Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
A Thesis
Presented to
In Partial Fulfillment of
The Requirements
By
4LM2
May 2018
I. Introduction
In the daytime, Metro Manila is home to around 20 million people. Coming from different
points on the route to their workplaces, homes, schools and to one place to another based on their
desires. All this activity is a burden to a transport system that is awfully inadequate. The demands
for a safe and convenient mode of transportation has rapidly grown. With the conditions of trains
either stalling in between stations or suffering technical glitches; buses traveling tilted due to
overloaded passengers; and taxis being hailed by passengers which drivers asks to pay additional
fees. The allotted modes of transportation by the government is not enough to accommodate all
commuters – a problem of the transport officials that up to now cannot be elucidated with a
solution.
In almost all human activities, transportation is very essential. In considering that, Public
transportation through the years and up until now is continuously aggravating. The irritating
inconvenience of a Filipino’s daily travel by public transport in the Metro is vast. An apparent
hassle of transferring from one transportation vehicle to another, not to mention the duration
between the transfers and sometimes the lining ups which can add up to the span of travel time
The lack of transportation modes is not only the problem of commuters, most commuters
are also stressed out about the city traffic in the Philippines, especially in Metro Manila. Traffic is
inevitable especially in cities because more and more cars are being bought by people. This may
be a result of a hassle in getting a ride in public transports especially on holidays, paydays, and
weekends because these days are the days where people are going out and going home more. A
large part of commuters are students which is why they are affected by the worsening traffic in the
The heavy traffic in Metro Manila is not only caused by the lack of roads and alternate
routes or the jamming of public utility vehicles in the city. It is also caused by many factors such
as the lack and inconsistency or inefficiency of railway systems, overpopulated roads and
residents, ineffective traffic controls, and also the accidents caused by the reckless drivers on the
road.
Students specifically those who are studying around the University belt or popularly known
as the U-belt must have experienced heavy traffic in España Boulevard. España Boulevard is a
road in Manila City where students are mostly passing through to get to their university or school.
It has been known that España Boulevard is one of the most traffic or busiest road in the city
because aside from it being a flood prone area, most cars and public utility vehicles pass through
Ordinary taxi cabs are chosen as alternative way of reaching different destination. With its
convenience and privacy it can reduce the burden of commuting. Apparently, the reputation of this
taxi cabs are dubious. Old models of taxi cabs contradicts its conveniency. When it’s air
conditioning is broken and/or the suspension of the car is bumpy, it can be very frustrating. With
numerous number of taxi cabs that has this reputation, it is definitely not your money’s worth.
Another problem is a usual scenario which passengers struggle to get a taxi cab and also commuters
have to endure the rejection of reluctant taxi drivers due to personal reasons.
That being the case, a new means for transportation is inevitable to at least decrease the
inconveniences of the prevailing transport systems in the Metro. By having a one tap booking
system from your mobile phones which will provide a service of transport that is not only
convenient but also efficient in dealing with traffic by using the mobile application Waze.
According to Rappler Philippines, “In the last couple of years, the Philippines has seen the
entry of app-based ride-hailing services that provide passengers with transport options at the touch
of a button. Uber and Grab are the best-known names in the industry, providing passengers with
their own cars simply by using their smartphones.” But criticisms cannot be avoided in this.
Due to the happenings or incidents around, especially the crimes being committed by
people, commuters are trying to find a safer, more convenient, yet inexpensive alternate modes of
transportation. Uber and Grab aim for that safe, convenient, yet inexpensive service. This is also a
reason why commuters in the country choose to book a private ride in their smartphones rather
than waiting on the side of the road for hours to get a ride home.
Grab and Uber are also called as TNVS or Transport Network Vehicle System. The TNVS
is referred to owners of private vehicles who provides transportation services or who operates
in 77 countries. Uber partners or drivers use their own private vehicle and uses the UBER
application in order to pick-up riders and drop them off their preferred destinations. Uber,
transportations. Uber, for drivers, provides them work with exceptional pays, also it is a
convenient, on-hand work especially for drivers who have their own private cars.
GRAB on the other hand, is Southeast Asia’s leading transportation service application.
Just like Uber, Grab provides users or riders a private vehicle operated by the car owner, in just a
tap of a button. Private vehicle drivers pick-up their passengers, also through the application, and
Uber and Grab are not only the application-based modes of transportation in the
Philippines. Angkas has also made its name known to different commuters. Angkas is a
professional on-demand motorcycle taxi service that allows commuters to safely and conveniently
In the past years, Uber, Grab, and Angkas has been the option for application-based modes
of transportation. However, these modes of transportation has experience different struggles in the
legality of their service. Conflicts has arised with the way their following policy given from the
Land Transportation Franchising and Regulatory Board (LTFRB). Usually regards with license of
their business.
Ride-hailing services Grab and Uber are also considered Transportation Network
Companies (TNCs), based on new transport categories created by the government back in May
2015. Nevertheless, LTFRB released a Memorandum, which suspends the acceptance and
processing of application for Uber, Grab, and other ride-sharing services. Both Uber and Grab
experience suspension which made them pay fines that would let them continue their services.
Meanwhile, Angkas was considered illegal as of November 11, 2017. Riding on the law
based on Republic Act 4136 or the Land Transportation and Traffic code, which mandates all
vehicle service (TNVS) too, same as grab and uber. Unfortunately for motorcycle riders, the
Department of Transportation order which recognized TNVS (2015-011) only covers sedans,
Asian utility vehicles, Sports utility vehicles, vans, and other 4-wheelers.
With the problem of regulation with these application-based mode of transportation, the
researchers have only chose Grab and Uber as it was the only company that have pushed through
with their platforms. These TNCs has paid for their legal fines and their service is back to normal.
On the other hand, Angkas as it was declared illegal and will only be available upon the revision
R.A. 4136, was excluded by the researchers as part of Application-based modes of transportation.
The challenge for the researchers is to determine the which marketing strategies of
application-based modes of transportation affects the undergraduate students of the top four
schools in the Philippines. According to the QS World University Rankings, an annual publication
University, De La Salle University, and University of Santo Tomas are considered to be the top
four universities in the Philippines which made the researchers focus on these four as the target
` One’s marketing strategy has a great impact on the success of the business. While
application-based modes of transportation are widely used nowadays, it has also been known to
use different marketing strategies to attract potential customers every day. These application-based
modes of transportation have been a popular preference by students in their daily use of
transportation. Thus, these marketing strategies are of great influence on the preference of the
modes of transportation.
Marketing strategy is one of the functional strategies of the company which makes up the
overall business strategy. The marketing strategy of a business is very important, and its
organization is influenced by all the four elements of the marketing mix. The company must
constantly analyze its environment, evaluate the strategies employed by their competitors and
examine the marketing mix elements. A company can develop a marketing strategy only by
knowing exactly what the customers want, how much are they willing to pay for the good or
service, what distribution channels are most optimal and what support measures can give the best
results.
Marketing Mix 4 Ps
E. Jerome McCarthy, a marketing expert created the Marketing 4Ps in the 1960s and since
then, this classification has been used in the whole world. The Marketing 4Ps are the foundation
of the idea of marketing mix. This concept is used in teaching the basic marketing classes as by
The first element of the marketing mix is Product. It is an item built or produced or the
service a company offers which satisfies the needs of a consumer. The product may either be
tangible or intangible. The next element is Price, which is basically the amount a customer pays to
enjoy the product. It is an important element of the marketing mix as it determines the firm’s profit
and survival. The third element is Place or Distribution which is the positioning of the product in
a place which is accessible to potential buyers. This element also comes with the importance of
determining your target market. Lastly, the element of promotion is a component of the marketing
mix which boosts brand recognition and sales. This element comprises different elements like
The theory of routine mode choice decisions (Schneider, 2013) describes how people may
choose a travel mode for routine, non-work or school activities, such as shopping and other errands.
Schneider’s theory is also based on a number of psychological theories, including Triandis' (1977)
Determination Model.
integrated marketing mix (advertising, price, product, and place) is vital to the success of the
organization that aims for growth, sustainability, and positive transformation. Thus, it involves
several socio-economic factors that affects consumer behavior which leads to customer satisfaction
on the experience they give their customers and the value of what the customers is getting versus
how much they pay, in comparison with the common cab company as well us public vehicles. The
quality of experience from these application-based modes of transportation will stand out from the
competitors, more personal, on demand, and efficient approach to the car service industry.
for the consumer. This experience will be achieved by providing vehicles that are in good condition
with no cosmetic damage and vehicle models from 2014 above only.
The experience and convenience shall be possible thru the user – friendly application. A
one tap booking system that gets you a ride in minutes. The application increases efficiency and
eliminates the hassle of hailing a cab. Through the application, these application-based modes of
transportation can provide consistent, high-quality service to their highly valued customers.
order to keep customers coming back and maintain customers’ level of satisfaction, the rate of
transportation will do away with their surge pricing tactics and maintain a consistent rate
Increasing number of drivers will decrease the wait times and be even more efficient for meeting
the customers’ needs. Reaching a larger number of consumers to satisfy the needs for
Social media advertising, ads strategically placed on websites frequently visited and word
communication strategy. Facebook, Instagram, and Twitter will be the outlet on how they could
reach their consumers. Doing appropriate advertisements based on the website will be an efficient
advertising technique.
These are the marketing strategy used by Transport network vehicle service companies.
All of these strategies shall adapt to the needs of the consumer to promote the effectiveness and
Undergraduate students of the top four universities in the Philippines are offered alternative
services by these application-based modes of transportation that are more accessible, safer,
affordable and convenient than what is usually provided by other modes of transportation. Once
their services provide these factors it will lead to consumer satisfaction and eventually make
consumer loyal to their service. The more people think of them as the modes of transportation that
can promote these factors shall grant a popularity that will lead to profit of the company.
This study is aimed to find out the effects of the different marketing strategies of
effect on students?
students?
students?
transportation?
VI. Hypothesis
Null Hypothesis:
The different marketing strategies used by application-based modes of transportation does not have
The Price of application-based modes of transportation does not have an effect on students.
students.
students.
The Place/Distribution of application-based modes of transportation does not have an effect
on students.
Alternative Hypothesis:
The different marketing strategies used by application-based modes of transportation does have an
students.
students.
● Parents
To be able to help the parents of the millennials to better understand the preference of the youth
● Researchers
The researchers will be able to know and understand the different external factors that may be
affecting their own classmates as they may be able to help them by understanding their behavior
based modes of transportation may better understand their fellow consumer’s behavior towards
these
Knowing how consumers are affected by the different marketing strategies they use will enable
them to further create plans that will help their companies gain more profit and attract more
consumers while making a stronger relationship with their existing consumers. This study shall
give Uber and Grab the privilege to have an accessible study which is directly aimed at their
consumers and their company’s behavior which came from a third-person surveyor.
This study is will primarily cover the effect of the marketing strategies or the promotion of
the application-based modes of transportation companies among the top 4 universities in the
Philippines. According to the QS World University Ranking, the top 4 universities located in the
Philippines are the University of the Philippines, Ateneo de Manila University, De La Salle
The researchers have limited the target population to undergraduate college students of the
said top 4 universities above. The reason why the researchers limited the target population is that
they have presumed that most students from the graduate school are using privately owned vehicles
for their convenience in transportation, as this study is limited to those students who use public
transportation. Also, since the researchers chose undergraduate students from the top 4
De La Salle University
Grab
Marketing
Marketing Strategy
Quacquarelli Symonds
Uber