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COLLEGE OF ST.

CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

MARKETABILITY OF SELECTED CONVENIENCE STORE IN


SELECTED AREAS IN QUEZON CITY AS
PERCEIVED BY CUSTOMER

A thesis presented to the faculty of


College of St. Catherine
Quezon City

In partial fulfillment of the Requirements for the


Bachelor of Science in Business Administration
Major in Marketing Management

Geralyn Jumaylab
Jennifer Pedralvez
Ina Rempillo
Wendy Sebastian
March 2016

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Chapter 1
THE PROBLEM AND ITS BACKGROUND
A Convenience store, c-store, small grocery, warehouse, mini
market or corner shop/store is a small store that stocks a range of
everyday items such as groceries, snack foods, candy, soft drinks,
cigarettes, newspaper and etc., such stores may also offer money order
and wire transfer services. In some jurisdictions, corner stores are
licensed to sell alcohol, typical beer and wine. They differ from general
stores and village shops in that they are not in a rural location and are
used as a convenient supplement to larger store.
Convenient stores has ten very popular crime target, notably
shoplifting and robbery. Convenient store have their plans on establishing
special task forces through the help of the authorities. In America, every
convenience stores are often been targeted through armed robbery.
In some areas of the United States, it is unusual for store clerks to
be working with armed bulletproof glass and windows, or even during
daylight hours. Some convenient stores

may even limit their access

inside at night or at wee hours, which requires every customers to


approach through a walk-up window for this situation in making
purchases. The main dangers are that almost all convenience stores may

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

have only one person working in night shift mode. Most of the transaction
are in cash value and easy resold merchandise like liquor, lottery tickets,
and cigarettes on the site.
The reasons for the higher rate of the crime at convenience stores
may be attribute to various factors including, (a) the small number of
employees per store makes it difficult to stop or to prevent criminals (b)
the extended hours of many convenience stores present

more

opportunities when some customers and (c) the smaller size makes it
easy for criminals to quickly navigate the plan and enter and exit close to
the cash register of the stores. Most of the convenience store have
installed security cameras to help to detect robberies and shoplifting. All
convenience stores have a friendly relationship with the local police.
Since retail landscape and consumers shopping pattern are
developed in nature, changing following trends are also happening around
the world that remains a need for studying consumers behavior. With this
growth in disposable incomes and improving infrastructure
Convenience stores usually charge significantly higher prices than
conventional grocery stores or supermarkets. A convenience stores order
smaller quantities of inventory at higher per-unit prices from wholesalers
but their products are just the same products in other stores. The main

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

concern of this study is why do customers still patronizing convenience


stores even the prices are more expensive and even they have a wider
choice of stores where they can choose to shop which follows the
suggested retail price (SRP) on every product.

STATEMENT OF THE PROBLEM

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

1. What is the profile of the customers in terms of:


1.1 gender ;
1.2 civil status ; and
1.3 age ?
2. What is the level of satisfaction of the customers in terms of;
2.1 accessibility ;
2.2 safety ; and
2.3 convenience ?
3. What are the reasons why customers prefer to buy in the convenience
store?
4. How do customers perceived the marketability of a convenience store
in terms of:
4.1 price of the product ;
4.2 quality of the product ;
4.3 service rendered by the crews to customers ?
5. What are the marketing strategies used by the convenience stores?

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

ASSUMPTION
The following assumption were posed for this study:
1. There are reasons why people prefer to buy in convenience store.
2. There are different marketing strategies employed by the convenience
store.
3. The customers have different perception on the different aspect of
marketability of a convenience store.
SIGNIFICANCE OF THE STUDY
This study is identified to be beneficial to the following:
To the first time business owners. This study can help them to
gain more knowledge in dealing with different consequences as they
manage their business.
To the customers. This study can help those who are also curious
about the marketability and the marketing strategy on how the owners
handle their business.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

To the marketing students. This study can help as a reference


and they can get information from the result of this research. They also
get some ideas which is relevant to their topic or study.
To the future researchers. They can use this as their reference in
creating their own research. This may contain some ideas which is
relevant to their study.
SCOPE AND DELIMITATION
This research was conducted to be able to know the marketability
of selected convenience store in selected areas in Quezon City. The
researchers conducted this study in two selected convenience stores in
selected areas in Quezon City such as Novaliches and Fairview, which is
the 7-Eleven and the Ministop which operates 24 hours and 7 days a
week. Those branches who are not operating 24 hours and 7 days a week
are not included as respondent in the study.

DEFINITION OF KEY TERMS


The following terms were defined within the context of the study:
1. Accessibility

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Extent to which a consumer or user can obtain a good or service at


the time it is needed.
2. Commodity
A reasonably interchangeable good or material, bought and sold
freely as an article of commerce.
3. Convenience goods
Refers to the products such as snacks, liquors, candies, cigarettes
and etc.
4. Convenience Store
Sells convenience goods, and opens usually from early hours to
late at night
5. Competitiveness
To the ability and performance of a firm, sub-sector or country to
sell and supply goods and services in a given market,
6. Extrinsic Cue
Cues external to the product, such as price, store image, or brand
image, which serve to influence the consumers perception of a products
quality.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

7. Franchise
An alternative to building "chain stores" to distribute goods that

avoids the investments and liability of a chain.


8. Intrinsic Cue
Physical characteristics of the product (such as size, color, flavor,
or aroma) that serve to influence the consumers perceptions of product
quality.
9. Inventory
An itemized catalog or list of tangible goods or property.
10. Market

An actual or nominal place where forces of demand and supply


operate, and where buyers and sellers interact.
11. Marketability
A measure of the ability of a product to be bought and sold.
12. Marketing Strategy
An organization's strategy that combines all of its marketing
goals into one comprehensive plan.

13. Merchandise

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Household,

personal

use,

or

commercial

goods,

wares,

commodities, bought and sold in wholesale and retails.


14. Retailers
A business or person that sells goods to the consumer, as
opposed to a wholesaler or supplier, who normally sell their goods to
another business.

Chapter 2
REVIEW RELATED LITERATURE AND STUDY
This chapter aims to provide literature and studies related to their
researchers study. Books, magazines, journals and even Internet have

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

been used. The researcher tried to find out the relevant issues and
information necessary for the current study.
This section presents both foreign and local related literatures
relevant to the study. This relevance is shown by the proponents in order
to give more reason and understanding of the proposition.

LITERATURE
Related local and foreign literatures that are relevant to this study
were included in this chapter.

Local. 7-Eleven is the largest convenience store chain in the


country.It is run by the Philippine Seven Corporation (PSC). Its first store
located in Quezon City opened in 1948. Its branches are now
approximately 1400. Branches of Ministop operated by the Robinsons
Convenience Stores Inc.; and Family Mart operated and franchised by the
joint partnership of Ayala corporation and Rustans which are one of the
largest shopping mall operators in the Philippines.
We anticipate this trend in the convenience store segment to
persist in the advent of past-paced and more demanding lifestyles of

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

consumers said Lourder Deocareza, the new business development


head for Kantar World panel.
Based on Nielsens shoppers trends report, as cities and urban
centers in the Philippine countries to expand in the next 10 year,
convenience - driven lifestyle will wield a strong influence on Filipinos
shopping habits and way of life.
This is becoming a precious commodity and to cope, consumers
are looking and willing to spend for products and service which provide
convenience Navalta said a Nielsens shopper insights leader in the
Philippines.
Among retail channels, convenience stores saw the most rapid
expansion at 8% , with a store count of 2,900 compared to about 1,000
stores in 2011, Nielsen reported.
There is a growing number of convenience stores, following their
rising popularity among consumers. Key players like 7-Eleven and
Ministop which have one to two check-out counters and are operational
24 hrs a day have stimulated this solid growth as they have started to
expand their footprint into the provinces.
An Maybank ATR Kim Eng titled Asean corporate insight reported
that Philippine Seven Corporation of 7-Eleven, would continue to be the

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

leader in the industry 1282 outlets that delivered P17.1 million revenues
and P20.6 billion sales last year (2015).
According to the Press release of the countys largest convenience
store operator, Philippine seven corporation grew its net profit last year by
27.9 percent to P873.3 million on the back of improved operating margin
and continued store expansion.

For year 2015, PSC - The local license

of 7-Eleven convenience store in the Philippines will increase its capital


expenditure budget by more than 50 percent to 3 billion to support its
accelerated store expansion strategy.
The improved financial performance was attributed to the increase
in sales of all corporate and franchise- operated store, which posted
growth of 19.3 percent to P20.6 billion at end 2014 compare to the
previous year. Overall, PSC opened 286 new stores and closed down 13
stores last year.
Ministop which operates 24 hours and seven days a week, was
brought to the Philippines by Robinsons Retail Holdings,Inc. in
partnership with Ministop Japan and Mitsubishi Corporation. Its goal was
to answer the needs of Filipinos for quality products they can get on the
go.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Fourteen years later, Ministop has served millions of Filipinos as it


continues to expand its network of stores all over the metro, having
recently celebrated the opening of its 400th store at the Trion Towers in
Bonifacio Global City. 24 hour chain is committed to ensuring fast and
efficient service at all times in efforts to provide affordable food and
Beverage choices to its customer.

Foreign. In United States, the convenience store industry


continued to show its resilience in 2014, growing steadily in number of
retail outlets during in economy still trying to find its feet. According to
2015 and NACS/Nielsen convenience industry store count increased from
the year priors count of 151,282 stores as of December 31, 2013. The
annual survey shows that the convenience retailing industry roughly
doubled in size over the three decades. At year end 1984, the store count
was 85,300 store, at the year end 1994 the store count was 98,200 stores
and at year end 2004 the store count was 138,205 stores.
According to Nielsen, convenience store account for 33.9% of all
retail outlets in the United States, which is significantly higher than the
U.S total of other retail channels including drugstores (41,799 stores),

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

supermarket/supercenter ( 41,529 stores) and dollar stores (26, 572


stores).
NACS Chairman Steve Loehr, Vice- President of operation support
at La Crosse, Wis - based kwik - trip said that their continued growth
even during sluggish economy, shows that our core offer of convenience
resonates more than ever with our customers, whether they visit as for a
fuel fill- up, quick snack or drink, or stop by four fill in groceries or healthy
take out meals.
Among the States, Texas continues to leadin store count with
15,434 stores. The rest of the top 10 states for convenience stores are
California ( 11,403), Florida (9,810), New York (8, 247) , Georgia (6,766),
Nork Carolina (6.301), Ohio (5,539), Michigan, (4,907), Illinois (4,670),
and Pennsylvania ( 4,604) which nudged virginia out of the top 10 in
2014.
In Costa Rica, Family owned operated convenience stores called
pulperias have been common since 1990s and there are many of those
stores in every neighborhood. In the 2010s modern convenience stores
were introduced, mainly by the AMPM company, Competitors launched
brands such as Musmanni Minisuper (a chain of bakery stores promoted
to convenience stores), Vindi (operated by Automercado Supermarket

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

company) and Fresh market (operated by AMPM in format appealing to


prosperous neighborhoods).
While in Indonesia, Convenience stores may on;y be built usually
500 meters from nearest traditional market. In small city or rural areas,
this means a smaller area are often built side by side or at maximum
within 50 meters of each other.
Local convenience store brands are Indomaret and Alfamart. Both
targeting all public, where imported brands like 7-Eleven, Circle K or
Lawson are targeting big cities and cater to a lifestyle more than
convenience. To be classified as a convenience store,the store should
occupy no more than 100 meters square of service area, on in some local
residence, up to 250 m.
Indonesian government restrict convenience store license, so it can
only be bought by franchisee, using different name and different brand, or
classifying it as cafeteria. A convenience store with a cafeteria license is
only allowed to sell maximum 10 percent of its service space for non food/
beverages product.
In Japan, the convenience-store chains have gradually increased
their presence in the retail sector, they need to evolve even further during
the third phase. Demographic and social changes in japan, including an

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

aging population, an increase in the number of women entering the work


force, present convenience stores with new opportunities. Women and
elderly people, who have infrequently patronized convenience stores to
date, are now potential new categories of clientele as they discover the
convenience of being able to do all their shopping and run all their errands
within walking distance of their homes.
As the total number of convenience stores in japan tops 55,000
locations, the three major convenience-store chains have been steadily
increasing their network through aggressive store openings, the
leveraging of their store networks as infrastructure and their stores as
bases is key to the next phase of evolution in new business development.
In emerging countries centered on Asia, the convenience store
market is in phase two of development. In countries where consumer
spending is forecast to increase accompanying economic growth, the
retail sector are also expected to develop. It is in these promising markets
where a polished business model for convenience stores originating in
Japan can gain a foothold and allow FamilyMart to grow. (FamilyMart
annual report, 2015).
Convenience store provide a limited variety and assortment of
merchandise at a convenient location in 2,000 to 3,000 square foot stores

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

with fast checkout. They are modern version of neighborhood mom-andpop grocery/general store. Convenience stores enable consumers to
make purchases quickly, without having to search through a large store
and wait a long checkout line. Over half the items bought are consumed
within 10 minutes of purchase.
Due to their small size and high sales, convenience stores typically
receive deliveries every day. Convenience sores only offer limited
assortments and variety , and they charge higher prices than
supermarkets, Milk, eggs and bread once represented the majority of their
sales, but now almost all convenience stores sell gasoline, which
accounts for over 66 percent of annual sales. The second-highest selling
item i cigarettes, accounting for 14 percent of sales.
Convenience stores also are facing increased competition from
other formats. Sales increase during periods of rising gasoline price, but
their dependency on gasoline sales is a problem because gasoline sales
have low margins. In addition, supercenter and supermarket chains are
attempting to increase customer store visits by offering gasoline and
trying gasoline sales into their frequent shopper programs. Drugstores
and full-line discount stores also are setting up easily accessed areas of
their with convenience store merchandise.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

In response to these competitive pressures, convenience stores


are offering more fresh food and healthy fast food that appeals to todays
on-the-go consumers, especially women and young adults. Some
convenience stores are adding fast casual restaurants, like BPs Wild
Bean Cafe. 7-Eleven is exploring ways to bring its successful fresh-food
strategy to the United States.

STUDIES
The following studies are presented to provide empirical support to
present study.
Local. A study conducted by Kantar World panel

leader in

consumer knowledge and insights based on consumer panels shows a


45% increase in convenience store purchase from January 2014 to
January 2015. Kantar world panel traced the shopping behavior of 3,000
Filipinos homes in urban and rural areas across the country. Findings
show that from 16.1% in 2014, 18.5% homes are now buying in
convenience stores with one to two check out counters and are optional
24 hours a day like 7- Eleven and Ministop.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Convenience store channel is the fastest growing retail channel in


the Philippines at 45% followed by direct sales at 31% and drug stores at
11%.
A majority of convenience store buyers are from the National
Capital Region, South Luzon, and Mindanao, from classes ABC and
Urban households that are typically comprised older homes with residents
aged 13 and above. (Rappler.com, 2015)
The convenience store sector will mirror the consumer landscape
in the next few years as the country enjoys more economic development
said Tara Prabhakar a TNS Asia Pacific Managing Director of Retail and
Shopper.
The consumer landscape is changing. About 70 percent of the
Philippines will be urbanized by next year. The cost of doing business has
actually gone up so it makes more economical sense to look smaller
(store) format, Prabhakar shared, adding that as more people go to the
cities to work and live, there will be a bigger market for convenience
stores. (Manila Bulletin,2014)
The market share of convenience store was risen to 0.3% from
0.2% in 2014. Registering the highest compared traditional (+2%) growth
and modern trade channel (-2%) while Filipinos spend most for food

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

purchases, the personal care category experienced the fastest growth at


2.5%. The study further shows that top 4 food purchase remain the same
with ice cream, total milk, snacks and alcoholic beverages.
Foreign. Based on the thesis presented by Lee Wei Ting of
Malaysia, As the lifestyle of the Malaysian consumers becomes more
hectic, they demanding more convenience-oriented retailing to the benefit
of convenience stores. Malaysians are increasingly switching their
spending patterns from traditional grocery stores to modern convenience
stores.
Convenience stores registered strong growth, largely due to
vigorous expansion of in terms of outlet by chained and independent
players, coupled with promotions by chained convenience store
operators. According to Euromonitor (2008), the sales in convenience
stores grew 168 percent between 2002 and 2007, and it has predicted
that it will grow another 55.2 percent in the following five years.
The convenience store market is dominated by 7-Eleven, which is
the largest 24 hours convenience store available in Malaysia. It captured
almost half of he convenience store value share in 2007.This is largely
due to steady outlet expansion as well as the creation of greater brand

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

awareness through strong marketing efforts, such as contest and


promotions.
However, Woodside and Trappey (1992) found that consumers
decide their primary store

based on the attributes of the store. They

found that consumers could quickly name a store when asked what store
comes to their mind for specific attributes such as lowest price, or most
convenient to them. Consumers will refer to shop at stores that has
attributes that can satisfy their needs.
A few researchers found that store location plays an important part
in determining the store choice (Kolodinsky and Crawell,2000). Location
suggests customers accessibility to the store and includes factors such
as distance , and time travelled to the store. It was found that consumers
prefer to shop at stores that they have easy access to and are convenient
for them (Fox and Moschis, 2004).
Satisfaction is also found to influence consumers subsequent
behaviour, such as turn the consumer into a loyal, committed customer,
one who is willing to repurchase, or a customer who switches brands or
discontinues using the product (Kotler and Keller, 2006). Satisfaction is
defined as a persons feeling of pleasure or disappointment resulting from
comparing a products perceived performance and expectation (Kotler

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

and Keller, 2006). It is derived from the consumers personal experiences


and the function of matching the expectation and the perceived
performance.
The relationship between store attributes, customer satisfaction
and store loyalty is included. According to the study numerous research
has been

conducted to examine the impact of store attributes on

customer loyalty (Nguyen,2007). Most of the studies found that store


attributes have a impact on store loyalty. It is found that the loyalty
towards the store is affected by the consumers store experience with the
characteristics of the store. In other words it is important for the shopper
to notice and pay attention to the attributes, in order to influence their
subsequent behaviour such as re-patronage behaviour.
Although most of the previous studies investigated the relationship
of store attributes and customer loyalty in a retail setting, westbrook
(1981) studied the effect of store attributes from a different perspective.
Westbrook examined the relationship of store attributes and customer
satisfaction is directly affected their in store experience with the store
characteristics.
According

to

Bianchi

2009,

convenience

store

(C-stores)

constitute a successful formal in developed market such as the U.S,

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Canada and Japan. As an example, 7-Eleven became the largest world


wide convenience store chain in March 2007, operating 34,000 stores in
17 countries, even larger than the world wide number of Mcdonalds store
( Planet retail, 2007).
Only a few studies of convenience store (c- stores) are found in
the literature and they have all been held in a developed market context
(Lassk, 2000; Rapp and Islam, 2006 ; Sparks, 2000 ; Suiton anf Rafaeli
1988 ; Welsh et al., 2003 ; Worthington, 1989) These studies show that
convenience store attributes for consumers are location, product
assortment, knowledge of sales associates, speed check out, service,
store layout, and parking.
Most of the studies focus on the convenience orientation of
consumers ( Anderson, 1972,1971 ; Brown,1989 ; Bucklin, 1963 ; Gross
and Sheth, 1989 ; Kellie, 1958 ; Morganosky, 1986 ; Nickols and Fox,
1983 ; Reily, 1982 ; Yale and Venkatesh, 1986 ) . These studies view
convenience as anything that helps the consumer to reduce its time and
effort during their shopping process,but are mostly focus on the product
market.
Although studies on convenience store are poor, there is a large
amount of studies that address consumer store patronage, and store

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

choice in the retailing literature ( See Pan and Zinkhan, 2006). These
studies suggest that several attributes affect consumers references and
expectations of retail store, such assortment, service, product quality,
store atmosphere, store location, price level, check - out speed, hours of
operation, friendliness of sales people, and parking facilities.
In a retailing context, although , there is no one clear definition of a
convenience store for the purpose of these paper we will define it as a
small, centrally located store, featuring ease of access, late - night hours,
and a limited line of merchandise

and dot charges above - average

process compared to a large supermarkets that generates large volume


sales. (Bianchi, 2009)
Only a limited number of academic papers have specifically
investigated the C - store industry.

IMPORTANCE OF RELATED LITERATURE AND STUDIES REVIEWED


TO THE PRESENT STUDY
Consumer always prefer to buy in store where they can save
money and satisfy themselves. But the convenience stores are a good
example that lowest price is not the only reason/factor that could invite

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

consumers to enter the store. Convenience store sector is increasing its


industry as well its competition from other formats.
Those related literatures and studies helped the researcher to
further their knowledge about the convenience store sector, it helps the
researcher to know and understand who are the daily consumers, their
demographics such as gender and age.
Nowadays, the convenience store channel is the fastest growing
retail channel in the Philippines, coming to other retail channel which is
the direct sales and drug store.
It gives a discernment into the real situation of convenience store.

THEORETICAL/CONCEPTUAL FRAMEWORK
Cue Utilization Theory. The argues that products or services
consist of several arrays of cues that serve as surrogate indicators of
product or service quality.There are both intrinsic and extrinsic cues to
help guests determine quality, where are the intrinsic cues provide
information such as brand and price.

Customer Attention

Marketing
Strategies

Cue Selection
and
Understanding

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Customer
Service

Product
Quality

Product
Price

Product Risk

Beliefs
Experiences

and
Perception

Satisfied

Purchase Intention

Processing cues
And
Beliefs

Dissatisfied

Theoretical Framework

Selecting of Respondents

Demographic
Profile

Level of
Satisfaction

Reasons why
customers prefer
to buy in
convenience store

Marketing
Strategies
used by
convenience

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Conducting of Survey by means of


Questionnaire

Data Analysis and Interpretation

Utilization of the Findings about


The Marketability of Selected
Convenience Store in Selected Areas in
Quezon City as Perceived the Customer

Research Paradigm

Chapter 3
METHODS OF RESEARCH
This chapter covers research design, the respondent, the
researcher instrument, the procedure and the processing of data of the
study.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

RESEARCH DESIGN USED


The descriptive method of research was used in this study . This is
designed

to investigate and to gather information. Descriptive survey

method seeks to ascertain respondents experiences on a specified


subject. It aims to describe the marketability of selected convenience
store in selected areas in Quezon city.
We have constructed a research strategy which is customized to
thesis purpose. A researcher of the convenience store is chosen as an
interview in business of this research. This methods are employed from
various sources of data to ensure the validity instrument of the research.
The sources of data include the chosen firms representatives, 7-Eleven
and Ministop, including the staff.
Additionally, we conduct the interview with other members such as
convenience store supplier and company that provide transportation
services to the store. The interview is conducted to gain more market
environment and trend of the
industry.
RESPONDENTS OF THE STUDY

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

The respondents of this study include 100 customers, fifty percent


are from 7-Eleven and the remaining 50 percent are from Ministop
convenience store within Quezon City. The Respondents must be ages 13
years old and above.

THE RESEARCH INSTRUMENT


The research instrument used in this study was a questionnaire.
Questionnaire.The researchers instrument have one set of
questionnaire. This set is for the customers of both 7-Eleven and Ministop
convenience store open 24 hours and 7 days that is chosen to conduct. It
is consist of several questions involve the customers perception about
the marketability of convenience store in terms of their price, location and
service rendered by the crews.
The researcher used the questionnaire as their major tool in the
collection of the data needed to complete the study. The researcher
prepared their own questionnaire as the main instrument for gathering
data from the subject.
As an outcome of the researcher, some of the statements were
amended and improved. The modified versions of questionnaires were

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

finally administered on the respondents. The final questionnaire used for


data collection for the study was structured in five parts.
Part I are contained by demographic characteristics of the
respondents (age, gender, and civil status) and the first question is about
to obtain the information of the level of satisfaction of a convenience and .
Part II comprised of statements to identified the reason why you preferred
to buy in convenience store. Part III included statements on how to
perceived the marketability of a c-store, in terms of price, quality of
product and service rendered by the crews. Part IV comprised of
statement to the market strategies used in c-store.
The questionnaire was complied and discusses with the
researchers to the person who answer the questionnaire. Each
researcher enters his/her responses on the questionnaire, saving the
researchers time, compared to the time required to conduct personal
interviews. It is less expensive that conducting personal interviews. The
respondents feel that they remain anonymous and can express
themselves

in their own words without fear of identification. The

questionnaire may be collected after 30 minutes and the format is based


on the statement of the problem in chapter 1.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Construction.The set of questions that the researchers used were


based on the statement of the problem. The researchers presented their
questionnaire to their thesis adviser after presenting the draft of the
questionnaires, their adviser gave them suggestions so that the
respondents can easily understand all the contents of the questionnaire.

VALIDATION OF THE INSTRUMENT


Before the Researcher distributed the Survey questionnaire to the
respondents. The Researchers gave it to the thesis professor to check it
and correct the grammar of each question. The researcher also tested
their questionnaire to 10 consumer of both convenience store and after
that the researcher asked the respondents to know their reaction about
the questionnaire. Their comments and suggestions were considered for
further enhancement.

ADMINISTRATION AND RETRIEVAL


The Researcher distributed Survey questionnaire in selected areas
in Quezon City in the month of ________________.

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

After thirty minutes the questionnaire were personally retrieved by


the researchers.

GATHERING DATA
The first thing researchers did is to ask permission from the Adviser
to conduct the survey. The questionnaire was distributed to the
respondents who are all very much informed for the use of the study so
that they can answer the questions assuredly. The research was reviewed
from the theses of other researchers before, from websites on the internet
and from journals, books and entrepreneur magazines.

STATISTICAL TECHNIQUE
1. The researcher used percentage as statistical technique in the analysis
and interpretation of the data gathering.
Percentage frequency formula is as follows;
Formula:m

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

f
N

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

P = x 100
Whereas, P = Percentage
F = Frequency
N = No. Of respondents
2. The researcher also used ranking as statistical technique in the
analysis and interpretation of the data gathered. Ranking formula is as
follows;
Rank = The sum of the ranks everyday
Number of the respondents

3. Weighted Mean
The answers were based on a four-point scale with the
corresponding descriptions.
Formula:

COLLEGE OF ST. CATHERINE QUEZON CITY

fx
X

362 Quirino Hi-way, Sangandaan, Quezon City 1116

Telephone 330.48.83/330.36.20

COLLEGE OF ST. CATHERINE QUEZON CITY


362 Quirino Hi-way, Sangandaan, Quezon City 1116
Telephone 330.48.83/330.36.20

Where;

X - the weighted mean

f - the frequency of response in each question

w - weighted assigned to each response

N - total number of cases

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