PASSI CITY COLLEGE

City of Passi
SCHOOL OF HOSPITALITY MANAGEMENT

MARKETING CHALLENGES AND STRATEGIES

OF COFFEE SHOPS IN PASSICITY

A Research Paper Presented to the

Faculty of the School of Hospitality Management

Passi City College

City of Passi, Iloilo

In Partial Fulfilment

Of the Requirements for the Degree

Bachelor of Science in Hospitality Management

By

Josie Alexa G. Bautista

Maylen P. Beboso
Elyn Mae C. Hitalia
Marlon A. Launio
Shiela Mae P. Mendoza
Aisa V. Paderogao
Raylen G. Tropico

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SCHOOL OF HOSPITALITY MANAGEMENT

CHAPTER 3

METHODOLOGY

Chapter Three consists of six parts namely: (1) Purpose

of the Study and Research Design, (2) Research Locale, (3)

Respondents, (4) Data-gathering Instruments, (5) Data

Gathering Procedure, and (6) Statistical Data Analysis

Procedure. In this chapter, the research methodology and the

methods that were used by the researcher to collect and

analyze the data are discussed in detail.

Part One, Research Design, describes the research

methodology and the variables in the study.

Part Two, Research Locale, specifies the location as to

where the study will be conducted.

Part Three, Respondents, gives detailed information on

the participants of the study and the sampling method that

will be used in choosing them.

Part Four, Data-gathering Instruments, describes the

data-gathering instruments that will be used. The process on

how the instruments will be constructed is also discussed.

Part Five, Data Gathering Procedure, traces the

procedure of collecting the data.

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Part Six, Statistical Data Analysis Procedures,

describes the process on how the data will be analyzed as

well as the statistical tools that will be be used to answer

the research questions.

Research Design

This study made use of the descriptive method.

Descriptive method of research according to Gay (2007) is

the collection of data in order to test the hypothesis or to

answer questions concerning the current status of the study.

The descriptive study is concerned with the condition or

relationship that exists helps process opinions that are

going on, effects that are evident or trends that are

developing. It is often conducted to get the opinion of a

large group of people about a particular topic or issue.

Descriptive design aims to accurately and

systematically describe a population, situation or

phenomenon. It can answer what, where, when and how

questions, but not why questions (McCombes, 2019).

A descriptive research design can use a wide variety of

research methods to investigate one or more variables.

Unlike in experimental research, the researcher does not

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control or manipulate any of the variables, but only

observes and measures them (McCombes, 2019).

Thus, based on the nature of the study, the descriptive

method is deemed appropriate.

Research Locale

The study will be conducted at various coffee shops

located in Passi City. Passi City is located in the bottom

of Panay Island of Visayas. Passi City is Forty-Five minutes

from Iloilo City and 1hour from Roxas City. It is also

geographically located South of Dumarao, Southeast of

Bingawan, East of Calinog, Northeast of Dueñas, North of San

Enrique, and Southeast of San Rafael (Passi City

Profile,2017).

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Figure 1. Research Locale

Respondents

The respondents of the study will be the twenty (20)

staffs and owners of the different Coffee Shops at Passi

City, Iloilo which were purposively selected depending on

their availability and cooperation and sense of

volunteerism. This study will use purposive sampling.

Researchers use purposive sampling when they want to access

a particular subset of people, as all participants of a

survey are selected because they fit a particular profile

(Purposive Sampling 101, 2023).

Data Gathering Instruments

The data were collected using the 5-point Likert scale

questionnaire. Part I of the questionnaire is the personal

data of the respondents, Part II is the marketing strategies

used by the coffee shops, part III is the impact of

marketing strategies on business performance and Part IV is

the challenges encountered by coffee shop business.

The instrument will be adopted on the study of Claren

(2023).

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The respondents will be asked to check the column that

correspond to their honest assessment as indicated in the

descriptive scale with the corresponding weight: 5–Strongly

Agree, 4 – Agree, 3 – Neutral, 2 – Disagree, and 1 –

Strongly Disagree and; 5- Very high, 4- High, 3- Moderate,

2- Low and 1- Very Low.

Mean interpretation on the level of impact of marketing

challenges and strategies of coffee shops in Passi City:

Mean Level Of Impact

4.20-5.00 Very High
3.40-4.19 High
2.60-3.39 Average
1.80-2.59 Low
1.00-1.79 Very Low
*Descriptive ratings were adapted to the study of

Claren (2023).

For elaboration of the rating, the following were

defined:

Descriptive Rating Description

Strongly Agree This Means that the respondents are

strongly in favor of the idea
conveyed by the item.
Agree This means that the respondents are
in favor of the idea conveyed by
the item.

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Neutral This means the respondents are

unsure of the idea conveyed by the
item.
Disagree This means that the respondents are
not in favor of the idea conveyed
by the item.
Strongly Disagree This means that the respondents are
strongly not in favor of the idea
conveyed by the item.

Descriptive Rating Description

Very High This means that the marketing

strategies of the respondents are
excessively helpful.
High This means that the marketing
strategies of the respondents are
helpful.
Moderate This means that the marketing
strategy of the respondents are
moderately helpful.
Low This means that the marketing
strategies of the respondents are
poor.
Very Low This means that the marketing
strategy of the respondents are
very poor.

Data Gathering Procedure

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The data gathering procedure started upon the approval

of the panel to conduct the data gathering. Letters were

sent to the Human Resource Management (HRM) of different

coffee shops in Passi city to inform them in the conduct

data gathering.

Structured Survey Questionnaire. After the validation

of the testing of instrument, the researchers reproduced

enough number of copies for the desired number of

respondents of the study.

Permission to conduct the study was also taken into

consideration. Once the communication was approved, the

researcher personally administered the research instrument

to the respondent. When all the needed information was

completed, the data were tabulated and analyzed.

Questionnaire is design as per the objective of the

study. With the assistance of a research assistant, the

study used primary data; these were collected through self-

administered questionnaires. The researcher-made were used

to collect data on respondent’s marketing challenges and

strategies in their coffee shops. The questionnaires were

useful tools in collecting the data from the respondents

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because of the need to provide a means of expressing their

views more openly and clearly. These questionnaires were

administered through “drop and pick later” method.

Statistical Data Analysis Procedure

After the needed data were collected, the quantitative

data will be subjected to appropriate statistical analyses

to interpret the results in order to assess the marketing

challenges and strategies of coffee shops among Passi City.

The data that will be gathered will be subjected to

descriptive statistics. According to Trochim (2006),

descriptive statistics were used to describe the basic

features of the data in the study. They provide simple

summaries about the sample measures. Together with simple

graphic analysis, they form the basis of virtually every

quantitative analysis of data. For descriptive analysis of

the data, the researcher utilized mean.

The mean will be used to described extent of the

marketing challenges and strategies of the different coffee

shops in Passi City, Iloilo. It could be used with both

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discrete and continuous data. Mean is equal to the sum of

all the values in the data set divided by the number of

values in the data set. An important property of the mean is

that it includes every value in the data set as part of the

calculation. In addition, the mean is the only measure of

central tendency where the sum of the deviations of each

value from the mean is always zero (Lund and Lund, 2018).

Darrel (1993; in Niles, 2014), on the other hand, defines

mean as the sum of a collection of numbers divided by the

number of numbers in the collection.

Mean will be used to determine the most and least

marketing strategies employed by coffee shops in Passi City,

Iloilo and to pin point their level of competence through

their average monthly income and number of customers per

month.

Standard Deviation. Standard deviation is rarely

calculated by hand. It can, however, be done using the

formula below, where x represents a value in a data set, μ

represents the mean of the data set and N represents the

number of values in the data set (Llola,2018).

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The steps in calculating the standard deviation are as

follows: (1) For each value, find its distance to the mean,

(2)For each value, find the square of this distance, (3)Find

the sum of these squared values, (4)Divide the sum by the

number of values in the data set and, (5)Find the square

root of this (Llola,2018).

The Mann Whitney U test, sometimes called the Mann

Whitney Wilcoxon Test or the Wilcoxon Rank Sum Test, is used

to test whether two samples are likely to derive from the

same population (i.e., that the two populations have the

same shape). Some investigators interpret this test as

comparing the medians between the two populations. Recall

that the parametric test compares the means (H0: μ1=μ2)

between independent groups (LaMorte, 2017).

This test is often performed as a two-sided test and,

thus, the research hypothesis indicates that the populations

are not equal as opposed to specifying directionality. A

one-sided research hypothesis is used if interest lies in

detecting a positive or negative shift in one population as

compared to the other. The procedure for the test involves

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pooling the observations from the two samples into one

combined sample, keeping track of which sample each

observation comes from, and then ranking lowest to highest

from 1 to n1+n2, respectively (LaMorte, 2017).

Mann-Whitney U Test will be used to determine the level

impact of marketing strategies on business performance

when respondence are group into sex.

The Kruskal-Wallis H test (sometimes also called the

"one-way ANOVA on ranks") is a rank-based nonparametric test

that can be used to determine if there are statistically

significant differences between two or more groups of an

independent variable on a continuous or ordinal dependent

variable. It is considered the nonparametric alternative to

the one-way ANOVA, and an extension of the Mann-Whitney U

test to allow the comparison of more than two independent

groups (Lund Research,2018).

Kruskal-Wallis H test will be used to determine the

level impact of marketing strategies on business

performance when respondence are group into number of years

in the coffee shop, position and monthly income.

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Percentage, a percentage is a number or ratio that can

be expressed as a fraction of 100. If we have to calculate

percent of a number, divide the number by the whole and

multiply by 100. Hence, the percentage means, a part per

hundred. The word per cent means per 100 (BYJU’S, 2023).

Frequency, A frequency distribution is a quantitative

data set that shows the number of times categorical

variables occur. They are often used to manage large data

sets with a range of values. Once data is collected and

sorted, frequency distributions can be displayed using

visual tools like pie charts, bar graphs, and histograms, or

plotted on spreadsheets for easy consumption (Master

Class,2023)

Chapter 4

RESULTS AND DISCUSSION

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This chapter presents the analyses and interpretation

of the data in accordance with the objectives, methodology

and statistical tools used in the investigation.

Extent of Challenges Encountered by the Establishment as a

Whole and when grouped as to Sex, Years in Business and

Average Monthly Income

Table 1 revealed the extent of challenges encountered

by the coffee shops in Passi City as a whole and when

grouped according to sex, years in business and average

monthly income. As a whole, the extent of challenges

encountered by the establishment is M = 3.84 which is

“high”. The extent of challenges encountered by male is

“high” with M=3.96 which is higher compare to female with

M=3.78 which is also “high”. Although mean of the extent of

challenges encountered by male is higher compare than

female, both still have the same extent which is high.

Additionally, the extent of challenges encountered by

those who are in business below one year and one year and

above are both “high” with the mean of M = 3.97 and M =

3.74, respectively. Moreover, extent of challenges

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encountered by establishment with an income of below 10,000

is high with M = 3.47; 10,000 – 15, 000 is also high with M

= 3.91; while those with an income of above 15,000 is

average with M = 4.31. Thus, it implies that the lower the

income the higher the extent of challenges that the

establishment encountered.

Table 1: Extent of Challenges Encountered

Group N Mean SD Description
As a Whole 20 3.84 .55 High
Sex
Male 6 3.96 .22 High
Female 14 3.78 .64 High
Years in Business
Below 1 year 8 3.97 .61 High
1 year and above 12 3.74 .51 High
Income
Below 10, 000 6 3.47 .56 High
10,000 – 15,000 11 3.91 .28 High
Above 15,000 3 4.31 .95 Average
Legend:

Very High 4.20 – 5.00

High 3.40 – 4.19
Average 2.60 – 3.39
Low 1.80 – 2.59
Very Low 1.00 – 1.79

Impact of Marketing Strategies as a Whole and when grouped

as to Sex, Years in Business and Average Monthly Income

Table 2 shows the impact of marketing strategies as a

whole and when grouped as to sex, years in business and

average monthly income. As a whole, the impact of marketing

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SCHOOL OF HOSPITALITY MANAGEMENT

strategies is M = 4.55 which is “very high”. The impact of

marketing strategies on male is “very high” with M=4.79 and

it has higher value compare to female with M=4.44 which is

also “very high”. Although the impact on male is higher than

female, yet both has the same level which is very high.

Additionally, the impact of marketing strategies by

those who are in business below one year and one year and

above are both “very high” with M = 4.47 and M = 4.59,

respectively. Moreover, the impact of marketing strategies

with an income of below 10,000 is very high with M = 4.68;

10,000 – 15, 000 is also very high with M = 4.65; while

those with an income of above 15,000 is high with M = 3.89.

It shows that those with income below 15,000 agreed that

marketing strategies could greatly impact their business and

may lead to an increase in sales and marketing.

Table 2: Level of Impact of the Marketing Strategy

Group N Mean SD Description
As a Whole 20 3.84 .55 High
Sex
Male 6 3.96 .22 High
Female 14 3.78 .64 High
Years in Business
Below 1 year 8 3.97 .61 High
1 year and above 12 3.74 .51 High
Income
Below 10, 000 6 3.47 .56 High
10,000 – 15,000 11 3.91 .28 High

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Above 15,000 3 4.31 .95 Average

Legend:

Very High 4.20 – 5.00

High 3.40 – 4.19
Average 2.60 – 3.39
Low 1.80 – 2.59
Very Low 1.00 – 1.79

Mann-Whitney Test Result on the Difference in the Extent of

Challenges Encountered by the Establishment as to Sex and

Years in Business

Table 3 shows the difference on the extent of

challenges encountered by the establishment as to sex and

years in business. Results showed that there is no

significant difference on the extent of challenges

encountered between male and female with p = .207, where p >

.05. It simply implies that the extent of challenges

encountered by both male and female are the same. Thus, a

right strategy can help to overcome the most challenging

marketing strategy.

Furthermore, results also revealed no significant

difference between individuals who have been in business for

more than a year and those who have been there for only less

than a year regarding the extent of challenges they have

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faced with p = .851 where p> .05. Thus, consistent execution

of marketing activities will help increase visibility and

generating quality leads.

Table 3: Difference on the Extent of Challenges Encountered

as to Sex and Years in Business

Group Mann-Whitney Wilcoxon W Z Asymp. Description

U Sig

As to Sex 26.500 131.500 -1.280 0.207 Not

significant
As to 45.000 81.000 -.232 .851 Not
Years in significant
Business

Kruskal-Wallis Test Result on the Difference in the Extent

of Challenges Encountered by the Establishment as to Average

Monthly Income

Table 4 shows the difference on the extent of

challenges encountered by the establishment as to the

average monthly income. Results showed that there is no

significant difference on the extent of challenges

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encountered as to income with p = .323, where p > .05. It

simply implies that although the extent of challenges

encountered by those with income below 15,000 is high

compare to those with income above 15,000, both still needs

to have enough funding or resources. Insufficient funds may

slow the business’ growth or may prevent the business from

reaching its potential.

Table 4: Difference on the Extent of Challenges Encountered

as to Average Monthly Income

Group Chi- df Asymp. Description

square Sig

As to Average 2.261 2 .323 not

Monthly Income significant

Mann-Whitney Test Result on the Difference in the Level of

Impact of Marketing Strategies as to Sex and Years in

Business

Table 5 shows the difference on the level of impact of

marketing strategies as to sex and years in business.

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Results showed that there is no significant difference on

the level of impact of marketing strategies between male and

female with p = .239, where p > .05. It simply implies that

the level of impact of marketing strategies by both male and

female are the same. Thus, a well-defined marketing strategy

leads to an increase in sales and the attitudes of the

target audience can greatly impact the ideals of the

business.

Furthermore, results also revealed that the level of

impact of marketing strategies showed no significant

difference between individuals who have been in business for

more than a year and those who have been there for only less

than a year with p = .678 where p> .05.

Table 5: Difference on the Level of Impact of Marketing

Strategies as to Sex and Years in Business

Group Mann-Whitney Wilcoxon W Z Asymp. Description

U Sig

As to Sex 27.500 132.500 -1.221 0.239 Not

significant
As to 42.000 78.000 -.473 .678 Not

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Years in significant
Business

Kruskal-Wallis Test Result on the Difference in the Level of

Impact of Marketing Strategies as to Average Monthly Income

Table 6 shows the difference on the level of impact of

marketing strategies by the establishment as to the average

monthly income. Results showed that there is no significant

difference on the level of impact of marketing strategies as

to income with p = .437, where p > .05. It simply implies

that although the level of impact of marketing strategies

used by those with income below 15,000 is higher compare to

those with income above 15,000, both still needs to have a

well- defined marketing strategy . Therefore, as marketing

strategies bring in more clients, it may result in revenue

and business opportunities.

Table 6: Difference on the Level of Impact of Marketing

Strategies as to Average Monthly Income

Group Chi- df Asymp. Description

square Sig

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As to Average 1.656 2 .437 not

Monthly Income significant

Chapter 5

Summary, Conclusion, Implications and Recommendation

This chapter is comprised of four parts: (1) Summary, (2)

Conclusions, (3) Implications, and (4) Recommendations.

Part One, Summary of the Problem, Method, Findings,

recapitulates on the problem, the method used, and the

findings of the study.

Part Two, Conclusions, presents important inferences

drawn from the results and the findings of this study.

Part Three, Implications, presents various concepts

which demonstrates how the present findings would relate to

previously cited literatures and their implications to

theory and practice.

Part Four, Recommendations, offers suggestions based on

the findings and conclusions of the study.

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Summary

This study was conducted to determine the Marketing

Challenges and Strategies of Coffee Shops in Passi City

during the academic year 2022 - 2023. Specifically it aims

to answer the following questions:

1. What is the extent of challenges encountered by the

establishments as a whole and when the respondents are

grouped according to position in the company, number of

years in the company, and average monthly income?

2. What are the dominant marketing strategies used by

coffee shops in Passi City?

3. What is the level of impact of the marketing strategies

as a whole and when the respondents are grouped

according to position in the company, number of years

in the company, and average monthly income?

4. Is there a significant difference in the extent of

marketing challenges encountered by coffee shops when

the respondents are grouped according to their profile?

5. Is there a significant difference in the level of

impact of the marketing strategies when the respondents

are grouped according to profile?

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Quantitative-descriptive research design is used

in this study. It is used to explore and interpret the

answer to the problems of the study.

Owners and Staffs of coffee shops in Passi City

were the ones to answer the questionnaire adopted in

the study of Ms. Claren, 2023.

The findings of the study showed that:

1.As a whole, the extent of challenges encountered by the

establishment is M = 3.84 which is “high”. The extent of

challenges encountered by male is “high” with higher compare

to female with M=3.78 which is also “high”.

2.Additionally, the extent of challenges encountered by

those who are in business below one year and one year and

above are both “high”, respectively. Moreover, extent of

challenges encountered by establishment with an income of

below 10,000 is high, 10,000 – 15, 000 is also high while

those with an income of above 15,000.

3.The impact of marketing strategies as a whole and when

grouped as to sex, years in business and average monthly

income. As a whole, the impact of marketing strategies is

“very high”. The impact of marketing strategies on male is

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“very high” and it has higher value compare to female which

is also “very high”. Although the impact on male is higher

than female, yet both has the same level which is very high.

4.The impact of marketing strategies by those who are in

business below one year and one year and above are both

“very high”. Moreover, the impact of marketing strategies

with an income of below 10,000 is very high; 10,000 – 15,

000 is also very high while those with an income of above

15,000 is high.

Conclusions

Based on the results of the study, the following conclusions

were drawn:

1. In general, the coffee shop owners and staffs are very

high and highly motivated to operate their business and

to cope up with challenges. This holds through among

sex, years and monthly income.

2. In conclusion, there is no significant difference in

the extent of marketing challenges encountered by

coffee shops when the respondents are grouped according

to their profile.

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3. In conclusion there is no significant difference in the

level of impact according to sex, years and monthly

income.

Implications

The result and findings of the study of Marketing

Challenges and Strategies of Coffee Shops in Passi City

have significant implications to Michael Porter’s

Expectancy Theory. Owners and Staffs of coffee shop are

high motivated to perform their marketing strategy and

was able to cope up with the challenges encountered and

experienced by their business.

He stated that numerous factors fuel an employee’s

efforts to reach an organizational goal, including the

expectation that performance will yield positive rewards

and that rewards will match effort.

Recommendations

Based on the findings and conclusions of the study, the

researchers recommended the following:

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1. Since that Coffee Shop owners and staffs are very high

and highly motivated despite their sex, years in

business and monthly income, the Government shall have

every reason to promote their business.

2. Coffee shop owner and staff must have gain new

improvement and idea to improve their business even

though their business is at its peak because not all

the time the business is at its best.

3. Every coffee shop owners and staffs must share their

experience to those who are willing to start their

coffee shop business in order to help them grow as an

entrepreneur.

4. To future researcher, must know their responsibility

before they conduct the study so that they can easily

find what will be outcome of their study.

5. Future researcher must furthermore conduct the study

about the effect of challenges of coffee shop to

generate more ideas on how to cope up with

difficulties.

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Referrence

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https://passicity.gov.ph

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michael-porter/

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Oxford Dictionary,2016

https://www.weareyeomans.co.uk/blog

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IGI Global, 2023

https://www.igi-global.com/dictionary/sustainability-

of-social-enterprises/3642

Webster’s New world College Dictionary 2010

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house-765825

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coffee-shop/

Whats makes a great café experience, 2021

https://www.bria.com.ph/articles/what-makes-a-great-

cafe-experience/

What Makes a Coffee-shop Successful, 2020

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https://loyverse.com/blog/what-makes-a-coffee-shop-

successful

Diaz, 2021

https://joinposter.com/en/post/coffee-shop-trends

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whats-popular-now/

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Lyceum of the Philippine university Batangas, 2013

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Rappler, 2015

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Course Hero, Inc., 2022

mcCombes, 2019

https://www.scribbr.com/

Purposive Sampling 101, 2023

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https://www.alchemer.com/resources/blog/purposive-

sampling-101

Llola, 2018

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Lund research, 2018

https://statistics.laerd.com/

BYJU’S, 2023

https://byjus.com/maths/percentage/

masterclass, 2023

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