Professional Documents
Culture Documents
A Thesis
Presented to the
Faculty of the Graduate School of
STI College of Santa Rosa Laguna
In partial Fulfillment
of the requirements in Bachelor of
Science and Business Administration
Major in Operation Management
By:
PADAYAO, MENLY
TUNAY, MEREROSE
2020
TABLE OF CONTENT
Chapter I....................................................................................................................................................1
Introduction................................................................................................................................................1
Theoretical Framework............................................................................................................................3
Expectancy-Disconfirmation Theory.......................................................................................................4
Operational Framework...........................................................................................................................5
Operational Model...................................................................................................................................6
Statement of Hypothesis..........................................................................................................................8
Definition of Terms................................................................................................................................10
Chapter II.................................................................................................................................................12
RESEARCH METHODOLOGY............................................................................................................26
Research Design....................................................................................................................................26
Source of Data.......................................................................................................................................27
CHAPTER IV..........................................................................................................................................30
CHAPTER V............................................................................................................................................40
Summary of Findings.............................................................................................................................41
Conclusions............................................................................................................................................42
Recommendations..................................................................................................................................43
Bibliography.............................................................................................................................................44
SURVEY QUESTIONNAIRE.................................................................................................................48
CURRICULUM VITAE..........................................................................................................................52
LIST OF FIGURES
Introduction
Customer service has become a distinct component of both product and service sectors
and with the developments in information technology many businesses find demanding and
knowledgeable customers. In an increasingly competitive environment, companies must be
customer oriented (Kotler, 1997).
Puregold Price Club, Inc. (Puregold” or “the Company”) was incorporated on September
8, 1998 and opened its first Puregold hypermarket store in Manila and Paranaque. It also
launched its loyalty program, which was eventually renamed as “Tindahan ni Aling Puring” in
2004. Between 2002 to 2006, Puregold continued its expansion at an average of 3 new stores
every year and established operations in North and South Luzon. In 2008, Puregold was
recognized by Reader’s Digest as the Most Trusted Brand in supermarket category. By mid-2009
the company gained market leadership being the second largest hypermarket and supermarket
retailers in the Philippines in terms of net sales. By the end of 2016, Puregold was operating a
total of 147 hypermarkets, 100 supermarkets including the supermarket in this study which is the
Puregold Balibago, 29 extra, 1 minimart, 12 S&R warehouse clubs, 23 S&R-QSRs, 9 stores
under NE Bodega and 8 Budgetlane stores, for total of 329 stores.
An organization’s main focus must be to satisfy its customers. This applies to industrial
firms, retail and wholesale businesses, government bodies, service companies, nonprofit
organizations, and every subgroup within an organization. Dissatisfaction is believed to be the
consequence of a product or service failing to meet the customer’s expectations whereas
satisfaction is what a customer feels when a product or service meets his or her expectations.
Customers are delighted when the product or service performance surpasses their expectations.
To measure customer satisfaction this study used [price perception, asked customers direct
questions to rate their levels of satisfaction, the levels which their expectations were, whether
they intended to make repeat purchases and if they would refer other customers to the
supermarkets.
Theoretical Framework
Expectancy-Disconfirmation Theory
Operational Framework
Operational Model
It describe on how it work in the future. In which is a view of the operating at a future
point of time. This model is to enable the application of corporate strategy or vision to a business
or operation. This operational model visualizes the future result.
Service Quality:
Tangible
Reliability
Customer Satisfaction
Responsiveness
Assurance
Empathy
Fig.1. The operational model of the study showing the difference/relationship among the variables.
Statement of the Problem
This study aims to determine the service quality and customer satisfaction in Puregold
Balibago in the City of Santa Rosa, Laguna. Specifically, this study will seek to answer the
following sub-questions:
1. What is the service quality in Puregold Balibago in the City of Santa Rosa,
Laguna in terms of?
1.1 Tangible
1.2 Reliability
1.3 Responsiveness
1.4 Assurance
1.5 Empathy
2.1 Tangible
2.2 Reliability
2.3 Responsiveness
2.4 Assurance
2.5 Empathy
The researchers will test if there is no significant relationship between the service quality
in Puregold Balibago in the City of Santa Rosa and their level of satisfaction as rated by their
customers.
In conducting this study, the following assumptions, we made. It was assumed that:
The study aims to determine the Service Quality and Customer satisfaction in Puregold
Balibago in the City of Santa Rosa, Laguna. The target respondent of the study is 50. The
respondents of the study were the customers of Puregold Balibago in Santa Rosa, Laguna. The
study respondents will be the customers of the supermarkets in Santa Rosa, Laguna. The study
would be conducted during the Calendar Year 2020.
Significance of the Study
The researchers believe that the results of this study would have significance to the following:
Supermarket Employees. This study would help the people who are working
under the subject supermarkets in the study providing them the information on
how the strategies that they are using are affecting their service quality and
customers’ behavior especially that they are the ones with direct relationship with
their companies’ customers.
Researchers. This study would satisfy the interest as well as enhance their
knowledge in the area of marketing strategies.
Zero Defects Theory states that there is no existence of waste in a project. Waste
refers to anything that is unproductive i.e. processes, tools, and employees etc.
Quality, Crosby emphasized, is neither intangible nor immeasurable. It is a
strategic imperative that can be quantified and put back to work to improve the
bottom line. (Shnmula, 2019)
This chapter presents the literature and studies reviewed which are relevant to the present
research. Key theories and arguments in the literature have been identified from a varied range of
service quality, customer satisfaction, and retail literature. Towards the end of the chapter the
researchers presented a synthesis of the state of the art and gaps in the review presented.
The literature and studies that were reviewed and conducted were found to have bearing
on the present study. This reviewed literature will serve as the bases for the conceptualization of
the study’s research problem, design, and research methodology.
Furious competition among the banks induces the owners to find out the ways to ensure
the sustainability in the market and to gain competitive advantage even among competition.
Thus, focus towards the customer loyalty has increased more than ever before which drew the
attention of the researchers reroute for the identification of the antecedents of customer loyalty.
In this regard, the relationship between customer satisfaction and trust on customer loyalty has
investigated in the commercial banks of Sri Lanka. The findings revealed a significant positive
correlation between customer trust and loyalty; customer satisfaction and loyalty; and customer
satisfaction and trust. Customer satisfaction has identified as an important influencer on customer
loyalty. Further, customer trust impacted by customer satisfaction which proved that customer
satisfaction is an antecedent of customer trust. Moreover, an indirect relationship between
customer satisfaction and loyalty through customer trust was observed. The future studies may
replicate in other service contexts and comparison of models of government and private banks
will give more understanding.
The Philippine government encourages consumers to buy locally produced foods to
promote growth and sustainable agriculture. This will provide further economic, environmental
and social benefits to farmers and local areas, leading to more sustainable patterns of
consumption. This qualitative research looks at the views and behavior of consumers in Tacloban
City towards buying foods from public and private supermarkets, focusing on the barriers that
prevent greater uptake local produce. Two separate focus groups (N=28) were conducted.
Content analysis identified five relevant themes in relation to buying foods from public
supermarket and private grocery stores. These were lifestyle, cost, food quality, food choices and
environment. Participants reported buying their foods and food products mostly from the local
public supermarket with the cost, food quality and food choices as factors influencing them to do
so. The main barriers preventing participants from buying from local public supermarkets are the
dirty environment and inconvenience. The results of the study are useful in developing future
strategies for encouraging people to buy more from the local public supermarkets increasing
consumption of local produce.
Furthermore, the study also noted various preference-oriented factors like convenient,
attractiveness, reliability, fast process of checkout, modern, and existence of good and reputable
brands and competitive prices as key to preference of particular supermarket. The study found
strong relationship between experience and preference. The study indicated that future research
need be undertaken using a case study approach focus on one supermarket to get detailed insights
into the nature of customer experience and preference factors. The study also noted that similar
studies be undertaken in other retail outlets other than large supermarkets, like middle sized and
small sized supermarkets to identify their customers experience and preferences.Customer
expectations management can be very challenging indeed. Your clients and customers will all
have their own expectations of your business or organization and these can be enormously
varied.
Moreover, what’s more, their expectations will change over time, often becoming more
demanding. Today’s customers are more knowledgeable and more critical than ever before. To
meet their expectations businesses and organizations need to understand their changing needs
and demands and they need to have effective strategies in place that will ensure high levels of
customer satisfaction into the future. Ideally, businesses should be anticipating and exceeding
customer expectations before they are even expressed. Customer expectation encompasses
everything that a customer expects from a product, service or organization. Customer
expectations are created in the minds of customers based upon their individual experiences and
what they have learned, combined with their pre-existing experience and knowledge. Customers
will have both explicit and implicit expectations regarding the product or service which they
have purchased. They will have performance expectations which include a dynamic element due
to anticipated changes to the product or service over time. Importantly, they will also have
interpersonal and service-level expectations which relate directly to the customer relationship
and interaction with a business or organization.
In addition, customer expectation are pre-trial beliefs about a product or service (Olson
&Dover ,1979). In the absence of any information ,prior expectation of service will be
completely diffuse .In reality ,however, customer have many source of information that
lead to expectation about upcoming service encounters with a particular company. These
source include prior exposure to the service, word of mouth, expert opinion, publicity, and
communication controlled by the company (e.g., advertising ,personal selling ,and price ) as well
as prior exposure to competitive services (Zeithaml ,Berry, and Parasuraman ,1993). In the
pre purchase stage, expectation influence consumer decisions on which brand or type of product
or service to buy. During consumption can be effected can be the attitude of service personnel,
other customer and equipment. In the post purchase stage, expectation from the basis of
evaluations of satisfaction.
An organization’s brand image can be as important as the goods or services it
produces. A strong brand image is a powerful asset. A recognized and trusted brand identity
makes people confident that the organization is dependable. Developing a corporate brand is
important because a positive brand image will give consumers, and other interested stakeholders,
confidence about the full range of products and activities associated with a particular company.
Therefore, it was aimed in this study to investigate the relative influence of the brand
image on consumer preferences.
Beyond the growth correlation – if you actively work to increase customer satisfaction, you’re
more likely to see an increase in revenue – there are plenty of other reasons to make it a top priority. Take
word-of-mouth, for example. It matters, especially in the ultra-connected and always-on digital world we
call home. We can instantly share our experience with a brand with thousands of others on social media
Moreover with respect. It goes deeper than that, of course, but treating them with respect
at all times goes a very long way in creating happy, satisfied, loyal customers. Have open lines of
communication. Email, phone number, social media profiles, online chat, instant messaging, and
more. Provide the channels they want. Respond to communication – both positive and negative –
in a timely manner. As a rule of thumb, people expect an online answer in well under an hour.
Under-promise and over deliver. say “thank you”.
Furthermore, train your staff in delivering spectacular customer service. It’s a skill. Don’t
assume your employees have it already. Listen, Respond. Ask for feedback. That’s the
satisfaction loop to create. We could devote an entire post to this subject. Suffice to say, follow
the golden rule: treat others as you’d like to be treated. You may be a business owner, but you’re
also a customer at other times. What do you look for in exceptional customer service? Do that.
Customer satisfaction helps your business achieve business success and a competitive
edge over competitors. Satisfied customers are loyal customers and often provide repeat business,
referrals and word-of-mouth advertising. Higher satisfaction levels increase customer loyalty,
reduce churn and the cost of acquiring new customers. Gainsight’s customer success
management solution gathers information from multiple sources online to create a holistic view
of customer’s usage and their expectations about the product. These insights enable you to
effectively market the most relevant products and services to them. Customer satisfaction is a
critical concept for customer success professionals to understand and live by, and it's actually
about more than a money-back guarantee. In this post, we'll start discussing customer
satisfaction: what it is, and why it's important for your business to start measuring. When it
comes down to it, customer satisfaction is a reflection of how a customer feels about interacting
with your brand. And businesses and brands quantify this positive or negative feeling primarily
using customer satisfaction surveys. These responses can give you an idea of your average level
of customer satisfaction - along with a picture of customer loyalty, which predicts the likelihood
of customer referrals (like the one Trader Joe's got when I first walked into the store).
The widespread belief in the intuitive relationship between quality, customer satisfaction
and economic returns, as well as the growing frustration with attempts to improve quality, serve
to underscore the importance of analytical and empirical work increasing understanding of
customer satisfaction and how it relates to economic returns. Firms that actually achieve high
customer satisfaction also enjoy superior economic returns. Economic returns from improving
customer satisfaction are not immediately realized because efforts to increase current customers'
satisfaction primary affect future purchasing behavior. While it is possible that customer
satisfaction and market share go together, there is growing evidence that this is not always the
case in the short run or a cross-sectional analysis.
Customer satisfaction is critical to retail success. Concentrating on customer satisfaction has
become a major goal in retailing industry, especially in grocery retail. This work examines the
key determinants of customer satisfaction in grocery retailing and measure the link between store
attributes and customer satisfaction. In addition, it aims to find out the effect size of these
determinants on overall customer satisfaction in an emerging market, namely Malaysia. For this
purpose, an extensive dataset from 313 shoppers who had carried out their purchase in different
type of grocery stores has been analyzed. Using Partial Least Squares-SEM (PLS-SEM) analysis
method, we show that three determinants (‘‘monetary value’’, ‘‘service and convenience’’, and
‘‘store quality image’’) have a direct impact on customer satisfaction. However, the weight that
each factor shows is different. Results may help managers of grocery stores in Malaysia to
develop and implement more successful relationship marketing strategies.
However, this study aims to analyze the factors that affect customer loyalty and also
factors that affect customer satisfaction and trust. In addition, it also analyzes the factors of
customer satisfaction and trust as a factor mediation on the relationship in question. Sample
amounted to 270 customer of internet service provider. Primary data were obtained through
questionnaire distribution. Data were analyzed using confirmatory factor analysis (CFA) and
structural equation modeling (SEM). The result showed that 2 exogenous variables significantly
influenced directly to endogenous variables, but also 2 exogenous variables influenced through
endogenous variables mediation (customer satisfaction and trust). The results of research besides
can add to the treasury of research results about consumer behavior, but also that is very
important for ISP management in improving customer loyalty through customer satisfaction and
trust.
Service sector in Sri Lanka plays a major role in the economy by contributing more than
55% of the Gross Domestic Production. Especially in under developed countries, they are
encouraging and promoting small business to cater as source of income generation, employment
creation and maximum utilization of resources. The growth and the survival of these small
business depend on one of the important factor; the quality of the service offered. It helps these
businesses to retain and attract customers by fulfilling their expectations. This study focus on
studying the service quality of service providing SMEs and how it will help to gain the
competitive advantage and leads to business performance. This paper contains the theoretical
background derived from the existing literature in order to construct the research framework for
the study.
Furthermore, a constant concern of academic institutions has been to improve the customer
satisfaction in university libraries. The service quality within academic library context is pivotal
for satisfying customers by meeting the customers’ needs to create loyalty amongst customers.
This research uses LibQual to analyze the gap between customer’s perception and expectation,
concerned with the services at the University Sultan Zainal Abidin (UniSZA) Library. There are
six dimensions in service quality; namely general services, search for materials, library
collection, staff, environment and environment, considered for this empirical research. The
purpose of this paper is to 1) know service quality dimensions that satisfy the customers and 2)
to observe the impact of service quality on customer satisfaction. The research methodology is
carried out using a questionnaire survey distributed among 170 samples through simple random
sampling. The data obtained was analyzed by using covariance-based structural equation
modeling and importance-performance analysis. The results suggest that quality of service had a
significant impact on customer satisfaction. Among the service quality dimensions, library
environment and general service were viewed as high importance and strong performance index.
Implication for research and practice resulting from these findings were also discussed.
In today’s era of competitive environment, service quality is the major focus of the
service providers. Past researchers have showed that evaluations of service quality have close
positive relation with customer loyalty and behavioral intentions. In food industry, service
managers have a great focus on generating customer satisfaction and customer loyalty. The focus
of the research was to examine how much is the impact of customer satisfaction in order to
generate customer loyalty and repurchase intentions by continuously improving service quality.
The research intends to study the relationship of four concepts i.e. perceived service quality,
customer satisfaction, loyalty and repurchase intentions.
Now, people will only stay loyal to a company if they have very good reasons to do so.
Otherwise, there are a plenty of competitors available they could choose to move to. As a result,
you have to work even harder to keep customers and build their trust in your brand. By providing
the best in customer service, you will increase trust, and that could mean the difference between
customer loyalty and customer who jumps ship.
In addition, service quality and customer satisfaction are important concepts to grocery industry.
It is therefore important for companies to know how to measure this construct of expectations
and perceptions because consumers’ expectations of service quality are increasing and people are
becoming more and more critical of the quality of service they experience. The service quality
model SERVQUAL is discussed in this study and how it can be applied in the context of grocery
stores. The data in use were gathered from consumers in a southern Swedish town, called Växjö
and the goal was to measure their expectations and perceptions of the services provided to them.
After going through a significant number of articles and literature, the SERVQUAL model was
altered by adding more variables (products, location, and waiting time) to its five dimensions.
The aim was to find out if consumers are satisfied with the services been provided to them by
grocery stores. The following study both synthesizes and builds on the efforts to conceptualize
the effects of quality, satisfaction, and value on consumers’ behavioral intentions. Specifically, it
reports an empirical assessment of a model of service encounters that simultaneously considers
the direct effects of these variables on behavioral intentions. The study builds on recent advances
in services marketing theory and assesses the relationships between the identified constructs
across multiple service industries. Several competing theories are also considered and compared
to the research model. A number of notable findings are reported including the empirical
verification that service quality, service value, and satisfaction may all be directly related to
behavioral intentions when all of these variables are considered collectively. The results further
suggest that the indirect effects of the service quality and value constructs enhanced their impact
on behavioral intentions.
Service quality is known to be based on multiple dimensions (Gronroos, 1984). However,
a review of the service quality studies to date explicitly shows that European scholars have
exerted a great influence on the study of service quality dimensions. That is, the contemporary
discussions on the dimensions of service quality have been initiated by European scholars.
Satisfaction (Hokanson, 1995) is affected by many factors which include friendly employees,
courteous employees, knowledgeable employees, and helpful employees, accuracy of billing,
competitive pricing, service quality, good value and quick service. For purposes of this study, the
researcher concentrate on nine dimensions of customer satisfaction which are Location,
Additional Services, Product Quality, Service Quality, Facilities, Reliability, Process, Value for
Money, Staff and Personnel Service. Furthermore, the nine dimensions also consist of 21
elements which are used in the collection of data and analysis of results. Service quality is
frequently used by both researchers and practitioners to evaluate customer satisfaction. It is
generally accepted that customer satisfaction depends on the quality of the product or service
offered (Anderson and Sullivan 1993). Numerous researchers have emphasized the importance of
service quality perceptions and their relationship with customer satisfaction by applying the
NCSI model. Hsu (2008) proposed an index for online customer satisfaction based on the ACSI
and found that e-service quality was more determinative than other factors (e.g., trust and
perceived value) for customer satisfaction. To deliver superior service quality, an online business
must first understand how customers perceive and evaluate its service quality. This study
developed a basic model for using the TCSI to analyze Taiwan’s tourism factory services.
Yet service quality and services cape was conducted to identify theoretical
background to the problem in the discussion; customer satisfaction and customer loyalty.
Analysis of various services cape and service quality related theories, models could allow
practitioners to see what really works for them so that they can prioritize their service
processes accordingly. In this review the relationship between service strategies (service
quality and services cape) and customer satisfaction, found a significant impact. Most of the
studies have used mostly the 6 items in the SERQUAL model to measure the service quality as;
tangibility, reliability, responsiveness, empathy, assurance and showed their statistical
significance. The researchers could also use the results of these studies as the guidance to explore
various related studies in more detail and improve the accuracy of future service quality, services
cape, customer satisfaction and ultimately the customer loyalty measurement. According to the
reviewed literature, it can be concluded that there is a significant relationship between
service quality, services cape and the customer satisfaction. Industrial development of retail
business in Indonesia was marked by the opening of the entrance to the foreign retailers as
Presidential Decree of the Republic of Indonesia No. 118 of 2000 which has issued a retail
business on the negative list for foreign direct investment (FDI), since that the modern retail
business which is funded by local and foreign capital got increased. This study has discussed
about service quality; tangibles, reliability, empathy, responsiveness, and assurance,
consideration simultaneous influence the consumer loyalty. The research aims to analyze service
quality on customer loyalty in modern retail market: Freshmart Bahu Manado. The main reason
of this study is to reveal how service quality influence customer loyalty in Freshmart Bahu
Manado. The data of this study had collected from consumers (respondents) who have experience
of daily shopping activities in Freshmart Bahu Manado.
Therefore, service quality is a focused evaluation that reflects the customer’s perception
of elements of service such as interaction quality, physical environment quality and outcome
quality (Brady and Cronin, 2001). Service quality has its roots in the business and management
field. Marketers realized that to retain customers, and to support market growth, they must
provide high quality of service (Dabholkar, Shephard, and Thorpe, 2000; Zeithaml, 2002). It is
said that service quality is an important antecedent of consumer assessment of value, which in
turn influences customer satisfaction, which then motivates loyalty (Babakus and Boller, 1992).
According to Zeithaml et al. (1990) service quality is the extent of discrepancy between
customer’s expectations or desires and their perceptions. Furthermore, according to Boone and
Kurtz (1995), service quality refers to the expected perceived quality of service offering. It is a
primary determinant of customer satisfaction or dissatisfaction. Then, Mangold and Babakus
(1991) stated that service quality is the outcome of a process in which consumers’ expectations
for the service are compared with their perceptions of the actual delivered service. The
measurement model of service quality addresses only the dimensions that form objective
measures of the service quality construct. On a broader sense, service quality is an important
construct because it influences consumer behavioral intentions (Cronin, et al., 2000).
The purpose of this paper is the estimation of a production function for retail stores in the
Philippines. A generalized Cobb-Douglas production function is utilized for this purpose.
Ordinary Least Squares is used in obtaining the coefficients for labor and capital. The results
show that the marginal product of labor to be higher than the marginal product of capital and the
hypothesis of constant returns to scale is not rejected. The Philippine retail trade industry carries
a wide array of products such as food, textile and apparel, construction materials, books, office
and household appliances, transport equipment and accessories, drugs, mechanical supplies and
equipment, petroleum products, toys, gifts, and jewelry products. The growing importance of the
retail-trade sector to the Philippine economy is one major factor behind repeated attempts since
1993 to liberalize the sector. In March of 2000, the Retail Trade Liberalization Act of 2000
(Republic Act 8762) was passed into law by the Philippine Congress. This law opened up the
retail trade sector to foreign investment. Table 1 shows that as the Philippine economy grew in
the period 1992 to 2006, the share of retail trade in both Gross Domestic Product (GDP) and
Gross National Product (GNP) has remained at about the same level (between 10-13% of both
GNP and GDP). The average ratio of retail trade gross value added to GNP for the period 1992 to
2006 is approximately 0.112 while the average ratio of retail trade gross value added to GDP for
the period 1992 to 2006 is approximately 0.118. The retail sector grew by an average of 5.8%
from 1981 to 1997 compared to average GDP growth of 2.27% for the same period. In 1997, its
share in the services sector and trade subsector was approximately 25.43 percent and 72.84
percent, respectively (Digal, 2001).
In contrast, starting from a common traditional food retailing system of small shops, wet
markets, and hawkers (as was similarly common in the US, Western Europe, and Japan), a
“supermarket revolution” took off in the early to mid-1990s in developing countries (Reardon et
al. 2003; Reardon and Timmer 2007). The spread of supermarkets has taken place – and
continues to do so – in three waves. The first wave countries experienced supermarket sector
takeoff in the early to mid1990s. These include much of South America and East Asia outside
China and Japan, Northern-Central Europe and the Baltics, and South Africa. These first wave
countries saw supermarket diffusion in a single decade that took some five decades to happen in
the U.S. and the U.K. The second wave countries include Mexico and much of Southeast Asia,
Central America, and Southern-Central Europe. The third wave countries are those where the
supermarket revolution did not take off until the late 1990s or early 2000s; these areas include
parts of Eastern and Southern Africa, some countries in Central and South America, “transition
East Asia” (China and Vietnam), Russia, and India. The modern retail in a subset of the third-
wave countries, especially China, Vietnam, Russia, and India, is growing very quickly, often at
three to four times the rate of their rapidly growing GDPs per capital. Success in the increasingly
competitive and significant Chinese hypermarket sector requires a systematic focus on service
quality. Current measures of hypermarket retail service quality do not adequately capture how the
Chinese customers evaluate their experience. This study describes the development of an
instrument to measure hypermarket service quality suitable for customers socialized to Chinese
culture. Drawing on existing exploratory work, we propose dimensions of Chinese hypermarket
service quality and associated items to measure our proposed construct. Confirmatory factor
analysis, using a second sample, confirms the dimensionality and validity of our proposed scale
with 4 dimensions and 18 items.
This paper reviews the literature on customer satisfaction and customer loyalty, giving
emphasis on service marketing strategies specially service quality and in store supermarkets. The
purpose of this paper is to reveal available literature related to service strategies on customer
satisfaction and customer loyalty using research papers, online databases, conference articles,
masters or doctoral dissertations and other related published information which are directly
relevant to the said relationship. Further, it provides a comprehensive idea developed on service
strategies on customer satisfaction and customer loyalty from its populated period (2015) to the
date (2019). It was found that how service strategies influence to customer satisfaction and in
turn to customer loyalty. Accordingly, the review results indicate that customer satisfaction
significantly influence as the intervening variable in between the service strategies and customer
loyalty. Also, it shows that both service quality strategies and service scape strategies are
significantly influencing to determine the customer satisfaction.
In addition to literature review of service quality and services cape was conducted to
identify theoretical background to the problem in the discussion; customer satisfaction and
customer loyalty. Analysis of various services cape and service quality related theories, models
could allow practitioners to see what really works for them so that they can prioritize their
service processes accordingly. In this review the relationship between service quality and
customer satisfaction, found a significant impact. Most of the studies have used mostly the 6
items in the SERQUAL model to measure the service quality as; tangibility, reliability,
responsiveness, empathy, assurance and showed their statistical significance. The researchers
could also use the results of these studies as the guidance to explore various related studies in
more detail and improve the accuracy of future service quality, customer satisfaction and
ultimately the customer loyalty measurement. According to the reviewed literature, it can be
concluded that there is a significant relationship between service quality, and the customer
satisfaction.
From the above review of related literature and studies, the following gaps were
determined:
1. There were no studies yet conducted about the service quality and customer
satisfactions at Puregold Balibago in Santa Rosa City of Laguna, considering
customers of the supermarkets in the city of Santa Rosa as the respondents of the
study.
2. There were no studies yet conducted about the service quality and customer
satisfactions at Puregold Balibago in Santa Rosa City of Laguna, considering the
supermarkets as a place of investigation.
3. There were a few conducted studies which also focused on the subjects of the
research which are the said variables in the city of Santa Rosa, Laguna
In view of the gaps identified, the study determined service quality and customer’s
satisfactions in Puregold Balibago of Santa Rosa, Laguna Philippines.
CHAPTER III
RESEARCH METHODOLOGY
This section encompasses the research methodology adopted with the aim of establishing
perceptions of service quality and customer satisfactions among shoppers of selected
supermarkets in Santa Rosa City of Laguna. It comprises of the study design, source of data,
study of population, instrumentation and validation, evaluating and scoring, data gathering
procedure, and statistical treatment of data.
Research Design
This study aimed at determining the Service Quality and Customer Satisfaction of Selected
Supermarkets in Santa Rosa City of Laguna, Philippines. This study utilized the quantitative research, it
existing and potential customers using sampling methods and sending out online surveys, online polls,
questionnaires, and the results of which can be depicted in the form of numerical. After careful
understanding of these numbers to predict the future of a product or service and make changes
accordingly. Quantitative outcome research is mostly conducted in the social sciences using the statistical
methods used above to collect quantitative data from the research study. In this research method,
researchers and statisticians deploy mathematical frameworks and theories that pertain to the quantity
under question. Quantitative research templates are objective, elaborate, and many times, even
investigational. The results achieved from this research method are logical, statistical, and unbiased. Data
collection happened using a structured method and conducted on larger samples that represent the entire
population.
Source of Data
The study will utilize two sources of data namely; primary and secondary sources. The
primary data were collected by utilizing questionnaire surveys on natural customers of Puregold
Balibago in Santa Rosa City. The secondary sources of data were the articles, books, internet,
journals, and scholarly works that is connected with this study.
This study aims to know the Service Quality and Customer satisfaction in Puregold
Balibago at Santa Rosa, Laguna. The respondents of the study were fifty (50). Random sampling
technique was used in the study. According to Gay and Delhi (1992) (in Hill, 2012), the number
of respondents acceptable for a study depends upon the type of research involve. The researchers
wanted to choose 50 as the respondents of the study so as to make the study more durable.
To determine the level of Level Service Quality and the degree Customers’ Level of
Satisfaction in Puregold Balibago in Santa Rosa City, the following measures will be used:
The survey questionnaire will be considered as the most appropriate data gathering
instrument for this descriptive research study. The prepared questionnaire will be presented to the
adviser for revision and identifying points to improve in the questionnaire. After the approval, the
researcher secured permission from the concerned officials of Puregold Balibago in the city of
Santa Rosa, Laguna and Ms. Madelene Navallo the Dean of the College Institution. Afterwards,
the researcher informed the concerned regarding the distribution of the instrument.
The researcher is going to visit and ask the respondents to accomplish the survey
questionnaire. The respondents are assured of their privacy and confidentiality of information
about their identities. The questionnaire is completed voluntarily and returned by the respondents
to the researcher. The questionnaire will then be collected, organized, presented, analyze and
interpreted.
Statistical Treatment Data
1. Weighted Mean, will be used to determine the level of satisfaction of the customer in
Puregold Balibago in the City of Santa Rosa, Laguna.
This chapter deals with the gathered data that which were analyzed and interpreted for the
better understanding of the study. The framework of the analysis and interpretation is guided by
the problems in Chapter 1.
Table 1
Weighted Rankin
Indicators Interpretation
Mean g
As presented in Table 3, as seen in Table 3, indicators 2 and 5 which state “They provide
discounts to Senior Citizens and PWD” and “This supermarket provides receipt and gives exact
change” with a weighted mean of 1.36 (Rank 1) interpreted as “Very High”; indicator 3 which
state “Their product are based on the SRP that is suggested by the DTI” with a weighted mean
of 1.44 (Rank 2) interpreted as “Very High”; indicator 1 which state “The product choices in the
supermarkets are fresh and quality” with a weighted mean of 1.58 (Rank 3) interpreted as
“High”.
On the other hand, indicator 4 which states “They assure to exchange every product that
is defective” with a weighted mean of 1.66 (Rank 4) interpreted as “High”.
To sum up, an average weighted mean of 1.48 revealed that the service quality of
Puregold Balibago as rated by the customers in terms of assurance was very high. This means
that they provide discounts to Senior Citizens and PWD and they provide receipt and gives exact
change.
The summary of findings supports the study of Abdulrahman Saad Aldawood and Asia
AL-Otaibi (2019) quality assurance practice impact on customers’ satisfaction as a case study in
International Islamic University Malaysia (IIUM) was studied. The aim was to ensure that
IIUM’s is able to achieve and maintain quality assurance standards. It was accomplished by
monitoring and evaluating various aspects of representative projects, services, and facilities to
ensure application of quality standards. Majority of respondents were satisfied with information
regarding their studies, staff assistance, and effective communication. In general, quality
satisfaction was evident which caused work life balance to be evident in collected data.
Table 4
Service Quality of Puregold Balibago as Rated by Customers in terms of Empathy
As presented in Table 4, as seen in Table 4, indicator 1 which states “The operating hours
of this supermarket is convenient to me” with a weighted mean of 1.44 (Rank1) interpreted as
“Very High” ; indicator 5 which states “This supermarket understand the needs of its customers”
with a weighted mean of 1.48 (Rank 2) interpreted as “Very High”; indicator 2 which states
“Employees in this supermarket help customers with packing and pushing the trolleys to the
parking lot” with a weighted mean of 1.6 (Rank 3) interpreted as “High”.
On the other hand, indicator 4 which states “The salesperson or employees of this
supermarket gives individualized attention to their customers” with a weighted mean of 1.66
(Rank 4) interpreted as “High”; indicator 3 which states “Salesperson or retailer remains healthy
and friendly relation with me” with a weighted mean of 1.68 (Rank 5) interpreted as “High”.
To sum up, an average weighted mean of 1.572 revealed that the service quality of
Puregold Balibago as rated by the customers in terms of empathy was high. This means that The
operating hours of this supermarket is convenient to the customers.
The summary of findings support the study of Waseem Bahadur(2018) which posits that as a
well-thought-out notion in the relationship marketing literature, empathy is considered as a
significant variable for individual consideration among persons (Jones & Shandiz, 2015; Lee et
al., 2011; Markovic et al., 2015). Particularly in the literature concerning service, empathy is
regarded as an essential element for fruitful employee and customer communications that
commonly lead to altruistic motivation and pro-social and altruistic behavior (Aksoy, 2013;
Daniels et al., 2014; Itani & Inyang, 2015). Empathy is defined as “a person’s ability to sense
another’s thoughts, feelings, and experiences, to share other’s emotional experience, and to react
to the observed experiences of another person”
Table 5
Service Quality of Puregold Balibago as Rated by Customers in terms of Tangible
Weighted Rankin
Indicators Interpretation
Mean g
1. The supermarket has a modern layout and equipment of
1.64 High (Agree) 4
high standards.
2. Employees are formally dressed and presentable. Very High
1.4 (Strongly 1
Agree)
3. This supermarket has a very appealing ambience. 1.76 High (Agree) 5
4. The items in this supermarket are easy to find. 1.52 High (Agree) 2
5. There are display boards with directions to find my
1.62 High (Agree) 3
product.
Average Weighted Mean 1.588 High (Agree)
As presented in Table 5, as seen in Table 5, indicator 2 which states “Employees are formally
dressed and presentable” with a weighted mean of 1.4 (Rank 1) interpreted as “Very High”; indicator 4
which states “The items in this supermarket are easy to find” with a weighted mean of 1.52 (Rank 2)
interpreted as “High”; indicator 5 which states “There are display boards with directions to find my
product” with a weighted mean of 1.62 (Rank 3) interpreted as “High”.
On the other hand, indicator 1 which states “The supermarket has a modern layout and equipment
of high standards” with a weighted mean of 1.64 (Rank 4) interpreted as “High”; indicator 3 which states
“This supermarket has a very appealing ambience” with a weighted mean of 1.76 (Rank 5) interpreted as
“High”.
To sum up, an average weighted mean of 1.588 revealed that the service quality of
Puregold Balibago as rated by the customers in terms of tangible was high. This means that the
employees of this supermarket are formally dressed and presentable.
The summary of findings supports the study of Utid Tamwatin(2015) which states that Achieving success
in the hospitality industry has been linked to customer loyalty and satisfaction through higher quality of
services provided to the customers. However, support for the effect of tangible and inta All the
hypotheses were proven and the findings confirm that tangibles and intangible services influence
customer satisfaction significantly and all of these jointly influence customer loyalty. ngible service
quality on customer satisfaction and loyalty in Thai hotels is scant.
Table 6
As presented in Table 6, the service quality of Puregold Balibago as rated of customers in terms
of assurance with a weighted mean of 1.48 (Rank1) interpreted as “Very High”; empathy got 1.572
weighted mean (Rank 2) interpreted as “High”; tangible got 1.588 weighted mean (Rank 3) interpreted as
“High”; reliability got 1.694 weighted mean (Ran 4) interpreted as “High” and responsiveness got a
weighted mean od 1.652 (Rank 5) interpreted as “High”. Overall weighted mean for the service quality of
Puregold Balibago as rated of customer was 1.5792 interpreted as “High”
Table 7
Customers’ Level of Satisfaction in Puregold BalibagoAs Rated by Customers
On the other hand indicator 4 which states “I am satisfied with employees’ knowledge about a particular
shopping situation” with a weighted mean of 1.76 (Rank 7) interpreted as “High”; indicator 1 which state
“I am satisfied with this supermarket’s parking area” with a weighted mean of 1.84 (Rank 8) interpreted
as “High”; indicator 6 which state “I am satisfied with this supermarket’s parking area” with a weighted
mean of 1.9 (Rank 9) interpreted as “High”.
To sum up, an average weighted mean of 1.704 revealed that the service quality of Puregold
Balibago as rated by the customers in terms of customer satisfaction was high. This means that generally
the customers of Puregold Balibago are satisfied.
The summary of findings support the study of Kabu Khadka & Soniya Maharjan(2017) which
posits that every business organization`s success depends on the satisfaction of the customers. Whenever
a business is about to start, customers always come “first” and then the profit. Those companies that are
succeeding to satisfy the customers fully will remain in the top position in a market. Today’s business
company has known that customer satisfaction is the key component for the success of the business and at
the same time it plays a vital role to expand the market value. In general, customers are those people who
buy goods and services from the market or business that meet their needs and wants. Customers purchase
products to meet their expectations in terms of money. Therefore, companies should determine their
pricing with the quality of the product that attracts the customer and maintains the long-term affiliation.
3. Relationship Between The Service Quality In Puregold Balibago In The City Of Santa Rosa
Table 8
Relationship Between The Service Quality In Puregold Balibago In The City Of Santa Rosa And
Computed r
Indicator Interpretation of r p-value Decision Verbal Interpretation of Decision
value
Moderate Positive Reject Null There is a significant relationship between the
Reliability 0.613187037 0.000003
Correlation Hypothesis service quality and their level of satisfaction
Moderate Positive Reject Null There is a significant relationship between the
Responsiveness 0.563931394 0.000025
Correlation Hypothesis service quality and their level of satisfaction
Low Positive Reject Null There is a significant relationship between the
Assurance 0.473125623 0.000597
Correlation Hypothesis service quality and their level of satisfaction
Moderate Positive Reject Null There is a significant relationship between the
Empathy 0.623403375 0.000002
Correlation Hypothesis service quality and their level of satisfaction
High Positive Reject Null There is a significant relationship between the
Tangible 0.71087834 0.000001
Correlation Hypothesis service quality and their level of satisfaction
0.01 level of significance
As shown in the table 8, for the relationship between the service quality in Puregold Balibago in
the city of Santa Rosa and their level of satisfaction in terms of reliability, responsiveness, assurance,
empathy and tangible, Computed value of r values 0.613, 0.563, 0.473, 0.623, and 0.710 were obtained.
All p-values obtained were lower than the 0.01 level of significance which showed that there is a
significant relationship between the service quality and customer satisfaction of Puregold Balibago in
terms of reliability, responsiveness, assurance, empathy, and tangible. The higher the service quality of a
supermarket, the higher is the customer’s level of satisfaction of Puregold Balibago in the City of Santa
Rosa Laguna.
CHAPTER V
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter presented the summary, findings, and conclusions taken from the results of the study.
It also provides recommendations drawn from the conclusions which are deemed important.
This study aimed to determine the relationship between the service quality and customer
satisfaction of Puregold Balibago in the City of Santa Rosa Laguna. The researchers of this study used
the gap analysis to determine perceptions of quality of service and customer satisfaction in Puregold
Balibago in Santa Rosa City of Laguna. However, customer satisfaction is defined as a measurement that
determines how happy customers are with a company’s products, services, and capabilities. Customer
satisfaction information, including surveys and ratings, can help a company determine how to best
satisfaction of Puregold Balibago in the City of Santa Rosa Laguna, this sought answers to the following
sub-problems;
1. What is the service quality in Puregold Balibago in the City of Santa Rosa,
Laguna in terms of?
1.1 Tangible
1.2 Reliability
1.3 Responsiveness
1.4 Assurance
1.5 Empathy
2.1 Tangible
2.2 Reliability
2.3 Responsiveness
2.4 Assurance
2.5 Empathy
The data were analyzed and the following were formulated in accordance with the specific
The findings revealed that an average weighted mean of 1.604 revealed that the service quality
rated by customers in terms of reliability was high. With an average weighted mean of 1.652 revealed that
the service quality as rated by the customers in terms of responsiveness was high. With an average
weighted mean of 1.48 revealed that the service quality as rated by the customers in terms of assurance
was very high. The service quality of Puregold Balibago with an average weighted mean of 1.572
revealed that the service quality of as rated by the customers in terms of empathy was high. And with an
average weighted mean of 1.588 revealed that the service quality of as rated by the customers in terms of
The findings showed that an average weighted mean of 1.704 revealed that the service quality of
Puregold Balibago as rated by the customers in terms of customer satisfaction was high. This means that
3. Relationship Between The Service Quality In Puregold Balibago In The City Of Santa Rosa
The findings of this study revealed that the relationship the service quality in Puregold Balibago
in terms of reliability, responsiveness, assurance, empathy, and tangible and their level of satisfaction.
Computed value of r values 0.613, 0.563, 0.473, 0.623, and 0.710 were obtained. All p-values obtained
were lower than the 0.01 level of significance which showed that there is a significant relationship
between the service quality and customer satisfaction of Puregold Balibago in terms of reliability,
responsiveness, assurance, empathy, and tangible. The higher the service quality of a supermarket, the
Conclusions
3. The higher the service quality of a supermarket, the higher is the customer’s level of satisfaction.
Recommendations
1. Puregold Balibago should make their billing more convenient with less errors.
2. The customer care/employees of Puregold Balibago should consider their employees to become
4. The employees of Puregold Balibago must improve their healthy and friendly relation with their
customers.
5. Puregold Balibago must consider improving their appealing ambience as for the perspectives of
6. The owner of Puregold Balibago must include provide additional parking lots which can
investigation considering other factors such as modern marketing strategies that can gain the
customer satisfaction and loyalty which are applicable in their present time.
Bibliography
Aggarwal', P. J. (2017). The Effect Percieved Service uality on Customer Satisfaction and
Customer Loyalty in Organised Retail Chains.
Bakator, M. &. (2016). Analysis of Consumer Behavior and Marketing Strategy Improvement.
Cronin Jr, J. (2019). Cronin Jr,Assessing the effects of quality, value, and customer satisfaction
on consumer behavioral intentions in service environments. College of Business,
Tallahassee, FL 32306-1110, USA.: Florida State University.
Dheepa T., &. K. (2015). Customers’ perceived quality of departmental stores; An empirical
investigation. International Journal of Management Research & Review.
Evi Asmayadi, S. H. (2015). The Impact of Srvice Quality and Product Quality towards
Customer Loyalty through Emotionals and Functional Values in Traditional Markets in
Pontianak. Indonesia.
EXPECTATION THEORY. (2015). Springer, Boston, MA: Swamidass P.M. (eds) Encyclopedia of
Production and Manufacturing Management.
Fripp, G. (2018). Fripp, The Marketing Study Guide. Prepared by marketing lecture, designed
for university-level student.
Kibuchi, M. &. (2015). An analysis of challenges facing major supermarkets that emanate from
the changing environment: A case of Kenyan Large cities.
Králová, P. S. (2019). Customer satisfaction, loyalty, knowledge and competitiveness in the food
industry. Economic Research.
Králová, P. S. (2019). Petr Suchánek Customer satisfaction, loyalty, knowledge and
competitiveness in the food industry. Economic Research.
Leninkumar, V. (2017). The Relationship between Customer Satisfaction and. Eastern University,
Sri Lanka: Trincomalee Campus.
Mukhlis Yunus, M. I. (2018). The Role of Customer Satisfaction and Trust as Mediation on the
Influence of Service Quality and Corporate Image to Customer Loyalty.
Owuor, V. &. (2014). Factors affecting customer satisfaction in retail chains in Kenya.
International Journal of Business and Law Research.
Patel, N. (2018). The Benefits and Importance of Customer Satisfaction. How to Treat Customers
and Provide Them a Good Service? Are Customer Satisfaction Surveys Useful? The co-
founder of NP Digital and Subscribers.
Salmon, S. (2017). Effects of Perceived Service Quality on Cutomer Loyalty and Repurchse
Intentions. German National Library.
Tamwatin, U. (2015). The effect of tangible and intangible service quality on customer
satisfaction and customer loyalty: A SEM approach towards a five-star hotel in Thailand.
Global Business Advancement.
Yung-Tai Tang, J. O.-T.-W.-H. (2015). Toward Measure of Chinese hypermarket retail service
quality.
Appendix A: Sample Questionnaire
SURVEY QUESTIONNAIRE
Part I. The service quality of the supermarkets as rated by the customers of the
Supermarket
Directions: Below are the statements about the service quality of the supermarkets as rated by
the customers. Please indicate your agreement by putting a check (/) mark on the box that
corresponds to your honest answer. Use the Scale below as your guide.
Options: 1 = Strongly Agree (SA) 2 = Agree (A) 3 = Disagree (D) 4 = Strongly Disagree (SD)
Indicators SA A D SD
(1) (2) (3) (4)
RELIABILITY
Indicators SA A D SD
(1) (2) (3) (4)
RESPONSIVENESS
Indicators SA A D SD
(1) (2) (3) (4)
ASSURANCE
Indicators SA A D SD
(1) (2) (3) (4)
TANGIBLE
Directions: Below are the statements about the customer satisfaction as rated by the customers.
Please indicate your agreement by putting a check (/) mark on the box that corresponds to your
honest answer. Use the Scale below as your guide.
Options: 1 = Strongly Agree (SA) 2 = Agree (A) 3 = Disagree (D) 4 = Strongly Disagree (SD)
SA A D SD
(1) (2) (3) (4)
1. I am satisfied with this supermarket’s parking area.
Personal Information
Date of Birth: September 23, 2000
Place of Birth: Talaga Proper, Mabini, Batangas
Age: 20 years old
Gender: Female
Height: 4’11”
Weight: 47kg
Civil Status: Single
Religion: Roman Catholic
Citizenship: Filipino
Mother’s name: Sofia Sanchez
Occupation: Government Employee
Father’s name: Edwin Sanchez
Occupation: Jeepney Driver
Educational Attainment
Character References
Rolluque, Naneth
Business Woman
0946-810-6685
Objective Career
To have an active participation on your firm in ways that would enable me to apply my
knowledge and skills and to gain opportunity for professional development and career growth.
PADAYAO, MENLY PESIMO
Address: Blk 46 Lot 53 Phase 1C San Lorenzo
South Brgy. Malitlit, Santa Rosa, Laguna 4026
E-mail: iammenlypadayao@gmail.com
Mobile: 0935-424-0421
Personal Information
Educational Attainment
Character References
Dela Cruz Tongko, Christian
College Professor
Objective Career
To build a career that offers challenge and growth with opportunities where I can enhance my
knowledge as a career person while utilizing my skills and contributing with all my best to the
organization I work for.
Personal Information
Date of Birth: October 7, 1999
Place of Birth: Binan City, Laguna
Age: 21 years old
Gender: Female
Height: 5’4”
Weight: 49kg
Civil Status: Single
Religion: Roman Catholic
Citizenship: Filipino
Mother’s name: Meredith S. Tunay
Occupation: OFW (Secretary)
Educational Attainment
Tertiary : STI College of SantaRosa
Balibago Complex, Santa Rosa City of Laguna
2016 - Present
Objective Career
Personal Information
Date of Birth: November 4, 2000
Place of Birth: Santa Rosa, Laguna
Age: 19
Gender: Male
Height: 6’0”
Weight: 100kg
Civil Status: Single
Religion: Roman Catholic
Citizenship: Filipino
Mother’s name: Amada Solomon
Occupation: Housewife
Father’s name: Nolasco Solomon
Occupation: Driver
Educational Attainment
Character References
Arvin Sanchez
09958975043
Objective Career
To gain more knowledge about life and to have an additional skills to share to every person that I
will work with.