income and consumption on rice of filipino families

8/13/2019 Income and Consumption on Rice of Filipino Families

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De La Salle UniversityManila

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


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Table of Contents

CHAPTER 1: INTRODUCTION4

BACKGROUND OF THE STUDY 4

RESEARCH PROBLEM 6

RESEARCH OBJECTIVES 6

SIGNIFICANCE OF THE STUDY 7

SCOPE AND LIMITATIONS 7

CHAPTER 2:REVIEW OF RELATED LITERATURE 9

CHAPTER3: THEORETICAL FRAMEWORK 13

THEORETICAL FRAMEWORK 13

CONCEPTUAL FRAMEWORK 18

OPERATIONAL FRAMEWORK 22

CHAPTER 4: METHODOLOGY 23

CHAPTER 5: DATA ANALYSIS 26

CHAPTER 6: CONCLUSION AND RECOMMENDATION 30

APPENDICES 31

REFERENCES 31

CHARTS AND FIGURES 35

SAMPLE QUESTIONNAIRE 38


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I. Introduction

A. Rationale and Background of the StudyOver 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),


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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?


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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 detailed-

enough 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 theirincome

To determine if there are differences as to where Filipino families earning

different amount of income buy their supply of rice


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To determine if there is a relationship between how much rice a householdconsumes 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.


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II. Review of Related LiteratureIntroduction

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


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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 wou ld

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 increases2. The increased income will be divided in some proportion between

consumption expenditure and saving

3. Increase in income always leads to increase in both consumptionand 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 15thor 30thof 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 beoffered 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 fromthose 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 institutionsoffering 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. Displayand 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 self-

administered 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 AnalysisThis 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 Category Number %

Gender

Male 110 41%

Female 159 59%

Relationship

Status

Single 161 60%

Married 65 24%

Living with a Partner 30 11%

Recently


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separated/divorced 13 5%

Have a partner but not

living together

Education

Elementary 5 2%

High school 40 15%

College 200 74%

Masteral 19 7%

Doctorate 5 2%

Monthly Income

Less than P10,000 62 24%

P10,001-30,000 87 26%

P30,001-50,000 50 19%

P50,001-70,000 26 10%

P70,001-100,000 15 6%

P100,000 above 29 11%

Number of

Household

Members

1-3 101 38%

4-6 138 50%

7-9 25 10%

10 or more 5 2%

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

Income

Frequency of

Purchase


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Income 1

Frequency of

Purchase 0.48732695 1

Income Size of Packaging

Income 1

Size of Packaging -0.551903094 1

Income Location of Purchase

Income 1

Location of Purchase 0.199209577 1

Income Type of Rice

Income 1

Type of Rice 0.148296703 1

Income

Frequency of

Consumption

Income 1

Frequency of

Consumption 0.339808259 1


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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 RecommendationConsidering 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. AppendicesReferences:

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2012 from http://www.ilocostimes.net/index.php/features-page/item/180-a-

look-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-goes-

up-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), 118125.

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 Science8 (12), 1219.


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Economic Glossary. (2008). Economic Definition of Income-Expenditure Model.

Retrieved December 2, 2012 from http://glossary.econguru.com/economic-

term/income-expenditure+model.

Filipinos' high rice consumption fueled by the poor .(2012, September 30). Retrieved

December 2, 2012 fromhttp://www.rappler.com/business/13323-pinoys-

high-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=NjTfmOMUfKuOHE5GHO2WrxTa-

IY&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&purchase-

type=article&accessType=none&sid=21101509432737&showMyJstorPss=fa

lse&seq=3&showAccess=false.
http://glossary.econguru.com/economic-term/income-expenditure+modelhttp://glossary.econguru.com/economic-term/income-expenditure+modelhttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.jstor.org/discover/10.2307/1248014?uid=2129&uid=2134&uid=4576290787&uid=2&uid=4576290777&uid=70&uid=3&uid=60&purchase-type=article&accessType=none&sid=21101509432737&showMyJstorPss=false&seq=3&showAccess=falsehttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://glossary.econguru.com/economic-term/income-expenditure+modelhttp://glossary.econguru.com/economic-term/income-expenditure+model


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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

fromhttp://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/poor-

filipinos-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/13323-

pinoys-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
http://academic.reed.edu/economics/parker/s11/314/book/Ch16.pdfhttp://www.gmanetwork.com/news/story/88473/news/specialreports/poor-filipinos-are-addicted-to-ricehttp://www.gmanetwork.com/news/story/88473/news/specialreports/poor-filipinos-are-addicted-to-ricehttp://www.slideshare.net/arpanramtek/consumption-functionhttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://www.bas.gov.ph/?ids=techpapers&id=1&srt=1&s=10&p=1&view=Abouthttp://www.bas.gov.ph/?ids=techpapers&id=1&srt=1&s=10&p=1&view=Abouthttp://www.bas.gov.ph/?ids=techpapers&id=1&srt=1&s=10&p=1&view=Abouthttp://www.bas.gov.ph/?ids=techpapers&id=1&srt=1&s=10&p=1&view=Abouthttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://www.rappler.com/business/13323-pinoys-high-rice-consumption-fueled-by-the-poorhttp://www.slideshare.net/arpanramtek/consumption-functionhttp://www.gmanetwork.com/news/story/88473/news/specialreports/poor-filipinos-are-addicted-to-ricehttp://www.gmanetwork.com/news/story/88473/news/specialreports/poor-filipinos-are-addicted-to-ricehttp://academic.reed.edu/economics/parker/s11/314/book/Ch16.pdf


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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 itshould. Retrieved December 2, 2012

fromhttp://www.malaya.com.ph/index.php/special-

features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-

going-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
http://www.malaya.com.ph/index.php/special-features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-going-down-as-it-shouldhttp://www.malaya.com.ph/index.php/special-features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-going-down-as-it-shouldhttp://www.malaya.com.ph/index.php/special-features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-going-down-as-it-shouldhttp://www.malaya.com.ph/index.php/special-features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-going-down-as-it-shouldhttp://www.malaya.com.ph/index.php/special-features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-going-down-as-it-shouldhttp://www.malaya.com.ph/index.php/special-features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-going-down-as-it-shouldhttp://www.malaya.com.ph/index.php/special-features/agriculture/15118-the-rice-eaters-or-why-rice-consumption-is-not-going-down-as-it-should


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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

income and consumption on rice of filipino families

Documents