BIBLIOGRAPHY PATRICIO, MARY ANN A. APRIL 2009....
BIBLIOGRAPHY
PATRICIO, MARY ANN A. APRIL 2009. Awareness and Patronage of
Members of BBCCC Residing at Itogon Benguet on the Cooperative Services. Benguet
State University, La Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, M Sc.
ABSTRACT
The study was conducted to determine the level of awareness on the cooperative
services, and the level of patronage of these services by members residing in Itogon,
Benguet. Furthermore, the study made some recommendation that would enhance the
level of awareness and patronage of members on the cooperative services. This was
conducted on November 2008 to January 2009 in Itogon, Benguet.
Results showed that on the level of awareness to the services the members
moderately aware on the cooperative services. For the level of patronage to services, the
members sometimes patronize the services offered by the cooperative.
The members’ reasons for low patronage on the cooperative services was
because they do not need the services particularly the allied services of the cooperative
except for the regular loan which was the mostly being patronize by the members.
It is recommended that the cooperative should conduct information
disseminations or send some notices to the members in their places especially to remote
areas. They need to be informed on the new services, especially the members who are
ii
already old and less mobile, for them to know the proper requirement in patronizing such
services.
ii
TABLE OF CONTENTS
Page
Bibliography……………………………………………………………………. i
Abstract…………………………………………………………………………… i
Table of Contents………………………………………………………………... iii
INTRODUCTION………………………………………………………………...
Rationale of the Study ………………………………………………….... 1
Statement of the Problem ………………………………………………… 3
Objectives of the Study …………………………………………………… 4
Importance of the Study ………………………………………………….. 4
Scope and Delimitation of the Study ……………………………………… 4
REVIEW OF LITERATURE ……………………………………………………..
Description of Services …………………………………………………… 5
Patronage …………………………………………………………………. 7
Patronage Refund ……………………………………………………….… 8
METHODOLOGY ………………………………………………………………..
Locale and Time of the Study …………………………………………….. 11
Respondent of the Study ………………………………………………….. 11
Data Collection ……………………………………………………………. 11
Data Analysis……………………………………………………………… 12
iii
RESULTS AND DISCUSSION …………………………………………………..
Socio- Economic Profile of Respondents ………………………………… 13
Membership to other Cooperative ………………………………………… 16
Level of Awareness on the Services of the Cooperative ………………… 17
Reasons of not Being Aware on the Services …………………………….. 19
Level of Patronage on the Cooperative …………….……………….…….. 19
Reasons for low patronage on the cooperative services ……………......... 21
Benefits Derived by Members from the Cooperative……………………... 23
Problem Met during the Availment on the Services………………………. 25
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS …………………
Summary………………………………………………………………....... 26
Conclusion ………………………………………………………………… 27
Recommendation ………………………………………………………….. 28
LITERATURE CITED ……………………………………………………………. 29
APPENDIXES………………………………………………………………………
A. Letter of Request…………….………………………………………….. 31
B. Survey Questionnaire...…………………………………………………. 31
iv
INTRODUCTION
Economic problem diversify and become more complex, as population
continually grows. The present economic crisis needs a continuous search for solutions.
A key step towards solving economic woes is through cooperation among fellowmen.
A cooperative member plays an important role in the cooperative organization.
Without their loyalty and continuous patronage to the cooperative, it cannot continue to
operate and serve its members. This is the unique set-up of a cooperative, which makes it
different from a profit-oriented business.
According to Rafael Steinberg as quoted by Abasolo and Ruiz (1996) pg.1
“Mankind survives today through organizations,” since the existence of society started.
The “bayanihan” spirit is one of our Filipino cultures, which is an evidence of helping our
neighbors. Thus, through out history our society was been formed to achieve a common
end and it helps members acquire their basic needs and empower them toward achieving
their aspirations through organization and cooperation.
Cooperative is derived from the French word “cooperari”, which means to work
with. Cooperative therefore, is an organization of persons who have voluntarily joined
together to achieve a lawful common social economic end, making equitable
contributions to the capital required and accepting a fair share of the risks and benefits of
the undertaking in accordance with universally accepted cooperative principles. It is
marked together and motivated by individual selfish end. Hence, the underlying motive
behind this organization is service for members, who are the owners of the business to
provide and satisfy their felt needs and desires.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
2
The Philippine government has developed program towards the support of
cooperatives, when they realize the importance of the cooperatives as an instrument in
economic growth and stability as well as social justice.
The underlying motive behind the cooperative movement is service. In the
Cooperative, members bind themselves in order that they may serve each other’s needs.
By pooling their resources together, members are able to harness their efforts for their
mutual benefits.
Basically, the Baguio-Benguet Community Credit Cooperative (BBCCC) is a
credit cooperative and as such lending is its main line of service. However, it also offers
allied services for the ultimate benefits of its members. BBCCC was founded by the late
Atty. Alexander Brillantes on October 11,1958 as Baguio Teachers Credit Union Inc.. It
started by fifteen (15) teachers of then St.Louis College (now St. Louis University) Based
on the manger’s report during the 49th annual general assembly meeting held last March
16, 2008, BBCCC’s membership has now ballooned to 19,497 regular and associate
active members as of June 2008. It was also indicated in this report that BBCCC had a
better performance in 2007 than in 2006, despite the decrease in loans from Php.744,
740,164.10 to Php. 718,829,011.05. During the same period, membership increased from
17,612 to 19,384; assets from Php 815,818,189.00 to Php.902,925,785 ; savings deposits
from Php.60,261,815.00 to Php. 74,641,993.00; time deposits from Php.38,455,509.00 to
Php.49,615,657.00; membership equity from Php. 614,562,303.00 to Php.
664,439,123.00; income from Php.98,501,400.00; and rate of interest on share capital
from 5.5% to 5.82%.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
3
BBCCC has gone a long way, thus for added value, it pools and mobilizes
savings, grants loans, builds capabilities, provides consumer educations, opens revenue
opportunities, spread risk and maximizes the purchasing power of members loans through
the continuous support and patronage of the members on such services, every year end,
BBCCC members may receive net savings from the cooperative, through interest on
capital and patronage refund.
Furthermore, BBCCC is greatly encouraging its member to save regularly. Dr.
Amparo Rimas (BBCCC President and Chairman of the Board of Directors at present)
stated that it might be the appropriate time to remind all about the three solid foundations
of successful credit cooperatives together with services of cooperative such as ours: Save
regularly, borrow wisely, and pay promptly.
Generally, this study intends to find out the awareness of members, residing in
Itogon, Benguet, on the services offered by the cooperative and their level of patronage to
the different services of the cooperative.
Statement of the Problem
The study addressed the following questions:
1. What is the level of awareness of members on the services of BBCCC?
2. What is the level of patronage of members-borrower on the services offered by
the cooperative?
3. What are the proposed policy recommendations in order to enhance members’
awareness and patronage of the cooperative?
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
4
Objective of the Study
The following are the objectives of the study:
1. Assess the awareness level of members on the services of BBCCC.
2. Determine the level of patronage of members on the services offered by the
cooperative.
3. Propose policy recommendations to enhance members’ awareness and
patronage of the cooperative services.
Importance of the Study
The result of this study would be used as a reference to future researchers,
student, as well as readers who want to use the results of this study or further study the
said cooperative. This information would be used by people in the cooperative to device
strategies for improving the cooperative’s services. In addition, result maybe a basis for
members in enhancing their patronage and participation to the cooperative’s activities.
Scope and Delimitation
This study mainly concentrated on the awareness of members on the services and
determined their level of patronage.
Respondents included only those residing in the municipality of Itogon who had
been members of Baguio-Benguet Credit Cooperative (BBCCC) for at least three years
reckoning from the conduct of the study.
This study was conducted from December 2008- February 2009.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
5
REVIEW OF LITERATURE
Services
Services as defined by the Webster’s New World Dictionary is a system or
method of providing people with the use of something, as electric power, water,
transportation, mail delivery installation, maintenance, repairs etc.
A public service cooperative, as stated from the Cooperative code of the
Philippines (R.A 6938) is one that is organize to render public service as authorized
under a franchise or certificate of public convenience and necessity duly issued by the
appropriate government agency. Furthermore, the cooperative code of the Philippines
(RA 6938) states that a cooperative shall provide goods and services to its members and
thus enable them to increase their income and savings, investment, productivity and
purchasing power and promote among them equitable distribution of net surplus through
maximum utilization of economic of scale, cost sharing and risk taking.
Calyaen (1996) as cited by Baglao (2002) stated that cooperatives are organized
in accordance with economic needs of members. A cooperative must provide services,
which are not available in the vicinity, improve those supplies already existing in other
enterprises. Cooperative is an act of give and take by its members. It is an organization of
people with common goal to attain the burden and privileges base from equal investment.
The Cooperative Development Authority (1996) emphasized that; to be successful
a cooperative needs at least to maintain its volume of member’s transaction, with
increased competitive prices. Improved services may mean expanding the range of
services offered to members or improving the delivery of existing services. It is true that
the steps which have to be taken in order to expand or contract the life of a cooperative is
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
6
not to be found in the procedures or steps one takes in order to maintain its structure and
organizational operations, but more covertly in the reasons why members would want to
join.
The services of BBCCC cater mainly to the members but there are also services
that non-members can avail. According to BBCCC they offers the following services to
its members:
a. Petty cash loan (PCL) - for small and immediate financial need.
b. Regular loan (RL) - for productive or provident purposes.
c. Special Contingency Loan (SCL) - for appliance financing, car repair,
construction, furniture procurement.
d. Special Service loan (SSL) - for any unforeseen event or any contingent financial
liability.
e. Grocery Purchase services (GPS) – for grocery goods and rice
f. Hospitalization or Emergency Assistance Loan (HEAL) –for hospital confinement
and medical emergency needs.
g. Educational Loan (EL) - for tuition and school materials (books, etc.) and
pertinent academic activities (researches, etc.)
h. Pre-need Loan (PNL) - premium payment for insurance, health care, educational
plan, memorial services, memorial lot, etc.
There are also some allied services, which members can also avail such as:
1. Lodging services. Members, including their relatives and friends, may avail of
the cooperative’s lodging facilities. They are requested to share in the cost for laundry,
water and light and other costs.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
7
2. Function Halls. There are available function halls that are rented at a
reasonable cost.
3. Transportation services. Transport facilities are available for trips within or
outside the city. Members use them on a cost-sharing scheme for the driver’s salary and
allowance, fuel cost, and other expenses.
Patronage
Patronage is derived from the Latin word “patronus”, which means a regular
customer or client who gives financial support to a commercial enterprise or in an
organization.
The more members use the cooperative’s service that is by selling through or
buying from the cooperative, the more the patronage refund they will receive. It is
therefore important for the cooperative to encourage members to patronize its services.
(National Cooperative Business Association, 1996-2008).
Most cooperatives will have to rely on the member-generated funds to finance
their operations. Member’s financial stakes in the cooperative enforce greater
accountability of the cooperative to members, build member participation in decision-
making, and strengthen cooperative financial self-reliance and operational autonomy.
Most strategies for cooperative development require increased funds. The strategy
for developing the cooperative so that it maintains or expands its market position should
focus on operational efficiency and on patronage, on how the cooperative can maintain
existing business and attract more business and new members. However, it also requires
more working capital for the operation of the business of the cooperative. Aside from
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
8
working capital, it is also necessary that the cooperative should invest in fixed assets such
as building and equipment in order to improve its operation.
Patronage Refund
Patronage refund shall be distributed to the members in proportion to their
patronage to the services of the cooperative. The computation of patronage refund shall
be in accordance with the cooperative policies and by-laws, the RA 6938.
The sum allocated for patronage refund and the patronage refund to be given to
the individual patron is usually in accordance with the Cooperative Code of the
Philippines or RA 6938, provided, that:
(a) In the case of a member patron with paid up share capital contribution , his
proportionate amount of patronage refund shall be paid to him unless he agrees to credit
the amount to his account as additional share capital contribution;
(b) In the case of a member patron with unpaid share contribution, his
proportionate amount to his account as additional share capital contribution;
(c) In the case of non-member patron, his proportionate amount of patron age
refund shall be set aside in a general fund for such patrons and shall be allocated to
individual non-member patrons only upon request and presentation of evidence of the
amount of his patronage. The amount such allocation shall be credited to such patron,
toward payment of the minimum capital contribution for membership. When a sum equal
to this amount has accumulated at any time within a period specified in the by-laws, such
patron shall be deemed and become a member of the cooperative if he agrees or request
and complies with the provisions of the by-laws for admission to membership.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
9
(d) If within any period of time specified in the by-laws, any subscribed who
has not fully paid his subscribed share capital or any non-member patron who has
accumulated the sum necessary for membership but who does not request no agree to
become a member or fails to comply with the provisions of the by0- laws for admission
to membership, the amount so accumulated or credited to their account together with any
part of the general fund or to the education and training fund of the cooperative, at the
option of the cooperative
Through the patronage refund, members are actually saving while using the
services of the cooperatives.
According to the CDA, other benefits derived from cooperatives are:
a. Cooperative members develop the habit of thrift and savings
b. Cooperative serves as the training ground for its members in simple business
operation, democratic leadership and responsible citizenship.
c. It offers opportunities to its member’s benefit and progress.
Purposes, which may redound to their material benefits and progress.
d. A cooperative teaches its members a better individual and better member of
the society.
The cooperative members receive economic benefit by way of patronizing its
services. Members who do not patronize the services of the cooperative are not entitled
for patronage refund but only entitled to interest on their share capital investment in the
cooperative.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
10
Distribution of patronage refunds as cited by National Cooperative Business
Association (NCBA, 1996-2008). If declared by the Board of directors, distributions were
made nine months after the close of the fiscal year in which the declaration is made.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
11
METHODOLOGY
Locale and Time of the Study
This study was conducted with the members of Baguio-Benguet Community
Credit Cooperative (BBCCC) residing in the municipality of Itogon, Benguet from
December 2008 to February 2009.
Respondents of the Study
The respondents of the study were the cooperative members. There were fifty
respondents selected at random from the members of the cooperative residing in Itogon
Benguet.
Data Collection
The data were collected using a questionnaire; however, the researcher guided the
respondents in answering the questions and conducted a focus group discussion to ensure
that instructions were fully understood.
Respondents answered questions using a likert scale with the following
descriptions: 1- Fully Aware (FA)
2- Moderately Aware (MA)
3- Not Aware (NA)
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
12
1- Fully Patronize (FP)
2- Often Patronize (OP)
3- Sometimes (S)
4- Not Patronizing (NP)
Data Analysis
The data gathered were summarized and analyzed based on the objectives of the
study. Appropriate descriptive statistical tools, such as percentages, averages weighted
mean, and ranking were used in the analysis.
For each question, the weighted mean was computed as: wm = WF
N
The weighted mean correspond to a verbal description where:
Arbitrary Value
Limit
Description Equivalent
1
1- 1.66
Fully Aware
2
1.67-2.33
Moderately Aware
3
2.34-3.00
Not Aware
Arbitrary Value
Limit
Description Equivalent
1
1-1.74
Fully Patronize
2
1.75-2.49
Often Patronize
3
2.50-3.24
Sometimes
4
3.25-4.00
Not Patronizing
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
13
RESULTS AND DISCUSSION
Socio-economic Profile of Respondents
The respondents of the study consist of fifty members of BBCCC residing at
Itogon, Benguet. The presented profile included their age, sex, civil status, highest
educational attainment, Occupation, Religion, Household income, number of years being
a member of the cooperative and membership to other cooperative.
Age. Table 1 shows the distribution of the respondents according to their age.
The youngest was 22 years old while the oldest was 62 years old. The result shows that
most (32%) of the respondents were 31 – 40 years old. Fifteen or 30 % each belonged to
the age brackets of 41-50 years old. 18% to 20-30 years old, 16% to 51 – 60 years old.
There were two or 4% who were 61-70 years old.
Sex. Majority of the respondents (62%) were female and only (38%) were male.
This implies that there were more female members of BBCCC in Itogon than male.
Civil status. Majority (80%) of the respondents were married, (18%) were single
and 1or 2% was widowed.
Educational attainment. Twenty-nine or 58% were college graduate while 20%
were secondary graduate. Six or (12%) had obtained Vocational Technical course and
five (10%) had postgraduate of degrees. None of the respondents had elementary level.
This shows that most of the members have acquired a higher level of formal education.
Occupation. As shown in the Table 1, most of the members 13(26%) were self-
employed, 11 (22%) were government employees, 10(20%) were businessperson. There
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
14
were 7 (14%) respondents who are farmers and 7 (14%) were students, housewife and
tutors. The rest (4%) were employed in private firms.
Religion. Most of the respondents, (84%) were Roman Catholic, three or 6% were
Baptist, while 4 (8%) belonged to the sect of Evangelical and Born Again Christian.
Household income per annum. Twenty-five (50%) of the respondents earned
P100, 000 to P150, 000 per year. There were sixteen (32%) who earned below P100, 000
a year. While six (12%) earned of P151, 000 to P200, 000 and three (6%) earned above
P200, 000 a year.
Years of membership in the cooperative. The result shows that most (42%) of the
respondent has been members of the cooperative for about three years while the other
thirteen (26%) for four years. Nine (18%) were members for almost six years. One of
them had been a member for nine years. This result shows that most of the respondents
had been a member of the cooperative for a short time during this study.
Table 1. Profile of the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
F
(%)
Age
20-30
9
18
31-40
16
32
41-50
15
30
51-60
8
16
61-70
2
4
TOTAL
50
100
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
15
Table 1 Continued…
PARTICULARS
FREQUENCY
PERCENTAGE
F
P
Gender
Females
19
38
Males
31
62
TOTAL
50
100
Civil Status
Single
9
18
Married
40
80
Widow
1
2
TOTAL
50
100
Educational Attainment
Elementary
0
0
Secondary
10
20
Vocational/Technical
6
12
College
29
58
Post College
5
10
TOTAL
50
100
Occupation
Farmer
7
14
Businessman/woman
10
20
Employed in private firm
2
4
Self Employed
13
26
Government Employee
11
22
Others
7
14
TOTAL
50
100
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
16
FREQUENCY
PERCENTAGE
PARTICULARS
F
P
Religion
Roman Catholic
42
84
Evangelical
2
4
Full Gospel Christian
1
2
Born Again Christian
2
4
Baptist
3
6
TOTAL
50
100
Household Income
Below P100,000
16
32
P100,000 to P150,000
25
50
P151,000 to P200,000
6
12
Above 200,000
3
6
TOTAL
50
100
Years of membership in the cooperative
3 years
21
42
4 years
13
26
5 years
9
18
6 years
6
12
9 years
1
2
TOTAL
50
100
Membership to Other Cooperatives
Table 2 presents that aside from being a member of Baguio-Benguet Community
Credit Cooperative, some of the respondents were members of other cooperatives. Four
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
17
(8%) were members of other cooperative such as, the BARP, Itogon Employees
Cooperative, Ucab Cooperative while (92%)were not members of other cooperative.
Table 2. Membership to other cooperative
RESPONSE
FREQUENCY
PERCENTAGE
F
(%)
Yes
4
8
No
46
92
TOTAL
50
100
Name of the cooperative
1.BARP
1
2
2.Itogon Employees Cooperative
2
4
3.Ucab Cooperative
1
2
TOTAL
4
8
Level of Awareness on the Services of the Cooperative
The result of the study shows that majority of the members were aware on the
services of the cooperative. With a scale of 1 to 3 with 1 as fully aware and 3 as not
aware, the general weighted average was 1.73 which means that members are moderately
aware of all the services of the cooperative. Table 3 presents that the members are fully
aware of the following services: petty cash loan (1.72), regular loan (1.20), special
contingency loan (1.36), special service loan (1.42), grocery purchase service (1.42), on
the other hand they are moderately aware of the following services: hospitalization and
emergency assistant loan (1.68), educational plan (1.72), pre-need loan (2.06), lodging
services (2.14), function halls (2.08), and transportation services (2.22).
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
18
This finding implies that the members are fully aware of the most common
services offered by cooperatives and less aware on the services that are not usually
offered by cooperatives.
Table 3.Members level of awareness on the services
LEVEL OF AWARENESS
Weighted
Weighted
COOPERATIVE SERVICES
Frequency
Mean
Description
1.Petty Cash Loan (PCL)
73
1.72
Moderately Aware
2.Regular Loan (RL)
60
1.20
Fully Aware
3.Special Contingency Loan (SCL)
68
1.36
Fully Aware
4.Special Service Loan (SSL)
71
1.42
Fully Aware
5.Grocery Purchase Loan (GPL)
71
1.42
Fully Aware
6.Hospitalization and Emergency
84
1.68
Moderately Aware
Assistant Loan (HEAL)
7.Educational Loan (ED)
86
1.72
Moderately Aware
8.Pre-need Loan (PL)
103
2.06
Moderately Aware
9.Lodging Services (LS)
107
2.14
Moderately Aware
10.Function Halls (FH)
104
2.08
Moderately Aware
11.Transportation Services (TS)
111
2.22
Moderately Aware
AVERAGE WEIGHTED MEAN
1.73
Moderately Aware
FA- Fully Aware MA- Moderately Aware NA- Not Aware
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
19
Reasons of not Being Aware on the Services
Table 4 shows that 19 (38%) of the respondent were not aware because they have
not been attending the general meeting which the cooperative conducts annually, ( 34%)
said there was lack of information drive since, their places are miles away from the
cooperative. The reason for not attending the meeting was time conflict with their work
and Sunday services.
This finding shows that some members are not aware of the services of the
cooperative because their residence is very far from the cooperative.
Level of Patronage of Members on the Cooperative
Table 5 presents the level of patronage of members on all the cooperative services
With a scale of 1 to 4, with 1 as fully patronize and 4 as not patronize, the general
weighted mean was 2.88 which is interpreted as sometimes patronize. The table presents
that the members were often patronizing the following services: petty cash loan
(1.98),and regular loan (2.16). The following services are sometimes patronize : special
contingency loan (2.78), special service loan (2.94), grocery purchase loan (2.34)
Table 4. Members reasons of not being aware on the services.
REASONS
FREQUENCY
PERCENTAGE
(%)
Not attending the general assembly meeting
19
38
Lack of information drive
17
34
TOTAL
36
72
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
20
Table 5. Members level of patronage on the cooperative services
LEVEL OF PATRONAGE
SERVICES OF THE
Weighted
Weighted Description
COOPERATIVE
Frequency
Mean
Petty Cash Loan (PCL)
99
1.98
Often Patronize
Regular Loan (RL)
108
2.16
Often Patronize
Special Contingency Loan (SCL)
139
1.78
Sometimes
Special Service Loan (SSL)
147
2.94
Sometimes
Grocery Purchase Loan (GPL)
117
2.34
Sometimes
Hospitalization and Emergency
146
2.92
Sometimes
Assistant Loan (HEAL)
Educational Loan (ED)
142
2.84
Sometimes
Pre-need Loan (PL)
166
3.32
Not Patronizing
Lodging Services (LS)
170
3.40
Not Patronizing
Function Halls (FH)
177
3.54
Not Patronizing
Transportation Services (TS)
171
3.42
Not Patronizing
AVERAGE WEIGHTED MEAN
2.88
Sometimes
FP- Fully Patronize OP- Often Patronize S- Sometimes NP- Not Patronizing
hospitalization and emergency assistant loan (2.92), educational loan (2.84), while the
following services are not being patronize by the members: pre-need loan (3.32), lodging
services (3.40) function halls (3.54),and transportation services (3.42).
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
21
This findings implies that members of BBCCC residing in Itogon, Benguet often
patronize the petty cash loan and regular loans, and less patronize the other services.
This could be due to their moderate awareness on the other services as found earlier.
Reasons for Low Patronage on the Cooperative Services
Table 6 presents three reasons why the members less or not patronize the
cooperative services. These were: the members do not need the services of the
cooperative, members cannot meet the requirement and difficult to avail the services.
Reasons for low patronage on petty cash loan. There were about fifteen or 30%
of the respondents who do not need the service. Two (4%) of the respondents mentioned
that they cannot meet the requirement and one (2%) said it is difficult to avail of the
service due to far location of the cooperative.
Reasons for low patronage on regular loan. Only 20% of the respondent
mentioned that they do not need the regular loan, but there were four (8%) who said that
they could not meet the requirement. None of the respondents mentioned that they are
hard up in availing the service since regular loan are mostly needed and patronized by
the members.
Reasons for low patronage on special contingency loan. Most of the respondents
(40%) do not need the special contingency loan. Four (8%) mentioned that they cannot
meet the requirement and 8% said that it is hard to avail the service.
Reasons for low patronage on special service loan. Twenty-nine (58%) of the
respondent do not need the service and six (12%) cannot meet the requirement .None
mentioned that they are hard up in availing the service.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
22
Reasons for low patronage on grocery purchase loan. Eighteen(36%) of the
respondent do not need the services since, their houses are near to grocery or stores where
they purchase their good. According to them they are only after of the loan services. Two
(4%) cannot meet the requirement and none of the respondent are hard up in availing the
service.
Reasons for low patronage on hospitalization and emergency assistant loan. Most
of the respondents (58%) do not need the service since they have health insurance
program. Two percent each cannot meet the requirement and hard up in availing the
service.
Reasons for low patronage on educational loan. Most of the respondents (58%) do
not need the services. One (2%) of the respondent cannot meet the requirement and 2%
said that it is hard to avail the educational Loan.
Reasons for low patronage on pre-need loan. Seventy-two percent of the
respondents do not need the service while four (8%) cannot meet the requirement. Six of
the respondents were hard up in availing the pre-need loan.
Reasons for low patronage on lodging services. Thirty-seven (74%) do not need
the service while four (8%) cannot meet the requirement .Three (6%) were hard in
availing the service because their place is very far so even if they sometimes need the
service, they could not avail.
Reasons for low patronage on function hall services. Majority (80%) of the
respondent do not need the function hall for rent while two (4%) respondent mentioned
that they could not meet the requirement. Three (6%) were hard up in availing the
services.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
23
Reasons for low patronage on the transportation services. Majority (84%) of the
respondent do not need the transportation service while two (4%) respondent mentioned
that they could not meet the requirement. Three (6%) were hard up in availing this
services.
Table 6. Members reason for low patronage on the cooperative services
DO NOT NEED THE CANNOT MEET
HARD TO AVAIL
SERVICES
REQUIREMENT
SERVICES
REASONS
F
%
F
%
F
%
PCL
15
30
2
4
1
2
RL
10
20
4
8
0
0
SCL
20
40
4
8
4
8
SSL
24
58
6
12
0
0
GPL
18
36
2
4
0
0
HEAL
29
58
1
2
1
2
ED
29
58
1
2
1
2
PL
36
72
4
8
2
4
LS
37
74
4
8
3
6
FH
40
80
2
4
3
6
TS
42
84
2
4
3
6
Benefits Derived by Members from the Cooperative
Table 7 shows the distribution of respondents according to the benefits derived
from patronizing the cooperative service. There were about 86% who claimed that it is
because of the patronage refund that they patronize the cooperative. Thirty-five (70%)
respondents said that in cooperatives, they got gift, rebates and bonuses on special
occasion especially on Christmas. Easier credit terms on their purchases compared to
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
24
what other lenders offer as indicated by 22(44%) respondents. Twenty-one (42%) of the
respondent said that they are granted for higher purchase on credit. Eight (16%) said that
they were granted discount on prices for grocery and charges on credit every time they
avail on the service of the cooperative.
This findings shows that members derived different benefits from the cooperative.
Table 7. Benefits derived by members from the cooperative
BENEFITS
FREQUENCY
PERCENTAGE
F
(%)
Gift, rebates and bonuses
35
70
Granted for higher credit or services
21
42
Granted discounts on grocery prices and
8
16
charges on credit
Patronage refund
22
44
Others
43
86
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
25
Problems Met during the Availment on the Services
Table 8 presents that during their availment on the services of the cooperative,
majority (84%) of the respondent said that they did not meet any problem while eight
(16%) of the respondent mentioned some problems regarding on the availment of the
services. One mentioned that staff sometimes mismanage the records of their members.
Although the other services are very helpful, like the grocery purchase, members cannot
easily avail because they are far away thus, it is hard for them to travel to the cooperative
to purchase grocery. In loan availment, some members cannot meet the requirement
especially if it needs to have collateral.
Table 8. Member’s responses on problems meet during the availment on the cooperative
services
RESPONSE
FREQUENCY PERCENTAGE
F
(%)
Did you have any problem?
Yes
8
16
No
42
84
TOTAL
50
100
Problems mentioned
Staff mismanagement on members records 1
2
Member’s are far from the cooperative
3
6
Collaterals
2
4
Cannot meet some requirement
2
4
TOTAL
8
16
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
26
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
The respondents of the study were 50 members of Baguio-Benguet Community
Credit Cooperative, who were residing in Itogon, Benguet. The study determined the
level of awareness and patronage of the member-respondents towards the services of the
cooperative.
The specific objectives of the study were the following: (1) to asses the awareness
level of members on the services of BBCCC (2) determine the level of patronage of
members on the services offered by the cooperative (3) propose policy recommendation
to enhance members’ awareness and patronage of the cooperative services.
The data was collected with the use of survey questionnaire and interview. The
interview was done by the researcher at the municipality of Itogon. The data were
analyzed using descriptive statistical tools such as frequency, percentages and mean.
The study found that most of the members belonged to age bracket of 31-41
years old, female, married, college graduate and were members of the cooperative for at
least 3 years. Most of them were self-employed and government employees. Likewise,
most of the respondent had an income ranging from P100, 000 to P150, 000
per annum.
It was determined that on the average, members were moderately aware on the
services offered by the cooperative.
Most reasons of members for not fully aware on the cooperative services of
BBCCC was because of not attending the meeting and lack of information drive by the
cooperative.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
27
Out of the 11 services offered by the cooperative, 1 was fully patronize, 2 were
often patronize, 3 were sometimes patronize, while 4 were not patronized by the
members in Itogon.
There were members who do not patronize some of the services because they
were hard up in availing or sometimes cannot meet the requirement. Others do not
patronize because they do not need the services. However, majority of the members
patronize the various services of the cooperative because they could get patronage refund
every time they patronize the services.
Although majority of the members did not meet any problem in the availment of
these services, there were a few who encountered some problems like: staff
mismanagement on members records, member’s are far from the cooperative, collaterals,
cannot meet some requirement.
Conclusions
Based on the forgoing findings, the following conclusions were drawn:
1. members of BBCCC residing in Itogon, Benguet were moderately aware of
its services due to far location and lack of information drive.
2. Some of the services of the cooperative were not patronized by the members
in Itogon because of the far location and some of the services, like transportation and
function hall were not needed by them
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
28
Recommendations
1. The cooperative should conduct information disseminations or send some
notices to the members in their places especially on remote areas. They need to be
informed on the new services, especially to the members who are already old and less
mobile, for them to know the proper requirement in patronizing such services.
2. Grocery items are the basic need of the members but they cannot often go to
the cooperative to buy their needs because they are far. So that these members could be
served by the cooperative maybe the cooperative could establish a branch in Itogon so
that it would be accessible to the members there. In this way they would increase their
patronage to the cooperative. The members would also be informed about new
developments in the cooperative through the branch store. It is therefore recommended
that the board of directors and other leaders concerned to study the possibility/feasibility
of branching out the grocery store to different places where there are many members.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
29
LITERATURE CITED
ABASOLO,P.A., and RUIZ M.A.V.1996. Cooperatives in the Philippines. Manila
Philippines.GIC Enterprises and Co. Inc. Pp. 5-7.
ABELLA, F. D. 2004. Cooperatives. Fourth Edition 1999.Manila.Phil.Copy. Chapter
9.Pp.191-192.
BAGLAO, B.C.2002 .Consumer services capacity of the Multipurpose
Cooperative in Poblacion, Bakun.MS.Thesis.Benguet State University, La
Trinidad Benguet
COOPERATIVE CODE OF THE PHILIPPINES. 1990. Primer on RA. 6938
and
6939. Cooperative Development Authority.Pp.3
COOPERATIVE DEVELOPMENT AUTHORITY. 1996.
FAJARDO, F.R.1993. Cooperatives.3rd Edition.Manila. Rex Book Store.
NATIONAL COOPERATIVE BUSINESS ASSOCIATION. 1996-2008.
Accessed at http://www.ncba.coop/abcoop_ab_legal.cfm .Accessed on August 31,
2008
PRESIDENTIAL DECREE NO. 175. Strengthening the cooperative Development.
Ministry of Agriculture, Ablaza Building, Quezon City.
OYANG J. 2008. Benefits derived by members from the services of Baguio Market
Vendors’ Multi-purpose cooperative.
SUAN C. 2008. Members’ level of knowledge on cooperatives and perspectives of Belis
Sayet Coffee Growers Association in Atok, Benguet on their conversion to a
cooperative
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
30
APPENDIX A
Communication Letter
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT (DAEAM)
Benguet State University
La Trinidad, Benguet
August 2008
Veronica Cardona
Manager
Baguio _ Benguet Community Credit Cooperative
#56 Cooperative Street, Corner Assumption Road Baguio City
Madam:
Warm greetings!
In connection with my research on Awareness and Patronage of Members of BBCCC on
the Cooperative Services 2008-2009 of Benguet State University. I have the honor to
request permission to conduct study and float my questionnaires to your member-
borrowers and prospect members.
Additionally may I also request from your good office the list of names and address of
your members especially those residing at the municipality of Itogon?
Thank you very much for your favorable action regarding this request. Your favorable
action will be highly appreciated.
Sincerely Yours,
MARY ANN A PATRICIO.
(Researcher)
Noted:
EVANGELINE B. CUNGIHAN
Adviser
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
31
APPENDIX B
LETTER TO THE RESPONDENTS
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
SIR/MADAM
The undersigned is a student of this institution taking up Bachelor of Science in
Agribusiness major in Cooperative Management. As part of our requirement to finish, the
course is to conduct research. I am presently conducting data gathering for my research
titled “AWARENESS AND PATRONAGE OF MEMBERS OF BBCCC RESIDING
AT ITOGON BENGUET ON THE COOPERATIVE SERVICES” this research aim
to find out the level of awareness of members on the services of BBBCCC; determine the
level of patronage of members on the services offered by the cooperative; and propose
policy recommendations to enhance members’ awareness and patronage of the
cooperative services.
Hoping that this humble effort can help surface problem areas to which strategies in the
management of cooperatives, may I please request you to spare me a little of your time to
become part of this study by answering the attached survey questionnaire. I understood
that you are busy but I am convinced that no one else but you, as member of the
cooperative can supply insights on the topic. Your contribution to this work will be
greatly appreciated.
Please be assured that confidentiality of your responses will be strictly observed and
information will be treated in aggregate form.
Thank you very much for the time and effort you have invested in this study.
Sincerely Yours,
NOTED:
MARY ANN A. PATRICIO
EVANGELINE B. CUNGIHAN
Researcher
Adviser
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
32
SURVEY QUESTIONNAIRE
Direction: Please fill-up the blanks with the needed information and check the
parenthesis, which fits your answers.
I.GENERAL INFORMATION
1. Name of respondents (optional) ___________________________2.Age______
3. Sex___________________ 4.Civil Status_____________
5. Highest Educational Attainment
( ) Elementary ( ) College
( ) Secondary ( ) Post college
( ) Vocational / Technical
( ) Others, Specify ________________________________________
6. Occupation
( ) Farmer
( ) Businessman
( ) Employed in Private Firm
( ) Government Employee
( ) Others, Please specify ____________________________________
7. Religion:
8. Household Income per annum:
( ) Below P100,000
( ) P100,000 to P150,000
( ) P151,000 to P200,000
( ) Above 200,000
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
33
9. Number of years being as member of the cooperative.________________________
10. Are you a member of another cooperative? _________Yes ___________No
11. If yes, please specify the name of the cooperative___________________________
II. AWARENESS ON THE SERVICES OF THE COOPERATIVE
Please indicate your perceived level of awareness on the fallowing cooperative
services of BBCCC by checking the appropriate column. Each column corresponds to a
specific awareness level as follows:
Legend:
FA = Fully Aware
MA= Moderately Aware
NA= Not Aware
COOPERATIVE SERVICES
FA
MA
NA
1. Petty Cash Loan (PCL)
2. Regular Loan (RL)
3. Special Contingency Loan (SCL)
4. Special Service Loan (SSL)
5. Grocery Purchase Service (GPS)
6. Hospitalization and Emergency assistant Loan (HEAL)
7. Educational Loan (EL)
8. Pre-need Loan (PL)
9. Lodging Services (SL)
10.Function Halls (FHS)
11. Transportation Services (TS)
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
34
Reasons of not being aware on the services
( ) Not attending the meeting
( ) Lack of information drive
III. LEVEL OF PATRONAGE ON SERVICES
Legend:
OP = Often patronize - at least patronized the service 5 times for the past three years
FP = Fully patronize - the loan is renewed every time it is paid or half paid.
S = Sometimes - at least 3 times for the past three years
N = Not at all- never patronized for the past three years
COOPERATIVE SERVICES
OP
S
FP
N
1. Petty Cash Loan (PCL)
2. Regular Loan (RL)
3. Special Contingency Loan (SCL)
4. Special Service Loan (SSL)
5. Grocery Purchase Service (GPS)
6. Hospitalization and Emergency assistant
Loan (HEAL)
7. Educational Loan (EL)
8. Pre-need Loan
9. Lodging Services (SL)
10. Function Halls (FHS)
11. Transportation Services (TS)
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
35
Reasons for low patronage or not patronizing:
Legend:
1- Do not need the services
2- Cannot met the requirement
3- Hard to avail the services
COOPERATIVE SERVICES
1
2
3
1. Petty Cash Loan (PCL)
2.Regular Loan (RL)
3.Special Contingency Loan (SCL)
4. Special Service Loan (SSL)
5.. Grocery Purchase Service (GPS)
6. Hospitalization and Emergency assistant Loan
(HEAL)
7. Educational Loan (EL)
8. Pre-need Loan (PL)
9. Lodging Services (SL)
10.Function Halls (FHS)
11. Transportation Services (TS)
3. What benefits do you acquire/ get when you patronize your cooperative?
( ) Gift, rebates and bonuses
( ) I am granted for higher credit / services
( ) I am granted discount on price for grocery and charges on credit.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
36
( ) Easier credit terms compared to others lenders
( ) Patronage Refund
( ) Others, please specify_______________________________.
4. Have you met any problem on the availment of services of the cooperative?
__________yes
__________no
If yes, please mention the problems_________________________________________
_____________________________________________________________________.
IV. What are the policy you would recommend to enhance members’ awareness and
patronage on the cooperative services?
Policy recommendations on awareness of the services
a._______________________________________
b._______________________________________
Policy recommendations on patronage of the services
a.______________________________________
b.______________________________________
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
PATRICIO, MARY ANN A. APRIL 2009. Awareness and Patronage of
Members of BBCCC Residing at Itogon Benguet on the Cooperative Services. Benguet
State University, La Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, M Sc.
ABSTRACT
The study was conducted to determine the level of awareness on the cooperative
services, and the level of patronage of these services by members residing in Itogon,
Benguet. Furthermore, the study made some recommendation that would enhance the
level of awareness and patronage of members on the cooperative services. This was
conducted on November 2008 to January 2009 in Itogon, Benguet.
Results showed that on the level of awareness to the services the members
moderately aware on the cooperative services. For the level of patronage to services, the
members sometimes patronize the services offered by the cooperative.
The members’ reasons for low patronage on the cooperative services was
because they do not need the services particularly the allied services of the cooperative
except for the regular loan which was the mostly being patronize by the members.
It is recommended that the cooperative should conduct information
disseminations or send some notices to the members in their places especially to remote
areas. They need to be informed on the new services, especially the members who are
ii
already old and less mobile, for them to know the proper requirement in patronizing such
services.
ii
TABLE OF CONTENTS
Page
Bibliography……………………………………………………………………. i
Abstract…………………………………………………………………………… i
Table of Contents………………………………………………………………... iii
INTRODUCTION………………………………………………………………...
Rationale of the Study ………………………………………………….... 1
Statement of the Problem ………………………………………………… 3
Objectives of the Study …………………………………………………… 4
Importance of the Study ………………………………………………….. 4
Scope and Delimitation of the Study ……………………………………… 4
REVIEW OF LITERATURE ……………………………………………………..
Description of Services …………………………………………………… 5
Patronage …………………………………………………………………. 7
Patronage Refund ……………………………………………………….… 8
METHODOLOGY ………………………………………………………………..
Locale and Time of the Study …………………………………………….. 11
Respondent of the Study ………………………………………………….. 11
Data Collection ……………………………………………………………. 11
Data Analysis……………………………………………………………… 12
iii
RESULTS AND DISCUSSION …………………………………………………..
Socio- Economic Profile of Respondents ………………………………… 13
Membership to other Cooperative ………………………………………… 16
Level of Awareness on the Services of the Cooperative ………………… 17
Reasons of not Being Aware on the Services …………………………….. 19
Level of Patronage on the Cooperative …………….……………….…….. 19
Reasons for low patronage on the cooperative services ……………......... 21
Benefits Derived by Members from the Cooperative……………………... 23
Problem Met during the Availment on the Services………………………. 25
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS …………………
Summary………………………………………………………………....... 26
Conclusion ………………………………………………………………… 27
Recommendation ………………………………………………………….. 28
LITERATURE CITED ……………………………………………………………. 29
APPENDIXES………………………………………………………………………
A. Letter of Request…………….………………………………………….. 31
B. Survey Questionnaire...…………………………………………………. 31
iv
INTRODUCTION
Economic problem diversify and become more complex, as population
continually grows. The present economic crisis needs a continuous search for solutions.
A key step towards solving economic woes is through cooperation among fellowmen.
A cooperative member plays an important role in the cooperative organization.
Without their loyalty and continuous patronage to the cooperative, it cannot continue to
operate and serve its members. This is the unique set-up of a cooperative, which makes it
different from a profit-oriented business.
According to Rafael Steinberg as quoted by Abasolo and Ruiz (1996) pg.1
“Mankind survives today through organizations,” since the existence of society started.
The “bayanihan” spirit is one of our Filipino cultures, which is an evidence of helping our
neighbors. Thus, through out history our society was been formed to achieve a common
end and it helps members acquire their basic needs and empower them toward achieving
their aspirations through organization and cooperation.
Cooperative is derived from the French word “cooperari”, which means to work
with. Cooperative therefore, is an organization of persons who have voluntarily joined
together to achieve a lawful common social economic end, making equitable
contributions to the capital required and accepting a fair share of the risks and benefits of
the undertaking in accordance with universally accepted cooperative principles. It is
marked together and motivated by individual selfish end. Hence, the underlying motive
behind this organization is service for members, who are the owners of the business to
provide and satisfy their felt needs and desires.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
2
The Philippine government has developed program towards the support of
cooperatives, when they realize the importance of the cooperatives as an instrument in
economic growth and stability as well as social justice.
The underlying motive behind the cooperative movement is service. In the
Cooperative, members bind themselves in order that they may serve each other’s needs.
By pooling their resources together, members are able to harness their efforts for their
mutual benefits.
Basically, the Baguio-Benguet Community Credit Cooperative (BBCCC) is a
credit cooperative and as such lending is its main line of service. However, it also offers
allied services for the ultimate benefits of its members. BBCCC was founded by the late
Atty. Alexander Brillantes on October 11,1958 as Baguio Teachers Credit Union Inc.. It
started by fifteen (15) teachers of then St.Louis College (now St. Louis University) Based
on the manger’s report during the 49th annual general assembly meeting held last March
16, 2008, BBCCC’s membership has now ballooned to 19,497 regular and associate
active members as of June 2008. It was also indicated in this report that BBCCC had a
better performance in 2007 than in 2006, despite the decrease in loans from Php.744,
740,164.10 to Php. 718,829,011.05. During the same period, membership increased from
17,612 to 19,384; assets from Php 815,818,189.00 to Php.902,925,785 ; savings deposits
from Php.60,261,815.00 to Php. 74,641,993.00; time deposits from Php.38,455,509.00 to
Php.49,615,657.00; membership equity from Php. 614,562,303.00 to Php.
664,439,123.00; income from Php.98,501,400.00; and rate of interest on share capital
from 5.5% to 5.82%.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
3
BBCCC has gone a long way, thus for added value, it pools and mobilizes
savings, grants loans, builds capabilities, provides consumer educations, opens revenue
opportunities, spread risk and maximizes the purchasing power of members loans through
the continuous support and patronage of the members on such services, every year end,
BBCCC members may receive net savings from the cooperative, through interest on
capital and patronage refund.
Furthermore, BBCCC is greatly encouraging its member to save regularly. Dr.
Amparo Rimas (BBCCC President and Chairman of the Board of Directors at present)
stated that it might be the appropriate time to remind all about the three solid foundations
of successful credit cooperatives together with services of cooperative such as ours: Save
regularly, borrow wisely, and pay promptly.
Generally, this study intends to find out the awareness of members, residing in
Itogon, Benguet, on the services offered by the cooperative and their level of patronage to
the different services of the cooperative.
Statement of the Problem
The study addressed the following questions:
1. What is the level of awareness of members on the services of BBCCC?
2. What is the level of patronage of members-borrower on the services offered by
the cooperative?
3. What are the proposed policy recommendations in order to enhance members’
awareness and patronage of the cooperative?
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
4
Objective of the Study
The following are the objectives of the study:
1. Assess the awareness level of members on the services of BBCCC.
2. Determine the level of patronage of members on the services offered by the
cooperative.
3. Propose policy recommendations to enhance members’ awareness and
patronage of the cooperative services.
Importance of the Study
The result of this study would be used as a reference to future researchers,
student, as well as readers who want to use the results of this study or further study the
said cooperative. This information would be used by people in the cooperative to device
strategies for improving the cooperative’s services. In addition, result maybe a basis for
members in enhancing their patronage and participation to the cooperative’s activities.
Scope and Delimitation
This study mainly concentrated on the awareness of members on the services and
determined their level of patronage.
Respondents included only those residing in the municipality of Itogon who had
been members of Baguio-Benguet Credit Cooperative (BBCCC) for at least three years
reckoning from the conduct of the study.
This study was conducted from December 2008- February 2009.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
5
REVIEW OF LITERATURE
Services
Services as defined by the Webster’s New World Dictionary is a system or
method of providing people with the use of something, as electric power, water,
transportation, mail delivery installation, maintenance, repairs etc.
A public service cooperative, as stated from the Cooperative code of the
Philippines (R.A 6938) is one that is organize to render public service as authorized
under a franchise or certificate of public convenience and necessity duly issued by the
appropriate government agency. Furthermore, the cooperative code of the Philippines
(RA 6938) states that a cooperative shall provide goods and services to its members and
thus enable them to increase their income and savings, investment, productivity and
purchasing power and promote among them equitable distribution of net surplus through
maximum utilization of economic of scale, cost sharing and risk taking.
Calyaen (1996) as cited by Baglao (2002) stated that cooperatives are organized
in accordance with economic needs of members. A cooperative must provide services,
which are not available in the vicinity, improve those supplies already existing in other
enterprises. Cooperative is an act of give and take by its members. It is an organization of
people with common goal to attain the burden and privileges base from equal investment.
The Cooperative Development Authority (1996) emphasized that; to be successful
a cooperative needs at least to maintain its volume of member’s transaction, with
increased competitive prices. Improved services may mean expanding the range of
services offered to members or improving the delivery of existing services. It is true that
the steps which have to be taken in order to expand or contract the life of a cooperative is
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
6
not to be found in the procedures or steps one takes in order to maintain its structure and
organizational operations, but more covertly in the reasons why members would want to
join.
The services of BBCCC cater mainly to the members but there are also services
that non-members can avail. According to BBCCC they offers the following services to
its members:
a. Petty cash loan (PCL) - for small and immediate financial need.
b. Regular loan (RL) - for productive or provident purposes.
c. Special Contingency Loan (SCL) - for appliance financing, car repair,
construction, furniture procurement.
d. Special Service loan (SSL) - for any unforeseen event or any contingent financial
liability.
e. Grocery Purchase services (GPS) – for grocery goods and rice
f. Hospitalization or Emergency Assistance Loan (HEAL) –for hospital confinement
and medical emergency needs.
g. Educational Loan (EL) - for tuition and school materials (books, etc.) and
pertinent academic activities (researches, etc.)
h. Pre-need Loan (PNL) - premium payment for insurance, health care, educational
plan, memorial services, memorial lot, etc.
There are also some allied services, which members can also avail such as:
1. Lodging services. Members, including their relatives and friends, may avail of
the cooperative’s lodging facilities. They are requested to share in the cost for laundry,
water and light and other costs.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
7
2. Function Halls. There are available function halls that are rented at a
reasonable cost.
3. Transportation services. Transport facilities are available for trips within or
outside the city. Members use them on a cost-sharing scheme for the driver’s salary and
allowance, fuel cost, and other expenses.
Patronage
Patronage is derived from the Latin word “patronus”, which means a regular
customer or client who gives financial support to a commercial enterprise or in an
organization.
The more members use the cooperative’s service that is by selling through or
buying from the cooperative, the more the patronage refund they will receive. It is
therefore important for the cooperative to encourage members to patronize its services.
(National Cooperative Business Association, 1996-2008).
Most cooperatives will have to rely on the member-generated funds to finance
their operations. Member’s financial stakes in the cooperative enforce greater
accountability of the cooperative to members, build member participation in decision-
making, and strengthen cooperative financial self-reliance and operational autonomy.
Most strategies for cooperative development require increased funds. The strategy
for developing the cooperative so that it maintains or expands its market position should
focus on operational efficiency and on patronage, on how the cooperative can maintain
existing business and attract more business and new members. However, it also requires
more working capital for the operation of the business of the cooperative. Aside from
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
8
working capital, it is also necessary that the cooperative should invest in fixed assets such
as building and equipment in order to improve its operation.
Patronage Refund
Patronage refund shall be distributed to the members in proportion to their
patronage to the services of the cooperative. The computation of patronage refund shall
be in accordance with the cooperative policies and by-laws, the RA 6938.
The sum allocated for patronage refund and the patronage refund to be given to
the individual patron is usually in accordance with the Cooperative Code of the
Philippines or RA 6938, provided, that:
(a) In the case of a member patron with paid up share capital contribution , his
proportionate amount of patronage refund shall be paid to him unless he agrees to credit
the amount to his account as additional share capital contribution;
(b) In the case of a member patron with unpaid share contribution, his
proportionate amount to his account as additional share capital contribution;
(c) In the case of non-member patron, his proportionate amount of patron age
refund shall be set aside in a general fund for such patrons and shall be allocated to
individual non-member patrons only upon request and presentation of evidence of the
amount of his patronage. The amount such allocation shall be credited to such patron,
toward payment of the minimum capital contribution for membership. When a sum equal
to this amount has accumulated at any time within a period specified in the by-laws, such
patron shall be deemed and become a member of the cooperative if he agrees or request
and complies with the provisions of the by-laws for admission to membership.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
9
(d) If within any period of time specified in the by-laws, any subscribed who
has not fully paid his subscribed share capital or any non-member patron who has
accumulated the sum necessary for membership but who does not request no agree to
become a member or fails to comply with the provisions of the by0- laws for admission
to membership, the amount so accumulated or credited to their account together with any
part of the general fund or to the education and training fund of the cooperative, at the
option of the cooperative
Through the patronage refund, members are actually saving while using the
services of the cooperatives.
According to the CDA, other benefits derived from cooperatives are:
a. Cooperative members develop the habit of thrift and savings
b. Cooperative serves as the training ground for its members in simple business
operation, democratic leadership and responsible citizenship.
c. It offers opportunities to its member’s benefit and progress.
Purposes, which may redound to their material benefits and progress.
d. A cooperative teaches its members a better individual and better member of
the society.
The cooperative members receive economic benefit by way of patronizing its
services. Members who do not patronize the services of the cooperative are not entitled
for patronage refund but only entitled to interest on their share capital investment in the
cooperative.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
10
Distribution of patronage refunds as cited by National Cooperative Business
Association (NCBA, 1996-2008). If declared by the Board of directors, distributions were
made nine months after the close of the fiscal year in which the declaration is made.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
11
METHODOLOGY
Locale and Time of the Study
This study was conducted with the members of Baguio-Benguet Community
Credit Cooperative (BBCCC) residing in the municipality of Itogon, Benguet from
December 2008 to February 2009.
Respondents of the Study
The respondents of the study were the cooperative members. There were fifty
respondents selected at random from the members of the cooperative residing in Itogon
Benguet.
Data Collection
The data were collected using a questionnaire; however, the researcher guided the
respondents in answering the questions and conducted a focus group discussion to ensure
that instructions were fully understood.
Respondents answered questions using a likert scale with the following
descriptions: 1- Fully Aware (FA)
2- Moderately Aware (MA)
3- Not Aware (NA)
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
12
1- Fully Patronize (FP)
2- Often Patronize (OP)
3- Sometimes (S)
4- Not Patronizing (NP)
Data Analysis
The data gathered were summarized and analyzed based on the objectives of the
study. Appropriate descriptive statistical tools, such as percentages, averages weighted
mean, and ranking were used in the analysis.
For each question, the weighted mean was computed as: wm = WF
N
The weighted mean correspond to a verbal description where:
Arbitrary Value
Limit
Description Equivalent
1
1- 1.66
Fully Aware
2
1.67-2.33
Moderately Aware
3
2.34-3.00
Not Aware
Arbitrary Value
Limit
Description Equivalent
1
1-1.74
Fully Patronize
2
1.75-2.49
Often Patronize
3
2.50-3.24
Sometimes
4
3.25-4.00
Not Patronizing
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
13
RESULTS AND DISCUSSION
Socio-economic Profile of Respondents
The respondents of the study consist of fifty members of BBCCC residing at
Itogon, Benguet. The presented profile included their age, sex, civil status, highest
educational attainment, Occupation, Religion, Household income, number of years being
a member of the cooperative and membership to other cooperative.
Age. Table 1 shows the distribution of the respondents according to their age.
The youngest was 22 years old while the oldest was 62 years old. The result shows that
most (32%) of the respondents were 31 – 40 years old. Fifteen or 30 % each belonged to
the age brackets of 41-50 years old. 18% to 20-30 years old, 16% to 51 – 60 years old.
There were two or 4% who were 61-70 years old.
Sex. Majority of the respondents (62%) were female and only (38%) were male.
This implies that there were more female members of BBCCC in Itogon than male.
Civil status. Majority (80%) of the respondents were married, (18%) were single
and 1or 2% was widowed.
Educational attainment. Twenty-nine or 58% were college graduate while 20%
were secondary graduate. Six or (12%) had obtained Vocational Technical course and
five (10%) had postgraduate of degrees. None of the respondents had elementary level.
This shows that most of the members have acquired a higher level of formal education.
Occupation. As shown in the Table 1, most of the members 13(26%) were self-
employed, 11 (22%) were government employees, 10(20%) were businessperson. There
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
14
were 7 (14%) respondents who are farmers and 7 (14%) were students, housewife and
tutors. The rest (4%) were employed in private firms.
Religion. Most of the respondents, (84%) were Roman Catholic, three or 6% were
Baptist, while 4 (8%) belonged to the sect of Evangelical and Born Again Christian.
Household income per annum. Twenty-five (50%) of the respondents earned
P100, 000 to P150, 000 per year. There were sixteen (32%) who earned below P100, 000
a year. While six (12%) earned of P151, 000 to P200, 000 and three (6%) earned above
P200, 000 a year.
Years of membership in the cooperative. The result shows that most (42%) of the
respondent has been members of the cooperative for about three years while the other
thirteen (26%) for four years. Nine (18%) were members for almost six years. One of
them had been a member for nine years. This result shows that most of the respondents
had been a member of the cooperative for a short time during this study.
Table 1. Profile of the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
F
(%)
Age
20-30
9
18
31-40
16
32
41-50
15
30
51-60
8
16
61-70
2
4
TOTAL
50
100
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
15
Table 1 Continued…
PARTICULARS
FREQUENCY
PERCENTAGE
F
P
Gender
Females
19
38
Males
31
62
TOTAL
50
100
Civil Status
Single
9
18
Married
40
80
Widow
1
2
TOTAL
50
100
Educational Attainment
Elementary
0
0
Secondary
10
20
Vocational/Technical
6
12
College
29
58
Post College
5
10
TOTAL
50
100
Occupation
Farmer
7
14
Businessman/woman
10
20
Employed in private firm
2
4
Self Employed
13
26
Government Employee
11
22
Others
7
14
TOTAL
50
100
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
16
FREQUENCY
PERCENTAGE
PARTICULARS
F
P
Religion
Roman Catholic
42
84
Evangelical
2
4
Full Gospel Christian
1
2
Born Again Christian
2
4
Baptist
3
6
TOTAL
50
100
Household Income
Below P100,000
16
32
P100,000 to P150,000
25
50
P151,000 to P200,000
6
12
Above 200,000
3
6
TOTAL
50
100
Years of membership in the cooperative
3 years
21
42
4 years
13
26
5 years
9
18
6 years
6
12
9 years
1
2
TOTAL
50
100
Membership to Other Cooperatives
Table 2 presents that aside from being a member of Baguio-Benguet Community
Credit Cooperative, some of the respondents were members of other cooperatives. Four
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
17
(8%) were members of other cooperative such as, the BARP, Itogon Employees
Cooperative, Ucab Cooperative while (92%)were not members of other cooperative.
Table 2. Membership to other cooperative
RESPONSE
FREQUENCY
PERCENTAGE
F
(%)
Yes
4
8
No
46
92
TOTAL
50
100
Name of the cooperative
1.BARP
1
2
2.Itogon Employees Cooperative
2
4
3.Ucab Cooperative
1
2
TOTAL
4
8
Level of Awareness on the Services of the Cooperative
The result of the study shows that majority of the members were aware on the
services of the cooperative. With a scale of 1 to 3 with 1 as fully aware and 3 as not
aware, the general weighted average was 1.73 which means that members are moderately
aware of all the services of the cooperative. Table 3 presents that the members are fully
aware of the following services: petty cash loan (1.72), regular loan (1.20), special
contingency loan (1.36), special service loan (1.42), grocery purchase service (1.42), on
the other hand they are moderately aware of the following services: hospitalization and
emergency assistant loan (1.68), educational plan (1.72), pre-need loan (2.06), lodging
services (2.14), function halls (2.08), and transportation services (2.22).
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
18
This finding implies that the members are fully aware of the most common
services offered by cooperatives and less aware on the services that are not usually
offered by cooperatives.
Table 3.Members level of awareness on the services
LEVEL OF AWARENESS
Weighted
Weighted
COOPERATIVE SERVICES
Frequency
Mean
Description
1.Petty Cash Loan (PCL)
73
1.72
Moderately Aware
2.Regular Loan (RL)
60
1.20
Fully Aware
3.Special Contingency Loan (SCL)
68
1.36
Fully Aware
4.Special Service Loan (SSL)
71
1.42
Fully Aware
5.Grocery Purchase Loan (GPL)
71
1.42
Fully Aware
6.Hospitalization and Emergency
84
1.68
Moderately Aware
Assistant Loan (HEAL)
7.Educational Loan (ED)
86
1.72
Moderately Aware
8.Pre-need Loan (PL)
103
2.06
Moderately Aware
9.Lodging Services (LS)
107
2.14
Moderately Aware
10.Function Halls (FH)
104
2.08
Moderately Aware
11.Transportation Services (TS)
111
2.22
Moderately Aware
AVERAGE WEIGHTED MEAN
1.73
Moderately Aware
FA- Fully Aware MA- Moderately Aware NA- Not Aware
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
19
Reasons of not Being Aware on the Services
Table 4 shows that 19 (38%) of the respondent were not aware because they have
not been attending the general meeting which the cooperative conducts annually, ( 34%)
said there was lack of information drive since, their places are miles away from the
cooperative. The reason for not attending the meeting was time conflict with their work
and Sunday services.
This finding shows that some members are not aware of the services of the
cooperative because their residence is very far from the cooperative.
Level of Patronage of Members on the Cooperative
Table 5 presents the level of patronage of members on all the cooperative services
With a scale of 1 to 4, with 1 as fully patronize and 4 as not patronize, the general
weighted mean was 2.88 which is interpreted as sometimes patronize. The table presents
that the members were often patronizing the following services: petty cash loan
(1.98),and regular loan (2.16). The following services are sometimes patronize : special
contingency loan (2.78), special service loan (2.94), grocery purchase loan (2.34)
Table 4. Members reasons of not being aware on the services.
REASONS
FREQUENCY
PERCENTAGE
(%)
Not attending the general assembly meeting
19
38
Lack of information drive
17
34
TOTAL
36
72
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
20
Table 5. Members level of patronage on the cooperative services
LEVEL OF PATRONAGE
SERVICES OF THE
Weighted
Weighted Description
COOPERATIVE
Frequency
Mean
Petty Cash Loan (PCL)
99
1.98
Often Patronize
Regular Loan (RL)
108
2.16
Often Patronize
Special Contingency Loan (SCL)
139
1.78
Sometimes
Special Service Loan (SSL)
147
2.94
Sometimes
Grocery Purchase Loan (GPL)
117
2.34
Sometimes
Hospitalization and Emergency
146
2.92
Sometimes
Assistant Loan (HEAL)
Educational Loan (ED)
142
2.84
Sometimes
Pre-need Loan (PL)
166
3.32
Not Patronizing
Lodging Services (LS)
170
3.40
Not Patronizing
Function Halls (FH)
177
3.54
Not Patronizing
Transportation Services (TS)
171
3.42
Not Patronizing
AVERAGE WEIGHTED MEAN
2.88
Sometimes
FP- Fully Patronize OP- Often Patronize S- Sometimes NP- Not Patronizing
hospitalization and emergency assistant loan (2.92), educational loan (2.84), while the
following services are not being patronize by the members: pre-need loan (3.32), lodging
services (3.40) function halls (3.54),and transportation services (3.42).
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
21
This findings implies that members of BBCCC residing in Itogon, Benguet often
patronize the petty cash loan and regular loans, and less patronize the other services.
This could be due to their moderate awareness on the other services as found earlier.
Reasons for Low Patronage on the Cooperative Services
Table 6 presents three reasons why the members less or not patronize the
cooperative services. These were: the members do not need the services of the
cooperative, members cannot meet the requirement and difficult to avail the services.
Reasons for low patronage on petty cash loan. There were about fifteen or 30%
of the respondents who do not need the service. Two (4%) of the respondents mentioned
that they cannot meet the requirement and one (2%) said it is difficult to avail of the
service due to far location of the cooperative.
Reasons for low patronage on regular loan. Only 20% of the respondent
mentioned that they do not need the regular loan, but there were four (8%) who said that
they could not meet the requirement. None of the respondents mentioned that they are
hard up in availing the service since regular loan are mostly needed and patronized by
the members.
Reasons for low patronage on special contingency loan. Most of the respondents
(40%) do not need the special contingency loan. Four (8%) mentioned that they cannot
meet the requirement and 8% said that it is hard to avail the service.
Reasons for low patronage on special service loan. Twenty-nine (58%) of the
respondent do not need the service and six (12%) cannot meet the requirement .None
mentioned that they are hard up in availing the service.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
22
Reasons for low patronage on grocery purchase loan. Eighteen(36%) of the
respondent do not need the services since, their houses are near to grocery or stores where
they purchase their good. According to them they are only after of the loan services. Two
(4%) cannot meet the requirement and none of the respondent are hard up in availing the
service.
Reasons for low patronage on hospitalization and emergency assistant loan. Most
of the respondents (58%) do not need the service since they have health insurance
program. Two percent each cannot meet the requirement and hard up in availing the
service.
Reasons for low patronage on educational loan. Most of the respondents (58%) do
not need the services. One (2%) of the respondent cannot meet the requirement and 2%
said that it is hard to avail the educational Loan.
Reasons for low patronage on pre-need loan. Seventy-two percent of the
respondents do not need the service while four (8%) cannot meet the requirement. Six of
the respondents were hard up in availing the pre-need loan.
Reasons for low patronage on lodging services. Thirty-seven (74%) do not need
the service while four (8%) cannot meet the requirement .Three (6%) were hard in
availing the service because their place is very far so even if they sometimes need the
service, they could not avail.
Reasons for low patronage on function hall services. Majority (80%) of the
respondent do not need the function hall for rent while two (4%) respondent mentioned
that they could not meet the requirement. Three (6%) were hard up in availing the
services.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
23
Reasons for low patronage on the transportation services. Majority (84%) of the
respondent do not need the transportation service while two (4%) respondent mentioned
that they could not meet the requirement. Three (6%) were hard up in availing this
services.
Table 6. Members reason for low patronage on the cooperative services
DO NOT NEED THE CANNOT MEET
HARD TO AVAIL
SERVICES
REQUIREMENT
SERVICES
REASONS
F
%
F
%
F
%
PCL
15
30
2
4
1
2
RL
10
20
4
8
0
0
SCL
20
40
4
8
4
8
SSL
24
58
6
12
0
0
GPL
18
36
2
4
0
0
HEAL
29
58
1
2
1
2
ED
29
58
1
2
1
2
PL
36
72
4
8
2
4
LS
37
74
4
8
3
6
FH
40
80
2
4
3
6
TS
42
84
2
4
3
6
Benefits Derived by Members from the Cooperative
Table 7 shows the distribution of respondents according to the benefits derived
from patronizing the cooperative service. There were about 86% who claimed that it is
because of the patronage refund that they patronize the cooperative. Thirty-five (70%)
respondents said that in cooperatives, they got gift, rebates and bonuses on special
occasion especially on Christmas. Easier credit terms on their purchases compared to
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
24
what other lenders offer as indicated by 22(44%) respondents. Twenty-one (42%) of the
respondent said that they are granted for higher purchase on credit. Eight (16%) said that
they were granted discount on prices for grocery and charges on credit every time they
avail on the service of the cooperative.
This findings shows that members derived different benefits from the cooperative.
Table 7. Benefits derived by members from the cooperative
BENEFITS
FREQUENCY
PERCENTAGE
F
(%)
Gift, rebates and bonuses
35
70
Granted for higher credit or services
21
42
Granted discounts on grocery prices and
8
16
charges on credit
Patronage refund
22
44
Others
43
86
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
25
Problems Met during the Availment on the Services
Table 8 presents that during their availment on the services of the cooperative,
majority (84%) of the respondent said that they did not meet any problem while eight
(16%) of the respondent mentioned some problems regarding on the availment of the
services. One mentioned that staff sometimes mismanage the records of their members.
Although the other services are very helpful, like the grocery purchase, members cannot
easily avail because they are far away thus, it is hard for them to travel to the cooperative
to purchase grocery. In loan availment, some members cannot meet the requirement
especially if it needs to have collateral.
Table 8. Member’s responses on problems meet during the availment on the cooperative
services
RESPONSE
FREQUENCY PERCENTAGE
F
(%)
Did you have any problem?
Yes
8
16
No
42
84
TOTAL
50
100
Problems mentioned
Staff mismanagement on members records 1
2
Member’s are far from the cooperative
3
6
Collaterals
2
4
Cannot meet some requirement
2
4
TOTAL
8
16
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
26
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
The respondents of the study were 50 members of Baguio-Benguet Community
Credit Cooperative, who were residing in Itogon, Benguet. The study determined the
level of awareness and patronage of the member-respondents towards the services of the
cooperative.
The specific objectives of the study were the following: (1) to asses the awareness
level of members on the services of BBCCC (2) determine the level of patronage of
members on the services offered by the cooperative (3) propose policy recommendation
to enhance members’ awareness and patronage of the cooperative services.
The data was collected with the use of survey questionnaire and interview. The
interview was done by the researcher at the municipality of Itogon. The data were
analyzed using descriptive statistical tools such as frequency, percentages and mean.
The study found that most of the members belonged to age bracket of 31-41
years old, female, married, college graduate and were members of the cooperative for at
least 3 years. Most of them were self-employed and government employees. Likewise,
most of the respondent had an income ranging from P100, 000 to P150, 000
per annum.
It was determined that on the average, members were moderately aware on the
services offered by the cooperative.
Most reasons of members for not fully aware on the cooperative services of
BBCCC was because of not attending the meeting and lack of information drive by the
cooperative.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
27
Out of the 11 services offered by the cooperative, 1 was fully patronize, 2 were
often patronize, 3 were sometimes patronize, while 4 were not patronized by the
members in Itogon.
There were members who do not patronize some of the services because they
were hard up in availing or sometimes cannot meet the requirement. Others do not
patronize because they do not need the services. However, majority of the members
patronize the various services of the cooperative because they could get patronage refund
every time they patronize the services.
Although majority of the members did not meet any problem in the availment of
these services, there were a few who encountered some problems like: staff
mismanagement on members records, member’s are far from the cooperative, collaterals,
cannot meet some requirement.
Conclusions
Based on the forgoing findings, the following conclusions were drawn:
1. members of BBCCC residing in Itogon, Benguet were moderately aware of
its services due to far location and lack of information drive.
2. Some of the services of the cooperative were not patronized by the members
in Itogon because of the far location and some of the services, like transportation and
function hall were not needed by them
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
28
Recommendations
1. The cooperative should conduct information disseminations or send some
notices to the members in their places especially on remote areas. They need to be
informed on the new services, especially to the members who are already old and less
mobile, for them to know the proper requirement in patronizing such services.
2. Grocery items are the basic need of the members but they cannot often go to
the cooperative to buy their needs because they are far. So that these members could be
served by the cooperative maybe the cooperative could establish a branch in Itogon so
that it would be accessible to the members there. In this way they would increase their
patronage to the cooperative. The members would also be informed about new
developments in the cooperative through the branch store. It is therefore recommended
that the board of directors and other leaders concerned to study the possibility/feasibility
of branching out the grocery store to different places where there are many members.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
29
LITERATURE CITED
ABASOLO,P.A., and RUIZ M.A.V.1996. Cooperatives in the Philippines. Manila
Philippines.GIC Enterprises and Co. Inc. Pp. 5-7.
ABELLA, F. D. 2004. Cooperatives. Fourth Edition 1999.Manila.Phil.Copy. Chapter
9.Pp.191-192.
BAGLAO, B.C.2002 .Consumer services capacity of the Multipurpose
Cooperative in Poblacion, Bakun.MS.Thesis.Benguet State University, La
Trinidad Benguet
COOPERATIVE CODE OF THE PHILIPPINES. 1990. Primer on RA. 6938
and
6939. Cooperative Development Authority.Pp.3
COOPERATIVE DEVELOPMENT AUTHORITY. 1996.
FAJARDO, F.R.1993. Cooperatives.3rd Edition.Manila. Rex Book Store.
NATIONAL COOPERATIVE BUSINESS ASSOCIATION. 1996-2008.
Accessed at http://www.ncba.coop/abcoop_ab_legal.cfm .Accessed on August 31,
2008
PRESIDENTIAL DECREE NO. 175. Strengthening the cooperative Development.
Ministry of Agriculture, Ablaza Building, Quezon City.
OYANG J. 2008. Benefits derived by members from the services of Baguio Market
Vendors’ Multi-purpose cooperative.
SUAN C. 2008. Members’ level of knowledge on cooperatives and perspectives of Belis
Sayet Coffee Growers Association in Atok, Benguet on their conversion to a
cooperative
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
30
APPENDIX A
Communication Letter
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT (DAEAM)
Benguet State University
La Trinidad, Benguet
August 2008
Veronica Cardona
Manager
Baguio _ Benguet Community Credit Cooperative
#56 Cooperative Street, Corner Assumption Road Baguio City
Madam:
Warm greetings!
In connection with my research on Awareness and Patronage of Members of BBCCC on
the Cooperative Services 2008-2009 of Benguet State University. I have the honor to
request permission to conduct study and float my questionnaires to your member-
borrowers and prospect members.
Additionally may I also request from your good office the list of names and address of
your members especially those residing at the municipality of Itogon?
Thank you very much for your favorable action regarding this request. Your favorable
action will be highly appreciated.
Sincerely Yours,
MARY ANN A PATRICIO.
(Researcher)
Noted:
EVANGELINE B. CUNGIHAN
Adviser
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
31
APPENDIX B
LETTER TO THE RESPONDENTS
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
SIR/MADAM
The undersigned is a student of this institution taking up Bachelor of Science in
Agribusiness major in Cooperative Management. As part of our requirement to finish, the
course is to conduct research. I am presently conducting data gathering for my research
titled “AWARENESS AND PATRONAGE OF MEMBERS OF BBCCC RESIDING
AT ITOGON BENGUET ON THE COOPERATIVE SERVICES” this research aim
to find out the level of awareness of members on the services of BBBCCC; determine the
level of patronage of members on the services offered by the cooperative; and propose
policy recommendations to enhance members’ awareness and patronage of the
cooperative services.
Hoping that this humble effort can help surface problem areas to which strategies in the
management of cooperatives, may I please request you to spare me a little of your time to
become part of this study by answering the attached survey questionnaire. I understood
that you are busy but I am convinced that no one else but you, as member of the
cooperative can supply insights on the topic. Your contribution to this work will be
greatly appreciated.
Please be assured that confidentiality of your responses will be strictly observed and
information will be treated in aggregate form.
Thank you very much for the time and effort you have invested in this study.
Sincerely Yours,
NOTED:
MARY ANN A. PATRICIO
EVANGELINE B. CUNGIHAN
Researcher
Adviser
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
32
SURVEY QUESTIONNAIRE
Direction: Please fill-up the blanks with the needed information and check the
parenthesis, which fits your answers.
I.GENERAL INFORMATION
1. Name of respondents (optional) ___________________________2.Age______
3. Sex___________________ 4.Civil Status_____________
5. Highest Educational Attainment
( ) Elementary ( ) College
( ) Secondary ( ) Post college
( ) Vocational / Technical
( ) Others, Specify ________________________________________
6. Occupation
( ) Farmer
( ) Businessman
( ) Employed in Private Firm
( ) Government Employee
( ) Others, Please specify ____________________________________
7. Religion:
8. Household Income per annum:
( ) Below P100,000
( ) P100,000 to P150,000
( ) P151,000 to P200,000
( ) Above 200,000
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
33
9. Number of years being as member of the cooperative.________________________
10. Are you a member of another cooperative? _________Yes ___________No
11. If yes, please specify the name of the cooperative___________________________
II. AWARENESS ON THE SERVICES OF THE COOPERATIVE
Please indicate your perceived level of awareness on the fallowing cooperative
services of BBCCC by checking the appropriate column. Each column corresponds to a
specific awareness level as follows:
Legend:
FA = Fully Aware
MA= Moderately Aware
NA= Not Aware
COOPERATIVE SERVICES
FA
MA
NA
1. Petty Cash Loan (PCL)
2. Regular Loan (RL)
3. Special Contingency Loan (SCL)
4. Special Service Loan (SSL)
5. Grocery Purchase Service (GPS)
6. Hospitalization and Emergency assistant Loan (HEAL)
7. Educational Loan (EL)
8. Pre-need Loan (PL)
9. Lodging Services (SL)
10.Function Halls (FHS)
11. Transportation Services (TS)
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
34
Reasons of not being aware on the services
( ) Not attending the meeting
( ) Lack of information drive
III. LEVEL OF PATRONAGE ON SERVICES
Legend:
OP = Often patronize - at least patronized the service 5 times for the past three years
FP = Fully patronize - the loan is renewed every time it is paid or half paid.
S = Sometimes - at least 3 times for the past three years
N = Not at all- never patronized for the past three years
COOPERATIVE SERVICES
OP
S
FP
N
1. Petty Cash Loan (PCL)
2. Regular Loan (RL)
3. Special Contingency Loan (SCL)
4. Special Service Loan (SSL)
5. Grocery Purchase Service (GPS)
6. Hospitalization and Emergency assistant
Loan (HEAL)
7. Educational Loan (EL)
8. Pre-need Loan
9. Lodging Services (SL)
10. Function Halls (FHS)
11. Transportation Services (TS)
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
35
Reasons for low patronage or not patronizing:
Legend:
1- Do not need the services
2- Cannot met the requirement
3- Hard to avail the services
COOPERATIVE SERVICES
1
2
3
1. Petty Cash Loan (PCL)
2.Regular Loan (RL)
3.Special Contingency Loan (SCL)
4. Special Service Loan (SSL)
5.. Grocery Purchase Service (GPS)
6. Hospitalization and Emergency assistant Loan
(HEAL)
7. Educational Loan (EL)
8. Pre-need Loan (PL)
9. Lodging Services (SL)
10.Function Halls (FHS)
11. Transportation Services (TS)
3. What benefits do you acquire/ get when you patronize your cooperative?
( ) Gift, rebates and bonuses
( ) I am granted for higher credit / services
( ) I am granted discount on price for grocery and charges on credit.
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
36
( ) Easier credit terms compared to others lenders
( ) Patronage Refund
( ) Others, please specify_______________________________.
4. Have you met any problem on the availment of services of the cooperative?
__________yes
__________no
If yes, please mention the problems_________________________________________
_____________________________________________________________________.
IV. What are the policy you would recommend to enhance members’ awareness and
patronage on the cooperative services?
Policy recommendations on awareness of the services
a._______________________________________
b._______________________________________
Policy recommendations on patronage of the services
a.______________________________________
b.______________________________________
Awareness and Patronage of Members of BBCCC Residing at Itogon Benguet on
the Cooperative Services / Marry Ann A. Patricio. 2009
Document Outline
- Awareness and Patronage ofMembers of BBCCC Residing at Itogon Benguet on the Cooperative Services
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSION AND RECOMMENDATION
- LITERATURE CITED
- APPENDIX