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Asian Journal of Agriculture and Development (AJAD) - Call for papers!

The consumers cooperative: The case of "KPN-UJ," Jember, East Java, Indonesia

(Indonesia), Master of Science in Cooperative Management (University of the Philippines Los Baños)

Thesis Abstract:

This study focused on areas of consumption cooperative, which had contributed to the functionality of KPN-UJ, namely: perception and attitude of members toward the improvement of the cooperative, and level of involvement of the community, which affect the improvement of KPN of consumption cooperatives especially KPN-UJ.

The study was conducted to (1) determine cooperative members’ and nonmembers’ system of purchasing consumer goods, and their perception and attitude toward KPN-UJ; (2) identify some factors that contributed to the continuous operation of KPN-UJ; (3) know the level of involvement of the members in planning, implementation, decision making and other activities; and (4) find out the relationship between and among the members’ characteristics, perception, attitude and level of involvement. Data were gathered through interviews with the Board of Directors and management staff of KPN-UJ. Historical background, memoranda, bylaws and rules of the cooperative association, and other pertinent letters of  instruction were also reviewed.

In terms of members’ participation in buying consumer goods, it was learned from this study that the rate of growth per year was relatively low if based on the number of members coming from the University of Jember (government employees), most of whom were scientists. These members had the purchasing power to buy consumer goods from their KPN-UJ.

Most of the members had high perception and positive attitude toward KPN-UJ, but majority of the members had low level of involvement in KPN-UJ activities especially in purchasing consumer goods. There was high participation in paying dues, attending meetings, and getting loans.

The factors that contributed to the successful operation of KPN-UJ were the members’ understanding about the concept of KPN-UJ and their level of involvement. Involvement was probably the most important factor and this includes their readiness to assume positions and responsibilities, paying dues, attending meetings, planning, participation in decision making, giving suggestions and criticism, requesting KPN-UJ meeting, discussing KPN-UJ matters, and encouraging non-members to join KPN-UJ.

The study indicated that the system of purchasing consumer goods (e.g., kinds of products to be sold, price of goods, and rate of interest charged on consumer goods purchased on installment basis) had relationship with perception, attitude, and involvement of members and non-members. Perception and attitude were found to have significant relationship.