BIBLIOGRAPHY TAD-O, GRETCHEN N. APRIL 2012.A...
BIBLIOGRAPHY
TAD-O, GRETCHEN N. APRIL 2012.A Diagnostic Study on the Potential of
Organizing Consumers Cooperative inAliaga,Bambang, NuevaVizcaya. Benguet
State University, La Trinidad, Benguet.
Adviser: David Joseph L. Bognadon, MSc.
ABSTRACT
The study was conducted to determine the potential of organizing consumers’
cooperative in Aliaga, Bambang, NuevaVizcaya. It aimed to determine the socio-economic
profile of respondents, perception of people about consumers’ cooperative and their willingness
to support the organization of a consumers’ cooperative.
The respondents were one hundred thirty household from the area of study. Survey
questionnaire was used in gathering data. Personal interview and focus group discussion was
done to some respondents. Data gathered was analyzed using percentage and frequency counts.
The study found out that majority of respondents’ ages ranges from 26 to 45, female,
married, and attended formal education. Most respondents were farmers and house keeper and
most have an income of Php 100,000 and below per year. Majority were member of an
organization and association for 1-5 years.Some were officers of the organization.
The result showsthat majority have good perceptions about the consumers’ cooperative.
The respondents mentioned that if the cooperative will push through, it will help the community
in terms of financial assistance, provides the right kind, quality, quantity and price of
merchandise and it can help individuals in terms of savings. Although, with this perception, most
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga, Bambang,
Nueva Vizcaya/Gretchen N. Tad‐o. 2012
mentioned that the success of cooperative if it will be established, will depend on the people who
will manage this cooperative. Majority of them wants to join the said cooperative.
Most respondents often purchased rice, sugar, lard and other house hold needs. Majority
were purchasing their needs in sari-sari store weekly or daily. This will depend on their budget.
Even though most of the respondents were purchasing in sari-sari stores, this is not enough
because some merchandise were not available.
Majority of the respondents mentioned that there can be qualified officers that can lead
the cooperative. Their main reasons were that there are still people who could be trusted and
honest. Furthermore, in case consumers cooperative will be organized, the respondents are
willing to contribute a share capital and the amount will depend on the group discussion.
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga, Bambang,
Nueva Vizcaya/Gretchen N. Tad‐o. 2012
TABLE OF CONTENTS
Page
Bibliography.................................................................................................... i
Abstract............................................................................................................ i
Table of Contents.............................................................................................
v
INTRODUCTION
Rationale.............................................................................................. 1
Importance of the Study.......................................................................
2
Statement of the Problem.....................................................................
2
Objectives of the Study........................................................................
3
Scope and Delimitation of the Study...................................................
3
REVIEW OF LITERATURE
Purpose of a Cooperative.....................................................................
4
Cooperatives and Community Development.......................................
4
Consumers' Cooperative Defined.........................................................
5
Type of Consumers' Cooperative.........................................................
5
How to Organize Cooperative..............................................................
6
Why Organize a Cooperative?.............................................................
8
Starting a Cooperative Store................................................................
9
The Rights of the Consumers...............................................................
10
The Cooperation of Consumers...........................................................
11
Common Bonds of Interest for
Consumers’ Cooperative......................................................................
12
Objectives of Consumers Cooperative.................................................
14
Benefits in Joining a Consumers' Cooperative....................................
16
Definition of Terms..............................................................................
16
METHODOLOGY
Locale and Time of the Study..............................................................
18
Respondents of the Study.....................................................................
18
Research Method..................................................................................
18
Data Gathered......................................................................................
18
Data Analysis.......................................................................................
21
RESULTS AND DISCUSSION
Transect Map at Aliaga, Bambang,
Nueva, Vizcaya....................................................................................
22
Demographic Profile of Respondents..................................................
22
Perception of Respondents about
Consumers’ Cooperative......................................................................
27
Potential of the Community about
Establishing Consumers’ Cooperative.................................................
29
Perception of Respondents to the Sari-Sari Stores...............................
33
SUMMARY, CONCLUSIONS, RECOMMENDATIONS
Summary.............................................................................................. 35
Conclusions.......................................................................................... 36
Recommendations................................................................................ 37
LITERATURE CITED....................................................................................
38
APPENDIX
A. Letter to the Respondents..............................................
39
B. Survey Questionnaire.....................................................
40
1
INTRODUCTION
Rationale
Cooperative are business enterprises formed by the spontaneous and voluntary
action of consumers within a community, or office who have identical needs (Onaganet
al., 1973). Their association is motivated by the spirit of mutual service and mutual
benefits through their mutual action. They achieved this by dedicating their enterprise to
an unselfish struggle for an ultimate goal of economic sufficiency for all. Cooperative
societies constitute the biggest type of all cooperative enterprises, at the same time the
most fundamental and it involves all people, since all people are consumers.
The Philippine, like any other developing nation, has genuine desire to improve
the well being of the less fortunate segment of the population. The creation and
development of cooperative is a means of improving the income and the purchasing
power of the poorer sector of the economy, generally the farmers and ultimately attain
equitable distribution of wealth (Punzalan, 1981).
Bambang, Nueva Vizcaya is politically subdivided into 25 barangays. One of its
barangay is Aliaga which was divided into 6 sitios/ “purok”.Barangay Aliaga has 582.79
hectares and rich in natural resources, one is the mountain for grazing purposes for
animals and tree planting purposes and also a river for the extraction of sand and
gravel.The distance of market place to the Aliagacenter is seven kilometers.
Barangay Aliaga has 1,610populations and 427 household. Aliaga is basically an
agricultural barangay mostly are engage on farming activities. Income Generating
Projects (IGP) assisted by the government like pig and cattle dispersal had been practice
as an additional source of income, there are some also have passengers tricycle while
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some depends onlabor work as their livelihood. In Aliaga, sari-sari stores exist in per
purok. Total of stores in this barangay are twenty but they have an inadequacy of
merchandise and services, some also has poor services and high prices. This is because of
lack of capital.
Bambang, Nueva Vizcaya have existing cooperatives who offered savings and
credit services like Coop Bank, Tam-an Cooperative, and St. Catherine Cooperative. But
for the consumers’ cooperative, they have not fully organized specifically in Barangay
Aliaga, Bambang, NuevaVizcaya. Thus, the major concern of the study is to find out the
potential of establishing consumers’ cooperative in the area.
Importance of the Study
The outcome of the study couldserve as a guide in a decision of establishing a
consumers’ cooperative in the study area. It would provide information as basis of
decision. Since the community has no consumers’ cooperative yet, this could help them
minimize their marketing problems.
The researcher will gain essential knowledge about research and about organizing
cooperatives. Resultscould also beaguideto students who will be conducting a study
on the same field and interest.
Statement of the Problem
The study deals with the identification on the potential of organizing a consumers’
cooperative specifically in Aliaga, Bambang, Nueva Vizcaya. The study therefore aimed
to answer the following questions:
1. What is the socio-economic profile of the respondents?
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2. What is the perception of people in that area about consumers’ cooperative?
3. Is there a potential of organizing consumers’ cooperative?
Objectives of the Study
The study aimed to:
1. determine thesocio-economic profile of the respondents;
2. determine theperception of people about consumers’ cooperative; and
3. determine the potential of establishing consumers’ cooperative.
Scope and Delimitation of the Study
The main focus of the study was to analyze the potential of organizing consumers
cooperative. The study deals on the perception of the residence about consumers’
cooperative and the willingness of people to support the consumers’ cooperative.
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REVIEW OF LITERATURE
Purpose of a Cooperative
A cooperative may be organized with at least one purpose. The purpose defines
the type of cooperative. Following are the types of cooperative as stated in the Art. 23 of
the Cooperative Code of the Philippines: a) Credit Cooperative; b) Consumers
Cooperative; c) Producers Cooperative; d) Marketing Cooperative; e) Service
Cooperative; and f) Multi-purpose Cooperative.
Aside from the specific purpose for which a cooperative has been set up, it shall
provide maximum economic benefits to its members, teach members efficient ways of
doing things in a cooperative manner, propagate cooperative practices and new ideas in
business and management, and allow the lower income groups to increase their
ownership in the wealth of this nation (Garcia and Guanzon, 2004) as cited by Garcia
(2008).
Cooperatives and Community Development
The word cooperative was derived from a French word “cooperari” which means
to work together. This meaning has been expanded to convey the primary aims of the
various types of objectives. In general, the common definition of a cooperative denotes a
democratic and voluntary association of individuals with common bond of interests who
joined together and pooled their resources in order to provide themselves with essential
goods and services at cost. In comparison to the meaning of community development, the
latter also means working together to attain a common objective. People in the
community organize themselves under their own free will and work as a team to solve the
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problems of their community, and thus create a more desirable place for them and their
children.
The ultimate social objective of a cooperative is community building. This is the
same with community development. Both use the principle of self-help and involvement
in their methods of solving community problems. Moreover, both depend on cooperation
and teamwork in attaining their goals. Cooperatives are primarily concerned with the
development of human resources. The same is true with community development. Both
consider man as the most important resource and factor of development (Fajardo and
Abella,1999).
Consumers’ Cooperative Defined
It is a voluntary association of a group of persons (at least 15 members), with the
common bond of interest, who agreed to pool their resources together to provide
themselves with quality goods and services at reasonable prices. In the process of its
business operations, the consumers’ cooperative may make profits (or net savings as the
more proper terms in cooperative parlance). These are equitably distributed to the
cooperative members in the form of patronage refund and interest on capital. The
essential commodities which are sold in aconsumers’ cooperative have lower prices
because these are bought in bulk (Fajardo and Abella, 1999).
Type of Consumers’ Cooperative
According to Onaganet al.(1973), one type of consumers’ cooperative is
commodity cooperatives. A commodity cooperative is primarily engaged in the
procurement of essential merchandise to serve the needs of its members. It could take the
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form of a general store, or a sari-sari store, in which all the essential needs of members
may be purchased. The store acts as the purchasing agent of the members to acquire
needed commodities of the right quality and price.
Consumers’cooperative stores may be organized in any community where the
people are not adequately and satisfactorily served by existing profit enterprises.
How to Organize Cooperative
According to Fajardo and Abella (1999), organizers have to determine first the
feasibility of establishing a cooperative in the community or institution. The following
essential requirements should be surveyed:
1.Felt need. There must be a reason for organizing a cooperative. If the people
need a cooperative for the solution of their problems, then it would be less difficult to
organize one. Usually, a need for a cooperative arises if existing business organizations in
the community are inefficient and abusive. Conditions, such as high interest rates, poor
quality of goods and services, high prices, financial production, and marketing problems
encourage the organization of cooperatives. People like to buy better goods and services
at reasonable prices. On the other hand, producers want fair price for their products.
2. Volume of business. Sufficient volume of business is needed to pay the fixed
and variable costs of operations, such as rentals and salaries of employees. The
cooperative, therefore, has to attract more members and costumers to increase its volume
of business. This can be done by improving the quality of its goods and services at
reasonable prices.
3. Availability of qualified officers. Management constitutes the most important
factor in the success of a cooperative. Men of integrity and honesty are the proper
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individuals who should manage cooperatives. In many instances, there are qualified
persons but they are not willing to serve in the cooperative. They would rather work in
commercial and industrial firms where salaries and fringe benefits are much higher. At
any rate, the Cooperative Authority has a management program for improving the
competence of cooperative officers through trainings and education.
4.Adequacy of facilities. When starting a cooperative, it is not advisable to begin
with a plush office and expensive facilities. Such manifestation of ostentation should not
take place in a cooperative organization. As long as the available facilities are adequate to
ensure the efficiency of the business operations of the cooperative, then it will be a good
enough to start a cooperative.
5. Opportunities for growth. A cooperative has to be dynamic in order to be able
to meet effectively changing needs and problems of its members and the community. It
has to expand and diversify its business operations. Organizers must have good feasible
plans for business expansion. A businessorganizationhas to survive and be successful for
a long time and not for a brief and limited period.
6. Other requirements. A large number of residents who are willing to patronize
the cooperative are needed. The solution in preparing them for membership in a
cooperative is by first organizing them into semi-cooperative groups and organizations at
the barrio-level. Given enough time, this measure is expected to fulfill the social
requirements of the organization of barrio residents into a cooperative. Later, these
groups and organizations can be brought into full-pledged cooperative at the multi-barrio
or municipal level. This measure in turn measures that the economic requirements for the
successful operation of a cooperative are adequately met.
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Why Organize a Cooperative?
Anonymous (2008), cooperative is organized to improve community member’s
income or economic position or to provide a needed service. This may achieve through
one or more of the following:
1. Marketing Activities
a. Improve bargaining power. Combining the volume of several members
leverages their position when dealing with other businesses;
b. Reduce costs. Volume purchasing reduces the purchase price of needed
supplies;
c. Earnings of the cooperative returned to individual members lower their
costs;
d. Obtain market access or broaden market opportunities. Value is added
to products by processing or offering larger quantities of an assured type and quality to
attract more buyers;
e. Improve product or service quality-member satisfaction is built by
adding value to products, competition the cooperative provides and improve facilities,
equipment and services.
2. Purchasing Supplies/Services
a. Obtain products or services otherwise unavailable. Often provide
services or products that would not attract other private businesses;
b.Reduce
cost/Increase
income.
Reducing the cooperative’s operating
costsincreases the amount of earnings available for distribution to members to boost
theirincome.
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Starting a Cooperative Store
Of all types, a cooperative store is the simplest and the easiest to organize. It does
not require a big number of members, nor a big amount of capital to start. In order to
enjoy immediately the benefits of cooperation, people have often organized on a humble
beginning. With whatever amount of capital pooled by them, the society could start as a
buying club. One or more articles of actual necessities may be purchased. The base of
operation may be the house of a member-centrally located and equally accessible to all.
Usually it is in the house of the manager or treasurer. Renting a store, no matter how
small, could be dispensed with at the start.
Before joining, prospective members must have first a clear understanding on the
part of the members of what a cooperative is, how it operates, and why is it organized.
Then, they must be willing and able to participate intelligently, support the organization
with their resources and assume the responsibilities of being members or officers. Also, a
number of them must have at least some knowledge or experience in running the business
and in making sound managerial decisions. All of these clearly point out that the
prospective members must have certain skills and attitudes and must be capable of
sustained cooperative behaviour, before they can be organized into a cooperative.
Members understand the handicaps they encounter at the start, but with resolve
and determination, they are willing to forego the luxury of a well-planned and well-
stocked store. Often, they take turn and contribute their services free. The manager and
the treasurer usually serve without compensation at the start. As the business grows, a
permanent store is eventually located at a place, equally accessible and convenient to all
members.
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The Rochdale store, from which is patterned the humble beginning of many
consumers cooperative societies, started in an old warehouse, which was rented and
repaired for the purpose, on a cooperative effort by the members. With the little amount
left available for the purchase of merchandise, only five items were purchased-flour,
oatmeal, butter, sugar and wax candles. Sales were made on evenings, after work hours,
three days a week. Eventually, as the business grew and members increased in number,
sales hours became a daily affair during the evenings. Later the members enjoyed a full
day service the whole week from early morning to late evenings (Onaganet al., 1973).
Originally, the financial requirement in organizing a cooperative was Php 25,000
and membership was 250. The value of one share of stock was Php 100. However, in
view of the great difficulties of organizing cooperatives, the defunct Bureau of
Cooperatives Development has reduced the financial requirement to at least Php 5,000
and membership of 25. At present, only 15 members or more natural persons who are
Filipino citizens, of legal age, having a common bond of interest and are actually residing
or working in the intended area of operation may organize a cooperative. The value of
the shares ofstock shall be determined by the members themselves (Fajardo and Abella,
1999).
The Rights of the Consumers
Modern marketing does not solely imply anymore the transfer of goods from the
producers to the consumers. Its goal is to satisfy the consumers. However, in more ways
than one, the consumers are not satisfied. Product pricing is usually not fair. Quality is
not good. And essential goods often disappear in the market and then re-appear with
higher prices.
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The principal right of a consumer is to get his money’s worth. However, the
presences of exaggerated or incorrect information about the products and even deliberate
deceptions have clearly violated the fundamental rights of consumers. For instance,
slightly used home appliances are repainted and then sold as brand new products. Even
lots that do not exist are being sold. Of course, consumers have the right to complain but
this is only in theory. The complaints of poor consumers are not given much attention.
Legal actions can be taken against the producers/sellers. But the high cost of litigation is
enough to discourage a poor consumer to pursue his case.
Evidently, individual consumers cannot effectively protect their interests against
the abuses of producers/sellers. It is only a large and efficient organizations that can
possible minimize business malpractices. This is the government. It should be more
sincere and determined in promoting the welfare of the consumers. Businessmen are
afraid to abuse the consumers if they know the government does not tolerate their
business malpractices. Another way of fighting business abuses is to form a large group
of consumers which is to form a large group of consumers which is determined to protect
the legitimate interests of the members (Fajardo and Abella, 1999).
The Cooperation of Consumers
Consumers represent the demand in the market while the producers/sellers
constitute supply. The interaction between supply and demand forms the laws of the
market. When the demand is greater than the supply, prices increase and when the supply
is greater than demand, prices decrease. This takes place in a free market economy which
means the government does not interfere in supply and demand of goods and services.
Adam Smith believed that this is the best way to promote the interests of the consumers.
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Through free competition, Smith (Father of Economics) claimed that better quality and
lower prices of goods could be produced.
Unfortunately, the real market is not perfect. It does not operate like the
theoretical framework of the classical economists headed by Smith. For instance,
producers intentionally limit their supply in order to increase their price like what the
OPEC countries have been doing.
A very effective way of protecting consumers’ interests is through the
organization of consumers’ cooperative. The consumers themselves form their own store.
Therefore, they can decide the quality, quantity, and price of their own goods for sale.
Naturally, they do not cheat or exploit themselves. They are the owners and at the same
time the buyers of their own products.
A consumers’ cooperative is a kind of organization which even the poor can join.
In fact, a consumers’ cooperative is organized primarily for the welfare of the poor
consumers who suffer most from abuses of capitalism. All over the world, there are many
successful consumers’ cooperatives organized by poor people. Of course, the best model
is the cooperative store of the Rochdale pioneers. They have shown to the whole world
that group cooperation could successfully defy the evils of capitalism(Fajardo and
Abella, 1999).
Common Bonds of Interest for
Consumers Cooperative
According to Onaganet al.(1973), the bond that ties members into a cooperative is
some needs common to the group. People who are similarly situated tend to make a
common cause. Consumers, therefore, realizing their economic weakness as individuals
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in the bargaining end of the distributive process, associate together believing that with
their mutual action they could realize what they want which, without their cooperative,
could be impossible of realization.
Some consumer needs which may serve as a common bond of interest,
necessitating group action, are listed below. Any one or more of these may be a sufficient
reason to validate cooperative action:
1. Inadequacy of merchandise. The existing stores in the community may not
adequately provide the kind of merchandise, both in quantity and quality that are needed
by the people.
2. Inadequacy of service. The number of stores existing to serve the community
cannot cope with the demand for service by the people. This compels some people to go
far to get the desired merchandise.
3. Poor service. Existing retailers cannot satisfy service requirements of the
community. Due to lack of training in modern retailing, or to an obsolete or antiquated
system distribution, customers are left to their resources in determining the merchandise
they need. No professional advice is rendered to consumers who are usually undecided
and cannot make up their minds.
4. High prices. Sometimes prices charged to costumers become unreasonably
high. When the existing retailers enjoy monopoly position in the market prices is
sometimes charged as high as the market may bear.
5. Unethical trade practices. In a profit enterprise system the effort to make high
profit or to survive economic competition causes the retailer to resort to all kinds of
unethical practices. Adulteration of goods is most common in a market where
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competition is brisk. Thus vinegar is mixed with water to press the price down, even
lower than the procurement price. For the same reason, a high grade of rice is mixed with
cheaper variety. Underweighting is common along unprincipled merchants. Dishonesty
of some merchant knows no bounds. Substitution of inferior goods sometimes happens
where sales are made by samples. Inferior goods or unknown products are sometimes
labelled with popular brands. Imitation of popular brands is often practiced.
Misrepresentation is often resorted to in an effort to high-pressure an unknowing
customer.
6. Discriminating attitude of retailers. Some retailers openly discriminate against
the common classes, especially where there are no competing stores in the community.
They serve pleasantly whom they respect and treat others, usually the poorer classes, with
corresponding disrespect. In some cases, price discrimination exists. There is one price,
usually lower, to some special customers and there is another scale, usually higher, to the
ranks and file of customers. The special customers are usually those who are considered
the “well-to-do” and who do not really feel the difference in prices, while the ordinary
rank and file are composed of the poorer classes for whom a centavo makes considerable
weight of difference.
Objectives of Consumers Cooperative
Primary objective. The primary objective of all cooperatives lays emphasis on
service. This is vividly demonstrated in consumers’ cooperatives. Members recognize the
need for mutual cooperation because they want to enjoy certain services that they cannot
enjoy from profit operators in their community. Acquiring the right kind of merchandise
that truly and fully satisfies the need of people is a perennial problem of well-intentioned
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merchants. To the great majority of operators in the trade, however, they are more
interested on the quantity of benefits (profit) they can make out of the people they serve;
rather than be concerned with what and how much service they can render them.
Cooperatives practice the “do-it-yourself” method in the operation of their
business as the best means of getting what member want-of the right type, quantity and
quality and at the right price at the time they are wanted. “If you want the best service,
you must act your own serviceman” is the watchword of consumers’ cooperation. No one
knows about your needs better than yourself, neither does anyone know how to serve that
need with utmost satisfaction better than yourself.
A cooperative store is the clearing house of members’ needs. The store-their own
serviceman-therefore, exists solely to find the most satisfactory method of serving their
needs.
Saving, a secondary objective. The profit motive expresses itself in a cooperative
by the instinctive interest of members in the savings they automatically get out of their
consumption. Every time a member buys from his cooperative store, the margin created
by the purchase, which accumulates as profits in the case of profit stores, is now saved
and accumulated for the credit of the buying member.
It is a cooperative practice to sell goods to its members at prevailing market price-
the retail price charged by other stores in the community. When a member makes a
purchase from his cooperative, therefore, the spread between total costs and retail price
becomes a residue, which belongs to this particular member and not the cooperative. This
is credited to him as his saving which accumulated up to the end of the accounting period
when the entire amount saved is refunded to him in the form of patronage dividend.
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This system of accumulating savings is painless. Outside his cooperative store, a
member would pay the same amount on similar goods without the expectation of any
return. When made in his cooperative store, he knows that he is accumulating savings
which belongs to him. This savings, therefore, becomes an objective-a necessary
incentive-that acts as a drive to develop membership loyalty.Onlymismanagement and
dishonesty of officials will poison the drive (Onaganet al., 1973).
Benefits in Joining a Consumers’
Cooperative
1. A member can regularly avail for himself and his family goods and other needs
at the right quantity and at reasonable prices.
2. A portion of the net savings of the consumers’ cooperative is given to each
member as patronage refund in proportion to his purchases. Members also acquire
interests on their shares.
3. Marketing problems of members are minimized like haggling over prices and
too much going around looking for quality goods which are both time-consuming.
Likewise, impulse buying is avoided.
4. Members ofthe cooperative develop desirable habits and attitudes that are
necessary in improving their social and economic conditions (Fajardo and Abella,1999).
Definition of Terms
Capital. Refer to the sum total of members share capital including deposits,
revolving capital, subsidies, donations, legacies, grants, aids, land structures, plants,
equipment facilities, machines and other assets of a cooperative.
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Diagnostic study.A study wherein the researchers analyze the area out of the
situation, if there is really a potential of organizing cooperative.
Members.Includes a person either natural or juridical who adhering to the
principles set forth in this Code and in the Articles of Cooperation, has been admitted by
the cooperative as member.
Patronage
refund. Refer to the amount returned to individual members who
patronize the goods and services of the cooperative in proportion to their individual
patronage.
Perception. The attitude or understanding based on what is observed or thought.
Potential.Expressing power, possibility.
Sharecapital. Refer to the money paid or required to be paid by the members for
the conduct of the operations of the cooperative.
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METHODOLOGY
Locale and Time of the Study
The studywas conducted in Aliaga, Bambang, Nueva Vizcaya from December
2011 to January 2012.
Respondents of the Study
The respondents of the study were theresidents in Barangay Aliaga, Bambang,
NuevaVizcaya(Figure 1 and 2). A total of 130 householdservedasrespondents.
Respondents werechosenfrom the six sitios. Random sampling was done in the selecting
of respondents.
Research Method
Prepared survey questionnaires were distributed to the respondents. Personal
interview was also done with some respondents.Focus group discussion was also
employed to validate data. As to personal interview, we (as researchers) go house to
house. Focus group discussion was done through the group of people who were in the
stores, school, plaza or houses.
Data Gathered
Data gathered includes the following information; a) personal profile such as age,
gender, civil status, educational background and occupation of respondents; b) perception
of respondents about consumers’ cooperative which is organized and owned by the
community, help them in terms of financial assistance, and help them to have the right
commodities; and d) potential of establishing consumers cooperative.
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
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Figure 1. Location map of Bambang
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Figure 2. Transect map at Aliaga, Bambang, NuevaVizcaya
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Data Analysis
The data were tabulated and classified according to the objective of the study.
Data were analyzed using frequency counts, percentages and appropriate statistical tool.
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RESULTS AND DISCUSSION
Transect Map at Aliaga, Bambang
Nueva, Vizcaya
Figure 1 presents the map that will show the distance of Bambang Municipal
Market to Aliaga, Bambang(where the study was conducted). From Aliagacenter, the
specified distance to the market place is seven kilometers. Fare per individual is 18-20
pesos (one way).
Figure 2 also presents the transect map at Aliaga, Bambang, Nueva Vizcaya. This
shows that most houses in per sitios (specificallypurok 6)were closed to each other and
some aredistant.Mostly, per group of houses have a distance of one ortwo
kilometers. Most stores per sitios are in few distances from each other.
Demographic Profile
of Respondents
Table 1 presents the demographic profile of respondents. It presents their age, sex,
civil status, occupation, educational attainment, membership to community organization,
type of the organization and type of membership, years of membership to the
organization, position as an officer, sources of income of the family and household
income per annum.
Age. Twenty three(18%) of the respondents belonged to ages 25 and below.
Thirty four (26%) of them aged 26-35, thirty one respondents (24%) belonged to 36-45
years old,and 18% were 46-55 years old while 14% belonged to 56-65 years old. This
means that most of the respondents were at the middle age.
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Gender. Majority of the respondents were female which composed of 65% and
only 35% were male.
Civil
status. Majority of the respondents (88%) were married , 8% were single
and 4% were widow.
Educational
attainment.Fifty-one percentof the respondents have not finished high
school while 24% have reached or finished college. This indicates that most of the
respondents did not reached tertiary level.
Sources of income. Farming (77%) is the main source of income of the
respondents. This was followed by the sari-sari store business with 11.5%. Other source
of income of the respondents are tricycle operation, pig raising, employment such as
OFW, sea man and gasoline boy, vending, labor and government employee/official
(barangay treasurer/janitor).This means that most respondents are farmer, housewife and
business man. Other respondents also are skilled worker like electrician and construction
worker.
Household
income. Majority (75%) of respondents were below Php 100,000
household income per annum. Sixteen percent (16%) were Php 101,001 -Php 150,000
income followed by 5%Php 150,001–Php 200,000 income per year and just 4%
Php 200,001andabove household income.
Table 1. Demographic profile of respondents
CHARACTERISTIC FREQUENCY
PERCENTAGE
Age (in years)
25 and below
23
18
26-35
34
26
36-45
31
24
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Table 1. Continued...
CHARACTERISTIC FREQUENCY
PERCENTAGE
46-55
24
18
56-65
18
14
TOTAL 130
100
Gender
Male
46
35
Female
84
65
TOTAL 130
100
Civil status
Single
10
8
Married
115
88
Widow
5
4
TOTAL 130
100
Educational attainment
Elementary Undergraduate
12
9
Elementary Graduate
22
17
High school Undergraduate
32
25
High school Graduate
33
25
College Undergraduate
15
12
College Graduate
13
10
Vocational/Technical
3
2
TOTAL 130
100
Sources of income*
Farming
100
77.00
Sari-sari store
15
11.50
Tricycle operation
13
10.00
Swine raising
6
5.00
OFW
2
1.50
Employed
2
1.50
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Table 1. Continued...
CHARACTERISTIC FREQUENCY
PERCENTAGE
Vending
9
7.00
Labor 12
9.00
Government employee
5
4.00
Household income per annum
Below Php 100,000
97
75
Php 100,001-Php 150,000
21
16
Php 151,001 -Php 200,000
7
5
Above Php 200,001
5
4
TOTAL 130
100
*Multiple response
Table 2 presents the organizational affiliation of respondents. The result shows
that 27% of the respondents were not a member of any organization while 73% of them
were members. Of the 73% respondents that are members, 35% were cooperative
memberslike in St. Catherine, Multi-purpose Cooperative,Alay-kapwa, and Tam-an
Cooperative while 65% were in an association which are Abot-palad, Card Bank, and
RSPI. Regarding the type of involvement in the organization, 92% of them were
members and 8% were officers. Majority were members of organization for 1-5 years and
a few for 6 and above years. As to the positions of officers in the organization, 25% were
BOD and treasurer, 12.5% were secretary, business manager, auditor and SK
chairman.This means that at least a number from the respondents are knowledgeable in
leading an
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organization which may help in case a consumers’ cooperative will be organized.
Table 2.Organizational affiliation
CHARACTERISTIC FREQUENCY
PERCENTAGE
Membership in organization
Member
95
73
Not a member
35
27
Type of organization
Cooperative
33
35
Association
62
65
TOTAL 95
100
Type of involvement
Member
87
92
Officer
8
8
TOTAL 95
100
Years of affiliation
1-5
57
71
6-10
16
20
10 and above
7
9
TOTAL 80
100
Positionsheld
BOD
2
25.00
Treasurer
2
25.00
Secretary
1
12.50
Business manager
1
12.50
Auditor
1
12.50
SK chairman
1
12.50
TOTAL 8
100.00
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Perception of Respondents
about Consumers’ Cooperative
Table 3 presents the perception of respondents about consumers’ cooperative. The
result shows that majority of respondents have positive perception about the cooperative.
As stated by Fajardo and Abella (1999), consumers’ cooperative were defined as
the voluntary association of a group of persons (at least 15 members), with common bond
of interest, who agreed to pool their resources together to provide themselves with quality
goods and services at reasonable prices. This means that the people who will join the
cooperative are the owners. Thus, the table shows that most of the respondents (90%)
agree that consumers’ cooperative are organized and owned by the community, 1%
disagree, 5% were not sure if cooperatives are really owned by the community because of
their past experience and 4% have no idea about cooperatives.
Table 3. Perception of respondents about consumers’ cooperative
RESPONSE
Agree
Not agree
Maybe
No idea
PARTICULAR
F % F % F % F %
Organized and owned by the community 117 90
1
1
7
5
5
4
Helps the community in terms of
114 88 1 1 10 7 5 4
financial assistance
Provides right merchandise
114 88
1
1
10
7
5
4
Have right quantity, quality and price
114 88 1 1 10 7 5 4
of goods
Help community in terms of savings
114 88
1
1
10
7
5
4
An organization that won't last
1
1
46
35
78 60 5
4
Willingness
to
join
120
92
6 5 0 0 4 3
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As to the consumers’ cooperative as an organization that helps the community in
terms of financial assistance, 88% of respondents agreed,1% did not agree and 7% were
not sure if it really helps the community in financial aspect because they haven’t tried it
yet. The result shows that majority of respondents positively think that consumers’
cooperative can help the community in terms of financial aspect.As stated by Fajardo and
Abella (1999), the ultimate social objective of a cooperative is community building. This
is the same with community development. Both use the principle of self-help and
involvement in their methods of solving community problems.
Consumers’ cooperative provides the right commodities. Eighty eight percent of
respondents agreed to this statement, 7% said that they were not sure if it can really
provide the right merchandise and some have no ideas about cooperatives. Many (88%)
of respondents also said that consumers’ cooperative can provide the right quantity,
quality and price of merchandise. Some said that they were not sure if it can really
provide it because they haven’t tried having such organization and some were not aware
about consumers’ cooperative. This means that consumers cooperative can be a great
help to the community, it can provide the needed merchandise through mutualcooperation
of the community. This was stated by Onagan (1973), which says that good service was
the primary objective of cooperatives.
Most (88%) of respondents answered that consumers’ cooperative can help
the people in terms of savings, 1% don’t agree, 7% said that maybe, it can help the
people and 4% have no idea. As stated by Fajardo and Abella (1999), a portion of the net
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savings of the consumers’ cooperative is given to each member as patronage refund in
proportion to his purchases. Members also acquire interests on their shares.
As for the consumers’ cooperative as an organization that won’t last, 1% agreed
and 35 % disagreed. Majority (60%) of the respondents said that they were not sure
because this will depend on the management or the officers who will handle the said
cooperative.
Majority (92%) of respondents were willing to join the said cooperative if
organized, 5% were not willing and 3% have no ideawhat consumers’ cooperative is.
Potential of the Community
aboutEstablishing Consumers’
Cooperative
Needs of the community. Table 4 presents the needs of the community and the
place where the respondents were purchasing their merchandise. The commodities that
are mostly purchased by the respondents are rice (40.8%), sugar (39.2%), lard (23.8%),
salt (6.9%), soap (6.9%), canned goods (6.9%), and medicine (3.8%). As a result, the
needs of the community that consumers’ store can provide if established are mostly house
hold or kitchen used.
Majority (61%) of respondents were purchasing their merchandise at the sari-sari
store and just 39% at the town proper. Mostly, the respondents were purchasing their
needs weekly or daily, either on sari-sari store or town. Sugar, salt and lard were bought
per kilo or pack. Respondents often purchased the goods or merchandise depending on
their budget or depending on when the commodities will be consumed. Some respondents
also don’t buy rice because they have their own rice field but others were buying it per
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kilo or cavan. Commodities such as curls/candies, drinks, gas, tissue, and grooming aids,
liquors, frozen foods will be bought if necessary. As for the school supply, many were
purchasing it yearly at the town proper.
Table 4. Needs of the community
PARTICULAR FREQUENCY
PERCENTAGE
Commodities*
Rice
53
40.8
Sugar
51
39.2
Lard
31
23.8
Salt
9
6.9
Soap
9
6.9
Canned goods
9
6.9
Medicine
5
3.8
Purchasing place
Sari-sari store
79
61
Town proper
51
39
TOTAL 130
100
*Multiple response
Presence of qualified officers. Table 5 shows that 88% respondents said that there
are qualified officers that can serve in the cooperative, 12% said that there are no
qualified officers in the area. Their reasons for having qualified officers were as follows:
there are people who are honest (36%), trusted (32%), God fearing (7%), willingness or
interest to be an officer (7%), right/good attitude (4%), having self-confidence (2%),
educated (2%) and it will depends on the group discussion or voting (10%).
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As for the 12% who said that there were no qualified officers in the area, the
reasons are no trust to people (79%), not willing to be an officer (7%), and dishonesty
(14%). The result shows that there can be qualified officers if ever the consumers’
cooperative will be established in the area.
Table 5. Availability of qualified officer
PARTICULAR FREQUENCY
PERCENTAGE
Presence of qualified officers
there are qualified officers
110
88
no qualified officers
15
12
TOTAL 125
100
Reasons for having qualified officers
Trusted
37
32
Honest
41
36
God fearing
8
7
Right/good attitude
5
4
interest/willingness 8
7
Self-confidence
2
2
Educated
3
2
Through voting/group discussion
11
10
TOTAL 115
100
Reasons for no qualified officers
No trusted
11
79
not willing
1
7
Dishonest
2
14
TOTAL 14
100
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Willingness of respondents to invest in the cooperative. Table 6 present the
willingness of respondents to contribute or invest in the cooperative. One hundred twenty
respondents said that they are willing to invest in case a consumers’ cooperative will be
organized in the area. They are willing to invest a share capital of Php 500(31.6%), Php
1,000(12.5%), Php 2,000(3.3%), Php 300 (1.7%), Php 1,500(0.8%), Php 3,000 (1.70%),
Php 5,000 (1.70%), and 10% said that it will depend on the group discussion.
Table 6. Willingness to invest in the cooperative
PARTICULAR FREQUENCY
PERCENTAGE
Willingness to contribute in the
Cooperative
Willing
120
96
Not willing
5
4
TOTAL 125
100
Share capital
500 38
31.60
1,000 15
12.50
2,000 4
3.30
300 2
1.70
1,500 1
0.80
3,000 2
1.70
5,000 2
1.70
Depends to the group discussion
56
46.70
TOTAL 120
100.00
Reasons for not willing to join
Time consuming
3
60
Threat to the store
1
20
Old to join
1
20
TOTAL 8
100
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Four percent respondents are not willing to join or invest in the cooperative. There
reasons were 60% consumed time, 20% said that it will be a threat to stores and 20% said
that he/she was old enough to join.
As the result, majority of respondents wants to contribute or invest a share capital
to the cooperative if it will be established.
Perception of Respondents
to the Sari-Sari Stores
Table 7 present the perception of respondents about the sari-sari stores. The result
shows that majority of respondents were not so much satisfied to the service of the sari-
sari stores wherein some respondents said that they will go to the other stores to find the
needed merchandise even if that store will be in other purok.
Majority (71%) of respondents said that the sari-sari stores sometimes do not
provide the kind of merchandise that was needed by the community. This was because
some stores were not purchasing the right brands of merchandise that was needed by
people. Eighty-nine respondents said that it totally provide the needed merchandise and
some (8%) said that it doesnot provide the needed kind of merchandise.
As for the quantity of goods in the sari-sari stores, majority(64%) said that some
specific number of merchandise were not completely available. Thirty-nine (31%)
respondents said that the needed quantities of merchandise were completely provided by
the stores and 5% also said that it doesn’t provide the right quantity of merchandise.
Majority (63.2%) of people said that right quality of merchandise in stores were
sometimes not provided because some were expired specially those that was stocked.
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This was followed by 34.4 % who said that stores provide the right quality of
merchandise and 2.4 % said that it doesn’t provide the needed quality of commodities.
Most(52.8%) respondents said that stores have the right price of merchandise,
followed by 37.6 % respondents who said that they were sometimes contented to the
price of goods they are buying and 9.6 % said that the price were very high. This shows
thatmajorityof respondents were satisfied on the price of merchandise in the stores due
to the increase of fare.
Table 7. Perception of respondents to the sari-sari stores
RESPONSE
Sometimes
PARTICULAR
Provide
Do not provide
provide
F % F % F
%
Right kind of merchandise
26
21
10
8
89
71
Right quantity of goods
39
31
6
5
80
64
Right quality of goods
43
34.4
3
2.4
79
63.2
Right price of merchandise
66
52.8
12
9.6
47
37.6
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This research was conducted to determine the potentials of organizing consumers’
cooperative in Aliaga, Bambang, NuevaVizcaya.
The respondents were 130 household from the area of the study. Survey
questionnaire was used in gathering data. Personal interview and focus group discussion
was done to some respondents. Data gathered was analyzed using percentage and
frequency counts.
The study found out that majority of respondents’ ages ranges from 26 to 45,
female, married, and attended formal education. Most respondents were farmers and
house keeper and most have an income of Php 100,000 and below per year. Majority
were member of an organization and association for 1-5 years.Some were officers of the
organization.
Majority have good perceptions about the consumers’ cooperative. The
respondents mentioned that if the cooperative will push through, it will help the
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
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community in terms of financial assistance, provides the right kind, quality, quantity and
price of merchandise and it can help individuals in terms of savings. Although, with this
perception, most mentioned that the success of this cooperative will depend on the people
who will manage this cooperative. Majority of them wants to join the said cooperative.
Most respondents often purchased rice, sugar, lard and other house hold needs.
Majority were purchasing their needs in sari-sari store weekly or daily. This will depend
on their budget. Even though most of the respondents were purchasing in sari-sari stores,
this is not enough because some merchandise were not available.
Majority of the respondents mentioned that there can be qualified officers that can
lead the cooperative. Their main reasons were that there are still people who could be
trusted and honest.
Most of the respondents said that they are willing to contribute or invest a share
capital to the cooperative if it will be organized. Share capital will depend on the
discussion ofthe community.
Conclusions
Based on findings of the study, the following conclusions were drawn:
1. The distance of market place to Aliagacenter is seven kilometers wherein the
fair of individual who will go to the market is 18-20 pesos (one way). This can be an
additional expense to the people.
2. Most of the respondents were purchasing at the sari-sari stores but were not so
much satisfied in the service of stores because of unavailability of other commodities that
was needed by the people.
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3. Most of them have good perception about the consumers’ cooperative. Many
said that this can be advantageous to them, if it will be organized, because this can
provide the needed necessities (specifically house hold need) of the community and this
can help them in terms of savings through patronage refund.
4. Majority of respondents were willing to invest a share capital to the
cooperative, if ever there will be a plan to organize consumers’ cooperative. They also
said that there can be qualified officers from the area that can help in leading the
cooperative and this will be determined through group discussion or majority vote.
5. Furthermore, from the responses of the respondents, then it can be concluded
that organizing a consumers’ cooperative at Aliaga, Bambang, Nueva Vizcaya would be
possible.They wantto tryhaving communityownedstore inorderto have an
organization that can provide complete and right merchandise.
Recommendations
Based on the conclusions, the following are recommended:
1.Since majority showed interest in organizing consumers’ cooperative, then
deeper feasibility study should be conducted to help in knowing if it is viable to put-up a
consumers’ cooperative. Then if the result of the feasibility study show that it is viable,
then it is time to organize one.
2. Before organizing, a committed core group that will help in organizing should
be determined since commitment is needed for a cooperative to be successful. After that,
then information dissemination should be conducted such as seminars and meetings of
the members of the community for them to be more knowledgeable about consumers’
cooperative. It would be better also if the advantageous and disadvantageous of
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
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cooperative will be discussed for them to know the do’s and don’ts in forming
cooperative. In addition, a committed officers and members are recommended also for a
cooperative to be successful since they will be the one who will look up for the
cooperative and so that it will not be a fly-by-night organization.
3. Furthermore, an organized linkage to secondary cooperative is recommended to
have stable and strong cooperative and to have access or information about cooperatives
like the laws, rules and regulations, and others. This is an application of the cooperative
principle stated as “cooperation among cooperatives”.
LITERATURE CITED
ANONYMOUS. 2008. Why Start a Co-operative?Retrieved August 15, 2011 from
http://www.creatives.uk.coop/why-start-co-operative
FAJARDO, F.R. and F. ABELLA. 1999. Cooperatives Fourth Edition. Rex Book Store
Inc. Pp. 34-35; 186-187.
GARCIA, J.K. 2008.Potentials on establishing laboratory cooperative in La Trinidad,
Benguet. BS Thesis. Benguet State University, La Trinidad, Benguet.P. 10.
KINGAY, R.C. 2012.A diagnostic study on the potentials of organizing farmers
marketing cooperative at Daclan, Tublay, Benguet. BS Thesis. Benguet State
University, La Trinidad, Benguet. P. 2.
ONAGAN, L.D, J.T. SIMAÑGAN and M.S. ESGUERRA. 1973. Cooperative Principles
and Practices, L.D. Onagan and Sons Publishers. Pp. 92-97, 101, 105.
PHILIPPINE COOPERATIVE CODE OF 2008 R.A. 9520 AND IMPLEMENTING
RULES
AND
REGULATIONS.Philippine Cooperative Center. Pp. 4,81,84.
PUNZALAN, D.C., 1981. Food Marketing in Asia-Systems.Cooperatives and Policies.
Food and Fertilizer Technology Center, Taiwan, Republic of China.P. 70.
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
39
APPENDIX A
Letter to the Respondents
Department of Agricultural Economics and
Agribusiness Management (DEAEM)
Benguet State University
La Trinidad, Benguet
November 2011
____________
Sir/Madam,
Warm greetings!
I am a senior student taking up BS Agribusiness major in Cooperative Management at
Benguet State University. I’m having a research study entitled “A Diagnostic Study of
the Potential of Organizing Consumers Cooperative at Aliaga, Bambang, NuevaVizcaya”
as requirement for the degree. In this connection, I would like to ask from your opinion
regarding the following queries.
Thank you very much for spending your time and rest assured that all will be taken into
consideration.
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
40
Respectfully yours,
GRETCHEN N. TAD-O
BSAB Student
Noted:
PROF. DAVID JOSEPH BOGNADON
Thesis Adviser
APPENDIX B
Survey Questionnaire
A.PERSONAL INFORMATION
1. NAME:
DATE:
2. AGE:
GENDER: _M_F
CIVIL STATUS: _S_M
3. HOME ADDRESS:
4. OCCUPATION:
5. EDUCATIONAL BACKGROUND:
__No
formal
education __College
under
graduate
__Elementary
under
graduate
__College
graduate
__Elementary
graduate __Vocational/Technical
__High School under graduate
__High
School
graduate
6. Are you a member of any organization?
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
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41
_Yes
_No
7. If yes, what type of organization?
__Cooperative
__Association
8. What position are you holding?
__Member,
how
many
years
have you been a member? __
__Officer, what position and how many years have you been in
that
position?
________________________
9. What are the sources of income of your family?
__farming
__sari-sari
store
__tricycle
operator/driver
__others,
please
specify_______________
10. Household Income per annum:
__Below
100,000.00
__100,
001.00
to
150,000.00
__151, 001.00 to 200, 000.00
__Above
200,
001.00
B. AS TO PERCEPTION OF RESPONDENTS ABOUT CONSUMERS
COOPERATIVE
1. Please check yes if you agree and no if not agree.
QUESTIONS YES
NO
a. Is consumers’ cooperative organized by the community and
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
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42
owned by them?
b. Is consumers’ cooperative an organization that helps the
community in terms of financial assistance?
c. Do you think consumers’ cooperative provides the right
commodities or merchandise?
d. Do you think consumers’ cooperative provides right quantity,
quality and price of merchandise?
e. Do you think consumers’ cooperative can help you in terms of
savings?
f. Does consumers’ cooperative just an organization that won’t last?
g. Are you willing to join consumers’ cooperative if organized?
C. AS TO POTENTIAL OF THE COMMUNITY ABOUT ESTABLISHING
CONSUMERS COOPERATIVE
1. Felt Need.
a) What commodity do you purchase often? Specify.
_______________________________________________________
b) In your observation, what are the needs in your community that
consumers’
store
can
provide?
_________________________________________________________
2. Volume of Business.
a) Where are you currently purchasing your house hold needs?
__sari-sari
store
__town
proper
b) How much is the volume of your purchased products?
QUANTITY
HOW OFTEN?
PURCHASED
(daily, weekly,
DESCRIPTION OF COMMODITY
monthly, yearly)
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Rice
Canned goods
Sugar
Salt
Lard/oil
Soap (bath soap, laundry soap)
Milk/coffee
Ingredients (soy, bagoong, paminta, vetsin, knorr
cube, garlic, vinegar, etc.)
Frozen foods
Eggs
Pancit
Medicines
Curls/candies/crackers
Drinks(litro, 1.5, 12 oz, drinky)
Bakery Bread
Gas
Tissue/ Diapers
School Supply
Grooming Aids(Baby Powder, Tooth brush,
Rexona, Shampoo)
Cigarettes
Liqours
3. Availability of Qualified Officers
a) Do you think there are qualified people to serve in the cooperative?
__yes
__no
b) If yes, why?
______________________________________________________
c) If no, why?
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______________________________________________________
4. Adequacy of Resources
a) Are you willing to contribute or invest in the cooperative? Yes_ No_
b) If yes, how much share capital do you want to invest?
__500
__1000
__2000
__others,
specify_________________
c) If no, Why? ____________________________________________
5. Buying Behaviour
QUESTIONS YES
NO
SOMETIMES
Do the sari-sari stores adequately provide the following that
are needed by the people
a. Kind of merchandise/goods you need?
b. Quantity of goods?
c. Quality of goods?
d. Right price of merchandise?
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TAD-O, GRETCHEN N. APRIL 2012.A Diagnostic Study on the Potential of
Organizing Consumers Cooperative inAliaga,Bambang, NuevaVizcaya. Benguet
State University, La Trinidad, Benguet.
Adviser: David Joseph L. Bognadon, MSc.
ABSTRACT
The study was conducted to determine the potential of organizing consumers’
cooperative in Aliaga, Bambang, NuevaVizcaya. It aimed to determine the socio-economic
profile of respondents, perception of people about consumers’ cooperative and their willingness
to support the organization of a consumers’ cooperative.
The respondents were one hundred thirty household from the area of study. Survey
questionnaire was used in gathering data. Personal interview and focus group discussion was
done to some respondents. Data gathered was analyzed using percentage and frequency counts.
The study found out that majority of respondents’ ages ranges from 26 to 45, female,
married, and attended formal education. Most respondents were farmers and house keeper and
most have an income of Php 100,000 and below per year. Majority were member of an
organization and association for 1-5 years.Some were officers of the organization.
The result showsthat majority have good perceptions about the consumers’ cooperative.
The respondents mentioned that if the cooperative will push through, it will help the community
in terms of financial assistance, provides the right kind, quality, quantity and price of
merchandise and it can help individuals in terms of savings. Although, with this perception, most
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mentioned that the success of cooperative if it will be established, will depend on the people who
will manage this cooperative. Majority of them wants to join the said cooperative.
Most respondents often purchased rice, sugar, lard and other house hold needs. Majority
were purchasing their needs in sari-sari store weekly or daily. This will depend on their budget.
Even though most of the respondents were purchasing in sari-sari stores, this is not enough
because some merchandise were not available.
Majority of the respondents mentioned that there can be qualified officers that can lead
the cooperative. Their main reasons were that there are still people who could be trusted and
honest. Furthermore, in case consumers cooperative will be organized, the respondents are
willing to contribute a share capital and the amount will depend on the group discussion.
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga, Bambang,
Nueva Vizcaya/Gretchen N. Tad‐o. 2012
TABLE OF CONTENTS
Page
Bibliography.................................................................................................... i
Abstract............................................................................................................ i
Table of Contents.............................................................................................
v
INTRODUCTION
Rationale.............................................................................................. 1
Importance of the Study.......................................................................
2
Statement of the Problem.....................................................................
2
Objectives of the Study........................................................................
3
Scope and Delimitation of the Study...................................................
3
REVIEW OF LITERATURE
Purpose of a Cooperative.....................................................................
4
Cooperatives and Community Development.......................................
4
Consumers' Cooperative Defined.........................................................
5
Type of Consumers' Cooperative.........................................................
5
How to Organize Cooperative..............................................................
6
Why Organize a Cooperative?.............................................................
8
Starting a Cooperative Store................................................................
9
The Rights of the Consumers...............................................................
10
The Cooperation of Consumers...........................................................
11
Common Bonds of Interest for
Consumers’ Cooperative......................................................................
12
Objectives of Consumers Cooperative.................................................
14
Benefits in Joining a Consumers' Cooperative....................................
16
Definition of Terms..............................................................................
16
METHODOLOGY
Locale and Time of the Study..............................................................
18
Respondents of the Study.....................................................................
18
Research Method..................................................................................
18
Data Gathered......................................................................................
18
Data Analysis.......................................................................................
21
RESULTS AND DISCUSSION
Transect Map at Aliaga, Bambang,
Nueva, Vizcaya....................................................................................
22
Demographic Profile of Respondents..................................................
22
Perception of Respondents about
Consumers’ Cooperative......................................................................
27
Potential of the Community about
Establishing Consumers’ Cooperative.................................................
29
Perception of Respondents to the Sari-Sari Stores...............................
33
SUMMARY, CONCLUSIONS, RECOMMENDATIONS
Summary.............................................................................................. 35
Conclusions.......................................................................................... 36
Recommendations................................................................................ 37
LITERATURE CITED....................................................................................
38
APPENDIX
A. Letter to the Respondents..............................................
39
B. Survey Questionnaire.....................................................
40
1
INTRODUCTION
Rationale
Cooperative are business enterprises formed by the spontaneous and voluntary
action of consumers within a community, or office who have identical needs (Onaganet
al., 1973). Their association is motivated by the spirit of mutual service and mutual
benefits through their mutual action. They achieved this by dedicating their enterprise to
an unselfish struggle for an ultimate goal of economic sufficiency for all. Cooperative
societies constitute the biggest type of all cooperative enterprises, at the same time the
most fundamental and it involves all people, since all people are consumers.
The Philippine, like any other developing nation, has genuine desire to improve
the well being of the less fortunate segment of the population. The creation and
development of cooperative is a means of improving the income and the purchasing
power of the poorer sector of the economy, generally the farmers and ultimately attain
equitable distribution of wealth (Punzalan, 1981).
Bambang, Nueva Vizcaya is politically subdivided into 25 barangays. One of its
barangay is Aliaga which was divided into 6 sitios/ “purok”.Barangay Aliaga has 582.79
hectares and rich in natural resources, one is the mountain for grazing purposes for
animals and tree planting purposes and also a river for the extraction of sand and
gravel.The distance of market place to the Aliagacenter is seven kilometers.
Barangay Aliaga has 1,610populations and 427 household. Aliaga is basically an
agricultural barangay mostly are engage on farming activities. Income Generating
Projects (IGP) assisted by the government like pig and cattle dispersal had been practice
as an additional source of income, there are some also have passengers tricycle while
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some depends onlabor work as their livelihood. In Aliaga, sari-sari stores exist in per
purok. Total of stores in this barangay are twenty but they have an inadequacy of
merchandise and services, some also has poor services and high prices. This is because of
lack of capital.
Bambang, Nueva Vizcaya have existing cooperatives who offered savings and
credit services like Coop Bank, Tam-an Cooperative, and St. Catherine Cooperative. But
for the consumers’ cooperative, they have not fully organized specifically in Barangay
Aliaga, Bambang, NuevaVizcaya. Thus, the major concern of the study is to find out the
potential of establishing consumers’ cooperative in the area.
Importance of the Study
The outcome of the study couldserve as a guide in a decision of establishing a
consumers’ cooperative in the study area. It would provide information as basis of
decision. Since the community has no consumers’ cooperative yet, this could help them
minimize their marketing problems.
The researcher will gain essential knowledge about research and about organizing
cooperatives. Resultscould also beaguideto students who will be conducting a study
on the same field and interest.
Statement of the Problem
The study deals with the identification on the potential of organizing a consumers’
cooperative specifically in Aliaga, Bambang, Nueva Vizcaya. The study therefore aimed
to answer the following questions:
1. What is the socio-economic profile of the respondents?
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2. What is the perception of people in that area about consumers’ cooperative?
3. Is there a potential of organizing consumers’ cooperative?
Objectives of the Study
The study aimed to:
1. determine thesocio-economic profile of the respondents;
2. determine theperception of people about consumers’ cooperative; and
3. determine the potential of establishing consumers’ cooperative.
Scope and Delimitation of the Study
The main focus of the study was to analyze the potential of organizing consumers
cooperative. The study deals on the perception of the residence about consumers’
cooperative and the willingness of people to support the consumers’ cooperative.
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REVIEW OF LITERATURE
Purpose of a Cooperative
A cooperative may be organized with at least one purpose. The purpose defines
the type of cooperative. Following are the types of cooperative as stated in the Art. 23 of
the Cooperative Code of the Philippines: a) Credit Cooperative; b) Consumers
Cooperative; c) Producers Cooperative; d) Marketing Cooperative; e) Service
Cooperative; and f) Multi-purpose Cooperative.
Aside from the specific purpose for which a cooperative has been set up, it shall
provide maximum economic benefits to its members, teach members efficient ways of
doing things in a cooperative manner, propagate cooperative practices and new ideas in
business and management, and allow the lower income groups to increase their
ownership in the wealth of this nation (Garcia and Guanzon, 2004) as cited by Garcia
(2008).
Cooperatives and Community Development
The word cooperative was derived from a French word “cooperari” which means
to work together. This meaning has been expanded to convey the primary aims of the
various types of objectives. In general, the common definition of a cooperative denotes a
democratic and voluntary association of individuals with common bond of interests who
joined together and pooled their resources in order to provide themselves with essential
goods and services at cost. In comparison to the meaning of community development, the
latter also means working together to attain a common objective. People in the
community organize themselves under their own free will and work as a team to solve the
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problems of their community, and thus create a more desirable place for them and their
children.
The ultimate social objective of a cooperative is community building. This is the
same with community development. Both use the principle of self-help and involvement
in their methods of solving community problems. Moreover, both depend on cooperation
and teamwork in attaining their goals. Cooperatives are primarily concerned with the
development of human resources. The same is true with community development. Both
consider man as the most important resource and factor of development (Fajardo and
Abella,1999).
Consumers’ Cooperative Defined
It is a voluntary association of a group of persons (at least 15 members), with the
common bond of interest, who agreed to pool their resources together to provide
themselves with quality goods and services at reasonable prices. In the process of its
business operations, the consumers’ cooperative may make profits (or net savings as the
more proper terms in cooperative parlance). These are equitably distributed to the
cooperative members in the form of patronage refund and interest on capital. The
essential commodities which are sold in aconsumers’ cooperative have lower prices
because these are bought in bulk (Fajardo and Abella, 1999).
Type of Consumers’ Cooperative
According to Onaganet al.(1973), one type of consumers’ cooperative is
commodity cooperatives. A commodity cooperative is primarily engaged in the
procurement of essential merchandise to serve the needs of its members. It could take the
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form of a general store, or a sari-sari store, in which all the essential needs of members
may be purchased. The store acts as the purchasing agent of the members to acquire
needed commodities of the right quality and price.
Consumers’cooperative stores may be organized in any community where the
people are not adequately and satisfactorily served by existing profit enterprises.
How to Organize Cooperative
According to Fajardo and Abella (1999), organizers have to determine first the
feasibility of establishing a cooperative in the community or institution. The following
essential requirements should be surveyed:
1.Felt need. There must be a reason for organizing a cooperative. If the people
need a cooperative for the solution of their problems, then it would be less difficult to
organize one. Usually, a need for a cooperative arises if existing business organizations in
the community are inefficient and abusive. Conditions, such as high interest rates, poor
quality of goods and services, high prices, financial production, and marketing problems
encourage the organization of cooperatives. People like to buy better goods and services
at reasonable prices. On the other hand, producers want fair price for their products.
2. Volume of business. Sufficient volume of business is needed to pay the fixed
and variable costs of operations, such as rentals and salaries of employees. The
cooperative, therefore, has to attract more members and costumers to increase its volume
of business. This can be done by improving the quality of its goods and services at
reasonable prices.
3. Availability of qualified officers. Management constitutes the most important
factor in the success of a cooperative. Men of integrity and honesty are the proper
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individuals who should manage cooperatives. In many instances, there are qualified
persons but they are not willing to serve in the cooperative. They would rather work in
commercial and industrial firms where salaries and fringe benefits are much higher. At
any rate, the Cooperative Authority has a management program for improving the
competence of cooperative officers through trainings and education.
4.Adequacy of facilities. When starting a cooperative, it is not advisable to begin
with a plush office and expensive facilities. Such manifestation of ostentation should not
take place in a cooperative organization. As long as the available facilities are adequate to
ensure the efficiency of the business operations of the cooperative, then it will be a good
enough to start a cooperative.
5. Opportunities for growth. A cooperative has to be dynamic in order to be able
to meet effectively changing needs and problems of its members and the community. It
has to expand and diversify its business operations. Organizers must have good feasible
plans for business expansion. A businessorganizationhas to survive and be successful for
a long time and not for a brief and limited period.
6. Other requirements. A large number of residents who are willing to patronize
the cooperative are needed. The solution in preparing them for membership in a
cooperative is by first organizing them into semi-cooperative groups and organizations at
the barrio-level. Given enough time, this measure is expected to fulfill the social
requirements of the organization of barrio residents into a cooperative. Later, these
groups and organizations can be brought into full-pledged cooperative at the multi-barrio
or municipal level. This measure in turn measures that the economic requirements for the
successful operation of a cooperative are adequately met.
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Why Organize a Cooperative?
Anonymous (2008), cooperative is organized to improve community member’s
income or economic position or to provide a needed service. This may achieve through
one or more of the following:
1. Marketing Activities
a. Improve bargaining power. Combining the volume of several members
leverages their position when dealing with other businesses;
b. Reduce costs. Volume purchasing reduces the purchase price of needed
supplies;
c. Earnings of the cooperative returned to individual members lower their
costs;
d. Obtain market access or broaden market opportunities. Value is added
to products by processing or offering larger quantities of an assured type and quality to
attract more buyers;
e. Improve product or service quality-member satisfaction is built by
adding value to products, competition the cooperative provides and improve facilities,
equipment and services.
2. Purchasing Supplies/Services
a. Obtain products or services otherwise unavailable. Often provide
services or products that would not attract other private businesses;
b.Reduce
cost/Increase
income.
Reducing the cooperative’s operating
costsincreases the amount of earnings available for distribution to members to boost
theirincome.
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Starting a Cooperative Store
Of all types, a cooperative store is the simplest and the easiest to organize. It does
not require a big number of members, nor a big amount of capital to start. In order to
enjoy immediately the benefits of cooperation, people have often organized on a humble
beginning. With whatever amount of capital pooled by them, the society could start as a
buying club. One or more articles of actual necessities may be purchased. The base of
operation may be the house of a member-centrally located and equally accessible to all.
Usually it is in the house of the manager or treasurer. Renting a store, no matter how
small, could be dispensed with at the start.
Before joining, prospective members must have first a clear understanding on the
part of the members of what a cooperative is, how it operates, and why is it organized.
Then, they must be willing and able to participate intelligently, support the organization
with their resources and assume the responsibilities of being members or officers. Also, a
number of them must have at least some knowledge or experience in running the business
and in making sound managerial decisions. All of these clearly point out that the
prospective members must have certain skills and attitudes and must be capable of
sustained cooperative behaviour, before they can be organized into a cooperative.
Members understand the handicaps they encounter at the start, but with resolve
and determination, they are willing to forego the luxury of a well-planned and well-
stocked store. Often, they take turn and contribute their services free. The manager and
the treasurer usually serve without compensation at the start. As the business grows, a
permanent store is eventually located at a place, equally accessible and convenient to all
members.
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The Rochdale store, from which is patterned the humble beginning of many
consumers cooperative societies, started in an old warehouse, which was rented and
repaired for the purpose, on a cooperative effort by the members. With the little amount
left available for the purchase of merchandise, only five items were purchased-flour,
oatmeal, butter, sugar and wax candles. Sales were made on evenings, after work hours,
three days a week. Eventually, as the business grew and members increased in number,
sales hours became a daily affair during the evenings. Later the members enjoyed a full
day service the whole week from early morning to late evenings (Onaganet al., 1973).
Originally, the financial requirement in organizing a cooperative was Php 25,000
and membership was 250. The value of one share of stock was Php 100. However, in
view of the great difficulties of organizing cooperatives, the defunct Bureau of
Cooperatives Development has reduced the financial requirement to at least Php 5,000
and membership of 25. At present, only 15 members or more natural persons who are
Filipino citizens, of legal age, having a common bond of interest and are actually residing
or working in the intended area of operation may organize a cooperative. The value of
the shares ofstock shall be determined by the members themselves (Fajardo and Abella,
1999).
The Rights of the Consumers
Modern marketing does not solely imply anymore the transfer of goods from the
producers to the consumers. Its goal is to satisfy the consumers. However, in more ways
than one, the consumers are not satisfied. Product pricing is usually not fair. Quality is
not good. And essential goods often disappear in the market and then re-appear with
higher prices.
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The principal right of a consumer is to get his money’s worth. However, the
presences of exaggerated or incorrect information about the products and even deliberate
deceptions have clearly violated the fundamental rights of consumers. For instance,
slightly used home appliances are repainted and then sold as brand new products. Even
lots that do not exist are being sold. Of course, consumers have the right to complain but
this is only in theory. The complaints of poor consumers are not given much attention.
Legal actions can be taken against the producers/sellers. But the high cost of litigation is
enough to discourage a poor consumer to pursue his case.
Evidently, individual consumers cannot effectively protect their interests against
the abuses of producers/sellers. It is only a large and efficient organizations that can
possible minimize business malpractices. This is the government. It should be more
sincere and determined in promoting the welfare of the consumers. Businessmen are
afraid to abuse the consumers if they know the government does not tolerate their
business malpractices. Another way of fighting business abuses is to form a large group
of consumers which is to form a large group of consumers which is determined to protect
the legitimate interests of the members (Fajardo and Abella, 1999).
The Cooperation of Consumers
Consumers represent the demand in the market while the producers/sellers
constitute supply. The interaction between supply and demand forms the laws of the
market. When the demand is greater than the supply, prices increase and when the supply
is greater than demand, prices decrease. This takes place in a free market economy which
means the government does not interfere in supply and demand of goods and services.
Adam Smith believed that this is the best way to promote the interests of the consumers.
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Through free competition, Smith (Father of Economics) claimed that better quality and
lower prices of goods could be produced.
Unfortunately, the real market is not perfect. It does not operate like the
theoretical framework of the classical economists headed by Smith. For instance,
producers intentionally limit their supply in order to increase their price like what the
OPEC countries have been doing.
A very effective way of protecting consumers’ interests is through the
organization of consumers’ cooperative. The consumers themselves form their own store.
Therefore, they can decide the quality, quantity, and price of their own goods for sale.
Naturally, they do not cheat or exploit themselves. They are the owners and at the same
time the buyers of their own products.
A consumers’ cooperative is a kind of organization which even the poor can join.
In fact, a consumers’ cooperative is organized primarily for the welfare of the poor
consumers who suffer most from abuses of capitalism. All over the world, there are many
successful consumers’ cooperatives organized by poor people. Of course, the best model
is the cooperative store of the Rochdale pioneers. They have shown to the whole world
that group cooperation could successfully defy the evils of capitalism(Fajardo and
Abella, 1999).
Common Bonds of Interest for
Consumers Cooperative
According to Onaganet al.(1973), the bond that ties members into a cooperative is
some needs common to the group. People who are similarly situated tend to make a
common cause. Consumers, therefore, realizing their economic weakness as individuals
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in the bargaining end of the distributive process, associate together believing that with
their mutual action they could realize what they want which, without their cooperative,
could be impossible of realization.
Some consumer needs which may serve as a common bond of interest,
necessitating group action, are listed below. Any one or more of these may be a sufficient
reason to validate cooperative action:
1. Inadequacy of merchandise. The existing stores in the community may not
adequately provide the kind of merchandise, both in quantity and quality that are needed
by the people.
2. Inadequacy of service. The number of stores existing to serve the community
cannot cope with the demand for service by the people. This compels some people to go
far to get the desired merchandise.
3. Poor service. Existing retailers cannot satisfy service requirements of the
community. Due to lack of training in modern retailing, or to an obsolete or antiquated
system distribution, customers are left to their resources in determining the merchandise
they need. No professional advice is rendered to consumers who are usually undecided
and cannot make up their minds.
4. High prices. Sometimes prices charged to costumers become unreasonably
high. When the existing retailers enjoy monopoly position in the market prices is
sometimes charged as high as the market may bear.
5. Unethical trade practices. In a profit enterprise system the effort to make high
profit or to survive economic competition causes the retailer to resort to all kinds of
unethical practices. Adulteration of goods is most common in a market where
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competition is brisk. Thus vinegar is mixed with water to press the price down, even
lower than the procurement price. For the same reason, a high grade of rice is mixed with
cheaper variety. Underweighting is common along unprincipled merchants. Dishonesty
of some merchant knows no bounds. Substitution of inferior goods sometimes happens
where sales are made by samples. Inferior goods or unknown products are sometimes
labelled with popular brands. Imitation of popular brands is often practiced.
Misrepresentation is often resorted to in an effort to high-pressure an unknowing
customer.
6. Discriminating attitude of retailers. Some retailers openly discriminate against
the common classes, especially where there are no competing stores in the community.
They serve pleasantly whom they respect and treat others, usually the poorer classes, with
corresponding disrespect. In some cases, price discrimination exists. There is one price,
usually lower, to some special customers and there is another scale, usually higher, to the
ranks and file of customers. The special customers are usually those who are considered
the “well-to-do” and who do not really feel the difference in prices, while the ordinary
rank and file are composed of the poorer classes for whom a centavo makes considerable
weight of difference.
Objectives of Consumers Cooperative
Primary objective. The primary objective of all cooperatives lays emphasis on
service. This is vividly demonstrated in consumers’ cooperatives. Members recognize the
need for mutual cooperation because they want to enjoy certain services that they cannot
enjoy from profit operators in their community. Acquiring the right kind of merchandise
that truly and fully satisfies the need of people is a perennial problem of well-intentioned
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merchants. To the great majority of operators in the trade, however, they are more
interested on the quantity of benefits (profit) they can make out of the people they serve;
rather than be concerned with what and how much service they can render them.
Cooperatives practice the “do-it-yourself” method in the operation of their
business as the best means of getting what member want-of the right type, quantity and
quality and at the right price at the time they are wanted. “If you want the best service,
you must act your own serviceman” is the watchword of consumers’ cooperation. No one
knows about your needs better than yourself, neither does anyone know how to serve that
need with utmost satisfaction better than yourself.
A cooperative store is the clearing house of members’ needs. The store-their own
serviceman-therefore, exists solely to find the most satisfactory method of serving their
needs.
Saving, a secondary objective. The profit motive expresses itself in a cooperative
by the instinctive interest of members in the savings they automatically get out of their
consumption. Every time a member buys from his cooperative store, the margin created
by the purchase, which accumulates as profits in the case of profit stores, is now saved
and accumulated for the credit of the buying member.
It is a cooperative practice to sell goods to its members at prevailing market price-
the retail price charged by other stores in the community. When a member makes a
purchase from his cooperative, therefore, the spread between total costs and retail price
becomes a residue, which belongs to this particular member and not the cooperative. This
is credited to him as his saving which accumulated up to the end of the accounting period
when the entire amount saved is refunded to him in the form of patronage dividend.
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This system of accumulating savings is painless. Outside his cooperative store, a
member would pay the same amount on similar goods without the expectation of any
return. When made in his cooperative store, he knows that he is accumulating savings
which belongs to him. This savings, therefore, becomes an objective-a necessary
incentive-that acts as a drive to develop membership loyalty.Onlymismanagement and
dishonesty of officials will poison the drive (Onaganet al., 1973).
Benefits in Joining a Consumers’
Cooperative
1. A member can regularly avail for himself and his family goods and other needs
at the right quantity and at reasonable prices.
2. A portion of the net savings of the consumers’ cooperative is given to each
member as patronage refund in proportion to his purchases. Members also acquire
interests on their shares.
3. Marketing problems of members are minimized like haggling over prices and
too much going around looking for quality goods which are both time-consuming.
Likewise, impulse buying is avoided.
4. Members ofthe cooperative develop desirable habits and attitudes that are
necessary in improving their social and economic conditions (Fajardo and Abella,1999).
Definition of Terms
Capital. Refer to the sum total of members share capital including deposits,
revolving capital, subsidies, donations, legacies, grants, aids, land structures, plants,
equipment facilities, machines and other assets of a cooperative.
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Diagnostic study.A study wherein the researchers analyze the area out of the
situation, if there is really a potential of organizing cooperative.
Members.Includes a person either natural or juridical who adhering to the
principles set forth in this Code and in the Articles of Cooperation, has been admitted by
the cooperative as member.
Patronage
refund. Refer to the amount returned to individual members who
patronize the goods and services of the cooperative in proportion to their individual
patronage.
Perception. The attitude or understanding based on what is observed or thought.
Potential.Expressing power, possibility.
Sharecapital. Refer to the money paid or required to be paid by the members for
the conduct of the operations of the cooperative.
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METHODOLOGY
Locale and Time of the Study
The studywas conducted in Aliaga, Bambang, Nueva Vizcaya from December
2011 to January 2012.
Respondents of the Study
The respondents of the study were theresidents in Barangay Aliaga, Bambang,
NuevaVizcaya(Figure 1 and 2). A total of 130 householdservedasrespondents.
Respondents werechosenfrom the six sitios. Random sampling was done in the selecting
of respondents.
Research Method
Prepared survey questionnaires were distributed to the respondents. Personal
interview was also done with some respondents.Focus group discussion was also
employed to validate data. As to personal interview, we (as researchers) go house to
house. Focus group discussion was done through the group of people who were in the
stores, school, plaza or houses.
Data Gathered
Data gathered includes the following information; a) personal profile such as age,
gender, civil status, educational background and occupation of respondents; b) perception
of respondents about consumers’ cooperative which is organized and owned by the
community, help them in terms of financial assistance, and help them to have the right
commodities; and d) potential of establishing consumers cooperative.
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Figure 1. Location map of Bambang
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Figure 2. Transect map at Aliaga, Bambang, NuevaVizcaya
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Data Analysis
The data were tabulated and classified according to the objective of the study.
Data were analyzed using frequency counts, percentages and appropriate statistical tool.
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RESULTS AND DISCUSSION
Transect Map at Aliaga, Bambang
Nueva, Vizcaya
Figure 1 presents the map that will show the distance of Bambang Municipal
Market to Aliaga, Bambang(where the study was conducted). From Aliagacenter, the
specified distance to the market place is seven kilometers. Fare per individual is 18-20
pesos (one way).
Figure 2 also presents the transect map at Aliaga, Bambang, Nueva Vizcaya. This
shows that most houses in per sitios (specificallypurok 6)were closed to each other and
some aredistant.Mostly, per group of houses have a distance of one ortwo
kilometers. Most stores per sitios are in few distances from each other.
Demographic Profile
of Respondents
Table 1 presents the demographic profile of respondents. It presents their age, sex,
civil status, occupation, educational attainment, membership to community organization,
type of the organization and type of membership, years of membership to the
organization, position as an officer, sources of income of the family and household
income per annum.
Age. Twenty three(18%) of the respondents belonged to ages 25 and below.
Thirty four (26%) of them aged 26-35, thirty one respondents (24%) belonged to 36-45
years old,and 18% were 46-55 years old while 14% belonged to 56-65 years old. This
means that most of the respondents were at the middle age.
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Gender. Majority of the respondents were female which composed of 65% and
only 35% were male.
Civil
status. Majority of the respondents (88%) were married , 8% were single
and 4% were widow.
Educational
attainment.Fifty-one percentof the respondents have not finished high
school while 24% have reached or finished college. This indicates that most of the
respondents did not reached tertiary level.
Sources of income. Farming (77%) is the main source of income of the
respondents. This was followed by the sari-sari store business with 11.5%. Other source
of income of the respondents are tricycle operation, pig raising, employment such as
OFW, sea man and gasoline boy, vending, labor and government employee/official
(barangay treasurer/janitor).This means that most respondents are farmer, housewife and
business man. Other respondents also are skilled worker like electrician and construction
worker.
Household
income. Majority (75%) of respondents were below Php 100,000
household income per annum. Sixteen percent (16%) were Php 101,001 -Php 150,000
income followed by 5%Php 150,001–Php 200,000 income per year and just 4%
Php 200,001andabove household income.
Table 1. Demographic profile of respondents
CHARACTERISTIC FREQUENCY
PERCENTAGE
Age (in years)
25 and below
23
18
26-35
34
26
36-45
31
24
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Table 1. Continued...
CHARACTERISTIC FREQUENCY
PERCENTAGE
46-55
24
18
56-65
18
14
TOTAL 130
100
Gender
Male
46
35
Female
84
65
TOTAL 130
100
Civil status
Single
10
8
Married
115
88
Widow
5
4
TOTAL 130
100
Educational attainment
Elementary Undergraduate
12
9
Elementary Graduate
22
17
High school Undergraduate
32
25
High school Graduate
33
25
College Undergraduate
15
12
College Graduate
13
10
Vocational/Technical
3
2
TOTAL 130
100
Sources of income*
Farming
100
77.00
Sari-sari store
15
11.50
Tricycle operation
13
10.00
Swine raising
6
5.00
OFW
2
1.50
Employed
2
1.50
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Table 1. Continued...
CHARACTERISTIC FREQUENCY
PERCENTAGE
Vending
9
7.00
Labor 12
9.00
Government employee
5
4.00
Household income per annum
Below Php 100,000
97
75
Php 100,001-Php 150,000
21
16
Php 151,001 -Php 200,000
7
5
Above Php 200,001
5
4
TOTAL 130
100
*Multiple response
Table 2 presents the organizational affiliation of respondents. The result shows
that 27% of the respondents were not a member of any organization while 73% of them
were members. Of the 73% respondents that are members, 35% were cooperative
memberslike in St. Catherine, Multi-purpose Cooperative,Alay-kapwa, and Tam-an
Cooperative while 65% were in an association which are Abot-palad, Card Bank, and
RSPI. Regarding the type of involvement in the organization, 92% of them were
members and 8% were officers. Majority were members of organization for 1-5 years and
a few for 6 and above years. As to the positions of officers in the organization, 25% were
BOD and treasurer, 12.5% were secretary, business manager, auditor and SK
chairman.This means that at least a number from the respondents are knowledgeable in
leading an
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organization which may help in case a consumers’ cooperative will be organized.
Table 2.Organizational affiliation
CHARACTERISTIC FREQUENCY
PERCENTAGE
Membership in organization
Member
95
73
Not a member
35
27
Type of organization
Cooperative
33
35
Association
62
65
TOTAL 95
100
Type of involvement
Member
87
92
Officer
8
8
TOTAL 95
100
Years of affiliation
1-5
57
71
6-10
16
20
10 and above
7
9
TOTAL 80
100
Positionsheld
BOD
2
25.00
Treasurer
2
25.00
Secretary
1
12.50
Business manager
1
12.50
Auditor
1
12.50
SK chairman
1
12.50
TOTAL 8
100.00
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Perception of Respondents
about Consumers’ Cooperative
Table 3 presents the perception of respondents about consumers’ cooperative. The
result shows that majority of respondents have positive perception about the cooperative.
As stated by Fajardo and Abella (1999), consumers’ cooperative were defined as
the voluntary association of a group of persons (at least 15 members), with common bond
of interest, who agreed to pool their resources together to provide themselves with quality
goods and services at reasonable prices. This means that the people who will join the
cooperative are the owners. Thus, the table shows that most of the respondents (90%)
agree that consumers’ cooperative are organized and owned by the community, 1%
disagree, 5% were not sure if cooperatives are really owned by the community because of
their past experience and 4% have no idea about cooperatives.
Table 3. Perception of respondents about consumers’ cooperative
RESPONSE
Agree
Not agree
Maybe
No idea
PARTICULAR
F % F % F % F %
Organized and owned by the community 117 90
1
1
7
5
5
4
Helps the community in terms of
114 88 1 1 10 7 5 4
financial assistance
Provides right merchandise
114 88
1
1
10
7
5
4
Have right quantity, quality and price
114 88 1 1 10 7 5 4
of goods
Help community in terms of savings
114 88
1
1
10
7
5
4
An organization that won't last
1
1
46
35
78 60 5
4
Willingness
to
join
120
92
6 5 0 0 4 3
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As to the consumers’ cooperative as an organization that helps the community in
terms of financial assistance, 88% of respondents agreed,1% did not agree and 7% were
not sure if it really helps the community in financial aspect because they haven’t tried it
yet. The result shows that majority of respondents positively think that consumers’
cooperative can help the community in terms of financial aspect.As stated by Fajardo and
Abella (1999), the ultimate social objective of a cooperative is community building. This
is the same with community development. Both use the principle of self-help and
involvement in their methods of solving community problems.
Consumers’ cooperative provides the right commodities. Eighty eight percent of
respondents agreed to this statement, 7% said that they were not sure if it can really
provide the right merchandise and some have no ideas about cooperatives. Many (88%)
of respondents also said that consumers’ cooperative can provide the right quantity,
quality and price of merchandise. Some said that they were not sure if it can really
provide it because they haven’t tried having such organization and some were not aware
about consumers’ cooperative. This means that consumers cooperative can be a great
help to the community, it can provide the needed merchandise through mutualcooperation
of the community. This was stated by Onagan (1973), which says that good service was
the primary objective of cooperatives.
Most (88%) of respondents answered that consumers’ cooperative can help
the people in terms of savings, 1% don’t agree, 7% said that maybe, it can help the
people and 4% have no idea. As stated by Fajardo and Abella (1999), a portion of the net
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savings of the consumers’ cooperative is given to each member as patronage refund in
proportion to his purchases. Members also acquire interests on their shares.
As for the consumers’ cooperative as an organization that won’t last, 1% agreed
and 35 % disagreed. Majority (60%) of the respondents said that they were not sure
because this will depend on the management or the officers who will handle the said
cooperative.
Majority (92%) of respondents were willing to join the said cooperative if
organized, 5% were not willing and 3% have no ideawhat consumers’ cooperative is.
Potential of the Community
aboutEstablishing Consumers’
Cooperative
Needs of the community. Table 4 presents the needs of the community and the
place where the respondents were purchasing their merchandise. The commodities that
are mostly purchased by the respondents are rice (40.8%), sugar (39.2%), lard (23.8%),
salt (6.9%), soap (6.9%), canned goods (6.9%), and medicine (3.8%). As a result, the
needs of the community that consumers’ store can provide if established are mostly house
hold or kitchen used.
Majority (61%) of respondents were purchasing their merchandise at the sari-sari
store and just 39% at the town proper. Mostly, the respondents were purchasing their
needs weekly or daily, either on sari-sari store or town. Sugar, salt and lard were bought
per kilo or pack. Respondents often purchased the goods or merchandise depending on
their budget or depending on when the commodities will be consumed. Some respondents
also don’t buy rice because they have their own rice field but others were buying it per
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kilo or cavan. Commodities such as curls/candies, drinks, gas, tissue, and grooming aids,
liquors, frozen foods will be bought if necessary. As for the school supply, many were
purchasing it yearly at the town proper.
Table 4. Needs of the community
PARTICULAR FREQUENCY
PERCENTAGE
Commodities*
Rice
53
40.8
Sugar
51
39.2
Lard
31
23.8
Salt
9
6.9
Soap
9
6.9
Canned goods
9
6.9
Medicine
5
3.8
Purchasing place
Sari-sari store
79
61
Town proper
51
39
TOTAL 130
100
*Multiple response
Presence of qualified officers. Table 5 shows that 88% respondents said that there
are qualified officers that can serve in the cooperative, 12% said that there are no
qualified officers in the area. Their reasons for having qualified officers were as follows:
there are people who are honest (36%), trusted (32%), God fearing (7%), willingness or
interest to be an officer (7%), right/good attitude (4%), having self-confidence (2%),
educated (2%) and it will depends on the group discussion or voting (10%).
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As for the 12% who said that there were no qualified officers in the area, the
reasons are no trust to people (79%), not willing to be an officer (7%), and dishonesty
(14%). The result shows that there can be qualified officers if ever the consumers’
cooperative will be established in the area.
Table 5. Availability of qualified officer
PARTICULAR FREQUENCY
PERCENTAGE
Presence of qualified officers
there are qualified officers
110
88
no qualified officers
15
12
TOTAL 125
100
Reasons for having qualified officers
Trusted
37
32
Honest
41
36
God fearing
8
7
Right/good attitude
5
4
interest/willingness 8
7
Self-confidence
2
2
Educated
3
2
Through voting/group discussion
11
10
TOTAL 115
100
Reasons for no qualified officers
No trusted
11
79
not willing
1
7
Dishonest
2
14
TOTAL 14
100
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Willingness of respondents to invest in the cooperative. Table 6 present the
willingness of respondents to contribute or invest in the cooperative. One hundred twenty
respondents said that they are willing to invest in case a consumers’ cooperative will be
organized in the area. They are willing to invest a share capital of Php 500(31.6%), Php
1,000(12.5%), Php 2,000(3.3%), Php 300 (1.7%), Php 1,500(0.8%), Php 3,000 (1.70%),
Php 5,000 (1.70%), and 10% said that it will depend on the group discussion.
Table 6. Willingness to invest in the cooperative
PARTICULAR FREQUENCY
PERCENTAGE
Willingness to contribute in the
Cooperative
Willing
120
96
Not willing
5
4
TOTAL 125
100
Share capital
500 38
31.60
1,000 15
12.50
2,000 4
3.30
300 2
1.70
1,500 1
0.80
3,000 2
1.70
5,000 2
1.70
Depends to the group discussion
56
46.70
TOTAL 120
100.00
Reasons for not willing to join
Time consuming
3
60
Threat to the store
1
20
Old to join
1
20
TOTAL 8
100
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Four percent respondents are not willing to join or invest in the cooperative. There
reasons were 60% consumed time, 20% said that it will be a threat to stores and 20% said
that he/she was old enough to join.
As the result, majority of respondents wants to contribute or invest a share capital
to the cooperative if it will be established.
Perception of Respondents
to the Sari-Sari Stores
Table 7 present the perception of respondents about the sari-sari stores. The result
shows that majority of respondents were not so much satisfied to the service of the sari-
sari stores wherein some respondents said that they will go to the other stores to find the
needed merchandise even if that store will be in other purok.
Majority (71%) of respondents said that the sari-sari stores sometimes do not
provide the kind of merchandise that was needed by the community. This was because
some stores were not purchasing the right brands of merchandise that was needed by
people. Eighty-nine respondents said that it totally provide the needed merchandise and
some (8%) said that it doesnot provide the needed kind of merchandise.
As for the quantity of goods in the sari-sari stores, majority(64%) said that some
specific number of merchandise were not completely available. Thirty-nine (31%)
respondents said that the needed quantities of merchandise were completely provided by
the stores and 5% also said that it doesn’t provide the right quantity of merchandise.
Majority (63.2%) of people said that right quality of merchandise in stores were
sometimes not provided because some were expired specially those that was stocked.
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This was followed by 34.4 % who said that stores provide the right quality of
merchandise and 2.4 % said that it doesn’t provide the needed quality of commodities.
Most(52.8%) respondents said that stores have the right price of merchandise,
followed by 37.6 % respondents who said that they were sometimes contented to the
price of goods they are buying and 9.6 % said that the price were very high. This shows
thatmajorityof respondents were satisfied on the price of merchandise in the stores due
to the increase of fare.
Table 7. Perception of respondents to the sari-sari stores
RESPONSE
Sometimes
PARTICULAR
Provide
Do not provide
provide
F % F % F
%
Right kind of merchandise
26
21
10
8
89
71
Right quantity of goods
39
31
6
5
80
64
Right quality of goods
43
34.4
3
2.4
79
63.2
Right price of merchandise
66
52.8
12
9.6
47
37.6
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This research was conducted to determine the potentials of organizing consumers’
cooperative in Aliaga, Bambang, NuevaVizcaya.
The respondents were 130 household from the area of the study. Survey
questionnaire was used in gathering data. Personal interview and focus group discussion
was done to some respondents. Data gathered was analyzed using percentage and
frequency counts.
The study found out that majority of respondents’ ages ranges from 26 to 45,
female, married, and attended formal education. Most respondents were farmers and
house keeper and most have an income of Php 100,000 and below per year. Majority
were member of an organization and association for 1-5 years.Some were officers of the
organization.
Majority have good perceptions about the consumers’ cooperative. The
respondents mentioned that if the cooperative will push through, it will help the
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community in terms of financial assistance, provides the right kind, quality, quantity and
price of merchandise and it can help individuals in terms of savings. Although, with this
perception, most mentioned that the success of this cooperative will depend on the people
who will manage this cooperative. Majority of them wants to join the said cooperative.
Most respondents often purchased rice, sugar, lard and other house hold needs.
Majority were purchasing their needs in sari-sari store weekly or daily. This will depend
on their budget. Even though most of the respondents were purchasing in sari-sari stores,
this is not enough because some merchandise were not available.
Majority of the respondents mentioned that there can be qualified officers that can
lead the cooperative. Their main reasons were that there are still people who could be
trusted and honest.
Most of the respondents said that they are willing to contribute or invest a share
capital to the cooperative if it will be organized. Share capital will depend on the
discussion ofthe community.
Conclusions
Based on findings of the study, the following conclusions were drawn:
1. The distance of market place to Aliagacenter is seven kilometers wherein the
fair of individual who will go to the market is 18-20 pesos (one way). This can be an
additional expense to the people.
2. Most of the respondents were purchasing at the sari-sari stores but were not so
much satisfied in the service of stores because of unavailability of other commodities that
was needed by the people.
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3. Most of them have good perception about the consumers’ cooperative. Many
said that this can be advantageous to them, if it will be organized, because this can
provide the needed necessities (specifically house hold need) of the community and this
can help them in terms of savings through patronage refund.
4. Majority of respondents were willing to invest a share capital to the
cooperative, if ever there will be a plan to organize consumers’ cooperative. They also
said that there can be qualified officers from the area that can help in leading the
cooperative and this will be determined through group discussion or majority vote.
5. Furthermore, from the responses of the respondents, then it can be concluded
that organizing a consumers’ cooperative at Aliaga, Bambang, Nueva Vizcaya would be
possible.They wantto tryhaving communityownedstore inorderto have an
organization that can provide complete and right merchandise.
Recommendations
Based on the conclusions, the following are recommended:
1.Since majority showed interest in organizing consumers’ cooperative, then
deeper feasibility study should be conducted to help in knowing if it is viable to put-up a
consumers’ cooperative. Then if the result of the feasibility study show that it is viable,
then it is time to organize one.
2. Before organizing, a committed core group that will help in organizing should
be determined since commitment is needed for a cooperative to be successful. After that,
then information dissemination should be conducted such as seminars and meetings of
the members of the community for them to be more knowledgeable about consumers’
cooperative. It would be better also if the advantageous and disadvantageous of
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
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cooperative will be discussed for them to know the do’s and don’ts in forming
cooperative. In addition, a committed officers and members are recommended also for a
cooperative to be successful since they will be the one who will look up for the
cooperative and so that it will not be a fly-by-night organization.
3. Furthermore, an organized linkage to secondary cooperative is recommended to
have stable and strong cooperative and to have access or information about cooperatives
like the laws, rules and regulations, and others. This is an application of the cooperative
principle stated as “cooperation among cooperatives”.
LITERATURE CITED
ANONYMOUS. 2008. Why Start a Co-operative?Retrieved August 15, 2011 from
http://www.creatives.uk.coop/why-start-co-operative
FAJARDO, F.R. and F. ABELLA. 1999. Cooperatives Fourth Edition. Rex Book Store
Inc. Pp. 34-35; 186-187.
GARCIA, J.K. 2008.Potentials on establishing laboratory cooperative in La Trinidad,
Benguet. BS Thesis. Benguet State University, La Trinidad, Benguet.P. 10.
KINGAY, R.C. 2012.A diagnostic study on the potentials of organizing farmers
marketing cooperative at Daclan, Tublay, Benguet. BS Thesis. Benguet State
University, La Trinidad, Benguet. P. 2.
ONAGAN, L.D, J.T. SIMAÑGAN and M.S. ESGUERRA. 1973. Cooperative Principles
and Practices, L.D. Onagan and Sons Publishers. Pp. 92-97, 101, 105.
PHILIPPINE COOPERATIVE CODE OF 2008 R.A. 9520 AND IMPLEMENTING
RULES
AND
REGULATIONS.Philippine Cooperative Center. Pp. 4,81,84.
PUNZALAN, D.C., 1981. Food Marketing in Asia-Systems.Cooperatives and Policies.
Food and Fertilizer Technology Center, Taiwan, Republic of China.P. 70.
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
39
APPENDIX A
Letter to the Respondents
Department of Agricultural Economics and
Agribusiness Management (DEAEM)
Benguet State University
La Trinidad, Benguet
November 2011
____________
Sir/Madam,
Warm greetings!
I am a senior student taking up BS Agribusiness major in Cooperative Management at
Benguet State University. I’m having a research study entitled “A Diagnostic Study of
the Potential of Organizing Consumers Cooperative at Aliaga, Bambang, NuevaVizcaya”
as requirement for the degree. In this connection, I would like to ask from your opinion
regarding the following queries.
Thank you very much for spending your time and rest assured that all will be taken into
consideration.
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
40
Respectfully yours,
GRETCHEN N. TAD-O
BSAB Student
Noted:
PROF. DAVID JOSEPH BOGNADON
Thesis Adviser
APPENDIX B
Survey Questionnaire
A.PERSONAL INFORMATION
1. NAME:
DATE:
2. AGE:
GENDER: _M_F
CIVIL STATUS: _S_M
3. HOME ADDRESS:
4. OCCUPATION:
5. EDUCATIONAL BACKGROUND:
__No
formal
education __College
under
graduate
__Elementary
under
graduate
__College
graduate
__Elementary
graduate __Vocational/Technical
__High School under graduate
__High
School
graduate
6. Are you a member of any organization?
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
41
_Yes
_No
7. If yes, what type of organization?
__Cooperative
__Association
8. What position are you holding?
__Member,
how
many
years
have you been a member? __
__Officer, what position and how many years have you been in
that
position?
________________________
9. What are the sources of income of your family?
__farming
__sari-sari
store
__tricycle
operator/driver
__others,
please
specify_______________
10. Household Income per annum:
__Below
100,000.00
__100,
001.00
to
150,000.00
__151, 001.00 to 200, 000.00
__Above
200,
001.00
B. AS TO PERCEPTION OF RESPONDENTS ABOUT CONSUMERS
COOPERATIVE
1. Please check yes if you agree and no if not agree.
QUESTIONS YES
NO
a. Is consumers’ cooperative organized by the community and
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
42
owned by them?
b. Is consumers’ cooperative an organization that helps the
community in terms of financial assistance?
c. Do you think consumers’ cooperative provides the right
commodities or merchandise?
d. Do you think consumers’ cooperative provides right quantity,
quality and price of merchandise?
e. Do you think consumers’ cooperative can help you in terms of
savings?
f. Does consumers’ cooperative just an organization that won’t last?
g. Are you willing to join consumers’ cooperative if organized?
C. AS TO POTENTIAL OF THE COMMUNITY ABOUT ESTABLISHING
CONSUMERS COOPERATIVE
1. Felt Need.
a) What commodity do you purchase often? Specify.
_______________________________________________________
b) In your observation, what are the needs in your community that
consumers’
store
can
provide?
_________________________________________________________
2. Volume of Business.
a) Where are you currently purchasing your house hold needs?
__sari-sari
store
__town
proper
b) How much is the volume of your purchased products?
QUANTITY
HOW OFTEN?
PURCHASED
(daily, weekly,
DESCRIPTION OF COMMODITY
monthly, yearly)
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
43
Rice
Canned goods
Sugar
Salt
Lard/oil
Soap (bath soap, laundry soap)
Milk/coffee
Ingredients (soy, bagoong, paminta, vetsin, knorr
cube, garlic, vinegar, etc.)
Frozen foods
Eggs
Pancit
Medicines
Curls/candies/crackers
Drinks(litro, 1.5, 12 oz, drinky)
Bakery Bread
Gas
Tissue/ Diapers
School Supply
Grooming Aids(Baby Powder, Tooth brush,
Rexona, Shampoo)
Cigarettes
Liqours
3. Availability of Qualified Officers
a) Do you think there are qualified people to serve in the cooperative?
__yes
__no
b) If yes, why?
______________________________________________________
c) If no, why?
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
44
______________________________________________________
4. Adequacy of Resources
a) Are you willing to contribute or invest in the cooperative? Yes_ No_
b) If yes, how much share capital do you want to invest?
__500
__1000
__2000
__others,
specify_________________
c) If no, Why? ____________________________________________
5. Buying Behaviour
QUESTIONS YES
NO
SOMETIMES
Do the sari-sari stores adequately provide the following that
are needed by the people
a. Kind of merchandise/goods you need?
b. Quantity of goods?
c. Quality of goods?
d. Right price of merchandise?
A Diagnostic Study on the Potential of Organizing Consumers Cooperative in Aliaga,
Bambang, Nueva Vizcaya /Gretchen N. Tad‐o. 2012
Document Outline
- A Diagnostic Study on the Potential ofOrganizing Consumers Cooperative inAliaga,Bambang, NuevaVizcaya
- BIBLIOGRAPHY
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDIX