CUSTOMERS PREFERENCE IN THE NEW NORMAL: BASIS FOR ENHANCEMENT

OF EXISTING BUSINESS STRATEGIES

A Research Paper Presented to Linao National High School, Ormoc City

In Partial Fulfillment of the Requirements for the Inquiries, Investigations and Immersion

Joana Rochelle Lyn D. Aragon

Mark Daniel V. Arcillas
Grace Micah C. Arellano
Lea A. Balatong
Michael Bordago
Jenny Jhean C. Castillano
Jehrameel A. Curbita
Jackyline S. De Jesus
Kyle C. De Leon
Vanessa Mae C. Elegio
Yna C. Federicos
Jay Diane C. Gocela
Judy c. Liporada
Jonalyn U. Martinez
George E. Meting
Marycris C. Omambac
Mylene L. Saligumba
Honey Crystal C. Tagalog

May 2021
 Chapter I

INTRODUCTION

Background of the Study

The COVID – 19 pandemic has ruled all over around the world, changing people’s

lifestyles, everyday routines, and habits – no one is exempted. Globally, according to the World

Health Organization (WHO), as of May 11, 2021, there have been 158, 551, 526 COVID -19

confirmed cases, including 3, 296, 855 deaths. Every nation has been coping with various

mechanisms, implementing safety protocols, reviving its economy, and doing its best to adapt to

the new normal. However, the effects of the so-called new normal is vast, encompassing social

distancing, wearing face masks and shields, and staying at home. These changes make it hard for

the majority to go on with their daily activities or on a more contextual note, transactions. As a

result, people have found a way to survive and adapt to the situations they face. Such ways include

implementing virtual classes, online services, working from home, etc.

In the economic aspect, COVID -19 also significantly affected several businesses in the

Philippines which eventually caused the majority of the entrepreneurs to close their businesses

temporarily. According to Donthru & Gustafsson (2020), the COVID-19 pandemic outbreak has

forced many businesses to close, leading to an unprecedented disruption of commerce in most

industry sectors. Damage wise, small-scale business owners were massively affected because they

lacked the ability to operate their businesses like how they used to before, and their sales were

rapidly decreasing. Due to the aforementioned circumstance, the need for entrepreneurs to adapt

to the new normal, and establish new business strategies become of principal importance. As stated

in Moorman, Kirby, McCarthy & Shkil (2020), COVID-19 has required marketers to rethink how
their companies go to market and engage with customers. Those marketers who can leverage

digital, social and trusted relationships should be well-positioned to navigate ongoing disruptions.

However, marketers across all industries should move beyond crisis management to embrace

lessons and investigate missed opportunities to create more value for their customers and

companies. One of the missed opportunities is customer acquisition. In the mad scramble to keep

businesses afloat, marketers may have missed opportunities to reach new customers. To that end,

knowing customer preferences may address the need to reach new customers. As entrepreneurs

understand what the customer needs and what satisfies them, the chances of acquiring new

customers will most likely heighten. Business owners should highly consider customer preferences

which center on their expectations; likes and dislikes; and motivations that may drive customer

purchasing decisions, because their businesses depend on their customers’ satisfaction.

Theoretically, Customer’s Relationship Management (CRM) helped many businesses gain an

understanding of customer behavior; and improved their business operations to ensure that

customers are served in the best way possible. Currently, customer preferences are changing.

Before the pandemic, customers always wanted to go to the physical stores because it is more

convenient and they can see the product personally. Now, customers are afraid to go outside

because they might be exposed to the virus.

In the context of pandemic, utilizing online and digital platforms in enticing customers

becomes the most practical business strategy. Despite that, adapting and promoting businesses

virtually was also a big challenge for business owners in Tambulilid, Ormoc City because, as per

them, it will need a lot of resources like money and effort in advertising or hiring active social

media users that can help their business. However, strategies established were not limited to mainly

being conducted online, but also giving promos or discounts and even providing free deliveries.
These strategies supported businesses in increasing their sales; and enticing more customers

because it is approachable and affordable.

Majority of the customers in Tambulilid, Ormoc City preferred online selling business

strategies for the reason that transactions are done less physically. As a matter of fact, customers

always prefer convenient and safe transactions especially amidst pandemic. With aims to become

successful and increase economic sales during a pandemic, business owners should also consider

taking advantage of the lifestyles of people in today’s generation. Relevant statistics showed that

the numbers of online users or buyers in the year 2020 were about over two billion people

purchased product or service online, and still in the same year, the e-retail sales climbed at 4.2

trillion U.S dollars worldwide.

Significance of the Study

The output of this study will enormously benefit the entrepreneurs in Tambulilid,

Ormoc City in terms of strategic development, as this will provide them substantial information

regarding customer preferences in the new normal. Upon becoming aware of customers’ changed

interest during COVID-19 pandemic, entrepreneurs may generate ideas on how they should

improve their current business strategies, gain more customers, and increase sales in general. This

could be of great help also to the customers, they are expected to be more satisfied from the

development of business strategies due to the fact that the said development is stemmed from their

preferences. Furthermore, this study may contribute meaningful information necessary in

addressing other community issues involving customer relationships of business entities during or

after pandemic. In parallel with the prior expected outcome of this study, this research will also

be of immense help in discovering resolutions on social or community problems concerning the

business sector in general. To the future aspiring researchers who have the same objectives as we

have, this can be a reference to the study that they will conduct.

Objectives of the Study

With the purpose of taking customers preference in the new normal as basis for

entrepreneurs’ enhancement of existing business strategies in Tambulilid, Ormoc City, the

researchers conducted this study which encompasses the following objectives:

1. Discover the “new normal” business strategies adapted by entrepreneurs.

2. Identify the most preferred new normal business strategy of customers.

3. Determine other business strategies customers can suggest that may enhance existing

strategies practiced by entrepreneurs.

Scope and Delimitations of the Study

The scope of this study is limited to the selected entrepreneurs and randomly chosen

customers located and residing in Tambulilid, Ormoc City. This study wanted to know the

preferences of the customers which will serve as basis for businesses in Tambulilid, Ormoc City

in improving their business strategies during COVID-19 pandemic.

Definition of Terms

Business strategies – An outline of the actions and decisions a company plans to take to reach its

business goals and objectives.

Customer preference – The type of product or service an individual customer likes and dislikes.

Entrepreneur – One who starts or assumes control of a business or other independent enterprise,

often employing innovation and more than an ordinary degree of risk.

Enhancement – It is an increase or improvement in quality, value or extent.

New normal – It is a state to which an economy, society, etc. settles following a crisis when this

differs from the situation that prevailed prior to the start of the crisis.

Online selling – It is the act or process of selling goods, products or services via an internet or

mobile app, auction site, online classified advertisement, online shop, social networking, social

media or web shop.

 Chapter II

CONCEPTUAL FRAMEWORK

The figure showed the concept of how this research entitled "Customers' Preference in the

New Normal: Basis for Enhancement of Existing Business Strategies" was conducted. As the first

objective, the researchers crafted interview questions that mainly ask for the new normal business

strategies adopted by the businesses in Tambulilid, Ormoc City. Through in - depth interviews,

the new normal business strategies, as independent variables, were identified. To determine the

most preferred business strategy of customers in Tambulilid, Ormoc City, which was the second

objective of this study, the researchers conducted a survey. The survey questionnaire comprised

rank - scaling questions that sought to find out customers’ most preferred business strategy; and

open - ended questions that asked for further recommendations or suggestions customers could

give to the entrepreneurs in their move of improving business strategies. The latter part aimed to

answer the third objective of this study. Both of which were then used as basis for the enhancement

of existing business strategies in Tambulilid, Ormoc City, which was the dependent variable of

this research study.

Interview Questions i. Customers’ most
preferred
• How did the COVID -19
Survey business strategy
pandemic affect your business?
Questionnaire ii. Customers’
• Do you have new business
suggestions, in
strategies? i. Rank – Scaling
accordance to
• What are your new business Questions
their preferences,
strategies? ii. Open – ended
on improving
• Did you think that your Questions
business strategies
business strategies are
effective at this time?

Enhancement of
In – Depth Existing Business
Interview ‘New Normal’ Strategies
Business Strategies

Figure 1. Conceptual Framework for the Customers' Preference in the New Normal: Basis
for Enhancement of Existing Business
 Chapter III

REVIEW OF RELATED LITERATURE

This chapter primarily presents the different researches and other literature from both

foreign and local researchers, which have significant bearings on the variables included in the

research. It focuses on several aspects that will help in the development of this study.

COVID-19 pandemic outbreaks have led many countries to impose travel restrictions

and movement controls (Noor, Fzlinda, Fabiel, et al., 2020). In Malaysia, the small business sector

is one of the most directly affected by the movement's control order. In fact, the impact is more

significant among micro-enterprises than its larger counterparts. However, there is still a lack of

literature on the impact of new and emergency crises like a pandemic outbreak on micro-

enterprises. It is postulated that micro-enterprises in the less developed areas are exposed to greater

challenges than larger enterprises or in urban areas, especially during a crisis. The impact of a

crisis or disaster on a business enterprise should be of great concern to entrepreneurs as it affects

current and future business performance. Statistics have shown that about 75% of businesses

without a continuity plan will fail within three years after a disaster or crisis strikes (Cook, 2015).

In Tiffany Wagner Blog Article (2021), there are some effective strategies that you can look into

to better lead your business to survive and thrive in this new normal: Build a focus team, invest in

your workforce, spread the word out, adapt to the change and give it time, and takeaway. Since

Information and Communications Technology (ICT) has a huge role to play in society, it is suitable

as a platform for transforming society into more virtual. Small-scale entrepreneurs need to

continue transforming and innovating their business strategies. To address this issue, a variety of

strategies are needed to help small-scale entrepreneurs affected by the COVID -19 pandemic

resolve their challenges. One of the suggested strategies is to increase the use of ICT to help
businesses expand. For example, assisting rural entrepreneurs by enhancing the position of rural

communities as digital economy drivers (Zhou, Gao & Chimhowu 2019).

Impact of Social Media on the Small Businesses

Social media has presented small-scale companies with a strategic opportunity to

compete with the larger companies in the global business environment. The tools that are required

by the companies to effectively advertise on the social media platform are very cost effective in

nature and require very little investment in the relevant technology, hence the small companies can

effectively compete with the large multinational corporate entities (Wicks, 2015). According to

Blakely (2017), Interacting with consumers on social media is an important marketing strategy for

small businesses. Using social media helps you build brand awareness, increase your customer

base, and connect with current customers. In fact, one study revealed a whopping 90% of marketers

say social media is important to their business. 82% percent of survey participants worked in

businesses with less than 100 employees. Smaller companies use various social media platforms

to ensure that they are able to interact with the consumer market. In the traditional perspective,

smaller companies did not have the resources to be able to penetrate the vast consumer market,

however, with the help of social media platforms they can interact with the consumer market,

through a low-cost strategy. According to Keran Smith (2019), the importance of social media in

business is growing at warp speed. With more and more people joining social media sites and

using them regularly and efficiently. The social media industry is bound to become bigger in the

coming years. It is booming like never before, and businesses should take advantage of it.
Online marketing is a valuable tool for small retail businesses and consumers

Erdur (2016) posited online marketing could be considered as the foundation of the web

economy. To reach a broader range of customers, business leaders should gain and use knowledge

with current technologies and concepts of online advertising (Lockett, 2018).

Social Media: Platform for Market Influence

The only difference in this virtual community is that there are no real-world limitations

present for the online users. The individuals can literally use any form of social media to

communicate in a different method. The companies have to critically analyse the strength of each

social media platform and develop a comprehensive strategy, which focuses on a relevant business

objective. Bruhn, et. al, (2012) further elaborated that companies cannot seek to develop a generic

social media strategy, by integrating any form of social media tool. It is important to consider the

penetration of each social media tool in the consumer market and how this tool can be effectively

utilized by the companies.

According to Roggeven and Sethuraman (2020), consumers are also likely to become

accustomed to new ways of shopping. For example, online grocery shopping with home delivery

is likely to become more common in places. Grocers will then need to determine how to make the

online shopping more similar to in-person shopping such that it will encourage impulse purchases.

Besides, it will be important for retailers to understand what types of experience consumers are

likely to value in a store after the pandemic. However, consumer behavior has a lot of adjustments,

where a majority of offline purchases have shifted to online. According to the research firm of

technomic, 52% of consumers are avoiding crowds and 32% are leaving their house less often

because of coronavirus. In a market study by insight, 30% of respondents, all millennials, said they
are now shopping online more frequently than before. All this means that most global market

places had to seriously alter their operations and online strategies. Surely all this increased demand

brings increased revenue for marketplaces, but it is not without certain challenges. During this

pandemic, entrepreneurs are using e-commerce to sell goods and products in a way that is not too

risky for the sellers and consumers. Using this kind of strategy can help prevent contact with other

people and also help prevent the spread of COVID -19.

As people try to maintain normalcy in their lives despite pandemic constraints, social

media and virtual meetings have become the "new normal" on a national and global scale. In the

Philippines, according to the Digital 2020 April Statshot study from Hootsuite and We Are Social,

64% of Filipino internet users are spending more time on social media, with 23% reporting

increased online shopping engagement. Entrepreneurs have embraced the digital phenomenon for

online shopping even further as customers turn to online shopping due to pandemic restrictions.

E-commerce websites like Lazada and Shopee are at the forefront of these online shopping

channels, with millions of pesos in sales revenue (Arreola, 2020). Online business transactions

have already been turned by technology into an infinite marketplace where doing business has

become simpler and more profitable for both vendors and buyers. The COVID-19 pandemic has

highlighted the importance of this market. Many entrepreneurs began to shift to alternative

approaches to continue their business operation. Among the alternative business continuity

strategies adopted by entrepreneurs is by selling and promoting their products via social media and

mobile applications like Facebook and WhatsApp. In addition, some of them decided to hire a

part-time transporter/runner to deliver their product to the end customer and adopted a cash on

delivery (COD) transaction (Fabiel et al., 2020).

 In Business World Article by Conoza (2021), despite the fact that the COVID-19 crisis

poses a threat to entrepreneurs, they can still counter its impact on their companies and take

advantage of opportunities during the ECQ. Mr. Ledesma, co-founder of the Mercato Centrale

food market and Easy Franchise and EnterPH platforms, recommended in an interview conducted

by BusinessWorld, that MSMEs start minimizing their inventory, accounts receivable, and

accounts payable, citing suggestions from Kenn Costalles, owner of Monolith Growth Consulting.

Furthermore, entrepreneurs should adopt a beginner's mentality, in which they decide which

aspects of the company are critical for generating revenue in a given situation. The changes in

focus did not stop at just moving from product to customer.

 Chapter IV

METHODOLOGY

Sample and Locale of the Study

The study was conducted in Tambulilid, Ormoc City. The respondents of the study were

divided into two groups namely: Entrepreneurs and Customers. Entrepreneurs were individuals

who owned and operated a business – small or large, with the aim of deriving profit from its

successful operations. Customers, on the other hand, were persons or organizations who bought

goods or services from a store or business. Business owners interviewed were 19 in number, while

customers were 50. These customers were chosen through random sampling.

Instrumentation and Tools

The researchers used interview and survey questionnaires as data collection instruments.

The four interview questions aimed to identify the sellers’ new normal business strategies in

Tambulilid, Ormoc City. Then, a survey questionnaire was utilized to determine the consumers’

most preferred business strategy, as well as other customer suggestions on the improvement of

existing business strategies. The survey questionnaire comprised two parts: first part consisted

rank - scaling questions intended to rank new normal business strategies according to customer

preference, and the second part was an open - ended question seeking customer recommendations

on business strategies enhancement.

Research Design

The researchers used both qualitative and quantitative research designs. First off, the

researchers specifically used a qualitative descriptive research design aimed to identify new
normal business strategies in Tambulilid, Ormoc City through in-depth interviews. Afterwards,

the researchers used a quantitative research design for the purpose of determining the consumers’

most preferred new normal business strategy. By conducting a survey with rank scale questions,

the researchers aim to find out the most preferred business strategy; and use it as basis for

enhancing existing business strategies practiced by entrepreneurs in Tambulilid, Ormoc City.

Gathering and Treatment of Data

Along with the lines of the objectives established by the researchers, there were two parts in

the gathering of data. One, the researchers needed to discover what business strategies were

existing during the course of COVID- 19 pandemic particularly in Tambulilid, Ormoc City. In

order to do so, the researchers conducted a series of in – depth interviews to a number of 19

business entrepreneurs. The identified new normal business strategies, as classified by the

researchers, were then written in a survey questionnaire. Two, for the purpose of identifying the

most preferred new normal business strategies adopted by entrepreneurs in Tambulilid, Ormoc

City; and other customer recommendations in the conduct of businesses, the researchers crafted a

survey questionnaire with rank order scaling and open – ended questions. Customers were then

asked to rank business strategies against each other according to their own preference. The data

gathered was then tallied and systematized with the help of Microsoft Excel. Statistics such as

mean, rank, and the frequency of responses were considered. To know the most preferred business

strategy, the researchers calculated the mean rank for each option. The results from the open –

ended questions, which asked for the customers’ personal recommendations relevant to business

strategies during pandemic, were categorized according to similarity of concepts.

 Chapter V

RESULTS AND DISCUSSION

‘New Normal’ Business Strategies

As the world creates a series of countermeasures on how to effectively eradicate the

unprecedented major damages caused by the COVID-19 pandemic, it is undeniable that the most

strategic method of solving the problem is to stimulate adaptability and systematize radical

adjustments and changes. In the framework of businesses and economies, lasting implications of

COVID-19 pose a tremendously difficult challenge for entrepreneurs to pivot their economic

underperformance. Similar to the introduced approach, which is to adapt the changes caused by

the wide-ranging transition to the new normal, businesses have no choice but to modify existing

business strategies. Identified as ‘new normal’ business strategies, these are allusively defined as

new versions of conducting businesses due to significantly altered circumstances.

In – depth interviews on a number of 19 business entrepreneurs were conducted in

Tambulilid, Ormoc City. It was to directly identify the ‘new normal’ business strategies they have

adapted in light of the prevailing turns effectuated by the COVID-19 pandemic; as well as the

underlying ends like being financially fragile that drove them to architect the said modifications

in the conduct of business. However, results showed a variety of strategy classifications, perhaps

due to distinct characteristics and perspectives of entrepreneurs. Based from the gathered

responses, ‘new normal’ businesses strategies established in Tambulilid, Ormoc City were

anchored at a certain aspect – that is to compete against the adverse economic effects of COVID-

19 through their abilities to adapt, innovate, and leverage their position for the sole purpose of

improving business performance. Notwithstanding that, there were also entrepreneurs who refused
to change their business approaches. As per them who remained constant in running their

businesses, no other alternatives were substantial enough to withstand the consequences of

pandemic.

Illustrated in the figure below were the ascertained ‘new normal’ business strategies

practiced in Tambulilid, Ormoc City. The following strategies included: online selling, price

reduction, adding new items for sale, improving product quality, selling trending items; and

constant business strategies as well.

New Normal Business Strategies in Tambulilid, Ormoc City

6%
13%
31%
6%

19%
25%

Online Selling Adding new items for sale

Price reduction Improving product quality
Traditional business strategy Free Deliveries

Figure 1. ‘New Normal’ Business Strategies in Tambulilid Ormoc City

From the demonstrated data above, key findings emerge the frequency of certain ‘new

normal’ business strategies being used. Among the six discovered ‘new normal’ business

strategies, online selling has superior results with 31%. Five business entities in Tambulilid,

Ormoc City suggested that converting from traditional to online selling has paved a way for them

to curtail the immense decrease in their sales. The second most adapted new normal business
strategy is the adding of new items for sale with 25%. Entrepreneurs often mentioned that the key

to increasing sales was increasing the number of items for sale as well. Next to the order was the

price reduction scheme with 19%. Not new to the majority, reducing prices of products has proven

to have good results in terms of increasing sales. Commonly identified as discounts, many

customers continued to be enticed with this certain business strategy, even before COVID-19

pandemic. Taking a share of 13%, traditional business strategies have not entirely phased out amid

pandemic. As per the businessmen who remained constant in their conduct of businesses, the

situation in the market right now left no area for improvement – to which they further explained

as having “no choice”. They strongly believed that developing business strategies in accordance

with the current situation would not pivot their huge decrease in sales at all. The two remaining

business strategies, each with 6% of the respondent population, were offering free deliveries; and

improving product quality. For the offering of free deliveries, one respondent believed that the

catch on this business strategy was that they gave off this perception that the customers would

spend less if they bought from their business. Improving product quality, as a business strategy,

has been observed to be generic in the economy. For every entrepreneur’s perspective, it is

undoubtedly true that improving product quality results in many advantages. Based on an interview

among the respondents, the businessmen responded that improving product quality would give

them the chance to entice customers more effectively.

Customers most preferred ‘new normal’ business strategy

Many communities encountered drastic changes brought about by the COVID-19

pandemic. These modifications varied from one sector to another on different relevant severity. In

business economics, as a fundamental sector of society, COVID-19 has driven entrepreneurs to

create an entirely new normal system of business strategies. This event primarily affected the
selling and buying processes of businesses, as well as customer relationships. With such market

features having to be greatly affected, the need to further understand customers’ perspective was

expected to immediately heighten.

A business’ definition of success is completely arbitrary; however, it is built on customers’

collective experiences and perspectives. Common to the majority, entrepreneurial success is not

rooted to a particular aspect. Although there may be various factors that affect the achievement of

entrepreneurial success, customer relationships outweigh the others. Taken from Matthew Tucker

(2020), an independent consultant helping companies looking to achieve greater customer success

and growth, customer success was the core and the reason why your business exists. CTo that end,

customers could be considered as the lifeline of one’s business; and a satisfied customer implied a

successful business.

Theoretically, customer perception is the marketing concept that encompasses a customer’s

impression, awareness, or consciousness about a company or its offerings. Typically, customer

perception is affected by advertising, reviews, public relations, social media, personal experiences,

and other channels. Taking this into the context of this study, businesses in Tambulilid, Ormoc

City must consider customer perception as the primary basis in their move of enhancing existing

business strategies, specially at a time where the world underwent various changes due to

pandemic. To give business entrepreneurs in Tambulilid, Ormoc City ideas on how to enhance

their business strategies, the researchers, through a survey, ranked their existing strategies

according to customers’ preferences. Data gathered were then analyzed and results shown below

are new normal business strategies ordered in accordance to customers’ preference.

 ‘New Normal Business Strategies Rank

Online Selling 1

Improving Product Quality 2

Selling Seasonal Products 3

Price Reduction 4

Adding new Items for Sale 5

Free Deliveries 6

Table 1. Consumers’ most preferred ‘New Normal’ Business Strategies

Online Selling

As observed above, Online Selling as a “new normal” business strategy practiced in

Tambulilid, Ormoc City, has seen to be the most preferred strategy of the customer population.

According to Dannenberg, Fuchs, Riedler, and Wiedemann (2020), the COVID-19 pandemic has

led to a sharp increase in online trade. In view of avoiding physical contact which is one of the

main causes of virus transmission, the use of technology as a tool for different transactions on a

daily basis has increased exponentially. COVID-19 pandemic has led to an inevitable surge in the

use of digital technologies due to the social distancing norms and nationwide lockdowns (De,

Pandey, & Pal, 2020). Moreover, based on the in - depth interviews conducted prior to the survey,

five business entities in Tambulilid, Ormoc City suggested that converting from traditional to

online selling has paved a way for them to curtail the immense decrease in their sales. Not to

mention, digitalization has seen to become an anchor truism of new normal. For good measure,
according to Jacobides & Reeves, 2020, the first step is to map the potential ramifications of

behavioral trends to identify specific products or business opportunities that will most likely grow

or contract as a result. Consider how the pandemic has caused people to stay at home more. On

that note, consumers were more likely to shop online specifically on social media. Taking this into

account, the need to adapt online selling as a ‘new normal’ business strategy constitutes many

advantages. To further underline this, RJM Variety, one of the businesses the researchers have

interviewed, testified that going online has proved to be effective in increasing sales; and that

“most of the activities right now involve the internet.” Taken from the highlights of a survey

conducted by Paychex in 2020, the internet has proved to be a savior for many businesses and

selling products on an e-commerce site is an obvious opportunity. All things considered,

customers’ positive attitude towards online selling was anchored to the current situation which can

be further translated into – online selling is most likely to effectively address economic

underperformance brought about by the COVID-19 pandemic.

Improving product quality

Second in rank was improving product quality. Caramela (2020) elaborated that improving

product quality is of paramount importance to a business' bottom line. There are four reasons as to

why this business strategy is important. One, it builds customers’ trust. Most businesses fail in

achieving entrepreneurial success due to absence of customer trust; countless potential sales are

lost when businesses lack the ability to establish deep connections with prospective buyers. In

contrast, if entrepreneurs successfully gain the confidence and loyalty of customers, they will then

have more freedom to make decisions such as raising prices to increase profit. Two, it fuels

recommendations. Word-of-mouth recommendations are a great persuasive factor in both online

and offline purchasing decisions. The higher-quality product a business has to offer, the higher the
possibility for it to generate positive reviews. Three, less complaints and returns. Marketing studies

have constantly proved that businesses of high-quality products obtain more repetitive purchases

from customers. Four, it results in a higher Return on Investment (ROI). Studies show a strong

positive association between quality and profitability. According to Caramela (2020), having fewer

defects results in lower manufacturing and service costs, and profitability will improve. In

addition, improvements in performance, features or other dimensions of quality lead to increased

sales.

Selling Seasonal Products

Ranked as third, selling seasonal products belonged to the top three most preferred new

normal business strategies of customers in Tambulilid, Ormoc City. Radas & Shugan (1998), as

cited in Aydin & Shugan (2020), stated that every product in every industry is seasonal; and that

seasonality dictates business strategy. Seasonal products were those that were either not available

on the market during certain seasons or periods of the year or were available throughout the year

but with regular fluctuations in their quantities and prices that are linked to the season or time of

the year. As evidence, taken from an article Marketing and Seasonal Demand for Goods and

Services, during summer months, the sales of ice candy, halo – halo, gulaman, etc. spike. This

was further underlined when certain entrepreneurs in Tambulilid, Ormoc City have testified the

same point. Therefore, businesses have to be conscious of the seasonal variations in demand and

hence, tailor their strategies accordingly.

Price Reduction

In an entrepreneur’s perspective, pricing is one of the pillars of any marketing approach.

Price reduction strategy comes with a couple of options – temporary reduction in price by means

of discounts; or reduce the pricing permanently. Consequently, both temporary and permanent
price reduction strategies have their own benefits and drawbacks. However, in the setting of

Tambulilid, Ormoc City, price reduction was unable to get in the top three most preferred business

strategies. Notwithstanding that, small – scale businesses in Tambulilid, Ormoc City were

observed to have reduced their prices through setting discounts for their products temporarily.

Based on Figure 1. ‘New Normal’ Business Strategies in Tambulilid Ormoc City, 19% of business

entrepreneurs practiced the price reduction scheme as one of their business strategies during

COVID-19 pandemic. Relatively, this was the third most adapted business strategy next to Online

Selling and Adding new items for sale in Tambulilid, Ormoc City. Lowering the prices of products

and services was a common strategy for businesses that seek a steep increase in sales. Such strategy

is an effective short- term tactic to help boost sales. Considering the setbacks many entrepreneurs

have experienced during the challenging times of pandemic, resorting to this strategy was

justifiable (LaMarco, 2019). Despite the fact that lowering prices could be a winning strategy at

times, it was not without its pitfalls. As stated in the blog from Simplicity Marketing, reducing

prices can be dangerous. It could damage a business’ brand and further lead to economic loss.

Worst, it could also lead to customer relations problems.

Adding New Items for Sale

For customers, adding new items for sale did not really pique their interest. Evidence

showed that among the six ‘new normal’ business strategies in Tambulilid, Ormoc City, adding

new items for sale only ranked as fifth most preferred by the customer population. Businesses in

Tambulilid, Ormoc City continued to seek and venture various strategies that help them increase

their sales. As a result of the declining average of customers buying in physical stores,

entrepreneurs faced a striking net loss. On the testimony of selected business owners in Tambulilid,

Ormoc City, should they add more items available for sale, an increase in their sales was more
likely to happen. In spite of what preceded, customers’ attitude towards this specific strategy was

not what the entrepreneurs expected to be. The principal reason for this circumstance wass that

customers have actually undergone drastic changes in financial capacity as well. With or without

new items available for sale in physical or virtual stores, most customers lacked the ability to afford

any of which. Consumers’ demand notably decreased during COVID-19 pandemic, and this was

due to restrictive lockdowns. On top of this, caused by lower income levels, most consumers

avoided spending too much on unnecessary items. Results from the Philippines COVID-19

Households Survey conducted last August 2020 reported significant income losses among

household heads still working, where about 57% have experienced reduced or no income.

Free Deliveries

Apparently, the least preferred business strategy of customers was the offering of free

deliveries. Although relevant to the current situation, people in Tambulilid, Ormoc City refused to

see the extent of the need for free deliveries. Additionally, among the interviewed business entities,

only one entrepreneur has adapted to the said strategy namely; RJM Variety. The business

identified that offering free deliveries as a business strategy has unfailing advantages. The benefits

implied are often, as stated by the business owner, stemming from the concept of “convenience”.

One key to understanding shopping behavior is the increased importance consumers are attaching

to convenience considerations (Kelley, 1958, as cited in Kim, Han, & Kim, 2019). Viewing the

bigger picture of the economic status having due regard for COVID-19 pandemic follow throughs,

the need for convenience has escalated. As a matter of fact, free deliveries aim to reduce

consumers' effort in visiting physical stores and face – to – face payment transactions. The

aforementioned statement also complies to existing minimum health protocols mandated as

precautionary measures for the COVID-19 pandemic. For all that, free delivery incorporates the
convenience that is undoubtedly a fundamental aspect of consumers preference in the new normal.

Additionally, Colwell et al. 2008 study underlines that convenience is a predictor variable that

affects outcome variables like customer service for customer satisfaction. Although from an

entrepreneur’s perspective, offering free deliveries was a good business strategy during COVID-

19, customers in Tambulilid, Ormoc City seemed to have less interest towards it as shown in the

data gathered. With the scope of this study only limited to the parameters of Tambulilid, it was

expected for customers to perceive free deliveries as unnecessary. Perhaps, the distance between

the customer and the physical store did not require that much transportation. However, on a larger

perspective, there was an occurrence of higher demands for free deliveries. Cevik et al. (2021)

identified free deliveries as one of the supports for self-isolation which was critical in COVID-19

response. With more people stuck at home due to pandemic, there has been a surge in demand for

delivery services. Although proven to be a good strategy measure, in the context of this study, Free

Deliveries has been considered as the least preferred business strategy of customers in Tambulilid,

Ormoc City.

Customer Suggestions on the Improvement of Existing Business Strategies

For the third objective, which sought to determine other business strategies customers can

suggest that may enhance existing strategies practiced by entrepreneurs, the researchers included

a specific part in the survey questionnaire that contained an open - ended question. This was

anchored to the importance of customer preferences regarding business strategies during

pandemic,

Results showed various business strategy recommendations from customers which

included the following: 1. “Strengthen business core values” 2. “Honesty in prices; Wholesale

prices” 3. “Sale promos; freebies” 4. “Effective expenditure management” 5. “Constant

improvement” 6. “Improve customer service and customer relationship” 7. “Strategies that follow

safety protocols” 8. “Creative” 9. “Risk taker” 10. “Effective business management and planning”

11. “Sufficient knowledge in business” 12. “Use high impact marketing” 13. “Sell necessities in

pandemic” The 13 specific customer suggestions were categorized according to the similarity of

concepts, to which the researchers analyzed and generated into themes. In general, business

strategies recommended by the customers were: strengthening of customer relationships, enticing

marketing strategies, effective general business management, and adaptive business strategies.

These themes should not be interpreted individually, but as a whole.

Strengthening of Customer Relationships

For customer suggestions like strengthening of business core values; and constant

improvement of business strategies and customer service, the researchers interpreted them into

strengthening of customer relationships in general. In a business, the synergy between customers

and sellers could be considered as a fundamental factor of entrepreneurial success. Customer

responses circulating on this subject were expected. On the grounds of Customer Relationship

Management ( CRM) theory, the better a business can manage the relationships it has with its

customers the more successful it will become. This theory was concerned with the relationship

between the organization and its customers. Customers were the lifeblood of any organization be

it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader

with a handful of regular customers (Gifford, 2020). In a highly competitive market, companies

need to maintain a positive relationship with their customer, as emphasized by Hassan, Nawaz,

Lashari, and Zafar, 2015. Hence, the customer relationship management has a considerable impact
on customer satisfaction, and both variables have a positive association. This particular strategy

was further validated to be as effective in business strategy development when Hassan et al., 2015

concluded that, strengthened customer relationships through effective CRM “increased the market

share, it enhanced productivity and resulted in superior employees’ morale.” A strong and reliable

CRM would make the customers more satisfied and retain the company, thus, the number of loyal

customers would increase. An increase in the number of loyal customers would then increase the

sales level of the company, which would cause an increase in profit (Hassan et al., 2015).

Enticing Marketing Strategies

Several customers were observed to prefer Honesty in price; wholesale, Sale promo;

freebies, or in other words, high impact marketing, as business strategies because it would benefit

them. Customers said that high impact marketing enticed them massively. Eventually, it would

help entrepreneurs generate and increase Customers Lifetime Value (CLV), which means that the

more you keep enticing your customers, the more it would lead them to be loyal in your business

and help your business to grow more. It is therefore not surprising that most of the marketers resort

to sales promotions to attract the competitor's market share (Keyan & Natarajan, 2019).

Effective General Business Management

"If you can run one business well, you can run any business well” - Richard Branson.

Numerous customers were concerned on how businesses systematize their management practices.

Evidence, from the second part of the survey questionnaire, showed a variety of customer

suggested business management strategies. Such strategies were effective expenditure

management and business planning, to be creative and risk taker, and to be equipped with sufficient

knowledge in the field of entrepreneurship. Notwithstanding the distinction, strategies mentioned

center on the same concept - which was to achieve an effective business management. Any

business could not be run without proper planning, management, and co-operation.

Supplementarily, an efficient businessman not only attracts new consumers, but also retains his/her

existing consumers, allowing him to maximize earnings by providing the greatest goods and

services, in accordance with his customers' current expectations and wants. Losing a customer can

be a setback because one dissatisfied client can turn down a large number of other consumers. This

event, customers suggesting a wide range of business strategies that were anchored to

management, was further substantiated in Carl Lehmann’s book - Strategy and Business Process

Management: Techniques for Improving Execution, Adaptability, and Consistency. As said by

Lehmann, running a business successfully needs leaders and management teams who do things

better and faster with fewer resources and lower cost. Doing so would require research, knowledge,

planning, and tools which must be garnered from several disciplines that encompassed: crafting

and adapting a competitive and defensible business strategy, translating business strategy into

action, empowering and motivating the workforce, designing effective and efficient business

processes, implementing information technology for cost-effective execution, aligning resources

such as people, processes, and technology to consistently execute business strategy.

Adaptive Business Strategies

Some of the customers suggested selling necessities during pandemic; and strategies that

follow safety protocols, as business strategies businesses have to implement in times of pandemic.

They thought that basic needs and utmost safety protocols are of primary priority businesses have

to consider. Considering the fact that there are existing quarantine protocols, and limited persons

were allowed to go outside, customers thought that buying products from near business

establishments was better. This would also prevent them from being exposed to COVID-19, or
share the said virus. This event was further underlined when Grant Wilson (2020) stated that

consumer behavior changes drastically in times of crisis and has historically been strategic by

focusing on spending their limited resources on the essential.

 Chapter VI

SUMMARY, CONCLUSION, AND RECOMMENDATION

Summary

The purpose of the study was to determine the Customers Preference in the New Normal: Basis

for Enhancement of Existing Business Strategies.

The researchers conducted a series of interviews on 19 entrepreneurs; and a survey on a number

of 50 respondents who belong to the customer population in Tambulilid, Ormoc City.

The study revealed that the most preferred business strategy is online selling with a mean rank

of 2.72, highest among the rest. This is primarily because of the fact that this strategy complied

with the existing safety protocols such as social distancing for example. Next in rank for the most

preferred business strategy was improving product quality followed by, selling seasonal products,

price reduction, adding new items for sale and lastly, the free deliveries. Aside from the ranked

business strategies according to preference, customers also recommended a wide variety of ways

in improving existing business strategies. Although slightly different, approaches suggested were

categorized according to similarity of concepts include: strengthening customer relationships,

enticing marketing strategies, effective general business management, and adaptive business

strategies

Conclusion

After conducting this research, the researchers concluded that the identified new normal

business strategies adopted by entrepreneurs were Online Selling, Improving Product Quality,

Selling Seasonal Products, Price Reduction, Adding new items for Sale, and Free deliveries. Based
on this study, consumers’ most preferred new normal business strategy was Online Selling. Due

to the many disruptions caused by the pandemic, entrepreneurs needed to change and adapt their

business strategies according to new circumstances. Through online selling platforms, people were

able to buy everything from their own homes, without having the need to go to physical stores.

This means that changing existing business strategies to a virtual approach provided customers the

convenience and support they needed at a time where the world underwent many challenges

brought about by the pandemic. Furthermore, there were also other business strategies suggested

by the customers in Tambulilid, Ormoc City. These recommendations were then taken as the basis

for the enhancement of existing business strategies, along with the customers’ most preferred

business strategy. Customers’ suggestions were categorized into similarity of concepts namely;

strengthening customer relationships, enticing marketing strategies, effective general business

management, and adaptive business strategies.

Recommendation

After the researchers gathered sufficient information from the respondents resided in

Tambulilid, Ormoc City, the researchers believed that this study may allow future researchers to

identify other community problems concerning the status of small-scaled businesses in every

community during pandemic. Furthermore, based on the results of the survey conducted, the

researchers recommend to future researchers that they should study the perspective of

entrepreneurs in order to know how effective online selling is as a business strategy during

pandemic; and how effective are the identified most preferred business strategies with regards to

the enhancement of existing business strategies.

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 Appendix A

CONSENT LETTER

Title: CUSTOMERS PREFERENCE IN THE NEW NORMAL: BASIS FOR ENHANCEMENT OF

EXISTING BUSINESS STRATEGIES

Research Description: This study is conducted to discover the “new normal” business strategies adopted by
entrepreneurs; identify the most preferred new normal business strategy of customers; and determine other
business strategies customers can suggest that may enhance existing strategies practiced by entrepreneurs.
All of which are for the purpose of enhancing existing business strategies in Tambulilid, Ormoc City.

PRIVACY & CONFIDENTIALITY: Private information collected in this project will not be shared with
the public. The names of the participants as well as where they live or work will not be disclosed to anyone
during or after the completion of this project. All information that can reveal the identity of the research
participant will systematically be removed from the data before data analysis starts. To do so, each research
participant will be assigned an anonymous identifier or a number.

VOLUNTARY PARTICIPATION: Research participants freely volunteer to participate in this research

study, without being forced. They have the freedom to share what they want to share or stop participating
if they want to stop anytime.

RISK: There is no known emotional or physical harm that this research can cause to the researchers and the
research participants of this study.

AUDIO RECORDER: The researchers will be using an audio recording device but will keep the
information confidential.

HONESTY: Both the researchers and the research participants agree to be honest in both data collection
and reporting. No dishonesty is allowed.

INFORMED CONSENT

I, ______________________, understand the purpose of this research project and voluntarily

give my permission to participate freely.

_________________________

Signature of the participant / Date signed

Name and Signature of the researchers:

Contact Numbers:
 Appendix B

Research Tool

IN - DEPTH INTERVIEW QUESTIONS

1. How did the COVID-19 pandemic affect your business?

2. Do you have new business strategies?

3. What are your business strategies?

4. Do you think your business strategies are effective at this time?

SURVEY QUESTIONNAIRE

I. Rank the following new normal business strategies in Barangay Tambulilid, Ormoc City

according to your preference, 1 being most preferred business strategies, 2 being the next

preferred business strategies, and so on.

____Adding new products for sale

____Selling seasonal items

____Price reduction

____Improving product quality

____Online selling

____Free Deliveries

II. Give some comments & suggestions that can help entrepreneurs in Tambulilid, Ormoc City

improve their business strategies.

 Appendix C

Statistical Analysis

ONLINE SELLING

Rank No. of responses Subtotal

1 20 20

2 7 14

3 5 15

4 7 28

5 7 35

6 4 24

Total 136

Mean Rank 2.72

IMPROVING PRODUCT QUALITY

Rank No. of responses Subtotal

1 8 8

2 10 20

3 14 42

4 10 40

5 3 15

6 3 18

Total 143

Mean Rank 2.86

 SELLING SEASONAL PRODUCTS

Rank No. of responses Subtotal

1 7 7

2 9 18

3 11 33

4 7 28

5 12 60

6 5 30

Total 176

Mean Rank 3.52

PRICE REDUCTION

Rank No. of responses Subtotal

1 7 7

2 10 20

3 6 18

4 11 44

5 9 45

6 8 48

Total 182

Mean Rank 3.64

 ADDING NEW ITEMS FOR SALE

Rank No. of responses Subtotal

1 3 3

2 9 18

3 8 24

4 10 40

5 11 55

6 10 60

Total 200

Mean Rank 4

FREE DELIVERIES

Rank No. of responses Subtotal

1 8 8

2 4 8

3 6 18

4 4 16

5 7 35

6 21 126

Total 211

Mean Rank 4.22