The Customer Tenure–Satisfaction Paradox in Poverty-‎Sensitive Cooperative Settings: Evidence from The Philippines

  • Authors

    • Gemar G. Perez Batangas State University- The National Engineering University
    • Irene H. Maralit Batangas State University- The National Engineering University
    • Nickie Boy A. Manalo Batangas State University- The National Engineering University
    • Katherine T. Arellano Batangas State University- The National Engineering University
    https://doi.org/10.14419/5acpmv75

    Received date: November 6, 2025

    Accepted date: December 12, 2025

    Published date: December 17, 2025

  • Customer Satisfaction; Cooperative Membership; Feed Mill Industry; Multidimensional Poverty; Tenure-Satisfaction Paradox

  • Abstract

    This study examines the relationship between multidimensional poverty and customer satisfaction among feed mill customers of a Philippine ‎cooperative, with years as a customer serving as a mediating variable. Responding to the need for integrated performance metrics in devel-‎development-oriented enterprises, the study combines customer satisfaction assessment with multidimensional poverty measurement across ‎health, education, livelihood, employment, and social inclusiveness. Data were collected from 3,265 customers, and mediation analysis was ‎employed to examine both direct and indirect relationships among poverty, customer tenure, and satisfaction.‎

    The results show that multidimensional poverty has a significant negative effect on customer satisfaction, while also being positively associated with longer customer tenure. Notably, years as a customer were found to have a significant negative effect on satisfaction. This counter-‎intuitive pattern is conceptualized in this study as the tenure–satisfaction paradox, wherein economically disadvantaged customers remain ‎affiliated with the cooperative for extended periods despite reporting lower satisfaction. Mediation results confirm that customer tenure partially mediates the relationship between poverty and satisfaction, indicating that the influence of poverty on satisfaction is shaped by the ‎duration of customer engagement.‎

    The findings highlight that customer retention and customer satisfaction are related but distinct outcomes in poverty-sensitive cooperative ‎settings. By introducing the tenure–satisfaction paradox, this study contributes to cooperative economics and customer satisfaction literature ‎and offers practical insights for cooperative managers and policymakers seeking to balance service quality, long-term engagement, and inclusive development‎.

  • References

    1. S. Alkire and J. Foster, “Counting and multidimensional poverty measurement,” Journal of Public Economics, vol. 95, no. 7–8, pp. 476–487, 2011, https://doi.org/10.1016/j.jpubeco.2010.11.006.
    2. A. Parasuraman, V. A. Zeithaml, and L. L. Berry, “SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality,” Journal of Retailing, Jan. 1988. [Online]. Available: https://www.researchgate.net/publication/200827786.
    3. J. Birchall and R. Simmons, Co-operatives and Poverty Reduction: Evidence from Sri Lanka and Tanzania. Manchester, U.K.: Cooperative College, 2009.
    4. A. Ibourk and K. El Aynaoui, “Agricultural cooperatives’ sustainability and the relevance of start-up support programs: Evidence from cooperatives’ level in Morocco,” Sustainability, vol. 15, no. 4, p. 3460, 2023, https://doi.org/10.3390/su15043460.
    5. International Cooperative Alliance, “Cooperatives bringing progress against poverty across the world,” 2023. [Online]. Available: https://ica.coop/en/newsroom/news/cooperatives-bringing-progress-against-poverty-across-world.
    6. Philippine Institute for Development Studies, “Role of cooperatives in Philippine development,” Discussion Paper, 2007. [Online]. Available: https://www.econstor.eu/bitstream/10419/127947/1/pids-dps2007-11.pdf.
    7. Cooperative Development Authority, “Cooperative statistics,” 2023. [Online]. Available: https://cda.gov.ph
    8. C. K. Gomathy, “A study on cooperative societies in economic development,” International Journal of Scientific Research in Engineering and Man-agement, vol. 6, no. 3, 2022, https://doi.org/10.55041/IJSREM11905.
    9. C. M. Reyes, A. Tabuga, R. D. Asis, and M. B. G. Datu, “Determinants of multidimensional poverty,” Social Indicators Research, vol. 157, pp. 29–59, 2021. [Online]. Available: https://www.sciencedirect.com/science/article/abs/pii/S2213297X21000021.
    10. Cooperative Annual Report and Customer Satisfaction Survey Instrument, Form Ref. GEN-003, Rev. 08, Feb. 19, 2024.
    11. F. O. Wanyama, P. Develtere, and I. Pollet, “Reinventing the wheel? African cooperatives in a liberalized economic environment,” Annals of Public and Cooperative Economics, vol. 80, no. 3, pp. 361–392, 2009, https://doi.org/10.1111/j.1467-8292.2009.00390.x.
    12. E. Fischer, Cooperative Financial Institutions: Issues in Governance, Regulation, and Supervision. Washington, DC, USA: World Bank, 2025. [Online]. Available: https://documents.worldbank.org.
    13. P. Kotler and K. L. Keller, Marketing Management, 15th ed. Harlow, U.K.: Pearson, 2016.
    14. V. A. Zeithaml, M. J. Bitner, and D. D. Gremler, Services Marketing: Integrating Customer Focus Across the Firm. New York, NY, USA: McGraw-Hill Education, 2023.
    15. M. N. S. Azhari, I. Hasan, and A. Majid, “The role of cooperatives in the Indonesian economy,” International Journal, vol. 6, no. 10, pp. 43–46, 2017. [Online]. Available: https://www.researchgate.net/publication/322143870.
    16. A. D. Santos, J. I. Caasi, A. Gumahong, and M. Ericka, “Accessibility of credit from microfinance institutions for enhancing business performance of existing small enterprises in Quezon City,” 2025.
    17. R. M. Navarro and J. Bacatan, “Analyzing the relationship between service quality and customer satisfaction on power services,” International Journal of Innovative Research in Management and Finance, vol. 9, no. 6, pp. 201–210, 2023.
    18. S. L. Mwakajumilo, The Role of Informal Microfinance Institutions in Saving Mobilization, Investment and Poverty Reduction, Ph.D. dissertation, St. Clements Univ., 2011. [Online]. Available: https://www.scirp.org/reference/referencespapers?referenceid=2998954.
    19. S. Syden and M. Lee, “Development of agricultural cooperative in Cambodia—Lessons from South Korea,” Journal of Agricultural Extension & Community Development, vol. 23, no. 2, pp. 195–210, 2016, https://doi.org/10.12653/jecd.2016.23.2.0195.
    20. M. R. P. Beriales, “Member engagement and level of satisfaction in a revitalized cooperative enterprise in Iloilo Province, Philippines,” Journal of Economics, Management and Agricultural Development, vol. 8, no. 1, Art. no. 5, 2022.
    21. Japan International Cooperation Agency, Women’s Participation and Leadership in Peacebuilding: Mindanao, Philippines, case study report. [Online]. Available: https://openjicareport.jica.go.jp/pdf/12285813.pdf.
    22. N. G. Asiones, “Placemaking cooperation among cooperatives,” Journal of Rural and Community Development, vol. 15, no. 3, pp. 65–78, 2020.
    23. S. Anbu, “Dairy cooperatives and dairy development in India,” Mar. 21, 2020. [Online]. Available: https://www.researchgate.net/publication/340085141.
    24. R. Leao and L. F. Goulao, “Rural development projects in Latin America,” Societies, vol. 14, no. 7, p. 131, 2024, https://doi.org/10.3390/soc14070131.
    25. E. S. Kipai, P. Gudda, and R. George, “Effect of membership size on financial performance of SACCOs,” International Journal of Academic Re-search in Accounting, Finance and Management Sciences, vol. 12, no. 4, 2022, https://doi.org/10.6007/IJARAFMS/v12-i4/15746.
    26. R. Baconguis, “Extension delivery system in a layer and swine-based farming community,” 2007. [Online]. Available: https://www.econstor.eu/bitstream/10419/127947/1/pids-dps2007-11.pdf.
    27. F. Buttle and S. Maklan, Customer Relationship Management, 4th ed. London, U.K.: Routledge, 2019, https://doi.org/10.4324/9781351016551.
    28. R. B. Zajonc, “Attitudinal effects of mere exposure,” Journal of Personality and Social Psychology, 1968. [Online]. Available: https://psycnet.apa.org/record/1968-12019-001.
    29. M. R. Beriales, “Member engagement and level of satisfaction in a revitalized cooperative enterprise,” JEMAD, vol. 8, no. 1, pp. 1–14, 2022. [Online]. Available: https://www.ukdr.uplb.edu.ph.
    30. H. Liao and A. Chuang, “A multilevel investigation of factors influencing employee service performance,” Academy of Management Journal, vol. 47, no. 1, pp. 41–58, 2004, https://doi.org/10.2307/20159559.
    31. B. J. Sugiato, S. Riyadi, and E. Budiarti, “Effects of CRM and service quality on customer retention,” Accounting, vol. 9, no. 2, pp. 85–94, 2023, https://doi.org/10.5267/j.ac.2022.12.004.
    32. E. W. Anderson and M. W. Sullivan, “The antecedents and consequences of customer satisfaction,” Marketing Science, vol. 12, no. 2, pp. 125–143, 1993. [Online]. Available: https://www.jstor.org/stable/184036. https://doi.org/10.1287/mksc.12.2.125.
    33. A. F. Flores, E. S. Saldanha, and M. Vong, “The mediation effect of customer satisfaction,” Timor Leste Journal of Business and Management, vol. 2, pp. 56–65, 2020, https://doi.org/10.51703/bm.v2i2.22.
    34. W. Majee and A. Hoyt, “Building community trust through cooperatives,” Journal of Community Practice, vol. 17, no. 4, pp. 444–463, 2009, https://doi.org/10.1080/10705420903299995.
    35. D. Vecchiato et al., “The role of sensory perception in consumer demand for tinned meat,” Foods, vol. 10, no. 9, p. 2185, 2021, https://doi.org/10.3390/foods10092185.
    36. A. Cholewa-Wójcik and A. Kawecka, “Packaging quality assurance in supply chain,” 2014. [Online]. Available: https://www.researchgate.net/publication/268485962.
    37. A. Choirun, I. Santoso, and R. Astuti, “Sustainability risk management in the agri-food supply chain,” IOP Conf. Series: Earth Environ. Sci., vol. 475, p. 012050, 2020, https://doi.org/10.1088/1755-1315/475/1/012050.
    38. J. L. Sánchez-Navarro et al., “The role of agricultural cooperatives in mitigating opportunism,” Agricultural and Food Economics, vol. 12, no. 1, 2024, https://doi.org/10.1186/s40100-024-00332-8.
    39. T. Mazzarol, G. Soutar, and E. Alexandra, “Member loyalty in cooperative enterprises,” 2012. [Online]. Available: https://www.researchgate.net/publication/235432091.
    40. S. Abualoush et al., “The role of knowledge management process,” Interdisciplinary Journal of Information, Knowledge, and Management, vol. 13, pp. 279–309, 2018, https://doi.org/10.28945/4088.
    41. B. Molina-Flores et al., The Role of Livestock in Food Security, FAO, 2020, https://doi.org/10.4060/ca8385en.
    42. P. Barclay and J. L. Barker, “Greener than thou,” Journal of Environmental Psychology, vol. 72, p. 101441, 2020, https://doi.org/10.1016/j.jenvp.2020.101441.
    43. D. Sambuo, “Co-operatology and the science of cooperative societies,” Journal of Co-operative Organization and Management, vol. 11, no. 1, p. 100190, 2023, https://doi.org/10.1016/j.jcom.2022.100190.
    44. O. Ugo et al., “Improving quality of care in primary health-care facilities,” Health Services Research and Managerial Epidemiology, vol. 3, 2016, https://doi.org/10.1177/2333392816662581.
    45. Department of Economy, Planning, and Development, “PH highlights multidimensional poverty approach,” 2023. [Online]. Available: https://depdev.gov.ph/ph-highlights-multidimensional-poverty-approach-in-alignment-with-uns-2030-agenda/.
    46. A. Orbeta and V. Paqueo, “Who benefits and loses from an untargeted tuition subsidy,” PIDS, 2017. [Online]. Available: https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidspn1703.pdf. https://doi.org/10.62986/pn2017.03.
    47. National Economic and Development Authority, AmBisyon Natin 2040, 2018. [Online]. Available: https://2040.neda.gov.ph/.
    48. Philippine Institute for Development Studies, “Poverty and agriculture in the Philippines,” n.d. [Online]. Available: https://www.pids.gov.ph/publication/discussion-papers.
    49. Habitat for Humanity, Housing Poverty in the Philippines, 2017. [Online]. Available: https://www.habitatforhumanity.org.uk/country/philippines/.
    50. T. T. Tuyet-Hanh et al., “Household trends in access to improved water sources,” Global Health Action, vol. 9, no. 1, p. 29434, 2016, https://doi.org/10.3402/gha.v9.29434.
    51. B. J. Lu, “Poverty, employment in PH – unpacking the contradiction,” Philippine News Agency, 2025. [Online]. Available: https://www.pna.gov.ph/opinion/pieces/1002-poverty-employment-in-ph-unpacking-the-contradiction.
    52. ChildHope Philippines, “Social welfare: How it impacts people’s lives,” 2024. [Online]. Available: https://childhope.org.ph/what-is-social-welfare/.
    53. T. Bernard, A. S. Taffesse, and E. Gabre-Madhin, “Impact of cooperatives on smallholders’ commercialization behavior,” Food Policy, vol. 33, no. 2, pp. 142–153, 2008, https://doi.org/10.1111/j.1574-0862.2008.00324.x.
    54. International Labour Organization, World Social Protection Report 2020–22, 2020. [Online]. Available: https://www.ilo.org/global/publications/books/WCMS_817572/lang--en/index.htm.
    55. G. G. Perez, “Long-Run Drivers of Road Accidents: Governance and Business Implications of Alcohol, Law Enforcement, Infrastructure and Ur-banization,” International Journal of Basic and Applied Sciences, vol. 14, no. 4, pp. 105–112, Aug. 2025, https://doi.org/10.14419/xd5z4p74.
    56. I. H. Maralit, “Entrepreneurial Capability and Ecosystem Synergy: A Strategic Alignment,” International Journal of Basic and Applied Sciences, vol. 14, no. 2, pp. 410–419, Jun. 2025, https://doi.org/10.14419/ab4trb29.

  • Downloads

  • How to Cite

    Perez , G. G. ., Maralit, I. H. ., Manalo, N. B. A. ., & Arellano, K. T. . (2025). The Customer Tenure–Satisfaction Paradox in Poverty-‎Sensitive Cooperative Settings: Evidence from The Philippines. International Journal of Accounting and Economics Studies, 12(8), 571-583. https://doi.org/10.14419/5acpmv75