“Pricing Strategies among MSME Owners in Guiuan After COVID-19: Balancing

Between Suggested Retail Price and Strategic Pricing for Merchandise Products”

Research Rationale

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in shaping the

Philippine economy. Their impact extends to job creation, mitigating poverty by

accommodating the country's expanding workforce. These enterprises contribute

significantly to economic development in remote and rural regions and function as essential

collaborators for larger enterprises, offering crucial support services. Moreover, MSMEs

serve as incubators for emerging entrepreneurs, fostering new businesses that may evolve

into major corporations. Despite their pivotal role in fostering social and economic

progress, MSMEs grapple with constraining challenges, particularly in the financial realm,

hindering their optimal engagement with prevailing opportunities.

The advent of the novel coronavirus, COVID-19, created substantial changes on a

global scale, profoundly affecting the lives and business activities of people across the

Philippines and beyond. In response to the pandemic, the government implemented

stringent lockdown measures from mid-March to the end of May 2020 in the national

capital region and high-risk provinces, resulting in substantial economic setbacks. Even as

the Philippine economy transitions into the recovery stage six months post-lockdown,

micro, small, and medium-sized enterprises (MSMEs) struggle with a notable decline in

both demand and revenue. The aftermath of the pandemic has manifested in escalating

costs, diminished sales, and labor-related challenges, including issues surrounding

remuneration and workforce downsizing. While numerous reports and articles document

the widespread effects of COVID-19 on MSMEs, a discernible knowledge gap persists,

particularly concerning the pricing challenges faced by MSME owners, specifically in the

post-pandemic context of Guiuan, Eastern Samar.

This research aspires to acquire pertinent insights into the post-pandemic retail

challenges confronted by MSME owners in Guiuan, particularly those engaged in

merchandise and sari-sari store operations. In the realm of regulated retail pricing, where

prescribed prices aim to ensure equitable benefits for customers, sellers, and the

government, the study explores into the nuanced decision-making processes of MSME

owners in pricing their goods. Amidst conditions and factors such as heightened inflation

rates resulting from past economic adversities, notably the COVID-19 pandemic, the

research centers on a thorough analysis of the interplay between suggested retail pricing

dictated by the Department of Trade and Industry (DTI) and the strategic pricing decisions

grounded in the prerogatives of MSME owners. To gather this information, a

comprehensive research approach will be employed, utilizing both qualitative and

quantitative methodologies, including survey questionnaires and interviews. The survey

aims to outline the discernible price differentials between suggested retail prices and those

set by MSME owners, while interviews will provide nuanced insights into the rationale

steering their pricing strategies.

The scarcity of comprehensive information on the pricing methodologies of

MSMEs, particularly in provinces like Guiuan Eastern Samar, highlights the significance

of this research. A detailed exploration into this field promises to enrich the collective

understanding of MSME owners and stakeholders, including accountants and

governmental entities. The study contends that while the stringent pricing regulations

imposed by the DTI may confer benefits upon consumers and the government, they

concurrently pose potential adverse effects on MSME owners, limiting their flexibility in

strategic pricing. As MSMEs play an integral role in the Philippine economy, this research

serves as an enlightenment, emphasizing that stringent governmental policies may

involuntarily impede the growth and success of these enterprises, thereby triggering

economic declines. The vision of this research is to influence governmental policies,

advocating for more MSME-friendly approaches, and fostering initiatives that boost the

MSME sector across both urban and rural landscapes.

Members:

Bagasin, Melvin Zairus B. Bagro, Francis Mathew B.

Dalumpines, Czarina S. Edang, Joshua C.

Gado, Richelle Joy P. Naputo, Carlos Fernando J.

BSA-3 ACCRESM-248