The Satisfaction of

the Customers of
Ukay-Ukay here in
Gingoog City

Members:
Lowela P. Cabana
Kenneth C. Gabriel
Jagred Ramo
Zaira Balaba
Claire Daya
 Introduction

The term “ukay-ukay” was derived from the Visayan term “halukay” which means
the act of digging. Ukayukay shopping is like treasure hunting, but instead of looking for
a treasure, you are literally digging from the piles of clothes which are mostly vintage
and of high value. The ukayukay shopping phenomena all started in Baguio. Ukayukay
stores sprouted like mushrooms which later became one of the must-visit places in
Baguio (Macasera, 2013).

Among the many forms of expression, fashion is a straight forward gauge of

one’s individuality. You are what you wear but that is so much as the brand and price
tag as the way you carry yourself. In search of value for money, many Filipino turn to
ukay-ukay stores or shift shops for quality clothing at very affordable prices (Ramirez,
2010). Clothing is one of the elementary necessities in life, in various part of Mindanao
even the most basic needs are out of reach for the unprivileged, looking for good value
is daily cause. Getting some decent attire to wear is very difficult for a low income
family, for them ukay ukay is the answer to their problems, at least they can buy a fair
outfit for any amount money in hand (De Jong, 2013)

As time went by, together with the lifestyle of Filipinos, ukay-ukay became
numerous anywhere in the country. In 2001, Philippines imported US$ 2.29 billion or
PhP 116.7 billion worth of consumer goods (Philippines Star 2000). Most Filipino
consumers don’t have concern in terms of health hazard in purchasing ukay-ukay when
a consumer meets their demands. Because ukay-ukay is a widely prevalent industry
and cultural phenomenon people have various vested interests when engaging to their
demands with affordable yet trendy clothing. Just like other stores, consumer reaction
towards the product is important and in buying second garments their choices is evident
of satisfaction.

Satisfied customers will have high loyalty, and these customers will increase
repeated purchase intention, so as to affect the company’s market share and return on
investment (Bolton and Drew, 1191). Customer satisfaction is a key in creating a long-
term relationship with your customers. If to think back to the dating analogy, going
through the sales process is just like wooing the prospect to turn them into a customer.
But keeping a long term relationship functioning is hard work. It needs to keep delivering
value time and time again (Chambers, 2019). A study by InfoQuest found that a totally
satisfied customer’ contributes 2.6 times more revenue than a ‘somewhat satisfied
customers’. Furthermore, a ‘totally satisfied customer’ contributes 14 times more
revenue than a ‘somewhat dissatisfied customer’. Satisfaction plays a significant role in
how much revenue a customer generates for your business (Lisa, 2017). If companies
want to satisfy the customers demand they must clearly understand the consumer’s
requirement on quality, functionality, denotation and price (fonvielle, 1997). Satisfaction
is the desire of each buyer depends on quality of a product brand and the services
offered also comfortable environment. It deals a huge impact of satisfying the
customer’s desires because the idea of buying to other stall or places is limited and
chances of high profit is possible.

The basis of the study is the level of customer’s satisfaction towards ukay-ukay
here in Gingoog City, a province of Misamis Oriental. It has several ukay-ukay stalls has
been existing and still operating today. Most existing ukay-ukay businesses are far from
each other and identifying the consumer’s reaction in terms the distance whether people
are satisfied or not. As part of our observations, there are still some of the customers
preferred to go in other cities, but despite of that ukay-ukay stalls here are still
operating.

The purpose of this study is to know the level of satisfaction of the consumer in
the ukay-ukay in terms of price, product, place and promotion here in Gingoog City. In
result to this, the researcher will be able to recommend to the ukay-ukay owner what
would be the better things to do or the strategies that they should use in order to satisfy
the demands of the consumers.
Statement of the Problem

The research study aims to identify the satisfaction of the customers of the ukay
ukay here in Gingoog City. This will be guided by answering the following question.

1. What are the demographic profile of the respondents in terms of;

a) Age
b) Gender

2. What are the consumer behaviour in buying ukay-ukay in terms of:

a) Place
b) Price
c) Quality
d) Promotion

3. Is there a significant effect if the consumers will be satisfied of ukay

ukay here in Gingoog City?
 Scope of the Study

The study is to determine the satisfaction of customer of buying ukay-ukay here in

Gingoog City. This research want to comprehend how customer being satisfied of
buying ukay-ukay despite from the lack of small stall, hot condition and no proper
installment.
The research of this study will be utilizing the data by using a survey to be conducted to
the customers buying ukay-ukay, asking them honestly answer the questions regarding
from price, quality and service offered based on their experience.
The result of the study will be used to determine the satisfaction of the customer of
buying ukay-ukayin Gingoog City. The outcome of the study will also guide the
researchers to recommend possible techniques to satisfy customer in buying ukay-ukay
and chances of high profit for the owner.

Limitation of the Study

This research limits only in Gingoog City where there are stall of ukay-ukay located. It is
also conducted to the behaviour of customer whether customer are satisfied or not.
 Significance of the Study

The findings of this study will be beneficial to the following:

Ukay-ukay owners- this study will help them by knowing what are the things they need
to do in order to satisfy the customer demands and it will help them to increase their
profits.

Customers – through this study this will be their opportunity to voice out their opinions
about ukay ukay.

Government- this study will help them to boost the city’s economy. Also, they will
realize that even though ukay-ukay imports and sells cheaper second-hand garments
clothes, it has a great help to the citizens who are in lower class.

Entrepreneurs- This study will give idea for young entrepreneurs on what other
opportunity that they may take

Future researchers- This study will give references that they can use as the basis of
their research.
 Definition of Terms

Service- This refers to the valuable action deed or effort performed to satisfy a need of
to fulfil a demand
Consumer- This refers to a person who buys goods and services.
Satisfaction- It is a consumer’s fulfilment response.
Ukay-Ukay- A person deals with the after used goods.
Price- This refers to the value that will purchase a finite quantity, weight or other
measure of a good or service.
Product- A good, idea, method, object, or service created as a result of a process and
services a need or satisfies.
Promotion- This refers to the strategy that they will use in selling the product.
Place- This refers to the area of a certain business.
Loyalty- Measure of commitment based on obligation.
Customer Satisfaction – This refers to the overall happiness or the customer feelings
about the product and services.
 CHAPTER II
Theoretical Framework

Customer satisfaction is a metric used to quantify the degree to which a

customer is happy with a product, service, or experience (Sophia, 2019). Satisfaction is
an overall psychological state that reflects the evaluation of a relationship between the
customer or consumer and a company, environment, product or service. Satisfaction
involves one of the following three psychological elements: cognitive
(thinking/evaluation), affective (emotional/feeling), and behavioral.Customer satisfaction
is important because it provides marketers and business owners with a metric that they
can use to manage and improve their businesses. In a survey of nearly 200 senior
marketing managers, 71 percent responded that they found a customer satisfaction
metric very useful in managing and monitoring their businesses (Lisa, 2017).

The basis of understanding the consumers satisfaction is respectively resides in

people’s ability of learning from their previous experience. Since this study is to
determine whether the customers are satisfied or dissatisfied on buying ukay-ukay
therefore The Disconfirmation paradigm by Richard L. Oliver and expectancy value
concept by John William Atkinso are perfect for this study.

The Disconfirmation of paradigm is to study the level of satisfaction of an

individual that prior to expectations with observant performance. In this theory, the
customer’s perception of overall satisfaction results from a comparison between
expectation and outcome performance. Therefore, expectation and outcome
performance are two important variables which can influence the judgment of
satisfaction measure. Customers’ satisfaction is one of the crucial factors to predict the
customer purchase tendency. To investigate satisfaction toward the products is also a
main topic in customer behavior research. Based on expectation disconfirmation theory,
firm can increase satisfaction by increasing perceived product performance or
decreasing expectation.
 In the process of satisfaction judgment, first buyers may experience from
expectation of the specific product or service prior to purchase. Second, consumption
reveals a perceive performance level of product which is influence by expectations if
difference between actual performance and expectation is perceived as being small.
Hence,. Perceived performance may increase or decrease directly with expectations as
indicated by the arrow drawn from expectation to perceived performance. Third,
perceived performance may either confirm or disconfirm pre purchase expectation
(Anderson and Sullivan, 1993). Fourth, satisfaction is positively affected by expectations
and the perceive level of disconfirmation. Thus, to decrease expectations is a viable
alternative for the firm (Kompalle and Lehmann,2001). Expectation disconfirmation
theory, expectation provides baseline or anchor level of satisfaction. It also be
considered as belief probabilities of what the consequence of an even will be
(Oliver,1980)

Moreover, this theory states that, if performance exceeds expectations, users will
be positively disconfirmed or satisfied. On the other hand, if performance exceeds
expectations users will be positively disconfirmed or satisfied.

The customer’s expectations have been built over time by a variety of inputs (as
shown in the top left of the model), which are the firm’s most recent communications
(mainly advertising and promotional deals). The firm’s brand image (which is the
aggregate of their long-term communication efforts), Word-of-mouth (WOM)
communication from other people (possibly also including salespeople), External media
reports, online reviews and information, and the customer’s previous experiences with
the firm. The organization has significant control over the first two inputs
(communications and brand image) and, therefore, attempt to build strong, positive but
realistic expectations of the firm and its offerings to potential customers (that is, its
target market). Their effectiveness in this regard is impacted by the quality and
consistency of their communications program, as well as by their total level of
promotional spend and their share-of-voice relative to their direct competitors. The next
two inputs (word-of-mouth and traditional, online and social media reports) is much
harder to control. Typically firms have implemented public relations programs in order to
generate positive media attention. These days many firms are also active on social
media platforms and also focus upon sponsorship and corporate social responsibility
projects.

The expectancy value concept is used to predict the action performance and how
it views the objects. The concept of expectancy represents the idea that most
individuals will not choose to do a task or continue to engage in a task when they expect
to fail. Value refers to the different beliefs students have about the reasons they might
engage in a task. The expectancy-value theory has three basic components: belief,
value and expectations.
First, individuals respond to information about an object or behavior by developing a
belief about it. If the belief already exists, it may be modified by new information. Next,
individuals assign a value to each attribute that a belief is based on. Finally, an
expectation is created or modified based on the calculation of beliefs and values.
Schematic Diagram of the Variables

Independent Variables Dependent

Place Customer
Satisfaction
Price
Product
Service
 CHAPTER III

Research Methodology
This chapter indicates the procedures and method being used in conducting the
research. It includes research design, research setting, sampling procedure, data
gathering instrument and data gathering procedure.

Research Design
This study made used of quantitative research method. It is a descriptive design
which determines the level of customer satisfaction of ukay-ukay here in Gingoog City.
This design was used since it gathers information from the customers of ukay-ukay.

Research Settings
The research was conducted in Gingoog City. It is the second class city in the
province of Misamis Oriental. It is located centred between Magsaysay and Medina.
From Cagayan De Oro City it has a 122km away and 74km away from Butuan City.
 Sampling Procedure
The respondents of the research are those who buy second hand garments here
in Gingoog City. The method being used is the non probability sampling method
because the respondents are specific and well determine.

Data Gathering Instrument

In gathering information the researchers used the survey questionnaire to
measure the result about the satisfaction of customers in different business sector in
ukay-ukay.

Data Gathering Procedure

The researchers will ask for permission to the different sector of ukay ukay to
have a survey for the data needed for the study. The researchers will formally write a
letter to the owner of Ukay ukay business sector to allow us to conduct a survey in their
area.
 BUSINESS RESEARCH
QUESTIONNAIRE

This study is being conducted by students of Christ the King College as part of the
Business Research assignment. This is a survey questionnaire about the customer
satisfaction of Ukay-ukay in Gingoog City. This survey is done to help not just the
business itself but also to everyone to fulfillthe need and wants of the both parties.
This study is intended for educational purpose only. This questionnaire is randomly
given to the customers of ukay ukay here in Gingoog City. Thank you for your time and
cooperation.

Please answer the following questions:

AGE: _______ GENDER: Female _____ Male _____

1. How often do you buy Ukay ukay products?

Weekly Monthly Occasionally Seldom a year
2. I don’t have a problem about the distance of ukay ukay places.
Strongly agree Agree Strongly disagree Disagree
3. Ukay ukay in Gingoog City offers a good quality product
Strongly agree Agree Strongly disagree Disagree
4. I am comfortable to the place where I buy ukay ukay

Strongly agree Agree Strongly disagree Disagree

5. Ukay ukay in Gingoog City offers an affordable price

Strongly agree Agree Strongly disagree Disagree
6. Ukay ukay in Gingoog City offers fashionable garments
Strongly agree Agree Strongly disagree Disagree
7. I am proud to be an ukay ukay hunter in Gingoog City
Strongly agree Agree Strongly disagree Disagree
8. I prefer to buy here in Gingoog City than to other cities like Cagayan De Oro
City and Butuan City
Strongly agree Agree Strongly disagree Disagree