Pattern of market utilization of the urban poor: a case study of a metropolitan manila community
Date
1986-07
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Abstract
The thrust of this research is to study the pattern of market utilization of the low income group in Metro Manila. Its objectives are fourfold: a) to describe the different combinations of markets used by this group; b) to find out which types of markets are highly patronized as major sources of food; c) to determine econometrically the attributes that make markets highly attractive and the socio-economic factors that significantly affect the choices of major markets; and d) to come up with conclusions and recommendations that can serve as guidelines for policy makers.
Answers to several inquiries regarding the pattern of market utilization of the low income group are necessary because they provide guidelines in formulating policies. Through effective implementation of policies, some developmental goals such as improving the health and nutrition of the poor, income distribution, and adequacy of food supply will be achieved. For instance, if adequacy of food supply is to be effected by improving or putting up food outlets, then answers to these questions are important so that the appropriate types of markets are provided for this group.
There can be no better way to gain a thorough understanding on the buying behaviour of the low income group than by studying actual consumer behaviour through household surveys. Hence, a survey of 215 households in Caloocan area was conducted in 1983. A quantitative approach is also used to determine the significant factors affecting the choice of major markets. Three specifications for the binary qualitative choice models---the logit and the probit are estimated.
Majority of the households surveyed are poor. Based on the computations of Food and Nutrition Research Institute, 82.33 percent and 85.58 percent of the households fall below the food threshold of the Philippines and Metro Manila families, respectively. Sixty-seven percent of their monthly income is spent on food, and among the different food groups, fresh food items account for the highest share of fifty percent.
An overwhelming majority of the households choose the public market as the main source of food purchases since this outlet is the major supplier of fresh food products. Another major source of food but only secondary to the public market is the talipapa, which also supplies mostly fresh foods. The Kadiwa Center, on the other hand, is not highly patronized as a main source of fresh food items but it is the most popular source of grocery items. Estimation results strongly suggest that household monthly food budget, range of goods offered in the market, proximity of the market to the households, and consumers' price perception significantly affect consumers' choice of major markets.
The main recommendation of this paper is that policy makers must give priority to the building or improvement of public markets after which establishment or improvement of talipapas should be given the next priority.