Chapter 1

Problem and its Background

Introduction
The economy of the nation depends in the income and supply of their consumers
and businesses. The process of producing enough supply for the people is one of the
basic factor on creating the right demand and price for a product. The buying demands
will always depend on the prices and supply of product and services. That is why people
create some buying preferences where they can have the standard basis on what to
buy and why to buy a product or services, and that is also a factor that affects the
buying process. A buying process is the series of steps that a consumer will take to
make a purchasing decision. A standard model of consumer purchase decision-making
includes recognition of needs and wants, information search, evaluation of choices,
purchase, and post-purchase evaluation. (Grimly, 2013).
In the business industry there are different buying preferences that are consider
important to the world of this industry because we see it as a way of choosing a product
to buy. It is important to the businessmen in the society so they can perceive what to do
within their business. These preferences are the factors that affects the customer’s
buying decision, these include the availability of the stores and products, distance that
pertain to the location of store and lastly the affordability of products and services the
pertains to the prices they gave.
The availability of product is a buying preference because people usually will be
deciding to buy a product that is available in the store they are in. It is usual that we buy
products that are currently available than to find those that are not, but in some
circumstances people will not recommend alternatives. The distance or the location of
the store will be a factor of buying preference because the distance of a store or product
to the customer will more likely affect their buying decisions. While the affordability is
the amount pertaining to the capacity for customer to buy products that has different
prices from low to high.
The people are usually depending on different factors that is why it has
differences to each other. They often budget their money and also consider as their
decision making. Parents are the most common part of the buying process because
they are more likely elders that have the decision making in their households. That is
why parents hold the managerial works in planning what to buy for their family and their
household will let them hold the budget planning. The variables that the researcher will
focus on this study are the three buying preferences and how it will have significant
relationship to the buying process of parents.
Background of the Study
The buying preferences will be the first variable for this study; it concludes the
availability, distance and affordability. Specifically, these three will serve as the basis of
what the people will be the standard of what to buy. The people and society usually
have different problems because of these preferences. In the availability, in explains if a
certain product or service is available in a store or market. While it includes the problem
in the customer's wants and demand, having low supply of products might increase the
price and will sure affect the buying wants. However, the distance of a store from the
consumer will directly affect their perception on whether to take alternative stores or not.
The location of a store has a huge impact to the people especially to those who live in
rural areas. And lastly the affordability of products will be a very huge basis knowing
that the prices affect the people's capacity and want to buy. In the other hand, the
second variable is the parent’s decision making that will be considered because it will
have the responsibility in their buying process. Parents are the most usual buyers in the
market and they have more buying power than the other people of the society.
The respondents of this study are the parents of ABM 401 students. This section
are composed of 33 students that more likely pursuing accountancy and business
management courses in college. The parents of this strand will be the respondents
because their children are literate in business and how it works. The subjects in the
ABM will give the students the tools they will need on their journey to success in the
corporate world. Expect that they will be studying financial and management accounting
alongside the legal, business, and organizational contexts that they will be encountering
as enterprise. In taking this strand, they will be able to analyze assets, interpret
profitability, understand financial positions, and prepare audit accounts. These ideas
conclude the importance of these respondents to the study.

Conceptual Framework:
The chart is essential to this study because it will show how the process is going
to work in the study. This will show how the study will find the relationship between
buying preferences and the parent’s buying decision

Availability

Parent's Decision-
Buying Preferences Distance
making

Affordability
Statement of the Problem:
This problem addressed by this research is to know the relationship of
perceived buying preferences (including the availability, distance and affordability) and
to the parents of ABM grade 11 and 12 students in STI College Sta. Maria.
These are the research question include in this study:
• Do the buying preferences have significant relationship to the parent’s
decision making?
• How the availability of products can affect the buying process in parent’s
decision making?
• Can the distance of the stores affect a person’s buying process?
• Is the price of a product or a service is capable of changing the mind of a
parent to buy?
• Do these three buying preferences can all at once affect the parents buying
process or at least more than one?

Scope and Limitations:

This study is limited to the parents of ABM or Accountancy and Business
Management students of STI College Sta. Maria. They are the best respondents for this
study because their children are knowledgeable about business processes and that will
be easier for them to respond to our study. Also, the scope of this study will be the STI
College Sta. Maria because the location is relevant to the researchers and respondents.
Significance of the Study:
This study is significant because it will help these following people to know the
significant relationship of buying preferences and to the parents of ABM students.
These people are the parents or consumers, businessmen or business owners and
future researchers.
For the Parents/Consumer:
The parents will become the greatest beneficiaries of this study because their
buying process is the going to be tackle within the study. They will gain the knowledge
on how to handle their buying preferences and their buying decisions. They will now
know if their buying process is really affected by the availability, distance, and
affordability.
For the Businessmen or Business Owners:
The findings of this study will be useful to business owners because they will
know the effects of their business’s availability, distance and affordability of products, so
they can adjust these factors to make consumer benefits. And also, they will now know
the basis of buying process of the customers they have.
For the Future Researchers:
It will give them a study that might help them in a research that is related to our
study that will be useful for them. Also, if they will create research about business
process and buying process our study can be relevant.

Definition of Terms
These terminologies will be defined to know how their conceptual meaning will be
used to this research. Also, these terms will focus on how its definition will be used
operationally.
Buying Preferences
Conceptually, the buying preferences are the preferred factors of a customer to buy a
product or a service. It usually a factor that affect the buying decision of customers. It
usually depends on the customer demand because they will be giving the preferences
on what to buy.
Operationally, these are the basis of the parents of ABM 401 to their buying process.
Availability
Conceptually, it is the quality to obtain something you need or want. In business, it is
amount of supply and variation of products that are available on a store or business.
Operationally, these will focus on how the availability of products and services will affect
the parents of ABM 401 student’s buying process.
Distance
Conceptually, it is the numerical description on how far an object from another.
Operationally, it is a factor that will be consider on how the location of a store can affect
the parent’s decision making.
Affordability
Conceptually, it is the ability to buy something within the range of its price from high to
low. Usually affordability is also can use to know if something is affordable or not.
Operationally, it is the capacity of the parents of ABM 401 to buy a certain product or
service.