In Partial Fulfillment in the

Requirements of Research in Daily Life

Product Quality and Location:

Factors influencing the purchase decision of Senior High school students

towards Second Hand Clothing

Submitted by:

Arellano, Jan Bjorn

Echano, John Kyle V.

Estoconing, Robelle

Garcia, Orland Patrick

Isabela, Rezelyn

Lazarte, Destiny

Tan, Jan Laurence

Yacapin, Stacey Audrey

12 – Boyle

Submitted to:

Ms. Maricar C. Obsioma

August 13, 2019

THE PROBLEM AND ITS BACKGROUND

1.1. Background of the Study

1.1.1. General context of the study

Shopping for second-hand apparel is rapidly growing and has become a

notable segment of the retail market (Hansson & Morozov, 2016). As stated by Hannson

& Morozov (2016) in their study, over the years second-hand apparel’s popularity has

been growing. For example, due to the rise of the global environmental issues as in order

to lessen the impact on the environment, consumers have gained more willingness to

reuse and recycle every possible item like clothing, furniture, household items etcetera.

To define, second-hand clothing represents a circulation of used objects that occurs

through selling, gifting or donating. Trading second-hand goods, especially clothing

exhibits a long history with its roots from the past (Ginsburg, 1980; Hansson & Morozov,

2016). “Ukay-ukay” is a huge business in the Philippines. There is no exact date to when

the “Ukay-ukay” started but it is believed that it have been founded in the early 1980s in

Baguio. It all started when calamities hit the Philippines, donations were sent to help

those who were affected. As time goes by, the shipped goods from other countries were

purchased in bulks are sold to the public (Jong, 2011). As cited by Herjanto, Sampson

and Erickson (2016), the global trend of second-hand clothing is increasing and

uncontrollable. This phenomenon will continue to arise in the future and will definitely

give a huge impact in the industry of clothing. Xavier University- Ateneo de Cagayan is a

Catholic school run by Jesuits. It is observed that the students in the institution consume

Ukay-ukay and used this as their daily fashion. In this scenario, there is a purchase
behavior seen in the students towards Ukay-ukay or also known as second hand clothes.

Previous researches discovered that consumption in second hand products identified

factors influencing the customer in buying second-hand products (Alam, 2014). Price

was the most important factor followed by risk, brand and location. The purchase of new

products and the purchase of second-hand products shows no similarity and consumers

independently consider it while buying second-hand products. Market place or location

refers to the point from where customers can collect or buy the physical products or

service (Mercer, 1996; Alam, 2014). It is one of major components of the marketing mix

(Kotler et at., 2005; Alam, 2014). In the study, location is also identified as a factor which

influences the purchasing behavior of the customers, particularly Senior High school

students. When it comes to everyday consumer purchases necessary to sustain or life and

lifestyle, proximity is often the essential consideration involved in a consumer decision to

patronize a merchant. (Impact of Retail Proximity on Consumer Purchases, 2016). With

this, it will determine their willingness to go to a specific area upon the time of their

purchase or not. Some students may prefer to go to thrift shop, which are closer to their

vicinity than those that are very far away. Cogon Market, Cagayan de Oro City is the

chosen vicinity that the research will be undertaking at. Because, the ever crowd-pulling

Cogon Market at the heart of the city has been a one-stop shop for varieties of goods and

services. From raw materials for food and shop for salons and barbershop, Cogon Market

has it all (Cdeo Cogon Market, 2018).

1.1.2. Research Gap

When people want to fulfill their needs, they buy products. Hence, they

follow a buying process. It is a problem solving process in which a customer needs to

new product and second hand product might be the same but technically it's not because

purchasing second-hand product is associated with more risk and can also have an impact

on the social status of customers. For example, second-hand products don't have any

warranty or any price value or even damaged. This maybe because of the high risk

factors that makes the customer worry. But, on the other hand, customers buy second-

hand product as an alternative. In reality, there is an increasing phenomenon of buying

second-hand clothing but considering its popularity and increase of trade (Herjanto,

Sampson & Erickson, 2016) there is insufficient amount of study done most particularly

on the factors that influence the purchase of second-hand clothing. Recognizing second

hand market as an alternative selling channel for their products is important for

marketers. Without knowing it, especially its customers' behavior, there is no possibility

to make a proper strategy to gain market share. Therefore, it is important to study the

customer's behaviour specifically the factors affecting their decision to purchase second-

hand products.

Most of the previous studies on second-hand products consumption have

focused on the psychographic characteristics (Ya, Bae, & Su, 2015), Mass Market Case

Study (Chan, Choi, & Lok, 2015), cross cultural comparison (Xu, Chen, Burman, &

Zhao, 2014), trust in old textiles (Van Damme, 2014), influences in local fashion

(Hansen, 2014), and its consumption (Waight, 2014). The gaps in the literature are

factors that affect a customer’s decision in purchasing second-hand products. The study

on buying factors for second-hand products will give a enlightenment about the second-
 hand customer's behavior, which will help the marketer in creating a good strategy that

will help the popularity of second-hand clothing.

1.2. Statement of the Research Problem

At present, the increasing phenomenon of second-hand clothe purchase is

experienced by senior high school students of Xavier University- Ateneo de Cagayan. There is a

need to study the phenomenon to understand which among the two existing factors- quality and

location influences Senior High School students the most in purchasing second-hand clothing or

“ukay-ukay” clothes. With the study, it would give insights which among the said factors give

the highest influence in the purchasing behavior of senior high school students on towards

second-hand clothing.

1.3. Research Questions

The purpose of the study is to determine what factor greatly influences the

purchasing behavior basing on the brand, risk and seller location. It aims to answer the

following questions:

1. Which factor among quality and location (market place) influence the XUSHS students

purchasing decision of second-hand clothing?

i) What factor highly contributed in influencing the purchase decision of XUSHS

students towards second hand clothing?

ii) What is the least contributing factor in influencing the purchase decision of XUSHS

students towards second hand clothing?

iii) How do these factors influence the purchasing decision of XUSHS?

The study utilized a descriptive design. Thus, it can neither be proven correct nor

falsified because it does not test specific relationships between the factors and variables

identified in the study. The goal of this research is to provide information and better

understanding about which factor between quality and location influences the purchase decision

of Senior High school students the most.

Null Hypothesis:

 Product Quality has least influence on the purchasing decision of XUSHS towards

second-hand clothing

 Seller location has least influence on the purchasing decision of XUSHS towards second-

hand clothing

Alternative Hypothesis

 Product Quality has a great influence on the purchasing decision of XUSHS towards

second-hand clothing

 Seller location has a great influence on the purchasing decision of XUSHS towards

second-hand clothing

1.5. Significance of the study

The findings of this study may give deeper insights in understanding the

purchasing behavior of XUSHS students towards second hand clothing. Thus, the findings of

this study will be useful to the following entities:

towards second hand clothing and also additional information to identify what influences them to

purchase second hand garments or “ukay-ukay”.

Parents. The findings of the study will give parents an insight on how and why their children

purchase second-hand clothing. Thus, it will also give them a view point on how their children

budget there allowance

Thrift Shops. The result of the study will give thrift shops an idea on how to strategize in their

business. The findings of this study can be utilized as their market strategy as to how they could

increase their sales or what factors contribute to the purchasing decision of their customers in

buying second hand clothing or “ukay-ukay”.

Future Researchers. This study would serve as an avenue for conducting another research that

can either be replicated using additional variables in another setting or using different

respondents. The findings of this study can be utilized as a possible research literature for the

research that they will be undertaking. It can be a recommendation for them to enhance the

validity of the study of the same variables to reinforce the findings of this study. Furthermore, the

findings of this study can also be used as a conceptual framework of another research.

1.6. Scope and Delimitation

1.6.1. Inclusions and justification

The present study is focused on determining the factors influencing the

purchasing behavior of Senior High school students towards second hand clothing, most
 commonly known as ukay-ukay. The factors to be considered in determining the

purchase decision of Senior High School is only delimited to quality and location.

Quality is to be delimited to itself because it is the distinctive characteristic of the product

which can be noticed by the Senior High school students on the time of purchase. Lastly,

location will be delimited to “ukay-ukay” stores found in Cogon Area because this place

is where Senior High school students from Xavier University – Ateneo de Cagayan are

close to.

Furthermore, this study will be conducted at Xavier University-Ateneo de

Cagayan in which the respondents, Senior High school students are situated. Senior High

school students to be focused on in this study are Senior High School students from

ABM, STEM, GAS, ALG-CIT and HUMSS getting ten percent from its population

because these students are included in the Senior High school community for which the

research will be undertaken. For the data to be gathered, the researchers will utilize

questionnaires to be answered by the respondents.

1.6.2. Exclusions and justification

The present study did not cover the price as a factor in influencing the

purchasing behaviour of the Senior High school students because according to the

findings of the study conducted by Alam, M (2016), price was the most important factor

influencing customers when purchasing second-hand products. In which, it doesn’t need

further justifications to clarify its contribution to the purchasing behaviour towards

second hand clothing. Furthermore, other matters beyond the said parameters will neither

be further discussed by the researchers nor will be recognized in the study.

1.7.1. Central Place Theory (CPT)

There are

1.8. Conceptual Framework

The buying decision of Xavier University-Senior High School students towards

second-hand clothing will be determined through the influencing factors-quality and location.

Thus, the highly influencing factor will also be determined.

1.9. Schematic Diagram

Quality Location

Purchase Decision of
XUSHS Towards
Second Hand Clothing
 DEFINITION OF TERMS

To make this study more clear and understandable, the following words were defined

operationally.

Ukay-ukay. A Philippine store wherein second hand apparels such as clothes, bags, shoes and

other accessories are being sold at a very cheap bargained prices.

Quality.

Location. A particular place or position

Second-Hand. Goods that are new having a previous owner.

Thrift. The quality of using money and other resources carefully and not wastefully.

Pre-owned. Something that has been possessed and used by someone already.

Purchasing(Buying) Behavior. The way that people behave when they buy things, such as what

they buy, where and when they shop, and how much they spend.
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