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Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction
Metro Manila being the capital of trade and as the economic center of the
Philippines faces a major problem. Throughout the years Manila has experienced
rapid growth from the business sector to an increased population of people which
has produced complex problems that needs to be addressed and if not taken
care of it can lead to far-reaching solutions. One of the most controversial issues
lately is the traffic congestion. The condition of road in Metro Manila has greatly
made an impact to the daily lives of the commuters. It affects not only our
valuable resources but also our economy. The Metro Manila Development
Authority in recognition of this problem has implemented various actions to be
able to minimize congestion in the city and to find an end to these problems; one
of it is the truck ban.

The basic concept of truck ban is that by eliminating trucks along Metro
Manilas major roads during peak hours, the traffic congestion problem may
lessen. During the implementation of the truck ban, in its first weeks we have

seen the positive effects in almost all areas of Manila, something that is only
experienced during Good Friday and whenever Manny Pacquiao has a battle to
win. Driving in Manila has never been this exciting: as if we were living in the
glorious days of the Philippine economy. Those were the years when traffic
congestion was a strange word and the price of gasoline was unimportant. The
objective was to decongest the continuing and habitual traffic problem in this part
of the country, which has gone from bad to worse. The deliveries of the goods
are delayed and export volume picks up. The available parking areas can
accommodate only a limited number of trucks and this leads to port congestion,
another problem. The city in its desire to promote improvement and to exceed
the achievements of the previous administration should have an intelligent
judgment. This study aims to determine the effects of the proposed scheme to
consumers.
To understand the transport and economic impacts of the truck ban
scheme, it is necessary to look into the changes in the market operations after
the truck ban has been implemented. Truck ban have been implemented in so
many cities around the world and they have succeeded, which gives us a relief.
The importance of knowing the effects of truck ban is it will give us light to the
real problem, that it is not just about the traffic congestion but the lack of
information and research about the real problem.

Background of the Study


In 1978, due to the critical situation of traffic congestion on the roads of
Metro Manila, the then Metropolitan Manila Authority (MMA), issued an official
order through Ordinance No.78-04 which prohibits cargo trucks, with gross
vehicle weight (GVW) of more than 4,000 kg., from traveling or passing along
eleven major thoroughfares within the metropolis during peak traffic hours from
6:00 A.M. to 9:00 A.M. and from 4:00 P.M. to 8:00 P.M., daily except on
Saturdays, Sundays and holidays. In 1991, the MMA issued Ordinance No. 19,
Series of 1991, amending the 1978 ordinance, providing Alternate Routes to the
Truck Ban Routes and a 2-hour reduction of the truck ban hours.
The present truck ban is covered by Ordinance No. 5, Series of 1994. In
1994, the then MMA issued Ordinance No. 5, Series of 1994, further amending
Ordinance No. 78-04 as amended by Ordinance No. 19 Series 1991. The
Ordinance restricts trucks to travel or pass along 10 major routes from 6:00 A.M.
to 9:00 A.M. and from 5:00 P..M. to 9:00 P..M., everyday except Saturdays,
Sundays and holidays. The Ordinance also provided for an all-day truck ban
along Metro Manilas major arterial road, the Epifanio de los Santos Avenue
(EDSA), everyday from 6:00 A.M. to 9:00 P.M. except Saturdays, Sundays and
holidays.

Despite the implementation of truck ban and several traffic measures, the
traffic situation in the roads of Metro Manila still worsen, that even on Saturdays
traffic congestion is still experienced almost everywhere in the metropolis. The
MMDA, in recognition of this dilemma, further amended Ordinance No. 5, Series
of 1994, by issuing Ordinance No. 96-008, which now includes Saturdays in the
truck ban period. In 1999, MMDA Regulation No.99-002, amended Ordinance
No. 5, Series of 1994, wherein the gross capacity weight has been amended
from 4,000 to 4,500 kilograms.

Theoretical Framework
In 1957 Herbert Simon challenged the classical economic theory that
economic behaviour was essentially rational behaviour in which decisions were
made on the basis of all available information with a view to securing the
optimum result possible for each decision maker. Instead, he contended that in
today's complex world individuals cannot possibly process or even obtain all the
information they need to make fully rational decisions. Rather, they try to make
decisions that are good enough and that represent reasonable or acceptable
outcomes. Simon proposed a less ambitious view of human decision making
which he called "bounded rationality" (BR) or "intended rational behaviour". It is,
as he called it that property of an agent that behaves in a manner that is nearly
optimal with respect to its goals as its resources will allow. He described the
results it brought as "satisficing." As early as 1947, he rejected the notion of an

omniscient "economic man" capable of making decisions that bring the greatest
benefit possible. Instead he and proposed the idea of "administrative man" who
"satisfices i.e. looks for a course of action that is satisfactory or `good enough.' "
Parminter and Wilson (2003) describe the model as follows: The model
addresses the internal (psychological) determinants of peoples behaviour across
a wide range of physical and social situations. The Theory of Reasoned Action
(TRA) is based upon peoples behaviour being strongly related to their attitudes
towards that behaviour. People form attitudes by systematically deliberating on
any information that they have about the behaviour being considered (Fazio,
1990, cited by Parminter and Wilson, 2003). In turn, attitudes result from an
individuals beliefs about the consequences of a particular behaviour and their
(his or her) evaluation of those beliefs. The more an individual expects that a
particular behaviour has good consequences for themselves, the more that
individual will have a positive attitude towards that behaviour. Similarly, the more
that an individual expects a behaviour to have undesirable consequences for
themselves, the more that they will have a negative attitude towards it. Peoples
attitudes influence their behaviour through the formation of intentions to behave
in certain ways.
Consumer Behaviour Theory (CBT) takes the needs of producers and
uses this as a starting point for evaluating the advantages and disadvantages of
an innovation. CBT assumes that a prospective adopter actively searches for
information and devotes a great deal of time and energy in making decisions.

CBT provides a framework for determining how innovations can contribute to


satisfying the needs of the adopters. There is an assumption that a variety of
decision processes occur when making the decision whether or not to adopt an
innovation. Furthermore, CBT provides criteria for identifying the decision
processes occurring in particular circumstances and recognizes that different
individuals adopts the same products for differing needs (Kaine, 2004).

Conceptual Framework
The study adopted the system approached known as input process
output model (Hiu 1991: 57 Slack , et. al., 1998: 9-17).
Input
Profile of the
Respondents:
Age
Sex
Civil Status
Highest
Educational
Attainment
Aspects of the effects
of truck ban in Manila
to consumers:

Process

Output

Assessment of the
effects of truck ban to
consumers

Effects of truck ban


in Manila to
consumers
assessed

Presentation, Analysis,
and Interpretation of
Data through
Questionnaire.

Quantity of the
products available on
consumption
Variety of the
product available on
consumption
Price of the
product
Operation of the
store where the
consumer buy the
product

Feedback

Figure 1 Research Paradigm

The first frame or input contains leading variables in the effect of truck ban
to consumers in the following aspects age, sex, civil status and highest
educational attainment.

The second frame or processes involves the methods and procedures to


be used to analyze those variables, through assessment of the effects of truck
ban in Manila to consumers. Included in the study were data gathering, analysis
and interpretation.

The third frame or output variables, contains the effects of truck ban to
consumers assessed.

Statement of the Problem


This study aims to determine the effects of truck ban to consumers.
Specifically, it aims to answer the following problems:

1. What is the profile of the respondents in terms of the following:


1.1 Age
1.2 Sex
1.3 Civil status
1.4 Highest educational attainment

2. How do the respondents assess the effects of truck ban in Manila in terms
of the following aspects?
2.1 Quantity of the products available on consumption
2.2 Variety of the product available on consumption
2.3 Price of the product
2.4 Operation of the store where the consumer buy the product
3. Is there a significant difference in the respondents assessment of the
effects of truck ban in Manila to consumers when they are grouped
according to profile?

Hypothesis
There is no significant difference in the effects of the truck ban to in Manila
consumers when they are grouped according to profile.

Scope and Limitation of the Study


This study is about the effects of the truck ban in Manila to consumers that
includes the following aspects quantity of the products available on consumption,
variety of the product available on consumption, price of the product and the
operation of the store where the consumer buy the product. It also considered
the selected variable such as the profile of the respondents and problems
encountered by the respondents on the outcome of the findings of the effects of
truck ban in Manila to consumers.

This study is, however, limited only to the students, employees and faculty
members of the Polytechnic University of the Philippines, Sta. Mesa, Manila.

Significance of the Study


The findings of the study will hopefully be beneficial to the following
individual and organization.

Drivers. This study is important because truck drivers can know that they
are not the only ones who are being affected of the truck ban but also the city
people.
Suppliers. The study is helpful for the suppliers for it will provide them
insights with what the consumers think about the truck ban.
Consumers.

The findings of the study can help consuemrs to gain

relevant informations that will help them in choosing the right place and time in
satisfying their needs and wants.
Students. Results of this study will lead to the students improvement of
their studies and academic performance to the best of their potentials.
Parents. Results of this study may provide parents a feedback on the
nature of the truck ban thus gving them information about wise buying.
The Community. This study is important because it can help the
community; particularly the officials and members of the government about the
guidelines of implementing a ban in a city.
Administrators. The results of this study will serve as an eye-opener to
administrators for effective planning, direction or guidance by encouraging
student and its employees to use more applicable, suitable, and effective
methods and strategies which will improve their buying behaviors.

Educational Institutions. Results of this study can provoke educational


institutions to assess the consumers buying behavior while the truck ban is being
implemented in order to develop desirable solutions to the changes in the
behavior of consumers which will contribute to effective buying and allocation.
Economists. The findings of the study can help economists determine the
number of people who are being affected by the truck ban and how the
consumers addressed the problem.
Future Researchers. The results of the study may reveal insights that will
help future researchers realize the goals of their studies. They may use the data
of this study to come up with a bigger and wider spectrum about the subject.

Definition of Terms
The following terms have been conceptually defined according to the
overall orientation of the study.

Behavior. It is the range of actions and mannerisms made by individuals,


organisms,systems, or artificial entities in conjunction with themselves or their
environment, which includes the other systems or organisms around as well as
the (inanimate) physical environment.
Consumers. A person or organization, that uses economic services or
commodities

Consumer behavior. The behavior of consumers while shopping or making


other marketing decisions. Limitations in consumer knowledge or information
processing abilities influence decisions and marketing outcome.
Innovation. It is a new idea, device or process. Innovation can be viewed
as the application of better solutions that meet new requirements, inarticulate
needs, or existing market needs.
Economic

behavior.

The

study

of

psychology

as

it

relates

to

the economic decision making processes of individuals and institutions.


Metro Manila Development Authority. It is an agency of the Republic of
the Philippines created embracing the cities of Manila, Quezon City,
Caloocan,Pasay, Mandaluyong, Makati, Pasig, Marikina, Muntinlupa, Las
Pias,Paraaque, Valenzuela, Malabon, Taguig, Navotas and San Juan and the
municipality of Pateros.
Metropolitan Manila Authority (MMA). A constitutional convention
regarding the consolidation of different localities into a single metropolitan area
was held in 1972. As a result of the convention, a proposal was submitted to the
Office of the President regarding the matter.
Port Congestion. The term 'port congestion' is best explained when broken
into two parts, a 'port' and 'congestion'. Alderton defines port as 'a town with a
harbour and facilities for a ship/shore interface and customs facilities' (Alderton,
2005, p7). Stopford also defines port 'as a geographical area where ships are
brought alongside land to load and discharge cargo-usually a sheltered deep
water area such as a bay or river mouth' (Stopford, 1997, p29). Congestion is

however defined as 'a state of overcrowding in a street or other area, making


movement slow or difficult'.
Price. Pricing is the process of determining what a company will receive in
exchange for its product or service.
Producers. They are integral to the growth of business. A marketing
producer is often hired with the intent of expanding awareness and creating
additional business.
Psychological. Of or relating to the study of the mind
Quantity. A specified or indefinite number or amount.
Rational decision. A method for systematically selecting among possible
choices that is based on reason and facts.
Satisficing. A decision-making strategy or cognitive heuristic that entails
searching through the available alternatives until an acceptability threshold is
met. This is contrasted with optimal decision making, an approach that
specifically attempts to find the best alternative available.
Thoroughfares. It is a road or path forming a route between two places.
Traffic congestion. It is a condition on road networks that occurs as use
increases, and is characterized by slower speeds, longer trip times, and
increased vehicular queueing.
Truck ban. A solution to alleviate the worsening conditions of road traffic
congestion.

Variety of the product. A wide variety is used to draw in customers looking


for an array of goods, but does not mean that the retailer will offer many different
iterations of a specific product.