This increase in prices set by the suppliers makes the cost of the product

This increase in prices set by the suppliers makes

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This increase in prices set by the suppliers makes the cost of the product purchased by the local store owners to also increase. This increase in the selling prices causes the transfer of some customers to other stores offering cheaper price. According to 14
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Philippine Amalgamated Supermarkets Association (PAGASA) president Steven Cua, the price hike is absorbed first by supermarkets because they are afraid to increase their prices (Bartolome, 2018). According to one of the grocery owner in Central Bontoc, she cannot just abruptly increase the selling price because she might lose customers. She is concerned that the customers shift to her competitors. In Cavite, it is also experienced by Jeunesse Valerio a general merchandise owner which he said that increasing the prices of goods drives away customers ( Cigaral , 2018). Further, with the implementation of TRAIN law, higher taxes were imposed to the goods like cigarettes, alcohol, sweetened beverages and sugar which usually bought in the grocery stores. With the higher tax imposed on these goods, their prices also increased. From P30.00 per pack of cigarettes in 2017, it is now P35.00 per pack in 2018 and 2019. From P21.63 per proof liter of alcohol, it is now P22.30 in 2018 and P23.40 in 2019 (NTRC tax research journal, 2018). For sweetened beverages, Php6/liter for those with caloric and non-caloric sweeteners and Php12/liter for those with high fructose corn syrup (BIR Training of Trainers, 2018). The other challenge which also has the highest mean is Decrease in profit due to the increased prices of goods with a mean of 4.18 which falls under the descriptive title “Much Encountered”. Decrease in profit is not what a business would want to happen. If the profit decreased, businesses might not be able to finance their operating costs. Due to the increased selling prices of goods the customers limit their purchase to their basic necessities causing a decrease in profit of the grocery owners. According to one of the grocery owner in Central Bontoc, the quantity purchased by their customers decreased due to increased prices of goods. According to their customers, the amount of their 15
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budget appropriated to their groceries can no longer buy the same quantity like before therefore they only purchase what is really needed. According to Robert Go, president of the Philippine Retail Association (PRA) - Cebu Chapter, price is one the essential factors consumers consider when they purchase products and when there are price adjustments, consumers also tend to adjust their buying behavior. When the TRAIN Law was passed and consumers started to feel its impact, they saw changes in preferences. Some have shifted to other products and prioritized more on buying the essentials like food (Sunstar, 2018). On the other hand the challenge with lowest mean is Lack of knowledge or information regarding TRAIN with a mean of 3.27 which falls under the descriptive title of “Moderately Encountered”. With the advancement of technology, business owners can already acquire information easily using the internet. Information about the implementation of TRAIN law can be read through the internet. Information about
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