PART IV-SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

This chapter presents the summary of findings, the conclusions and recommendations that were drawn from the findings.

Summary

This study determined the business performance of pirated optical media vendors in Davao City in terms of profile of the vendors of optical media, marketing practices employed, average number of optical media sold annually, sales, impact of selling optical media in their way of life and annual new entrant.

The study made use of the descriptive survey method using a self-constructed interview guide/checklist and/or survey questionnaire as data gathering instrument. Primary data were obtained through the use of an interview questionnaire which was personally administered by the researcher. The respondents of the study are the vendors of pirated optical media in selected area in Davao City.

Profile of the Pirated Optical Media Vendors. The respondents of this research study reached 60 in all. Most of the respondents belong to the age bracket of 31 years to 40 years old. It comprises 50 percent of the total number of respondents. Most of the respondents are male and comprises to 60 percent. As to educational attainment, the most number of respondents are high school level which comprises 63 percent. Most of the respondents are married it comprises to 90 percent. All of the respondents are Muslim and there reason being in business is that engaging in selling pirated optical media is easy and fast to earn profit and it comprises 95 percent.

As to years in business there is a minimum of 1 year and a maximum of 7 years with an average of 3.45 years staying in the business. The highest number of new entrants or new players was recorded in 2003. As to nature of business 50 percent of respondent businesses are sole proprietorship and partnership. These businesses have an initial capital of an average of 6,196 pesos and increase in their current capital of an average of 12,429 pesos. Majority or 60 percent of this business are located in the sidewalk and 78.30 percent have transfer location since the start of the business due to easy access. Most of the respondents employed one employee or 72 percent of the total respondents.

Marketing Practices Employed by the Vendors. In product the respondents displayed different

kinds of pirated optical media from movie optical media to music optical media. Pirated movie optical media are classified into four different format these are English movie VCD, DVD format and Filipino VCD, DVD format. Each classification has been categorized into the following children’s/cartoon, drama, comedy, horror/suspense, action/adventure, science fiction, rated film, musical, x-rated and religious. The commonly displayed optical media in English movie VCD format is children’s/cartoon movie while for DVD format are children’s/cartoon, comedy and action/adventure movies; for Filipino VCD format is action/adventure while for DVD format are comedy, horror/suspense and action/adventure. The industry classify music optical media in English and Filipino and further categorized as CD Music, CD Music-MP3, VCD Videoke and DVD Videoke for CD Music media the most commonly displayed. This pirated optical media are commonly purchase within the city with 98 percent and the vendors bought the pirated optical media and majority of the vendors or 93.33 percent bought these products in cash basis.
The pirated movie optical media VCD format is sold with an average of 35 pesos for 1 disc, 65 pesos for 3 disc and 45 pesos for 2 disc while the DVD format it is sold with an average of 85 pesos for 1 movie, 210 pesos for 3 movies and 120 pesos for 2 movies. Majority or 93% of the vendors of pirated optical media are giving discount with an average of 6 pesos discount price.
Ninety percent of the vendors started selling their products in the sidewalk and 61.67 percent currently remained their business location in the sidewalks. Majority or 55.93 percent stayed in the location for two years and a majority or 91.67 percent has no other location aside from their current business. Most or 96.67 percent the vendors of pirated optical media is operating only with two stalls.

In terms of promotion, since this business is illegal in our country vendors could hardly if not no promotion at all on their products. Vendors rely on walk-in potential buyers by “person to person” “contact method”.

Business Performance of Pirated Optical Media Vendors. Comedy, children’s/cartoon, horror/suspense and action/adventure ranks first for the most saleable pirated movie optical media sold annually. As to pirated music optical media CD Music is the most saleable annually.

The highest gross income generated is 290,064 units in 2004. This would indicate that there is an increasing number of buyers patronizing the pirated optical media.

An effort was exerted to ferret information on their profit derived from their business. However, all respondents were reluctant in providing the information needed. In order to present the effects whether beneficial or otherwise in engaging to this business to the vendors, the researcher drafted questions so as to get idea on their economic status. It can be gleamed that most respondents have two dependents. Five respondents sent their dependents to school. Very interesting to note, all respondents said that they relied on selling pirated optical media as the only source of income. Furthermore, majority said that none of their dependents earned income other than selling pirated optical media. Most of the respondents have own properties due to the increase derived from selling pirated optical media, As to properties acquired by the respondents, most of them have acquired house and house appliances again, due to the income derived from selling pirated optical media.

Conclusions

On the basis of the foregoing findings, the following conclusions are drawn:

Pirated optical media industry is dominated by Muslims vendors since this vendor can easily source out pirated optical media. Piracy in our country is growing even if the government has a massive campaign in eradicating this industry, but despite of this campaign seller of pirated optical media still exist and clearly show in the study that there are positive and negative effect of this industry.

Positive effect for the vendors of pirated optical media, most of the vendors of pirated relies their income on sources of income through selling pirated optical media products. Selling pirated optical media is the bread and butter of the vendors and it also shows that through selling pirated products they were able to obtain properties such as house, house appliances and other properties. Also, they were able to send their dependents to school. Vendors selling pirated optical media are keep coming back or keep selling pirated optical media because of the income potential of this business.

Negative effects for selling pirated optical media is the constant apprehension and massive campaign of the government to eradicate this industry, it makes their business not stable and very risky. But with this situation they are faced, this vendor keeps on coming back selling pirated optical media in the sidewalks and outside the mall. Another big effect of selling pirated optical media it reduces the income of among the manufacturers, producers and artist.
Marketing practices of selling pirated optical media commonly applied by the vendors is the return and replaced policy, with this pirated optical media can be returned and replaced if the product is defective. Sellers usual do business in the sidewalks and outside of the mall were there are lots of people that are passing, it is advantage to them to select a best location for their business but also they have to prepare anytime for sudden apprehension by government authorities.

The business performance of selling pirated optical media it shows in their sales and product sold annually, where their sales and product sold yearly is increasing and growing. This pirated industry despite of being illegal is performing well in terms of sales and product sold annually.

Recommendations

Based on the findings and conclusions earlier discussed, the following recommendations are offered:

The vendors of pirated optical media should have proper recordings on all the financial transaction of the business in order to know the financial position of the business.

The manufacturers of original optical media should lessen the cost of production which can lead to lower price which are affordable to the buyers. They should also produce media products which have security protection that cannot be duplicated or hacked.

The government should understand the situation of the vendors of pirated optical media and provide solutions/alternatives for having income. As such, the government can do the following:
a. Give the sellers of pirated optical media livelihood projects that could also earn good income and be able to help sustain their daily needs and wants.
b. The Government should make new policy with regards to the piracy law maybe they should make some exceptions and special provisions for this Piracy Law.

Part III-Methodology

METHODOLOGY

This chapter contains the method used, sources of data, data gathering instruments, the sampling technique, procedure, and the statistical treatment for the study.

Method Used
This study used the descriptive method of research wherein it includes finding out the answers to what, who, when, where, and how questions. The descriptive method was preferred because it is type of research that describes attitudes, perception, characters, activities and situations that a firm encounters in the market (Shao, 2002). This will entail collection of data to answer the concerns involved in the study.

Sources of Data
Primary data were obtained through the use of an interview questionnaire which was personally administered by the researcher. The respondents of the study are the vendors of pirated optical media in Davao City.

Data Gathering Instruments
The researcher prepared an interview questionnaire.
The interview questionnaire consisted of four parts: Part I contain the profile of the vendors selling pirated optical media in terms of age, sex, educational attainment, ethnic affiliation and reasons for being in business. Part II contain the profile of the business in terms of years in business, nature of business, capitalization, location, employment size. Part III contain the marketing practices employed by the vendors in terms of product, price, place and promotion. And, Part IV contain the business performance of pirated optical media vendors in terms of average number of pirated music and movie optical media, sales, profit and annual rate of new entrant.
The survey questionnaires were subjected to test and re-test in order to check their reliability and validity, and was analyzed using the Cronbach Alpha Method. The reliability result is .7610 (Appendix B). This means that the questionnaires were reliable enough to further conduct the study.

Sampling Technique
Complete enumeration was used in this study. All the vendors of optical media products were respondents. There were five locations covered in the study, namely Victoria Plaza, NCCC, San Pedro street, Ilustre Street and Matina Centro sidewalks. Table 1. shows the distribution of respondents.

Table 1. Respondents Selling Pirated Optical Media

Location No. of vendors of Optical Media

Victoria Plaza sidewalk 11
NCCC sidewalk 13
San Pedro Street sidewalk 15

Ilustre Street sidewalk 8
Matina Centro sidewalk 3

Total Respondents 60

Procedure of the Study

To properly conduct the study, the following steps were taken by the researcher

The researcher started his study with the preparation of the interview questionnaire.

The researcher conducted preliminary data on the existing vendors of pirated optical media in Davao City. A Muslim was hired to assist the researcher in administering the interview to the respondents. This was done to get the confidence and cooperation of the vendors whose ethnic group was predominantly Muslim.

The interview questionnaires in the actual survey do not use the word pirated on optical media to be able not to jeopardize the study and to get the cooperation of both respondents. The word pirated might offend the respondent and they might not be cooperative with the survey.
Interview questionnaires were pre-tested using pre and post test techniques to determine the reliability of the study.

After having the reliability results, the researcher conducted personal interviews using the prepared interview guides for vendors of pirated optical media.

Responses are recorded and tabulated.

Researcher interpreted and analyzed the data.

Development of summary, conclusions, and recommendations was made after the data were analyzed and interpreted.


Statistical Treatment

The data on the business performance of pirated optical media products among the vendors in Davao City will be analyzed using the descriptive statistics such as frequency count, average, and percentage.