Chapter I

The Problem And Its Background

Introduction

Convenience store is one of the essentials for the retail industries as it makes up for

with convenience and short time by serving more locations and having shorter cashier

lines (Zephaniah, 2018). Convenience stores are geared toward short shopping trips for

one or just a few items (Peterson, 2019).

According to Terasaka, the convenience store is not a mainstream of the retail

industry in the world. It has a complementary role to the supermarket in the country of

origin, the United States. This is why retailers become business owners. A convenience

store now has a possibility of turning into a big business in the future. Losing the concept

of being a convenience store.

The Asian convenience store industry (C-store) has grown rapidly over the past few

years with consumer's lifestyle heading towards modernity and a large participation of

market players (Zephaniah, 2018). The influence from the traditional retail stores is still

widely dominating yet is slowly overpowered by the influence of the modern

convenience store.

The Southeast Asian countries were an ideal market for retailers. It was among the

world's largest growing class of customers (Margot Huber, et al., (2013)). It is also

because of the capability of Southeast Asian countries to produce a variety of products

for direct consumption.

 Cebu has proven to be capable of expanding business economy through its retail

industry. Its retail market remains interesting and competitive as it is actively participated

in by both local and national players (Philstar, 2019). Mantalongon's retail industry is also

living up as a national player.

Convenience is perhaps the biggest overall driving trend in the future of retail

(Trotter, 2018). With people only likely to become busier in the future, it is clear that

consumers want convenience in products and location.

According to Zephaniah in his feasibility study of opening a covenience store in

Yangon, Myanmar, consumer behavior greatly affects the convenience industry.

Consumer buying behavior shifts as the modern world takes place.

This study explores the consumers’ buying behavior in Mantalongon intern of

different education, age and income levels to use convenience store and then it will

conduct the feasibilities of opening convenience stores in Mantalongon, Dalaguete,

Cebu.

This study will analyze and conduct the future aspect of market opportunity of

convenience store industry in Mantalongon intended to extend the market.

The Problem

This study aims to explore consumer buying behavior of residents living in

Mantalongon to conduct a feasibility study of opening a convenience store intended to

extend the market of the locality.

Statement of the Problem

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

1.a. age

1.b. level of education

1.c. income level

2. What is the relationship between consumer buying behavior and opening a

convenience store in Mantalongon?

3. How can opening a convenience store extend the market of the locality?

4. Based on the findings of the study, how feasible is it to open a convenience store

in Mantalongon, Dalaguete, Cebu?

Scope and Delimitation

This study will focus on the respondent’s buying behavior intern of different

education, age and income levels to use convenience store to determine how feasible it

will be to open a convenience store in Mantalongon, Dalaguete, Cebu.

Significance of the Study

Business owners. This study will be able to know the residents’ profile therefore will also

be of help to business owners in knowing their consumers more.

Researchers. This study will be of help in exploring the world of business. The

researchers will gain more knowledge in learning the significance of profiling and

knowing consumers as a major actor in the business economy.

Future Researchers. This study can serve as basis to new studies.

Definition of Terms

Consumer behavior. It is the study of when, why, how, and where people do or do not buy

product. It includes the level of education, income and age of respondents.

Convenience. It is the state of being able to proceed with something with little effort or

difficulty.

Convenience Store. It is a store with extended opening hours and in a convenient

location, stocking the limited range of household goods and groceries.

Feasibility. Is the state or degree of being easily done or conveniently done.

Retail Industry. This includes all operating businesses in the locality of Mantalongon.
Theoritical Framework

Predictor Criterion

Consumer Buying Behavior Feasibility of opening of a

of Respondents Convenience Store

 Chapter II

Review of Related Literature and Studies

Related Studies

A STUDY OF CHANGING CONSUMER BEHAVIOR TOWARDS

CONVENIENCE STORES BY ENTRANCE OF MALLS IN INDIA by Anuja Shukla.

Indian retail industry has always played an important role in improving the GDP growth

rate and lifestyle of the country. The industry which traditionally comprised of mom and

pop stores spread hither and thither is in the revolutionary phase in the present era. The

way retailing is done has come a long way with the emergence of organized or modern

retail outlets. There are big players like Big Bazaar, Spencer‘s and Vishal Mega Mart to

name a few who have changed the face of retailing in India. These modern retail outlets

have enormous financial and technological support as compared to the traditional and

unorganized retail outlets. An attempt is made in this research to study the changing

consumer behavior pattern towards local kirana stores by entrance of modern retail malls.

All retailers follow that Customer is the king and customer is always right to please its

customers. India is being looked as one of the most attractive host for retail

developments. The development of malls in India has given a new meaning to retailing.

Indian customer is exposed to completely new kind of shopping experience. The rising

standard of living has opened new avenues for shopping.

This study will consider the changing consumer behavior as a factor to the

feasibility of opening a convenience store in Mantalongon, Dalaguete, Cebu.

 STUDY ON SHOPPING CENTRE: CONSUMER BEHAVIOUR AND

ENVIRONMENTAL FACTORS by Matti Rainio. The tendency to buy goods and

especially services is increasing in our society. This has strongly affected the retail

markets in Finland during the last decade. The consumers are affected by the dynamic

society, which have set new challenges for consumption. Shopping centres are similar to

each other and therefore the experience can be a determining factor when choosing the

shopping centre. A shopping centre is not just a place where people fulfil their basic

shopping needs but a recreational destination where people come to spend time and

socialise. This holistic customer experience is widely affected by the retail environment

that shopping centre offers. Holistic shopping experience lies beyond the satisfaction of

basic shopping needs. This study examines the broader retail view of the shopping centre

and how people approach to the phenomenon. Also, the competitive advantages a

shopping centre can create for today's consumption society have been investigated. It has

great importance to offer the retail mix in a unique style environment and creating

interesting events and activities. The purpose of this thesis is to study the phenomenon of

a modern shopping centre and the relationship between the modern shopping centre and

the young adults. The research has been carried out through qualitative research method

and a case study. Shopping centre Skanssi, located in Turku Finland, was used to evaluate

the influence of shopping environment. Eight respondents were interviewed to unfold

young people’s attitudes toward shopping centres. The main conclusion of this thesis is

that shopping environment is widely influenced by how people appreciate their shopping

experience. Shopping centre has to create an atmosphere and a retail mix that serves

people on multiple levels. This process is dynamic and it is affected by different factors
such as background, design and social factors. In this thesis the process is called

environmental stimulation. Young adults found that modern shopping centre should

produce interesting environment and social experiences.

Consumer behavior affects how businesses operates and how businesses are

sustained. Consumer behavior will be able to identify the sustainability if the proposed

feasibility study is accepted.

A STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS AMUL

PRODUCTS WITH SPECIAL REFERENCE TO COIMBATORE CITY by N Ramya,

Dr. SA Mohamed Ali. This article examines the consumer buying behaviour towards

Amul Products with special reference to Coimbatore City. A convenient sampling

technique tool was adopted for data collection. Sample size taken in this is 150

customers. The data is collected through questionnaire. The buying behaviour is positive

which reveals that the buying behaviour of the consumers is high. The promotional

strategies of the product can be improved to increase the sale of the company as much.

Thus the project concludes that the buying behaviour of the consumers are positive, so

the product has a good reach in Coimbatore city.

The researches will consider the products to be sold in the convenience store

which will be based from the respondents buying behavior.

ANALYSIS OF CUSTOMER PREFERENCE IN ORGANIZED RETAIL

STORES by P. Ravilochanan and B. Shyamala Devi. —Post-liberalization [1991] brought

forth a major shift in consumer buying style, thanks to the entry of organized retail stores.

There are a number of factors which influence the customer choice of the type of retail
outlet and when these are studied critically, the organized outlets can realize favourable

customer response and get more business. In the continued effort to improve the success

of organized retail trade, the outlets need to be undertaking various initiatives. This

research provides an insight in to a few aspects of the retail experience of the customers

which, when analyzed can help to design the strategy that can emerge as win-win strategy

for both the retailers and the customers.

The researchers will be considering the analysis of consumer buying behavior in

respond to the improvement of the retail industry of the locality.

FACTORS INFLUENCING CONSUMER PURCHASE DECISIONS AT

ORGANIZED RETAIL STORES IN LUDHIANA Manu Sehgal and Dr. Priyaka Khanna.

Indian Retail Market is going through a transition phase. With retail environment getting

modernized and customers gradually shifting from the culture of shopping at small

neighborhood kirana stores to large hypermarkets. With more and more fancy shopping

option in hand in form of growing number of malls and supermarkets and with more

number of international counterparts entering the sector, consumer is being spoilt for

choice. The share of organized retail in total retail sector in India is growing at a

remarkable rate. Many domestic as well as international players have already penetrated

in this market. Competition is at its high pace. Great focus is on the consumer preference

over the attributes of retail stores that are considered important. It is assumed that such

factors play a significant role in converting footfalls into actual sales. The aim of the

study is to identify the factors affecting consumer behavior and preference related to

shopping at organized retail stores. In this paper, analysis of the consumer’s preference of

the specific attributes of selected 5 major retail brands of Ludhiana is done. Retail stores
selected were Big Bazaar, Lifestyle, Westside, Vishal Mega Mart and Globus. Factor

analysis has been used in identifying the main factors. The factors include sales

assistance, store ambience, store attractiveness, store pricing policy, store promotion and

store Convenience.

Consumer preferences will contribute to the selection of products to be sold in the

convenience store.

A FEASIBILITY STUDY FOR A QUICK-SERVICE RESTAURANT IN

CHENGDU, CHINA by Hui Guo. The purpose of the study is to determine the feasibility

of opening a fast-food restaurant selling toufunao in Jingyang living area, Wuhou District

in the city of Chengdu. Toufunao is a local food extremely popular in the city of Leshan

in Sichuan Province of China, but toufunao hasn't enjoyed the same popularity as other

types of Leshan food have in Chengdu. The study will first look at the literature with

regard to restaurant feasibility study, and then follow the four steps proposed by the

literature to conduct the feasibility study of the proposed restaurant. Market area, site

selection, competition and financial analysis are made through observational research,

surveys and literature review, and results of the analysis are concluded.

This study will be able to determine partly how the concept of convenience in the

retail industry has been lost.

 Chapter III

Research Methodology

Research Design

A descriptive research design under the quantitative approach using the survey

technique was chosen. This approach was selected because it enables the sizable

representation of the selected population, has an organised procedure for gathering data,

is also very specific, and ensures that formulation of data collected follows an orderly

procedure (Burns & Bush, 2010). A questionnaire will be developed with the help of the

literature existing in studies from Chapter II.

Research Instrument

This study will utilize the survey technique in gathering the data.

Research Respondents

The researchers will choose their respondents from the people living in the

locality of Mantalongon as they will be easily accessible during the data gathering. The

researchers will determine first the population and will then solve using the sampling

formula to come up with the sample for the study.