A study on the factors affecting the payment behavior of the commercial road transport fleet card clients of Pilipinas Shell Petroleum Corporation
Date of Publication
2006
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Commerce Major in Business Management with Applied Corporate Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Business Management
Abstract/Summary
The proponents of the study aimed to identify factors affecting payment behavior and to analyze the extent of the relationship between payment behavior and client profile among Commercial Road Transport (CRT) clients of Pilipinas Shell Petroleum Corporation. Accompanying results of this study aim to prevent acceptance of new clients that will most likely contribute to significant overdue payments without discriminating other payment behavior factors to be identified in the study. In effect, the company can increase future recovery rate, which produces greater contribution margin and therefore increase shareholder value for Shell. Payment behavior was classified into four types namely ideal, good, bad and worst behavior in accordance to Shell’s standards of payment behavior classification and Credit and Collection Policy manual governing CRT. The proponents also used Ordered Logistic Regression utilized in the Stata version 8, statistical software and undertook purposive sampling, which resulted to 80 sample road transport companies. Furthermore, the Logistic Regression statistical approach yielded factors such as credit period, credit limit, credit exposure, credit score and age of the company as the factors significantly affecting payment behavior. Proponent’s conclusion includes that factors identified with significant influence on payment behavior should be closely monitored in order to prevent problems in credits and collection activities that result to high overdue payments. These factors should be given more consideration before admitting potential clients. Conflicting interest between aggressive marketing strategy and collection activities should be resolved by conducting a cost-benefit analysis of incremental income versus additional bad debts and credit costs. Further, it is recommended that early symptoms of worst payment behavior type should be instantly identified and actively resolved collectively by credit and collection officers and CRT account manager to prevent lower recovery rates which lessens the company’s contribution margin.
Abstract Format
html
Language
English
Format
Accession Number
TU13345; CDTU013345
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
193 numb. leaves ; + 1 computer optical disc.
Recommended Citation
Cordero, M. F., Enriquez, M. E., Ong, M. B., & Wee, D. C. (2006). A study on the factors affecting the payment behavior of the commercial road transport fleet card clients of Pilipinas Shell Petroleum Corporation. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/17413
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