LEVEL OF CUSTOMER SATISFACTION IN

SELECTED SNACK HOUSE

IN ORMOC CITY

__________________

A Thesis Presented to

The Bachelor of Science in Hospitality Management of

Eastern Visayas State University (EVSU)

Ormoc City, Philippines

__________________

In Partial Fulfillment

Of the requirements for the Degree of

BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

__________________

By:

Cabanag, Janessa Bianca C.

Callao, Cristal Grace D.

Pernito, Checyde A.

Hayag, April Rhea S.

December 2022
APPROVAL SHEETS
 ACKNOWLEDGEMENT

First and foremost, the researcher would like to give gratitude and praise to Lord, the
Almighty. for His gifts that would let the researchers fulfill our research successfully.

The researchers would like to express their deepest and sincerest gratitude to their
research adviser, Bonard B. Torres and Roxy Bandejo in Eastern Visayas State University
(EVSU), appreciates the researchers genuine gratitude for providing them with the opportunity
to support their research and also for their guidance and encouragement throughout the whole
process. we have indeed been particularly impressed by his creativity, passion, truthfulness, and
determination. He told us how to conduct a research and communicate the outcomes in the
easiest and understandable way. Being able to work and learn under his instruction was indeed a
tremendous privilege and an honor. I am incredibly delighted of everything that he has granted
us. We would really like to convey our gratitude to him for his companionship, kindness, and
good sense of humor.

And lastly, the people in our family and research colleague have been much more
significant to us in the development of this endeavor than anyone else. We would like to
acknowledge our parents for their encouragement and devotion with whatever we accomplish.
They are the best precedents to follow.
 CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale of the study

Customer satisfaction is the discrepancy between a consumer's initial expectations of

such a product or service and their real experience with it. Customer satisfaction measures, offer
a meaningful and objective feedback about customers. 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 especially snack house 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, Snack house should measure their level of customer satisfaction in terms of
the quality of the product, ambiance and staff that attracts the customer and maintains the long-
term affiliation.

Customer satisfaction has gained great attention in the literature. A number of previous
studies have been carried out on different types of snack house in order to examine the level of
customer satisfaction preferences and expectations. One of the biggest contemporary challenges
of Snack house service industries is to provide and to maintain the customer satisfaction.
Overwhelming customer demand for quality products and service has in recent years become
increasingly evident to professionals in the snack house services. According to indeed.com
(2019), customer satisfaction determines whether consumers are happy with the products or
services offered to them by the company. Customer satisfaction is directly linked to customer
retention and companies’ sustainability. Measuring customer satisfaction provides data on how a
company will perform in the future while measuring sales indicates the company’s performance
in the past or present. Customer satisfaction has been one of the top tools for a successful
business. Poor service quality increases customer dissatisfaction and the likelihood that
customers dine at a competitor’s and/or become an active champion in persuading others to go
elsewhere (Gilbert et al., 2004). . Hence, it is crucial for service managers to understand how
customers perceive the service they provide, and what components might determine the nature of
the perceived service quality in Snack house. The intensely competitive environment existing in
the restaurant sector makes it vital that firms achieve customer satisfaction in order to survive in
the long term. Obtaining customer satisfaction means that customers repeat the experience
service and that they become an effective and efficient communication resource, at no cost to the
firm.

It is important for the Bachelor of Science in Hospitality Management ( BSHM) student

to be able to interpret and effectively utilize customer satisfaction ratings, it is necessary to us to
understand what determines them as well as know what variables and/or factors relate to them. In
practice, customer satisfaction measurements are designed to tap the underlying global or "net"
satisfaction with a product or service. If this is so, a survey distribution of satisfaction ratings
reflects "true" satisfaction. However, to the extent survey satisfaction ratings are determined in
part by measurement artifacts or the personal characteristics of the surveyed customers, this
suggests caution must be employed when interpreting them or using them in decision making.
Statement of the Problem

This study is designed to determine the level of customer satisfaction in selected snack
house in Ormoc City.

Specifically, it sought to answer the following questions.

1. Profile of the respondents in terms of:

1.1 age;
1.2 gender; and

1.3 educational attainment?

2. Satisfaction of customer in terms of:

2.1 food and beverage;

2.2 ambiance; and

2.3 employee’s performance?

3. Is there a significant relationship between the customer's profile and their level of
satisfaction in terms of Food and beverage, ambiance, and employee’s performance?

4. Based in the result what action can be proposed?

 CONCEPTUAL FRAMEWORK

Food and
Beverage
quality
Physical
Environment
quality
Level of Behaviorial
Customer Intention
Employee’s
Satisfaction
Performance
Quality

Research Hypothesis

Null Hypothesis:

Ho1: There is no significant difference in the level of customer satisfaction in selected snack
house in Ormoc City

Ho2: There is a significant difference in the level of customer satisfaction in selected snack
house in Ormoc City
Significance of the Study

This result of the study would be helpful for the following:

HM Student: This will be a tool that will guide and navigate us in discovering credible, reliable,
and paramount factors that are known as indispensable data for further understanding on the
topic. Being a novice for this kind of topic is challenging for the upcoming hotelier, restaurant
worker, or owner of the restaurant in the future.

Snack house: This study will assist them understand what the potential customer response for
the snack house. Additionally, they will be aware of how should they pleased their customer in
terms of their products and service they receive. Additionally, it serves as a manual on how to
operate a business and what excellent customer service should look like.

Researchers: This enables them to look for strong evidences and responses from the respondent.
It improves their research skills little-by-little.

Future Researchers: This is a big help to future researchers because it serves as their guide in
making their first research.

Staff: The given data would guide the staff to have a deeper understanding the illustration
whether their customer base likes what their service performance or what they are doing.

Management: The result of this research will provide the management with some knowledge
about the high satisfaction leads to greater customer retention, higher lifetime value, and a
stronger brand reputation.

Scope and Delimitations

This main focus of this study is the level of customer satisfaction in Ikea cakes and
snacks.
 This study shall conduct at the Ikea's cakes and snack of 25 Bonifacio St, Ormoc, 6541
Leyte from the month of January 10 to January 25, 2023. A total of one hundred fifty (150)
customers from Ikea cakes and snacks will be the respondents of the study.

Definition of Terms

For clearer understanding of this study, the following terms were defined the concepts or
factors that will be discussed throughout our study.

Snack House- a place where light meals or snacks can be obtained often with a self
service system.

Food and Beverage - means any restaurant, cafeteria, bar/lounge, entertainment, room
service, retail food or beverage operation, continental breakfast, food and beverage concessions
and similar services offered at the the facility. The process of preparing, presenting and serving
of food and beverage to the customers.

Customer Satisfaction - a measurement that determines how happy customers are with a
company's products, services, and capabilities and over all customer expectations. It reflects our
business health by showing how well your products or services resonate with buyers.

Customer Service - the support you offer to your customers both before and after they
buy and use your products or services that helps them have an easy and enjoyable experience
with you.

Staff Service - personnel who assist their superior in carrying out an assigned task.

Physical Environment - it allows the customers to look forward to enjoying themselves

and will most likely prompt them to stay longer than they had intended a feeling or mood
associated with a particular place, person, or thing.

Customer expectations - definition states these are the service standards that customers
anticipate from brands. Their desires shape their service expectations and influence your
business decisions when you design the customer experience. Customer expectations are
decision influencers.

CHAPTER II

REVIEW RELATED LITERATURE

According to Zairi (2000) the feeling of accomplishment of inner desires is called

satisfaction. Customer satisfaction is affecting repurchase goals and behaviors. In addition to this
profit and revenue of the organizations also depend upon customer satisfaction. There is less
literature available that address the customer satisfaction and quality of the services provided by
the organizations, in fast-food restaurants (FFRs) (Qin & Prybutok, 2008). If product or service
fulfils the needs and demand of customer, they will become satisfied and will be converted to
loyal customer and thus will add in customer equity of company. Company profitability is not
only depicted in its balance sheet but it is also measured on basis of its sound customer base and
life time value that customers deliver to company. A principal goal of customer satisfaction
research is to determine, in advance, what will affect the satisfaction of customers-that is, to
identify the biggest customer benefits. The basic objective of satisfying customers is to improve
profitability by expanding the business (by gaining market share, earning customer loyalty,
improving a product’s reputation, selling more to current markets, increasing margins, and other
strategies).

Nowadays an unhappy customer is more likely to tell others about their negative
experience than a happy customer is to share a positive one.  Having a social media platform is
easier to spread the negative or positive feedback than ever before. If a customer has a bad
experience with the snack house, they can broadcast it to millions of people before they’re even
out the door. Prioritizing customer satisfaction and making changes based on negative feedback
can help the snack house business get better reviews—and, in turn, more customers. 

To say that customer satisfaction is important is an understatement. In 2022, it’s a

necessity. According to Gartner (2018), 81% of marketer’s view customer satisfaction as the
main competition area in their industry.

As you see, you can’t underestimate the importance of customer satisfaction. It’s the best
way to secure loyal customers who’ll eventually turn into brand ambassadors. Every company
should treat customer satisfaction as an essential business factor and work on improving it. It
seems self-evident that companies should try to satisfy their customers. Satisfied customers
usually return and buy more, they tell other people about their experiences, and they may well
pay a premium for the privilege of doing business with a supplier they trust. Statistics are
bandied around that suggest that the cost of keeping a customer is only one tenth of winning a
new one. Therefore, when we win a customer, we should hang on to them. Conducting a
customer satisfaction survey is a good way to start measuring where you stand in terms of
customer loyalty. To delight your customer is to show that you care about them. No wonder it
brings a smile to their face! The greater your success in delighting your customers and providing
good customer service, the greater success you will enjoy in your business.

The importance of customer satisfaction cannot be overstated. There is a direct

correlation between how happy customers are and how much money a business makes. The
customer satisfaction score (CSAT) affects repeat purchases rates and customer loyalty, word of
mouth referrals, and helps to inform business decisions.

According to InfoQuest (2018), the repeat purchase rate of “totally satisfied” customers is
3 to 10 times higher than that of “somewhat satisfied” customers. Knowing your customer
service ratings provides a far greater chance of understanding what your potential revenue will
be.

In researcher’s opinion, there were a customer satisfaction began with management for
the reason that if a staff is well trained, they can provide good service. They will have a lot of
customers if their service is good and they are honest with them. To achieve their goal, they must
follow the rules of their organization.
 Greenwell et al., (2002) defines customer satisfaction to be the after purchase judgment
related with the purchase decision. Ha and Jang (2010) in their study to examine customer
satisfaction in an ethnic restaurant segment, found customer satisfaction to be the cognitive
assessment of service or food quality and affective elements caused by experience of
consumption Saxena, (2017). In general customer satisfaction can be considered as an overall
level of satisfaction with the product or service experience.

In a restaurant the owner really aims to make the customer satisfied with the services of
their business. One objective of the restaurant owner is to make their customer satisfied not only
with the food and the appearance of the restaurant but most especially the overl all services of
the restaurant.

Customer satisfaction as noted by Tahir., et al (2013), a “customer’s perspective based on

their expectation and then subsequent post purchase experience”. In other words, it is an
evaluation of a product or service quality level in order to assess whether it exceeds or fail to
meet the customer’s expectation. From the perspective of the students on a budget, it is likely
that a good majority would prefer to purchase food and dine in an establishment.

Customers satisfaction define based on the services quality that a business provided. It is
a very important factor in a services to satisfied a customer because it shows that the customers
are really happy and satisfied with their services. It is important to know that the customers meet
the expectations that they aim for.

According to Pinheiro., et al (2008), defining quality in services is based on the

expectation of the customers, which can cause different conceptions, since each customer has
their expectations and perceives the quality according to their needs. In a highly competitive
market such as food, managing quality successfully in all its dimensions becomes a decisive
factor to develop a differential that adds value to the service and, at the same time, loyalty to the
customer, through their satisfaction.

Customer satisfaction is one of the most important indicators of consumer purchase

intentions and loyalty. High-standard customer service can win your clients' hearts and make you
recognizable within your target group. Satisfaction is the act of fulfilling a need of a customer
desire, or appetite, or the feeling gained from such fulfillment.
 CHAPTER III

RESEARCH METHODOLOGY

Research Design

This research study uses quantitative type of research to measure the level of customer
satisfaction in Ikea Cakes and Snacks in Ormoc City. An survey is conducted, afterwards a
questionnaire was given to the participant.

Research Environment

The locale of this study is in Ikea Cakes and Snack which is located in 25 Bonifacio
Street of Ormoc City, Leyte. The Ikea Cakes and Snack is a walking distance from terminal and
also it is accessible by land transportation from all points of Ormoc City. In addition, some
customers visit to the Ikea Cakes and Snack since it is close to the school and establishments
where people will pass on their way to terminal.

Research Instrument

Researchers made a questionnaire in gathering data as a research instruments; The

questionnaire is divided into two parts, the first part is the respondent profile and the second part
is composed of question on customer satisfaction in terms of the quality of food and beverage,
Physical environment and the employees’ performance.

Research Respondent
 The respondent of the study is the customer from the month of January 10 till January 25
2023. All of these participants was selected through random sampling. The chosen respondent is
containing of one hundred fifty (150) respondents from selected customer in Ikea cakes &
snacks. Those customer of Ikea cakes & snacks is chosen by the researchers because they are
suitable and applicable to the study.

Data Gathering Procedure

In the day of January 10, 2023 this was the first day of the researchers plan to conduct a
survey in Ikea cakes & snacks. A letter of request to conduct the study was prepared and the
questionnaire checklists are distributed to the participants. The researchers explain to the
respondents the importance of their response to the study. The researchers clarify some terms to
the respondents so that the respondents can answer the questionnaire with full knowledge of their
responsibility as the subject of the study. The researchers requested the respondents to answer
with all honestly. Respondents were given time to respond and then the researchers collected the
survey questionnaire in that day. The researchers will accommodate 10 respondents in everyday
and up until January 25, 2023 with the result of 150 respondents who were participated in a
researcher’s survey.

After collecting all the data, the researchers with the help of the statistician tabulated and
tallied the survey.

Statistical Treatment of the Data

The data to be gathered in this study will be subjected to the following statistical
treatment:

FOR SPECIFIC QUESTION # 1:

The frequency of each response will be determined on the number of the respondents who will
check in the particular item. The Demographic Profile of the respondents will be determined by
using the formula of percentage.

where:
f
%= ×100
N % = Percent

f= Frequency

N= Number of respondent

FOR SPECIFIC QUESTION # 2:

Likert formula was used in order to determine the minimum and the maximum length of
the 5 point scale. The common values for the options starts with “Very dissatisfied” at 1 point
and “Very satisfied” at 5 points. In order to get the mean of the result, the total number of
responses is divided by the number of respondent.

This will be used to determine the assessment of the respondents with regards to the Food
and beverage, ambiance, and staff of the snack house.

X=
∑X Where:
N
X= Mean

∑x= sum of all scores

N= number of cases
 References
Everything you need to know about customer satisfaction. (2019, December 12), Retrieved from
https://www.indeed.com/career-advice/career-development/customer-satisfaction

Gartner. (2018, March 12). Key Findings From the Gartner Customer Experience Survey.
Retrieved from https://www.gartner.com/en/marketing/insights/articles/key-findings-from-the-
gartner-customer-experience-survey

Gilbert, G.R., Veloutsou, C., Goode, M.M.H. and Moutinho, L. (2004), “Measuring customer
satisfaction in the fast food industry: a cross-national approach”, The Journal of Services
Marketing, Vol. 18 No. 5, pp. 371-83.

Pinheiro, f. a.; leite, a. a. m.; oliveira, m. s. a. avaliação da qualidade percebida em um

restaurante temático-típico. revista gerenciais, v.7, n.1, p.53-59, são paulo, 2008.

Qin, H. and Prybutok, V.R. (2008), “Determinants of customer-perceived service quality in fast-
food restaurants and their relationship to customer satisfaction and behavioral intentions”,
Quality Management Journal, Vol. 15 No. 2, pp. 35-50.

Zairi, M. (2000). Managing customer dissatisfaction through effective complaint management

systems. The TQM Magazine, 12(5), 331-335
 APPENDIX I

Curriculum Vitae

Contact #:
Email Address:

PERSONAL INFORMATION
Name : Janessa Bianca C. Cabanag
Age : 21 years old
Sex : Female
Address : Brgy. Danhug Ormoc City
Date of Birth : October 04, 2001
Place of Birth : Ormoc City
Weight : 50 kgs.
Height : 5’7’
Civil Status : Single
Religion : Roman Catholic
Father’s Name : Nilo V. Cabanag Sr.
Mother’s Name : Imelda C. Cabanag
EDUCATIONAL ATTAINMENT
Elementary : San Antonio Elementary School
Secondary : Ipil National High School
Tertiary : Eastern Visayas State University
Course : Bachelor of Science in Hospitality Management

APPENDIX I

Curriculum Vitae

Contact #:
Email Address:callaocristal@gmail.com

PERSONAL INFORMATION
Name : Cristal Grace D. Callao
Age : 20 yrs. old
Sex : Female
Date of Birth : May 04, 2002
Place of Birth : Brgy. Macabug Ormoc City
Weight : 50
Height : 5'9
Civil Status : Single
Religion : Catholic
Father’s Name : Arthur J. Almaden
Mother’s Name : Sally Mae C. Almaden
EDUCATIONAL ATTAINMENT
Elementary : Macabug Elementary School
Secondary : Dr. Geronimo B. Zaldivar Memorial School of Fisheries
Tertiary : Eastern Visayas State University
Course : Bachelor of Science in Hospitality Management

APPENDIX I

Curriculum Vitae

Contact #:
Email Address:

PERSONAL INFORMATION
Name : Checyde A. Pernito
Age : 22 years old
Sex : Female
Date of Birth : May 15, 2000
Place of Birth : Montealerge Kanangga Leyte
Weight : 54 kgs.
Height : 5’3’
Civil Status : Single
Religion : United Penticostal Church
Father’s Name : Julito C. Pernito
Mother’s Name : Gemma M. Andales
EDUCATIONAL ATTAINMENT
Elementary : Montealegre Elementary school
Secondary : New Ormoc City National Highschool
Tertiary : Eastern Visayas State University
Course : Bachelor of Science in Hospitality Management

APPENDIX I

Curriculum Vitae

Contact #: 09855893695
Email Address: aprilrgeahayag257@gmail.com

PERSONAL INFORMATION
Name : April Rhea S. Hayag
Age : 20
Sex : Female
Date of Birth : April 8, 2002
Place of Birth : Sitio Parilla, Brgy. San Vicente, Matag-ob, Leyte
Weight : 47kg
Height : 5'6
Civil Status : Single
Religion : Roman Catholic
Father’s Name : Antonio M. Hayag Jr.
Mother’s Name : Ma. Reylita S. Hayag

EDUCATIONAL ATTAINMENT
Elementary : San Vicente Elementary School
Secondary : Matag-ob National High School
Tertiary : Eastern Visayas State University
Course : Bachelor of Science in Hospitality Management

Survey Sampling Questionnaire

1. Profile of the respondent in terms of:

Age:

15-21yrs.old

22-30yrs.old

31-55yrs.old

56 yrs. old and

above

Gender:

Female

Male

Educational Attainment:

Elementary School graduate

 High School Undergraduate

High School Graduate

College Undergraduate

College Graduate

Masters Degree Graduate

Doctoral Degree

2. Satisfaction of customer in terms of:

Place an "✔️" in the box that most closely describe your dining experience at Ikea Cakes and
Snacks.

The rank scores as follow:

5 4 3 2 1

Highly Satisfied Neither Satisfied nor Dissatisfied Highly

Satisfied Dissatisfied Dissatisfied

A. Food and Beverage 5 4 3 2 1

1. Taste of Food and Beverage

2. The Appearance of Food and Beverage

3. The Temperature of Food and Beverage to be served

4. The quality of Food

5. The Food and Beverage was a good value for the price
B. Ambiance 5 4 3 2 1

1. The cleanliness of the Facility.

2. The place is organized .

3. The area is attractive and spacious .

4. Relaxing well vertillated

5. Background Noise

6. Well-Lighted Venue

C. Staff 5 4 3 2 1

1.

2. Friendliness of the staff

3. Speed of service

4. Well- groomed staff

5. Job Knowledge