You are on page 1of 34

COLLEGE OF ST.

CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

MARKETABILITY OF SELECTED CONVENIENCE STORE IN

SELECTED AREAS IN QUEZON CITY AS

PERCEIVED BY CUSTOMER

A thesis presented to the faculty of

College of St. Catherine

Quezon City

In partial fulfillment of the Requirements for the

Bachelor of Science in Business Administration

Major in Marketing Management

Geralyn Jumaylab

Jennifer Pedralvez

Ina Rempillo

Wendy Sebastian

March 2016

Chapter 1
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

THE PROBLEM AND ITS BACKGROUND

A Convenience store, c-store, small grocery, warehouse, mini

market or corner shop/store is a small store that stocks a range of

everyday items such as groceries, snack foods, candy, soft drinks,

cigarettes, newspaper and etc., such stores may also offer money order

and wire transfer services. In some jurisdictions, corner stores are

licensed to sell alcohol, typical beer and wine. They differ from general

stores and village shops in that they are not in a rural location and are

used as a convenient supplement to larger store.

Convenient stores has ten very popular crime target, notably

shoplifting and robbery. Convenient store have their plans on establishing

special task forces through the help of the authorities. In America, every

convenience stores are often been targeted through armed robbery.

In some areas of the United States, it is unusual for store clerks to

be working with armed bulletproof glass and windows, or even during

daylight hours. Some convenient stores may even limit their access

inside at night or at wee hours, which requires every customers to

approach through a walk-up window for this situation in making

purchases. The main dangers are that almost all convenience stores may

have only one person working in night shift mode. Most of the transaction
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

are in cash value and easy resold merchandise like liquor, lottery tickets,

and cigarettes on the site.

The reasons for the higher rate of the crime at convenience stores

may be attribute to various factors including, (a) the small number of

employees per store makes it difficult to stop or to prevent criminals (b)

the extended hours of many convenience stores present more

opportunities when some customers and (c) the smaller size makes it

easy for criminals to quickly navigate the plan and enter and exit close to

the cash register of the stores. Most of the convenience store have

installed security cameras to help to detect robberies and shoplifting. All

convenience stores have a friendly relationship with the local police.

Since retail landscape and consumers shopping pattern are

developed in nature, changing following trends are also happening around

the world that remains a need for studying consumer’s behavior. With this

growth in disposable incomes and improving infrastructure

Convenience stores usually charge significantly higher prices than

conventional grocery stores or supermarkets. A convenience stores order

smaller quantities of inventory at higher per-unit prices from wholesalers

but their products are just the same products in other stores. The main

concern of this study is why do customers still patronizing convenience

stores even the prices are more expensive and even they have a wider
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

choice of stores where they can choose to shop which follows the

suggested retail price (SRP) on every product.

STATEMENT OF THE PROBLEM

1. What is the profile of the customers in terms of:


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

1.1 gender ;

1.2 civil status ; and

1.3 age ?

2. What is the level of satisfaction of the customers in terms of;

2.1 accessibility ;

2.2 safety ; and

2.3 convenience ?

3. What are the reasons why customers prefer to buy in the convenience

store?

4. How do customers perceived the marketability of a convenience store

in terms of:

4.1 price of the product ;

4.2 quality of the product ;

4.3 service rendered by the crews to customers ?

5. What are the marketing strategies used by the convenience stores?

ASSUMPTION
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

The following assumption were posed for this study:

1. There are reasons why people prefer to buy in convenience store.

2. There are different marketing strategies employed by the convenience

store.

3. The customers have different perception on the different aspect of

marketability of a convenience store.

SIGNIFICANCE OF THE STUDY

This study is identified to be beneficial to the following:

To the first time business owners. This study can help them to

gain more knowledge in dealing with different consequences as they

manage their business.

To the customers. This study can help those who are also curious

about the marketability and the marketing strategy on how the owners

handle their business.

To the marketing students. This study can help as a reference

and they can get information from the result of this research. They also

get some ideas which is relevant to their topic or study.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

To the future researchers. They can use this as their reference in

creating their own research. This may contain some ideas which is

relevant to their study.

SCOPE AND DELIMITATION

This research was conducted to be able to know the marketability

of selected convenience store in selected areas in Quezon City. The

researchers conducted this study in two selected convenience stores in

selected areas in Quezon City such as Novaliches and Fairview, which is

the 7-Eleven and the Ministop which operates 24 hours and 7 days a

week. Those branches who are not operating 24 hours and 7 days a week

are not included as respondent in the study.

DEFINITION OF KEY TERMS

The following terms were defined within the context of the study:

1. Accessibility

Extent to which a consumer or user can obtain a good or service at

the time it is needed.

2. Commodity
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

A reasonably interchangeable good or material, bought and sold

freely as an article of commerce.

3. Convenience goods

Refers to the products such as snacks, liquors, candies, cigarettes

and etc.

4. Convenience Store

Sells convenience goods, and opens usually from early hours to

late at night

5. Competitiveness

To the ability and performance of a firm, sub-sector or country to

sell and supply goods and services in a given market,

6. Extrinsic Cue

Cues external to the product, such as price, store image, or brand

image, which serve to influence the consumer’s perception of a product’s

quality.

7. Franchise

An alternative to building "chain stores" to distribute goods that

avoids the investments and liability of a chain.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

8. Intrinsic Cue

Physical characteristics of the product (such as size, color, flavor,

or aroma) that serve to influence the consumer’s perceptions of product

quality.

9. Inventory

An itemized catalog or list of tangible goods or property.

10. Market

An actual or nominal place where forces of demand and supply

operate, and where buyers and sellers interact.

11. Marketability

A measure of the ability of a product to be bought and sold.

12. Marketing Strategy

An organization's strategy that combines all of its marketing goals into one

comprehensive plan.

13. Merchandise

Household, personal use, or commercial goods, wares,

commodities, bought and sold in wholesale and retails.

14. Retailers
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

A business or person that sells goods to the consumer, as opposed to a

wholesaler or supplier, who normally sell their goods to another business.

Chapter 2

REVIEW RELATED LITERATURE AND STUDY

This chapter aims to provide literature and studies related to their

researcher’s study. Books, magazines, journals and even Internet have

been used. The researcher tried to find out the relevant issues and

information necessary for the current study.

This section presents both foreign and local related literatures

relevant to the study. This relevance is shown by the proponents in order

to give more reason and understanding of the proposition.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

LITERATURE

Related local and foreign literatures that are relevant to this study

were included in this chapter.

Local. 7-Eleven is the largest convenience store chain in the

country.It is run by the Philippine Seven Corporation (PSC). Its first store

located in Quezon City opened in 1948. Its branches are now

approximately 1400. Branches of Ministop operated by the Robinsons

Convenience Stores Inc.; and Family Mart operated and franchised by the

joint partnership of Ayala corporation and Rustans which are one of the

largest shopping mall operators in the Philippines.

“We anticipate this trend in the convenience store segment to

persist in the advent of past-paced and more demanding lifestyles of

consumers” said Lourder Deocareza, the new business development

head for Kantar World panel.

Based on Nielsen’s shoppers trends report, as cities and urban

centers in the Philippine countries to expand in the next 10 year,

convenience - driven lifestyle will wield a strong influence on Filipinos

shopping habits and way of life.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

“This is becoming a precious commodity and to cope, consumers

are looking and willing to spend for products and service which provide

convenience” Navalta said a Nielsen’s shopper insights leader in the

Philippines.

Among retail channels, convenience stores saw the most rapid

expansion at 8% , with a store count of 2,900 compared to about 1,000

stores in 2011, Nielsen reported.

There is a growing number of convenience stores, following their

rising popularity among consumers. Key players like 7-Eleven and

Ministop which have one to two check-out counters and are operational

24 hrs a day have stimulated this solid growth as they have started to

expand their footprint into the provinces.

An Maybank ATR Kim Eng titled Asean corporate insight reported

that Philippine Seven Corporation of 7-Eleven, would continue to be the

leader in the industry 1282 outlets that delivered P17.1 million revenues

and P20.6 billion sales last year (2015).

According to the Press release of the county’s largest convenience

store operator, Philippine seven corporation grew its net profit last year by

27.9 percent to P873.3 million on the back of improved operating margin

and continued store expansion. For year 2015, PSC - The local license
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

of 7-Eleven convenience store in the Philippines will increase its capital

expenditure budget by more than 50 percent to 3 billion to support its

accelerated store expansion strategy.

The improved financial performance was attributed to the increase

in sales of all corporate and franchise- operated store, which posted

growth of 19.3 percent to P20.6 billion at end 2014 compare to the

previous year. Overall, PSC opened 286 new stores and closed down 13

stores last year.

Ministop which operates 24 hours and seven days a week, was

brought to the Philippines by Robinsons Retail Holdings,Inc. in

partnership with Ministop Japan and Mitsubishi Corporation. Its goal was

to answer the needs of Filipinos for quality products they can get on the

go.

Fourteen years later, Ministop has served millions of Filipinos as it

continues to expand its network of stores all over the metro, having

recently celebrated the opening of its 400th store at the Trion Towers in

Bonifacio Global City. 24 hour chain is committed to ensuring fast and

efficient service at all times in efforts to provide affordable food and

Beverage choices to its customer.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Foreign. In United States, the convenience store industry

continued to show its resilience in 2014, growing steadily in number of

retail outlets during in economy still trying to find its feet. According to

2015 and NACS/Nielsen convenience industry store count increased from

the year prior’s count of 151,282 stores as of December 31, 2013. The

annual survey shows that the convenience retailing industry roughly

doubled in size over the three decades. At year end 1984, the store count

was 85,300 store, at the year end 1994 the store count was 98,200 stores

and at year end 2004 the store count was 138,205 stores.

According to Nielsen, convenience store account for 33.9% of all

retail outlets in the United States, which is significantly higher than the

U.S total of other retail channels including drugstores (41,799 stores),

supermarket/supercenter ( 41,529 stores) and dollar stores (26, 572

stores).

NACS Chairman Steve Loehr, Vice- President of operation support

at La Crosse, Wis - based kwik - trip said that their continued growth

even during sluggish economy, shows that our core offer of convenience

resonates more than ever with our customers, whether they visit as for a

fuel fill- up, quick snack or drink, or stop by four fill in groceries or healthy

take out meals.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Among the States, Texas continues to leadin store count with

15,434 stores. The rest of the top 10 states for convenience stores are

California ( 11,403), Florida (9,810), New York (8, 247) , Georgia (6,766),

Nork Carolina (6.301), Ohio (5,539), Michigan, (4,907), Illinois (4,670),

and Pennsylvania ( 4,604) which nudged virginia out of the top 10 in

2014.

In Costa Rica, Family owned operated convenience stores called

pulperias have been common since 1990s and there are many of those

stores in every neighborhood. In the 2010s modern convenience stores

were introduced, mainly by the AMPM company, Competitors launched

brands such as Musmanni Minisuper (a chain of bakery stores promoted

to convenience stores), Vindi (operated by Automercado Supermarket

company) and Fresh market (operated by AMPM in format appealing to

prosperous neighborhoods).

While in Indonesia, Convenience stores may on;y be built usually

500 meters from nearest traditional market. In small city or rural areas,

this means a smaller area are often built side by side or at maximum

within 50 meters of each other.

Local convenience store brands are Indomaret and Alfamart. Both

targeting all public, where imported brands like 7-Eleven, Circle K or

Lawson are targeting big cities and cater to a lifestyle more than
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

“convenience”. To be classified as a convenience store,the store should

occupy no more than 100 meters square of service area, on in some local

residence, up to 250 m.

Indonesian government restrict convenience store license, so it can

only be bought by franchisee, using different name and different brand, or

classifying it as cafeteria. A convenience store with a cafeteria license is

only allowed to sell maximum 10 percent of its service space for non food/

beverages product.

In Japan, the convenience-store chains have gradually increased

their presence in the retail sector, they need to evolve even further during

the third phase. Demographic and social changes in japan, including an

aging population, an increase in the number of women entering the work

force, present convenience stores with new opportunities. Women and

elderly people, who have infrequently patronized convenience stores to

date, are now potential new categories of clientele as they discover the

convenience of being able to do all their shopping and run all their errands

within walking distance of their homes.

As the total number of convenience stores in japan tops 55,000

locations, the three major convenience-store chains have been steadily

increasing their network through aggressive store openings, the


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

leveraging of their store networks as infrastructure and their stores as

bases is key to the next phase of evolution in new business development.

In emerging countries centered on Asia, the convenience store

market is in phase two of development. In countries where consumer

spending is forecast to increase accompanying economic growth, the

retail sector are also expected to develop. It is in these promising markets

where a polished business model for convenience stores originating in

Japan can gain a foothold and allow FamilyMart to grow. (FamilyMart

annual report, 2015).

Convenience store provide a limited variety and assortment of

merchandise at a convenient location in 2,000 to 3,000 square foot stores

with fast checkout. They are modern version of neighborhood mom-and-

pop grocery/general store. Convenience stores enable consumers to

make purchases quickly, without having to search through a large store

and wait a long checkout line. Over half the items bought are consumed

within 10 minutes of purchase.

Due to their small size and high sales, convenience stores typically

receive deliveries every day. Convenience sores only offer limited

assortments and variety , and they charge higher prices than

supermarkets, Milk, eggs and bread once represented the majority of their

sales, but now almost all convenience stores sell gasoline, which
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

accounts for over 66 percent of annual sales. The second-highest selling

item i cigarettes, accounting for 14 percent of sales.

Convenience stores also are facing increased competition from

other formats. Sales increase during periods of rising gasoline price, but

their dependency on gasoline sales is a problem because gasoline sales

have low margins. In addition, supercenter and supermarket chains are

attempting to increase customer store visits by offering gasoline and

trying gasoline sales into their frequent shopper programs. Drugstores

and full-line discount stores also are setting up easily accessed areas of

their with convenience store merchandise.

In response to these competitive pressures, convenience stores

are offering more fresh food and healthy fast food that appeals to today’s

on-the-go consumers, especially women and young adults. Some

convenience stores are adding fast casual restaurants, like BP’s Wild

Bean Cafe. 7-Eleven is exploring ways to bring its successful fresh-food

strategy to the United States.

STUDIES

The following studies are presented to provide empirical support to

present study.
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Local. A study conducted by Kantar World panel leader in

consumer knowledge and insights based on consumer panels shows a

45% increase in convenience store purchase from January 2014 to

January 2015. Kantar world panel traced the shopping behavior of 3,000

Filipinos homes in urban and rural areas across the country. Findings

show that from 16.1% in 2014, 18.5% homes are now buying in

convenience stores with one to two check out counters and are optional

24 hours a day like 7- Eleven and Ministop.

Convenience store channel is the fastest growing retail channel in

the Philippines at 45% followed by direct sales at 31% and drug stores at

11%.

A majority of convenience store buyers are from the National

Capital Region, South Luzon, and Mindanao, from classes ABC and

Urban households that are typically comprised older homes with residents

aged 13 and above. (Rappler.com, 2015)

“The convenience store sector will mirror the consumer landscape

in the next few years as the country enjoys more economic development”

said Tara Prabhakar a TNS Asia Pacific Managing Director of Retail and

Shopper.
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

“The consumer landscape is changing. About 70 percent of the

Philippines will be urbanized by next year. The cost of doing business has

actually gone up so it makes more economical sense to look smaller

(store) format,” Prabhakar shared, adding that as more people go to the

cities to work and live, there will be a bigger market for convenience

stores. (Manila Bulletin,2014)

The market share of convenience store was risen to 0.3% from

0.2% in 2014. Registering the highest compared traditional (+2%) growth

and modern trade channel (-2%) while Filipinos spend most for food

purchases, the personal care category experienced the fastest growth at

2.5%. The study further shows that top 4 food purchase remain the same

with ice cream, total milk, snacks and alcoholic beverages.

Foreign. Based on the thesis presented by Lee Wei Ting of

Malaysia, As the lifestyle of the Malaysian consumers becomes more

hectic, they demanding more convenience-oriented retailing to the benefit

of convenience stores. Malaysians are increasingly switching their

spending patterns from traditional grocery stores to modern convenience

stores.

Convenience stores registered strong growth, largely due to

vigorous expansion of in terms of outlet by chained and independent

players, coupled with promotions by chained convenience store


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

operators. According to Euromonitor (2008), the sales in convenience

stores grew 168 percent between 2002 and 2007, and it has predicted

that it will grow another 55.2 percent in the following five years.

The convenience store market is dominated by 7-Eleven, which is

the largest 24 hours convenience store available in Malaysia. It captured

almost half of he convenience store value share in 2007.This is largely

due to steady outlet expansion as well as the creation of greater brand

awareness through strong marketing efforts, such as contest and

promotions.

However, Woodside and Trappey (1992) found that consumers

decide their primary store based on the attributes of the store. They

found that consumers could quickly name a store when asked what store

comes to their mind for specific attributes such as “lowest price”, or “most

convenient” to them. Consumers will refer to shop at stores that has

attributes that can satisfy their needs.

A few researchers found that store location plays an important part

in determining the store choice (Kolodinsky and Crawell,2000). Location

suggests customers’ accessibility to the store and includes factors such

as distance , and time travelled to the store. It was found that consumers

prefer to shop at stores that they have easy access to and are convenient

for them (Fox and Moschis, 2004).


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Satisfaction is also found to influence consumer”s subsequent

behaviour, such as turn the consumer into a loyal, committed customer,

one who is willing to repurchase, or a customer who switches brands or

discontinues using the product (Kotler and Keller, 2006). Satisfaction is

defined as a person’s feeling of pleasure or disappointment resulting from

comparing a product’s perceived performance and expectation (Kotler

and Keller, 2006). It is derived from the consumers personal experiences

and the function of matching the expectation and the perceived

performance.

The relationship between store attributes, customer satisfaction

and store loyalty is included. According to the study numerous research

has been conducted to examine the impact of store attributes on

customer loyalty (Nguyen,2007). Most of the studies found that store

attributes have a impact on store loyalty. It is found that the loyalty

towards the store is affected by the consumer’s store experience with the

characteristics of the store. In other words it is important for the shopper

to notice and pay attention to the attributes, in order to influence their

subsequent behaviour such as re-patronage behaviour.

Although most of the previous studies investigated the relationship

of store attributes and customer loyalty in a retail setting, westbrook

(1981) studied the effect of store attributes from a different perspective.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Westbrook examined the relationship of store attributes and customer

satisfaction is directly affected their in store experience with the store

characteristics.

According to Bianchi 2009, convenience store (C-stores)

constitute a successful formal in developed market such as the U.S,

Canada and Japan. As an example, 7-Eleven became the largest world

wide convenience store chain in March 2007, operating 34,000 stores in

17 countries, even larger than the world wide number of Mcdonald’s store

( Planet retail, 2007).

Only a few studies of convenience store (c- stores) are found in

the literature and they have all been held in a developed market context

(Lassk, 2000; Rapp and Islam, 2006 ; Sparks, 2000 ; Suiton anf Rafaeli

1988 ; Welsh et al., 2003 ; Worthington, 1989) These studies show that

convenience store attributes for consumers are location, product

assortment, knowledge of sales associates, speed check out, service,

store layout, and parking.

Most of the studies focus on the convenience orientation of

consumers ( Anderson, 1972,1971 ; Brown,1989 ; Bucklin, 1963 ; Gross

and Sheth, 1989 ; Kellie, 1958 ; Morganosky, 1986 ; Nickols and Fox,

1983 ; Reily, 1982 ; Yale and Venkatesh, 1986 ) . These studies view

convenience as anything that helps the consumer to reduce its time and
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

effort during their shopping process,but are mostly focus on the product

market.

Although studies on convenience store are poor, there is a large

amount of studies that address consumer store patronage, and store

choice in the retailing literature ( See Pan and Zinkhan, 2006). These

studies suggest that several attributes affect consumers references and

expectations of retail store, such assortment, service, product quality,

store atmosphere, store location, price level, check - out speed, hours of

operation, friendliness of sales people, and parking facilities.

In a retailing context, although , there is no one clear definition of a

convenience store for the purpose of these paper we will define it as a

small, centrally located store, featuring ease of access, late - night hours,

and a limited line of merchandise and dot charges above - average

process compared to a large supermarkets that generates large volume

sales. (Bianchi, 2009)

Only a limited number of academic papers have specifically

investigated the C - store industry.

IMPORTANCE OF RELATED LITERATURE AND STUDIES REVIEWED

TO THE PRESENT STUDY


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Consumer always prefer to buy in store where they can save

money and satisfy themselves. But the convenience stores are a good

example that lowest price is not the only reason/factor that could invite

consumers to enter the store. Convenience store sector is increasing its

industry as well its competition from other formats.

Those related literatures and studies helped the researcher to

further their knowledge about the convenience store sector, it helps the

researcher to know and understand who are the daily consumers, their

demographics such as gender and age.

Nowadays, the convenience store channel is the fastest growing

retail channel in the Philippines, coming to other retail channel which is

the direct sales and drug store.

It gives a discernment into the real situation of convenience store.

THEORETICAL/CONCEPTUAL FRAMEWORK

Cue Utilization Theory. The argues that products or services

consist of several arrays of cues that serve as surrogate indicators of

product or service quality.There are both intrinsic and extrinsic cues to

help guests determine quality, where are the intrinsic cues provide

information such as brand and price.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Cue Selection and


Customer Attention
Understanding

Marketing Strategies

Customer Service Product Quality Product Price Product Risk

Beliefs
Experiences and

Perception

Satisfied

Processing cues
Purchase Intention
And

Beliefs

Dissatisfied

Theoretical Framework

Selecting of Respondents
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Demographic Level of Reasons why customers Marketing


Profile Satisfaction prefer to buy in Strategies used by
convenience store convenience store

Conducting of Survey by means of Questionnaire

Data Analysis and Interpretation

Utilization of the Findings about

“The Marketability of Selected Convenience Store


in Selected Areas in Quezon City as Perceived the
Customer”

Research Paradigm

Chapter 3

METHODS OF RESEARCH
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

This chapter covers research design, the respondent, the

researcher instrument, the procedure and the processing of data of the

study.

RESEARCH DESIGN USED

The descriptive method of research was used in this study . This is

designed to investigate and to gather information. Descriptive survey

method seeks to ascertain respondents experiences on a specified

subject. It aims to describe the marketability of selected convenience

store in selected areas in Quezon city.

We have constructed a research strategy which is customized to

thesis purpose. A researcher of the convenience store is chosen as an

interview in business of this research. This methods are employed from

various sources of data to ensure the validity instrument of the research.

The sources of data include the chosen firm’s representatives, 7-Eleven

and Ministop, including the staff.

Additionally, we conduct the interview with other members such as

convenience store supplier and company that provide transportation

services to the store. The interview is conducted to gain more market

environment and trend of the


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

industry.

RESPONDENTS OF THE STUDY

The respondents of this study include 100 customers, fifty percent

are from 7-Eleven and the remaining 50 percent are from Ministop

convenience store within Quezon City. The Respondents must be ages 13

years old and above.

THE RESEARCH INSTRUMENT

The research instrument used in this study was a questionnaire.

Questionnaire.The researchers instrument have one set of

questionnaire. This set is for the customers of both 7-Eleven and Ministop

convenience store open 24 hours and 7 days that is chosen to conduct. It

is consist of several questions involve the customer’s perception about

the marketability of convenience store in terms of their price, location and

service rendered by the crews.

The researcher used the questionnaire as their major tool in the

collection of the data needed to complete the study. The researcher

prepared their own questionnaire as the main instrument for gathering

data from the subject.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

As an outcome of the researcher, some of the statements were

amended and improved. The modified versions of questionnaires were

finally administered on the respondents. The final questionnaire used for

data collection for the study was structured in five parts.

Part I are contained by demographic characteristics of the

respondents (age, gender, and civil status) and the first question is about

to obtain the information of the level of satisfaction of a convenience and .

Part II comprised of statements to identified the reason why you preferred

to buy in convenience store. Part III included statements on how to

perceived the marketability of a c-store, in terms of price, quality of

product and service rendered by the crews. Part IV comprised of

statement to the market strategies used in c-store.

The questionnaire was complied and discusses with the

researcher’s to the person who answer the questionnaire. Each

researcher enters his/her responses on the questionnaire, saving the

researcher’s time, compared to the time required to conduct personal

interviews. It is less expensive that conducting personal interviews. The

respondents feel that they remain anonymous and can express

themselves in their own words without fear of identification. The

questionnaire may be collected after 30 minutes and the format is based

on the statement of the problem in chapter 1.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

Construction.The set of questions that the researchers used were

based on the statement of the problem. The researchers presented their

questionnaire to their thesis adviser after presenting the draft of the

questionnaires, their adviser gave them suggestions so that the

respondents can easily understand all the contents of the questionnaire.

VALIDATION OF THE INSTRUMENT

Before the Researcher distributed the Survey questionnaire to the

respondents. The Researchers gave it to the thesis professor to check it

and correct the grammar of each question. The researcher also tested

their questionnaire to 10 consumer of both convenience store and after

that the researcher asked the respondents to know their reaction about

the questionnaire. Their comments and suggestions were considered for

further enhancement.

ADMINISTRATION AND RETRIEVAL

The Researcher distributed Survey questionnaire in selected areas

in Quezon City in the month of ________________.


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

After thirty minutes the questionnaire were personally retrieved by

the researchers.

GATHERING DATA

The first thing researchers did is to ask permission from the Adviser

to conduct the survey. The questionnaire was distributed to the

respondents who are all very much informed for the use of the study so

that they can answer the questions assuredly. The research was reviewed

from the theses of other researchers before, from websites on the internet

and from journals, books and entrepreneur magazines.

STATISTICAL TECHNIQUE

1. The researcher used percentage as statistical technique in the analysis

and interpretation of the data gathering.

Percentage frequency formula is as follows;

Formula:m

P = x 100 f
N

Whereas, P = Percentage
COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

F = Frequency

N = No. Of respondents

2. The researcher also used ranking as statistical technique in the

analysis and interpretation of the data gathered. Ranking formula is as

follows;

Rank = The sum of the ranks everyday


Number of the respondents

3. Weighted Mean

The answers were based on a four-point scale with the

corresponding descriptions.

Formula:


fx
X
N

Where;

X - the weighted mean

f - the frequency of response in each question

w - weighted assigned to each response


COLLEGE OF ST. CATHERINE QUEZON CITY

362 Quirino Hi-way, Sangandaan, Quezon City 1116 ∙ Telephone 330.48.83/330.36.20

N - total number of cases

You might also like