Research Boogsh
Research Boogsh
In Partial Fulfillment
For the Requirement of the Subject
INQUIRIES, INVESTIGATIONS, & IMMERSION
CUBILLO, ANGELA
ISAAC, ED SLEIGH
TABAR, JAMES KYLE
TAN, CINDERELLA ASHLEE
YGANA, ZYRA
JANUARY 2024
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CHAPTER I
INTRODUCTION
Rationale
The spending habits of young consumers are an important area of research, as they
represent a large market segment and developing purchasing power. Senior high school
students in particular are starting to make more of their own spending decisions as they
get older and gain more financial independence. This is particularly relevant as students
bear diverse financial obligations, including the repayment of loans acquired for their
university education, a responsibility that often arises before graduation. The necessity
for cultivating sound spending habits extends to all students, irrespective of whether they
receive financial aid, emphasizing the universal importance of financial literacy and
what motivates and influences their spending can provide useful insights for both
navigating their spending choices. However, there remains a gap in understanding the
intricate interplay between considerations of product price and quality in their decision-
making processes. Analyzing the correlations between these factors becomes imperative
to gain a comprehensive understanding of how high school students assess value and
purchasing decisions. The study's specific focus on senior high school students at
Western Leyte College ensures that the findings are culturally relevant.
In summary, the purpose of this study aims to examine the purchasing behaviors of
senior high school students at Western Leyte College specifically in regards to how
product price and perceived product quality affect their choices when purchasing
products or goods. The proposed study will utilize surveys and interviews to gather
quantitative and qualitative data on students' spending habits and purchasing criteria.
The findings will have theoretical and practical applications in marketing, consumer
The study aims to investigate the spending habits of senior high school students at
Western Leyte College in relation to their choices between different products with
varying price points and perceived product quality. Specifically, the study answered the
following questions:
I. To what extent do senior high school students consider product quality when
choosing products?
II. Did the variables product price and product quality correlate to the spending
III. Do senior high school students tend to make price-quality checking when
purchasing products?
Hypotheses
H0: There is no significant correlation between the pricing of products and the perceived
quality regarding the spending habits of senior high school students at Western Leyte
College.
Ha: There is a significant correlation between the pricing of products and the perceived
quality regarding the spending habits of senior high school students at Western Leyte
College.
The overarching aim of this research endeavor is to investigate the manner in which
senior high school students, specifically those enrolled in the academic strand of ABM,
STEM, and HUMMS at Western Leyte College, evaluate the relationship between price
and quality within their consumption patterns. The determination of the sample size will
is vital to note that the research will be exclusively conducted at Western Leyte College,
potentially limiting the broader applicability of the findings to senior high school students
Students require educational materials that can harness their knowledge and abilities
to foster essential life skills. In this study, we seek to gain insights into the correlation
the interplay of product price and product quality. The research will be conducted within
data collection period. The selection of these specific academic strand is based on their
significance and prevalence within the target student population. The primary aim of this
investigation is to thoroughly examine the relationship between price and the perceived
quality of products, particularly within the context of senior high school students. To
gather the requisite data, a survey will serve as the primary research instrument.
This study aims to provide new insights into the purchasing behaviors of senior high
shopping habits can inform both marketers looking to engage youth consumers, as well as
Students: This research aims to enhance students' financial awareness and responsibility
by fostering an understanding of the correlation between a product's price and its quality.
choices.
Researchers: This research aims to offer fresh and in-depth perspectives on buying
patterns and consumer mindset, opening avenues for the creation of novel models or
frameworks that can enhance our comprehension of consumer motivations and shopping
researchers and academics to expand on current knowledge and delve into related
subjects.
Business Owners: The findings from this study can be invaluable for business
proprietors in tailoring their marketing strategies to effectively engage and attract high
school students as prospective clientele. An insight into the factors influencing their
spending decisions, including product pricing and quality, can aid in crafting compelling
marketing messages. Business owners can adjust their pricing strategies to remain
competitive while upholding a level of quality that resonates with their target market.
gaining insights into the spending patterns of their students. This information can be used
to tailor support services, programs, or resources that align with the financial capacities
Retailers and Service Providers: Businesses operating in the vicinity of Western Leyte
College can benefit by understanding the preferences and priorities of the student market.
This can guide pricing strategies and product offerings to better cater to the needs of this
Local Community: The local community surrounding Western Leyte College may
benefit from the research as it can provide insights into the economic dynamics and
consumer behavior within the area. This understanding can have implications for local
In summary, the research on the spending habits of senior high school students at
Western Leyte College has implications for various stakeholders, including students,
researchers, business owners, educational institutions, retailers, and the local community.
The findings can be applied to improve services, inform decision-making, and contribute
to the overall well-being of the studied population and its surrounding community.
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DEFINITION OF TERMS
Population Size - The total number of individuals in the broader group of senior high
school students, providing context for the selection of the research sample.
Product Price - The cost associated with a product, a crucial factor influencing the
spending choices of senior high school students.
Purchasing Power - The capacity of senior high school students to buy goods or
services, influenced by factors like financial independence and available resources.
Sample Size - The number of participants chosen for the research, impacting the
representativeness and reliability of findings regarding spending habits.
Senior High School Students - The specific demographic under study, reflecting
individuals in this academic stage and exploring their spending habits.
Trade-offs - The choices made by senior high school students, involving giving up one
option to gain another, a key consideration in spending decisions.
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CHAPTER II
Spending Habits
Pillai et al. (2010) emphasize the pivotal role of young adults' spending habits in
allocate their funds to consumable products often leads to the neglect of long-term
financial considerations, such as investments (Shaari et al., 2013). Poor spending habits,
as behavioral patterns. According to the social learning theory, spending habits are
acquired through observation of parents and other influential figures (Fluellen, 2013).
Additionally, students choose to buy the product which will meet their interest relative to
product and price. The study concluded that students’ spending behavior is massively
influenced by their family background. Parents also play a critical role in shaping not
only the attitudes towards financial management but also life attitudes in general of their
children. To improve financial habits, students must take some time to create concrete
measures to help them keep track of their expenses. First, they should create their own
budget and keep ways on how to improve it. Keeping a record of expenses will help them
monitor how much money they spend on clothing, entertainment, and gadgets. They
should not forget to allocate money for savings because a good budget does have savings.
Lastly, they should keep a positive attitude (Bona, 2018). Childhood experiences,
contribute to the development of both positive and negative spending habits in their
children (Hadzic & Poturak, 2014). Agents of socialization, such as family and peer
groups, wield substantial influence over an individual's attitude towards money (Hadzic
discretionary spending. The findings from the survey suggest that the amount of pocket
"spending all they have." In instances where pocket money is depleted, these individuals
resort to borrowing from friends or undertaking part-time work to sustain their spending
habits (MSE, 2004). This underscores the intricate financial strategies employed by
young individuals in Hong Kong to maintain their desired lifestyle, shedding light on
Furthermore, in times gone by, students typically allocated their resources towards
purchasing study essentials such as books, stationeries, and clothing. However, in the
Present-day students find themselves necessitating not only basic educational materials
but also technological devices like laptops or desktops for assignments, mobile phones,
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and, for some, even vehicles—items that extend beyond the fundamental requirements
traditionally associated with student life. This shift in student requirements is notably
expenses.
management of educational funds differ among student groups, with funds sourced from
scholarships, loans, or parental support. Notably, females tend to allocate more funds to
clothing, while males exhibit a propensity to spend more on entertainment and dining out,
as noted by Wang and Xiao (2009). Furthermore, research by Norvilitis et al. (2006) adds
depth to the discussion, suggesting that, while women are more likely to report having a
budget, they also tend to accumulate higher amounts of credit card debt and total debt
from various studies, underscores the complex interplay between gender, financial
Product Quality
emphasizes the pivotal role of product quality in shaping consumer purchasing decisions
and satisfaction. The significance of product quality has evolved into a crucial
Putro, Semuel, and Karina (2014) extensively elaborate on the critical necessity for
the competitive market landscape. They assert that, despite similarities among products
offered by various businesses, the distinguishing features of a product are crucial for
standing apart from competitors. In tandem with this perspective, the significance of
product quality emerges as the primary determinant in customer satisfaction and usage
the degree to which a product aligns with or surpasses customer expectations and
role of product quality in influencing customer satisfaction, shaping brand reputation, and
Numerous research studies emphasize the pivotal role of product quality in shaping
customer satisfaction. Zeithaml's study in 1988, for instance, revealed that customers
evaluate product quality based on their expectations and the actual performance of the
product, with satisfaction being more likely when the product meets or exceeds
expectations. Building on this, Smith and Johnson's 2018 study corroborates a positive
correlation between product quality and consumer satisfaction, noting that consumers
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heightened satisfaction and loyalty. Furthermore, Chen et al.'s 2019 research underscores
al. (2018) within the smartphone industry affirms that customers perceive higher quality
Contributing to the expanding body of research, Johnson and Brown (2019) delve
into the relationship between product quality and brand reputation. Their findings,
consistent with previous studies, emphasize that consumers are willing to pay a premium
investing in product quality for increased customer satisfaction and loyalty. The
advantage in the market. The perceived quality of a product becomes closely associated
with the overall brand image in the eyes of customers, influencing their trust and
preference for brands prioritizing quality, as observed by Chen et al. (2020). Their
perceiving higher product quality exhibit increased brand loyalty and a greater inclination
business success.
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Beyond its impact on customer satisfaction, product quality exerts profound effects
on various vital business outcomes. Anderson and Sullivan's (1993) study establishes a
direct correlation between product quality and customer retention, asserting that satisfied
customers, impressed with a product's quality, are more likely to engage in repeat
purchases, thereby diminishing customer churn and elevating customer lifetime value.
Brown et al.'s (2019) exploration of the impact of product quality on brand reputation
supports this, indicating that companies known for producing high-quality products are
better positioned to attract new customers and retain existing ones, highlighting the
Further research by Garcia and Martinez (2020) underscores the impact of product
quality on consumer purchase decisions, revealing that consumers are more inclined to
select products perceived as having higher quality, even if they come with a higher price
tag. This underscores the role of product quality as a significant marketing tool,
has implications for operational efficiency and cost management. Notably, it has been
found that product quality is associated with customer advocacy and positive word-of-
mouth. Hennig-Thurau, Gwinner, and Gremler's (2002) study indicates that highly
impacting brand reputation and attracting new customers. To ensure high product quality,
processes, and quality control, with continuous improvement and innovation being
emerges as a strategic approach for enhancing customer satisfaction, loyalty, and overall
business performance.
Product Price
According to Kotler and Armstrong (2012), price is the total of the values that
the amount of money that is charged for a good or service. Hence, pricing has an impact
on brand positioning and image; price is therefore a crucial component (Tjiptono, 2008).
Because as Kotler and Keller (2016) stated, a consumer's decision to buy a product is
heavily influenced by their impression of the price. Price, then, plays a crucial role when
affects the decisions about which brand, product, and store to choose (Faith and Agwu,
2014). As stated by Kotler and Keller (2016), the price of a product can be divided into
three dimensions: fair price, fixed price, and relative price. Fair price refers to the
reasonable price. Fixed price is a set price for all buyers. Relative price is the price set in
accordance with the quality and service provided by the seller, as per Kotler and
Armstrong (2014).
Price is undoubtedly one of the most influential factors in the perceptions of products
on the market. According to Beneke et al. (2015), price is a real clue that consumers use in
their purchasing decisions. The price variable is always present in the daily purchase and
represents the value of the economic expenditure Zeithmal (1988), refers as the sacrifice
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value) that must be given up by consumers to carry out a certain purchase transaction.
Considering that the price represents “a sacrifice”, this variable has a contrary position to
the purchase intention where generally the higher prices, the lower purchase possibilities.
Although, in some cases, researchers like Nevin e Houston (1980), Mitchell (2010), and
Kara, et al. (2009), explained that consumers do not always see price in a negative way,
decision. They suggest that price could be a signal of product quality and represents
elegance and status. These price role perceptions, negative or positive, give rise to
services. Thus, consumers’ perception about price is built through a complex process and
does not necessarily reflect the real brand or product price. Therefore, the gap between
the true price and the consumers’ perceptions about price can be large.
This finding is consistent with the results of Djatmiko and Pradana (2015) and
While price is an important factor for most consumers, other factors such as brand image,
store location, service, value, and quality are also taken into consideration (Tjiptono,
2008). Many consumers use price as an indicator of quality by considering the adage
“you get what you pay for” and therefore recommend that a brand must come with a
reasonable price (Lien et al., 2015). However, the magnitude of the price effect in
different goods and services depends on the elasticity of demand, such as whether the
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goods are necessary. Additionally, the buying process is adversely impacted by the high
costs associated with renowned brands, as individuals express a desire to purchase these
brands, yet their limited income poses a barrier. It is worth noting that among the
elements of the marketing mix, only the price aspect contributes to revenue, while the
preferences may also change along with the fluctuations in the price levels of goods and
services.
Pricing is an essential factor in customer satisfaction since customers often check the
pricing when evaluating the product and service value. In a study conducted by Lu et al.
(2013), it was found that consumers have a price in mind before making buying
decisions. When products’ actual price is close to their price in mind, they show strong
buying intentions. Wang et al. (2014) also found that consumers’ price in mind changes
with the frequency of certain prices appearing during shopping. Once the showing price
is consistent, the consumer’s price in mind will be adjusted to the showing price.
Theoretical Framework
students at Western Leyte College revolves around the association between product price
and quality. This study relies on fundamental concepts and theories to investigate how
product price and quality correlate within the spending behaviors of students at Western
Leyte College. The researchers have obtained authorization to employ Adrian Furnham's
sources, saving habits, bank account ownership, and intentions to open new accounts,
reasons for selecting or changing banks, banking frequency, and spending patterns across
multiple categories.
as a tool for collecting empirical data aligned with the conceptual framework. As the
study advances, this framework will aid in the interpretation of findings, enabling the
correlation between product price and quality as influential factors in consumer behavior.
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CHAPTER III
RESEARCH METHODOLOGY
Research Design
This correlational research involves both qualitative and quantitative elements. The
objective of this research is to investigate and analyze the spending habits of senior high
school students at Western Leyte College, with a specific focus on their purchases of
various products. The primary aim is to explore the correlation between the price of these
products and the perceived quality among senior high school students. Through a detailed
examination of these spending habits, the study aims to identify patterns, preferences, and
The research seeks to quantify the relationship between product price and perceived
these two variables. By understanding the dynamics of this correlation, the study aims to
contribute valuable insights into the economic behaviors of senior high school students,
that drive purchasing decisions. The findings from this research endeavor to provide
practical implications and recommendations for optimizing the affordability and quality
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Research Respondents
In this study, the researchers focused on the students of Senior High School in
Western Leyte College, specifically those in the 11th and 12th grades under the strands of
ABM, STEM, and HUMMS. To select the participants, the researchers employed a
Stratified random sampling involves dividing the population into smaller subgroups
or strata based on shared attributes or characteristics. In this study, the strata were formed
based on the different strands of the Senior High School students. This technique allows
for a more representative sample as it ensures that each stratum is adequately represented
in the sample. By using stratified random sampling, the researchers can study the specific
On the other hand, simple random sampling is a basic sampling technique where
subjects are selected entirely by chance from a larger group or population. In this study,
the researchers conducted simple random sampling within each stratum. This means that
within each strand (ABM, STEM, and HUMMS), six students; 3 girls and 3 boys were
randomly selected to participate in the study. In total there are 156 participants, with six
individuals selected from each of the 26 sections. Simple random sampling ensures that
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each individual in the population has an equal chance of being included in the sample,
aimed to select a sample of Senior High School students that represents the different
strands in Western Leyte College. This approach allows for a more comprehensive
students from there spending habits on various products and the correlation between
Ethical Considerations
considerations. The research adhered to six ethical principles. During evaluation, the
These ethical guidelines ensure the integrity of the research and safeguard the rights of
the participants.
Research Environment
institution located in Ormoc City, Philippines. Western Leyte College has a long-standing
reputation for providing quality education to the youth of Ormoc City and the entire
region. The school has a track record of nurturing and molding students, equipping them
with the knowledge and skills necessary to excel in their chosen fields and compete
globally. Secondly, the choice of Western Leyte College as the research locale is based
on its relevance to the study's objective of examining the spending habits of Senior High
School students on various products and the correlation between product price and
product quality. The school’s commitment to quality education and its reputation makes
Research Instrument
spending habits of high school students at Western Leyte College and explore the
correlation between product price and product quality. The questionnaire design aligned
with the study's objectives, incorporating elements from two distinct sources to ensure
precise and relevant data collection. The first part of the questionnaire, encompassing
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questions about the respondent's personal information, it is derived from Atie Nadome’s
questionnaire covers various aspects such as income sources, saving habits, budgeting
practices, spending habits, and the effect of price and brand. The first section employs a
Likert Scale Method, which consists of five tables that answers questions that rated on a 4
To ensure compliance and permission for using the test content for non-commercial
research and educational purposes, the researchers obtained explicit permissions from the
original source, Atie Nadome. The controlled distribution of the test content is restricted
reproduction or distribution necessitate written consent from the authors and publisher.
The process of gathering data was systematically organized into four distinct stages:
(1) Selection of Respondents, (2) Distribution of Consent and Questionnaires, (3) Data
and simple random sampling methods was employed. The focus was specifically on
grade 11 and 12 students at Western Leyte College, with each section divided into
gender-based groups (male and female). Three respondents were randomly selected from
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each group, resulting in a total of six participants per section. The study included a total
of 156 participants, with six individuals selected from each of the 26 sections.
Ethical considerations played a crucial role in the research process. Informed consent
the survey. The researchers utilized a questionnaire that helped identify factors and
accurate results from these gathered questions. The questionnaire is titled "Spending
Habits Among University Students" by Atie Nadome, which received approval from the
researcher. The research is structured into three distinct sections, with the initial segment
employing the Nominal Scale Method to collect personal information from the
participants. The survey commenced with the utilization of the Likert Scale Method and
concluded with the application of the Binary Scale Method. Additionally, the
capture diverse perspectives and enhance the depth of the research findings.
between themselves and the respondents during the research study. This approach was
adopted to enhance the accuracy and precision of the obtained results. Following the
distribution of carefully crafted questionnaires, the data collection process was efficiently
carried out within a one-week timeframe. This timely execution allowed for the swift
Upon collecting the completed questionnaires, the research team transitioned into the
next phase: data handling. This critical step involved the meticulous interpretation and
Data Analysis
In order to achieve an accurate result, the researchers analyzed the gathered data
with the help of the Chi-Squared Test of Independence. The data analysis tool was
utilized after examining the variables. The examination was applied in order to determine
whether the three categorical variables were connected or not. The manual formula
The research involved an examination of the data through the application of Chi-
Square Distribution. The degrees of freedom within the Chi-Square Distribution were
employed to ascertain the analysis. This statistical approach facilitated the researchers in
assessing the null hypothesis, aiming to investigate the potential correlation between
crucial role in refining the analysis, allowing for a more nuanced understanding of the
relationships within the data. The utilization of a right-skewed distribution suggested that
exploration of spending behaviors. The researchers leveraged the statistical tools to delve
into the intricacies of consumer choices, exploring whether certain spending patterns
were associated with specific product costs and qualities. This methodological approach
not only enabled a rigorous evaluation of hypotheses but also provided valuable insights
into the complex dynamics between consumer behavior and product attributes.
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APPENDEDIX A
PROGRAM OF ACTIVITIES
Generating a
To establish a title New Research Topic October 1-12,
suitable research
for the chosen and Title 2023
topic related the
topic.
strand (ABM)
logically presented.
APPENDEDIX B
BUDGETARY REQUIREMENT
31
In Partial Fulfillment
For the Requirement of the Subject
INQUIRIES, INVESTIGATIONS, & IMMERSION
32
ARESGADO, CHEENE C.
DALMAN, SHAMASH C.
SOTABINTO, GRACE V.
SUNGAHID, HERO C.
JANUARY 2024