“Implications overpriced goods to the customers of the selected sari-sari

store within Upper Bicutan Taguig City”

Members:
Dipatuan, Abedzhia S.
Lazaro, Princess Joyce L.
Manalo, Raven
Romeo, Angel M.
Relente, Divina
Sorongon, John Dominic P.
Tojon, Vince

Research Adviser:
Ms. Joanne G. Gutang
CHAPTER I

Introduction

A sari-sari store, or neighborhood sundry store,is a convenience store found in the Philippines.

The word sari-sari is Tagalog meaning "variety" or "sundry". Such stores form an important

economic and social location in a Filipino community and is ubiquitous in neighborhoods and

streets. Sari-sari stores tend to be family-run and privateowned operating within the shopkeeper's

residence. Commodities are displayed in a large screen-covered or metal barred window in front

of the shop. Candies in recycled jars, canned goods and cigarettes are displayed while cooking

oil, salt and sugar are stored at the back of the shop. Prepaid mobile phone credits are

provided. The sari-sari store operates with a small revolving fund, and generally doesn't offer

perishable goods requiring refrigeration. The few that do have refrigerators to store soft drinks,

beers and bottled water.

The store may serve as a secondary or even primary source of income for the shopkeeper. The

owners can buy grocery commodities in bulk, then sell them in-store at a mark-up. Trucks

usually deliver LPG and soft drinks directly to the store. The store requires little investment since

the products are cheap and only a few modifications on one side of a house are needed to convert

it to a sari-sari store. The sari-sari store also allows credit purchases from its "suki" (repeat

customers known to the store owners). They usually keep a record of their customers'

outstanding balances on a school notebook and demand payments on paydays.

Significance of the Study

 Customer – They will benefit this study for them to understand if how the sari-sari store

owner price those goods.

 Future Researchers – Just in case the next researchers of this study will need additional

information, this study will be more helpful for them.

 Parents – Parents are more practical in terms of budgeting, for them to know the proper

pricing of goods in sari-sari store so that this study become more useful for them.

 Students – Students will be informed on how those goods become more expensive then the

price form grocery stores to sari-sari store.

 Vendors – Vendors are the one who sell the goods or the sari-sari store owners, through this

study, they will be well oriented about the proper pricing of goods.
Conceptual Framework

Input Process Output

Statement of the Problem  Survey  Seminar

without objective  Interview (The Proper
pricing goods)

Feedback
Statement of the Problem

The researchers aim to know the implications if the overprized goods to the customer of

the selected sari-sari store within Upper Bicutan Taguig City.

The Study specially determine the following:

Research Questions:

1.) What is demographic profile of the respondents as to:

1.1) Age

1.2) Gender

2.) What are the strategies of the sari-sari stores owner in terms of pricing goods?

2.1.) What are the common goods that affected by overprice?

2.2.) Why are the strategies can be failed?

2.3.) What is the common cause of overpricing?

3.) What is the reason why the consumers still choose to buy the goods in sari-sari stores?

3.1.) How convenient buying goods in sari-sari stores?

3.2.) How profitable to the sari-sari store owner the regular price is?

3.3.) What are the satisfactions of consumers by buying goods from sari-sari store?
Definition of terms

To gain more understanding, the following key words, terms, phrases, and acronyms used in the

conceptual framework of this research where hereby operationally defined to:

Customer Satisfaction. This refer to the feeling of the customers where they are feeling happy

or pleased because of something that satisfy what they need.

Goods. A chattel which is, generally, subject to sale. Goods means all things that are movable at

the time of identification to a contract for sale.

Negotiable. This refer to be able to passed from the one person to another in return for

something of equal value.

Overpriced. This refer to giving a price what is too high to something.

Profitable. This refers to producing goods or helpful results or effects.

Background of the Study

Food prices are a primary determinant of consumption patterns, and high food prices may have

important negative effects on nutritional status and health, especially among poor people. The

global food price crisis of 2007-08 focused international attention on the effect of changes in

food price on nutrition and health. Estimates from the United Nations Food and Agriculture

Organization suggest that in 2008 an additional 40 million people were pushed into hunger by

the global rise in cereal prices, and evidence is accumulating that dietary diversity and quality

have been negatively affected by food price rises, particularly among the poorest. In contrast, the

governments of wealthy countries are increasingly adopting fiscal measures that change the

relative price of foods to promote healthy diets. Simulation studies have suggested that imposing

taxes on foods such as sugar sweetened beveragesor foods high in saturated fats and salt could

result in reductions in obesity and cardiovascular mortality, although because of a lack of

relevant data the actual impact of such taxes on different population subsections is largely

unknown.
Scope and Limitation

The research will be conducted in Barangay Upper Bicutan Taguig City. The study will not focus

on other types of stores such as online stores, malls, grocery stores and any other stores. The

study will also measure how many of the selected sari-sari stores are not following the given

proper pricing of goods.

The study will involve dissemination of survey from the selected sari-sari stores which will help

the researchers in gathering information.

Theoretical Framework

This theory discusses the class of goods that has come to be known as “public goods” or

“collective goods.” A distinctive characteristic of such goods is that they are not used up in the

process of being consumed or utilized as an input in a production process. To be considered

public, a good must also be of interest to more than one consumer or firm. Otherwise, the fact

that the consumption possibilities of others are undiminished is irrelevant. The chapter presents

the derivation and interpretation of the efficiency conditions for pure public goods. The positive

issues of the way the private market arrangements provide for public goods are discussed in the

chapter. The chapter describes alternative mechanisms for making public goods decisions within

the public sector. Public goods are of particular relevance to public policy, because they tend to

be inefficiently provided by private arrangements, such as the market mechanism. The category

of public “goods” is considered as opposed to public “bad.” Because they are not used up in the

act of consumption of production, the marginal cost of extending service to additional users is

zero.

Consumer theory is the study of how people decide to spend their money, given their preferences

and budget constraints. A branch of microeconomics, consumer theory shows how individuals

make choices, given restrains, such as their income and the prices of goods and services.

Through consumer theory, we are better able to understand how individuals’ tastes and incomes
influence the demand curve. These choices are among the most critical factors, shaping the

overall economy.