FINAL GRP 7

PATEROS CATHOLIC SCHOOL
Senior High School Department

Pateros, Metro Manila
CHAPTER 1:
THE PROBLEM AND ITS BACKGROUND
Background of the Study:
This study talks about the current situation in our country which is the Price Hike.
According to Price hike. BusinessDictionary.com. WebFinance, Inc. January 10, 2019,
Price Hike is a percent of increase in the cost of goods or services. A 10% price hike
means the cost of that particular item has increased by 10%. Also called price increase.
Price Hike affects a lot of things here in our country, for example is the oil and food. The
prices for the food slowly increases because of the Train Law. The Price Hike affects the
citizens of the Philippines, mainly here in the city. The Small - scale Food Business are
the small food business like the “Tapsihan”, “Gotohan”, and “Carinderia”. It's easy for
most people to feel the effects of cost-of-living increases in their daily life. But rising
prices hit the lower and middle classes especially hard. Higher food, gasoline and utility
costs mean less money remains once these necessities are paid for, leaving little for
savings or discretionary spending. Over the past two decades, food prices have risen 2.6
percent a year on average. But recent factors have slowed food price inflation. The
change is only temporary, though. Once those downward pressures abate, food prices will
resume their usual regular upward trend. The researchers want to know how the Small -
scale Food Business get affected by the Price Hike. The researchers want to find out the
Small - scale Businesses sales when the Price Hike slowly occurs, if it decreases or
remained the same.
The Effects of Price Hike on the Sustainability of a Small – Scale Food Businesses
Conda, M.E., et al. (2019) 1
Significance of the Study:
This study will provide answers as to how the Small – scale Food Businesses get
affected by the Price Hike. This study is important because it strives to know the effects
of Price Hike in a Small – scale Food Businesses. This study is beneficial to a business
owner because it can give them an overview of the possible effects of Price Hike to their
enterprise, in line with this the owner of the business can build a robust strategies to
operate their food businesses. One of the advantage of price hike in business is that the
price system encourage competition, when companies have to compete with other food
business the enterprise would try to produce and sell products at optimum prices to
potential and current customers.
This study can also benefit a consumers because in this study the consumer can see
the reasons why a specific business can get affected. Also, this study can show the
consumers the possible effect of the Price Hike to them as a buyer, hense, the customers
could be aware on what’s happening in the economy of the Philippines. As follows, the
customers can benefit more because more variety and better quality products at optimal
prices.
This study is beneficial to future researchers and entrepreneurs in order for them to
seek further understanding and knowledge of how Price Hike can affect the Small – scale
businesses, thus, the future researcher can improve the research of today’s researcher by
creating new argument that can match to the researcher’s topic. And for the
entrepreneurs, they can assemble a good game plan for a brilliant marketing move.
Conda, M.E., et al. (2019) 2
Review of Related Literature:
Intrduction to TRAIN Law
Price Hike is a current issue here in the Philippines. Price Hike is caused by the
TRAIN Law, according to a blog post in Bloomerang BNA by Dennis Dimagiba and
Kristine Anne Mercado-Tamayo (2018), “The first package of the Tax Reform for
Acceleration and Inclusion (“TRAIN”), or Republic Act No. 10963, was enacted into law
in December 2017 and became effective on January 1, 2018. The TRAIN introduced
amendments to personal income taxation, transfer taxes, value-added tax, excise tax,
taxation of sale of shares of stocks, and documentary stamp tax, among others. The
Philippine Bureau of Internal Revenue has issued implementing rules and regulations and
advisories to provide details on and clarify the implementation of the changes introduced
under the TRAIN. The second package of the TRAIN ("TRAIN 2") has also been
submitted to Congress. TRAIN 2 seeks the reduction of the corporate income tax.
Relative to the ASEAN region, the Philippines has the highest corporate income tax at 30
percent.”. Stated by Dimagiba and Mercado-Tamayo, TRAIN Law has two categories,
the first one is introducing new taxes that is effective last 2018. The second package of
TRAIN Law is expected to take effect this 2019. The second package focuses in the
reduction of the corporate income tax rate of 30 percent.
Price Hike Trend in the Philippines
There are a plenty of changes when the TRAIN Law has been implemented but the
oil and food products are mainly the problem according to Regine Cabato of CNN
Philippines (2018), “A pulse asia survey showed that most of the filipino is the one who
is the top strongly affected by the price hikes in basic commodities such as food and
Conda, M.E., et al. (2019) 3
beverage since January 2018.” TRAIN Law affects the basic commodities of the Filipinio
but there is a specific product that became a Trend here in the Philippines. It is the
inflation or increase prices of rices. According to Louise Maureen Simeon of PHILSTAR
Global (2018), “Despite the continuous arrival of rice imports, prices of the Filipino’s
main staple remain in an upward streak for eight months now, the Philippine Statistics
Authority (PSA) reported. In its regular update on palay, rice and corn prices, PSA said
the average wholesale price of well-milled rice rose 10 percent to P43.18 per kilogram at
the start of this month versus a year ago while week-on-week prices inched up by a
percentage. Its average retail price also increased to P45.71 per kg, up by nine percent
year-on-year. The wholesale price of regular-milled rice was P40.08 per kg, 13 percent
higher than the previous year. Its average retail price also increased 11 percent to P42.26
per kg. For palay, the average price went up to P22.11 per kg from P19.59 per kg last
year. Week-on-week, prices were also up by almost two percent.” It is stated in the article
that the prices of the palay and rice is increasing. In relation to our study, the increase
prices of the rices can affect the cost of the product on a small – scale food businesses.
Factors influencing Price Hike in the Philippines
There are factors influencing Price Hike in the Philippines, based on PhilStar
Global, written by Tony Gatigbak (2018), “Admittedly, oil prices are high and there may
be other external factors involved in our current runaway inflation, but the real truth
remains that the current econimic policies are not working and if the government does not
admit this and address it, things will only continue to get worse. That is one of the biggest
hurdles we are going to face when it comes to trying to turn things around. The
government does not want to look within when it comes to rising costs but instead
chooses to keep blaming outside factors.” One factors that can influence the price hike in
the Philippines is the current economic policies, there might be policies that doesn’t work
but the government don’t want to notice it or take action about it. If the government does
not take action about this situation, then this can start a downfall in our economy. If
Conda, M.E., et al. (2019) 4
things continue on like this, then we just keep expecting price hike to increase. This can
affect the prices of the raw materials being used in a food business.
Another factor influencing Price hike in the Philippines is the cost push inflation,
based on Philippines News Agency, written by Joann Villanueva (2018), “Cost-push
factors propelled the Philippines’ inflation rate in August to 6.4 percent, nearly as high as
in March 2009, which according to Espenilla was simply “beyond acceptable target
range.” Last month’s inflation was even higher than July’s 5.7 percent and year-ago’s 2.6
percent and brought the year-to-date average to 4.8 percent, above the government’s 2 to
4 percent target until 2020. Core inflation, which excludes volatile food and fuel items,
also registered an uptick to 4.8 percent from month-ago’s 4.5 percent and year-ago’s 2.2
percent. Year-to-date average is 3.7 percent.” Based on The Economic Times, Cost push
inflation is, “Cost push inflation is inflation caused by an increase in prices of inputs like
labour, raw material, etc. The increased price of the factors of production leads to a
decreased supply of these goods. While the demand remains constant, the prices of
commodities increase causing a rise in the overall price level. This is in essence cost push
inflation.” It is said in the article that cost push is one of the factors of price hike. Cost
push is when the production increases and then the raw material will decrease. When the
price of the production increases, the raw materials or supply of goods will decrease so
the main price or the cost of the product will not change or will remain the same.
Effects of Price Hike on Philippine Economy
Price Hike is a big deal and it gives the Philippine economy a huge impact. One
of the effect of Price Hike on Philippine economy is poverty. Based on PhilStar Global,
written by Jess Diaz (2018), “Higher inflation, or the increase in the prices of goods and
services, could have made two million more Filipinos poor, lawmakers said yesterday.
“Last month’s inflation rate of 5.7 percent, the highest in more than five years, might
have increased our poverty level from 23 percent of the population to 25 percent, or
Conda, M.E., et al. (2019) 5
nearly three out of 10 Filipinos,” said Rep. Michael Romero of party-list group 1-
Pacman, an economist. He said the direct effects of inflation are “hunger, unemployment,
higher interest and lesser savings for the middle class.” Poverty is one of the effect of
Price hike on the Philippine economy. It is because of the increase in the prices of the
basic goods and foods that not all citizen can afford the necessities. It is also said that
unemployment is another direct effect of price hike. When the food supply and raw
material is increasing most likely the food businesses will have to reduce the number of
employees to lessen the release of money for the payment of the employee.
Adaption strategies for small – scale business
Market Penetration
Having a small scale food business, you need a different business strategy to
overcome multiple hardships in your business. Cleverism (2017), a website, stated
different strategies that small – scale businesses must use or adopt, “Market penetration is
probably the first – almost default – option of small businesses hoping to grow and
expand their operations. This works best in a scenario where there are no new products,
and there are no new markets to enter. Left with no choice, the small business will then
look at what it currently has, right where it currently is. That means the focus will be on
the current products or services, in the current market.”. Market penetration is about
marketing the current product or services in the same market to increase the market
shares of your business. Some ideas that the business could use to have a successful
market penetration by reducing the selling prices of the products of the services,
increasing the promotion of the products or services to attract more customers, or
improving the products or services with its existing use.
Conda, M.E., et al. (2019) 6
Market Development
The Second is “Market development, also referred to as “market expansion”, is

another popular growth strategy that is applicable to small businesses, especially those
that are having problems finding solid footing in the current market they are in. Faced
with too many and too stiff competition, small businesses will be hard-pressed to look
elsewhere for “greener pastures””. In this situation, there will be no presence of product
or services but the market itself. Market development is a strategy that should be used to
expand your shares, sales’, and profits. A typical example of market development is when
a business is building or expanding through a franchise. For example, The Body Shop,
which is originally from UK, and also Subway, that is slowly travelling the world to let
their product be recognized.
The use of alternative channels
The Third is the “The use of alternative channels, the internet has opened up other
channels for businesses to reach their customers and sell their products. In fact, this has
been greatly beneficial for small businesses and entrepreneurs, since they were provided
a platform where they can have a chance of competing against more established brands.”.
This strategy is applicable in today’s generation wherein; people is fond of using the
internet or websites. For example, when the consumers start to crave a specific food, they
could just order online like Food Panda, or when they want to shop some clothes, the
customers will just visit the website Shopee or Lazada. The use of alternative channels is
to use different forms of communication where the customers can easily get a hold of
your business, like selling online, programs, or on an application.
Conda, M.E., et al. (2019) 7
Product Development
The Fourth strategy is “Product development or product expansion is a strategy

adopted in industries with fast-paced technological developments. The electronics or
mobile industry is one. Manufacturers of mobile phones are prolific in churning out new
and updated models of their products to the market in order to keep up with the changes
and improvements in technology. Small businesses also see this strategy as a viable one
in most of their circumstances.”. The fourth strategy shows that small scale business will
have to develop new product to get a larger share in the existing market. To make the
small scale business achieve this strategy, the business has to expand their product or
service by developing and improving, by adding new features to the existing product, and
by updating the product to keep improving and developing the existing product.
Diversification
The Fifth strategy is “Small businesses also use diversification, where they will
sell new products to new markets. As a matter of fact, this poses the highest risk for
businesses, big or small. This risk arises from the fact that diversification will require
substantial investment of resources: time, money, manpower and other assets.”. This
strategy is a known for being risky. It is said that even the big business will find this
strategy at high risk. It is like starting or building a new business, the business will be
starting from the very start or starting from a scratch. The business has its own product
but will have to sell at a different market. The business will have to start a new research
to formulate a solid market plan.
Conda, M.E., et al. (2019) 8
Market Segmentation
The Sixth strategy is the “In market segmentation, the small business would have
to undergo the process of dividing the market into segments, with each segment
characterized by distinct groups of customers with their own needs and preferences. Once
the pie has been divvied up, it is time to identify which slice of the pie seems to be the
most receptive to the strategies of the business. Segmentation is performed using the
usual bases that were utilized by the business when drawing up its marketing plan:
demography, geography, market and customer behavior, and even the psychographic
profiles of the market.”. Market segmentation is another business growth strategy that
any small businesses can adapt. In making the market segmentation possible the business
will have to conduct a solid plan to know how the business will divide the market. The
businesses usually conduct a market research through studying market programs of the
competitors, data from basic research publications, and communicating with key industry
players, such as buyers, distributors, and analysts. These are a few sources that a small
business use to gather data for the market segmentation. After gathering they will see
how they will divide and see what will be lacking and fill up the gaps of the business.
Leveraging Partnerships
Lastly, The Seventh strategy is the “In the more modest setting where the small
business exists, leveraging partnerships is also a viable growth strategy. If you are in the
manufacturing business, consider entering into a partnership with the supplier of the raw
materials you are using. If you have an excellent technology but you do not have a
warehouse, look for someone with warehousing capabilities to share but are also in need
of the benefits that your technology can provide.”. The last strategy is about partnership,
in finding a partnership, a business must look for a partner that will benefit its business
Conda, M.E., et al. (2019) 9
but also your business can benefit your partner. If you are a food business, the business
should find a partner that sells raw materials that the product uses the most.
Research Problem and Questions:
The researchers aim to know how the Price Hike affects the Sustainability of a
Small – scale Food Businesses.
The researchers want to find out the effects of food Price Hike in their business.
The researchers want to find answers for the following questions:
1. What are the strategies of the Small – scale Food Business in maintaining their
business in line?
2. How does Price Hike influence the average sales of Small – scale food
establishments?
3. What are the common factors that Small – scale Food Establishments consider
when having price increase?
Conceptual Framework:
Price Hike
Conda, M.E., et al. (2019) 10
Small – scale Food

Businesses
Products Services Resources
Figure 1.1
The Factors that Price Hike Affect in a Small – Scale Food Businesses
The framework states how Price Hike can affect the Small – scale Food
Businesses. Also, it states in the framework how Price Hike can affect the products,
services, and resources of the Small – scale Food Businesses. It shows that Price Hike is
the main variable. The Small – scale Food Businesses is the variable that will be affected
by the Price Hike. Under the Small – scale Food Businesses is the products, services, and
resources, this are the factors that will be mainly affected by the Price Hike.
Assumption:
The researchers forecast the possible results of the study, most of our interviewees
or owners are affected by the Price Hike. The researchers predict that the owners of the
Small – scale Businesses have struggled in dealing with the Price Hike. The researchers
Conda, M.E., et al. (2019) 11
assume that Price Hike influences the sales of the Food Businesses, it can be daily,
weekly or yearly. The researchers assume that the owners’ common factors in considering
when having a Price Hike is the price of their product or the quantity that the owners will
be serving to the customers.
Scope and Limitations:
The researcher’s main goal is to conduct this research until the researchers find
the answer to the questions and fill in information about the study. In order to gather
information, the researchers have to conduct an interview to the respondents of this
research, which is the Small – scale Food Business in Pateros or Makati. The researchers
will provide and adjust their time to fit with the schedule of the participants.
This study primarily focuses on the effects of Price Hike on Small – scale Food
Establishments. The researchers want to identify the strategies in coping up to maintain
the business in line the and factors to consider of the Small – scale Food Businesses when
Price Hike occurs. This research also wants to discover how Price Hike can influence the
sales of the Small – scale Food Businesses. This study is restricted in discussing the
advantages and disadvantages of Price Hike on Small – scale Food Businesses but still
include a brief information about the advantages and disadvantages.
Definition of Terms:
Optimal Price - is a volume refer to the selling price and volume at which a
company maximizes its profits.
Conda, M.E., et al. (2019) 12
Gotohan – is a place or store which sells “goto”, a dish wherein a sticky rice is
boiled to a chicken or pork stock. It also has an ox tail, meat, or egg as its other
ingredients.
Tapsihan – it is a store or place which sells tapa, egg, and fried rice. It is one of
the known breakfast here in the Philippines.
Carinderia – it is a small stall or store which sells different Filipino dishes at a

low or budget-friendly price.
Small – Scale Businesses – a business that accepts a small number of workers

and does not have a high volume of sales.
Price Hike – it is the increase of percent in the cost of the basic commodities, like
food and beverages.
Ethical Issues/ Considerations:
Not all research paper is perfect. No matter how hard the researcher would try
there will always be an unexpected encounter in different aspects. The researchers
thought about the possible issues that might be encountered. There could be possible
issues between the researchers and the respondents. Due to the conflict schedule of the
respondents and the researchers, the researchers may have a hard time collecting
information. The researchers might only take few information due to limited time given
by the respondent or the availability of the respondents. Some of our respondents are not
familiar or have no idea about our research so they may encounter difficulty in
responding to our questions. The response of the interviewees might not be answered
properly because they are not showing any interest in the given questions. The
interviewees might not answer some questions or give out enough information because
there might be confidential questions asked by the researchers that may cause lack of
information in the study. There is a possiblity of time difference between the researcher
and the respondents because the schedules of the two parties might not meet in the
Conda, M.E., et al. (2019) 13
middle. The researchers are undergoing their on-the-job training and also converting their
focus from OJT to academics while the respondents may have a busy schedules due to
running their business.
Although there are a handful of concerns the researchers want to resolve the
problems and prevent them before it happens. The researchers will try to find
knowledgable business owners who are willing to be interviewed and give enough
answers that would satisfy the curiosity of the researchers. The researchers have to try to
manage their time wisely. Time management is the key of the researchers in fulfilling the
research paper, the researchers should try to balance their on-the-job training, academics,
and the research paper.
CHAPTER 2:
METHODOLOGY
Conda, M.E., et al. (2019) 14
Research Design:
The researchers made use of the Qualitative research for this study. This study
helped the researchers to obtain complete and detailed answers, reliable information, and
produce valid proof or documentation of the interview. The researchers made use of the
Interview as the method in the Qualitative research. The researchers produced a set of
questions for the interviewees to answer.
The researchers picked the Qualitative research as it would give the researchers a
wide range of questions to ask since the study is looking for the effects of Price – Hike on
Small – scale Food Businesses. Qualitative research is more intimate in terms of
gathering data because it uses face-to-face interview. The information gathered can be
reliable and valid because the participants of the study is experiencing or have
experienced price hike in their business.
Sampling and Participants:
The researchers conducted a set of questions that would help the researchers to
interview the owners of the store. The researchers would conduct an interview on a
Small-scale Food Business like "Gotohan”, “Tapsihan", or “Carinderia”. The
respondents would be the owners of the store so that the respondents can easily answer
the questions clearly. The researchers chose the owner of the food business for the reason
that the selected respondents have more knowledge regarding the effects of price hike,
benefits, strengths, weaknesses, and all about their food business. The researchers also
want to know the opinions of the owners of the store, to have an idea on the effects of
price hike on small-scale food businesses. The respondents are located either at Pateros or
Makati. Starting with Mrs. Ruby Lariosa, she is an owner of a “lugawan” store for 5
years. Mrs. Thelma Ratan is an owner for 2 years of Cacao’s Silogan, a tapsilogan
business. Mr. Renan Roque, the owner of the “gotohan” at Pateros called Goto Panalo.
Goto Panalo is in business for a year. Lastly, Mrs. Katrina Jessel Soller is the owner of
Conda, M.E., et al. (2019) 15
MRK Mama Raquel’s Kitchenette, which is a “carinderia”. The business has been
running since 2016.
Instruments:
The researcher would conduct an interview to gather data from the respondents.
The researcher produced questions that are relevant to the researchers and provide
answers to the topic, The Effect of Price Hike on the sustainability of a Small – scale
Food Business. The researcher could interview the owner or the manager of the business
that the researchers choose because they are the persons who know the structure or nature
of their business. The researchers also used interview as an instrument because the
researchers want to observe the sales of the start – up business when price increase
occurs.
The researcher conducted the following questions:
1. How can price hike influence your budget in terms of the raw materials?
The researchers produced this question because raw materials is one of the
necessities of building a business. If the prices are increasing, raw materials from
the local market will increase their pricing and it will affect the smaller
businesses.
2. How does price hike influence the average sales of your business?
The researchers produced this question because the researchers want to know the
impact of price increase to the small scale food businesses. The researchers want
to know if the average sales of the business is gaining its profit or the business is
dropping due to price hike.
3. What are the common factors that you consider when having a price increase?
Conda, M.E., et al. (2019) 16
The common factors that the owner of the small scale food businesses when
having a price increase, the researchers have seven factors; that they have
gathered and it is all about the cause of price hike in the Philippines. Therefore;
the researchers want to know it from their perspective if what are the reasons why
there is a price hike in the Philippines.
4. What are your strategies in maintaining your business despite the price hike?
The researchers produced this question because the researchers want to know how
can a small scale food businesses cope up with maintaining the business despite
of the effects of price increase.
5. What advice can you give to any start up business?
The researchers produced this question because the researchers want to know
what advices an owner or manager can give to those people who are starting their
small businesses.
Data Gathering Procedure:
The researchers would be using the face-to-face interview method with the
owners of the Small – scale Food Businesses. Before conducting the interview, the
researchers would be composing and requesting an approval letter that should be signed
by the members of the group, the subject teacher, and the principal. After the approval
letter being signed by the subject teacher and the principal, the researchers could proceed
to the next process. The researchers would hand out the letters to the Small – scale Food
Businesses owners or managers to ask their permission about the interview. The
researchers would be conducting the survey around Makati or Pateros. After confirming
the response of the owners or managers toward the letter, if the owner agreed to the
interview, the researchers would settle a specific date and time to conduct the interview.
Conda, M.E., et al. (2019) 17
Data Analysis:
The researchers gathered all the data that they have gathered, they also have a
transcript of their interview in case the researchers would miss out some important words
that the participants have said. After all this data, the researchers would interpret and
connect it based on the study of the researchers. The researchers linked all the
information that the researchers have gathered systematically. The gathered data become
beneficial because the result nearly show the different problems encountered by the
owner of the Small – scale Food Business and it helped because the answer of the
participants are one of the things needed to complete this chapter. After all the problems
that have been answered, the researcher’s is fully informed about how does Price Hike
affect the Sustainability of a Small – scale Food Businesses and how it could affect the
researchers, participants and the audience or readers because the researchers, participants,
and the readers also consumes on a Small – scale Food Businesses. After all the sacrifices
and hardships of the group, the researchers would encounter the last step of the research
which is the final defense. The researchers must overcome the last step for the researchers
to attend and participate the graduation.
CHAPTER 3:
RESULTS ANALYSIS AND DISCUSSION
Conda, M.E., et al. (2019) 18
Results Discussion:
In accordance on how price hike influence the budget in terms of raw

materials.
During the first question, the owner of Ruby’s Lugawan, which is Ruby Lariosa
was asked about how price hike influence the budget in terms of their raw materials. Mrs.
Lariosa stated that “If there is a price hike on oil or petrol, there will be increase on cost
of transportation, it means all goods transported by truck or train will also have to shift
or increase the price of raw materials.” As what Cleverism (2017) has mentioned in its
last strategy proposes that in finding a partnership, an owner must look for a partner that
will benefit its own business but also the owned business can benefit the partner’s
business. If handling a food business, the entrepreneur should find a partner that sells raw
materials that the product uses the most. Cleverisms’ statement can be applied to Ruby
Lariosa’s response because Mrs. Lariosa is clearly struggling in the transportation of her
goods and it is most likely to make your direct supplier your partner beacause it will
benefit in both sides or parties.
In addition, the second interviewee that the interviewer evaluate is the owner of
Cacao’s silogan, Thelma Ratan was asked by the researcher about how price hike
influence the budget in terms of their raw materials. According to Mrs. Ratan, “when
price hike strikes, Instead na makabili ng maraming mga raw materials , konti nalang
nabibili namin kasi sobrang taas ng tinaas ng mga presyo ng mga raw materials”.
according to Regine Cabato of CNN Philippines (2018), “A pulse asia survey showed
that most of the filipino is the one who is the top strongly affected by the price hikes in
basic commodities such as food and beverage since January 2018.” TRAIN Law affects
the basic commodities of the Filipinio but there is a specific product that became a Trend
here in the Philippines”. It is seen in the statement of the owner of Cacao’s Silogan and
the CNN Philippines source that it has an accurate situation of both sides because based
on Mrs. Ratan’s statement that the price of the raw materials is expensive that is why the
Conda, M.E., et al. (2019) 19
quantity of the raw materials will be lessen to fit their budget.
The owner of Goto Panalo, Mr. Renan Roque was asked the same question about
how does price hike influence the budget in terms of their raw materials. Mr Roque stated
that “Kapag nag increase yung mga materials na ginagamit namin syempre
maapektuhan din kaming mga negosyante, at magiincrease din kami ng presyo sa aming
nilalabas, or worse maaari kaming magtanggal ng trabahador”. As what PhilStar
Global, written by Jess Diaz (2018) has mentioned that the “Poverty is one of the effect
of Price hike on the Philippine economy. It is because of the increase in the prices of the
basic goods and foods that not all citizen can afford the necessities. It is also said that
unemployment is another direct effect of price hike”, it is said in the following statement
that when price hike occurs the owner might have a chance to fire or remove employees
in their business to lessen the release of the money.
The owner of MRK Mama Raquel’s Kitchenette, Mrs. Katrina Jessel Soller said
to our question, is “alam niyo naman kapag price hike diba mataas mga bilihin, at kapag
sumapit na yung mga panahon na ganto binabudget na namin yung income namin para
kung sa ganon magawan namin ng paraan kung ilang quantity ng raw materials ang
aming bibilhin lalo na sa pagdating sa pagtaas ng bigas.” As what, Louise Maureen
Simeon of PHILSTAR global (2018), stated in the article that the prices of the palay and
rice is increasing. In relation to our study, the increase prices of the rices can affect the
cost of the product on a small – scale food businesses. In line with this statement, the
increase of price in rice can affect the price of the raw materials or the basic commodities
of a food business.
In line with how does price hike influence the average sales of the business, both
daily and yearly.
Conda, M.E., et al. (2019) 20
Based on the gathered data of the researchers, Mrs. Ruby Lariosa and Mrs.
Thelma Ratan stated the same answer that they need to reduce the selling prices of their
products. If you will look into Mrs. Lariosa’s and Mrs. Ratan’s statement it is applicable
to the 1st strategy from Cleverism (2017), The Market Penetration. When the price of
the raw materials increases then the tendency of Mrs. Lariosa’s and Mrs. Ratan’s decision
is to lessen the price of their product. If their business will lessen the price of their
product then their earnings will lessen, for them to cope up, their business will have to
promote more to attract consumers and their earnings might increase.
Mr. Renan Roque said in the 2nd question is “pagtumaas ang raw materials
naapektuhan din sales namin, so kapag ganun tinataasan talaga naming yung mga
presyo ng meals namin kaya ayun maraming naninibagong customer”. According to the
second strategy of Cleverism (2017), “Market development is a strategy that should be
used to expand your shares, sales’, and profits”. The actions of Mr. Roque can be
compared to the Market Development because this strategy can help the business cope up
with the food industry so your business will not fail or become broke. For the business to
prevent from bankruptcy, the business will have to increase the products’ prices so the
profit will still be stable but the quantity of consumers will not be stable. The business
will have to develop their marketing strategy to attract more consumers.
Mrs. Soller said in the interview is “a Price elasticity measure how price
increases as well as decrease affecting demand for product or service. Ang ibig sabihin
nito ay dahil may price hike wala akong magagawa kundi tataasan yung price ng bilihin
ko pero hindi ko pa din babaguhin yung product ko, sadyang titignan ko lang kung
magbabago din ba yung dami ng tao kapag tinaasan ko yung presyo ng aking pagkain”.
In accordance to the common factors that can be considered when having a price
increase
Conda, M.E., et al. (2019) 21
One of the challenges that a small-scale business owner may experience is on how
they will cope up their business when price of the raw materials happens. Mrs. Rudy
Lariosa said that “kung pursigido ka naman sigurong magkaroon ng business diba lahat
gagawin mo naman para maisalba yung store, so ayun ginagawa ko pati sa facebook
nagbebenta ako ng mga tapsi ganon tas kapag umorder sila free delivery na sa kanila
nakakatawa mang isipin pero naging paraan ko rin yun para mas kumita lalo” .
Cleverism (2007) said that this can be called as, The use of alternative channels, the
internet has opened up other channels for businesses to reach their customers and sell
their products, that being the caseits clearly see the uniformity of the two.
Mrs. Thelma Ratan stated that the factor she consider when having a price increase
is “Bibilin ko pa rin talaga yung dapat kong kailangang mga raw materials para ma
maintain ko yung quality ng aking niluluto, at kung sakaling wala na talaga, gagamitin
ko yung mga materials na yun para makagawa ulit ng bagong putahe”. As claimed by
Cleverism (2007), “Small businesses also use diversification, where they will sell new
products to new markets.”. If you know that there are ways, do what you need and can do
for your business, if you need to bet anything for your business you will do it. The fifth
strategy in Cleverism (2017) is an important way or strategy so the customers or
consumers will not get bored or get tired of the business, it is much better to have a twist
in the product that you offer.
As stated by Mr. Renan Roque,the is the owner of the Goto Panalo which is
located at Pateros, he said, “I decided to put up this food business because I know the
own needs and preferences of my customer.” Market Segmentation is the sixth strategy of
Cleverism (2007), it is all about the process of dividing the market into segments just like
Mr. Roque did. Market segmentation is another business growth strategy that any small
businesses can adapt. In making the market segmentation possible the business will have
to conduct a solid plan to know how the business will divide the market, which is the
owner of the ACC successfully did.
Mrs. Soller said in the interview is “Competition or demand. Factors other than
price, such as quality, service, and uniqueness can also influence price sensitivity”. This
Conda, M.E., et al. (2019) 22
statement can bind in the fourth strategy in Cleverism (2017), the product development
shows that small scale business will have to develop a product to get a larger share in the
existing market. Hence, the statement and the theory is connected to each other and if you
develop your product on a period when price hike occurs there has a possibility for the
earnings of the business to change in a day or year.
Strategies in maintaining your businesses despite the Price Hike
According to Cleverism (2007) in one of his strategies, Product Development in

the small businesses also see this strategy as a viable one in most of their circumstances.
This strategy shows that small scale business will have to develop new product to get a
larger share in the existing market. Mrs. Ruby Lariosa and Mrs. Thelma Ratan stated that
they want to serve a new product for people not to be loathe to their products and
services, Mrs. Lariosa and Mrs. Ratan also stated that they also serve food bundles, and
also improving their quality of products and services helped them to have a plenty of
customers.
One of the strategies of Mr. Renan Roque, owner of Goto Panalo is to maintain the
quality of their foods and services. Mr. Roque stated “Isa sa mga strategy na ginagawa
namin kahit na may price hike ay consistent pa rin kami sa lahat ng bagay, lalo na sa
pagkain.”. Although Mr. Roque’s strategy is not related or similar to the related literature
of this study. This can be a new addition of learning and information to the researchers,
owners of a business, and to the people who wants to start their business.
Mrs. Soller gave us so many strategies in maintaining her business despite of price
hike, this is some of her strategies that she share to the interviewer “ Offer discounts,
bundle products of services, and quality improvements at hindi lang yan, naging strategy
din namin na gumawa ng fb page upang mas makilala ang aming store at ang aming
mga produkto”. The strategy given by Mrs. Soller can be found or seen in the Cleverism
(2017), it is the use of alternative channels like the social media to reach the customers
Conda, M.E., et al. (2019) 23
and ask their feedback or opinions for improvement and also to promote and sell the
product of the food business.
Advice to any start – up business
Mrs. Ruby Lariosa said that “dapat isaalang alang mo muna kung ano yung
kalagayan ng ekonomiya natin ngayon, kasi alam naman natin na minsan sa ekonomiya
natin nagkakaroon ng tinatawag nilang inflation, mahirap nang makipagsabayan sa
ganun lalo na’t kung kabubukas pa lang ng business”. As stated by Joann Villanueva
(2018), “Cost-push factors propelled the Philippines’ inflation rate in August to 6.4
percent, nearly as high as in March 2009, Cost push inflation is inflation caused by an
increase in prices of inputs like labour, raw material, etc. The increased price of the
factors of production leads to a decreased supply of these goods.” Seen in the statement
above, it is stated that the situation can be complicated, mostly on a start-up business or a
small-scale business because you will experience an increase in prices of raw materials.
Mrs. Thelma Ratan’s advice is “Dapat magtatayo ka ng business naikaw mismo

ang nag mamanage, at yung pwesto na tatayuan mo dapat ay yung matao”. If you are the
owner or who personally manage their own business it is much easier to see the flow of
the business, if you get a high sales per day, or what can be the weakness of the business.
When building or creating a busines, it should be appropriate to the location and
consumers.
Mr. Renan Roque’s advice is “Ang negosyo, hindi basta basta pinapasok yan eh,
pinagaaralan yan” A business can be complicated, it is not an easy job to enter, it should
be a continuous learning about the product that the business is serving and the business
itself.
Mrs. Katrina Jessel Soller’s advice is “Always have a passionate in what ever you
do”. Being passionate towards something encompasses your whole heart, your whole
soul, your whole being. Win or lose, good or bad, whatever the outcome is, all that
matters is that you threw yourself into what you were doing. You must not concern
yourself with other people’s opinions because passion is an expression of the self totally
Conda, M.E., et al. (2019) 24
and completely. This is what being passionate is all about. People with great passion can
make the impossible happen.
Conclusions:
The researchers concluded that the all the respondents or the owners of the Small
– scale Food Businesses will improve the quality of there food even though the prices of
the raw materials has increased. The respondents wants to stay consistent in the products
that they serve even if the prices of the raw materials has increased. Also, the respondents
stated that they will offer bundle meals to cope – up or maintain their business despite the
Price Hike and use the internet or the social media in attracting new customers and to
promote the store’s products. The researchers concluded that the average sales of the
business both daily and yearly, is affected by the Price Hike stated by all of the
respondents. Some of the interviewees stated that they will decrease the prices of their
products but they will also decrease the quantity of the food while some stated that their
business will increase the products’ prices to match the price of the raw materials.
Though sales increased or maintained, he said that their are customers who are getting
used to the price increase. The researchers concluded that the respondents common factor
that should be considered when Price Hike occurs is maintaining the quality of their food,
that even though the prices of the raw materials increased, the quality of the food is still
consistent and the interviewees considered the sustainability or the survival of her
business when Price Hike occurs.
Recommendations:
Conda, M.E., et al. (2019) 25
For Future Researchers, this topic is only seasonal but it is helpful to any Small –
scale business owners or a start – up owners, this would give them ideas and information
about the effects of Price Hike to a Small – scale Food Business, the strategies in
maintaining the business in line and the common factors to consider when Price Hike
occurs but there are still spaces for improvements in this study or research paper. Starting
in the beginning, this study focuses more on the strategies in coping up or maintaining the
business in line when Price Hike occurs so the future researchers could focus more on the
effects of Price Hike to Small – scale Food Businesses and the factors to consider in their
business when Price Hike occurs. In terms of the interview, the future researchers could
still use the same location but at least add one location to have more diversity in the
location and the future researchers could compare the answers of the owners from
different locations. In picking the participants of the interview, the future researchers
should consider the years of existence of a certain business. Lastly, the number of
participants, since the participants of this research is only 4 owners, the future researchers
should interview at least 6 owners or more.
Conda, M.E., et al. (2019) 26

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PATEROS CATHOLIC SCHOOL

Senior High School Department

THE PROBLEM AND ITS BACKGROUND

Background of the Study:

Significance of the Study:

Review of Related Literature:

Intrduction to TRAIN Law

Price Hike Trend in the Philippines

Factors influencing Price Hike in the Philippines

Effects of Price Hike on Philippine Economy

Adaption strategies for small – scale business

The Second is “Market development, also referred to as “market expansion”, is

The use of alternative channels

The Fourth strategy is “Product development or product expansion is a strategy

Research Problem and Questions:

Small – scale Food

Products Services Resources

Scope and Limitations:

Carinderia – it is a small stall or store which sells different Filipino dishes at a

Small – Scale Businesses – a business that accepts a small number of workers

Ethical Issues/ Considerations:

Sampling and Participants:

The researcher conducted the following questions:

5. What advice can you give to any start up business?

Data Gathering Procedure:

RESULTS ANALYSIS AND DISCUSSION

In accordance on how price hike influence the budget in terms of raw

quantity of the raw materials will be lessen to fit their budget.

Strategies in maintaining your businesses despite the Price Hike

According to Cleverism (2007) in one of his strategies, Product Development in

Advice to any start – up business

Mrs. Thelma Ratan’s advice is “Dapat magtatayo ka ng business naikaw mismo

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