CUSTOMERS’ LEVEL OF SATISFACTION IN TERMS OF PRICE AND

PROMOTION IN THE RESTAURANTS AT TALABAHAN

VILLAGE, TAMBAK NEW WASHINGTON, AKLAN

A Research Proposal Presented to

the Faculty of Customs
Administration and
Hospitality Management Department
Aklan State University
College of Fisheries and Marine Sciences New
Washington, Aklan

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Hospitality Management

By:

ASHLEIY NICOLLE D. BURNASAL

MA. MIZZY STEPHANE S. CARMAN
JOURNALYN DIONALDO
ANGELETTE JOY O. OLARTE
JAMILA R. PALISOC
LOURENCE V. RENTILLO
MA.FEBEI M. TORRES

December, 2022
 Chapter 1

INTRODUCTION

Background of the Study

Marketing is believed to be a critical success factor to the growth and ultimate

survival of a firm and is therefore viewed as one of the most important aspects of a
business (Mokhtar & Wan-Ismail, 2012). Marketing can be defined as the process an
organization goes through in developing the concept of a product or service,
implementing the idea, determining the right pricing model, selecting the promotion
avenue and deciding on the distribution channels. The goal is to get the end user to
consume the product, leading to performance and profitability (Mokhatar & Wan-
Ismail, 2012).
It is critical to any accurate commercial enterprise and it enables you attain
and hook up with your audience and in the end is how you may develop your
enterprise within side the lengthy run. Marketing is critical because, without it, your
enterprise really will now no longer move everywhere as it won’t be seen. But it’s one
factor to marketplace your enterprise with a clean plan.
Marketing is finding out the needs and wants of potential buyers and then
providing goods and services that meets or exceed the expectations of those buyers.
The marketing concept is the use of marketing data to focus on the needs and wants
of customers in order to develop marketing strategies that not only satisfy the needs of
the customers but also the accomplish the goals of the organization.

An organization uses the marketing concept when it identifies the buyer’s need
and then produce the goods, service, or ideas that will satisfy them. Customers
satisfaction plays a pivotal role in success of every business organization whether it is
meant for product or services. Customers should be managed as assets and that
customers vary in their needs, preferences, and buying behavior. The restaurant
industry has become one of the most profitable industries in the world. International
and local restaurant chain are satisfying the demand of customers in variety of range
of products and services.

Talabahan Village Restaurants located in Tambak New Washington, Aklan.

Also known as the Seafoods Capital of Aklan. That serves tasty and affordable dishes.
In this study the researchers will determine the demographic profile of the
respondents, level of customers’ satisfaction in terms of pricing and promotion
strategies.

The purpose of this study is to know Customers’ Level of Satisfaction

in terms of Price and Promotion in the Restaurants at Talabahan Village,
Tambak New Washington, Aklan
Statement of the Problem

This study would like to find out the Customers’ Level of Satisfaction in
terms of Price and Promotion in the Restaurants at Talabahan Village,
Tambak New Washington, Aklan.

Specifically, this study will sought answer to the following questions:

1. What is the demographic profile of the respondents in terms of:

a. Name (Optional);

b. Age;

c. Sex;

d. Civil status and

e. Occupation

2. What is the customers’ level of satisfaction on the marketing

strategies of the selected restaurants in terms of:
a. price

b. promotion?

3. Is there a relationship on the customers’ level of satisfaction in terms

of price and promotion?

Hypotheses

Ho: There is no significant relationship between the customers’ level of

satisfaction in terms of price and promotion in the Restaurants at
Talabahan Village, Tambak New Washington, Aklan

Ha: There is a significant relationship between the customers’ level of

satisfaction in terms of price and promotion in the Restaurants at
Talabahan Village, Tambak New Washington, Aklan
Theoretical Framework

The Expectancy Disconfirmation Theory (Oliver, 1977) emphasized that the

performance of a product or service is compared or measured against the customer’s
expectations. Those expectations (or desire) of performance (or experience) are
subjective to everyone, based on their prior knowledge of that product. Performance
becomes the mediator for satisfaction. The evaluated performance or experience
influenced by previous experiences with that brand and consumers without prior
expectations base their satisfaction judgments solely on the performance of the
product.
The resultant difference between expectations and performance the basis for
the disconfirmation of expectation (or desire) and can be positive or negative.
Negative disconfirmation meaning the customer is left dissatisfied. The theory has
been applied across multiple fields to gain a better understanding of customer’s
expectations and requirements, such as marketing and consumer behavior, tourism,
psychology, information technology, and the airline industry. The expectancy
disconfirmation theory involves four primary variables: expectations, perceived
performance, disconfirmation of beliefs, and satisfaction.
“An individual’s expectations are (1) confirmed when a product performs as
expected, (2) negatively disconfirmed when the product performs more poorly than
expected, and (3) positively disconfirmed when the product performs better than
expected.” (Churchill & Surprenant, 1982).
 Conceptual Framework

Independent Variable Dependent Variable

Price Customers’ Level of Satisfaction

Promotion

Figure 1

The Relationship between the Independent and Dependent Variables

The conceptual framework of this study focused on the level of customer

satisfaction in terms of price and promotion in restaurants at Talabahan Village in
New Washington, Aklan.

Significance of the Study

The findings of this study will be beneficial to the following groups of people:
Hospitality Management Students. The hospitality management students
will benefit from this study as they can use this study for their future businesses and
as inspiration to become successful entrepreneurs.
 Aspiring Businessman. Who wants to build up and engage to the
restaurant business. This may serve as a guide to them as they put up a business and
will give them a head start about the challenges that they may encounter, which will
help them to cope easily in the market and have a competitive advantage to others.
Academe/Teachers. The results will provide the students an information
about this certain topic. And also gives the students a guidelines on the running and
maintenance of business. The given data would guide the teachers to have a deeper
understanding about this study and for them to know what the marketing strategies of
restaurants are when the future pandemic comes.
Local Government Unit. The results of this study would be beneficial for
governing bodies to improve and draft new guidelines related to the Restaurant
Operation under the new normal and in preparation for future pandemic period.

Future Researchers. It serves as a foundation of knowledge as to learn and

understand the study and also enables to them to look for strong evidences and
responses from the respondents. It improves their research skills little-by-little.

Scope and Delimitation of the Study

The researchers will focus on the customers’ level of satisfaction in terms of price and
promotion in restaurants at Talabahan Village in New Washington, Aklan. The respondent
of the study will be the customers of the restaurants in the area. The study will be
conducted on December 2022.

Definition of Terms

In order to establish a common perspective and clear interpretation of the

present study, the following terms are defined:
Customers’ Satisfaction. This refers to the measurements that determines
how well the a company’s product or service meet the customers’ expectations
(Szyndlar, 2022).
In this study customers satisfaction is the basis on how the customer satisfied
to in terms of food and services. Also how you determine if the customers satisfied to
the product and services.
Marketing Strategy. This refers to a process of how business and
organization understand their markets and their methods for influencing profitable
customer action (Ellering, 2018)
In this study marketing strategy is the process of action design on how to
promote and to sell a product. It is also the process of identifying the need and wants
of your target market.
Restaurant. This refers to a place where people can choose meal to be
prepared and served to them at a table, and for which they pay, usually after eat
(Cambridge Dictionary).
In this study restaurant is the establishment where the products can be sold/sell
such as food, drink, and services.
 Price. This term refers to the amount of money given or set as consideration for
the sale of a specified thing. (Merriam Webster)
In this study pricing strategy is the method using of a business to set prices to
their products and services.
Promotion. This term refers to a method used by the companies or
restaurants to advertise and promote and sell their goods. (MBA Skool Team,
2021).
In this study promotion strategy is an actionable plan to influence people
about the product and your business. It is also the process on how to promote and
advertise the product in your target market.
 Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents the review of the literature and the findings of previous
research to which the current study is related or has some similarity. This provided the
researcher with sufficient background in order to fully understand the study.

Marketing Strategies in a Pandemic Crisis

Marketing in times of crisis

There have been numerous studies examining broader marketing activities in

times of crisis. These have included firms dealing with a shortage of goods and
services (Kotler,1974), businesses managing marketing strategies during a recession
(Naidoo, 2010), advertising throughout a product-harm crisis (Gao et al., 2015), and
multinational corporations struggling to resolve problems associated with the global
financial crisis (Williams & Martinez, 2012). In the marketing domain, a crisis can
take many forms, but ultimately, it surrounds a large-scale situation where an event
has involved a drastic and negative impact on an organisation, its customers,
competitors, employees, and other relevant stakeholders (Clark, 1988; Grewal &
Tansuhaj, 2001).
 Role of Product Pricing on Consumer Satisfaction

Price is regarded as something that can be calculated according to several

measures, such as a reasonable price, a competitive price, a discounted price, a
retailer’s price, and price suitability. Value is a higher-level definition than quality and
price because it is more individualistic and personal. A satisfied consumer believes
that the value of goods and services is comparable with the price, which will
encourage them to repurchase the products. According to Zeithaml (1988), “quality
can be characterized as superiority or excellence in a broad sense.” From the
customer’s perspective, “The price is given up or sacrificed to get the product or
service” (Zeithaml, 1988). According to Bei and Chiao (2001), price is described as
giving or sacrificing for the acquisition of a service or product, while Kotler et al.,
(2012) proposed that the price is the amount paid for a product or service and the sum
of the value exchanged by consumers for the advantages of a product or service
available or being used. The perceptions of customers of a given price can have a
direct relationship with the decision to buy a product (Zechmeister et al., 1997).
Customers will pay attention to the prices paid by their peers, and no one wants to
spend more money than their peers do. The fairness of a price can affect the
perception of consumers of the product, and ultimately their desire to become a
consumer.
Pricing, as a subject, is receiving little academic attention and investigation
especially value- based pricing, even though there is a surge of interests recently
(Hinterhuber, 2004). It is an important tool in marketing since a 5% price increase
leads to a 22% improvement in profit of businesses compared with increases of 12%
and 10% in turnover and reduction of costs
of goods sold respectively, which means small increases in price on profitability
exceeding impact from other levels of operational management. Given the obvious
impact of price, the reasons of price attracting little interest in management are,
firstly, business owners believe that pricing is a zero- sum game and hard to win;
secondly, owners do not have confidence that they have ability to modify pricing
structure significantly.
There are many pricing strategies in the market including conventional pricing
and modern pricing methods. According to literature, one of the best pricing methods
is value based pricing or say value optimized pricing, in which price is set primarily
but not exclusively based on perceived value to customers, but neither cost of product,
market price, competitor price nor historical price (Sarokolaee et al., 2012). The
advanced difference of value based pricing is that it aligns price with value delivered
to individual customer to reflect the specific value related.
Price Appropriately for Takeout and Delivery

Understanding consumer expectations is a key to getting the marketing

messages right. Knowing that consumers are shifting expectations to higher costs
presents the opportunity to deliver move value through targeted price points to drive
purchase. A consumer who expects to pay $15/pp views an online offer for an entree
that is usually $20 discounted down to $15 would feel the psychological gain of
seeing this discount, but only if they discovered the discount themselves while on the
ordering site — without promoting the discount. Otherwise, if a promotion is used,
the consumer’s previous
expectations are negated by the promotion. It’s the timing of the discovery of the
pricing change that is important here.
Satisfaction of Consumers and Their Buying Behavior Customer value and
customer satisfaction are considered important parameters for the relationship
between customer value and the willingness to sacrifice (Zechmeister et al. 1997).
This sacrifice is made in accordance with an exchange mechanism that includes
transaction costs and the risk of the goods of company. According to Larsen et al.
(2017), customers will be disappointed in the future if the ratio value considered by
the economic sacrifice of customers with the goods sold by the company does not
meet their expectations. Customers will be satisfied if the ratio value is sufficient or
exceeds their expectations.
The New Normal for Restaurant Marketing

After the pandemic is over, the restaurant industry will not look the same.
Dine-in is going to be different – with spacing, airflow, contact less transactions
and more. Takeout/delivery are already stealing share from dine- in and that trend is
likely to continue. How consumers view their relationships with restaurants will shift
from going to the restaurant to eat to just swing by on the way home from work and
get a good meal for the family to eat at home. No one knows exactly how it’s all
going to play out, but what we can do is listen to consumers and operate in a lean
environment allowing for testing, changing and ongoing optimization to grow our
businesses in “The New Normal.”
 The optimal pricing strategy of a news vendor retailer in a market with
strategic consumers. Consumers are heterogeneous (strategic, myopic and bargain
hunting) and their product valuations are unknown to the retailer. The retailer uses
different price discounts to inform consumers about their selling strategy in the
product/brand introduction stage.
Our study explores the bestselling strategy across different product
development stages. We develop a news vendor framework to investigate the overall
effects of strategic buying behavior on pricing strategies and identify conditions where
fixed pricing, strategic high pricing, and high-low pricing are appropriate. We
analytically compare the profits of three pricing strategies. We show that high-low
pricing is best only if the offered discount is relatively small. Fixed pricing is the best
approach only if strategic consumers comprise a small population and the offered
discount for high-low pricing is relatively big.
Otherwise, strategic high-pricing strategy is best. Numerical investigations
further confirm the structural result under multiple settings. Our results imply that the
needed markdown discount and the market size of existing strategic consumers play
crucial roles in pricing strategy selection.
Online food ordering has grown in popularity among consumers and
restaurants since the technology of the 21st century has enabled humans to perform a
diverse set of tasks over the Internet. Consumers have gravitated toward these
technological innovations because of their ease, speed, and precision; at the same
time, allowing restaurant operators to acquire more profit (Dixon et al., 2009). Current
technology has allowed consumers to order food through restaurant websites or
mobile applications, via Facebook or
Instagram, by text or phone, and through online food ordering platforms or apps (e.g.,
DoorDash, Uber Eats).

Online food ordering has been found to increase restaurants’ revenue, improve
capacity management, productivity, transactional marketing, and management of
customer relationships (Kimes and Laque, 2011). The major reasons consumers
ordered food online was for convenience and control, while those who prefer human
interaction might not have used these services (Kimes, 2011a). However, consumers’
interaction preferences might be different after the COVID-19 pandemic.

Çiğdem Karakaya, Bertan Badur and Can Aytekin conducted a study, entitled,
“Analyzing the Effectiveness of Marketing Strategies in the Presence of Word of
Mouth: Agent-Based Modeling Approach” in 2017. Consumers are the ultimate
source of revenue for companies and it is vital to understand consumers in order to
gain a competitive advantage in the market. Traditional market models generally
concentrate on single individuals rather than taking social interactions into account.
However, individuals are tied to one another with invisible bonds and the influence an
individual receives from others, affects her purchasing decision which is known as
word of mouth (WOM) effect. In this process, some people have greater influence on
other consumers’ buying decisions that are known as opinion leaders. Consumers are
connected in numerous ways that were not available before. Internet plays a vital role
by connecting consumers through social networking sites, blogs, wikis,
recommendations sites.
In conclusion, when the WOM is in effect, product quality is the most
important factor that influences consumers’ buying decisions. Promotion strategy of
the company is the second important factor that triggers consumers buying
motivation. Decreasing price and increasing number of opinion leaders to collaborate
with do not lead to significant increase in number of buyers, when the product quality
is under the consumers’ expectations.

Marketing strategy is a construct that lies at the conceptual heart of the field of
strategic marketing and is central to the practice of marketing. It is also the area
within which many of the most pressing current challenges identified by marketers
and CMOs arise. Using a new conceptualization of the domain of the marketing
strategy construct as a lens, we assess the current state of marketing strategy research.
We uncover important challenges to marketing strategy research but also numerous
opportunities for developing important and highly relevant new marketing strategy
knowledge. The research agenda we develop provides opportunities for researchers to
develop new theory, establish clear relevance, and contribute to improving practice.
Since many of these cannot be adequately addressed with current publicly available
secondary data, researchers need to become more eclectic and creative in their
research designs, including emerging new technologies for data capture and analysis
(Morgan, NA, Whitler, KA, Feng, H et al., 2019)
 Advertising Strategy and Market performance

Advertising is any paid sort of non-individual correspondence around an

affiliation, good, organization or thought by a recognized help (Zinkan, 2012).
Advertising is a significantly open strategy for correspondence It offer
opportunities to playing out the association and its things through sagacious use of print, sound
and shading. Advertising, not in any manner like individual offering was unoriginal. It passes on
a monolog message to the recipients from a perceived source (Owaga, 2002). In continuous years
the piece of advertising in the organization business in both individual and corporate markets has
expanded essentially and was right now one of advertising wage. Ngugi (2013) did a research on
the promotional techniques connected to drive intensity at Essar Telecom Kenya. The reason for
this investigation was to distinguish promotional 20methodologies used to drive aggressiveness
by Essar Telecom Kenya Limited. The examination received a contextual analysis outline. The
scientist utilized both essential and optional information. Essential information was gathered
utilizing meeting guide with open finished inquiries. Being a contextual investigation, calculated
substance examination was utilized to dissect the information. The investigation found that the
organization has occupied with both draw and push procedure as a type of promotional technique.
Sales promotions, personal selling, coordinate marketing are a portion of the promotional
techniques connected. The study did not determine the effect of advertising on market
performance of firms.

Personal Selling Strategy and Market Performance

Personal Selling Strategy and market performance Personal selling is a

strategy in which salesperson utilizes their aptitudes and methods for making personal
associations with the client. As per Kotler and Armstrong, (2012), Personal Selling
was an oral introduction in a discussion with at least one planned buyer to make sales.
Personal selling includes personal contact, eye
to eye gatherings or through a phone discussion, Internet including utilizing video
conferencing or content informing. Personal selling is a selling procedure required
between individual to individual and between the planned purchaser and vender.
Personal selling comprises of human contact and direct correspondence instead of
impersonal mass correspondence.
 Chapter 3

METHODOLOGY

This chapter describes the research design, locale of the study, respondents,
and data gathering instruments, data gathering procedure, data analysis, and ethical
consideration. This chapter concentrates on the discussion of the method and
procedures adhered by the researcher in order to answer systematically the specific
problem posed for the study, Specifically the researcher method, populations,
instrument, data gathering procedures, data analysis and interception were explained
in this chapter.

Research Design

A quantitative method will be used in the study to determine the relationship

of the marketing strategies and the level of customer’s satisfaction in terms of pricing
and promotion as applied by the restaurants. The researchers will conduct a survey
using a checklist questionnaire to the respondents who have the knowledge on the
marketing strategies in the restaurants. A quantitative research method is a systematic
investigation of phenomena that is used to generate numerical data and hard facts,
by employing statistical, logical and mathematical technique. (Vaidja, 2022)
Respondents of the Study

The respondents of this study will be the customers of the different restaurants
in Talabahan Village Tambak New Washington, Aklan. The Fifty
(50) respondents will be given a questionnaire using actual survey.

Sampling Technique

The researcher used a non-probability sampling most specifically, a

convenience sampling technique. Convenience Sampling Convenience sampling is a
non-probability sampling method where units are selected for inclusion in the
sample because they are the easiest for the researcher to access. ( Kassiani
Nikolopoulou, 2022) Convenience sampling involves using respondents who are
“convenient” to the researcher. There is no pattern whatsoever in acquiring these
respondents—they may be recruited merely asking people who are present in the
street, in a public building, or in a workplace. ( Edgar & Manz, 2017).

Research Instrument

The researchers will use survey questionnaires to determine the relationship of

marketing strategies and the level of customers’ satisfaction in the restaurants I n terms
of pricing and promotion. The questionnaires will contain different questions on the
marketing strategies and the level of customers’ satisfaction in terms of pricing and
promotion. Part I of the questionnaire will assess the demographic profile of the
respondents such as name (optional) age, sex, occupation, etc., while part II will
determine the customers’ level of satisfaction in terms of price and promotion.
 The questionnaire will be validated by several professors of Bachelor of
Science and Hospitality Management as to its content. Suggestions and
recommendations during the pilot testing will be incorporated in the final
questionnaire.

Data Gathering Procedure

The researchers will prepare a letter to the ASU-CFMS Campus Director

asking approval to conduct a study. Another letter will be addressed to the Thesis
Adviser, Mayor of New Washington and the respondents of the study. The letter will
explain the purpose and the objectives of the study, the respondents will be
encouraged to provide information as much as they could. A survey questionnaire will
be used in this study, a checklist containing questions regarding the average level of
customers who got satisfied or unsatisfied by the pricing of foods/products of the
restaurants.

Ethical Consideration

The researchers prepared an official letter to conduct the study. Another letter
was proposed in the respondents. The purpose of this study was explained in the
letter, informing them to answer all questions as much as possible. The respondents
were assured that their personal information was highly confidential and the
researchers respected their privacy as they answer the survey questionnaire. The
researchers followed guidelines on ethical standards and respect of human rights. In
this study, the researchers make sure that the components of the research questions
are relevant to the research objectives.
Statistical tool
The quantitative data collected through the research instruments and will be checked,
tallied, scored, organized, and tabulated. To determine the customer assessment on
The Marketing Strategies and Customers’ Level of Satisfaction of Restaurants at
Talabahan Village, New Washington, Aklan, the data will computed using mean,
frequency, percentage, Mann-Whitney U test.
Mean

The mean refers to the average of a set of values. The mean can be computed in a
number of ways, including the simple arithmetic mean, the geometric mean, and the
harmonic mean. (Adam Hayes, 2022) the mean will use to assess the customer level
of satisfaction in terms of pricing and promotion strategies.
Frequency

The number of times something happens within a particular period or the fact
of something happening often or a large number or times. (Cambridge Dictionary)
The Frequency will use to assess the demographic profile.
Percentage

An amount of something, often expressed as a number out of 100. (Cambridge

Dictionary) The Percentage will use to assess the demographic profile.
Mann-Whitney U test

A non-parametric alternative test to the independent sample t-test. It is a non-

parametric test that is used to compare two sample means that come from the same
population, and used to test whether two sample means are equal or
not. Usually, the Mann-Whitney U test is used when the data is ordinal or when the
assumptions of the t-test are not met. (statisticssolutions.com) The Mann-Whitney U
test will assess the relationship of pricing and promotion strategies.
 SURVEY QUESTIONNAIRE FOR THE CUSTOMER

Direction. Please feel free to answer all questions. You are requested to answer based on your
judgment. NEVER LEAVE any items unanswered. In accordance with the “ethics of research,”
rest assured that all information will be treated with CONFIDENTIALITY.
Part I. Demographic Profile of the Respondents

Please check and fill-in the space provided for your answer.

a. Name (Optional)

b. Age ______

c. Gender

Male Female

d.Civil Status

Single Married Widow others (please, specify)

e.Occupation:

Student

Employed

Unemployed

Others (please specify)

 Part II. Marketing Strategies

Direction. Please rate the following variables based on the five-point scale
below, check the number that corresponds to your answer:

5- Strongly Agree (SA)

4- Agree (A)
3- Neutral (N)

2- Disagree (D)

1- Strongly Disagree (SD)

Strongly Agree Neutral Disagree Strongly

Agree Disagree

(SA) (A) (N) (D) (SD)

A. Price 5 4 3 2 1

1. The price of the

products and services
are reasonable.

2. The food of the

restaurant is budget-
friendly.

3. The transportation
cost is affordable.

4. The price gives value

for the money.
5. The price has
competitive
advantage.

6. The restaurant
provides discounts.

7. Restaurant offers
prices that reflect the
value of our product.

8. Restaurant offers
values for money
based on quality.

9. Restaurant offers
values for money
based on quantity.

10. Do you think price

is important factor.

B. Promotion

1. Flyers is use to
market customers.
 2. Radio is used to
market the customers.

3. The restaurant is
advertise in social
media platforms.

4. Customers are
effectively encourage
through online
promotion.

5. Restaurant used
social media platforms
for their menus and
other food offerings.

6. Samples are provided

to introduce new products
to the customers.

7. Printing media is used

in promoting the
restaurant’s products and
services.
8. Advertisement is use
to persuade customers.

9. Providing additional
amenities such as WiFi,
television plus cable TV,
telephone.

10. Providing
customers with clean
and ventilated space.
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