CHAPTER I

INTRODUCTION

BACKGROUND OF THE STUDY

Tools and goods used in construction and home improvement are often referred to as

hardware products. These can contain tools, paint, housewares, fasteners, hinges, locks, keys,

plumbing, cleaning, and electrical supplies. They can also include power tools, hinges, locks, and

keys. According to Principal Local Environmental Plan, hardware and building supplies means a

building or place the principal purpose of which is the sale or hire of goods or materials, such as

household fixtures, timber, tools, paint, wallpaper, plumbing supplies and the like, that are used

in the construction and maintenance of buildings and adjacent outdoor areas.

Refunding means giving money back, especially when a customer is dissatisfied with the

product or service they received. The management may give you a refund if you claim that the

item you got was defective. You should be entitled to a reimbursement for your expenses when

you don't truly receive what you paid for. Most companies will refund money to dissatisfied

clients, and you'll also get a refund when you return something. According to Insight (2020), The

return of hardware and software purchased is subject to specific manufacturer, publisher or

distributor restrictions. Such suppliers may provide limited or no returns of Products. If the

supplier accepts returns, you may return Product and Insight will assist in its replacement, grant

you a refund or credit against future purchases in an amount equal to the original purchase price

and freight paid for the Product less any applicable restocking fees within 30 days or at Insight’s

sole discretion. You are responsible for shipping charges and risk of loss on all return shipments.

Returns are also subject to the rights of return processes. If you fail to return Product within the

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applicable Return Policy period or if the Product does not meet the rights of return and processes

under this Return Policy, the Product is considered accepted by you and not returnable.

In the situation stated above, researchers are motivated to conduct this study of return and

refund of products of a construction company named Jed Tyrone Construction Supply and

General Merchandise that is located in Sual, Pangasinan. To help and address the effects of

return and refund among all construction company. The researchers observed that customers

experience inconvenience if they return a product or receive a refund for a service after making a

bundle purchase. The default product-service package can be returned by customers using the

direct channel. Contrarily, customers who utilize the retail channel can cancel their subscription

to the retailer's wide range of core services by first receiving a reimbursement for any unused

services, after which the retailer returns the item to the manufacturer

. To sum up, Companies’ return policy was an important factor in purchasing decision.

Therefore having a well-thought-out return policy clearly displayed in your online account is key

to attracting-and keeping- your customers. According to Baker (2020), return policies are critical

to building brand reputation and customer loyalty, but they have to be carefully crafted so they

don’t become burdensome to the company. It’s a conundrum he described as both an opportunity

and a curse. The purpose of this study is to determine whether a rapid refund service can enhance

the hardware businesses and reputation. This study also looks at how the usage of an instant

refund impacts a number of crucial consumer reactions to get a full overview of the outcomes of

utilizing an instant refund service. It is established that a rapid refund service improves other

consumer responses and boosts customer satisfaction with the experience. Instant refunds are not

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significantly connected with stronger product return intentions in terms of potential adverse

effects. These results can aid hardware vendors in determining whether to switch from a

traditional refund option to an instant refund mode.

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STATEMENT OF THE PROBLEM

This study would want to take a closer look at the return and refund policy considering the

significance and effects of it to a Hardware Company. This research study aims to provide a

solution to a specific problem of return and refund policy on Jed Tyrone Construction supply and

General Merchandise in Sual, Pangasinan to the following questions:

Research Question: How have hardware retailers fared since the global pandemic outbreak in

the context of their return and refund policies?

Specific Questions:

1. How to execute refund and return policy in a hardware business?

a) Walk-in.

b) Online Settlement.

c) Booked Reservation.

2. How does refund and return policy affects the business financially?

a) How does it affect small businesses?

b) How does it affect company businesses?

c) Does it benefits to investment personnel?

3. What are the factors that affect return and refund policy on Jed Tyrone Construction

supply and General Merchandise in Sual, Pangasinan?

a) What are the bad consequences of return and refund policy?

b) What are the positive effect of return and refund policy?

c) Does it also benefits the customs?

4. When will it become useful to Jed Tyrone Construction supply and General Merchandise

in Sual, Pangasinan the return and refund policy on their business transaction?

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 a) How will it be in the new normal system

5. What will be the possible consequences for hardware seller if they violated any rights in

return and refund policy?

a) Huge case.

b) Small case.

General Research Objectives

In order to accomplish the following goals and make a recommendation for policy reform,

the researchers' investigation of the variables influencing the return and refund policies of Jed

Tyrone Construction supply and General Merchandise in Sual, Pangasinan had the following

objectives:

1. In order to collect data on the respondents' demographic profile.

a) To see whether there are any important disparities in the respondents' ages.

b) To determine the gender that is most frequently involved in the respondents' chosen

hardware company.

c) To talk about how the respondents' socio-demographic profile affects their area of

business.

d) To analyze the effectiveness of refund and return policies for various user types, such

as full-time sellers, employees, and students.

2. To demonstrate the hardware business return and refund policy.

3. To determine the effect of return and refund policies on the financial capabilities of the

firm.

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4. To ascertain the elements influencing the return and refund policies of particular

hardware business in Pangasinan.

a) To identify the negative effects of the return and refund policy.

b) To gain access to the benefits of return and refund policies.

5. To determine the usefulness of Pangasinan's hardware commercial transactions' return

and refund policies.

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SIGNIFICANCE OF THE STUDY

This study concentrated on the variables influencing the return and refund policies for

particular Pangasinan hardware business. The following could greatly benefit from the research's

findings. This study intended to aid hardware companies who would otherwise encounter poor

customer service, needless returns, and improper handling. This study sought to assist hardware

companies in preventing product returns and may assist them in offering customers a simple and

clear return policy.

Future hardware businesses may benefit from this study by using it to steer clear of pointless

transactions and enhance their sales processes significantly by using a well-designed hardware

shop to lower costs even more or sell more items per transaction. The study's outcomes and

conclusions will essentially enable customers to return subpar items or services along with

instructions to the real business outlet. This will tremendously aid the company in keeping its

clients happy. However, given that transactions in physical locations are time consuming, the

concern is how the return and refund policy would safeguard the commercial interests of certain

hardware business in Pangasinan. Many hardware business owners find it difficult to implement

their refund and return policies. Money, time, and security were all lost. In order to find answers

and shield Pangasinan's online company owners from potential danger related to return and

refund policy, researchers undertook this study.

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 CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents the relevant literature and studies that the researcher considered in

strengthening the importance of the present study, the factors affecting the return and refund

policy of Jed Tyrone Construction supply and General Merchandise in Sual, Pangasinan. It also

presents the synthesis of the art to fully understand the research for better comprehension of the

study. A review of related literature and studies that we have employed in order to build up the

study's substructure.

Inquiry Based Learning (IBL) Strategy is defined by Davis (2018), as a student- centered

learning experience with the instructor serving more as a facilitator or a coach. Students engage

in a wide range of idea but logically ordered and sufficient. Scaffold sequence of problems that

are rich and support inquiry to the heart of big mathematical ideas. The problems may be worked

on alone or in groups, at home, or during the class time. The solutions are discussed in class,

with the students leading both the presentation and the questioning.

JED TYRONE CONSTRUCTION SUPPLY AND GENERAL MERCHANDISE

The construction materials industry is a significant area for wholesale distribution. Suppliers

of the raw materials that construction companies use to construct commercial and residential

properties are included in the construction materials sector. This means that in addition to wood,

lumber, wood paneling, and millwork items, basic materials like brick, stone, concrete, and

cement also belong under this category. Distributors additionally provide insulation, roofing, and
8 Jed Tyrone Construction Supply and General Merchandise
guttering goods. There is a secondary market for related goods for the industry, including

glasswork, wire, and fencing. Because there are so many different items available in the

construction materials sector, it is crucial for wholesale distributors to maintain effective stock

control in order to stay profitable. Due to its complete reliance on building industry

developments, the construction and building materials sector is frequently challenging to

monitor. According to eazystock (2016), a rise in urbanization and expanding industry coupled

with a growing population and economic growth has seen the sector grow considerably. It is

predicted that the global industry in construction supplies will reach US $1.1 trillion by 2020.

Jed Tyrone Construction Company and General Merchandise is a hardware company located

at Lingayen Alaminos Road Sual, Pangasinan, Philippines and started its business on September

10, 2014. They also expand their expertise by delivering their items like concrete hallow blocks ,

sand and gravel, hardwares, electricals, plumbing and paints. And in related to a Martinez family

who resides also at Sual, Pangasinan. And has a exceeding online platform at Facebook

application and has gained over 719 followers.

It is a one-stop shop for premium building supplies, paints, furniture, and a full range of

hardware and accessories. It has been providing devoted service to its clients for eight (8) years,

including homeowners, real estate developers, contractors, engineers, architects, and interior

designers . Jed Tyrone Construction Company and General Merchandise is dedicated to giving

its clients and the general public the best value for their money and is constantly working to

expand the scope of the goods and services it offers.

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RETURN AND REFUND POLICY OF HARDWARES BUSINESSES IN THE WORLD

According to Shopify (2020), Returns, refunds, and exchanges are all a part of doing

business. Just in the United States, Statista estimates return deliveries will cost businesses $550

billion by 2020—a 75.2% increase from four years earlier. Plus, nearly 41% of shoppers buy

with the intent of returning. Customers might be unsatisfied with their order for a number of

reasons—it arrived damaged, they ordered the wrong size, or it simply didn't meet their

expectations. So they ask for a replacement or for their money back. But without a proper system

for handling them, these requests can eat up a lot of time, energy, and money with hours spent on

customer service emails and spikes in shipping expenses for replacement products, especially

after the holidays. The good news is that it’s never too late to address the problem. With a great

return policy and the right system in place, returns and exchanges can be transformed from a

dreaded aspect of commerce into an opportunity that actually generates new profits for your

business and increases customer loyalty.

Asia Electronics says that, all orders are subject to product availability. If an item is not

in stock at the time you place your order, we will notify you and refund you the total amount of

your order, using the original method of payment. Due to current scenarios brought about by the

COVID19 virus pandemic, we are NOT accepting any returns. We will update our Refund

Policies once when the situation is contained or controlled to a major extent. Once our team and

consultants assess and advise us that we can now return to normal, we will update this Refund

Policy accordingly. For your reference, our normal policies on refund is if the goods are returned

within 7 days. If 7 days have gone by since your purchase, unfortunately we can’t offer you a

refund or exchange. In normal cases, to be eligible for a return, your item must be unused and in

the same condition that you received it. It must also be in the original packaging.

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 According to FamilyH (2022), each major retailer has specific return policies. For

instance, The Home Depot allows most new, unopened merchandise to be returned within 90

days of purchase, with some exceptions. For pro customers, it’s even longer. The Home Depot

has a 365-day return policy for purchases made with its consumer credit card, commercial

revolving charge or commercial account.

Lowe’s return policies are similar. Most new, unused materials can be refunded or exchanged

within 90 days of the original purchase date. That time increases to 365 days for purchases made

with a Lowe’s commercial account (LCA), business advantage (LBA), advantage card (LAC) or

business rewards (LBR).

RETURN AND REFUND POLICY OF HARDWARE BUSINESSES IN THE

PHILIPPINES

According to Bultuhan (2022), Customers are entitled to notify the Vendor of any discovered

defects and demand to rectify them within 30 (thirty) calendar days from the moment of the

receiving the Items from the Vendor or the Vendor’s distributor. The only exception are defects

caused by improper handling of the Items by the Customer.

Customers have the right to refuse to take Items and ask for a money refund. In this case the

Items must be returned to the Vendor, and their consumer properties, factory labels, and ready-

for-sale condition are preserved.

To return the Items, you must submit the copy of proof of purchase and to contact our Help

Center.

Customers have the right to report any flaws to the seller and demand that they be fixed

within 30 (thirty) calendar days of the moment they receive the goods from the seller or the

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seller's distributor. The only exception are flaws brought on by the customer handling the items

incorrectly. Customers may decline to accept Items and get a money refund. In this scenario, the

Items must be returned to the vendor while retaining their consumer attributes, manufacturer

labels, and saleable state. You must contact our Help Center and present a copy of your receipt in

order to return the items.

People in the province on Pangasinan find their way to survive in the midst of pandemic

over the past two year by also syncing their business into online platform. Their most convenient

way is to sell their goods in social media especially the facebook app. We have Pangasinan

Hardware Selling Group like the Jed Tyrone Company. Yelp (2022)

RETURN AND REFUND POLICY LAW

CONSUMER RIGHTS

1. The Right to Basic Needs. The right that guarantees survival, adequate food, clothing,

shelter, health care, education and sanitation. You may look forward to the availability of

basic and prime commodities to consumers at affordable prices and of good quality.

2. The Right to Safety. The right to be protected against the marketing of goods or the

provision of services that are hazardous to health and life. You may look forward to (1)

manufacturers of consumer products to undertake extensive safety and performance

testing before selling their products in the market, and (2) labels which contain the proper

information as regards the product, its use and how to operate it, if the need arises, and

also precautions or warning signs.

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3. The Right to Information. The right to be protected against fraudulent/dishonest or

misleading advertising/labelling/promotion and the right to be given the facts and

information needed to make an informed choice. You may look forward to complete

information about the product to be purchased, including its use, ingredients/chemical

contents, precautions, if any, limitations and expiry date.

4. The Right to Choose. The right to choose products at competitive prices with an

assurance of satisfactory quality. You may look forward to a wide array of goods and

services which are offered in the market with diverse brands, sizes, shapes and colors

with differences in the price, quality and use.

5. The Right to Representation. The right to express consumer interests in the making and

execution of government policies. You may look forward to legislators would propose

laws that would ensure that consumers have the chance to live a better life by getting the

best value for their hard-earned peso.

6. The Right to Redress. The right to be compensated for misrepresentation, shoddy goods

or unsatisfactory services. You may look forward to manufacturers/storeowners would

replace defective goods pursuant to the provision “No Return, No Exchange” provided in

the DTI’s Implementing Rules and Regulations of Republic Act 7349, otherwise known

as the Consumer Act of the Philippines.

7. The Right to Consumer Education. The right to acquire the knowledge and skills

necessary to be an informed consumer.You may look forward to:

 The three sectors of society: business, government and consumer would embark

on an information campaign through tri-media on consumer related issues.

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  A series of seminars, conferences, fora, training, and public hearings for the

welfare of the consumers.

 Consumer education being integrated in the school curriculum from elementary to

secondary levels as mandated by R.A. 7394 also known as the Consumer Act of

the Philippines.

8. The Right to a Healthy Environment. The right to live and work in an environment

which is neither threatening nor dangerous, and which permits a life of dignity and well-

being. You may look forward to (1) the government exerting an iron hand regarding the

alarming increase in the degradation of the environment, especially forests, dying

wildlife, depleted land fill space and environmental contamination to prevent further

damage; and (2) constant monitoring of our seas, coral reefs, forest, and waste disposal

practices of factories to check if there is a violation of the laws on environmental

protection.

CONSUMER RESPONSIBILITIES

1. Critical Awareness. The responsibility to be more alert and questioning about the use

and the price and quality of goods and services we use.

2. Action. The responsibility to assert ourselves and act to ensure that we get a fair deal.

Remember that as long as we remain passive consumers, we will continue to be

exploited.

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 3. Social Concern. The responsibility to be aware of the impact of our consumption on

other citizens, especially the poor, exploited, disadvantaged or powerless groups, whether

in the local, national or international community.

4. Environmental Awareness. The responsibility to understand the environmental

consequences of our consumption. We should recognize our individual and social

responsibility to conserve natural resources and protect the earth for future generations.

5. Solidarity. The responsibility to organize together as consumers to develop the strength

and influence to promote and protect our interests.

OTHER FAMOUS CONSTRUCTION SUPPLIES COMPANY IN THE PHILIPPINES

1. TDT Powersteel Corporation

TDT Power Steel values customer satisfaction, and seeking for employees who can

carry our values and morals with competency and discipline. TDT Powersteel is one of

the most reliable and most trusted brands in steel supply and distribution. They aim to

make customers’ name the standard of success in terms of product quality and client

satisfaction. Their goal is to provide premium quality steel products at reasonable

prices and under flexible payment terms that best suit you and your needs. TDTPS

(2022)

2. Rubber and Industrial Construction Philippines

From the moment a customer requests an estimate until they receive their parts,

RICP provide the highest technical expertise in the sector. They would like to supply

you with rubber. They take pleasure in not only providing the greatest rubber products

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 on the market, but also in doing it at the most competitive prices. The unique aspect of

MATLEX is the fact that they constantly keep their customers' budgets in mind. Mr.

Mateo, which was established in 1989, rose to prominence among small business

owners as a manufacturer of specialized rubber items. He chose to launch JIMTER in

2006 as a result of the increased client demand and requests. It could be found in Las

Pinas. The major objective is to supply huge corporations with rubber goods made by

small business owners. JIMTER increased the scope of its services throughout time.

The company began to be exposed to and introduced to large businesses after being

well known among small business owners, and eventually became their reliable

supplier. Numerous large corporations have trusted us and placed numerous orders

from us when we first began doing business with them. JMAT was formed in the year

2019. It was moved to Pag-asa II, Imus Cavite with greater facilities (1,968 square feet

and 3,200 square feet) and better machine technology to cater to large/bulk

manufacturing. Matlex (2022)

3. JOWIE Construction Supplies

The most widely used and cost-effective stainless steel is 304 stainless steel plate.

When exposed to a variety of chemicals, industrial conditions, and marine situations, 304

stainless steel plate offers good corrosion resistance. When worked, 304 stainless plate

may become slightly magnetic, but it cannot be heated. Metalsdepot (2022)

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 SUMMARY

Any company that sells things needs to have a return and refund policy in place. It guarantees

that buyers are fully informed before placing an order for a product and safeguards the supplier

from dishonest clients. 60% of consumers go at a returns policy before making a purchase.

Anything you can do to keep customers during the purchasing process should be a top priority

since cart abandonment is already a prevalent issue for shops.

It's critical to understand what is required by law and what you should cover for the highest

level of customer satisfaction because certain aspects of your returns policy have the power to

make or break a sale.

Your reputation and costs are impacted by how you manage customer returns. Poor return

procedures may lead to unhappy consumers and decreased sales. Additionally, it raises your

labor and reselling costs, such as those associated with repackaging, shipping, and stocking.

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