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Traditional vs. Online ordering system: Its Operational Role in the selected QSR in
Rosales, Pangasinan

A Research Proposal Submitted to the


Faculty of the College of Hospitality and Tourism Management
in partial Fulfillment for the Bachelor of Science in Hospitality Management

Acosta, Charmaine T.
Afan, Jerome Ian S.
Gabriel, Wilford C.
Quinit, Carlos S.
Villanueva, Trisha E.

Urdaneta City University


May 2023
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URDANETA CITY UNIVERSITY


COLLEGE OF HOSPITALITY AND TOURISM MANAGEMENT
San Vicente West, Urdaneta City, Pangasinan

APPROVAL SHEET

This research entitled “Traditional vs. Online ordering system: Its Operational
Role in the selected QSR in Rosales, Pangasinan” prepared and submitted by
Charmaine Acosta, Jerome Ian Afan, Wilford Gabriel, Carlos Quinit and Trisha Villanueva,
in partial fulfillment of the requirements for the degree Bachelor of Science in Hospitality
Management has been examined and is hereby recommended for approval and acceptance.

MARCELO P. VILLALUNA JR., DBA


Adviser

Approved by the Committee on Oral Examination as Passed on (Date).

____________________ ____________________ __________________


Panel Member Panel Member Panel Member

__________________________
Panel Chairman

Accepted as partial fulfillment of the requirements for the degree BACHELOR OF


SCIENCE IN HOSPITALITY MANAGEMENT

______________________________
Dean, CHTM
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CERTIFICATION OF INTELLECTUAL HONESTY

This is a declaration that every source utilized in this research has been properly

recognized and cited with extreme care. To further validate that this research is an original

effort and hasn't been plagiarized from earlier work or submitted for another degree.

Furthermore, this is to certify that the entire manuscript has been submitted to and

passed the standards on plagiarism set by the Center for Research and Development.

Abstract
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Acknowledgement
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This study is a new experience for researchers with hindrance that challenges their

patience, determination, ideas, and confidence. The researchers would like to express their

genuine thanks to the people who helped, contributed, and assisted them in this study to

become possible.

To their Research Adviser, Dr. Villaluna, Jr. for his patience and effort in improving

this study,

To their Dean, Mrs. Mary Rose A. Uy, for the support and help you gave us. Thank

you for your help to allow us to petition this subject. We will never forget the day you were

there for us. We owe it to you.

To their parents for their love, support, and encouragement for them to strive to do

their best to accomplish this study.

Above all, to our Almighty God, the researchers give their glory and praise to Him.

Table of Contents
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Page

Title . . . . . . . . . . 1

Approval Sheet. . . . . . . . . 2

Certification of Intellectual Honesty. . . . . . 3

Abstract . . . . . . . . . 4

Acknowledgement . . . . . . . . 5

Table of Contents . . . . . . . . 6

Chapter 1: Introduction . . . . . . .

Background of the Study . . . . . .

Significance of the study . . . . .

Scope and Delimitation of the study . . . .

Theoretical/ Conceptual Framework . . . . .

Statement of the Problem . . . . . .

Chapter 2: Methodology . . . . .

Research Design and Strategy . . . . .

Population and Locale of the Study . . . . .

Data Gathering Tool . . . . . . .

Data Gathering Procedure . . . . . .

Treatment of Data . . . . . . .

References . . . . . . . . .

Appendices . . . . . . . . .

Appendix A: Interview Guide. . . . .

List of Figure
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Figure 1: Research Paradigm

Chapter 1

Introduction
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Background of the Study

Many restaurants use traditional restaurant ordering systems to serve customers. In the

traditional restaurant ordering system, the staff write down the food that the customer orders.

The paper will then be passed to the kitchen and the chef will start to cook. This has caused

few inconveniences. The staff might make some errors while writing the order. Sometimes,

when the staff write in hurry will make the handwriting difficult to understand. The staff

might lose the order paper and customers might also receive incorrect bill. This was purely

utilized by many restaurants all over and that includes fast food chains. (Jiuan, 2019) But due

to the global market competitions, self-service technologies (SSTs), such as ATMs, online

banking, mobile scanning, and ticketing machines, have become a trend, a source of

competitive advantage for service providers, and a part of consumers’ everyday lives. Which

resulted to the decrease utilization of traditional ordering system. (Hellstrom 2019)

Therefore, improving the digital customer experience by promoting convenience

services and offering appealing restaurant menus (through the restaurant website or online

food ordering platforms) could be one strategy to re-stimulate restaurant sales and create a

new revenue stream. The majority of large chain restaurants with significant working capital

had already prepared well-functioning online ordering systems with attractive menus on their

websites which has been utilized by many fast-food chains, nowadays like self service kiosk,

and online applications for order placement before the interaction to the counter. (Sebby and

Brewer 2021).

Unlike with the traditional ordering in which customers need to queue and wait for

their turn for close contact with the teller or the cashier. Covid19 pandemic started the

limitation of close contact with any person not only inside buildings but also inside the

restaurants which actually led to the birth of new tech’s for the digitized ordering system

called the online food ordering system. (Sebby 2021) . Assessment of traditional versus
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online ordering systems in the operations of a fast food chain involves considering various

factors to determine their effectiveness. Traditional ordering systems in fast food chains

involve customers physically visiting the restaurant and interacting with staff to place their

orders. This can lead to direct communication and the opportunity to upsell or provide

personalized recommendations. Accuracy: Orders are placed in real-time, reducing the

chances of miscommunication or errors in the order. Customers can clarify their preferences

with the staff. Payment can be made in cash or card at the counter. This provides flexibility

for customers who may prefer these payment methods.

Traditional ordering is typically fast and efficient, especially for quick-service

restaurants, as the customer is present at the point of sale. Customers can immediately

address any issues or concerns with their orders, allowing for quick resolution. Online

ordering systems allow customers to place orders from their devices, offering convenience

and the ability to browse menus and customize orders at their own pace. Online systems can

facilitate upselling by suggesting additional items, leading to potentially higher sales. While

orders are placed electronically, there’s a risk of miscommunication due to the absence of

direct human interaction. However, this can be mitigated with clear online menus and order

confirmation.

Online orders often support a variety of payment methods, including credit/debit

cards, digital wallets, and online payment platforms, making it convenient for a wide range of

customers. Online systems can collect valuable customer data, including ordering habits and

preferences, which can be used for marketing and improving menu offerings. Online orders

can offer delivery to customers’ homes or the option to pick up orders at the restaurant,

providing flexibility.

The effectiveness of each system in a fast food chain’s operations depends on several

factors, including the target customer base, location, and the chain’s overall strategy.
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Understanding whether the majority of customers prefer in-person or online ordering is

crucial. Assess how each system affects order processing time, staff requirements, and overall

operational efficiency. Analyze the costs associated with each system, including staffing,

technology, and maintenance. Evaluate the readiness of the fast food chain to implement and

support an online ordering system, including the necessary software and hardware. Collect

feedback from customers using both systems to identify areas for improvement. Consider

whether offering online ordering provides a competitive advantage in the fast food industry.

Assess how each system can be promoted to attract and retain customers.

In addition, the consumer receives improved experience, convenience, ease of use,

increased customization, and reduced waiting time, while service providers benefit from

greater control over service delivery, service standardization, smooth demand fluctuation,

reduced labor costs and expanded opportunities for deliveries . Seeking the self-service

benefits, businesses adopt various forms of SSTs to their service algorithms. The food

ordering services app has brought a whole new way of ordering food in our world. Mobie app

development companies defined clearly two main segments in the market: platform-to-

customer and restaurant-to-customer. (Jones, 2021) Self-service Online kiosks (SSOKs)

appear as one of the most diverse technological forms of SSTs. Various industries have

successfully adopted ATMs, parcel lockers, self-checkout stations in grocery stores and

libraries, as well as other types of SSKs. At the same time, the amount of research dedicated

to SSOKs has been growing continually. Despite this trend, no comprehensive framework is

currently available to guide practical applications and to orient customer value research on

SSOKs. As the trend continues to emerge, online ordering system has lowered the barriers of

entry for small enterprises. It creates a golden opportunity for them to be seen as much as a

big famous restaurant in town with a reasonable budget. Online systems cannot still face out

traditional ordering regardless of the presence of self-service kiosk and online applications
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along stalls, people still queue in line to continue doing business. This research is made

possible for an assessment of the effectiveness of online ordering system versus the

traditional ordering system for fast food chains of Rosales, Pangasinan.

This research is made with the aim to provide information, knowledge and

importance about Traditional versus Online ordering system an assessment of it’s

effectiveness in the operations of fastfood chain restaurant. The study's findings may teach

students about the advantages and disadvantages of conventional and online ordering

methods, as well as how well they perform in Rosales, Pangasinan's operations of fast-food

chains. Future researchers will gain from the findings of this study because they will

understand the value of having both traditional and online ordering systems as well as their

respective efficacies.Future researchers might utilize the study as a basis for comparison and

a reference to conduct research based on the ideas and methodology employed in this study,

which would be beneficial.

This study's main objective is to compare the effectiveness of fast food businesses'

traditional ordering systems to those employed online. In Rosales, Pangasinan, this study will

be conducted at the selected fast food restaurants. Customers of the chosen fast food chains

will be the responders to this study.

Theoretical/ Conceptual Framework

Today, online food ordering is a 95 billion dollar industry expected to grow steadily

(“Online Food Delivery” 2019). Over the past year, the popularity of online food delivery

(OFD) has been on the rise worldwide. Cho et al. (2019) argues that OFD is an innovative

way that allows consumers to purchase a wide range of food selection via platform(s). OFD

platforms collect orders from consumer and pass on the information to restaurants and

delivery personnel (Troise et al., 2021). This opens up new opportunity for restaurants to

reach new market while increasing their revenues and consumers the convenience of having
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food delivered to their home. In the past, researchers have mainly focused on traditional

retail, e-commerce behaviours, characteristics of mobile application (Cho et al., 2019), not

much discussion around OFD consumers (Yeo et al., 2017; Suhartanto et al., 2019) and

even lesser on the use of mobile application to order food from a restaurant (Rodríguez-

López et al., 2020).

(FDAs) are a specific type of O2O platform that capitalizes on consumers' extensive

use of smartphones, mobile internet, and navigational services (Kaur et al., 2020b; Hwang

and Kim, 2019; Talwar et al., 2021b). These represent the platform-to-consumer market

segment, which is estimated to generate a projected market volume of USD 79,608 million in

2021, with the highest revenues being drawn from China (approximately USD 56,936

million), the United States (approximately USD 28,486 million), and India (approximately

USD 11,666 million) (Statista, 2020a). These figures indicate consumers' growing

acceptance of FDAs, which, during the lockdown instituted due to the coronavirus (Covid-

19) pandemic, have been steadily gaining popularity due to the rise of novel features, such as

„contactless delivery‟, which have the potential to reassure consumers of the limited risk of

exposure to the virus while availing themselves of food delivery (Businesswire, 2020;

Statista, 2020b).

In the Philippines, Food delivery service (FDS) is the practice of ordering or calling in

food from a restaurant or fast-food chain, the restaurant will prepare the food, and will then

send a driver or rider to the specified address to bring the food to customers. A modern trend

in food delivery is the use of food ordering apps. Food ordering apps such as GrabFood,

Toktok, Delivery Guy PH, and FoodPanda are examples of the newfound popularity of food

delivery services (FDS). Even different fast-food chains have their food ordering apps such as

McDonald's, Jollibee, Shakey‟s, Greenwich, and some well-known fast- food chains or

restaurants. The food industry is worth trillions of pesos, but delivery reports for only a small
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portion of that total. This opened up a significant opportunity for the future growth of many

countries. Particularly in the Philippines, a new wave is emerging in the food and beverage

industry. FDS has changed customers' lives in a variety of ways, allowing them to enjoy a

new, generous feast from the comfort of their own homes.

Prasetyo et al. (2021) have shown in their study that customer satisfaction in the

online food delivery or OFD during the COVID-19 period has gone through a long process of

innovation. Therefore, customer satisfaction has increased significantly. Sebby (2021) have

conducted timely research on the online restaurant menus and the purchasing intentions of the

consumers during the pandemic of the COVID-19. The restaurant's menu changed during the

COVID-19 period. Expensive food items are in less demand. The consumer's everyday food

items are of higher priority due to physical movements restrictions. Thus, consumers need

more and more physical exercises than regular exercises if they intake junk foods. That is, the

food habit and requirements have changed a lot. Cha and Seo (2020) have conducted their

research based on food delivery apps and consumer satisfaction based on the experiences on

the apps. This research discovered that consumers nowadays do not want to visit restaurants.

As a result, the success story of the restaurant business has been shifted to the apps and online

ordering processes. The research found out that the improvement of apps, attractiveness and

information found in the apps are relevant regarding customer satisfaction with online

ordering systems. The mobility and the trust factors are also crucial in the success story.

Customer satisfaction is crucial to success in any kind of business, especially in the

restaurant business. Ganapathi and Abu-Shanab's (2020) study has shed some critical light on

this aspect. They have found that customer satisfaction is related to a deficient level regarding

the quality and taste of the food. In contrast, the service provider's quality has a significant

role in the satisfaction of the customers.


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Tech (2020) has found out in a study that young people are the most frequent online

food ordering and delivery system users. However, the higher the prices, the higher the level

of satisfaction. The higher competition also has an impact on customer satisfaction in the

restaurant business. Customers focus more on the taste of the food, which is a critical 5

element for many newcomers to this field. As a result, many new startups target existing

restaurants and open their businesses to overcome such issues and provide satisfactory

services to the customers.

Tandon et al. (2018) study has found a correlation between website functionality and

customer satisfaction. The significant finding of their research is that cash on the delivery

system has a positive impact on the online food ordering and delivery processes. Customers

prefer the cash on delivery system. They are more satisfied using this mode of online

restaurant food ordering than any other mode. In addition, many stores are selling at a lower

price on online platforms rather than physical stores.

Independent Variable Dependent Variable

- business profile
Traditional vs. Online
- level of effectiveness of
ordering system: Its
traditional ordering
Operational Role in the
system
selected QSR in Rosales,
- level of effectiveness of
Pangasinan.
online ordering system

Figure 1

Research Paradigm
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Figure 1 shows the research paradigm of the study. It shows the Independent Variable

and Dependent Variable. Independent Variable consists of the business profile, level of

effectiveness of traditional ordering system and level of effectiveness of online ordering

system. For the Dependent Variable it includes the Traditional vs. Online ordering

system: Its Operational Role in the selected QSR in Rosales, Pangasinan.

Statement of the Problem


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This is study aims to evaluate the effectiveness of the Traditional vs. Online

ordering system: Its Operational Role in the selected QSR in Rosales, Pangasinan.

Specifically it seeks answer the follo sub-problems.

1. What is the business profile of the fastfood chain restaurant in the term of.

1.1 Location,

1.2 Years of Operation,

1.3 Number of Man power, and

1.4 Operational Hours?

2. What us the level of effectiveness of traditional ordering system in the

operations interms of.

2.1 Features,

2.2 Pros,

2.3 Cons, and

2.4 Contribution?

3. What is the level of effectivess of online ordering system in the

operations interms of.

3.1 Features,

3.2 Pros,

3.3 Cons, and

3.4 Contribution?

4. Is there a significant difference between the effectiveness of traditional of the

online ordering system?


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Hypothesis

The hypotheses of the study entitled:Traditional vs. Online ordering system: Its

Operational Role in the selected QSR in Rosales, Pangasinan ; are the following:

which will be tested at 0.05 level of significance.

Ho: there is no significant difference between the effectiveness pf traditional of the online

ordering system?

Ha: there is a significant difference between the effectiveness pf traditional of the online

ordering system?

Chapter 2

Methodology
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This chapter presents the research design for how this study would be conducted. It

also presents the subjects of the study, the data-gathering instrument, the collection of data,

and the statistical procedures to analyze and interpret the results of this study.

Research Design and Strategy

A descriptive-survey-correlation design would be used for the investigation. In

quantitative research, researchers gather numerical information from people or groups and

typically put this information into statistical studies to see whether there are any links

between them. The researchers believe that the descriptive approach to research would be

most appropriate given the goal of the investigation.

Descriptive methods, as the name suggests, are used to describe a population's or

phenomenon's features without trying to modify the variables. The descriptive-correlation

method is used to determine the relationship between two variables, whether the relationship

is perfect, very high, high, marked, moderate, slight, or negligible (Cacay, 2019).

Population and Locale of the Study

The locale of the study and population includes Perception and Satisfaction towards

Online Food Ordering versus Traditional Food Ordering around Rosales, Pangasinan, which

served food online and traditional system. A total of 50 respondents will be included in the

study. Nova Formula was used to conduct this research. Respondents would be sourced from

several Online Food Ordering and Traditional Food Ordering System around Rosales,

Pangasinan.

The respondents are split equally among the various for, divisions that adhere to the

inclusion criteria. The survey questionnaires were floated for two months, and the researchers

were able to conduct 50 surveys among 5 Fast Food Chains Establishments in Rosales,

Pangasinan.
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The method the researcher employed, random sampling, ensures that each sample has

an equal chance of being picked. A randomly selected sample is intended to provide a fair

reflection of the entire population. To get the sample size from the population, the researchers

used Slovin's formula. It is used when a population sample is gathered and a formula is

required to take confidence intervals and margins of error into consideration.

n = N / (1+Ne2)

Where:

n = sample size

N = population size

e = margin of error

Data Gathering Tool

A survey questionnaire is the instrument used to collect the data in this study. The

survey questionnaire is composed of three parts. The first part is composed of the business

profile of the fastfood chain restaurants in terms of location, years of operation, number of

man power, and operational hours. The second part is composed of the level of effectiveness

of traditional ordering system in the operations in terms of features, pros, cons, and

contribution. And lastly the third part is composed of the level of effectiveness of online

ordering system in the operations in terms of features, pros, cons, and contribution.

To examine the consistency and stability of the questionnaires that measure latent

variables, the researchers used the Cronbach's alpha test. Cronbach's alpha has a range of 0 to

1. The highest ratings often denote the reliability of the survey or questionnaire. You must

provide both the number of items utilized on the subscale and the Cronbach's alpha value

when describing Cronbach's alpha.

.Data Gathering Procedure


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A letter of request to conduct the study was prepared. The questionnaire surveys were

created by the researcher, validated by the subject-matter professor, and then circulated. The

researchers used a survey method to carry out their research in Rosales, Pangasinan. The

significance of the respondents' responses to the study is explained to them by the

researchers. In order for the respondents to complete the questionnaire fully aware of their

role as the study's subject, the researchers explain a few terms to them. The respondents were

asked to answer completely truthfully by the researchers. The purpose of this study is to

compare the effectiveness of the fast food chain's traditional and online ordering systems in

Rosales, Pangasinan.

All the gathered data answered by the respondents were tallied, compiled. encoded,

and analyzed using various statistical methods to have a relevant answer to the given

questions. These statistical methods helped the researchers to judge whether there was an

error or if the study was in good condition. The gathered data was subjected to some

statistical treatment for interpretation and computation to interpret the data effectively. Based

on the data the researcher comes up with conclusion and recommendations for this study.

Treatment of Data

The data gathered from the questionnaire was tallied and statistical values were signed

to it by the researchers.

For the sub-problem number 1, which is the business profile of the fastfood chain

restaurant in the term; Location, Years of Operation, Number of man power, and Operational

Hour. The researchers used frequency, percentage, and ranking.

1.1 Frequency refers to the actual number of respondents.

1.2 Percentage is a fraction or a ratio in which the value of the whole (denominator) is

always 100.

Formula:
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Percentage = (Value/Total Value)×100

1.3 Ranking is a question response format used when a researcher is interested in

establishing some type of priority among a set of objects.

For the sub-problem number 2, which is the the level of effectiveness of traditional

ordering system in the operations interm of; Features, Pros, Cons, and Contribution. The

researchers used frequency, average weighted mean and ranking.

2.1 Frequency refers to the actual number of respondents.

2.2 Average Weighted Mean a calculation that takes into account the varying degrees of

importance of the numbers in a data set.

Formula:

Weighted Mean = w1x1+w2x2+…+wnxn/w1+w2+…+wn

Where,

x= is the repeating value.

w= is the number of occurrences of x (weight)

x= is the weighted mean.

Scale Statistical Limit Descriptive Equivalent Symbol

5 4.50-5.00 Strongly Agree SA

4 3.50-4.49 Agree A

3 2.50-3.49 Moderately Agree MA

2 1.50-2.49 Somewhat Agree SWA

1 1.00-1.49 Disagree D
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2.3 Ranking is a question response format used when a researcher is interested in

establishing some type of priority among a set of objects.

For the sub-problem number 2, which is the the level of effectiveness of online

ordering system in the operations interm of; Features, Pros, Cons, and Contribution. The

researchers used frequency, average weighted mean and ranking.

3.1 Frequency refers to the actual number of respondents.

3.2 Average Weighted Mean a calculation that takes into account the varying degrees of

importance of the numbers in a data set.

Formula:

Weighted Mean = w1x1+w2x2+…+wnxn/w1+w2+…+wn

Where,

x= is the repeating value.

w= is the number of occurrences of x (weight)

x= is the weighted mean.

Scale Statistical Limit Descriptive Equivalent Symbol

5 4.50-5.00 Strongly Agree SA

4 3.50-4.49 Agree A

3 2.50-3.49 Moderately Agree MA

2 1.50-2.49 Somewhat Agree SWA

1 1.00-1.49 Disagree D

3.3 Ranking is a question response format used when a researcher is interested in

establishing some type of priority among a set of objects.


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For the Sub-problem number 4, which is to test the ignificant difference between the

effectiveness of traditional of the online ordering system of the Fast food chain restaurant in

Rosales, Pangasinan.

The researchers used Pearson R Correlation. Below are the formula and Quantitative

Linear Interpretation.

Formula of Pearson r Correlation

Where,

r = Pearson Coefficient

n= number of pairs of the stock

∑xy = sum of products of the paired stocks

∑x = sum of the x scores

∑y= sum of the y scores

∑x2 = sum of the squared x scores

∑y2 = sum of the squared y scores

Rule of Thumb for Interpreting the Size of a Correlation Coefficient

Size of Correlation Interpretation

.90 to 1.00 (-.90 to – 1.00) Very high positive (negative) correlation

.70 to .90 (-.70 to - .90) High positive (negative) correlation

.50 to .70 (-.50 to - .70) Moderate positive (negative) correlation

.30 to .50 (-.30 to - .50 Low positive (negative) correlation

.00 to .30 (.00 to -.30) Negligible correlation

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