“PROMOTIONAL STRATEGIES AND CUSTOMERS BUYING

DECISIONS OF APPLIANCES CENTER IN GENERAL SANTOS

CITY”

PRESENTED TO

THE FACULTY OF COLLEGE OF BUSINESS EDUCATION

RAMON MAGSAYSAY MEMORIAL COLLEGES
GENERAL SANTOS CITY

IN PARTIAL FULFILMENT OF THE REQUIREMENTS IN

BUSINESS RESEARCH

(BMR)

BY:

OPEÑA, CHERRA MAE B.

FINANCIAL MANAGEMENT STUDENT

SUBMITTED TO

PROF. YASMIN CADIZ

SUBJECT TEACHER
 DECEMBER 2020

Chapter 1

INTRODUCTION

Background of the Study

Promotional strategies are promotions for any products or

services, which is essential for any company. It is because only through

promotions that people would come to know about the product. Only

after about the products, they will consider buying (Hose, 2015).

Every human being is a consumer of different produces. If there

is no consumer, there is no business. Therefore, consumer satisfaction

is very important to every business person. The consumer satisfaction

after purchase depends on the product performance in relation to

his/her expectations (M. Szyndlar, 2021).

Promotional strategies used mass media advertising on

television, radio, billboards, newspapers, magazines, and other vehicles

to promote products and services is a terrific approach to get your

customers' attention. Advertising professionals do in-depth research on

your target demographic and create advertising that particularly target

their problems, promoting your product or service as a solution.

Testimonials from real customers who have had success with your firm

are frequently used in adverts, which further engages your prospects

(A. Ahmed, 2018).

It is observed that satisfaction is a person’s feeling of pressure or

disappointment resulting from a product’s perceived performance

(outcome) in relation to his or her expectations. Consumer satisfaction

is the level of a person’s felt state resulting from comparing a product’s

perceived performance (outcome) in relation to their expectations. This

satisfaction level is a function of the difference between perceived

performance and expectations. If the product’s performance exceeds

expectations, the customer is highly satisfied or delighted. If the

performance matches the expectations, the customer is satisfied. If the

product’s performance falls short of expectations, the customer feels

dissatisfied (P. Kotler, 2008).

The major goal of launching sales promotions is for merchants to

avoid competition by providing appealing sales promotional activities

such as discounts, coupons, vouchers, contests, vacation resorts, and

so on. Sales promotion activity must be framed in such a way that the

product requires it while also attracting customers. Increased price

flexibility, a tarnished quality image and lack of merchandising support

are some of the issues. Customers are confused as they try to choose
 the best products among many of competitors. It's difficult to assess the

sales difference that has resulted from the implementation of a sales

campaign. There are various chances that some items or services will

fail as a result of a sales promotion that reduces earnings. Sales

advertising isn't necessary for well-selling products. Sales promotion is

most effective for slow-moving products as well as new products, as

producers must raise public awareness of their new products or

services. Consumers wait for special offers to be advertised before

purchasing a product. Even for brands with strong brand loyalty, this is

true. Customers wait for promotional discounts on their favorite brands

before making a purchase. As a result, regular sales at market prices

are lost, and profit margins are diminished as a result of seasonal

discounts (Lele et al, 1991).

Theoretical Framework

Despite the various benefits that smart home technologies offer,

they are not widely adopted by mainstream users. Understanding the

expectations of future users is fundamental to facilitate the widespread

adoption of these technologies. With a focus on smart household

appliances, this paper presents mainstream users’ preference for smart

product features, perceived benefits of these features and potential use

cases in which these benefits are prominent, users’ expectations of

smart household appliances as well as differences in the expectations

of different user types, and design recommendations derived from

 synthesizing the results with previous work. Twenty in-depth interviews

were conducted to elicit users’ expectations. Participants comprised

single living individuals, people living with friends or relatives,

housewives and dual income families who represent early adopter and

early majority technology adoption categories. The results indicated that

flexible autonomy and remote control have great potential for facilitating

the widespread use of smart household appliances when they are

combined with the ability to increase users’ competence in household

activities through providing guidance (I. Bostan et al., 2018).

Conceptual Framework

Independent Variable Dependent

Variable

Level of Implementation of

Promotion Strategies in terms

of;

 Advertising Buying Decision

 Personal Selling

 Sales Promotion
 Figure 1. Conceptual Framework

In conceptual framework, the two variables are presented the

dependent variable and independent variables. The dependent

variables show the improved promotional and customers decision, while

the independent variable is the level of implementation of promotional

strategies and length of customers purchase decision.

The conceptual diagram illustrates the research flow. It presents

the dependent variables that initiate the details from the independent

variable which guide to the final work of the research.

As shown, figure 1 on the previous page presents the conceptual

framework of the study. As seen in the figures, there are three

independent variables, the advertising, personal selling and sales

promotion. The dependent variable is the buying decision.

Hypothesis

H0 – There is no significant relationship between promotion

strategies and customers buying decisions

HA - There is a significant relationship between promotion

strategies and customers buying decisions.

Statement of the problem

This study aims to determine the Promotional Strategies and

Customers’ Buying Decision in Appliances Centers in General Santos

City.

This study will answer the following questions:

1.What is the profile of the customers of the customers in terms of:

1.1 Age;

1.2 Gender;

1.3 Status;

1.4 Occupation; and

1.5 Income?

2.What is the level of implementation of promotional strategies in terms

of:

2.1 Advertising

2.2 Personal Selling

2.3 Sales Promotion

3. Is there a significant relationship between the level of implementation

of promotional mix and customers’ buying decision?

4. What is the extent of customers’ buying decision in terms of

4.1 Advertising

4.2 Personal Selling

4.3 Sales Promotion

 5. Among the factors consider, which influences most to customers’

buying decision?

6. Based on the findings of the study, what strategies can be

formulated to improve promotional strategies of the Appliances Center?

Significance of the study

The business of Appliances in a Center is economically

significant since it would provide development, income and job making

the city more progressive.

This study could benefit the following:

Home Appliances Center - the result of this study will aid the

Home Appliances Center in determining how these aspects influence

customer satisfaction so that they may develop a strategy to meet their

needs.

Management – the results of this research could help them

improve the promotion strategy and customers’ buying decision of

Appliance Center and determine the effect of that strategy to the

customers.

Future Researcher - the result of this study will benefits the

future researcher because it will serve as a guide and reference for

them.

Customers – the result of this research will give the information

which may lead to the awareness of the community about the existing
business of Appliances Center. This study will also serve as a reference

material for the future researchers.

Researchers – the result of this could help expand their

knowledge, ideas and also they could use this as a source in gathering

data and information for their studies in the future.

Academe - the result of this study will have a significant impact

on academe. It is the most effective tool for creating, improving, and

working with knowledge and learning. It opens the way for more

discussion and debate.

Scope and Limitation

The effects of promotional methods on customers' purchasing

decisions at a Home Appliance Center in General Santos City were the

focus of this study. Its goal is to figure out how effective promotional

strategies are at influencing customers' buying decisions.

The researcher focused on clients in General Santos City as the

study's subject. Events or situations that occur in a study that are

beyond the researcher's control are referred to as limitations.

Furthermore, the researcher picks customers in General Santos City to

take part in a series of questionnaires. This was only done within

General Santos' city borders. This study has a total of one hundred

participants. It was carried out during the academic year 2020-2021.

Definitions of Terms
 This section provides the terms used in the study with their

corresponding meaning and uses to the study.

Direct selling - entails selling things directly to customers.

Instead, sales take place from home, at work, on the internet, or at

other non-store venues. Distributors who use direct selling avoid using

middlemen in the supply chain and sell straight to customers. Products

are sold online or in a physical store in typical retail settings, while

direct selling relies significantly on salespeople getting in front of

customers in nontraditional venues.

Advertising – Any paid type of communication from a known

sponsor or source that brings attention to ideas, commodities, services,

or the sponsor themselves is referred to as advertising. The majority of

advertising is targeted at groups rather than individuals, and it is

typically broadcast on television, radio, newspapers, and, increasingly,

the Internet.

Sales promotion - A marketing technique in which a company

uses short-term campaigns to generate attention and demand for a

product, service, or other offer is known as sales promotion. In order to

meet a benchmark or objective, sales promotions are used to drive

buying behavior or cause an increase in purchases in the short term.

Although the primary goal of a sales promotion is to increase sales,

there are numerous other advantages to developing a smart sales

promotion strategy with your marketing team.

 Buying Decision – The consumer decision process, also known

as the buyer choice process, aids marketers in determining how

customers progress from learning about a product to making a

purchasing decision. For marketing and sales, understanding the

buyer's buying process is critical. The customer or buyer choice

process will help them to create a marketing strategy that persuades

them to acquire the product or service in order to solve their problem.

Promotional Strategies – a way of interaction between the

company and consumer designed primarily to increase sales often by

attracting new customers.

Conceptual Framework - is the textual or visual depiction of

how variables are supposed to interact. The traits or properties that you

want to investigate are known as variables.

General Santos City- sometimes known as "GenSan," is

located in the Philippines' province of South Cotabato. It is a heavily

developed city in the southern part of South Cotabato, but its most

famous resident is boxer Manny Pacquiao. "The Tuna Capital of the

Philippines," as it is known. There are a lot of media practitioners and

media companies in General Santos.

 Chapter II

REVIEW OF RELATED LITERATURE AND RELATED

STUDIES

This chapter outlines the concepts of Promotion Strategies and

Customers Buying Decisions. The researcher tried to find out the way

to measure the promotion strategy and customers buying decisions of

Appliances Center.

Review of Related Literature

In the present day current society, promoting expect a striking job in

the showcasing of products. Publicizing is a medium through which

correspondence is activated. It tends to be enlightening and enticing;

using the new or broad communications to provoke buyers to purchase

their appliances. Promotions serve to create a top of the mind familiarity

with a brand, which further empowers brand review. So also, brand image

is one of central essentialness to any business substance, and the quality

of a brand empowers an association to effortlessly sell certain items

without noteworthy endeavors required to convince clients dependent on a

few promoting systems. Wherein the specialist contemplated the effect of

promoting on customer purchasing conduct in Sivakasi. In a comparable

setting, in her investigation, the forever Living beautifying agent intends to

know the effect of promoting purchaser purchasing conduct with explicit

reference to the item. Completed the exploration of the effect of various

types of ads and special instruments offered by the appliances center

business on Consumer Purchase conduct. Later on, embraced an

investigation on the effect of Advertisement on purchasing practices of the

costumers inside the Appliances Center in broke down the effect of

notices on buyers purchasing conduct as for the acquisition of customer

durables, for example, in an appliances center such as TV, washing

machine, and many more.

Personal selling is a direct spoken communication between sellers

and potential customers, usually in person but sometimes over telephone.

Personal selling serves as a communication bridge between the

organization and the target audience. It is effective because it permits a

direct two-way communication between buyer and seller. This gives the

organization some much greater opportunities to investigate the needs of

their consumers and a greater flexibility in adjusting their offers and

presentation to meet these needs (Stern et al, 2006).

Advertisement is a paid type of exposure or promotion by a sponsor

that reaches people through traditional media like television, newspapers,

commercial radio ads, magazine mail, outdoor advertising, or digital media

like blogs, websites, and text messages (Ahmed et al, 2013). Advertising,
unlike other forms of information, is a widely acknowledged source of

information among consumers, hence media mix considerations are

critical for advertisers (Shrivastava, 2014). Advertisements in newspapers

are extremely important in the development of a brand influences the

decision to buy (Nayak and Shah, 2015)

Review of Related Studies

Small home appliances, such as coffee machines and food

processors, have a low market penetration in the Philippines. For foreign

firms aiming for the mid- to high-end markets, this presents a huge

opportunity. The increased spending power of Filipino consumers has

boosted sales of premium household appliances such as side-by-side or

French door refrigerators, split-type air conditioners, and large cooking

equipment in recent years. As more young urban families move into

smaller houses, demand for compact and versatile equipment is

increasing. Exporters from Hong Kong may find lucrative prospects in the

Philippines' current small home appliance market. Samsung, for example,

caters to various market groups by supplying ordinary double door

refrigerators (J. Yuen, 2020)

Smart home appliances have been released as a result of the

growth of the internet of things (IoT). For example, all living room

products, such as smart TVs, refrigerators, washers, and smart cooling

and heating systems, have become internet-connected to make people's

life easier. Smart home services capable of integrating and managing

devices have advanced globally in recent years. The smart home service

functions similarly to a personal household that is automated. It has a

system for controlling the house's internal and external aspects, including

lighting, temperature, doors, and windows. Depending on whether a

person is at home and the user's experience and preferences, the smart

home service can control lights, temperature, music, and TV shows

differently (W.M. Kang et al., 2017)

Next to automobiles and electronic computers, household

appliances have been the most popular product for study with the hedonic

regression technique. In addition to the pioneering studies (Burstein,

1961), both (Dhrymes, 1971) and (Triplett et al., 1977) have published

hedonic regression studies of appliance prices, with a heavy emphasis on

refrigerators. In addition to the presence of a previous literature,

appliances are an appealing subject for inclusion in this book, with its

emphasis on quality changes taking the form of changes in operating

efficiency. Energy cost is a large fraction of total operating cost for several

types of appliances, particularly refrigerator-freezers, room air

conditioners, and clothes dryers, and the effect of adjustments for the

value of changes in energy efficiency will be a central focus of the chapter.

As an example, it has been estimated that electrical power accounts for 58

percent of the lifetime cost of owning a refrigerator, purchase cost 36

percent, and servicing costs the remaining 6%.

Chapter III

METHODOLOGY

This chapter sets out various stages that are followed in

completing the study. These stages are the research design, target

population, sampling design data gathering instruments, data gathering

procedures and data analyses.

Research Design

To demonstrate the relationship between two or more variables,

descriptive correlational research was employed. It underlines that this

research design was chosen because the study's goal was to determine

the existence of particular correlations among the research variables,

rather than just collecting and describing data.

To answer the questions of the study, the questionnaire was

developed by the researcher in order to determine and evaluate the

level of the promotion strategies and the scope of customers buying

decision. All the gathered information was used as a foundation in

providing the recommendations and conclusions.

 Survey research was conducted to determine the Promotion

Strategies and Customers Buying Decisions of Appliances Center by

looking at the area of General Santos City.

Promotional Strategies and Customers’ Buying Decision of

Appliances Center in General Santos City

Customers’ Profile Research Methodology

Age Descriptive- Correlational

Gender Locale of the Study

Status General Santos City

Occupation Respondents

Income Customers

Sampling Techniques
Level of Implementation
of Promotional
Purposive Sampling
Strategies of Appliance
Center Research Instrument

Advertising Survey Questionnaire

Personal selling Statistical Tools

Direct Selling Weighted Mean

Sales Promotion Person- Correlational

Improved Promotional Strategies and Customers’ Buying

Decision of Appliances Center
Locale of the Study

The research will take place in General Santos City, sometimes

known as “GenSan” located in the Philippines province of South

Cotabato. A highly urbanized city in southern part of South Cotabato. Its

reffered to as “The Philippines Tuna Capital”. People in this area rely on

appliances, hence the researcher chose this location.

General Santos City is a growing metropolis. Many investors

establish enterprises here, and Home Appliances Center is one

among them. Appliances are widely used in this city since people

rely on them. Advertising, personal selling, direct selling, and sales

promotion are just few of the promotional techniques offered by

Appliances Center in General Santos City. Customers' purchasing

decisions are largely influenced by which effective promotional

methods have piqued their interest.

Respondents of the study

The determinants of how and why people buy has been a topical

matter to many people for many years. This had a stimulus effect on the

development and proliferation of a diversity of consumer typologies.

The purpose of this study was to develop a typology of General Santos

 City consumers in their buying decisions. The study adopted a

quantitative approach in which a structured questionnaire was used to

survey 100 consumers who were selected using an integration of non-

probability convenience and judgement sampling methods. Findings of

this study suggest that retailers should use promotional strategies

which would be more easily understood by consumers, and they should

provide information that assists buyers to make a rational decision in

the buying process.

Sampling Technique

The study made use of Purposive Sampling Technique

considering the Promotional Strategies and Customers’ Buying

Decision of Appliances Center in General Santos City. The purposive

Sampling is a non-probability sample that is based on the

characteristics of a population and the objective of the study. It is also

known as selective, judgment, or subjective sampling. The researcher

found it appropriate to avoid biases in gathering and in presenting the

data.

Sampling method is classified as either probability or

nonprobability. In Probability samples, each member of the population

has a known non-zero probability of being selected. The advantage of

this is that the sampling error can be calculated. Sampling error is the

degree to which a sample might differ from the population. In

 nonprobability sampling, members are selected from the population in

some nonrandom manner. These include judgment sampling, snowball

sampling, convenience sampling and quota sampling.

Research Instrument

Personal selling, advertising, and sales promotion of Home

Appliances in General Santos City were employed by the

researchers in an online survey questionnaire that included

questions about promotional strategies and customers’ purchase

decisions. The respondents were given the opportunity to evaluate

and rate using the questionnaires. It was answered by looking at

the number that was provided as part of the rating.

Data Gathering Procedure

The following procedures were used to collect the data: the

researcher submitted a letter to the management of home appliance

centers requesting permission to conduct the study. The respondents

received a cover letter addressed to the manager along with a survey

questionnaire. The survey questionnaire was completed by the

respondents. The second portion of the questionnaire was used to identify

the respondents' difficulties. The data was counted, evaluated, and

analyzed after the respondents completed the questionnaire.

Statistical treatment

The information from the survey questionnaire was gathered and

totaled. The Weighted Mean and Pearson Product Moment Correlation-

Coefficient tools were employed in the investigation.

The promotional plan was determined using The Weighted Mean.

The weighted average mean of observation data is calculated by dividing

the sum of the services of each observed value, the number of times it

occurs, and any other factor by the total number of observations, which

can assist the researcher in identifying the extremely high and extremely

low rates for each variable.

The Pearson Product Moment Correlational- Coefficient –

shows the linear relationship between the two sets of data. This quantifies

the strength as well as the direction of such relationship.

Rating Response Anchor Interpretation

Scale

5 Strongly Agree (SA) Outstanding

4 Agree (A) Very Satisfactory

3 Moderate Agree (MA) Satisfactory

2 Disagree (D) Fair

1 Strongly disagree (SD) Needs Improvement

Box 1: Promotional Strategy Rating Scale
 4.20 – 5.00 Outstanding presents the company’s total

implementation of the presented Promotional Strategy of Home

Appliances Center in General Santos City.

3.40 – 4.19 Very Satisfactory presents the company’s total

implementation of the presented Promotional Strategy of Home

Appliances Center in General Santos City.

2.60 – 3.39 Satisfactory presents the company’s total

implementation of the presented Promotional Strategy of Home

Appliances Center in General Santos City.

1.80 – 2.59 Fair presents the company’s total implementation of the

presented Promotional Strategy of Home Appliances Center in General

Santos City.

1.00 – 1.79 Need Improvement presents the company’s total

implementation of the presented Promotional Strategy of Home

Appliances Center in General Santos City.

Rating Response Anchor Interpretation

Scale

5 Strongly Agree (SA) Outstanding

4 Agree (A) Very Satisfactory

3 Moderate Agree (MA) Satisfactory

2 Disagree (D) Fair

 1 Strongly disagree (SD) Needs Improvement
Box 2: Customers’ Buying Decision Rating Scale

4.20 – 5.00 Outstanding presents the extent of customers’

buying decision of Home Appliances Center in General Santos City.

3.40 – 4.19 Very Satisfactory presents the extent of

customers’ buying decision of Home Appliances Center in General Santos

City.

2.60 -3.39 Satisfactory presents the extent of customers’

buying decision of Home Appliances Center in General Santos City.

1.80 – 2.59 Fair presents the extent of customers’ buying

decision of Home Appliances Center in General Santos City.

1.00 – 1.79 Need Improvement presents the extent of

customers’ buying decision of Home Appliances Center in General Santos

City.