CHAPTER 1

The Problem and Its Background

Introduction

There are many different methods to increase your sales. Discounts are an effective
short-term strategy that retailers use when inventory is moving slower than expected. Contrary to
popular belief, not all discount techniques are created equal. Though the traditional discount
sales are effective, Buy One, Take One has become one of the more popular choices for retailers
lately. Buy One, Take One is one of the common schemes of sales promotion of products and is
widely used throughout the world. In the recent past, buy one take one scheme has gained
momentum and popularity among the consumers. It is a great discount technique to use to appeal
the consumers. It is a great tool that can help you get rid of your less desirable inventory quicker
and maintain profitability at the same time.

People nowadays are being practical to their daily lives. They prioritized how they become
benefited on a particular product and people buy their needs instead of what they want. A study on
factors that affects consumers preferences in buying buy one take one product of franchise
business will give some knowledge to the customers, like on the students they will know how
promotional strategy affects the buying preferences of customers.

Also it will give awareness to the management of franchise business on how effective their
promotional strategy to their customer. Every study gives people different benefits, but in this kind
of study, there are a lot of questions that will be answered and problems to solve.

The reason why the researchers chose to conduct this study “The Effect of Using Buy
One Take One as a Promotional strategy of Franchise business to the selected customers in
Sariaya, Quezon” is because Buy one take one is one of the common schemes of sales promotion
of products and is widely used throughout the world. Buy one take one is a great technique to use
to appeal the consumers and both retailers and shoppers love Buy one Take one out of all
discounts promotions.

This study will help to inform those customers who frequently buy or purchased the
products of different franchise business and to know how effective this Buy one Take one as a

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promotional strategy that used of franchise business to attract their customers to purchased their
product and how this marketing strategy influence the buying behavior of their customers.

In the town of Sariaya, there have a lot of different franchise business. All of them have
their own promotional strategy that’s why many customers are frequently buy their products.
This study was conducted because of different questions and problems of the researchers on their
mind and they want to find an answer, like they want to know how buy one take one affects the
customers and why customers always wing a product that has a big discount. In short the
researcher aims to determine the effects of buy one take one as a promotional strategy of
franchise business to the customers.

Background of the Study

Buy one, get one, free or two for the price of one is a common form of sales promotion.
The price of one is somewhat nominal and is typically raised when used as part of a buy one get
one free deal. Whilst the cost per item is proportionately cheaper than if bought on its own, it is
not actually half price. Buy one take one is not a bad deal as long as the customers need it. It
depends on them if they are going to buy the product or not. But sometimes it is really effective
to decrease the expenses of the customer. Buy one take one is one of the key factors of
promoting the business. The business can gain a profit by using this strategy. From selling a two
product they can increase the price of the product but still they can earn profit. The customer are
more likely willing to buy the buy one take one because they think that they can save money and
their expenses can decrease.

According to Christopher Marquis and Laura Velez Villa (2012), the buy one give one
model has become widely popular, but serious question have been raised about its long-term
viability. Much of the success of these pioneers stems from their novelty. But as more and more
businesses adopt the model, companies will no longer be able to use it as a differentiator, and the
benefits of the model will likely diminish. Question have been raised about the actual social
impact of this type of giving, saying that it only alleviates the symptoms of a problem ( lack of
shoes or eyeglasses ) and does not address to roots of the problem ( poverty or lack of health are
). Even through this issue is important, we don't address the question of social impact in this
article. Instead, we focus on understanding the model itself, and assessing its long-term financial

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sustainability to understand whether it is simply a fad or an effective new way of businesses and
consumers to jointly create commercial and social value.

This study was related to our study because this history of buy one takes one focusing in
our topic. It also determine on how effective this strategy is, and the article explain that buy one
take one can fulfill the needs of the customers.

According to Xin Lu (2008), why "Buy One Get One Free" is usually a bad deal recently,
he read about a promotion from a home builder in San Diego where consumers could buy a 4000
square foot house for $1.6 million and get a smaller home by the developer valued at $400
thousand for free. This sounds like a fantastic deal, but he always wary of any promotion labeled
with "buy one get one free", and here is why. Oftentimes, "buy one get one free" ends up being
"buy two at the regular price". For example, you often see "buy one get one free" ads for orange
juice at the supermarket, but the first box always costs over $5.00. At the same time the juices
not in the promotion are selling for $2.50 to $2.99 a box. So basically, the markets have priced
the free item into the price of the first item. In some stores they do cut the price in half when you
just buy one, but in most supermarkets if you did not grab the second box of juice you would be
overcharged for the first box.

Another problem with buy one get one free is that often times you do not need the
second item. Suppose that you only consume one gallon of milk every two weeks. If you were
tempted into buying a second gallon in a buy one get one free promotion, and then the second
gallon would go bad before you have time to consume it. That creates waste instead of savings.

In the case of getting a second home for free, the buyer has to pay property taxes on the
home and maintain it, and those things certainly are not free. Basically, if there is no need for the
second item, there is no point in buying it even if it were "free".

In the case of the San Diego developer, so far they have received one offer on their
expensive luxury mansions, but the buyer does not want the cheaper house for free. Instead, he
wants the value of the smaller home deducted off his purchase price so if the developer agrees he
could purchase the larger home for $1.2 million. I think this guy is quite wise because instead of
being liable for property taxes on two homes valued at $2 million, he will only have to pay taxes
on one property he purchased for $1.2 million. He saw right through the marketing of "Buy One
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Get One Free", and I think he will really be getting a deal. Ultimately, it is up to you to see how
much you need and how much you are willing to spend. Being aware of the regular price of
things also helps you in determining whether a buy one get one free promotion is truly a great
deal. Do not be suckered in by free. This study is related to our topic because the researchers are
going to pick up the perceptions of the customers about buying buy one take to the franchise
businesses.

Promotion is one of the key factors to the success of the business. It is use to ensure that
the customer is aware of the products that the business is offering. Before building a business,
the seller must have a plan, skill and knowledge of what promotion strategy are going to use to
the business to become effective. Promotional strategy has a big impact of gaining profits, and
without profits it may lose the capital and the business may not be sustain the operations. The
manager must apply the best promotional strategy to run the business.

The study of promotion strategy history has shown that business must innovative,
flexible, and adaptive to ecological changes. In the present day buy one take one become the
common schemes of sales promotion of products and is widely used throughout the world.

The researcher conducts this study because they notice that a lot of people are taking buy
one take one, and how the franchise business increase their profit by using this promotional
strategy. The researchers aims to know how effective this buy one take one as promotional
strategy of franchise business and this study aims to help the consumers to decrease their
expenses on buying buy one take one products.

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Statement of the Problem

The main purpose of this study was to determine the effects of buy one take one as a
marketing strategy of Franchise business to the selected customers in Sariaya, Quezon

.Specifically, this study sought to answer the following question:

1. What is the demographic profile of the respondents in terms of:

1.1 Age
1.2 Gender
2. What are the factors that affects customers preferences in buying Buy One Take One product
of Franchise business in terms of:
2.1 Price
2.2 Promotion
2.3 Quality of the product
3. What implication can be drawn based on the result of the study?
Conceptual Framework

According to Matthew Hudson (2018), one of the biggest marketing ideas in recent
years has been the concept of Buy One Get One. This can come free to buy one get one 50% off.
But no matter the variety, they all do one very well- they drive sales. BOGO is one of the best
perception offers you can use. But the beauty of this offer is in its benefits to the retailers. It
designed to clear out and move inventory. It is also a way to create cash flow. And since BOGO
is a common offer for customers now, the psychology of the deal is often times the same,
meaning BOGO free and BOGO 50% off still make a customer feel like they are getting a great
deal.

The researcher chose this concept to provide evidence to their study. This concept is suit
to the study and its helps to know how effective this promotional strategy to the customers.
These concepts of Matthew Hudson become the basis of the researchers to develop an idea to
improve knowledge that will receive by the selected customers in Sariaya, Quezon.

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 According to Jake Johnson (2018), sales promotion concept is a tried and true way to
ramp up your sales, acquire new customers and take advantage of seasonal opportunities. Sales
promotions are a short-term marketing tactic to create urgency and increase sales. One of the
sales promotions is Buy one Get one, people always likes to get more for less. The buy one get
one offer allows for this. Additionally, you can use it to unload overstocked inventory in a way
that helps you still have a profit margin. Especially enticing is buy one get one free, as people
have a hard time saying no to that word.

The researcher chose this concept to provide evidence to their study. This concept is
related to the study because it’s all about sales promotions and since the study of the researchers
is about “the effects of using buy one take one as a promotional strategy of franchise business”
this concept will help them to improve their knowledge regarding to their topic.

According to Philip Kotler (2012), the societal marketing concept is a marketing

concept that holds that a company should make marketing decisions not only by considering
consumers' wants, the company's requirements, but also society's long-term interests. The
societal marketing concept holds that the organization's task is to determine the needs, wants,
and interests of a target market and to deliver the desired satisfactions more effectively and
efficiently than competitors in a way that preserves or enhances the well being of both the
individual consumer and society in general. Therefore, marketers must endeavor to satisfy the
needs and wants of their target markets in ways that preserve and enhance the well-being of
consumers and society as a whole. It is closely linked with the principles of corporate social
responsibility and of sustainable development.

This concept was related in our study because franchise businesses are also
determining the needs and wants of the customers, that’s why they make a promotional strategy
to give the needs and wants of the customer.

According to Schaefer and Kuehlwein (2008), positioning concept refers to the place that
a brand occupies in the mind of the customer and how it is distinguished from products from
competitors. In order to position products or brands, companies may emphasize the
distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to
create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end,

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etc.) through the marketing mix. Once a brand has achieved a strong position, it can become
difficult to reposition it.

Positioning is one of the most powerful marketing concepts. Originally, positioning

focused on the product and with rise and trout grew to include building a product's reputation
and ranking among competitor's products. Schaefer and Kuehlwein extend the concept beyond
material and rational aspects to include 'meaning' carried by a brand's mission or myth.
Primarily, positioning is about "the place a brand occupies in the mind of its target audience".
Positioning is now a regular marketing activity or strategy. A national positioning strategy can
often be used, or modified slightly, as a tool to accommodate entering into foreign markets.

This concept is related in our study because it deals about the quality of any product that
are premium and inexpensive, franchise businesses built their promotional strategy which is buy
one take one because of the needs of the customer, they want it to be suitable to buy. Inexpensive
but also it is branded and it is good quality of product. Our research focuses on the effects of buy
one take one to the customer so it is related in our study.

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Research Paradigm

The study was focused on The Effects of Using Buy one Take one as a promotional
strategy of Franchise business to the selected customers in Sariaya, Quezon.

Independent Variable Dependent Variable

Demographic profile of the

respondents in terms of:
 Age
 Gender
Effects of Using Buy one Take
one as a promotional strategy
Factors that affects customer
buying preferences in terms of:
 Price
 Promotion
 Quality of the product

Figure1. Research paradigm of “The Effects of Using Buy one Take one as a Promotional
Strategy of Franchise business to the selected customers in Sariaya, Quezon.

The figure above shows the independent and dependent variable on the effects of using
buy one take one as a promotional strategy of franchise business to the selected customers in
Sariaya, Quezon.

In the dependent and independent variable, the researchers determine the factors that
affect the buying preferences of the customers.

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Significance of the study

The findings of the study will be beneficial to the following:

To the Management of Franchise business, the study will help the management to be aware of
their promotional strategy affects the buying behavior of their consumers.

To the Customers, the study will help to the customer’s whirl buying a product which goes
through many steps with the help of promotional strategies.

To the Researcher, as an ABM student, the study provides an experience of knowing the
promotional strategies on consumers buying behavior to the products of Franchise business and
the strategies that the researcher could apply in the future.

To the Future researchers, the study serves as a reference in the further related researchers of
promotional strategies on consumers buying behavior.

Scope and limitations

This study focused on the factors that affects consumers preferences in buying buy one
take one product of franchise business to the selected customers in Sariaya, Quezon. The purpose
of this study is to know how promotional strategies can help selected customers in Sariaya,
Quezon to satisfy their wants and also to analyze the scope and importance of promotional
strategies for successful business. This research does not cover to all customers, the researchers
respondents are 50 selected customers that lives in Sariaya, Quezon.

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Definition of Terms

This includes the meaning of the difficult words that will be used in the study. The
meaning of each word is based on its uses in the research study and it is define operationally.

Buy one take one. An offer used in shops, in which if you buy one thing, you get another of the
same thing for no extra cost. It is used to tell to customers that they can buy two products of a
similar type but only pay for one.

Increase Sales. The amount by which the average sales volume of a company’s products or
services has grown, typically from year to year.

Marketing Tactic. The strategic actions that direct the promotion of a product or service to
influence specific marketing goals. A set of strategic methods intended to promote the goods and
services of a business with the goal of increasing sales and maintaining a competitive product.

Promotional strategy. Used in marketing. It is to do with finding the appropriate market for a
product or service and utilizing all aspects of promotion such as advertising and discounts used
to promote the product or service to a particular market.

Sales Promotion. It is the process of persuading a potential customer to buy the product. It is
designed to be used as a short-term tactic to boost sales- it is rarely suitable as a method of
building long0term customer loyalty.

Urgency. Generally refers to communicating to an individual or team that it’s imperative to act
promptly, decisively and without delay. The phrase can be applied in the context of leadership
and management, or in the field of marketing and sales.

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 CHAPTER II

Review of Related Literature and Studies

For further understanding of the study, the researchers made use of different reading
materials related to the promotional strategy. These materials such as books, magazines,
newspaper, thesis and other web article are essential in broadening the knowledge of the
researchers. These will also guide the researchers to achieve their target objectives by getting
ideas to another related study and make improvements as possible.

Related Literature

According to Anderson (2009) also note that the best tools during the introduction of the
sales of a new product or product line are discounted or free-accessories and discounts towards a
purchased of already popular product providing the customer purchased the new products or
disseminating pricing coupons and implementing sales promotions can help establish the high
level brand loyalty for the customers mainly oriented on the prices.

Anderson stated that the best tool for promoting new product to the customers are
through discounts and free accessories.

However, McDaniels, Lambs and Hair (2012), stated that people communicate with one
another for many reasons. They seek amusement, ask for help give assistance or instructions:
provide information and express ideas and thoughts. Promotion, on the other hand, seeks to
modify behavior and thoughts of some way. For example, promoters may try to persuade
consumers to drink Pepsi rather than Coke, or to eat at Burger king instead of McDonald's.
Promotion also strives to reinforce existing behavior- for instance, getting consumers to continue

11
dining at burger king once they have switched. The source (the seller) hopes to project favorable
image or to motivate purchase of the company's goods and services. Effective promotion will
achieve one or more of three goals: It will inform the target audience, persuade the target
audience, or remind the target audience. Often a marketer will try to achieve two or more of
these goals at the same time.

This literature stated that promotion seeks to modify behavior and thoughts of some way
and it has a big impact on buying preference of customer. This is related to our study because the
main task of our study is to determine the effects of buy one take one as a promotional strategy
to the customers.

According to Riley (2012), Sales promotion refers to the offering of incentives to

customer or to the distribution channel to stimulate the demand or the buying decision of the
customers. Sales promotion includes a wide assortment of tools- from samples coupons, refunds,
cents-off deals, sweepstakes, rebates, premiums and point of purchase displays to contest all of
which have many unique qualities. They attract consumer attention offer strong incentives to
purchase, and can be used to dramatize product offers and to boost sagging sales. Sales
promotion invite and record quick response where advertising says, "Buy our product" sales
promotion says, "Buy it now"

This literature is related to our study because it shows the importance of having
promotions to the business and how it can affects to the consumers.

According to Go (2012), in her book entitled "Marketing Plan", public relations equals
positive image building. This is done not just through public announcements or press releases,
but by coming out with concrete programs enhancing the brand positioning. The role of public
relations, one of the components of the promotions mix, is now acknowledged as the inseparable
twin of advertising in building awareness and positive brand association. Proactive consumers
nowadays do not just accept advertising claims since without verification Public relations efforts
lend some credibility to claims since independent parties such as media editors are the ones
writing about the product or service. Firms launch activities that are relevant to their market and
their communities, thus endearing them to the public. The high level of trustworthy image

12
created can prevent any backlash against the most unlikely event that an unfortunate incident
happens.

Go stated that promoting new product is not just through public announcement but also
by press releases by coming out with concrete programs. This is related to our study because buy
one take can be consider as promoting strategy of different franchise business. Also this will help
the customers to engage to a new product.

According to Go (2012), in her book Fundamentals of Marketing, sales promotion are

action-oriented marketing campaigns designed to influence behavior of consumers or costumers
to help the firm attain its short-term volume and long-term brand building objectives. As similar
products are looked at in similar way, sales promotions are used to create short-term
differentiation by offering a better product value. Sales promotions promote growth, sometimes
even at an artificial level. This growth benefit is pursued for different objectives such as generate
or increase product trial, or increase purchase quantity. Sales promotions are often referred to as
the product PUSH because they resort to a direct shorter-term objective to gain volume. It is
design to make prospective buyers be aware of the brand, create or change brand attitudes, and
stimulate purchase intentions.

This literature is related to our study because this stated that promotion influence the
behavior of the customer and this study aims to know the perception of the customer on buying a
product that uses a buy one take one as a promotional strategy.

As stated by Young, Felina C. (2012) Companies may have the best products attractive
and have a good quality. These products may be widely promoted and available to the consumer
but if they are not affordable, and then a sale must consider. Companies have to constantly adopt
and change pricing strategies to gain marketing success, if not marketing leadership.

Young, Felina said that companies may have the best products attractive and have a
good quality but it cannot avail by their customers because it is too much expensive and the
companies should change the pricing strategies to gain marketing success. This literature is
related to our study because promotional strategy can helps the customers avail the product even
if it is too much expensive and the best promotional strategy to use is buy one take one.

13
 According to Kurtz (2012). The term marketing strategy proposes that it has something
to do with both marketing and strategy. It clearly requires additional explanation and
improvement since the concept is still relatively new established. The marketing strategy consists
of choosing a segment of the market. The design of the proper marketing mix of product, service,
price, promotion and distribution is the key to meet the wants and needs of the consumers
however with the beginning of various progressive concept and macro-environmental
development, like pay social responsibility and transparency must concentrate for sustainable
development the firm strategic and operational aims and likewise adapting, handling up and
proactively changing to meet the challenges and dynamics market place

Since our study is focus on the effects of promotional strategy to the customers. This
literature is related to our study because it is all about the marketing strategy that will use to meet
the needs and wants of the customers.

According to Phillip Atchison (2014) Buy one, get one: the psychology behind the
BOGO. Using buying patterns detected from loyalty cards, receipts, and other research, grocery
chains are searching for the multiples sweet spot. For example, Kroger currently has lemonade,
socks and Kroger gummy bears candy on sale at 10 for $10. And, to the chagrin of right-brained
finger counters everywhere, the old gimmick — buy one, get one free — has been expanded to
include some pricing equations based on complex NASA-inspired algorithms – or at least it
appears to my mathematical challenged mind.

This literature is related to our study because Atchison said that buy one take one
expanded due to old gimmick using buying patterns. It becomes widely known and some
groceries use this as promotional strategy. Also our study aims to know how effective this buy
one take one as a promotional strategy that used of franchise business to attract their customers.

According to Peneda, Pedrito et. al. (2015) on his book entitled "Strategic
Management". The process of business strategy is to compete and innovate a kind of product and
market segment that will be most attractive to the firm. The firm strategy and long term
performance goals is the important choice to exist established link. In the achievement of the
above average return on investments the degree of competitive advantage will affect in the
strategic goals. To develop a corporate awareness of the propose plan and action, opportunities

14
and threats must be identified in term of market share and profit and its desired outcome in the
firm of specific strategy. Internal and external capabilities are intended on how theory develop to
compete and the value their stakeholders. Strategies must be applied, demonstrate and
understand to have a purposeful action.

This literature is related to our study because this literature is all about the strategic
management that will apply to the business and can use to attracts the customers. Since our study
is focused to the effects of using buy one take one as a promotional strategy to the customers and
also it aims to know how it can helps to get more customers.

According to Matthew Hudson (2018), one of the biggest marketing ideas in recent
years has been the concept of Buy One Get One. This can come free to buy one get one 50% off.
But no matter the variety, they all do one very well- they drive sales. Buy one get one is one of
the best perception offers you can use. But the beauty of this offer is in its benefits to the
retailers. It designed to clear out and move inventory. It is also a way to create cash flow. And
since buy one get one is a common offer for customers now, the psychology of the deal is often
times the same, meaning buy one get one free and buy one get one 50% off still make a customer
feel like they are getting a great deal.

This is related to our study because our study is focus to the effects of using buy one
take one as a promotional strategy to the customers and by using this kind of strategy will help
the customers to satisfy their wants and also the business because it can help them to drive their
sales.

Related Studies

According to Mittal and Sethi (2011) on their study entitled “The Effectiveness of Sales
Promotion Tools among Indian Consumers: An Empirical Study”. Buy one and get one free offer
was found to be particularly effective in inducing brand switching. Moderate effective in
purchase acceleration and new product trial but were ineffective as a medium for stock piling
spending more.

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 This study is related to our study because this study is about the effectiveness of sales
promotion tools. Also this study proved that using buy one take one as a promotional strategy is
an effective tool to offer to their customers.

According to Odunlami and Ogunsiji (2011) in their study entitled “Effect of Sales
Promotion as a tool of organizational performance: A case study of sunshine plastic company”. It
is considered as an effective technique while targeting sales promotions to a range of the
particular niches, and also while trying to increase the level of differentiation, in order to develop
more precise campaign with the high chances for success. Although varied within sales
promotion is prove to be an effective tool in increasing the sale.

This study is related to our study because this is proved that sales promotions is an
effective way of increasing the sales and also buy one take one is a promotional strategy that can
help to increase sales.

According to Aimin et al. (2012) on his study about "Marketing Strategy”. Success and
achieving goals of business depends on the marketing strategy that the business has. It is the key
element to execute effective marketing strategy to conceptualize and create a successful
business. Marketing strategy implementation firms make use of scarce resources through
marketing capabilities in order to attain the set goals and targets. The process of' implementation
a detailed literature review was performed to illustrate the value of marketing strategy.

Aimin said that is depends on the marketing strategy of a business on how it success and
achieve their goals. Buy one take one can be the strategy or tool of a business to achieve their
success.

According to Bajarias (2012) on her study entitled "Optical Shop Consumer Survey as
Basis for Formulation of an Effective Marketing Strategy" The main task of the marketing
function operating under marketing concept is not to manipulate customers to do, but somewhat
to find effective and efficient means of making the business do what is appropriate to the interest
of the customers. Strategic management process of a firm is the vital role of marketing. The
experience of companies well proficient in strategic planning indicates that failure in marketing
can be a barrier to established goals of the company.

16
 This study is related to our study because it aims to know how effective and efficient
their marketing strategy is and franchise businesses are using strategy that can attract to their
customers and because of this strategy, many people can lessen their expenses. Also our study
aims to know how buy one take one affect the buying behavior of the customers as a promoting
strategy.

As stated by Chen, Mei-Liang (2012) on her study about "The Product Pricing Strategy
after International Financial Crisis -A Case Study on the Supermarkets in Metro Manila". The
successful management enterprise decides what kind of activities can contribute to accomplish
the objectives of the company. Strategies are made by the company to pursue the industrial
competitive advantages to build favorable, maintainable competitive situation in order to match
against the competitive forces in the industry. Current competitors flexibly take measures such as
price competitiveness, advertisement campaign, promotion of new products and progress in
customer service level. The competitive awareness will form when the competitors feel stressed
or find chance to elevate or improve market position to make an advantage.

This study is related in our study because it explains the importance of using a strategy
and the importance to make a strategy. Buy one take one is a promotional strategy, some
franchise business are using this kind of sales promotion to be ahead on their competitors.

According to Varastegani (2014) on her study about "Marketing strategies to improve

the sales of bakery products of small-medium enterprise (SMEs) in Malaysia" Marketing
strategy are not motivated in the form of rewards, recognitions and incentives that may adopted
to invite treats as agents. Advertising source I trough multimedia presentation to promote
marketing with the attractive products. Signboards, poster, leaflets, cards billboards, printed
advertisement, mails newspaper, TV, FM are the proper advertising to influence the promotion.
Effective ways in pulling business volume are identifying the freebies and discount. And also the
strength and weakness of the agents are enough to provide them a marketing training that may
improve the sales growth.

The study stated by Varastegani is related to our study because it also focuses on how
strategy affects business. Like on our study, it focuses on one of the 4Ps which is promotion.

17
 As stated by Wanda Y. Jenkins (2015) “Marketing Strategies for Profitability in Small
Independent Restaurants”, the main goals to fill market shares and increase shareholders value.
To support annual strategic initiatives, restaurant owners must independent to develop the
opportunities for growth and assist in accomplishing. Small business should gather all marketing
activities to forecast growth and sustainability patterns. Contribution aware to the new product
and new offering for long term growth organization in marketing must involve the innovation
and insight of customer. Advertising, fundraising and public relations are the component to
executives marketing operation and strategy. Viral marketing, advertising, flyers, brochure are
the strategies to the product customer attractive.

This study explains that the explains that the main goal ti fill the market needs in
marketing strategies for business are grow market shares and increase shareholders value. This
study is related in our study because franchise businesses are growing their markets because of
their strategy. Buy one take one of franchise business can grow market shares because this
strategy was fame to those customer that is practical in buying.

According to Cernel (2016) "Strategies to Drive Sales Productivity" The balance of

power in the sales process in shifting and sales representatives are involves the business to
business selling space. Increasing pressure to hit exceed quota is under of the sales process while
the many companies are not scaling processes; the organizations are expanding their sales terns
and target higher revenue goals. Scales technology, data analytics and just in time coaching
enable sales are included in strategies that increase their productivity and also to enhance their
performance and more effectively hit quota.

This study is related in our study because it focused on what are the strategies can help
to drive sales productivity. Promotional strategy is an effective way to drive sales and by using
buy one take one has a big impact to increase the sales of the business and also it is effective to
the customers.

As stated by Haydu (2017) on his study entitled "Marketing Strategies for Improving
Business" Marketing helps to recognize the present customers better and to expose innovative
ways for reaching new customers. The customer base is the center of the business because
without customers there simply would be no business. Therefore, a certain business should do

18
everything to determine how to satisfy customers and what products and services they want and
expect. Successful business brings this philosophy to its logical decision by striving to go beyond
customer satisfaction to customer happiness. Exceeding customer expectations is the substance
that creates a lasting bond between business and the people serve. Customer loyalty has many
benefits.

The study of Haydu is related in our study because it focuses on the marketing strategy
for improving business and how their strategy can satisfy their customers’ needs and wants.
Using buy one take one as a marketing strategy can helps to improve their business and to satisfy
their customers because buy one take one can influence the buying behavior of the consumers.

As stated by Sabeti et. al. (2017), "How to improve Sales Productivity Marketing
influence on sales productivity that has been measured by the number and quality of leads
delivered. There are many other impactful ways marketing and safes can partner to increase sales
productivity. To find and deals faster the representatives must get meetings with high-value
stakeholders, sales decks and product training that helps express a persuasive story during a
proposal and guarantee that establishes brand and product reliability, marketing should be deeply
involved in all stages of the sales process. Sales has a large impact on customer feedback and
data in why predictions will go to a competitor, what features and functionality various
stakeholders valued, what predictions thought about pricing and bundling, what new products
existing customers would want to buy. Those are example on how to increase sales but company
should always concentrate on marketing strategies to have those things this feedback enables to
build a more competitive product roadmap and prioritize launching new products, both of which
improve sales productivity.

This study stated that sales productivity can be partner by an strategy. This is related in
our study because through the use of promotion, it can improve your sales productivity.

19
 CHAPTER III

Research Methodology

This chapter present the research method used in the study, respondents of the study,
sampling technique, data gathering instruments, validation of the questionnaires and statistical
treatment of data.

Research Design

The researchers used the quantitative research in the study. The descriptive method of
research was also employed in the study. It involves gathering of data through survey
questionnaires. The responses of the respondents were used to assess the effects of buy one take
one to the customers.

Research Locale
20
 The researchers gathered information from Sariaya, Quezon, Philippines. Sariaya was
named after one of the town's largest river, Sadyaya. Bounded on the North by the legendary Mt.
Banahaw, on the south by Tayabas Bay, on the west by Candelaria and San Juan (Batangas) and
on the east by Tayabas and Lucena City, Sariaya is known far and wide as the "town" of palatial
houses. Sariaya has an area of about 23,980 hectares, the greater part of which is planted with
coconuts, populated with 128,248 (2007 Census).

"S A R I A" It is said that by the middle of the 16th century, the fishermen inhabited the
place now known as the barrio Timbaga near the seashore in Sariaya. One day the Spaniards
visited the place. Not knowing where they were, they approached a certain woman and asked her
what the name of the place was. The woman, not knowing Spanish and thinking perhaps that her
name was what the Spaniards wanted to know, said "Saria". The Spaniards wrote "Saria" on their
notebooks as the name of the settlement. And while the Spaniards were talking with each other,
the natives heard them utter the words "Saria-ya". Hence, the words traveled from mmouth to
mouth and became a common saying until the twowords were combined.

"FRANCISCAN FRIARS" In 1599, the franciscan missionaries arrived in Sariaya. They

constructed a church and made St. Francis of Assisi as Patron Saint of the town. Six years later,
another chuch was built to replace the old one. Because of constant Moro raids, the settlers fled
farther inland carrying with them an image of Christ at the Cross, which they saved when their
settlement was being burned. Upon reaching the place where the present town of Sariaya is
located, the image suddenly became so heavy that the settlers decided to stay there and founded a
settlement.

"CALAMITIES" Besides the raids of Moro Pirates, the town suffered natural and
man-made calamities such as: Mt. Banahaw, then an active volcano, erupted in 1539. It is said
that for (2) two days, molten lava and stones flooded the town destroying countless houses and
properties. The eruption was repeated on January 18, 1909. An earthquake came in this town in
1734 and destryed the church built in Tumbaga I. In 1756 and 1786, an epidemic killing
hundreds of people occured in the town. It was repeated in 1872 and 1882. Fire hits the town in
1831, 1837, 1847, 1930 and 1951. Bandits rampaged the town in 1838. The town Captain is
beheaded. A certain Don Tiburcio Rodriguez was also killed. The attacked was repeated in 1853.
This time, the bandits killed the commissioners of the town, burned one house and held their
21
celebrations in Casa Real. The last attack recorded was when the Bandits tried to ransack the
municipal building, but they failed because of the resistance of the brave policemen of the town.
According to the 2010 census, it has a population of 138,894 people. It is the second largest
municipality of Quezon province in terms of population with Lucena City being the highly
populated area.

Respondents of the Study

The respondents of the study were composed of thirty (30) selected customers of
franchise business in Sariaya, Quezon.

Sampling Technique Used

The researcher will use the convenience sampling in choosing the sample
population. The convenience sampling is non-probability sampling where sample are selected
from the population only because they are conveniently available to the researcher. This type of
sampling technique will be used to get a result from the available customers. Choosing
convenience sampling is effective for doing descriptive type of research. Since the setting of the
study was located at Sariaya, Quezon and it was consisted of overall population of thirty (30)
respondents, the researchers decided to use it as their sample size.

Research Instrument

The researchers used survey in this study, were the respondents are selected to answer the
questionnaires in their convenient time.

Data Gathering Procedure

To be able to gather information in support to this study, the researcher consult to

different references materials such as books, journals and other thesis studies related to this
study. The researchers also surfed on the internet for further findings. The researchers
constructed a set of questionnaires regarding the customers’ perception towards the promotional
strategy used by the franchise business in Sariaya, Quezon. The questionnaires are divided in two

22
parts. Part one contains the inclusive years of service and product distribution while the part two
contains the product strategy, pricing strategy and promotion strategy.

Validation of Questionnaires

The researchers referred to different materials such as books and other

unpublished thesis related to chosen field of the study to be able to gather information in support
of the study. Also the questionnaires were made simple, direct and concise to easily understand
by the respondents. The questionnaires will be validated by Mr. Renato Delito.

Statistical Treatment

For determining the Demographic profile of the selected customers in terms of age and
gender the researchers used the frequency and percentage distribution wherein the formula is:

𝑓
P= × 100%
𝑛

Where:

P- Percentage

f- Frequency

N- Total number of respondents

To determine the Factors that affects the consumers preference in buying buy one take one
product of franchise business to the selected customers in Sariaya , the researchers used
Weighted Arithmetic Mean wherein the formula is:

4(𝑓)+3(𝑓)+2(𝑓)+1(𝑓)
WAM= 𝑁

Where:

WAM- Weighted Arithmetic Mean

f- Frequency
23
N- Total number of respondents

To interpret the response using the weighted mean, the following intervals are closely observed.

Likert Scale

Scale Statistical Value Verbal Interpretation

4 3.26-4.00 Strongly Agree

3 2.51-3.25 Agree

2 1.76-2.50 Disagree

1 1.00-1.75 Strongly Disagree

CHAPTER IV

Presentation, Analysis and Interpretation of data

This chapter contains the presentation, analysis and interpretation of data gathered on the
assessment of the factors that affect customer preferences in buying buy one take one product of
franchise business in Sariaya, Quezon.

The following are the areas of investigation that were considered in this study: The price,
product and promotion

24
 The findings of the study had been identified through the use of a questionnaire
completed by thirty (30) respondents

1. Demographic Profile of Respondents

1.1 Age

Table 1 shows the frequency and percentage distribution of the respondents according to
age.the respondents were divided into thrre (3) groups. It shows the vital information about the
age of respondents of card bank.

Table 1

Frequency and Percentage Distribution of the Customers According to Age

Age Frequency Percentage Rank

18-38 years old 17 57% 1

38-48 years old 10 33% 2

48 and above 3 10% 3

Total 30 100%

The frequency and percentage distribution of the customers according to age is divided
into 3 categories which are 18-38 years old, 38-48 years old and 48 and above. The majority of
respondents are 18-38 years old with 17 respondents and 57℅ percent. The lowest rank is 48 and
above with 3 respondents and its percentage was 10. In general, age between 18-30 years old are
buying buy 1 take 1 products most of the time.

1.2 Sex.

Table 2 shows the frequency and percentage distribution of the respondents according to
sex. The respondents were divided into two (2) groups. It shows the vital information about the
sex of the customers of franchise businesses which are the respondents.

Table 2
25
 Frequency and Percentage Distribution of the Respondents According to Sex

Gender Frequency Percentage Rank

Male 11 37% 2

Female 19 63% 1

Total 30 100%

Table 1 shows frequency and percentage distribution of the respondents according to sex.
The data given above illustrates that the majority of respondents are female with a number of 19
and it has a percentage of 63% out of 100. On the other side, male respondents had a number of
11 and a percentage of 37%. In general, most of customers who are buyinh buy 1 take 1 product
are females.

The analysis revealed that majority of the customers was female since they occupy more
than half of the number of consumers. This implied that females are more outgoing and enjoys
buying. Besides, females are more sociable and interactive more often than males as cited by
Cuevas- Cinco (2014).

2. Factors that affect customer preferences in buying buy 1 take 1 product of franchise
business in Sariaya, Quezon.

2.1 Price, obtain the vital information about the "factors that affect customer preferences in
buying buy 1 take 1 product of franchise in Sariaya, Quezon.

Table 3

Price as one of the, factors that affect consumer preferences in buying buy 1 take 1 product
of franchise business in Sariaya, Quezon.

Price WAM V.I

1. The price of the product is budget-friendly 3.43 Strongly Agree

26
2 .there is no discrimination among customers 3.36 Strongly Agree

3. The pricing strategy gives room for large 3.37 Strongly Agree
customer.

4. Applying strategies to the price lead to 3.40 Strongly Agree

increase of customers

5. They offer price discount 3.57 Strongly Agree

6. The price commensurate (proportion) the 3.13 Agree

product.

7. The price meets your expectation 3.10 Agree

8. Right and reliable price. 3.40 Strongly Agree

9. Price of the product is just and fair 3.40 Strongly Agree

10. Prices of the product are affordable. 3.73 Strongly Agree

Average 3.36 Strongly Agree

Table 3 illustrates the weighted mean of each questions and its verbal interpretation. The
highest mean on the following was the question "Prices of the product are affordable” who got a
weighted mean of 3.73 and verbally interpreted as strongly agree. And the lowest mean was the
question “the price meets your expectation" got a mean of 3.10 and it was verbally interpreted as
agree. “The price of the product is budget-friendly” got a mean of 3.43 and it was verbally
interpreted ss strongly agree. It was followed by the question "there is no discrimination among
customers" got a mean of 3.36 and it was verbally interpreted as strongly agree. "The pricing
strategy gives room for large customer" got a mean of 3.37 and it was verbally interpreted as
strongly agree. It was followed by "applying strategies to the price lead to increase of customers"
got a mean of 3.40 and it was also verbally interpreted as strongly agree. "Prices of the product
are affordable" got a mean of 3.57 and it was the highest mean among the following that is

27
verbally interpreted as strongly agree."The price commensurate (proportion) the product" got a
mean of 3.13 and it was verbally interpreted as agree.

On the other side, the question “the price meets your expectation" got a lowest mean
among the following with 3.10 and it was verbally interpreted as agree. It was followed by the
question “right and reliable price got a mean of 3.40 and verbally interpreted as strongly
agree.”Price of the product is just and fair" got a mean of 3.40 and also interpreted as strongly
agree. At last, the question" prices of the product are affordable" got a highest mean among the
following and it was verbally interpreted as strongly agree.

Generally, overall weighted mean of the questions on table 1 got a mean of 3.36 that is
verbally interpreted as agree. It means that the fair price of the product plays a large part on
how it will sells and the price of the product of franchise business makes customer affects their
customer preferences in buying.

In support with this, according to Hoyer et.al (2014) explained that price perception is
everything. If the consumers think that they are getting a deal, then they will be more inclined to
make a purchase. Discounts can have a huge positive impact on your sales. Sales can soar when
companies bundled products together into one cheaper package. Yet a buyer’s affinity for such
deals comes with a big caveat, according to new research. As for coupon, consumers will most
likely resolve to buy a product if they see that the price tag has been discounted.

2.2 Promotion obtain the vital information about the "factors that affect customer preferences in
buying buy 1 take 1 product of franchise in Sariaya, Quezon.

Table 4

Promotion as one of the factors that affect consumer preferences in buying buy 1 take 1
product of franchise business in Sariaya,Quezon.
28
 Promotion WAM V.I

1. People know the product based on the 3.60 Strongly Agree

promotional strategies.

2. The promo affects the customers buying 3.37 Strongly Agree

preference.

3. The promo of the business is fair and enough. 3.43 Strongly Agree

4. It applies advertising as one of promotional 3.50 Strongly Agree

strategy.

5. The promotional strategy influences the rate of 3.37 Strongly Agree

the strategy.

6. The signage of the business is noticeable. 3.00 Agree

7. The promo gives more satisfaction. 3.33 Strongly Agree

8. The promo is favourable to avail. 3.20 Agree

9. The business has a good reputation. 3.27 Strongly Agree

10. Contact details are available. 2.77 Agree

Average 3.28 Strongly Agree

Table 4 also illustrates the weighted mean of each questions and the verbal interpretation
of it. Question “People know the product based on the promotionsl strategies" got a mean of 3.60
which is the highest mean got among the indicators in table 4. And the question "contact details
are available" got a lowest mean among the following with 2.77 and it was verbally interpreted
as disagree. The questions people knlw the product based on the promotional strategy got a
highest mean with 3.60 and verbally interpreted as strongly agree. Followed by "The promo
affects the customers buying preferences" with a mean of 3.37 and also interpreted as strongly
agree. "The promo of the business is fair and enough" got a mean of 3.43 and it was verbally

29
interpreted as strongly agree. "It applies advertising as one of promotional strategy" got a mean
of 3.50 and also it was also verbally interpreted as strongly agree. Followed by the promotional
strategy influences the rate of the strategy" got a mean of 3.37 that is verbally interpreted as
strongly agree. "The signage of the business is noticeable" got a mean of 3.00 and it was verbally
interpreted as agree."The promo gives more satisfaction" got a mean of 3.33 with an verbal
interpretation of strongly agree. Followed by "the promo is favourable to avail" who got a
mean of 3.20 and verbally interpreted as agree. "The business has a good reputation" got a mean
of 3.27 and it was verbally interpreted as strongly agree. At last, question "contact details are
available" got a mean of 2.77 that is the lowest among the following and it was verbally
interpreted as agree.

Generally, the overall weighted mean of the indicators above was 3.28 which is verbally
interpreted as strongly agree. And it shows that promotion also a big factor in buying preference
of customer

In support with this, according to American Marketing Association, a sales promotion is

defined as media and non-media marketing pressure applied for a predetermined limited period
of time in order to stimulate trial increase consumer demand or improve product quality.

2.3 Quality of the product obtain the vital information about the "factors that affect customer
preferences in buying buy 1 take 1 product of franchise in Sariaya, Quezon

Table 5

Quality of the product as one of the factors that affect consumer preferences in buying buy
1 take 1 product of franchise business in Sariaya, Quezon.

Quality of the product WAM V.I

1. They offer delicious and quality products. 3.43 Strongly Agree

2. The product is cooked well-done. 3.00 Agree

3. The quality meets the customer’s 3.27 Strongly Agree

30
satisfaction.

4. Readily available. 3.17 Agree

5. Not easily perish 3.10 Agree

6The product is made on a specified time. 3.00 Agree

7. The quality of the product justifies it’s price 3.23 Agree

8. The products have quality that make me buy 3.53 Strongly Agree
again.

9. The product is presentable and attractive. 3.20 Agree

10. Nutritious. 2.50 Disagree

Average 3.14 Agree

Table 5 also illustrates the mean and verbal interpretation of each indicator. Question
"The products have quality that makes me buy again" got a highest mean among the following
with 3.53 and it was verbally interpreted as strongly agree. On the other side, the question "The
product ks cooked well done got a mean of 3.00 and it was determined as lowest like the
question "The product is made on specified time" also got a lowest mean with 3.00 that is
verbally interpreted as agrre. Question "they offer delicious and quality product" got a mean of
3.43 and interpreted as strongly agree. Followed by the question "The product is cooked well
done" with a mean of 3.00 and it was verbally interpreted as agree. "The quality meets the
customer's satisfaction" got a mean of 3.27 with a verbal interpretation of strongly agree.
Followed by the question "readily available" that got a mean of 3.17 and verbally interpreted as
agree. "Not easily perish" also verbally intepreted as agree with a mean of 3.10. Followed by
"The product is made on specified time” got a mean of 3.00 and its verbal interpretation was
agree..Question "The quality of the product justifies it price" got a mean of 3.23 and verbally
interpreted as agree. Followed by "the product have quality that makes me buy" got a mean of
3.53 and determined as the highest among the following that is verbally interpreted as strongly

31
agree. "The product is presentable and attractive" got e mesn of 3.20 and it was verbally
interpreted as agree. The question "nutritious" got a lowest mean with 2.50 and it was verbally
interpreted as disagree.

In general, the overall weighted mean of the following indicators is 3.14 and it was
verbally interpreted as agree. It means that the quality of the product also a large factor that
affects customer preferences in buying.

In support with this, according to Young, Felina C. (2012) Companies may have the
best products attractive and have a good quality. These products may be widely promoted and
available to the consumer but if they are not affordable, and then a sale must consider.
Companies have to constantly adopt and change pricing strategies to gain marketing success, if
not marketing leadership.

32
 CHAPTER V

Summary, Conclusions and Recommendation

This chapter summarizes the findings in the study, draws out conclusions and offers
recommendation for furthef research.

The main purpose of the study was to assess the factors that affect customer buying
preferences in buying buy 1 take 1 product of franchise business

Specifically, it sought answers to the following queations:

1. What is the demographic profile of the respondents in terms of:

1.1 Age
1.2 Gender

2. What are the factors that affect customer’s preferences in buying Buy One Take One product
of Franchise business in terms of:
2.1 Price
2.2 Promotion
2.3 Quality of the product
3. What implication can be drawn based on the result of the study?
Summary of findings

1. Demographic profiles of the respondents

Most of respodents are between the age of 18-30 years old with a frequency of 17 or
57%. Followed by the majority of female respondents with a frequency of 19 or 63%.

2. Factors that affect customer buying preferences in buying buy 1 take 1 product of
franchise business

2.1 Price

The responses of the customer towards price yielded an overall weighted mean of 3.36
which falls under "strongly agree". It means that the price of the product is just and fair that
affects the customer buying preference.

33
2.2 Promotion

All the data gathered from the responses of all customers of franchise business had
generated an overall mean of 2.28 which falls under "strongly agree ". It means that promotion
can attract and gain customer to a business.

2.3 Quality of the product

Quality of the product yielded an overall weighted mean of 3.14 which falls under
"agree". It means that the quality of the product is just and fair to satisfy the customers.

Conclusions

After the result were analyzed, the following conclusions are formulated

1. Based on the result most, of the age of customer are 18-30 years old.

2. Based on the result, most of the respondents are female.

3. Price of the product of franchise business is just and fair.

4. Promotion of the product is well-known and it affects customer buying preference.

5. Quality of the product

Recommendations

The researchers believe that this study might further be enhanced. In addition, the
researchers recommend that additional features for further development.

1. The franchise business should implement other marketing strategy especially in relation to
business growth.

2. Frachise business should make nutritious product.

3. For the students, this research may serve as their reference to get information about factors
that affect customer buying preferences.

4. Future researchers may wish to dwell on similar studies but this time conduct it in other
business.

34