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Basic Education Department – Senior High SchoolCUSTOMER SERVICE AND CUSTOMERS’ SATISFACTION IN JOLLIBEEA Thesis The Faculty of the Senior High SchoolPresented To University of Perpetual Help System Laguna Sto. Niño, Biñan City, LagunaIn Partial Fulfillment Of the Requirements for the Subject Practic...

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University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School

CUSTOMER SERVICE AND CUSTOMERS’ SATISFACTION IN JOLLIBEE

A Thesis Presented To The Faculty of the Senior High School University of Perpetual Help System Laguna Sto. Niño, Biñan City, Laguna

In Partial Fulfillment Of the Requirements for the Subject Practical Research 2

by Maureen Joi M. Acuña Renabeth L. Bacolod Alaina Y. Dela Cruz Ma. Samantha C. Lopez de leon Nathaniel F. Navarro Jovilyn M. Roldan Alaine G. Salumbre Rose Ellamae R. Sangines Princess Siena P. Zaguirre

March 2018

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School

Chapter 1 THE PROBLEM AND ITS SETTING Introduction Throughout the years, the food chain industry has grown through series of transformation in which the company is getting wider in the strategies of service while having a struggle of competition in this world of food business. They need to provide quality services to reach the growing demand of the economy and so with the customers’ satisfaction. It also creates number of economic opportunities for firms in the technology, manufacturing and services industries. Based on Jollibee Foods Corporation (2017) their company is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar, and Brunei, firmly establishing itself as a growing international QSR player. According to The Importance of Good Customer (2017), customers are the one who hold the potential to undertake activities that offer long-term value to an organization. They are not only including purchasing products but also to give feedbacks on company performance, making prompt payment, offering suggestions for new products and voluntarily promoting the company’s products to others. Customers are the best source to improve the business. And to know the level of customers’ satisfaction, management of the food business should have an obligation in dealing with people’s health and lives by knowing the needs and wants of their valued customers.

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School

Customer satisfaction is a measure of how products and services supplied by a company to meet or surpass customers’ expectation (Farris et. al, 2010). Customer satisfaction measurement helps to promote an increased focus on customer outcome and stimulate improvements in the work practice and processes used within the company. It covers the cleanliness, ambiance, quality of food and services and the good communication skills of employees to customers. Customer satisfaction rating can have a powerful effect (Kessler, 2003). It is a key differentiation and increasingly has become a key element of business strategy. The number of satisfied customers is a high priority in every business and represents the image or success of a business. A business should focus on achieving good customer value by providing better service quality, product quality and value-based prices. These activities can help a business benefit in the long run and achieve loyal and satisfied customers. Such business last longer in the competitive market and thus, maximize profit in the future (Angelova & Zekiri, 2011). This study focused on the customer service and the level of customers’ satisfaction that will be a great advantage of a company to maintain the strong relationship between the customers which will help the food business industry to expand opportunities and to inspires others to excel in delivering quality products and services. The researchers aim to prove that building customer satisfaction and loyalty is the key to profitable business.

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School

Theoretical Framework This study postulated on Expectancy Disconfirmation Theory and Hypothesis Testing Theory. These are defined as theories for measuring customer satisfaction from perceived quality of products or services is reviewed in this research for measuring customer satisfaction (Elkhani & Bakri, 2012). According to Erevelles & Leavitt (1988), the expectancy-disconfirmation (ED) paradigm has been dominated consumer satisfaction / dissatisfaction research in the early 1970’s. Moreover, significant disconfirmation effects, larger in magnitude than that of expectation, were observed in all cases to support for an adaptation level interpretation of satisfaction decisions (Oliver, 1980). Erevelles and Leavitt (1988) studied that the concept of expectations is generally defined as consumers’ beliefs that a service or a product has certain attributes.

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School Figure 1 shows that the expectation has affected the perceived performance and disconfirmation and perceived performance has affected to disconfirmation. Finally, perceived performance and disconfirmation has affected to satisfaction.

Hypothesis Testing Theory Hypothesis Testing Theory by Deighton (1983) suggested a two-step model for satisfaction generation. He claimed that pre-purchase information particularly advertising plays a substantial role in building up expectations about the products and services that customers will acquire and use. Customers use their experience with products and services to test their satisfaction. Second, customers tend to attempt to confirm rather than disconfirm their satisfaction. The interpretation of this theory is that customers are biased to positivity confirm their product and service experience. It is an optimistic view, but it turns the management of evidence into a very powerful marketing tool (Vavra, 1997).

Theoretical Model

Figure 2. Hypothesis Testing Theory Model Source: Deighton (1983), Vavra (1997)

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School Figure 2 shows that hypothesis is either a suggested explanation for an observable phenomenon, or a reasoned prediction of a possible causal correlation among multiple phenomena. In science, a theory is a tested, well-substantiated, unifying explanation for a set of verified, proven factors.

Operational Framework The operational framework anchored on Expectancy Disconfirmation Theory, Hypothesis Testing Theory which can measure customer’s satisfaction from difference between customer’s expectation and experience in perceived products or services. Consumers enter a consumption experience with a set of expectations of what they would like to happen (Wirtz et al., 2006). Affective expectations reflect people’s expectations about how they anticipate feeling in given situation (Wilson et al., 1989). And according to Anderson (1973) it can predict the effect on product evaluation and customer satisfaction of disparity between expectations and actual or objective product performance. The product performance predictions differ in terms of magnitude of effect placed on expectation and disconfirmation.

Independent Variable Customer Service product quality service quality ambiance/atmosphere

Dependent Variable Customer Satisfaction price brand loyalty

Figure 3. The Operational Model showing the relationships among variables

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School

Statement of the Problem This study focused on establishing the relationship between customer service of Jollibee and the level of customers’ satisfaction. Specifically, the researchers aim to answer core questions:

1. How can the customer service of Jollibee be described in terms of: 1.1 product quality? 1.2 service quality? 1.3 ambiance/atmosphere? 2. How can the level of satisfaction of Jollibee customers be described in terms of: 2.1 brand loyalty? 2.2 price? 3. How significant is the relationship between the customer service of Jollibee and the level of satisfaction of its customers?

Hypothesis of the Study Based on the identified problems, the researchers formulated the hypothesis: 4. H0: There is no significant relationship between the customer service of Jollibee and the level of

satisfaction of its customers.

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School

Scope and Delimitation This probe mainly dwelt on the level of customers’ satisfaction in two branches of Jollibee in Umbria Commercial Center and Pavilion Mall, Biñan, Laguna. The customer satisfaction relied on expectation and perception towards customer service. The participants of this study consisted of one hundred (100) Jollibee customers. Fifty (50) customers from Jollibee in Umbria Commercial Center and Fifty (50) customers in Jollibee Pavilion Mall Biñan, Laguna. The study attempted to assess the level of customer satisfaction on the food and service quality and in the ambiance of the Jollibee and test the relationship between the customer service and the level of customers’ satisfaction. The researchers used survey questionnaires in collecting information to the respondents.

Significance of the Study This research study will be beneficial to the following: Selected Jollibee customers will have their privilege to provide them information about what to expect in their service and to rate the job performance of the staff and crews. They can also give their suggestions on how it can be improved. Jollibee Management can use the provided finding strategies and understandable knowledge to improve and develop their business as well as the satisfaction level from customers. Staff and crews of Jollibee will be benefit for them to know if they were able to do their job and providing the best service experience to Jollibee’s customers. ABM students can use the results as their reflection or inspiration for those who want to be

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School involve in business in the field of marketing and management. It will provide insights of the possible factors that can be experience in the business area. The faculty of the Senior High School of ABM students can use the study as their reference material for teaching technique enhancements and for the betterment of business related education. Parents can serve this study as a guide to provide their sons and daughters a proper support that they need to excel and succeed in venturing the business/commerce degree. Future researchers can use this study as reference for their further studies and better understanding. The totality of this undertaking greatly brought intellectual gains, moving insights, and character empowerment to the researcher. The research process widened their horizons, strengthened their character, and tested their perseverance when it comes to business and to understand the impact of customer service through the eyes of the customers.

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School Definition of Terms The following used in this study are defined conceptually and operationally: Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. Fast Food is use for the food which can be prepared and served quickly than any other meal. Minimum preparation time is considered for fast food, generally this term refers to food sale in restaurants and stores with low time preparation and served to customers in form of packaged for take away /takeout. Customer is an individual or business that purchases the goods or services produced by a business. Service is a process consisting of a series of intangible activities that normally, but not necessarily always, takes place in interactions between the customer and service employees and/or physical sources or goods/or systems of the service provider, which are provided as solutions to customer problems. Customer Expectations is the needs, wants and preconceived ideas of a customer about a product or service. Customer Satisfaction is a marketing term that measures how products or services supplied by a company meet or surpass a customer’s expectation. Customer Service is creating a relationship of trust and loyalty with customers that transcends the interaction of the moment. And refers to the process of ensuring customer satisfaction with a product or service. Service Quality refers to a business with high service quality will meet customer needs whilst remaining economically competitive. Food Quality refers to all positive attributes of a food such as origin, color, texture, processing method that influence the value of a product to the consumer.

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School Employee is hired for a specific job or to provide labor and who works in the service of the employer. Product Development is the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. Perceived Performance indicates customer’s experience after using products or services that can be better or worse than customer’s expectation. Disconfirmation is defined as the difference between customer’s initial expectation and observed actual performance Expectations define customers anticipates about performance of products and services. Gender is used to describe those characteristics of women and men. Hospitality is the consistent excellence and quality in people skills, product and ambiance. It profitably providing value and worth at any price level, while demonstrating own unique points of distinctions. Age is the length of time during which a being or thing has existed; length of life or existence to the time spoken of or referred to. Level is a position on a real or imaginary scale of amount, quantity, extent, or quality. Perceive is to become aware of to know or identify by means of senses. Profile is a brief written description that provides information about someone or something. Skills is the ability and capacity acquired through deliberate, systematic, and sustained effort to smoothly and adaptively carryout complex activities or job functions involving ideas, things, and/or people. Shared Values is a belief that guide employees and management with their decision in the company.

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School

Chapter 2 REVIEW OF RELATED LITERATURE This chapter shows an exhaustive exposition of related literature that the researchers consulted to give support and credence to the quantitative inquiry. The researchers aim to present a thorough treatment of the problem and a better explanation of the research by exploring different viewpoints and perspectives that are anchored to customer service and the level of customers’ satisfaction in Jollibee. Concepts, findings, theories, and notions from scholarly articles that are related to the topic will be presented to provide an extensive background of the study and to justify the objective of the research in this undertaking. This also provides a synthesis of related literature which later may be confirmed, negated, or improved by the new knowledge that this study provided.

Jollibee in the Philippines According to Solee (2009), Jollibee is the number one fast food chain in the Philippines. Jollibee is the most admired, most copied, most innovative and most professionally-run company overtaking many food chain giants like Mc Donalds and Kentucky Fried Chicken. This famous food chain owned by Tony Tan Caktiong can be franchised at a cost of 25 million. Jollibee begun as an Ice Cream Parlor which later grew into an emerging global brand. Caktiong opened two Magnolia ice cream parlors named Cubao Ice Cream House located near the Coronet Theater, and Quiapo Ice Cream House. After 2 years the ice cream parlor started to offer hamburgers and chicken due to the customers demand. That is the time Caktiong decided to change his business and to have a new business name which is Jollibee which stands Jolli in Jollibee meaning to be happy and bee because bee 3is a busy creature that

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School produces honey– one of life’s sweetest things. They thought it would be a very good symbol to represent everybody. They decided they would all be very busy and happy at the same time, because if they were busy but not happy, it wouldn’t be worth it. That’s why they put the word jolly and just changed the “y” into “i” to form a brand name – JOLLIBEE. Jollibee did not take long to produce new products. In 1979 Spaghetti special is introduced and the first Jollibee franchised store was opened at Ronquillo, Sta. Cruz, Manila. In 1980, Jollibee launched its first TV commercial. Jollibee Chicken joy and French Fries are introduced, and chicken joy became best-selling item. In store promotions, novelty premium items and Kids Birthday Parties were launched year 1982. In the fast food industry Jollibee became the market leader. The company’s “Langhap-sarap” campaign in 1982 received an award as the most effective ad campaign in the food category during the 9th Philippine Advertising Congress. Tony Tan also received the Agora Award for entrepreneurship given by the Philippine Marketing Association. Jollibee Foods Corporation also included in the list of Philippine’s Top 250 Corporations. As the time goes by, Jollibee became bigger and bigger. Many awards had been given to the company and the menus on the store developed and upgraded. Now they have Chowking, Greenwich, Delifrance, and the recently acquired Red Ribbon. Greenwich pizza started as an over-the-counter pizza store at the Greenhills Shopping Center in San Juan, Metro Manila, in 1971. Based on Jollibee Foods Corporation (2017) their company has also embarked on an aggressive international expansion plan, and currently has 80 stores outside the Philippines-USA (26), Vietnam

University of Perpetual Help System Laguna - JONELTA Basic Education Department – Senior High School (32), Brunei (11), Jeddah (7), Qatar, Hong Kong, and Kuwait (1 each), firmly establishing itself as a growing international QSR player.

Customer Service According to McKinney (2017), customer service is the act of taking care of the customers need by providing and delivering professional, helpful, high quality service and assistance before, during and after the customers’ satisfaction met. Customer satisfaction is meeting the needs and desires of any customers.

Food Quality Food quality is key attribute of satisfaction of diners in restaurants (Nmakung and Jang, 2008). People mostly go to restaurants for getting food in their leisure time and quality is always a predominant factor of this. Food quality is predictor of food safety (Rijswijk and Frewer, 2008). Food quality is defined as one of the most critical constituents of a dining performance and productivity (Namkung et al., 2008). Food Quality is main factor affecting on customer loyalty, expressing customer’s perspective; a primary determinant for appealing customers and retaining them repeatedly (Jang, 2010). When it is compared with other standards as service quality or environment, food quality is the most crucial component of customer satisfaction (Sulek, 2004). According to Namkung (2007), there is a positive relationship between food quality and customer satisfaction when measuring the impact of this key term on satisfaction and behavioral intention.

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