1

Preferred Strategy of Randomized Crews in Passenger Ships in Calapan Pier in

Terms of Their Contingency, Life, And Medical Investment

Ronel Avila, Kenneth Aldea, Carl Vincent Mangco, Rico Legaspi and Kurt

Aguilon

Southwestern College of Maritime, Business and Technology Inc.

Inquiries, Investigation and Immersion

Mr. Christian Ancen M. Alfaro

(19-04-22)
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Chapter I

THE PROBLEM AND ITS BACKGROUND

Introduction

This chapter includes the introduction, theoretical framework, statement of the

problem, hypothesis, scope and limitation, conceptual framework, significance of the

study and the definition of terms used.

The need to have another source of income has been so rampant to

everyone. It is because the income they get from work isn’t compensated well

resulting to financial problems in the future. Moreover, the increase in the price of the

living is also a factor why there are so many people who have financial problems.

Some people might have decent and high paying jobs, but it doesn’t guarantee them

a financially secured life. Additionally, in these times of pandemic, it really is a

struggle for everyone to get enough resources that would suffice their basic needs.

The financial scarcity of ordinary people of all ages, status and work became quite

alarming to everyone. Because of this, investing and saving became considerations

by the people so that when the need arises again, they would have the capabilities

and resources.

An investment is essentially an asset that is created with the intention of

allowing money to grow. The wealth created can be used for a variety of objectives

such as meeting shortages in income, saving up for retirement, or fulfilling certain

specific obligations such as repayment of loans, payment of tuition fees, or purchase

of other assets. Moreover, investment allows everyone to keep their money secure,

help them grow their money, to earn a steady stream of income, to save up of

retirement and to meet financial goals. Investing is different from saving, as the

former aims to use the money to grow, while the latter is to keep the money for future

use without growth.

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There are varieties of reason why people engage in investing. One primary

reason for engaging in investing is to earn returns. Another reason is to increase

someone’s net worth or wealth. Investing promotes the idea of protecting savings by

means of putting it in products or services that have the ability to grow at faster rate

than that of inflation. Moreover, others consider investing because they want to

secure their future financially when they transition from working to living the life of

leisure. Others invest their money to provide certain income during retirement.

According to Chen (2021), the term investment strategy refers to a set of

principles designed to help an individual investor achieve their financial and

investment goals. This plan is what guides an investor's decisions based on

goals, risk tolerance, and future needs for capital. Investment strategies vary greatly.

One might consider one strategy or the others might not. It depends upon a variety of

factors such as age, goals, lifestyles, financial situations, available capital, personal

situations and expected returns. There isn't a one-size-fits-all approach to investing,

which means there isn't one particular plan that works for everyone. All these factors

are to be considered in order to meet their objectives – long-term and short-term.

In a blog posted at marineinsgiht.com by Kaushik (2019), he discussed that

when seafarers buy shares, land, flat, house, gold or give it to someone for business

as a loan with a promise of share of his profits, the currency immediately changes

form and takes the form of asset that they have purchased. This is called

investment. He further discussed that it should be clear that we have to split our

limited money between savings and investment.

Lamvik (2002), pointed out that it is common among seaman to engage in

different investments which objectives among other things is to improve the

standard of living of the family.

In light with the needs of investing money, the researchers conducted this

study to find out the preferred strategy in business, savings and insurance
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investment strategy of selected passenger ship crews of Calapan pier. The

researchers came up with the idea of conducting the present study because of the

fact that even ship crew members are faced with conflicting financial problems. As

the salary isn’t well compensated with their job, they need to secure an investment

strategy that would help them to meet the demands of the cost of living nowadays.

In this regard, the researchers thought of identifying the preferred investment

strategy of crew members of passenger ships as their basis for planning.

Theoretical Framework

The Profit Theory first proposed by Tindergen (1939) regards profits, in

particular undistributed profits, as a source of internal funds for financing

investments. Moreover, this theory talks about that the investments depend in profits

and profits, in turn, depend on income. Contrariwise, when the profits fall, investment

projects are being cut down.

In relation to the study, the above theory can be implied to that of the wages

of crew members as income. Furthermore, the profits talked in the theory could be

the remaining money from the wages. Crew members would have investments only if

the remaining money could suffice their daily cost of living.

Another theory proposed by J.S. Duesenberry is the Duesenberry’s

Accelerator Theory of Investment. He had based his theory on propositions like gross

investment starts exceeding depreciation when capital stock grows and investment

exceeds savings when income grows.

The same idea goes for the crew members of passenger ships. When the

wages, viewed as capital stocks and income in the theory, the investment plan could

take into action.

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Prospect Theory proposed by Tversky (1979) and Kahneman (1992)

developed it, can also be known as the loss-aversion theory. Prospect Theory states

that people’s perceptions of gain and loss are skewed. That is, people are more

afraid of a loss than they are encouraged by a gain. If people are given a choice of

two different prospects, they will pick the one that they think has less chance of

ending a loss, rather than the one that offers the most gains.

In regards with the study, crew members could also pick an investment

strategy where a loss isn’t guaranteed as well a profitable gain. If they are to choose

from 2 investment, one that has returned 5 percent each year and one that has

returned 12 percent, lost 2.5 percent, and returned 6 percent in the same years, it is

more likely that the 5 percent investment would be picked because an irrational

amount of importance on the single loss was put, while ignoring the gains that are of

a greater magnitude.

Rational Expectations Theory proposed John F. Muth (1961) states that a

person in an economy will act in a way that conforms to what can logically be

expected in the future. This means that a person will invest, save and spend

according to what they rationally believe will happen in the future.

Nobel Laureate economist James Tobin has proposed the Q Theory of

Investment which links a firm’s investment decisions to fluctuations in the stock

market. When a firm finances its capital for investment by issuing shares in the stock

market, its share process reflects the investment decisions of the firm.

The Q Theory of Investment by James Tobin is the most relevant to the aims

of the present study, given that there are considerations to consider when deciding

for investment. Other theories presented consider only how to invest. Thus, making

the Q Theory the most relevant.

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Conceptual Framework

The conceptual framework below shows relationships among variables and

how they relate to the research study. The single headed arrow connecting the

independent variable to dependent variable shows that the dependent variable is

affected by the independent variable. Meanwhile, the broken line connected by the

two variables to the output shows that the relationship of the two variables would

come up to a certain output.

Figure 1. Conceptual Model of Preferred Investment Strategy of Selected Crews of

Passenger Ships in Calapan Pier.

IV DV

Common Investment Strategies

Randomized Crews of 1. Business

Passenger Ships in Calapan Pier 2. Savings

3. Insurance

Output

Preferred Strategy

Statement of the Problem

This research aims to determine the preferred strategy of randomized crews

in passenger ship in Calapan pier. Specifically, it seeks to answer the following

question:

1. What are the most common investment strategies among crews in

passenger ships in Calapan pier?

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2. What are the insights of randomized ship crews in Calapan pier in terms of;

a. business investment?

b. savings investment? And

c. insurance investment?

3. What are the preferred investment strategies of crews in passenger ships

in Calapan pier?

Significance of the Study

Too many people are being faced with financial problems and security. They

found it hard coping up with the demand of the cost of living without proper use of

money. With the help of investment strategies, people will have options on how they

can invest their money to attain financial security.

The current seamen or crews in ship and also investors will benefit from the

study because they will be guided whether they can achieve a lot through investing

strategy, which is important in the present times. More importantly, they will truly

benefit as they can reflect and realize how effective is investing strategies are.

Scope and Delimitation

This study will concentrate on the preferred strategy of randomized crews in

passenger ships in Calapan Pier. Moreover, the study will also determine the

common investment strategy, limited only to business, savings and insurance, of the

randomized crews in passenger ships in Calapan pier. The population of the

respondents will be consisting of the Crews in passenger ships in Calapan Pier. This

will cover a quota of 50 respondents. This research project will be conducted during

the first semester of school year 2021-2022. The tool that will be utilized for data

collection will be a survey questionnaire.

Definition of terms:
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Ships – a vessel larger than a boat for transporting people of goods by sea.

Passenger – A traveler on public or private conveyance

Calapan Pier – (pantalan ng Calapan of the Calapan base Port.)

Crews – A group of people who work and operate the ship, bout, aircrafts.

Contingency – A future or circumstances that is possible but cannot be predicted.

Medical investment – despite the overall outlook for healthcare.

Researcher – A person who give a response or answer to question that is asked

especially as a part of a survey.

Investment - asset that is created with the intention of allowing money to grow.

Investment Strategy - strategy refers to a set of principles designed to help an

individual investor achieve their financial and investment goals.

Insurance – a practice or arrangement by which a company or government agency

provides a guarantee of compensation for specified loss, damage, illness or death in

return for payment of a premium.

Savings – the money one has saved, especially through a bank or investment plan

Business – the practice or making one’s living by engaging in commerce

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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

Introduction

The chapter explores the literature and studies that focuses on the area of

investment strategies in terms of contingency, life and medical investment. The

chapter begins by defining what investment strategies are and the two main type of

investment strategy. It then dwells with the different literature and studies both in

local and foreign about the contingency investments, life investments and medical

investments.

Foreign Literature

Thune (2021) in his journal stated that investing is important due to the nature

of inflation. The cash that you have today might not be worth as much in a year—and

it will be worth much less in 30 years. If you don't have an investment strategy that

can at least beat the rate of inflation, then you're simply throwing money away.

Moreover, choosing an investment style is no different from choosing investments.

Each investor is unique. The best strategy is the one that works best for your

objectives and tolerance for risk.

In an essay by Kumok (2022), he gave a great emphasis on the importance of

knowing that the allocation strategy you use in your 20s and 30s won't work when

you're close to (or in) retirement. Investing for retirement is important at any age, but

the same strategy should not be used for every stage of your life.

It is said that if your investments aren’t yielding the returns, you hoped they

would, you might be tempted to sell them and reinvest elsewhere. If things are going

well, you may want to cash out and move on to the next investment. While changing
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strategies can be a good idea, it’s better to base those decisions on analysis and in

the context of your long-term investment plan rather than on speculation or instinct

(“When to consider changing investment strategies”, 2021)

Taylor (2021), in his essay entitled “Investment Strategies to Learn Before

Trading” stated that the best thing about investing strategies is that they’re flexible. If

you choose one and it doesn’t suit your risk tolerance or schedule, you can certainly

make changes. But be forewarned: doing so can be expensive. Every purchase

carries a fee. 

In an article, that is published online, it was stated that your investment

strategy is like your game plan to building your portfolio. But it is very important that

you find the one that's right for your objectives and situation in life (“Investment

Strategies: How to Choose the Right Strategy for You”, n.d). Investing your money

without an investment strategy is like a football team going into a game without a

playbook. Although investment strategies are not required, they significantly improve

your chances of winning. Creating an investment strategy should be your number 2

step after you learn some of the basics of investing in the stock market.

Local Literature

In an online personal blog titled “Investments for Beginners: Find the Right

Investment for You” (2021), revealed that many people use the term “investment”

rather loosely for a number of things, despite not completely understanding

investments for beginners. A newly bought BMW can be labeled as an investment.

Buying MAC Cosmetics instead of a local brand is often considered an investment in

quality makeup. You might even be guilty of “investing” in the latest mobile phone.

With these labels, there’s a fine line between investing and splurging. But by learning

about the real meaning of investment, you can figure out exactly when a purchase

becomes an investment. An investment is an asset or item that is purchased with the

hope that it will generate income or will appreciate in the future

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In another blog “Investment strategies: how to pick one that’s right for you”

(2021), it stated that investment strategies are a way to invest your money that meets

your goals for what you intend to achieve or save for. At the end of the day, it’s about

laying out a plan so you can invest your money wisely, realistically, and purposefully

to reach the financial goals that are important to you.

Ong, (2016) columnist of Inquirer.net, said that there are different kinds of

investment strategies that cater to different types of personalities. Every strategy is

unique in itself which presents certain level of risk that is acceptable to the investor.

Some people may be advising you to wait for stocks to become cheap before buying

again because they are the conservative type. Some may tell you to take more risks

and buy stocks even at all-time high prices because they are more aggressive.

Robinsons Bank (n.d) revealed that one of the biggest components of

establishing financial security is having a good portfolio of investments that you can

rely on to grow your hard-earned cash. An investment, in a nutshell, is the

commitment to allocate funds to an asset or capital with the expectation of future

returns or profit. These days, there are numerous investment opportunities available

to Filipinos who are young, living life in the fast lane, and have high tolerance for

many of the risks involved in investing. Such individuals can very easily decide to

park a good portion of their money in high-risk equity mutual funds or to play the

numbers and invest directly in individual stocks offered by companies listed in the

Philippine Stock Exchange.

Foreign Studies

Jones, (2009) defines investment strategy as a set of rules or procedures that

guide an investor’s selection of an investment portfolio. The strategy is designed

around the investor’s risk-return trade off. An investment strategy that is well-planned
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is necessary before making an investment decision. There are two main investment

strategies: passive investments and active investments.

Ferri (2009) states that passive strategies are the strategies that are used to

minimize transaction costs. It entails tracking of market without attempting to

anticipate its evolution. An assumption 9 is made that the financial markets are

perfectly efficient and they immediately integrate all information that is needed to

influence prices of investments.

According to Jones (2009), one of the effective passive investment strategies

is the buy-and-hold investing. Buy and hold strategy is a long-term investments

strategy whereby an investor holds an investment for the long haul in the hope that in

the long run the investment will give a better rate of return. This strategy is beneficial

for small investors. In a situation where the investment is a real estate, the holding

period could span into a mortgage. The main advantage of the passive investment

strategy it has lower operating costs.

Song (2020), found out in her research that when the market enters the

effective stage, passive strategy is economical and ideal and when the market is

inefficient, aggressive strategy could bring extra return.

In the study by Richardson (2016) revealed that investment in public health

has the potential to deliver improved health outcomes. However, she also found out

that there are recognized barriers to investing in public health.  These barriers

include the greater requirements for cost-effectiveness sometimes placed on public

health interventions, the belief that in the long run prevention may cost more than

treatment, the timeframes required for some public health interventions, the

‘identifiable victim effect’, the influence of interest groups, and the reality that

evidence alone does not drive health policy.

Mutswenje (2009) conducted a survey of the factors influencing investment

decisions by taking the case of individual investors at the NSE. The author concluded
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that personal factors such as gender, income status, level of education, level of

experience with stock market, the characteristics of the securities, and the investor

needs influenced the investment decision.

Local Studies

Celestial (2019) stated that the excitement of having a hefty paycheck every

month and the notion that they can buy anything they want to have something to

update in their social media accounts seems getting in the way of planning for their

own financial future. Accordingly, Mendoza (2017), when asked why Filipinos do not

like to invest, said that it is because of the attitude and behavior. Delayed

gratification, according to him, is not easy for Filipinos. Additionally, Wolff (2017)

discussed that media and advertising focuses too much on fast moving consumer

goods and beauty products, unlike places like Singapore and United Kingdom where

there is so much awareness and advertising related to investing in financial

intermediaries like pension funds, insurance company and mutual funds.

In the study by Obreta, Jr. (2006), he found out that at the household level,

additional children will expose more families to the risk of income shortfalls and much

more so for poorer households. They also deprive households of the prospect of

exploiting investment opportunities that come their way. At the aggregate level,

additional children contribute to the reduction in saving rates, further depressing the

already low saving rate of the country.

In another study by Abutin (2018), it was found out that there is a significant

relationship between savings and investment behavior among the military personnel

in the Philippine Army. These are directly influenced by gender, age, pay scale, and

their level of consumption.

Synthesis
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There are different factors to consider when you find your preferred

investment strategies. These factors include the gender, age, pay scale, and their

level of consumption. Moreover, these studies and literatures revealed how important

having a good and stable investment strategy.  There might be barriers such as the

behavior and outlook of people in delayed gratification but at the end of the day, it's

about laying out a plan so you can invest your money wisely, realistically, and

purposefully to reach the financial goals that are important to you. Every strategy is

unique in itself which presents certain level of risk that is acceptable to the investor.

Consequently, investing your money without an investment strategy is like a football

team going into a game without a playbook.

Although investment strategies are not required, they significantly improve

your chances of winning. Investment strategies should not be picked with whatever

you feel would give you more returns but it should be based on your personality and

the way you invest. Just because there are different investment strategies up in our

sleeves doesn’t mean it suits us. We still have to consider different factors when

choosing the right investment strategy for us. After all, changing your investment

strategy might seem like an easy job but, it carries a lot of expensiveness and fee.
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CHAPTER 3

METHODOLOGY

This chapter reveals the

methods of research to be
employed by the researcher
in conducting the study
which includes the research
design, population of the
study,
research instrument and its
development establishing its
validity and reliability, data
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gathering procedures, and

the appropriate statistical
treatment of data
This chapter reveals the
methods of research to be
employed by the researcher
in conducting the study
which includes the research
design, population of the
study,
research instrument and its
development establishing its
validity and reliability, data
gathering procedures, and
the appropriate statistical
treatment of data
This chapter reveals the methods of research to be employed by the

researcher in conducting the study which includes the research design, population of
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the study, research instrument and its development establishing its validity and

reliability, and data gathering procedures.

Research Design

his study was made by the

means of quantitative
methods of researcher. The
researcher attempted to get
the answers to the
aforementioned problem
and to justify
and satisfy the objectives of
the study.
his study was made by the
means of quantitative
methods of researcher. The
researcher attempted to get
the answers to the
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aforementioned problem
and to justify
and satisfy the objectives of
the study. This study will be made by the means of quantitative methods of researcher.

The researchers will attempt to get the answers to the aforementioned problem and

to justify and satisfy the objectives of the study.

Respondents of the Study

The respondent of this study will be composed of passenger ship crews in

Calapan City pier. One of the vital processes to keep this study successful.

All of these participants will be selected through random sampling. This

sampling method will be conducted where each member of a population has a

capability to become part of the sample.

The chosen respondents for this study will be the 50 passenger ship crews

that will be randomly selected.

Sample and Sampling Technique

A stratified random sampling procedure will be used for selecting the

participants in this study. This technique was employed to ensure a fairly equal

representation of the variables for the study. The stratification will be based on the

passenger ship crews in Calapan pier in terms of gender, age and job role to achieve

a positive margin of error. A copy of the lists of ship crews will be asked for each ship

and will be numbered. Through systematic random sampling, the first 50 numbers in

the chosen interval will be the participants of the study.

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Research Instrument

The survey-questionnaire will be used as the main data-gathering

instrument. The instrument that will be prepared will focus on answering the

statement of the problem – the preferred strategy of randomized passenger ship

crews in Calapan pier. The questionnaires will be composed five (5) questions for

each investment strategy – business investment strategy, savings investment

strategy, and insurance investment strategy.

Statistical Treatment of the Data

To analyze and interpret the data that will be gathered in this study, the

researchers will employ the following statistical procedure:

1. Frequency, percentage and ranking

With this statistical procedure, the researchers will easily tally the data that

will be gathered. The percentage and ranking will be a big help to the analysis of

data.

2. Cross-Tabulation Charts and Graph

With this method, the researchers will be able to compare the answers of the

respondents, as a whole, from each segment.

CHAPTER 4
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PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the results, the analysis and interpretation of data

gathered from the answers to the questionnaires distributed to the field. The said

data were presented in tabular form in accordance to the preferred investment

strategy on passenger ship crews in Calapan City port.

Strongly Strongly
  Agree Neither Disagree
Agree Disagree
 Business Investment Strategy          
1. I am interested in investing my
money in this kind of investment 54% 42% 4% 0% 0%
whatever the loss or gain from it.
2. I want to keep my money I have
invested safe from short-term losses
40% 56% 4% 0% 0%
or readily available for short-term
needs.
3. I want to generate a steady stream
of income from my investments and I
54% 40% 6% 0% 0%
am less concerned about growing the
value of my investments.
4. I want to generate long-term growth
46% 52% 2% 0% 0%
from my investments.
5. You consider the information from
your close friends and relatives as the
40% 60% 0% 0% 0%
reliable reference for your investment
decisions.
Table 1. Business Investment Strategy
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Figure 1. Graph of Responses of Respondents in Business Investment Strategy

Business Investment Strategy

Strongly
Disagree

Disagree

Neither

Agree

Strongly Agree

0% 10% 20% 30% 40% 50% 60% 70%

Question 5 Question 4 Question 3 Question 2 Question 1

In the above table and figure, it can be noted that 46.8 percent of the total

respondents had strongly agreed on the questions related to business investment

strategy, 50 percent agreed, 43.2 percent are neutral, while 0 percent were gathered

both from disagree and strongly disagree.

Table 2. Savings Investment Strategy

Strongly Strongly
  Agree Neither Disagree
Agree Disagree
Savings Investment Strategy          
1. I am interested in investing my
money in this kind of investment 2% 2% 38% 58% 0%
whatever the loss or gain from it.
2. I want to keep my money I have
invested safe from short-term losses
4% 4% 54% 40% 0%
or readily available for short-term
needs.
3. I want to generate a steady stream
of income from my investments and I
4% 0% 46% 50% 0%
am less concerned about growing the
value of my investments.
4. I want to generate long-term growth
2% 2% 46% 50% 0%
from my investments.
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5. You consider the information from

your close friends and relatives as the
0% 6% 42% 52% 0%
reliable reference for your investment
decisions.

Figure 2. Graph of Responses of Respondents in Savings Investment Strategy

Savings Investment Strategy

Strongly
Disagree

Disagree

Neither

Agree

Strongly Agree

0% 10% 20% 30% 40% 50% 60% 70%

Question 5 Question 4 Question 3 Question 2 Question 1

Table 2 and Figure 2 show the attitudinal behavior of respondents towards savings

investment strategy. Half of the respondents had disagreed on the idea of investing

their money in savings. While on the other hand, 45.2 percent of the total population

were still undecided whether or not they will invest their money. The remaining

percentage of the population expressed their willingness to invest their money in

savings.

Table 3. Insurance Investment Strategy

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Strongly Strongly
  Agree Neither Disagree
Agree Disagree
Insurance Investment Strategy          
1. I am interested in investing my
money in this kind of investment 0% 0% 30% 64% 6%
whatever the loss or gain from it.
2. I want to keep my money I have
invested safe from short-term losses
0% 0% 22% 78% 0
or readily available for short-term
needs.
3. I want to generate a steady stream
of income from my investments and I
0% 2% 20% 62% 16%
am less concerned about growing the
value of my investments.
4. I want to generate long-term growth
0% 0% 20% 72% 8%
from my investments.
5. You consider the information from
your close friends and relatives as the
0% 0% 28% 50% 12%
reliable reference for your investment
decisions.

Figure 3. Graph of Responses of Respondents in Insurance Investment Strategy

Insurance Investment Strategy

Strongly
Disagree

Disagree

Neither

Agree

Strongly Agree

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Question 5 Question 4 Question 3 Question 2 Question 1

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The above table and graph show that a total of 65.2 percent and 8.4 percent

expressed their disagreement and strong disagreement towards insurance

investment, respectively. While 24 percent were still undecided about investing

money via insurance.

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CHAPTER 5

CONCLUSION AND RECOMMENDATION

Conclusion

The findings of the study revealed that the crews of passenger ships in

Calapan City port are more likely to have the business investment strategy as their

preferred investment strategy. The findings supported the ideals of Mendoza (2017),

when asked why Filipinos do not like to invest, said that it is because of the attitude

and behavior. Delayed gratification, according to him, is not easy for Filipinos.

Respondents are more likely to invest their money in business as delayed

gratification is not an issue. It can be further explained by the results gained from

question no. 3 (3. I want to generate a steady stream of income from my investments

and I am less concerned about growing the value of my investments) of business

investment strategy where it got a 54% of the total number of respondents.

On the other hand, 58 percent and 64 percent of the respondents disagreed

on investing money that doesn’t guarantee a specific gain and a possible loss on

investment.

Moreover, the Q Theory of Investment validated the result of the study.

Respondents had considered different considerations when deciding the preferred

investment strategy.

The findings of the study also revealed that ship crews of passenger ships in

Calapan pier are more focused on investing money in business investment with a

guarantee of return and a low possible risk.

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Recommendation

The results of the study have contributed to understanding that the preferred

investment strategy of crews of passenger ships of Calapan pier is business

investment strategy. Recommendations from the results and conclusions drawn from

this study serve as guidelines for ship crew members in deciding what investment

strategy they will use according to their preference. The main recommendation is

that, plan a investment portfolio aligned with the interest and preference.

For future researchers, it is recommended to venture into different subject of

research to further validate the findings of the study. Moreover, it will help determine

other investment strategy preferred by other subjects