Factors Affecting Product Standards Compliance of Business Establishments

Roniel  Macatol,

Factors Affecting Product Standards Compliance of Business Establishments

Abstract:

This study investigated factors influencing product standards compliance among business establishments in a Philippine province, employing a descriptive research method. Quantitative data from DTI records profiled 22 business owners with reported violations, while a self-made questionnaire and Key Informant Interviews explored their "lessons learned." Findings revealed that most violators were micro to small sole proprietorships (64%), with a high proportion (91%) operating for more than 5 years. They predominantly traded in high-risk categories, such as electrical supplies (39%), electronic appliances (23%), and construction materials (20%). While most fines were modest (47% between PHP1,000 and PHP5,000), 77% of the offenders were first-time offenders, highlighting the need for preventive measures. Following the violation, businesses demonstrated a substantial shift towards prioritizing product and supplier quality (weighted means: 4.45 for products and 4.73 for suppliers), trusted brands/suppliers (weighted means: 4.36 for brands and 4.59 for suppliers), and rigorous checking of products upon delivery (weighted mean: 4.77). DTI interventions, particularly updated information materials (4.27) and product standard exhibits (4.23), were highly valued, underscoring the critical role of accessible and practical information. The data further indicated that cooperation during investigations often influenced lower penalties, and businesses preferred fines based on the value of non-compliant products (3.77), the risk to public health and safety (3.73), and the number of previous offenses (3.59). The study recommends tailored information dissemination, a risk-based enforcement approach focused on high-risk product categories, and strengthening the DTI's developmental and educational initiatives to foster sustained compliance among SMEs.

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