CONSUMER COPING BEHAVIOR SURVEY RESULTS AND INSIGHTS BY DR. NED ROBERTO FEBRUARY 20, 2012, 1:00 PM TO 5:00 PM, NEW WORLD HOTEL For more info, call 813-2703/32 or email inquiry@saltandlight.ph About The Survey This 2012 Consumer Coping Behavior Survey is the 12th in the series that started in 1984. This survey series has served the needs of business especially in its category management and marketing planning. NGOs and government have joined business to use the coping survey data to predict and understand economic turning points (both downturns and upturns). Several large corporations have resorted to the coping data to give a micro-level support to the macro-level market review that the economic briefing of its annual corporate strategy planning covered. The Consumer Coping Surveys’ analyzed data have allowed subscribing companies to learn if for consumers their product or service categories have remained or changed classification as: (1) a staple, (2) near staple, (3) nice to have but not necessary, (4) near dispensable, or (5) definitely dispensable recurring expenditure items. The analysis included practical suggestions about what to do should a subscribing company’s product falls in any one of these five classifications. In this 2012 survey wave, the gathered data will gain an added level of practical relevance because they will include the brand consumers will have purchased most per classification. As in the previous survey waves, the 2012 survey will trace how consumers in coping will be adjusting their purchase and consumption of each of the 10 dozens preselected product and service categories consumers budget for recurring expenditures. These alternative consumer budgeting choices per product category and that the survey will measure include: (1) cutting back or reducing purchase/usage, (2) economizing, (3) substituting, or else (4) even dropping from their budget. As already mentioned, the 2012 coping questionnaire will include the brand involved per consumer budgeting behavior. Survey Methodology This 2012 Consumer Coping Survey is a nationwide study that gathered data from the specified and qualified respondents via face-to-face interviews. Interviewing will make use of an exclusively designed structured questionnaire. The target survey respondent is “the household budget manager,” namely, the housewife. A total of 1,200 (±3% error margin at the 95% confidence level) housewife interviews were completed. This total is broken down into 300 (±6% error margin) respondents in each of the

four study areas: National Capital Region, Balance Luzon, Visayas, and Mindanao. Multi-stage sampling was used in selecting the respondents from 240 barangays from all regions. Provinces, cities/towns and barangays are selected with probabilities proportional to size, while households are selected using interval sampling. The survey questionnaire design maintains its basic structure from its 1984 original. It measures consumer coping behavior in two sets. The first set looks at just a couple of items relating to housewife consumers’ perception of: (1) their household paying capacity versus last year’s, (2) then versus their expenditure needs, and (3) versus their felt occasions of being “kapus” (or hard-up). The second much longer set measures the housewife’s budget treatment of each of some 10 dozens pre-selected recurrent expenditure items. Survey Timing & How the Results Will Be Reported Survey fieldwork was done in March 2012. Data processing, analysis and reporting was completed April 2012. The coping behavior data will be analyzed to identify which product and service categories consumers per survey area and S.E.C. was classified as:

1. An “absolutely-necessary” recurring expenditure item and therefore will most likely be maintained or even raised in purchase and/or usage;

2. A “necessary-but-not-absolutely-necessary” recurring expenditure item and therefore

may be maintained in the budget;

3. A “nice-to-have-but-not-necessary” recurring expenditure item and so may be reduced or economized in usage;

4. A “can-do-without-but-still-nice-to-have” or near-dispensable recurring expenditure

item and therefore may be replaced or substituted by another; and

5. A “definitely-can-do-without” or truly dispensable recurring expenditure item and therefore will be replaced or even deleted from the budget.

Major Survey Questions

1. For each of the following products, which did you do in the past month:

a. Not used or bought ever since b. Dropped from the budget even before

c. Dropped from the budget just now d. Substituted with something else e. Lessened use or buying f. Economized use g. Put back into the budget h. Used or bought as before i. Used or bought even more than before

2. a. For items substituted (code d in Q1): Will you please tell what you substituted for

this item? b. What brand did you replace it with?

3. For items economized on (code f in Q1): Will you please tell me how you are economizing on this item?

4. For codes e, f, g, h, i in Q1: What brand did you last buy? The questions above will be asked of EACH of the following pre-identified product and service categories: (It is possible for us to add products which your sponsor would be interested in) STAPLE AND FRESH FOODS Live chicken Dressed chicken Fresh/Table eggs Fresh vegetables

Fresh fish Rice Fresh meat Fresh fruits

PROCESSED AND PACKED FOOD Canned meat Canned corned beef Canned meat loaf Canned fruits Canned mixed fruits like fruit cocktail Canned pineapple tidbits/chunks Canned fish Canned sardines Canned tuna Instant noodle

Instant spaghetti Spaghetti Macaroni Pork and beans Roasted chicken Sauces Spaghetti sauce Tomato paste Tomato sauce Tuyo

COOKING AND FOOD AIDS/CONDIMENTS Cooking oil Catsup

Fish sauce Sugar

Liquid seasoning Sautéing ingredients

Vinegar Soy sauce

MILK AND DAIRY PRODUCTS Infant/starter formula Follow-on formula Growing-up milk Powdered filled milk for kids Powdered coffee creamer Powdered chocolate drink Condensed milk Evaporated milk Ready to drink milk in tetra or can

Ready to drink low-fat milk Ready to drink sterilized milk Ready to drink chocolate milk Ready to drink white milk Ready to drink flavored milk ice cream (single serve) Ice cream (bulk) Chocolate candy (local) Chocolate candy (imported)

REFRESHMENTS AND LIQUID/POWDERED DRINKS Beer Bottled water in 5 gal bottles for use with dispenser Purified water from water filling stations Water in plastic bottles Powdered or ready to drink Energy drink isotonics Fruit juice in foil pack Fruit juice in cans Fruit juice in tetra pack Liquid fruit juice concentrate

Powdered fruit juice Powdered tea roast and ground coffee Instant coffee or soluble powdered coffee Soft drinks Tea bags Canned tea drink Ready to drink iced tea Chocolate drink in tetra or can Yogurt drink

BREAD AND BREAD SPREADS Pandesal Loaf bed/tasty Butter cheese spread Cheese

Margarine Mayonnaise Sandwich spread

HEALTHCARE PRODUCTS AND SERVICES Visit to a family doctor Visit to a specialist doctor Visit to a dentist Headache medicine Cough/cold medicine

Medicine for stomachache/acidity Vitamins from a drugstore or supermarket Vitamins from an independent dealer/seller Food supplement for diabetes

BEAUTY CARE PRODUCTS Alcohol Astringent Cleansing cream Cologne Facial wash

Lotion Make-up Talcum powder Whitener

PERSONAL CARE PRODUCTS AND NEEDS Deodorant Sanitary napkin Panty liner Shampoo Conditioner Toothpaste Toothbrush Toilet paper

Feminine wash Baby oil Bath soap Detergent soap or powder Denture care products like denture adhesive and cleanser Therapeutic toothpastes for sensitive teeth and gum care

BABY AND ELDERLY NEEDS Baby wipes Disposable diapers for babies Disposable diapers for adults FINANCIAL SERVICES AND NEEDS Rotating credits (paluwagan) Borrowing HOUSEHOLD UTILITIES AND EXPENDITURES LPG Floor wax Subscription/load on Internet connection used at home Landline Phone subscription

Cable TV subscription Prepaid cellphone load Postpaid cellphone subscription Cellphone accessories Use of electricity Use of water

RECREATIONAL AND ENTERTAINMENT EXPENDITURES Eating out in a convenience store Eating out in a hotel restaurant Eating out in jollijeeps or food vendors Eating out in carinderias Eating out in fast food restaurants

Going to theme parks Going to beaches for a picnic or outing Going to gimmick places/outlets Going to videoke/karaoke/bars Buying rubber shoes

Eating out in food courts Eating out in sidewalks Eating out in fine dining restaurants Eating out in school/office canteens Ordering food for delivery from a fast food restaurant Watching movies Malling Going to coffee shops Going to Internet cafes to email or to chat Going to internet cafes for online gaming

Buying sports sando Buying sprots jersey shirts Buying sports bag Buying sports bag Buying sports jacket Buying newspaper Buying comics or magazines Going to health and beauty centers/salons Going to the gym/fitness center Going to a spa/massage place

Get a summary of this report when you come to the Executive Briefing on Consumer Coping Behavior Survey Results and Insights by Dr. Ned Roberto on February 20, 2013, 1:00 PM to 5:00 PM at the New World Hotel. Call Salt and Light Ventures at 813-2703/32 or email inquiry@saltandlight.ph to reserve your seat today.