Modeling consumer demand behavior of Metro Manila households and its implications for marketing management

Date of Publication


Document Type


Degree Name

Doctor of Business Administration

Subject Categories

Economic Theory


Ramon V. Del Rosario College of Business


Management and Organization

Thesis Adviser

Michael M. Alba

Defense Panel Chair

Mario V. Perilla

Defense Panel Member

Rufino S. Mananghaya
Niceto S. Poblador
Jose Ramon G. Albert


This research determines the extent to which the raw data files of a large scale, government sponsored sample survey be used in modeling the consumption pattern and demand behavior of Metro Manila households to draw inferences most useful to marketing managers.To meet such goal, the author undertook econometric analysis of the households budget formation process using augmented Engel curves systems modeling. The main concern is the identification of significant segmentation variables and the generation of reliable market profiles for the sixteen (16) major personal consumption categories which constitute the market basket of Metro Manila households. Sampling design-based statistical analyses were likewise undertaken to supplement the main empirical tool.The study uncovered numerous empirical evidence as to the diversity of needs of households in the Metro Manila which explain why they exhibit differences in their consumption patterns. These needs are reflective of the different characteristics inherent to each household such as--the basic demographic characteristics of the household head, age-specific household composition variables, household type, its purchasing power and its location in the metropolis. These variables were found to exert considerable impact on the household's capacity to allocate its disposable income to its various consumption needs.

Among the conclusions reached after analyzing and digesting all of the results is the propriety of using these household attributes in generating profiles of the most attractive market segments for the different consumption categories. These profiles, together with the elasticity estimates, statistical inference and descriptive analysis results, expectedly have far-reaching implications for marketing management particularly market segmentation analysis, market targeting, advertising copy development, product offering decision-making, and other marketing research functions.The study conclusively determined the feasibility of using the raw data files of a large scale survey of households in undertaking statistical tests of significance and full system econometric modeling. This conclusion has a substantial importance to market research professionals and managers who are looking for cost effective surrogate to their approach in primary data gathering and data analysis. Also the use of Engel curve modeling as a tool in marketing research has been found to be highly feasible. Furthermore, the study showed that the use of survey design adjusted estimation procedure is really necessary in this type of research.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

255 leaves, 28 cm. ; Computer print-out


Consumer behavior; Household surveys; Consumers' preferences; Consumption (Economics); Cost and standard of living; Mathematical models; Households

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