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De La Salle University Manila

The Correlation of Monthly Income and Rice Consumption of Filipino Families In Brgy. Villamonte, Bacolod City, Negros Occidental

A Research Paper presented to The Faculty of the Decision Sciences and Innovation Department Ramon V. del Rosario College of Business In Partial Fulfillment of the Requirements in Basic Research Methodology (BASIREC)

Submitted to: Professor Eula Villar

Submitted By: Ku, Marian Joyce Camille Torres, Bienvenido Uy, Anika Michelle

December 2012
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Acknowledgements

The researchers would like to extend their gratitude to the following who in one way or another contributed to the completion of this study:

Families from Barangay Villamonte, Bacolod City, Negros Occidental - Respondents Ms. Eula Villar - Basic Research Methodology Professor

Table of Contents

CHAPTER 1: INTRODUCTION BACKGROUND OF THE STUDY RESEARCH PROBLEM RESEARCH OBJECTIVES SIGNIFICANCE OF THE STUDY SCOPE AND LIMITATIONS

4 4 6 6 7 7

CHAPTER 2:REVIEW OF RELATED LITERATURE

CHAPTER3: THEORETICAL FRAMEWORK THEORETICAL FRAMEWORK CONCEPTUAL FRAMEWORK OPERATIONAL FRAMEWORK

13 13 18 22

CHAPTER 4: METHODOLOGY

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CHAPTER 5: DATA ANALYSIS

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CHAPTER 6: CONCLUSION AND RECOMMENDATION

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APPENDICES REFERENCES CHARTS AND FIGURES SAMPLE QUESTIONNAIRE

31 31 35 38

I.

Introduction

A. Rationale and Background of the Study Over the past years, the economy of the Philippines has not been stable. As it has experienced growth and downturns, the food consumption of Filipino families has varied but rice, being the staple food in the Philippines, has steadily been on top of the food list. Philippine Food and Nutrition Security Atlas (March 2012) suggests that a typical Filipino diet is a combination of rice, fish and vegetables that is equivalent to 861 grams of food in raw or purchased form. Each year, a household consumes 568 kg of rice, paying P17, 123 for it (Rappler, September 2012). The Philippines has even been ranked 4th in the major rice importing countries in 2012 according to United States Department of Agricultures (USDAs) Production, Supply, and Distribution (PSD) survey results. Unlike other Southeast Asian countries wherein better economy equates to lesser rice demand, Philippines demand on rice is consistently increasing. Based on a study by the Southeast Asian Regional Center (SEARCA) for Graduate Study and Research, the average rice consumption of a Filipino in the 1980s/1990s, is 92 kilograms, 111 kilograms in 2008-2009, and 119 kilograms in 2009-2010 (Rappler, September 2012). Last 2011, the Bureau of Agriculture Statistics (BAS) released the Family Income and Expenditures Survey (FIES) of the National Statistics Office (NSO),

which mapped out the diet of Filipinos over the recent years. According to the survey, Filipino families had been spending more for their food, with 42.6 percent of total household expenses going to agricultural commodities and that they had been depending on rice more than ever for their caloric and protein intake. The survey also noted that Filipinos intake of beef and certain fruits and vegetables have gone down in the past decade. Efraim Rasco, chief of the Philippine Rice Research Institute said the increase in per capita consumption could be attributed to two things. Rasco said First is that the corn- and cassava-eating provinces have shifted to rice because they see it as a classier food. This shift was reflected in the BAS survey, which showed that corn consumption went down to 44.30 grams per day from 50.88 grams per day in 2000. He also noted that the large share of rice in the diet of Filipinos indicated their poor purchasing power. That Filipinos rely heavily on rice to get through their day could mean that they still cannot afford other commodities, Rasco said. (Alave, December 2011) Food consumption is one of the primary indicators of poverty level. Rolando Dy, an economist at the University of Asia and the Pacific, said rice consumption tended to go down as income went up, allowing households to shift to other sources of calories like bread, potatoes and meat (Alave, December 2011). With these assumptions given, can we conclude then that income is not directly proportional to rice consumption? Are there any other factors that affect Filipinos in choosing rice as their staple food?

The rationale behind this study is to have a clear idea on the relationship between income and consumption of rice of Filipino families. Furthermore, this study aims to explore other factors that might affect rice consumption in the Philippine setting.

B. Research Problem How does income affect the consumption on rice of families in the Philippines?

C. Research Objectives The general objective of the research is to inform readers a detailedenough idea on how income affects the rice consumption of families in the Philippines. In line with this, the researchers will be studying the other different factors that may affect consumption of rice. The research includes other specific objectives which are:

To determine what type of rice Filipino families buy in relevance to their income

To determine if there are differences as to where Filipino families earning different amount of income buy their supply of rice

To determine if there is a relationship between how much rice a household consumes in a period of time (size of packaging bought over a period of time) and the income of a household

D. Significance of the Study The research will be a significant endeavor in the part of the operations department of companies selling rice for they will know the link between a households income and consumption. This study will allow companies to know when to increase or decrease their supply by looking into the per capita income of the country. In addition to that, since there is relative competition in the rice production industry, it is only necessary for companies to know where to situate their products more appropriately and efficiently.

E. Scope and Limitations The research primarily involves the relationship of rice consumption of families in the Philippines and income per household. It will encompass how much rice a household can consume in a period of time given a certain budget, in this case, their income. It will tackle factors that equate to the buying pattern of Filipino families on rice which are the type or the brand of rice, size of packaging, frequency of purchasing rice, and the place made available by the companies for families to buy. The types of rice, in descending order, are Type A (Jasmine, Japanese Rice, Rosanap), Type B (Dinurado, Intan, Milagrosa), and Type C (Wag-Wag, C4, IR36, IR42, IR64). Accessibility to the supply of rice are as follows: retailers, wholesalers,
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supermarkets, sari-sari store, and public market. On the other hand, the size of packaging and the frequency of the families to buy rice vary and are highly dependent on the households income and daily consumption. The research is limited to Filipino families residing in urban areas in the country but the research will particularly put its focus on households located in Barangay Villamonte, Bacolod City, Philippines.

II.

Review of Related Literature Introduction

Rice is the dominant staple in essentially all Asian countries, except Pakistan. (Herdt et al, 1985) In the Philippines, rice is part and parcel of the history of the country. It has been a major energy source. It is a daily essential; a Filipinos plate would not be complete without rice. There isnt a gap between the income and stature of family with regards to rice. Every family, rich and poor, consume rice as part of their meal.

Consumption of Rice

Rice remains to be the most affordable food in the country (Alave, 2011). It is one of the incentives for Filipinos to buy the good. Another is that it has become a permanent (if not for a lifetime) portion of their food groups. Rice can be found in all parts of the archipelago. It is an ubiquitous good valued by every Filipino.

Rice is an indispensable meal for Filipinos. Although it is only natural to allot a portion for other types of food, Filipinos consume a great amount of rice.

Filipinos, especially the poor, tend to rely more on rice than other food groups. As the income increases, Filipinos can expand their alternatives but as the income decreases, more and more Filipinos would allocate a great deal to rice as their

meals. Efraim Rasco, chief of the Philippine Rice Research expressed alarm over the growing consumption of rice and the decreasing intake of other foods. It would mean that the government should hike its rice production to keep up with the demand, he said. Furthermore, he described this kind of diet as unhealthy (Alave, 2011).

Experts persuade Filipinos to diversify their food consumption. Lessen the rice intake and add on to other food groups to have a balanced meal. Poor families dont see other alternatives because they think rice is among the only foods with health benefits. But they should also be able to find alternatives in order to be more healthy.

Rice and Income

This particular study aims to recognize the relationship of the income and the consumption of rice by Filipino families.

Food consumption is one of the primary indicators of poverty level. (Alave, 2011). There is a major difference between the meals of a rich family with that of poor. While both families take in rice, the rich would also be taking in other types of food. On the other hand, the poor because of its income would consume more rice leaving only a portion for other foods.

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Rice is an indicator of how poor a family is. In the Philippines, rice consumption has continuously increased, which according to analysts is an indication that most Filipinos remain poor as they lack the means to expand their choice of food (Poor Filipinos are addicted to rice, 2008).

Rolando Dy, an economist at the University of Asia and the Pacific, said Rice consumption tended to go down as income went up, allowing households to shift to other sources of calories like bread, potatoes and meat. (Alave, 2011). The families who attain stability in their income tend to buy diverse goods than the families with low income.

The countrys neighbors exhibit the trend that as incomes rise, people would consume less rice & corn in favor of other foods, such as produce, meat, fish, and baked goods. In the case of the Philippines, despite rising per capita income, rice consumption still rose in the past few years. Rice consumption by higher income groups actually declined, following the trend in middle- to higher-income countries. The rich have a more diverse food basket, and also eat more fish, meat, and produce, the study noted, so they depend less on rice. Lower-income Filipinos, particularly those in rural areas, still depended on the staple. (Filipinos' high rice consumption fueled by the poor, 2012)

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Most rice consumers are poor, particularly those in the barrios where food revolves around rice, the basic table fare. This is also true for the rich; but unlike the poor, the more affluent have diverse food baskets and consume more luxury commodities such as fish, meat, fruits and vegetables (ScienceNewsPhilippines, 2012).

Synthesis

Rice is the most inelastic or least responsive to changes. With increasing prices, Filipinos are more likely to cut back more on the consumption of other food than rice. Healthy foods are being left for more rice consumption. Filipinos especially in the rural areas see rice as an alternative to every single food. Relative to other normal goods, consumption of rice and meat would tend to increase more with higher income level (Sanguyo, 2011). Rice is truly an essential for Filipinos. They allot a great amount of rice into their diet. Even if income increases, Filipinos would still choose to consume rice than other goods. The income does not contribute to the fluctuations in the demand of rice in the country.

Rice is resilient and is likely to not be affected by price changes. It is a peculiar instance that rice consumption is not affected whether be it a high or low income. Filipinos would still consume rice despite income variations.

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In addition, the researchers found that almost if not all the literatures focus on the rural areas of the country. This study will evaluate the relationship of income and rice consumption of Filipino families in the urban areas. To be more specific, there is no available study related to this relationship on the population of Barangay Villamonte, Bacolod City which is one of the most populated areas in Bacolod City and is part of the second most rice producing and consuming region in the Philippines which is Western Visayas.

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III.

Framework of the Study This chapter will discuss the theoretical, conceptual and operational frameworks utilized in the study. They will help direct the study on how income can affect the buying consumption of rice. They will explain the relationship of income with regards to type of rice, size and packaging of rice bought over a certain period of time, and where rice is bought. They are essential in order to understand how Filipino families buy their rice based on how much they earn and how much they can allocate of their consumption. Furthermore, the frameworks mentioned in this chapter would also strengthen the production of rice in milling companies in administering the study.

Theoretical Framework

Figure 1. Milton Friedmans Theory on Consumption

Figure 1 illustrates the Consumption Theory. The central idea of the permanent-income theory, proposed by Milton Friedman in 1957, is simple: people base consumption on what they consider their "normal" income. In doing this, they attempt to maintain a fairly constant standard of living even though their incomes may vary considerably from month to month or from year to year. As a result, increases and decreases in income that people see as temporary have little effect on their consumption spending. The idea behind the
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permanent-income theory is that consumption depends on what people expect to earn over a considerable period of time. As in the life-cycle hypotheses, people smooth out fluctuations in income so that they save during periods of unusually high income and dissave during periods of unusually low income. Thus, a pre-med student should have a higher level of consumption than a graduate student in history if both have the same current income. The pre-med student looks ahead to a much higher future income, and consumes accordingly. (Schenk, n.d.)

In order to test the theory, Friedman assumed that on the average people would base their idea of normal or permanent income on what had happened over the past several years. Thus, if they computed permanent income as the average of the past four years, and income had been $13,000, $10,000, $15,000, and $8,000, they would consider their permanent income as $11,500.1 Although our expectations of future income do not depend solely on what has happened in the past, these additional factors are almost impossible to include into attempts to test the theory with data. (Schenk, n.d.)

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Figure 2. The relationship between Income and Consumption

Figure 2 shows the relationship between income and consumption. The most direct (and popular) measures of living standards are income and consumption. In general terms, income refers to the earnings from productive activities and current transfers. It can be seen as comprising claims on goods and services by individuals or households. In other words, income permits people to obtain goods and services. In contrast, consumption refers to resources actually consumed. Income is only received intermittently, whereas consumption is smoothed over time. As a consequence, it is reasonable to expect that consumption is more directly related to current living standards than current income, at least for short reference periods. In other words, while the flow of consumption over a period of, say, a week, or a month, may provide a good indication of the level of consumption during a full year, measured income over the same period is most likely
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a an inaccurate measure of income for a full year. (Measuring Living Standards: Household Consumption and Wealth Indices, 2010)

Figure 3. The Income-Expenditure Model

Figure 3 presents the Income-Expenditure Model under Keynes Theory of Consumption.

The income-expenditure model is a macroeconomic model, which captures the essence of Keynesian economics, is based on the equality between total income generated from gross domestic product and total expenditures on gross domestic product. The cornerstone of the income-expenditure model is the consumption function, which relates household consumption expenditures to income and gives rise to the aggregate expenditure line with the addition of investment,

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government purchases, and net exports. The intersection between the aggregate expenditure line at the 45-degree identifies equilibrium. (Economic Glossary, 2008).

Keynes Theory of Consumption

The Keynesian Theory of consumption is that current real disposable income is the most important determinant of consumption in the short run. Real Income is money income adjusted for inflation. It is a measure of the quantity of goods and services that consumers have buy with their income or budget.

Three propositions under the Theory of Consumption:

1. When income increases, consumption expenditure also increases 2. The increased income will be divided in some proportion between consumption expenditure and saving 3. Increase in income always leads to increase in both consumption and saving. (Ramtek, 2011)

Keyness basic model of consumption was that current consumption expenditures are determined mainly by current disposable income. In other words, consumption is an increasing function of income (Ramtek, 2011). The Keynesian consumption function is usually written in linear form: Ct = a + bYt. The coefficient b, which Keynes called the marginal propensity to consume or MPC and which we would define concisely as C/Y, was to vie for the title of most estimated
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coefficient for several decades. Initial linear econometric consumption functions estimated by ordinary least squares produced results that conformed to Keyness theory: consumption seemed to be closely related to current disposable income and the MPC seemed to be positive and less than one (Parker, 2010).

Conceptual Framework Figure 4. Conceptual Framework

Figure 4 exhibits the variables used in the study in a diagram.

In relation to the theory presented above, income directly affects the five categories in this framework.

Frequency of Purchase:

Income affects the frequency of families to purchase rice due to the availability of their budget. Individuals vary in receiving their income. For some,

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they receive their salary every 15th or 30th of the month, this is when they usually buy their consumption of rice.

Location of Purchase:

As to the income and location of purchase, it is the accessibility and convenience where the individual buys the needed supply.

Two factors are of utmost importance in understanding consumer shopping behavior. First, consumers making shopping decisions achieve equilibrium between commodity costs and convenience costs. Second, convenience costs are assuming more importance as patronage determinants. Convenience costs are incurred through the expenditure of time, physical and nervous energy, and money required overcoming the frictions of space and time, and to obtain possession of goods and services. For instance, a consumer shopping in the central business district spends time, energy, and frequently carfare or parking fees, in addition to commodity expenditures. Such costs have always been involved in trading decisions. The new emphasis on convenience does not necessarily mean that consumers are less price conscious than formerly; rather, insistence on convenience cost minimization has been superimposed on the desire for economically favorable commodity transactions. Both commodity and convenience costs influence consumer patronage. One key to understanding shopping behavior is the increased importance consumers are attaching to convenience considerations (Kelley, 1998).

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There are four aspects of place convenience. In maximizing place convenience advantages, sellers have related decisions at four levels to make about the spatial positions that products initially should occupy in the market (Kelley, 1998).

a. The geographic area or areas in which the goods or services are to be offered must be selected. In these areas or markets are found the consumers of the goods. This seller decision usually is not of concern to the shopper who may choose from the offerings of many sellers of substitute products. The shopping mobility of consumers has tended to be limited to one metropolitan area, but this may not be the case in the future. Perhaps some larger scale retailers may become concerned about competition between metropolitan areas as well as with competition within a metropolitan area. b. The most satisfactory positions within the market must be selected from those offered by distributors and retailers selling space in the market. Channel-of-distribution decisions are involved. The one-stop shopping tendency of consumers has made channel selection more difficult for sellers in todays fluid market. c. Choices must be made among competing retail and wholesale institutions offering access to the consumer. Should a full service wholesaler utilized, or would a limited function wholesaler represent a better channel choice? Are urban or suburban positions preferred?

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d. Problems of positioning of goods within outlets must be settled. Display and layout decisions are involved at this level. (Kelley, 1998)

Moreover, consumers tend to make a purchase at the retails closer to their homes because it makes them easier to get the rice and will purchase whichever rice brand that is available in the market (Azabagaoglu and Gaytancioglu, 2009).

Type of Rice and Size of Packaging:

Consumer preference for rice varies from country to country. Usually they were very concerned about the quality and price of the commodity when they made a purchase (Diako et.al 2010). In America, consumers preferred rice which was associated with specific cooking types and menu as well as the processing characteristics. Whereas, in the Middle East they mostly favored a long grain and well-milled rice with strong aroma compared to the Europeans who tend to prefer the long grain with no scent. The Japanese on the other hand gave high priority on the well-milled, very recently processed, short-grain Japonica rice. In contrast, the imported rice became a consumer choice in Nigeria due to their cleanliness and swelling capacity, taste, availability and grain shape. These characteristics of imported rice also are mostly preferred by restaurants and fast food industries to be used in their businesses (Akaeze, 2010).

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Suwannaporn and Linnemann (2008) and Basorun (2008) reported that consumers in Japan, Korea, North China and Taiwan prefer to purchase rice at low price. There were increasing demands for local rice in these countries as the price was cheaper than imported one. High price will be a factor that prevents consumers to purchase certain brand of rice that they preferred.

Figure 5. Operational Framework

Figure 5 illustrates the operational framework, which includes the definition of the variables used in the study.

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IV.

Methodology

The correlational research design will be used in this study for the general purpose of interrelating indicator variables such as frequency of purchase, daily consumption of rice, type of rice, size of packaging, and the location where a household buys to the monthly income received by a Filipino family. This will be essential in order to understand the relationship between a familys monthly income and its monthly consumption of rice. This research design will help this study show predictions of a future outcome from the said variables and will suffice the basic knowledge needed to support the topic of the study.

The primary bases of the study will be the data extracted from questionnaires and surveys, with the authorization of the families themselves. A selfadministered questionnaire type of survey will be conducted by the researchers to gather information regarding the topic of the study. The questionnaires will be based on the factors that might play on consuming rice such as the categories mentioned earlier (monthly income, brand name, and accessibility of products) and will be done through online and/or writing on hard copies of said questionnaires. Close-ended questions answerable by yes or no will be used for the straightforward interpretation of the results. Variables which measures quality of the product will be converted to measurable or numerical data with the use of a rating scale.

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This research study will be extracting quantitative data from the questionnaires. After getting the results provided by the answered questionnaires, the researchers will analyze them through correlational analysis to determine mathematically whether there are trends or relationships between the sets of data from the list of variables. This analysis will then answer a statistical yes or no to the research problem.

As of 2010, the population of Barangay Villamonte, Bacolod City is 38,498 and the average number of persons per household is 4.7 based on the 2010 census of the National Statistics Office (NSO). With these given, our population sample size is 8,191 households.

Null Hypothesis: There is no correlation between the variables. Alternative Hypothesis: There is correlation between the variables.

Using the following formula, the sample size was determined: n = N x/((N-1)E2 + x)

where, Margin of error (E) = 5% Confidence level (x) = 90% Population size (N) = 8,191 Response distribution = 50%
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The computed minimum sample size (n) is 269 of the total population of 4.7 persons per household in the purposively selected barangay in Bacolod City.

This research study will be extracting quantitative data from the questionnaires. After getting the results from 269 households, the researchers will analyze them through correlational analysis, specifically Pearsons correlational coefficient, to determine mathematically whether there is an association between the sets of data from the list of variables. This analysis tool will either show a positive or a negative correlation which will answer a statistical yes or no to the research problem.

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V.

Data Analysis This section provides the summary of the survey. The survey garnered 159 females and 110 males, which appears that the discrepancy of buying rice for both sexes is not that far. Both sexes purchase rice for their family. Out of 269 respondents, 60% were single, 24% were married, 11% were living with a partner and the rest were either recently separated/divorced or have a partner but not living together. 2% of the respondents obtained primary education, 15% secondary education, most of them (74%) finished tertiary, 7% masteral and 2% doctorate. 26% of the respondents have an income of P10,001-30,000 followed by 24% having less than P10,000 as an income. Half of them have 4-6 family members, 38% have 1-3, 24% 7-9 and 2% have 10 or more.

Table 1: Socio-economic characteristics of rice consumers in Barangay Villamonte, Bacolod City, Negros Occidental Characteristics Male Gender Female Category Number 110 159 % 41% 59%

Single Married Relationship Status Living with a Partner Recently

161 65 30

60% 24% 11%

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separated/divorced Have a partner but not living together Elementary High school Education College Masteral Doctorate Less than P10,000 P10,001-30,000 P30,001-50,000 Monthly Income P50,001-70,000 P70,001-100,000 P100,000 above 1-3 Number of Household Members 4-6 7-9 10 or more

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5%

5 40 200 19 5 62 87 50 26 15 29 101 138 25 5

2% 15% 74% 7% 2% 24% 26% 19% 10% 6% 11% 38% 50% 10% 2%

Table 2: Correlation coefficient with the use of Microsoft Office - Excel Frequency of Income Purchase

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Income Frequency of Purchase

0.48732695

Income Income Size of Packaging 1 -0.551903094

Size of Packaging

Income Income Location of Purchase 1 0.199209577

Location of Purchase

Income Income Type of Rice 1 0.148296703

Type of Rice

Frequency of Income Income Frequency of Consumption 0.339808259 1 1 Consumption

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The most number of respondents (shown in Figure 6) who took part in the survey have a monthly income of P10,001-30,000 or 26%. 62 respondents or 24% have less than P10,000 income of their family. 50 or 19% have P30,001-50,000. 29 or 11% have more than P100,000. 26 or 10% compose the P50,001- 70000 bracket. While 6% or 15 respondents have P70,001-100,000. Half of the respondents have 4-6 family members. As shown in Figure 7, 101 respondents or 39% have 1-3 members while 25 or 10% have 7-9 members. The remaining respondents have 10 or more family members (2%). Referring to Figure 8, most of the respondents buy rice monthly (125 or 48%). Others buy every week (104 or 40%), everyday (18 or 7%) while some rarely buys rice (12 or 5%). 92 respondents (35%) buy 1 sack of rice. 52 (20%) buy 3-6 kilos of rice, 49 (19%) purchase 7-12 kilos, 46 (18%) obtain 13-15 kilos and 19 (7%) buy below 2 kilos of rice. The results can be shown in Figure 9. More than half of the respondents consume rice three times a day (159 or 61%). Others eat twice (66 or 25%), once (16 or 6%), four times (14 or 5%) and five or more (10 or 4%) referring to Figure 10. Figure 11 shows that 150 or 57% of the respondents buy Type A of rice which includes Jasmine, Japanese Rice and Rosanna. 75 or 29% buy Type B which includes Dinurado, Intan and Milagrosa. The remaining 25 respondents or 10% buy Type C which includes Wag-wag, C4, IR36, and IR64

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Based on the results shown in Figure 12, Supermarket is where most of the respondents buy their rice (102 or 39%). Next is the public market (54 or 21%), retailers (53 or 20%), wholesalers (48 or 18%) and sari-sari store (23 or 9%).

The results show that the amount of income earned by a household has its relationship regarding the households frequency of purchasing rice, size of packaging purchased, frequency of consuming rice, type of rice, and source of rice. The factors tested for correlation has either a positive or negative correlation. The size of the packaging resulted to a negative correlation. As the monthly income increases, the packaging decreases. It indicates that the families buy less amount of rice to accommodate for other goods. Both the location of purchase and the type of rice yield a positive correlation. Since both are near to zero, the location and type have weaker correlation to monthly income. The frequency of consumption and frequency of purchase produced a positive correlation which indicates that as the monthly income increases, frequency of consumption and purchase increase as well.

The researchers were able to accomplish all their objectives in the study. Utilizing the correlation test, they were able to establish a link between income and consumption of rice with regards to the mentioned factors and they were also able to investigate the strength of using technology. Furthermore, the researchers can indeed verify the reliance of income rice consumption.

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VI.

Conclusion and Recommendation Considering income and rice consumption of Filipino families are directly related, we conclude that Filipino families need a source of income in order to purchase their daily supply of rice. Combining the factors that affect rice consumption, the buying of rice varies from one household to another depending on the amount of income they receive. The monthly income is also the deciding factor on how much a specific household buys and consumes rice. Moreover, most of the Filipino families in the urban areas buy Type A of rice which includes Jasmine, Japanese rice, and Rosanna and prefer to buy them from the supermarket followed by the public market. Given the results from this study, the proponents recommend that the government should promote a healthy lifestyle among Filipinos. The families should consider other alternatives such as corn, bread and root crops. Similar in urban areas wherein the families turn to other alternatives of rice when there is an increase in their income, the government should promote to rural areas and the whole country the importance of eating a balanced meal. In doing so, Filipinos would not be dependent on rice. Further, this study also proposes the production department of milling companies, one of the beneficiaries of this study, that they should be able to cope with the changes in the demand for rice for the purpose of maximizing their available resources more effectively and not having excess nor shortage in the supply of their product.

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VII.

Appendices References: A Look at Filipino Table Manners (2012). The Ilocos Times. Retrieved December 3, 2012 from http://www.ilocostimes.net/index.php/features-page/item/180-alook-at-filipino-table-manners. Akaeze, Q.O., (2010). Consumer Preference for Imported Rice in Nigeria

Perceived Quality Differences or Habit Persistence?. Unpublished Master Thesis. Michigan State University. Alave, K. (December 2011). Filipinos Rice Intake Goes Up As They Cannot Afford Meat, Fruits BAS. Retrieved December 3, 2012 from

http://newsinfo.inquirer.net/109307/filipinos%E2%80%99-rice-intake-goesup-as-they-cannot-afford-to-buy-meat-fruits%E2%80%94bas Azabagaoglu M.O., and Gaytancioglu O. (2009). Analyzing Consumer Preference to Different Rice Varieties in Turkey. Agricultura Tropica Et Subtropica, 42 (3), 118 125. Basorun, J.O. (2008). Analysis of the Relationships of Factors Affecting Rice Consumption in a Targeted Region in Ekiti State, Nigeria. Journal of Applied Quantitative Methods. 4.( 2), 145-153. Diako, C., Sakyi-Dawson, E., Bediako-Amoa, B., Saalia, F.K. and Manful, J.T. (2008). Consumer Perceptions, Knowlegde and Preferences for Aromatic Rice Types in Ghana. Nature and Science 8 (12), 12 19.

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Economic Glossary. (2008). Economic Definition of Income-Expenditure Model. Retrieved December 2, 2012 from http://glossary.econguru.com/economicterm/income-expenditure+model. Filipinos' high rice consumption fueled by the poor .(2012, September 30). Retrieved December 2, 2012 from http://www.rappler.com/business/13323-pinoyshigh-rice-consumption-fueled-by-the-poor Herdt, R et al. (1985). The Rice Economy of Asia, Volume 2. Retrieved December 2, 2012 from http://books.google.com.ph/books?id=H2MbKYjymI4C&pg=PA165&lpg=P A165&dq=income+and+rice+consumption+in+the+philippines&source=bl& ots=UEXf1SH7BY&sig=NjTfmOMUfKuOHE5GHO2WrxTaIY&hl=en&sa=X&ei=rTy8UN3UPOmViAfMwYGIAg&ved=0CFwQ6AEw CDgK#v=onepage&q=income%20and%20rice%20consumption%20in%20th e%20philippines&f=false Import Quantity. (24 August 2010). USDA: USDAs PSD. Retrieved December 2, 2012 from http://www.fas.usda.gov/psdonline/psdQuery.aspx.

Kelley, E. (1958). The Journal of Marketing. Retrieved December 2, 2012 from http://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid= 4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchasetype=article&accessType=none&sid=21101509432737&showMyJstorPss=fa lse&seq=3&showAccess=false.

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Measuring Living Standards: Household Consumption and Wealth Indices. (n.d.). Retrieved December 2, 2012 from

http://siteresources.worldbank.org/INTPAH/Resources/Publications/Quantita tive-Techniques/health_eq_tn04.pdf

Parker, J. (2010). Theories on Consumption and Saving. Retrieved December 2, 2012 from http://academic.reed.edu/economics/parker/s11/314/book/Ch16.pdf Poor Filipinos are Addicted to Rice (2008, April 9). Retrieved December 2, 2012 from http://www.gmanetwork.com/news/story/88473/news/specialreports/poorfilipinos-are-addicted-to-rice Ramtek, A. (2011). Consumption Function. Retrieved December 2, 2012 from http://www.slideshare.net/arpanramtek/consumption-function Rappler (2012 September). Filipinos High Rice Consumption Fueled by the Poor. Retrieved December 2, 2012 from http://www.rappler.com/business/13323pinoys-high-rice-consumption-fueled-by-the-poor

Sanguyo, E.B (2011, March). Estimating Price and Income Elasticities of Demand of Selected Food Commodities in the Philippines. Retrieved December 2, 2012 from http://www.bas.gov.ph/?ids=techpapers&id=1&srt=1&s=10&p=1&view=Ab out

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Schenk, R. (n.d.). Permanent-Income Hypothesis. Retrieved December 3, 2012 from http://ingrimayne.com/econ/FiscalDead/PermIncome.html

ScienceNewsPhilippines (2012, October 12). The Rice Eaters: Or why rice consumption is not going down as it should. Retrieved December 2, 2012 from http://www.malaya.com.ph/index.php/specialfeatures/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-notgoing-down-as-it-should Suwannaporn, P. and Linnemann, A. (2008). Consumer Preferences and Buying Criteria in Rice: A Study to Indentify Market Strategy for Thailand Jasmine Rice Export. Journal of Sensory Studies, 23, 1-13

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Charts and Figures Figure 6. Monthly income of the respondents

Figure 7.The number of household members

Figure 8. The frequency of the respondents to purchase rice

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Figure 9. The size of packaging the respondents buy

Figure 10. The frequency of the respondents to eat rice

Figure 11. The type of rice preferred by the respondents

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Figure 12. The places where the respondents purchase rice

Sample Questionnaire The Rice Consumption of Filipino Families

Good day! We, Marian Ku, Anika Michelle Uy and Bien Torres, are Business Management students of De Lasalle University, would like to ask your permission to answer our survey regarding our research study, The Rice Consumption of Filipino Families. We would highly

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appreciate it if you do answer the questions as honestly as possible. All information obtained in this survey will be confidential. Thank you!

Name (optional):

Age:

Gender:

Relationship Status:

___ Single

___ Married

___ Living with a partner

___ Have a partner but not living together

___ Recently separated/divorced

Highest Educational Attainment:

___ Elementary

___ Highschool

___ College

___ Masteral

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___ Doctorate

Monthy Income:

___ less than 10,000 php

___ 10,000 - 30,000 php

___ 30,000 - 50,000 php

___ 50,000 - 70,000 php

___ 70,000 - 100,000 php

___ 100,000 php and up

Number of household members

___ 1 - 3

___ 4 - 6

___ 7 - 9

___ 10 or more
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Frequency in purchasing rice

___ every day

___ every week

___ every month

___ rarely

Size of Packaging

___ below 2 kilos

___ 13 - 15 kilos

___ 3- 6 kilos

___ 7- 12 kilos

___ 1 sack of rice (50 kilos)

How often do you consume rice in a day?

___ once
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___ twice

___ thrice

___ four times

___ five or more

What brand of rice do you buy?

___ Type A (Jasmine, Japanese Rice, Rosanap)

___ Type B (Dinurado, Intan, Milagrosa)

___ Type C (Wag-Wag, C4, IR36, IR42, IR64)

Where do you buy your supply of rice?

___ Retailers

___ Wholesalers

___ Supermarkets

___ Sari-sari store


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___ Public Market

Thank you for your time.

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Some of the answered surveys

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