Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

The world is facing the prospect of water shortage caused by the population

growth, uneven supplies of water, pollution, and other factors like contamination of

streams, lakes, underground water, bays, or oceans by substances harmful to living

things. The major water pollutants are chemical, biological or physical materials that

degrade water quality. Water pollution is unavoidable due to trends towards

industrializations, civilization and urbanization which have brought noticeable

degradation. Some waters have been poisoned and polluted beyond recognition.

Filipino opts to drink distilled, purified and mineral water than tap water.

Since tap water invariably contains a variety of poisons such as chlorine, asbestos,

pesticides, fluoride, copper, mercury and lead that can cause disease such as cholera,

diarrhea, typhoid fever and hepatitis A. The best way to remove all these

contaminants is by drinking distilled, purified a mineral water. This is the reason why

water refilling businesses exist.

The necessity of potable water supply has speed up the processed water

industry and the purification of water products. Most of the Water Refilling Stations

are connected to the pipes or use private deep wells for their source of raw water.

The potable water supplied by the providers is then purified by utilizing a

combination of water treatment equipment, such as sediments filters, water softener,

reverse osmosis membranes, ultra-violet lamps and ozone generators. The quality of
 Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This portion presents relevant literature and studies from local researchers and

researchers from other countries from which the initiative to conduct this research has

originated.

Related Literature

Pricing has the big role in business world. Capitalist economies used pricing

system to perform the four basic tasks that any economic system must carry out.

First, pricing system determines what society will produce; consumers indicate what

goods and services they want in the market place; and producers try to meet their

wants. Thus the price system uses the self-interest of the producer to get them to

produce what consumers want. Second, pricing system determines how goods are

produced – the price of resources gives producers an indication of how scarce this

resource is, and how valuable it is in other uses. Third, price system determines who

gets what goods are produced. How much people receive in goods and services

depends on their money income, which in turn is determined under the price system

by the amount of various resources that they own and by the price of each resource.

Lastly, pricing system determines economic growth. A nation’s rate of increase of

per capita income depends on the rate of increase of the efficiency with which they

are used. Considering the rate of growth of society’s resources, the price system

controls the amount of new capital goods produced much as it controls the amount of
 Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This portion presents relevant literature and studies from local researchers and

researchers from other countries from which the initiative to conduct this research has

originated.

Related Literature

Pricing has the big role in business world. Capitalist economies used pricing

system to perform the four basic tasks that any economic system must carry out.

First, pricing system determines what society will produce; consumers indicate what

goods and services they want in the market place; and producers try to meet their

wants. Thus the price system uses the self-interest of the producer to get them to

produce what consumers want. Second, pricing system determines how goods are

produced – the price of resources gives producers an indication of how scarce this

resource is, and how valuable it is in other uses. Third, price system determines who

gets what goods are produced. How much people receive in goods and services

depends on their money income, which in turn is determined under the price system

by the amount of various resources that they own and by the price of each resource.

Lastly, pricing system determines economic growth. A nation’s rate of increase of

per capita income depends on the rate of increase of the efficiency with which they

are used. Considering the rate of growth of society’s resources, the price system

controls the amount of new capital goods produced much as it controls the amount of
 Chapter 3

RESEARCH METHODOLOGY

This chapter presents the methods and procedures used in gathering, analyzing

and interpreting data. It consist the research design, respondents of the study, the

gathering data instrument, research procedure and statistical treatment.

Research Design

The descriptive method of research will be adapted by the researchers that

they found it suitable to the present study of pricing strategy of water refilling

business in the city of Tarlac. As it was defined, descriptive research, also known as

statistical research, describes data and characteristics about the population or facts

that being studied. Descriptive research answers the questions who, what, where,

when and how. The description is used for frequencies, averages and other statistical

calculations. Often the best approach, prior to writing descriptive research, is to

conduct a survey investigation.

The Respondents

The researchers will be gathering data by distributing questionnaires to the

respondents who may be the owner or any authorized and knowledgeable about

the business operations target to be studied. The researchers will also conduct a

semi formal interviews that are pertinent to the study. There are ninety - eight

register Water Refilling Business in the city of Tarlac. Fifteen percent (15%) of this