LOCATION AND CUSTOMER ATTRACTION ON FUNERAL HOMES IN DAVAO CITY

A Thesis Presented to the Faculty

of the College of Business of Administration
St. John Paul II College of Davao
Davao City

In Partial Fulfillment
of the Requirement for the Degree
Bachelor of Business Administration
Major in Marketing Management

MARICEL B. ALIMAN

May 2022

iii
 TABLE OF CONTENTS
TITLE PAGE
i
APRROVAL SHEET
ii
TABLE OF CONTENTS
iii
LIST OF FIGURES
iv
Chapter Page
1 INTRODUCTION
Rationale 1
Research Objective 4
Hypothesis 4
Review of Related Literature 5
Theoretical framework 17
Conceptual Framework 19
Definition of Terms 19
2 METHOD

Research Design 21
Research Respondents 23
Research Locale 24
Research Instrument 24
Data Collection 27
Statistical Tool 27
REFERENCES 29
APPENDICES
A. Survey Questionnaire 33
B. Validation Sheet 34
 Chapter 1

Introduction

Rationale

The funeral business is one of uniqueness and extreme challenge. It

has all the components of any other company; however it also forces a higher

level of personal matters. With this being said, a funeral home has customers

that have a demand to be met by their services; this can also be said for your

average grocery store. The difference lies in the personal aspect of dealing with

families during the loss of their family member. The transaction period is more

than just a quick exchange of money for services; people need counseling and

help to prepare for such a life altering event. In fact, people often wonder why

one chooses to go into the funeral business because it such an emotional

draining profession.

The funeral of today is not the same as the funeral of a year ago, ten

years ago, or even fifty or one hundred years ago.The contemporary funeral is

frequently selected from a presentation of what might be loosely referred to as

"rituals" in the style of a cafeteria;in addition to the necessary accessories and

chosen methods of personalization, all with the intention of "celebrating the

uniqueness" of the deceased, (Wobert,2015).

 In this increasingly secular, informal so-called "me generation" with a short

attention span, funeral traditions seem out of date.The term "dignified" was

frequently used by our ancestors to describe a "good" death or funeral, (Cook &

Walter, 2015).

Today, a memorial service that "celebrates" life and fulfills attendees' need

to ensure that they have appropriately represented the deceased is the focus,

(Exley, 2015).

However, providing these options creates a cushion for the evaluation

because the population naturally wants to know their options when making a

decision (Hult, 2018).The client demands to be informed of any potential

opportunities, particularly when the decision affects the final disposition of their

closest friends and family (Canoty, 2017).

In point of fact, this research will be absolutely necessary to raise the

general public's awareness of the funeral process, distinguish between the

various funeral options that are available, and provide an easy-to-understand

explanation of the services that are provided (Abomenar, 2017).According to

Shan (2017), all businesses are motivated to produce a supply of their product

primarily due to customer demand as well as other environmental and unplanned

factors.

According to Wakefield & Blodgett (2019), location can also influence

customer attraction.During the service encounter, the location either increases or

decreases the efficient flow of activities, demonstrating the facilitator role.When it

communicates various roles, behaviors, and relationships to employees and

customers, the physical environment plays a socializing role (Hightower et

al.,,2018).

Notably, the majority of the multivariate studies on location and customer

attraction accessed by the researcher.However, correlation analysis, qualitative

methods, and experimental approaches have been used in the majority of

studies;They have demonstrated a straightforward and positive connection

between customer satisfaction and location (Hayat et al.,2020).The purpose of

this study will now be to investigate the connection between location and

customer attraction to funeral homes.The scenarios described above led the

researcher to investigate and assist in addressing this issue.The goal of this

study is to make funeral homes more appealing to customers.This is very

important, especially for businesses and marketing managers who may play a

significant role in attracting customers in an efficient and effective manner.They

might acquire new marketing techniques that can assist in attracting customers.

Research Objective

This study will seek to answer the following objectives:

1. To describe the level of location of funeral homes in Davao City.

2. To ascertain the level of customer attraction of funeral homes in Davao

City.
 3. To determine the significant relationship between location and customer

attraction of funeral homes in Davao City.

4. To test the significant influence of location on customer attraction of funeral

homes in Davao City

Hypothesis

The following null hypotheses were tested at 0.05 level of significance set in

this study.

1. There is no significant relationship between location and customer

attraction.

2. Location is not a good predictor of customer attraction.

Review of Related Literature

Readings from linked literature, various books, journals, articles, and the

internet of various writers relevant to the current study effort are presented in this

area. The researcher's study highlights on the location and customer attraction

towards funeral homes.

The evolution of the contemporary funeral industry can be aligned with

certain specific changes in professional practice and approach. The history of

one specific mortuary institution, [what is now known as] The Cincinnati College

of Mortuary Science, serves as an effective example of congruent social change

and the evolution of funeral practices. In 2016, the Cincinnati School of

Embalming offered a three-day course in basic chemical-based corpse

preservation. In 2019, instruction was lengthened and took account of advances

in knowledge of anatomy, disinfection, and thanatochemistry. Little changed until

2016, when the name "Cincinnati College of Mortuary Science" was adopted,

along with revised curricula, to convey newly adopted higher academic standards

and the "more complex nature of the profession." Today, as evidence of the

expanded consumer expectations and simultaneous loss of professional

autonomy of funeral directors, the college requires courses in "Pre-Need,"

"Cremation Fundamentals," "Business Law," "Vital Statistics," "Pathogenic

Microbiology" and "Psychology of Grief."

The CCMS website appeals to prospective students by advertising that

the college's "diversity of students results in exposure to a national perspective

on funeral service and to a broad perspective on life. "

The study of Ashwrot and Voogt (2019) describes a destination product

as a bundle of serviced and experiences. Further, Hankinson (2017) argues that

a location is a unique combination of buildings, facilities and venues, which

represent production by a multiplicity of both public and private services and

businesses. Hankinson (2018) notes that when it is time to start marketing a

place, the marketing does not begin from a zero base; it is often begins with a set

of negative or positive attributes gained over a long period of time. As an

example, he mentions that a long history of industrial decline can develop a

strong negative image of a place. Moreover, Warnaby and Davies (2017)

mention that marketing a location often is the responsibility of the public sector.

However, Matson (2018) pushes the importance of the public sector integrating

their marketing with the private sector. Also, Hankinson (2017) supports this and

adds that a certain locale also has to be marketed as a whole, not as several

fragments of a locale. As argued by Hughes (2018), locations have to be

marketed through partnerships, both format and informal, between both private

and public organizations involved in the place product delivery, due to its product

complexity. Blain et al. (2017) coined that it is difficult for a destination to assure

quality because of the variance of products and services a given visitor

experiences within a destination.

Additionally, Morgan et al. (2017) summarize the three factors of

importance for effective branding of a destination. They claim that the selling

proposition has to be sustainable, believable, and relevant. Research conducted

by Blain et al. (2018) shows that the most dominant theme among markets when

defining location branding is image. According to Leisen (2019), a location’s

image is crucial for its marketing success. She further states that a visitor is more

likely to choose the destination with the most favorable image over a location

with a less favorable image.

 Considering location-based services from another point of view shows

that the services not only involve opportunities, improvements, and benefits for

societies. When digital technologies receive such spread as LBS has obtained, it

also results in major integrity issues (Petkovic & Jonker, 2017). As mentioned by

Ashouri-Talouki et al. (2019), it is necessary to collect data about the consumers

in order to have the ability to for example customize offers. The data collection is

regulated in an unknown way, therefore, consumer’s sensitive information

together with personal data are likely to end up in unauthorized possession

(Petkovic & Jonker, 2017).

Locations which are trying to reposition themselves need to maintain and

enhance their new image through public relations and working closely with the

media and the educational system (Hankinson, 2018).

Consequently, Fhukad (2017) argues that there are two additional groups,

residents and businesses, to take into consideration when marketing a location.

As cited by Shayne (2019), main targets of locale’s place marketing into the

same three groups; the first target group, visitors, is divided into visitors of the

locale that are there to conduct businesses and regular touristic visitors; the

second target group, residents, is all the residents in the locale, both employed

and unemployed; the third target group businesses, includes all companies and

industries who conduct business in the municipality. Likewise, Regin (2018)

underlines the importance of both attracting new visitors, residents, and

businesses as well as maintaining good tool to use in order to attract new work

force to locale.
 Indeed, a place must market its products in its local or domestic market

and internationally (Lati, 2019). Places, like businesses, face new challenges as

new technology and telecommunications have formed one global economy. At

the same time, the economic gap between rich and poor nations is growing

(Bergutan, 2019). The role of the place marketers will be critical to the success of

the place. The term “leadership” fittingly describes the requirements of the

management in place marketing. The new environmental challenges strongly

influence the possibilities of managing in the competition (Barcleys, 2018).

Places often experience periods of growth followed by periods of decline,

because places are subject to both internal and external forces, and the business

cycles (Casintra, 2018). An attractive place attracts new visitors, residents and

businesses. The process of inward migration of people and resources raises

housing and real estate prices, and strains the infrastructure and social service

budget. The city will typically raise taxes on residents and businesses to pay for

the necessary expansion of transportation, communications, energy and social

resources (Antorto, 2019). Some residents and firms begin to move out of the

city to lower their costs, and, therefore, the tax base is reduced. Besides these

internal forces, places are also vulnerable to external forces like rapid

technological change, global competition and political power shifts.

Such studies provide information regarding the determining factors of new

businesses but not spatially explicit to be used for the implementation of local

plans and policies. For example, Bartik (2019) and Levinson (2018) modeled the

location choice of manufacturing plants across states using a logit model.

 Also, as cited by Lugar and Shetty (2017) and Couglin, Terza, Arromdee

(2019) looked more specifically at foreign firms investing in manufacturing plants

at the state level. Their common finding at the state level is that more existing

manufacturing activity attracts more establishments. The number of MSA level

studies is noticeably smaller compared to the state level. Carlton (2017) and

Glaeser and Kerr (2018) focused only on manufacturing sectors, whereas

Strauss-Kahn and Vives (2017) examined relocation of headquarters for nine

industries. Carlton (2017) highlighted the size of the market as measured by

population, Glaeser and Kerr (2018) emphasized abundant workers in relevant

occupations, and Strauss-Kahn and Vives (2020) found that airport facilities are a

positive, and corporate taxes are a negative, factor in attracting headquarters.

Another county level study approach is modeling location choice of new

establishments across counties within one state, for example, by List and

McHone (2018) in New York, Coughlin and Segev (2020), and Gabe and Bell in

Maine. The studies using smaller than a municipality-level unit of geography are

rare due to data availability, which will be addressed further in the empirical

strategy section. At the neighborhood level, Rammer’s et al. (2018) study of

Berlin suggested that the geographic proximity to knowledge sources, such as

universities and research institutes, plays a significant role in encouraging

innovation in firms.

Customer Attraction
 Customer attraction can be described as the meeting of a set of

parameters that the customers associate with attraction (Sabir et al., 2018). The

attitude an individual, has post-product purchase, an end-users response

towards the product and service at the precise moment of consumption also

depicts customer attraction (Al-Hersh et al., 2019). Customer attraction continues

to play a significant role in the success of every business whether it provides

products or services. A company works at retaining their already existing

customers and also expands its client base through sustained customer

attraction. An organizations customer can therefore be said to be the best agents

for ascertaining the success of a product or service.

Additionally, Thorsten and Alexander (2017) said that the most strategic

factor in a company achieving competitive advantage is found in customer

attraction. Lin and Wu (2017) added to this by linking customer attraction to long-

term customer retention due to the high switching rate associated with

unsatisfied customers (Sabir et al, 2019). Customer attraction can be said to be

influenced by a comparison of what they expect from the product or service and

what they experience as deriving from the consumption of said product or service

(Al-Hersh et al., 2019).

All over the world businesses try to find new and innovating ways to gain

more customers and become more financially successful. One of the most vital

components for a business to become successful is to have content customers.

96% of consumers all over the globe consider service quality to be an important

aspect of them choosing to be loyal to a brand (Willot, 2020). 70% of customers

claim that they are loyal to brands because of their great customer service

(Willot, 2020). 52% of consumers state that they have bought additional products

from a company simply because they previously have experienced great service

quality from that company (Willot, 2020). It is also said that in order to get

attracted customers, the firm must first educate the consumer on how to be

satisfied by the product delivering’s of the organization. This is through educating

the customer in-depth on the products, how available the product is and what the

best customer service looks like (Ferrell & Hartline, 2019). It is also important to

note that customer attraction can be evaluated by the consumers as a total

experience that includes other factors that have little or nothing to do with the

traditional elements of quality and value of the product such as warranties, toll

free numbers or treating customers with respect(Longenecker et al., 2019). The

degree to which a customer is attracted by the products or services offered can

be measured by the way of a directed survey on an organization’s client base.

On the other hand, one of the determinants of customer attraction is

service quality, which is not an easy concept to quantify because it hinges on the

evaluation of the user and the comparison of perception and actual experience

(Sabir et al., 2019). A firm’s customers look to the organization to meet their

needs and wants through the product and services produced.

On the same idea, customer attraction is often the effect of sufficient

service quality, where service quality is defined as the customer’s perception of

the businesses’ long-term service performance (Bateson & Hoffman, 2017). In

the minds of consumers, service quality often includes the quality of the product

and/or the service itself, the demeanor and behavior of the employees, how

willing the business is to be flexible and responsive (Sundbo, 2019). However,

the concept of customer attraction can be defined as a consumer fulfillment

response where consumers experience contentment with the product or service

that they have purchased (Oliver, 2018). Furthermore, some researchers choose

to focus on the complete consumer experience as the basis of customer

attraction instead of only the fulfillment response after the purchase (Gerpott et

al., 2018). More specifically, the complete consumer experience includes factors

such as quality, price, place (location), functions of the product, and personal

benefits gained from the product (Gerpott et al., 2018).

As stated by Harris and Goode (2018) as well as Parasuraman et al.

(2019) argued that a consumer experience is a comprehensive attraction, that is

more permanent, rather than only the transactional-based attraction. Where a

transactional-based attraction can be explained as the attraction achieved from

simply the transaction between the consumer and the company, and

comprehensive attraction as the attraction achieved when all aspects of a

consumer to business relationship are considered.

This is due to the fact that if the entire experience is favorable, customers

are more inclined to repeat the procedure with that company (Hill et al., 2017).

One of the most researched issues in marketing is customer attraction. It is a

primary goal for most companies, and it is frequently a recurring theme in almost
all organizational initiatives (Hill et al., 2017). It's also an old topic that's been

researched for more than 200 years (Hill et al., 2017).On the other hand,

Keiningham et al.(2018) argue that even though consumers might be attracted

with the services and products that are available, that does not necessarily mean

that it will lead to an increase in consumer spending. Furthermore, they also

claim that businesses do not always obtain a positive return on investment if

theyincrease their funds for customer attraction. Instead, the effect of an

increased spending concerning customer attraction often leads to an ROI that is

generally small or sometimes even negative. According to Keiningham et al.,

(2019), their research conducted that what is the most beneficial for a company

in terms of customer attraction is how their consumers rank their customer

satisfaction approaches compared to that of their competitor’s.

Furthermore, customer attraction is one of the most important issues

concerning business organizations of all types. Business organizations try to give

best service to the customers and also look for the reason that can increase the

attraction level(Shayde, 2018). According to Hokinson (2019), these factors

include friendly employees, knowledgeable employees, helpful employees,

accuracy of billing, billing timeliness, competitive pricing, service quality, good

value, billing clarity and quick service.

The consumer's assessment of the place (location), product, or service

features has a substantial impact on customer attractiveness. As a result,

businesses investigate what features and aspects of their services customers

value the most, as well as how those features and attributes are perceived by
customers. Customers typically make trade-offs between services such as

location (location), price level against service quality, or friendliness of

employees versus personalization, according to studies (Zeithaml et al., 2018).

On the other hand, consumer emotions played a significant role with the

product or services attraction (Olui, 2019). When a customer in a happy moment

of life or positive frame of mind that influenced the service experience and feel

good. Alternatively when customers passing through bad mood or negative

feelings they might over react or respond negatively towards the service (Quert,

2017). It is common knowledge that good emotions have a greater impact than

negative emotions. The consumption experience itself may also influence

specific emotions, influencing consumers' interest to the service. (Zeithaml et al.,

2018) Customer attraction is influenced not just by product or service attributes,

but also by other customers' perceptions, experiences, and so on. Family

members' happiness or dissatisfaction, for example, has a significant impact on a

certain service - such as a vacation trip. Friends and family members have been

known to forget about a service or venue after a while (Zeithaml et al. 2019).

This literature of the study can be classified into two categories. The first

section concentrates on the dimension of location, while the second section

measures and develops client attraction. At the customer attraction point, these

two sections were joined together. The first component of this section focuses on

the positive aspects of location and the gaps that exist. The importance of

customer attraction, measuring and determining customer attraction, and what

drives consumer attraction are covered in the second section of this subject. This
section clarifies how location affects client appeal. Improving client attraction

mostly entails closing the gap that occurs in location as a result of customer

expectations when interacting with services in terms of location.

Theoretical Framework

For all companies, the drive to generate a supply of their product comes

mostly from the demand of the customers, along with other environmental and

unplanned motives. Without adequate supply and demand, a company becomes

hindered and unable to achieve full efficiency or ideal production levels.

Accommodating the customer with the best possible product and services

ensures high quality business and customer referrals; this turnover generates

more clients and a higher throughput. In the industry of mortuaries, it is crucial

that the customer feel safe and comfortable because the reasons for business

aren’t typically the most desirable and extremely emotional. Reaching out to the

cliental and making their options more visibly available is a

LOCATION CUSTOMER ATTRACTION
strategy to guarantee satisfied customers and an overall

better business transaction.

Conceptual Framework

INDEPENDENT VARIABLE DEPENDENT

VARIABLE
 Figure 1. The Conceptual Framework of the Study

The study's conceptual framework is depicted in Figure 1.The location,

which is the independent variable, is related to where and how customers buy a

product (Lian, 2018).In contrast, the dependent variable is "customer attraction,"

which is a marketing strategy for attracting customers and clients who are

already interested in purchasing a product or service (Pian, 2019).

Definition of terms

The following terms are defined for the better understanding of the study.

Location. In this study, this refer to where and how customers purchase

one's merchandise and where he or she can purchase goods and services (Lian,

2018).

Consumer Attraction. . In this study, this refers to the process of drawing

interest to a company, product or service using carefully devised techniques and

the goal is to attract potential customers to the way the item has bettered the

seller's own life (Que, 2019).

Funeral Homes. In this study, this refers to an establishment where the

dead are prepared for burial or cremation.

 Chapter 2

METHOD

This chapter presented the methods on how the research is to be done. It

includes the discussion of the used about the techniques of the study. The

method involved research design, research respondents, research locale,

research instruments, data collection and statistical tools.

Research Design

Research design can be considered as the structure of research it is the

glue that holds all of the elements in a research project together, in short it is a

plan of the proposed research work. Research design is defined by different

social scientists in different terms; some of the definitions are as: according to

Jahoda, et al.(2017), it is the arrangement of conditions for the collection and

analysis of data in a manner that aims to combine relevance to the research

purpose with economy and procedure. Research design is the plan, structure

and strategy and investigation concaved so as to obtain ensured to search

question and control variance (Zikmund, 2019). Manheim (2019) says that
research design not only anticipates and specifies the seemingly countless

decisions connected with carrying out data collection, processing and analysis

but it presents a logical basis for these decisions.

This study utilized a quantitative, non-expiremental design employing

descriptive-correlation technique. Quantitative design is the systematic empirical

investigation of observable phenomena via statistical, mathematical or

computational techniques (Given, 2018). Also, quantitative research designs

focus on numeric and unchanging data and detailed, convergent reasoning

rather than divergent reasoning (Brians et al., 2017). Also, in the context of the

study, this study measured quantitatively the location and level of customer

attraction towards funeral homes. Descriptive design was used to gather

information about the status or trend and what was prevailing. Also, it is

concerned with conditions of relationships that existed, practices that prevailed,

beliefs, and processes that are going on (Calderon & Gonzales, 2017). The

descriptive-correlation method, a statistical measure of a relationship between

two or more variables, will be particularly used to indicate how one variable

predict another to measure the level of application.

Moreover, the researcher also employed regression model. It provides a

function that describes the relationship between one or more independent

variables and a response, dependent, or target variable (Felippe, 2018).

Regression analysis is a powerful statistical method that allows the researcher to

examine the relationship between two or more variables of interest (Hannes,

2017). In this context, it is used to determine if the location of independent

variable has the most significant influence towards customer attraction.

Research Respondent

The target population of this study were the selected one hundred (100)

clients of the Saint Peter funeral homes in Davao City. The target population will

not be differentiated by demographic or other characteristics. The sample will be

chosen using simple random sampling technique. This is a type of probability

sampling in which the researcher randomly selects a subset of participants from

a population (Huan, 2018). Each member of the population has an equal chance

of being selected. Data is then collected from as large a percentage as possible

of this random subset.

Research Locale

The study was conducted in one of the known funeral homes in Davao

City Saint Peter Funeral Homes. It is one of the Philippines' most progressive

cities and one of several cities in the Philippines that are independent of any

province. The city serves as the regional centre for Davao Region (Region XI).

As of 2020, the City has a population of 1,825,450 and a total land area of

2,443,61 km2 (943,48 square miles). It is suitable in the conduct of the study for

it has a wide place and one of the busiest locales in downtown area.
Research Instrument

The study will employ the questionnaires adopted from different studies and

will be modified to fit the context of the respondents of this study. The first part is

about the location adopted from the study of Gafoor.

Range of Description Interpretation

means Equivelent
4.50- 5.00 Strongly Agree The measures of location are always
manifested.
3.50- 4.49 Agree The measures of location are oftentimes
manifested.

2.50- 3.49 Moderately Agree The measures of location are fairly

manifested.
1.50- 2.49 Disagree The measures of location are rarely
manifested.
1.00 – 1.49 Strongly Disagree The measures of location are never
manifested.
 The instrument is composed of 17 statements and uses a five point Likert
scale with the following ranges of means:

The second part of the instrument concerns about customer attraction which

is adopted from the study of Cerilles (2019). The questionnaire uses a 5-point

Likert scale and determined based on the following ranges of means:

Scale Description Interpretation

4.50 - 5.00 Strongly Agree The measures of customer attraction

are always manifested.
3.50 - 4.49 Agree The measures of customer attraction
are oftentimes manifested.
2.50 - 3.49 Moderately Agree The measures of customer attraction
are fairly manifested.
1.50 - 2.49 Disagree The measures of customer attraction
are rarely manifested.
1.00 - 1.49 Strongly Disagree The measures of customer attraction
are never manifested.

26

Figure 2. Map of The Republic of The Philippines Showing Davao City

 27

Data Collection

In conducting research, certain procedures will be observed. In doing so,

ethical procedures will be observed too. The method of data collection will

include online survey since COVID 19 situation has been arising and so is the

community quarantine. In order to facilitate the collection of data, the researcher

will first write a letter to the office of the program head of the college of business

administration to ask for permission to conduct the study. Once approved, the

researcher will administer the questionnaire through online. Furthermore, the

researcher will retrieve all the questionnaires they are administered to ensure the

data gathering will be obtained accordingly and automatically directly to the

tabulation. All online data will be gathered and collected by the researchers who

will serve as the facilitator of the process. Participants will be assured of the

confidentiality of the survey and that it will be protected and will stay anonymous,

thus not to be disseminated for public or any requestors used.

Statistical Tool

To address the fundamental objective of the study, the following statistical

tools will be used for data treatment:

Mean and Standard Deviation – This was used to determine the level of

price change and consumer buying behavior in the sphere of rice retailing

businesse
 28

Pearson (r) – This was used to determine the significant relationship

between a price change and consumer buying behavior in the sphere of rice

retailing businesses.

Regression Analysis – This was used to determine the significant

influence of price change on consumer buying behavior.

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