BIBLIOGRAPHY

DUYAN, SAMUEL L. APRIL. 2011. Quality and Performance in the Spot
Market Chains for Cabbage. Benguet State University, La Trinidad, Benguet.

Adviser: Leopoldo N. Tagarino, MRSM(Agribusiness)
ABSTRACT

This study was conducted from November 2010 to January 2011 at La Trinidad,
Benguet, Metro Manila and Urdaneta City, Pangasinan. A total of 193 respondents
were interviewed to know what are the perceived qualities used in purchasing cabbage,
the performances in the spot market and whether there is a direct relationship between
quality and performance.

The results revealed that quality was perceived in terms of product, service and
functional quality. The different criteria of product and functional quality were used as
basic considerations in purchasing cabbage in the spot market.Service quality criteria was
also considered which involves as to supplier gives notice to the buyers about supply
shortage and price changes and as to supplier exerts effort to produce/procure cabbages
ordered

Moreover, the performance dimensions in the spot market included product
quality satisfaction, flexibility, efficiency and responsiveness. Most of the criteria in these
dimensions were considered except as to the actors were satisfied selling to buyers on
credit arrangement; whether the seller and buyer have little conflict in their business
transaction, whether the actors can supply the market with desired quality/quantity when

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needed and whether the actors schedule their deliveries to meet the time in the market
and when customers need it.

The symmetric measures Kendall’s tau-b and gamma were used to analyze
whether there is a direct relationship of quality to performance. The findings proved that
there is a direct relationship of quality dimensions to performance dimensions in some of
the groups of actors however in most groups of actors; it showed no direct correlation of
quality to performance.This resultfurther indicated the individualism of the majority of
the group of actors in making decisions regarding the quality and trading of cabbage in
the spot market chains.

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INTRODUCTION
Rationale

The Cordillera Administrative Region (CAR) in Northern Luzon is the major
producer of cabbages and is responsible for 81 percent of cabbage production in the
Philippines (BAS, 2008).

The majority of fresh vegetables in the Philippines (75-85%) are sold through the
traditional marketing system (ACIAR, 2007).Surveys and consultation with farmers show
that there is a serious problem in marketing and that a greater chunk of the peso income
derived from vegetable farming is shared by the trader or middlemen. Prices are being
manipulated by syndicate, traders or middlemen, putting the farmers at their mercy. Other
factors may be due to the absence of an efficient market network coupled with the
absence of communication facilities, trading centers, market assistance centers,
transportation and inadequate storage facilities, and credit assistance to farmers (Benguet
Socio-Economic Profile, 2007).

Farmers usually harvest and sell their produce to assemblers-wholesalers who
transport the produce to the La Trinidad Vegetable Trading Post and Baguio City Market.
The La Trinidad Vegetable Trading Post was established to thwart the practice of
middlemen intercepting cargoes and directing them to non-consignees who offered higher
prices. As envisaged, the trading post has reduced the number of middlemen and
increased the prices of the commodities, thus increasing the income of farmers. It is
believed that some 8,840 farmers deliver their produce to the La Trinidad Vegetable
Trading Post and 5,580 farmers deliver produce to the Baguio City Market (ACIAR,
2007). Eighty-five percent of Luzon’s vegetable supply comes from Benguet; however,
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about 50% of the bulk of vegetable goes directly to Manila markets. Other farmers
deliver their produce to nearby municipalities and to adjacent provinces such as La
Union, Pangasinan, Nueva Vizcaya, Tarlac, Pampanga, Olongapo and Laguna. Some are
also shipped to Visayas and Davao (Benguet Socio-Economic Profile, 2007).

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 (Benguet Socio-Economic Profile, 2007).

The operation of fresh vegetables sector supply chain in the Philippines 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, wholesalers, wholesalers-retailers 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. The study will examine the
perceived quality based on the descriptions and dimensions on quality as technical and
functional quality (Groonroos, 1990) and the service quality (Parasuraman, 1998).
Technical quality is the physical description of the agricultural products, functional
quality is the process of delivering the products to customers while service quality is the
additional requirements a supplier is willing to do to retain customer’s business.

According toliteratures there are several methods and models to measure supply
chain performance. Aramyan (2007) identified, summarized and categorized performance
indicators which includephysical quality, flexibility, responsiveness and efficiency.The
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quality performance shall focus on the perceived satisfaction on the product and service
quality. Specifically, the physical quality performance will be assess based from the
physical products and the service quality will be on related services performed.
Moreover, flexibility indicates the degree to which supply chain can respond to changing
environment. The assessment will focus on the degree of flexibility of the chain actors in
terms of the volume of production and procurement, the pricing and the alternative
buyers. The performance will be evaluated in terms of efficiency using the costs, profit
and the return on investments. Finally, responsiveness aims at providing the requested
products with a short lead time (Persson and Olhager, 2002).

This study analyzed the spot market chains for cabbage focusing on quality
and performance in the Cordillera Administrative Region, Philippines.
Statement of the Problem

1. What are the perceived qualities used in purchasing cabbage in the spot
market?

2. What are the performances in the spot market?

3. Is there a direct relationship of quality to performance?
Objective of the Study

1. Identify the perceived qualities used in purchasing cabbage in the spot market
in terms of:

a. Product Quality

b. Service Quality

c. Functional Quality
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2. Identify the performances in the spot market in terms of:

a. Product Quality Satisfaction

b. Flexibility

c. Efficiency

d. Responsiveness

3. Assess whether there is a direct relationship of quality to performance.
Importance of the Study

The study provided information about the quality of cabbage required in the spot
market and about the performances of the different chain actors for further improvement
in response to providing good quality of cabbage.

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 cabbage in the spot markets, an avenue for future
research and development programs that could be introduce to sustain the quality of
cabbage. Furthermore, it provided literature on agricultural commodity like cabbage.

Scope and Delimitation of the Study

The scope of this study focused on the cabbage sector supply chain analysis in the
Cordillera Administrative Region, Philippines using the supply chain management
theories with emphasis on the behavioral dimension specifically focusing on the
perceived quality and performance of cabbage supply chain.

The limitations associated in this study primarily relate:

1. The cabbage spot market or wet market supply chain operations. Institutionally
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initiated vegetables supply chains that involve highly organized firms will not be
considered.

2. The chain actors involved in production and market transactions on cabbage in
the region particularly in Benguet shall be the major focus of this research and exclude
the other actors involved in other type or variety of vegetables from the other regions.

3. The research locations to be covered will be limited to major production areas
of cabbage such as Benguet and marketing areas such as La Trinidad, Benguet, Metro
Manila and Urdaneta City, Pangasinan.

4. The analysis focused on the objectives and framework of this research.










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REVIEW OF LITERATURE
Supply Chain Management

Supply chain management is defined as a network of connected and independent
organizations mutually and cooperatively working together to control, manage, and
improve the flow of materials and information from supplier to end user (Christopher,
1998).
Supply Chain and Networks

Folkerts and Koehorst (1998), define supply chain as “a set of interdependent
companies that work closely together to manage the flow of goods and services along the
value-added chain of agricultural and food products, in order to realize superior customer
value at the lowest possible cost.”Van der Vorst (2000), further defined supply chain as
“a network of physical and decision making activities connected by material and
information flows that cross organizational boundaries.”According to Lambert and
Cooper (2000), there are four main characteristics of a supply chain. First, it goes through
several stages of increasing intra- and inter-organizational, vertical coordination. Second,
it includes many independent firms, suggesting that managerial relationship is essential.
Third, a supply chain includes a bi-directional flow of products and information and the
managerial and operational activities. Fourth, chain members aim to fulfill the goals to
provide high customer value with an optimal use of resources.

Supply chain means the process of planning, implementing and controlling the
efficient, cost effective flow and storage of raw materials, in-process inventory, finished
goods and related information from the point-of-origin to point of final consumption for
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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
organizations from suppliers with the purpose to improve the flow of material and
information. Drabenstott (1999), discusses the increasing move toward the development
of supply chains and describes supply chain structures where all stages of production,
processing and distribution are bound together tightly to ensure reliable, efficient delivery
of high quality products.

Networks or business networks on the other hand is defined as a set of two or
more connected business relationships, in which each exchange relation is between
business firms that are conceptualized as collective actors (Anderson, Håkansson and
Johanson, 1994). Networks are specific properties of the transaction relationships,
typified by relational relationships in which formal and informal sharing and trust
building mechanisms are crucial (Zylbersztjn and Farina, 2003). In essence are the
concept of “collective actor” and consequently the existence of “collective actions.”
Networks are looked upon as the total actors within one industry and/or between related
industries, which can potentially work together to add value to customers. The basic
assumptions on networks: (1) There exist a collective actors within an industry who can
potentially work together to add value to customers, (2) One actor is dependent on the
resources controlled by another, and (3) There are established long-term relationships
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with formal and informal sharing and trust-building mechanisms. Powell (1990) further
extends the assumption that there are gains to be generated in pooling of resources.

In essence, the fresh vegetable production and marketing flow is regarded as a
supply chain and this is largely due to the involvement of a number of people or business
entities performing different tasks until the product reaches the consumers. The people
(individuals, business entities) are chain actors that undertake different functions from
production to assembly to distributions and retailing of vegetables. The business is
independently managed with intra and inter-organizational relationships. In the exchange
processes, there involve bi-directional flow of products (materials and services) and
information through the interactions of people with either formal or informal
relationships. Moreover, these individuals are largely interdependent on the supply of
products, thuswithassumed coordinationmechanismstofacilitate marketing
transactions.
Perceptions

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.
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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 likely remember good points mentioned about a product they like and forget good
points mentioned about competing products (Berelson and Steiner, 1964). A number of
factors operate to shape and sometimes distort perception. These factors can reside in the
perceiver, in object, or target, or in the context of the situation which the perception is
made. When an individual looks at a target and attempts to interpret what he sees, his
personal characteristics heavily influence the interpretation. These personal
characteristics include attitudes, personality, motives, interest, past experiences, and
expectations. Individuals cannotassimilate allthey observe, sothey engage into
selectivity depending on the observer’s interests, background, experience, and attitudes.
Quality and Its Dimension

Quality is determined by a customerand is based upon the customer’s actual
experience with product measured against the customer’s stated requirements. It does not
necessarily mean best; quality may also mean fitness for intended purpose. 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.
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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 anddiseases, purity (in terms of its freedom from chemical contaminants,
pathogenic organisms and genetically modified plants), maturity or freshness, and the
manner in which the product is packed. 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).


In conclusion, there are three dimensions of quality: technical, functional and
service. Gronroos (1990) specifically described technical quality as the physical
description of the agricultural products and functional quality as the process of delivering
the products to customers. Service quality as Parasuraman (1998) introduced and
described that there are additional requirements a supplier is willing to do to retain
customer’s business. Hutt and Speh (1995) further elaborated the meaning of service and
identified the variables. This studytherefore examined the quality of cabbageas
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perceived by the different group of actors in the spot market chains.
Supply Chain Performance

The impact of supply chain linkages on operational and business performance has
been the subject of a number of empirical studies. These studies have encompassed a
variety of supply chain definitions, performance measures and methodologies (Fyneset
al., 2005). For instance, Carter and Ellram (1994) found that supplier involvement in
product design has a positive impact on product quality using a case study design.
Narasimhan and Jayaran (1998) examined relationship between sourcing decisions,
manufacturing goals, customer’s responsiveness and manufacturing performance using
structural equation modelling. They found that integrating supply chain activities
involves aligning sourcing decisions to achieve manufacturing goals in terms of
dependability, flexibility, cost and quality. Likewise, Carr and Pearson (1999) found that
strategically managed long-term relationships with key suppliers can have a positive
impact on financial (as distinct from manufacturing) performance. Kaynak and Pagán
(2003) using stochastic frontier modelling, found that characteristics internal to the firm
such as top management commitment to purchasing and supply management had a
positive effect on production efficiency. Likewise, Salvador et al. (2001) found that when
buyers and suppliers interact on issues related to material flows and quality, there are
significant effects in terms of speed and delivery punctuality. More recently, Tan et al.
(2002) develop a comprehensive set of supply chain practice and supply chain
performance metrics and found that while some practices had a positive effect on
performance, others had an adverse effect.
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The nature of any performance measurement system will be extremely significant
in determining what employees and functions do, and how they do it. Measurement
therefore needs to be placed in a strategic context, because the way that individuals and
the teams are assessed will determine the nature of the activities which they undertake,
and how they interpret their tasks. The employee who is given a job to do and criteria to
meet will not stop to evaluate the suitability of these criteria (even if they personally
disagree with the criteria which have been set), but will seek to meet their own personal
objectives, or maximize their own performance within the criteria identified in the belief
that personal rewards will be optimised as a result. Johnson and Scholes (1980) argue that
the dominant purpose of performance measures should be to help employees monitor
their own performance: ‘in this way it is more likely that objectives will be owned by
those responsible for achieving them, and in turn, that they will regard them as useful
measures against which to monitor their own performance’.

Strategy and effective implementation are perhaps the most fundamental
requirements for a successful performance measurement system. The requirement is for a
process of comprehensive identification of all the different types of activities in which an
organization is involved, in order to give them a coherent focus to ensure they are all
driving in the same direction. Each top level objective should have a ‘strategic staircase’,
represented by milestones, the achievement of which will lead to those objectives. The
ultimate purpose behind the system should be to help employees improve their own
performance (Ghorpade and Chen, 1995).

The performance of the supply chain can refer both to the performance of the
industry as well as the individual firm supply chain. Furthermore, performance has three
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dimensions: effectiveness, efficiency and equity. Since the objectives of efficiency and
effectiveness influence make-versus-buy or “outsourcing” decisions of supply chain
members, they thus, are influenced by the structure and conduct in that chain. The first
dimension of performance is effective, when it meets the demand of its ultimate
customers concerning product, price and service outputs (consistent and on-time delivery,
continuity and flexibility in supply, assortment and variety, etc.). This also includes the
measurement of customer satisfaction. The second dimension of performance is
efficiency. Measurement of efficiency of individual supply chain members can be derived
from the contribution ratio. The third component of performance is equity. The equity
level within a supply chain is indicated by the degree of resemblance between the share
of total contribution margin gained and the share of total supply costs borne by each
chain members involved in the production and marketing of the product (Sijses, 2004).

Performance can be characterized as cost factor and service factor. The cost factor
considers the cost of inventory, transportation, facilities and handling cost and
information infrastructure and the service factor considers the response time, product
variety, product availability, customer experience, order visibility and returnability
(Hongze Ma, 2005).

Performance measurement as a subject involves the development of goals and
their related measures, as well as the appropriate mechanisms of feedback. It must
therefore reflect the operating assumptions of the organization, in terms of culture,
strategy and operational processes. This requires the identification of the pressures, which
the organization faces, both internal and external, and should consequently lead to a set of
action plans for specific areas of organizations (Hines et al., 2000). Performance
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measurement of any activity should be designed to bring about improvement in that
activity, highlighting variances over time, and enabling a more efficient allocation of
resources (Geanuracos and Meikklejohn, 1994).

Performance metrics are necessary to confirm that the supply chain is functioning
as expected, or that there are problems that must be addressed. There are several
measures that can be used that relate to such things as late deliveries, inventory turnover,
response time, quality issues, and so on in the retail sector, the fill rate (the percentage of
demand filled from stock on hand) is often very important. Another approach is to use the
Supply Chain Operations Reference (SCOR) model. The SCOR model reflects an effort
to standardize measurement of supply chain performance.

Aramyanet al. (2006) summarized the different methods to assess supply chain
performance, the advantages and disadvantages of each method; and developed a
conceptual framework for agri-food supply chain performance indicators. The categories
are chosen from the literature review on supply chain performance measures from
different sectors and these include efficiency, flexibility, responsiveness and food quality.
Flexibility

Flexibility indicates the degree to which supply chain can respond to changing
environment andextraordinary customer service requests (Bowersox and Closs,1996;
Beamon, 1998; andAramyam, 2007).
Responsiveness

Responsiveness aims at providing the requested products with a short lead time
(Persson and Olhager, 2002). Salvador et al. (2001) found that when buyers and suppliers
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interact on issues related to material flows and quality, there are significant effects in
terms of speed and delivery punctuality.
Food Quality

Food quality is based on the food quality developed byLuninget al., (2002) which
consists of product safety and health; the sensory properties and shell life,and
product reliability and convenience.
Efficiency

Efficiency measures how well the resources are utilized (Lai et al., 2002) which
include production costs, profit, return on investment and inventory. Measurement of
efficiency of individual supply chain members can be derived from the contribution ratio
(Sijses, 2004).Grimsdell (1996) identified the fundamental requirements for efficient
supply performance between agricultural growers and consumers as: scale of operation,
producer flexibility,continuity of supply,quality control, strategic alliances, and
communications.
Definition of Terms

Quality – providing customers with products that consistently meet their
specifications.

Performance – the degree to which a supply chain fulfils end user requirements
concerning the relevant performance indicators at any point in time.

Spot market or wet market – place where the product is delivered and sold.

Dimensions – indicators or parameters used in the observation.
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Production cost – combined cost of raw materials and labour in producing goods.

Fill rate – percentage of units ordered that are shipped on a given order.

Product lateness – the amount of time between the promised product delivery date
and the actual delivery date.

Response time – the amount of time between an order has been done and its
corresponding delivery.

Lead time – total amount of time required to produce a particular item or service.

Shelf life – the length of time a packaged food will last without deteriorating.

Product safety – product does not exceed an acceptable level of risk associated
with pathogenic organisms or chemical and physical hazards such as microbiological,
chemical contaminant in products and micro-organisms.

Product reliability – refers to the compliance of the actual product composition
with the product description.

Convenience – the information provided on the packaging is useful, complete and
understandable
Conceptual Framework

The frame of the study analyzed the dimensions of quality in terms of technical
(physical), service and functional used in purchasing cabbages in the spot markets, the
performances of chain actors in the spot market such as product quality satisfaction,
flexibility, responsiveness and efficiency and the direct relationship of quality to
performance.


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Chain Actors

Farmers



Assembler-

Wholesalers
Chain Performance


Dimensions of
Product Quality
Financier-
Quality: Perceptions
Satisfaction
Assembler-

Wholesalers

Technical (Physical)
Flexibility



Service
Trucker-

Wholesalers
Responsiveness
Functional

Efficiency


Wholesalers



Wholesaler-
Retailers




Retailers



Figure 1. Conceptual framework




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METHODOLOGY
Locale and Time of the Study

The research locations followed the geographic flow of cabbage from the major
source (production) to the major market assembly and collection, and the distribution and
retail markets. The researchcoverage areas are limited to selected production and
marketing areas.

The primary market (assembly/collection) was concentrated in La Trinidad,
Benguet. Secondary markets (distribution) were the major vegetables trading centers
(commonly called “bagsakan”) in Balintawak, Quezon City and Urdaneta City,
Pangasinan. While the tertiary markets were the retail markets in La Trinidad, Benguet,
Metro Manila and Urdaneta City, Pangasinan. The research was conducted from
November 2010 to January 2011.

Respondent of the Study

The respondents represented the major actors in the fresh vegetables supply chain.
Specifically, the target respondents are classified into four major groups as shown below.

Table 1. Classification and type of respondents
CLASSIFICATION
TYPE OF RESPONDENTS
Production
Cabbage farmers
Assembly/Collection
Assembler-wholesalers; Financier-assembler-wholesalers
Distribution
Trucker-wholesalers; wholesalers; wholesaler-retailers
Retailing
Retailers
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The production group was composed of Benguet farmers producing cabbage. The
next group of respondents was the primary buyers representing the assembly/collection
group. This consisted of the assembler-wholesalers and the financier-assembler-
wholesalers. Most of them were operating in the La Trinidad Vegetable Trading Postand
in the privatetrading centers. The third group was the distributors consisted of the trucker-
wholesalers, wholesalers and wholesaler-retailers. The trucker-wholesalers were those
responsible in the transportation and distribution of vegetables to various geographic
market outlets. The wholesalers and wholesaler-retailers, on the other hand, were traders
in the spot markets to whom the trucker-wholesalers supply the vegetables. The last
group was the retailers representing the last link in the marketing process. The retailers
sold the vegetables to ultimate users or consumers.

Sample size.The population of the different target groups was large, hence the
quota sampling method will be used in the study. Table 2 shows the distribution of
samples by respondent groups. The total number of samples in the production group was
46. The assembly groupwas identified but a limited number were interviewed. A total
sample of 19 assembler-wholesalers and 15 financier-assembler-wholesalers were
interviewed. The distribution group composed of 12 trucker-wholesalers, 10 wholesalers
and 36 wholesaler-retailers with a total of58 distributors while the last group interviewed
was the retailing group and it comprised of 55 retailers in the wet markets. Overall, the
research has a total sample of 193 respondents.



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Table 2. Distribution of sample size according to respondent groups
RESPONDENTS GROUP
TOTAL SAMPLE SIZE
Farmers
46
Assemblers/Collectors
• Assembler-wholesalers
19
• Financier-assembler-wholesalers
15

Distributors
• Trucker-wholesalers
12
• Wholesalers
10
• wholesaler-retailers
36
Retailers
55
TOTAL
193

Data Gathering Procedure

The data gathering procedure was obtained through interview with the different
chain actors and observations. The farmers wereidentified and interviewed in the trading
post similarly with the assembly or collection and distribution groups while the other
respondents like the wholesalers and wholesaler-retailers were interviewed in the
“bagsakan” markets. On the other hand, the retailers were identified from the secondary
markets and followed them up in their retail market outlets for interviews.

Data Gathered

The data gathered were the perceived quality in terms of technical, service and
functional quality and performance in terms of product quality satisfaction, flexibility,
efficiency and responsiveness.

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Data Analysis

The data gathered weretabulated in the excel program and analyzed using
descriptive analysis such as frequency counts and percentage and using statistical
package for social sciences (SPSS) version 16 such as Kendall’s tau-b, gamma, Spearman
correlation and Pearson’s regression.































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RESULTS AND DISCUSSION


Demographic Profile of the Respondents


Table 3 presents the demographic profile of the different groups of respondents.
The respondents were grouped based on their function. The production group involved
the farmers or producers; the assembly group included those that performed assembling-
wholesaling and financing-assembling-wholesaling; the distribution group distributed
cabbage by trucking-wholesaling, wholesaling and wholesaling-retailing; and the
retailing group composed those that sold in retail basis. They were characterized based on
their age, gender, marital status, religious affiliation and educational background.
Age. Most of the market chain actors have an age ranging from 21-40 years and
few were 20 years old and below. However there were some of chain actors with an age
of 61 years old and over particularly the retailers, wholesaler-retailers and farmers. On
the average, it indicates that the production and distribution groups were younger as
compared to assembly and retailing groups. The result implies that most of the
respondents involved in the spot market chain for cabbage were middle aged individuals.
Gender and marital status.As to gender, most of the farmers, assembler-
wholesalers and trucker- wholesalers were male, while the other groups were dominated
by females. Therefore, this indicates that there was variation of function between male
and female in the spot market chain for cabbages.

In terms of marital status, majority of the respondents were married followed by a
number of single and the least were either separated or widowed. The findings therefore
implied that regardless of marital status, engaging in vegetable trading could be an
occupation thus as a source of livelihood.
Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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Table 3. Demographic profile of respondents
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

5
11 2 11 0 0 0 0 4 40 3 8 2
4
21-30
18
39
6
32
1
7
5
42
3
30 12
33
12
22
31-40
10
22
6
32
7
47
4
33
1
10 14
39
10
18
41-50
9
20
4
21
4
27
2
17
1
10
3
8
21
38
51-60
3
7
1
5
3
20
1
8
1
10
3
8
8
15
61 and above
1
2
0
0
0
0
0
0
0
0
1
3
2
4
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
100
Average Age
33
37
33
41
Gender
Male

42
91 13 68 5 33 8 67 4 40 12 33 9
16
Female
4
9
6
32 10
67
4
33
6
60 24
67
46
84
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
100
Marital Status
Single

16
35 2 11 1 7 5 42 6 60 15 42 9
16
Married
30
65 17
89 13
87
7
58
4
40 20
56
43
78
Separated
0
0
0
0
1
7
0
0
0
0
0
0
2
4
Widow
0
0
0
0
0
0
0
0
0
0
1
3
1
2
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
100
Religious Affiliation
Catholic
33
72 14 74 11 73 12 100 9 90 23 64 45
82
Protestant
8
17
3
16
3
20
0
0
1
10
9
25
6
11
Others
5
11
2
11
1
7
0
0
0
0
4
11
4
7
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
100
Educ. Background
Elementary
13
28 1 5 2 13 2 17 1 10 4 11 10
18
High School
20
43
9
47
6
40
4
33
4
40 16
44
31
56
College
13
28
9
47
7
47
6
50
5
50 14
39
12
22
Vocational
0
0
0
0
0
0
0
0
0
0
2
6
2
4
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
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
Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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Religious affiliation.Table 3 shows the religious affiliation of the respondents,
Catholic (76%) comprised the largest number followed by the Protestants (16%) and only
few were being affiliated to other religion (8%).
Educational background. Table 3 further presents the educational background of
the respondents. Most of the respondents have attended or finished high school followed
by college and then elementary. Some have taken up vocational course particularly the
wholesaler-retailers and retailers. This shows that all of them have attained formal
education.

Number of Years Engaged in Vegetable Business
Table 4 indicates the number of years the different respondents were engaged in
vegetable business.

Among the different groups of respondents, the result shows that most of the
farmers were engaged in farming business from 1-20 years. It also shows that majority of
the respondents in the assembly group have been doing business from 1-15 years and few
of them have been trading from 21-25 years. Among the distribution group, majority of
them were engaged in vegetable business for 5 years or less and the rest are from 6-10
years. The retailing group has been engaged in their vegetable business from 1-10 years.

On the average, the producers and retailers were engaged in the business for a
longer period with a similar number of 14 years respectively while the assembly and
distribution groups had lesser number of years in the business with 9 and 5 years
respectively.


Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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Table 4.Number of years engaged in vegetable business
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING
YEARS
F
A-W
F-A-W
T-W
W
W-R
R
N
% N
%
N
%
N
%
N
%
N
%
N
%
Below 1 Yr.
0
0
1
5
0
0
0
0
1
10
0
0
2
4
1-5
17
37
9
47
4
27
4
33
6
60 32
89
17
31
6-10
6
13
5
26
2
13
3
25
3
30
4
11
9
16
11-15
6
13
3
16
7
47
4
33
0
0
0
0
5
9
16-20
9
20
0
0
0
0
0
0
0
0
0
0
11
20
21-25
2
4
1
5
2
13
1
8
0
0
0
0
2
4
26-30
2
4
0
0
0
0
0
0
0
0
0
0
8
15
31 and above
4
9
0
0
0
0
0
0
0
0
0
0
1
2
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
100
Average Years
14
9
5
14


Organizational Affiliationof Respondents

Table 5 shows the organizational affiliations of respondents such as farmers’
association, cooperative, other organization or none at all.

The data show that most of the respondents of the different groups were not
affiliated to any organizations. It could be noted however that representative number
from each group were members of cooperatives and other organizations.

The result could mean that these respondents could not see the importance of the
organizations or the benefits derived from it.



Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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Table 5. 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 Assoc.
1
2
0
0
0
0
0
0
2
20
0
0
0
0
Cooperatives
1
2
2
11
4
27
3
25
1
10
8
22
2
4
Others
3
7
3
16
3
20
4
33
0
0
3
8
5
9
None
41
89 14
74
8
53
5
42
7
70 25
69
48
87
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
100


Spot Market Chain
and Location for Cabbage

Figure 2 illustrates the different chain actors involved in the flow of cabbage from
producers to retailers and their location.

The figure shows that farmers from the La Trinidad Vegetable Trading Post sold
their cabbages to the different buyers in the spot market. Most of the buyers included the
assembly groups from La Trinidad, Benguet, Urdaneta City, Pangasinan and Balintawak,
Quezon City. However, there were also a number of farmers from private trading center
in La Trinidad that sold their cabbages to assembler-wholesalers at the same trading
center. This indicated that while the farmers have access to the different buyers, majority
of them sold their produce to the assembly groups.

The assembly groups from the different spot markets sold their produce to the
distribution and retailing groups of these different spot markets. The distribution groups
specifically the trucker-wholesalers from the La Trinidad Vegetable Trading Post deliver
the cabbages to Urdaneta City and Balintawak and distribute to the wholesalers,
wholesaler-retailers and retailers. Similarly, the trucker-wholesalers from Balintawak
distribute the products to other distributors such as the wholesalers and wholesaler-
Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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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)
LTVTP (La Trinidad Vegetab le Trading Post)
F-A-W (Financier- Assembler-Wholesaler) PTC (Private Trading Center)

F-A-W-R (Financier-Assembler-Wholesaler-Retailer)
Urdaneta, Pangasinan

T-W (Trucker-Wholesaler)Balintawak

W (Wholesaler

Metro Manila
W-R (Wholesaler-Retailer)




R (Retailer)







Figure 2. Spot market chain and location for cabbage
27

Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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retailers and also to retailers from Balintawak and from other parts of Metro Manila.

Moreover, the wholesalers and wholesaler-retailers from the different spot
markets sold the cabbages to the retailers. Conversely, these wholesalers and wholesaler-
retailers also sold their cabbages to similar wholesalers and wholesaler-retailers. This
implied that the trading of cabbages also occurred between the same groups.

Finally, the actors on the retailing group from the different spot markets sold the
cabbages to the final consumers mainly to the households and some to the institutional
buyers such as the restaurants and or hotels.

Perceived Qualities Used in Purchasing Cabbage

Product quality. On the average, the perception on the different criteria of product
quality is agreed (Table 6). It implies that these different criteria were used as basic
considerations in purchasing cabbage in the spot market. The results validated the report
of Gronroos (1990) on product quality as the physical description of the product in terms
of its size, shape, color, freedom from pests and diseases, purity (freedom from chemical
contaminants), maturity or freshness, and the manner in which the product is packed.
Moreover, the cabbages being fully trimmed, clean, firm and crunchy and the variety
being specified were also considered.
Service quality. Table 6 also illustrates the average responses on the criteria of
service quality. The respondents regardless of their group agree as to supplier gives
notice to the buyers about supply shortage and price changes and as to supplier exerted
effort to produce/procure cabbages ordered which could be traced from the description of
service quality as the extra things a supplier is willing to do to retain customer’s business
by Parasuraman (1998).
Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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Table 6. Distribution of respondents as to perception on quality
STATEMENT
MEAN
PRODUCT QUALITY

1. Freedom from chemical residue.
3.88
2. Freedom from pests and diseases.
4.15
3. Variety, color and size are specified.
4.23
4. Freedom from physical injury.
4.04
5. It is fresh, clean and fully trimmed.
4.41
6. It is firm and crunchy.
4.42
SERVICE QUALITY

1. Supplier (seller) extends credit term to buyers.
3.15
2.Supplier has an outstanding loan/cash advance from the buyer.
2.71
3. Supplier gives notice to buyers about supply shortage and price changes.
3.46
4.Supplier exerts effort to produce/procure cabbages ordered.
3.83
5. Supplier extends support services to the buyer in the delivery.
3.06
6. Supplier has adequate logistics in trading.
3.02
FUNCTIONAL QUALITY

1. Supplier (seller) adheres to production/procurement/delivery targets.
3.61
2. Supplier classifies the cabbages properly.
3.74
3. Supplier accurately weighed and packed the cabbages.
3.94
4. Supplier has adequate supply of cabbages when the buyers want it.
3.75
5. Supplier accepts orders and delivers the cabbages when needed.
3.61
6. Supplier is flexible in pricing the cabbages and accepts payment term.
3.81

Scale Used:
1-1.8 – Strongly Disagree
1.9-2.6 – Disagree
2.7-3.4 – Undecided
3.5-4.2 – Agree
4.3-5 – Strongly Agree

Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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The respondents exhibited their neutrality in terms as to supplier extends credit
term to buyers or vice versa, whether supplier extends support services in the delivery
and whether the supplier has adequate logistics in trading. It shows that sometimes, either
the supplier has an outstanding loan/cash advance from the buyer or the supplier extends
credit term to the buyer. The data supported the statement of Hutt and Speh (1995) that is
the elaboration of the meaning of service and identified some variables such as providing
technical assistance, innovative suggestions, credit arrangements, support for special
needs, or providing advance notice of impending price changes or shortages in supply.
Functional quality.Table 6 further indicates the perception about functional
quality. The respondents considered the different criteria as defined by Gronroos (1990)
that is the ability to deliver the product when customers want it which involved many
inter-related activities such as production, scheduling, storage and warehousing, logistics,
ordering and invoicing.

The results showed that the respondents agreed to production and scheduling,
dealing as to supplier adheres to production/procurement/delivery targets; in logistics
involving whether supplier classified, weighed and packed the cabbages; storage and
warehousing indicating the adequacy of supply of cabbages when buyers want it; and in
ordering and invoicing specifying whether supplier accepts orders and delivers the
cabbages when needed and is flexible in pricing and accepts payment term.

Performances of Chain Actors in the Spot Market

Product quality satisfaction. On the average, the respondents agreed with the
different criteria used to measure product quality satisfaction (Table 7). Thus confirmed
the findings of Carter and Ellram (1994) that supplier involvement in product design has
Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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Table 7. Distribution of respondents as to performance
STATEMENT
MEAN
PRODUCT QUALITY SATISFACTION

1. The quality I produced/procured/sold meets my expectation.
3.89
2. The quality of cabbages delivered meets the buyer’s requirements.
3.73
3. I am satisfied with the volume I produced/procured/sold to the buyer.
3.96
4. I always achieve my production/procurement/delivery targets.
3.50
5. I am satisfied to fulfill the orders and deliveries when needed.
3.68
6. I am satisfied selling to buyers on credit arrangement.
2.75
7. The quality of cabbages I supplied in the market is reliable.
3.95
8. The buyers are always satisfied as to variety of product, price, and quality/quantity.
3.77
FLEXIBILITY

1. I can produce/procure the desired volume when buyers needed it.
3.59
2. I exert effort to produce the desired volume/quality when buyers demand it.
4.00
3. The buyer is flexible to buy cabbages regardless of quantity and quality.
3.74
4. The buyer and seller have little conflict in the business transaction.
3.35
EFFICIENCY

1. I am happy to produce the desired volume out of my limited resources.
3.95
2. The income I received is adequately rewarding.
3.91
3. I exert effort to reduce the cost of production.
4.11
4. I am satisfied with the rate of return to my investment.
3.87
RESPONSIVENESS

1. I can supply the market with desired quality/quantity when needed.
3.36
2. I always schedule my deliveries to meet the time in the market.
3.29
3. I always find time to deliver cabbages when customers/markets need it.
3.37
4. I always act on the demand/complaints of buyers related to quality/quantity.
3.68

Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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a positive impact on product quality which was further supported by Drabensttot (1999)
discussions’ on the increasing move toward the development of supply chains and
description on supply chain structures where all stages of production, processing and
distribution are bound together tightly to ensure reliable, efficient delivery of high quality
products.
However, the respondents were undecided as to the actors’ satisfaction in selling
cabbages to buyers on credit arrangement. It shows that though the actors allowed selling
on credit, the buyers may not comply with the arrangement made such that these buyers
were delayed when paying or pay on installment basis. This result was proved by Tan et
al. (2002) who develop a comprehensive set of supply chain practice and supply chain
performance metrics and found that while some practices had a positive effect on
performance, others had an adverse effect.
Flexibility. On the average, Table 7 indicates that almost all of the respondents
agreed to the different criteria of flexibility except from little conflict in the business
transaction. Performance measurement as a subject involves the development of
appropriate mechanisms of feedback. It must therefore reflect the operating assumptions
of the organization, in terms of culture, strategy and operational processes. This requires
the identification of thepressures, which the organization faces, both internal and
external, and should consequently lead to a set of action plans for specific areas of
organizations (Hines et al., 2000). This implies that the conflict among the actors is an
unavoidable factor during vegetable trading business due to differences of culture,
internal and external pressures as cited by Hines et al. (2000).

Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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Efficiency.It shows that on the average, the respondents agreed with the different
criteria of performance efficiency (Table 7). The respondents regardless of their functions
exerted effort to reduce the cost of production and although the actors have limited
resources, they were happy to produce/procure/sold the desired volume as validated by
Kaynak and Pagan (2003) on their findings that characteristics internal to the firm such as
top management commitment to purchasing and supply management had a positive effect
on production efficiency. This in turn, the result further presents that the actors were
satisfied with the income received and with the rate of return to their investment. This can
be attributed from the finding that strategically managed long-term relationships with key
suppliers can have a positive impact on financial performance (Carr and Pearson, 1999).

Responsiveness.The respondents agreed as to they act on the demand/complaints
of buyers related to quality/quantity (Table 7). However, the respondents were undecided
with the other criteria of responsiveness in terms of supplying the market with the desired
quality/quantity and scheduling of deliveries to meet the time in the market and when
buyers needed it. This result implies that there were times the respondents were not
conforming as to the other criteria but as found out by Salvador et al. (2001) that when
buyers and suppliers interact on issues related to material flows and quality, there were
significant effects in terms of speed and delivery punctuality.

Relationship of Quality to Performance


Product Quality to Performance

Product quality to product quality satisfaction. The statistical result shows no
direct relationship of product quality to product quality satisfaction (Table 8). The
Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

---

different perceived product qualities were being considered conversely, majority of the
actors agreed with the different product quality satisfactions such that the quality
produced/procured/sold meets their expectation and the buyers’ requirement, the actors
were satisfied with the volume produced/procured/sold, satisfied to fulfill the orders and
deliveries and always achieve their production/procurement/delivery targets, the quality
supplied in the market was reliable and that the buyers were always satisfied as to the
variety, price and quality/quantity. Therefore, the result implied that the respondents

would largely depend on their product quality satisfaction from the products supplied.

Table 8. Correlation of product quality to product quality satisfaction
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.138
0.130
1.053 0.292

Gamma
0.205
0.191
1.053 0.292

Spearman Correlation
0.156
0.147
1.050 0.300c

Pearson's R
0.139
0.147
0.934 0.355c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.037
0.173
0.212 0.832

Gamma
0.051
0.238
0.212 0.832

Spearman Correlation
0.050
0.201
0.281 0.780c

Pearson's R
0.114
0.197
0.651 0.520c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
-0.061
0.115
-0.527 0.598

Gamma
-0.090
0.170
-0.527 0.598

Spearman Correlation
-0.070
0.132
-0.522 0.603c

Pearson's R
-0.113
0.122
-0.850 0.399c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.207
0.121
1.701 0.089

Gamma
0.294
0.168
1.701 0.089

Spearman Correlation
0.231
0.137
1.726 0.090c

Pearson's R
0.187
0.148
1.384 0.172c

N of Valid Cases
55.000




Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

---

Product quality to flexibility. Table 9 shows that there is a direct relationship on
product quality to flexibility particularly to assembly group. This means the assemblers
could make adjustment in procurement of cabbage as to quality and quantity since this
group has greater control in grading the products. Also they could have influence in

production through extension of credit to many farmers thus guarantee the supply of
desired quality and the increase in quantity procured.

Table 9. Correlation of product quality to flexibility
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.162
0.121
1.326 0.185

Gamma
0.221
0.164
1.326 0.185

Spearman Correlation
0.203
0.144
1.377 0.175c

Pearson's R
0.197
0.134
1.336 0.189c
N of Valid Cases
46.000




Assembly
Kendall's tau-b
0.364
0.134
2.607 0.009*

Gamma
0.493
0.168
2.607 0.009*

Spearman Correlation
0.418
0.152
2.604 0.014c

Pearson's R
0.481
0.14
3.104 0.004c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
-0.045
0.116
-0.387 0.699

Gamma
-0.064
0.165
-0.387 0.699

Spearman Correlation
-0.047
0.135
-0.352 0.726c

Pearson's R
-0.147
0.114
-1.112 0.271c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.134
0.108
1.252 0.211

Gamma
0.178
0.142
1.252 0.211

Spearman Correlation
0.172
0.130
1.271 0.209c

Pearson's R
0.105
0.122
0.768 0.446c

N of Valid Cases
55.000



*-with direct correlation
Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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36

Product quality to efficiency. The statistical data showed no direct relationship of
product quality to efficiency among the different groups of respondents (Table 10).
Regardless of the quality and quantity, the actors could find ways to achieve efficiency
especially in increasing their income. Furthermore, the actors would do their best to
reduce the cost of production hence will provide a satisfying rate of return to their

investment.


Table 10. Correlation of product quality to efficiency
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
-0.115
0.137
-0.846 0.397

Gamma
-0.157
0.188
-0.846 0.397

Spearman Correlation
-0.130
0.158
-0.873 0.387c

Pearson's R
0.007
0.173
0.046 0.963c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.210
0.137
1.509 0.131

Gamma
0.289
0.186
1.509 0.131

Spearman Correlation
0.254
0.161
1.484 0.148c

Pearson's R
0.276
0.122
1.622 0.115c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.155
0.119
1.321 0.187

Gamma
0.229
0.174
1.321 0.187

Spearman Correlation
0.178
0.134
1.352 0.182c

Pearson's R
0.049
0.129
0.364 0.717c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
-0.043
0.111
-0.389 0.698

Gamma
-0.061
0.156
-0.389 0.698

Spearman Correlation
-0.055
0.132
-0.403 0.688c

Pearson's R
-0.095
0.113
-0.695 0.490c

N of Valid Cases
55.000







Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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37

Product quality to responsiveness. The findings showed direct correlation of the
perceived product qualities to responsiveness in the assembly group (Table 11). In
particular, the assemblers respond accordingly to the needs of the buyers as to quality,
quantity, time of deliveries, time when customers need it and the demand/complaints of
buyers. Other groups of respondents were not particular to the aforementioned criteria as
long as they could do their own business not considering the interest of most of their

buyers relative to the product quality of the cabbages.

Table 11. Correlation of product quality to responsiveness
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
-0.175
0.124
-1.423 0.155

Gamma
-0.241
0.169
-1.423 0.155

Spearman Correlation
-0.207
0.144
-1.402 0.168c

Pearson's R
-0.138
0.134
-0.923 0.361c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.357
0.136
2.522 0.012*

Gamma
0.485
0.178
2.522 0.012*

Spearman Correlation
0.414
0.158
2.569 0.015c

Pearson's R
0.387
0.140
2.375 0.024c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
-0.004
0.130
-0.033 0.974

Gamma
-0.006
0.181
-0.033 0.974

Spearman Correlation
-0.008
0.147
-0.058 0.954c

Pearson's R
-0.002
0.167
-0.013 0.990c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
-0.057
0.107
-0.534 0.593

Gamma
-0.077
0.143
-0.534 0.593

Spearman Correlation
-0.066
0.131
-0.481 0.632c

Pearson's R
-0.080
0.131
-0.581 0.564c

N of Valid Cases
55.000



*-with direct correlation


Quality and Performance in the Spot Market Chains for Cabbage
/SAMUEL L. DUYAN, 2011

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38
Service Quality to Performance

Service quality to product quality satisfaction. Table 12 showed that there is no
direct correlation between perceived service qualities to product quality satisfaction. This
implied that all respondent groups undertake the business more independently thus, focus
more on their interest to have the products to sell in the market and at the same time to
generate income. Moreover, the finding further justifies the individualistic behavior in the

business operation thus causing constraints in improving the service quality in the spot
market chains.

Table 12. Correlation of service quality to product quality satisfaction
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.104
0.134
0.771 0.441

Gamma
0.145
0.185
0.771 0.441

Spearman Correlation
0.132
0.156
0.883 0.382c

Pearson's R
0.161
0.147
1.081 0.286c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
-0.183
0.139
-1.298 0.194

Gamma
-0.263
0.196
-1.298 0.194

Spearman Correlation
-0.215
0.161
-1.248 0.221c

Pearson's R
-0.236
0.15
-1.372 0.180c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.044
0.119
0.37 0.712

Gamma
0.061
0.165
0.37 0.712

Spearman Correlation
0.052
0.138
0.389 0.699c

Pearson's R
0.083
0.152
0.624 0.535c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.120
0.124
0.972 0.331

Gamma
0.162
0.167
0.972 0.331

Spearman Correlation
0.137
0.144
1.005 0.319c

Pearson's R
0.104
0.134
0.762 0.449c

N of Valid Cases
55.000


Quality and Performance in the Spot Market Chains for Cabbage
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39

Service quality to flexibility. Among the different groups of actors, there is a
direct correlation between service quality and flexibility (Table 13) on the assembly
group. This means, that being directly dealing with the producers and the distributors,
assemblers attend to the needs of the suppliers and buyers of cabbage. This further
supports the findings on the product quality and flexibility. Thus, the assemblers address
the needs of their clients such as farmers and distributors. This explains that while some
actors have limited resources other actors provide financial and technical support services
which were utilized to produce the desired volume thus, in turn give them adequate

income and rate of return to their investment.

Table 13. Correlation of service quality to flexibility
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
GROUP
MEASURES
VALUE
ERRORa
APPROX. Tb
SIG.
Production
Kendall's tau-b
0.161
0.122
1.308 0.191

Gamma
0.209
0.158
1.308 0.191

Spearman Correlation
0.193
0.148
1.304 0.199c

Pearson's R
0.207
0.146
1.402 0.168c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
-0.284
0.133
-2.119 0.034*

Gamma
-0.375
0.172
-2.119 0.034*

Spearman Correlation
-0.339
0.156
-2.040 0.050c

Pearson's R
-0.331
0.15
-1.982 0.056c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
-0.016
0.118
-0.136 0.892

Gamma
-0.021
0.156
-0.136 0.892

Spearman Correlation
-0.022
0.140
-0.163 0.871c

Pearson's R
-0.091
0.126
-0.681 0.499c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
-0.068
0.119
-0.569 0.569

Gamma
-0.088
0.154
-0.569 0.569

Spearman Correlation
-0.080
0.143
-0.581 0.564c

Pearson's R
-0.076
0.146
-0.557 0.580c

N of Valid Cases
55.000



*-with direct correlation
Quality and Performance in the Spot Market Chains for Cabbage
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40

Service quality to efficiency. Statistical results showed direct correlation of
service quality to efficiency among the distribution group (Table 14). Since the
distributors were taking risks of bringing the products to the ultimate market, they aimed
to improve service quality and efficiency.
Service quality to responsiveness. Table 15 revealed no direct relationship of
service quality to responsiveness. Therefore, this further substantiated the findings that
the actors in the spot market chains operate, manage and decide independently about the

business operation thus making little efforts to the demands of the buyers.

Table 14. Correlation of service quality to efficiency
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.148
0.143
1.037 0.300

Gamma
0.195
0.188
1.037 0.300

Spearman Correlation
0.162
0.162
1.087 0.283c

Pearson's R
0.130
0.158
0.869 0.390c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.019
0.166
0.113 0.910

Gamma
0.025
0.219
0.113 0.910

Spearman Correlation
0.023
0.191
0.132 0.896c

Pearson's R
0.043
0.202
0.246 0.807c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.307
0.106
2.860 0.004*

Gamma
0.423
0.140
2.860 0.004*

Spearman Correlation
0.355
0.121
2.846 0.006c

Pearson's R
0.342
0.122
2.722 0.009c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
-0.041
0.119
-0.342 0.732

Gamma
-0.053
0.156
-0.342 0.732

Spearman Correlation
-0.044
0.141
-0.318 0.752c

Pearson's R
-0.091
0.129
-0.663 0.510c

N of Valid Cases
55.000



*-with direct correlation

Quality and Performance in the Spot Market Chains for Cabbage
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Table 15. Correlation of service quality to responsiveness
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.104
0.128
0.811 0.418

Gamma
0.138
0.169
0.811 0.418

Spearman Correlation
0.124
0.153
0.826 0.413c

Pearson's R
0.155
0.156
1.040 0.304c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
-0.132
0.140
-0.931 0.352

Gamma
-0.184
0.194
-0.931 0.352

Spearman Correlation
-0.150
0.169
-0.857 0.398c

Pearson's R
-0.191
0.132
-1.103 0.278c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.010
0.116
0.082 0.934

Gamma
0.013
0.154
0.082 0.934

Spearman Correlation
0.015
0.137
0.111 0.912c

Pearson's R
-0.007
0.131
-0.054 0.957c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.148
0.116
1.281 0.200

Gamma
0.184
0.144
1.281 0.200

Spearman Correlation
0.176
0.142
1.305 0.197c

Pearson's R
0.148
0.139
1.087 0.282c

N of Valid Cases
55.000




Functional Quality to Performance

Functional quality to product quality satisfaction. The results indicated direct
relationship of functional quality to product quality satisfaction among the distribution
and retailing groups (Table 16). As discussed earlier, the buyers expected that suppliers
should provide or perform other functions to facilitate business transaction. therefore the
distributors and retailers acquire/procure the cabbage of desired quality, quantity and
timeliness of the product to meet the demands in the market. However, there are times the
actors were unsatisfied selling on credit arrangement regardless of meeting the demands
of their buyers.
Quality and Performance in the Spot Market Chains for Cabbage
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Table 16. Correlation of functional quality to product quality satisfaction
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.189
0.128
1.455 0.146

Gamma
0.255
0.170
1.455 0.146

Spearman Correlation
0.225
0.148
1.532 0.133c

Pearson's R
0.214
0.133
1.451 0.154c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.275
0.138
1.947 0.052

Gamma
0.409
0.195
1.947 0.052

Spearman Correlation
0.309
0.156
1.841 0.075c

Pearson's R
0.296
0.143
1.750 0.090c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.332
0.091
3.499 0.000*

Gamma
0.483
0.122
3.499 0.000*

Spearman Correlation
0.382
0.104
3.091 0.003c

Pearson's R
0.365
0.094
2.933 0.005c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.251
0.127
1.966 0.049*

Gamma
0.338
0.170
1.966 0.049*

Spearman Correlation
0.279
0.146
2.114 0.039c

Pearson's R
0.229
0.154
1.714 0.092c

N of Valid Cases
55.000


*-with direct correlation


Functional quality to flexibility. Statistical results showed that except the
assembly group, functional quality has direct correlation to flexibility (Table 17). This
means that the production, distribution and retailing group could perform the activities to
meet the functional quality and at the same time tend to become flexible in order to meet
the quality demands in the market. Furthermore, the findings confirmed that these
different groups of respondents can respond to changing environment and can attend to
the extraordinary service requests of their customers related to functional quality
specifically the delivery of the products to the customers.

Quality and Performance in the Spot Market Chains for Cabbage
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Table 17. Correlation of functional quality to flexibility
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.276
0.105
2.567 0.010*

Gamma
0.355
0.130
2.567 0.010*

Spearman Correlation
0.347
0.124
2.451 0.018c

Pearson's R
0.340
0.117
2.397 0.021c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.288
0.149
1.925 0.054

Gamma
0.391
0.195
1.925 0.054

Spearman Correlation
0.327
0.168
1.956 0.059c

Pearson's R
0.301
0.160
1.786 0.084c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.327
0.099
3.398 0.001*

Gamma
0.448
0.130
3.398 0.001*

Spearman Correlation
0.388
0.113
3.152 0.003c

Pearson's R
0.274
0.099
2.132 0.037c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.357
0.114
3.035 0.002*

Gamma
0.450
0.138
3.035 0.002*

Spearman Correlation
0.418
0.129
3.347 0.002c

Pearson's R
0.484
0.120
4.027 0.000c

N of Valid Cases
55.000



*-with direct correlation


Functional quality to efficiency. The finding showed no direct correlation of
functional quality to efficiency among the different groups of respondents (Table 18).
This indicated that all the respondent groups have independent thinking and decision as
to delivering the desired quality of products to their customers and as to how they utilized
their limited resources in producing the desired volume which in turn give them adequate
income and satisfying rate of return to their investment. Thereby, the different groups
independently have meet functional quality and efficiency.




Quality and Performance in the Spot Market Chains for Cabbage
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Table 18. Correlation of functional quality to efficiency
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.076
0.124
0.610 0.542

Gamma
0.102
0.167
0.610 0.542

Spearman Correlation
0.093
0.148
0.620 0.538c

Pearson's R
0.078
0.133
0.522 0.604c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.216
0.178
1.221 0.222

Gamma
0.286
0.235
1.221 0.222

Spearman Correlation
0.227
0.198
1.321 0.196c

Pearson's R
0.144
0.195
0.825 0.416c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.111
0.114
0.981 0.327

Gamma
0.168
0.171
0.981 0.327

Spearman Correlation
0.127
0.130
0.958 0.342c

Pearson's R
0.052
0.111
0.391 0.697c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.196
0.104
1.858 0.063

Gamma
0.268
0.140
1.858 0.063

Spearman Correlation
0.235
0.124
1.763 0.084c

Pearson's R
0.196
0.120
1.455 0.152c

N of Valid Cases
55.000





Functional quality to responsiveness. Among the different groups of respondents,
the statistical data showed direct correlation of functional quality to responsiveness
(Table 19). This indicated that relative to meeting the functional quality, the different
actors could not respond/act to meet the different perceived functional qualities which
could due to lack of interaction with their buyers in the spot market since as cited by
Salvador et al. (2001) that when buyers and sellers interact on issues related to material
flows and quality, there were significant effects in terms of speed and delivery
punctuality.
Quality and Performance in the Spot Market Chains for Cabbage
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Table 19. Correlation of functional quality to responsiveness
RESPONDENT
SYMMETRIC
ASYMP. STD.
APPROX.
VALUE
APPROX. Tb
GROUP
MEASURES
ERRORa
SIG.
Production
Kendall's tau-b
0.284
0.110
2.575 0.010*

Gamma
0.375
0.141
2.575 0.010*

Spearman Correlation
0.345
0.130
2.434 0.019c

Pearson's R
0.330
0.121
2.320 0.025c

N of Valid Cases
46.000


Assembly
Kendall's tau-b
0.374
0.138
2.658 0.008*

Gamma
0.512
0.176
2.658 0.008*

Spearman Correlation
0.416
0.156
2.586 0.014c

Pearson's R
0.351
0.125
2.124 0.042c

N of Valid Cases
34.000


Distribution
Kendall's tau-b
0.366
0.103
3.412 0.001*

Gamma
0.508
0.132
3.412 0.001*

Spearman Correlation
0.416
0.115
3.422 0.001c

Pearson's R
0.479
0.115
4.087 0.000c

N of Valid Cases
58.000


Retailing
Kendall's tau-b
0.227
0.111
2.021 0.043*

Gamma
0.280
0.135
2.021 0.043*

Spearman Correlation
0.289
0.131
2.198 0.032c

Pearson's R
0.331
0.125
2.552 0.014c

N of Valid Cases
55.00


*-with direct correlation
Legend:
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.









Quality and Performance in the Spot Market Chains for Cabbage
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46
SUMMARY, CONCLUSION AND RECOMMENDATION

Summary

This study aimed to know what are the perceived qualities used in purchasing
cabbage, the performances in the spot market and whether there is a direct relationship of
quality to performance. The study was conducted from November 2010 to January 2011
in La Trinidad, Benguet, Metro Manila and Urdaneta City, Pangasinan. A total of 193
were taken as respondents of the study. An interview schedule was used by the researcher
in the study.

Most of the respondents have an age ranging from 21-40 years; there were more
females than males and majority of the respondents were married. More than two-thirds
were Catholic members, few were Protestants and a little number was being affiliated to
other religions. Most of the respondents have attended or finished high school followed
by college and elementary while some have taken up vocational course.

The average number of years showed that the producers and retailers were
engaged in the business for a longer period with a similar number of 14 years
respectively while the assembly and distribution groups had lesser number of years in the
business with 9 and 5 years respectively.

The farmers from the La Trinidad Vegetable Trading Post sold their cabbages to
the different buyer in the spot market but there are also a number of farmers from private
trading center in La Trinidad that sold their cabbages to assembler-wholesalers at the
same trading center. The assembly groups from the different spot markets sold their
produce to the distribution and retailing groups of these different spot markets. The
distribution groups specifically the trucker-wholesalers from the La Trinidad Vegetable
Quality and Performance in the Spot Market Chains for Cabbage
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Trading Post delivers the cabbages to Urdaneta City and Balintawak and distributes to the
wholesalers, wholesaler-retailers and retailers. Furthermore, the wholesalers and
wholesaler-retailers from the different spot markets sold the cabbages to the retailers.
However, these wholesalers and wholesaler-retailers also sold their cabbages to similar
wholesalers and wholesaler-retailers. Finally, the actors on the retailing group from the
different spot markets sold the cabbages to the ultimate consumers.

The perceived different criteria of product quality were being considered. It
implies that these different criteria were used as basic consideration in purchasing
cabbage in the spot market. One-third of the service quality was regard as basic criteria
and it involved as to supplier gives notice to the buyers about supply shortage and price
changes and as to supplier exerts effort to produce/procure cabbages ordered while two-
third of the service quality criteria was sometimes considered which included as to
supplier extends credit term to buyers or vice versa and whether supplier extends support
services to the buyers in the delivery and has adequate logistics in trading. Moreover, the
perceived functional quality criteria were also regard as basic consideration in purchasing
cabbage. The respondents considered the different criteria of functional quality being able
to deliver the product when customers want it.

Majority of the respondents agreed with the different criteria of performance
product quality however the respondents are undecided as to the actors are satisfied
selling cabbages to buyers on credit arrangement. Almost all of the respondents agreed as
to the different criteria of performance flexibility except as to the respondents have little
conflict with the buyers in the business transaction. And in terms of
performanceefficiency, the respondents agreed with the different criteria specifically as to
Quality and Performance in the Spot Market Chains for Cabbage
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48
exerting effort to reduce the cost of production. Furthermore, the respondents are
undecided with the criteria of performance responsiveness but believed as to the actors
act on the demand/complaints of buyers related to quality/quantity.

Using the symmetric measures Kendall’s tau-b and gamma, the result indicates
that there was a direct relationship on the different groups of quality to performance
specifically on the assembly group of product quality to flexibility and product quality to
responsiveness, on the assembly group of service quality to flexibility, on the distribution
group of service quality to efficiency, on the distribution group and retailing group of the
functional quality to product quality, on the different groups except on the assembly
group of the functional quality to flexibility and on the different groups of functional
quality to responsiveness. The findings showed no direct correlation of quality to
performance among the most groups of actors however there were some groups that have
direct relationship. This indicated the individualism of the majority of the group of actors
in making decisions regarding quality and trading of cabbage in the spot market chain.

Conclusions

Based on the findings of this study, the following conclusions are drawn.

1. The different criteria of product quality in terms as to the cabbages are free
from chemical residue, pests and diseases and physical injury; the variety, color and size
are specified and the cabbages are fresh, clean, fully trimmed, firm and crunchy were
considered.

2. Some of the service quality criteria were perceived specifically as to supplier
gives notice to the buyers about supply shortage and price changes and as to the actors
exert effort to produce/procure cabbages ordered however most of the criteria was
Quality and Performance in the Spot Market Chains for Cabbage
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49
sometimes perceived in terms as to supplier extends credit term to buyers or vice versa
and whether supplier extends support services to the buyers in the delivery and has
adequate logistics in trading.

3. The different criteria of functional quality used in purchasing cabbage in the
spot market were considered and it involved whether the supplier (seller) adheres to
production/procurement/delivery targets, has adequate supply, accepts orders and delivers
the cabbage when needed, as to the actors classified, accurately weighed and packed the
cabbages and is flexible in pricing and accepts payment term.

4. The actors considered most of the performance product quality satisfaction
such that the quality they produced/procured/sold/delivered meets their expectation and
the buyer’s requirement, satisfied with the volume they produced/procured/sold, always
achieve their production/procurement/delivery targets, satisfied to fulfill orders and
deliveries, the quality they supplied in the market is reliable and the buyers are always
satisfied as to variety of product, price and quality/quantity but not as to they are satisfied
selling on credit arrangement due to incompliance of buyers with the arrangement made.

5. Almost all of the respondents believed with the performance flexibility as to the
actors can produce/procure the desired volume when buyers needed it, exerts effort to
produce the desired volume and as to buyer is flexible to buy regardless of quantity and
quality except as to buyer and seller have little conflict in the business transaction.

6. The actors considered all the criteria of performance efficiency such that the
actors were happy to produce the desired volume out of their limited resources,
exertedeffort to reduce the cost of production and the actors were satisfied with the rate
of return to their investment and with the income received.
Quality and Performance in the Spot Market Chains for Cabbage
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7. The actors were undecided with the performance responsiveness in terms as to
the actors can supply the market with the desired quality/quantity, always schedule their
deliveries and find time to deliver when customers/markets need it the actors agreed as to
they always act on the demand/complaints of buyers related to quantity/quality.

8. There was a direct relationship of quality dimensions to performance
dimensions among some groups of respondents however there is no direct relationships
among the most groups of actors. This shows that majority of the group of chain actors in
the spot market decide independently with regards to quality and trading of cabbage.

Recommendations

Based on the conclusions drawn from this study, the following are suggested for
the improvement of quality and performance in the spot market chains for cabbage:

1. The perceptions on the product, service and functional qualities imply a
positive and suitable result, thus the actors involved should maintain or further enhance
the quality specifically as to the service quality of the cabbages
produced/procured/sold/delivered to ensure a continuous high quality of cabbages
available in the market.

2. The findings of the study are indicative of a very good performance of the
different chain actors in relation to product quality satisfaction, flexibility and efficiency
and a satisfactory performance as to responsiveness. These different chain actors should
upholdtheir performance in their vegetable trading business to maintain or attract more
customers.

3. The results of the study revealed several problems on quality and performance.
The following criteria were doubted by some actors which mean that these criteria were
Quality and Performance in the Spot Market Chains for Cabbage
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not considered sometimes or that the actors have difficulty dealing with it at times. This
criteria involved such as the satisfaction of sellers selling cabbages on credit
arrangement, the sellers having outstanding credit from their buyers or vice versa, the
seller extending support services to the buyer in the delivery of cabbages, the suppliers
having adequate logistics in trading, the actors supplying the market with desired
quantity/quality when needed, the actors scheduling their deliveries to meet the time in
the market and when customers need it. Some of these problems arose between or among
actors of cabbages which can also be solved by the actors involved. These actors should
be in conformity dealing with one another or else may cause problems between or among
them.
The concerned agencies of the government must strengthen their implementation
regarding the marketing of vegetables produced by local farmers otherwise develop
dynamic programs that boost up the advocacy on marketing of these vegetables. These
agencies should also provide a more comprehensive technical and financial assistance
most especially to the farmers of the local vegetable industry of the country.


4. The statistical data showed that majority of the different groups of actors decide
independently regarding the quality and trading of cabbage in the spot market. This result
indicated that majority of the actors only think of their interest in the business operation.
Thus, to ensure good quality and a more effective trading of cabbage in the spot market
chains, these different groups of respondents should consider the interest of every actor
involved.


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52
LITERATURE CITED
AUSTRALIAN CENTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH.

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from http://avrdc.org/publications/socio/veg_industry/Philippines.pdf

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ARAMYAN, L., J. M. CHRISTIEN, A. ONDERSTEIJN, G.J.M. OUDE LANSINK and

K. OLAF VAN. 2006. Quantifying the Agri-Food Supply Chain. Springer,

Dordrecht, Pp. 47-64.

BUREAU OF AGRICULTURAL STATICTICS. 2008. StatGuide for farmers.

Production and
Marketing
Statistics on: cabbage, carrots and white

potato. Benguet.Vol. 2, No. 2, P. 11.

BEAMON, B. M. 1998. Supply Chain Design and Analysis: Models and Methods.
International Journal of Production Economics. Vol. 55, No. 3, Pp. 281-294.

BENGUET SOCIO-ECONOMIC PROFILE. 2007. Economic Sector: Market

Structure/System of Vegetables. Provincial Planning and Development Office.

Benguet. Pp. 66-67.

BERELSON, B. and G. A. STEINER. 1964. Human Behaviour: An Inventory of

Scientific
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in Marketing Management. Kotler, P. Prentice Hall/Irwin 11th Ed. P.197.

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Relationships and Performance Outcomes. J. Op. Manage. Pp 17, 497-519.

CARTER, J. R. and L. M. ELLRAM. 1994. The Impact of Interorganizational Alliances

in
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Pp. 15-23.




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CHAMPION, S. C. and A. P. FEARNE. 2000. Supply Chain Management: A “First
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France.
Retrieved
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from
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CHRISTOPHER, M. G. 1998. Logistics and Supply Chain Management: Strategies for

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DRABENSTOTT, M. 1999. Consolidation in U. S. Agriculture Leading to New Rural

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

November 2010
Sir/ Madam,

The undersigned fourth year student taking up Bachelor of Science in
Agribusiness majoring in Enterprise Management at Benguet State University is
conducting a research entitled “QUALITY AND PERFORMANCE IN THE SPOT
MARKET CHAINS FOR CABBAGE.”

In this regard, may I ask a portion of your precious time to answer all the
questions to complete the research undertaking. Rest assured that all information you will
give be treated with utmost confidentiality.

Thank you very much and God bless.










Very truly yours,








SAMUEL L. DUYAN









Researcher

Noted:
Quality and Performance in the Spot Market Chains for Cabbage
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57
LEOPOLDO N. TAGARINO
Adviser


APPENDIX B
Interview Schedule

This researchaims to investigate the freshvegetablesupply networks. All information
solicitedwillbetreatedwithconfidentiality. Pleaseanswer the questions honestly by putting check mark [√] in
the appropriate box provided for. Thankyouverymuch!

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. 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 vegetablesyoufrequentlyproduce/procure and sell in the market?
[ ] Potato [ ] Cabbage [ ] Chayote[ ] Others, specify_______________
C. Who are the buyers of vegetables you produced/procured?
[ ] Assembler-Wholesalers [ ] Financier-Assembler-Wholesalers [ ] Financier-Assembler-Wholesaler-
Retailer
[ ] Trucker-Wholesalers [ ] Wholesalers [ ] Wholesaler-Retailers [ ] Retailers
D. Where do you sell the vegetables produced/procured?
[ ]La Trinidad Vegetables Trading Post [ ] Others, specify ____________________
[ ] Private Trading Center in La Trinidad, specify ____________________
[ ] Metro Manila, specify ____________________
E. PERCEPTIONS: QUALITY
Whatproductqualitycriteria do youperceive as having been the bases of the buyers in choosing or buying
the vegetables?
E.1. Product (Technical) Quality. Technical qualityis the physical description of the agricultural products.








1 2 3 4 5
1. Freedom from chemical residue. Strongly Disagree
StronglyAgree
2. Freedom from pests and diseases.
Strongly Disagree
StronglyAgree
3. Variety, color and size of cabbages are specified.
Strongly Disagree
StronglyAgree
4. Freedom from physical injury.

Strongly Disagree
StronglyAgree
5. Cabbages are fresh, clean and fully trimmed.

Strongly Disagree
StronglyAgree
6. Cabbages are firm and crunchy.
Strongly Disagree
StronglyAgree

What service qualitycriteria do youperceive as having been the bases of the buyers in choosing or buying
the cabbages?
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) extendscreditterm to buyers. Strongly Disagree
StronglyAgree
Quality and Performance in the Spot Market Chains for Cabbage
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2.Supplier has an outstandingloan/cash advancefrom the buyer. Strongly Disagree
StronglyAgree
3. Supplier gives notice to the buyers about supply shortage and the price changes.






Strongly Disagree
StronglyAgree
4.Supplier exerts effort to produce/procure cabbages ordered. Strongly Disagree
StronglyAgree

5. Supplier extends support services (comboys, packing) to the buyer in the delivery of cabbages.







Strongly Disagree
StronglyAgree
6. Supplier has adequate logistics (facilities, equipments, workforce) in trading.







Strongly Disagree
StronglyAgree

Whatfunctionalqualitycriteria do youperceive as having been the bases of the buyers in choosing or buying
the cabbages?
E.3.Functional Quality. Functional quality is the process of delivering the products to customers.




1 2 3 4 5
1. Supplier (seller) adheres to production/procurement/deliverytargets.







Strongly Disagree
StronglyAgree
2. Supplier classifies/grades the cabbages properly.
Strongly Disagree
StronglyAgree
3. Supplier accurately weighed and packed the cabbages. Strongly Disagree
StronglyAgree
4. Supplier has adequate supply of cabbages when the buyers want it.






Strongly Disagree
StronglyAgree
5. Supplier accepts orders and delivers the cabbages when needed.








Strongly Disagree
StronglyAgree
6. Supplier is flexible in pricing the cabbages and accepts payment term.







Strongly Disagree
StronglyAgree



F. PERFORMANCE (Operations): Assess the performance of the supply network operation using the
following metrics:
F.1. Product Quality. Food quality consists of product safety, the sensory properties, and product reliability
and convenience.



1 2 3 4 5
1. The quality I produced/procured/sold meets my expectation. Strongly Disagree
StronglyAgree
2. The quality of cabbages delivered meets the buyer’s requirements.







Strongly Disagree
StronglyAgree
3. I am satisfied with the volume I produced/procured/sold to the buyer.







Strongly Disagree
Strongly Agree
4. I always achieve my production/procurement/delivery targets. Strongly Disagree
Strongly Agree
5. I am satisfied to fulfill the orders and deliveries when needed. Strongly Disagree
StronglyAgree
6. I am satisfied selling to buyers on credit arrangement. Strongly Disagree
StronglyAgree
7. The quality of cabbages I supplied in the market is reliable.Strongly Disagree
StronglyAgree
8. The buyers are always satisfied as to variety of product, price, and quality/quantity.






StronglyDisagree
Strongly Agree

F.2.Flexibility. Flexibility indicates the degree to which supply chain can respond to changing environment
and extraordinary customer service requests.
1 2 3 4 5
1. I can produce/procure the desired volume when buyers needed it.







Strongly Disagree
Strongly Agree
2. I exert effort to produce the desired volume and quality when buyers demand it.









Strongly Disagree
Strongly Agree
3. The buyer is flexible to buy cabbages regardless of quantity and quality.







Strongly Disagree
Strongly Agree
4. The buyer and seller have little conflict in the business transaction.







StronglyDisagree
Strongly Agree

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F.3. Efficiency.Efficiency measures how well the resources are utilized which include production costs,
profit, return on investment and inventory.


1 2 3 4 5
1. I am happy to produce/procure the desired volume out of my limited resources.







StronglyDisagree
Strongly Agree
2. The income I received is adequately rewarding.

StronglyDisagree
Strongly Agree
3. I exert effort to reduce the cost of production/procurement. StronglyDisagree
Strongly Agree
4. I am satisfied with the rate of return to my investment. StronglyDisagree
Strongly Agree

F.4. Responsiveness.Responsiveness aims at providing the requested products with a short lead time. This
involves the interaction between buyers and suppliers on issues related to product, payment, and
information flows and quality, there are significant effects in terms of speed and delivery punctuality.








1 2 3 4 5
1. I can supply the market with desired quality/quantity when needed.







StronglyDisagree
Strongly Agree
2. I always schedule my deliveries to meet the time in the market.StronglyDisagree
Strongly Agree
3. I always find time to deliver cabbages when customers/markets need it.







StronglyDisagree
Strongly Agree
4. I always act on the demand/complaints of buyers related to quality/quantity.







StronglyDisagree
Strongly Agree






Quality and Performance in the Spot Market Chains for Cabbage
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Document Outline

• Quality and Performance in the SpotMarket Chains for Cabbage
  • BIBLIOGRAPHY
  • ABSTRACT
  • INTRODUCTION
  • REVIEW OF LITERATURE
  • METHODOLOGY
  • RESULTS AND DISCUSSION
  • SUMMARY, CONCLUSION AND RECOMMENDATION
  • LITERATURE CITED
  • APPENDICES

---