MARKETING MIX AND PROFITABILITY OF FLOWER SHOPS IN

NAGA CITY

BOMBASE, PRINCESS LEA V.

BRIONES, RUGILYN G.
CAMBA, GHINKY MAY C.
CAMBA, REINA ROSE C.
LAUDIT, ANA KATREENA R.

SUBMITTED TO THE COLLEGE OF BUSINESS AND ACCOUNTANCY

ATENEO DE NAGA UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION MAJOR IN

FINANCIAL MANAGEMENT & ACCOUNTING
AND
BACHELOR OF SCIENCE IN ACCOUNTANCY

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TABLE OF CONTENTS

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 Chapter I

Introduction

A. Background of the Study

Flowers have played a key role all throughout human history. Traces of their

usefulness can be found in various religious texts, folk tales, and myths. Some types of

flowers were used as food and continue to be used as food until the present day; others

have healing properties and are used as medicine. Early man also recognized the aesthetic

function of flowers; in fact, some ancient cultures believed that they could appease the

spirits of their ancestors by decorating their tombs with a particular type of flower.

One important function that flowers have is their power to convey profound human

emotions and thoughts the way no other object can. Flowers have an immediate impact

on our emotions and a long-term positive effect on our mood. Flowers brightens up any

environment and are often used to express gratitude and love to friends and lovers.

Flowers have been used for many purposes since the dawn of civilization and are

the carrier of significant meanings to other people. From birthdays to funerals, flowers

will always occupy a special place in human celebrations and rituals. For this reason, the

researchers decided to better understand the way a Flower Shop businesses operate. Part

of this study discusses Marketing Mix which is related to profitability. The Flower shops

therefore need to carefully study the market before penetrating into the industry. Flower

industry has been affected by economic recessions, with decreasing global exports of cut

flowers to 20.6 billion dollars in 2013 (UN Comtrade, 2014). Moreover, Profitability has

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become a big trend in floral industry. Flower Shops also studies the ability of a business

to produce a return on an investment based on its resources in comparison with an

alternative investment. Although a company can realize a profit, this does not necessarily

mean that the company is profitable and the customers express their increasing concern

over the environmental impact of products they bought (Gaul, 2014). Also, Flower shops

is in various processes such as production, marketing, floral sourcing, etc. The emerging

trend is to source locally and reuse various products to minimize the amount of waste.

In any business profitability has been given considerable importance in the

finance and accounting literatures. According to Hifza Malik, (2011), same to Flower

Shop Business where profitability is one of the most important objectives of financial

management since one goal of financial management is to maximize the owners’ wealth,

and, profitability is very important determinant of performance. A business that is not

profitable cannot survive. Conversely, a business that is highly profitable has the ability

to reward its owners with a large return on their investment. Employees of the business is

important since they must engage in everyday business especially when flowers are

rapidly bought in market. Hence, the ultimate goal of a business entity is to earn profit in

order to make sure the profitability of the business in prevailing market conditions.

Pandey (1980) defined the profitability as the ability of a business, whereas it interprets

the term profit in relation to other elements.

Each company emphasized on maximizing profitability that can be generated

from their business operation, many studies had been conducted on the effect of capital

structure and working capital management in determining the profitability. In this study,

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 The Marketing Mix are analysed on their effect towards the firm’s profitability. Decision

making is also an important aspect of Flower Shops Business. Marketing mix can

maximize profitability of a business that involves various marketing tools that a firm uses

to develop objectives and marketing strategies in order to reach the target markets. It is

also known as 4P’s concept which involves product, price, promotion and place. Another

four important concepts of the marketing mix are the process, people, physical

environment and performance. The concept is widely accepted and successful

frameworks to maximize sales. Entering into the markets and developing new and

innovative products is different form strategies playing for become successful in the

competitive environment.

Meanwhile, in determining the firm’s profitability, the finance manager also need

to take into account the firm’s working capital management, which basically means

managing the firm’s current assets and current liabilities at satisfactory level (Dong and

Su, 2010; Gill, Biger and Mathur, 2010). Many company chooses to operate other

business where they can have a higher profit but only few of them focuses on Flower

shops which are rarely seen in the market place and are less considered by many because

of its nature. This has led the resources to dig deeper in studying this line of industry to

further understand the implications of marketing mix in relation to the business

profitability.

B. Research Problem and Purpose of the Study

The primary concern of this research is to examine if flower shops also makes

profit and to know the correlation of the Marketing Mix to profitability in terms of

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 financial performance and customer satisfaction. The researchers of this study will use

the findings to contribute to the existing literature on the actual business concern of

Marketing mix in relation to profitability of flower shops in Naga City.

C. Research Questions

The study was conducted to determine the profitability and marketing mix of

flower shops in Naga City. The following questions are highlighted to be the framework

providing guidance for the research work:

1. What is the profile of Flower Shops in terms of:

a. Initial Capital

b. Years of existence

c. No. of Employees

2. What is the level of profitability of Flower Shops in Naga City?

3. What is the level of application of marketing mix of Flower Shops in Naga

City?

4. What is the relation of marketing mix to profitability?

D. Objectives and Significance of the Study

Objectives:

The researchers aim to achieve the following specific objectives:

1. To determine the profile of Flower Shops in terms of:

A. Initial Capital

B. Years of Existence

C. No. of employees

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 2. To determine the level of Profitability of Flower Shops in Naga City

3. To determine the level of application of Marketing Mix of Flower Shops in Naga

4. To determine the relationship of Marketing Mix to profitability.

Significance of the Study

The findings of the study will be beneficial to the following individuals and groups:

Entrepreneurs. Both new and established, could be informed about the feasibility of flower

shops in highly competitive environments. Moreover, the results will give them insights into the

variables affecting business profitability and marketing mix.

Consumers. This study may help them obtain knowledge about the prices of many kinds flowers

that occurs in different occasions such as Weddings, Valentines Day, Halloweens, etc.,

Flower Shop owners. The results will inform them about strategies they can adapt for surviving

a business environment where there are many competitors. It will also inform them about best

practices in keeping away from stagnating, maintaining their competitive edge, and expanding

the enterprise.

Government. This would help them evaluate the practices of Flower Shops businesses and

impose more guidelines and policies if necessary.

Future researchers. For researchers interested in the Flower shops and the profitability and

marketing mix of businesses under the category, this will be very invaluable as a source of

inspiration and information.

E. Scope and Delimitations

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 This research limits its scope to ensure the feasibility and achievement of its objectives,

The study primarily focuses on Profitability and Marketing Mix of Flower Shops in Naga City.

Knowledge gained from interviews and surveys with the Flower shop owners, along with the

resulting significant relationships gathered between the main variables of the study, will help the

researchers devise strategies to help improve the profitability and marketing mix of Flower

shops.

Chapter II

Review of Related Literature and Studies

This chapter presents the review of related literature and studies use as grounds

for the proposed factors and how these factors can be measured. Also stated in this chapter were

the conceptual, theoretical and operational frameworks which enabled the researchers to fully

understand this topic

Flower Shops

A flower shop is an interesting business for those who love plants and has a skill for

floral decorations.It is also possible to expand because getting an extra income is high for this

kind of business (Anlacan, 2011). Starting a flower shop business doesn’t need a lot of capital

because flowers can be bought from wholesalers and the accessories such as pruning equipment,

vases, ribbons and other items that are needed for flower arrangements (Cho, 2015).

In addition, flower industry or floriculture is a diverse, rapidly growing industry

occurring globally. The Netherlands, Kenya, Colombia, and Israel are the countries with the

largest flower-growing industry, but several countries are joining the market and contributing

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within the industry such as Philippines, Malaysia, South Africa, and Ecuador. Basically , there

are three sections that constitute fundamental structure of the flower industry. The grower is the

one that grows the fresh flowers; the distributor who acts as intermediary between the grower

and the vendor; and the retailer which is the nearby flower shop. These three branches are always

come together (Andaya,2008).

Specifically, in the field of floristry it engages in the displaying, designing and selling of

cut flowers and leaves. Flowers are seen from special events like in the weddings, funerals and

public events. It would include services in the creation of custom-made ideas that involve

creative and artistic expertise (Australian Industry and Skills Committee, 2018). Florists take part

in the planning and design of floral arrangements, the treatment of flowers, organizing the supply

and storage of flower, customer engagement and providing flowers for important events

(SkillsIQ, 2017).

According to Retail and Personal Services Training Council (RAPS) (2018), florists are

thinking of new strategies by ensuring that they keep their flowers in fresh quality, enhance their

service to customers, special orders and additional offers when they cannot sell more than half of

retail flowers because of the competition from local general stores, road-side stalls and internet

retailers. Most flower shops could be a small division where mostly operated by owners and

majority of owners are actively operating in the business and typically hires three staffs.

Marketing Mix

A ​useful structural plan that can help entrepreneurs in understanding marketing problems

is the marketing mix. Business owners aims to develop a product or service that will stand out on

the customers and will come to a point where other competitors will create a product or service

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that offers similar benefits to the consumer. Therefore to develop a product or service that has

unique characteristics that sets a company apart from competitors, the business owner should

use four elements which first proposed by McCarthy, these four elements are product, price,

place (or distribution) and promotion where it achieves different desired result (Baker and Hart,

2008).

Similarly Etzel, Walker and Stanton (2004) states that marketing mix focuses on different

collection of products, its price, distribution and advertising the product. In order to reach the

organization's goal and meet the demand of the target market the four P`s should be considered.

In addition, Kotler and Armstrong (1994) defines marketing mix as a set of manageable strategic

marketing techniques that the company combines to deliver the reaction it needs within the

market segments. It provides marketing elements that a business can do to affect its products

demand. Numerous probable outcomes can be obtain by the four elements also called as the

“four P`s”: product, price, place and promotion.

Product

A product is the combination of goods-and-service that a business organizations make

available to the market (Kotler and Armstrong, 1994). Strategies are determined on making

decision on what goods and services to offer, managing existing products over time, determine

which products that needs to stop producing which are no longer profitable. Moreover, there

should be a tactical decision for brand name, product packaging, as well as product or service

components (Etzel, Walker and Stanton, 2004).

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 McCarthy and Perreault (1993) states that it is essential for designing a product that will

bring enjoyment and worth to possible customers. Since customers value pleasures, merchandise

producers should focus on the products attributes. Businesses give more attention on desired

quality in production to make sure that the product will function on its purpose and customers

will obtain their expectation on what they purchase.

Price

Kotler and Armstrong (1994) defines price as the amount of cash a customer will pay to

acquire a product. Kashani and Turpin (1999) states that one of the most crucial and difficult

marketing decision is the determination of market price. Pricing has a direct impact on the

profitability of the products and ultimately on the company’s success. Pricing can also be viewed

as a key tool of communication. If consumers feel that the selling price is too high, they are quite

have probable to distorted the picture of the product’s ability and also consider other marketable

product. This may result in the company’s loss of sales and profits. Also on the other hand, if

market prices are too low, sales may increase but profitability and brand value may suffer, as

lower-priced products may be viewed by consumers as lower. A complete assessment of the

business environment is necessary when choosing a pricing strategy, beginning with the context

in which the company operates, the company’s capital structure, the company’s profit targets, the

buyer’s perspective of the product offering., the channel incentives and the alternative pricing

offers offered by business competitors.

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Place

Etzel, Walker and Stanton (2004) states that in this element of marketing mix strategies

pertains to the outlet through which possession of merchandise is transferred from producer to

consumer or in other instances, the products are transferred from the place where they are

acquired by the final consumer. Also it involves all operations which provide customers with

products when and where they want to buy a product (Kashani and Turpin, 1999). The

movement could be by a mix of intermediaries like distributors, wholesalers and retailers.

Moreover, the internet itself is now a global marketplace, a newer method. By using the right

place, a business can boost profits and maintain them over a period of time. This, in turn, would

mean a larger market share and increased revenues and profits( Martin, 2014). According to

Learnmarketing (2019) the strategy of the marketing mix place is about how a company will

distribute its good or service to the buyer. The organization shall choose the right time and the

right place, when and where to distribute the product to the user. In order to achieve the overall

marketing goals of the company the distribution should be efficient and effective. If a company

disregards demand, it will affect profitability.

Promotion

Promotion includes all activities involving interacting with the customer about the

product and its advantages and unique features as part of the marketing mix. It provides

consumers knowledge of the goods or services to increase sales through various media, as well

as creating and fostering brand loyalty. At this stage, information given to the customer helps

them make purchase decisions about the product. Promotional activities often involve substantial

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costs. But as the outcome is often an increase in sales or customer loyalty, this investment is

believed to yield long-term returns. Through promotion, the company tries to catch the attention

of the customer and give them enough product details to nurture sufficient interest to motivate

them to buy (Martin, 2014).

According to Kashani and Turpin (1999), communication is not limited to the end user

alone. Larger target entities, like existing and potential employees, competitors, suppliers,

distributors and investors, can also be reached and influenced. Etzel, Walker and Stanton (2004)

states that strategies are needed to combine individual techniques in an structured

communications campaign, such as advertising, personal sales and sales promotion. Furthermore,

promotional strategies need to be updated as a product moves from the early stages up to its later

life stages.

3. Profitability

According to Hofstrand (2009), ​Profitability is the major goal of all businesses. The

business will not withstand in the long run on the absence of profitability. So measuring present

and past profitability and projecting future profitability is an essential part of the business.

Profitability is calculated through income and expenses. Income is the money realized from

business transactions while expenses are the cost of resources utilized by business activities.

Whitepapers Review (2018) mentioned that ​Profitability assists in the measurement of

efficiency​, and serves as ​a guide for further improvements and advancements. It is significant in

determining an organization’s overall health, in terms of revenues and profits. It can be explained

as the capacity to earn profit from all the aspects of a business; illustrating how proficient the

management is in yielding revenue by employing available resources.

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 They also tackled about Profitability Ratios which are the Various Decision Tools that

can be employed to evaluate an organization’s profitability. Namely Profit Margin, Return on

Assets, and Return on Equity.

Profit Margin

Profit margin is basically calculated by dividing net income by revenue. Though it is

indeed helpful to compare the profitability of two different companies, it is important that both of

these organizations came from the same industry, having similar business models and

demonstrating similar revenues. Otherwise, such comparison would be unreliable, and thus,

redundant.

Return on Assets

Return on Assets, also known as ​Return on Investment (ROI), indicates the company’s

profitability i​ n relation to its total assets. It shows how efficient the management is in utilizing

resources to its full potential, to achieve profit. It is denoted as a percentage and is derived by

dividing the company’s annual earnings by its total assets.

In the case of public organizations, ROA varies significantly as they are quite dependent

on the industry.When we use ROA to compare company profitability, we should evaluate it

against past ROA or with the ROA of an identical company. It is better to have a higher ROA

since it implies that a business generates more revenue on less investment.

Return on Equity

Return on Equity is the ratio that determines revenue gained by a business in relation to

investments made by equity holders. It is indicated by a percentage which measures a company’s

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efficiency, implying its capacity to acquire profit with less investment. A higher ROE shows how

efficient a management is when utilizing investment. To get the definite ROE, we should

compare companies within the same industry, and evaluation (high or low) should be made

under the same context.

Janet Hunt, in her article entitled “What Determines a Company's Profitability” (2019),

she enumerated two factors that determines Profitability. These are the Sales and Pricing.

Sales

Sales are an essential factor in determining profitability. The return on sales ratio

measures profits after taxes based upon the current year's sales. If sales numbers are high, a

company is better prepared to deal with adverse market conditions and economic shifts. The

gross profit margin is a amount of gross profit earned on sales. An effective sales strategy is

important in boosting a company's profitability.

Price Setting

Price setting is a major factor in determining profit. A thorough analysis is required in

knowing the accurate pricing strategy for a business. The business owner must look at what the

rivals are charging and figure out what prices he should charge to maximize profits. Determining

what price the customers are willing to pay for a product is an essential factor in the pricing

strategy. Customers tends to pay high for niche products or services that are not easily

accessible. A business owner surely does not want to put money on the table by charging cheap

prices for their products and services.

B. Gap bridged by the study

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 Considering the Review of Related Literature gathered by the researchers, particularly

those sourced from Anlacan Jr. (2011), Hanah Cho (2015), Island Rose (2008), SkillsIQ (2017),

RAPS (2018), Baker and Hart (2008), Etzel, Walker and Stanton (2004), Kotler and Armstrong

(1994), McCarthy and Perreault (1993), Kashani and Turpin (1999), Martin (2014),

Learnmarketing (2019), Hofstrand (2009), Whitepapers Review (2018) and Janeth Hunt (2019),

it was therefore concluded that there is a relationship between the marketing mix used in a

business with its profitability. It was observed that there are several marketing mixes that

businesses use in order to gain their desired or projected profits but the best marketing mix to

apply on a certain establishment basically depends on the type of the business itself.

C. Synthesis of the Art

The gathered related literature constitutes a single or multiple phase of the study.

Initially, it tackled all about flower shops, an overview of the establishment, the services it offers

and the factors needed to build such business which were cited from the articles of Anlacan Jr,

(2011), Hanah Cho (2015), Island Rose (2008), SkillsIq (2017) and RAPS (2018). Then it

proceeded with Marketing Mix, the elements it has, factors that affect the same, and how it

affects the totality of the business. Those data were gathered from Baker and Hart (2008), Etzel,

Walker and Stanton (2004), Kotler and Armstrong (1994), McCarthy and Perreault (1993),

Kashani and Turpin (1999), Martin (2014) and Learnmarketing (2019).. Then came Profitability,

its definition, the factors affecting it, computations about it, as well as ratios in relation to it

which were cited at the articles of Hofstrand (2009), Whitepapers Review (2018) and Janeth

Hunt (2019). To wrap it up, the review of related literature generally aims to condition the

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readers’ minds to gradually create a connection in between the topics involved to come up with a

conclusion, and that is, how marketing mix affects the profitability of flower shops. But none of

the related literature focuses directly about marketing mix’s relationship with the profitability of

Flower Shops. This study differs in a way that it focused on a certain business type, which is the

flower shop, that holds several characteristics which makes it different from every other type of

business in the market.

CHAPTER III

FRAMEWORK OF THE STUDY

This chapter indicates the theories, significant concepts, operational framework and the

terms used that represents the study.

Theoretical Framework

A marketing mix is a combination of tactical marketing tools that are controlled by the

firm to produce the response it wants in the target market. These are the initial and fundamental

steps in order to grow any product on the market and look forward to the target market.

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Marketing mix constitute the four fundamental elements of marketing actions namely: price,

place, product, and promotion.

Figure 1​. Marketing Mix 4P’s (McCarthy,1968)

● Product​ - it refers to a physical entity to be sold. It includes services accompanying the

sale and valuable to marketing people. A product should meet the needs of the customer

and wants.

● Promotion​ - refers to business communication with the market customers in order to

generate positive response from customers.

● Price​ - is the amount of money required to purchase a product combined with its

accompanying services. Price is the only element affecting revenue and the profits of the

company.

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 ● Place ​- is a specific area that gives way to get the products to the business easily. Also, it

helps the customers to be familiar with the setting of the business.

Profitability

Profit is important for a business. A continuously losing company finds it doubtful to

survive in the long-run. Profit is a benchmark for analysing the strength of business policies and

performance. Profitability ratios reflect the organization’s ability to operate with an excess of

operating revenue over operating costs. There are two types of profitability ratios. The first type

is margin ratio which represent the ability of the company to convert sales into profits. The most

commonly used margin ratio are gross profit ratio and net profit ratio. The second type of

profitability ratio is return ratio which measures the company’s overall capacity to generate

wealth for shareholders. These includes return on assets (ROA) and return on equity (ROE).

Figure 2. Profitability (Best, 2004)

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Relationship of Marketing Mix and Profitability

Figure 3. Conceptual Framework

In a business, it is important to have a marketing mix in order to help the business to

maximize its profit. Businesses basically use Mcarthy’s 4P’s as a part of their marketing mix

which is composed of Product, Price, Place, and Promotion. These components make a major

role in identifying business strategies and decisions and each component has a significant role. In

products, businesses should know the preferences of the people and their unmet needs in order

to develop the product that can make the customers satisfied. The price reflects the value or

effectiveness of a certain product.

Relationship of McCarthy 4P’s and Profitability Ratios

Figure 4. Conceptual Operational Framework

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 The conceptual framework presents the relationship of the 4P’s in the marketing mix to

the profitability of flower shops here in Naga City. Apparently, the product, place, promotion,

and price specified are the variables that lead to the profitability of the business.

A product must be the appropriate one for the market. It gives satisfaction and use for the

persons that desire the certain product. Different products are needed for varieties in order to

create choices for the customers. In this way, customers will be satisfied and may lead to

possible profit.

Moreover, in order for a customer to get the product, there must be a specific place that

provides the product when a customer wants it. This helps them to be familiar to the business so

there is a possibility that they will buy again the product.

Also, every business needs promotion. It is a way to communicate to the target market. It

may be a personal presentation or mass selling like doing advertisements in the television, radio,

and newspapers. In this way, it helps the customers to decide what to buy by presenting the

product’s advantages and disadvantages. Customer loyalty may be developed and may drive to

profitability.

Lastly, determining the price of the product will complete the marketing mix and make it

eye-catching as possible. In implementing the price, there are factors that must be considered.

These factors include the nature of competition in the target market, the terms of sale, its legal

restrictions, and practices in deciding the markups and discounts. Considering the right price will

shift the right product to its right place with the right promotion that leads to a fulfillment of the

marketing mix and down to profitability.

Definition of Terms

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 The following terms were used to completely deliberate the findings in concordance with

how it was used in this research.

Flower Shop​ – it is a type of shop where flowers and other flowering plants are sold.

Marketing Mix​ - consists of controllable factors of product, price, place, and promotion that

may solve difficulties and challenges in marketing. In this study, marketing mix ​will be

measured​ by product, place, price and promotion.

Product ​- a good or service that consists of tangible and intangible characteristics that fulfill the

needs and wants of consumers. Also, money or other unit of value is exchanged in order to have

the good or service.

Price​ - the money or other unit of value that is exchanged for the acquiring of the product.

Place​ - the availability of certain products in the right quantities and locations where demand for

the specific product is high.

Promotion​ - a type of communication between the seller and the potential buyer to inform and

influence their characteristics and behavior.

Profitability​ - it is a relative amount that measures a company’s efficiency, especially its success

or failure. It is also the aptitude of a business to generate a return on the investments based on its

resources. In this study, profitability will be measured by net profit margin, return on assets, and

return on equity.

Profit ​- is the outcome when you deduct the cost of the business to its revenue.

Net Profit Margin -

Return on Assets -

Return on Equity -

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 CHAPTER IV

METHODOLOGY

A. Research Design

The study will use descriptive method to obtain the necessary information to respond to

the problems and to meet the objective of the study. This study will determine the endless

relationship of marketing mix to the profitability of flower shops in Naga City. In the types of the

descriptive method, the survey, interconnected with the interview, will be used to gather

necessary information to provide the data needed for the research.

B​. ​Research Locale and Participants

The study would include 17 registered flower shops in Naga City. The respondents of this

study will be the proprietors and workers of flower shops operating in Naga City. This research

uses total enumeration sampling because the population of flower shops in Naga City is

relatively small. Furthermore, all regular staff will be employed in the study.

C. Data Gathering

In this study, the researchers use the primary data. The primary data for this research are

the interviews that will be made with the managers, owners, or employees of the (17) Flower

Shops here in Naga City. Another primary data that the researchers will be using are the surveys

that are given to the managers, owners, and employees of the business.

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D. Research Instruments

In the conduct of the study, the way of collecting information is through the use of

primary data. The primary information stated comes from the answers of the respondents to the

questionnaire and interviews.

E. Data Analysis

The researchers used a quantitative data analysis, wherein structured questionnaire was

used for the owners of the flower shops in Naga City.

To respond to the first statement of the problem, the researchers interpret the total

responses to the following questions about the profile of the flower shops in Naga City in terms

of years of existence, initial capital and number of employees using a frequency distribution

table. As for the second statement of the problem, in determining the effects of the level of

profitability various kinds of financial profitability were used such as Net Profit Margin and

Return on Asset. Furthermore in the third problem, the Likert scale was used to determine

marketing mix in the following key variables, namely, product, place, price and promotion of

Flower Shops in Naga City. Lastly, to determine the relationship of the marketing mix to

profitability the Pearson’s Correlation was used.

It was organized and analyzed after data was collected. The researcher classified the

information in a tally sheet that matches the format of the questionnaire items.The researchers

collected information to know the level of profitability about the Net Profit Margin and Return

on Asset of the Flower Shops. After getting the financial ratio, the researchers used the rating

scale. The overall mean was then calculated and the interpretations were used to evaluate the

profitability.

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 Figure 2​. Rating Scale on Profitability Ratios

Knowing the factors that affect the marketing mix of flower shops in Naga City the

following interpretation was used:

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 Figure 3​. Interpretation of marketing mix

Finally, in studying the relationship of marketing mix and profitability of flower shop,

Pearson’s Correlation was used to know the strength and relation of the two variables using the

formula:

Its correlation between the two variable denoted by ​r.​ Marketing mix was expressed by

the variable “​x”​ and the profitability was expressed by the variable “​y”​ . On one hand, ​N

represents the number of participants in the research.

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 In determining the strength of the marketing mix to the flower shop’s profitability the

following range will be used:

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 Figure 4​. Interpretation of Pearson’s Correlation Coefficient ​r

A positive correlation shows that the two variables have a direct relationship that any

change in one leads to a positive change in the other. On the contrary, a negative correlation

shows the relationship between the variables is inverse in which any change in one of the causes

will occur in another variable, a negative change or an inverse effect. Strong correlation denotes

that changes in one variable, even they may be slight, affects the other. Moderate correlation

indicates the changes in one variable may affect the other, but slight changes in one variable do

not affect the other. Weak correlation shows that there is a connection between the variables

however changes in one variable must be great to affect the other variable. No correlation

indicates that the variables are not relevant and that change in one does not have any effect in the

other, may it be positive or negative effect.

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29
Bibliography

Letter of Request for the respondents

Questionnaire for Owners of Flower Shops and Employees

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