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University of Luzon

COLLEGE OF BUSINESS ADMINISTRATION
Dagupan City

Chapter I
THE PROBLEM AND ITS BACKGROUND

Rationale
Promotion is the way in a business makes its products known
to the customers, both current and potential. It is a common mistake
to believe that promotion by business is all about advertising. It is
not. There are a variety of approaches that a business can take to get
their message across to customers, although advertising is certainly
an important one. The main aim of promotion is to ensure that
customers are aware of the existence and positioning of products.
Promotion is also used to persuade customers that the product is
better than competing products and to remind customers about why
they may want to buy. It is important to understand that a business
will use more than one method of promotion. The variety of
promotional methods used is referred to as the promotional mix.
Nowadays, in the retailing business, the competitive situation is
rapidly increasing. The aggressive branch expansion of big discount
stores can decrease the total revenue and market share of other
retailers, especially convenience stores. After the economic crisis,
there was a change in structure of shareholding of large discount

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University of Luzon
COLLEGE OF BUSINESS ADMINISTRATION
Dagupan City

stores and such a situation transformed them to become jointventures between foreign and Thai entrepreneurs. After such a
transformation, the large discount stores had expanded their
branches more aggressively to cover all strategic areas in Bangkok
and other country. Normally, big discount stores stress an “everyday
low price” policy and attempts to create low-price image among
customers

by

various

methods,

especially

advertisements

by

Moreover, the discount store is one form of retailers that stresses on
selling products at the very low prices to customers. These
characteristics resulted in an existence of the conflict or a rivalry
between these discount stores and so many small retailers such as
convenience stores in the area to where the outlets are extended. For
7-Eleven, especially in Philippines, many branches are always located
near each other in the same area with the main reason to create
convenience for the customers. Thus only one of the new branches of
big discount stores can have an effect on many branches of 7-Eleven
in that area. From this serious problem, 7-Eleven has to improve and
develop the strategies to differentiate it from others in order to
compete with the competitors. One of the efficient strategy that 72

University of Luzon
COLLEGE OF BUSINESS ADMINISTRATION
Dagupan City

Eeven had used to gain a better competitive position in the mind of
customers is to create and improve store loyalty. Gain the loyalty from
their most profitable customers. Loyal customers increase sales by
purchasing a wider variety of the company’s products and by making
more frequent purchases; they always buy 3 more and generate more
profit also. Otherwise, loyal customers are most likely to remain with
that company for long period, purchase multiple products and
services, and recommend the company to their friends and relations.
Moreover, once customers develop loyalty to a store, they will
downplay the negative aspects and enhance the positive. So building
customer loyalty is one of the biggest challenges for the retail industry,
especially

7-Eleven

in

the

competitive

situation

like

this.

(www.lib.ku.ac.th/kuis/2549/warakon-suk-all.pdf)
Finally, Bowen and Chen (2001) gave the interesting definition
that loyal customer will also help promote your company. They will
provide strong word-of-mouth, create business referrals. Marketers
use loyalty-building strategies to help improve customer retention and
maximize share of customer. One of the industries in which loyalty
programs have been used frequently is retailing. When a customer

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O’Malley (1998) gave the basic idea of loyalty program that it is to reward customer’s repeat purchasing and encourage loyalty by providing targets at which various benefits can be achieved. the marketer can never be sure that the customer will ever come back. “7-Eleven Everyday Reward” will lead customers to come back again and use points to change products in the store or to collect in different number for exchanging many licensed souvenirs of 7-Eleven. They want to earn their customer’s loyalty. Satisfaction is a measure of how 4 . McIlroy and Barnett (2000) suggested the interesting idea that an important concept to consider when developing a customer loyalty program is customer satisfaction. Marketers want customers not only to visit their store.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City walks out the door of a retail establishment. it also used loyalty program to increase total revenues by stimulation repeat purchase and frequency of visit of the customer. Now. trading Everyday Reward are enjoying renewed interest as a continuity vehicle. For 7-Eleven. but to visit it again and again in preference over other competing stores. due to the popularity of frequency programs in general. Everyday Reward Card is primarily a generator of repeat purchases and reward for loyalty.

Satisfied customers often lead to repeat business and referrals because they will repurchase products and 5 . loyalty dropped equally dramatically. when satisfaction reaches a certain level. Companies that provided high levels of customer satisfaction. On the high side. many customer satisfaction studies have concluded that there is a significant relationship between customer satisfaction and loyalty including profitability. The more satisfied the customers are.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City well a customer’s expectation are met while customer loyalty is a measure of how likely a customer is to repurchase and for engaging in relationship activities. Bowen and Chen (2001) also supported the idea that there are two critical thresholds affecting the link between satisfaction and loyalty. At the same time. when satisfaction declined to a certain point. loyalty increase dramatically. satisfied customers are more likely to return to those who have helped them. the longer they stay and thus the higher the retention rate. who delight their customers will retain them and be able to sell them more because they want to buy more from these companies. The key for companies to survive is the retention of satisfied customers. Moreover. and dissatisfied customers are more likely to go elsewhere next time.

7-Eleven had used efficient strategy to gain a better competitive position in the mind of customers by creating loyalty program that is “7 Eleven Reward Card”.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City services. Thus. moreover. is also chain of 24-hour convenience stores like 7 Eleven that operate as a grocery and fast food diner combined. then recommend products and services to others and finally. to compete and survive from serious aggressive expansion of big discount stores that relevant to total revenue. From all of the reasons above. Furthermore. generate positive word-of-mouth. And the important concept to consider when developing loyalty program is customer preferences. and certainly all of these greatly contribute to long-term profitability. many researchers have concluded that there is a significant relationship between customer purchasing pattern and customer preferences. Ministop Philippines. this study intended to investigate and approve this assumption by using the loyalty program of 7-Eleven as the referent evidence. has a core business policy that is has given the acronym 6 . this study intended to evaluate the efficiency of the loyalty program of 7-Eleven to assure whether this loyalty program can build customer loyalty than other its competitive convenience store like Ministop.

thus. 7 .entrepreneur.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City QSC+A. Cleanliness and Assortment/Availability”. incremental and continuous improvement is the crucial consideration for achievement. It stands for "Quality.com. (http://www.ph/franchising/ministop-philippinesa-true-business-partner) The same as 7 Eleven. Ministop also use Frequency Marketing Program to build customer loyalty this is the “Minit STOP Rewards” The study will be very beneficial to 7-Eleven in improving the Everyday Reward Card from its competitors like Minit STOP Reward by Ministop. And the programs like this will certainly occur because the Everday Reward Card is already registered as the annual loyalty program of 7-Eleven until now. Service.

which this work attempts to corroborate.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Theoretical Framework The researchers anchored this investigation on the theories underpinning promotional aspect of business operation that served as the premise of the study. Personal data consumers are disinclined to facilitate certain data to the company. this can be a factor that moderates their desire to participate in the program. this values the complexity of the procedures of using and collecting information about the loyalty program. we started out with the contributions. Buying volume and frequency Consumers who buy more are more favorable to the program because they have more access to the rewards. 7eleven established the existence of five internal attributes subsequently contrasting their influence in consumers' decision to participate in their promotional strategy. 8 . Participation effort. Participation cost certain amount of money that has to be paid in order to be able to participate in loyalty program. it is restricted to a specific group of consumers. Exclusiveness of the program is whether the program is massive or. In order to determine whether or not incentives are important to consumers' perception of the loyalty program. on the contrary.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 9 .

Purchasing behavior patterns represent the design of behavior of a large number of customers. So this study will evaluate the success and the efficiency of this loyalty program by using the level of customer purchasing and customer preferences. “7-Eleven Everyday Reward Card” assumed to use loyalty program as the marketing tool to make the customer return and retain the current customers to be loyal with the company. 10 . Thus. Each customer has his or her own purchasing habits. To shop is to visit business establishments for inspection or purchase of goods. Habit is a tendency toward an action which by repetition has become spontaneous. the conceptual frameworks that were referred in this study can be illustrated as follow: Customer Purchasing Pattern To buy is to purchase. A pattern is a design or type. Similarly a distinction should be made between purchasing habits and purchasing behavior patterns. Therefore shopping is an element of customer behavior in purchasing.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Conceptual Framework This study will concentrate on understanding customers’ attitude and perception toward the Frequency Loyalty Program of 7Eleven.

The behavioral conceptualization of loyalty further suggests that loyalty schemes should create behavioral reinforcement rather than influence persuasion or long-term changes in attitudes and commitment. promotions..University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City (http://www. when and how. If purchase loyalty gets created. and any consequential habit formation.e. That is. what. that adoption should favor repeat purchase behavior if the program provides an adequate level of usefulness.). satisfaction with purchases associated with the program. After a customer has enrolled in a Frequency Marketing Program (promotional program) to a convenience store. rewards.edu/cscas/anth/nuevosouth/upload/studyingcusto merbehaviorinretailstores-090623023217-phpapp01-slideshare.pdf) Studies of customer purchasing behavior pattern in convenience store deal with (1) identification of customers and (2) their behavior patterns. explain most of a person’s ongoing propensity to buy again in a store. 1981) The contingency approach also suggests that a loyalty program should gain greater loyalty by responding directly to contingent factors (i. In addition such studies endeavor to learn about customer response to promotional program.ecu. points. (Rothschild and Gaidis. The aim of such studies is to ascertain who buys where. it 11 .

To the extent that the program sufficiently rewards store loyalty (i. (https://byronsharp.e.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City should first occur through a short-term “points pressure” impact and subsequently through a long-term “rewarded behavior” effect that results from the behavioral learning reinforcement provided by the gratification (Taylor and Neslin 2005).files. Increased allocation of share of requirements. as measured by utility. pdf) Customer Preferences Customer preferences are defined as the subjective or individual tastes. Loyalty program member (customer) should show changes in repeat-purchase loyalty which is not evident amongst nonprogram member. Increased usage frequency. re-patronage should persist. They permit the consumer to rank these bundles of goods 12 .. and the purchase level should move above a baseline. Increased repeat-purchase rates.wordpress. Decreased switching to non-program convenience store.com/2008/03/4025loyaltyprogs. of various bundles of goods that they purchase. specifically. utilities are higher than costs). Greater propensity to be exclusively loyal to participating businesses and Greater propensity to switch between participating businesses and fewer propensities to switch to non-program businesses.

Ability to purchase goods does not determine a consumer’s likes or dislikes. The preferences are independent of income and prices. As noted above. Consumer value is measured in terms of the relative utilities between goods Reichheld (1996) these reflect the consumer’s preferences that convenience store should strive to obtain as it leads to customer 13 . Customers change their needs and preferences in search of utility of which. Thus customers will opt for retail stores where they will maximize their on their basket of expenditure and their preferences catered for efficiently: their taste and preferences are matched (Ravald&Gronroos.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City according to the levels of utility they give the customer. utility is defined as the satisfaction that a consumer derives from the consumption of a good. utility’s determinants are decided by a host of noneconomic factors. A customer can have a preference for Convenience store over another but only have the financial means to purchase at that particular convenience store. Customers as consumers of convenience store product and services make decisions by allocating their scarce income across all possible goods in order to obtain the greatest satisfaction. 1996).

In order to determine that a convenience store like 7-Eleven accomplish the customer preference of a consumer we made a study about the frequency marketing program have an impact to gain loyalty of the customer. They are no doubt dependent upon culture. relying on the simple fact that people appreciate receiving rewards. 2008). education. increase sales. improve customer 14 . Numerous methods for managing loyalty schemes have been trialed. Thus the convenience store have to be swift on and research to remain relevance in offering the customers preferences (Doherty.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City satisfaction an attribute that breeds customer loyalty. A successful loyalty program provides substantial benefits to businesses. An individual customer has a set of preferences and values whose determinations are outside the realm of economics. and individual tastes. all of which functioning on the rewards principle. among a number of other factors that the convenience stores face in developing customer loyalty as they have different tastes and preferences that keep on changing. businesses can ultimately gain a strengthened relationship with customers. Through implementing a well prepared and developed loyalty program.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City product awareness and form a better understanding of customer preference. it assessed the frequency marketing program related issues and which are the basis of proposing measures to improve the frequency marketing program of 7-eleven. Output of the study dealt with the proposed measures to improve the frequency marketing program of 7-eleven.Eleven. the process.Eleven in terms of purchasing pattern and preferences of the customers. The input of the study presents the salient point of inquiry. The researchers present their paradigm of the study using the model which includes the different variables of the study—the input. Another is. and the output. Process entails the analysis to be done along with the above mentioned areas concern which was identified with the aid of the profile and papers that were gathered and results were presented using the checklist questionnaires and documentary analysis was distributed among the customers of 7-eleven to identify the Effects of frequency marketing program of 7. 15 . it assessed effects of frequency marketing program of 7. The aforementioned Paradigm of the study is depicted in Figure1 below.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 16 .

PROCESS Effects of frequency Assessment of the marketing program of following: 7. More specifically.Eleven 1. OUTPUT Problems 2. Customer Marketing Program of Purchasing Pattern 7-eleven: a. Customer Purchasing Pattern b.Eleven in Frequency Marketing Program of 7-eleven Feedback FIGURE 1: Research Paradigm Statement of the Problem This study aimed to determine the effects of Frequency Marketing Program of 7-eleven as experienced by the customers of the said business firm in order to know the effectiveness of their promotional activity in different aspects and to provide other promotional strategies that may improve its marketing activities. this study shall answer the following research questions: 17 . Effect of the Frequency a.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City INPUT 1. Customer Preferences 2. encountered in frequency marketing program of 7-Eleven Preferences Problems Encountered Proposed measures to improve the frequency marketing program of 7. Customer b.

2 The responses given by the customers of 7-eleven were objectively and honestly given. Scope and Delimitation The coverage of this study is to determine the effects of Frequency Marketing Program of 7-eleven in terms of Customer Purchasing Pattern and Costumer Preferences.) What are the problems encountered in the frequency marketing program of 7-eleven? 3. 3 The proposed alternative scheme can further improve the promotional strategy of 7-eleven particularly the frequency marketing program. The study also covers the problems encountered of the said entity in using Frequency Marketing Program. 18 .) What measures can be proposed to improve the frequency marketing program of 7-eleven? Assumptions of the Study The following are the assumptions of the study: 1 The questionnaire used in this study is valid and reliable.) What are the effects of frequency marketing program of 7eleven in terms of: a Customer Purchasing Pattern b Consumer Preferences? 2.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 1. The study does not cover the products offered by 7-eleven and is limited to promotional aspects of the said entity.

19 . this study will help them improve and fill their lacking in terms of sales. To the Manager. This study will guide them to know more about the effects of Frequency Marketing Program of 7-eleven and will give them the idea about the abundance and lacking in this business. In be more knowledgeable about this promotional strategy. This study may serve as a stepping stone for further improvement of future researches in this kind business. The owner who shall earn profit from the business. This study will help them how to enhance their own strategy for them to survive and provide the best quality service to their customers. This study will help them to understand their advantages in using 7-Eleven Everyday Reward Card. To Future Researchers. and market demand aspects. The problems of the business firm regarding with the promotional activity were determined in this study. To the Customers.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Significance of the Study This part of the study provides the essence and benefits of conducting a research to the following beneficiaries: 7-eleven branches. market share. Definition of Terms This part of the study helps the readers to understand more of this research study.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Effects of Frequency Marketing Program of 7-eleven. 20 . Problems encountered in the Frequency Marketing Program of 7eleven. Refers to the effects of using Every Day Reward Card of 7-eleven in terms of customer purchasing pattern and customer preferences. It is necessary to determine the problems that can be encountered to come up with measures in order to fill their lacking. Proposed Measures to Improve the Frequency Marketing Program of 7-eleven. Refers to the difficulties and problems encountered by the 7eleven. Refer to means or ways on getting rid of the problems encountered in the Frequency Marketing Program of 7-eleven in order to improve their performance and functionality.

Strong conceptual frameworks capture something real and do this in a way that is easy to remember and apply.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Chapter II REVIEW OF RELATED LITERATURES AND STUDIES This part of the study presents literature and related studies reviewed by the researchers which have direct or indirect bearing on the study. It is an analytical tool with several variations and contexts. The promotional mix is the combination of the different channels that can be used to communicate the promotional message to the 21 . The conceptual and related literatures were taken from various sources guided to the researcher in the completion of the study. CONCEPTUAL LITERATURE These literatures as part of our research are very helpful in the enrichment and development of the study. It is used to make conceptual distinctions and organize ideas. Promotion is used to ensure that consumers are aware of the products that the organization is offering. Marketing Mix: Promotion Promotion is one of the key factors in the marketing mix and has a key role in market success.

market share. The channels to be used are. retailer promotion. and so forth. public relations and publicity. sales promotion offered to consumers are an integral part of the marketing mix for many consumer products (Huff and Alden 1998. direct marketing. sales promotion tools are amply employed by retailers and manufacturers to achieve their commercial objectives in terms of sales volumes. Thus. Consumer promotions are promotions offered by manufacturer directly to consumers. category penetration.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City consumers. Throughout the world. There are three major types of sales promotion: consumer promotion. Sales promotion is action focused marketing events whose purpose is to have a direct impact on the behavior of the firm’s consumers. sponsorship and sales promotion (Rowley. One of most important of channels is sales promotion. Studies that strive to understand the impact of sales promotion on consumers are very important. and trade promotion. advertising. 1998). Consumer promotions encompass a variety of short-term promotional techniques designed to induce customers to 22 . 2000). personal selling. Chandon et al.

Consequently. The most popular consumer promotions are directly associated with product purchasing. contests. The strategy encourages trial and builds awareness.knowthis. premiums. and rebates are examples of consumer promotions. 2012. Do you like free samples? Most people do. A free sample allows consumers to try a small amount of a product so that hopefully they will purchase it. Samples. These promotions are intended to enhance the value of a product purchase by either reducing the overall cost of the product (i.. promotion techniques can be used to achieve other objectives such as building brand loyalty or creating product awareness. You have probably purchased 23 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City respond in some way.e. http://www. (Know This Media. a marketer’s promotional toolbox contains a large variety of consumer promotions. coupons. get same product but for less money) or by adding more benefit to the regular purchase price (i.com/types-of-sales- promotion/consumer-sales-promotions). Know This: Marketing Basics. it is not the only one. As we noted above.. While tying a promotion to an immediate purchase is a major use of consumer sales promotion.e. get more for the money).

0) That this tool offer customers a reward. Have you ever gone to a store that provided free samples of different food items? Although sampling is an expensive strategy. for frequent purchasing or other activity. such as price discounts and free products. and shopping cards for grocery stores. These promotions have been around for many years but grew rapidly in popularity when introduced in the airline industry as part of frequent-flier programs. and restaurants. Jeff and Raymond. Frequency Marketing Program 24 . include things such as frequent flier programs. (Tanner. Another very popular sales promotion for consumers is the Frequency marketing program. People try the product.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City a product that included a small free sample with it—for example. Mary Anne Principles of Marketing. v. drugstores. hotel programs. 2. and the person providing the sample tells them about the product and mentions any special prices for it. it is usually very effective for food products. a small amount of conditioner packaged with your shampoo.

Frequency marketing includes events like advertising at frequent intervals.e. giving discounts to loyal customers. organizing events etc. the amount of money and revenue generated by an existing customer is more than that of what a potential customer would generate. Hence.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City In order to develop a successful promotion strategy a clear definition of the targeted market must be included. 2000) Frequency Marketing is a marketing strategy which is used to lure and retain customers for a long term. have been about mass offer (Mitchell. It is important to note that the character of sales promotion like Frequency Marketing Program has been changing slightly over time. As the word suggests this type of marketing strategy needs to be carried out at frequent intervals of time to retain their customers. in order to 25 . Frequency marketing program. with the arising of relationship marketing. Frequent marketing is a good tool to ensure retention of consumers. It is a known fact that an existing customer yields more income for a company than a potential customer i. like other traditional forms of marketing activities.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City adopt a frequency marketing approach a company needs to do an analysis of what kind of business it is in. The main goals of a frequency promotional program are repeat sales and customer loyalty. However. Companies often have to use specific marketing strategies to help inspire customer loyalty if they have strong competitors. The rewards vary but may include discounts and merchandise prizes. If a company’s business has one of a time business and it expect no business from the existing customer or from any other customer the company may not indulge in frequency marketing. The more 26 . if it is a repetitive business then the company needs to do frequency marketing more frequently. (http://www.com/business-concepts/marketing-andstrategy-terms/11917-frequency-marketing.mbaskool.html) Frequency marketing is designed to reward regular customers as well as those who buy in large quantities. The sales strategy is to keep customers buying more products to get the reward offered in the hopes they will become long-term buyers. There are many ways companies use frequency marketing to prompt customers to buy more of their products.

businesses can increase their profits by nearly 100%. Businesses should use loyalty programs to increase customer loyalty and retain regular customers because by retaining just 5% of their customers.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City customers keep buying their product. Frequency marketing programs are a great way for both small and large businesses to increase their customer loyalty and improve their customer retention. Large and small businesses can use loyalty programs to increase their customer retention rates and grow their profits by targeting their customer group. repeat customers spend as much as 67 percent more on purchases than new customers do. (Cyprus. 2003) A frequency marketing program should benefit both the customer and the business but in many cases the loyalty program begins to cost the business more money than it is worth. creating programs their customers are interested in and utilizing the valuable feedback that a good rewards program can provide them. By creating a focus on a target group and 27 . According to a report by Manta. the greater chance they will purchase less of the competitor's brand.

businesses can identify the types of 28 . By segmenting customers. This does not mean that a business should only focus on its most profitable customer base. Loyalty programs do not benefit from casting a wide net and by identifying a target audience. Identifying a target market is one of the most important tools in business. Segmenting customers into defined groups helps businesses to make sense of data and make more informed decisions regarding their customers. and this includes loyalty programs. businesses should work with a manageable number of segments rather than trying to meet the needs of several customer groups with one target. businesses can use their resources wisely. To most effectively market to their customers. but it does allow businesses to adjust their marketing for specific groups. businesses can easily identify their most profitable customers as well as focus on customers who are most likely to engage with the business. Once customers have been broken up into manageable groups according to their behaviors.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City providing them services they are interested in. businesses can avoid the pitfalls that plague many loyalty programs in the market today.

(http://www.cleverism. One of the most Frequency program. To begin. businesses must identify the behaviors that are most important to them. This is a simple service but the 29 . For example. Delta Airlines recently changed its Skymiles program to reflect the amount of money spent on each ticket purchase so that customers who routinely buy expensive tickets can earn the similar rewards as those who regularly take long-haul flights. and they should recognize the difference between the two. Often times. By prioritizing the kind of behavior they want to encourage. customers are awarded loyalty points for their . and most businesses choose one to participate in.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City behavior that they want to encourage through their loyalty program.com) There are several different kinds Frequency marketing program. businesses can reach out to their customer bases more easily and reward them fairly for their loyalty. marketing programs for retailers is a points-based A points-based program will award customers points for engaging with the company.purchases. Some businesses may want to reward the big spenders while others may way to reward the frequent visitors.

The final major loyalty program is a coalition or partnership program. Customers sign up for and receive a card they can use to receive discounts or points to apply to free merchandise. Businesses like airlines and hotels often offer a different kind of program called tiered programs. it is not advantageous for most businesses because it does not stress loyalty like other programs do. Since many of the larger items may take either 30 . Point catalogs contain items that members may choose from if they save up the required points. These programs work on an open system where customers can earn rewards points by shopping with participating businesses. While customers delight in this kind of open system. they can separate their most loyal clients from the more casual users.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City downside for customers is that many programs do not offer rewards in the short term. By offering a tiered loyalty program. Grocery chains and other retailers often use a membership card system. but the rewards can be very lucrative for the most loyal customers. These types of programs cost a lot of money for both the customer and the business. Tiered loyalty programs often have few benefits for those in the lowest tiers.

techtarget.com/definition/loyalty-card-program) Loyalty cards were initially designed to offer rewards to regular customers and therefore to encourage them to keep shopping in the same store. Margaret 2000-2016. Loyalty cards often resemble plastic credit cards but they can also be keychain fobs or stickers. 31 . The information in the database is used to help the retailer understand and influence his customers' buying habits. http://searchcrm. eighty-six percent of American shoppers are listed in a loyalty database. the company hopes to achieve customer loyalty through repeat business. a majority of survey respondents said receiving the card was worth giving up some measure of privacy.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City years to save up for or require large purchases. A loyalty card program is an incentive plan that allows a retail business to gather data about its customers. According to research carried out by Boston University's College of Communication. Typically a loyalty card has a barcode or magnetic stripe that's scanned at the point of sale (POS). The card identifies the customer and sends information about what the customer bought to a database.(Rouse.

magazines and newspapers. Such stores may also offer money order and wire transfer services. A convenience store may be part of a gas/petrol station. 2003 ) A convenience store is a small retail business that stocks a range of everyday items such as groceries. toiletries. tobacco products..University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City As technology has developed the cards have become a rich source of data for the companies that offer them. (Arnett. convenience stores have long shopping hours. Stores reap financial and strategic benefits from using the cards to find out what customers are buying. soft drinks. or near a railway or railroad station or other transport hub. In some jurisdictions. as convenience 32 . typically beer and wine. In some countries. al. snack foods. Convenience stores usually charge significantly higher prices than conventional grocery stores or supermarkets. et. candy. corner stores are licensed to sell alcohol. It may be located alongside a busy road. They differ from general store sand village shops in that they are not in a rural location and are used as a convenient supplement to larger stores. in an urban area. some being open 24 hours.

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stores order smaller quantities of inventory at higher per-unit prices
from wholesalers. However convenience stores make up for this by
having longer opening hours, serving more locations, and having
shorter

cashier

lines.

(https://en.wikipedia.org/wiki/Convenience_store).
In other country, whereas in Japan, Convenience stores
primarily sell food including a large range of meals, snacks and
sweets, such as onigiri (rice balls), sandwiches, bread, chips, candy,
obento (lunch boxes), instant ramen, microwave meals and hot foods
like fried chicken, nikuman and oden. Some cold foods, such as
onigiri, can be heated up by the store staff.
The stores also sell all kinds of hot and cold beverages including
soda, coffee, tea, water, sport drinks, juice, milk and vitamin drinks.
The selection changes frequently and often varies by season as well.
Many convenience stores also sell alcoholic beverages including beer,
happoshu, chuhai, sake, shochu and wine.
Other goods available include body care products, cosmetics,
batteries, blank CDs and tapes, umbrellas, newspapers, magazines
and manga. Some stores, particularly outside of the city centers, have
a toilet. (http://www.japan-guide.com/e/e2071.html)

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In the Philippines, most urban Filipinos, convenience is starting
to move beyond just a store format; convenience is evidently becoming
a lifestyle,” declares Navalta. “Convenience stores and manufacturers
alike should develop products, packaging, formats or sizes that are
driven by the need for convenience. The store environment should
always promote ease of shopping — allowing shoppers to get in and
out of the store quickly —so they can opt to use their precious time
doing

activities

that

matter

more

to

them.

(http://pana.com.ph/filipinos-increasing-appetite-for-conveniencespurring-convenience-store-growth/).
Today, 7-Eleven is the country’s biggest convenience store chain
with over 700 stores. With a broad offering of everyday grocery items,
fast food, telecom, bills payment and banking kiosk services, 7-Eleven
has been awarded numerous times by the Philippine Franchise
Association, as well as Entrepreneur Philippines. 7-Eleven has won
titles such as Best Foreign Franchise, Fastest Growing Franchise, Best
in Franchise Support, Marketing Campaign of the Year, and Hall of
Fame International Master Franchise award.
Nowadays, many researchers were interested to study the
linkage between customer satisfaction, customer loyalty, customer
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retention, and profitability. While the direct relationship between
customer satisfaction and customer loyalty has been shown to be
complex and asymmetric, and some research has shown that
switching behavior and repurchase intentions are not consistent with
satisfaction levels. A number of studies suggested that there is a
significantly positive relationship between customer satisfaction,
customer loyalty, customer retention, and profitability.
This study is focused on the promotion of one of the most
famous convenience store in the Philippines which is the 7-Eleven.
Convenience sampling was employed and self-administered surveys
were used to gather the data. , there was a high correlation between
customer loyalty and the emotional component than cognitive
component. Thus the key findings of this study indicated that the
emotional component is an important factoring explaining loyalty,
apparently more important than cognitive component. To substantiate
the finding that the inclusion of the emotional component leads to
better results in explaining loyalty when compared to using cognitive
component alone, the result suggested that the emotional component
is an important predictor of loyalty, and customer satisfaction was

35

University of Luzon
COLLEGE OF BUSINESS ADMINISTRATION
Dagupan City

better explained when emotions were included. Further, while the
same variance was explained, positive emotions emerged as the best
predictor of loyalty with negative emotions also significant. The finding
indicated that having positive emotions toward service provider would
result in more loyalty to that service provider and there was a negative
association for negative feeling. How students feel about their study
experience was therefore highly relevant to the messages they are
likely to give to others, and the personal responses they are likely to
make. In conclusion, from this study, it can be imply that as there is a
significant relationship between customer satisfaction (especially the
emotional component) and customer loyalty, and based on the
assumption that it is cheaper to retain existing customer, than attract
new customers, it appears that manger need to re-emphasize how
customer “feel” about their experiences of service delivery. An obvious
extension, in retaining or enhancing customer loyalty, companies need
to explore as far as possible, mange the emotional components, and
recognize

the

power

and

importance

of

the

emotions.

(http://www.lib.ku.ac.th/kuis/2549/warakorn-suk-all.pdf)

36

University of Luzon
COLLEGE OF BUSINESS ADMINISTRATION
Dagupan City

RESEARCH LITERATURE
This is a compilation of reviewed literatures from unpublished
theses. Like conceptual literature, these could also improve and
complement every element that is part of the research study.
According to Li, et. al., on their research entitled “Traditional
Purchasing Patterns” traditional purchase patterns can be found by
using mining algorithms for association rules and they are considered
as some beliefs of the model, that is, some generally acknowledged
laws. Then from each type of customer group, we can find some new
purchase patterns. Next, the subjective interestingness values of the
new patterns can be computed by comparing these new purchase
patterns with existing beliefs. Thus we can get the subjective
interestingness value of each customer group. The customer groups
with low interestingness values indicate that their purchase behaviors
are similar to those we have found and so we can use the existing
patterns to represent the customers' behaviors, whereas for the
customer groups with high interestingness values, their purchase
behaviors are very different from common customers, and the existing

37

Even the most impulsive shoppers can be slotted into specific and predictable consumer buying decision categories. so these customers are of great value to further research. And by understanding consumer habits better than your competition. It's about connecting with the right consumers in the right way at the right time. MaCorr stated in his research entitled “Understanding Customer Purchasing Behavior” that it is not just about connecting with consumers. By understanding your consumers' buying habits and how they make decisions. Purchase decisions are never made blindly. you'll have priceless business intelligence at your disposal. 38 . Using our smart business research and customer surveys. we'll unearth a number of consumer purchasing habits and help you take consumer shopping to an entirely new level.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City purchase patterns cannot represent these customers' behaviors. you'll be able to sell your target what they want before they even know they want it.

et. Many see it as primarily an attitude‐based phenomenon that can be influenced significantly by customer relationship management initiatives such as the increasingly popular loyalty and affinity programs. From this perspective. customer brand acceptance and customer brand buying. Customer loyalty presents a paradox. empirical research shows that loyalty in competitive repeat‐purchase markets is shaped more by the passive acceptance of brands than by strongly‐held attitudes about them. et.. Discusses where these programs might work and where they are unlikely to succeed on any large scale. al. According to Sharp. Provides a checklist for marketers. on their research entitled “Customer Loyalty and Customer Loyalty Programs”. Reviews three different perspectives on loyalty. the demand‐enhancing potential of loyalty programs is more limited than might be hoped. on their research entitled “Loyalty Programs and their Impact on Repeat-Purchase Loyalty Patterns”. and relates these to a framework for understanding customer loyalty that encompasses customer brand commitment. al. 39 . However.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City According to Uncles. Uses this framework to analyze the demand‐side potential of loyalty programs..

In line with this thinking. However. According to Ganesh on his research entitled “Managing Customer Preferences in a Multi‐Channel Environment using Web 40 . This paper discusses the potential of loyalty programs to alter the normal market patterns of repeat-purchase behavior which characterize competitive repeat-purchase markets. although the expected deviation was not consistently observed for all the loyalty program brands. Only two of the six loyalty program participant brands showed substantial excess loyalty deviations. these deviations in repeatpurchase loyalty were observed for non-members of the loyalty program as well as members and appear likely to be at least partially the result of other loyalty efforts particular to these brands. Overall a trend towards a weak level of excess loyalty was observed.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Loyalty programs are currently increasing in popularity around the world. a large scale loyalty program is evaluated in terms of its ability to change normal repeat-purchase patterns by generating ‘excess loyalty’ for brands in the program. Panel data were used to develop Dirichlet estimates of expected repeat-purchase loyalty statistics by brand. These estimates were compared with the observed market repeat-purchase behavior.

Multi‐channel customers are the most valuable customers and hence multi‐channel integration would improve customer loyalty and retention. According to Kivetz and Simonson on their research entitled “Earning the Right to Indulge: Effort as a Determinant of Customer Preferences Toward Frequency Program Rewards” A series of studies with approximately 3100 consumers demonstrated that (1) higher program requirements shift preferences in favor of luxury rewards. the customer decision‐ making process and the implications of effectively managing buyer behavior for competitive advantage. The role of Web services is explored with the help of a few customer purchase scenarios. (2) this effect is also observed when consumers choose 41 . Building and retaining a long‐term association with customers require that relationship management applications should be able to accommodate the various channels. As the number of channels for a retailer increases.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Services” the technology impact on the various functions in retailing has been increasing. This paper considers the impact of Web services on multi‐channel integration. managing the dynamics of customer behavior in the rapidly emerging multi‐channel environment becomes complex.

the authors show that (1) when the program requirements are held constant but the individual consumer’s effort is higher.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City between luxury and necessity rewards (of the same value) that they themselves proposed. Pratyush Tripathi on his research entitled Customer Purchase Preference in Special Reference "Exploring to Vegetable Purchase" stated that “When man learns to understand and control his own behavior as well as he is learning to understand and control the behavior of crop plants and domestic animals. and (3) the effect of program requirements on reward preferences is stronger among consumers who tend to feel guilty about luxury consumption and among those for whom the effort is invested in the context of work rather than pleasure. the shift in preference toward luxuries is still observed and (2) increasing the monetary cost of participating in the FP decreases consumer preferences for luxury rewards. 42 . he may be justified in believing that he has become civilized”. contrary to an alternative explanation based on the notion that higher requirements signal higher value of luxury rewards. Dr. In addition.

it has become a pleasant experience. and how it is influenced by consumer attitude. Understanding what drives the purchasing behavior of consumers. motivators and behavior towards vegetables is likely to play a deciding role in understanding how to strive and compete in this sector. Big Bazaar where consumers inspect and select the products in a comfortable atmosphere and still pay a reasonable price for these vegetables. Vegetable retailing is undergoing a transformation from selling of vegetable items in grocery shops & mandis. the Vegetable sector is now witnessing an extraordinary change in consumption patterns. buying cues. But selling vegetables and fruits is not just that easy. Understanding the link between attitude.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Nelson on his research entitled “Customer Preferences in Vegetable Retailing” stated that Backed by the large disposable incomes. will be a step towards 43 . To keep customers connected and to win new customers the seller needs to do lot more than just creating quality vegetables. Sometimes it happens that one pays less than the price one would pay at the nearest food store. Shopping for groceries is no longer a strenuous and uncomfortable affair. haats and bazzars to selling of them in supermarkets like Easy day. Instead.

and analyzing on how much significant they for customer’s decision are making process of vegetables in Punjab. Chapter III 44 . These literatures help the researchers in determining the effect of frequency marketing programs in certain variables. here in this study an attempt is made to recognize and rank a number of factors. Differentiation basis include features related to attributes such as product features. It depicts that understanding their customers.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City formulating policy and strategy which will help in refurbishing the whole process of production as well as supply aimed at securing a competent position in this market. they can provide their best products and services that can fully satisfy their customers. there has been double digit increase in the produce section of retailers annually. It implies that business owners must know and familiarize what factors can give full satisfaction to their customers. environmental and other social outcomes as well as experiential eating. To determine the overall significance and readiness to purchase or to pay for those vegetables. As the facts confirm.

This design described further the phenomenon by establishing the relationship that exist between variables which are identified. describes the nature of prevailing practices. events. the descriptive survey method seeks to obtain facts about existing condition.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City RESEARCH DESIGN This chapter presents research design of the study which includes methods of research used. the respondents. Research Method Used The study used the descriptive survey method. hence. 45 . According to Broto (2011). This method aided the researchers describes systematically the effect of frequency marketing program of 7-eleven regarding the customer purchasing pattern and customer preferences. instrument used to gather data needed. the locale of the study. the descriptive method was used. and processes. and the problems encountered by the customers are all presented factually and accurately as they happen during the time of the study based on the responses of the respondents. and the statistical treatment of data used. and the data gathering procedure. beliefs.

Dagupan City. Barbara. The 7 eleven franchise is located in Burgos St. Dagupan is known as a First Class Municipality an independent and is the province of Pangasinan. The researchers provide a map of Dagupan City.H. Dagupan City. 2) Bonuan Gueset.676 people with an income classification of second class. component According to the city in latest cencus... Pangasinan and is one of the busiest street in the city where the said road serves as an entry point of vehicles coming from and going to Lucao.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Locale of the Study This study covered Burgos St. Philippines. 46 . 7) Hererro. Sta. Del Pilar. 8) Lucao. Urdaneta. 5) Perez Blvd. Pangasinan showing the locale of the study in Figure 2. Dagupan City. There are 9 branches of 7-eleven in Dagupan City on the following locations: 1) Burgos St. Villasis and other part of Pangasinan. 4) M. Dagupan City has a population of 163. 6) Mayombo. Pangasinan as the locale of the study. 3) Arellano. and in 9) Tapuac ..

. Map of 7-eleven in Burgos St. Dagupan City 47 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Figure 2.

The respondents were randomly selected from a sample. a simple random sample is a subset of individuals chosen from a larger set (a population). This process and technique is known as simple random sampling. and each subset of k individuals has the same probability of being chosen for the sample as any order subset of k individuals. The respondents are composed of fifty (50) consumers all of them being the consumers of 7-eleven in Burgos St. and should not be confused with systematic random sampling...University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Respondents of the Study The respondents of the study are the customers of 7-eleven in Burgos St. A simple random sample is an unbiased surveying technique. Each individual is chosen randomly and entirely by chance. Starnes (2008) states that. 48 . such that each individual has the same probability of being chosen at any stage during the sampling process. Dagupan City. Pangasinan. It focuses on sampling techniques where the components that are investigated are based on the judgments of the researchers. Dagupan City. Simple random sampling is a type of non-probability sampling. Daren S.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Data Gathering Instrument The main instrument used in this study to gather necessary information is the questionnaire (Appendix A). Questionnaire is a list of issues or questions to be raised in the course of the data being collected (Broto. Dagupan City. The sections of the data gathering instruments are: 1) The Profile of the Respondents 2) Effect of Frequency Marketing Program 3) Problems of Frequency marketing program of 7-eleven in Burgos St. 2011) The items in the questionnaire were formulated on the basis of the sub-problem as reflected in chapter I.. Validity of the research instrument The researchers used the face validity to test the content of the instrument wherein the proposed instruments is presented to business experts and professor for modifications and their suggestions were incorporated with the instrument to evaluate the 49 . The instrument was initially reviewed by the marketing research adviser. Revisions were done to accommodate the suggestions of the reviewers for the enrichment of questionnaire.

appropriateness and substantiality of the item used in the propose instrument. Statistical Treatment of Data 50 . the matter and topics of measuring instruments. Their evaluation or the content validity is necessary and important to improve the said instruments before the actual floating to the respondents of this study. Reliability of the Research Instrument For the reliability of the instrument used in research.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City clarity of the items. Pangasinan where the group of respondent answers the survey questions in order to determine the accuracy and reliability of the instrument to make the research more effective. The computed percentage of consistency of the responses will mean that the instrument is reliable. The result of the survey was analyzed by the researcher. According to Garrette (1969) the test is said to be reliable when the respondents’ response on the first try out is consistent with their responses in their second try out. Content validity is the representatives or sampling adequacy of the content. the substance. the survey questionnaire was tested on the other branch of 7-eleven in Dagupan City.

00 High 1.67-2. what is the effect of the frequency marketing program of 7-eleven in terms of customer purchasing pattern and customer preferences distributed according to the statistical measure utilized.66 Low Weighted Mean Descriptive Equivalent Average Weighted Mean Summation of all Weighted Mean 51 .00-1.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City The data were analyzed.34-3. and what are the problems encountered in the frequency marketing program.33 Moderate 1. interpreted and presented in tabular form wherein frequency. a three point scale was used to the following ranges and their corresponding descriptive equivalents: 3 = High (H) 2 = Moderate (M) 1 = Low (L) Scale 3 2 1 WM DE AWM - - Statistical Limits Descriptive Equivalents (DE) 2. what measures can be proposed to improve the frequency marketing program of 7-eleven. For specific problem 1. mean and percentage were used. 2. and 3.

52 . the researchers utilized and analyzed all the data gathered to come up with the best possible alternatives that would suit the problems encountered by the respondents.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City AWM = Number of Weighted Mean For specific problem 3. what measures can be proposed to improve the frequency marketing program of 7-eleven.

The data is presented in table form with descriptive equivalents and composite mean of variables being presented. Discussion of which is on the basis of how the questionnaires were answered by the respondents of 7-eleven customers. Table 1 53 . As to Customer Purchasing Pattern Table 1 shows the effect of the implementation of frequency marketing program of 7-eleven specifically customer purchasing pattern. Effect of Frequency Marketing Program of 7-eleven This present the data of the effect of the implementation of the frequency marketing program of 7-eleven in terms of customer purchasing pattern and customer preferences.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Chapter IV PRESENTATION. It discusses the respondents’ information regarding the effect of the frequency marketing program of 7-eleven. ANALYSIS AND INTERPRETATION OF DATA This chapter presents data analysis and interpretation of findings obtained from primary instrument used in the study. It further discusses the problem encountered in frequency marketing program of 7-eleven.

90 M 5 2.67-2.22 M 1 2.08 M 2 2.34-3.00-1.05 M k Descriptive Equivalent (DE) High (H) Moderate (M) Low (L) 54 .33 1.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Effect of Frequency Marketing Program of 7-eleven In terms of Customer Purchasing Pattern n=50 Customer Purchasing Pattern/Scale I purchase more often I purchase more products I avail the benefits of the loyalty card I save points in loyalty card Satisfied with the loyalty card AVERAGE WEIGHTED MEAN LEGEND: Scale 3 2 1 Statistical Limits 2.00 1.06 M 3 1.66 H (3) M (2) 9 (27 35 (70 ) 9 (27 ) 31 (62 10 (10 ) 9 (27 ) 27 (54 ) 14 (14 ) 17 (51 ) 19 (36 ) 24 (24 ) 15 (45 ) 24 (48 ) 11 (11 ) ) ) Ran L (1) WM DE 6 (6) 2.98 M 4 1.

availing the benefits of the loyalty card (1. it also shows how each customer purchasing pattern of the respondents was affected. The weighted mean of the customer purchasing pattern variables were purchasing more often (2.08). This goes to show that saving points in loyalty card which is ranked as 1 was the main cause of other variables to improve such as purchasing more often and purchasing more products which are ranked as 3 and 4 respectively.22). Satisfied with the loyalty card (2. saving points in the loyalty card (2. The result shows that the average weighted mean is 2.06). This is a positive effect of the implementation of 55 . The respondents wanted to earn more points that made them maintain a certain amount of purchased every transaction.90). purchasing more products (1.98). In addition.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Table 1 shows one of the effects of the implementation of frequency marketing program of 7-eleven which is the customer purchasing pattern. The descriptive equivalent of the respective variables are all “moderate”.05 and is “moderate”.

As to Customer Preferences Table 2 shows the effect of the implementation of frequency marketing program of 7-eleven specifically customer preferences.34-3.66 Descriptive Equivalent (DE) High (H) Moderate (M) Low (L) 56 .06 M 6 31 (62) 5 (5) 2.22 M 4 2.00-1.28 M 3 (60) 10 (10) 2.00 1.12 M 5 2.67-2. Table 2 Effect of Frequency Marketing Program of 7-eleven In terms of Customer Preferences n=50 Customer Preferences/Scale Loyalty Quality Service Availability of Service Convenient Promotions (Loyalty Card) Hangout Area/ Place of Hangouts/Meeting AVERAGE WEIGHTED MEAN H (3) 18 (54) 19 (57) 13 (39) 18 (54) 11 (33) 13 (39) M (2) 30 (60) 31 (62) 35 (70) 28 (56) 30 L (1) 1 (1) 1 (1) 2 (2) 4 (4) WM DE Rank 2.30 M 2 2.33 1.40 H 1 2.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City frequency marketing program with regards to customer purchasing pattern.23 M LEGEND: Scale 3 2 1 Statistical Limits 2.

This goes to show that the quality services. provided by the 7-eleven and the loyalty of the customers which was ranked 2 were greatly affected in the implementation of frequency marketing program of 7-eleven. referred by others (1.06). which was ranked 1.28).University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Table 2 shows one of the effects of the implementation of frequency marketing program of 7-eleven which is the customer preferences. availability (2.06).23 and is “moderate”.12). promotions (2. The result shows that the average weighted mean is 2.40). The table further shows how reasons for preference of the respondents were affected. Many of the respondents thought that the quality service of 7-eleven improved because of the 57 . and no reason at all (1.30).22). hangout (2.48). convenient (2. only one is “high” which is the quality service and two of them are “low” which are the others’ referral and no reason at all. The weighted mean of the customer preferences variables were loyalty (2. The descriptive equivalent of the respective variables are mostly “moderate”. quality service (2.

Availability and being convenient of the business.33 1.66 Average Weighted Mean 2.14 Descriptive Equivalent M M M Descriptive Equivalent (DE) High (H) Moderate (M) Low (L) 58 .34-3.67-2. which were ranked 3 and 4 respectively.00 1.00-1.05 2. Summary of Effect of Frequency Marketing Program of 7-eleven The following table summarizes the effect of frequency marketing program of 7-eleven in Burgos St.23 2.. This means that the customers are now preferring 7-eleven because of it being convenient and available at all times. were the other variables that are mostly affected.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City implementation of the frequency marketing program and that they became a loyal customer to the business entity. Dagupan City. Table 3 Summary of Effect of Frequency Marketing Program of 7-eleven Effect of Frequency Marketing Program Customer Purchasing Pattern Customer Preferences Overall Weighted Mean LEGEND: Scale 3 2 1 Statistical Limits 2.

59 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City The table 3 shows the summary of effect of frequency marketing program in terms of customer purchasing pattern and customer preferences. Both variables were “moderate” in descriptive equivalent which means they are moderately affected by the implementation of frequency marketing program.

62 L 3 ) 30 (60 ) 12 (12 1.00 1.67-2.33 Descriptive Equivalent (DE) High (H) Moderate (M) 60 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Problems Encountered in the Frequency Marketing Program of 7-eleven In every process the problems are inevitable.69 M 3 (9) k LEGEND: Scale 3 2 Statistical Limits 2. These problems could be major or minor depending on the operation of the business.92 M 1 ) 6 (18 ) 21 (42 ) 23 (23 1. Customers of 7-eleven have encountered the following problems: Table 5 shows the problems encountered in the frequency marketing program of 7-eleven as experienced by the respondents.66 L 2 ) ) 22 (44 ) 25 (25 1.34-3.56 L 4 ) ) 1. Table 4 Problems Encountered in the Frequency Marketing Program of 7-eleven n=50 Marketing strategies/scale Lost loyalty card High points required for certain item Error in pin code Defective card AVERAGE WEIGHTED MEAN H (3) M (2) L (1) 5 (15 21 (42 ) 8 (24 Ran WM DE 24 (24 1.

It shows there is a need for further improvement when it comes to these variables.00-1.62).University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 1 1. This is to keep their customers’ positive attitude in availing items in exchange for points.66 Low (L) The mean of the variables were as follows. 61 .92). The same is true with lowering the minimum amount required to earn points. The 7-eleven must either reduce the points required in order to avail a certain item or lower the minimum amount needed to acquire points.66).56). were the major problems that were being experienced by the respondents. 1) Lost loyalty card (1. High points required for certain item and error in pin code. which were ranked as 1 and 2 respectively. 3) error in pin code (1. Reducing the points required for certain items will inspire their customers to avail more items. Lowering the minimum required amount shows that the customers can now easily save points. therefore providing them opportunities to acquire more items. 2) high points required for certain item (1. and 4) defective card (1.

They must provide service where the customers can go to any branch of 7-eleven to seek help particularly in terms of the problems with regards to the loyalty card. The branch code through 7- manager will eleven manager access the 62 . Table 5 Summary of Problems Encountered and Proposed Alternative Measures Problems Encountered High points Proposed Alternative  required for certain item  Measures Reduce the Implementation  points required manager to avail certain in must make a or Lower the petition to their head to minimum implement amount required the proposed to earn points Error in Pin Code  The branch Resetting the pin  measure.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 7-eleven must take an action with regards to having an error in pin code such as forgetting the pin code and the pin code was changed suddenly.

The 7-eleven personnel will fix the loyalty loyalty card card or provide a new loyalty  card In providing a new loyalty card.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City in any branch customer’s account to reset its pin Lost Loyalty Card  Retrieving  code The branch customer manager will account through retrieve the the registered customer phone number account and and providing transfer its new loyalty card information in the new Defective Card  Fixing the loyalty  card Providing new  loyalty card. the 63 .

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City branch manager will retrieve the customer account and transfer its information in the new loyalty card. Table 5 shows the summary of the issue with the highest rank in each variable together with their proposed alternative measures. This is to overcome the problems as experienced by the customers of 7-eleven. 64 .

The main that guided the researcher in this study and allowed the researchers to collect data from the customers of 7-eleven. conclusion based on the findings and recommendations drawn from the conclusions.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Chapter V SUMMARY. Summary of Findings Based on the gathered research. The study attempted to determine the issues and concerns alongside its practice. Customer Purchasing Pattern 65 . following findings were sought as to: 1. Effects of Frequency Marketing Program of 7-eleven in terms of: a. served as basis for the formulation of alternative measures in enhancing the business entity. Results of the investigations. CONCLUSION AND RECOMMENDATIONS This chapter presents the summary of findings.

90) were ranked 1 to 5 respectively. The average weighted mean is 2. Based on the gathered data.08).06). purchasing more often (2. The customers are now preferring 7eleven because of it being convenient and available at all times.98). Hangout (2.05 and is “moderate”. Customer Preferences Quality Service (2.06) were all ranked 1 to 6 respectively. and availing the benefits of the loyalty card (1. b.30). Loyalty (2. satisfied with the loyalty card (2. the researchers found out that Customer Purchasing pattern is more on moderate which means that the effect of the frequency marketing program of 7-eleven have the tendency to increase or decrease. The Customer Preferences of 766 . purchasing more products (1.40).28). The descriptive equivalent of the respective variables were all moderate.22). Convenience (2.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Earning points in the loyalty card (2.12).22). The descriptive equivalent of the respective variables were mostly “moderate” and only one is “high” which is the quality service.23 and is “moderate”. Availability of Service (2. and Promotions (loyalty card) (2. The average weighted mean is 2.

convenient. 67 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City eleven when it comes to quality service is high because of the availability. promotions (loyalty card) of 7-eleven that customers are satisfied with overall variables of 7-eleven.

It also aimed to provide proposed measures to overcome the problems encountered and to further improve their marketing strategy specifically the frequency marketing program.66).56) were ranked 1 to 4 respectively. Problems Encountered in the Frequency Marketing Program of 7-eleven High points required for certain item (1.92). The descriptive equivalent of most of the variable is “low” while only the rank 1 was moderate. Error in pin code (1. and Defective Card (1. the management of the 7-eleven never makes it a reason to stop the 68 . After the implementation of frequency marketing program.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 2. Conclusion The aimed of the study is to assess the effect of frequency marketing program of 7-eleven as experienced of the customers of the said business entity in order to know how the customer purchasing pattern and customer preferences of the respondents were affected. Despite these difficulties. Lost loyalty card (1. several problems were encountered.69 and is “moderate. The average weighted mean is 1.62).

The Researchers concluded that this study would help the people engaged in the same kind of industry and others especially business students. to provide more valued service to customers and to enhance their own marketing strategy. 69 . the study set out the following recommendations: 1.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City business. The proposed measures for the problems encountered by the business as cited in Chapter IV can be used as a guide by the branch manager to further improve their promotion strategies focusing on frequency marketing program. The researchers also came up with measures to take to at least minimize the problem and improve their marketing strategy. The frequency marketing program particularly the “everyday reward card” of 7-eleven is a great opportunity to promote their business. The study has a primary aimed which was to assess the effect of the frequency marketing program of 7-eleven as experienced by Respondents in order to know the how the customer purchasing pattern and customer preferences of the respondents were affected and provide its proposed measures. Recommendations Based on the findings and conclusions the researchers have presented.

It is recommended for future researchers to pursue more similar research study and the researchers highly recommend the aspects that the group has not tackled or discussed precisely on the study. The proposed measures can also be used by other branch of 7eleven and any related businesses to further improve their promotional activities especially with frequency marketing program.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 2. 3. 70 .

et. et.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City BIBLIOGRAPHY A. UNPUBLISHED MATERIALS Sharp. al. 1997 Loyalty programs and their impact on repeat-purchase loyalty patterns Kivetz and Simonson 2002 Earning the Right to Indulge: Effort as a Determinant of Customer Preferences MaCorr 2003 Uncles. al. 2003 Dr. Pratyush Tripathi 2003 towards Frequency Program Rewards Understanding Customer Purchasing Behavior Customer Loyalty and Customer Loyalty Program Exploring Customer Purchase Preference in special reference to Vegetable purchase 71 .

html http://www.com/types-of-sales-promotion/consumersales-promotions http://www.files.entrepreneur.cleverism. al.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Ganesh 2004 Managing customer preferences in a multi‐channel environment using Web Li.pdf http://www.wordpress.pdf http://www.edu/cscas/anth/nuevosouth/upload/studying customerbehaviorinretailstores-090623023217-phpapp01slideshare.com 72 .ecu. 2007 Nelson 2007 services Traditional Purchasing Pattern Customer Preferences in Vegetable Retailing B.knowthis.th/kuis/2549/warakon-suk-all.com.ac. et.ku.ph/franchising/ministopphilippines-a-true-business-partner http://www.lib.pdf https://byronsharp.mbaskool.com/business-concepts/marketing-andstrategy-terms/11917-frequency-marketing.com/2008/03/4025loyaltyp rogs. WEBSITES www.

wikipedia.lib.html http://pana.ac.japan-guide.com/e/e2071.org/wiki/Convenience_store http://www.ph/filipinos-increasing-appetite-forconvenience-spurring-convenience-store-growth/ http://www.pdf 73 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City http://searchcrm.com.com/definition/loyalty-cardprogram https://en.th/kuis/2549/warakorn-suk-all.techtarget.ku.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City APPENDIX A Letter to Conduct Study 74 .

We are doing a short survey and the objective of this research is to collect data about the effect of implementation of Everyday Reward Card of 7-eleven at your organization. Thank you very much for participating in our study. Below is the questionnaire. Philippines. RAQUIDAN Group leader Part I Name (Optional):_________________________________ Sex: ( ) Male ( ) Female Age: ( ) below 20 ( ) 21 – 30 ( ) 31 above Marital Status: ( ) Single ( ) Married Type of Occupation: ( ) Self-employed ( ) government-employed ( ) unemployed 75 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City APPENDIX B Survey Questionnaire Dear Respondents: We would like to introduce to you our group in Business Administration at University of Luzon. STEPHEN P. This work is in accordance with methods promoted by University of Luzon. Dagupan City. The results will be made confidential and will be the asset of the university. Respectfully Yours.

3 – High 2 – Moderate 1 – Low Loyalty Quality service Availability Convenient Promotions (Loyalty Card) 76 . Please put a tick (√) on the box to scale your reason for preference. Please put a tick (√) on the box to determine the changes you experienced after the implementation of Everyday Reward Card of 7-eleven.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City ( ) Student Part II Customer Purchasing Pattern Direction. 3 – High 2 – Moderate 1 – Low 3 2 1 3 2 1 I purchase more often I purchase more products I avail the benefits of the loyalty card I save points in loyalty card Satisfied with the loyalty card Others Specify:______________________________ ______________________________ Customer Preferences Direction.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Hangout Referred by others No reason at all Others Specify:______________________________ ______________________________ Part III Direction. 3 – High 2 – Moderate 1 – Low Customer Purchasing Pattern 3 2 1 3 2 1 Lost Loyalty card High points required for certain item Forgot Pin Code Defective card Product expiration Others Specify:______________________________ ______________________________ Customer Preferences Other products are unavailable High priced products Customer Service 7-eleven Regulations Cleanliness Ambiance 77 . please put a (√) tick on the box to scale the problems encountered in the implementation of Everyday Reward Card of 7-eleven. Based from your perspective.

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City Others Specify:______________________________ ______________________________ “Thank You for your Cooperation!  ” 78 .

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City APPENDIX C Documentation 79 .

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 80 .

University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City 81 .

Barbara University of Luzon Perez Boulevard. Pangasinan Mr. Raquidan Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B Educational Background Primary: Secondary: VITAE Stephen December 28. Barbara. Sta. Florencio O.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM A Personal Data Name: P. 1997 Sta. Barbara Daniel Maramba National High School Tertiary: Poblacion Norte. Barbara .Pangasinan Filipino Single Tuliao. Lustina #53 Tuliao Sta. Marilou P. Dagupan City 82 . Sta. Elementary School I Tuliao. Lustina Mrs.

Pangasinan Filipino Single West Central Elementary School I Poblacion Oeste. Caguioa Mrs. Dagupan City University of Luzon Perez Boulevard. Caguioa 70 Mangin Dagupan City. Educational Background Primary: Secondary: Tertiary: Sam Jordan F. Caguioa July 02. Virginia F.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM VITAE A.. Mario P. Dagupan City Dagupan City National High School Tapuac Dist. Pangasinan Mr. Dagupan City 83 . 1995 Mangaldan. Personal Data Name: Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B.

1997 Dagupan City Mr. Kho Birthday: Birthplace: Father: Mother: Address: February 28.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM VITAE A. Pangasinan Saint Columban’s College Lingayen. Kho Mrs. Tonton Lingayen. Personal Data Name: Joanne Melissa C. Nationality: Civil Status: B. Dagupan City 84 . Pangasinan University of Luzon Perez Boulevard. Joselito S. Educational Background Primary: Secondary: Tertiary: Pangasinan Filipino Single Saint Columban’s College Lingayen. Kho 248 Brgy. Judy Ann C.

Elvira M. Dagupan City Mr.. Dagupan City University of Luzon Perez Boulevard. Dagupan City CURRICULUM VITAE A. Educational Background Primary: Secondary: Tertiary: Elsa M. Personal Data Name: Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B. Dagupan City Dagupan City National High School Tapuac Dist. Ayson Mrs.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM VITAE A. Ayson November 8. Personal Data 85 . 1980 Lucao.Ayson 315 Lucao District Dagupan City. Adolfo Salde E. Pangasinan Filipino Single West Central Elementary School I Poblacion Oeste.

Dagupan City Dagupan City National High School Tapuac Dist.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City s Name: Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B. Arnold R. Anolid. Camarines Sur Mr. Dagupan City 86 . De Leon Blk. Mangaldan Filipino Single West Central Elementary School I Poblacion Oeste. De Leon March 03. Dagupan City University of Luzon Perez Boulevard. De Leon Mrs. 5 Lot 23 Jewelville Subd. 1998 Sipocot. Beverly V. Educational Background Primary: Secondary: Tertiary: Prince Edward V..

Personal Data Name: Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B. Pangasinan Filipino Single Calasiao Central Elementary School I Calasiao Pangasinan Calasiao Comprehensive National High School Calasiao Pangasinan University of Luzon Perez Boulevard. Educational Background Primary: Secondary: Tertiary: Leslie Ferrer October 13. Dagupan City 87 . Pangasinan Mr. 1996 Calasiao.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM VITAE A. Generosa C Ferrer #388 Lasip Bouquig Calasiao. Leonardo C Ferrer Mrs.

Pangasinan Filipino Single Anonang Elementary School Anonang.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM VITAE A. Cabutotan November 06. Dagupan City 88 . Educational Background Primary: Secondary: Tertiary: Judy Ann D. San Fabian. San Fabian Anonang National High School Anonang. Personal Data Name: Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B. San Fabian University of Luzon Perez Boulevard. Shirley Cabutotan 385 Anonang. Benjamin Cabutotan Mrs. San Fabian. Pangasinan Mr. 1997 Anonang.

Diaz December 29. Pangasinan Filipino Single Calasiao Central School Calasiao. Dagupan City 89 .University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM VITAE A. Diaz San Miguel Calasiao. 1997 Angeles. Ponchito M. Ligaya N. Educational Background Primary: Secondary: Tertiary: Christine Dei N. Pangasinan University of Luzon Perez Boulevard. Diaz Mrs. Personal Data Name: Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B. Pangasinan Calasiao Comprehensive National High School Calasiao. Pampamga Mr.

Mary Grace S.University of Luzon COLLEGE OF BUSINESS ADMINISTRATION Dagupan City CURRICULUM VITAE A. Barbara. Barbara. Barbara Pangasinan Filipino Single Cablong Elementary School Cablong Sta. Joaquin #371 Cablong Sta. Joaquin Birthday: Birthplace: Father: Mother: Address: Nationality: Civil Status: B. 1996 Sampaloc. Pangasinan University of Luzon Perez Boulevard. Educational Background Primary: December 20. Joaquin Mrs. Parańaque. Personal Data Name: Sharmine S. Dagupan City 90 . Pangasinan Secondary: Payas National High School Tertiary: Payas Sta. Manila Mr. Diamante T.