BIBLIOGRAPHY

LUMACHAY, JEANNET S. APRIL. 2011. Relationship of Actors in the Spot Market
Chains for Potato. Benguet State University, La Trinidad Benguet.

Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)

ABSTRACT



The study was done through personal interview with validated questionnaire used, in the
collection of the data and information. Identified the demographic profile of the different chain
actors. Number of years engaged in vegetable business specifically potato. And to determine the
similarities and differences in the buyer-seller relationships among the actors in the spot market
for potato. A total number of 193 Respondents were interviewed. The study was conducted
following the geographic flow of potato. Stakeholders engaged in business potato from La
Trinidad, Benguet to Metro Manila market outlets. Majority of the respondents were male. The
result showed that majority of male were engaged in the production, assembly and distribution
functions while the other function were dominated by female.
The data revealed that majority of the chain actors significantly differ in terms of dealing
honestly with the buyers that is considered as one of the important criteria of relational trust. The
chain actors were indifferent as the power in trading negotiation but as sellers were indecisive to
depending on the quality classification, quantity and payment term of the buyer.
The actors work cooperatively with their buyer, hence can build a good alliance and have
a good partnership among them.

---

Moreover, the respondents differ significantly in terms of their commitment with respect
to investment to produce or procure the product. As to relational satisfaction, the respondents
differ significantly in terms of trading with buyers for a longer period of time and buyers treat
sellers fair equitably.

---

1

INTRODUCTION
Rationale
The highland vegetables from the Cordillera Administrative Region (CAR)
traverse long distance routes before it reaches the ultimate consumers as it passes through
many invisible hands. Marketing intermediaries plays an important role in the distribution
flow of potato.

The potato (Solanum tuberosum L.) is grown as one of the major vegetable
produce in cordillera. The farmers harvest and sell their products to commission agents,
financer-wholesalers who transport their produced into the “bagsakan” area in La
Trinidad Vegetable Trading Post. From the spot market, other truckers and wholesalers
transport it into other places like in Metro Manila. They were based at La Trinidad
Vegetable Trading Post. They work as assembler-wholesalers, intercepts vegetable
deliveries with the promise of a high price so they could gather sufficient volume for
delivery to the wholesaler. Financer-wholesalers provide individual farmers with interest
free cash advances production inputs with the assurance that the entire harvest will be
sold to them.

The fresh vegetable sector supply chain transactions involve the interactions
between the buyer and the seller and that there exist relational relationships among them.
This support, statement that supply chains as networks addresses all the questions
related to inter-organizational relationship (Lazzarini et al., 2001).



Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

2

Statement of the Problem

1. What are the similarities and differences in the buyer-seller relationships
among the actors in the spot market for potato?

Objectives of the Study
1. To determine the similarities and differences in the buyer-seller relationships of
actors in the spot market for potato.

a. Trust

b. Power
c. Dependence

d. Communication
e. Cooperation

f. Commitment
g. Relational Satisfaction

Importance of the Study
Supply chain exist to overcome the gaps created when supplier are some distant
away from customers. They allow operations that are best done or can only be done at
locations that are away from the customers or source of materials, moving materials
between geographically separate operations. Supply chain allows mis-matches between
supply and demand. When their excess supply, stocks are build-up in the supply chain
(Waters, 2003).


Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

3

Scope and Delimitation of the Study
This study focuses on the buying-selling in the production and marketing flow of
potato in the spot market. There were 193 respondents intermediaries involve in
marketing different selected potato.




































Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

4


REVIEW OF LITERATURE


Supply Chain Management
In recent years, researchers recognized the relevance of supply chain management
for the agric-food sector (Fearne 1998, Hobs and Yong 2000, Van der Vorst, 2000) due to
the perish ability of products and the need for quality controlled flows of products. This
means that the original good quality products can easily deteriorate as cause by the
careless actions along the supply chain.
In reality, organization does not work from isolation, but each one acts as a
supplier when it delivers the material to its customers. Every product has its own unique
supply chain and these can be both long and complicated (Waters, 2003).
Supply chain means the process of planning, implementing and controlling the
efficient, cost effective flow and storage of raw materials, in-process inventory, finished
goods and related information from the point-of-origin to point of final consumption for
the purpose of conforming to customer requirements (Council of Logistics Management,
1986). Supply chain is a dual flow of products and information. It is the drive to meet the
central needs of the consumer and it stresses the importance of the relationships between
participants in the marketing system. However, the tendency is often focus solely on the
immediate economic aspects when firms are building supply chains (Champion and
Fearne, 2001). Hongze Ma (2005) pointed out that supply chain is a network of
organizations from suppliers with the purpose to improve the flow of material and
information. Drabenstott (1999) discusses the increasing move toward the development
of supply chains and describes supply chain structures where all stages of production,
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

5

processing and distribution are bound together tightly to ensure reliable, efficient delivery
of high quality products.

Supply Chain and Networks
One of the key factors in the development of successful supply chain (SC)
partnerships/alliances is the development of successful relationships between partners in
the supply chain (Bowman, 1997). Recently, social capital argument assumes that forms
of collaboration are not the only based on economic motivation. Actors are believed to
act on the basis of their functional role in the network, while goal orientation, interests,
rules and power relations are determining this role (Uzzi, 1997). The actors in the
network will search for alliances, some of them based on trust and loyalty, while others
will be based on opportunism. A key factor is the process that takes place overtime in
which actors are able to adjust transactions, accommodate routines, transfer activities to
other actors and build up common recipes, standards and cognitive maps. In the course of
this process the network becomes either sustainable, or stagnates and even collapses. In
other words, the behavior and expectations of actors are constrained by the degree to
which relationship between the actors are embedded in the network structure.
Successful supply chain management requires integration of all aspects of the
supply chain: suppliers, warehouses, factories, distributors, and retail outlets. This
requires cooperation among supply chain partners in planning coordination of activities,
and information sharing, which, in turn, requires partners to agree on common goals (goal
sharing). This requires trust and a willingness to cooperate to achieve the common goals.
Coordination and information sharing are critical to the effective operation of a supply
chain. Information exchange must be reciprocal. Partners share forecasts and sales data,
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

6

as well as information on inventory quantities, impending shortages, breakdowns, delays,
and other problems that could impact the timely flow of products and services through
the chain. Information has a time value, and the longer it takes to disseminate information
once it materializes, the lower its value. Thus, instead of each organization in a supply
chain making plans based on a combination of actual orders plus forecasts of demand of
its immediate customer, by sharing data on end-customer sales and partner inventory on a
real-time basis.
Chain Relationships
There are much written about the development and maintenance of long-term
buyer-seller relationships and the greatest support has emerged for the key constructs of
satisfaction and trust (Anderson and Narus, 1990; Anderson and Weitz, 1992; Morgan
and Hunt, 1994).
Chain relationships must be truly two-way in nature and equally meaningful for
both the buyer and seller (Chadwick and Rajagopal, 1995). As a result, social aspects
such as trust, information transfer and learning capability will influence the performance,
development and survival of chains. Migchels (2000) sees the aspects of relationship as
central to sustained competitive advantage, and the current view that organizations
conduct transactions based on autonomous decisions, ignores interdependence with other
organizations. Purchasing divisions often had adversarial relationships with their
suppliers particularly in the agricultural industries. Each buyer and supplier attempts to
get a bigger share of the product value by paying the lowest price (buyers to suppliers) or
gaining the highest return possible (supplier to buyers).
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

7

The dimension of business to business relation has been identified as cooperation,
trust, power, long-term orientation and dependency (Morgan and Hunt, 1994). Matanda
and Schroder (2004) used fourteen (14) relationship dimensions to investigate the
business-to-business relationships namely: instrumental satisfaction; long-term
orientation; cooperation; trust; conflict; commitment; structural bonds; dependence;
power; social bonds; communication usefulness; flexibility and adaptation; relationship
satisfaction; and communication frequency.

Trust

Can be understood as the faith, reliance, belief or confidence in the goodwill of
other partners, i.e. that no partner to an exchange will behave opportunistic or exploit the
vulnerabilities of others (Ring and Van de Ven, 1994). has been defined as “the firm’s
belief that another company will perform actions that will result in positive actions for the
firm, as well as not take unexpected actions that would result negative outcomes for the
firm (Anderson and Narus, 1990:45). The capability to establish trust between the
partners in a collaborative supply chain becomes a crucial competitive parameter (Schary
and Skjøtt-Larsen, 2001). For any potential exchange, trust will be critical if two
situational factors are present – risk and incomplete buyer information (Hawes et al.,
1989). Most sales transactions present some degree of risk and uncertainty to the buyer;
without some degree of trust, the perceived risk maybe too great for the transaction to
occur. More specifically, trust becomes important whenever there is a high level of
performance ambiguity, and poor product performance will have significant adverse
impact on the value derived by the buyer (Singh and Sirdeshmukh, 2000). In such
circumstances, trust acts as an information asymmetry and performance ambiguity. In
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

8

such relationships, governance mechanisms are not necessary and resources can be
devoted to pursue opportunity maximizing behavior beyond the originally intended
exchange. Lack of trust increases transaction costs (O’Keeffe, 1994). Mutual trust and
dependence can reduce the desire to exercise power and control over other parties,
increase the flow of information and reduce risk. Adaptation occurs when buyers and
suppliers invest in transaction-specific investments (Heide and John, 1998).
Go and Appelman (1999) suggest that where trust exists there is lower uncertainty
speeding up decision making conserving resources that can be put to other uses, like
sharing information or learning. Lack of trust increases transaction costs (O’Keeffe,
1994). Mutual trust and dependence can reduce the desire to exercise power and control
over other parties, increase the flow of information and reduce risk.
The importance of trust and social capital as a means of reducing risk and
facilitating exchange is being increasingly recognized when producers and market
intermediaries have limited access to the legal system as a means of redress (Mendoza
and Rosegrant, 1995; Fafchamps, 1996; Humphrey and Schmitz, 1998).

Power

Defined as the ability to influence relationship partner and dependence or
asymmetrical investment in relationship-assets can lead to the exercise of coercive power
(Matanda and Schrodder, 2004).

Dependence

Increased when the outcomes available from the relationship are comparatively
better than the outcomes available from alternative relationship. Firms dealing with the
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

9

best trader are more dependent because the outcomes associated from dealing with that
trader are better than those available from alternative traders. In this context, dependence
is a measure of the overall quality of the outcomes available to the focal firm from the
best alternative exchange relationship (Anderson and Narus, 1990). According to Heide
and John (1988), when the outcomes obtained from the relationship are important or
highly valued; when the outcomes from the relationship are better than the outcomes
available from alternative suppliers; and when fewer alternative sources of exchange are
available to the firm, dependence is said to increase. With greater dependence come
greater vulnerability, for the more powerful exchange partner may be in a position to
create more favorable terms of trade for itself (Heide and John, 1988). This may include
access to markets or capital, farmers are often more dependent upon their preferred
trading partner(s). When a channel member controls resources that another channel
needs, various power relations emerge that potentially enable the party controlling those
resources to exert some influence or power (Andaleeb, 1996).


Communication


Naude and Buttle (2000) argue that supply chain relationship quality
encompasses the key relational dimensions of trust, adaptation, communication and
cooperation. Communication is “the formal as well as informal sharing of meaningful
and timely information between firms” (Anderson and Narus, 1990:44). Frequent and
timely communication is important because it assists in resolving conflicts and aligning
perceptions and expectations (Morgan and Hunt, 1994). Communication is a process
whereby information is enclosed in a package and is channeled and imparted by a sender
to a receiver via some medium. The receiver then decodes the message and gives the
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

10

sender a feedback. All forms of communication require a sender, a message, and an
intended recipient; however the receiver need not be present or aware of the sender's
intent to communicate at the time of communication in order for the act of
communication to occur. Communication requires that all parties have an area of
communicative commonality.

Cooperation

Refers to situations in which firms work together to achieve mutual goals
(Anderson and Narus, 1990). Because of conflicting behaviors can co-exist temporarily
with cooperative actions, cooperation is not simply the absence of conflict (Frazier and
Rody, 1991). Cooperation in exchanging information on production schedules, new
products/processes and value analysis can both reduce product costs and improve
product/process innovations (Landeros and Monczka, 1989). A major impediment to
chain formation can be the lack of willingness of various actors to co-operate effectively
and their insufficient knowledge about methods of cooperation which insure “win-win”
outcomes (van Beek et al., 1998). Often, chain members bring “philosophical baggage”
with respect to the nature of markets and the interactions with them. This can be a
problem and slow the process of change management as the change from a traditional to
SCM approach
Janzen and de Vlieger (2000) stated that chain success will depend upon the
building of relationships with both internal colleagues and other firms. Similarly,
Bowman (1997) identified one factor in the development of successful supply chain
partnerships/alliances is the development of successful relationships between partners in
the supply chain.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

11

Researchers have adopted different frameworks in order to explain the nature of
relationships. These include transaction cost theory, political economy theory, social
exchange theory and resource dependence theory (Robicheaux and Coleman, 1994)
These theoretical frameworks have all contributed to the modeling of supply chain
relationships both in their identification of the underlying dimensions of relationships and
their selection of appropriate unit of analysis (such as firm, dyad, or network). Adaptation
occurs when buyers and suppliers invest in transaction-specific investments (Heide and
John, 1988). Forms of collaboration are not based on economic motivations; power and
trust are also concepts (Uzzi, 1997). Hanzen and Morrow (1999), suggest that firms enjoy
a high level of trust are able to focus on opportunity maximizing behavior. In such
relationships, governance mechanisms are not necessary and resources can be devoted to
pursue opportunity maximizing behavior beyond the originally intend exchange.
Commitment

According to Morgan and Hunt (1994) who defined commitment as "an
exchange partner believing that an ongoing relationship with another is so important as to
warrant maximum efforts at maintaining it; that is, the committed party believes the
relationship endures indefinitely and commitment is central to all of the relational
exchanges between the firm and its various partners.

Relational Satisfaction
Frazier (1983) defined satisfaction as a positive affective state resulting from an
appraisal of all aspects of a firm’s working relationship with another. Satisfaction is
derived from the result of a comparison between the preferred supplier’s performance and
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

12

the customer’s expectations (Fornell, 1992). Relationship satisfaction means the extent to
which the relational dimensions of the partnership meet expectations.

Definition of Terms
Market is the place where the farmers and the traders transact vegetables.
Marketing is a series of services involved in the moving of product from the point
of production to the point of consumption.
Chain actors are the middlemen or traders along the supply chain of vegetables.
Spot market is a wet market, a place where the product are being delivered and sold.










Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

13

Conceptual Framework

In this framework, the marketing intermediaries play an important role in the
distribution/flow of vegetables. The chain actor’s relationship were affected or influenced
by the following characteristics: satisfaction, trust, dependence, power, communication
and cooperation (Figure 1).


Relationship

Chain Actors
Chain
Profile

Relationships
Farmers
Similarities and

Satisfaction
differences
Assembler-

Trust
Wholesaler

Trust
Power

Trucker-
Wholesaler

Power
Dependence

Wholesaler

Communication

Dependence



Cooperation

Cooperation
Wholesaler-
Communication
Retailers


Commitment
Commitment
Retailers

Relati onal
Satisfaction
Figure 1. Conceptual framework




Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

14


METHODOLOGY

Locale and Time of the Study
The research locations follow the flow of potato from the major source
(production) to the major market assembly and collection, and the distribution markets.
However, the research coverage areas are limited to selected production and marketing
areas. The primary markets (assembly/collection) are concentrated in La Trinidad,
Benguet. Secondary markets (distribution) are the major vegetables trading centers in
Metro Manila such as, Balintawak, Q-mart, Novaliches, Kamuning, Libertad, Dapitan
and Urdaneta. While the tertiary markets include the retailers within these trading centers
and other retail market outlets. The study was conducted on November 2010 to January,
2011.

Respondents of the Study
There were 193 respondents intermediaries involve in marketing different selected
vegetables. The production group is composed of Cordillera farmers producing potato.
The next groups of respondents are the primary buyers representing the assembly
collection group. This consists of assembler-wholesalers and the financier-assembler-
wholesalers. Most of them are operating in the La Trinidad Vegetable Trading Post, and
in the privately owned and managed trading facility. The third group is the distributors
consist of the trucker-wholesalers, wholesalers and wholesaler-retailers. The trucker-
wholesaler respondents are those responsible in the transportation and distribution of
vegetables to various geographic market outlets.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

15


The wholesalers and wholesaler-retailers, on the other hand, are traders on the spot
market to whom the trucker-wholesalers supply the vegetables. The last group is the
retailers representing the last link in the marketing process. The retailers sell the potato to
ultimate users or consumers. Respondents will be selected through purposive sampling.

Data Collection
The data gathered through personal interview with the different chain actors, market
observation and pre-testing.

Data Gathered


The data gathered were the similarities and differences of relationships among the
chain actors in the spot market in terms of satisfaction, trust, power, dependence,
communication and cooperation.

Data Analysis

The data gathered were tabulated in the excel and analyzed using Statistical Package
for the Social Sciences (SPSS) version 16. For descriptive analysis, frequency counts and
percentage used while the statistical tests, Kruskal-Wallis was used.








Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

16
RESULTS AND DISCUSSION
Demographic Profile of the Respondents
Table 1 presents the demographic profile of respondents. This includes the
different classification of respondents. The respondents were characterized based on their
age, gender, marital status, religious affiliation and educational background.
Age. It shows that most of the respondents were engaged in business at the age of
21-30 and work at the production or procurement of potato (39%) assemblers, distributor
and retailers ranging from 31-40 years of age. Some also work as financier-assembler-
wholesaler (39%), trucker-wholesalers (42%) and wholesalers and retailers (38%) at the
age of 31-40.
Gender. Majority of male work at the production and procurement of potato have
(91%), while the female respondents mostly work as retailers (83%). Moreover
wholesaler-retailers (67% )and wholesalers have (60%).
Marital status. Most of the respondents were married, but some were single like
wholesaler-retailers (43%). And two percent for the separated and widow. It shows that
regardless of marital status can engaged into vegetable trading business.
Religion. Mostly of the respondents were Roman Catholic, and the others belong
to Protestant and other religious denomination.
Educational background. Majority of the respondents graduated secondary level,
most of them work as farmer have (42%) and some of them who finished elementary
were engaged in business as farmers (28%.) Few of them took vocational and only one
respondent for wholesalers.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

17
Table 1. Demographic profile

PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING

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

Age














20 and below
4
9
2
11
0
0
0
0
3
30
3
8
2
4
21-30
17
39
6
32
4
22
5
42
4
40
13
35
10
19
31-40
9
21
6
32
7
39
4
33
1
10
14
38
10
189
41-50
9
21
4
21
4
22
2
17
1
10
3
8
21
39
51-60
3
7
1
5
3
17
1
8
1
10
3
8
9
17
60 and above
1
2
0
0
0
0
0
0
0
0
1
3
2
4
TOTAL
43
100
19 100 18 100 12 100 10 100
37
100 54
100
Gender














Male
39
91
13
68
5
28
8
67
4
40
12
32
9
17
Female
4
9
6
32
13
72
4
33
6
60
25
68
45
83
TOTAL
43
100
19 100 18 100 12 100 10 100
37
100 54
100
Marital Status
Single
14
33
2
11
1
6
5
42
6
60
16
43
10
19
Married
29
67
17
89
16
89
7
58
4
40
20
54
42
78
Separated
0
0
0
0
1
6
0
0
0
0
0
0
1
2
Widower
0
0
0
0
0
0
0
0
0
0
1
3
1
2
TOTAL
43
100
19 100 18 100 12 100 10 100
37
100 54
100
Religion
Catholic
32
74
14
74
12
67
12 100
9
90
27
73
47
87

Protestant
6
14
3
16
4
22
0
0
1
10
7
19
6
11
Others
5
12
2
11
2
11
0
0
0
0
3
8
1
2
TOTAL
43
100
19 100 18 100 12 100 10 100
37
100
54 100
Educational background
Elementary
12
28
1
5
2
11
2
17
1
10
4
11
10
19
High School
18
42
9
47
8
44
4
33
3
30
17
46
31
57
College
13
30
9
47
8
44
6
50
5
50
14
38
11
20
Vocational
0
0
0
0
0
0
0
0
1
10
2
5
2
4
TOTAL
43
100
19 100 18
0
12 100 10 100
37
100
54 100
Legend: F-farmer
A-W-assembler-wholesaler
F-A-W-financier-assembler-wholesaler
T-W-trucker-wholesaler
W-wholesaler
W-R-wholesaler-retailer
R-retailer

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

18
Number of Years Engaged
in Vegetable Business

Table 2 shows here the number of years they engaged in production, assembly,
distribution and retailing. In here it implies that most of the farmers ranging from 1-5
years in production and procurement work longer have (37%). Moreover some also of the
respondents who work longer in retailing in 6-10 years engaged in business have (30%).
Organizational Affiliation
of Respondents

In Table 3 most of the farmers have no organizational affiliation, unlike some of
the retailer who join organization like cooperatives. But there were some from different
respondent groups were affiliated to other organizations.
Table 2. Number of years engaged in vegetable business
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING

NO. OF


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

Below 1
year
0
0
1
5
0
0
0
0
4
40
5
14
2
4

1-5 years
16
37
8
42
6
33
4
33
5
50
10
27 15
28

6-10 years
5
12
6
32
3
17
3
25
1
10
11
30
9
17

11-15 years
5
12
3
16
7
39
4
33
0
0
5
14
5
9

16-20 years
9
21
0
0
0
0
0
0
0
0
1
3
11
20

21-25 years
2
5
1
5
2
11
1
8
0
0
1
3
2
4

26-30 years
2
4.65
0
0
0
0
0
0
0
0
1
3
9
17

31 and
above
4
9
0
0
0
0
0
0
0
0
3
8
1
2

TOTAL
43
100
19 100 18 100 12 100 10 100 37 100 54 100



Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

19
Table 3. Organizational affiliation of respondents
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING

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


Farmer's
Organization
0
0
0
0
0
0
0
0
2
20
0
0
0
0

Cooperative
1
2
2
11
4
22
3
25
0
0
6
16
2
4

Others
3
7
3
16
3
17
4
33
0
0
3
8
5
9

None
39
91
14 74 11 61
5
42
8
80 28 76 47
87

TOTAL
43
100 19 100 18 100 12 100 10 100 37 100 54 100

Spot market chain
and location for potato
Figure 2 presents the different chain actors involving with the procurement and
selling of potato in the spot market. It shows here the flow of potato from the source or
from the production to its point of consumption.
It shows in the figure that the farmers from La Trinidad Vegetable Trading Post
sell their produce of potato to the assembler-wholesalers and financier-assembler-
wholesalers in La Trinidad Vegetable Trading Post. Moreover, farmers from La Trinidad
Vegetable Trading Post dispose also their produce of potato to the assembler-wholesalers
and financier-assembler-wholesalers to Urdaneta Pangasinan, also to the assembler-
wholesalers and financier-assembler-wholesalers in Balintawak. The farmers of the
private trading center sell their product to assembler-wholesalers of private trading center
and it goes to the trucker-wholesalers in La Trinidad Vegetable Trading Post.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

20

F
F
PTC
LTVTP



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



LTVTP
LTVTP
BALINTAWAK
BALINTAWAK
A-W



F-A-W-R



PTC

LTVTP







T-W


T-W
BALINTAWAK
LTVTP


A-W

W
W
URDANETA, PANG.
BALINTAWAK
BALINTAWAK




F-A-W
W-R

W-R
URDANETA, PANG.
LTVTP
W
METRO MANILA


METRO MANILA



W-R
R
URDANETA, PANG.

LTVTP
R


METRO MANILA
W-R


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

LTVTP
CONSUMERS

METRO MANILA
LEGEND:


F (Farmer) A-W (Assembler-Wholesaler) F-A-W (Financier- Assembler-Wholesaler)
F-A-W-R (Financier-Assembler-Wholesaler-Retailer) T-W (Trucker-Wholesaler)
W (Wholesaler W-R (Wholesaler-Retailer) R (Retailer)
LTVTP (La Trinidad Vegetable Trading Post) Metro Manila


PTC (Private Trading Center)

Balintawak


Urdaneta, Pangasinan


Figure 2. Spot market chain and location for cabbage
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

21
The assembler-wholesalers from LTVP dispose their potato to the trucker-
wholesalers, wholesaler-retailers and retailers in the same place. Assembler-wholesalers
from Balintawak sell their potato to the trucker-wholesalers in the same place.
From the trucker-wholesalers in Balintawak, the product goes to the wholesaler-
retailers and wholesalers to Metro Manila, from the wholesalers in the same place it goes to
retailers just the same. The wholesaler-retailers from Metro Manila sell also their produce
to the retailers and to the other consumers in Metro Manila. Assembler-wholesalers from
Urdaneta Pangasinan dispose their potato to financier-assembler-wholesalers and
wholesaler-retailers and to the other consumers of potato in Urdaneta Pangasinan.

Distribution of Respondents
According to Trust
The capability to establish trust between the partners in a collaborative supply chain
becomes a crucial competitive parameter for any potential exchange, trust will be critical if
two situational factors are present–risk and incomplete buyer information (Hawes et al.,
1989).
Table 4a showed that majority of the assembler-wholesalers (47%) moderately
agree to rely on the buyer’s promises in terms of orders, payments and pricing. Forty-two
percent of the farmers were undecided while trucker-wholesalers (25%) strongly agree.
Majority of the chain actors strongly agree as to honest in dealing with the buyers. Many
from the assembler-wholesalers (58%) moderately agree to make important decisions based
on buyer’s suggestions while (31%) retailers strongly agree. Majority of the assembler-
wholesalers (53%) are indecisive to believe on the information shared by the buyers. And
most of the wholesalers were undecided if their buyer is fair in negotiation with them.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

22
22
Table 4a. Distribution of respondents according to trust
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %
A.FARMER











1. I have much confidence to rely on the
buyer’s promises (orders, payments,
pricing).
2 5 8 19 18 42 8 19 7 16
3
2. I am always honest dealing with the buyers
of potato.
1 2 4 9
7 16 15 35 16 37
4
3. I should not hesitate to make important
decisions based on buyer’s suggestions.
1 2 7 16 13 30 15 35 7 16
3
4. I always believe on the information shared
by the buyer.
0 0 7 16 22 51 9 21 5 12
3
5. The buyer is fair in negotiating with me.
0 0 5 12 20 47 14 33 4
9
3
6. The buyer I deal with has a good reputation. 0 0 4 9 15 35 16 37 8 19
4
7. The buyer and I always consider the best
interest in our business.
0 0 2 5 13 30 19 44 9 21
4
B. ASSEMBLER-WHOLESALER
1. I have much confidence to rely on the
buyer’s promises (orders, payments,
pricing).
0 0 1 5
7 37 9 47 2 11
4
2. I am always honest dealing with the buyers
of potato.
1 5 0 0
2 11 4 21 12 63
4
3. I should not hesitate to make important
decisions based on buyer’s suggestions.
0 0 0 0
5 26 11 58 3 16
4
4. I always believe on the information shared
by the buyer.
0 0 2 11 10 53 5 26 2 11
3
5. The buyer is fair in negotiating with me.
0 0 1 5
8 42 6 32 4 21
4
6. The buyer I deal with has a good reputation. 0 0 0 0
4 21 10 53 5 26
4
7. The buyer and I always consider the best
interest in our business.
0 0 0 0
5 26 7 37 7 37
4
Numerical value and descriptive equivalent:
1-Strongly Disagree 2- Moderately Disagree
3-Undecided 4-Moderately Agree
5-Strongly Agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

23
Table 4a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N % N %
N
%
N
%
N
%
C.FINANCIER-ASSEMBLER-WHOLESALER
1. I have much confidence to rely on the
buyer’s promises (orders, payments,
pricing).
1 6 4 22 5 28 5 28 3 17
3
2. I am always honest dealing with the buyers
of potato.
0 0 3 17 0
0
5 28 10 56
4
3. I should not hesitate to make important
decisions based on buyer’s suggestions.
0 0 4 22 4 22 6 33 4 22
4
4. I always believe on the information shared
by the buyer.
0 0 4 22 8 44 5 28 1
6
3
5. The buyer is fair in negotiating with me.
1 6 2 11 7 39 6 33 2 11
3
6. The buyer I deal with has a good reputation. 0 0 3 17 8 44 5 28 2 11
3
7. The buyer and I always consider the best
interest in our business.
0 0 2 11 2 11 10 56 4 22
4
D.TRUCKER-WHOLESALER

1. I have much confidence to rely on the
buyer’s promises (orders, payments,
pricing).

1 8 2 17 3 25 3 25 3 25
3
2. I am always honest dealing with the buyers
of potato.
0 0 0 0
0
0
5 42 7 58
5
3. I should not hesitate to make important
decisions based on buyer’s suggestions.
1 8 1 8
5 42 2 17 3 25
3
4. I always believe on the information shared
by the buyer.
1 8 2 17 3 25 2 17 4 33
4

5. The buyer is fair in negotiating with me.
0 0 1 8
4 33 3 25 4 33
4

6. The buyer I deal with has a good reputation. 1 8 1 8
4 33 3 25 3 25
4

7. The buyer and I always consider the best
interest in our business.
0 0 1 8
2 17 2 17 7 58
4
E. WHOLESALER
1. I have much confidence to rely on the
buyer’s promises (orders, payments,
pricing).
2 20 2 20 3 30 2 20 1 10 3

2. I am always honest dealing with the buyers
of potato.
0 0 0 0
3 30 2 20 5 50 4
3. I should not hesitate to make important
decisions based on buyer’s suggestions.
2 20 0 0
3 30 1 10 4 40 4

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

24
Table 4a. Continued. . .
1
2
3
4
5
AVE.
STATEMENT
N % N % N % N % N %
F.WHOLESALER-RETAILER



1. I have much confidence to rely on the
buyer’s promises (orders, payments,
pricing).
1 3 4 11 12 32 11 30 9 24
4
2. I am always honest dealing with the buyers
of potato.
1 3 0 0
4 11 11 30 21 6
4
3. I should not hesitate to make important
decisions based on buyer’s suggestions.
2 5 3 8 14 38 10 27 8 22
4
4. I always believe on the information shared
by the buyer.
3 8 7 19 15 41 8 22 4 11
3

5. The buyer is fair in negotiating with me.
0 0 4 11 13 35 13 35 7 19
4

6. The buyer I deal with has a good reputation. 1 3 1 3 13 35 16 43 6 16
4

7. The buyer and I always consider the best
interest in our business.
0 0 2 5
5 14 19 51 11 30
4
G. RETAILER

1. I have much confidence to rely on the
buyer’s promises (orders, payments,
pricing).
1 2 11 20 11 20 22 41 9 17
4
2. I am always honest dealing with the buyers
of potato.
0 0
2
4
4
7 11 20 37 69
5
3. I should not hesitate to make important
decisions based on buyer’s suggestions.
1 2
8 15 15 28 13 24 17 31
4
4. I always believe on the information shared
by the buyer.
6 11 11 20 14 26 16 30 7 13
3

5. The buyer is fair in negotiating with me.
0 0
5
9 22 41 14 26 13 24
4

6. The buyer I deal with has a good reputation. 6 11 4
7 21 39 10 19 13 24
3

7. The buyer and I always consider the best
interest in our business.
5 9
2
4 12 22 22 41 13 24
4



Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

25
Majority of the farmers (37%), assembler- wholesalers (53%) and wholesaler-
retailers (43%) moderately agree that the buyer they deal with good reputation while
financier-assembler-wholesalers (44%), trucker-wholesalers (33%) were indecisive.
Moreover, the trucker-wholesalers (58%) strongly agree as to considering the best
interest in their business while financier-assembler-wholesalers (56%) moderately agree.
Based from Table 4b, the chain actors were undecided to have much confidence
to rely on the buyer’s promises in terms of orders, payments and pricing because they
have trust towards their buyers. However, some were undecided that they should not
hesitate to make important decisions based on buyer’s suggestions. Including that actors
always believe on the information shared by the buyers.
The test statistics showed significant difference among chain actors with regards
to honesty in dealing with the buyers. The result implied that the respondents may or may
not be honest thus opportunistic advantage could still be observed.
Table 4b. Descriptive and test statistics

DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF ASYMP. SIG.
1. I have much confidence to rely on the buyer’s promises
3.44
2.472
3 0.480
(orders, payments, pricing).
2. I am always honest dealing with the buyers of potato
4.25
8.534
3
0.036*
3. I should not hesitate to make important decisions based
3.55
1.873
3 0.599
on buyer’s suggestions.
4. I always believe on the information shared by the buyer.
3.25
.075
3 0.995
5. The buyer is fair in negotiating with me.
3.55
1.828
3 0.609
6. The buyer I deal with has a good reputation
3.60
1.899
3 0.594
7. The buyer and I always consider the best interest in our
3.86
6.584
3 0.086
business.
*Significant mean range: 3.25-3.75-undecided 3.76-4.26-moderately agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

27
26
Distribution of Respondents
According to Power

The ability to influence relationship partner and dependence or asymmetrical
investment in relationship-assets can lead to the exercise of coercive power (Matanda and
Schroder, 2004).
Table 5a indicates that most actors from the retailers (20%) strongly disagree that
the stakeholders were flexible to choose buyers at any time. And there were only few
among the assembler-wholesalers moderately disagree and undecided. Majority of the
farmers were undecided whether the respondents always adhere to the buyers demand
and more than (50%) from the retailers moderately agree. Many among the farmer-
assembler-wholesalers were moderately agree on it. Only (30%) wholesalers strongly
agree that the respondents have all the power in trading negotiation with the buyers but
the actors also able to control it. Majority of the farmers (58%) were indecisive that the
buyers have the best offer interest of pricing. And some of the respondents were also
undecided of it. Moreover, there were (50%) among the wholesalers who moderately
disagree whether the buyer often controls the market information in terms of demand and
price. While there were only (17%) from the trucker-wholesalers who moderately agree.
Many of the wholesalers who were undecided that the buyer often acts opportunistically.
Based from the mean statistics (Table 5b) the chain actors were undecided that
the respondents were flexible to choose buyers at any time. The actors were moderately
agree in adhering the buyers demand and some of them were undecided whether the
respondents have all the power in the trading negotiation. Moreover, the actors were
undecided whether the buyer has the best offer in price. Including that the buyer often
controls the market information in terms of demand and price.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

27
In the statement three, there is highly significant difference between the chain
actors in their understanding that they have all the power in trading negotiation.
Moreover, the respondents differ very significantly as to the buyer often control
market information. Therefore the results implied that actors would really like to control
such information about marketing.

Table 5a. Distribution of respondents according to power

STATEMENT
1
2
3
4
5
AVE.
N % N % N % N
%
N
%
A.FARMER












1. I am flexible to choose buyers at any time.
8 19 12 28 8 19 9
21
6
14
3
2. I always adhere to the buyer’s demand.
0 0
8 19 21 49 12 28
2
5
3
3.I have all the power in the trading negotiation.
8 19 17 40 14 33 3
7
1
2
2
4. Buyer has the best offer (price) relative to
alternatives (other buyers).
1 2
6 14 25 58 9
21
2
5
3
5. Buyer often controls the market information
(demand, price).
0 0
7 16 15 35 13 30
8
19
4
6. Buyer often acts opportunistically.
3 7
6 14 16 37 14 33
4
9
3
B ASSEMBLER-WHOLESALER.
1. I am flexible to choose buyers at any time.
4 21 5 26 5 26
5
26
0
0
3

2. I always adhere to the buyer’s demand.
0 0
2 11 8 42
6
32
3
16
4

3. I have all the power in the trading negotiation.
1 5
4 21 9 47
5
26
0
0
3

4. Buyer has the best offer (price) relative to
alternatives (other buyers).
1 5
5 26 5 26
7
37
1
5
3

5. Buyer often controls the market information
(demand, price).
5 26 4 21 3 16
3
16
4
21
3
6. Buyer often acts opportunistically.
1 5
4 21 6 32
6
32
2
11
3
Numerical value and descriptive equivalent:
1-Strongly Disagree 2- Moderately Disagree
3-Undecided 4-Moderately Agree
5-Strongly Agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

28
Table 5a Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N
%
N
%
C.FINANCIER-ASSEMBLER-WHOLESALER

1. I am flexible to choose buyers at any time.
1 6 2 11 6 33 4 22 5 28
4

2. I always adhere to the buyer’s demand.
0 0 1 6 6 33 6 33 5 28
4

3. I have all the power in the trading
negotiation.
0 0 2 11 2 11 10 56 4 22
4

4. Buyer has the best offer (price) relative to
alternatives (other buyers).
1 6 3 17 4 22 6 33 4 22
4

5. Buyer often controls the market information
(demand, price).
0 0 3 17 9 50 4 22 2 11
3
6. Buyer often acts opportunistically.
0 0 2 11 7 39 3 17 0
0
2
D.TRUCKER-WHOLESALER
1. I am flexible to choose buyers at any time.
4 33 4 33 1 8
2 17 1
8
2
2. I always adhere to the buyer’s demand.
1 8 1 8 3 25 2 17 5 42
4
3. I have all the power in the trading
negotiation.
0 0 1 8 5 42 3 25 3 25
4
4. Buyer has the best offer (price) relative to
alternatives (other buyers).
2 17 2 17 6 50 1
8
1
8
3

5. Buyer often controls the market information
(demand, price).
2 17 3 25 2 17 2 17 3 25
3
6. Buyer often acts opportunistically.
0 0 3 25 3 25 4 33 2 17
3
E.WHOLESALER

1. I am flexible to choose buyers at any time.
3 30 3 30 1 10 1
10 2 20
3

2. I always adhere to the buyer’s demand.
0
0 0 0
4 40 2
20 4 40
4
3. I have all the power in the trading
negotiation.
1 10 2 20 3 30 1
10 3 30
3
4. Buyer has the best offer (price) relative to
alternatives (other buyers).
2 20 3 30 3 30 0
0
2 20
3

5. Buyer often controls the market information
(demand, price).
1 10 5 50 3 30 1
10 0
0
2
6. Buyer often acts opportunistically.
0
0 2 20 6 60 2
20 0
0
3
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

29
Table 5a. Continued. . .
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %
F.WHOLESALER-RETAILER
1. I am flexible to choose buyers at any time.
11 30 4 11 6 16 8
22 8 22
3
2. I always adhere to the buyer’s demand.
4 11 3 8 10 27 14 38 6 16
3

3. I have all the power in the trading
negotiation.
0
0 5 14 13 35 12 32 7 19
4
4. Buyer has the best offer (price) relative to
alternatives (other buyers).
3
8 6 16 19 51 9
24 0
0
3

5. Buyer often controls the market information
(demand, price).
9 24 9 24 11 30 7 189 1
3
3
6. Buyer often acts opportunistically.
2
5 9 24 8 22 15 41 3
8
3
G.RETAILER

1. I am flexible to choose buyers at any time 22 41 9 17 5
9
7 13 11 20
3

2. I always adhere to the buyer’s demand.
2
4 10 19 11 20 18 33 13 24
4

3. I have all the power in the trading
negotiation.
4
7 13 24 19 35 10 19 8 15
3

4. Buyer has the best offer (price) relative to
alternatives (other buyers).
9 17 8 15 20 37 13 24 4
7
3

5. Buyer often controls the market
information (demand, price).
17 31 10 19 15 28 8 15 4
7
2

6. Buyer often acts opportunistically.
4
7
9 17 16 30 21 39 4
7
3

Table 5b. Descriptive and test statistics
DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF ASYMP. SIG.
1. I am flexible to choose buyers at any time.
2.81
1.386
3
0.709
2. I always adhere to the buyer’s demand.
3.49
7.583
3
0.055
3. I have all the power in the trading negotiation.
3.13
30.997
3 0.000**

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

30
Table 5b. Continued . . .
DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF ASYMP. SIG.
27
4. Buyer has the best offer (price) relative to alternatives (other
3.01
3.526
3 0.317
buyers).
5. Buyer often controls the market information (demand, price).
2.87
18.801
3 0.000**
6. Buyer often acts opportunistically.
3.28
.719
3 0.869
**Highly significant mean range: 2.81-3.15-undecided 3.16-3.50-moderately agree

Distribution of Respondents
According to Dependence
Dependence is a measure of the overall quality of the outcomes available to the
focal firm from the best alternative exchange relationship (Anderson and Narus, 1990).
According to Heide and John (1988), when the outcomes obtained from the relationship
are important or highly valued; when the outcomes from the relationship are better than
the outcomes available from alternative suppliers; and when fewer alternative sources of
exchange are available to the firm, dependence is said to increase.
Table 6a, from the statement one in Table 6a, majority of the assembler-
wholesalers moderately agree that the actors depend on the quality classification, quantity
and payment term of potato by the buyer. Only few among the wholesaler-retailers were
indecisive. Majority of the assembler-wholesalers (42%) were moderately agree whether
the stakeholders depend much from the regular buyers of the potato sold. And more
(50%) from the financier-assembler-wholesalers strongly agree that the chain depend
much from the regular buyers of the potato sold. That’s why they give or produce what
their buyers needed, for them not to find other sellers. In order to have more regular
buyers.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

31
Table 6a. Distribution of respondents according to dependence
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N
% N %
A. FARMER













1. I (seller) depend on the quality
classification, quantity and payment term
of potato by the buyer.
4
9
5 12 13 30 17 340 4
9
3
2. I depend much from the regular buyers of
the potato I sold.
2
5 10 23 15 35 10 23
6 14
3
3. I depend on the price dictated by the
buyer.
2
5
7 16 12 28 12 28 10 23
3
4. I always adhere to the seller’s demand.
5 12 10 23 16 37 7
16
5 12
3
5. I depend much from the market
information provided by the buyers.
1
2 11 26 20 47 5
12
6 14
3
B. ASSEMBLER-WHOLESALER

1. I (seller) depend on the quality
classification, quantity and payment term
of potato by the buyer.
1
5
2 11 6 32 8
42
2 11
3

2. I depend much from the regular buyers of
the potato I sold.
0
0
1
5
8 42 8
42
2 11
4

3. I depend on the price dictated by the
buyer.
2 11 6 32 7 37 2
11
2 11
3

4. I always adhere to the seller’s demand.
1
5
3 16 8 42 6
32
1
5
3

5. I depend much from the market
information provided by the buyers.
1
5
6 32 5 26 5
26
2 11
3
C. FINANCIER-ASSEMBLER-WHOLESALER
1. I (seller) depend on the quality
classification, quantity and payment term
of potato by the buyer.
0
0
2 11 7 39 3
17
6 33
4
2. I depend much from the regular buyers of
the potato I sold.
0
0
5 28 3 17 5
28
5 28
4
3. I depend on the price dictated by the
buyer.
0
0
4 22 7 39 5
28
2 11
3
4. I always adhere to the seller’s demand.
2 11 6 33 6 33 4
22
0
0
3

5. I depend much from the market
information provided by the buyers.
0
0
4 22 7 39 6
33
1
6
3
Numerical value and descriptive equivalent:
1-Strongly Disagree 2- Moderately Disagree
3-Undecided 4-Moderately Agree
5-Strongly Agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

32
Table 6a Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N
%
N %


D. TRUCKER-WHOLESALER
1. I (seller) depend on the quality
classification, quantity and payment term
of potato by the buyer.
0
0
3 25 1
8
3
25
5 42
4
2. I depend much from the regular buyers of
the potato I sold.
2 17 1
8
2 17
3
25
4 33
4
3. I depend on the price dictated by the
buyer.
3 25 1
8
5 42
1
8
2 17
3
4. I always adhere to the seller’s demand.
0
0
3 25 1
8
5
42
3 25
4
5. I depend much from the market
information provided by the buyers.
4 33 2 17 2 17
3
25
1
8
3
E. WHOLESALER
1. I (seller) depend on the quality
classification, quantity and payment term
of potato by the buyer.
0
0
0
0
4 40
4
40
2
20
4
2. I depend much from the regular buyers of
the potato I sold.
1 10 0
0
4 40
2
20
3
30
4
3. I depend on the price dictated by the
buyer.
0
0
6 60 1 10
0
0
3
30
3
4. I always adhere to the seller’s demand.
1 10 1 10 4 40
0
0
4
40
4
5. I depend much from the market
information provided by the buyers.
1 10 3 30 2 20
2
20
2
20
3
F.WHOLESALER-RETAILER
1. I (seller) depend on the quality
classification, quantity and payment term
of potato by the buyer.
2
5
4 11 11 30
8
22
6
16
3
2. I depend much from the regular buyers of
the potato I sold.
3
8
5 14 12 32 10 27
7
19
3
3. I depend on the price dictated by the
buyer.
5 14 16 43 7 19
6
16
3
8
3
4. I always adhere to the seller’s demand.
1
3
5 14 14 38 13 35
4
11
3

5. I depend much from the market
information provided by the buyers.
5 14 11 30 14 38
3
8
4
11
3



Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

33
Table 6a Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N
%
N %


G. RETAILER
1. I (seller) depend on the quality
classification, quantity and payment term
of potato by the buyer.
4
7 11 20 9 17 13 24 17 31
4
2. I depend much from the regular buyers of
the potato I sold.
2
4 12 22 11 20 16 30 13 24
3
3. I depend on the price dictated by the
buyer.
11 20 17 31 14 26
7
13
5
9
3
4. I always adhere to the seller’s demand.
6 11 16 30 14 26
9
17
9
17
3
5. I depend much from the market
information provided by the buyers.
15 28 17 31 10 19
8
15
4
7
2

Most of the wholesalers moderately agree to depend on the price dictated by the
buyers. From the statement five, many of the farmers undecided that the respondents
depend much from the market information provided by the buyers, and only (30%)
among the wholesalers were moderately disagree.
Based from the mean statistics (Table 6b) most of them were undecided whether
the actors depend on the price dictated by the buyer and depend much from the market
information provided by the buyers, because some information either they knew it
already or the person who informed it not that much trusted. The stakeholders were
moderately agree that the actors depend on the quality classification, quantity and
payment term of potato by the buyers. Moreover, the respondents also were moderately
agree that most of them adhere to the sellers demand.


Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

34
From the test statistics, we can see in statement three, that there is highly
significant difference among the respondents, it implies that they are trying to influence
the others that the actors depend on the price dictated by the buyer.
In statement five, there is highly significant between the actors to depend much
from the market information provided by the buyers. It proves that the stakeholders
specifically farmers depend on price dictated by the buyer, the actors have more freedom,
they can dictate price but they also control it. However, these statements have significant
difference from other actors or have different understanding on it.
Table 6b. Descriptive and test statistics
DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF
ASYMP. SIG.
1. I (seller) depend on the quality classification, quantity
3.48
1.904
3 0.593
and payment term of potato by the buyer.
2. I depend much from the regular buyers of the potato
3.38
2.756
3 0.593
I sold.
3. I depend on the price dictated by the buyer.
2.87
15.042
3
0.002**
4. I always adhere to the seller’s demand.
3.15
5.928
3 0.115
5. I depend much from the market information provided by
2.80
7.958
3
0.047*
the buyers.
*Significant mean range: 2.80-3.14-undecided 3.15-3.49-moderately agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

27
35
Distribution of Respondents
According to Communication

Communication is a process whereby information is enclosed in a package and is
channeled and imparted by a sender to a receiver via some medium. The receiver then
decodes the message and gives the sender a feedback. All forms of communication
require a sender, a message, and an intended recipient; however the receiver need not be
present or aware of the sender's intent to communicate at the time of communication in
order for the act of communication to occur. Communication requires that all parties have
an area of communicative commonality. Frequent and timely communication is important
because it assists in resolving conflicts and aligning perceptions and expectations
(Morgan and Hunt, 1994).
Table 7a, showed that most of the financier-assembler-wholesalers were
undecided that the actors can directly dictate the price while there were only (32%)
among the wholesaler-retailers strongly agree with it. In statement two, majority of the
respondents from trucker-wholesalers were undecided that the stakeholders usually share
production and marketing in terms of volume, quality and price information to buyers.
And there were only fifty percent from the respondents of retailers who moderately agree.
Most of the assembler-wholesalers (47%) were indecisive whether the buyer and
the actor use other people in sharing information to farmers or sellers. (50%) from the
wholesaler-retailers were also undecided. And majority of the respondents of assembler-
wholesalers moderately agree that the chain actors always share information about the
production or procurement targets to the buyer in able for their buyers to know if they can
produce the amount volume of potato they needed. While there were only (25%)
respondents from trucker-wholesalers were undecided of it.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

36
Majority of them also indecisive whether the stakeholders share the production or
marketing decisions the actors made with the buyer, but only (17%) of the financier-
assembler-wholesalers moderately disagree.
The respondents were undecided whether the actors used other people in sharing
other information to farmers. And most of them share the production or marketing
decisions the actor made with the buyer. In dictating directly the price, the stakeholders
were moderately agree of it. Moreover, the respondents also were moderately agree that
most of them share production and marketing in terms of volume, quality and price
information to buyers.

Table 7a. Distribution of respondents according to communication
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %
A.FARMER













1. I can directly dictate price.
17 40 15 35 8 19 3
7
0
0
2
2. I usually share production and marketing
(volume. quality, price) information to
buyers.
4
9
9 21 15 35 10 23 5 12
3
3. As buyer, I use other people in sharing
other information to farmers/sellers.
9 21 9 21 10 23 10 23 5 12
3
4. I always share information about
production/procurement/marketing
targets to the buyer.
4
9 10 23 16 37 7 16 6 14
3
5. I share the production or marketing
decisions I made with the buyer.
7 16 8 19 15 35 8 19 5 12
3
Numerical value and descriptive equivalent:
1-Strongly Disagree 2- Moderately Disagree
3-Undecided 4-Moderately Agree
5-Strongly Agree



Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

37
Table 7a.Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %

B. ASSEMBLER-WHOLESALER











1. I can directly dictate price.
0
0
3 16 8 42 5 26 3 16
3
2. I usually share production
and marketing (volume.
quality, price) information to
buyers.
0
0
3 16 9 47 5 26 2 11
3
3. As buyer, I use other people in sharing
other information to farmers/sellers.
1
5
2 11 9 47 5 26 2 11
3
4. I always share information about
production, procurement/marketing
targets to the buyer.
2 11 2 11 5 26 8 42 2 11
3
5. I share the production or marketing
decisions I made with the buyer.
2 11 3 16 7 37 5 26 2 11
3
C.FINANCIER-ASSEMBLER-WHOLESALER
1. I can directly dictate price.
1 6 1
6
9 50 4 22 3 17
3
2. I usually share production and marketing
(volume. quality, price) information to
buyers.
0 0 3 17 4 22 8 44 3 17
4
3. As buyer, I use other people in sharing
other information to farmer/sellers.
1 6 4 22 5 28 5 28 3 17
3
4. I always share information about
production, procurement/marketing
targets to the buyer.
0 0 1
6
9 50 5 28 3 17
4
5. I share the production or marketing
decisions I made with the buyer.

0 0 3 17 9 50 3 17 3 17
3
D.TRUCKER-WHOLESALER

1. I can directly dictate price.
1
8
1
8
4 33 4
33 2 17
3

2. I usually share production and marketing
(volume. quality, price) information to
buyers.
1
8
0
0
6 50 2
17 3 25
4
3. As buyer, I use other people in sharing
other information to farmer/sellers.
2 17 1
8
3 25 3
25 3 25
3

4. I always share information about
production, procurement/marketing
targets to the buyer.
1
8
0
0
3 25 5
42 3 25
4
5. I share the production or marketing
decisions I made with the buyer.
1
8
0
0
5 42 4
33 2 17
4


Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

38
Table 7a.Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %

E.WHOLESALER

1. I can directly dictate price.
2 20 3 30 2 20 0
0
3 30
3

2. I usually share production and marketing
(volume. quality, price) information to
buyers.
1 10 3 30 2 20 0
0
4 40
3

3. As buyer, I use other people in sharing
other information to farmer/sellers.
1 10 3 30 2 20 1 10 3 30
3

4. I always share information about
production, procurement/marketing
targets to the buyer.
1 10 1 10 3 30 1 10 4 40
4
5. I share the production or marketing
decisions I made with the buyer.
1 10 2 20 2 20 2 20 3 30
3

F.WHOLESALER-RETAILER
1. I can directly dictate price.
0
0
5 14 8 22 12 32 12 32
4

2. I usually share production and marketing
(volume. quality, price) information to
buyers.
1
3
6 16 10 27 11 30 9 24
4
3. As buyer, I use other people in sharing
other information to farmer/sellers.
8 22 3
8 10 27 9 24 7 19
3
4. I always share information about
production, procurement/marketing
targets to the buyer.
1
3
3
8 15 41 8 22 10 27
4

5. I share the production or marketing
decisions I made with the buyer.
6 16 3
8 10 27 10 27 8 22
3
G.RETAILER


1. I can directly dictate price.
2
4
5
9 16 30 18 33 13 24
4
2. I usually share production and marketing
(volume. quality, price) information to
buyers.
11 20 10 19 7 13 14 26 12 22
3
3. As buyer, I use other people in sharing
other information to farmer/sellers.
19 35 9 17 10 19 11 20 5
9
3
4. I always share information about
production, procurement/marketing
targets to the buyer.
14 26 8 15 12 22 15 28 5
9
3

5. I share the production or marketing
decisions I made with the buyer.
19 35 7 13 7 13 15 28 6 11
3

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

39
Table 7b showed that the chain actors usually share production and marketing in
terms of volume, quality and price information to buyers. There is highly significant
difference among the respondents in influencing the other actors, in directly dictating the
price. From the statement four, the actors differ from their perception that the respondents
always share information about the production and procurement/marketing. It further
justify that the actors can directly dictate price in their business transactions between
other actors and buyers. Furthermore, proves that there is highly significant among the
actors.
Table 7b. Descriptive and test statistics
DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF ASYMP. SIG.
1. I can directly dictate price.
3.20
52.147
3
0.000**
2. I usually share production and marketing (volume. quality,
3.27
3.468
3
0.325
price) information to buyers.
3. As buyer, I use other people in sharing other information to 2.95
7.327
3
0.062
farmers/sellers.
4. I always share information about production,
3.26
12.218
3
0.007**
procurement/marketing targets to the buyer.
5. I share the production or marketing decisions I made with
3.03
6.672
3
0.083
the buyer.
**Highly Significant mean range: 2.95-3.11- undecided 3.12-3.28-moderately agree











Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

27
40
Distribution of Respondents
According to Cooperation
Cooperation in exchanging information on production schedules, new
products/processes and value analysis can both reduce product costs and improve
product/process innovations (Landeros and Monczka, 1989).
Table 8a presents that majority of the respondents from financier- assembler-
wholesalers and trucker- wholesalers were observe that strongly agree that the actors
work cooperatively with the buyer to improve their potato trading operation, while there
were only (33%) of the retailers were also agree with it. Most of the respondents among
the trucker-wholesalers strongly agree, whether the stakeholders usually buy good quality
of potato from suppliers as needed by the buyer’s.
From the farmers there were also (33%) strongly agree with it. In statement three,
majority of respondents from the trucker wholesalers strongly agree whether the chain
actor build up buyer- seller relationship (alliances/ partnership) with their colleagues.
And more than (50%) of it from wholesalers were moderately disagree. Most of the
assembler-wholesalers were moderately agree if the respondents cooperate with other
actors in pricing and quality determination of potato.
Table 8a. Distribution of respondents according to cooperation

STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %
A.FARMER













1. I work cooperatively with the buyer to
improve our potato trading operation.
3
7
1
2 10 23 11 26 18 42
4
2. I usually buy good quality of potato from
suppliers and as needed by the buyers.
4
9
4
9
8 19 13 30 14 33
4

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

41
Table 8a. Continued. . .

STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %
A.FARMER













3. I build up buyer-seller relationships
(alliances/partnership) with my colleagues. 4
9
5 12 8 19 16 37 10 23
4
4. I cooperate with other actors in pricing and
quality determination of potato.

3
7
5 12 14 33 16 37 5 12
3
B.ASSEMBLER-WHOLESALER
1. I work cooperatively with the buyer to
improve our potato trading operation.
0
0
3 16 1
5
8 42 7 37
4
2. I usually buy good quality of potato from
suppliers and as needed by the buyers.
0
0
0
0
3 16 10 53 6 32
4
3. I build up buyer-seller relationships
(alliances/partnership) with my colleagues. 0
0
1
5
4 21 5 26 9 47
4
4. I cooperate with other actors in pricing and
quality determination of potato.
0
0
1
5
4 21 9 47 5 26
4
C.FINANCIER-ASSEMBLER-WHOLESALER
1. I work cooperatively with the buyer to
improve our potato trading operation.
0
0
1
6
2 11 6 33 9 50
4
2. I usually buy good quality of potato from
suppliers and as needed by the buyers.
0
0
0
0
3 17 7 39 8 44
4
3. I build up buyer-seller relationships
(alliances/partnership) with my colleagues. 0
0
1
6
4 22 6 33 7 39
4
4. I cooperate with other actors in pricing and
quality determination of potato.
0
0
0
0
5 28 7 39 6 33
4
D.TRUCKER-WHOLESALER
1. I work cooperatively with the buyer to
improve our potato trading operation.
1
8
1
8
2 17 2 17 6 50
4
2. I usually buy good quality of potato from
suppliers and as needed by the buyers.
0
0
0
0
2 17 3 25 7 58
4
3. I build up buyer-seller relationships
(alliances/partnership) with my colleagues. 2 17 0
0
1
8
2 17 7 58
4
4. I cooperate with other actors in pricing and
quality determination of potato.
1
8
1
8
1
8
4 33 5 42
4
Numerical value and descriptive equivalent:
1-Strongly Disagree 2- Moderately Disagree
3-Undecided 4-Moderately Agree
5-Strongly Agree


Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

42
Table 8a. Continued. . .

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

E.WHOLESALER


1. I work cooperatively with the buyer to
improve our potato trading operation.
0
0
1 10 2 20 4 40 3 30
4
2. I usually buy good quality of potato from
suppliers and as needed by the buyers.
0
0
2 20 1 10 3 30 4 40
34
3. I build up buyer-seller relationships
(alliances/partnership) with my colleagues. 1 10 3 30 1 10 2 20 3 30
3

4. I cooperate with other actors in pricing and
quality determination of potato.
1 10 1 10 2 20 3 30 3 30
4
F.WHOLESALER-RETAILER
1. I work cooperatively with the buyer to
improve our potato trading operation.
2
5
3
8
5 14 11 30 16 43
4
2. I usually buy good quality of potato from
suppliers and as needed by the buyers.
0
0
1
3
4 11 17 46 15 41
4
3. I build up buyer-seller relationships
(alliances/partnership) with my colleagues. 4 11 0
0
5 14 16 43 12 32
4
4. I cooperate with other actors in pricing and
quality determination of potato.
1
3
8 22 7 19 11 30 10 27
4

G.RETAILER

1. I work cooperatively with the buyer to
improve our potato trading operation.
12 22 7 13 6 11 11 20 18 33
3

2. I usually buy good quality of potato from
suppliers and as needed by the buyers.
0
0
1
2
8 15 23 43 22 41
4

3. I build up buyer-seller relationships
(alliances/partnership) with my colleagues. 5
9
4
7
3
6 20 37 22 41
4

4. I cooperate with other actors in pricing and
quality determination of potato.
9 17 13 24 5
9 15 28 12 22
3

In statement two, the respondents were moderately agree that the actors usually
buy good quality of potato from suppliers and as needed by the buyers. Moreover, the
actors build up buyer-seller relationship. It implies in statement four, that there is a
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

43
significant difference among the chain actors that the respondents cooperate with other
actors especially in pricing and quality determination of potato.
Table 8b showed that the respondents were undecided whether the chain actors
work cooperatively with the buyer to improve their potato trading operation. It further
justify that the different stakeholders cooperate with the other actors in pricing and
quality determination of potato. It shows that this statement is the most important to
measure cooperation. There is significant difference between and among the actors. Some
of the respondents were moderately agree that the actors usually buy good quality of
potato from suppliers and as needed by the buyers. And work cooperatively with the
buyer to improve vegetable trading negotiation.
Table 8b. Descriptive and test statistics
DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF ASYMP. SIG.
1. I work cooperatively with the buyer to improve our
3.80
5.978
3
0.113
potato trading operation.
2. I usually buy good quality of potato from suppliers
4.08
5.432
3
0.143
and as needed by the buyers.
3. I build up buyer-seller relationships
3.82
4.842
3
0.184
(alliances/partnership) with my colleagues.
4. I cooperate with other actors in pricing and quality
3.51
8.436
3
0.038*
determination of potato.
*Significant mean range: 3.51-3.80-undecided, 3.90-4.19-moderately agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

27
44
Distribution of Respondents
According to Commitment
Commitment as "an exchange partner believing that an ongoing relationship with
another is so important as to warrant maximum efforts at maintaining it; that is, the
committed party believes the relationship endures indefinitely and commitment is central
to all of the relational exchanges between the firm and its various partners. (Morgan and
Hunt, 1994).
Table 9a, presents that most of the assembler-wholesalers moderately agree that
the actors keep the promises the stakeholders make with the buyer for their buyers to stay
with them and trade in a longer period of time. Moreover, (35%) from the farmers
strongly agree with it. From the statement two, many of the respondents from wholesalers
strongly agree in making extra effort to meet the buyers demand requirements. And fifty
percent from the farmers moderately agree.
Majority of the respondents among trucker-wholesalers strongly agree whether
the chain actors invest large amount to produce/procure the potato because they also
include other factors when the actors engaged in business partnership. Fifty percent from
the farmers strongly agree in statement four, that majority from trucker-wholesalers
strongly agree in continuing trading with the buyers for a longer period of time. It implies
here that the chain actors have their good relationship that makes their trading operation
longer.




Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

45
Table 9a. Distribution of respondents according to commitment

STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %
A. FARMER













1. I keep the promises I make with the buyer.
2
5
4
9
8 19 14 33 15 35
4
2. I make extra effort to meet the buyer’s
demand requirement.
1
2
4
9
9 21 17 40 12 28
4
3. I invest large amount to produce/procure
the potato.
6 14 5 12 8 19 11 26 13 30
3
4. I always continue trading with the buyer
for a longer period of time.
1
2
3
7
8 19 15 35 16 37
4
B.ASSEMBLER-WHOLESALER
1. I keep the promises I make with the buyer.
0
0
0
0
5 26 10 53 4 21
4
2. I make extra effort to meet the buyer’s
demand requirement.
0
0
0
0
4 21 7 37 8 42
4
3. I invest large amount to produce/procure
the potato.
0
0
4 21 3 16 7 37 5 26
4
4. I always continue trading with the buyer
for a longer period of time.
0
0
0
0
3 16 7 37 9 47
4
C.FINANCIER-ASSEMBLER-WHOLESALER

1. I keep the promises I make with the buyer.
0
0
0
0
4 22 7 39 7 39
4

2. I make extra effort to meet the buyer’s
demand requirement.
0
0
1
6
3 17 6 33 8 44
4
3. I invest large amount to produce/procure
the potato.
0
0
2 11 9 50 5 28 2 11
3
4. I always continue trading with the buyer
for a longer period of time.
0
0
0
0
4 22 7 39 7
39
4
D.TRUCKER-WHOLESALER
1. I keep the promises I make with the buyer.
0
0
0
0
1
8
5 42
6 50
4
2. I make extra effort to meet the buyer’s
demand requirement.
0
0
0
0
2
17 5 42
5 42
4
3. I invest large amount to produce/procure
the potato.
0
0
1
8
3
25 0
0
8 67
4
4. I always continue trading with the buyer
for a longer period of time.
0
0
0
0
1
8
3 25
8 67
5
Numerical value and descriptive equivalent:
1-Strongly Disagree 2- Moderately Disagree
3-Undecided 4-Moderately Agree
5-Strongly Agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

46
Table 9a.Continued . . .

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

E.WHOLESALER
1. I keep the promises I make with the buyer.
0
0
2 20 1
10 2 20
5 50
4
2. I make extra effort to meet the buyer’s
demand requirement.
0
0
0
0
4
40 0
0
6 60
4
3. I invest large amount to produce/procure
the potato.
0
0
3 30 2
20 2 20
3 30
4
4. I always continue trading with the buyer
for a longer period of time.
0
0
0
0
2
20 3 30
5 50
4

F.WHOLESALER-RETAILER
1. I keep the promises I make with the buyer.
1
3
0
0
3
8
16 43 17 46
4
2. I make extra effort to meet the buyer’s
demand requirement.
0
0
0
0
4
11 17 46 16 43
4
3. I invest large amount to produce/procure
the potato.
0
0
5 14 3
8
15 41 14 38
4
4. I always continue trading with the buyer
for a longer period of time.
0
0
2
5
2
5
14 38 19 51
4

G.RETAILER
1. I keep the promises I make with the buyer.
3
6
3
6 10 19 17 31 21 39
4
2. I make extra effort to meet the buyer’s
demand requirement.
3
6
3
6 13 24 13 24 22 41
4
3. I invest large amount to produce/procure
the potato.
2
4
8 15 18 33 18 33 8 15
3
4. I always continue trading with the buyer
for a longer period of time.
1
2
2
4 11 20 21 39 19 35
4

Majority from the farmers were undecided that the relational trust established
with the buyer is very satisfactory. And most of the assembler-wholesalers moderately
agree that the stakeholders were happy on the business alliances with the buyers.
Majority of the respondents from wholesalers undecided that the trading with the buyers
is self-fulfilling.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

47
Table 9b showed that the respondents agree that the actors have a longer period of
time trading with their buyers, there is a significant difference among the stakeholders on
their understanding, that the respondents invest large amount to produce or procure the
potato. This statement is the most important criteria to measure commitment between and
among the different chain actors in the spot market. The actors also make extra effort to
produce or procure the potato.
So that they can able to produce their buyers needed or to produce stock whenever
there’s a shortage of supplies. It proves that the actors invest large amount to produce or
procure the vegetables specifically potato. This statement is the most important criteria to
measure commitment between and among the different chain actors in the spot market. It
further justify that there is significant difference among the respondents.
Table 9b. Descriptive and test statistics
DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF ASYMP. SIG.
1. I keep the promises I make with the buyer.
4.03
5.127
3
0.163
2. I make extra effort to meet the buyer’s demand
4.05
6.364
3
0.095
requirement.
3. I invest large amount to produce/procure the potato.
3.64
8.793
3
0.032*
4. I always continue trading with the buyer for a longer
4.16
5.982
3
0.112
period of time.
*Significant mean range: 3.64-3.90-Undecided 4.0-4.26-moderately agree








Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

48
Distribution of respondents
according Relational Satisfaction

Frazier (1983), defined satisfaction as a positive affective state resulting from an
appraisal of all aspects of a firm’s working relationship with another. Satisfaction is
derived from the result of a comparison between the preferred supplier’s performance and
the customer’s expectations.
Table 10a indicates that majority of the respondents from the wholesaler-retailers
were moderately agree that the actors in terms of trading with the preferred buyer is less
risky, and more than a half of the respondents among the Wholesaler strongly agree with
it. There were (63%) among the assembler-wholesalers who moderately agree whether
the stakeholders trading with the buyer is satisfactory because there were sometimes that
disappointment occur among the buyers. From the statement three, most of the
assembler-wholesalers moderately agrees that the actors were satisfied trading with the
buyer for a longer time. But some also of the respondents were indecisive.
Many of the trucker-wholesalers in statement four moderately agree whether the
buyer meet the stakeholder’s expectations in trading with them. And there were (63%) of
the respondents from assembler –wholesalers were moderately agree if the buyer treats
them fairly. In statement six, (60%) of the wholesalers were undecided that the actors
adequately rewarded trading with the buyer. Among wholesaler-retailers (46%) of them
were undecided that the actors always have conflict or misunderstanding with the buyer.






Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

49
Table 10a. Distribution of respondents according to relational satisfaction


STATEMENT
1
2
3
4
5
AVE.
N % N % N % N % N %
A. FARMER













1. Trading with the preferred buyer is less
risky.
5 12 7 16 14 33 11 26 6 14
3

2. My trading relationship with the buyer is
satisfactory.
1
2
2
5 17 40 15 35 8 19
4











3. I’m satisfied trading with the buyer for a











longer time.
2
5
0
0 17 40 17 40 7 16
4

4. The buyer meets my expectations in
trading with them.
0
0
5 12 17 40 15 35 6 14
4

5. The buyer treats me fairly and equitably.
0
0
6 14 22 51 10 23 5 12
3

6. I am adequately rewarded trading with the
buyer.
0
0
7 16 15 35 13 30 8 19
4

7. I always have conflict/misunderstanding
with the buyer.
7 16 8 19 18 42 6 14 4
9
3

8. The relational trust established with the
buyers is very satisfying.
0
0
1
2 24 56 11 26 7 16
4

9. I am happy on the business alliances with
the buyers.
0
0
3
7 14 33 20 47 6 14
4

10. Trading with the buyer is self-fulfilling.
1
2
2
5 20 47 13 30 7 16
4

B.ASSEMBLER-WHOLESALER
1. Trading with the preferred buyer is less
risky.
1
5
1
5
4 21 7 37 6 32
4
2. My trading relationship with the buyer is
satisfactory.
0
0
0
0
1
5 12 63 6 32
4
3. I’m satisfied trading with the buyer for a
longer time.
0
0
0
0
2 11 11 58 6 32
4
4. The buyer meets my expectations in
trading with them.
0
0
0
0
4 21 11 58 4 21
4
5. The buyer treats me fairly and equitably.
0
0
1
5
4 21 12 63 2 11
4
6. I am adequately rewarded trading with the
buyer.
0
0
0
0
6 32 10 53 3 16
4
Numerical value and descriptive equivalent:
1-Strongly Disagree 2- Moderately Disagree
3-Undecided 4-Moderately Agree
5-Strongly Agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

50
Table 10a. Continued . . .

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

C.FINANCIER-ASSEMBLER-WHOLESALER
1. Trading with the preferred buyer is less
risky.
1
6
3 17 6 33 3 17 5 28
3
2. My trading relationship with the buyer is
satisfactory.
0
0
3 17 1
6
7 39 7 39
4
3. I’m satisfied trading with the buyer for a
longer time.
0
0
2 11 1
6
8 44 7 39
4
4. The buyer meets my expectations in
trading with them.
0
0
0
0
4 22 10 56 4 22
4
5. The buyer treats me fairly and equitably.
0
0
1
6
3 17 9 50 5 28
4
6. I am adequately rewarded trading with the
buyer.
1
6
1
6
4 22 10 56 2 11
4
7. I always have conflict/misunderstanding
with the buyer.
1
6
2 11 8 44 3 17 4 22
3
8. The relational trust established with the
buyers is very satisfying.
0
0
1
6 10 56 4 22 3 17
4
9. I am happy on the business alliances with
the buyers.
1
6
2 11 4 22 8 44 3 17
4

10. Trading with the buyer is self-fulfilling.
0
0
0
0
8 44 6 33 4 22
4
D.TRUCKER-WHOLESALER
1. Trading with the preferred buyer is less
risky.
1
8
2 17 0
0
5 42 4 33
4
2. My trading relationship with the buyer is
satisfactory.
0
0
0
0
2 17 6 50 4 33
4
3. I’m satisfied trading with the buyer for a
longer time.
0
0
0
0
2 17 6 50 4 33
4
4. The buyer meets my expectations in
trading with them.
0
0
1
8
1
8
8 67 2 17
4
5. The buyer treats me fairly and equitably.
1
8
1
8
4 33 3 25 3 25
4
6. I am adequately rewarded trading with the
buyer.
2 17 0
0
3 25 5 42 2 17
3
7. I always have conflict/misunderstanding
with the buyer.
1
8
6 50 4 33 1
8
0
0
2
8. The relational trust established with the
buyers is very satisfying.
0
0
1
8
6 50 4 33 1
8
3
9. I am happy on the business alliances with
the buyers.
0
0
0
0
5 42 6 50 1
8
4

10. Trading with the buyer is self-fulfilling.
0
0
1
8
5 42 6 50 0
0
3
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

51
Table 10a. Continued. . .

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


E.WHOLESALER

1. Trading with the preferred buyer is less
risky.
1 10 2 20 2 20 2 20 3 30
3

2. My trading relationship with the buyer is
satisfactory.
0
0
1 10 1 10 5 50 3 30
4

3. I’m satisfied trading with the buyer for a
longer time.
0
0
1 10 2 20 4 40 3 30
4

4. The buyer meets my expectations in
trading with them.
0
0
0
0
6 60 0
0
4 40
4

5. The buyer treats me fairly and equitably.
1 10 1 10 5 50 2 20 1 10
3
F.WHOLESALER-RETAILER

1. Trading with the preferred buyer is less
risky.
1
3
5 14 10 27 16 43 5 14
4

2. My trading relationship with the buyer is
satisfactory.
0
0
1
3 11 30 13 35 12 32
4

3. I’m satisfied trading with the buyer for a
longer time.
0
0
0
0
9 24 16 43 12 32
4

4.The buyer meets my expectations in
trading with them.
0
0
3
8 12 32 18 49 4 11
4

5. The buyer treats me fairly and equitably.
0
0
1
3 13 35 20 54 3
8
4

6. I am adequately rewarded trading with the
buyer.
0
0
1
3
8 22 23 62 5 14
4

7. I always have conflict/misunderstanding
with the buyer.
4 11 5 14 17 46 8 22 3
8
3

8. The relational trust established with the
buyers is very satisfying.
0
0
1
3 12 32 16 43 8 22
4

9. I am happy on the business alliances with
the buyers.
0
0
1
3 11 30 19 51 6 16
4

10. Trading with the buyer is self-fulfilling.
1
3
2
5 12 32 13 35 9 24
4
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

52
Table 10a. Continued. . .

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


G.RETAILER
1. Trading with the preferred buyer is less
risky.
3
6
7 13 14 26 18 33 12 22
4
2. My trading relationship with the buyer is
satisfactory.
2
4
6 11 9 17 20 37 17 31
4
3. I’m satisfied trading with the buyer for a
longer time.
1
2
3
6 10 19 21 39 18 33
4
4. The buyer meets my expectations in
trading with them.
0
0
7 13 16 30 19 35 12 22
4
5. The buyer treats me fairly and equitably.
2
4
3
6 16 30 22 41 11 20
4
6. I am adequately rewarded trading with the
buyer.
5
9
2
4 12 22 23 43 12 22
34
7. I always have conflict/misunderstanding
with the buyer.
8 15 9 17 19 35 11 20 7 13
3

8. The relational trust established with the
buyers is very satisfying.
0
0
5
9 24 44 13 24 12 22
4

9. I am happy on the business alliances with
the buyers.
3
6
3
6 16 30 22 41 10 19
4

10. Trading with the buyer is self-fulfilling.
4
7
2
4 16 30 22 41 10 19
4


Majority of the retailers were moderately agree in terms of the trading with the
preferred buyer is less risky and also their trading relationship with the buyer is
satisfactory. Moreover, the retailers were satisfied trading with their buyer for a longer
period of time. However, there are some retailers who were indecisive that they have
always conflict or misunderstanding with the buyer, because they can’t avoid some
situations that can cause conflicts, especially in pricing of the products.

---

53
Table 10b showed that the mean statistics implied that the chain actors were
undecided in trading relationship with the buyer is satisfactory, and have conflict or
misunderstanding with the buyer. In statement one, the respondents moderately agree in
trading with the preferred buyer is less risky. The respondents also moderately agree that
the actors satisfied trading with the buyer for a longer time, and whether the buyer meets
their expectations in trading with them.
Furthermore, the respondents moderately agree that the buyer treats them fairly
and equitably. Including the relational trust established with the buyers is very satisfying.
The chain actors also happy on the business alliances with the buyers.

Table 10b. Descriptive and test statistics
DESCRIPTIVE STATISTICS
MEAN CHI-SQUARE DF ASYMP. SIG.
1. Trading with the preferred buyer is less risky.
3.47
5.105
3
0.164
2. My trading relationship with the buyer is satisfactory.
3.89
7.283
3
0.063
3. I’m satisfied trading with the buyer for a longer time.
3.94
9.238
3
0.026*
4. The buyer meets my expectations in trading with them.
3.69
5.137
3
0.162
5. The buyer treats me fairly and equitably.
3.59
9.504
3
0.023*
6. I am adequately rewarded trading with the buyer.
3.64
1.961
3
0.580
7. I always have conflict/misunderstanding with the buyer.
2.91
2.440
3
0.486
8. The relational trust established with the buyers is very
3.64
1.936
3
0.586
satisfying.
9. I am happy on the business alliances with the buyers.
3.72
2.096
3
0.553
10. Trading with the buyer is self-fulfilling.
3.62
4.676
3
0.197
*Significant mean range: 2.91-3.41-undecided 3.42-3.92-moderately agree
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

54
It justify that the actors were self-fulfilled with their trading operation among the
buyers. There is a significant difference among the respondents that actors are satisfied
trading with the buyer for a longer time. In statement five, the actors differ from their
understanding that the buyer treats them fairly and equitably.













Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

55
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to determine what are the similarities and differences in
the buyer-seller relationships of the different actors in the spot market chain for potato in
La Trinidad Benguet and Manila market outlets such as, Balintawak, Q-mart, Novaliches,
Kamuning, Libertad, Dapitan and Urdaneta City.
The chain actors differ significantly in terms of trust, with regards to honesty in
dealing with the buyers. The result implied that the respondents may or may not be honest
thus opportunistic advantage could still be observed.
The actors differ in having the power most likely in having the power in trading
negotiation. Moderately among the actors agree in adhering the buyers demand.
Moreover, the actors were undecided whether the buyer has the best offer in price.
Including that the buyer often controls the market information in terms of demand and
price.
Most of the wholesalers moderately agree to depend on the price dictated by the
buyers. There is highly significant between the actors to depend much from the market
information provided by the buyers. The chain actors usually share production and
marketing in terms of volume, quality and price information to buyers.
The actors differ significantly in terms of communication in influencing the other
actors, specifically in directly dictating the price. Moreover, the actors differ from their
perception that the respondents always share information about the production and
procurement/marketing.

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

56
The different stakeholders work cooperatively with the other actors in pricing and
quality determination of potato. It implies that this statement is the most important to
measure cooperation. Between and among the different chain actors in the spot market.
It proves that the actors invest large amount to produce or procure the vegetables
specifically potato. This statement is the most important criteria to measure commitment It
further justify that there is significant difference among the respondents based from their
understanding.
There is a significant difference among the respondents that actors are satisfied
trading with the buyer for a longer time. And they also differ from their understanding that
the buyer treats them fairly and equitably.
Conclusions

Based on the findings of the study the following conclusions were made:
1. As to trust, majority of the respondents, have much confidence to rely on the
buyers promises especially in terms of their volume of orders of the potato procured, the
payments if the stakeholders pay it on a given time and the right amount of pricing.
2. The chain actors differ as to power in trading negotiation.
3. The respondents were mostly dependent on the quality and classification of
potato to be disposed. And majority of the stakeholders were dependent much from the
regular buyers of the potato sold.
4. The respondents work cooperatively with their buyer especially in potato,
because through this they can build a good alliance and have a good partnership among
them. And most of them agree that the stakeholders usually buy good quality of potato
from their suppliers so that they can achieve what their buyers specifically needed.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

57
5. The chain actors have differ significantly in terms of their commitment
established between the actors and the buyers in dealing with their business relationship.
The stakeholders were flexible to choose buyers at any time, and have the power in
trading negotiation.
6. As to relational satisfaction, the respondents differ significantly in terms of
trading with the buyers for a longer period time and buyers treat sellers fair equitably.

Recommendations
The chain actors should set standards in terms of packaging the product, so that
there would be a continuity of business transactions, and through this, it can able to
establish and improve the relationship between and among the actors in the spot market.
The potato traders also give more value on their performance according to
relational satisfaction in able for them to meet the desired needed of the buyer and to meet
their consumer’s expectations.
The different chain actors should have commonality of communication. For them
to share formal or informal information to buyers and it also assist in resolving conflicts or
misunderstanding and aligning relationships and expectations.





Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

58
LITERATURE CITED
ANDALEEB, S. S. 1996. An experimental investigation of satisfaction and commitment
In marketing channels: the role of trust and dependence. Journal of Retailing, Pp.
77-93.


ANDERSON, J. C. and J.A. NARRUS. 1990. A model of distributor firm and

Manufacturing firm working relationships. Journal Marketing. Pp. 42-58
ANDERSON, E. and B. A. WEITZ. 1992. The use of pledges to build and sustain

commitment in distribution channels. Journal of Marketing Research, Pp. 18-34.
BOWMAN, R.J. 1997. The state of the supply chain. Distribution, Vol. 96, Pp 28-36

BURNES, B. A. and S. J. BOCOCK 2002. Supply Chain Collaboration Committee

2002. Kearney London Vol. 25, No. 10 Pp. 60-63.
CHADWICK, A. G. and J. F. RAJAGOPAL. 1995. Power, Value and Supply Chain

Management. Pp. 168-175.
CHAMPION, S. C. and A. P. FEARNE. 2001. Supply Chain Management: A “First

Principles” Consideration of its Application to Wool Marketing. A Paper

presented at the International Wool Textile Organization Technical Meeting, Nice

France.
COUNCIL OF LOGISTICS MANAGEMENT 1986. What is it all about? Oak Brook,

Illinois, U.S.A.
DRABENSTOTT, M., 1999. Consolidation in U.S. Agriculture Leading to new Rural

Landscape and Public Policy Considerations. Feedstuffs. 71 (May) P. 33
FAFCHAMPS, M. 1996. The enforcement of commercial contracts in Ghana. World

Development, 24(3), Pp. 427-448.
FEARNE, A. 1998.The Evaluation of Partnership in the Meat Supply Chain: Insights

from the British Beef Industry. Supply Chain Management: An International

Journal, 3(4):214-231
FORNELL, C. 1992. A national customer satisfaction barometer: the Swedish

experience. Journal of Marketing, 55 (January), Pp. 1-21.
FRAZIER, G. L. 1983. Inter organizational exchange behaviour in marketing channels: a

broadened perspective. Journal of Marketing, 47 (Fall), Pp. 68-78.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

59
FRAZIER, M. J. and A. P. RODY. 1991. Strategic Purchasing and Supply Chain

Management. Pitman London. Pp. 30-33.
GO, F.M. and APPELMAN, J. 1999. Achieving Competitive Advantage in SME’s by

Building Trust in Interfere Alliances. Paper presented at the International.
HAWES, J. M. MAST, K.E. AND J. E. SWAN. 1989. Trust earning perceptions of

sellers and buyers. Journal of Personal Selling and Sales Management. Pp.1-8.
HANSEN, M. and MORROW, JR. J. L., BATISTA, JUAN C. 1999 “The Role of

Trust and
Governance in Managing Farmer Cooperatives: Maximizing

opportunities while Minimizing Opportunism.” IAMA Conference. Florence,

Italy. Retrieved 0ctober 10, 2010 from http://www.ifama.org/conferences
HEIDE, J. B. and G. JOHN. 1998. The role of dependence balancing in safe-guarding

transaction-specific assets in conventional channels. Journal of Marketing, 52

(January), Pp. 20-35.
HOBS, J. E. and L. M. YOUNG. 2000. Closer Vertical Co-ordination in Agri-food

Supply Chains: A Conceptual Framework and Some Preliminary Evidence.

Supply Chain Management, Vol. 5 No. 3, Pp. 132-142.
HONGZE MA. 2005. Supply chain management. Logistics, Turku School of Economics

and Business Administration.
HUMPHREY, J. and H. SCHMITZ. 1998. Trust and interfere relations in developing

and transition economies. Journal of Development Studies, 34(4), Pp. 32-49.
JANZEN, R. and J. J. de Vlieger. 2000. Social Network Theories as a tool for Chain

Building from the Promise of Profit to the Promise of a Person. In Chain

Management in Agribusiness and the Food Industry, Proceedings of the Fourth

and International Conference (Eds. Trienekens J. H. and Zuurbier P. J. P.) Pp.121-

127 (Wageningen Pers: Wageningen The Netherlands).
LANDEROS, R. and R. M MONCZKA. 1989. Cooperative buyer/seller relationships

and a firm’s competitive posture. J. purchasing and Material Manage, Pp. 9-18.
LAZZARINI, S. G. and F. R. CHADDAD and M. L. COOK. 2001. Integrating

Supply Chain Network Analysis: The Study of Netchains. Journal on Chain and

Network Science Vol. 1, No.1, Pp. 7-22.
MATANDA, M. J. and B. SCHRODER. 2004 Business-To Business Relationship By

Categories of Suppliers In The Marketing Channel. Dynamics in Chain and

Networks. Proceedings of the sixth International Conference on Chain and

Network Management in Agribusiness and the Food Industry. 27-28 May 2004.
Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

60

Editors: Bremmers, H. J., Omta, S. W. F., Treinekens, J. H. and E. F. M. Wubben.

Wageningen Academic Publishers. Pp. 532-537.
MENDOZA, M.S. and M.W ROSEGRANT. 1995. Pricing conduct of spatially

differentiated markets. In: Scott, G.J., ed., Prices products and people: analysing

agricultural markets in developing countries. Boulder, lynne rienner. Pp. 343-360.
MIGCHELS, N.G. 2000. That’s What Friends are for. . . , The development of chain

cooperation. In “Chain Management in Agribusiness and the foods Industry”,

Proceedings of the Fourth Internal Conference. (Eds. Trienekens, J. H. And

Zuurbier, P. J. P.). Pp. 429-441. (Wageningen Pers: Wageningen, The

Netherlands).
MORGAN, R. and S. HUNT. 1994. The Commitment-Trust Theory of Relationship

Marketing. Journal of Marketing, 58 (May) 28-40. In: Matanda, M. J. and B.

Schroder. Business-To Business Relationship By Categories of Suppliers In The

Marketing Channel. Dynamics in Chain and Networks. Proceedings of the sixth

International Conference on Chain and Network Management in Agribusiness and

the Food Industry. 27-28 May 2004. Editors: Bremmers, H. J., Omta, S. W. F.,

Treinekens, J. H. and E. F. M. Wubben. Wageningen Academic Publishers. Pp

532-537. Retrieved November 12, 2010
http://goliath.ecnext.com/coms2/gi_0199-513871/Factors-affecting-the-level-
of.html
NAUDE, P. and F. BUTTLE. 2000. Assessing Relationship Quality. Industrial

Marketing Management., 29 (4) 351 -363 In: Matandass, M. J. and B. Schrodder.

Business-To Business Relationship By Categories of Suppliers In The Marketing

Channel. Dynamics in Chain and Networks. Proceedings of the sixth International

Conference on Chain and Network Management in Agribusiness and the Food

Industry. 27-28 May 2004. Editors: Bremmers, H. J., Omta, S. W. F., Treinekens,

J. H. and E. F. M. Wubben. Wageningen Academic Publishers. Pp. 532-537.
O’KEEFFE, M. 1994. Vertical Coordination in Agribusiness: A Literature Review.

RIRDC Occasional Paper Series No. 94/1
RING and VAN DE VEN. 1994. Development Processes of Cooperative inter-

organizational Relationships. Academy of Management Review. Vol 19, n 1, Pp.

90-116.

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

61
ROBICHEAUX R. J. and F. P. COLEMAN. 1994. Supply Chain Dynamics and the

environment . Journal of Business Logistics Chain Vompetitiveness. Vol. 2, No. 5

Pp. 283-300.
SCHARY, P. and T. SKJØTT-LARSEN. 2001. Managing the Global Supply Chain.

Copenhagen Business School Press, P.542.
SINGH, J. and D. SIRDESHMUKH. 2000. Agency and Trust mechanisms an consumer

satisfaction and loyalty judgements. Journal of academy of Marketing Science,

Pp.150-167.
UZZI, B. 1997. Social Structure and Competition in Interfirm Networks: the Paradox of

Embeddedness. Administrative Science Quarterly, Vol. 42, Pp. 35-67.
VAN BEEK, P. BEULENS, A.J.M. AND MEFFERT H. 1998. Logistic and ICT in

Food Supply Systems. In innovation of Food Production Systems product Quality

and Consumers Acceptance (Eds. Jongen W.M.F. and Meulenberg M.T.G.) Pp.

117-1138. (Wageningen Pers: Wageningen, The Netherlands)
VAN DER VORST. 2000. Effective food supply chains: Generating, modeling and

evaluating supply chain scenarious, PhD-thesis Wageningen University,

Wageningen
WATERS, D. 2003. Logistics : An Introduction to Supply Chain Management. Palgrave

Machillan. New York. P. 354











Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

62
APPENDIX A
Letter to the Respondents
Benguet State University
COLLEGE OF AGRICULTURE
La Trinidad, Benguet



November, 2010
Sir/Madam,

Warm greetings!

I am a graduating student of Benguet State University taking up Bachelor of
Science in Agribusiness major in Enterprise Management. As part of the course
requirement, I am presently conducting an undergraduate research study entitled
“RELATIONSHIP OF ACTORS IN THE SPOT MARKET CHAINS FOR POTATO”

In connection with this, may I ask you to fill up or answer the questionnaire made
for this purpose? Rest assured that all the information you will provide will be treated with
outmost confidentiality. Your favorable approval is highly appreciated.


Sincerely yours,


JEANNET S. LUMACHAY
Researcher

Noted by:

LEOPOLDO N. TAGARINO
Adviser



Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

63


APPENDIX B
Interview Schedule

This research aims to investigate the cabbage supply networks. All information solicited will be
treated with confidentiality. Please answer the questions honestly by putting X mark in the appropriate space
provided for. Thank you very much!

Respondent’s Name: __________________________


No. ______
Respondent’s Group:
1. Production Group:
[ ] Farmers




2. Assembly (Collection) Group : [ ] Assembler-Wholesaler [ ] Financier-Assembler- Wholesaler
3. Distribution Group :
[ ] Trucker-Wholesaler [ ] Wholesaler [ ] Wholesaler-Retailer
4. Retailing Group : [ ] Retailers



A. RESPONDENTS PROFILE
1. Age: _____
2. Gender: _____ Male _____ Female
3. Marital status: [ ] Single
[ ] Married
[ ] Separated
[ ] Widowed
4. Religion:
[ ] Catholic
[ ] Protestant
[ ] others, specify ________________
5. Educational background: [ ] Elementary [ ] High School [ ] College [ ] Vocational
6. Number of years engages in vegetable farming business: _____
B.What are the vegetables you frequently produce/procure and sell in the market?Please check the boxes
[ ] Potato [ ] Cabbage [ ] Chinese Cabbage [ ] Carrots [ ] Broccoli [ ] Lettuce [ ] Bell Pepper
[ ] Tomato [ ] Celery [ ] Chayote [ ] Cucumber [ ] SnapBeans [ ] Garden Peas

C.SUPPLY NETWORK RELATIONSHIP
Assess the nature of satisfaction with the buyers of your vegetables.
C.1 Trust:Trust can be understood as a faith, reliance, belief or confidence in the goodwill of other partners.
Assess the nature of relational trust with the buyers of your vegetables.






1 2 3 4 5
1. I have much confidence to rely on the buyer’s promises
Strongly Disagree
Strongly Agree
2. I am always honest dealing with the buyers of cabbage.
Strongly Disagree
Strongly Agree





Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

64
3. I should not hesitate to make important decisions based on buyer’s suggestions
Strongly Disagree
Strongly Agree
4. I always believe on the information shared by the buyer. Strongly Disagree
Strongly Agree
5. The buyer is fair in negotiating with me.

Strongly Disagree
Strongly Agree
6. The buyer I trade with has a good reputation.

Strongly Disagree
Strongly Agree
7. The buyer and I always consider the best interest.
Strongly Disagree
Strongly Agree

C.2 Power:Power is defined as the ability to influence a relationship partner and dependence or
asymmetrical investment in relationship-assets can lead to the exercise of coercive power. Assess the nature
of relational power with the buyers of your vegetables.
1 2 3 4 5
1. I am flexible to choose buyers at any time.

Strongly Disagree
Strongly Agree
2. I always adhere to the buyer’s demand.

Strongly Disagree
Strongly Agree
3. I have all the power in the trading negotiation

Strongly Disagree
Strongly Agree
4. Buyer has the best offer relative to alternatives.

Strongly Disagree
Strongly Agree
5. Buyer often controls the market information.

Strongly Disagree
Strongly Agree
6. Buyer often acts opportunistically.


Strongly Disagree
Strongly Agree


C.3 Dependence: Dependence is increased when the outcomes available from the relationship are
comparatively better than the outcomes available from alternative relationship. Assess the nature of
relational dependence with the buyers of your vegetables.


1 2 3 4 5
1. I am flexible to choose buyers at any time.
Strongly Disagree
Strongly Agree
2. I always adhere to the buyer’s demand. Strongly Disagree
Strongly Agree
3. I have all the power in the trading negotiation. Strongly Disagree
Strongly Agree
4. Buyer has the best offer relative to alternatives.
Strongly Disagree
Strongly Agree
5. Buyer often controls the market information. Strongly Disagree
Strongl Agree
6. Buyer often acts opportunistically.


Strongly Disagree
Strongly Agree

C.3 Communication: Communication is “the formal as well as informal sharing of meaningful and timely
information between firms”. Assess the nature of communication, between you and the buyer
1. I can directly dictate price Strongly Disagree
Strongly Agree
2. I usually share information Strongly Disagree
Strongly Agree
3. As buyer, I use other people to communicate with the farmers Strongly Disagree
Strongly Agree

C.4 Cooperation: Cooperation refers to situations in which firms work together to achieve mutual goals
Assess the level of cooperation between you and the buyer of your vegetables

1. I work cooperatively with the buyer to effectively improve my operation 1 2 3 4 5
Strongly Disagree
Strongly Agree
2. I usually share information's to my suppliers, buyers Strongly Disagree
Strongly Agree
3. I build up relationships (alliances/partnership) with my colleagues'
Strongly Disagree
Strongly Agree
4. I always share information about production/marketing targets to the buyer
Strongly Disagree
Strongly Agree

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

65
5 .I share the production or marketing decisions I made with the buyer
Strongly Disagree
Strongly Agree

C.5 Commitment: commitment as "an exchange partner believing that an ongoing relationship with another
is so important as to warrant maximum efforts at maintaining it. Assess the level of commitment between
you and the buyer of your vegetables

1 2 3 4 5
1. I keep the promises I make with the buyer.

Strongly Disagree
Strongly Agree
2 .I make extra effort to meet the buyers demand requirement. Strongly Disagree
Strongly Agree
3. I make signifiant investment to produce/procure cabbage. StronglyDisagree
Strongly Agree
4. I work cooperatively with the buyer to effectively improve my operation.


Strongly Disagree
Strongly Agree
5. I expect to continue trading with the buyer for a long time. StronglyDisagree
Strongly Agree
6. I invest large amount of capital in my business operation. Strongly Disagree
Strongly Agree


C.6 Relationship satisfaction: Satisfaction is derived from the result of a satisfaction means the extent to
which the relational dimensions of the partnership meet expectation.




1 2 3 4 5
1. Trading with the preferred buyer is less risky.

StronglyDisagree
Strongly Agree
2. My trading relationship with the buyer is satisfactory.
StronglyDisagree
Strongly Agree
3. I am satisfied to continue to trading with the buyer for a longer time.

Strongly Disagree
Strongly Agree
4. The buyer meets my expectations in trading with them.
Strongly Disagree
Strongly Agree
5. The buyer treats me fairly and equitably.

Strongly Disagree
Strongly Agree
6. I am adequately receiving better income trading with the buyer. Strongly Disagree
Strongly Agree
7. I have much conflict with the buyer.

Strongly Disagree
Strongly Agree
8. The relational trust established with the buyers is very satisfying.
Strongly Disagree
Strongly Agree
9. I am happy on the business alliances with the buyers. Strongly Disagree
Strongly Agree
10.Trading with the buyers is self fulfilling Strongly Disagréé
Strongly Agree

Relationship Of Actors In The Spot Market Chains For Potato
/ Lumachay, Jeannet S. April. 2011

---

Document Outline

• Relationship of Actors in the Spot MarketChains for Potato
  • BIBLIOGRAPHY
  • ABSTRACT
  • INTRODUCTION
  • REVIEW OF LITERATURE
  • METHODOLOGY
  • RESULTS AND DISCUSSION
  • SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
  • LITERATURE CITED
  • APPENDICES

---