BIBLIOGRAPHY PAGADUAN, LARRY N....
BIBLIOGRAPHY
PAGADUAN, LARRY N. APRIL 2011. Perception of Actors on Quality of Potato in the
Spot Market Chains. Benguet State University, La Trinidad Benguet.
Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)
ABSTRACT
The study was conducted to identify the perception on quality of potato by chain actors in
the spot market based from three dimensions such as the physical, functional and service, the
abilities and inabilities to meet the quality requirement and the various constraints to
improve/maintain the quality of fresh vegetable offered.
The respondents are classified according to production, collection/assembly, distribution
and retailing groups and a total of 193 chain actors.
Majority of the respondents have ages ranging from 31-40, female, married, Catholic, no
affiliation to any organization, high school graduate & undergraduate and have been engaged in
potato trading business from 1-5 years.
Chain actors’ perceived physical qualities of potato are produced/procure fresh, clean and
firm. Moreover, to include the color, size and variety, free from chemical residues, pest and
diseases, properly weighed and packed. The price was based on market prevailing and negotiated
price.
Chain actors appropriately classify, weighed and packed the potatoes properly. However,
Chain actors have insufficient capital or money to procure large quantity of potato and they
depend to market prevailing price.
The common problems faced by the chain actors in trading potatoes were too much high
temperature, destructive calamities and lack of proper equipment/facilities and insufficient
capital.
Recommendations suggested by the chain actors are that the government agencies should
provide support like financial assistance, providing appropriate facilities/equipments and reliable
market information. Government should provide new varieties of potato with high quality.
1
INTRODUCTION
Rationale
Luzon produced around 86% of the total output for potato in 2007. Mindanao
contributed 14% while Visayas share less than 0.1%. Around 67% of the country’s total
area harvested with potato in 2007 was shared by Luzon. Mindanao contributed 33%
while Visayas’ share was less than 0.1%. Furthermore CAR produced around 85% of the
total output for potato in 2007. Other regions contributed 15%. Among CAR provinces
Benguet and Mountain Province are the top potato producers in Northern Luzon which
contributes to 101,993 metric tons or 86% of the total production in the Philippines. They
have also the highest production area which is 3,784 ha or 64% in the Philippines (BAS,
2008).
The primary factors considered by farmers in the choice of market outlets are:
regular buyers, better price and convenience. Another factor considered is the credit
marketing tie-up. It means that buyers extend loans (in cash or in kind) to the producers
without interest. The producers, in turn, sell their produce to the creditor-buyer at
stipulated prices. To note, when vegetable prices dip to a low, low level and farmers
foresee that the total cost of their sales will not compensate for the production and
hauling costs, they just leave their crops unharvested to avoid more loss.
Other factor may be due you the absence of an efficient market network coupled
with the absence and communication facilities, trading centers, market assistance centers,
transportation and inadequate storage facilities, and credit assistance to farmers.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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Potato growers, traders and processors perform several marketing functions which
vary according to variety/type of processed product, their scale of operations, market and
arrangement between buyers and sellers (FRLD, 1995).
Farmers usually transport and sell their produce to assemblers-wholesalers and
retailers at the La Trinidad Vegetable Trading Post and Baguio City Market. However,
during peak selling periods such as December, these traders practice “harang” or
intercept farmers’ vegetable loaded vehicles along the Halsema highway to assure
adequate volume of supply. Generally, the vegetables pass through several middlemen
before reaching the customers (Benguet Socio-Economic Profile, 2007).
Statement of the Problem
1. What are the perceived quality criteria by the actors as basis of buyers in
buying potato in the spot market chain?
2. What are the perceived abilities of actors to meet the quality requirement of
buyers in the spot market chains for potato?
3. What are the perceived inabilities of chain actors’ to meet the needs of market
intermediaries?
4. What are the barriers to improve/maintain the quality of potato?
Objectives of the Study
1. To identify the perceived quality criteria by the actors as basis of buyers in
buying potato in the spot market chain.
2. To determine the perceived abilities of actors to meet the quality requirement of
buyers in the spot market chains for potato.
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3. To determine the perceived inabilities of chain actors’ to meet the needs of
market intermediaries.
4. To identify the barriers to improve/maintain the quality of potato.
Importance of the Study
In the Philippines, agricultural commodity supply chains researches become a
research priority agenda for industry development. Hence, this research would contribute
in some ways information about the potato in the spot market.
Since most literatures in supply chain management are in the field of
manufacturing and logistics, the research given fact of the expected contribution to the
present literatures in supply chains for agriculture, hence an avenue for future research
and development in potato supply chain is inevitable.
Scope and Delimitation of the Study
The study focused on the analysis of perception on quality of potato among chain
actors in the different spot market chains. The study covers the spot market for potato,
thus, the actors involved in the major markets.
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REVIEW OF LITERATURE
Supply Chain and Network
Folkerts and Koehorst (1998) defined supply chain as “a set of interdependent
companies that work closely together to manage the flow of goods and services along the
value-added chain of agricultural and food products, in order to realize superior customer
value at the lowest possible cost”. Van der Vorst (2000) further defined supply chain as
“a network of physical and decision making activities connected by material and
information flows that cross organizational boundaries.” According to Lambert and
Cooper (2000), there are four main characteristics of a supply chain: First, it goes through
several stages of increasing intra- and inter- organizational, vertical coordination. Second,
it includes many independent firms, suggesting that managerial relationship is essential.
Third, a supply chain includes a bi-directional flow of products and information and the
managerial and operational activities. Fourth, chain members aim to fulfill the goals to
provide high customer value with an optimal use of resources.
Supply chain means the process of planning, implementing and controlling the
efficient, cost effective flow and storage of raw materials, in-process inventory, finished
goods and related information from the point-of-origin to point of final consumption for
the purpose of conforming to customer requirements (Council of Logistics Management,
1986). Supply chain is a dual flow of products and information. It is the drive to meet the
central needs of the consumer and it stresses the importance of the relationships between
participants in the marketing system. However, the tendency is often focus solely on the
immediate economic aspects when firms are building supply chains (Champion and
Fearne, 2000). Hongze Ma (2005) pointed out that supply chain is a network of
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organizations from suppliers with the purpose to improve the flow of material and
information. Drabenstott (1999) discusses the increasing move toward the development
of supply chains and describes supply chain structures where all stages of production,
processing and distribution are bound together tightly to ensure reliable, efficient delivery
of high quality products.
Perception
Robbins (1988) defined perception as a process by which individuals organize
and interpret their sensory impressions in order to give meaning to their environment.
People can emerge with different perceptions on the same object because of three
perceptual processes: selective attention, selective distortion, and selective retention.
Selective attention means that a marketer has to work hard to attract consumers’ notice.
Selective distortion is the tendency to twist information in a way that will fit one’s
preconceptions. Unfortunately, there is not much a marketer can do about selective
distortion.
In selective retention, people will forget much that they learn but will tend to
retain information that supports their attitudes and beliefs. Because of selective retention,
people are likely remember good points mentioned about a product they like and forget
good points mentioned about competing products (Berelson and Steiner, 1964). A
number of factors operate to shape and sometimes distort perception. These factors can
reside in the perceiver, in object, or target, or in the context of the situation which the
perception is made. When an individual looks at a target and attempts to interpret what he
sees, his personal characteristics heavily influence the interpretation. These personal
characteristics include attitudes, personality, motives, interest, past experiences, and
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expectations (Robbins, 1988). Individuals cannot assimilate all they observe, so they
engage into selectivity depending on the observer’s interests, background, experience,
and attitudes.
Quality and its Dimension
Quality is determined by a customer determination is based upon the customer’s
actual experience with product measured against the customer’s stated requirements
(Fiegenbaum, 1991). It does not necessarily mean best; quality means fitness for intended
purpose; it may also mean providing customers with products that consistently meet their
specifications. Customers that are in businesses will define quality very clearly using
specifications, standards and other measures. However, it is not just product quality that
is important; quality also describes the way in which suppliers go about meeting the
needs of their customers, providing the product on time, in the quantity required,
correctly packaged and correctly invoiced. Perceived quality therefore is a major factor
by which people make distinctions in the marketplace. Quality entails being responsive,
pro-active and reactive, and about being able to meet customer’s special request (Batt,
2005).
The fresh vegetables sector supply chain in the Philippines, the operation is
generally characterize as spot-markets or networks, hence the transactions involves the
interactions of chain actors in the market. These chain actors (farmers, assemblers,
trucker-wholesalers and retailers) may assume varied perceptions about quality. In most
cases, the physical quality of vegetables is given more importance while the other criteria
are sometimes overlooked. In the frame of this study is to examine the perceived quality
based on the selective retention perception concept (Robbin, 1988) and the descriptions
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and dimensions on quality as (Groonroos, 1990) - technical and functional quality; and
Parasuraman (1998) - the service quality defined.
Gronroos (1990) describes quality by differentiating it into two dimensions:
technical and functional. Technical quality describes the customer’s specifications. This
is a physical description of the product in terms of its size; shape; color; freedom from
pests and diseases; purity (in terms of its freedom from chemical contaminants,
pathogenic organisms and genetically modified plants); maturity or freshness; and the
manner in which the product is packed. Functional quality, on the other hand, describes
the way a supplier goes about delivering the product to the customer. Fundamentally, this
means being able to deliver the product when the customer wants it. By implications, it
involves many inter-related activities such as production, scheduling, storage and
warehousing, logistics, ordering and invoicing. Parasuraman (1998) introduced a third
dimension called service quality, which describes the extra things a supplier is willing to
do to retain customer’s business. While the exact meaning of the term “service” varies
with the nature of the product and the requirements of the buying organizations, service
may include such variables as providing technical assistance, innovative suggestions,
credit arrangements, support for special needs, or providing advance notice of impending
price changes or shortages in supply (Hutt and Speh, 1995).
Feder and Zilberman (1985) suggest that the major constraints to the adoption of a
new variety in a developing country include; the lack of credit, limited access to
information, the farmer's aversion to risk, inadequate farm size, inadequate incentives
(associated with land tenure), insufficient human capital, the absence of machinery to
relieve labor shortages, the chaotic supply of complementary inputs, and, poorly
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developed transportation infrastructure. However, in The Philippines, the availability of
quality seed at planting time may also influence the demand for seed. The lack of seed
often means that the farmer will be forced to plant whatever variety is available at that
time (Crissman, 1989).
Definition of Terms
Producer - the one who produces the commodity
Assembler - Wholesaler - they are the one who assemble the commodity to make
it in a large quantity.
Trucker - in charge of carrying the product to deliver it in the spot market
Wholesaler - refers to middleman who directly sells the commodity to retailers in
a wholesale price.
Retailer - individual who market/sell the commodity directly to the consumer
Bagsakan - local term for spot market where the transactions are done and where
products are being delivered
Spot market - place where products are being delivered and sold.
Abilities - this refers to the capability of the actors in the spot market in meeting
the quality requirements.
Inabilities - this refers to the incapability of the chain actors in the spot market in
meeting the quality requirements.
Perceived Quality - the expectation of buyers about the commodity
Dimension - parameters or indicators used in observation.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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Conceptual Framework
This study was focused on the flow of potato from Baguio City, La Trinidad
Benguet and to some part of Metro Manila in accordance with the different perception on
quality of the actors in the spot market chains.
Chain Actors
Farmers
Assembler-
Expected Output
Dimensions of
Wholesalers
Q
uality: Perception
Perceived quality criteria’s
Technical (Physical)
Trucker-Wholesalers
Perceived abilities
Service
Wholesaler-R etailers
Perceived inabilities
Functional
Various constraints
Wholesalers
Retailers
Figure 1. Conceptual framework
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METHODOLOGY
Locale and Time of the Study
As earlier ascribed, the research locations followed the geographic flow of potato
from the major source (production) to the major market assembly and collection, and the
distribution and retail markets. The research coverage areas are focused to selected
production and marketing areas.
The production group was identified and interviewed at the trading post. The
primary market (assembly/collection) is concentrated in La Trinidad, Benguet. Secondary
markets (distribution) are the major vegetables trading centers (commonly called
“bagsakan”) in Balintawak Market in Quezon City and UrdanetaCity, Pangasinan while
the tertiary markets include the retailers within these trading centers and other retail
market outlets like Novaliches, Nepa-Q Mart, Mega-Q Mart, and Kamuning.
The research was been conducted on November 2010 – January 2011.
Respondents of the Study
The respondents represent the major actors in the spot market chain. Specifically,
the target respondent was classified into four major groups as shown below.
Table 1. Classification and type of respondents
CLASSIFICATION
TYPE OF RESPONDENTS
Production
Vegetable farmers
Assembly/Collection
Assembler-wholesalers; Financier-assembler-wholesalers
Distribution
Trucker-wholesalers; wholesalers/wholesaler-retailers
Retailing
Retailers
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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The production group is composed of selected farmers producing potato. The next
group of respondents is the primary buyer representing the assembly/collection group
consists of assembler-wholesalers and the financier-assembler-wholesalers. Most of them
are operating at La Trinidad Vegetable Trading Post and in a privately owned and
managed trading facility. The third group is the distributors consist of the trucker-
wholesalers, wholesalers and wholesaler-retailers. The trucker-wholesaler respondents
are those responsible in the transportation and distribution of vegetables to various
geographic market outlets. The wholesalers and wholesaler-retailers, on the other hand,
are traders in the spot markets to whom the trucker-wholesalers supply the vegetables.
The last group is the retailers representing the last link in the marketing process. The
retailers sell the vegetables to ultimate users or consumers.
Table 2. Distribution of sample size according to respondent groups and locations
RESPONDENTS GROUP
TOTAL SAMPLE SIZE
Farmers
43
Assemblers/Collectors
Assembler-wholesalers
19
Financier-assembler-wholesalers
18
Distributors
Trucker-wholesalers
12
Wholesalers
10
Wholesaler-retailers
37
Retailers
54
TOTAL
193
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Data Gathering Procedure
Data collection of the study was obtained through interview schedule and
observation.
Data Gathered
The data collected was the perceived quality criteria such as perceived
technical/physical quality, functional quality and service quality, perceived abilities and
inabilities of chain actors and the various constraints to meet the quality requirements of
the potato buyers from the different markets.
Data Analysis
The data was tabulated in excell program and analyzed through the SPSS version
16. Frequency counts and percentage was used for descriptive analysis while Kruskall-
Wallis for statistical test.
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RESULTS AND DISCUSSION
Demographic Profile of Respondents
Table 3 presents the characteristics of the chain actors according to its age,
gender, marital status, religious affiliation and educational attainment.
Age. Majority of the farmers (40%) and retailers (39%) have the ages from 21-30
and 41-50 years old respectively. However, majority from the other group of respondents
ages from 31-40 years old. The results indicated that age is not a factor requisite to
engage in potato trading business.
Gender. Majority financier-assembler-wholesalers (72%), retailers (83%) and
wholesale-retailers (68%) are females. Therefore, the findings implied the differences in
the functions performed in the spot market chains.
Marital status. Most of the retailers (78%) farmers (67%) and wholesale-retailers
(78%) are married. It shows that married person engaged more in potato trading business.
Religious affiliation. Almost all retailers (87%), farmers (74%) and wholesale-
retailers (73%) are Catholic. Protestant also involved farmers (14%) and wholesale-
retailers (19%). It implies that Catholic is more involved in potato trading business.
Educational background. Most of the retailers (57%), farmers (42%) and
wholesale-retailers (46%) are high school graduate and under graduate. Followed by
retailers (19%) and farmers (30%) college graduate. Elementary graduate (28%) farmers
and retailers (19%) but some of the actors finished vocational courses, wholesale-retailers
(5%) and farmers (4%). Result means that actors are knowledgeable and have logistics on
potato trading business.
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Table 3. Demographic profile of respondents
CHARACTERISTICS
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING
FARMER
A-W
F-A-W
T-W
W
W-R
RETAILER
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
40
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
19
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
90 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
RELIGIOUS AFILLIATIO N
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 18 100 12 100 10 100 37 100
54
100
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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Number of Years Engaged in Business
Table 4 shows the number of years the actors engaged in potato trading business.
Most farmers (37%) have been engaged in potato trading business for the period 1-5
years and retailers for more than 5 years. It implies that actors need more experienced to
have adequate logistics in potato trading business.
Table 4. Number of years engaged in business
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING
YEARS
FARMER
A-W
F-A-W
T-W
W
W-R
RETAILER
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
5
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
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Organizational Affiliation of the Chain Actors
Table 5 shows the organizational affiliation of the chain actors. Joining into such
organization is very much helpful. Organizations can help you if you have problem but
you need also to help your organization for it will grow to help more. Every member
must help each other.
Majority of the retailers (87%) and farmers (91%) were not affiliated to any
organization. Some of the retailers (9%) and trucker-wholesalers (33%) have their
organization like cooperative. It implies that actors are not willing to join or there is no
established organization in their place
Potato Spot Market Chain
Figure 2 present the different buyer of potatoes from the producer to the end user.
It shows the product flow from the producers as it passes through the different market
intermediaries.
Majority of the buyers assembler-wholesalers where in they buy large quantity of
potato bought then resell it to the other chain actors through wholesale.
Table 5. Organizational affiliation of the chain actors
ORGANIZATION
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING
FARMER
A-W
F-A-W
T-W
W
W-R
RETAILER
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
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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
Figur
e 2. Spot market chain and location for potato
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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Almost of the retailer in Metro Manila buy their potatoes to the wholesale-
retailers in Balintawak for the price is lower than to the other markets. Consumer buys
potato to retailers, the buy only what they can consumed in 1-3 days for vegetable are
easily being wilt due to the hot temperature. Even if the consumer wants to buy many to
avail discount but they can’t for this reason: lack of cold storage equipment like
refrigerator/freezer and too high temperature.
Most of the farmer sold their potato in La Trinidad Vegetable Trading Post
(LTVLP). LTVTP is where most of the chain actors meet. It is the trading market of
farmers in Benguet. Chain actors come here to buy different vegetable at low price then
distribute it to the different markets of Metro Manila with high price. Most of the
wholesaler-retailer sells their potato in Nepa Q followed by retailers in Balintawak and
Nepa Q. Balintawak is one trading market in Metro Manila where other chain actors buy
potato and sell it to the other market.
Perceived Physical Quality of Potatoes
by Actors in the Spot Market Chains.
Table 6a shows the physical quality as perceived by buyers in choosing/buying of
potatoes, more specific to physical description of the product.
Majority of the trucker-wholesalers (58%) strongly agree that the potato procured
and sell are free from chemical residues. Most farmers (30%) have doubt and retailers
(11%) strongly disagree for it cannot easily determine if there are chemical residues.
Almost of the wholesalers (58%) strongly agree that the potatoes are free from
pest and diseases but wholesaler (10%) disagree on it.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 6a. Perceived Physical Quality of Potatoes by Actors in the Spot Market Chains.
STATEMENT
1
2
3
4
5
AVE.
N % N % N
% N % N
%
A. FARMER
1. Potatoes are free from chemical residue.
2
5
2
5
13
30
11
26
15
35
4
2. Potatoes are free from pests and diseases.
0
0 4
9
8 19 12 28 19 44
4
3. Variety, color and size of potatoes are specified.
1
2 4
9
6 14
8 19 24 56
4
4. Potatoes are free from physical injury.
0
0 1
2 14 33 12 28 16 37
4
5. Potatoes are fresh, clean and fully trimmed.
0
0 2
5
8 19
8 19 25 58
4
6. Potatoes are firm and crunchy.
0
0 0
0
6 14 13 30 24 56
4
B. ASSEMBLER-WHOLESALER
1. Potatoes are free from chemical residue.
1
5 1
5
3 16
6 32
8 42
4
2. Potatoes are free from pests and diseases.
0
0 1
5
2 11
3 16 13 68
5
3. Variety, color and size of potatoes are specified.
0
0 1
5
0
0
5 26 13 68
5
4. Potatoes are free from physical injury.
0
0 0
0
0
0
8 42 11 58
5
5. Potatoes are fresh, clean and fully trimmed.
0
0 0
0
2 11
5 26 12 63
5
6. Potatoes are firm and crunchy.
0
0 0
0
0
0
6 32 13 68
5
C. FINANCIER-ASSEMBLER-WHOLESALER
1. Potatoes are free from chemical residue.
1
6 3 17
5 28
3 17
6 33 4
2. Potatoes are free from pests and diseases.
1
6 2 11
5 28
3 17
7 39 4
3. Variety, color and size of potatoes are specified.
0
0 1
6
4 22
6 33
7 39 4
4. Potatoes are free from physical injury.
0
0 1
6
8 44
4 22
5 28 4
5. Potatoes are fresh, clean and fully trimmed.
0
0 2 11
3 17
5 28
8 44
4
6. Potatoes are firm and crunchy.
0
0 0
0
4 22
4 22 10 56
4
Numerical value and descriptive equivalent: 1-strongly disagree
2- moderately disagree
3- undecided
4- moderately agree
5- strongly disagree
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 6a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N % N % N
% N % N
%
D. TRUCKER-WHOLESALER
1. Potatoes are free from chemical residue.
1
8
0
0
2
17
2
17
7
58
4
2. Potatoes are free from pests and diseases.
0
0 0
0
1
8
3 25
8 67
5
3. Variety, color and size of potatoes are specified.
1
8 0
0
2 17
1
8
8 67
4
4. Potatoes are free from physical injury.
1
8 0
0
1
8
2 17
8 67
4
5. Potatoes are fresh, clean and fully trimmed.
0
0 1
8
0
0
1
8 10 83
5
6. Potatoes are firm and crunchy.
0
0 0
0
2 17
0
0 10 83
5
6. Potatoes are firm and crunchy.
0
0 0
0
3 30
2 20
5 50
47
E. WHOLESALER-RETAILER
1. Potatoes are free from chemical residue.
2
5 1
3
9 24 10 27 15 41
4
2. Potatoes are free from pests and diseases.
1
3 1
3
4 11 11 30 20 54
4
3. Variety, color and size of potatoes are specified.
1
3 0
0
2
5 12 32 22 60
5
4. Potatoes are free from physical injury.
1
3 3
8
5 14 13 35 15 41
4
5. Potatoes are fresh, clean and fully trimmed.
1
3 1
3
3
8 10 27 22 60
4
6. Potatoes are firm and crunchy.
0
0 0
0
4 11 17 46 16 43
4
F. RETAILER
1. Potatoes are free from chemical residue.
6 11 6 11
6 11 13 24 23 43
4
2. Potatoes are free from pests and diseases.
1
2 9 17
4
7
9 17 31 57
4
3.Variety, color and size of potatoes are specified.
6 11 1
2
8 15 13 24 26 48
4
4. Potatoes are free from physical injury.
3
6 4
7
7 13 13 24 27 50
4
5. Potatoes are fresh, clean and fully trimmed.
1
2 4
7
2
4 11 20 36 67
4
6. Potatoes are firm and crunchy.
1
2 3
6
3
6 12 22 35
6
4
While few financier-assembler-wholesalers are undecided for some supplier are
mixing up diseased potato most especially in the middle portion of packed potatoes.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Assembler-wholesalers strongly agree that the potatoes have specified according
to its variety, color and size. Some wholesalers have doubt while retailers (11%) disagree
for the reason that the potato they have procured contained different sizes.
Trucker-wholesalers said that the potatoes they sell are free from injury. But some
financier-assembler-wholesaler cannot decide on it for some injured potato cannot be
seen so it was mixed. Wholesaler (10%), wholesaler-retailer and retailer strongly disagree
on it.
Majority of the trucker-wholesalers (83%) strongly agree that the potato is fresh
for its freshness it is firm and crunchy. Some wholesaler (30%) undecided if the potatoes
are firm and crunchy for some potatoes have been displayed in the sun so it is not that
crunchy. One retailer doesn’t agree with it.
Table 6b on the overall, chain actors moderately agree to all the statements about
the perceived physical quality. Most especially chain actors believed that the potato being
produced/procured are clean, fully trimmed and fresh for its freshness the potatoes are
firm and crunchy. Before the chain actors procure potato they select it with good quality
that they know it will satisfy the perception of the buyer. Statistical test was done
purposely to validate the descriptive results.
Most of the chain actors prioritized that the potato they procure and sell has been
specified according to variety, color and size for before buying they choose the right
potato that suits the perceived physical quality of the buyer. All the responses of the chain
actors have no significant difference wherein the chain actors have the same perceived
physical quality.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 6b. Physical quality statistical means and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
PRODUCT QUALITY STATEMENTS
MEAN
SQUARE
FREEDOM
SIGNIFICANCE
1. Potatoes are free from chemical residue.
3.88
2.45
3
0.484
2. Potatoes are free from pests and diseases.
4.16
1.22
3
0.749
3. Variety, color and size of potatoes are specified.
4.21
3.85
3
0.278
4. Potatoes are free from physical injury.
4.05
1.55
3
0.670
5. Potatoes are fresh, clean and fully trimmed.
4.36
1.27
3
0.737
6. Potatoes are firm and crunchy.
4.41
0.56
3
0.905
respondents group
2.64
Scale used: 1-1.8- strongly disagree
1.9-2.7- moderately disagree
2.8-3.5- undecided
3.6-4.3- moderately agree
4.4-5- strongly agree
The findings confirm the Gronroos (1990) Technical quality describes the
customer’s specifications. This is a physical description of the product in terms of its
size; shape; color and the manner in which the product is packed.
Percieved Service Quality of Potato
by actors in the Spot Market Chains
Table 7a shows the service quality of potato as perceived by actors as basis of
buyers in choosing/buying. Service quality is the additional requirement a supplier is
willing to do to retain customer business.
Majority of the trucker-wholesalers (42%) strongly agree that they extend credit
term to their buyer most especially to their regular customer. Few financier-assembler-
wholesalers (28%) are undecided for some of their buyer will not pay it anymore and
some wholesalers disagree to extend credit terms.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 7a. Percieved Service Quality of Potato by actors in the Spot Market Chains
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
A. FARMER
1. Supplier (seller) extends credit term to
buyers of potatoes.
11 26
9 21 10 23
5
12
8 19
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
13 30
7 16 12 28
3
7
8 19
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
6 14 10 23
6 14
8
19 13 30
3
4. Supplier exerts effort to produce/procure
potatoes ordered.
2
5
7 16 10
2
7
16 17 40
4
5. Supplier extends support services
(comboys, packing) to the buyer in the
delivery of potatoes.
10 23
9 21
9 21 11
26
4
9
3
6. Supplier has adequate logistics (facilities,
equipments, and workforce) in trading the
potatoes.
3
7 19 44 10 23
9
21
2
5
3
B. ASSEMBLER-WHOLESALER
1. Supplier (seller) extends credit term to
buyers of potatoes.
4 21
2 11
2 11
7
37
4 21
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
4 21
3 16
3 16
7
37
2 11
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
0
0
3 16
1
5
8
42
7 37
4
4. Supplier exerts effort to produce/procure
potatoes ordered.
0
0
1
5
6 32
6
32
6 32
4
5. Supplier extends support services
(comboys, packing) to the buyer in the
delivery of potatoes.
0
0
3 16
8 42
5
26
3 16
3
6. Supplier has adequate logistics (facilities,
equipments, and workforce) in trading the
1
6
2 11
7 37
5
26
4 21
4
potatoes.
Numerical value and descriptive equivalent: 1-strongly disagree
2- moderately disagree
3- undecided
4- moderately agree
5- strongly disagree
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 7a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
C. FINANCIER-ASSEMBLER-WHOLESALER
1. Supplier (seller) extends credit term to
buyers of potatoes.
4 22
2 11
5 28
2
11
5 28
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
7 39
1
6
4 22
3
17
3 17
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
1
6
3 17
4 22
1
6
9 50
4
4. Supplier exerts effort to produce/procure
potatoes ordered.
1
6
3 17
2 11
4
22
8 44
4
5. Supplier extends support services
(comboys, packing) to the buyer in the
delivery of potatoes.
2 11
1
6
5 28
5
28
5 28
4
6. Supplier has adequate logistics (facilities,
equipments, and workforce) in trading the
potatoes.
2 11
2 11
2 11
8
44
4 22
4
D. TRUCKER-WHOLESALER
1. Supplier (seller) extends credit term to
buyers of potatoes.
2 17
2 17
2
17
1
8
5 42
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
3 25
3 25
1
8
4 33
1
8
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
1
8
1
8
0
0
3 25
7 58
4
4. Supplier exerts effort to produce/procure
potatoes ordered.
0
0
0
0
1
8
1
8 10 83
5
5. Supplier extends support services
(comboys, packing) to the buyer in the
delivery of potatoes.
3 25
0
0
1
8
2 17
6 50
4
6. Supplier has adequate logistics (facilities,
equipments, and workforce) in trading the
potatoes.
0
0
1
8
3
25
4 33
4 33
4
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 7a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
E. WHOLESALER
1. Supplier (seller) extends credit term to
buyers of potatoes.
3 30
2 20
2
20
1 10
2 20
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
4 40
4 40
0
0
1 10
1 10
2
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
2 20
1 10
3
30
1 10
3 30
3
4. Supplier exerts effort to produce/procure
potatoes ordered.
1 10
0
0
1
10
1 10
7 70
4
5. Supplier extends support services
(comboys, packing) to the buyer in the
delivery of potatoes.
3 30
0
0
2
20
3 30
2 20
3
6. Supplier has adequate logistics (facilities,
equipments, and workforce) in trading the
potatoes.
2 20
2 20
3
30
2 20
1 10
3
F. WHOLESALER-RETAILER
1. Supplier (seller) extends credit term to
buyers of potatoes.
3
8
4 11
5
14 11 30 14 38
4
2. Supplier has an outstanding loan/cash
advance from the buyer.
8 22
6 16
7
19
8 22
8 22
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
2
5
4 11
3
8 13 35 15 41
4
4. Supplier exerts effort to produce/procure
potatoes ordered.
1
3
1
3
8
22
8 22 19 51
4
5. Supplier extends support services
(comboys, packing) to the buyer in the
delivery of potatoes.
5 14
2
5 10
27 12 32
8 22
3
6. Supplier has adequate logistics in trading
the potatoes.
1
3
8 22 10
27 15 45
3
8
4
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 7a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
G. RETAILER
1. Supplier (seller) extends credit term to
buyers of potatoes.
15 28
5
9
8 15 16 30 10 19
3
2. Supplier has an outstanding loan/cash
advance from the buyer.
21 39
6 11 12 22 10 19
5
9
3
3. Supplier gives notice to the buyers about
supply shortage and the price changes.
14 26
8 15
7 13 11 20 14 26
3
4. Supplier exerts effort to produce/procure
potatoes ordered.
13 24
4
7
7 13 13 24 17 32
3
5. Supplier extends support services
(comboys, packing) to the buyer in the
delivery of potatoes.
25 46
5
9
6 11 10 19
8 15
3
6. Supplier has adequate logistics (facilities,
equipments, and workforce) in trading the
potatoes.
14 26 16 30 11 20
9 17
4
7
3
Many Wholesale-retailers (22%) strongly agree that they have an outstanding
loan/cash advance from the buyer but some farmers are undecided on it and wholesalers
(40%) strongly disagree that they have an outstanding cash/loan advanced from the
buyer.
Most of the trucker-wholesalers (50%) strongly agree that the supplier should
give notice to the buyers about supply shortage and price changes or anything that might
affect the said product. Few wholesalers (30%) don’t know if their supplier will give any
notice or not. Majority of the retailers (26%) strongly disagree for the reason that they
don’t know if there is any changes.
Almost all of the Trucker-wholesalers (83%) strongly agree that the supplier exert
effort to produce/procure ordered potato to have many buyers and to have a good
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
relationship. Some of the assembler-wholesalers (32%) cannot decide and most of the
retailer doesn’t agree on it.
Almost all of wholesalers (50%) strongly agree that supplier extends support
services (comboys, packing) to the buyer in the delivery of potatoes and majority of the
assembler-wholesalers (42%) cannot decide if suppliers will extend credit. Majority of
the retailers strongly disagree on it for they buy only low quantity of potato.
Majority of trucker-wholesalers (33%) strongly agree that the supplier has
adequate logistics most likely on their facilities or equipments. Assembler-wholesalers
(37%) cannot decide if they have the adequate logistics in trading potato but most of the
retailer disagree that they have appropriate facility/equipments.
Table 7b All the chain actors are undecided to all the statements about their
perceived service quality. Chain actors cannot decide if their supplier has adequate
logistics (facilities/equipments and workforce) in trading potatoes. Also if their supplier
are willing to exert effort like “comboy” and packing for they will packed and deliver the
potatoes procured if they will be given extra tips also if they place to be delivered is near.
The chain actors have significant difference that the supplier gives notice about supply
and demand if the price of potato will changed; does the supplier exerting efforts to fulfill
the orders of their buyers and will extend support services of the ordered potato by
delivering and packing. Most of all, the supplier has the proper facilities/equipments and
enough workforce in trading the potatoes.
Findings confirmed the Parasuraman (1998) service includes providing technical
assistance, support for special needs, or providing advance notice of impending price
changes or shortages in supply.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 7b. Service quality statistical mean and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
SERVICE QUALITY STATEMENT
MEAN SQUARE
FREEDOM
SIGNIFICANCE
1. Supplier (seller) extends credit term to buyers of
potatoes.
3.16
6.18
3
0.103
2. Supplier has an outstanding loan/cash advance
from the buyer.
2.72
1.61
3
0.657
3. Supplier gives notice to the buyers about supply
shortage and the price changes.
3.53
9.93
3
0.019*
4. Supplier exerts effort to produce/procure potatoes
ordered.
3.79
16.97
3
0.001*
5. Supplier extends support services (comboys,
packing) to the buyer in the delivery of potatoes.
3.04
14.73
3
0.002*
6. Supplier has adequate logistics (facilities,
equipments, and workforce) in trading the potatoes.
3.03
20.31
3
0.000**
respondents group
2.64
Scale used: 1-1.8- strongly disagree
*significant
1.9-2.7- moderately disagree **highly significant
2.8-3.5- undecided
3.6-4.3- moderately agree
4.4-5- strongly agree
Percieved Functional Quality of Potato
by Actors in the Spot Market Chain
Table 8a shows the functional quality perceived by actors as basis of buyers in
choosing/buying potato. Functional quality is the process of delivering the product to
customer.
Majority of the trucker-wholesalers (50%) strongly agree that they adhere to
production/procurement/delivery targets but some of the assembler-wholesalers are
undecided if they are adhering to the targets. Some of the farmers said that they cannot
really fulfill the production targets.
Trucker-wholesalers are classifying/grading the potatoes properly to have a good
business but two trucker-wholesalers disagree with it and some of the financier-
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 8a. Percieved functional quality of potato by actors in the spot market chain
STATEMENT
1
2
3
4
5
AVE.
N
% N
%
N
%
N
%
N
%
A. FARMER
1.
Supplier
(seller)
adheres
to
production/procurement/delivery targets.
6 14
8
19
9 21 13 30
7 16
3
2. Supplier classifies/grades the potatoes
properly.
7 16
5
12
10 23
7 16
14 33
3
3. Supplier accurately weighed and packed
the potatoes.
9 21
5
12
9 21
5 12
15 35
3
4. Supplier has adequate supply of potatoes
when the buyers want it.
1
2 13
30
19 44
6 14
4
9
3
5. Supplier accepts orders and delivers the
potatoes when needed.
13 30
9
21
7 16
8 19
6 14
3
6. Supplier is flexible in pricing the potatoes
and accepts payment term.
4
9
9
21
16 37 11 26
3
7
3
B. ASSEMBLER-WHOLESALER
1.
Supplier
(seller)
adheres
to
production/procurement/delivery targets.
1
5
0
0
7 37
8 42
3 16
4
2. Supplier classifies/grades the potatoes
properly.
0
0
3
16
5 26
4 21
7 37
4
3. Supplier accurately weighed and packed
the potatoes.
0
0
1
5
4 21
7 37
7 37
4
4. Supplier has adequate supply of potatoes
when the buyers want it.
0
0
2
11
3 16
8 42
6 32
4
5. Supplier accepts orders and delivers the
potatoes when needed.
0
0
2
11
3 16
7 37
7 37
4
6. Supplier is flexible in pricing the potatoes
and accepts payment term.
0
0
1
5
3 16
8 42
7 37
4
Numerical value and descriptive equivalent: 1-strongly disagree
2- moderately disagree
3- undecided
4- moderately agree
5- strongly disagree
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 8a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
% N
%
N
%
N
%
N
%
C. FINANCIER-ASSEMBLER-WHOLESALER
1.
Supplier
(seller)
adheres
to
production/procurement/delivery targets.
0
0
3
17
2 11
7 39
6 33
4
2. Supplier classifies/grades the potatoes
properly.
1
6
1
6
5 28
6 33
5 28
4
3. Supplier accurately weighed and packed
the potatoes.
0
0
1
6
5 28
5 28
7 39
4
4. Supplier has adequate supply of potatoes
when the buyers want it.
0
0
2
11
3 17
5 28
8 44
4
5. Supplier accepts orders and delivers the
potatoes when needed.
1
6
1
6
4 22
3 17
9 50
4
6. Supplier is flexible in pricing the potatoes
and accepts payment term.
1
6
0
0
5 28
5 28
7 39
4
D. TRUCKER-WHOLESALER
1.
Supplier
(seller)
adheres
to
production/procurement/delivery targets.
0
0
0
0
1
8
5 42
6 50
4
2. Supplier classifies/grades the potatoes
properly.
2 17
0
0
0
0
2 12
8 67
4
3. Supplier accurately weighed and packed
the potatoes.
0
0
0
0
1
8
4 33
7 58
5
4. Supplier has adequate supply of potatoes
when the buyers want it.
0
0
0
0
1
8
5 42
6 50
4
5. Supplier accepts orders and delivers the
potatoes when needed.
0
0
0
0
2 17
3 25
7 58
4
6. Supplier is flexible in pricing the potatoes
and accepts payment term.
0
0
0
0
0
0
4 33
8 67
5
E. WHOLESALER
1.
Supplier
(seller)
adheres
to
production/procurement/delivery targets.
1 10
0
0
1 10
5 50
3 30
4
2. Supplier classifies/grades the potatoes
properly.
1 10
1
10
1 10
2 20
5 50
4
3. Supplier accurately weighed and packed
the potatoes.
1 10
0
0
2 20
2 20
5 50
4
4. Supplier has adequate supply of potatoes
when the buyers want it.
0
0
0
0
3 30
5 50
2 20
4
5. Supplier accepts orders and delivers the
potatoes when needed.
0
0
0
0
2 20
2 20
6 60
4
6. Supplier is flexible in pricing the potatoes
and accepts payment term.
0
0
0
0
4 40
2 20
4 40
4
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 8a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
% N
%
N
%
N
%
N
%
F. WHOLESALER-RETAILER
1.Supplier
(seller)
adheres
to
production/procurement/delivery targets.
0
0
3
8
6 16 14 38
14 38
4
2. Supplier classifies/grades the potatoes
properly.
3
8
2
5
4 11 15 41
13 35
4
3. Supplier accurately weighed and packed
the potatoes.
2
5
1
3
4 11 13 35
17 46
4
4. Supplier has adequate supply of potatoes
when the buyers want it.
0
0
1
3
8 22 12 32
16 43
4
5. Supplier accepts orders and delivers the
potatoes when needed.
1
3
0
0
8 22 14 38
14 38
4
6. Supplier is flexible in pricing the potatoes
and accepts payment term.
1
3
0
0
6 16 15 41
15 41
4
G. RETAILER
1.
Supplier
(seller)
adheres
to
production/procurement/delivery targets.
5
9
9
17
10 19 21 39
9 17
4
2. Supplier classifies/grades the potatoes
properly.
3
6
5
9
11 20 20 37
15 28
4
3. Supplier accurately weighed and packed
the potatoes.
2
4
6
11
6 11 19 35
21 39
4
4. Supplier has adequate supply of potatoes
when the buyers want it.
1
2
5
9
15 28 19 35
14 26
4
5. Supplier accepts orders and delivers the
potatoes when needed.
5
9
8
15
12 22 15 28
14 26
4
6. Supplier is flexible in pricing the potatoes
and accepts payment term.
3
6
4
7
9 17 18 33
20 37
3
assembler-wholesalers have doubt in it for what they procure is what they sell and they
are not repacking the procured potatoes.
Majority of the trucker-wholesalers (58%) strongly agree that they accurately
weighed and packed the potatoes. Few financier-assembler-wholesalers don’t know if the
supplier really weighed and packed the potatoes accurately. Nine farmers don’t agree for
some suppliers don’t weigh properly to gain more income.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Majority of the trucker-wholesaler (50%) strongly agree that supplier has
adequate supply of potato when buyers want. Almost all farmers are undecided for they
are dependent on the size of their farm. One retailer disagrees for it can’t provide the
proper supply of potato.
The wholesalers (60%) strongly agree that the supplier should accept orders and
deliver it when needed for buyer don’t have time to purchase so they prefer to order.
Twelve retailers cannot decide if they will accept orders for retailers don’t have enough
capital to acquire large quantity. Farmers disagree for their supplier will procure their
potato.
Majority of the retailer (37%) strongly agree that they are flexible in pricing the
potatoes, both of the seller and buyer will not incur loss. Some wholesaler cannot decide
whether the supplier is flexible or fair enough in pricing the potato for sometimes they
price it higher than the exact price also some famers disagree for their buyers will dictate
the price.
Table 8b shows that the chain actors moderately agree on the process of the
supplier in delivering the potato to the buyer. The chain actors believed that their supplier
weighed and packed properly the potatoes they are not cheating in such a way that they
reduced the desired weight. The price is flexible in the case that both buyer and seller will
not incur loss. The supplier accepts payments terms to their regular buyer or customer.
The responses of the chain actors have significant difference in the following statements:
the supplier adhere production/procurement/delivery targets, the potatoes are weighed
and packed properly with a negotiated price. The supplier has adequate supply so they
can fulfill the orders and deliver it when needed by buyer.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 8b. Funtional quality statistical mean and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
FUNCTIONAL QUALITY STATEMENT
MEAN
SQUARE
FREEDOM
SIGNIFICANCE
1.
Supplier
(seller)
adheres
to
production/procurement/delivery targets.
3.62
17.33
3
0.001*
2. Supplier classifies/grades the potatoes
properly.
3.72
4.89
3
0.180
3. Supplier accurately weighed and packed the
potatoes.
3.88
8.53
3
0.036*
4. Supplier has adequate supply of potatoes when
the buyers want it.
3.76
34.46
3
0.000**
5. Supplier accepts orders and delivers the
potatoes when needed.
3.61
33.92
3
0.000**
6. Supplier is flexible in pricing the potatoes and
accepts payment term.
3.82
34.45
3
0.000**
respondents group
2.64
Scale used: 1-1.8- strongly disagree
*significant
1.9-2.7- moderately disagree **highly significant
2.8-3.5- undecided
3.6-4.3- moderately agree
4.4-5- strongly agree
Findings supported the Gronroos (1990) functional quality, the way a supplier
goes about delivering the product to the customer, being able to deliver the product when
the customer wants it. It involves many inter-related activities such as production,
scheduling, storage and warehousing, logistics, ordering and invoicing.
Percieved Abilities of Actors to Meet
the Buyers Quality Requirements of Potato.
Table 9a present the perceptions of actors about their abilities to meet the criteria
used by market intermediaries in purchasing potato. Abilities refer to the capabilities of
the actors in the spot market in meeting quality requirement.
Most assembler-wholesalers (58%) strongly agree that they appropriately classify,
weighed and packed the potatoes they sell but some financier-assembler-wholesalers are
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 9a. Percieved abilities of actors to meet the buyers quality requirements of potato.
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
A. FARMER
1. I appropriately classified, weighed and packed
the potatoes I sold.
8 19
4
9
8 19
7
16 16
37
3
2. I sell/buy potatoes at a negotiated price.
5 12
3
7 15 35 13
30
7
16
3
3. I deliver when required.
13 30
6 14 15 35
6
14
3
7
3
4. I buy potatoes free from pest and diseases,
physical injury and chemical residues.
8 19
9 21
4
9 14
33
8
19
3
5. I usually buy potatoes which are fresh, clean,
firm/crunchy and fully trimmed.
9 21
4
9
8 19 12
28 10
23
3
6. I buy potatoes from sellers with good
reputation.
9 21
8 19
8 19 11
26
7
16
3
7. I buy adequate volume of potatoes to meet
immediate demand.
10 23
9 21 14 33
5
12
5
12
3
8. I have adequate logistics to buy potatoes.
7 16 15 35 13 30
5
12
3
7
3
B. ASSEMBLER-WHOLESALER
1. I appropriately classified, weighed and packed
the potatoes I sold.
1
5
3 16
2 11
2
11 11
58
4
2. I sell/buy potatoes at a negotiated price.
0
0
0
0
4 21
6
32
9
47
4
3. I deliver when required.
0
0
3 16
5 26
3
16
8
42
4
4. I buy potatoes free from pest and diseases,
physical injury and chemical residues.
1
5
4 21
2 11
3
16
9
47
4
5. I usually buy potatoes which are fresh, clean,
firm/crunchy and fully trimmed.
0
0
3 16
0
0
2
11 14
74
4
6. I buy potatoes from sellers with good
reputation.
0
0
0
0
6 32
3
16 10
53
4
7. I buy adequate volume of potatoes to meet
immediate demand.
0
0
0
0
3 16
9
47
7
37
4
8. I have adequate logistics to buy potatoes.
0
0
3 16
3 16
9 477
4
21
4
Numerical value and descriptive equivalent: 1-strongly disagree
2- moderately disagree
3- undecided
4- moderately agree
5- strongly disagree
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 9a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
C. FINANCIER-ASSEMBLER-WHOLESALER
1. I appropriately classified, weighed and packed
the potatoes I sold.
0
0
2 11
5 28
3
17
8
44
4
2. I sell/buy potatoes at a negotiated price.
0
0
1
6
3 17
6
33
8
44
4
3. I deliver when required.
1
6
2 11
4 22
6
33
5
28
4
4. I buy potatoes free from pest and diseases,
physical injury and chemical residues.
1
6
2 11
6 33
3
17
6
33
4
5. I usually buy potatoes which are fresh, clean,
firm/crunchy and fully trimmed.
1
6
1
6
6 33
4
22
6
33
4
6. I buy potatoes from sellers with good
reputation.
0
0
5 28
4 22
5
28
4
22
3
7. I buy adequate volume of potatoes to meet
immediate demand.
0
0
3 17
3 17
5
28
7
39
4
8. I have adequate logistics to buy potatoes.
0
0
3 17
3 17 10
56
2
11
4
D. TRUCKER-WHOLESALER
1. I appropriately classified, weighed and packed
the potatoes I sold.
0
0
0
0
1
8
5 42
6
50
4
2. I sell/buy potatoes at a negotiated price.
0
0
0
0
1
8
5 42
6
50
4
3. I deliver when required.
3 25
0
0
2 17
3 25
4
33
3
4. I buy potatoes free from pest and diseases,
physical injury and chemical residues.
0
0
1
8
3 25
2 17
6
50
4
5. I usually buy potatoes which are fresh, clean,
firm/crunchy and fully trimmed.
0
0
0
0
1
8
2 17
9
75
5
6. I buy potatoes from sellers with good
reputation.
0
0
0
0
4 33
4 33
4
33
4
7. I buy adequate volume of potatoes to meet
immediate demand.
0
0
0
0
3 25
3 25
6
50
4
8. I have adequate logistics to buy potatoes.
0
0
1
8
2 17
6 50
3
25
4
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 9a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
E. WHOLESALER
1. I appropriately classified, weighed and packed
the potatoes I sold.
3 30
0
0
0
0
2 20
5
50
4
2. I sell/buy potatoes at a negotiated price.
0
0
0
0
2 20
2 20
6
60
4
3. I deliver when required.
1 10
1 10
2 20
1 10
5
50
4
4. I buy potatoes free from pest and diseases,
physical injury and chemical residues.
0
0
0
0
2 20
4 40
4
40
4
5. I usually buy potatoes which are fresh, clean,
firm/crunchy and fully trimmed.
1 10
0
0
2 20
1 10
6
60
4
6. I buy potatoes from sellers with good
reputation.
1 10
0
0
2 20
4 40
3
30
4
7. I buy adequate volume of potatoes to meet
immediate demand.
0
0
1 10
2 20
4 40
3
30
4
8. I have adequate logistics to buy potatoes.
1 10
0
0
5 50
3 30
1
10
3
F. WHOLESALE-RETAILER
1. I appropriately classified, weighed and packed
the potatoes I sold.
0
0
3
8
4 11 11 30
19
51
4
2. I sell/buy potatoes at a negotiated price.
0
0
1
3
3
8
7 19
26
70
5
3. I deliver when required.
6 16
1
3 10 27
7 19
13
35
4
4. I buy potatoes free from pest and diseases,
physical injury and chemical residues.
0
0
1
3
5 14 17 46
14
38
4
5. I usually buy potatoes which are fresh, clean,
firm/crunchy and fully trimmed.
0
0
0
0
2
5 18 49
17
46
4
6. I buy potatoes from sellers with good
reputation.
0
0
1
3 11 30 10 27
15
41
4
7. I buy adequate volume of potatoes to meet
immediate demand.
0
0
1
3
6 16 12 32
18
49
4
8. I have adequate logistics to buy potatoes.
3
8
4 11
8 22 16 43
6
16
4
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 9a. Continued . . .
STATEMENT
1
2
3
4
5
AVE.
N
%
N
%
N
%
N
%
N
%
G. RETAILER
1. I appropriately classified, weighed and packed
the potatoes I sold.
1
2
5
9
7 13 14 26
27
50
4
2. I sell/buy potatoes at a negotiated price.
1
2
2
4
6 11 25 46
20
37
4
3. I deliver when required.
16 30
7 13 11 20 13 24
7
13
3
4. I buy potatoes free from pest and diseases,
physical injury and chemical residues.
2
4
9 17
8 15 14 26
21
39
4
5. I usually buy potatoes which are fresh, clean,
firm/crunchy and fully trimmed.
1
2
5
9 10 19 16 30
22
41
4
6. I buy potatoes from sellers with good
reputation.
1
2
9 17 12 22 17 32
15
28
4
7. I buy adequate volume of potatoes to meet
immediate demand.
3
6 10 19 12 22 17 32
12
22
4
8. I have adequate logistics to buy potatoes.
15 28 13 24 12 22 10 19
4
7
3
undecided if they are doing it properly. Three wholesalers are disagrees for the potato
they procured has been packed and they have no time to repacked and classify it again.
Almost all wholesaler-retailers (70%) strongly agree that they buy and sell
potatoes at a negotiated price or market prevailing price but the farmers cannot decide
and disagreed about their price for the seller and buyer will decide.
Majority of the wholesalers delivers the bought potato when required or to as
requested by the buyer. Farmers go directly to the trading market and some farmers wait
for their buyers at to their farm.
Assembler-wholesalers procure and sell potatoes which are free from pest and
diseases, physical injury and chemical residues. Six financier-assembler-wholesalers have
doubt to other suppliers for they mix injured potato which is not unseen directly and few
farmers disagree for sometimes they cannot avoid that they have packed injured potatoes.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Assembler-wholesalers (74%) strongly agree that the potato they buy and sell are
fresh, clean, firm/crunchy and fully trimmed. Some financier-assembler-wholesalers
cannot decide if the potato they procure is fresh or it has been stock for few many days.
Other farmers don’t clean properly the potatoes they produced.
Majority of the assembler-wholesalers procure potato to their supplier that is
reputable enough to change any damage potato if possible and some assembler-
wholesalers have doubt to their supplier. Some farmers disagree about their financier or
supplier if they are reputable.
Trucker-wholesalers mostly buy adequate potatoes to meet the immediate demand
of their buyer. Farmers do only depend on what they have harvested and undecided if
they can produce what is dictated by the demand and some of the farmers disagree that
they can produce adequate volume of potato.
Trucker-wholesalers strongly agree that they have the logistics to procure potato
most especially based on their perceptions. Some financier-assembler-wholesaler has
doubt to their selves if they have knowledge on their business. Majority of the retailer
don’t have the logistics in buying potatoes.
Table 9b overall chain actors are moderately agree that the chain actors
appropriately classify, weighed and packed the potatoes they sold. Chain actors are fair
enough to the buyer to avoid misunderstanding. Chain actors buy fresh, firm, crunchy and
fully trimmed potatoes. The responses of the chain actors have significant difference.
Chain actors buy/sell fresh potatoes from reputable supplier that is free from any
damages and at a negotiated price. Chain actors have adequate volume of potato and
logistic. Chain actors deliver the bought potatoes to as requested by the buyer.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 9b. Percieved abilities statistical mean and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
PERCIEVED ABILITIES STATEMENT
MEAN
SQUARE
FREEDOM
SIGNIFICANCE
1. I appropriately classified, weighed and packed the
vegetables I sold.
3.96
6.57
3
0.087
2. I sell/buy vegetables at a negotiated price.
4.08
32.95
3
0.000**
3. I deliver when required.
3.17
21.88
3
‘0.000**
4. I buy vegetables free from pest and diseases,
physical injury and chemical residues.
3.72
14.51
3
0.002*
5. I usually buy vegetables which are fresh, clean,
firm/crunchy and fully trimmed.
3.94
20.79
3
0.001*
6. I buy vegetables from sellers with good reputation.
3.69
15.55
3
0.001*
7. I buy adequate volume of vegetables to meet
immediate demand.
3.59
41.4
3
0.000**
8. I have adequate logistics to buy vegetables.
3.13
28.86
3
0.000**
respondents group
2.64
Scale used: 1-1.8- strongly disagree
*significant
1.9-2.7- moderately disagree **highly significant
2.8-3.5- undecided
3.6-4.3- moderately agree
4.4-5- strongly agree
Percieved Inabilities of Actors to Meet
the Buyers Quality Requirements of Potato.
Table 10a shows the perceptions of actors about their abilities to meet the market
intermediary need. Inabilities are the incapability’s of the actors in the spot market in
meeting quality requirement of potato.
Majority of the wholesalers (28%) strongly agree that they are dependent on the
quality/quantity of potatoes procured but one wholesaler strongly disagree with it. Some
farmers are undecided if they are depending on the quality/quantity of potato.
Retailers of potato in Metro Manila have insufficient capital to procure potato
wherein they only sell small quantity of potato. Some of the wholesaler-retailers cannot
decide whether they have enough capital.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 10a. Percieved inabilities of actors to meet the buyers quality requirements of
potato.
STATEMENT
1
2
3
4
5
AVE
N %
N
%
N
%
N
%
N
%
A. FARMER
1. I am dependent on the quality/quantity
of potatoes I produced/procured.
0
0
1
2
15
35 15 35 12 28
4
2. I have insufficient capital
to produce/procure potatoes.
2
5 15 35
11
26 11 26
4
9
3
3. I have limited control on
the quality/quantity of potatoes
I produced/procured and sold.
4
9 14 33
10
23 13 30
2
5
3
4. I largely depend from the prevailing
market price.
4
9
6 14
11
26 13 30
9 21
3
B. ASSEMBLER-WHOLESALER
1. I am dependent on the quality/quantity
of potatoes I produced/procured.
0
0
1
5
5
26
5 26
8 42
4
2. I have insufficient capital
to produce/procure potatoes.
3 16
5 26
4
21
6 32
1
5
3
3. I have limited control on
the quality/quantity of potatoes
I produced/procured and sold.
2 11
3 16
5
26
6 32
3 16
3
4. I largely depend from the prevailing
market price.
0
0
1
5
13
68
1
5
4 21
3
C. FINANCIER-ASSEMBLER-WHOLESALER
1. I am dependent on the quality/quantity
of potatoes I produced/procured.
1
6
1
6
2
11
9 50
5 28
4
2. I have insufficient capital
to produce/procure potatoes.
3 17
2 11
4
22
7 39
2 11
3
3. I have limited control on
the quality/quantity of potatoes
I produced/procured and sold.
0
0
6 33
6
33
5 28
1
6
3
4. I largely depend from the prevailing
market price.
1
6
0
0
7
39
5 28
5 28
4
Numerical value and descriptive equivalent: 1-strongly disagree
2- moderately disagree
3- undecided
4- moderately agree
5- strongly disagree
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 10a. Continued . . .
STATEMENT
1
2
3
4
5
AVE
N %
N
%
N
%
N
%
N
%
D. TRUCKER-WHOLESALER
1. I am dependent on the quality/quantity
of potatoes I produced/procured.
0
0
0
0
1
8
4 33
7
58
5
2. I have insufficient capital
to produce/procure potatoes.
3 25
4 33
3
25
2 17
0
0
2
3. I have limited control on
the quality/quantity of potatoes
I produced/procured and sold.
1
8
3 25
3
25
3 25
2
17
3
4. I largely depend from the prevailing
market price.
2 17
1
8
3
25
3 25
3
25
3
E. WHOLESALER
1. I am dependent on the quality/quantity
of potatoes I produced/procured.
1 10
1 10
1
10
1 10
6 60
4
2. I have insufficient capital
to produce/procure potatoes.
4 40
1 10
2
20
1 10
2 20
3
3. I have limited control on
the quality/quantity of potatoes
I produced/procured and sold.
3 30
1 10
1
10
3 30
2 20
3
4. I largely depend from the prevailing
market price.
0
0
1 10
4
40
1 10
4 40
4
F. WHOLESALER-RETAILER
1. I am dependent on the quality/quantity
of potatoes I produced/procured.
0
0
2
5
6
16
9 24 20 54
4
2. I have insufficient capital
to produce/procure potatoes.
8 22
7 19
10
27
6 16
6 16
3
3. I have limited control on
the quality/quantity of potatoes
I produced/procured and sold.
2
5
9 24
11
30
6 16
9 24
3
4. I largely depend from the prevailing
market price.
1
3
6 16
9
24
8 22 13 35
4
G. RETAILER
1. I am dependent on the quality/quantity
of potatoes I produced/procured.
2
4
1
2
6
11 19 35 26 48
4
2. I have insufficient capital
to produce/procure potatoes.
6 11 11 20
6
11 14 26 17 32
4
3. I have limited control on
the quality/quantity of potatoes
I produced/procured and sold.
4
7 13 24
8
15 11 20 18 33
4
4. I largely depend from the prevailing
market price.
2
4
6 11
13
24 15 28 18 33
4
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Wholesalers disagree for they have sufficient capital to procure large quantity of potato to
meet immediate demand.
Most retailers (33%) strongly agree that they have limited control on the
quality/quantity of potato being procured. Majority of the financier-assembler-
wholesalers have doubt if the procured potatoes have good quality. Two wholesalers
disagree for they don’t have the power to control.
Majority of wholesaler (40%) strongly agree that they largely depend on the
market prevailing price but some wholesalers have doubt if they will follow the price or
increase. One trucker-wholesaler disagrees to follow the market prevailing price.
Table 10b overall, the chain actors moderately agree that they have the
incapability in meeting the quality requirement of the buyer. Chain actors have
insufficient capital or money to procure large quantity of potato hence chain actors
depend on what they have. Chain actors depend on the market prevailing price for them
to have the same prices. There is a significant difference on the responses of the chain
actors that they have insufficient capital to procure/produce potatoes and was rank as
their number one incapability followed by limited control on the quality/quantity of
potatoes procured/produced and sold for their basis is their capital.
Table 10b .Percieved inabilities statistical mean and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
PERCIEVED INABILITIES STATEMENT
MEAN
SQUARE
FREEDOM
SIGNIFICANCE
1. I am dependent on the quality/quantity of
potatoes I produced/procured.
4.07
5.25
3
0.155
2. I have insufficient capital to produce/procure
potatoes.
3.06
11.04
3
0.012*
3. I have limited control on the quality/quantity
of potatoes I produced/procured and sold.
3.21
7.22
3
0.065
4. I largely depend from the prevailing market
price.
3.63
4.73
3
0.192
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Various Constraints of Actors to Improve/Maintain
the Buyers Quality Requirement
Table 11a shows the various constraints of the actors need to do to
improve/maintain the quality fresh potato offered. Constraints are the barriers that hinder
the actors in the spot market in meeting quality requirement.
Retailers (70%) in Metro Manila strongly agree that they have inadequacy of
logistics facilities/equipments. Nine financier-assembler-wholesalers cannot decide if
they have appropriate facilities/equipments in trading potato. Few trucker-wholesalers
disagree for they have the proper facilities/equipments.
Majority of the retailers don’t have enough capital to acquire appropriate
facilities/equipments for the facilities are expensive. Some of the financier-assembler-
wholesalers have doubt for they have limited facilities/equipments. Few wholesalers have
enough capital to acquire facilities.
Wholesale-retailers (19%) strongly agree that they have limited choice in potato.
Majority of the financier-assembler-wholesalers cannot decide if they have limited
supplier of potato. Most of the trucker-wholesalers disagree for they have many choices
of potato.
Retailers agree that they have less control in grading/packaging for they only sell
low quantity of potato and what they have procured are already graded. Majority of the
farmers cannot control the grading and packaging for their buyer will do it. Three
assembler-wholesalers strongly disagree for that they have the control in packing and
grading potato.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 11a. Various constraints of actors to improve/maintain the buyers quality
requirement
STATEMENT
1
2
3
4
5
AVE
N %
N
%
N
%
N
%
N
%
A. FARMER
1. Inadequacy of logistic facilities/equipments.
1
2
7 16 19 44 11 26
5 12
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
1
2 12 28
5 12 21 49
4
9
3
3. Limited choices on potatoes.
5 12 20 47 12 28
3
7
3
7
3
4. Less control in grading/packaging.
5 12 14 33 15 35
3
7
6 14
3
5. Lack of cold storage facility in trading.
4
9
3
7
5 12
1
2 30 70
4
B. ASSEMBLER-WHOLESALER
1. Inadequacy of logistic facilities/equipments.
1
5
3 16
6 32
6 32
3 16
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
1
5
5 26
3 16
8 42
2 11
3
3. Limited choices on potatoes.
4 21
9 47
2 11
3 16
1
5
3
4. Less control in grading/packaging.
3 16
2 11
9 47
3 16
2 11
3
5. Lack of cold storage facility in trading.
0
0
3 16
3 16
2 11 11 58
4
C. FINANCIER-ASSEMBLER-WHOLESALER
1. Inadequacy of logistic facilities/equipments.
3 17
2 11
9 50
2 11
2 11
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
2 11
5 28
5 28
4 22
2 11
3
3. Limited choices on potatoes.
1
6
8 44
6 33
2 11
1
6
3
4. Less control in grading/packaging.
2 11
6 33
5 28
5 28
0
0
3
5. Lack of cold storage facility in trading.
4 22
2 11
2 11
2 11
8 44
3
D. TRUCKER-WHOLESALER
1. Inadequacy of logistic facilities/equipments.
2 17
6 50
1
8
2 17
1
8
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
2 17
6 50
1
8
1
8
2 17
3
3. Limited choices on vegetables.
5 42
4 33
2 17
0
0
1
8
2
4. Less control in grading/packaging.
1
8
6 50
2 17
2 17
1
8
3
5. Lack of cold storage facility in trading.
3 25
1
8
1
8
1
8
6 50
4
Numerical value and descriptive equivalent: 1-strongly disagree
2- moderately disagree
3- undecided
4- moderately agree
5- strongly disagree
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 11a. Continued . . .
STATEMENT
1
2
3
4
5
AVE
N %
N
%
N
%
N
%
N
%
E. WHOLESALER
1. Inadequacy of logistic facilities/equipments.
0
0
2 20
4 40
3 30
1 10
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
3 30
1 10
4 40
0
0
2 20
3
3. Limited choices on potatoes.
3 30
2 20
3 30
2 20
0
0
2
4. Less control in grading/packaging.
1 10
0
0
3 30
4 40
2 20
3
5. Lack of cold storage facility in trading.
2 20
2 20
2 20
0
0
4 40
3
F. WHOLESALER-RETAILER
1. Inadequacy of logistic facilities/equipments.
3
8 10 27 10 27
9 24
5 14
3
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
6 16
8 22
7 19 12 32
4 11
3
3. Limited choices on potatoes.
8 22
8 22
8 22 10 27
3
8
3
4. Less control in grading/packaging.
2
5 11 30
5 14 12 32
7 19
3
5. Lack of cold storage facility in trading.
12 32
2
5
4 11
5 14 14 38
3
G. RETAILER
1. Inadequacy of logistic facilities/equipments.
6 11
5
9 11 20 17 32 15 28
4
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
7 13 11 20
6 11 13 24 17 32
3
3. Limited choices on potatoes.
12 22 14 26
9 17 17 32
2
4
3
4. Less control in grading/packaging.
3
6 11 20 11 20 16 30 13 24
4
5. Lack of cold storage facility in trading.
11 20
5
9
2
4
5
9 31 57
4
Majority of the farmers of potato in Benguet agree that they lack cold storage and
usually they don’t need this for they have low temperature. Two wholesalers cannot
decide if they have appropriate cold storage for their potato to maintain its freshness.
Most of the wholesaler-retailers disagree for they have cold storage.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
Table 11b the chain actors cannot decide or undecided on the various constraints
to maintain/improve the quality of fresh potato as to lack of capital, cannot buy
appropriate facilities/equipments for potato trading business. Selling potato in Metro
Manila need cold storage to maintain its freshness. Sometimes, chain actors have limited
choice on potato to procure for what is left will they buy, “first come, first serve” or the
regular buyer will be given first. The responses of the chain actors on the lack of cold
storage facility in trading have significant difference and ranked number one as their
various constraints. Chains actors have less control in grading/packing for they buy
packed potatoes. Inadequacy of logistics facilities/equipments ranked number three as
their various constraints.
Table 11b. Various contraints statistical mean and test statistics
CHI-
DEGREE OF
ASYMPTOTIC
VARIOUS CONTRAINTS STATEMENT
MEAN
SQUARE
FREEDOM
SIGNIFICANCE
1. Inadequacy of logistic facilities/equipments.
3.23
6.24
3
0.100
2. Inadequacy of capital to acquire appropriate
logistic facilities/equipments.
3.16
3.95
3
0.267
3. Limited choices on vegetables.
2.6
1.49
3
0.685
4. Less control in grading/packaging.
3.09
6.48
3
0.091
5. Lack of cold storage facility in trading.
3.68
11.53
3
0.009*
respontdents group
2.64
Scale used: 1-1.8- strongly disagree
*significant
1.9-2.7- moderately disagree
2.8-3.5- undecided
3.6-4.3- moderately agree
4.4-5- strongly agree
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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47
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to identify and provide information on the perception on
quality of potato by chain actors in the spot market particularly on the physical,
functional and service quality of potato. The abilities and inabilities of the chain actors to
meet the quality requirement and the various constraints of the chain actors to
improve/maintain the quality of fresh vegetable offered.
Chain actors believed that potatoes being produce/procure are clean, fully
trimmed, firm and crunchy. All their responses have no significant difference wherein the
chain actors have the same perceived physical quality.
Chain actors cannot decide if their supplier has adequate logistics
(facilities/equipments and workforce) in trading potatoes. The suppliers are willing to
exert effort like “comboy” and packing. The chain actors have significant difference that
the supplier gives notice about supply and demand. Most of all, the supplier has the
proper facilities/equipments and enough workforce in trading the potatoes.
The chain actors believed that the supplier weighed and packed properly the
potatoes. The price is flexible. The supplier accepts payments terms and the responses of
the chain actors have significant difference in the following statements: the supplier
adhere production/procurement/delivery targets. The supplier has adequate supply so they
can fulfill the orders and deliver it when needed by buyer.
Chain actors moderately agree that they have the capability in meeting the quality
requirement of the buyer. Chain actors appropriately classify, weighed and packed the
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
48
potatoes they sold. Chain actors have significant difference to buy/sell fresh potatoes
from reputable supplier and Chain actors have adequate potato and logistics.
As to their incapability, Chain actors have insufficient capital or money to procure
large quantity of potato and they depend to market prevailing price. There is a significant
difference on the responses of the chain actors that they have insufficient capital to
procure/produce potatoes and limited control on the quality/quantity of potatoes
procured/produced and sold.
The various constraints faced by the chain actors were too much high
temperature, when calamities occur that causes infestation of insect and diseases and lack
of capital and proper facility/equipments in trading. The responses of the chain actors on
the lack of cold storage facility in trading have significant difference and Chains actors
have less control in grading/packing.
Conclusions
Based on the findings and result of the study the following conclusions were
made.
1.
Produced/procured potatoes are fresh, firm and crunchy, specified
according to its variety, color, and packed properly with exact weight. Chain actors
removed the damage, infested potatoes by pest and diseases.
2.
Chain actors extend credit terms to their regular buyer. Chain actors
produced what was being ordered by the buyer and deliver it when needed.
3.
Chain actors procure large quantity of potato to provide or fulfill the
demand of potato. Price of potato is flexible and depend on market prevailing price.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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49
4.
The quality of the potato was lessening for it passed through the different
chain actors.
5.
The traders of potato lack proper facility/equipment like cold storage in
trading. They have insufficient capital in potato trading business.
Recommendations
Vegetable trade industry in the country is very much needed and important
however vegetables supply is low/irregular, lack or low financial assistance so it is
recommended that the government and NGO should provide support to the potato traders
and provide appropriate facilities/equipments (cold storage). Creation of reliable market
information system supported by the government and NGO for the traders to have well
information about the demand and supply of vegetable in the market. Government and
NGO’s should provide new varieties of potato with high quality than that of the present.
Lastly, for the buyers have less control in grading/packing the supplier should
appropriately grade and packed the potatoes. Potato traders should maintain their
business.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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50
LITERATURE CITED
BENGUET SOCIO-ECONOMIC PROFILE. 2007. Economic Sector: Market
Structure/System of Vegetables. Provincial Planning and Development Office.
Benguet. P. 66.
BUREAU OF AGRICULTURAL STATISTICS. 2008. StatGuide for farmers.
Production and Marketing Statistics on: cabbage, carrots and white potato.
Benguet. Vol. 2, No. 2, Pp. 54-57
BATT, P. 2005. Competing in global market: A Value Chain A Global Chain Approach.
P. 3
BERELSON, B. and G. A. STEINER, 1964. Human Behaviour: An Inventory of
Scientific Findings. New York: Harcourt, Brace Jovanovich, pp88. As cited in
Marketing Management. Kotler, P. Prentice Hall/Irwin 11th Ed. P.197
CHAMPION, S. C. and A. P. FEARNE. 2000. 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.
Retrieved
November
2000
from
http://www.imperial.ac.uk/agriculturalsiences/cfcr:pdfdoc:champion2001.pdf.
COUNCIL OF LOGISTICS MANAGEMENT. 1986. What is it All About? Oak Brook,
Illinois, U. S. A.
CRISSMAN, C. 1989. Seed Potato Systems in the Philippines: A Case Study. CIP. Lima,
Peru: International Potato Center.
DRABENSTOTT, M. 1999. Consolidation in U.S. Agriculture Leading to new Rural
Landscape and Public Policy Considerations. Feedstuffs. 71 (May) P. 33
FEDER, G., R.E, JUST. and D. ZILBERMAN. 1985. Adoption of agricultural
innovations in developing countries: A Survey. Economic Development and
Cultural Change 33:255-298.
FIEGENBAUM, A. V. 1991. Total Quality. Third edition, McGraw Hill. Editors:
Bremmers, H. J., Omta, S. W. F., Treinekens, J. H. and E. F. M. Wubben.
Wageningen Academic Publishers. Pp 532-537.
FOLKERTS, H. and H. KOEHORST. 1998. Challenges in International Food Supply
Chains: Vertical Coordination in the European Agribusiness and Food Industries,
British Food Journal. Pp. 100, 385-388.
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/ Pagaduan, Larry N. 2011
51
FOUNDATION FOR RESOURCE LINKAGE AND DEVELOPMENT, INC.
1995.
The Potato Marketing System in major Production and Demand in the
Philippines. Department of Agriculture. Agribusiness System Assistance
Program. United States Agency for International. P 13.
GRONROOS. C. 1990. Service management and marketing: managing moments of
truth in service competition. Lexington, Massachusetts, Lexington Books.
HONGZE, M. 2005. Supply chain management. Logistics, Turku School of Economics
and Business Administration. http://www.tukkk.fi/markkinointi/log/log1/
HUTT, M. D. and T. W. SPEH 1995. Business marketing management: a strategic view
of industrial and organizational markets, fifth edition. Florida, Dryden Press.
(From P.J. Batt Paper – Incorporating Measures of Satisfaction).
PARASURAMAN, A. 1998. Customer service in business-to-business markets: an
agenda
for research. Journal of Business and Industrial Marketing, 13(4/5), Pp.
309-321.
ROBBINS, S. P. 1988. Management: Concepts and Applications. Prentice-Hall
International, Inc. 2nd Edition, P. 22.
VAN der VORST, J. G. A. J. 2000. Effective Food Supply Chains: Generating, Modeling
and Evaluating Supply Chain Scenarious, PhD-thesis Wageningen
University, Wageningen.
Perception Of Actors On Quality Of Potato In The Spot Market Chain
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52
APPENDIX A
Letter to the Respondents
Benguet State University
COLLEGE OF AGRICULTURE
La Trinidad, Benguet
November 2010
Sir/ Madam,
I am a fourth year student taking up Bachelor of Science in Agribusiness majoring
in Enterprise Management at Benguet State University is conducting a research entitled
“PERCEPTION OF ACTORS ON QUALITY OF POTATO IN THE SPOT MARKET
CHAINS.”
In this connection, may I request a part of your time to answer this questionnaire
honestly and completely. Rest assured that all data gathered will be kept strictly
confidential.
Thank you very much for your kind consideration. God bless.
Very truly yours,
LARRY N. PAGADUAN
Researcher
Noted:
LEOPOLDO N. TAGARINO
Adviser
Perception Of Actors On Quality Of Potato In The Spot Market Chain
/ Pagaduan, Larry N. 2011
53
APPENDIX B
Interview Schedule
This research aims to investigate the fresh vegetable supply networks. All information solicited
will be treated with confidentiality. Please answer the questions honestly by putting check mark [√] in the
appropriate box 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
[ ] Financier-Assembler-Wholesaler-Retailer
3. Distribution Group :
[ ] Trucker-Wholesaler [ ] Wholesaler
[ ] Wholesaler-Retailer
4. Retailing Group :
[ ] Retailers
A. Respondent’s 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 engage in vegetable business: _____
7. Organizational affiliation: [ ] Farmers’ Association [ ] Cooperatives [ ] Others, specify ________
B. What are the potatoes you frequently produce/procure and sell in the market?
[ ] Potato [ ] Cabbage [ ] Chayote [ ] Others, specify_______________
C. Who are the buyers of Potatoes you produced/procured?
[ ] Assembler-Wholesalers [ ] Financier-Assembler-Wholesalers [ ] Financier-Assembler-Wholesaler-
Retailer
[ ] Trucker-Wholesalers [ ] Wholesalers [ ] Wholesaler-Retailers [ ] Retailers
D. Where do you sell the Potatoes produced/procured?
[ ] La Trinidad Vegetable Trading Post [ ] Others, specify ____________________
[ ] Private Trading Center in La Trinidad, specify ____________________
[ ] Metro Manila, specify ____________________
E. PERCEPTIONS: QUALITY
What product quality criteria do you perceive as having been the bases of the buyers in choosing or buying
the potato?
E.1. Product (Technical) Quality. Technical quality is the physical description of the agricultural products.
1 2 3 4 5
1. Potatoes are free from chemical residue. Strongly Disagree
Strongly Agree
2. Potatoes are free from pests and diseases. Strongly Disagree
Strongly Agree
3. Variety, color and size of Potatoes are specified. Strongly Disagree
Strongly Agree
4. Potatoes are free from physical injury.
Strongly Disagree
Strongly Agree
5. Potatoes are fresh, clean and fully trimmed.
Strongly Disagree
Strongly Agree
6. Potatoes are firm and crunchy. StronglyDisagree
Strongly Agree
54
What service quality criteria do you perceive as having been the bases of the buyers in choosing or buying
the potato?
E.2. Service Quality. Service quality is the additional requirement a supplier is willing to do to retain
customer’s business.
1 2 3 4 5
1. Supplier (seller) extend credit term to buyers of vegetables. Strongly Disagree
Strongly Agree
2. Supplier has an outstanding loan/cash advance from the buyer. Strongly Disagree
Strongly Agree
3. Supplier gives notice to the buyers about supply shortage and the price changes.
Strongly Disagree
Strongly Agree
4. Supplier exerts effort to produce/procure Potatoes ordered. Strongly Disagree
Strongly Agree
5. Supplier extends support services (comboys, packing) to the buyer in the delivery of vegetables.
Strongly Disagree
Strongly Agree
6. Supplier has adequate logistics (facilities, equipments, workforce) in trading the vegetables.
Strongly Disagree
Strongly Agree
What functional quality criteria do you perceive as having been the bases of the buyers in choosing or
buying the vegetables?
E.3. Functional Quality. Functional quality is the process of delivering the products to customers.
1 2 3 4 5
1. Supplier (seller) adhere to production/procurement/delivery targets.
Strongly Disagree
Strongly Agree
2. Supplier classifies/grades the Potatoes properly.
Strongly Disagree
Strongly Agree
3. Supplier accurately weighed and packed the vegetables. Strongly Disagree
Strongly Agree
4. Supplier has adequate supply of Potatoes when the buyers want it.
Strongly Disagree
Strongly Agree
5. Supplier accepts orders and delivers the Potatoes when needed.
Strongly Disagree
Strongly Agree
6. Supplier is flexible in pricing the Potatoes and accepts payment term.
Strongly Disagree
Strongly Agree
E.4. Perception about their abilities to meet the criteria used by market intermediaries in purchasing
vegetables. Abilities refer to the capabilities of the actors in the spot market in meeting quality
requirements.
Factors
1 2 3 4 5
1. I appropriately classified, weighed and packed the potatoes I sold.
Strongly Disagree
Strongly Agree
2. I sell/buy potatoes at a negotiated price.
Strongly Disagree
Strongly Agree
3. I deliver the potatoeswhen required.
Strongly Disagree
Strongly Agree
4. I buy Potatoes free from pest and diseases, physical injury and chemical residues.
Strongly Disagree
Strongly Agree
5. I usually buy Potatoes which are fresh, clean, firm/crunchy and fully timmed.
Strongly Disagree
Strongly Agree
6. I buy potatoesfrom sellers with good reputation. Strongly Disagree
Strongly Agree
7. I buy adequate volume of potatoesto meet immediate demand.
Strongly Disagree
Strongly Agree
8. I have adequate logistics to buy vegetables.
Strongly Disagree
Strongly Agree
E.5. Perception about their inabilities to meet the market intermediary’s needs. Inabilities are the
incapabilities of the actors in the spot market in meeting quality requirements.
Factors
1 2 3 4 5
1. I am dependent on the quality/quantity of potatoesI produced/procured.
Strongly Disagree
Strongly Agree
2. I have insufficient capital to produce/procure vegetables. Strongly Disagree
Strongly Agree
3. I have limited control on the quality/quantity of potatoesI produced/procured and sold.
55
Strongly Disagree
Strongly Agree
4. I largely depend from the prevailing market price. Strongly Disagree
Strongly Agree
E.6. Various constraints to improve/maintain the quality of fresh potatoes offered. Contraints are the
barriers that hinders the actors in the spot market in meeting quality requirements.
Factors
1 2 3 4 5
1. Inadequacy of logistic facilities/equipments.
Strongly Disagree
Strongly Agree
2. Inadequacy of capital to acquire appropriate logistic facilities/equipments.
Strongly Disagree
Strongly Agree
3. Limited choices on vegetables.
Strongly Disagree
Strongly Agree
4. Less control in grading/packaging.
Strongly Disagree
Strongly Agree
5. Lack of cold storage facility in trading.
Strongly Disagree
Strongly Agree
Document Outline
- Perception of Actors on Quality of Potato in theSpot Market Chains
- BIBLIOGRAPHY
- ABSTRACT
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDICES