THE EFFICACY OF SELECTED PROMOTIONAL ACTIVITIES TO ACHIEVE

MARKET LEADERSHIP AMONG HOTEL AND RESTAURANT

IN SUBIC BAY FREEPORT ZONE

RHIA MAY C. ABRAJANO

Submitted to the Faculty of the Graduate School Ramon Magsaysay Technological

University, Iba, Zambales in Partial Fulfillment of the Requirements for the Degree of
Master in Business Administration (MBA).

March 2017
 Republic of the Philippines
RAMON MAGSAYSAY TECHNOLOGICAL UNIVERSITY
Iba, Zambales

GRADUATE SCHOOL

The study hereto attached entitled

“THE EFFICACY OF SELECTED PROMOTIONAL ACTIVITIES TO ACHIEVE

MARKET LEADERSHIP AMONG HOTEL AND RESTAURANT
IN SUBIC BAY FREEPORT ZONE”

prepared and submitted by RHIA MAY C. ABRAJANO

is hereby recommended for oral examination.

IRENE M. EBAL, Ph. D.

Faculty Adviser

Approved by the Committee of Oral Examination

JO A. ESPIRITU, Ph. D.
Chairman

PRESY ANTONIO, MMPM-CSEE GUILLERMO ANDRES, MBA

Member Member

Accepted and approved as a requirement for the Degree of

MASTER IN BUSINESS ADMINISTRATION

March 10, 2017 DOMINGO C. EDAÑO, Ed.D.

Date of Oral Defense Director, Graduate School
ACKNOWLEDGEMENT

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 The researcher expresses her heartfelt thanks and deep appreciation to the following

persons who, in one way or another, have helped in the successful completion of this study:

To Dr. DOMINGO C. EDAÑO, Director of the Graduate School, and the three

members of the panel: Dr. JO A. ESPIRITU, MS. PRESY ANTONIO and Mr.

GUILLERMO ANDRES for their patience during the oral examination and providing

inspiration that contributed immensely in the completion of this research work;

To Dr. Jo A. Espiritu, chairman of examination committee for her constructive

criticism and suggestions for the refinement of this study;

To Dr. Irene M. Ebal, her adviser for the continuous guidance, wisdom, patience and

for always pushing me up to be able to finish this manuscript;

To Dr. Ferdianad Tamoria, her statistician, who had shared his expertise in analyzing

statistical data;

To Dr. Nestor Z. Rondina RMTU- SM campus director for being approachable and

granting her leave;

Prof. Benjamin R. Capistrano, her father, for persistent encouragement, moral and

financial support as well as Mrs. Viola D. Abrajano and Dr. Delgorio C. Abrajano, parent’s

in-law and Rizalie C. Agaceta her sister for cheering her- up;

To Mr. Danilo Rogayan, Jr., her friend and colleague, who has extended his helping

hands as English critic;

To her Friends, Colleagues and HRM students, for their prayers and confidence in

her ability to pursue her study.

To Engineer Jonathan D. Abrajano, her loving and supportive husband, Sophia C.

Abrajano and Isabella C. Abrajano, her daughters as a source of her strength and inspiration;

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 To Hotels and Restaurant Employees of SBMA who had shared fruitful information

to make this study possible;

To her relatives and for those who have extended their help and support especially

Mrs. Marlyn R. Capistrano.

For those who I have failed to mention…my heartfelt gratitude…

Above all, to GOD…the provider of all… for His powerful love and endless

guidance.

RCA

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 DEDICATION

This manuscript is humbly dedicated to:

Capistrano- Abrajano Family,

BSHRM students of

RMTU SM Campus,

my true and supportive friends, and

ABOVE ALL,

GOD, the source of all blessings, strength and inspiration…

RCA

ABSTRACT

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 The main purpose of this study is to determine the efficacy of different promotional

activities in achieving market leadership among hospitality industries in Subic Bay Freeport

Zone, Olongapo City. There were 16 hospitality industries involved in this study.

The study made use of descriptive-correlational method with the researcher-made

questionnaire as the main instrument. The instrument was checked and validated by the

adviser and two experts in the hospitality industry. The test of validity and reliability were

done to ensure that the questionnaire gathered the necessary data for this study. Data were

analyzed using various statistical methods.

Results of the study showed that the respondents were 20 (30.77%) males and 45

(69.23%) females. The respondents were mostly frontline staff (30, 46.15%). In terms of

years in service, a total of 37 or 56.92% respondents were in the service between 1 to 4

years. Majority of the respondents are college graduates with 55 (84.62%). A total of 4

(25.00%) business establishments each have 50 to 59 and 40 to 49 regular employees while

6 (37.50%) of the business establishments have no contract of service employees. It was

found that the respondents “Almost Always” utilized the promotional activities in terms of

food and drinks (3.80), accommodation (3.97), live band entertainment (3.71). The study

found that there is a statistically significant correlation between promotional marketing

activities and marketing leadership of the hospitality industries. Likewise, there is a

significant difference between the promotional activities of the business establishment and

the business profile variables.

The study concluded that a typical employee-respondent is a male, frontline staff,

serving the establishment between 1 to 4 years and a college graduate. Meanwhile, a typical

business respondent is operating 1 to 4 years, with 40 to 59 regular employees and no

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contract of service (COS) employees. It was concluded that the respondents almost always

utilized the promotional activities to effect market leadership in terms of food and drinks,

accommodation and live band entertainment. The market leadership of the business

respondents in terms of number of guests was described as fully booked in hotel

accommodation, high number of guests in restaurant with live band and with no live band.

In terms of sales, very high sales were recorded in accommodation and restaurant with live

band, and average sales in restaurant with no live band.

In terms of quality service, the establishments are in the standard and first-class hotel

rating, with one (1) award and with very good traveler’s rating.

It was concluded that there exists a significant positive high relationship between

sales in accommodation 2014 and product of food and drinks; sales in accommodation 2014

and overall promotional activities of accommodation; travelers’ rating and place of live

band; and travelers’ total rating and product of accommodation; also, that there exists no

significant difference in the promotional activities of business respondents when grouped

according to profile variables.

After careful analysis of the study, this study recommends that the hospital industries

should enhance their promotional activities to sustain their market leadership for the next 10

to 20 years. The hotels and restaurants must devise more strategic, innovative and creative

promotional activities which will further attract customers both locals and foreign. The

different hotels should strive more to maintain their status as market leaders as the industry

continues to increase its standards in response to ASEAN integration, open economy and

internationalization. Further studies may be conducted to validate the results of this study

and to explore other variables which can affect market leadership.

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 TABLE OF CONTENTS

Page

TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENT iii

DEDICATION v

ABSTRACT vi

TABLE OF CONTENTS viii

LIST OF TABLES xi

LIST OF FIGURES xii

Chapter Page

I INTRODUCTION 1

Background of the Study 1

Significance of the Problem 2

Statement of the Problem 3

Scope and Limitation 4

II FRAMEWORK OF THE STUDY 6

Related Topics 6

Conceptual Framework 19

Hypotheses 20

Definition of Terms 21

III METHODOLOGY 23

Research Design 23

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 Respondents and Location of the Study 23

Instruments 24

Data Collection Procedure 24

Data Analysis 25

IV RESULTS AND DISCUSSION 27

Profile of the Respondent and Business 27

Utilization of Promotional Activities by Hotel and Restaurant 30

Business Respond to Effect Market Leadership

a. Food and Drinks 30

b. Accommodation 32

c. Live Band 34

Market Leadership of the Hotel and Restaurant Industry in SFZ 37

a. Number of Guests 37

b. Sales 39

c. Quality of Service 39

Relationship Between the Promotional Activities and Market 42

Leadership

a. Hotel Occupancy and Promotional Activities in Food 42

and Drinks

b. Sales and Promotional Activities in Food and Drinks 43

c. Sales and Promotional Activities in Accommodation 43

d. Rating and Promotional Activities in Live Band 44

Difference in the Promotional Activities When Business 45

Respondents are Grouped According to Profile
Variables

a. Years in Operation 45

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 b. Number of Branches and Outlets 45

c. Number of Regular Employees 46

d. Contract of Service Employee 47

V SUMMARY, CONCLUSION & RECOMMENDATIONS 48

Summary of Findings 48

Conclusions 50

Recommendations 51

BIBLIOGRAPHY 53

APPENDICES 56

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 LIST OF TABLES

Table Title Page

1 Distribution of Respondents in Subic Bay Freeport Zone 24

2 Frequency and Percentage Distribution of the

28
Business Profile (years in operation, branches,
employee, and number of COS)

3 Frequency and Percentage Distribution of the

29
Respondents’ Profile (sex, Position, year of service
and educational attainment)

4 Promotional Activities Utilized by Business Respondent

in Terms of Food and Drinks 31

5 Promotional Activities Utilized by Business Respondent

in Terms of Accommodation 33

6 Promotional Activities Utilized by Business Respondent

in Terms of Live Band 35

7 Summary of Utilization of Promotional Activities by Business

Respondent 36

8 Frequency and Percentage Distribution of Market Leadership

37
of the Business Respondents in Terms of Number of Guest

9 Frequency and Percentage Distribution of Market Leadership 38

of the Business Respondents in Terms of Sales

10 Frequency and Percentage Distribution of Market Leadership

40
of the Business Respondents in Terms of Quality of Service

11 Sample Verbatim Feedback of Customers in the Website 41

12 Correlation between Promotional Activities and Market Leadership 43

13 Analysis of Variance (ANOVA) on the Different

46

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 Promotional Activities When Group According to
the Profile Variables

LIST OF FIGURES

Figures Title Page

1 Paradigm of the Study 20

2 Map of Subic Bay Freeport Zone 23

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 Curriculum Vitae

Of
Rhia May Capistrano - Abrajano

Degree
Master of Business Administration (FAR)
Bachelor Of Science In Secondary Education (TLE)
Bachelor of Science in Hotel and Restaurant Management

Professional Experience
Ramon Magsaysay Technological University
San Marcelilno Campus, San Marcelino, Zambales
Hotel and Restaurant Management Instructor
June 2013- present

Lyceum Subic Bay, INC.

Subic Bay Freeport Zone
College of Hotel & Restaurant Management - Instructor/ Coordinator
June 2011 – June 2012

Colegio De Castillejos
Community College, Castillejos, Zambales
Hotel & Restaurant Management - Dean
October 2009 – April 2011

Ramon Magsaysay Technological University

San Marcelilno Campus, San Marcelino, Zambales
Hotel and Restaurant Management Instructor
October 2007 – 2009

BEST Freeport Colleges INC.

White Rock Compound, Matain Subic, Zambales
Bartending Services and Front Office Management- Instructor
October 2007- April 2008

Paaralang Tersaryo ng Pilipinas

San Marcelino Complex, San Marcelino, Zamabales
Hotel and Restaurant Management - Instructor
June 2004- October 2007

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 World Link Couriers
Roosevelt Avenue, Quezon City
Customer Service Representative
June 2003 – September 2003

Federal Express/ Airfreight 2100

SBMA Olongapo City
World Service Agent
July 19, 1999 – April 31, 2002

The Manila Hotel

Rizal Park Intramuros Manila
Food & Beverage Staff
September 05, 1997- April 1999

Educational Attainment

Graduate Studies: Master of Business Administration (Finished Academic

Requirements) RMTU, Castillejos campus, Castillejos, Zambales
June 2011
College: Bachelor of Science in Secondary Education
Major in TLE (CPE) 2010-
2011
Bachelor of Science in Hotel and Restaurant Management
University of Manila, Sampaloc Manila 1993-
1997

Vocational: Computer Power Pack Pro.

System Technology Institute, Olongapo February
2002
Basic Computer Course
Subic Bay Training Center, SBMA May 1997

Secondary: Western Luzon Agricultural College

San Marcelino, Zambales 1989-
1993

Primary: Laoag Elementary School

Laoag San Marcelino, Zambales 1983-
1989

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Seminars/ Training Attended

 K-12 Exposed in New Generation Program December 6,

2014
 Balloons & Party Needs Business August 14, 2012
 Hotel Familiarization Tour & Seminar September 20,
2010
 Food & Beverage Services NCII - TESDA March 13, 2010
 COHREP – Annual National Convention January 28 – 30,
2010
 Cake Decorating and Food Plating November 12,
2009
 Commercial Cooking NCII – TESDA October 29, 2009
 Dusit Thani Hotel Basic Hotel Customer Service
and Tour February 24,
2009
 ATSC- apprenticeship- by- experience (Super Ferry)
February, 18- 11,
2009
 “Training on product Packaging, Labeling &
Good Manufacturing” October 18- 10,
2008
 Cocktail Mix August 24, 2008
 Kitchen Art August 24, 2008
 The art of Garnishing August 24, 2008
 Ice, Fruit, & Vegetable sculpture August 24, 2008
 Research Congress for Graduate Education April 19, 2008
 Front Office Assessment NCII - TESDA April 08, 2008
 GASTRONOMIA 4- Holiday Inn January 15- 16,
2008
 Training Methodology – TESDA October 24- 26,
2007
 Fish and Meat Processing July 06, 2007
 “The understanding of the World and National Situation” August 13, 2006
 “Towards a Socially Relevant and Responsive Education” August 31, 2006
 Airlift – Bundled Product September 21-
22, 2002
 FedEx- COSMOS August 28- 29,
2001
 FedEx- Care Program March 24, 2001
 FedEx- ISO Awareness February 8- 9,
2001
 FedEx- Call Quality Process January 29, 2000
 FedEx – Int’l Courier Course September 15-
18, 1999

xv
  Hotel Practiced – The Manila Hotel January 21,
March 2, 1997
 Hotel Information System January 25, 1997
 Banquet Management and Practice January 27, 1996
 Novell September 05,
1995
 Hotel Tour – Manila Pavilion Hotel October 03- 06,
1994
 Int’l Cousin and Front Office Function February 05,
1994

Eligibility: Professional Teacher

License # 1372133

Special Skills

Computer Literate:
Power point
Windows programs
Excel

Baking
Event Coordinator

Personal Data

Date of birth: October 30, 1976

Birth Place: San Quintin, Pangasinan
Height: 5feet 6inches
Weight: 135 lbs.
Civil Status: Married
Name of spouse: Mr. Jonathan D. Abrajano
Occupation: Engineer
Fathers name: Benjamin R. Capistrano
Occupation: Vice Chancellor (retired)
Mothers name: Rosita S. Capistrano
Occupation: Elementary Teacher (retired)

Character References

Prof. Joes Espirito

Dean- Graduate Studies
Castellijos/ Iba RMTU Iba, Zambales

xvi
Pof. Anita A. Fabro
Assistant Dean – College of Agriculture
VP- IGP
RMTU San Marcelino/ Iba Zambales
Anthony Fabbabier
SMBA Logistics
SBMA, SBFZ Olongapo Zambales

___________________________________
RHIA MAY CAPISTRANO- ABRAJANO

xvii