COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116 Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
MARKETABILITY OF SELECTED CONVENIENCE STORE IN SELECTED AREAS IN QUEZON CITY AS PERCEIVED BY CUSTOMER
A thesis thesis presented presented to the faculty of College of St. Catherine Quezon City
In partial fulfillment of the Requirements for the Bachelor of Science in Business Administration Major in Marketing Management
era!"n #$ma"!a% #enni&er Pe'ra!(e) Ina Rem*i!!+ ,en'" Se%a-tian March !"#
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COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
C.a*ter / T0E PROBLEM AND ITS BACKROUND A Con$enience Con$enience store% c&store% small grocery% grocery% 'arehouse% 'arehouse% mini mar(et mar(et or corne cornerr shop) shop)sto store re is a small small store store that stoc(s stoc(s a range range of e$ery e$eryday day items items such such as grocer groceries ies%% snac( snac( foods foods%% candy candy%% soft soft drin(s drin(s%% cigarettes% ne'spaper and etc.% such stores may also offer money order and 'ire 'ire transf transfer er ser$i ser$ices ces.. In some some jurisd jurisdict iction ions% s% corne cornerr stores stores are licensed to sell alcohol% typical *eer and 'ine. +hey differ from general stores and $illage shops in that they are not in a rural location and are used as a con$enient con$enient supplement to larger store. Con$ Con$eni enient ent stores stores has has ten $ery $ery popul popular ar crime crime target target%% nota*l nota*ly y shoplifting and ro**ery. ro**ery. Con$enient store ha$e their plans on esta*lishing esta*lishing special tas( forces through the help of the authorities. In America% e$ery con$enience stores are often *een targeted through armed ro**ery. In some areas of the ,nited States% it is unusual for store cler(s to *e 'or(ing 'ith armed *ulletproof glass and 'indo's% or e$en during dayligh daylightt hours. Some con$eni con$enient ent stores stores
may e$en limit their their access access
inside inside at night night or at 'ee 'ee hours% hours% 'hich 'hich requir requires es e$ery e$ery customer customers s to appr approa oach ch thro throug ugh h a 'al(& al(&up up 'indo indo' ' for for this this situ situat atio ion n in ma(i ma(ing ng purchases. purchases. +he main dangers are that almost all con$enience con$enience stores may
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
ha$e only one person 'or(ing in night shift mode. Most of the transaction are in cash $alue and easy resold merchandise li(e liquor% lottery tic(ets% and cigarettes on the site. +he reasons for the higher rate of the crime at con$enience stores may *e attri*ute to $arious factors including% -a the small num*er of employees per store ma(es it difficult to stop or to pre$ent criminals -* the the e/te e/tend nded ed hour hours s of many many con$e con$eni nien ence ce stor stores es pres presen entt
more more
opportunities 'hen some customers and -c the smaller size ma(es it easy for criminals to quic(ly na$igate the plan and enter and e/it close to the cash regis registe terr of the stores. stores. Most Most of the con$eni con$enienc ence e store store ha$e ha$e installed security cameras to help to detect ro**eries and shoplifting. All con$enience stores ha$e a friendly relationship 'ith the local police. Since Since retai retaill lands landsca cape pe and consu consumer mers s shopp shopping ing patter pattern n are are de$eloped in nature% changing follo'ing trends are also happening around the 'orld that remains a need for studying consumer0s *eha$ior. *eha$ior. 1ith this gro'th in disposa*le incomes and impro$ing infrastructure Con$enience stores usually charge significantly higher prices than con$entional con$entional grocery stores or supermar(ets. supermar(ets. A con$enience con$enience stores order smaller quantities of in$entory at higher per&unit prices from 'holesalers *ut their products products are just just the same products in in other stores. stores. +he main
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
concern of this this study is 'hy 'hy do customers still still patronizing patronizing con$enience con$enience stores e$en the prices are more e/pensi$e and e$en they ha$e a 'ider choice choice of stores stores 'here 'here they they can choose choose to shop shop 'hich 'hich follo follo's 's the suggested retail price -SR2 on e$ery product.
STATEMENT STATEMENT OF T0E PROBLEM
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
". 1hat is the profile of the customers in terms of3 "." gender 4 ". ci$il status 4 and ".5 age 6 . 1hat is the le$el of satisfaction satisfaction of the customers in terms of4 ." accessi*ility 4 . safety 4 and .5 con$enience 6 5. 1hat are the reasons 'hy customers prefer to *uy in the con$enience store6 7. 8o' do customers percei$ed the mar(eta*ility of a con$enience store in terms of3 7." price of the product 4 7. quality of the product 4 7.5 ser$ice rendered *y the cre's to customers 6 9. 1hat are the mar(eting strategies used *y the con$enience stores6
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
ASSUMPTION +he follo'ing assumption 'ere posed for this study3 ". +here are reasons 'hy people prefer to *uy in con$enience store. . +here are different mar(eting strategies employed *y the con$enience store. 5. +he customers customers ha$e ha$e differe different nt percepti perception on on the differe different nt aspect aspect of mar(eta*ility of a con$enience store. SINIFICANCE OF T0E STUDY +his study is identified to *e *eneficial to the follo'ing3 T+ t.e &ir-t time %$-ine-- +1ner-2 +his study can help them to gain more (no'le (no'ledge dge in dealing dealing 'ith differen differentt consequ consequence ences s as they manage their *usiness. T+ t.e 3$-t+mer-2 +his study can help those 'ho are also curious a*out the mar(eta*ility and the mar(eting strategy on ho' the o'ners handle their *usiness.
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
T+ t.e t.e marketing -t$'ent-2 +his study study can can help as a reference reference and they can get information from the result of this research. +hey also get some ideas 'hich is rele$ant to their topic or study. T+ t.e &$t$re re-ear3.er-2 +hey can use this as their reference in creati creating ng their their o'n o'n resea research rch.. +his +his may conta contain in some some ideas ideas 'hich 'hich is rele$ant to their study. SCOPE AND DELIMITATION +his research 'as conducted to *e a*le to (no' the mar(eta*ility of selec selected ted con$e con$enie nience nce store store in selec selected ted areas areas in Quezo Quezon n City City. +he +he researchers conducted this study in t'o selected con$enience stores in selected areas in Quezon City City such as :o$aliches and ;air$ie'% 'hich is the <&=le$en and the Ministop 'hich operates 7 hours and < days a 'ee(. +hose *ranches 'ho are not operating 7 hours and < days a 'ee( are not included as respondent in the study.
DEFINITION OF KEY TERMS +he follo'ing terms 'ere defined 'ithin the conte/t of the study3 /2 A33e--i%i!it"
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
=/tent to 'hich a consumer consumer or or user user can can o*tain o*tain a a good or ser$ice ser$ice at at the time it is needed. 42 C+mm+'it" A reasona*ly reasona*ly interchangea*le interchangea*le good or material material%% *ought *ought and sold freely as an article article of of commerce commerce.. 52 C+n(enien3e g++'Refers to the products such as snac(s% liquors% candies% cigarettes and etc. 62 C+n(enien3e St+re Sells con$enience goods% goods % and opens opens usually usually from early hours to late at night 72 C+m*etiti(ene-+o the a*ility and performance of a firm% su*§or or country to sell and supply goods and ser$ices in a gi$en mar(et mar(et%% 82 E9trin-i3 C$e Cues e/ternal to the product% such as price% store image% or *rand image% 'hich ser$e to influence the consumer0s perception of a product0s quality.
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
7. Franchise
stores > to distri*ute goods that "n alternati$e to *uilding > chain stores> a$oids the in$estments and lia*ility of a chain. :2 Intrin-i3 C$e 2hysical characteristics of the product -such as size% color% fla$or% or aroma that ser$e to influence the consumer0s perceptions of product quality. ;2 In(ent+r" "n ite#ized $atalog or $atalog or li%t o& tangi'le good% or good% or property. property .
10. ar!e"
An actual or nominal nominal place place 'here 'here forces of demand and supply operate%% and 'here *uyers operate *uyers and and sellers interact. //2 Marketa%i!it" A measure of the a*ility of a product product to *e *ought *ought and sold sold.. 1#. ar!e"in$ S"ra"e$% "n organization(% %trategy that that $o#'in $o#'ine% e% all o& it% #ar)eting goal% into goal% into one $o#prehen%i*e plan plan..
/52 Mer3.an'i-e
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
8ousehold%% 8ousehold
personal
use%
or
commercial
goods%% 'ares% goods
commodities%% *ought commodities *ought and and sold in 'holesale and retails. /62 Retai!er" 'u%ine%% or per%on per%on th that %ell% good% to th the $on%u#er, $on%u#er, a% oppo%ed to a whole%aler or %upplier, %upplier, who nor#ally %ell their good% to another 'u%ine%%.
C.a*ter 4 REVIE, RELATED RELATED LITERATURE LITERATURE AND STUDY +his chapter aims to pro$ide literature and studies related to their researcher0s study. Boo(s% magazines% journals and e$en Internet ha$e
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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*een *een used. used. +he resea research rcher er tried tried to find find out the rele$ant rele$ant issue issues s and information necessary for the current study. study. +his section present presents s *oth foreign and local local related related literatu literatures res rele$ant to the study. +his rele$ance is sho'n *y the proponents in order to gi$e more reason and understanding of the proposition.
LITERATURE Related local and foreign literatures that are rele$ant to this study 'ere included in this chapter.
L+3a L+3a!2 !2 <&=le$ <&=le$en en is the the larges largestt con$en con$enien ience ce store store chain chain in the country.It is run *y the 2hilippine Se$en Corporation -2SC. Its first store loc located ted in Quezo uezon n City ity opene ened in "?7@. 7@. Its *ranc ranche hes s are no' appro/ima appro/imately tely "7!!. Branches Branches of Ministop Ministop operate operated d *y the Ro*inso Ro*insons ns Con$enience Stores Inc.4 and ;amily Mart operated and franchised *y the joint partnership partnership of Ayala Ayala corporation corporation and Rustans 'hich are one of the largest shopping mall operators in the 2hilippines. 1e antic anticip ipate ate this this trend trend in the con$ con$eni enien ence ce store store segme segment nt to persist persist in the ad$ent of past&pac past&paced ed and more demandin demanding g lifestyl lifestyles es of
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
consumer consumers s said ourder ourder Deocare Deocareza% za% the ne' *usiness *usiness de$elop de$elopment ment head for Eantar 1orld panel. Based on :ielsen0s shoppers trends report% as cities and ur*an cent center ers s in the the 2hil 2hilip ippi pine ne coun countr trie ies s to e/pa e/pand nd in the the ne/t ne/t "! year year%% con$enience & dri$en lifestyle 'ill 'ield a strong influence on ;ilipinos shopping ha*its and 'ay of life. +his is *ecoming a precious commodity and to cope% consumers are loo(ing and 'illing to spend for products and ser$ice 'hich pro$ide con$enie con$enience nce :a$alta said a :ielsen0 :ielsen0s s shopper shopper insights insights leader leader in the 2hilippines. Among retail channels% con$enience con$enience stores sa' the most rapid e/pansion at @F % 'ith a store count of %?!! compared to a*out "%!!! stores in !""% :ielsen reported. +here is a gro'ing num*er of con$enience stores% follo'ing their risin rising g popul populari arity ty among among consu consumer mers. s. Eey playe players rs li(e li(e <&=le$ <&=le$en en and and Ministop 'hich ha$e one to t'o chec(&out counters and are operational 7 hrs a day ha$e stimulated this solid gro'th as they ha$e started to e/pand their footprint into the pro$inces. An May*an( A+R A+R Eim =ng titled Asean corporate insight reported that 2hilippine Se$en Corporation of <&=le$en% 'ould continue to *e the
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
leader in the industry "@ outlets that deli$ered 2"<." million re$enues and 2!.# *illion sales last year -!"9. According to the 2ress release of the county0s largest largest con$enience store operator% 2hilippine se$en corporation gre' its net profit last year *y <.? percent to 2@<5.5 million on the *ac( of impro$ed operating margin and continued continued store e/pansion. e/pansion.
;or year year !"9% 2SC & +he local local license
of <&=le$en con$enience store in the 2hilippines 'ill increase its capital e/penditure *udget *y more than 9! percent to 5 *illion to support its accelerated store e/pansion strategy. +he impro$ed financial performance 'as attri*uted to the increase in sales sales of all corpora corporate te and franchise& franchise& operated operated store% store% 'hich 'hich posted posted gro't gro'th h of "?.5 "?.5 perce percent nt to 2!.# 2!.# *illion *illion at end end !"7 !"7 compa compare re to the pre$ious year. G$erall% 2SC opened @# ne' stores and closed do'n "5 stores last year. Ministop 'hich operates 7 hours and se$en days a 'ee(% 'as *rou *rough ghtt to the the 2hil 2hilip ippi pine nes s *y Ro*in o*inso sons ns Retai etaill 8old 8oldin ings gs%I %Inc nc.. in partnership 'ith Ministop Hapan and Mitsu*ishi Corporation. Its goal 'as to ans'er the needs of ;ilipinos for quality products they can get on the go.
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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;ourteen years later% Ministop has ser$ed millions of ;ilipinos as it contin continues ues to e/pan e/pand d its net'o net'or( r( of stores stores all o$er o$er the the metro% metro% ha$in ha$ing g recently cele*rated the opening of its 7!!th store at the +rion +o'ers in Bonifacio lo*al City. 7 hour chain is committed to ensuring fast and effic efficien ientt ser$ ser$ice ice at all times times in effo efforts rts to pro$i pro$ide de affo afford rda*l a*le e food food and Be$erage choices to its customer.
F+reign2
In ,nit ,nited ed Stat States es%% the the con$ con$en enie ienc nce e stor store e indu indust stry ry
continued to sho' its resilience in !"7% gro'ing steadily in num*er of retail outlets during in economy still trying to find its feet. According to !"9 and :ACS):ielsen con$enience industry store count increased from the year prior0s count of "9"%@ stores as of Decem*er 5"% !"5. +he annua annuall sur$e sur$ey y sho' sho's s that that the con$ con$eni enien ence ce retai retailin ling g indust industry ry rough roughly ly dou*led in size o$er the three decades. At At year end "?@7% the store count 'as @9%5!! store% at the year end "??7 the store count 'as ?@%!! stores and at year end !!7 the store count 'as "5@%!9 stores. According to :ielsen% con$enience con$enience store account for 55.?F of all retail outlets in the ,nited States% 'hich is significantly higher than the ,.S total of other retail channels including drugstores -7"%? stores%
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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supermar supermar(et) (et)supe supercen rcenter ter - 7"%9? 7"%9? stores stores and dollar dollar stores stores -#% -#% 9< stores. :ACS Chairman Ste$e oehr% Jice& 2resident of operation support at a Crosse% Crosse% 1is & *ased ('i( ('i( & trip said that their their continue continued d gro'th gro'th e$en during sluggish economy% sho's that our core offer of con$enience resonates more than e$er 'ith our customers% 'hether they $isit as for a fuel fill& up% quic( snac( or drin(% or stop *y four fill in groceries or healthy ta(e out meals. Among the States% +e/as continues to leadin store count 'ith "9%757 stores. +he rest of the top "! states for con$enience stores are California - ""%7!5% ;lorida -?%@"!% :e' Kor( -@% 7< % eorgia -#%<##% :or( Carolina -#.5!"% Ghio -9%95?% Michigan% -7%?!<% Illinois -7%#
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
company and ;resh mar(et -operated *y AM2M in format appealing to prosperous neigh*orhoods. 1hile in Indonesia% Con$enience stores may on4y *e *uilt usually 9!! meters from nearest traditional mar(et. In small city or rural areas% this means a smaller area are often *uilt side *y side or at ma/imum 'ithin 9! meters of each other. ocal con$enience store *rands are Indomaret and Alfamart. Both targetin targeting g all pu*lic% 'here imported imported *rands li(e <&=le$e <&=le$en% n% Circle Circle E or a's a'son on are are targ target etin ing g *ig *ig citi cities es and and cate caterr to a life lifest styl yle e more more than than con$enience. +o *e classified as a con$enience store%the store should occupy no more than "!! meters square of ser$ice area% on in some local residence% up to 9! m. Indonesian go$ernment restrict con$enience store license% so it can only *e *ought *y franchisee% franchisee% using different name and different different *rand% or classifying it as cafeteria. A con$enience store 'ith a cafeteria license is only allo'ed to sell ma/imum "! percent of its ser$ice space for non food) *e$erages product. In Hapan% the con$enience&store chains ha$e gradually increased their presence in the retail sector% they need to e$ol$e e$en further during the third phase. Demographic and social changes in japan% including an
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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aging population% an increase in the num*er of 'omen entering the 'or( force% present con$enience stores 'ith ne' opportunities. 1omen and elderly people% 'ho ha$e infrequently patronized con$enience stores to date% are no' potential ne' categories of clientele as they disco$er the con$enience of *eing a*le to do all their shopping and run all their errands 'ithin 'al(ing distance of their homes. As the total num*er of con$enience con$enience stores in japan tops 99%!!! locations% the three major con$enience&store chains ha$e *een steadily incr increa easi sing ng thei theirr net' net'or or( (
thro throug ugh h aggr aggres essi si$e $e stor store e open openin ings gs%% the the
le$eraging of their store net'or(s as infrastructure and their stores as *ases is (ey to the ne/t phase of e$olution in ne' *usiness de$elopment. In emerging emerging countri countries es centered centered on Asia% Asia% the con$eni con$enience ence store mar(et is in phase t'o of de$elopment. In countries 'here consumer spending spending is forecast forecast to increase increase accompa accompanyi nying ng economic economic gro'th% gro'th% the retail sector are also e/pected to de$elop. It is in these promising mar(ets 'here a polished *usiness model for con$enience stores originating in Hapan can gain a foothold and allo' ;amilyMart to gro'. -;amilyMart annual report% !"9. Con$enie Con$enience nce store store pro$ide pro$ide a limited limited $ariety $ariety and assortment assortment of merchandise merchandise at a con$enient location in %!!! to 5%!!! square foot stores
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
'ith fast chec(out. +hey are modern $ersion of neigh*orhood mom&and& pop grocery grocery)gen )general eral store. store. Con$en Con$enience ience stores stores ena*le ena*le consumer consumers s to ma(e purchases quic(ly% 'ithout ha$ing to search through a large store and 'ait a long chec(out line. line. G$er half the items items *ought are consumed consumed 'ithin "! minutes of purchase. Due to their small size and high sales% con$enience stores typically recei$ recei$e e deli$ deli$eri eries es e$ery e$ery day. day. Con$ Con$eni enien ence ce sores sores only only offe offerr limite limited d asso ssortme rtmen nts and $arie riety % and they char harge high highe er pric rices than supermar(ets% Mil(% eggs and *read once represented the majority of their sale sales% s% *ut *ut no' no' almo almost st all all con$ con$en enie ienc nce e stor stores es sell sell gaso gasoli line ne%% 'hic 'hich h accounts for o$er ## percent of annual sales. +he second&highest selling item i cigarettes% accounting for "7 percent of sales. Con$enie Con$enience nce stores stores also are facing facing increase increased d competit competition ion from other formats. Sales increase during periods of rising gasoline price% *ut their dependency on gasoline sales is a pro*lem *ecause gasoline sales ha$e lo' margins. In addition% supercenter and supermar(et chains are attempti attempting ng to increas increase e custome customerr store store $isits $isits *y offerin offering g gasoline gasoline and trying gasoline sales into their frequent shopper programs. Drugstores and full&line discount stores also are setting up easily accessed areas of their 'ith con$enience store merchandise.
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Telephone Telephone 330.4.3!330.36. 330.4.3!330.36.20 20
In response to these competiti$e pressures% con$enience stores are offering more fresh food and healthy fast food that appeals to today0s on&t on&the he&g &go o cons consum umer ers% s% espe especi cial ally ly 'ome 'omen n and and young oung adul adults ts.. Some Some con$enience stores are adding fast casual restaurants% li(e B20s 1ild Bean Cafe. <&=le$en is e/ploring 'ays to *ring its successful fresh&food strategy to the ,nited States.
STUDIES +he follo'ing studies are presented to pro$ide empirical support to present study. L+3a!2 a!2 A study conducted *y Eantar 1orld panel
leader in
consumer (no'ledge and insights *ased on consumer panels sho's a 79F 79F incre increase ase in con$e con$enie nience nce store store purch purchase ase from from Hanuar Hanuary y !"7 !"7 to Hanuary !"9. Eantar 'orld panel traced the shopping *eha$ior of 5%!!! ;ilipinos homes in ur*an and rural areas across the country. ;indings sho' sho' that that from from "#." "#."F F in !"7 !"7%% "@.9 "@.9F F homes omes are are no' no' *uy *uying ing in con$enience stores 'ith one to t'o chec( out counters and are optional 7 hours a day li(e <& =le$en and Ministop.
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Con$enience store channel is the fastest gro'ing retail channel in the 2hilippines at 79F follo'ed *y direct sales at 5"F and drug stores at ""F. A majority of con$enience con$enience store *uyers are from the :ational Capit Capital al Regio Region% n% South South uzon uzon%% and and Mindan Mindanao% ao% from from class classes es ABC and ,r*an households that are typically comprised older homes 'ith residents aged "5 and a*o$e. -Rappler.com% !"9 +he con$enience store sector 'ill mirror the consumer landscape in the ne/t fe' years as the country enjoys more economic de$elopment said +ara 2ra*ha(ar a +:S Asia 2acific Managing Director of Retail and Shopper. +he consumer landscape is changing. A*out
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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purchases% the personal care category e/perienced the fastest gro'th at .9F. +he study further sho's that top 7 food purchase remain the same 'ith ice cream% total mil(% snac(s and alcoholic *e$erages. F+re F+reig ign2 n2 Base Based d on the the thes thesis is pres presen ente ted d *y ee ee 1ei 1ei +ing ing of Malaysia% Malaysia% As the lifesty lifestyle le of the Malaysian Malaysian consume consumers rs *ecomes *ecomes more hectic% they demanding more con$enience&orient con$enience&oriented ed retailing to the *enefit of con$ con$eni enien ence ce stores stores.. Malay Malaysia sians ns are are incre increasi asing ngly ly s'itc s'itchin hing g their their spending patterns from traditional grocery stores to modern con$enience stores. Con$ Con$eni enienc ence e store stores s regist register ered ed strong strong gro't gro'th% h% large largely ly due due to $igorous $igorous e/pansion e/pansion of in terms of outlet outlet *y chained chained and independ independent ent play player ers% s% coup couple led d
'ith 'ith prom promot otio ions ns *y chai chaine ned d con$ con$en enie ienc nce e
stor store e
operator operators. s. Accord According ing to =uromon =uromonitor itor -!!@% -!!@% the sales sales in con$enie con$enience nce stores gre' "#@ percent *et'een !! and !!<% and it has predicted that it 'ill gro' another 99. percent in the follo'ing fi$e years. +he con$enience store mar(et is dominated *y <&=le$en% 'hich is the largest 7 hours con$enienc con$enience e store a$aila*le in Malaysia. Malaysia. It captured almost half of he con$enience store $alue share in !!<.+his is largely due to steady outlet e/pansion as 'ell as the creation of greater *rand
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a'ar a'aren enes ess s thro throug ugh h stro strong ng mar( mar(et etin ing g effo effort rts% s% such such as cont contes estt and and promotions. 8o'e$er 8o'e$er%% 1oodsid 1oodside e and +rappe +rappey y -"?? -"?? found found that consumer consumers s decide decide their primary primary store store
*ased *ased on the attri*utes attri*utes of the store. store. +hey
found that consumers could quic(ly name a store 'hen as(ed 'hat store comes to their mind for specific attri*utes such as lo'est price% or most con$enient to them. Consumers 'ill refer to shop at stores that has attri*utes that can satisfy their needs. A fe' researchers researchers found that store location plays an important part in determining the store choice -Eolodins(y and Cra'ell%!!!. ocation suggests customers0 accessi*ility to the store and includes factors such as distance % and time tra$elled to the store. It 'as found that consumers prefer to shop at stores that they ha$e easy access to and are con$enient con$enient for them -;o/ and Moschis% !!7. Satisfac Satisfaction tion is also found to influenc influence e consumer consumers s su*seque su*sequent nt *eha$iour% such as turn the consumer into a loyal% committed customer% one 'ho is 'illing to repurchase% or a customer 'ho s'itches *rands or discontinues using the product -Eotler and Eeller% !!#. Satisfaction is defined as a person0s feeling of pleasure or disappointment resulting from comparin comparing g a product0 product0s s percei$e percei$ed d performa performance nce and e/pecta e/pectation tion -Eotler -Eotler
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and Eeller% !!#. It is deri$ed from the consumers personal e/periences and and the the func functi tion on of matc matchi hing ng the the e/pe e/pect ctat atio ion n and the the perc percei ei$ $ed performance. +he relation relationship ship *et'ee *et'een n store store attri*ut attri*utes% es% customer customer satisfact satisfaction ion and store loyalty is included. According to the study numerous research has has *een *een
cond conduc ucte ted d to e/am e/amin ine e the the impa impact ct of stor store e attr attri* i*ut utes es on
customer customer loyalty -:guyen% -:guyen%!!< !!<.. Most of the studies found that store attri* attri*ute utes s ha$e ha$e a impact impact on store store loyalt loyalty y. It is found found that that the loyalt loyalty y to'ards the store is affected *y the consumer0s store e/perience 'ith the characteristics of the store. In other 'ords it is important for the shopper to notice and pay attention to the attri*utes% in order to influence their su*sequent *eha$iour such as re&patronage *eha$iour. Although most of the pre$ious studies in$estigated the relationship of store store attri attri*u *utes tes and custom customer er loyalt loyalty y in a retai retaill settin setting% g% 'est* 'est*roo roo( ( -"?@" studied the effect of store attri*utes from a different perspecti$e. 1est*roo( e/amined the relationship of store attri*utes and customer satisfac satisfaction tion is directly directly affected affected their in
store store e/perie e/perience nce 'ith the store
characteristics. According
to
Bianchi
!!?%
con$enience con$enience
store
-C&stores -C&stores
consti constitut tute e a succes successfu sfull formal formal in de$elo de$elope ped d mar(e mar(ett such such as the the ,.S% ,.S%
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Canada and Hapan. As an e/ample% <&=le$en *ecame the largest 'orld 'ide con$enience store chain in March !!<% operating 57%!!! stores in "< countries% e$en larger than the 'orld 'ide num*er of Mcdonald0s Mcdonald0s store - 2lanet retail% !!<. Gnly a fe' studies studies of con$enie con$enience nce store store -c& stores stores are found in the literature and and they ha$e all *een held in a de$eloped de$eloped mar(et conte/t -ass(% !!!4 Rapp and Islam% !!# 4 Spar(s% !!! 4 Suiton anf Rafaeli "?@@ 4 1elsh et al.% !!5 4 1orthington% "?@? +hese studies sho' that con$ con$en enie ienc nce e stor store e attr attri* i*ut utes es for for cons consum umer ers s are are loca locati tion on%% prod produc uctt assortment% (no'ledge (no'ledge of sales associates% associates% speed speed chec( out% out% ser$ice% store layout% and par(ing. Most Most of the the stud studie ies s focu focus s on the the con$ con$en enie ienc nce e orie orient ntat atio ion n of consumers - Anderson% "?<%"?<" 4 Bro'n%"?@? 4 Buc(lin% "?#5 4 ross and Sheth% "?@? 4 Eellie% "?9@ 4 Morganos(y% "?@# 4 :ic(ols and ;o/% "?@5 4 Reily% "?@ 4 Kale and Jen(atesh% "?@# . +hese studies $ie' con$enience as anything that helps the consumer to reduce its time and effort during their shopping process%*ut are mostly focus on the product mar(et. Although studies on con$enience con$enience store are poor% poor% there is a large amount amount of studies studies that address consumer consumer store store patrona patronage% ge% and store
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choice in the retailing literature - See 2an and in(han% !!#. +hese studies suggest that se$eral attri*utes affect consumers references and e/pecta e/pectation tions s of retail retail store% store% such such assortme assortment% nt% ser$ice% ser$ice% product product quality quality%% store atmosphere% store location% price le$el% chec( & out speed% hours of operation% friendliness of sales people% and par(ing facilities. In a retailing conte/t% although % there is no one clear definition of a con$enience store for the purpose of these paper 'e 'ill define it as a small% centrally located store% featuring ease of access% late & night hours% and a limite limited d line line of merchan merchandis dise e
and and dot charge charges s a*o$ a*o$e e & a$era a$erage ge
process compared to a large supermar(ets that generates large $olume sales. -Bianchi% !!? Gnly Gnly a limi limite ted d num* num*er er of acad academ emic ic pape papers rs ha$e ha$e spec specif ific ical ally ly in$estigated the C & store industry.
IMPORTANCE IMPORTANCE OF RELATED RELATED LITERATURE LITERATURE AND STUDIES REVIE,ED REVIE, ED TO T0E PRESENT STUDY Consu Consumer mer al'ays al'ays prefe preferr to *uy in store store 'here 'here they they can can sa$e sa$e money and satisfy themsel$es. But the con$enience stores are a good e/ample that lo'est price is not the only reason)factor that could in$ite
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consumers to enter the store. Con$enience store sector is increasing its industry as 'ell its competition from other formats. +hose +hose relate related d litera literatur tures es and studie studies s helpe helped d the resear research cher er to further their (no'ledge a*out the con$enience store sector% it helps the researcher to (no' and understand 'ho are the daily consumers% their demographics such as gender and age. :o'adays% the con$enience store channel is the fastest gro'ing retail channel in the 2hilippines% coming to other retail channel 'hich is the direct sales and drug store. It gi$es a discernment into the real situation of con$enience store.
T0EORETICAL
Cu%to#er "ttention
+ar)eting
Cue Sele$tion and
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Cu%to#er
/rodu$t
/rodu$t
/rodu$t i%)
Beliefs perien$e%
and 2erception
Sati%ed 2rocessing cues 2urchase Intention And Beliefs
i%%ati%ed
T.e+reti3a! Frame1+rk
Sele$ting o& e%pondent%
e#ographi$ /role
e*el o& Sati%&a$tion
ea%on% why $u%to#er% pre&er to 'uy in
+ar)eting Strategie% u%ed 'y
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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Condu$ting o& Sur*ey 'y #ean% o&
ata "naly%i% and nterpretation nterpretation
tilization o& the 5inding% a'out The +ar)eta'ility o& Sele$ted Con*enien$e Store in Sele$ted "rea% in Quezon City a% /er$ei*ed the Cu%to#er7
Re-ear3. Para'igm
C.a*ter 5 MET0ODS OF RESEARC0 +his +his cha chapt pter er co$ co$er ers s rese resear arch ch des desig ign% n% the the res respo pond nden ent% t% the the researcher instrument% the procedure and the processing of data of the study.
COLLEGE OF ST. CATHERINE QUEZON CITY 362 Quirino Hi-way, Sangandaan, Sangandaan, Quezon City 1116
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RESEARC0 DESIN USED +he descripti$e method of research 'as 'as used in this study . +his is designe designed d
to in$estigat in$estigate e and to gather gather information information.. Descript Descripti$e i$e sur$ey sur$ey
method method see(s see(s to ascert ascertain ain respon responden dents ts e/per e/perie ience nces s on a speci specifie fied d su*ject. su*ject. It aims to descri*e descri*e the mar(eta* mar(eta*ility ility of selected selected con$enienc con$enience e store in selected areas in Quezon city. 1e ha$e constructed a research strategy 'hich is customized to thesis purpose. A researcher of the con$enience store is chosen as an inter$ie' in *usiness of this research. +his methods are employed from $arious sources of data to ensure the $alidity instrument of the research. +he sources of data include the chosen firm0s representati$es% <&=le$en and Ministop% including the staff. Additionally Additionally%% 'e conduct the inter$ie' 'ith other mem*ers such as con$enie con$enience nce store store supplier supplier and company company that pro$ide pro$ide transpo transportat rtation ion ser$ices to the store. +he inter$ie' is conducted to gain more mar(et en$ironment and trend of the industry. RESPONDENTS OF T0E STUDY
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+he respondents of this study include "!! customers% fifty percent are are from from <&=l <&=le$ e$en en and and the the rema remain inin ing g 9! perc percen entt are are from from Mini Minist stop op con$enience store 'ithin Quezon City. +he Respondents must *e ages "5 years old and a*o$e.
T0E RESEARC0 INSTRUMENT +he research instrument used in this study 'as a questionnaire. Q$e-ti+nnaire .+he .+he rese resear arch cher ers s inst instru rume ment nt ha$ ha$e one one set set of questionnaire. questionnaire. +his set is for the customers of *oth <&=le$en and Ministop con$enience store open 7 hours and < days that is chosen to conduct. It is consist of se$eral questions in$ol$e the customer0s perception a*out the mar(eta*ility of con$enience store in terms of their price% location and ser$ice rendered *y the cre's. +he researcher used the questionnaire as their major tool in the collec collectio tion n of the data data needed needed to compl complet ete e the study study.. +he +he resea research rcher er prepared their o'n questionnaire as the main instrument for gathering data from the su*ject. As an outcome of the researcher% researcher% some of the statements statements 'ere amended and impro$ed. +he modified $ersions of questionnaires 'ere
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finally administered on the respondents. +he final questionnaire used for data collection for the study 'as structured in fi$e parts. 2art 2art I are are cont contai aine ned d *y demo demogr grap aphi hic c char charac acte teri rist stic ics s of the the respondents -age% gender% and ci$il status and the first question is a*out to o*tain the information of the le$el of satisfaction satisfaction of a con$enience con$enience and . 2art II comprised of statements to identified the reason 'hy you preferred to *uy in con$e con$enie nience nce store store.. 2art 2art III includ included ed statem statement ents s on ho' to perce percei$e i$ed d the mar(et mar(eta* a*ili ility ty of a c&stor c&store% e% in terms terms of price price%% quali quality ty of prod produc uctt and and ser$ ser$ic ice e rend render ered ed *y the the cre' cre's. s. 2art 2art IJ comp compri rise sed d of statement to the mar(et strategies used in c&store. +he +he ques questi tion onna nair ire e 'as comp compli lied ed and and disc discus usse ses s 'ith ith the the rese resear arch cher er0s 0s to the the pers person on 'ho 'ho ans' ans'er er the the ques questi tion onna nair ire. e. =ach =ach researc researcher her enters enters his)her his)her respons responses es on the question questionnair naire% e% sa$ing sa$ing the researcher0s time% compared to the time required to conduct personal inter$ie's. It is less e/pensi$e that conducting personal inter$ie's. +he resp respo onden ndents ts fee feel that that they they rema remain in anon anony ymous mous and and can can e/pr e/pres ess s them themse sel$ l$es es
in thei theirr o'n o'n 'ord 'ords s 'ith 'ithou outt fear fear of iden identi tifi fica cati tion on.. +he +he
questionnaire may *e collected after 5! minutes and the format is *ased on the statement of the pro*lem in chapter ".
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C+n-tr$3ti+n2 +he set of questions that the researchers researchers used 'ere *ased on the statement of the pro*lem. +he researchers presented their questi questionn onnair aire e to their their thesis thesis ad$ise ad$iserr after after prese presenti nting ng the the draft draft of the ques questi tion onna nair ires es%% thei theirr ad$i ad$ise serr ga$e ga$e them them sugg sugges esti tion ons s so that that the the respondents can easily understand all the contents of the questionnaire.
VALIDAT VALIDATION ION OF T0E INSTRUMENT Before the Researcher distri*uted the Sur$ey questionnaire to the respondents. +he Researchers ga$e it to the thesis professor to chec( it and correct the grammar of each question. +he researcher also tested their questionnaire to "! consumer of *oth con$enience store and after that the researcher researcher as(ed the respondents respondents to (no' their their reaction a*out a*out the questionnaire. +heir comments and suggestions 'ere considered for further enhancement.
ADMINISTRATION AND RETRIEVAL +he Researcher distri*uted Sur$ey questionnaire in selected areas in Quezon City in the month of NNNNNNNNNNNNNNNN.
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After thirty minutes minutes the questionnaire questionnaire 'ere 'ere personally personally retrie$ed retrie$ed *y the researchers.
AT0ERI AT0ERIN N DATA DATA +he first thing researchers did is to as( permission from the Ad$iser to cond conduc uctt the the sur$ sur$ey ey.. +he +he ques questi tion onna nair ire e 'as 'as dist distri ri*u *ute ted d to the the respondents 'ho are all $ery much informed for the use of the study so that they can ans'er the questions assuredly. +he research 'as re$ie'ed from the theses of other researchers *efore% from 'e*sites on the internet and from journals% *oo(s and entrepreneur magazines.
STATISTICAL TEC0NIQUE ". +he researcher used percentage as statistical technique technique in the analysis and interpretation of the data gathering. 2ercentage frequency formula is as follo's4 F+rm$!a=m
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f N
∙
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2 O / "!! 1hereas% 2 O 2ercentage ; O ;requency : O :o. Gf respondents . +he researc researcher her also used used ran(in ran(ing g as statis statistic tical al techni technique que in the analysis and interpretation of the data gathered. Ran(ing formula is as follo's4 Rank > +he sum of the ran(s e$eryday :um*er of the respondents
5. 1eighted Mean +he ans'ers 'ere *ased on a four&point scale 'ith the corresponding descriptions. ;ormula3
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fx ∑ X N
∙
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1here4
P & the 'eighted mean
f & the frequency of response in each question
' & 'eighted assigned to each response
: & total num*er of cases
∙