ASSESSMENT ON THE PERCEIVED EFFECTIVENESS OF ADVERTISING

STRATEGIES ON SELECTED CAKESHOPS IN VALENCIA CITY,

BUKIDNON

PAHUNANG, DHONNA BELLE

RADA, CHRISTINE MARIE

QUINTO, PHOEBE JANE

PANTUA, APRIL JANE

A RESEARCH PROPOSAL SUBMITTED TO FACULTY OF OFFICE

ADMINISTRATION DEPARTMENT, COLLEGE OF BUSINESS AND MANAGEMENT,

CENTRAL MINDANAO UNIVERSITY IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE INTERNET RESEARCH BUSINESS SUBJECT

OCTOBERBER 2022
 Republic of the Philippines

CENTRAL MINDANAO UNIVERSITY

University Town, Musuan, Maramag, Bukidnon

College of Business and Management

Department of Office Administration

APPROVAL SHEET

This undergraduate research proposal attached hereby entitled, “ASSESSMENT ON THE

PERCEIVED EFFECTIVENESS OF ADVERTISING STRATEGIES ON SELECTED

CAKE SHOPS IN VALENCIA CITY, BUKIDNON” (Research No. ), prepared and

submitted by CHRISTINE MARIE RADA, PHOEBE JANE QUINTO, DHONNA BELLE

PAHUNANG, and APRIL JANE PANTUA, in partial fulfillment of the requirements for the

degree Bachelor of Science in Office Administration in College of Business and

Management, is hereby accepted.

 ABSTRACT

This study aimed to assess the effectiveness of advertising strategies used by

selected cake shops in Valencia City, Bukidnon to the customers, what advertising

strategies used to determine the level of perceived, and if there are differences of

the customers’ perceived effectiveness according to their age, gender and

educational attainment. A survey is conducted containing questions that are related

to our statement of the problem. A total of 30 respondent who usually purchase

cakes on the selected cakeshops in Valencia City, Bukidnon were surveyed. We

identified the demographic profile of the customers on the selected cake shops in

Valencia City, Bukidnon, determined the level of perceived effectiveness of the

advertising strategies, we found out the promotional marketing strategies contribute

to the sales of the business, and assess the significant difference of the customers’

perceived effectiveness of the selected cake shop’s advertising strategies. In

conclusion, It was determined that: The use of advertising strategies specifically

personal selling is way more effective in increasing the sales, the advertising

strategies that the customers entice to purchase a cakes on selected cake shops in

Valencia City, Bukidnon are the Online Marketing, Traditional Marketing, Sales

Promotion, and Personal Selling, the popularity of the social media platform

influences the customers to purchase and be a loyal customers on that selected

cake shops.
 DEDICATION

The researcher dedicates this achievement to their Parents, who with love and effort have

accompanied them in this process, without hesitating at any moment of seeing their

dreams come true.

To our professors, mentor-professors and administrators in our department that assisted

us with this project. Their excitement and willingness to provide feedback made the

completion of this research an enjoyable experience.

And above all, we would like to dedicate this work to the Almighty Father for unceasing us

with love and mercy. This will never be successful without his providence. To our

professors who are always being there, believes, and strengthen us all these times.
 ACKNOWLEDGMENT

The researchers wish to thank the Local Government Unit of Valencia who was more than

generous with their expertise and precious time. The completion of this study could not

have been possible without the expertise of Prof. Korina Marie T. Cagande, our beloved

Internet Research for Business subject instructor and for allowing to us to conduct this

research of the Cake Shops Customers in Valencia City, Bukidnon. A special thanks to

the panel for sitting and taking the time to read our research proposal.

We would like to acknowledge and thank our college department for allowing us to

conduct this research and providing any assistance requested. Special thanks go to the

faculty of staff from office administration department for their continued support.
 TABLE OF CONTENTS
Title Page............................................................................................................................i

List of Tables......................................................................................................................ii

Approval Sheet .................................................................................................................iii

Abstract ............................................................................................................................iv

Dedication..........................................................................................................................v

Acknowledgement ............................................................................................................vi

Table of Contents ............................................................................................................vii

List of Figure ...................................................................................................................viii

List of Tables ....................................................................................................................ix

INTRODUCTION
Background of the Study...............................................................................................
Statement of the Problem ...............................................................................................
Objectives of the Study...................................................................................................
Significance of the Study................................................................................................
Scope and Delimitation of the Study ..............................................................................
Definition of Terms .........................................................................................................
THEORITICAL FRAMEWOR

Review of Related Literature .......................................................................................

Conceptual Framework.................................................................................................
Research Paradigm ......................................................................................................
Hypotheses of the Study...............................................................................................
METHODOLOGY

Research Design......................................................................................................................
Participants of the Study............................................................................................................
Locale of the Study ...................................................................................................................
Data Gathering Procedure ........................................................................................................
Statistical Technique ................................................................................................................
REFERENCES .............................................................................................................

APPENDICES ..............................................................................................................
 LIST OF FIGURES

Page

Fig. 1.1 Age

Fig. 1.2 Gender

Fig. 1.3 Educational Attainment

Fig. 2.1 Social Media Advertising

Fig. 2.2 Print Advertising

Fig. 2.3 Broadcast Advertising

Fig. 2.4 Word-of-mouth

Fig. 3.2 Overall

 List of Tables
Pages
Table 1. Displays the summary of the demographic profiles of the customers

1.1 Age

1.2 Gender

1.3 Educational Attainment

Table 2. Displays the summary of the Advertising Strategies

2.1 Social Media Advertising

2.2 Print Advertising

2.3 Broadcast Advertising

2.4 word-of-mouth

Table 3. Displays the summary of the significant difference of the customers’ perceived

effectiveness of cake shop’s advertising strategies

3.1 Age

3.2 Gender

3.3 Educational Attainment

 Introduction

In today’s generation, advertising has become a big part of the everyday lives of

millions of people all over the world. Everywhere we look we see around us is

advertisement and people have become more aware and familiar with it. Advertising is a

way of communication to encourage an audience for making purchase decision about a

product or service and conveying information to viewers. It considered as a vital and

essential element for the economic growth of the marketers and businesses (Ryans,

1996). Advertising is any paid form on non-personal presentation and promotion of

ideas, goods and services through mass media such as newspaper, magazines,

television or radio by an identified sponsor (Kotler, P., 2012, p.58).

Nowadays our world has become more competitive when it comes to trade and

businesses. Traders and businessmen want to be number one in the race of

competition so they are ensuring that they have always adapted to any changing

business demands for the growth of their business. The use of advertising influences 90

percent of consumers to make a purchase. It specifically influences 81 percent of

millennials and 57 percent of baby boomers ages 55 and older to buy. In these modern

times there are a lot of ways to buy the product or service such as digital advertising

unlike in the late 80s advertisements it was fairly limited to radio, television, newspaper,

magazine and billboard.

The goal of advertising is to measure how effective it is in the business growth;

however, this effectivity is depended on consumers liking or disliking the advertisement

of product. Having a good and appealing advertisement is likely to influence customers

into purchasing the product. This paper aims to determine which strategies will be most

effective and attracting new customers. This will help business owners to focus on the
on the right factors and achieve more benefits from their advertisement.
 Background of the Study

Valencia City has become the center of various infrastructure improvements for the past

years. Since the arrival of Robinsons Mall plenty of businesses also arose. Meanwhile,

the new Gaisano Mall is in the process of construction also and it will be the second

Mall to ever exist in the province of Bukidnon, specifically in the City of Valencia and

that is the reason why Cafes, Restobars, Resorts and other establishments started to

flourish especially the cake shops in the city.

Pinoys or Kabayans love to celebrate birthdays. This could be one of the biggest

differences of Filipinos from other cultures. For them, birthdays are not just a celebration

of life, and even if they are thousands of miles away from home, it’s all about spending

time with family (Pimentel 2017). In relation to this the reason why cake businesses are

thriving is because Filipinos love to celebrate every occasion and a cake is essential

when it comes to birthdays, it symbolizes the significance of a certain event even in just

a simple way. As Filipinos it has become our tradition that a celebration will not be

complete without the presence of a cake. There are people who truly value some

birthday celebrations, people like these go the extra mile in order for their loved ones to

feel special, not just during birthdays but a cake is also considered as the star of the

show during weddings and anniversaries.

In Valencia City a combination of startup cake businesses and giant cake industries are

present in some of the locations in the city. Other business owners used the strategy of

making their cake shops aesthetically pleasing in the eyes of the customers due to the

Millennials, especially those who love to take pictures. But there are also home-based

cake businesses who have proven their name to the crowd and the way they introduced

their business to the majority is through the taste of their products and through the
presentation of their products. Notice that there are cake designs or ideas that really

caught the attention of the people one example of that is the money cake where there is

a certain amount of money stored inside the cake, and the only way to identify the

amount of money inside is by pulling the happy birthday logo. The trend of the money

cake originated on TikTok, a social media platform that produces videos and skits.

Thus, most of the money cakes that are available are made by home based cake

business and it truly shows that both home and pioneer cake businesses both have an

edge towards each other. Some of them, just like other cake shops in the city, used

some of the social media platforms as a channel of advertisement such as Facebook,

Instagram and Twitter to promote their business. But there are also some shops that do

not use these methods which is why their business is not recognized by the people that

much. Through this we were able to come up with the idea of assessing the

effectiveness of advertising strategies on selected cake shops in Valencia City,

Bukidnon.
 Statement of the Problem

This study aims to determine the perceived effectiveness of advertising strategies

on selected cake shops in Valencia City, Bukidnon. Specifically, it aims to answer the

following questions:

1. What are the demographic profiles of the customers in terms of:

a. Age

b. Gender

c. Educational Attainment?

a. What are the levels of perceived effectiveness of the advertising strategies

in terms of:

b. Social Media Advertising

c. Print Advertising

d. Broadcast Advertising

e. Word-of-Mouth?

2. Is there any significant difference of the customers’ perceived effectiveness of

the cakeshop’s advertising strategies when grouped according to:

a. Age

b. Gender

c. Educational Attainment?
 Objectives of the Study

This study aims to determine the perceived effectiveness of advertising strategies

on selected cake shops in Valencia City, Bukidnon. Specifically, it intends to:

1. identify the demographic profile of the customers in terms of:

d. Age

e. Gender

f. Educational Attainment

2. determine the level of perceived effectiveness of the advertising strategies in

terms of:

f. Social Media Advertising

g. Print Advertising

h. Broadcast Advertising

i. Word-of-Mouth

3. assess the significant difference of the customers’ perceived effectiveness of

the cakeshop’s advertising strategies when grouped according to:

d. Age

e. Gender

f. Educational Attainment
 Significance of the Study

The findings from the study will be beneficial to the following:

To the educators, the findings from this research will be beneficial for the

additional reference of updated information of modern advertising strategies of cake

shops here in Valencia City, Bukidnon.

To the future researchers, the findings of the research will serve as

supplementary knowledge in the area and will also impart important information that will

serve as a learning guide to the researchers for their future references of business like

this.

To the business owners, the findings of this research will serve as a baseline of

information on how modern advertising strategies work. It will also help imparting

information that will help generate the customer wants especially the millennials. This

will also serve as a guide for a business owner not just to improve within the dimension

of their business, but also in the line of technology.

 Scope and Delimitation of the Study

This research study will mainly focus on determining the effects of advertising

strategies on the selected cake shops in Valencia City, Bukidnon. Also, it will determine

the level of effectiveness of advertising strategies on customers’ perception and it will

identify the most effective and appealing advertising strategies to the customers. This

study will be conducted in Valencia City, Bukidnon.

 Definition of Terms

The following terms are defined theoretically and operationally in accordance

with how they are used in this study.

Advertising Strategy is an action designed to increase sales of certain products

or services, attract new customers, and invite existing ones to make multiple purchases.

Broadcast Advertising is the advertising of services or products that out of

home mediums to reach audiences such as T.V, radio, billboards, etc.

Cake Shops is the English culture equivalent to a French patisserie that expert

in specializing cakes, it may also sell equipment and supplies for home cake baking,

especially for cake decorating, but not all do this and another common but not universal

sideline is special orders such as wedding cakes and elaborate birthday cakes.

Demographics are statistics that describe the population and their

characteristics, it is the study of a population-based on factors such as age, race, sex,

and etc.

Print Advertising is a common form of advertising that captures an audience’s

attention when they read particular publications that uses printed media such as

newspaper, magazines, and billboards to advertise services and attract more customers

to a business.

Social Media Advertising is a type of digital marketing that utilizes social

networks such as Facebook, Twitter, and Instagram to deliver paid ads to the target

audience.

Word-of-Mouth is a tactic used to generate natural discussions about and

recommendations for a product or company.

 THEORITICAL FRAMEWORK

Review of Related Literature

This chapter discusses the relevant literature and studies that the researcher

thought to be relevant to the current study. It also presents a synthesis of related

literature from many citations in order to completely comprehend the researcher and

gain a better understanding of the study.

Advertising appeals aim to influence the way consumers view themselves and

how buying certain products can prove to be beneficial to them. The message conveyed

through advertising appeals, influences the purchasing decisions of consumers. A key

to social media is that the consumer-generated content and consumer-fortified content

can also influence image (Marland, 2008). Marketing is essential to most businesses

and is generally the most important aspect of any business strategy. Many large

companies in South Africa spend millions of rand on marketing their businesses

whereas smaller companies are more reliant on more creative and cost-effective

methods (Godin, 2008). In the extremely competitive world we live in today, social

media marketing has become the new trend and is a trend that is here to stay by means

of using social media such as blogs, community sites, video sharing sites etc. to market

a product or a business.

The popular websites such as Facebook, Twitter, and YouTube have close to

five million visitors daily and thus have to be considered as a very important hub for

marketing (Sarah E Needleman, 2011). Promoting a business via these sites serves as

a very attractive business proposition due to the vast amount of steady traffic every day.

Today's vast technological advances have made social networking to be extremely

successful and social media marketing a very important segment in a business,

because of the sheer number of people that access these sites regularly

Today, smart marketing is no longer just about creating a TV commercial,

magazine ad, or killer radio spot. Consumers are now finding new products and

services on the web thanks to a slew of digital platforms, from mobile advertising and

social media campaigns to influential blog referrals. What does that mean for the small

business owner? Large corporations could once use the deep pockets to dominate

print, television and radio advertising. But increasingly, so-called “traditional media” is

reaching fewer and fewer people as effectively as it used to. Radio disrupted print, and

television disrupted radio. Now digital media is disrupting all of the above (Mehring,

Piletic & Rampton 2022).

According to Solomon (2009), an elementary marketing concept states that

organizations exist to satisfy consumers’ wants and needs. These wants and needs can

only be satisfied by understanding the consumers that will use the product. What, when,

why, where and how a consumer decides to acquire, use and dispose the product are

essential questions for understanding consumer behavior (Hoyer & MacInnis 2007). In

addition to consumers’ personal preferences and needs, there are psychological and

sociological effects that influence the consumers’ purchasing decisions. Consumers

may purchase a product in order to achieve a social status or to belong to a group. They

can make a purchasing decision based on their past experiences or they can

communicate with their environment and learn from other consumers (Janssen & Jager

2001). Marketing has been an effective tool and strategy for increasing the sales of a

product (Jager 2007). For marketing strategies, companies look for segmentation of its

consumers, provision of successful goods and services for each consumer segment

and also employment of right promotional tools and pricing strategies to accomplish the
company’s objectives (Walker, Mullins & Larreche 2008). Marketing mix is the strategic

tool-box that marketers use in order to create a desired response from a set of

predefined consumers (Solomon, Marshall & Stuart 2008).

Marketing strategies aim at increasing the sales of a company, by the

sociological and psychological influences they create on consumers as well. In addition,

each distinct individual is influenced in a different level and each individual has the

ability to influence other people with their purchase experience. Product characteristics

values are also important factors in influencing the buying decision of the consumer.

Modern technologies and new marketing strategies evolve over time. The analysis of

this complex environment may require different modeling methodologies besides the

traditional approach. Agent based modeling (ABM) is a new analytical tool for social

sciences and it enables one to build models where individual entities and their

interactions are directly represented (Gilbert 2008). Advertising effectiveness helps

brands determine if their ads are hitting the mark with their audience, and whether

they’re getting the best returns.

This enables them to measure the strengths, weaknesses and ROI of specific

campaigns, so they can adjust accordingly (Lanteri 2020). For an emerging elderly

social platform, a certain number of users on the platform is a prerequisite for

commercial returns, such as revenue from paid services, revenue from sponsors and

advertising revenue, etc. Therefore, managers of social platforms use a variety of

strategies to promote customer adoption and the participation of social platform, such

as publishing promotional messages in mass media, frequently initiating high quality

interactive services with platform users that cause users to spread word of mouth

(WOM) spontaneously and cultivating opinion leaders to enhance the frequency and

influence of their WOM (Chen 2021).

 Research Paradigm

Independent Dependent

Customer’s Perception

Customers Assessment of Advertising

Strategies
a. Social Media Advertising
b. Print Advertising
c. Broadcasting Advertising
d. Word-of-Mouth
 Hypothesis of the Study

The following hypothesis will be verified and tested at 0.05 level of significant:

Ho1: There is no significant relationship between the customer’s perception and the

advertising strategies used by the customers.

Ho2: There is no significant difference among the four advertising strategies used

by the customers.

Ho3: There is no significant contribution of the advertising strategies to the

perception of the customers.

Ho4: There is no significant difference of the advertising strategies used by the

customers.
 METHODOLOGY

This chapter will explain the methodological approach and will describe the

methods of data gathering and analysis.

Research Design

The research design addresses the goal of this study which is to assess the

perceived effectiveness of the advertising strategies used by the owners of selected

cakeshops in Valencia City, Bukidnon. A descriptive research design, cross–

sectional approach will be applied in this study. Questionnaires were administered

at a given point to a sample population. The descriptive design helped determine

the how, what and where of a phenomenon under investigation (Mugenda &

Mugenda, Research methods: quantitative and qualitative approaches., 2003). The

design was relevant to this study in that it allows for collection of data through

sampling and also provides for description of facts. The questionnaire was the only

tool for collecting the primary data. The researcher administered the questionnaires

on a face-to-face basis to the customers on selected cakeshops in Valencia City,

Bukidnon.
 Locale of the Study

This study will be conducted on selected cake shops in Valencia City,

Bukidnon. A cake shop is an establishment that produces and sells flour-based food

baked in an oven such as Wedding cakes, Custom cakes, and a small variety of bite

sized treats.
 Participants of the Study

The participants of the study will be 30 customers from the selected cake shops in

Valencia City, Bukidnon who are officially permitted by the Department of Trade and

Industry. They are chosen randomly as participants of the study using Likert-Scale type of

survey through hardcopies. The participants selected are in homogenous groupings.

 Research Instrument

The researcher created a survey questionnaire that will address to the

customers of the selected cake shops in Valencia City, Bukidnon. The questionnaire

was the main tool employed in the study, and it will serve as the participants'

response sheet regarding on the Assessment of the Perceived Effectiveness of the

Advertising Strategies.
 Data Gathering Procedure

The researcher will be sending a permit letter addressed to the owners of the

selected cake in Valencia City, Bukidnon to allow the research to be conducted and will be

partnered with their customers as participants of the study in examining their Assessment

of the Perceived Effectiveness of their Advertising Strategies.

The researcher will make survey questionnaire distributed to the respondents and

requested the respondents to answer with all honesty. In this study, since the researcher

goal is to determine the effectiveness of the advertising strategies to the customers. After

the respondents answered the questionnaire, the researcher checked, tallied, interpreted

and analyzed. The result would hopefully be the basis for Assessment on the Perceived

Effectiveness of the Advertising Strategies.

 SURVEY QUESTIONNAIRE
Assessment on the Perceived Effectiveness of Advertising Strategies on selected Cake
Shops in Valencia City, Bukidnon

Please put (✔) check the appropriate box that will specify your answer.

A. Demographic Profile

Name of Customers: (Optional) ______________________

Age:
 (0-20 years old)
 (21-40 years old)
 (41-50 years old)
 (More than 50 years old)

Gender:
 Male
 Female

Educational Attainment:
 Elementary Education
 High School Education
 College Education
 Vocational Training
 Masters
 Doctorate
 Other, please specify:
B. Business Advertising Strategies

Social Media Advertising

1. Which social media networks most catches your attention?

 Facebook  YouTube
 Twitter  TikTok
 Instagram  None

2. Which online paid advertising are you using?

 Facebook  Twitter
 YouTube  Google AdWords
 Instagram  None
 LinkedIn

3. Which email marketing are you using?

 Google Mail  iCloud

 Yahoo  None
 Outlook

4. Who are the Influencers do you hire to advertise your products?

 Micro Influencers (less than 100,000 followers)
 Niche Celebrities (Known people like those who won on some
contest)
 Industry Experts
 None

5. When have you started using this strategy?

 From the start of our business to before Pandemic happened

  During the Onset of Pandemic (2020)
 Just this year

Print Advertising
1. Which use traditional media advertising use in marketing your products?
 Print Media (Magazines, Newspapers, Flyers, Posters)
 Direct Mail
 Radio Advertising (e.g. DXGT Radyo Abante, DXHL Super Bagting,
Radyo Natin Maramag, etc.)
 Telemarketing
 None
2. Which magazines and newspapers you are paying for your marketing?
 Local Newspapers/Magazines
 National Newspapers/Magazines
 None
3. Where do you usually give out your flyers?
 Within the Perimeter Area
 Within Maramag
 Within Bukidnon
 None
4. Where do you usually put up your posters/tarpaulins?
 Within the Perimeter Area
 Within Maramag
 Within Bukidnon
 None

5. When have you started using this strategy?

 From the Start of our business to before Pandemic happened

 During the Onset of Pandemic (2020)
  Just this Year

Sales Promotion

1. Which Sales Promotion Strategy does your business use to promote

your product?
 Free Samples
 Buy-one-get-one
 Discount/ Discount Coupons
 Flash Sale
 Loyalty Points
 None
2. Which method of sales promotions is more effective to motivate your
customers to buy?
 Free Samples
 Buy-one-get-one
 Discount/ Discount Coupons
 Flash Sale
 Loyalty Points
 None
3. When have you started using this strategy?

 From the Start of our business to before Pandemic happened

 During the Onset of Pandemic (2020)
 Just this Year

Personal Selling
1. Which Personal selling strategies are you using to promote your product?
 Indoor Personal Selling (Store Premises)
  Outdoor Personal Selling (Door-to-Door/Outside Store Premises)
 Hiring of Sales Representative
 None

2. When have you started using this strategy?

 From the Start of our business to before Pandemic happened

 During the Onset of Pandemic (2020)
 Just this Year

D. Marketing Strategy effectiveness

Strongly Agree Neutral Disagree Strongly
Agree Disagree
1. Do you think
using online
marketing strategies
were effective?
2 Do you think your
sales increased with
used of this
strategy?
3. Do you think you
gain new customers
using online
marketing
strategies?
4. Do you think
using traditional
media advertising
was effective?
5. Do you think
your sales increased
with the use of this
strategy?
6. Do you think you
gain customers
using traditional
media advertising?
7. Do you think
using sales
promotion method
was effective?
8. Do you think
your sales increased
with use of this
strategy?
9. Do you think you
gain new customers
using Sales
Promotion
Strategies?
10. Do you think
using Personal
Selling method was
effective?
11. Do you think
your sales increased
with the use of this
strategy?
12. Do you think
you gain new
customers using
Personal Selling
Strategies/

13. With all your existing marketing strategies, which do you think is the most effective?
 Online Marketing
 Traditional Marketing
 Sales Promotion
 Personal Selling
 
 Reviews & Testimonials

Product Demons