Far Eastern University Diliman

Sampaguita Avenue, Mapayapa Village, Diliman, Quezon City, 1101 Metro Manila

EFFECTS OF MARKETING STRATEGY ON THE LEVEL OF SATISFACTION TO THE

CONSUMERS AT NOVALICHES, QUEZON CITY

CANDO, JEAN CLARK P.

CARMELOTES, ALEN GABRIEL A.
CARO, ANFERNEE DG.
CHENG, ALEXANDER V.
CONCEPCION, EARL SEBASTIAN F.
CREMAN, MARVIN CARL D.
DANAO, MATTHEW DOMINIC L.
DURAN, JASTINE D.
FRANCISCO, ROBBIE GIOSEPPE S.

A Research Study Submitted to the Faculty of Senior High School, Basic Education
Department, Far Eastern University- Diliman, Quezon City, Metro Manila, Philippines
in Partial Fulfilment of the Requirements
for the Subject

RESEARCH IN DAILY LIFE 2

(Accountancy and Business Management)

DECEMBER 2019
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ACKNOWLEDGEMENTS

First and foremost, the researchers would like to extend their deepest and sincerest

gratitude to Jesus Christ for giving the researchers wisdom, strength, support and knowledge

for this study.

The researchers would like to express their deepest appreciation and gratitude to Ms.

Joana Quinto, who has the attitude and the substance of a genius: she continually conveyed

a spirit of adventure with regards to the research and an excitement in teaching. Without her

guidance and persistent help with study would not have been possible.

The researchers would like to take this opportunity to record their sincere thanks to all

their teachers and classmates for their help and encouragement. They would also like to thank

their parents for their unceasing assistance and support.

Lastly, the researchers would also love to appreciate those persons that were willing to

help them with their research survey and throughout their study.
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TABLE OF CONTENTS

PAGE
TITLE PAGE 1
ACKNOWLEDGEMENT 2
TABLE OF CONTENTS 3-4
LIST OF TABLES ?
LIST OF FIGURES ?
LIST OF APPENDICES ?
LIST OF APPENDIX TABLES ?
5-6
INTRODUCTION

Statement of the Problem 7-8

Objectives of the Study 8-9
Hypotheses of the Study 9-10
Significance of the Study 10
Scope and Limitation of the Study

11
REVIEW OF RELATED LITERATURE

Consumer Behavior 11
Customer Satisfaction 14
Relationship Marketing 15
Competitive Position 16
Summary of Related Literature 17
METHODOLOGY
35

Conceptual Framework 35
Conceptual Paradigm 38
Operational Definition of Terms 39
Research Design 41
Respondents of the Study 42
Locale and Time of the Study 45
Instrumentation 47
Data Gathering Procedure 49
Methods of Data Analysis 51

RESULTS AND DISCUSSION 52

Respondents’ Basic Understanding on Fractions 52

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Basic Understanding on Fractions of High Achievers 52

Basic Understanding on Fractions of Average Achievers 58
Basic Understanding on Fractions of Low Achievers 63

Respondents’ Performance on five Subconstruct of Fractions 71

Performance on five Subconstruct of Fractions of High Achievers 71

Performance on five Subconstruct of Fraction of Average Achievers 73
Performance on five Subconstruct of Fractions of Low Achievers 76

Basic Understanding on Fractions and Performance on Five 80

Subconstruct of Fraction

Basic Understanding on Fractions and Performance 80

on Five Subconstruct of Fraction of High Achievers
Basic Understanding on Fractions and Performance 81
on Five Subconstruct of Fraction of Average Achievers
Basic Understanding on Fractions and Performance 83
on Five Subconstruct of Fraction of Low Achievers

SUMMARY, CONCLUSION AND RECOMMENDATION 85

Summary 85
Conclusion 92
Recommendation 93

LITERATURE CITED 96
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Introduction

Marketing strategy is one of the most important areas that needs to be carefully

examined by the corporate. It is commonly defined as a strategy employed by a firm to attain

its marketing objectives, which in turn is related to the achievement of the firm’s business

objectives. In other words, marketing strategy refers to the marketing goals and action plans

that address matters of product or service price, distribution, communication, and the process

of new product development. The adaptation of any strategy depends much on factors such as

management style and experience of the top management, age of the institution, economic

environment, and regulations. (International Journal, 2015)

The concept of marketing as it is understood in the modern era began during the time

of the Industrial Revolution. This period spanned the late 18th century and lasted long into the

19th century. It was a time of rapid social change motivated by innovations in the scientific

and technological industries. It was during the Industrial Revolution that purchasing goods

began to be easier for a consumer than make things themselves. Mass production created many

industries engaged in the same endeavor to serve the needs of a growing consumer market. It

created a need for producers to find better ways to develop products that customers needed and

also, a better approach to informing them about these commodities. (Hardy, 2016)

The target of evaluating any marketing activity is to evaluate the level of customer

satisfaction achieved. The inception of the integrated marketing model in Santander is

anchored upon the premise of ensuring that the clients are invariantly satisfied regarding its

products. The level of customer satisfaction is the hallmark of marketing; it defines the peak

of marketing or any promotional activity. As outlines by Stephen and Robert (2004) customer
 6

satisfaction is the primary indicator of the relevance of the marketing models adopted by the

company.

This study aims to determine what the marketing objectives is and which in the right term, it

can assess the achievement of the firm's business objectives. Marketing Strategy helps to

perceive fulfillment of consumers’ desires after utilizing a company’s product or service.

Consumer’s satisfaction is so important that many organizations allocate large portion of their

resources to pursue this objective. One of the ways to achieve consumer’s satisfaction is

through effective marketing strategies which are developed around the identification of

consumers’ expectations using such dimensions as product, price, place, promotion along with

organization’s distinctive competence. (Shaw, 2012)

 7

Statement of the Problem

Marketing strategy helps the firm gain a competitive advantage in the market amidst

the tough competition with an edge over the existing players and the new adversaries who are

trying to establish their brand presence in the market. A well-defined marketing strategy harps

on the unique selling propositions of the brand along with the features and benefits of

the products and services offered by the firm in a creative, strategic, and planned manner

highlighting that how the brand and its offerings are better than the ones of the competitor. The

consistent and continuous messaging and communication strategy helps the brand to curate a

distinctive identity in the volatile and competitive market. (Bhasin, 2018)

Business competition is hard on small businesses due to the global economy and global

competition. Now that there are so many options of hiring, purchasing, and selling on an

international level, competition has become even more competitive. This makes it even harder

on small businesses trying to make a profit within their trade or services. They have to face

more and more businesses and markets and have to worry about trying to beat out their

competition. Parts that can be extremely difficult include other companies outsourcing

employees. Large companies can easily hire workers online or from other countries and pay

the workers a much smaller wage or salary compared to small businesses, who cannot easily

access this labor market. Small businesses regulate themselves according to their locations and

what is within their range or scope of employment. (B.N., 2016)

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When firms compete with each other, consumers get the best possible prices, quantity,

and quality of goods and services. One important benefit of competition is a boost to

innovation. Competition among companies can spur the invention of new or better products,

or more efficient processes. Firms may race to be the first to market a new or different

technology. Innovation also benefits consumers with new and better products, helps drive

economic growth and increases standards of living. Products that are commonplace today once

were technological breakthroughs: cars, planes, phones, televisions, the personal computer,

and modern medicines all show how innovation can change your life, and increase prosperity.

(Consumer FTC, 2017)

Consumers’ satisfaction is the perceived fulfillment of consumers’ desires after

utilizing a company’s product or service. Consumer’s satisfaction is so important that many

organizations allocate large portion of their resources to pursue this objective. One of the ways

to achieve consumer’s satisfaction is through effective marketing strategies which are

developed around the identification of consumers’ expectations using such dimensions as

product, price, place, promotion along with organization’s distinctive competence. (Shaw,

2012).

Objectives of the Study

In general, this study aimed to find out the effects of marketing strategies towards the

level of satisfaction of consumers at Novaliches, Quezon City based on their expectations and

preferences.

1. To determine the marketing strategies of businessmen and entrepreneurs at

Novaliches, Quezon City.

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2. To determine the level of satisfaction of the consumers at Novaliches, Quezon City.

3. To find out the relationship between marketing strategies and the level of

satisfaction of consumers at Novaliches, Quezon City.

Hypothesis of the Study

This hypothesis was tested in the study:

1. There is no significant relationship between the marketing strategies and its

effects to the level of satisfaction to the consumers in Novaliches, Quezon City.

Significance of the Study

The result of this study can provide vital information regarding the mathematical

performance of students. The study aimed to be beneficial to the school, entrepreneurs,

consumers, and society.

School. It is essential to study the effects of Marketing Strategies, so that the school

can include it into their curriculum. Plus, it is also a learning process for the students, as they

will be the ones who will have to do these things either as the seller or as the buyer.

Entrepreneurs. As businessmen, they need to be updated about different marketing

strategies that will satisfy their target audience for their product to be successful and meeting

or even exceeding expectations.

Consumers. This study serves as foundation for all of the communication campaigns

and to improve the effectiveness of the Marketing message to consumers. And also serves as

a reference for buying goods and services.

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Society. The result of this study would be important to potential customers to be

aware of new products by the use of many information vehicles. The entrepreneurs can also

benefit from the findings of this study that may also challenge them to take part in building

the society and to improve their marketing strategies towards their career trajectory.

Scope and Delimitation

This study will be conducted to determine the effects of marketing strategies and the

target level of satisfaction of the consumers. This way, the status or the respondents of the

study will focus solely on the consumers in Novaliches, Quezon City 2019 as the scope strictly

creates the marketing strategies, aspects to be looked in to will be the methods and strategies,

consumers’ satisfaction and current problems the entity is facing.

In coherence with the fast modernizing society, this study will somehow introduce

systems that will be important for owners to manage and interact with consumers. Therefore,

interaction will help yield results to be used for actions that will improve the locality of the

topic. The researchers conducted Random Sampling Technique to select respondents and

utilized Survey Questionnaire to acquire data information needed that determined the effect of

marketing strategies on the level of satisfaction to the consumers.

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Review of Related Literature and Studies

This chapter contains previous literatures and studies to help the researchers and

readers to understand the focus of the study. The contents of the literatures and studies will

help the researchers to gather more information regarding the effects of marketing strategies

to customer satisfaction.

Consumer Behavior

Consumer decision making has long been of interest to researchers. Beginning about

300 years ago early economists, led by Nicholas Bernoulli, John von Neumann and Oskar

Morgenstern, started to examine the basis of consumer decision making (Richarme 2007). The

most prevalent model from this perspective is ‘Utility Theory’ which proposes that consumers

make choices based on the expected outcomes of their decisions. Consumers are viewed as

rational decision makers who are only concerned with self-interest (Schiffman ANDKanuk

2007, Zinkhan 1992).

Utility theory views the consumer as a ‘rational economic man’. Contemporary

research on Consumer Behaviour considers a wide range of factors influencing the consumer,

and acknowledges a broad range of consumption activities beyond purchasing. These activities

commonly include; need recognition, information search, evaluation of alternatives, the

building of purchase intention, the act of purchasing, consumption, and finally disposal. This

more complete view of consumer behaviour has evolved through a number of discernable

stages over the past century in light of new research methodologies and paradigmatic

approaches being adopted. (Zinkhan 1992)

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While this evolution has been continuous, it is only since the 1950’s that the notion of

consumer behaviour has responded to the conception and growth of modern marketing to

encompass the more holistic range of activities that impact upon the consumer decision.

(Blackwell,Miniard et al. 2001).

A number of different approaches have been adopted in the study of decision making,

drawing on differing traditions of psychology. Writers suggest different typological

classifications of these works with five major approaches emerging. Each of these five

approaches posits alternate models of man, and emphasizes the need to examine quite different

variables (Foxall 1990). These theoretical approaches were introduced:

In order to behave rationally in the economic sense, as this approach suggests, a

consumer would have to be aware of all the available consumption options, be capable of

correctly rating each alternative and be available to select the optimum course of action

(Schiffman ANDKanuk 2007). These steps are no longer seen to be a realistic account of

human decision making, as consumers rarely have adequate information, motivation or time

to make such a ‘perfect’ decision and are often acted upon by less rational influences such as

social relationships and values. Furthermore, individuals are often described as seeking

satisfactory rather than optimum choices, as highlighted by Herbert Simons Satisficing Theory

(Simon 1997).

The psychodynamic tradition within psychology is widely attributed to the work of

Sigmund Freud (1856-1939) (Stewart 1994). This view posits that behaviour is subject to

biological influence through ‘instinctive forces’ or ‘drives’ which act outside of conscious

thought (Arnold,Robertson et al. 1991). While Freud identified three facets of the psyche,
 13

namely the Id, the Ego and the Superego (Freud 1923), other theorists working within this

tradition, most notably Jung, identified different drives (Ribeaux ANDPoppleton 1978).

The key tenet of the psychodynamic approach is that behaviour is determined by

biological drives, rather than individual cognition, or environmental stimuli. In 1920 John B.

Watson published a landmark study into behaviour which became known as ‘Little Albert’

(Watson ANDRayner 1920). This study involved teaching a small child (Albert) to fear

otherwise benign objects through repeated pairing with loud noises. The study proved that

behaviour can be learned by external events and thus largely discredited the Psychodynamic

approach that was predominant at the time.

In contrast to the foundations of Classical Behaviouralism, the cognitive approach

ascribes observed action (behaviour) to intrapersonal cognition. The individual is viewed as an

‘information processor’ (Ribeaux ANDPoppleton 1978). This intrapersonal causation clearly

challenges the explicative power of environmental variables suggested in Behavioural

approaches, however an influential role of the environment and social experience is

acknowledged, with consumers actively seeking and receiving environmental and social

stimuli as informational inputs aiding internal decision making (Stewart 1994).

The cognitive models appear well covered in generic Consumer Behaviour texts, and

are often portrayed as providing the best available explanation of consumer decision making.

Despite this, however, there are a growing number of academic writers highlighting limitations

of the Cognitive approach and publishing new research attempting to further understanding of

specific aspects of behaviour. These new approaches can be described as humanistic as they
 14

seek to explore concepts introspective to the individual consumer rather than describe generic

processes (Stewart 1994).

Customer Satisfaction

Many researchers have looked into the importance of customer satisfaction. (Kotler,

2000) defined satisfaction as a person’s feelings of pleasure or disappointment resulting from

comparing a product’s perceived performance or outcome in relation to his or her expectations.

It is also said that satisfaction can be associated with feelings of acceptance, happiness, relief,

excitement and delight. There are many factors that affect customer satisfaction. According to

(Hokanson, 1995), these factors include friendly employees, courteous employees,

knowledgeable employees and helpful employees.

In recent times organizations of all types and sizes have increasingly come to

understand the importance of customer satisfaction. It is widely understood that it is far less

costly to keep existing customers than it is to win new ones and it is becoming accepted that

there is a strong link between customer satisfaction, customer retention and profitability. For

most organizations, customer satisfaction will itself be the measure of success. (Hill, 2016)

Customer satisfaction has therefore become the goal for many organizations. They

have invested heavily in improving performance in areas that make a strong contribution to

customer satisfaction, such as quality and customer service. Loyalty schemes have

proliferated in the retail sector and are now moving into the business sector. Companies are

investing in database marketing, relationship management, and customer planning to get

closer to their customers. Organizations in the public sector have developed customer

charters to demonstrate their commitment to customer service and just about every mission
 15

statement includes a reference to satisfying or increasingly, delighting customers.

(Alexander, 2016)

Relationship Marketing

Service firms have always been relationship oriented. The nature of service businesses

is relationship based. A service is a process or performance where the customer is involved,

sometimes for a long period of time, sometimes only for a short moment, and sometimes on a

regular basis, sometimes only as a one-time encounter. There is always a direct contact

between a customer and the service firm. This contact makes it possible to create a relationship

with the customer, if both parties are interested in such a way of doing business. As service

firms, like banks, insurance firms, transportation companies, and retailers, have grown, the

masses of customers have made the establishment of true relationships more difficult. In

growing service businesses, the customer was turned from a relationship partner into market

share statistics. There are two obvious reasons for this. First, the difficulty to administer a

relationship-oriented customer contact when the number of customers is increasing. Second,

the growing influence from popular consumer goodsbased, nonrelational marketing

approaches. The marketing mix management paradigm and its flagship, the 4P model,

established itself as the dominating marketing paradigm. At that time, especially during the

1960s and 1970s, this approach to marketing made sense for producers of consumer goods

with their nonrelational customer contact. To a considerable degree it makes sense still today,

although even in goods marketing a relational approach is called for (e.g., McKenna 1991;

Rapp and Collins 1990). The nonmarketing approach did not meet the needs of service firms

seeking relational customer contacts. Instead of focusing on the customer contacts, marketing

became preoccupied with campaigns and other short-term activities where the interest in
 16

getting new customers dominated the task of keeping customers. Marketing was almost totally

in the hands of marketing specialists organized in marketing departments. The people in the

rest of the organization who in fact took care of the customers by producing and delivering the

service to them more and more were forced to pay attention to other aspects of their job than

satisfying customers. The relational-based service businesses became mass marketing

oriented.

Competitive Position

In keeping with the identified literature, customer satisfaction and maintenance of a

company’s position was investigated. Fornell (1992) emphasized that increased customer

satisfaction can lead a company to a sustainable competitive position in the marketplace. Over

the decades, a number of studies have been conducted to identify the key drivers of customer

satisfaction (Chavan & Ahmad, 2013; Singh & Kaur, 2011; Anderson et al., 2008; Johnson &

Fornell, 1991). According to Schulz (2012) retaining loyal customers is very essential and a

key factor in keeping the industry running and more competitive to measure a company’s

performance in changing trends of the industry. Today, customer satisfaction has been

regarded as a fundamental determinant in maintaining longterm customer relationship

behaviors (Zeithaml, Berry, & Parasuraman, 1996; Anthanassopoulos, Gounaris, &

Sathakopoulos, 2001). A study by Walsh et al. (2006) revealed a strongly relationship between

customer satisfaction and corporate reputation. Zeithaml (2000) findings prove a relationship

between customer satisfaction and business performance. Hennig-Thurau et al. (2002) in their

discussion of customer satisfaction proved that customers who are satisfied with the

performance of a company, are likely to give positive word-of-mouth communication about

 17

the company and enhances company’s reputation. Oliva et al. (1992) provided evidence to

show that customer satisfaction enhances financial performance of a company. Study by

Cronin and Morris (1989) and Innis and La Londe (1994) found that a satisfied customer is

more likely to repurchase, which leads to increased sales and market share. Increase in sales

and market share are key in solidifying a company’s position in the marketplace. Nelson et al.

(1992) found positive evidence on the direct relationship between customer satisfaction and

business performance which leads to a higher profitability.

Chavan and Ahmad (2013) concluded that customer satisfaction has been shown to have

effects on organizations’ revenues and the underlining factor is because satisfied customers

tend to purchase the service again which in the long-run leads to increased profits and

maintenance of the company’s position in the industry.

As for the conclusion, there are several factors that may affect or influence the customer

satisfaction in lined with marketing strategies. Each literature and study helps the researchers

to obtain more knowledge that would be beneficial to the outcome of the research.

Methodology

This chapter discusses the approach that the researchers used in order to complete the

study. The researchers explain how all the necessary data or information were gathered and

interpreted to answer the study’s research questions and to arrive on the research objectives.

Conceptual and Theoretical Framework

1. The Performance Model Based on the Performance Model (Spreng and Mackey, 1996).

The performance model posits that a customer’s perception of a product or service

 18

performance, and their expectations of that performance have a positive effect on customer

satisfaction. Performance is the level of quality of the product, or service, as perceived by the

customer, relative to the price paid.

2. Customer Satisfaction According to Oliver (1997) customer satisfaction is the core

philosophy of marketing strategy of any organization and plays a key role in an organization’s

success and Kotler (2000) believes that satisfaction is the overall customer attitude or behavior

towards the difference between what customers expect and what they receive, regarding

fulfillment of a goal. Kapiki (2012) observed that excellent services quality by companies’

results in excellent customer satisfaction and loyalty. Customer satisfaction has been given

different definitions by many gurus in the area of marketing. Zethaml and Bitner (2000) in

their service marketing approach define customer satisfaction as the customer evaluation of a

product or service in terms of whether that product or service has met their needs and

expectations. Bagram and Khan (2012) also see satisfaction as features or characteristics that

can fill a need or want of a consumer in a better way than competitors and that satisfied

customers are more likely to share their experiences with other five or six people around them.

Sherry (2003) believes that communications from faculty that directly engages students and

offers timely feedback contributes to interchanges between the organization and students and

leads to success in the course of study. Anderson (1994) concludes that customer satisfaction

is the key factor used to measure the company’s internal and external performances and

assigning funds to each and every activity within the organization. Anderson (1994) further

asserts that the importance of customer satisfaction cannot be dismissed because happy

customers are like free advertisers. Anton (1996) also states that customer satisfaction is

positively associated with repurchase retentions and that there is a likelihood of recommending
 19

a product or service to others. These views bring to bear that when customers are satisfied,

they will spread positive word of mouth communications to help a company strengthen its

competitive position. Sivadas and Baker-Prewitt (2000) further maintained that customer

satisfaction influences the likelihood of recommending a company and its good or service as

well as repurchases. Wood (2008) adds that if value is present for both organization and

consumer, the resulting relationship may take the form of a one-time purchase and referrals to

other potential customers. Thus, effective marketing covers everything about an organization

and must consistently provide value to win customers and earn their loyalty (Wood, 2008).

Bowen and Chen (2001) opined that a high level of customer satisfaction decrease the

perceived need to switch service provider, and increase customer repurchase and ultimately

enhancing profitability of the organization. Evans and Lindsay (1996) emphasized that

companies with satisfied customers have a good opportunity to convert them into loyal

customers who purchases from those firms over an extended time period.

3. Customer Satisfaction and Competitive Position In keeping with the identified literature,

customer satisfaction and maintenance of a company’s position was investigated. Fornell

(1992) emphasized that increased customer satisfaction can lead a company to a sustainable

competitive position in the marketplace. Over the decades, a number of studies have been

conducted to identify the key drivers of customer satisfaction (Chavan & Ahmad, 2013; Singh

& Kaur, 2011; Anderson et al., 2008; Johnson & Fornell, 1991). According to Schulz (2012)

retaining loyal customers is very essential and a key factor in keeping the industry running and

more competitive to measure a company’s performance in changing trends of the industry.

Today, customer satisfaction has been regarded as a fundamental determinant in maintaining

 20

longterm customer relationship behaviors (Zeithaml, Berry, & Parasuraman, 1996;

Anthanassopoulos, Gounaris, & Sathakopoulos, 2001). A study by Walsh et al. (2006) revealed

a strongly relationship between customer satisfaction and corporate reputation. Zeithaml

(2000) findings prove a relationship between customer satisfaction and business performance.

Hennig-Thurau et al. (2002) in their discussion of customer satisfaction proved that customers

who are satisfied with the performance of a company, are likely to give positive word-of-mouth

communication about the company and enhances company’s reputation. Oliva et al. (1992)

provided evidence to show that customer satisfaction enhances financial performance of a

company. Study by Cronin and Morris (1989) and Innis and La Londe (1994) found that a

satisfied customer is more likely to repurchase, which leads to increased sales and market

share. Increase in sales and market share are key in solidifying a company’s position in the

marketplace. Nelson et al. (1992) found positive evidence on the direct relationship between

customer satisfaction and business performance which leads to a higher profitability. Chavan

and Ahmad (2013) concluded that customer satisfaction has been shown to have effects on

organizations’ revenues and the underlining factor is because satisfied customers tend to

purchase the service again which in the long-run leads to increased profits and maintenance of

the company’s position in the industry.

4. Marketing Strategy A strategy is a unique battle plan that one company uses to outwit its

close competitor. Marketing strategy according to Walker, Boyd and Larréché (1996) involve

specifying the target segments to be pursued and the breadth of product line to offer. Hence,

for customers to be satisfied, effective marketing strategies that deals with the process of

planning and executing programs designed to influence the behavior of target audiences by
 21

creating and maintaining beneficial exchanges for the purpose of satisfying individual and

organizational objectives (Andreasen and Kotler, 2003).

5. The use of Packaging as a Strategy To influence decision of consumers on the type of

product or service to choose, there is the need to differentiate parallel products or services.

Wells, Farley and Armstrong (2007) opine that packaging works as an instrument for

differentiation, and help consumers to decide the product from wide range of parallel products

and packaging also stimulates customer’s buying behaviour. Adelina and Morgan (2007) see

packaging as one of the most valuable tools in today’s marketing communications and that

packaging has an important impact on consumers buying behavior. Saeed, Lodhi, Mukhtar,

Hussain, Mahmood and Ahmad (2011) conclude that organizations should integrate the brand

image, brand attachment and environmental effects to have impact on consumer purchase

decision.

6. The use of Social Bonding as a Strategy According to Mylonakis (2009) to understand

the relationship between customers and organization, managers should understand more their

customers in terms of needs, behaviour, satisfaction and perception towards the services and

products and consider customers as important assets to them. In the words of Chiu (2002)

social bonds positively influence customer’s emotions toward or feelings associated with

service experience and contribute to the formation of an effective component of attitude. From

the view point of the customer, the social bonding strategy seems to provide an important

psychological benefit (Chiu, 2002). Social bonds dispose customers to self-disclosure,

listening and caring, which in turn improve the mutual understanding between the customer

and the service provider, their openness and their degree of closeness. Damkuviene and
 22

Virvilaite (2007) also noted that the elements in relationship should be interdependence, long

term orientation, commitment and trust. Hence, without these elements in the marketing game,

it will be difficult for the university to build a strong customer base in the distance education

market. According to Kandampully and Duffy (1999) a customer’s interest in maintaining a

loyal relationship is depended on the organization’s ability to anticipate customers’ future

needs and offering them before anyone else does. 2.4.3. The use of Price as a Strategy Price is

considered to be the most significant factor that affects consumer’s choice (Kotler, Armstrong,

Saunders, & Wong, 2002). Kotler et al. (2002) further believe that in Customer-Value Based

Pricing, products or services are priced on the basis of perceived value and that company’s

must find out what value customers assign to competitors’ products or services as well as the

value they perceive of their own company’s products or services. Therefore, if price is charged

higher than the perceived value, it will have a negative impact on the company’s products or

services (Kotler et al, 2002). Oliver (1997) believes that customers perceive price in line with

the quality and if price does not match quality of products or services, customers will

experience dissatisfaction. Thus, price is used to judge parallel products or services that offer

similar satisfaction. 2.4.4. The use of Service Quality as a Strategy Quality service stems from

a host of activities within and outside an organization. Levesque and McDougall (1996)

mention that performance of the service provider on core and relational dimension of service

quality is an important driver for customer satisfaction. Bolton and Drew (1992) believe that

customer satisfaction depends heavily on service quality. According to Moore (1989) and

Young and Norgard (2006) there are three types of interactions that increases students’

satisfaction of quality of distance education: Student-content; student-instructor; and student-

student interaction. The authors contend that these three types of interactions help promote
 23

timely and quality interaction among students, between student and their instructor, as well as

between students and their course content which serves a motivational tool for students’

satisfaction. Durling, Cross and Johnson (1996) also echo that instructors should understand

the diverse nature of students and encourage them to interact regularly to promote effective

learning. Kurtenbach (2000) concludes that organizations which are successful in customer

service rank their customers experience as their top priority

Figure 1. Research Paradigm of the Study

The study provided a framework which served as the basis for the questionnaires

developed in order to collect relevant data for this study. The framework assumes that in order

to understand how the effects of marketing strategies towards customer satisfaction, one will

need to understand the marketing strategies that leads to customers’ satisfaction and eventually

results in building a strong bond between customers and marketers.

 24

Moreover, this study will be guided by Oliver’s Customer Satisfaction. The assumption

of this theory is that customer satisfaction is the core philosophy of marketing strategy of any

organization and plays a key role in an organization’s success. Also the theory emphasized that

companies with satisfied customers have a good opportunity to convert them into loyal

customers who purchases from those firms over an extended time period.

Conceptual and Operational Definition of Terms

On this part, significant terminologies that are being used throughout the study are listed

and defined operationally for the purpose of reader’s unambiguity.

Systems Theory - is the transdisciplinary study of the abstract organization of phenomena,

independent of their substance, type, or spatial or temporal scale of existence. It investigates

both the principles common to all complex entities, and the (usually mathematical) models

which can be used to describe them.

Customer Satisfaction - is defined as a measurement that determines how happy customers

are with a company’s products, services, and capabilities.

Marketing Strategy - a plan of action designed to promote and sell a product or service.

Packaging - materials used to wrap or protect goods.

Pricing - the amount required as payment for (something offered for sale).

Social Bonding – is a special form of affiliative behavior in which selective social attachments

strengthen social relationships.

 25

Service Quality – an assessment of how well a delivered service conforms to the client’s

expectations.

Research Design

This study is quantitative research since the study delves into numerical data. The

researchers decided to use the descriptive research design. Adi Bhat (2019) defines descriptive

research as a research method that describes the characteristics of the population or

phenomenon that is being studied. This methodology focuses more on the “what” of the

research subject rather than the “why” of the research subject. It is used to assert how marketing

strategy affects the satisfaction of a consumer. The researchers want to have a survey that

signifies the gathering of data regarding present conditions of marketing and to determine the

factors affecting the consumers in Novaliches, Quezon City.

Respondents of the Study

The respondents that the researchers asked were the consumers that are affected by the

marketing strategies of market in Novaliches. Ten (10) respondents were asked to answer

questions that are used as data for quantitative research. Specifically, the researcher chose the
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consumers who regularly go to market. Consumers are chosen to be respondents because they

go to the markets on a daily basis.

The researchers used purposive sampling technique which is a non-probability

sampling method to determine the needed respondents. It occurs when the used respondents

for the sample are chosen by the pure judgment of the researcher.

Instrumentation

The researchers used a survey questionnaire in order to gather information. The first

part of the questionnaire contains the general information of the respondents such as name,

gender, and age. The second includes the ten statements presented to the respondents that were

necessary for the study. Each statement were from 1-5 based on the respondents’ level of

satisfaction. The questionnaires were printed and distributed randomly to the consumers in

Novaliches, Quezon City, since they are the target respondents of the study. Although the

survey questionnaire was surely reliable, the researchers still consulted a few members of the

faculty in Senior High School Department to ask for validation with the questionnaire.

Data Gathering Procedure

The instruments will be handed out by the researchers at Novaliches, Quezon City on

the dates allotted for the survey. The respondents will be given exactly 10 minutes to finish the

survey questionnaires and will be retrieved by the researchers right after the time limit. The

survey will be administered to chosen respondents through purposive sampling for the

researchers to have access to a particular subset of people that will likely give the most accurate

information needed for the study. This will allow the respondents to include information,

observations and understanding more of the subject. This will also allow the researchers have
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better understanding and access on the respondents through their given information and

observations towards the topic, the effects of marketing strategy to consumer satisfaction.

Methods of Data Analysis

Content assessment was utilized to examine the data which was acquired from an open

finished survey questionnaire to the consumers in Novaliches, Quezon City. This examination

was driven by utilizing the offered responses by the consumers, with the objective that the

analysts may surely dissect and find the case of the data given by the consumers. Concerning

the request tends to made subject to a grounded hypothesis, theoretical system will be applied

to research the gathered data from the consumers. The data gathered from the consumers will

give the way to get the information needed for the researchers.

1. Descriptive statistics such as frequency and percentage will be used to determine

the marketing strategies of businessmen and entrepreneurs.

2. Descriptive statistics such as frequency and mean will be used to determine the

level of satisfaction of the consumers.

3. Non parametric test using chi-square will be used to find out the relationship

between marketing strategies and the level of satisfaction of consumers.

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