COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

FINANCIAL MANAGEMENT DEPARTMENT 1

LOYALTY CARDS USAGE AND ITS EFFECT ON CASH HANDLING OF
SELECTED CUSTOMERS IN PASIG CITY

An Undergraduate Thesis
Presented to the Faculty of
the
College of Business and Entrepreneurial Technology
RIZAL TECHNOLOGICAL UNIVERSITY
Pasig City

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management

By

Jhon Mark B.
Bustamante Mary Jean
M. Hiangan Joana Mae O.
Lachica Trisha Ann S.
Lozada Ericka G. Cañada

December 20, 2022

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FINANCIAL MANAGEMENT DEPARTMENT ii

APPROVAL SHEET

This undergraduate thesis entitled “Loyalty Cards Usage and Its Effect
on Cash Handling of Selected Customers in Pasig City” prepared and
submitted by Jhon Mark B. Bustamante, Mary Jean M. Hiangan, Joana Mae
O. Lachica, Trisha Ann S. Lozada, and Ericka G. Cañada in partial fulfilment
of the requirements for the degree Bachelor of Science Business
Administration Major in Financial Management is hereby recommended for
corresponding oral examination.

December 20, 2022 Prof. Eugenia G. Samarista

Date Adviser

Approved by the Oral Examination Committee with a grade of , on

.

PANEL OF EXAMINERS

Dr. Corazon D. Austria

Chairman

Prof. Maria Belen R. Gunda Prof. James Patrick B. Almocera

Member Member

Accepted in partial fulfillment of the requirements for the degree,

Bachelor of Science in Business Administration major in Financial
Management.

DR. KRISTINE Y. OPULENCIA

Dean, College of Business and
Entrepreneurial Technology
 COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

FINANCIAL MANAGEMENT iii

DEPARTMENT

ACKNOWLEDGEMENT

This study is the outcome of the researchers' hard work, perseverance,

and teamwork. Aside from that, other persons contributed their skills,

knowledge, and support to the researchers to finish this study.

We would like to first express our deep gratitude to our research

professor, Mrs. Eugenia Samarista, for her ongoing support of our work and

her patience, inspiration, and vast expertise. Our study was made easier by

her advice.

In addition, we would like to acknowledge the support and advice of the

rest of the research committee, our statistician, our English critique, and our

research panelists.

We also like to express our sincere gratitude to the study's participants.

This would not have been possible without them.

We want to express our sincere gratitude, acknowledgment, and

appreciation to our family, who inspired us to begin and ultimately complete

this study.

Last, we want to express our gratitude to God for providing us with

spiritual guidance throughout our lives.

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FINANCIAL MANAGEMENT DEPARTMENT iv

DEDICATION

This research is entirely dedicated to our cherished parents, who helped

us out morally, financially, and emotionally. To our professor, who gave

advice, cheered us on, and voluntarily imparted her expertise to us. To our

friends and classmates who encouraged and pushed us to complete this

study, and most importantly, Our heavenly Father, who gave us the power,

endurance, knowledge, and patience to overcome and finish this study.

The Researchers
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ABSTRACT

This study was conducted in the City of Pasig to determine the usage of

loyalty cards and their impact on cash handling among selected loyalty card

holders. The respondents were residents of Pasig City who possessed loyalty

cards. The research employed quantitative and qualitative methods, utilizing a

5-point scale checklist as the primary tool for data collection. The profile of the

respondents did not show any significant differences.

To examine loyalty card usage and its effects on cash handling, frequency

and percentage analysis were used to determine the respondents' profiles

regarding age, sex, source of income, monthly income, and frequency of

loyalty card usage. The mean was employed to gauge the perceived effects

of loyalty card usage on cash handling. One-way ANOVA was utilized to

identify any significant differences in the perceived effects based on

respondents' profiles, while a t-test was used for gender comparison.

The findings revealed that most respondents were in the 21-30 age range,

indicating a predominantly young adult population. Most loyalty cards used

were associated with brands offering essential products and services, and the

main reason for availing of a loyalty card was the opportunity to save money

while shopping. Interestingly, respondents believed that while using loyalty

cards helped them save, it also increased spending. Furthermore, the

perceived effects of loyalty card usage on cash handling did not show any

.
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FINANCIAL MANAGEMENT DEPARTMENT vi

significant differences based on respondents' profiles.

Based on the recommendations, loyalty card providers should simplify

acquiring a loyalty card and emphasize other benefits beyond just saving

money. Loyalty cardholders are encouraged to explore services and products

offered by loyalty card brands beyond their basic needs to leverage the

potential savings fully. Additionally, creating budget plans and shopping lists

before using loyalty cards can be an effective strategy to prevent

overspending and maintain better control over cash handling.

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FINANCIAL MANAGEMENT DEPARTMENT vii

TABLE OF CONTENTS

Page

TITLE PAGE.......................................................................................................i

APPROVAL SHEET..........................................................................................ii

ACKNOWLEDGEMENT..................................................................................iii

DEDICATION...................................................................................................iv

ABSTRACT…...................................................................................................v

TABLE OF CONTENTS..................................................................................vii

LIST OF TABLES.............................................................................................x

LIST OF FIGURES..........................................................................................xii

CHAPTER

I. THE PROBLEM AND ITS BACKGROUND

Introduction.....................................................................................1

Theoretical Framework...................................................................3

Conceptual Framework..................................................................7

Statement of the Problem..............................................................9

Hypothesis Tested........................................................................10

Scope and Delimitation of Study..................................................10

Significance of the Study..............................................................12

Definition of Terms.......................................................................13
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II. REVIEW OF RELATED LITERATURE

Demographic Profile.....................................................................14

Customer Loyalty Program...........................................................16

Spending......................................................................................19

Saving...........................................................................................21

Synthesis......................................................................................23

III. RESEARCH METHODOLOGY

Research Method Used................................................................25

Population Frame and Sampling Scheme...................................26

Description of the Respondents...................................................26

Research Instrument....................................................................27

Data Gathering Procedure...........................................................28

Statistical Treatment of Data........................................................28

IV. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Demographic Profile of the Respondents....................................33

Different Loyalty Cards Used by Selected Respondents............37

Reasons Why Selected Respondents Avail Loyalty

Card..............................................................................................39

Perceived Effect of Loyalty Card in Cash Handling

of Respondents............................................................................40

Significant Difference on the Perceived Effect of

Loyalty Card Usage Towards Cash Handling in Terms of
Selected Profile of Respondents.................................................44
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V. SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS

Summary of Findings...................................................................48

Conclusions.................................................................................56

Recommendations.......................................................................57

REFERENCES.....................................................................................59

APPENDICES

Appendix A. Survey Instrument...........................................61

Appendix B. Letter to Respondents....................................65

Appendix C. Grammarian Certificate...................................66

Appendix D. Statistician Certificate......................................67

CURRICULUM VITAE.........................................................................68
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LIST OF TABLES

Table Page

1 The Frequency and Percentage Distribution of

Respondents Profile in Terms of Sex.........................................33

2 The Frequency and Percentage Distribution of

Respondents Profile in Terms of Age.........................................34

3 The Frequency and Percentage Distribution of

Respondents Profile in Terms of Source of Income....................35

4 Frequency and Percentage Distribution of

Respondents Profile in Terms of Monthly Income......................36

5 The Frequency and Percentage Distribution of

Different Loyalty Card Used by Selected Respondents..............37

6 The Frequency and Percentage Distribution of

the Reasons Why Respondents Availed Loyalty Cards..............39

7 Obtained Mean, Standard Deviation and Verbal

Interpretation on the Perceived Effect of Loyalty

Card Towards Cash Handling of Respondents in

Terms

of Spending.................................................................................40
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8 Obtained Mean, Standard Deviation and Verbal

Interpretation on the Perceived Effect of Loyalty

Card Towards Cash Handling of Respondents in

Terms

Of Saving.....................................................................................42

9 Analysis of Variance on the Significant Difference

on the Profile of the Respondents to the Perceived

Effect of Loyalty Card User Towards Cash

Handling

in Terms of Spending..................................................................44

10 Analysis of Variance on the Significant Difference

on the Profile of the Respondents to the Perceived

Effect of Loyalty Card User Towards Cash

Handling

in Terms of Saving.......................................................................46
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LIST OF FIGURE

Figure Page

1 Expectancy Theory of Victor Vroom...............................................4

2 Input Process Output......................................................................7

3 Likert Scale...................................................................................28