CHAPTER 1

INTRODUCTION, PROBLEM AND RESEARCH APPROACH

1.1 - INTRODUCTION

According to the study of Braak et.al (2019) the nicotine-vaping products

(NVP) or also called as e-cigarettes had been so popular over the past decade

up until now. The prevalent selling of these products was one of the biggest

contributing factors why smokers are quitting aid-used cigarettes products.

According to the study of Sussman et.al (2016) the reason of the popularity

and recent great turbulence of e-cigarettes or electronic cigarettes was

accompanied by the proliferation through selling products in vape shops in the

United States and other locations elsewhere. According to the study of Lee &

Kim (2015) the focus of these vape shops are the following: to sustain and

provide e-cigarette products and other related components to the consumers

especially smokers, providing them a setting where discussions of e-cigarette

hardware from retailers, flavor sampling, and enable to create a socializing

environment for the consumers are possible.

According to Investopedia (2019) the supply and demand are both keys

to economic activity. These two factors influence each other and have impact

over the pricing of consumer goods and services within an economy.

According to Wadsworth et.al (2016) there are three classifications of

vaping device types. The device that often disposable or rechargeable with a

feature of replaceable cartridges or e-cigarettes is called first generation e-

cigarettes. The device that is designed that a liquid can be refilled by the user

is called “Tank Vape Device” and falls under the second generation e-cigarettes.

The third generation e-cigarettes are commonly known to its feature of having

higher capacity battery and can be modified easily often called “mods”.

The categorizations of these e-cigarettes types and other related products

are evolving over time and vaping manufacturing companies continue to

innovate and produce new products to the market (Farsalinos & Polosa, 2014).

The vaping community has been the main affected by these product

innovations and consumer’s preferences are shaped by these innovations and

their demands also expand. Moreover, the business operations of Maldito’s

Vape Shop were also affected since the management cannot cater anymore the

demands of the consumers from their product offerings.

Maldito’s Vape Shop is located in P10, Magellan Street, Poblacion Sur,

Don Carlos, Bukidnon. It was established on the July 8, 2018 by Mr. Marben

Jose O. Gaid. In the early stage, the shop only offers 10 varieties of flavored e-

juices, parts and components as well as different mods for vaping devices. It

expanded its product offering when the business already gained popularity and

exposure in the area since they are the first and only vape shop in the place.

The nature of the business is buy-and-sell or reselling and (Ferreira, 2019)

defined reselling or reseller as a business who buys finished products from any

manufacturing companies and then sell it to consumers for a basis of profit.

 This study aims to help the business maintain its product availability

where (Salam, 2016) defined product availability as an important indicator of

quality and maintaining the stock of the business to cater the demands of its

clients. The researchers would like also to examine its proposal of

implementing the “pre-ordering” system in the business whether it will be

preferred by the customers. Pre-ordering is defined by as a framework or

“choice architecture” that may influence and increase and improves

individual’s choice and decision based on how options are presented (Thaler &

Sustein, 2009).

1.2 – CONCEPTUAL FRAMEWORK

The term conceptual framework is defined in a statistical perspective as a

tool that describes the relation of main concepts of a study that is arranged in

logical structure that will provide a picture as a display of ideas and how it will

relate to one another (Grant & Osanloo, 2014).

INDEPENDENT VARIABLE

Profile of the Preferences of the Product

Respondents Customers Availability

DEPENDENT
Customer
Satisfaction VARIABLE

Quantitative Determine the Assess the

Research satisfaction level demands of the
of the customers. customers.
(Survey)

PROCESS OUTPUT

Figure 1. The diagram of the researchers’ conceptual framework.

 According to Helmenstine (2019) independent variable is define as a

variable that can be controlled and changed in scientific experiment that

represents a reason or a cause for an outcome. Dependent variable is defined

by Helmenstine (2019) as a variable that relies to the independent variable. It is

a variable that the researchers need to record and measure if there are any

changes in the independent variable. The researchers consider the following as

independent variables: customer profile, customer preferences, and product

availability to get the dependent variable which is consumer satisfaction.

The researchers would like to consider the quantitative research as the

methodology to this study, specifically the survey method. Quantitative

research is defined as a tool that limits itself to what can be quantified or

measured through statistical aspect (Winter, 2000).

The researchers would like the following outputs to this study such as

the satisfaction level of the customers and assessing the demands of the

customers to make sure that the store would aim the improvements in

sustaining products to their customers.

1.3 – STATEMENT OF THE PROBLEM

According to Bryman (2007) statement of the problem is a clear

expression and definite statement from a condition to be improved upon, area

of concern, a difficulty to be resolved or eliminated that exists in the scholarly

literature that needs points or meaningful understanding and deliberate

investigation.
 The business cannot cater anymore all the demand of the customers

such as: Vape Parts and Components, Flavored Juices, and Vape Mods for the

reason that the supplies of the business are only limited and dependent to the

supplier. The business also cannot risk in expanding its product offering since

the customers have different preferences to each other.

In the end of this research, the researchers are expecting to answer the

following questions:

 Profile of the respondents

-Age

-Sex

-Educational Attainment

-Occupation

 What could be the satisfactory level of the customers in terms of the

following:

-Current Service Offering

-Implementation of “Pre-ordering” system

 What are the suggestions of the customers that the business should

take into considerations regarding its product offering?

1.4 – SCOPE AND LIMITATION

This research is only limited to the customers of Malditos Vape Shop who

patronizes their product offering.

Determining the factors that affect the business operations of the entity

in terms of supply distribution to the customer in accordance to the demands

was the focus of this research. The information needed will be gathered

through conducting survey and to give survey questionnaires to the

respondents for the quantitative approach.

1.5 – SIGNIFICANCE OF THE STUDY

SIGNIFICANCE OF THE STUDY

This study gives the business entity an idea about the techniques and

improvements regarding the products that must be considered in their product

offering and efficiency of the business operations.

This section of the study will provide information regarding the

significances to the beneficiaries.

To the Business Management. The researchers believed that the entity

would benefit in a way that this research will provide them improvements,

techniques, ideas, in terms of business operations especially in product offering

and distribution of supplies.

 To the customers. This research will provide and emphasis on the

needs and demands of the customer that the business should address. They

will benefit also in terms of boosting their satisfaction level since their needs

and demands were already identified and considered.

To the researchers. The researchers can benefit in terms of developing

their knowledge and honing their skills in conducting research. They will also

benefit in terms of acquiring and attaining their professions in the future.

To the instructors. They can benefit since the information that was

gathered will be relayed to them and it will help them expand their knowledge

about the type of business operation that was focused in conducting this

research.

1.6 – DEFINITION OF TERMS