Correlates of Customers’ Satisfaction towards Coffee Shops in Iloilo City

A Research
Presented to
Faculty of the College of Business and Accountancy
Western Institute of Technology
Luna St, La Paz, Iloilo City

In Partial Fulfilment
of the Requirements for the course
Acctg 327 - Accounting Research Methods

by

Agravante, Kyra Joy

Barodi, Janisah
Cabalinan, Mary Lyn
Jabagat, Nelrine Rose
Pasaporte, Jullien Nicole

May 2023
 Table of Contents

CHAPTER 1 Introduction

Page

Background of the Study

Objectives of the Study

Hypotheses of the Study

Theoretical Framework

Conceptual Framework

Research Paradigm

Definition of terms

Significance of the Study

Scope and Limitation of the Study

Chapter 2 Review of Related Literature

Chapter 3 Research Methodology

The Research Design

The Participants

The Research Instruments

Data Statistical Data Analysis Procedure Gathering procedure

 References

Appendices

Chapter 1
Introduction

Background of the Study

Being situated in a continent full of coffee drinkers, the Philippines started

catching up with its neighboring Asian countries like China, Japan, and Korea. Before,

people were perfectly satisfied with ready-to-drink bottles or cans of beverages bought

in convenience stores. But in the early 2000s, people began to savor the distinctive

taste of milk and coffee combined together. Coffee shops and kiosks started emerging

all over Metro Manila, making the Filipino market coffee-crazy, effectively

strengthening its place as the largest food/beverage trend of 2011

(lifestyle.inquirer.net/tag/coffee, 2020)

Now, the coffee phenomenon had invaded Iloilo City. There are also a lot of

coffee shops sprouting in every corner of Panay sland. As a result, consumers now

have abundant coffee shop options. Hence, this study aims to assess the correlates of

customers’ satisfaction of coffee shops to look into its management, food services,

sanitary and staff development.

The business must establish a good financial system to keep the business going

and achieve its vision and mission. The researchers find it necessary to find out if this

venture is still profitable or if not,then recommendations will be suggested. The purpose of

this research study was to investigate the correlates in terms of product, price, people, and

place, which are associated with customer satisfaction in terms of management, food

services, sanitary and staff development, and the revisiting intentions of customers and

working people to coffee chain stores situated in Iloilo city. As an outcome, coffee shops

serve a variety of functions, including providing coffee and an environment to work and

study, and comfortable rest area. This research enables businesses how to assess and

how to effective and their operations are functioning properly, identify areas for

advancement, and if adjustment is needed, it is therefore necessary to find ways and

means for changes and improvement, to get the desired results of how the operational

process of coffee shop. In the light of the foregoing, the researcher has decided to conduct

this study.

Objectives of the Study

This study aims to determine the level among the correlates of customers’
satisfaction towards coffee shops in Iloilo City.

Specifically, this study seeks to answer the following objectives;

1. What is the profile of customer in terms of sex, age , civil status, educational

attainment, and occupation?

2. What is the level among the correlates of customers’ satisfaction towards

coffee shops in Iloilo City in terms of product, price, people, and place when taken as a

whole and classified according to sex, age, civil status, educational attainment, and

occupation?

3. What is the level of customers’ satisfaction towards coffee shops in Iloilo City

in terms of management, food services, sanitary, and staff development when taken as
a whole and classified according to sex, age, civil status, educational attainment, and

occupation?

4. Is there a significant difference in the level among the correlates of

customers’ satisfaction towards coffee shops in Iloilo City in terms of product, price,

people, and place when classified according to sex, age, civil status, educational

attainment, and occupation?

5. Is there a significant difference in the level of customers’ satisfaction towards

coffee shops in Iloilo City in terms of management, food services, sanitary, and staff

development when classified according to sex, age, civil status, educational

attainment, and occupation?

6. Is there a significant relationship between the level among the correlates of

customers’ satisfaction in terms of product, price, people, and place and the level of

customers’ satisfaction in terms of management, food services, sanitary, and staff

development?

Hypotheses of the Study

Based on the research objectives and question, the null hypotheses will be
formulated:

1. There is no significant difference in the level among the correlates of

customers’ satisfaction towards coffee shops in Iloilo City in terms of product, price,

people, and place when classified according to sex, age, civil status, educational

attainment, and occupation.

2. There is no significant difference in the level of customers’ satisfaction

towards coffee shops in Iloilo City in terms of management, food services, sanitary,
and staff development when classified according to sex, age, civil status, educational

attainment, and occupation.

3. There is no significant relationship between the level among the correlates of

customers’ satisfaction in terms of product, price, people, and place and the level of

customers’ satisfaction in terms of management, food services, sanitary, and staff

development.

Theoretical Framework of the Study

This study will be anchored on Abraham Maslow’s (1977) hierarchy of needs.

This theory states that an individual’s main needs are satisfied in the following

sequence: physiological, safety, love and belongingness, esteem, and their self-

actualization.

According to this hierarchy, people are motivated to achieve, and their

motivation for safety needs to be satisfied before their need for love. It is the need for

self-actualization that Maslow has described in the greatest detail. Self-actualization,

the highest and the most elusive of Maslow’s needs, is the motivation to develop one’s

full potential as a human being. According to Maslow, self-actualization is possible only

after the other needs in the hierarchy are met. Maslow cautions that most people stop

maturing after they have developed a high level of esteem and thus do not become

self-actualized. Many of Maslow’s writings focus on how people can reach the elusive

motivational state of self –actualization. The idea that human needs are hierarchically

arrange is an appealing one. Maslow’s theory stimulates us to think about the ordering

of motives in our own lives. However, the ordering of the needs is somewhat

subjective. Some people might seek greatness in a carrier to achieve self-esteem,

while putting on hold their need for love and belongingness.

 This study is supported by the theory of Expectation-Confirmation Theory

(ECT) asserts that consumers’ intention to repurchase a product or service is

significantly influenced by their prior experience with that product or service (Anderson

and Sullican, 1993; Oliver, 1980). Satisfactory experience is a key enabler for building

and retaining long-term consumer relationships. ECT is widely used in customer

behaviors literature to study consumer satisfaction (Anderson and Sullican, 1993),

post-purchase behavior (such as repurchase) (Dabolkar, Shepard and Thorpe, 2000).

Oliver (1993) applied the concept to the consumption context and defined it as the

summary psychological state resulting when the emotion surrounding disconfirmation

expectations is coupled with the consumer’s prior feelings about the consumption

experience. Both definitions underscore a psychological or affective state related to

and resulting from a cognitive appraisal of the expectation-performance discrepancy

(confirmation). Lower expectations and/or higher perceived performance lead to a

greater confirmation, which results in positive influences on customer satisfaction and

continuance intention.

Conceptual Framework

This working paper serves as evidence to a small firms benefit from business

planning as new ventures are assessed and started. Yet relatively few make use of

business planning, or go about such planning in an inconsistent way that invites errors

and omissions.

Furthermore, it is viewed that although the Stage-Gate Principles believed that

the successful entrepreneur uses product, process or service innovation to exploit

change and create customer value. To determine if a new venture or product has the

potential to become a viable business opportunity, an entrepreneur should undertake a

vigorous opportunity evaluation or screening process. The screening involves

answering a series of questions that shed light on the potential for the idea to actually

become a product or service upon which a business can be created. Entrepreneurs

who fail to evaluate their venture often discover, after they have invested a great deal

of time and money, the answers to the questions that the opportunity evaluation

process would have revealed.

Consistent with the concepts mentioned above, the framework below is formulated

to explain the relationship among the variables in the study. The antecedent variables are

the profile such as sex, age, civil status, educational attainment, and occupation. The

independent variable will be the correlates in terms of product, price, people, and place

while the customers’ satisfaction will be the management, food services, sanitary, and staff

development.

Paradigm of the Study

Independent Independent Dependent

Variables Variables Variables

Profile Correlates

 Sex  Product Customer

 Age Satisfaction
 Price
 Civil status
 Educational attainment  People
 Management
 Occupation  Place
 Food services
 Sanitary
 Staff development.

Figure 1. The schematic diagram between the independent and dependent variable
Definition of Terms

To give the reader a clearer understanding of the study, important terms used

herein will be defined both conceptually and operationally.

Management is the act or skill of controlling and making decisions about a

business, department, sports team, etc. (Merriam-Webster Online, 2014)

In this study, management is the referred to the marketing chain, supply and

demand assessment, cost analysis, manager, documentation and financial aspects as

identified in the study.

Food Services is the preparation, delivery, serving, etc., of ready-to-eat foods.

(www.dictionary.com, 2014)

In this study, food service is referred to the staff, delivery of dietary needs,

quality of food, food policies, food served, strategies, utensils, and nutritional value.

Sanitary is characterized by or readily kept in cleanliness.

((www.freedictionary.com, 2014).

In this study, sanitary is referred to the health education of staff, environment,

appropriate uniform, inspection score, hand washing signage’s, toilet cleanliness and

equipment availability.

Staff Development is a process that assists individuals in an agency or

organization in attaining new skills and knowledge, gaining increasing levels of

competence, and growing professionally (www.freedictionary.com, 2014)

In this study staff development is referred to the trainings for service staff,

employee development programs, are catalyst of change and innovations,

expressions, and employees

 Product refers to something that is made or to be sold or used. (Meriam

Webster, 2016)

In this study, Products are the food products being sold by campus food stall

operators at Central Philippine University.

Price refers the amount of money that you pay for something or that something

costs. (Meriam Webster, 2016)

In this study, Price is a determinant indicator that food stall operators practiced

in order for Business Management students buy from them.

Place is a specific area, building that is used for a specific purpose. (Meriam

Webster, 2016)

In this study, place is a determinant factor where food stall operators chose a

specific distribution area at Central Philippine University.

Promotion is something that is done to make people aware of something.

(Meriam Webster, 2016)

In this study, promotions are the schemes campus food stall operators

practiced in order to attract the respondents to buy from them.

Significance of the Study

The results of the study would provide significant benefits to the following:

Business Owners). The coffee shop owners can engage in income generating

projects (IGPs) with initial intention of enriching their main trilogy functions. They are

one in the philosophy that the ultimate measure of the effectiveness of any coffee shop

in its contribution to the impact on the educational, economic, social and political well-

being of the Ilonggos, and the community they serve. These are all geared toward

development of quality human resources and technologies supportive to people

empowerment, global competitiveness and sustainable development. Through this

production function, Iloilo city embark on various activities that aim to help address the

financial constraints after the pandemic.

Customers. This will also help the customers who are better leaders in service

industry and future entrepreneurs. This will benefit also the future researchers for this

will serve as their reference.

Coffee Shop Operators. This study provides the operators a clear

understanding with regard to their strengths and weaknesses. Their awareness to their

management, food service, sanitary and staff development will enable them to develop

some features of their business, and provides them a better guide to evaluate their

customers’ preferences to ensure high satisfaction.

Future Researchers. This study will provide them information to amplify their

knowledge about assessment of coffee shop in terms of management, food service,

sanitary and staff development. This will also guide them in conducting research

associated with this subject matter. They can also use this study as their frame of

reference for their research study.

Scope and Limitation of the Study

This descriptive and correlational research which aims to determine the

correlates in terms of product, price, people, and place of the customers satisfaction in

terms of management, food services, sanitary, and staff development of the coffee

shops. The participants of this study will be the 50 customers of coffee shops in Iloilo

city. The convenience sampling method will be employed in the selection of the

participants in the study.

A researcher-made questionnaire in terms of product, price, people, and place

of the customers satisfaction in terms of management, food services, sanitary, and

staff development will be used to gather the data needed in this study.
 To analyze the obtained data, the following statistical tools will be utilized:

frequency count, percentage analysis, means, and standard deviations for the

descriptive data analysis while Mann-Whitney U test, Kruskal Wallis test and

Spearman rho will be used for the inferential data analysis. The level of significance

used as the criterion for the acceptance and rejection of the null hypothesis will be set

at .05. All statistical data processing and computations will be done using the

Statistical Package for Social Sciences (SPSS) Software.

Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents the samples of related literature are presented according

to concept, subject or issue being supported, and based on the objectives and

statement of the problem. Reports on studies gathered have direct relevance to the

concepts presented in the study.

The Stage-Gate Principles and Background

The new venture development process is often haphazard and disorganized.

There are often serious gaps—omissions of steps and poor quality of execution—in

new venture development. During the 1960s and 1970s companies began to be

concerned with the high failure rate in new product development. Failure was

attributed to many reasons, including inadequate market analysis, lack of effective

marketing, higher costs than anticipated, and technical production problems or defects.

One solution was to implement a formal new product development process that would

produce more successes. This process is the stage-gate process (Cooper, 2017).

The stage-gate process separates the innovation or new venture development

process into a number of defined stages. Each stage is comprised of a set of activities
which must be 4 create a business plan. The approach uses a series of six discrete

stages set within the framework of the commercialization process. Each stage is

designed to gather information needed to evaluate a critical dimension of the venture

before proceeding to the next stage or decision point. Within each stage entrepreneurs

are presented with questions directed at eliciting the information necessary to assess a

new venture. To aid in the answering of questions sets of “considerations” are

provided to stimulate thinking and analysis on areas relevant to each of the questions.

Resources are also provided as references and background on topics, such as how to

define goals and conduct an industry assessment. Because of the way that the AICC

Business Planner methodology has been constructed, users can create a business

plan of higher value through both the systematic process they follow and the electronic

facilitation they receive as they progress through components of the business plan.

completed to answer a specific set of questions concerning the venture’s viability. A

gate must be passed before moving on to the next stage. Each gate tests how well the

work for a stage was completed—it is a place to review the activity completed and

make a decision as to whether the project should be continued. The first empirically

based attempt to describe such a sequential process for product development

management outlined six stages for the development activities (developed by Booz,

Allen and Hamilton in 1968). These stages were

• Exploration (idea generation),

• Screening (initial project review and selection),

• Business analysis (build a business case),

• Development (product development),

• Testing (test marketing), and

• Commercialization (product launch).

 In the stage-gate process every step necessary to complete a particular

venture task is linked to the next by a gate at which decisions for the continuation of

the venture are made. Gates can by defined a number of ways, for instance by time,

date or content. A stage-gate is defined as a decision point where specific criteria must

be fulfilled before the go-ahead can be given to proceed to the next stage of the

process. For instance, at the end of the screening stage an entrepreneur, project

manager or development team would review the work done in that stage and

determine if the quality of execution was acceptable and that they had selected a

viable project given the information collected and analyzed thus far.

Refinements of the aforementioned framework expanded the focus from

technology to a cross-functional approach in which functions such as marketing and

manufacturing are integrated at all stages. A cross-functional stage-gate process

builds a strong market orientation into the analytical framework. Robert Cooper’s work

introduced the possibility of overlapping the stages for greater speed and a less rigid

stage-gate system. Gates can be conditional or situational, meaning that a project can

be given a go decision even when substantial information is missing (as opposed to

holding the project for later development or canceling the project), on the

understanding that the missing information is gathered later before a certain date.

Gassmand and von Zedtwitz report that most of today’s industries and well-

managed R&D processes rely on some form of the stage-gate process. They suggest

that the stage-gate methodology is particularly successful in areas and industries

dominated by market-pull innovation (rather than by technology-push). They further

suggest that the stage-gate process can be successfully used with innovations in

existing markets (e.g. transfer of product development competence); new applications

of existing products and services (e.g. relaunch of an adapted product in a new

market); those innovations with high costs of product development and market
introduction (e.g. initial product releases); and ventures that exhibit limited uncertainty

in terms of expected innovation (e.g. incremental innovation).

Customer Satisfaction

Various scholars proved that overall service quality creates customer

satisfaction and customer satisfaction leads to service quality. And this overall service

quality is the combination of relational and core qualities. What actually delivered is a

core quality and how it is delivered is a relational quality (McDougall & Levesque,

1992). From the view point of service provider, gaining customer satisfaction is very

important because it is very important drive to achieve customer loyalty, increasing

goodwill and creating positive word of mouth (Bearden & Teel, 1983). All in all,

customer satisfaction has a positive impact on service sector.

Customer satisfaction plays a vital role in the success of any service sector

because loyal customers are the true assets of the organization. It is also believed that

improvement in service quality will boost customer loyalty. WallinAndreassen, (1994)

argued that customer loyalty is originated through reputation and image of service

sector. He also advocated that corporate image and corporate financial performance

are linked with each other. Likewise, Loureiro&Kastenholz, (2011) examined that

company image has a positive effect on customer loyalty especially in service sector.

To encapsulate, customer loyalty has a positive influence in service sector.

A customer is a stakeholder of an organization who provides payment in

exchange for offer provided by the organization with the aim of fulfilling their needs and

to maximize satisfaction. Therefore, customers want greatest value for their money. So

they are working hard to select greatest products and services. Satisfaction can also

be a person’s feelings of pleasure or disappointment that results from comparing a

product’s perceived performance or outcome with their expectations (Kotler & Keller,

2011).

Customer satisfaction is defined as “the individual’s perception of the

performance of the products or services in relation to his or her expectations.

Customer Satisfaction helps in measuring whether the products and services supplied

by company meet or further exceed the expectations of customers. Customer

satisfaction is an indicator which shows whether the customers will make repurchase

decision or not along with their loyalty (Boonlertvanich, 2011). It also describes that the

feeling of happiness which is gained by achieving his or her goals can be considered

as satisfaction.

Customer satisfaction is a key factor in organization that defines long term

involvement of customer. Similarly, Mittal & Kamakura (2001) revealed that customer

satisfaction is crucial element of customer wishes for upcoming purchases. Therefore,

those customers who are satisfied are ready to share their positive thoughts with

others (Mittal & Kamakura, 2011)

Nowadays, banking sector is also considering customer satisfaction as one of

the factor for the smooth functioning of the organization. Therefore, banks are

implementing new and advanced tool and technique to satisfy their customer such as

e-banking, ATM machine. Hence, competitiveness and convenience are the two major

features which have impact on levels of customer satisfaction in any banking sector

(Parasuraman et al., 1988). Therefore, measuring satisfaction will help to identify the

status of the organization regarding customer satisfaction (Badara et al., 2013). In this

competitive world, customer needs have to be addressed properly by different service

sectors. In such case many service providers are shifting their focus from product to

customer. Patterson & Spreng (1997) stated that satisfaction plays vital role in

attracting customer. Customer satisfaction has a great importance in the service

sectors especially in banking field because customer satisfaction is directly linked with

loyalty and goodwill of the organization (Ravichandran et al., 2010). Also, research

performed by Mahamad and Ramayah (2010) and Caruana (2002) revealed that

customer satisfaction can be considered as mediator between service quality and

loyalty.

Marketing Strategy

According to Kotler (2006), marketing strategy is a process that can allow an

organization to concentrate its limited resources on the greatest opportunities to

increase sales and achieve a sustainable competitive advantage. A marketing strategy

should be centered on the key concept that customer satisfaction is the main goal. It is

a method of focusing an organization’s energies and resources on a course of action

which can lead to increased sales and dominance of a targeted market niche. A

marketing strategy combines product development, promotion, distribution, pricing,

relationship management and other elements; identifies the firm’s marketing goals,

and explains how they will be achieved, ideally within a stated timeframe. It determines

the choice of the target market segments, positioning, marketing mix, and allocation of

resources. It is the most effective when it is an integral component of overall firm

strategy, defining how the market.

The four Ps are the categories that are involved in the marketing of a good or service,

and they include product, price, place and promotion. Often referred to as the

marketing mix, the four Ps are constrained by internal and external factors in the

overall business environment, and they interact significantly with one another.
 Klein (2007) states that Marketing mix, otherwise known as 4Ps can be

highlighted as one of the fundamental concepts in marketing and focuses on four

aspects of the business practice: product, price, promotion and place. The practical

application of marketing mix by businesses varies according to their size, chosen

business strategies, geographical location, competitive edge and a range of other

factors.

According to Kumar (2010), marketing mix is the terms used to describe the

combination of methods employed by a business in order to achieve its objectives by

marketing its products and services effectively to a specific target group.

Bootwala et al (2009) mentioned the definition of marketing mix as offered by

Philip Kotler according to which “marketing mix is a set of controllable variables and

their levels that the firm uses to influence the target market” A range of researchers

have explored the role of marketing mix in attracting new customers and increasing the

level of loyalty of existing customers i.e. customer retaining. The studies of such a

nature can be divided into two groups.

The first group of researchers like Pickton and Broderick (2005), Lamb et al

(2008), Kumar (2001) and others have researched these issues directly, trying to

establish the connection between the implementation of marketing mix strategy by a

company and the impact of the strategy in terms of customer attraction and retention.

Generally, there are no vast differences in the conclusions of works in this

direction and they indicate that the successful implementation of marketing mix

strategy in terms of customer attraction and retention does not depend on which

element(s) of marketing mix the company concentrates on as a source of competitive

edge, but it greatly depends on the level of effectiveness and efficiency by which the

company is pursuing its chosen strategy.

 In other words, according to authors from this group the viewpoint which states

that concentrating on promotion element of marketing mix for customer attraction and

retention is more effective than concentrating on place element for instance, is invalid.

And regardless of the choice of marketing mix elements as a source of competitive

edge, companies should adopt effective measures and efficiently implement them if

they aim to improve the level of customer attraction and retention.

The second group of researchers that include Moller (2006), Kurtz et al (2009),

Fill (2006), Egan (2007) and others, on the other hand, do not explore the impact of

marketing mix in customer attraction and retention directly. Instead, these researchers

focus on overall effectiveness of the concept, critically analyzing its validity in the

current market environment.

Authors ( Moller (2006), Kurtz et al (2009), Fill (2006), Egan (2007) etc.) agree

that although marketing mix concept has been a leading marketing framework for

several decades the level of its effectiveness has been compromised in the current

market environment taking into account such factors as increasing level of importance

of online marketplace, technological advancement, increasing forces of globalization

etc.

However, at the same time, the above-mentioned authors from the second

group do not offer to dismiss marketing mix concept as invalid altogether. Instead, the

authors maintain taking into account additional factors internal and external factors as

well when making decision related to the elements of marketing mix.

As the product is the item being sold to the customer, the thing that will bring in

money, its features and design need careful consideration. Whether the firm is

manufacturing the product or purchasing the product for resale, they need to

determine what product features will appeal to their target market. When an

organization introduces a product into a market, they must ask themselves a number
of questions: (1) Who is the product aimed at? (2) What benefit will customers expect?

(3) How does the firm plan to position the product within the market? (4)

What differential advantage will the product offer over their competitors?

Kotler suggested that a product should be viewed in three levels. Level 1: core

product which address the concern, “What is the core benefit your product offers?”

Level 2: the actual product. The strategy at this level involves organizations branding,

adding features and benefits to ensure that their product offers a differential advantage

over their competitors. Level 3: the augmented product. What additional non-tangible

benefits can you offer? Competition at this level is based after sales service,

warranties, delivery and so on.

When placing a product within a market, many factors and decisions have to be

taken into consideration. These includes: product design, product quality which has to

be consistent with other elements of marketing mix, product features, which answers,

“What features will you add that may increase the benefit offered to your target

market?”, “Will the organization use a discriminatory pricing policy for offering these

additional benefits?” and branding. One of the most important decisions a marketing

manager can make is about branding. The value of brands in today’s environment is

phenomenal. Brands have the power of instant sales; they convey a message of

confidence, quality and reliability to the target market. (Kotler and Armstrong, 2004)

Pricing is the most important element of marketing mix, as it is the only mix,

which generates a turnover for the organization. The remaining 3P’s are the variable

costs for the organization. It costs to produce and design a product; it costs to

distribute a product and costs to promote it. Price must support these elements of the

mix. Pricing is difficult and must reflect supply and demand relationship. Pricing a

product too high or too low could mean a loss of sales or the organization. Pricing
should take into account the fixed and variable costs, competition, company objective,

proposed positioning strategies and target group willingness to pay.

An organization can adopt a number or pricing strategies. The pricing

strategies are based much on what objectives the company has set itself to achieve.

Penetration pricing, where the organization sets, a low price to increase sales and

market share; skimming pricing where the organization sets an initial high price and

then slowly lowers the price to make the product available to a wider market, the

objective is to skim profits of the market layer by layer; competition pricing, that is,

setting a price in comparison with competitors; product line pricing, that is, pricing

different products within the same product range at different price points. An example

would be a video manufacturer offering different video recorders with different features

different prices. The greater the feature and the benefit obtained the greater the

consumer will pay. This form of price discrimination assists the company in maximizing

turnover and profits. Another strategy is bundle pricing where the organization bundles

a group of products at a reduced price.

Other pricing strategies include psychological pricing where the seller

considers the psychology of price and the positioning of price within the market place.

The seller will therefore charge 0.99 instead 1.00 or Php 199 instead of Php 200;

premium pricing where price is set high to reflect the exclusiveness of the product, and

optional pricing, whereby an organization sells optional extras along with the product to

maximize its turnover.

Most people value the time or experience over the actual price of an

item. According to Jennifer Aaker, the General Atlantic Professor of Marketing at

Stanford Graduate School of Business:"Because a person’s experience with a product

tends to foster feelings of personal connection with it, referring to time typically leads to

more favorable attitudes—and to more purchases." (sixrevisions.com, 2016)

 Place strategies refer to how an organization will distribute the product or

service they are offering to the end user. The organization must distribute the product

to the user at the right place at the right time. Efficient and effective distribution is

important if the organization is to meet its overall marketing objective. If an

organization underestimates demand and customers cannot purchase products

because of its profitability will be affected.

Two types of channel of distribution methods are available. Indirect distribution

involves distributing the product by the use of an intermediary for example, a

manufacturer selling to a wholesaler and then on to the retailer. Direct distribution

involves distributing direct from a manufacturer to the consumer the advantages of

direct distribution is that it gives the manufacturer complete control over their product.

Depending on the type of product being distributed, there are three common

distribution strategies available. Intensive distribution is commonly used to distribute

low priced or impulse-purchase products like chocolates and soft drinks. Exclusive

distribution involves limiting distribution to a single outlet. The product is usually highly-

prices, and requires the intermediary to place much detail in its sell. An example of

would be the sale of vehicles through exclusive dealers. In selective distribution, a

small number of retail, outlets are chosen to distribute the product. Selective

distribution is common with products such as computers, televisions household

appliances, where consumers are willing to shop around and where manufacturers

want a large geographical spread. If a manufacturer decides to adopt an exclusive or

selective strategy they should select an intermediary who has experience in handling

similar products, credible and is known by the target. (learnmarketing.net)

A successful product or service means nothing unless the benefit of such a

service can be communicated clearly to the target market. An organization’s

promotional strategy can consist of: advertising, which is any non-personal paid form
of communication using any form of mass media; public relations, which involve

developing positive relationships with the organization media public. The art of good

public relations is not only to obtain favorable publicity within the media, but it also

involves being able to handle negative attention successfully sales promotion, on the

other hand, is commonly used to obtain an increase in short-term sales like using

money off coupons or special offers personal selling is a type of strategy which entails

selling a product service one on one.

The development of the World Wide Web has changed the business

environment forever. Dot come fever has taken the industry and stock markets by

storm. The e-commerce revolution promises to deliver a more efficient way of

concerning business. Shoppers can now purchase from the comfort of their home 24

hours a day, 7 days a week. Owing a website is a now a crucial ingredient to the

marketing mix strategy of an organization. Consumers can now obtain instant

information on products or services to aid them in their crucial purchase decision.

Advertisers have now moved their money over to the internet as customers are on the

average spending more time online then watching TV. Popular ways to advertise seem

to be with banners and pop ups. (Kotler, 2006)

Peter Drucker observes that a company’s first task is “to create customers.” But

today’s customers face a vast array of product and brand choices, prices, and

suppliers. Customer estimate which offer will deliver the most value. Customers are

value-maximizes, within the bounds of search costs, and limited knowledge, mobility,

and income. They form an expectation of value and act on it. Then they learn whether

the offer lines up to the value expectation and this affect their satisfaction and their

repurchase probability (Kurtz, 2008).

Hoyer and MacInnis (2008) provides that knowledge of what consumers need,

want, expect is a crucial concern of companies focused on building long term

relationships. Furthermore, Kotler (20003) shares that today’s customers are

becoming harder to please. They are smarter, more price conscious, more demanding,

less forgiving, and they are approached by many more competitive with equal or better

offers.

Evans and Dean (2003) see that the customer is the judge quality.

Understanding customer needs, both current and future, and keeping pace with

changing markets require effective strategies for listening to and learning customers,

measuring their satisfaction relative to competitors and building relationships.

Customer needs—particularly differences among key customer groups must be linked

closely to an organization’s strategic planning, product design, process improvement

and workforce training activities.

Evans and Dean (2003) further enthused that satisfaction and dissatisfaction

information are important because understanding them leads to the right improvement

that can create satisfied customers who reward the company with loyalty, repeat

business and positive referrals. Creating satisfied customers include prompt and

effective response and solutions to their needs and desires as well as building and

maintaining good relationships. A business can achieve success only by

understanding and fulfilling the needs of customers.

Many companies are aiming for high satisfaction because customers who are

just satisfied will still find it easy to switch suppliers when a better offer comes along.

Those who are satisfied are much less ready to switch. High satisfaction or delight

creates an emotional affinity with the brand, not just a rational preference, and this

creates high customer loyalty (Kotler et al, 1999).

Satisfaction can be measured in terms of the gaps between what customers

expect and what they perceive they have received (Hoyer and MacInnis, 2008).
Perception is the meaning that a person attributes to incoming stimuli a gathered

through the five senses – sight, hearing, touch, taste, and smell (Kurtz, 2007).

Hoyer and MacInnis (2008) emphasizes that the gaps between what the

customers expect and what they perceive they have received can produce favorable or

unfavorable impressions. Goods and services may be better or worse than expected.

Kurts (2007) affirms this in saying that a buyer’s behavior is influenced by his or her

perception of a good or service.

Kotler et al. (2009) held that satisfaction also depend on service quality.

Service quality refers to the expected and perceived quality of a service offering. And it

has a huge effect on the competitiveness of a company. Unfortunately, poor service

cut into a firm’s competitiveness (Kurtz 2007). Kotler et al. (2009) also added that the

seller has delivered quality whenever the seller’s product or service meets or exceeds

the customer’s expectations.

Parasuranan et al. (1985) shared the above view when they suggested that it

may be the perception of service quality that leads to customer satisfaction. This

means that if the customer perceives the service to be high quality, then the customer

will be satisfied with it. Conversely, some others believe that if the consumer is

satisfied with the service, they perceive it to be of high quality.

Delivery of big quality services is one of the most important and most difficult

tasks any organization faces. It is the customers, not the organization, who evaluate

service quality (Pride and Ferrel 2010). This is confirmed by Nelson (2011) when he

held that a strive towards increased customer perceived relationship quality should

take off from the customer’s own perspective since the customer itself knows best

what factors in the relationship that are creating value and personnel. Implied in this

trichotomy is the notion that service quality involves more than outcome; it also

includes the manner in which the service is delivered. McDaniel et al. (2010) pointed
out that many services involve ongoing interaction between the service organization

and the customer. The idea is to develop strong loyalty by creating satisfied customers

who will buy additional services from the firm and are unlikely to switch to a competitor.

Satisfied customers are also likely to engage in positive word-of-mouth

communication, thereby helping to bring in new customers.

The consumer's decision process consists of six basic stages: (1) stimulus, (2)

problem awareness, (3) information search, (4) evaluation of alternatives, (5)

purchase, and (6) post purchase behavior.

A stimulus is a cue or a drive. When one talks with friends, fellow employees,

family members, and others, social cues are received. The distinguishing attribute of a

social cue is that it comes from an interpersonal source not affiliate with the seller. A

second type of stimulus is a commercial cue, which is a message sponsored by a

manufacturer, wholesaler, retailer, or other seller. The objective is to interest consumer

in a particular product or store. A third type of stimulus is a noncommercial cue, which

is a message received from an impartial source such as Consumer Reports or the

government. This cue has higher credibility because it is not affiliated with the seller. A

fourth type of stimulus is a physical drive. This occurs when a person's physical

senses are affected. Thirst, cold, heat, pain, hunger, and fear cause physical drives.

At the problem awareness stage, the consumer recognizes that the good or

service under consideration may solve a problem of shortage or unfulfilled desire.

Recognition of shortage occurs when a consumer becomes alerted to the fact that a

product needs to be repurchased. A product such as a suit may wear out. The

consumer may run out of an item such as razor blades. Service may be necessary for

a product such as an automobile. It may be time for a periodic service such as an eye

examination. In each of these examples, the consumer recognizes a need to replenish

a good or service.
 Recognition of unfulfilled desire occurs when a consumer becomes aware of

product not purchased before. The item may improve self-image, status, appearance

or knowledge in a manner that has not been tried before or it may offer new

performance characteristics not previously available. In either case the consumer is

aroused by a desire to try something new.

After the consumer decides a shortage or unfulfilled desire is worth

consideration information is gathered. Information search requires listing alternative

products that will solve the problem at hand and determining the characteristics of

each.

At the evaluation of alternatives stage, there is enough information to select

one alternative from the list of choices. Sometimes this is easy, when one alternative is

clearly superior to the others across all characteristics. A product with excellent quality

and a low price will be an automatic choice over an average quality, expensive one.

Often the choice is not that simple, and the consumer must carefully evaluate

alternatives before making a decision. If two or more alternatives are attractive, the

consumer needs to determine what criteria or attributes to evaluate and their relative

importance. Then the alternatives are ranked and a choice made.

Following selection of the best alternative, the consumer is ready for the

purchase act: an exchange of money or a promise to pay for a product. Three

important considerations remain: place of purchase, terms, and availability. The place

of purchase may be a store or nonstore location. Purchase terms involve the price and

method of payment. Availability refers to stock-on-hand and delivery. Stock-on-hand is

the quantity of an item a seller has in inventory. Delivery is the time from when an

order is placed by the consumer until it is received and the ease with which an item is

transported to its place of use.

 After a purchase, the consumer frequently is involved with post-purchase

behavior; either further purchases or re-evaluation. In many cases, buying one product

leads to further purchases.

The consumer may also re-evaluate a purchase. Satisfaction usually results in

repurchase when the product wears out and positive communication with other

consumers interested in the same item. Dissatisfaction frequently results in brand

switching and negative communications with other consumers.

Dissatisfaction is often the result of cognitive dissonance or doubt that the

correct decision has been made. The consumer may regret making a purchase or wish

another alternative was chosen. To overcome cognitive dissonance, the firm must

realize that the decision process does not end with the purchase. Aftercare such as

follow-up telephone and service calls, advertisements aimed at purchasers, and

extended warranties helps reassure consumers, particularly for important and

expensive decisions with many alternatives. (studymarketing.org, 2015).

Intention can be regarded as an indication of a person's willingness to perform

the behavior, and it is an immediate antecedent of behavior. From the perspective of

academic research, Intention is the dependent variable which is predicted by an

independent variable and it varies from time to time; as the time interval increases, the

lower is the correlation between intention and action (Ajzen, 1991; Ajzen & Fishbein,

1980; Han and Kim., 2010; Kim and Han, 2010). Davis et al., (1989) and Taylor &

Todd (1995) found in their studies that intention is a strong predictor of behavior.

Phungwong (2010) concluded that the intention to purchase is an antecedent of a

purchase-behavior.

Local studies
 In the Philippines, coffee shop is an area for growth. Aside from the

development of high rise buildings in the Greater Manila area, nearby provinces are

now seeing much land development with its continuous expansion for horizontal

development projects in the nearby provinces such

as Laguna, Cavite, Rizal, Bulacan, Pampanga and Batangas.

The major expansion in vertical real estate buyers development outside Metro

Manila are in Tagay south of the metropolis, Cebu and Iloilo in the Visayas, Cagayan

de Oro and Davao in Mindanao, where medium-to-high rise buildings are beginning to

appear.

Foreigners are generally not allowed to hold more than a 40% interest in any

land, although there is an exemption for pensioners who deposit more than US$50,000

in a specified account. Philippine rules distinguish between a house and the land it sits

on.

The legal arrangement for the right to occupy a dwelling in some countries is

known as the housing tenure. Types of housing tenure_include owner,

occupancy, tenancy, housing cooperative, condominiums (individually parceled

properties in a single building), public housing, squatting, and co housing. The

occupants of a residence constitute a household.

Residences can be categorized by, if, and how they are connected to

neighboring residences and land. Different types of housing tenure can be used for the

same physical type. For example, connected residents might be owned by a single

entity and leased out, or owned separately with an agreement covering the relationship

between units and common areas and concerns.

Every business owner must figure out how location contributed to the success

of the business -- and choose a spot accordingly. For some businesses, the classic

advice "location, location, location" is right on the mark -- location can mean the
difference between feast or famine. But for other enterprises, location may be much

less important than finding affordable rental space. In fact, location is almost irrelevant

for some businesses: service businesses that do all their work at their customers'

locations (such as roofers and plumbers) and businesses that have little contact with

the public (such as mail-order companies, Internet-based businesses, and

wholesalers). If these types of companies can pass on rent savings to their customers

and their profit margin, picking a low-cost spot in an out-of-the-way area might be an

advantage.  Keep in mind that different types of businesses attract customers in

different ways. One key distinction is foot traffic versus automobile traffic. For example,

if you're opening an urban coffee shop, you may assume your customer volume to be

highest if there's lots of pedestrian traffic nearby during the hours you plan to be open.

On the other hand, for an auto repair shop, the choicest locale is a well-traveled street

where the shop will be seen by many drivers who can easily pull into the lot.

Also consider whether it would benefit your business to be around similar

businesses that are already drawing the type of customers that you want. A women's

clothing store, for example, would no doubt profit from being near other clothing shops,

since many people shopping for clothes tend to spend at least a few hours in a

particular area.

Ultimately, the perfect location for any business is a very individual matter.

Spend some time figuring out the habits of the customers you want to attract, and then

choose a location that fits.

Promotion is one of the market mix elements or features, and a term used

frequently in marketing. The specification of five promotional mix or promotional plan.

These elements are personal selling, advertising, sales promotion, direct marketing,

and publicity. A promotional mix specifies how much attention to pay to each of the five

subcategories, and how much money to budget for each. A promotional plan can have
a wide range of objectives, including: sales increases, new product acceptance,

creation of brand equity, positioning, competitive retaliations, or creation of a corporate

image. Fundamentally, however there are three basic objectives of promotion. There

are different ways to promote a product in different areas of media. Promoters use

internet advertisement, special events, endorsements, and newspapers to advertise

their product. Many times with the purchase of a product there is an incentive like

discounts, free items, or a contest. This is to increase the sales of a given product.

The term "promotion" is usually an "in" expression used internally by the

marketing company, but not normally to the public or the market - phrases like "special

offer" are more common.

Things in which tropical countries differ from countries of other climate zones.

The architecture as well as the used construction materials, shows a clear adjustment

to the specific climate conditions. More important aspect that influences the

architecture is the financial position of the family. With less financial possibilities the

architecture and visible construction materials are simpler and more derived from

natural surroundings. Wooden planks, board, bamboo, and straw are the basic

materials for traditional houses. Geographically, the more remote the region is, as

mountain areas are, the more natural environment delivers the construction materials

for houses.

If you're starting a new business or continuing to run an existing business

then it's clear you need strategies in place to help your business succeed.

If you've been running an existing business and you are still treading water

then it's clear you need to change the way you do things. If you've been doing the

same things year after year, expecting different results then you are insane

according to Albert Einstein...

 Insanity: doing the same thing over and over again and expecting different

results.

Too many businesses fail because they are purely thinking about their

bottom line - how much profit they made last year and how much profit they are

going to make next year instead of looking further down the line...and we aren't

talking about what kind of profits you are going to make in 10 years time. It is better

to consider what assets you have in your business and use them to improve your

business. Your assets are a big key to the success of your business, assets such

as customer list, employees, business systems and ventures with your business

partners.

Your mission statement should help you think about what you are trying to

achieve - if you haven't got one yet then you should definitely write your own

mission statement.

Compile a comprehensive SWOT Analysis (Strengths, Weaknesses,

Opportunities and Threats) of your business is critical to assess your opportunities,

generate business ideas and focus on which to go after.

Take a good look at your current marketing strategies. Don't be afraid to

experiment, try to tap into different markets - you never know until you've tried

something - don't assume something won't pay off until you've tried it - use a

scientific approach to your marketing strategies.

Set your company achievable goals - there is no point in shooting for the

moon when all you have is a long ladder! Failure is bad for moral so give yourself a

chance of succeeding. Set goals for several years into the future and break them

down into smaller more manageable chunks.

Make sure you track your progress; you need to have things in place to see

how well or how poorly you are performing. If you don't know how you are doing,
 how do you know what to change, or what aspects of your business you need to

focus on to bring them up to speed? Do you know how many unique visitors are

coming to your site each month? Do you know how much the average expenditure

is? Do you know the average profit per sale?

By using split testing where you just change one thing about your business

you can see if that has had a positive impact on your business or not. If you have

no way of monitoring the situation then you simply haven't a clue - you are

guessing - and guessing is usually bad for business. Try to take the guesswork

away from your business decisions.

You should know your target audience - if you don't know who your average

customer is then what hope do you have of selling to them? Once you know who

your customer is you can laser target them with great offers and target market

them so you are getting great bang for your buck.

In this day and age it is easier to start from small acorns - focus on what you

are good at - find your business niche. Once you have fully explored your niche

then you can move on and expand your business into other areas.

Synthesis

In the literature, it has been argued that the use of customer satisfaction may

be related to improved financial performance. Some of the studies indicated that

sophisticated capital budgeting techniques while the traditional methods showed an

insignificant relationship. However, similar reported a negative relationship between

the capital budgeting techniques and financial performance. This indicates that the

mere adoption of various analytical tools is not sufficient to bring about superior

performance and that, other factors such as marketing, product development,

executive recruitment and training, labor relations etc., may have a greater impact

on profitability.

Local studies on the other hand have mainly dealt with the application of the

capital budgeting techniques in listed companies and also in the banking sector.

Their findings indicate that discounted cash flow methods are not extensively being

used to appraise investment decisions. The report in the banking sector particularly

found the overwhelming application of the traditional capital budgeting techniques.

Thus, given these conflicting findings this study seeks to establish the factors

affecting the customers satisfaction of coffee shops.

Customer satisfaction is not a scientific theory, but merely a conceptual

framework that identifies the principal decision-making managers make in configuring

their offerings to suit consumers’ needs”. In order to explain the level of

implementation of strategy in a more effective way it is a good idea to provide the

explanation of the concept as suggested by some respected scholars in the field of

marketing, and also provide critical analysis of some of their contributions.

Kumar maintains that following variables should be defined and analyzed in

order to undertake the customer satisfaction strategies in the most efficient manner:

Firstly, the ways design and packaging are going to add value to the products. This

should be done taking into account the nature of the product and the expectations of a

target market, the product is aimed at. Secondly, finding the most appropriate pricing

strategy. Specifically, selection should be made by the companies from the available

pricing strategies of market-led pricing, skimming, destruction, price wars, penetration,

and cost-based pricing. Thirdly, decisions related to the location of the company and

its various business processes. Fourthly, ways in which the company is going to

promote its products. According to Belch and Belch, the role of promotion has

increased significantly because of increasing level of competition.

 The practical application of customer satisfaction concept can be explained in a

way that “a firm can vary its marketing mix by changing any one or more of these

ingredients. Thus, a firm may use one marketing mix to reach to one target market and

a second, somehow different marketing to reach to another target market”. This

statement reveals the flexibility of xustomer components in a way that strategy

adopted to different markets, taking into account the characteristics of each individual

market.

Chapter 3

Research Methodology

This Chapter presents the research design, the participants of the study, the

research instrument, the data gathering procedure, data processing procedure, and the

statistical tools to be used.

Research Design

This study will utilize the descriptive correlational research design. This design

is appropriate because the researcher would like to determine the correlates of the
customers’ satisfaction. The descriptive-correlational research design will be

considered an appropriate design for this study because it aims to find out the direction

and extent of relationship between two or more paired variables or two or more sets of

data. This type of design allows estimation of relationship between study variables. It

will help the researcher to find out whether the relationship between variables is

positive or negative as well as to determine how much variation is caused by one

variable in relation with the variation caused by another variable. Correlational

research, on the other hand, investigates the possibility of relationship between only

two variables. It involves collecting data to determine whether, and to what degree, a

relationship exists between two or more quantifiable variables (Fraenkel & Wallen,

2010).

The Respondents

The respondents of this study will be the 50 customers of coffee shops in ilolo

city. The convenience sampling method will be employed in this study.

Data Gathering Instrument

Survey questionnaire will be used to find out the satisfaction of the customers

towards the coffee shops in Iloilo city. The instrument will be consisting of four

categories on customer satisfaction such as management, food services, sanitary, and

staff development status while the correlates in terms of product, place, price, and

people. Each of these categories will have a series of statements that pertains to the

category that the statement belongs. All statements are answerable by Strongly Agree,

Agree, Undecided, Disagree, and Strong Disagree.

 The questionnaires will be presented to a panel of jurors for face and content

validation. The panel of jurors will be composed of experts in the fields of statistics

and research, business researches, tests and measurements, and evaluation. The

instrument has two parts, part I for the socio-demographic profile and the part II for the

main questionnaire on product, place, price, and people, management, food services,

sanitary, and staff development status of the Coffee shops. The socio-demographic

profile data includes sex, age, civil status, educational attainment, and occupation. The

second part is a item on product, place, price, and people, management, food

services, sanitary, and staff development status of the coffee shops.

Each item in the instrument will be answerable by any of the following

responses: “Strongly Agree, Agree, Undecided, Disagree, and Strong Disagree”. Each

participant will be asked to respond by putting a check mark on the box provided for

his or her answer among the 5 choices which come closest to his or her preference or

judgment to indicate how he or she prefers each situation.

5 = which means that the respondent strongly agrees to the statement

4 = which means that the respondent agrees to the statement

3 = which means that the respondent is neutral (undecided) to the statement

2 = which means that the respondent disagrees to the statement

1 = which means that the respondent strongly disagrees to the statement

The encircled number for each item represented the participant’s score. The

obtained mean score was computed. To interpret the respondent’s obtained mean

scores, the following scale of means and their corresponding interpretations were

employed.

Mean Score Interpretation

4.21 - 5.00 Very highly satisfied

 3.41 - 4.20 Highly satisfied

2.61 - 3.40 Moderately satisfied

1.81 - 2.60 Less satisfied

1.00 - 1.80 Not satisfied

Data Gathering Procedure

Upon the approval of the adviser to conduct the research, the research instrument

will be personally administered by the researcher to the target participants. The

participants will be chosen using the convenience sampling method. A letter of

communication will be sent to the coffee shops. Upon receiving the approval, the

questionnaires will be then distributed to the customers of coffee shops.

After the administration of the instruments, the data gathered will be tallied,

tabulated, computer-processed, analyzed, and interpreted using the Statistical

Package for the Social Sciences (SPSS) software.

Statistical Data Analysis Procedure

The data gathered for this study will be subjected to appropriate computer-

processed statistics employing the Statistical Package for the Social Sciences

software (SPSS). All inferential statistics will be set at .05 alpha level.

Mean. The mean will be used to determine the product, place, price, and

people, management, food services, sanitary, and staff development status of the

Coffee shops.

Standard deviations. The standard deviations will be used to determine the

participants’ homogeneity or heterogeneity in terms of product, place, price, and

people, management, food services, sanitary, and staff development status of the

Coffee shops.
 Percentage. The percentage will be used to determine the percentage of

participants’ to specified independent categories such as sex, and type of

respondents.

Frequency. The frequency will be used to determine the number of participants’

to specified independent categories such as sex, and type of respondents.

Mann-Whitney U test. The U test will be used to ascertain the significant

difference in the assessment towards the product, place, price, and people,

management, food services, sanitary, and staff development status of the Coffee

shops when classified as to specified variables with two categories.

Kruskal Wallis test. The H test will be used to ascertain the significant

difference in the the product, place, price, and people, management, food services,

sanitary, and staff development status of the Coffee shops when classified as to

specified variables with three or more categories.

Spearman rho. The Spearman rho will be used to ascertain the significant

relationship between the the product, place, price, and people, and management, food

services, sanitary, and staff development status of the Coffee shops.

.
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Studies, Vol. 1, No.1

May, 2023
To whom it may concern;
Dear Sir/ Madam
Greetings!
We are presently conducting our research study entitled “Correlates of
Customers’ Satisfaction towards Coffee Shops in Iloilo City” in partial fulfillment of
the requirements of the subject, Accountancy Research.
Recognizing your competence and expertise in applied business research, may I
ask if you could be one of our expert validators for our instruments. Your inputs,
suggestions and recommendations are very much valuable in improving our research.
Rest assured that the result of this survey will be kept confidential and shall only be
used for the purpose of this research.
Thank you very much for your positive response and invaluable support in the
conduct on our study.

Respectfully yours,
Agravante, Kyra Joy
Barodi, Janisah
Cabalinan, Mary Lyn
Jabagat, Nelrine Rose
Pasaporte, Jullien Nicole

Noted by;

Dr. Lucio T. Encio

Research Professor
Objectives of the Study

This study aims to determine the level among the correlates of customers’
satisfaction towards coffee shops in Iloilo City.

Specifically, this study seeks to answer the following objectives;

1. What is the profile of customer in terms of sex, age , civil status, educational

attainment, and occupation?

2. What is the level among the correlates of customers’ satisfaction towards

coffee shops in Iloilo City in terms of product, price, people, and place when taken as a

whole and classified according to sex, age, civil status, educational attainment, and

occupation?

3. What is the level of customers’ satisfaction towards coffee shops in Iloilo City

in terms of management, food services, sanitary, and staff development when taken as

a whole and classified according to sex, age, civil status, educational attainment, and

occupation?

4. Is there a significant difference in the level among the correlates of

customers’ satisfaction towards coffee shops in Iloilo City in terms of product, price,

people, and place when classified according to sex, age, civil status, educational

attainment, and occupation?

5. Is there a significant difference in the level of customers’ satisfaction towards

coffee shops in Iloilo City in terms of management, food services, sanitary, and staff

development when classified according to sex, age, civil status, educational

attainment, and occupation?

6. Is there a significant relationship between the level among the correlates of

customers’ satisfaction in terms of product, price, people, and place and the level of
customers’ satisfaction in terms of management, food services, sanitary, and staff

development?
Personal Profile

Instructions:
1. Please fill-out and/or check (✓) the appropriate space provided for your
answers.
2. Do not leave any item unanswered.
3. Rest assured that the information you shared in this study shall be kept with
utmost confidentiality.

Name (Optional):
_______________________________________________________
Sex:
___ Male
___ Female
Age:
___Below 25 years years old
___ 25 to 30 years old
___ 31 to 40 years old
___ 41 to 50 years old
___ above 50 years old

Civil Status:
___ Single
____Married
___Separated
___Widow(er)

Highest Educational Attainment:

___ Bachelor degree
___ Master’s degree
___ Doctorate degree

Occupation

__Private employee
__Government employee
__ Self-employed
__Others: (specify)_______
 Survey Instruments

Directions: Please indicate your level of agreement or disagreement with each

statement by checking your response using this scale:
5 = Strongly Agree.
4 = Agree
3 = Undecide/ Uncertain
2 = Disagree
1 = Strongly Disagree

Retai
Items Revise Reject Remarks
n
A. Product
1. I offer high quality products.
2. I offer different variety of products.
3. The product has unique brand name.
4. The product has good packaging.
5. The design of the product suits to the
preference and style of the customers.
B. Price
1. The price of the product is cheaper
compared to other competitors.
2. The price is negotiable.
3. The price is reasonable.
4. I offer low-price products.
5. I offer discounts to encourage them to make
purchase.
C. Place
1. The area is a convenient place for online live
selling.
2. The place is easy to locate.
3. The business location is accessible to public
transport.
4. The place is near on the main road.
5. The place is accessible for pick-up and
delivery.
D. People
1. I give importance to customer review and
feedbacks.
2. I treated my customers fairly.

3. I entertained my customers immediately.

4. My staffs and personnel are polite and
customer friendly.
5. I have good relationship to my staffs and
personnel.
Correlates of Customer Satisfaction

MANAGEMENT
1.
2. The marketing chain is properly organized
and well prepared.
3. The assessment for supply and demand is
conducted daily.
4. The cost analysis and income generation is
always presented properly and concisely.
The manager is always available and knows
about all facilities and different aspects of
services.
1. The documentation and financial aspects is
always available and accurate.

FOOD SERVICES
2.
3. Customer service staff (waiters, managers
and receptionist) has knowledge about the
products and food services.
4. The food service for students with offers
special dietary needs.
5. The quality of food served is excellent.
6. The snack bar has competitive food policies
that create a healthy food environment.
7. The snack bar has strategies to improve the
presentation of the food being served.
8. The food is served hot and fresh.
9. The menu has a good variety of items.
10. The food is tasty and flavorful.
11. Availability of sauces, utensil, napkins and
etc. was good.
12. The information about nutrition and caloric
content of food is always available.

SANITARY
13.
14. Customer service staff (waiters, managers
and receptionist) has undergone health
education.
15. The environment is always clean.
16. The cook and waiters always wear
appropriate dress/uniformand always wear
hairnet.
17. The inspection score about cleanliness and
sanitary procedure is always posted.
18. The snack bar has employee and customer
hand washing signage.
19. The restroom is always clean and the water,
soap, paper towels and drying device is
always available.

STAFF DEVELOPMENT
20.
21. Customer service staff (waiters, managers,
cook and receptionist) has undergone
trainings forfood-related emergencies such
as choking or severe food allergy.
22. The snack bar also provide employee
development programs.
The staff development has a program for
enhancing management/employee relations.
23.
24. All employees are given the opportunity to
express their opinions.
25. The employees are open for catalyst of
change and innovation.
Thank You!!!