Chapter 1

The Problem and its Background

Introduction

Starting a business is not as easy as you think and harder than you think it is. Improving

your business as time goes by is really a must, but improving your customers’ satisfaction is more

important. Even if your business is really big, customer satisfaction must take place in the business

and it can bring your business down if your customers are not satisfied at all. As you improve your

business it needs to be equal in improving your customer satisfaction. Measuring customer

satisfaction is important, it helps you know the problem of your products that make your customers

unsatisfied and solve it. A customer is a part of the business that you need to take care and to be

careful of. Customer satisfaction will not happen without good customer service. There are dozens

of ways to improve this factor in order to make your business successful. Although it’s hard to

make your business successful if you love what you are doing, where you at right now and your

customers it will be much easier to make it successful in the future.

Background of the Study

It is important for every business to provide their customers a good service. One of the

primary goals of any marketing strategy should be to identify and meet the needs of the consumer.

The customer is the foundation of any business' success. It may take some of your time but good

customer service can lead to high customer satisfaction that can help and will help your business

grow and be successful in the future. Every staff in the business do their best for their customer to

get their satisfaction, but due to overthinking of making your customers satisfied you make

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mistakes that will lead to a failure. Many businesses fail to grow due to lack of customer

satisfaction. This study is made to provide entrepreneurs with a guide to high customer satisfaction

that will help your business grow and prosper.

Statement of the Problem

As the time goes by, business is getting bigger and bigger in our economy. Giligan’s –

Main Square is located at 102 Molino Boulevard, Molino Cavite. It is a newly build restaurant in

the mall. As a new business owner, there are many things you need to do to be a successful business

man and to have a successful business. Many people like eating outside their home and going into

malls. You can’t deny eating in some fast food restaurants and restaurants when you are away from

your home. You need to be ready of what will happen into your business and you need to be aware

of your customers if they have a problem regarding your business. Customer service is a must in

able to make your customer satisfied and make them comeback. Question regarding the study are

listed below:

1. What improvements will make customers highly satisfied?

2. What kind of improvements needed for high customer satisfaction?

Assumptions of the study

The researcher seeks to describe how business become successful by good customer

service and how a business turns down because of lack of customer satisfaction. This will illustrate

different services for the customer to be highly satisfied and be a loyal customer to a business. The

objective of this study is to identify kind of improvement needed to achieve high customer

satisfaction in Giligan’s- Main Square. The study also aims to benefit entrepreneurs, business and

the employees & staffs of the business upon the information gathered on the end of the study.

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Theoretical Framework

Rosenberg & Czepiel (2017) stated that customer loyalty and satisfaction is vital for

modern day business for two main reasons. First, customers are scarce resource it is far easier to

obtain from an old customer than from a new one. Second, customer loyalty and satisfaction has a

positive effect on the profitability revenues of the company.

Scarce resources are the workers, raw materials, equipment and organizers that are used to

produce scarce goods. Like the more general society-wide condition of scarcity, a given resource falls

into the scarce category because it has a limited availability in combination with greater (potentially

unlimited) productive uses (amosweb). Customer loyalty and satisfaction has really a great positive effect

on the profitability revenues of the company. When you have loyal customers, they tend to introduce your

business to other people as they have known your business for a long time and met their expectation and

made them satisfied enough which is the reason why they became loyal customers.

Conceptual Framework

Input Process Output

• Materials that  Survey  Reasons why
affect the customer  Observation customer
satisfaction became satisfied
• Quality that
affects satisfaction

• Location that can

affect satisfaction Chapter 2

Significance of the Study

Business world is becoming huge as the time passes by. Customer service is part of the

business and can highly impact your business. One business can be turned down and be gone to

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business world if they did not meet their customers’ satisfaction. Success of the business can be

somehow determined on how you take care of your business, employees, staffs and most

importantly your customers. This study will benefit the following:

 Entrepreneurs – This study will tackle about how you can make your customer satisfied

and improvements to have high customer satisfaction. This will help entrepreneurs to be

aware of their customers, be a guide for them to meet their customers’ satisfaction and to

help them be a successful entrepreneur.

 Business – This study will tackle about how business fail, how business grow and become

successful and how to gain customer loyalty from a good customer service. There are many

things to consider before your business become successful.

 Employees and Staffs – To have a high customer satisfaction, employees and staves’

cooperation is needed. This study will tackle about what you need to do as a staff and

employee of the business to have customer satisfaction and customer loyalty to the

business.

Scope and Delimitations

This study was limited and conducted only at Giligan’s – Main Square located at 102

Molino Boulevard, Molino Cavite during the month of December to March in the year of 2018

and 2019. The respondents of the study are customers, specifically students, families, and loyal

customers who eats in Giligan’s – Main Square. The researcher has planned to survey 3 Giligan’s

– Main Square customers either male of female ranging from 19-53 years of age. This is used in

order to formulate an effective study regarding the improvements to have high customer

satisfaction and kind of improvements needed to achieve high customer satisfaction.

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Definition of Terms

Some terminologies that are going to be frequently used are listed below for the better

understanding of the study:

1. Entrepreneur – Is an individual who, rather than working as an employee, founds and

runs a small business, assuming all the risks and rewards of the venture. (Investopedia)

2. Customer -Is an individual or business that purchases the goods or services produced by

a business. (Investopedia)

3. Business – Is an organization or enterprising entity engaged in commercial, industrial, or

professional activities. Business is also organized efforts and activities of individuals to

produce and sell goods and service for profit. (Investopedia)

4. Businessman – A person who is employed by an organization or company. Businessman

are often associated with white collar jobs. (Businessdictionary)

5. Customer Service - Is the act of taking care of the customer’s needs by providing and

delivering professional, helpful, high quality service and assistance before, during, and

after the customer’s requirements are met. (study.com)

6. Customer Satisfaction – Is a term frequently used in marketing. It is a measure of how

products and services supplied by a company meet or surpass customer expectation.

(Wikipedia)

7. Employee – An individual who works part-time or full-time under a contract of

employment, whether oral or written, express or implied, and has recognized rights and

duties. Also called worker. (Businessdictionary)

8. Staff - All the people employed by a particular organization. (Merriam Webster)

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9. Restaurant – A place where people pay to sit and eat meals that are cooked and served on

the premises. (Merriam Webster)

10. Fast food Restaurant - Also known as a quick service restaurant (QSR) within the

industry, is a specific type of restaurant that serves fast food cuisine and has minimal table

service. (Merriam Webster)

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 Review of Related Literature and Studies

Customer service is often at the core of a business which aims to give a service that leaves

the customer feeling esteemed and regarded. In spite of the fact that giving an exceptional service

can include additional asset, time and cash, when you take care of your business, employees, and

customer well, it will empower you to emerge and stand out from other business that offers the

same kind of service or product, keep up a positive reputation among future customers and

encourage customers to buy from your business once more.

Customer

Customers who are satisfied with a company’s offering may tell others about it – positive

word-of-moth, just as dissatisfied customer also bad mouth the company to other. Goodman (2009)

suggested that dissatisfied customers tell on average ten people about the company as against 5

people by satisfied customer. He also asserted that it cost five times to attract a new customer than

to maintain a current customer.

Service

Services are deeds, performances and processes provided or coproduced by one entity or

person for and with another entity or person. Services differ from product due to their intangibility,

heterogeneity, simultaneous production and consumption and perishability (Zeithaml et al, 2009).

Service quality must be determined by certain external and internal factors of life of the

organization. The more consciously the specific content of these factors are, the subtler they are

considered in the development of the Service Quality, the greater is the probability that it will be

effective (Ronzina 2010).

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Customer Satisfaction

Customer satisfaction information helps companies to evaluate their ability in meeting

customers’ needs and expectations effectively (Zeithaml et al, 2009). It also helps companies to

analyse the performance of an offering to customers in order to identify areas for improvements

as well as what areas customers consider to be very important to them (Zeithaml et al, 2009).

Customer Word-of-Mouth

Saha and Theingi (2009) have described word-of-mouth as “…a flow of information about

products, services, or companies from one customer to another. As such, word-of-mouth represents

a trusted external source of information by which customers can evaluate a product or service”.

Goodman (2009) indicated that while satisfied customers tell on average 5 other people,

dissatisfied customer tells about 10 other people. Other researchers (Brown et al., 2005; Babin et

al., 2005; Saha and Theingi, 2009) have found a positive correlation between customer satisfaction

and word-of-mouth communication.

The product and its features, functions, reliability, sales activity and customer support are

the most important topics required to meet or exceed the satisfaction of the customers. Satisfied

customers usually rebound and buy more. Besides buying more they also work as a network to

reach other potential customers by sharing experiences (Hague & Hague 2016.)

Summary

A business future depends on how you manage it as well as your employees, suppliers, and

customers. Customer is one of the most important factor that a business owner can’t ignore. They

can help your business improve and become well known by existing customer. Service is important

for you customer, providing a good service can make your customers satisfied. Satisfaction can

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lead to loyalty which help the business grow. Customers usually depend on the experience of others

before buying a service, with loyal customers’ word of mouth, it can lead to your business

popularity that is a great opportunity to make your business grow and stay in the business industry

for a long period of time.

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 Chapter 3

Research Design

Research Design

The research design that will be used is descriptive design as this study gives a better

understanding on how customers are satisfied and unsatisfied and what improvements will be

needed to increase customer satisfaction of a business. Provides much specific results in the

collected data for the study. As this study aims to know what kind of improvements will give a

better and good impact to customers that leads to a high customer satisfaction and customer loyalty.

Target population and Sampling

This study will be held in Giligan’s – Main Square is located at 102 Molino Boulevard,

Molino Cavite. The sampling that will be used is Non-Probability Sampling where the researcher

chose the subject that will be given a survey. Availability sampling is used in conducting a survey

wherein the respondents are chosen based on their availability.

Research Instrument

To be able to offer more accurate result, an aggregate of four (4) survey questions will be

given to the selected customers of Giligan’s - Main Square. Self- Administered Questionnaire will

be used in conducting survey question in which the researcher face and interacts with the

respondents

Data Collection

This study will only focus on the improvements needed for high customer satisfaction in

Giligan’s - Main Square. Stating the possible reason why customer get satisfied and unsatisfied

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that will help on knowing what kind of improvements will be needed in the restaurant. Giving

customers a necessary amount of survey questions. The survey questions include how does the

ambiance and environment affect the customer satisfaction and what improvement in certain areas

are needed to get high customer satisfaction. All of the customers' answer will be compiled and

used for the end result of the study.

Data Analysis

The data that was collected will be analyzed using content analysis wherein the data

collected will be analyzed descriptively. This will make the data organized and be summarized to

present the information in ways that will allow the readers to digest the results clearly.

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 Chapter 4

Results and Analysis

The present study was an attempt to know about the improvements needed for high

customer satisfaction. As stated in the previous chapter, the researcher selected a sample of 3

respondents in Giligan's- Main Square. On this representative sample, a survey was carried out to

find out the improvements for customer to be satisfied. The results obtained were put through

content analysis and are presented in this present chapter.

Analysis

1. Is the ambiance of the restaurant (Giligan’s) enough for customers to be satisfied?

 Respondent one, age 53 answered that the ambiance of the restaurant is not enough for

customers to be satisfied.

 Respondent two, age 25 answered that the ambiance of the restaurant is enough for

customers to be satisfied.

 Respondent three, age 19 answered that the ambiance of the restaurant is enough for

customers to be satisfied.

2. What does the personnel of the restaurant lack at?

 Respondent one, age 53 answered that the personnel of the restaurant lack at

responsiveness.

 Respondent two, age 25 answered that the personnel of the restaurant lack at

responsiveness and communication.

 Respondent three, age 19 answered that the personnel of the restaurant lack at

responsiveness.

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3. What kind of improvement needed for the restaurant?

 Respondent one, age 53 answered that the kind of improvement the restaurant needed is

improvement in service.

 Respondent two, age 25 answered that the kind of improvement the restaurant needed is

improvement in service.

 Respondent three, age 19 answered that the kind of improvement the restaurant needed is

improvement in service.

4. What improvements in the restaurants facility is needed?

 Respondent one, age 53 answered that improvement needed for the restaurants facility is

improvement in designs.

 Respondent two, age 25 answered that the improvement needed for the restaurants facility

is improvement in air conditioner.

 Respondent three, age 19 answered that the improvement needed for the restaurants facility

is improvement in air conditioner.

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 Chapter 5

Summary of Findings, Conclusions, and Recommendations

This chapter presents the summary of the findings, conclusions and recommendations

based on the data analyzed in the previous chapter. The conclusions were based on the purpose,

research questions and results of the study. The implication of these findings and the resultant

recommendations will also be explained. Recommendations were based on the conclusions and

purpose of the study.

Summary

The focus of these study was to determine the improvements needed to achieve high

customer satisfaction in Gilligan’s - Main Square located at located at 102 Molino Boulevard,

Molino Cavite. The method used for this research is descriptive and the survey questions was used

for data gathering and collection. The research population was Gilligan’s - Main Square customer

who were a regular and a new customer of the restaurant ranging from 19-53 years of age and been

conducted during the month of February 2019. The sampling method used for this study was the

availability sampling. The number of respondents who took part in this research was 3.

The researcher re-examined the research objectives stated at the beginning of the study. After

reviewing the results presented in chapter 4, and the conclusions and recommendations of chapter

5, evaluation showed that the researcher's objectives had been achieved.

The objective of this study was to:

 Identify the kind of improvement needed to achieve high customer satisfaction in

Gilligan’s - Main Square

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Objective 1: Identify the kind of improvement needed for high customer satisfaction

The findings of this research revealed that the customers of the restaurant have felt that

there is something missing for high customer satisfaction. The improvement needed suggested by

the customers is improvement in service that is important for customer satisfaction. The

improvement needed for the personnel of the restaurant is responsiveness and communication. The

improvement needed for the restaurants facility is improvement in designs and air conditioner.

Conclusion

From the analysis, it was found out that: Customers are likely to observe the restaurant

itself and the personnel of the restaurant. The ambiance of the restaurant can also affect the

satisfaction of customers whether it suits their taste or they feel that there is something missing in

the ambiance that they want to see and feel in the restaurant. What the customer love is seating

while relaxing with a cold temperature provided by an air conditioner, eating and looking at the

designs for greater atmosphere, it was found out that the restaurant seems to have a problem in air

conditioner and lack at designs. Lack of service is one of the common problem a restaurant has,

customers felt that the personnel need improvement in responsiveness and communication that

affects the customers minds and emotions. The customers of the restaurant wanted some changes

in the restaurant as it can help in gaining new customers and for them to be satisfied.

Recommendations

For the personnel’s and business owners:

 Greet customers as soon as they enter the restaurant.

 Customers hate to wait. Be attentive and pay attention to your customer.

 Ask the customers if there is something they want and if there is a problem.

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  Talk to your customers if they wanted to and stay calm.

 Be sure that you are giving the right service for your customers.

 Have time for the business

 Use customer comment cards to know what to improve in your business

For the future researcher who aim to write a similar study:

 You could try conducting the survey, interview or questionnaire on a bigger population for

more credible research paper.

 For further studies, aside from improvements needed for high cutomer satisfaction, you

could also try knowing the factors why customer became satisfied and dissatisfied.

 Find more sources to support your ideas. More information would make your research

paper credible

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 References

Carl Hose. (2011). Retrieved from: https://smallbusiness.chron.com/customer-importance-

marketing-22741.html

Kabu Khadka & Soniya Maharjan. (2017). Retrieved from:

https://core.ac.uk/download/pdf/161421179.pdf

Why is Customer Service Important. (2016). Retrived from:

https://www.performanceinpeople.co.uk/blog/why-is-customer-service-important/

Scarce Resource. (n.d.) Retrieved from: http://www.amosweb.com/cgi-

bin/awb_nav.pl?s=wpd&c=dsp&k=scarce+resource

Models and theories of customer satisfaction. (n.d.). Retrieved from:

https://www.ukessays.com/essays/marketing/models-and-theories-of-customer-satisfaction-

marketing-essay.php

Asya Archakova. (2013). Retrieved from:

https://www.theseus.fi/bitstream/handle/10024/65503/Archakova_Asya.pdf?sequence=1&isAllo

wed=y

Models and theories of customer satisfaction. (2017). Retrieved from:

https://buyessayclub.org/2017/09/28/models-and-theories-of-customer-satisfaction/

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 Apendixes

Name (optional):
Age:

1. Is The ambiance of the restaurant (Giligan’s) enough for customers to be satisfied?

o Yes
o No

2. What does the personnel of the restaurant lack at?

o Competence
o Courtesy
o Credibility
o Reliability
o Responsiveness
o Communication

3. What kind of improvement needed for the restaurant?

o Improvement in service
o Improvement in personnel
o Improvement in product
o Improvement in skills and knowledge

4. What improvements in the restaurants facility needed?

o Improvement in light
o Improvement in tables & chairs
o Improvement in air conditioner
o Improvement in designs
o Improvement in utensils
o Improvement in flooring

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