FACTORS AFFECTING CONSUMER’S PREFERENCES IN COURIER SERVICE

PROVIDES IN GENERAL SANTOS CITY

An Undergraduate Thesis
Presented to the Faculty
College of Business and Management
Goldenstate College, General Santos City

______________________________________________________________________

A Partial Fulfillment
Of the Requirements to the Degree
Bachelor of Science in Business Administration
Major in Marketing Management
______________________________________________________________________

Presented to:
MR. ADRIAN S. NICOLAS, MBM
Course Facilitator

By:

Alvarico, Pamela Dalumpines, Rashel Ann B.

Basas, Febbie Maureen B. Paraiso, Eliza P.
Belenson, Jean Krispel Kathe Paquidian, Jonalyn
Cabrera, Christine Jay Seran, Sophia Nicole Y.
Caday, Heeker Villanueva, Princess Kate T.
 APPROVAL SHEET

The undergraduate thesis, entitled “Factors Affecting Consumer’s Preferences on

Courier Services Provides in General Santos City” Christine Jay Cabrera, Heeker
Caday, Rashel Ann Dalumpines, Eliza Paraiso, Jonalyn Paquidian, Sophia Nicole Seran
and Princess Kate Villanueva. In partial fulfillment of the requirements for the degree,
Bachelor of Science in Business Administration in Marketing Management has been
examined and recommended for acceptance and approval for oral examination.

ADRIAN S. NICOLAS, MBM

Course Facilitator
 ACKNOWLEDGEMENT

This research paper became possible with the kind support and help of many
individuals. We would like to extend our sincere gratitude to all of them.

We would like to express our profound gratitude to our mentor Mr. Adrian S. Nicolas for
sharing expertise, knowledge, and support in shaping this work.

To the members of panel, who made scholarly suggestions for this work, we are equally
grateful.

To the respondents who share their time and effort in collaboration for answering the
questionnaires without any hesitations.

To our family, our deepest thanks for all your encouragement, support, and
understanding of our needs to focus.

To colleagues and friends who have shown interest in our progress, have been so
positive, and have lifted our spirits when needed, thank you.

We are grateful to the Almighty Father for giving us good health, wisdom, and sustained
effort to enable us to attain our cherished dreams.

Finally, we would like to thank Goldenstate College for the opportunity and resources
made available. We acknowledge the privileges that have been extended to us.
 CHAPTER 1

RATIONALE AND BACKGROUND

INTRODUCTION

E-commerce’s functioning on the B2C markets depends upon product deliveries

because of its generic specificity. As the consumer’s expectation have expanded
simultaneously due to the growth of e-commerce, this leads to a challenge for a re-tailer
to meet consumer’s requirements while sustaining the profits when developing their
business. The insufficient understanding of online shopper’s preferences and needs for
the logistics services leads to high costs and low efficiency of logistics.

The previous survey indicated that the online shoppers would like to have more control
over delivery, deep understanding of the delivery process, convenient return processes,
and delivery status acknowledgement via new technologies. Furthermore, online
shoppers prefer to have a say over when, where, and how they want their consignments
to be delivered.

Courier services are currently multi-billion-dollar earning industries which help the
wheels of business to turn smoothly.

A courier services is a premium, all-inclusive service which collects and delivers

shipments in the shortest possible time frame, while postal services are generally used
for transporting letters and parcels which can sometimes take some time to arrive at
their destination. A service that allows someone to send a parcel or consignment from
one location to another. They can be booked and paid for online. Senders have the
option to have their parcels collected by a courier or drop their parcel off at a nearby
location to be picked up later by the courier.

Courier services are known for their superior speed and tracking capabilities when
compared with national mailing services. It’s also a more specialized delivery service
that businesses and individuals turn to when they need a package or a document to
reach its destination quickly. While regular mail services can also deliver packages
rapidly, they cannot guarantee same day delivery or overnight delivery.

Courier services are particularly useful for people that sell products online and need a
shipping solution for sending multiple parcels. This can range from online
marketplace sellers, such as Shopee, Lazada, Shein, and food products, to
established local, national, and international online businesses.

Here, in General Santos City, there are lots of courier services option. However, there
are few other courier services options that may contribute but not being discussed in
the research.

.
Objectives of the Study

The goal of this research is to give satisfactory information to the readers.

To be guided, the research objectives of this proposal are:
To discuss the factors that affect the respondent's preferences on courier service
providers.
To determine which courier service providers has a good delivery and consumers
preferable services.
To examine what factors of their chosen courier service excel .

Statement of the Problem

This study aims to investigate Factors Affecting Consumers Preferences on Courier

Service Providers in General Santos City.

Specifically, this study sought answers to the following question:

1. What is the demographic profile.

1.1 Age
1.2 Gender
1.3 Highest Educational Attainment
1.4 Work Profession or Position
1.5 Socio Economic Status

2. What is the preference level of the consumer of the following courier service
procedure.
 1.1 J&T
1.2 LBC
1.3 2GO
1.4 JRS
1.5 Grab Service Hub Gensan
1.6 Maxim Riders
1.7 Toktok Gensan
1.8 AP Cargo
1.9 GoGo Xpress

3. What are the factors affecting the consumer’s preferences on courier service
providers of General Santos City.

1.1 Deliver service fee

1.2 Deliver time span
1.3 Character of the riders
1.4 Handling of the parcel or orders

4. What is the significant relationship on customer's preference in terms of the

following.

1.1 Service Availability

1.2 Service Performance
1.3 Service Satisfaction
Significance of the study

The researchers hopes that this study will be worth conducting and will contribute to the
following:

To the student. This study aimed to demonstrate the level of consumer preference of
courier services provides in General Santos City.

To the parents. This study will give them idea about the level of consumer preferences
of courier in services in General Santos City.

To the Teachers/Professors/Instructors. This study helps the teacher to much more to

know the level of consumer preferences of courier services provides in General Santos
City.

To the Future Researchers. It will serve as a future reference in their future study.

Scope and Delimitation of study

This study is conducted to determine the factors affecting consumer’s preferences

courier services provides in General Santos City. Research has bought merit
contributions to the factors affecting the consumer satisfactions of the quality of delivery
service in General Santos City.
 Conceptual Framework

This Research aims to Investigate the factors affecting consumers preferences on

delivery services providers in General Santos City.

Input Process Output

 Profile of  Survey  To determine the

Respondents factors affecting
 Questionnair
in terms of: the consumer’s
e
a.) Age preferences on
 Interview
b.) Sex Delivery services
 Data
c.) Work/ in General
Gathering
Profession Santos City.
 Preference  Customer’s
level of Satisfaction
consumer on
the courier
service
 CHAPTER 2

Review Related Literature

This chapter present the related literature and studies which have found relevance to
the study.

Foreign Literature

Factors Impacting Consumer Buyer Behaviour It has been established that the
consumer buying behaviour is the outcome of the needs and wants of the consumer
and they purchase to satisfy these needs and wants. Although it sounds simple and
clear, these needs can be various depending on the personal factors such as age,
psychology, and personality. Also, there are some other external factors which are
broad and beyond the control of the consumer. A number of research have been carried
out by academics and scholars on identifying and analyzing those factors affecting the
consumers’ buying behaviour and as a result, various types of factors have been
identified. These factors have been classified into different types and categories in
different ways by different authors. For instance, Wiedemann et al (2007) classified
them into internal and external factor. On the other hand, Winer (2009) divided them
into social, personal, and psychological factors. Despite the fact that they have been
classified into different groups by different authors they are similar in scope and purpose
(Rao, 2007).

There is a wide range of factors that can affect consumer behaviour in different ways.
These factors are divided by Hoyer et al. (2012) into four broad categories: situational,
personal, social, and cultural factors. Situational factors impacting consumer behaviour
may include location, environment, timing and even weather conditions (Hoyer et al.,
2012). In order to benefit from situational factors major retailers, attempt to construct
environment and situations in stores that motivate perspective customers to make
purchase decision. Range of available tools to achieve such an outcome include playing
relaxing music in stores, producing refreshing smells in stores, and placing bread and
milk products in supermarkets towards the opposite end of stores to facilitate movement
of customers throughout the store to make additional purchases etc.

The temporary nature of situational factors is rightly stressed by Batra and Kazmi
(2008). Personal factors, on the other hand, include taste preferences, personal
financial circumstances, and related factors. The impact of personal factors on
consumer decision-making is usually addressed by businesses during market
segmentation, targeting and positioning practices by grouping individuals on the basis of
their personal circumstances along with other criteria, and developing products and
services that accommodate these circumstances in the most effective manner.
According to Hoyer et al. (2012) social factors impacting consumer behaviour arise as a
result of interactions of perspective consumers with others in various levels and
circumstances.

Targeting members of society perceived as opinion leaders usually proves effective

strategy when marketing products and services due to the potential of opinion leaders to
influence behaviour of other members of society as consumers. Lastly, cultural factors
affecting consumer behaviour are related to cross-cultural differences amongst
consumers on local and global scales. Culture can be defined as “the ideas, customs,
and social behaviour of a particular people or society” (Oxford Dictionaries, 2015) and
the tendency of globalization has made it compulsory for cross-cultural differences
amongst consumers to be taken into account when formulating and communicating
marketing messages.

According to Rebekah Richards in Bizfluent, last September 26, 2017. Consumer

preferences describe the reasons for the choices people make when selecting products
and services. Analyzing the factors that determine consumer preferences helps
businesses target their products towards specific consumer groups, develop new
products and identify why some products are more successful than others.

There are five (5) factors affecting consumers preferences: (1) Advertising; (2) Social
Institution; (3) cost; (4) consumer income; (5) available substitutes.

Advertising plays an important role in consumer preference, especially for non-durable

goods such as food or magazines. Advertising informs consumers of available goods
and services and also shapes their impressions of these products. Advertising can also
create demand; for example, a consumer may not have wanted a new cell phone until
he saw flashy new phones on TV.

Social institutions including parents, friends, schools, religion, and television shows
also influence consumers' preferences. For example, kids might want to have the same
toys their schoolmates have, while young adults may purchase the same products their
parents used to buy.

Cost Consumers usually choose to purchase more of a good if the price falls. For
example, a sale or reduced prices may increase consumption of a good. On the other
hand, an increase in price may cause reduced consumption, especially if the good has
available substitutes.

Consumer income Consumers often desire more expensive goods and services when
their income increases. If they suffer a decrease in income, they are more likely to
choose less expensive goods and services. For example, a business selling luxury
goods, such as jewelry, will probably be more successful in a high-income area than a
low-income area.

Available substitutes If a product has several substitutes -- alternative products that

consumers may choose instead a particular brand of product -- consumers will be more
sensitive to changes in price. However, if consumers do not perceive similar products to
be effective substitutes -- for example, consumers who do not think Coke and Pepsi are
equally delicious -- they will be less likely to switch to a substitute based on price. This
concept is called the price elasticity of demand.
Customers use trust as a key determinant in their decision to purchase goods from
online retailers or not (Fortes et al., 2017). Trust can be defined as a conviction,
confidence, sentiment, or expectation regarding a customer's purpose or likely behavior,
according to Wu et al. (2018). Chang et al. (2013) claims that a significant obstacle to
the adoption of e-commerce is a lack of trust. Customers with high overall trust
indicated a stronger intention to engage in online shopping, according to Oliveira et al
(2017).'s measurement of three characteristics of customer trust (competence, integrity,
and benevolence). Research from the past indicates that confidence is positively
impacted by e-service quality (Chiou and Droge, 2006; Cho and Hu, 2009; Rasheed
and Abadi, 2014; Wu et al., 2010, 2018).

Locale Study

According to Reginald Lance E Dones, and Michael N Young, (2020) In light of the
COVID 19 pandemic, this study intends to examine the increase in demand for the top
five courier services offered in the Philippines and to pinpoint the service that customers
prefer. Data collection involved using an online survey. 120 people took part in the
study: 74 women and 46 men. LaLa move, grab express, Ninja van, Angkas, and Tran
sportify were among the top couriers examined. The chosen courier services of each
responder, the frequency of delivery to various age groups, and the prevalence of things
delivered by the particular courier were all evaluated. The frequency with which
participants used courier services prior to and during the pandemic, as well as their
preferred payment option and method, are all evaluated in this study. Data's mean,
percentage, and correlation were determined using descriptive analytics. These results
underline how crucial courier services have been during the COVID-19 outbreak.

(Hans tanto) Online food delivery service (OFDS) has been widely utilized during the
new normal of the COVID-19 pandemic, especially in a developing country such as
Philippines the purpose of this study was to determine factors influencing customer
satisfaction and loyalty in OFDS during the new normal of the COVID-19 pandemic in
Philippines by utilizing the extended theory of planned behavior (TPB) approach. A total
of 253 respondents voluntarily participated and answered 65 questions. Structural
equation modeling (SEM) indicated that hedonic motivation (HM) was found to have the
highest effect on customer satisfaction, followed by price (P), information quality (IQ),
and promotion (PRO). Interestingly, this study found out that usability factors, such as
navigational design (ND) and perceived ease of use (PEOU) were not significant to
customer satisfaction and loyalty in OFDS during the new normal of COVID-19. This
study can be the theoretical foundation that could be very beneficial for OFDS investors,
IT engineers, and even academicians. Finally, this study can be applied and extended
to determine factors influencing customer satisfaction and loyalty (Barry m. Popkin) The
economic determinants of the demand for infant delivery services in the Cebu region of
the Philippines are examined in this article. Although user charges can be a significant
source of revenues to pay for maternal and child health services, important policy
questions are whether charging for such services will significantly deter use, and how
service quality can be improved.

Also, Christian Jay Sesnorio, Henrie Louis P Subido, Carl Louie N Cruz, Meeco B
Manigbas, Cedric F Reprado, Rianina D Borres (2021) The purpose of this study is to
evaluate the various requirements for using the selected same-day delivery couriers,
Grab Delivery, Lalamove, and Angkas. The research itself intends to assist service
users in determining which option among the specified criteria is best. By taking into
account the factors that were scored by the clients, this research will also assist in
identifying the areas they would need to improve. The research attempts to identify the
best same-day delivery courier by assessing them and doing pairwise comparisons for
each criterion while optimizing the use of Analytical Hierarchical Process (AHP). In
order to obtain customer satisfaction for delivery time, rider behavior and attitude,
aesthetics, fees and charges, limitations, and delivery accuracy, the research used a
survey questionnaire. Grab received the highest number of votes in the AHP, Lalamove
received the second-highest number of votes, and Angkas received the lowest number
of votes.

According to Airspeed (optimized and maintained by Sean Si) in 2022, There are many
courier services in the Philippines. Most of which are well known solely because it’s the
way online shops deliver their products. However, this is not the only purpose of courier
services. This industry is incredibly big. Keep in mind that it’s not just online stores, but
the vast majority of other industries make use of this service. Some of them use it on an
individual level, while others incorporate it to their main business schematics. In the
Philippines, courier services have changed the way many people and companies work.
It made deliveries more accessible, and it opened up new opportunities for a lot of
people. Take a look at what exactly courier services bring! Couriers nowadays are able
to abide by the requests of their customers. Often, they can ask for their deliveries to be
delivered at a certain time of day and they would usually deliver. This is with the
condition of requesting the delivery be made ahead of time. Courier services would
usually focus on their one package. With fewer parcels to deliver, couriers can focus on
making sure that your package is delivered quickly, safely, and on-time. Courier
services are better than the traditional mail delivery service because of their speed,
security, and reliability. Using them can benefit businesses and individuals alike by
quickly delivering important documents and other items. If you’re still not sure about
whether or not you should use a courier service, just take a closer look at the following
benefits of using them.
Also, Joefel T. Libo-on, Ph. D (March 2021) Due to the pandemic, people are now more
likely to shop online than in traditional stores, which has increased the demand for
courier services. The goal of this study is to compare the customer satisfaction levels of
Grab and Lalamove services while looking at the four service quality aspects related to
courier services. The sequential sampling technique was used for the investigation.
Using a 5-point Likert scale to measure the variables, the data were gathered online. To
test the four hypotheses that tangibility, reliability, assurance, and responsiveness do
not affect customer satisfaction in courier services and that there is no difference
between the customers' satisfaction of the couriers, an online survey was sent to 370
millennials in Quezon City, Philippines, who have experience using Grab and Lalamove.
Results indicate that the four dimensions have an impact on customers' happiness with
various percentages offered. Additionally, clients are satisfied with Grab's services than
they are with LaLa moves. And given that this study was conducted during the
pandemic, a common issue for clients is that their packages take a long time to arrive
because of a government-imposed neighborhood restriction.

CHAPTER 3

Research Methodology

This chapter represent the research design, sampling design, research locale, research
respondents, statistical instruments, and objectives of the study.

Research Design
The researchers made use of quantitative research using descriptive method. In this
view, the descriptive method was appropriate research design that was employed by
the researchers in the study of research work to find out professions most associated to
Marketing industry as perceived by third year Marketing students.

Sampling Design

The researchers want to find out what age group prefers courier services in Zone 4,
Barangay Bula, General Santos City. The researchers used a quota method that is used
as sampling design. The researchers used these data estimate the prevalence of
courier services among residents in Zone 4, Barangay Bula, General Santos City. It is a
rural village with 300 households and approximately 32,400 residents.

Research Locale

This study was conducted in Zone 4, Brgy. Bula, General Santos City.

Research Respondents

The respondents of the study are the residents of Zone 4, Barangay Bula, General
Santos City. Eighty-five percent (85%) of the Brgy. Bula’s population preferred to
choose courier service providers who will deliver the products they have bought rather
than personally picking it up in the store or market.

Research Instruments
 To collect the needed information of the study, the researchers will use the
adopted survey questionnaires which will be validated by some experts. This
questionnaire focuses the consumer’s preferences on courier services in General
Santos City.

Research Method

In this research the researcher uses a method of gathering and collecting data by
means of questionnaire. It is conducted in order to gather and to collect important
information related to the study.

Data Gathering Procedure

In gathering data for this study, the researcher observed that the systematic
procedure to satisfactorily conduct the study.

1. Prepared questions as basis for accurate data for study.

2. Conduct pre-con for the basis of our question.
3. Distribute questionnaires to the respondents so that we will know what are those
strategies formulation being used.

Data Analysis

In analyzing the data of costumer preferences towards courier service providers

in General Santos City analysis examines data from a survey questionnaire to
determine with actions contribute to satisfied or dissatisfied customers. This can assist
the company in determining how to improve or change its delivery services.
Statistical Treatment

Raw data collection is only one aspect of any experiment; statistical treatment of
the data is necessary to use the data in the right way. For appropriate conclusions to be
drawn, data organization is just as crucial. (Siddharta Kalla, 2009)

1. Percentage A display of data known as a frequency and percentage distribution

shows how many observations are present for each data point or group of data points.
Identifying the total number of observations to be presented and counting the total
number of observations within each data point or grouping of data points are two steps
in the process of creating a frequency and percentage distribution.

Formula: % F/N x 100% is the percentage F is the Frequency N is the total number of
respondents 100 is a constant value

2. Average Weighted Mean A type of average is a weighted mean. Some data points
contribute more weight than others to the final mean, as opposed to each data point
contributing equally. (Andale, 2014)

Formula: x-FX/N X is the weighted mean F is the frequency X is the weight of each item
N is the number of cases

3. Analysis of Variance (ANOVA) An analysis that divides a data set's observed

aggregate variability into two parts: random factors and systematic factors. Random
factors have no statistical effect on the given data set, whereas systematic factors do.