Actual Performance AND Expectation Demands OF Convenience Stores AS Perceived BY Consumers IN Barangay SAN Isidro Parañaque CITY Basis FOR Enhanced Products AND Services PDF

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ACTUAL PERFORMANCE AND EXPECTATION DEMANDS OF CONVENIENCE STORES AS PERCEIVED BY CONSUMERSIN BARANGAY SAN ISIDRO, PARAÑAQUE CITY:BASIS FOR ENHANCED PRODUCTSAND SERVICESA Market Research Presented to the Faculty of the Bachelor of Science in Business Administration Polytechnic University of the Phili...

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ACTUAL PERFORMANCE AND EXPECTATION DEMANDS OF CONVENIENCE STORES AS PERCEIVED BY CONSUMERS IN BARANGAY SAN ISIDRO, PARAÑAQUE CITY: BASIS FOR ENHANCED PRODUCTS AND SERVICES

A Market Research Presented to the Faculty of the Bachelor of Science in Business Administration Polytechnic University of the Philippines Taguig City

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

CHONG, REN CARLOS D. CORPUZ, JANINE PAULA V. LANOT, RICAGEL D. PEDERNAL, ALYSSA MAUREEN C. SAMPAGA, MERYLL E.

October 2017

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ABSTRACT For years, the number of convenience stores in the Philippines has been rampantly increasing, and persistently penetrating. While convenience store participants settle their position in the market, customer expectation is bursting up across the corner. C onvenience store format implies “being convenient”. On the split side of the coin, there is always a diverse result where customers seek for more convenient experience, and meet their expectation influencing their perception. The failure to maintain convenience can become a disadvantage to the consumer. Hence, this proposed market research will emphasize the comparison of the consumer perception and expectation regarding products and services. Also, this aims to provide new ideas for creating and executing plans on what innovation convenience stores need to implement, for this will drive to adapt on consumers expectation, beneficial change in their buying behavior. The expected implication of this work includes additional satisfaction to customers, improvement in profitability and market share, and lastly, building customer loyalty. Thus, this will gain competitive advantage among competitors.

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STATEMENT OF THE PROBLEM

This study determined the actual performance and expectation demands of convenience stores as perceived by consumers in Barangay San Isidro, Parañaque City as basis enhancement for products and services.

Specifically, the study answered the following questions: 1. What is the socio- demographic profile of respondents from Barangay San Isidro, Parañaque City? 1.1 Gender 1.2 Age 1.3 Civil Status 1.4 Employment Status 1.5 Average Family Monthly Income 2. What is the level of expectations of the respondents on existing products and services in convenience stores? 3. What is the level of actual experience of the respondents on existing products and services in convenience stores?

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4. What are the additional products and services that respondents want to be available and be offered by convenience stores? 5. Is there a significant difference between the actual performance and the customer expectations on existing products and services in convenience stores?

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SCOPE AND DELIMITATION OF THE STUDY

The researchers delimited their respondents to the residence of Barangay San Isidro Parañaque City, 399 respondents were interviewed as a sample in the conducting of survey considering that they were patronizing convenience stores. “On-the-spot” survey was undertaken within the stores. The convenience stores were 7-Eleven, Mini Stop, Best Choice, Food Drive, Caltex, Petron Shop, and Select. This market research will concentrate only on the perception and expectation of the consumers regarding products and services. Consequently, it will also focus on searching and providing new ideas for creating and executing plans on what future convenience store will holds and needs to implement to be able to adapt on consumer expectations that can be beneficial change in their buying behavior. The study will identify what consumers need, want and expect in a convenience store, and its future that can satisfy them. Thus, this will signify convenience to the store.

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METHODOLOGY Research Design This market study used the descriptive method of research. According to Manuel and Medel, “Descriptive research describes what is. It involves the description, recording, analysis, and interpretation of the present nature, composition or processes of phenomena. The focus is on prevailing conditions, or how a person, group, or thing behaves or functions in the present. It often involves some type of comparison or contrast.” The intention of the study involves collecting data in order to answer questions regarding the thoughts of respondents. The researchers gather information through a survey-questionnaire and observation. The research design was utilized to collect data for the researchers to know the customer perception and further customer expectations with respect to products and services in Parañaque City that would serve as basis to provide new ideas for creating and executing plans on what innovations that convenience store needs to implement. This is for them to adapt on consumers said expectation. This will also create a beneficial change in consumers’ buying behaviour and for them to be satisfied. The researchers collated documentaries, such as records from National Statistics Office, and others that aided the study.

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FINDINGS The following are the results gathered by the researcher upon conducting the study. 1. The Socio- demographic profile of the respondents. 1.1 164 were male which corresponds a rate of 41.1% while 235 were female which corresponds a rate of 58.9% 1.2 Out of 399 respondents, 200 were aged 18 years old and below which corresponds a rate of 50.1%, 121 were 19-25 years old with a rate of 30.3%, 37 were 26-33 years old with a rate of 9.3%, 27 were 34-50 years old with a rate of 6.8%, and 14 were 51 years old and above which corresponds a rate of 3.5%. 1.3 350 of the respondents are single which corresponds a rate of 87.7%, 41 were married with a rate of 10.3%, 6 were widow/widower with a rate of 1.5%, 2 were separated with a rate of .5%. 1.4 Most of the respondents were unemployed with 252 which corresponds a rate of 63.2%, followed by employed with 89 and a rate of 22.3%, self-employed with 38 and a rate of 9.5%, underemployed with 18 and a rate of 4.5%, retired with 2 and a rate of .5%.

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1.5 Most of the respondents were generating 10,001-50,000 of monthly income with the count of 177 which corresponds a rate of 44.4%, followed by 10,000 and below with 169 and a rate of 42.4%, 50,001-100,000 with 33 and a rate of 8.3%, 100,001-250,000 with 13 and a rate of 3.3% and the least 250,001 and above with 7 and a rate of 1.8%. 1.6 205 of the respondents are from 7-Eleven which corresponds a rate of 51.4%, 157 are from Mini Stop with a rate of 39.3%, 12 are from Select with a rate of 3%, 2 are from Petron Shop with a rate of .5%, 16 are from Food Drive with a rate of 4%, 3 are from Best Choice with .8% and 4 from Caltex Shop with a rate of 1%. 2. Expectations of the respondents on existing products and services in convenience stores: The results in questions a, b, ,c d, e, f, g, h, j, k, l, m, n and o gained a mean with a range of 3.26 to 4.00, which corresponds to outstanding performance based on the Likert Scale. Meanwhile, question i gained a mean of 2.51 to 3.25, which corresponds to excellent performance. 3. Actual experience of the respondents on existing products and services in convenience stores.

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The results in all questions gained a mean with a range of 2.51 to 3.25, which corresponds to excellent performance based on the Likert scale. 4. Additional products and services that respondents want to be available and be offered by convenience stores. Based on the research, the results in questions c and e for services and questions c and h for products gained a mean of 3.26 to 4.00, where the respondents strongly agreed on the following additional products/services: Setting up Water Refilling Station, Locate Price checker, Availability of Medical Kit, Accessibility of Over-the-counter Medicine. Meanwhile, the results on questions a, b, d, f and g for services and questions a, b, d, e, f and g for products gained a mean of 2.51 to 3.25, where the respondents agreed on the following additional

products/services:

Placement

of

Television,

Installment of Printing Services, application of self-checkout, Utilization of Vending Machine, Putting up a Candy Corner, Selling of Street Foods, Offering Phone Accessories, Provision of Basic Clothes and Undergarments, Inclusion of Album Section/Book Section. The only question that has a result that corresponds to disagree is question g for both products and services; Placement of laundry services and

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selling of lottery tickets which gained 1.76 to 2.50 based on the Likert Scale. 5. The significant difference between the actual performance and the customer expectations on existing products and services in convenience stores. One sample T-test was conducted to determine the significant difference between the actual performance and the customer expectations

on

existing

products

and

services

in

convenience stores.Test revealed a t-score of 145.593 with computed p-value of 0.000 (statistics is significant at p...