“Pricing Strategies among MSME Owners in Guiuan After COVID-19: Balancing
Between Suggested Retail Price and Strategic Pricing for Merchandise Products”
Research Rationale
Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in shaping the
Philippine economy. Their impact extends to job creation, mitigating poverty by
accommodating the country's expanding workforce. These enterprises contribute
significantly to economic development in remote and rural regions and function as essential
collaborators for larger enterprises, offering crucial support services. Moreover, MSMEs
serve as incubators for emerging entrepreneurs, fostering new businesses that may evolve
into major corporations. Despite their pivotal role in fostering social and economic
progress, MSMEs grapple with constraining challenges, particularly in the financial realm,
hindering their optimal engagement with prevailing opportunities.
The advent of the novel coronavirus, COVID-19, created substantial changes on a
global scale, profoundly affecting the lives and business activities of people across the
Philippines and beyond. In response to the pandemic, the government implemented
stringent lockdown measures from mid-March to the end of May 2020 in the national
capital region and high-risk provinces, resulting in substantial economic setbacks. Even as
the Philippine economy transitions into the recovery stage six months post-lockdown,
micro, small, and medium-sized enterprises (MSMEs) struggle with a notable decline in
both demand and revenue. The aftermath of the pandemic has manifested in escalating
costs, diminished sales, and labor-related challenges, including issues surrounding
remuneration and workforce downsizing. While numerous reports and articles document
the widespread effects of COVID-19 on MSMEs, a discernible knowledge gap persists,
particularly concerning the pricing challenges faced by MSME owners, specifically in the
post-pandemic context of Guiuan, Eastern Samar.
This research aspires to acquire pertinent insights into the post-pandemic retail
challenges confronted by MSME owners in Guiuan, particularly those engaged in
merchandise and sari-sari store operations. In the realm of regulated retail pricing, where
prescribed prices aim to ensure equitable benefits for customers, sellers, and the
government, the study explores into the nuanced decision-making processes of MSME
owners in pricing their goods. Amidst conditions and factors such as heightened inflation
rates resulting from past economic adversities, notably the COVID-19 pandemic, the
research centers on a thorough analysis of the interplay between suggested retail pricing
dictated by the Department of Trade and Industry (DTI) and the strategic pricing decisions
grounded in the prerogatives of MSME owners. To gather this information, a
comprehensive research approach will be employed, utilizing both qualitative and
quantitative methodologies, including survey questionnaires and interviews. The survey
aims to outline the discernible price differentials between suggested retail prices and those
set by MSME owners, while interviews will provide nuanced insights into the rationale
steering their pricing strategies.
The scarcity of comprehensive information on the pricing methodologies of
MSMEs, particularly in provinces like Guiuan Eastern Samar, highlights the significance
of this research. A detailed exploration into this field promises to enrich the collective
understanding of MSME owners and stakeholders, including accountants and
governmental entities. The study contends that while the stringent pricing regulations
imposed by the DTI may confer benefits upon consumers and the government, they
concurrently pose potential adverse effects on MSME owners, limiting their flexibility in
strategic pricing. As MSMEs play an integral role in the Philippine economy, this research
serves as an enlightenment, emphasizing that stringent governmental policies may
involuntarily impede the growth and success of these enterprises, thereby triggering
economic declines. The vision of this research is to influence governmental policies,
advocating for more MSME-friendly approaches, and fostering initiatives that boost the
MSME sector across both urban and rural landscapes.
Members:
Bagasin, Melvin Zairus B. Bagro, Francis Mathew B.
Dalumpines, Czarina S. Edang, Joshua C.
Gado, Richelle Joy P. Naputo, Carlos Fernando J.
BSA-3 ACCRESM-248
