CHAPTER 1

INTRODUCTION
Rationale

In order for the ukay-ukay industry to grow and thrive, consumer perception must also
play a significant role (Pednekar, 2013). Consumers compare the product quality,
pricing, and safety features of competing product offerings, which results in decreasing
customer loyalty and negative level of satisfaction. Consumer response to Ukay-ukay
products is crucial, and their decisions to purchase additional clothing show how the
consumer level of satisfaction with the ukay-ukay products (Biana, 2020).

Customer level of satisfaction is a key in creating a long-term relationship with your

customers. If to think back to the dating analogy, going through the sales process is just
like wooing the prospect to turn them into a customer. But keeping a long term
relationship functioning is hard work. It needs to keep delivering value time and time
again (Chambers, 2019). A study by Info Quest found that a totally satisfied customer’
contributes 2.6 times more revenue than a ‘somewhat satisfied customers’.
Furthermore, a ‘totally satisfied customer’ contributes 14 times more revenue than a
‘somewhat dissatisfied customer’. Satisfaction plays a significant role in how much
revenue a customer generates for your business (Lisa, 2017). If companies want to
satisfy the customers demand they must clearly understand the consumer’s
requirement on quality, functionality, denotation and price (fonvielle, 1997). Satisfaction
is the desire of each buyer depends on quality of a product brand and the services
offered also comfortable environment. It deals a huge impact of satisfying the
customer’s desires because the idea of buying to other stall or places is limited and
chances of high profit is possible.

There is a positive correlation between buying habits and customer level of satisfaction.
Satisfied customers are bound to come back if they are impressed by the Ukay-ukay
product. In fact they are bound to spread the word around by telling their friends and
relatives about the particular product or service which has impressed them thus
realization of accumulation of many customers and in the long run customer
satisfaction. Also, Filipinos have unique buying habits which has become a culture that
can be called its own. Generally, Filipino consumers love to buy things which are on
sale and with discounts. These buying habits are very distinct and common to Filipinos
worldwide. Filipino buyers are known for its unique buying routine as a way of life. A
clear manifestation of that is the Filipino consumers’ keen knowledge of the products
and services that are being offered(Dr. Castillo 2018).

Researching on customer satisfaction is an important factor for the Ukay-ukay business

to understand the consumers level of satisfaction about what they need and want.
Pleasurable means that fulfilment increases pleasure or reduces annoyance or anxiety.
Fulfilment is determined by the customers’ expectations. Moreover, if the perceived
performance of the products and services does not meet customer expectations, the
likely result is dissatisfaction. The level of satisfaction or dissatisfaction is reflected from
perceptions and attitudes from previous experiences, and can also influence the
purchase intentions of the customer. Many studies have been shown the relationship
between buying habits and customer level of satisfaction. But still, limited literature has
been focused on the mediating effects of the confirmation of customer expectation on
the relationship between consumer buying habits and customer level satisfaction. This
study aims to measure customer satisfaction based on the service quality with
confirmation of customer expectation.

The purpose of this study is to know the buying habits and level of satisfaction of the
consumer in the ukay-ukay products here in Brgy. Poblacion. These research results
point to a potential interaction effect between price awareness and the relationship
between interest in ukay-ukay products and buying habits. In other words, the
relationship between a consumers interest in ukay-ukay products and their habits to buy
it may be moderated by price awareness. In result to this, the researchers will be able to
recommend to the ukay-ukay owner what would be the better things to do or the
strategies that they should use in order to satisfy the demands of the consumers.