16 46
4
G. Retailers











1. Chayote are free from chemical residue.
6
13
6
13 6
13 12
25 18 38
4
2. Chayote are free from pests and diseases.
1
2
9
19 4
8
8
17 26 54
4
3. Color and size of chayote are specified.
5
10
1
2 8
17 12
25 22 46
4
4. Chayote are free from physical injury.
3
6
4
8 7
15 11
23 23 48
4
5. Chayote are fresh and clean.
1
2
4
8 2
4 10
21 31 65
4
6. Chayote are firm.
1
2
3
6 2
4 11
23 31 65
4

Majority of the farmers (63%), trucker-wholesaler (64%) and wholesaler (71%)
strongly agree that buyers choose chayote which are free from chemical residue. As to
the free from pest and diseases, majority of all the respondents strongly agree to this
criterion. About the color and size of chayote are specified, majority of the farmers
(67%), assembler-wholesalers (74%), trucker-wholesalers (73%), wholesalers (71%) and
wholesaler-retailers (63%), and some financier-assembler-wholesalers (44%) and
retailers (46%) were strongly agreed to this criterion.Most of the farmers (40%),
wholesalers (43%), wholesaler-retailers (43%) and retailers (48%) are strongly agree that



chayote must be free from physical injury, while some of the financier-assembler-
wholesalers (44%) were undecided. About the freshness and cleanliness of chayote,
majority of all the respondents strongly agree. It implies that the freshness and cleanliness
of chayote will attract the buyers. Majority of all the respondents strongly agree to the
criterion that buyers choose chayote which are firm. As shown in the average, the
different actors agree that the buyers choose chayote which are free from chemical
residue, free from pest and diseases, the color and size are specified, free from physical
injury, chayote are fresh and clean, and chayote must be firm.
The results of descriptive analysis and test statistics are exhibited in Table 5b. In
the mean statistics, revealed that all the respondents agree to the perceived criteria used
by the buyers in choosing or buying chayote in the spot markets. Moreover, the statistical
tests further support this finding, that there is no significant difference among the
different actors about the perceived physical quality criteria of the buyers. Chi-square test
further revealed that the different respondents gave much importance to the color and size
of chayote must be specified and on the other hand they gave less importance to physical
injury. Therefore this implies that color and size is given priority criteria used by the
buyers in choosing/buying/procuring chayote. The color of chayote attracts buyers and
reveals its freshness.
The results had proven the Gronroos (1990) description about technical (product)
quality wherein it describes the customer’s specifications.







Table 5b. Descriptive analysis and test statistics
CHI-
DEGREE OF ASYMPTOTIC
STATEMENT
MEAN SQUARE FREEDOM SIGNIFICANCE
1. Chayote are free from chemical residue.
3.95
5.942
3
0.114
2. Chayote are free from pests and diseases.
4.20
1.144
3
0.766
3. Color and size of chayote are specified.
4.28
6.224
3
0.101
4. Chayote are free from physical injury.
4.06
.705
3
0.872
5. Chayote are fresh and clean.
4.43
1.746
3
0.627
6. Chayote are firm.
4.42
2.521
3
0.472
Mean range and descriptive equivalent
1-1.8 strongly disagree
1.9-2.7 moderately disagree
2.8-3.5undecided
3.6-4.4 moderately agree 4.5-5strong agree


Service Quality Perceived by
Different Chain Actors
Service quality is the additional requirement a supplier is willing to do to retain
customer’s business (Parasuraman, 1998). Table 6a shows the perceive service quality
criteria used by the buyers in choosing/buying chayote. Some of the trucker-wholesalers
(36%), wholesalers (29%) and wholesaler-retailers (37%) are strongly that suppliers
(seller) extend credit term to buyers of chayote, while some farmers (27%) and financier-
assembler-wholesalers (31%) are undecided. Most of the wholesalers (57%), wholesaler-
retailers (23%) and retailers (38%) are strongly disagree that supplier has an outstanding
loan/cash advance from the buyer of chayote in the spot market. As to supplier gives
notice about supply shortage and price changes to buyers of chayote, most farmers
(43%), financier-assembler-wholesalers (50%), trucker-wholesalers (55%), wholesalers
(36%) and wholesaler-retailers (40%) are strongly agree. While the retailers (29%) are
strongly disagree.



Table 6a. Service quality criteria perceived by different chain actors
1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
%
N
%
N
%

A. Farmers











1. Supplier (seller) extend credit term to
buyers of chayote.
7
23 7
23 8
27 4
13 4
13
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
6
20 9
30 8
27 5
17 2
7
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
5
17 3
10 1
3
8
27 13 43
4
4. Supplier exerts effort to produce/procure
chayote ordered.
3
10 3
10 4
13 11 37 9
30
4
5. Supplier extends support services
(comboys, packing) to the buyers.
3
10 4
13 9
30 8
27 6
20
3
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
1
3
9
30 8
27 6
20 6
20
3
B. Assembler-Wholesalers











1. Supplier (seller) extend credit term to
buyers of chayote.
5
26 2
11 2
11 6
32 4
21
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
5
26 2
11 3
16 7
37 2
11
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
1
5
2
11 1
5
8
42 7
37
4
4. Supplier exerts effort to produce/procure
chayote ordered.
1
5
1
5
5
26 6
32 6
32
4
5. Supplier extends support services
(comboys, packing) to the buyers.
0
0
4
21 7
37 5
26 3
16
3
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
2
11 2
11 6
32 5
26 4
21
3
C. Financier-Assembler-Wholesalers











1. Supplier (seller) extend credit term to
buyers of chayote.
4
25 2
13 5
31 1
6
4
25
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
6
38 1
6
4
25 3
19 2
13
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
1
6
3
19 3
19 1
6
8
50
4
4. Supplier exerts effort to produce/procure
chayote ordered.
1
6
2
13 2
13 3
19 8
50
4
5. Supplier extends support services
(comboys, packing) to the buyers.
2
13 1
6
4
25 5
31 4
25
4
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
2
13 1
6
2
13 7
44 4
25
4
Numerical value and descriptive equivalent
1 strongly disagree

2 moderately disagree
3 undecided

4 moderately agree

5 strongly agree





Table 6a. Continued…
STATEMENT
1
2
3
4
5
AVE
N
%
N
%
N
%
N
%
N
%

D. Trucker-Wholesalers











1. Supplier (seller) extend credit term to
buyers of chayote.
2 18
2 18
2 18
1
9
4 36
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
2 18
3 27
1
9
4 36
1
9
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
1
9
1
9
0
0
3 27
6 55
4
4. Supplier exerts effort to produce/procure
chayote ordered.
0
0
0
0
1
9
1
9
9 82
5
5. Supplier extends support services
(comboys, packing) to the buyers.
3 27
0
0
0
0
2 18
6 55
4
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
0
0
1
9
3 27
3 27
4 36
4
E. Wholesalers











1. Supplier (seller) extend credit term to
buyers of chayote.
4 29
1
7
2 14
3 21
4 29
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
8 57
3 21
0
0
1
7
2 14
2
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
2 14
2 14
3 21
2 14
5 36
3
4. Supplier exerts effort to produce/procure
chayote ordered.
1
7
0
0
3 21
1
7
9 64
4
5. Supplier extends support services
(comboys, packing) to the buyers.
6 43
0
0
2 14
2 14
4 29
3
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
2 14
2 14
5 36
3 21
2 14
3
F. Wholesaler-Retailers











1. Supplier (seller) extend credit term to
buyers of chayote.
3
9
3
9
5 14 11 31 13 37
4
2. Supplier has an outstanding loan/cash
advance from the buyer.
8 23
5 14
7 20
8 23
7 20
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
2
6
4 11
3
9 12 34 14 40
4
4. Supplier exerts effort to produce/procure
chayote ordered.
1
3
1
3
7 20
7 20 19 54
4
5. Supplier extends support services
(comboys, packing) to the buyers.
5 14
2
6
9 26 12 34
7 20
3
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
1
3
8 23
9 26 14 40
3
9
3
G. Retailers











1. Supplier (seller) extend credit term to
buyers of chayote.
14 29
5 10
7 15 13 27
9 19
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
18 38
5 10 12 25
9 19
4
8
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
14 29
7 15
6 13 10 21 11 23
3
4. Supplier exerts effort to produce/procure
chayote ordered.
12 25
4
8
6 13 12 25 14 29
3
5. Supplier extends support services
(comboys, packing) to the buyers.
21 44
5 10
6 13 10 21
6 13
2
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
14 29 15 31
7 15
8 17
4
8
2



About supplier exerts effort to produce/procure chayote ordered by the buyer,
majority of all the respondents are strongly agree, but some retailers (25%) are strongly
disagree (25%). It implies that not all the respondents are exerting effort to
produce/procure chayote ordered by the buyers of chayote. Most farmers (30%) and
assembler-wholesalers (37%) are undecided about extending support services
(comboys/packing) by the suppliers to the buyers of chayote. About the adequacy of
supplier to their logistics (facilities, equipment, workforce etc.) in trading chayote, most
of the farmers (30%) and retailers (31%) are moderately disagree. Some of the assembler-
wholesalers (31%) and wholesalers (36%) are undecided while some financier-
assembler-wholesalers (44%) and wholesaler-retailers (34%) are moderately agreed. It
implies that not all the actors have the logistics in trading chayote.
Statistical results, like the descriptive analysis and test statistics are shown in
Table 6b. Statistical testing was done purposely for further validation of the data
frequency results. The respondents have variations in the perceived service quality
criteria. In the mean statistics revealed that the respondents are undecided whether,
Supplier (seller) extend credit term to buyers, Supplier extends support services
(comboys, packing) to the buyer and Supplier has adequate logistics (facilities, workforce
etc.) in trading, and not all the respondents agree to the perceived service quality criteria
that Supplier gives notice to the buyers aboutsupply shortage and the price changes and
Supplier extends support services (comboys, packing) to the buyer. While the
respondents disagree, that Supplier has an outstanding loan/cash advance from the buyer.
In the statistical test, the different actors have more or less the same understanding
about supplier (seller) extend credit term to buyers of chayote, supplier has an
outstanding loan/cash advance from the buyer and supplier extends support services



Table 6b. Descriptive analysis and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
STATEMENT
MEAN SQUARE FREEDOM
SIGNIFICANCE
1. Supplier (seller) extend credit term to
buyers of chayote.
3.15
7.691
3
0.053
2. Supplier has an outstanding loan/cash
advance from the buyer.
2.71
1.349
3
0.718
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
3.58
11.834
3
0.008*
4. Supplier exerts effort to produce/procure
chayote ordered.
3.79
14.371
3
0.002**
5. Supplier extends support services
(comboys,
3.16
7.700
3
0.053
packing) to the buyer of chayote.
6. Supplier has adequate logistics (facilities,
workforce etc.) in trading the chayote.
3.17
14.710
3
0.002**
* significant ** highly significant
Mean range and descriptive equivalent
1-1.8 strongly disagree
1.9-2.7 moderately disagree

2.8-3.5 undecided
3.6-4.4 moderately agree
4.5-5 strong agree

(comboys, packing) to buyers of chayote. However, the respondents have significantly
difference on giving notice about supply shortage/price changes to the buyers, exerting
effort to produce/procure chayote ordered and the adequacy of logistics in trading.
The chi-square test showed that the respondents give much importance on the
adequacy of logistics in trading chayote and the given less importance to the outstanding
loan/cash advance from the buyer. Therefore this prove what Parasuraman
(1998)description about service quality, as the extra things a supplier is willing to do to
retain customer’s business,which Hutt and Speh (1995) further expand that “service”
varies with the nature of the product and the requirements of the buying organizations,
service may include such variables as providing technical assistance, innovative
suggestions, credit arrangements, support for special needs, or providing advance notice
of impending price changes or shortages in supply.




Perceived Functional Quality
by Different Chain Actors
Functional quality, describes the way a supplier goes about delivering the product
to the customer. Fundamentally, this means being able to deliver the product when the
customer wants it. By implications, it involves many inter-related activities such as
production, scheduling, storage and warehousing, logistics, ordering and invoicing
(Gronroos, 1990).
In Table 7a presents the perceived functional quality criteria used by buyers in
choosing/buying
chayote.
As
to
supplier
(seller)
adhere
to
production/procurement/delivery targets, most of the financier-assembler-wholesalers
(38%), wholesaler-retailers (40%) and majority of trucker-wholesalers (55%) are
strongly agree and some farmers (27%), assembler-wholesalers (42%), wholesalers
(43%) and retailers (33%) are moderately agree to the criterion. Most of the assembler-
wholesalers (42%), financier –assembler-wholesalers (31%), wholesalers (43%),
wholesaler-retailers (40%) and majority of trucker-wholesalers (55%) are strongly agree
that buyers choose the supplier that classifies/grades the chayote properly. implies that to
gain respect to the buyers, the actor appropriately classify/grades the chayote. Most of the
farmers (47%), financier-assembler-wholesalers (38%), trucker-wholesaler (64%),
wholesalers (43%), wholesaler-retailers (49%) and retailers (41%) strongly agree to the
criterion, that supplier accurately weighed and packed the chayote. Most of the financier-
assembler-wholesalers (56%), trucker-wholesalers (55%), and wholesaler-retailers (46%)
strongly agree that buyers choose suppliers who have adequate supply of chayote when
buyers want it.





Table 7a. Functional quality criteria perceived by different chain actors
1
2
3
4
5
AVE
STATEMENT
N
% N
%
N %
N %
N %

A. Farmers











1. Supplier (seller) adhere to
production/procurement/delivery targets. 2
7 6 20
8 27
8 27
6 20
3
2. Supplier classifies/grades the chayote
properly.
1
3 2
7
5 17 10 33 12 40
4
3. Supplier accurately weighed and packed
the chayote.
0
0 3 10
3 10 10 33 14 47
4
4. Supplier has adequate supply of chayote
when the buyers want it.
4 13 4 13
8 27 11 37
3 10
3
5. Supplier accepts orders and delivers the
chayote when needed.
3 10 7 23
6 20
9 30
5 17
3
6. Supplier is flexible in pricing the
chayote and accepts payment term. 1
3 3 10 11 37 10 33
5 17
4
B. Assembler -Wholesalers
1. Supplier (seller) adhere to











production/procurement/delivery targets. 1
5 1
5
6 32
8 42
3 16
4
2. Supplier classifies/grades the chayote
properly.
0
0 3 16
6 32
3 16
7 37
4
3. Supplier accurately weighed and packed
the chayote.
0
0 1
5
4 21
8 42
6 32
4
4. Supplier has adequate supply of chayote
when the buyers want it.
1
5 2 11
3 16
7 37
6 32
4
5. Supplier accepts orders and delivers the
chayote when needed.
0
0 3 16
2 11
7 37
7 37
4
6. Supplier is flexible in pricing the
chayote and accepts payment term. 0
0 1
5
3 16
8 42
7 37
4
C. Financier-Assembler-Wholesalers
1. Supplier (seller) adhere to











production/procurement/delivery targets. 0 0 3 19 2 13 5 31 6 38
4
2. Supplier classifies/grades the chayote
properly.
1
6 1
6
5 31
4 25
5 31
4
3. Supplier accurately weighed and packed
the chayote.
0
0 1
6
5 31
4 25
6 38
4
4. Supplier has adequate supply of chayote
when the buyers want it.
0
0 2 13
2 13
4 25
8 50
4
5. Supplier accepts orders and delivers the
chayote when needed.
1
6 1
6
3 19
2 13
9 56
4
6. Supplier is flexible in pricing the
chayote and accepts payment term. 1 6 0 0 5 31 4 25 6 38
1
Numerical value and descriptive equivalent
1 strongly disagree

2 moderately disagree
3 undecided

4 moderately agree

5 strongly agree




Table 7a. Continued…
1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
% N % N
%

C. Financier-Assembler-Wholesalers
1. Supplier (seller) adhere to











production/procurement/delivery targets. 0
0
3
19
2
13 5 31 6
38
4
2. Supplier classifies/grades the chayote
properly.
1
6
1
6
5
31 4 25 5
31
4
3. Supplier accurately weighed and packed
the chayote.
0
0
1
6
5
31 4 25 6
38
4
4. Supplier has adequate supply of chayote
when the buyers want it.
0
0
2
13
2
13 4 25 8
50
4
5. Supplier accepts orders and delivers the
chayote when needed.
1
6
1
6
3
19 2 13 9
56
4
6. Supplier is flexible in pricing the
chayote and accepts payment term. 1
6
0
0
5
31 4 25 6
38
4
D. Trucker -Wholesalers











1. Supplier (seller) adhere to
production/procurement/delivery targets. 0
0
0
0
1
9
4 36 6
55
4
2. Supplier classifies/grades the chayote
properly.
2
18
0
0
0
0
2 18 7
64
4
3. Supplier accurately weighed and packed
the chayote.
0
0
0
0
1
9
3 27 7
64
5
4. Supplier has adequate supply of chayote
when the buyers want it.
0
0
0
0
1
9
4 36 6
55
4
5. Supplier accepts orders and delivers the
chayote when needed.
0
0
0
0
2
18
3 27 6
55
4
6. Supplier is flexible in pricing the
chayote and accepts payment term. 0
0
0
0
0
0
4 36 7
64
5
E. Wholesalers
1. Supplier (seller) adhere to











production/procurement/delivery targets. 3
21
1
7
1
7
6 43 3
21
3
2. Supplier classifies/grades the chayote
properly.
2
14
2
14
2
14
3 21 5
36
4
3. Supplier accurately weighed and packed
the chayote.
2
14
0
0
3
21
3 21 6
43
4
4. Supplier has adequate supply of chayote
when the buyers want it.
0
0
1
7
3
21
8 57 2
14
4
5. Supplier accepts orders and delivers the
chayote when needed.
1
7
1
7
3
21
4 29 5
36
4
6. Supplier is flexible in pricing the
chayote and accepts payment term. 0
0
0
0
5
36
1
7 8
57
4





Table 7a. Continued…
1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
%
N %
N
%
F. Wholesaler -Retailers










1. Supplier (seller) adhere to
production/procurement/delivery targets. 0
0
3
9
6
17 12 34
14
40
4
2. Supplier classifies/grades the chayote
properly.
3
9
2
6
4
11 13 37
13
37
4
3. Supplier accurately weighed and packed
the chayote.
2
6
1
3
4
11 11 31
17
49
4
4. Supplier has adequate supply of chayote
when the buyers want it.
0
0
1
3
7
20 11 31
16
46
4
5. Supplier accepts orders and delivers the
chayote when needed.
1
3
0
0
6
17 14 40
14
40
4
6. Supplier is flexible in pricing the
chayote and accepts payment term. 1
3
0
0
6
17 13 37
15
43
4
G. Retailers











1. Supplier (seller) adhere to
production/procurement/delivery targets. 4
8
8
17 10
21 16 33
10
23
3
2. Supplier classifies/grades the chayote
properly.
2
4
4
8
9
19 18 38
15
34
4
3. Supplier accurately weighed and packed
the chayote.
1
2
6
13
5
10 18 38
18
41
4
4. Supplier has adequate supply of chayote
when the buyers want it.
1
2
4
8 15
31 14 29
14
32
4
5. Supplier accepts orders and delivers the
chayote when needed.
4
8
6
13 10
21 14 29
14
32
4
6. Supplier is flexible in pricing the
chayote and accepts payment term. 3
6
4
8
8
17 17 35
16
36
4

Some of the assembler-wholesalers (37%), financier-assembler-wholesalers
(56%), trucker-wholesalers (55%) and wholesaler-retailers (40%) strongly agree to the
criterion that supplier accepts orders and delivers the chayote when needed. Majority of
the trucker-wholesalers (64%) and wholesalers (57%) strongly agree that buyers choose
supplier who is flexible in pricing the chayote and accepts payment term.
Thestatistical result is shownin Table 7b. The mean statistics revealed that
respondents agree to the perceived functional quality criteria used by the buyers as bases
in buying/choosing chayote in the spot market.



Table 7b. Descriptive analysis and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
STATEMENT
MEAN SQUARE
FREEDOM
SIGNIFICANCE
1. Supplier (seller) adhere to
production/procurement/delivery targets. 3 .65
9.941
3
0.019*
2. Supplier classifies/grades the chayote
properly.
3.84
1.088
3
0.780
3. Supplier accurately weighed and packed
the chayote.
4.05
2.171
3
0.538
4. Supplier has adequate supply of chayote
when the buyers want it.
3.81
14.784
3
0.002**
5. Supplier accepts orders and delivers the
chayote when needed.
3.76
13.221
3
0.004**
6. Supplier is flexible in pricing the
chayote and accepts payment term. 3. 97
11.893
3
0.008**
* significant ** highly significant
Mean range and descriptive equivalent
1-1.8 strongly disagree
1.9-2.7 moderately disagree
2.8-3.5 undecided
3.6-4.4 moderately agree
4.5-5 strong agree

The respondents are very significantly different about the supplier (seller)
adherence to production/procurement/delivery targets, supplier has adequate supply when
buyers want it, supplier accepts orders and deliveries when needed and supplier is
flexible in pricing and accepts payment term. Chi-square test revealed that, the
respondents give much importance to the adequacy of supply of chayote by the supplier
when buyers want it, and gave lesser importance in classifying/grading the chayote
properly by the supplier. The result implied that respondents varies according to
perception on functional quality, that is to the functions in terms of being able to deliver
the chayote when customer want it, like product scheduling, ordering and invoicing. In
terms of proper classification/grading, accurate weighing/packing chayote, the result
showed no significant variation among respondents.




Perceive Abilities to Meet
the Quality Requirements
In Table 8a, shows the perceived abilities of the different chain actors to meet the
criteria used by the market intermediaries in purchasing chayote in the spot market.
Abilities refer to the capabilities of the actors in meeting quality requirements Majority of
the farmers (60%), assembler- wholesalers (53%), wholesaler-retailers (51%), retailers
(52%) and some financier-assembler-wholesalers (38%), trucker-wholesalers (45%) and
wholesalers (36%) are strongly agree that they appropriately classify, weighed and
packed the chayote they sold.Most of the assembler-wholesalers (47%),financier-
assembler-wholesalers (44%), trucker-wholesalers (45%), and majority of the
wholesalers (57%), wholesaler-retailers (71%) and retailers (52%) are strongly agree that
they sell/buy chayote at a negotiated price. Some of the farmers (30%) are undecided
about delivering the chayote when required. In the assemble-wholesaler (42%), financier-
assembler-wholesalers (31%) trucker-wholesalers (27%), wholesaler-retailers (29%), and
retailers (37%) are strongly agree that they deliver chayote when required, and some
retailers (27%) are strongly disagree about delivering chayote when required.Most of the
farmers (40%), assembler-wholesalers (47%), financier-assembler-wholesalers (38%),
trucker-wholesalers (45%), wholesalers (36%) and retailers (35%) are strongly
agree.Some wholesaler-retailers (46%) are moderately agree about buying chayote which
are free from pest and diseases, physical injury and chemical residues. As to freshness,
cleanliness and firmness of chayote, most of the respondents strongly agree to this
criterion.





Table 8a. Perceived abilities to meet the quality requirements

1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
%
N
%
N %

A. Farmers











1. I appropriately classified, weighed and packed
the chayote I sold.
0
0
1
3
1
3 10
33 18 60
5
2. I sell/buy chayote at a negotiated price.
0
0
1
3
7
23 16
53
6 20
4
3. I deliver when required.
4 13
4 13
9
30
8
27
5 17
3
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
0
0
3 10
6
20
9
30 12 40
4
5. I usually buy chayote which are fresh, clean,
firm.
1
3
0
0
4
13 13
43 12 40
4
6. I buy chayote from sellers with good reputation.
0
0
2
7
6
20 15
50
7 23
4
7. I buy adequate volume of chayote to meet
immediate demand.
1
3
8 27 10
33
5
17
6 20
3
8. I have adequate logistics to buy chayote.
0
0
9 30 12
40
6
20
3 10
3
B. Assembler –Wholesalers
1. I appropriately classified, weighed and packed











the chayote I sold.
1
5
4 21
2
11
2
11 10 53
4
2. I sell/buy chayote at a negotiated price.
0
0
0
0
4
21
6
32
9 47
4
3. I deliver when required.
0
0
3 16
5
26
3
16
8 42
4
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
1
5
3 16
2
11
4
21
9 47
4
5. I usually buy chayote which are fresh, clean,
firm.
0
0
2 11
0
0
2
11 15 79
5
6. I buy chayote from sellers with good reputation.
1
5
0
0
5
26
3
16 10 53
4
7. I buy adequate volume of chayote to meet
immediate demand.
0
0
1
5
2
11
9
47
7 37
4
8. I have adequate logistics to buy chayote.
0
0
3 16
3
16
9
47
4 21
4
C. Financier-Assembler-Wholesalers











1. I appropriately classified, weighed and packed
the chayote I sold.
0
0
2 13
5
31
3
19
6 38
4
2. I sell/buy chayote at a negotiated price.
0
0
1
6
3
19
5
31
7 44
4
3. I deliver when required.
1
6
2 13
3
19
5
31
5 31
4
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
1
6
2 13
4
25
3
19
6 38
4
5. I usually buy chayote which are fresh, clean,
firm.
1
6
1
6
5
31
3
19
6 38
4
6. I buy chayote from sellers with good reputation.
0
0
4 25
3
19
5
31
4 25
4
7. I buy adequate volume of chayote to meet
immediate demand.
0
0
3 19
2
13
4
25
7 44
4
8. I have adequate logistics to buy chayote.
0
0
2 13
3
19
9
56
2 13
4
Numerical value and descriptive equivalent
1 strongly disagree

2 moderately disagree
3 undecided
4 moderately agree

5 strongly agree



Table 8a. Continued…
1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
%
N
%
N %

D. Trucker –Wholesalers











1. I appropriately classified, weighed and packed
the chayote I sold.
0
0
0
0
1
9
5
45
5 45
4
2. I sell/buy chayote at a negotiated price.
0
0
0
0
1
9
5
45
5 45
4
3. I deliver when required.
3 27
0
0
2
18
3
27
3 27
3
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
0
0
1
9
3
27
2
18
5 45
4
5. I usually buy chayote which are fresh, clean,
firm.
0
0
0
0
1
9
2
18
8 73
5
6. I buy chayote from sellers with good reputation.
0
0
0
0
3
27
4
36
4 36
4
7. I buy adequate volume of chayote to meet
immediate demand.
0
0
0
0
3
27
3
27
5 45
4
8. I have adequate logistics to buy chayote.
0
0
1
9
2
18
5
45
3 27
4
E. Wholesalers











1. I appropriately classified, weighed and packed
the chayote I sold.
3 21
1
7
1
7
4
29
5 36
4
2. I sell/buy chayote at a negotiated price.
0
0
1
7
2
14
3
21
8 57
4
3. I deliver when required.
4 29
2 14
3
21
1
7
4 29
3
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
0
0
3 21
2
14
4
29
5 36
4
5. I usually buy chayote which are fresh, clean,
firm.
1
7
1
7
5
36
1
7
6 43
4
6. I buy chayote from sellers with good reputation.
1
7
1
7
3
21
5
36
4 29
4
7. I buy adequate volume of chayote to meet
immediate demand.
0
0
2 14
2
14
6
43
4 29
4
8. I have adequate logistics to buy chayote.
2 14
1
7
6
43
3
21
2 14
3
F. Wholesaler –Retailers











1. I appropriately classified, weighed and packed
the chayote I sold.
0
0
2
6
4
11 11
31 18 51
4
2. I sell/buy chayote at a negotiated price.
0
0
0
0
3
9
7
20 25 71
5
3. I deliver when required.
6 17
1
3
8
23
7
20 13 37
4
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
0
0
1
3
4
11 16
46 14 40
4
5. I usually buy chayote which are fresh, clean,
firm.
0
0
0
0
2
6 16
46 17 49
4
6. I buy chayote from sellers with good reputation.
0
0
1
3 10
29
9
26 15 43
4
7. I buy adequate volume of chayote to meet
immediate demand.
0
0
1
3
5
14 11
31 18 51
4
8. I have adequate logistics to buy chayote.
3
9
4 11
7
20 13
37
6 17
3





Table 8a. Continued…
1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
%
N
%
N %

G. Retailers











1. I appropriately classified, weighed and packed
the chayote I sold.
1
2
5 10
6
13 11
23 25 52
4
2. I sell/buy chayote at a negotiated price.
1
2
1
2
5
10 21
44 20 42
4
3. I deliver when required.
13 27
5 10 10
21 12
25
8 17
3
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
2
4
7 15
8
17 14
29 17 35
4
5. I usually buy chayote which are fresh, clean,
firm.
1
2
4
8
8
17 16
33 19 40
4
6. I buy chayote from sellers with good reputation.
1
2
8 17 11
23 15
31 13 27
4
7. I buy adequate volume of chayote to meet
immediate demand.
3
6
9 19 11
23 13
27 12 25
3
8. I have adequate logistics to buy chayote.
13 27 11 23 11
23 10
21
4
8
3


About in buying chayote from seller with good reputation, majority of the
assembler- wholesalers (53%), some trucker-wholesalers, wholesalers (43%) and
wholesaler-retailers (43%) are strongly agree and most farmers (50%), financier-
assembler-wholesalers (31%) and retailers (31%) are moderately agree. In buying
adequate volume of chayote to meet immediate demand most of the farmers (33%) are
undecided. Some assembler-wholesalers (47%), wholesalers (43%) and retailers (27) are
moderately agree, and nearly half of the financier-wholesaler-assemblers, trucker-
wholesalers (45%) and about half of the wholesaler-retailers (51%) respondents are
strongly agree. it implies that there is variations about the actors buying adequate volume
of chayote to meet immediate demand. About in the adequacy of logistics to buy/sell
chayote, some farmers (40%) and wholesalers (43%) and are undecided, while some
retailers (27%) are strongly disagree. About the assembler-wholesalers (47%), financier-
assembler-wholesalers (56%) trucker-wholesalers (45%) and wholesaler- retailers (37%)



are moderately agree. it implies that the actors have differences on the adequacy of
logistics to buy chayote.
The statistical test shown in Table 8b,the mean revealed that all the respondents
agree to the perceived abilities to meet the criteria used by market intermediaries in
buying chayote. But the actors disagree to the delivery of chayote when required and the
adequacy of logistics in trading chayote. Moreover, the statistical test further supports
this findings that different actors have more or less the same understanding about the
perceived abilities to meet the criteria used by intermediaries, except selling/buying
chayote at a negotiate price, buying adequate volume of chayote to meet immediate
demand and having adequate logistics in buying chayote, that there is a highly
significance among the actors.

Table 8b. Descriptive analysis and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
STATEMENT
MEAN
SQUARE
FREEDOM
SIGNIFICANCE
1. I appropriately classified, weighed and packed
the chayote I sold.
4.12
4.643
3
0.200
2. I sell/buy chayote at a negotiated price.
4.26
13.981
3
0.003**
3. I deliver when required.
3.29
6.940
3
0.074
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
3.95
1.067
3
0.785
5. I usually buy chayote which are fresh, clean,
firm.
4.17
3.301
3
0.348
6. I buy chayote from sellers with good reputation.
3.87
2.123
3
0.547
7. I buy adequate volume of chayote to meet
immediate demand.
3.80
16.483
3
0.001**
8. I have adequate logistics to buy chayote.
3.22
21.159
3
0.000**
* significant

** highly significant
Mean range and descriptive equivalent
1-1.8 strongly disagree


1.9-2.7 moderately disagree
2.8-3.5 undecided
3.6-4.4 moderately agree

4.5-5 strong agree









Perceive Inabilities to Meet
the Quality Requirements
Inabilities refer to the incapability’s of the actors in meeting the quality
requirement in the spot market. Table 9a shows the perceive inabilities of different chain
actors in meeting quality requirements. Some farmers (37%), assembler-wholesalers
(42%) and majority of the trucker-wholesalers (64%), wholesalers (57%), wholesaler-
retailers (57%) and retailers (50%) are strongly agreed that they are dependent on the
quality/ quantity of chayote they produced /procure.
As to perceive inabilities about the insufficiency of capital to produce/procure
chayote, some farmers (40%) and wholesaler-retailers (26%) are undecided, and some
assembler-wholesalers (32%), financier-assembler-wholesalers (38%) and retailers (29%)
are moderately agree to the criterion.
Some farmers (37%), financier-assembler-wholesalers (38%) and trucker-
wholesalers (27%) moderately disagree and some assembler-wholesalers (37%)
moderately agree to the criterion, that the actors have limited control on the
quality/quantity of chayote they produced and sold.
About the dependency from the prevailing market price, most of the farmers
(40%), assembler-wholesalers (63%) and financier-assembler-wholesalers (31%) are
undecided to the criterion.
On the average of the different actors shown that the different respondents largely
depend on the quality/quantity of chayote produced/procure/sell. They moderately
consider that they have insufficient capital to produced/procure/sell; have limited control
on quality/quantity of chayote they produce/procure and sold; and being largely depend
from the prevailing market price.



Table 9a. Perceived inabilities to meet the quality requirements
1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
%
N
%
N
%
A. Farmers









1. I am dependent on the quality/quantity of
chayote I produced/procured.
1
3
3 10
7 23
8 27 11 37
3
2. I have insufficient capital to produce/procure
chayote.
1
3
8 27 12 40
7 23
2
7
3
3. I have limited control on the quality/quantity
ofchayote I produced/procured and sold.
1
3 11 37
6 20 10 33
2
7
3
4. I largely depend from the prevailing market
price.
0
0
1
3 12 40
9 30
8 27
3
B. Assembler -Wholesalers











1. I am dependent on the quality/quantity of
chayote I produced/procured.
0
0
2 11
5 26
4 21
8 42
4
2. I have insufficient capital to produce/procure
chayote.
3 16
4 21
5 26
6 32
1
5
3
3. I have limited control on the quality/quantity
ofchayote I produced/procured and sold.
2 11
3 16
4 21
7 37
3 16
3
4. I largely depend from the prevailing market
price.
0
0
2 11 12 63
1
5
4 21
3
C. Financier-Assembler-Wholesalers











1. I am dependent on the quality/quantity of
chayote I produced/procured.
1
6
1
6
2 13
7 44
5 31
4
2. I have insufficient capital to produce/procure
chayote.
3 19
2 13
3 19
6 38
2 13
3
3. I have limited control on the quality/quantity
ofchayote I produced/procured and sold.
0
0
6 38
4 25
5 31
1
6
3
4. I largely depend from the prevailing market
price.
1
6
0
0
5 31
5 31
5 31
4
D. Trucker-Wholesalers
1. I am dependent on the quality/quantity of











chayote I produced/procured.
0
0
0
0
1
9
3 27
7 64
5
2. I have insufficient capital to produce/procure
chayote.
3 27
4 36
2 18
2 18
0
0
2
3. I have limited control on the quality/quantity
ofchayote I produced/procured and sold.
1
9
3 27
1
9
3 27
2 18
3
4. I largely depend from the prevailing market
price.
2 18
1
9
2 18
3 27
3 27
3
Numerical value and descriptive equivalent
1 strongly disagree
2 moderately disagree
3 undecided

4 moderately agree
5 strongly agree






Table 9a. Continued…
1
2
3
4
5
AVE
STATEMENT
N
%
N
%
N
%
N
%
N
%
E. Wholesalers










1. I am dependent on the quality/quantity of
chayote I produced/procured.
1
7
2 14
2 14
1
7
8 57 4
2. I have insufficient capital to produce/procure
chayote.
4 29
1
7
1
7
2 14
6 43 3
3. I have limited control on the quality/quantity
ofchayote I produced/procured and sold.
3 21
1
7
1
7
3 21
6 43 4
4. I largely depend from the prevailing market
price.
0
0
1
7
5 36
2 14
6 43 4
F. Wholesaler-Retailers










1. I am dependent on the quality/quantity of
chayote I produced/procured.
0
0
2
6
6 17
7 20 20 57 4
2. I have insufficient capital to produce/procure
chayote.
8 23
6 17
9 26
6 17
6 17 3
3. I have limited control on the quality/quantity
ofchayote I produced/procured and sold.
2
6
8 23 10 29
6 17
9 26 3
4. I largely depend from the prevailing market
price.
1
3
6 17
7 20
8 23 13 37 4
G. Retailers










1. I am dependent on the quality/quantity of
chayote I produced/procured.
2
4
0
0
5 11 17 35 24 50 4
2. I have insufficient capital to produce/procure
chayote.
6 13 11 23
5 11 12 25 14 29 3
3. I have limited control on the quality/quantity
ofchayote I produced/procured and sold.
2
4 13 27
9 20
9 19 15 31 3
4. I largely depend from the prevailing market
price.
1
2
7 15 11 25 13 27 16 33 4




In Table 9b shows the statistical test to further validate the frequency results.
Mean statistics revealed that the respondents agree about dependency on the
quality/quantity of chayote they produced/procured, and largely depend from the
prevailing market price.The respondents are undecided as to insufficiency of capital to
produce/procure chayote and have limited control on the quality/quantity
produced/procured and sold. The finding is further supported by the statistical test. That
respondent have common perception about the inabilities in meeting quality
requirements.



Table 9b. Descriptive analysis and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
STATEMENT
MEAN SQUARE
FREEDOM
SIGNIFICANCE
1. I am dependent on the quality/quantity of
chayote I produced/procured.
4.04
5.365
3
0.147
2. I have insufficient capital to produce/procure
chayote.
3.13
3.868
3
0.276
3. I have limited control on the quality/quantity
of chayote I produced/procured and sold.
3.28
2.981
3
0.395
4. I largely depend from the prevailing market
price.
3.69
.873
3
0.832
Mean range and descriptive equivalent
1-1.8 strongly disagree


1.9-2.7 moderately disagree 2.8-3.5
undecided
3.6-4.4 moderately agree

4.5-5 strong agree


Constraints to Improve/Maintain
Quality Requirements
Table 10a shows the perceive various constraints of the different chain actors.
Constraints are those barriers that hinder the actors in meeting the quality requirements in
the spot market.
Some farmers (33%), assembler-wholesalers (37%), wholesaler-retailers (26%)
and retailer (33%) are moderately agree, most financier-assembler-wholesalers (50%) and
wholesalers (43%) are undecided and majority of trucker-wholesalers (55%) are
moderately agree that the inadequacy of logistics, facilities/equipments hinders the actors
in meeting quality requirements.
About inadequacy of capital to acquire appropriate logistics, facilities/equipments,
most farmers (30%), assembler-wholesalers (42%) and wholesaler-retailers (34%) are
moderately agree, and to the wholesalers (36%) and retailers (29%), they are strongly
agree, while the financier-assembler-wholesalers (31%) and majority of the trucker-
wholesalers (55%) are moderately disagree to the criterion.


40

Table 10a.Constraints to improve/maintain quality requirements

STATEMENT
1
2
3
4
5
AVE
N
%
N
%
N
%
N
%
N
%


A. Farmers











1. Inadequacy of logistic facilities/equipments.
0
0
7
23
9
30
10 33
4
13
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
0
0
9
30
6
20
9
30
6
20
3
3. Limited choices on chayote.
6
20 14 47
7
23
1
3
2
7
2
4. Less control in grading/packaging.
4
13 13 43
7
23
5
17
1
3
2
5. Lack of cold storage facility in trading.
6
20
0
0
4
13
2
7
18 60
3
B. Assembler -Wholesalers
1. Inadequacy of logistic facilities/equipments.
1
5
3

16
5

26
7

37
3

16
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
1
5
5
26
2
11
8
42
3
16
3
3. Limited choices on chayote.
4
21
8
42
3
16
3
16
1
5
2
4. Less control in grading/packaging.
2
11
2
11
9
47
4
21
2
11
3
5. Lack of cold storage facility in trading.
0
0
3
16
2
11
2
11 12 63
4
C. Financier-Assembler-Wholesalers











1. Inadequacy of logistic facilities/equipments.
3
19
2
13
8
50
2
13
1
6
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
2
13
5
31
4
25
4
25
1
6
3
3. Limited choices on chayote.
1
6
7
44
5
31
2
13
1
6
3
4. Less control in grading/packaging.
2
13
5
31
4
25
5
31
0
0
3
5. Lack of cold storage facility in trading.
4
25
2
13
2
13
2
13
6
38
3
D. Trucker -Wholesalers
1. Inadequacy of logistic facilities/equipments.
2

18
6

55
1
9
1
9
1
9
2
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
2
18
6
55
1
9
0
0
2
18
2
3. Limited choices on chayote.
5
45
3
27
2
18
0
0
1
9
2
4. Less control in grading/packaging.
1
9
6
55
1
9
2
18
1
9
3
5. Lack of cold storage facility in trading.
3
27
1
9
1
9
1
9
5
45
3
E. Wholesalers
1. Inadequacy of logistic facilities/equipments.
1
7
2

14
6

43
2

14
3

21
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
4
29
0
0
4
29
1
7
5
36
3
3. Limited choices on chayote.
3
21
3
21
4
29
3
21
1
7
3
4. Less control in grading/packaging.
1
7
1
7
3
21
3
21
6
43
4
5. Lack of cold storage facility in trading.
2
14
2
14
2
14
0
0
8
57
4
Numerical value and descriptive equivalent
1 strongly disagree


2 moderately disagree

3 undecided
4 moderately agree


5 strongly agree

Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

41

Table 10a. Continued…
STATEMENT
1
2
3
4
5
AVE
N
%
N
%
N
%
N
%
N
%


F. Wholesaler –Retailers











1. Inadequacy of logistic facilities/equipments.
3
9
9
26
9
26
9
26
5
14
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
6
17
8
23
5
14
12 34
4
11
3
3. Limited choices on chayote.
8
23
7
20
7
20
10 29
3
9
3
4. Less control in grading/packaging.
2
6
9
26
5
14
12 34
7
20
3
5. Lack of cold storage facility in trading.
12 34
2
6
4
11
4
11 13 37
3
G. Retailers











1. Inadequacy of logistic facilities/equipments.
5
10
6
13
8
17
16 33 13 27
4
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
7
15 11 23
6
13
10 21 14 29
3
3. Limited choices on chayote.
12 25 12 25
8
17
14 29
2
4
3
4. Less control in grading/packaging.
3
6
10 21 11
23
13 27 11 23
3
5. Lack of cold storage facility in trading.
9
19
5
10
2
4
4
8
28 58
4



About the limited choices of chayote, the farmers (47%), assembler-wholesalers
(42%) and financier-assembler- wholesalers (44%) are moderately disagree, about the
wholesaler-retailers (29%) and retailers (29%) are moderately agree, about 45% of
trucker wholesaler are strongly agree and some wholesaler are undecided. As to less
control in grading/packaging, most farmers (43%), financier-assembler-wholesalers
(31%) and some truckers are moderately disagreeing to the criterion. In the lack of cold
storage facility in trading, majority of all the respondents strongly agree to this criterion.
In Table 10b, shows the statistical results, the mean statistics revealed that all the
respondents are undecided to the barriers that hinders the actors in meeting quality
requirements in the spot market. Moreover, the statistical further support this finding. The
different actors have more or less the same understanding about the barriers that hinders
the actors in meeting the quality requirements of chayote in the spot market.

Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

42

Table 10b. Descriptive analysis and test statistics
CHI-
DEGREE OF ASYMPTOTIC
STATEMENT
MEAN SQUARE
FREEDOM
SIGNIFICANCE
1. Inadequacy of logistic facilities/equipments.
3.26
6.945
3
0.074
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
3.18
4.026
3
0.259
3. Limited choices on chayote.
2.59
.285
3
0.963
4. Less control in grading/packaging.
3.12
13.288
3
0.004**
5. Lack of cold storage facility in trading.
3.57
2.313
3
0.510
* * highly significant
Mean range and descriptive equivalent
1-1.8 strongly disagree

1.9-2.7 moderately disagree

2.8-3.5 undecided
3.6-4.4 moderately agree
4.5-5 strong agree











Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

43

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The research locations followed the geographic flow of chayote from the major
source (production) to the major market assembly and collection, and the geographic
distribution markets. However, the research coverage areas will be from selected
production and marketing areas.
A total of 173 respondents were interviewed from their respective respondent
group: production group ( farmer), assembly group ( assembler-wholesalers, financier-
assembler-wholesalers), distribution group ( trucker-wholesalers, wholesalers, &
wholesaler-retailers ) and retailing group (retailers) at the La Trinidad Vegetable Trading
Post which served as primary markets (assembly/collection). Pangasinan and Metro
Manila as secondary markets (distribution) and such as Balintawak market and Urdaneta
city, while the tertiary market areNovaliches, Kamuning, Mega Q, Nepa Q, Blumentritt
and Basilio.
In the demographic profile, Most of the respondents were in the age bracket of
20-40 years old. Majority of the farmers, assembler-wholesalers and trucker-wholesalers
are male, and financier-assembler-wholesaler, wholesaler, wholesaler-retailer and retailer
are female. Majority of the different chain actors were married. Almost all of the
respondents were catholic. In the educational background most of the farmer, assembler-
wholesaler, wholesaler-retailer and retailer are high school level, and majority of
financier-assembler-wholesaler, trucker-wholesaler and wholesaler are college level. And
most of the respondents was venturing 1-5 years in business.
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

44

Majority of the respondents agree that the perceive product quality criteria as
bases of the buyers in choosing or buying is that the color and size of chayote are
specified, it must be fresh , clean and firm, and the freedom of chayote from chemical
residue, pest and diseases, and physical injury. In the descriptive statistics and test
statistics shows that there is no significantly difference among the different actors have
common understanding. And in the chi-square result shows that they gave much
importance on the color and size of chayote must be specified, and they gave less
importance on the freedom of chayote from physical injury.
On the service quality criteria, most of the respondents are moderately agree that
their perceived service quality criteria as bases of buyers in procuring chayote is that
supplier gives notice to the buyers about supply shortage and price changes and supplier
exerts effort to produce/ procure chayote ordered. Most respondents are undecided about
supplier (seller) extend credit term to buyers of chayote and supplier has an outstanding
loan/ cash advance from the buyer. It is because most of the chain actors has limited
capital especially the retailers .they are also undecided that supplier extends support
services to buyer in the delivery of chayote, because most of them said that the buyer are
the one paying those “comboys”.
In the functional quality criteria the respondents agree that the perceive functional
quality criteria as bases of buyers in choosing chayote is that the supplier accurately
weighed and packed the chayote. Some of the respondents are undecided that supplier
adhere to production/procurement/delivery targets, supplier classifies/grades the chayote
properly, Supplier has adequate supply of chayote when the buyers want it, supplier
accepts orders and deliveries the chayote when needed, and the supplier are flexible in
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

45

pricing and accepts payment terms. The respondents also gave much importance on
supplier has adequate supply of chayote when buyers want it, and they gave less
importance on supplier classifies/grades the chayote properly.
In the perception about their abilities to meet the criteria used by market
intermediaries in purchasing chayote. Most of the respondents agreed that they
appropriately weighed and packed chayote they sold, they sell/buy chayote at a
negotiated price and they buy/sell chayote which are fresh, clean and firm. While in
buying adequate volume of chayote to meet immediate demand, adequacy of logistics to
buy chayote and buying/selling chayote at a negotiated price there is significantly
difference among the chain actors. The respondents also gave much importance on
buying adequate volume of chayote to meet immediate demand, while they gave less
importance in buying chayote free from pest and diseases, physical injury and chemical
residue.
In the inabilities of respondents most of them agree that they are dependent on the
quality/quantity of chayote they produce/procured and they gave much importance to it.
And the respondents are undecided to agree and in the ranking they gave less importance
that they largely depend from the prevailing market price.
The various constraints to improve/ maintain the quality of fresh chayote offered,
most of the respondents are undecided about the inadequacy of logistics facilities/
equipments, inadequacy of capital to acquire appropriate logistics facilities/ equipment.
Limited choices of chayote, less control in grading, and lack of cold storage facility
because of the interviewed respondents said that they only sell their produce and the
buyers will be the one to handle it already. The retailers agree that the various constraints
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

46

are the inadequacy of logistics facilities/equipments and lack of storage facility in
trading.
Conclusions
Based from the result and discussion the following conclusions were drawn:
1. The respondents, in general have favorable perception about product quality
that is, free from pest and diseases, chemical residue and physical injury, the color and
size of chayote are specified, the chayote must be firm, fresh and clean are the bases of
buyers in choosing or buying chayote in the spot.
2. In the service quality, buyers choose supplier who gives notice to the buyers
about supply shortage and the price changes, and supplier who exerts effort to
produce/procure chayote ordered.
3. In the abilities, the actors appropriately classify, weighed and packed the
chayote they sold, the sell/buy chayote at a negotiated price, they buy/sell chayote which
are fresh, clean and firm, they also buy/sell chayote which are free from pest and
diseases, physical injury
5. The actors are dependent on the quality of chayote they produced and procured,
and they largely depend on the market prevailing market price.
6. The constraints that hinders the actors in meeting quality requirements is the
lack of cold storage facilities.
Recommendations
1. The different chain actors should plan and worked together inorder to obtain and
to improve the quality of chayote sold in the spot market. Efficient and effective
production as well as to vegetable quality.
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

47

2. The farmer must be given priority for improvement, and they must produced
chayote free from pest and diseases, chemical residue and physical injury, the color and
size of chayote are specified, the chayote must be firm, fresh and clean to meet the buyers
requirements.
3. A proper linkage should be created between buyers and farmers through some
kind of institutional arrangements like contract etc. to achieve the requirements of the
buyers.
4. The government should concentrate its programs on providing support to
vegetable industry as to providing state of the art equipments and facilities. This would
help reduce problems on uncontrolled quantity and quantity of vegetables in the spot
markets and also reduce physical damages manifested during handling (transporting).











Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

48

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University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

49

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ZYLBERSZTJN, D. and E. M. M. FARINA. 2003. Dynamics of network governance: A
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Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

50

Appendix A
Letter to the Respondents
Benguet State University
COLLEGE OF AGRICULTURE
La Trinidad, Benguet
November 2010
Sir/ Madam

I am a fourth year student taking up Bachelor of Science in Agribusiness majoring
in Enterprise Management at Benguet State University is conducting a research entitled
“CHAIN ACTORS’ PERCEPTION ON QUALITY OF CHAYOTE IN THE SPOT
MARKET”

In this connection, may I request a part of your time to answer this questionnaire
honestly and completely. Rest assured that all data gathered will be kept strictly
confidential.

Thank you very much for your kind consideration. God bless.

Very truly yours,

JENIO M. LEGANIO



Researcher
Noted:
LEOPOLDO N. TAGARINO
Adviser

Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011


51

APPENDIX B
Interview Schedule
This research aims to investigate the chayote supply networks. All information solicited
will be treated with confidentiality. Please answer the questions honestly by putting ( ) mark in
the appropriate space provided for.
Thank you very much!
Respondent’s Name: (Optional)




No.


A. Respondents Group:
1. Production Group:
[ ] Farmer
2. Assembly (Collection) Group: [ ] Assembler- Wholesaler




[ ] Financier-Assembler-Wholesaler;
3. Distribution Group:
[ ]Trucker-Wholesaler;
[ ]Wholesaler;
[ ] Wholesaler-Retailer
4. Retailing Group:
[ ] Retailers
B. Respondents Profile
1. Age:






2. Gender: MaleFemale
3. Marital Status: [ ] Single [ ] Married
[ ] Separated [ ] Widowed
4. Religion:


5. Educational Attainment: [ ] Elementary [ ] High School [ ] College [ ] Vocational
6. Number of years engage in chayote business:


7. Organizational Affiliation:Farmers Association; Traders
Association

Cooperative;
Others (Please Specify)



C. Who are the buyers of the chayote you produced?
[ ] Assembler-Wholesalers; [ ] Financier-Assembler-Wholesalers;
[ ] Trucker-Wholesaler; [ ] Wholesalers; [ ] Wholesaler-Retailers; [ ] Retailers
D. Where do you sell the chayote produced?
[ ] La Trinidad Vegetable Trading Post; [ ] Private Trading Center in La Trinidad;
[ ] Metro Manila (Specify) [ ] Other Market: Please Specify



E. Perceptions on Quality:
I. Product (physical/ technical) quality:
What product quality criteria do you perceive as having been the basis of the buyers in
choosing or buying the chayote?
Factors
1 2 3 4 5
1. Chayote are free from chemical residue.
Strongly Disagree Strongly Agree
2. Chayote are free from pest and diseases.
Strongly Disagree Strongly Agree
3. Color and size, of chayote are specified.
Strongly Disagree Strongly Agree
4. Chayote are free from physical injury.
Strongly Disagree Strongly Agree
5. Chayote are fresh and clean
Strongly Disagree Strongly Agree
6. Chayote are firm.
Strongly Disagree Strongly Agree

Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

52

II. Service quality

What service quality criteria used do you perceived as having been the basis of the buyers
in choosing or buying the chayote
Factors
1 2 3 4 5
1. Supplier (seller) extends credit term to Strongly Disagree Strongly Agree
buyers of vegetables.
2. Supplier has an outstanding loan from the Strongly Disagree Strongly Agree
buyer.
3. Supplier gives notice to the buyers about Strongly Disagree Strongly Agree
supply shortage and the price changes.
4. Supplier exerts effort to produce/procure Strongly Disagree Strongly Agree
chayote ordered.
5. Supplier extends assistance to the buyer in Strongly Disagree Strongly Agree
the delivery of chayote.
6. Supplier has adequate logistics in trading Strongly Disagree Strongly Agree
the chayote.
III. Functional quality

What functional quality criteria do you perceive as having been the bases of the buyers in
choosing or buying chayote?
Factors
1 2 3 4 5
1. Supplier (seller) adheres to procurement/
Strongly Disagree Strongly Agree
delivery targets.
2. Supplier classifies and grades the chayote Strongly Disagree Strongly Agree
properly.
3. Supplier accurately weighed and packed
Strongly Disagree Strongly Agree
the chayote.
4. Supplier has adequate supply of chayote
Strongly Disagree Strongly Agree
when the buyers want.
5. Supplier accepts orders and delivers the
Strongly Disagree Strongly Agree
chayote when needed.
6. Flexibility of supplier in pricing the
Strongly Disagree Strongly Agree
chayote and accepts payment term.
IV. Perception about their abilities to meet the criteria used by market intermediaries in
purchasing chayote?
Abilities refer to the capabilities of the actors in the spot market in meeting quality
requirements.
Factors
1 2 3 4 5
1. Appropriately classified, weighed and

packed the chayote I sold.
Strongly Disagree Strongly Agree
2. I sell chayote at a negotiated price.
Strongly Disagree Strongly Agree
3. I deliver when required.
Strongly Disagree Strongly Agree
4. I buy chayote free from pest and diseases,
physical injury and chemical residues.
Strongly Disagree Strongly Agree
5. I usually buy chayote which are fresh,
Strongly Disagree Strongly Agree
clean, and firm.
6. I buy chayote from sellers with good
Strongly Disagree Strongly Agree
reputation.
7. I buy adequate volume of chayote to meet Strongly Disagree Strongly Agree
immediate demand.
8. I have adequate logistics to buy chayote.
Strongly Disagree Strongly Agree
Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

53

V. Perception about Their Inabilities to Meet the Market Intermediary’s Needs.
Inabilities are the incapability of the actors in meeting quality requirements in the spot market.
Factors
1 2 3 4 5
1. I am dependent on the quality/ quantity of Strongly Disagree Strongly Agree
chayote I produced/ procured.
2. I have sufficient capital to produce/
Strongly Disagree Strongly Agree
procure chayote.
3. I have limited control on the quality/
Strongly Disagree Strongly Agree
quantity of chayote I produce/ and sold.
4. I largely depend from the prevailing
Strongly Disagree Strongly Agree
market price.
VI. Various Constraints To Improve The Quality Of Fresh Offered.
Constraints are barriers that hinder the actors in meeting quality requirements in the spot market.
Factors
1 2 3 4 5
1. Inadequacy of logistics facilities/
Strongly Disagree Strongly Agree
equipment.
2. Inadequacy of capital to acquire
Strongly Disagree Strongly Agree
appropriate logistics facilities/equipments.
3. Limited choices on chayote.
Strongly Disagree Strongly Agree
4. Less control in grading/packaging.
Strongly Disagree Strongly Agree
5. Lack of cold storage facility in trading.
Strongly Disagree Strongly Agree




Chain Actors Perception on Quality of Chayote in the Spot Market. Benguet State
University, LaTrinidad, Benguet. Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)/
LEGANIO, JENIO M. APRIL 2011

Document Outline

  • Chain Actors Perception on Quality of Chayote inthe Spot Market
    • BIBLIOGRAPHY
    • ABSTRACT
    • INTRODUCTION
    • REVIEW OF LITERATURE
    • METHODOLOGY
    • RESULT AND DISCUSSION
    • SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
    • LITERATURE CITED
    • Appendices