This research studies focuses on the level of consumer confidence of the residents in Batangas and Lipa City. This chapter includes introduction, background of the study, statement of the problem, conceptual framework, research hypothesis, scope and delimitation, significance of the study and definition of terms. Introduction
Consumer confidence is defined as that which consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy. In essence, if consumer confidence is higher, consumers are making more purchases, boosting the economic expansion. On the other hand, if confidence is lower, consumers tend to save more than they spend, prompting the contraction of the economy. A month-to-month diminishing trend in consumer’s confidence suggests that in the current state of the economy most consumers have a negative outlook on their ability to find and retain good jobs (CCB, 2000). In simple terms, increased consumer’s confidence indicates economic growth in which consumers are spending money, indicating higher consumption. Decreasing consumer confidence implies slowing economic growth, and so consumers are likely to decrease their spending. The idea is that the more confident people feel about the economy and their jobs and incomes, the more likely they are to make purchases. Declining consumer confidence is a sign of slowing economic growth and may indicate that the economy is headed into trouble (Conference Board, 2000). Generally this paper aims to determine the level of consumer confidence of the residents in Batangas and Lipa City. Specially, it aims to identify which forces greatly affect the consumer spending in terms of food, education and transportation and to prove that consumer confidence must not be disregarded in the topic of economic development. Background of the Study
The researchers chose to compare the level of consumer’s confidence of the residents in Batangas City and Lipa City. The researchers chose Batangas City as it is their home cities. Batangas City is known as the industrial port of CALABARZON and classified as one of the most competitive cities in the country today. It is being compared with Lipa City because it is the nearest industrialized city in Batangas Province. The researchers compare the two cities to see if there is a difference in the level consumer confidence of the residents in Lipa and Batangas City. It is also foreseen to be comparable because they are both industrialized and commercialized cities. As economic students the researchers want to seek the answer on how consumers help in the economic growth and how this helps the government. Consumer spending in terms of food, transportation and education are used in this study as variables because these are used in everyday life. Stratified random sampling was used in the study by conducting the survey as it captures key population characteristics in the sample. Using the stratified random sampling the researchers can get a more reliability on the result This study differs from other existing studies as it is focused on Batangas and Lipa City only. It is done for many reasons like for the economy and also for the consumer of Batangas and Lipa City for the living conditions in their everyday life that will help the government to know how important the consumer is to the success and development of the country. Statement of the Problem
This study attempts to compare the level of consumer confidence of the residents from Batangas and Lipa City. Specifically, this study seeks to answer to the following questions: 1. What is the profile of the respondents in terms of:
2.2. Sex ;
2.3. Civil status;
2.4. Educational attainment; and
2.5. Household income?...