Jco Group Thesis_final

UNIVERSITY OF SANTO TOMAS

Faculty of Arts and Letters University of Santo Tomas

ATTITUDE TOWARDS CUSTOMER QUEUE IN JCO. DONUT STORES AND ITS RELATION TO IMPULSE BUYING

A Thesis Presented to the Department of Interdisciplinary Studies of the Faculty of Arts and Letters

In Partial Fulfillment Of the Requirements for the degree Bachelor of Arts in Legal Managment

by

Guzman, Chairmaine A. Landayan, Emmanuel A. Pastrana, Mae Sharmane S. Perez, Kristine Keryn U. 4LM2

February 2014

1


ABSTRACT

The long customer queues that can be seen in J.Co Donuts stores in Metro Manila have been evident these past few years. J.Co Donuts surprisingly retained these queues that made the researchers curious on what makes the consumers be willing to fall in line for at least an hour to purchase the said donuts. True enough, data gathered reveal that the customer queue that can be seen in the said stores is indeed a stimulus to attract, entice and invite consumers to engage in impulse buying behavior and later on derives satisfaction that makes the consumers buy again.

This study aims to test the relationship between customer queue and impulse buying that would result to repurchase incidence. The attitude of the consumer that covers the three domains of behavior namely, cognitive, affective and psychomotor was correlated with impulse buying and later on to its after-purchase satisfaction.

Findings indicate that when consumers see long customer queue in a particular store, it makes them curious about the product and so they will join the queue. Hence, it is a factor that results to impulse buying. Thus, the study recommends the entrepreneurs to come up with the same strategy that may help them raise their sales.

Key words: Customer queue; Impulse buying; After-purchase satisfaction;

Buying Behavior

2


ABSTRACT

The long customer queues that can be seen in J.Co Donuts stores in Metro Manila have been evident these past few years. J.Co Donuts surprisingly retained these queues that made the researchers curious on what makes the consumers be willing to fall in line for at least an hour to purchase the said donuts. True enough, data gathered reveal that the customer queue that can be seen in the said stores is indeed a stimulus to attract, entice and invite consumers to engage in impulse buying behavior and later on derives satisfaction that makes the consumers buy again.

This study aims to test the relationship between customer queue and impulse buying that would result to repurchase incidence. The attitude of the consumer that covers the three domains of behavior namely, cognitive, affective and psychomotor was correlated with impulse buying and later on to its after-purchase satisfaction.

Findings indicate that when consumers see long customer queue in a particular store, it makes them curious about the product and so they will join the queue. Hence, it is a factor that results to impulse buying. Thus, the study recommends the entrepreneurs to come up with the same strategy that may help them raise their sales.

Key words: Customer queue; Impulse buying; After-purchase satisfaction;

Buying Behavior

2


ACKNOWLEDGMENTS

We would like to extend our warmest gratitude to our thesis adviser, Prof. Jose Arsenio Salandanan of the Media Studies for his unconditional support and guidance throughout this project to extract the good ideas from the group and come up with a commendable study. Also, we would like to thank Atty. Antonio M. Chua and Prof. Gian Carlo Ledesma for extending their views, insights and advises leading us to a

clearer and better path of success, and to our thesis statistician, Ms. Angelica Fabillar for helping us in the results, data analysis and

interpretation interpretation of this study.

We would like to thank all the respondents who religiously participated in our survey, our classmates and friends who supported and gave advises and ideas for the better and faster progress of our study, to our family and friends who extended their unending support, love and understanding, giving us hope and making ourselves believe that we can do anything well. And above all, the good Lord for giving us the strength and inspiration to finish this study with success and achievement.

To God be the Glory!

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TABLE OF CONTENTS

Page Abstract of the Study

i

Acknowledgment

ii

Table of Contents

iii

List of Tables

v

1.0 The Problem: Rational and Background

1

1.1 Introduction

1

1.2 Statement of the Problem

7

1.4 Research Objectives

8

1.5 Hypothesis

9

1.6 Theoretical Framework

10

1.7 Conceptual Framework

12

1.8 Significance of the Study

13

19 Scope and Limitations

14

1.10 Definition of Terms

14

1.11 Organization and Coverage of the Study

17

2.0 Literature Review

19

Buying Behavior

19

Domains of Behavior

21

Impulse Buying

22

Stimulus

24

Customer Queue

25

Conformity

26


5

Customer Satisfaction

29

Synthesis of the Study

30

3.0 The Research Methods

33

3.1 Research Design

33

3.2 Determination of Sample Size

33

3.3 Sampling Design and Technique

34

3.4 The Subjects

34

3.5 The Research Instrument

35

3.6 Validation of Instrument

36

3.7 Data Gathering Procedure

37

3.8 Data Processing Method

39

3.9 Statistical Treatment

39

4.0 Discussion/Results

43

5.0 Conclusions and Recommendations

68

Bibliography

72

Curriculum Vitae

76

APPENDICES:

Appendix I – Questionnaire

79

Appendix II - Time frame

82

Appendix III - Budgetary Requirements

84


LIST OF TABLES:

Table 3.1 Distribution of Subjects ………………………………………….. 35 Table 3.2 Reliability Test of the Questionnaire …………………………... 37 Table 3.3 Interpretation of the Weighted Mean …………………………... 40 Table 3.4 Interpretation of the Degree of Correlation ……………….…… 41 Table 4.1 Civil Status of the Respondents ………………………..………. 46 Table 4.2 Monthly Incomes of the Employed Respond ents ……….……. 47

Table 4.3 Daily Allowances for Student Respondents …..………………. 48 Table 4.4 How Often the Respondents go to Malls …….………………... 49 Table 4.5 Frequency of the Branches …………….………...…………….. 50 Table 4.6 Sources where the Respondents First Got

the Knowledge about J. Co. Doughnuts………....………… 51 Table 4.7 Mean Results and Interpretation of the

Domains Attitude Responses ………………………………. 57 Table 4.8 Impulsivity of the Respondents ………………………………… 60 Table 4.9 Correlation between Attitude Towards Custo mer Queue and Impulse Buying ………………….…. 61 Table 4.10 Mean Results and Interpretation of After-Purchase Satisfaction ………………………………… 63 Table 4.11 Correlation between the Impulse buying behavior of the consumers and After- Purchase Satisfaction……….……... 6 4

LIST OF FIGURES:

Fig. 1.1 The Mehrabian- Russell Theory Model …………………………... 11

Fig. 1.2 Conceptual Framework ……………………………………….…… 12

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Fig. 4.1 Pie Chart of Gender Distribution of Sample …………………….. 44 Fig. 4.2 Bar Graph of Age Distribution of Sample …………………………45 Fig. 4.3 Pie Chart of Civil Status of Sample …………………………….… 46 Fig. 4.4 Pie Chart of How Often Respondents go to Malls ……………… 49 Fig. 4.5 Bar Chart of How Stimulus Affects the

Three Domains of Behavior …………………………..……. 59

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CHAPTER 1 THE PROBLEM AND ITS SETTING

1.1.

Introduction

When consumers go to the mall, most of them carry a shopping list or have the things they want to buy in mind. However, they tend to include products not intended to be purchased, thus resulting to impulse buying. Nowadays, consumer impulsive purchase behavior is the topic of studies of many researchers from different fields of study.

Researchers abroad for the past 60 years have been very concerned on defining impulse buying; however they failed to arrive of a universal definition of the same. Piron (1991) attempted to define impulse buying by reviewing the past research works and found that earlier studies revealed impulse buying to be very similar to unplanned purchasing (Clover 1950, West 1951). Rook and Gardner (1993) defined it as an unplanned behavior involving quick decision-making and tendency for immediate acquisition of a product. Nevertheless, other studies suggest that impulse buying is but a result of many underlying factors that influenced the buyer himself.

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Factors that influence impulse buying range from situational to behavioral and psychological factors. Situational factors include store environment, perceived crowding and time pressure (Graa & Dani-elKebir, 2011); Stern (1962) revealed that purchase of any product involves two types of decision-making: planned, which is time-consuming and impulse buying that requires no prior planning. During shopping, products which generate an immediate urge to be bought, falls under impulse buying (Hausman, 2000).

Another study reveals that during impulse purchases, consumers experience a stronger inclination towards the product as they follow their own intuition (Gardner and Rook. 1988). People are triggered by a stimulus that makes them buy something that they did not really plan to get. One example of an environmental factor that serves as a stimulus is customer queue which is further explained in a study conducted by Smith (2009) and Wood & Wood (2004). According to Senthil Veeraraghavan, customer queues may be generated by randomness of either by customer arrival process or by the service provision process. Moreover, customer queues may provide an indication that several customers chose that particular service perhaps because of its perceived superior value compared to the other server. Consumers tend to conform to the

9


evaluation of others on a product (Lascu & Zinkhan, 1999) and they tend to put importance to the thoughts and reactions of others in choosing or deciding what to buy (Calder & Burnkrant, 1977; Lee & Park, 2008). Hence, long customer queue maybe created by chance, and possible of triggering other customers to join the same queue.

Mehrabian-Russell Theory explains the relationship between the environment and the behavioral response of a person. It posits that the actions of a person are influenced by the some situational factors. Customer queue, being an environmental state may stimulate and arouse a person to react in response to the situation (Graa & Dani-elKebir, 2011). Many researchers have proven that impulse purchases are due to a stimulus. Customer queue may have a negative or positive effect to the sales of an establishment. It may either attract or detract customers to purchase ones product (Senthil Veeraraghavan).

Waiting in line may result to loss of revenue as it causes tension between customers and businesses. Fedex advertisement, states that

―Waiting is frustrating, demoralizing, agonizing, aggravating, annoying, time consuming and incredibly expensive‖. However, it is seen that J.Co Donuts stores in the Philippines significantly have unending customer queues during their business hours. A research conducted in Taiwan

10


concluded, that the more people behind a consumer gives a perception that the product is of good value (TOPCO, 2012). This is further strengthened by the study of Veeraraghan & Debo (2009) stating that, consumer would strictly prefer to join longer queues. Fishbach & Koo (2010) found that, the value of the product increases as the consumers put attention to the presence of others behind. However, length of queues has no effect to consumers who are practical or who consider the prices and they are less likely to leave the line (Lu, Musalem, Olivares, & Schilkrut, 2012).

Filipinos nowadays have the habit of spending much money in shopping rather than saving, which results to incidents of impulse buying (Philippines Today, 2013). Filipinos engage themselves to frequent shopping trips that led to 8% increase of spending on food due largely to impulse buying

in 2012 (GMA Network Inc., 2013). Ang Pinaka, a

segment in GMA News TV, labeled J.Co Donuts as number 2 top food craze in 2013.

Addressing the increased incidents of impulse buying by Filipinos and the craze that drives long lines to J.Co Donuts stores, one consumer said, “Tag first time nga nagbakae ako it J.Co Donuts, nagbakae ako dahil sa na-curious ako sa mahabang pila nga nakita ko. Maski two hours ako

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nagpila, nasatisfy man gihapon ako dahil manami man do donut. Nagbakae man gihapon ako it uman maski sayud ko nga mabuhayan ako sa pila” (The first time I bought J.Co Donuts was because I got curious of

the long queue I saw. Although I waited for two hours, I got satisfied because the donuts tasted good. I still purchased again despite the fact that it takes a lot of time before actually acquiring the donut.) (Insauriga, 2013). With this, we can infer that long customer queue can persuade impulse buying despite the fact that it may take time for a customer to purchase the product and satisfaction can be derived after an unplanned purchase.

A research conducted in India states that ―Satisfaction is primarily an

emotional

customer-centered

personal

response

or

reaction

(M.S.Sridhar, 2001). Satisfaction is defined as the evaluation of the perceived discrepancy between prior expectations and the actual performance of the product (Tse & Wilton, 1988). It is said to be established when the brand fulfills the needs and desires of the consumer (Hanif, Hafeez, & Riaz, 2010).

In prior research in consumer psychology, it has been shown that consumers exhibit natural consumption tendencies for both unhealthy and healthy foods. Researchers have found systematic evidence suggesting


that people operate under the implicit intuition that ―unhealthy food = tasty‖ (Raghunathan, Naylor and Hoyer 2006, p.170). Furthermore, the founder

of J.Co Donuts stated that ―The Philippines and Indonesia are very close (in culture). Filipinos love to eat sweets. The Philippines is our best market

after Indonesia.‖ (BizNews Asia, 2013). We c an infer that Filipinos patronizes such product because of the implicit intuition ―unhealthy food = tasty‖. Due to the high consumption of such product, it increases demand, incidents of impulse purchase and long customer queue in J.Co Donuts stores.

J.Co Donuts is the fastest growing donut and coffee chain in Indonesia. They have rapidly expand their chain in Malaysia, Singapore, Shanghai (China), and the Philippines. Within 8 years of operation in South East Asia, J.Co Donuts has grown its chain to 135 stores in Indonesia, 14 stores in Malaysia, 13 stores in the Philippines and 4 stores in Singapore. This brand has penetrated successfully into the local market, dominated the market and business of donuts in Indonesia against Krispy Kreme and Dunkin Donuts and hitched into the market leader in Indonesia and the Philippines. J.Co Donuts entered the Philippine market and opened its first branch in SM Megamall on March 15, 2012.

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The researchers would like to explore impulse buying tendency and its relation to customer queue, given the situation in J.Co Donut stores, or is of the other way around in Manila where there is always long line of people waiting.

In this light, impulse buying purchases are likely to

happen.

1.2.

Statement of the Problem

A queue is but a study of organizations of store to attract attention to the consumers, but what is really the attitude of the consumers towards customer queue, how does this affects the three domains of behavior?

The main schema of this study is to correlate between the attitude towards customer queue and impulse buying incidents in J.Co Donuts stores in Manila. Specifically, this research shall resolve the issues on What the attitude of the consumers toward customer queue in J.Co Donut stores really is, How does the customer queue in J.Co Donut stores affects the 3 domains of behavior (Affective, Cognitive, Psychomotor), What is the relationship between the attitude towards customer queue and impulse buying of customers in J.Co Donut stores in Manila and What would the customer feel after engaging in impulse buying due to customer queue in J.Co Donuts stores.

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1.3.

Research Objectives

1. To determine the attitude of the consumers towards customer queue in J.co Donut stores to cover the following dimensions: a. Cognitive b. Affective c. Psychomotor

2. To correlate the attitude towards customer queue and impulse buying of customers in J.CO Donut stores in Metro Manila.

3. To determine the after-purchase satisfaction of customers who bought J.CO donuts out of impulse.

1.4

Hypothesis

In the hypothesized model, customer queue in J. Co Donuts is the independent variable. The attitude towards customer queue resulting to impulse buying is the dependent variable. The affective, cognitive, and psychomotor are the domains of behavior of a consumer towards the

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engagement in impulse buying. Based on the foregoing problems, the proponents present the following null hypothesis:

H o 1 : C o n s u m e r s h a v e a n e g a t iv e a t t i tu d e t o w a r d s c u s t o m e r queue in J.co Donu t stores. Ho2:

Customer

queue

in

J.Co

Donuts

stores

does

not

significantly affect the cognitive dimension of attitude. Ho3:

Customer

queue

in

J.Co

Donuts

stores

does

not

significantly affect the affective dimension of attitude. Ho4:

Customer

queue

in

J.Co

Donuts

stores

does

not

s i g n i f i c a n t l y a f f ec t t h e p s y c h o m o t o r d i m e n s i o n o f a t t i t u d e . H o 5 : Th e r e i s n o r e l a t io n s h i p b e t w e e n t h e C o g n i t i v e d i m e n s i o n of attitude and Impulse Buy ing. H o 6 : T h e r e i s n o r e la t i o n s h i p b e t w e en t h e A f f e c t i v e d i m e n s i o n of attitude and Impulse Buy ing. Ho7:

There

is

no

relationship

between

the

Psychomotor

d i m e n s i o n o f a t t i t u d e a n d Im p u l s e B u y i n g . Ho8: The customer would feel regretful after engaging in i m p u l s e b u y i n g d u e to c u s t o m e r q u e u e i n J .c o D o n u t s t o r e s .


1.5

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Theoretical Framework

This study rest on the Mehrabian-Russell Theory that proposes an environmental psychology approach. According to the theory, emotional reaction is generated by the impact of a certain situation which then turns to a behavioral response. It further argues that emotional responses of an individual may be changed by the surroundings (Huang & Hsieh, 2006).

Emotional

state

intercedes

the

relationship

between

the

environment and a person, which makes the physical environment to

influence a person‘s behavioral response (Lee). The theory falls on three dimensions namely, pleasure, arousal, dominance and; these represent all of the diverse human emotional reactions to environments. Pleasure is a composite feeling such as happiness, contentment and satisfaction that a person experiences as an emotional reaction to the environmental stimuli (Graa & Dani-elKebir, 2011).

Graa & Dani-elKebir also define arousal as a state of being alert or stimulated to act in response to what one sees one can also feel excited.

Furthermore, it is also the ―combination of mental alertness and physical activity which a person feels in response to some stimulus‖ (Kulviwat,


Bruner II, Kumar, Nasco, & Clark, 2007). Moreover, dominance is the extent to which an individual is controlled or overpowered by the surrounding. The higher the level of dominance, the more malleable the person is (Graa & Dani-elKebir, 2011).

In this study, customer queue serves as the environmental stimulus

that would influence a person‘s behavior which results to an incident of impulse. The dimensions specifically, arousal, dominance and pleasure will serve as the emotional reaction of a person in response to the queue they see. These dimensions will then result to the occurrence of impulse buying.

The diagram of the process of Mehrabian-Russell Theory is

shown in Figure 2.

(Graa & Dani-elKebir, 2011)

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1.6

Conceptual Framework

Figure 1 presents the conceptual framework that will be used in the process of developing Impulse Buying incidents in response to customer queue.

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1.7 Significance of the Study

The study of customer queue as a stimulus for impulse buying can contribute to the analysis of J.Co Donuts stores if having long customer queue would be a competitive advantage or deterrent to the success of the business.

Furthermore, it can contribute a lot to the researchers in the fields of Marketing and Management. It can serve as reference material to further improve the studies relating to marketing and management concerning impulse buying, buying behavior and the like. It can also help marketers create promotional strategies such as the use of stimuli, specifically, customer queue, to induce impulse purchases especially to newly introduced product such as J.Co Donuts, to boost their competitive advantage, to increase sales and to enlarge their market share.

Stimuli in businesses can attract more first-time and non-first time buyers if seen and effectively activated. Moreover, this can also serve as a foundation that would broaden specific researches that would help them in their studies regarding the improvement of their business and

management. The thesis‘ goal is to prove that customer queue can also

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be a part of promoting a product that leaves an idea to people that the product has good reputation, thus the bandwagon.

1.8

Scope and Limitations of the Study

The study will be limited only to correlation of the attitude towards customer queue and impulse buying incidents in J.Co Donuts stores in Manila. The research shall evolve in the domains of behavior namely, affective, cognitive, and psychomotor. Also, repurchase incidence shall be tackled; in this study, it signifies that the customer derives satisfaction after buying out of impulse. Customers of J. CO Donuts who actually experienced falling in line in a customer queue of the said establishment will be the subjects of the research. It is noted that this study applies only to the long customer queue in J.Co Donuts stores and not customer queue in general.

1.9

Definition of Terms

AFFECTIVE. How a person would feel in response to a thing. AROUSAL. To stimulate to action or to physiological readiness for

activity.

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ATTITUDE (Behavior). The emotional reaction that a person experiences

in response to the environmental stimuli. BANDWAGON. A current fashionable trend BUYING BEHAVIOR. The process wherein individuals search for, select,

use, and dispose goods and services for the satisfaction of their needs and wants. COGNITION. Knowing, perceiving or conceiving as an act or faculty

distinct from emotion and volition. COGNITIVE. What a person thinks or knows about a certain thing. It is

also the stage where a person in aroused by a stimulus. COMPETITIVE ADVANTAGE.

An advantage that a firm

has over

its competitors CURIOSITY. Desire to know or learn something. CUSTOMER QUEUE. Line of people waiting at the counter. DOMINANCE. When an individual is controlled or overpowered by the

surrounding. EMOTIONAL STATE. The state of a person's emotions especially with

regard to pleasure or rejection. IMPULSE. The act of driving onward with sudden force. IMPULSE BUYING. An unplanned purchase accompanied by heightened

emotion with no or minimal deliberation.


INTUITION. The power or faculty of attaining to direct knowledge or

cognition without evident rational thought and inference. MARKETING PARADIGM. A paradigm in the field of marketing or related

to marketing. MARKETING STRATEGY. A process that allows an organization to

concentrate its resources to achieve competitive advantage. MINDSET. A fixed mental attitude or disposition that predetermines a

person's responses to and interpretations of situations. PERCEPTION. The way one thinks about or understands someone or

something. PLEASURE. Composite feeling such as happiness, contentment and

satisfaction. PREFERENCE. The act, fact, or principle of giving advantages to some

over others. PSYCHOMOTOR. How a person would react in response. It is also the

dominance stage. SATISFACTION. The source or means of enjoyment. STIMULUS. Something that arouses or incites to activity. STRATEGY. A clever plan or method. TREND. To extend in a general direction/ follow a general course. TRIMEDIA – Refers to Television, Radio and newspapers.

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1.10

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GENERAL ORGANIZATION AND COVERAGE OF THE STUDY

Chapter 1 of this study dealt with the problem: rational and background, statement of the problem, research objectives, hypothesis, theoretical framework, conceptual framework, significance of the study, definition of terms, and general organization and coverage of the study.

Chapter 2 presents the review of related literature both local and international. This includes topics relating to Buying Behavior, Impulse Buying, Stimulus, Queue, Conformity and Satisfaction.

Chapter

3

explains

the

research

methodology,

research

design,

determination of sample size, sampling design and technique, the subjects, the research instrument, validation of the research instrument, data gathering procedure, data processing method, and statistical treatment.

Chapter 4 includes the discussion of the results, analysis and interpretation of the correlation between the attitude toward customer queue and impulse buying in J. Co Donut stores in Manila.


Chapter 5 is comprised of the summary of findings, conclusions and recommendations based on the findings of the study.

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CHAPTER 2 THE LITERATURE REVIEW

BUYING BEHAVIOR OF THE CONSUMERS

Understanding consumer buying behavior is essential to the successful management of the marketing mix and the building of longterm, profitable customer relationships. It is, after all, consumers who make up markets. In order to offer the right consumers the right products at the right time, providers of products and services need to understand their preferences, prejudices, motivations and buying habits. They need to appreciate that every purchase decision is a choice decision and that it encompasses a wide variety of factors. In trying to comprehend why people buy what they buy, marketers have to make judgments about the

importance they ascribe to consumers‘ expressed beliefs about certain products and services.

The researchers summarized some of the articles that provide

factors which affect customer‘s buying behavior. These factors are advertising, social class and global brands or international reputation.

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Advertising is a form of communication intended to convince an audience (viewers, readers or listeners) to purchase or take some action upon products, information, or services etc. The major findings of the study demonstrated an overall normal association between the variables but in-depth analysis found that emotional response of consumer purchase behavior is the variable that results into strong association with the consumer buying behavior. It is true that people purchase those brands with which they are emotionally attached. (Zain-Ul Abideen, 2011)

Schaninger (1981) on the other hand conducted a research which includes social class standing as a factor to buying behavior. He came to the following conclusions: (1) Income is more important than social class in explaining the consumption of low social value products and services that are not related to class symbols, but require substantial expenditures. Income also better determines the purchase frequency for soft drinks, mixers and distilled alcohol, i.e. alcoholic beverages; (2) Social class is a better predictor than income in areas that do not involve high dollar expenditures, but reflect an underlying lifestyle, values, (e.g. concern with health and body, drinking imported and domestic wines) or homemaker role differences, not captured by income. Furthermore, social class is superior for understanding the purchase of highly visible, symbolic, and expensive goods, such as living room furniture and (3) the combination of

27


social class and income is generally superior for highly visible products that require moderate or substantial expenditure and also serve as class-

linked symbols. (M. Mihić, 2006)

Also, a research on global brands affecting buying behavior with specifically college students has also been pursued. It shows that most consumers have different perceptions of global brands about a product in a given category because global brands might have some additional associations related with the brand which local brands do not have.

Thus, this has significant contributions to brand image and knowledge, and it enhances brand value which is likely to affect consumers' brand selection and loyalty behavior. The results show that there is a significant difference in the degree of brand loyalty exhibited by college students across a variety of product categories, which also

impacts the dimensions of global brand selection. (Apaydın, 2011)

DOMAINS OF BEHAVIOR

Benjamin Bloom (1948) developed classifications of intellectual behavior and learning in order to identify and measure progressively sophisticated learning. The Three domains of learning are recognized as Cognitive, Psychomotor and Affective. Cognitive domain is defining

28


knowledge classification. Next is the Psychomotor domain (Gronlund, 1970; Harrow, 1972; Simpson, 1972) defining physical skills or tasks classification and last is the Affective domain (Krathwhol, Bloom, and Masia, 1964) defining behaviors that correspond to attitudes and values.

Affective outcomes tend to be the hardest to articulate initially and often appear difficult to assess at first glance. However, cognitive outcomes often represent the outcomes most closely related to deeper thinking and life-long learning, as well as the outcomes we value most.

IMPULSE BUYING

Researchers and scholars nowadays have been interested about buying behavior including impulse buying. It has been the subject to many researches not only here in the Philippines but more so abroad for it has been very popular topic in marketing and psychology.

Impulse buying is an unplanned behavior involving quick decisionmaking and tendency for immediate acquisition of a product as defined by Rook and Gardner (1993). In past research by Gutierrez (2004), it is considered that the frequency of unplanned or impulsive purchasing is as high as 90%. The truth about impulse buying behavior is that it is a

29


occurring. However, there‘s no one research to define and set everything about it and why is it occurring.

Many researchers abroad tried to solve this mystery by giving different set of alternatives as reason for continuous impulsiveness on part of the consumers. A number of studies suggest that the main characteristics of impulsive buying behavior are: inclination to impulse buying, spontaneity in buying, satisfaction felt after unplanned purchase, and lack of shopping list (Rook & Fisher, 1995; Beatty & Ferrell, 1998; Verplanken & Herabadi, 2001; Virvilaite et al., 2009). These factors refer to the individual characteristics of the consumer.

However, impulse buying also needs to be investigated in terms of other external factors such as demographic, cultural, and situational ones. Situation is a set of all the factors ''particular to a time and place of observation which do not follow from knowledge of personal (intraindividual) and stimulus (choice alternative) attributes, and which have a demonstrable and systematic effect on current behavior.'' Included in the situational is the customer queue in a particular store.

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STIMULUS

Most of us have experienced an impulse that has led us into unplanned shopping. What, then, makes us purchase products we did not intend to buy, we did not need or we did not have in our shopping list? (Ceballos, 2010)

It can be explained that the situation-response formula is adequate to cover learning of any sort, whether it comes with ideas or without, conscious or unconscious, impulsive or deliberate. (Thorndike) People, then, are triggered by a stimulus that makes them buy something that they did not really plan to get.

One example could be the long queues at one server but not at another may provide an indication that several customers chose that particular service perhaps because of its perceived superior value compared to the other server. As queues typically generated by randomness of either by customer arrival process or by the service provision process, long queues may be created by chance, possibly triggering

other

Veeraraghavan).

customers

to

join

the

same

queue

(Senthil


A lot of experiments have already been conducted in different

areas in the field of Science; one example is that of Pavlov‘s Classical Conditioning. But what needs to be investigated further is that of the effect of the stimulus in the field of Marketing and Management in conditioning the mindset of consumers in buying a certain product through long queues.

CUSTOMER QUEUE

A research conducted in Taiwan concluded that the more the people behind a consumer will make the consumer confident about

standing in queue and enhances the product‘s value. The consumer will believe that the product is good by the influence of majority (TOPCO, 2012).

In the study made by Fishbach & Koo (2010), findings show that a consumer in a queue sees the products more valuable when there are more people behind them. The value of the product increases as the consumers put attention to the presence of others behind. When new people join the queue, they will have the same increased perceived value.

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This in effect gives an illusionary progress to the people already in line. The likelihood to accomplish the queuing goal decreases completion time which in this case retains the consumers to be in line (Nunes & Dreze, 2006). A large number of people behind the consumer will require more time and effort to receive the product or service if one will rejoin the queue later (Fishbach & Koo, 2010).

The study by Veeraraghan & Debo (2009) shows that when the value is negatively correlated with service rates, the consumer would strictly prefer to join longer queues. They further add that the choice of the customer is influenced by queue length externalities.

A study found that purchase incidence is affected by the length of queue rather than the speed of service. Customers take into consideration the length of queue rather than speed of service. This implies that purchase incidence increased due to long customer queue. When the queue is longer, it influences how the consumers decide in which queue to join.

Therefore, there is an increase of sales in establishments with longer queue. Moreover the study also suggests that lowering the price of product increases congestion. Length of queues has no effect to

33


consumers who are practical or who consider the prices and they are less likely to leave the line. (Lu, Musalem, Olivares, & Schilkrut, 2012)

Addressing the negative implications of queue to customer satisfaction a research suggested some possible ways to circumvent

these problems. These includes ―(1) Provision for r eservations, (2) Making waiting a comfortable and less painful activity, (3) Reducing perception of actual waiting and increasing expectation of waiting (4) Arranging some interesting activity during waiting, (5) Avoiding visibility of long queues, (6) Some of the preliminaries of service delivery process be done during the waiting, (7) Providing attention, concern and necessary information for

reducing uncertainty and anxiety‖ (M.S.Sridhar, 2001) .

CONFORMITY

Conformity is a social behavior wherein an individual follows the beliefs of the other. An individual tends to follow the majority even if the majority is wrong (Asch, 1965). People live with others, and are often influenced by others in their behavior (Lee & Park, 2008). It is a phenomenon in consumer behavior wherein the consumer follows the evaluation of others on a product, their purchasing intention, and purchasing behavior (Lascu & Zinkhan, 1999). Consumers put importance

34


to the thoughts and reactions of others in choosing or deciding what to buy (Calder & Burnkrant, 1977; Lee & Park, 2008).

Informative conformity was defined as the influence to accept information from others to evince the truth to reality. On the other hand, normative conformity was defined as the influence to conform to the expectation of others. When consumers consult their friends and acquaintances before they purchase products, they seek to receive support for their purchasing decision. Consumers in effect feel confident

when others‘ decisions agree with theirs (Lee & Park, 2008).

Crutchfield (1955) suggests that conformity is based on the

individual‘s personality factors. It claims that conformity is predisposed by the characteristics a person has. Crutchfield found that people who are more likely to conform are less intellectually competent, less ego strength, less leadership ability and narrow minded or authoritarian. These personality shows that these people have less confidence with their own perception that makes them to follow the majority (Psychology, p. 111).

35


36

CUSTOMER SATISFACTON

Customer satisfaction is defined as the evaluation of the perceived discrepancy between prior expectations and the actual performance of the product (Tse & Wilton, 1988). It is said to be established when the brand fulfills the needs and desires of the consumer (Hanif, Hafeez, & Riaz, 2010). A research conducted in India states that ―Satisfaction is primarily an emotional customer-centered personal response or reaction. The customer and his overall post purchase evaluation depend on his perception, viewpoint, experience, expertise, prior personal knowledge,

recent performance and first impression‖ (M.S.Sridhar, 2001).

Satisfaction can be determined by two factors namely subjective and objective. Subjective factors include customer needs, emotions and the

like

while

objective

factors

include

the

product

or

service

(Shodhganga). The level of satisfaction can be measured depending on how much the level of expectation is met (Torsten, Rams, & Schindler, 2001).

A research found that customer satisfaction adds value to the brand and spread a positive word of mouth that helps establish a good


reputation of the brand. Satisfied customers make a long term profitable relationship with the brand where the satisfaction is derived from (Hanif, Hafeez, & Riaz, 2010). This was further explained in the research of Khan (2012) which concluded that, improved customer satisfaction leads to customer loyalty. Loyal customers can attract new consumers by deriving conformity from them.

A company u ses this approach and states that ―Companies increasingly look to quality, satisfaction, and loyalty as keys to achieving market leadership. Understanding what drives these critical elements, how

they are linked and how they contribute to your company‘s ov erall equity is fundamental to success‖ (The Nielsen Company, 2013).

SYNTHESIS OF THE STUDY

Every purchase decision is but a result of consumer behavior and is based on preferences that are influenced by variety of factors. Factors may include advertising, social class, and the brand of a product (Zain-Ul Abideen, 2011). Benjamin Bloom (1948) developed the three domains of behavior that may be affected by a stimulus. This includes, cognitive, affective, and psychomotor. Cognitive defines the knowledge of an individual in response to a subject. Affective, on the other hand is the

37


defining behavior that corresponds to what an individual feels. Lastly, psychomotor defines the physical activity of an individual.

There are different types of consumers; this includes impulse buyers or buyers who purchase a product unplanned. This is due to the inclination to engage, satisfaction felt, and lack of shopping list (Rook & Fisher, 1995; Beatty & Ferrell, 1998; Verplanken & Herabandi, 2001; Vivilaite et al., 2009). According to Graa & Dan-elKebir (2011), impulse buying is influenced by situational factors or stimulus which includes store environment, perceived crowding and time pressure.

In this study, the stimulus is the customer queue in J. Co Donuts stores. The proponents would like to know the attitude of the consumers towards customer queue by considering the three domains of behavior that would then lead to a response which is impulse buying. The domains of behavior signify abstract concepts of the Mehrabian-Russel Theory Model, found in the theoretical framework which explains how an environmental stimuli influence an individual to react.

According to past researches, customer queue may affect the purchasing behavior of an individual. It gives a person the perception that the product is of good value (TOPOCO, 2012). People tend to conform to

38


other people‘s evaluation on a product (Lascu & Zinkhan, 1999). Thus, consumers tend to join longer queues resulting to an increase in purchase incidence (Veeraraghan & Debo, 2009). Purchase incidents may result to a positive or negative feedback of a consumer. A consumer may regret or be satisfied after purchasing a product. Satisfaction is established when the brand fulfils the needs and desires of the consumers (Hanif, Hafeez, & Riaz, 2010). Addressing the current phenomenon in J. Co Donut stores where long customer queue is seen in their business hours, it can be inferred that their customers derive satisfaction and still repurchase.

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CHAPTER 3 THE RESEARCH METHODS

3.1 RESEARCH DESIGN

A descriptive method of research was utilized and a correlational study using survey was used in this study wherein data gathered shall provide information that will correlate the two variables, attitude towards customer queue in J. Co Donuts and impulse buying incidents in the said establishment. The design is limited to describing the population in the current incident since the information was gathered at one point in time. Survey was used in determining whether the relationship is perfect, very high or high.

3.2 DETERMINATION OF SAMPLE SIZE

As a purposive study, the determination of the sample size is according to the purpose of the proponents which is to select respondent who were able to experience falling in line to purchase products in J. CO Donuts stores. The total sample size of 200 respondents is in accordance with the suggested sample size of a purposive study which was also approved by the thesis adviser.

40


3.3 SAMPLING DESIGN AND TECHNIQUE

The sampling design that was employed by the researchers is the non-scientific purposive technique. This kind of technique is based on selecting the individuals as samples according to the purpose of the study which is to know whether there is a relationship between attitudes towards customer queue and impulse buying in J.Co Donuts Stores. The inclusion criteria that was observed in this study is that the respondents must be a previous customer of J.Co Donuts or at least they have already tried falling in line in J.Co Donuts stores to purchase their products once.

3. 4 THE SUBJECTS

The subjects in this study, focusing on the correlation between customer queue and impulse buying behavior are people who specifically tried falling in line to buy products in J.Co Donuts stores within Metro Manila. In here, researchers derived at 500 population or 200 samples. Of 200 samples, 140 or 70 percent of the total respondents are from different colleges of The University of Santo Tomas and the other 60 or 30 percent are random respondents who by themselves experienced falling in line in the said establishment, to be handed the questionnaire specifically from

41


42

J.Co Donuts line of people. Table 3.1 shows the distribution of the subjects

TABLE 3.1 Distributions of Subjects LOCATION

FREQUENCY

UNIVERSITY OF SANTO

PERCENTAGE

140

70

SM NORTH EDSA

20

10

TRINOMA

20

10

MALL OF ASIA

20

10

TOTAL

200

100

TOMAS J.CO DONUT STORES:

3.5 THE RESEARCH INSTRUMENT

The researchers will use a structural questionnaire for gathering data to determine the correlation between customer queue and impulse buying. The proponents used a likert scale in measuring the attitude, impulsivity, as well as the after-purchase satisfaction of the respondents. The questionnaire as designed by the researchers will include questions


relating to attitude and emotional state of the consumers who falls in line to buy J.Co donuts.

The questionnaire will consist of three parts. Part I will aim to

gather information on the respondent‘s personal data (name, gender, age, civil status, allowance, the frequency of how often the respondent goes to the mall and which branch of J.Co Donuts stores respondent have been to). Part II will measure the attitude of the respondent towards customer queue in J.Co Donuts and Part III will gather data measuring the

respondent‘s impulsivity and after-purchase satisfaction derived from it.

A cover letter was attached to the questionnaire itself for the respondents to know that they are being regarded as subjects of the study with confidentiality.

3.6 VALIDATION OF INSTRUMENT

The questionnaire has undergone series of revisions and was

submitted to the researchers‘ adviser for corrections and suggestions. Several changes were made and irrelevant questions were omitted. A pretest was administered to 30 students of the University of Santo Tomas, specifically in the College of Arts and Letters to see if the questions are

43


clearly stated and can be well understood. Cronbach‘s Alpha was used to test the estimated reliability of the instrument.

The first part of the

instrument has .753 level of reliability while the second part has .854 level of reliability; this means that the questionnaire is valid and highly reliable.

Table 3.2 Cronbach's Alpha

Result

Questionnaire 1

.753

Highly Reliable

Questionnaire 2

.815

Highly Reliable

Table 3.2 shows the Cronbach‘s Alpha for the overall reliability analysis of the questionnaire for this research . The Cronbach‘s Alpha presents a value above 0.750 (0.753 on 2nd part of the questionnaire and 0.815 for 3rd part of the questionnaire) which indicates that the two parts of the questionnaire are highly reliable. If the questionnaire is reliable, internal consistency is assured.

3. 7 DATA GATHERING PROCEDURE

The researchers employed a correlation approach using the data collected through a purposive sampling survey. The questionnaire was delivered first-hand to the respondents.

44


After due consultation and validation of the questionnaire, it was then approved by the adviser. The researchers immediately conducted the data gathering procedure through survey. The survey was conducted primarily in the University of Santo Tomas where 70% of the total respondents came from. And the remaining 30% of the sample size was gathered in 3 different J.Co Donuts stores in Metro Manila, specifically J.Co Donuts stores in SM North, Trinoma and SM Mall of Asia.

The researchers themselves conduct the survey which lasted for 10 days. The first 7 days were allotted only for respondents in the University of Santo Tomas and the remaining 3 days were divided for 3 J.Co Donuts stores inside the 3 malls (SM North, Trinoma and MOA).

The researchers retrieved 100% of the questionnaire since the type of sampling technique is purposive in nature. All of the respondents passed the inclusion criteria and with all honesty answered the survey questionnaire given by the researchers.

45


46

3.8 DATA PROCESSING METHOD

After

the retrieval of

the

survey questionnaires from

the

respondents, the researchers tabulated and analyzed the data. Statistical Package of Social Science (SPSS) was used to collate the datum that will be organized using frequencies, tables and graphs. The researcher will assess whether there is a significant relationship between attitudes towards customer queue and impulse buying in J. Co Donuts stores. The responses will be used to determine how customer queue affects the three domains of behavior namely affective, cognitive and psychomotor that will lead to impulse buying incidents and later on, after-purchase satisfaction that makes customer buy again.

3.9 STATISTICAL TREATMENT

The data gathered through the research instrument was collated through the use of Statistical Package of Social Science (SPSS). This study made use of frequencies, percentage distributions, mean, and

Spearman Rho (ρ) Correlation Coefficient in the interpretation of the data and testing the hypothesis of the study. F r e q u e n c y a n d P e r c e n t a g e s


was utilized to know the attitude of the consumers toward customer queue in J.co Donut stores. The formula is as follows:

n N

 100  %

The ―n‖ stands for the frequency counts while ―N ‖ stands for the overall population. is the central tendency measurement used to get the Mean average of the overall respondents given that the data is a scale. The formula for getting the mean is as follows:

 x  X N

The ― x ‖ stands for each value of the variables while ― N ‖ stands for the overall population Weighted mean was used in coding, assigning and analyzing the numerical values in Strongly Agree (4), Agree (3), Disagree (2) and Strongly Disagree (1). The following were used as the basis for the verbal interpretations of the computed weighted mean. Table 3.3 Interpretation of the Weighted Mean Degrees of Mean

Verbal Interpretation

1.00-1.50

Strongly Disagree

1.51-2.50

Disagree

47


2.51-3.50

Agree

3.51-4.00

Strongly Agree

Spearman Rho (ρ) Correlation Coefficient was used for the

researcher to answer the correlations of variables. The formula for Spearman correlation is as follows:

  1 



6



2

2

d



n n 1

The ―n‖ stands for the number of paired ranks while ― d ‖ stands for the difference between the paired ranks. Relative hereto, once the correlation is computed, the degree of correlation will be as analysed as follows by the proponents:

Table 3.4 Interpretation of Degree of Correlation

48


If the computed correlation is positive, it is concluded that the relationship between the dependent and independent variables are direct. This means that as long as the independent variable increases, the dependent variable also increases. However, if the computed correlation is negative, it is concluded that the relationship between the dependent and independent variables are inverse. This means that as long as the independent variable increases, the dependent variable decreases.

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CHAPTER 4 RESULTS AND DISCUSSIONS

4.1 Introduction

The methodology described in the previous chapter set the baseline for data gathering. In this chapter, the presentation of data will be systematically shown. The data collected are extracted from the questionnaire attached in the appendix herein.

This chapter will focus in the analysis and interpretation of data as well as the figures and tables used by the researcher to complete such interpretation. According to De Vos (1998), data analysis entails that the analyst break down data into constituent parts to obtain answers to research question and hypotheses. The analysis of research data does not in its own provide the answers to research questions.

The purpose of interpreting the data is to reduce it to an intelligible and interpretable form so that the relations of research problems can be studied and tested, and conclusions drawn. On the other hand when the researchers interpret the results, the researchers study them for their meaning and implications (De Vos 1998)

50


51

4.2 Discussion of Results

Discussion of all demographics features of the respondents

The

demographic

information

shows

that

there

is

gender

imbalance, that is, there are more female than male respondents, and their difference is of 50 respondents. The researchers believed that this is because of the kind of sampling technique employed which is purposive. As such, the researcher researchers s got the samples that that only fall under the the inclusion inclusion

criteria. According to Činjarević (2010) Impulse buying is typically a domain where gender differences seem apparent. This is congruent with what Kollat and Willett (1967) found that women tend to buy on impulse more than men do. Therefore the result of this research will be a little bit biased towards female opinions.

Furthermore, demography shows that the majority (153 or 73.5%) of the respondents are students while only 47 or 26.5% are working. This result is not a surprise to the researchers since the researchers themselves decided that 70% of the sample will be students from the University of Santo Tomas. The excess of 3.5% suggests that in survey conducted in the particular J.Co Donuts stores, researchers still got


respondents who are students. Among the 73.5% student respondents, more than 3/4 of it said that they receive daily allowance of P100-P300. Only 23.8% gets a daily allowance of 301 and above. With regards to 53 working respondents, everyone answered the monthly income question. This is because the researchers explained that if they are not working,

they may answer their spouse‘s income.

However, it is note-worthy that only 18 respondents are married. 182 are still single including the 153 students. That is to say that out of 53 working respondents, only 18 of them are married and the remaining 35 are still single yet already working. Since the type of sampling is purposive, all of the respondents are mall-goers. 69% of which said that they go to mall at least more than once a week, while 31% said they are in malls at least once to twice a month. Almost 70% of the respondents are familiar with the J.Co Donuts branch in SM North, SM Mall of Asia and Trinoma. This result is primarily affected by the fact that these malls are very accessible to consumers, as well as the students.

With regards to what source the respondents got their first knowledge about J.Co Donuts, the influence of family and friends are still very apparent, followed by seeing the actual stores in malls. Getting

52


information from Television, Radio and News Papers and the use of Internet seems to be very least.

Demographics

The following section provides an overview of the demographic profile of the sample.

Gender

125 females

75 males

Figure 4.1: Pie Chart of Gender Distribution of Sample

Table 4.1 indicates that there are 75 male respondents and 125 female respondents, in total, there are 200 respondents. As the frequency table shows, more female respondents have experienced falling in line to buy products in J.Co Donuts stores.

53


Age

Figure 4.2: Bar Graph of Age Distribution of the Sample

Figure 4.1 presents the age distribution of 200 respondents. The age range is from 16 to 38 years old. 132 or 66% of the total respondents said they are 20 years old and below, while only 13 or 5.5% of the total respondents are 30 years old and above. All respondents provided their age.

In this result, it can be inferred that more teenagers are likely to engage in impulse buying and are willing to spend their spare time falling in line compared with the older respondents or those who are already working.

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Civil Status Table 4.1

Figure 4.3 Pie Chart of Civil Status of the Respondents

Table 4.1 presents the marital status of the 200 respondents. It is evident that the majority of the respondents (182 or 91%) at the time of the survey were not married while 18 respondents or 9% said that they are married. No respondents answered other status such as separated or widowed.

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Monthly Income for Employees Table 4.2

Table 4.2 shows that out of 200 respondents, only 53 of them are already working. Out of 53 working respondents, 2 of them earn 10,000 to 15,000 every month; 8 of them make 15,001 to 20,000; 12 of them have monthly income of 20,001 to 25,000; 10 of them make 25,001 to 30,000; 5 for 30,001 up to 35,000; 11 earn 35,001 to 40,000; 3 earn 40,0001 to 50,000 and 2 make more than 50,001 and above every month.

Since the result presented a scattered frequency of each monthly income category, it can be concluded that whether a working individual earns a lot or just enough, t here‘s still a possibility that they will join the queue in J.Co Donuts or will engage in impulse buying behavior.

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Daily Allowance for Students

Table 4.3

The above table (4.3) reveals that among 200 respondents, a total of 147 are students with daily allowances ranging from 100 to 1,001 and above. 61 of them said they have daily allowance of 100-200 pesos a day, while 51 respondents revealed that they received 201-300 pesos allowance. Both 301-400 and 401-500 have 13 respondents. Meanwhile 9 respondents said they receive 501 and above daily allowance.

57


With this result, it can also be concluded similarly on the next

preceding question, that daily allowances doesn‘t matter when people would like to buy J.Co Donuts or engage in impulse buying.

How often do the respondents go to Malls?

Table 4.4

Figure 4.4: Pie Chart of How Often Respondents Go to Mall

Table 4.4 and Figure 4.4 presents how often respondents go to mall. In a total of 200 respondents, 64 perceived that they go to mall once

58


a week. 74 respondents said that they go to mall more than once a week. 49 respondents go to the mall twice a month and 13 said that go to malls at least once a month. Since majority of the respondents (37%) go to the mall more than once a week, it can be assumed that there is a big possibility for them to see the long customer queues in J.Co Donuts stores resulting for them to join the said queue.

Branch Table 4.5

It can be seen in the above table (Table 4.5) that the most visited J.Co Donuts Branch is the branch located in SM North which garnered 65 or 25.7% of the total respondents followed by Trinoma Branch with a small

59


difference of less than 2%. Third is the SM Mall of Asia branch which is of 22.9% of the total respondents. It can also be inferred from the table above that almost 70% of the responses would lead to three J.Co Donuts stores, specifically SM North, Mall of Asia and Trinoma. The explanation for this is the fact that 30% of the respondents are actual consumers of the three branches. In UST, where 70% of the survey respondents came from, is just one jeepney/FX away from SM North and Trinoma. That is

why there‘s a very high chance that respondents have been to those stores as compared to other stores like that of in Green Hills, Alabang Town Center and UP Town Center.

How do you first know J.Co Donuts?

Table 4.6

Table 4.6 shows the result of multi-response question, that out of 4 possible sources of information regarding J.Co Donuts, the main source is

60


family/friends with 101 or 47% responses, second is by seeing the actual stores in the malls with 92 or 42% responses. The use of internet and the influence of Trimedia are believed to be very weak which only contributed 8.4% and 2% respectively. This is because J.Co donuts do not have TV Commercials or even many advertisements in social networks.

Research Objectives Results

The Researchers found that customer queue affects the attitude of consumers, specifically cognitive, affective and psychomotor domains, positively. It has been proven that the attitude towards customer queue is a stimulus to impulse buying and that such induces the customers to join the queue for their first time. Also, according to the results, repurchase incidence are likely to happen due to satisfaction because of the product they have tasted from J.CO Donuts.

It can also be derived from the results that when people contemplate (cognitive) before giving in to their feelings or emotions, the less likely they would act upon it. Cognitive outcomes often represent the outcomes most closely related to deeper thinking (Bloom, 1948); if the

61


consumers think twice before joining a long customer queue, there are things that they would want to consider. First, if it is reasonable to devote

their time to fall in line for a product they have not tried before. Second, if the product really is of quality for them to buy it and third, if they will be satisfied after the purchase. That is why the relationship between cognitive and impulsivity is inverse. This is also because when you engage in impulse buying, the use of cognition is less likely to happen. This is in congruence with what Beatty and Ferell (1998) believes that impulse buying refers to immediate purchases which are without preshopping objectives.

Moreover, if consumers focus more on what they feel (affective), the more they become impulsive. That is why based from the results; people are less likely to care about the long line. What is more important to them is to satisfy their cravings. It is aforementioned that out of 200 respondents, 125 are female; a study in France found that food cravings are more common in women than men (Lafay et al., 2001). Demographic results show that 75% of the respondents go to the mall more than once a week, based on the same study conducted by Lafay et al. (2001), over one-quarter of women surveyed reported weekly food

62


cravings. The respondents do not mind waiting and seeing long lines to purchase the product as long as they get to try it. Hence, there is a direct relationship between affective and impulsivity.

Lastly, the consumers are overpowered by the stimulus that leads them to join the customer queue. According to Veeraghan & Debo (2009), customers choose longer lines because they are influenced by queue externalities. Customer queue has been found to be an effective stimulant in attracting consumers; it increases the perceived value of the product, thus consumers would strictly prefer longer ones. That is why there is also a direct relationship between psychomotor and impulsivity.

However, it is not absolute because results show that some of the consumers are not willing to wait and finish the line. A queue can influence the activity a wait involves, which seem to cause certain degree of anxiety in waiting. Furt hermore, queue is considered as a ‗time filler‘ (cf. Maister,1985). The change of mind is assumed to take place to consumers who are practical. According to the study of Lu, Musalem, Olivares, & Schilkrut (2012), practical consumers are likely to leave the line because they consider the prices.

63


64

Furthermore, according to the results, as the consumer engage in impulse buying in J.Co Donuts stores, they derive satisfaction since unplanned purchase is due more because of satisfaction of their cravings. The founder of J.Co Donuts considers the Philippines as one of their best market for the reason that Filipinos love to eat sweets (BizNews Asia, 2013). Consumers are satisfied because J.Co Donuts offers goodtasting products that satisfy their cravings.

1. The attitude of the consumers towards customer queue in J.co Donut stores to covering the three dimensions namely: Cognitive, Affective, and Psychomotor.

TABLE 4.7

COGNITIVE J.Co Donuts demand rate, compared to other stores, suggests that it is classy. J.Co Donuts' freshly baked donuts have a positive impact to customers. J.Co Donuts is overrated. AFFECTIVE Long customer queue in J.Co Donuts stores makes me curious about their

Mean

SD

2.037

0.413

Verbal Interpretation Disagree

2.015

0.719

Disagree

1.635

0.635

Disagree

2.460

0.966

Disagree

2.191

0.185

Disagree

1.920

0.739

Disagree


65

product. Long customer queue hinders me from lining up. It disappoints me whenever I see long customer queue in J,Co Donuts stores. It is irritating to see and join a long customer queue in J.Co Donuts stores. PSYCHOMOTOR I tend to join the customer queue whenever I see it long. I am going to wait and finish the long line in order to purchase J.Co Donuts' products.

I don‘t join in long customer queues I will ignore the idea of buying when I see the line is long. I would walk out of the line if it is taking too long.

2.235

0.839

Disagree

2.325

0.826

Disagree

2.285

0.853

Disagree

2.416

0.097

Disagree

2.555

0.944

Agree

2.420

1.019

Disagree

2.365

0.886

Disagree

2.445

0.861

Disagree

2.295

1.031

Disagree

Table 4.7 presents the attitude of the consumers in terms of Affective, Cognitive and Psychomotor towards customer queue in J.co Donut stores.

The verbal interpretation of the responses of the respondents in terms of the Cognitive domain is Disagree with mean of 2.037. The respondents disagree that J.Co Donuts is overrated and their freshly baked donuts have a positive impact to customers. The respondents also

find J.Co Donuts‘ demand rate, compared to other stores, do not suggest that it is classy.


On the other hand, the verbal interpretation of the responses of the respondents in terms of the Affective domain is also Disagree with mean of 2.191. Responses show that long customer queue does not hinder them from lining up. The long queue does not make them curious about

the product. Furthermore, it does not disappoint them and they don‘t find long customer queue in J.Co Donuts stores irritating to see and join the long customer queue.

In terms of the Psychomotor domain, the verbal interpretation of the responses of the respondents is Disagree with mean value of 2.416. Consumers seem to focus primarily on the length of the line when deciding to join the queue, however they are not drawn away by longer ones (Lu, 2012). Another study strengthens this result which states that long queues may be created by chance, possibly triggering other customers to join the same queue (Vaararaghavan). It is in congruence to the results in terms of psychomotor. Respondents tend to consider joining customer queue when they see it long. More respondents are not willing to finish the long line in order to purchase the product compared with those respondents who would not walk out of the line if it is taking them too long.

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67

FIGURE 4.5

Figure 4.5 presents the comparison of how strong the stimulus affects the three dimension of attitude. It is shown that the Psychomotor is the greatest affected domain of behavior by the long customer queue, next is the Affective domain and the least affected is the Cognitive domain.

2. The correlation of the attitude towards customer queue and impulse buying of customers in J.CO Donut stores in Manila.

TABLE 4.8 Mean

SD

IMPULSIVITY I feel satisfied whenever I bought something I patiently fallen in line for. I go to the mall whenever I need to buy something. I am willing to spend money for a product I have not tried before. I buy things planned.

2.861

0.244

Verbal Interpretation Like Me

3.005

0.786

Like Me

3.070

0.720

Like Me

2.755

0.818

Like Me

3.125

0.701

Like Me

I buy things unplanned because of curiosity.

2.865

0.861

Like Me


68

I buy things unplanned to be part of the trend.

2.510

0.972

Like Me

I buy things unplanned to satisfy my cravings.

3.181

0.757

Like Me

I spend hard-earned money wisely.

3.090

0.745

Like Me

2.905

0.787

Like Me

2.505

0.935

Like Me

2.770

0.775

Like Me

2.550

0.819

Like Me

I feel satisfied even the purchase was unplanned. The long line in J.Co Donuts triggered me to buy J.Co products for the first time. Word of mouth persuaded me to buy J.Co donuts' product the first time. I only buy when there is a short line in a J.Co Donuts stores.

Table 4.8 presents the impulsivity of the respondents. The respondents describe themselves as someone who would go to the mall whenever they need to buy something and someone who buys things planned, thus making them a wise spender. However, they are willing to spend money for a product that they have not tried before. Although they consider themselves as someone who buy things planned, unplanned purchase are likely to happen. Results show that unplanned purchase is due more because of satisfaction of cravings derived thereafter, next is due because of curiosity and lastly, because of the want to be part of the trend or the bandwagon. After-purchase Satisfaction is derived by the respondents even if the purchase is unplanned.

More respondents were triggered to buy J.Co Donuts on their first

purchase due to ―Word-of-mouth‖ rather than the persuasion due to the long line of people waiting. It can also be seen that many respondents would prefer buying J.Co Donuts when it has shorter line. Since


69

unplanned purchase is due more because of satisfaction of cravings, respondents feel satisfied whenever they buy something they patiently queued for.

TABLE 4.9

IMPULSIVITY COGNITIVE AFFECTIVE PSYCHOMOTOR

Correlation Coefficient

Degree of Association

Relationship

Pvalue


-0.286

Moderate

Inverse

0.002

Significant

0.344

Moderate

Direct

0.000

Significant

0.315

Moderate

Direct

0.002

Significant

Table 4.9 shows the significant relationship between the attitude towards customer queue and impulse buying of customers in J.CO Donut stores in Manila. The p-values of are below 0.050 which means that null hypotheses are rejected at 0.05 and therefore conclude that there is significant relationship between the attitude towards customer queue in terms of Affective, Cognitive and Psychomotor and impulse buying of customers in J.Co Donut stores in Metro Manila. Each coefficient falls within 0.250 to 0.750 which means that there is moderate degree of relationship between the attitude towards customer queue and impulse buying of customers in J.CO Donut stores. The coefficient of cognitive and impulsivity presents a negative value which means that there is an inverse


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relationship; this indicates that as the respondents‘ perception in terms of cognitive increases, their impulsivity decreases.

On the other hand, the models; affective and impulsivity and psychomotor and impulsivity presents a positive value which means that there is direct relationship between affective or psychomotor and impulsivity. This means that as the respondents‘ perception in terms of affective or psychomotor increases, their impulsivity also increases.

3. The after-purchase satisfaction of customers who bought J.CO donuts out of impulse.

TABLE 4.10 Mean

SD


2.325

0.225

Unlike Me

2.455

0.890

Unlike Me

Not even the long line of J.Co Donuts discourages me to buy.

2.455

0.901

Unlike Me

I feel satisfied whenever I buy something I patiently fallen in line for.

3.005

0.786

Like Me

I will never buy products in J.Co Donuts again because falling in line wastes my time.

2.065

0.716

Unlike Me

REPURCHASE INCIDENCE Despite the long line of people waiting in J.Co Donuts store, I still fall in line to buy their products.


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Table 4.10 presents the respondents perception in terms of repurchase incidence. The data shows that the respondents are someone who would not fall in line to buy the product because the long line of people waiting in J. Co Donut stores discourage them. However, they still perceive themselves as someone who feels satisfied whenever they buy something that they patiently fallen in line for. Because of the satisfaction derived, repurchase are apt to happen.

TABLE 4.11

Impulsivity and After-purchase satisfaction

Correlation Coefficient

Degree of Association

Relationship

Pvalue


0.423

Moderate

Direct

0.000

Significant

Table 4.11 shows the significant relationship between the Impulse buying behavior by the consumers and the after-purchase satisfaction derived in J.Co Donut stores. As observed, the p-value presents 0.000 which means that null hypotheses are rejected at 0.05 and so, we can therefore conclude that there is significant relationship between the Impulse buying behavior of the consumers in J.Co Donut stores and the after-purchase satisfaction derived from it. The coefficient falls within


0.250 to 0.750 which means that there is moderate degree of relationship between the two mentioned variables.

The model presents a positive correlation coefficient which means that there is a direct relationship between the two. This indicates that as the Impulse buying behavior of the consumers‘ increases; repurchase incidence in J.Co Donut stores due to after-purchase satisfaction also increases.

HYPHOTESIS RESULTS:

In the conducted study, the first null hypothesis which states that

―Consumers have a negative attitude towards the customer queue in J.Co Donuts stores‖ shall be rejected. This is because it turned out that the consumers have a positive attitude towards it because it entices, attracts and invites them to join the said queue.

Regarding the three domains of behavior, the second hypothesis is likewise rejected because customer queue in J.Co Donuts stores significantly affect the cognitive domain of behavior. However, they have an inverse relationship which means that the more consumers think

72


before they buy, the less likely they join the customer queue in J.Co Donuts stores.

With regards to the third and fourth hypothesis, both shall also be rejected because customer queue in J.Co Donuts stores significantly affects the affective, as well as the psychomotor domain of behavior. The said stimulus actually gives the consumers a positive feeling that makes them join the queue.

The next hypothesis which states that ―There is no relationship between the Cognitive dimension of attitude and Impulse Buying.‖ shall likewise be rejected because the results revealed that there is a relationship between cognitive and impulse buying. The result of which is inverse because as the consumers think, the less likely they would engage in impulse buying behavior. As stated earlier, impulse buying does not really constitute thinking before purchasing a product.

The same marks should apply to the sixth and seventh hypothesis which states that there is no relationship between affective or psychomotor domain of behavior to impulse buying. Both shall also be rejected. This is because the results showed that they have a direct relationship which means that the more consumers act upon what they

73


feel; the more it is possible that they would engage to an impulse buying behavior.

The last hypothesis which states that the consumer would feel regretful after engaging in impulse buying due to customer queue in J.Co Donuts shall also be rejected because the results revealed the contrary.

Therefore, it shall be concluded that customer queue is in reality an activating stimulus that triggers impulsiveness on the part of the consumers, as well as the potential consumers and may therefore increase sales on the part of the entrepreneurs.

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CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS

Conclusions

This study was conducted for the purpose of knowing the attitude of consumers towards customer queue in J. Co Donuts stores and its relation to impulse buying. The descriptive method of research was utilized and the correlational study using survey was used for gathering data. The questionnaire served as the instrument for collecting data and the respondents were first-hand individuals who experienced falling in line in the said establishment.

In this study, customer queue being the stimulus was tested if it is related to impulse buying. It is seen that attitude towards a stimulus may and will induce impulsiveness on part of the consumers because they have a positive attitude towards customer queue in J. Co Donut stores. As presented in Chapter 4, the three domains of behavior are positively affected by the stimulus. Thus, it may contribute an effective way for the inducement of consumers in a particular store. Also, the researchers found that customer queue has a direct relationship to impulse buying which means that when a consumer sees a long customer queue, there is

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76

a big possibility that one will engage to impulse buying. This study proves that satisfaction may be derived after engaging in an impulse purchase resulting for a consumer to buy again.

Recommendations

In view of the foregoing results, it is shown that customer queue influences the purchasing behavior of an individual which makes them engage in impulse buying. The proponents present the following recommendations:

With the recognizable success and high demand of J.Co Donuts, expansion should be considered. J.Co should expand their market to key cities like Iloilo City, Cebu City, and Davao City. There are only three cities mentioned for the purpose of reaching these markets, at the same time, maintaining the customer queues in J.Co Donuts stores in Metro Manila.

Managers

and

marketers

should

come

up

with

marketing

techniques and strategies that would employ both external and internal stimulus. This would boost the curiosity of consumers and will induce them to join customer queues. External stimulus may include promotional strategies, the use of television advertisements or commercials and print ads in newspaper or magazines. This will result to brand familiarity of such


establishment to the consumers. This is also a way to catch the attention of potential consumers, especially to newly introduced products.

Internal stimulus, on the other hand, may include having a well improved interior design or store ambiance. The proponents recommend the use of open window store and kitchens to induce consumers. This will result to word-of-mouth, increase market span and long customer queues.

There should also be a queuing system that controls its length. One or two cashiers in an establishment are also recommended. Limited number of cashiers generates longer customer queue. The longer lines of people waiting, the higher impulse incidence would take place.

Entertainment should also be added to the facilities of an establishment that uses the queuing technique. This is to minimize the agony of waiting and to divert their attention from the length of the queue. This would also avoid consumers to balk out of from the line. Entertainment in an establishment may include televisions and music.

The proponents also recommend other researchers to have a study regarding the sustainability of long customer queue and how to maintain it

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for a long period of time. Researchers should also explore other environmental stimulus that would result to impulse buying.

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CURRICULUM VITAE Landayan, Emmanuel A.

An active senior legal management student from the University of Santo Tomas from Guiguinto Bulacan. He participated in various seminars and leadership trainings within the country including the 6-day 7 th National Leadership Training for Student Government officers held in Baguio City. He is also a recipient of the 2010 Presidential Leadership Award from then President Gloria Macapagal-Arroyo as recognition for his dedication as

the school‘s Supreme Student Government President of Guiguinto National Vocational High School. At present, he is an active member of numerous youth and civic organizations in school and in his hometown. He is currently the Secretary of the Parish Commission on Youth of St. Ildephonse Parish in Guiguinto, and the founding President of Malis Youth Ministry, the local chapter in their barangay. He is also the class president of their class for two years now.

Pastrana, Mae Sharmane T.

A senior Legal Management student from the University of Santo Tomas. She is active in different organizations inside and outside the university. She hails from Kalibo, Aklan and represented the province in various Western Visayas Regional Athletic Association Meet.

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84

She was a member of the University of Santo Tomas Tennis Team from years 2010-2013. She was also a recipient of scholarship grant of the University of Santo Tomas from first year to third year in college. She participated in various seminars and conferences. She was a member of the Promotions Committee and Documentations Committee of the Legal Management Society in S.Y. 2012-2013. At present, she is a member of the Marketing Committee of the Legal Management Society, and a Civil Service Exam Professional level exam passer in 2013. Also, she is an Associate Vice President of the Alliance of the Legal Management Association of the Philippines.

Guzman, Charmaine A.

Born and raised in Valenzuela City, she is currently a senior student of the University of Santo Tomas, taking up Bachelor of Arts, major in Legal Management. She is an active member

of

the

UST

Legal

Management

Society and elected as the Vice President-Internal in the said organization. She participated in different contests and debates such as

―Talastasan: Filipino Debates‖ and won the Overall Best Speaker award; Champion in a Marketing debate having the motion, ―Is Amer ica to be blamed for Capitalism in the Philippines?‖; champion in the Essay -writing contest held in San Beda College, Mendiola. In addition, she also

conducted an event entitled ―Hope for Greeneration‖ in coordination with the Climate Change Commission, and attended numerous seminars about Human Rights, Intellectual Property, and Territorial Disputes: An open forum about Scarborough Shoal, to name a few.


85

Perez, Kristine Keryn U.

A senior legal management student from the University of Santo Tomas who is an active officer in different organizations inside and outside the university. She is currently the Senior

Associate

Marketing

of

the

Vice

President

Alliance

of

for Legal

Management Associations of the Philippines, Inc (ALMAP), the Chairman of the Marketing Committee of the UST Legal Management society and the Chief marketing officer of their family business, VJ Manila. She is the project head of M.Y.O.M (Make your own merchandise) 2013 and the subhead of Promotions committee in S.Y. 2012-2013 in the UST Legal Management Society. Her leadership abilities and discipline were developed from her High school years where she became the Class President for 3 years. She also became the class president of their block in her second year of college. Also, she was able to serve her whole high school community in La Consolacion College, Caloocan when she became the Student Council Vice President for External affairs in her 4th year high school and a student council representative in her lower years. She is also a Model platoon in their ACP. Being a student leader, she participated in various leadership seminars, trainings and conferences. She is proud to be able to divide her schedule in school, organizations and business all at the same time.


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APPENDIX II TIMETABLE FOR RESEARCH

RESEARCH OBJECTIVES Thesis Title Approval

TIMETABLE 2013 Jun

Jul 8

Aug

Making of Chapter 1: The Problem and its background

12

Submission to Thesis Adviser for revision

28

Making of Chapter 2: Review of Related Literature

12

Submission to Thesis Adviser for revision

28

Sept

Drafting of Survey Questionnaire

22

Making of Chapter 3: Research Methodology

22

Submission to Thesis Adviser for revision Revision of all the corrections from Chapters 1-3

2014 Oct

Nov Dec

Jan

06

26

Feb


27

Distribution of Survey Questionnaires RESARCH OBJECTIVES

90

Jun

Jul

Aug

Sept

Oct

Nov Dec

Jan

Consultation with Statistician

31

Encoding of Results

31

Feb

Making of Chapter 4: Results and Discussion

09

Making of Chapter 5: Conclusions and Recommendations Submission to Thesis Adviser for revision Revision of all the corrections from Chapters 1-5

10

Group Meeting in preparation for the thesis defense

16

Submission of Finished Thesis

17

10

11

21

Thesis Oral Defense

Jco Group Thesis_final

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