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Republic of the Philippines

City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


School of Graduate Studies
Master in Business Administration Program

LEVEL OF QUALITY SERVICE AND CUSTOMER SATISFACTION ON UNO


FACTORY OUTLET AT TAGUIG CITY

A Thesis
Presented to the Faculty of the Graduate School
TAGUIG CITY UNIVERSITY

In Partial Fulfillment
Of the Requirements for the degree
Master in Business Administration

By

JUSTINE MARK D. ARIOLA


Master in Business Administration

2021
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND


Introduction

In today’s economic environment,


both small and large businesses are
required to
become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success
In today’s economic environment,
both small and large businesses are
required to
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success
In today’s economic environment,
both small and large businesses are
required to
become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


In today’s economic environment,
both small and large businesses are
required to
become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success
In today’s economic environment,
both small and large businesses are
required to
become more efficient and participate
in a competitive global market
(virtual and real)
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


where client expectations are
continually increasing. In this new
reality, quality is
critical for success
In today’s economic environment,
both small and large businesses are
required to
become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success.
In today’s economic environment,
both small and large businesses are
required to
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success.
In today’s economic environment,
both small and large businesses are
required to
become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success.
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


In today’s economic environment,
both small and large businesses are
required to
become more efficient and participate
in a competitive global market
(virtual and real)
where client expectations are
continually increasing. In this new
reality, quality is
critical for success.
Now a day’s economic situation, both small and large businesses are needed

to become more efficient and contribute in a competitive global market where

customer expectations are frequently increasing. In this new reality, service quality is

critical for success. According to (Accenture, 2020). In the present pandemic situation,

individuals with higher fear critically evaluate risk to themselves, their friends, and their

family. In this concern, customers’ negative emotions toward the COVID-19 threat can

be comforted with stores’ tangible and suitable actions in serving customers in the

situation of the pandemic (Akhtar, 2020). Therefore, when fear is high, retailers’


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


actions that relate to the safety and well-being of the society will have a stronger effect

on their social and rational rightfulness compared to situations in which fear is low.

The study of (Corciolani, 2019). pointed out regarding the limitations of the

belief of acceptability, lawfulness may need to be evaluated with respect to its

dynamic changes in response to social, economic, and political factors. In the recent

situation of the unprecedented pandemic of COVID-19, this study has focused on

examining service quality dimensions as qualifications of retailers’ pragmatic and

social legality. Though, future studies may include other social, economic, and political

factors as predictors of legitimacy. As mentioned by (Nunkoo, 2019). focused on the

direct correlation between service quality and consumers’ interactive purpose, the

results of the recent study highlight the importance of organizational rightfulness

determined by stores’ service quality for consumers’ behavioral intent.

Additionally, Service quality frequently suggests an inconsistency in customer

interpretations or opinions of service offered by the validation principle through service

administrations (Afthanorhan, 2019). Consequently, more businesses today are

focusing on producing a stronger customer engagement and continuing experience for

their customers (Zhong and Moon, 2020). Faithfulness also brings with its high

patronage and more sales, which corporations cannot risk losing (Aksar, 2019).

Therefore, different observations on evaluating and considering service quality

and customer satisfaction in an organization (Sokhan, 2018) are challenges both for

sellers and for beneficiaries.


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


Service quality is a difficult process to encounter the customer’s satisfaction in

order to remember and attract them. It isn’t just providing a customer need but giving

them an exceptional service through a highly motivated and well-trained team, good

quality product and an expert service. Service Quality can influence company’s

reputation. Poor service quality can create negative publicity and damage company’s

reputation. So, a business should continually monitor its service quality to ensure they

meet customer satisfaction, expectations, loyalty and retention. Businesses should

focus on managing customer relationships, and in particular, customer satisfaction

and loyalty in order to efficiently maximize revenues.

Background of the study

For the present, quality pointed as an important instrument to achieve better

service proficiency and performance. The capacity of a service provider to meet the

customer in a creative way where he can better run his business is referred to as

service quality. (Ramya, Kowsalya, & Dhanipriya, 2019). The service quality can be

increased by continuous improvement, rapidly finding and modifying service problems,

and integrating things to enhance customer satisfaction. Service quality gives an

organization a good advantage which maximizes growth (Mustaffa, 2019).

Equally, (Afthanorhan, 2019) points out that if the perceived service quality gives


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


society an expected service, where customers endorse the services to others due to

the satisfaction experienced.

To improve customer experience, employees of service administrations train

limit spanners to serve customers with attractive pleasure (Becker & Jaakkola, 2020).

Some businesses involve in emotional labor practices so as to foster the desired

emotional experience to their customers (Aksar, Kayani & Ali, 2019; Noh & Cha,

2020). This concept is based on the psychological orientation of emotional contagion,

which shares the belief that if a worker presents a jovial mood, customers are more

likely to experience the same feeling and emotions.

According to Bahadur et al. (2018) highlight that employees’ capability to

appreciate customers’ emotions and their prompt reactions to customer expectations

lead to the enhancement of service relations and customers’ overall satisfaction with

the society. During the COVID-19 pandemic, customer experiences are reformed by

how sufficiently businesses deliver quality service through show empathy, care, and

concern toward customers and the community (Diebner et al., 2020).

In Today’s, Customers must look closely at service quality when comparing

services. Customer service is critical to competing effectively. In the past, people

chose which companies they did business with based on price, or the product or

service offered, but today the overall experience is often the driver. offering amazing

customer service is Important if you want to retain customers and grow your business.

Today’s customer service goes far beyond the traditional telephone support agent. It’s
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


available via email, web, text message, and social media. Many companies also

provide self-service support, so customers can find their own answer at any time day

or night. Customer support is more than just providing answers; it’s an important part

of the promise your brand makes to its customers. Quality Service measures how well

a service is delivered, it is an assessment of how well a delivered service conforms to

the client’s expectations. The Quality service given by the businesses or individual

reflect themselves. Hence, the quality of service is an important feature for the service

provider to reach their goal and to understand their target satisfaction. Services quality

has five dimensions’ tangibility, reliability, responsiveness, assurance and lastly

empathy which thoroughly affect the employee’s productivity of the company.

Over the past periods, Uno Factory Outlet establish 1982 it is a private and the

nature of business is retail store. CITI Store, INC is a retail department creates

excellent merchandising store fundamental and quality services. It operates two retail

format the Centro Department (Department Store) Uno Factory Outlet (low price lines

stores) with 30 years in retail industry, the Citi store Inc., continuous to give quality yet

affordable merchandise and excellent customer service to the local market. The

branches are located at Cainta, Rizal, Angono, Rizal, Montalban, Daet, Camarines

Norte, San Pedro City, Tagaytay City, Trece Martines City, Binan City, Calamba,

Dasmarinas City, Taguig City, Cabuyao City, Malabon City, Tanay, Rizal, Bicutan FTI

and Makiling. Their Mission is helping people save so they can live easier, Vision have

store in very City. Values: People out most important asset, leadership Everyone is
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


leader, Ownership we treat the company as ours, Passion for winning drive, to Win

Integrity, always do the right thing, Trust believe in others.

Uno Factory Outlet has 17 stores from north to south of the Philippines and

growing the Citi store Inc., continuous to give quality offer branded merchandise a

cross all Departments and complete assortment of merchandise and excellent

customers service to the Local market they can conceive to be present in every city for

the budget conscious shoppers Looking for good deals complete offering of fashion,

Home, Accessories, Toys, Cosmetics Footwear, Small Appliances, sporting goods,

shoes, motor, and others.

THEORITICAL FRAMEWORK

Reliability
Responsiven
Tangibles
ess

Empathy Assurance

Figure 2:
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


Servqual Model By: Parasuraman

Service Quality (SERVQUAL) is a Multi-Dimensional Research Instrument.

Designed to Capture Consumer Expectations and Perceptions of a Service along the

five Dimensions (RELIABILITY, ASSURANCE, TANGIBLES, EMPATHY and

RESPONSIVENESS) That are believed to refresh Service Quality.

The Servqual model features in many services marketing textbooks, usually

when discussing customer satisfaction and service quality; It was developed in the mid

1980’s by well-known academic researchers in the field services Marketing, Namely

Zeithaml, Parasuraman and Berry.

The Servqual model was initially designed for use for service firms and retailers

in reality while most organizations will provide some form of customer service it is

really only service industries that are interested in Understanding and measuring

service quality therefore, SERVQUAL takes a broader perspective of service; far

beyond simple customer service.

One of the drivers for the development of the SERVQUAL model was the

unique Characteristics of services (as compared to physical products). these Unique

characteristics, such as intangibility and heterogeneity, make it much Harder for a firm

to objectively assess its quality level (as opposed to a Manufactured who can inspect

and test physical goods). The development of this model provides service firms and
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


retailers with a Structured approached to assess the set of factors that influence

Consumer’s perception of the firm’s overall service quality.

SERVQUAL is built on the expectancy disconfirmation Paradigm, which in

Simple terms means that service quality is understood as the extent to which

Consumer’s-consumption expectations of quality are confirmed or disconfirmed by

Their Actual perceptions of the service experience. UNO FACTORY OUTLET, Its

Management and operation.

CONCEPTUAL FRAMEWORK

SERVICE QUALITY

Assurance
Empathy CUSTOMER
Reliability SATISFACTION
Responsiveness
Tangibility

Independent Variables Dependent Variables

Figure. 2 Conceptual Model


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


Figure 2 above shows the conceptual framework used in this study. It shows

the relationship between the five (5) independent variables of service quality, namely,

Assurance, Empathy, Reliability, Responsiveness, Tangibility, and the dependent

variables customer satisfaction.

Reliability: Delivering on promises. This aspect is consistently shown to be the most

important factor of perceptions of service quality. This aspect includes the consistency

in which service promises are encountered which could include keeping schedules or

appointment times, completing responsibilities on time, and ensuring that outcomes

are happened.

Responsiveness: Being willing to help. This aspect highlights the attention and

timeliness in dealing with customer request, questions, complaints and problems. This

includes the dimension of time a customer has to wait for help, answers to questions

or attention to problems. Notion of flexibility and ability to modify the service to

customer needs. Reflect customer’s point of view, not corporations.

Assurance: Inspiring trust and confidence. This aspect is important when customers

notice services as high risk or feel uncertain about their ability to evaluate outcomes.

The establishment has to seek to build trust and loyalty between contact people and

customers.
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University

Tangibility: Representing the service physically. Companies should provide physical

representations or images of their services that customers will use to evaluate quality,

to enhance image, provide continuity and signal quality.

Empathy: Treating customers as individuals. Customers are unique and special and it

is important that their needs are understood. It would be a good strategy for

businesses to know customers by name and build relationships that reflect their

personal knowledge of their requirements and preferences.

STATEMENT OF THE PROBLEM

This study aims to determine the Level of Quality Service and Customer Satisfaction

on UNO FACTORY OUTLET at Taguig City

Specifically, the researcher answered the following questions:

1. What are the demographic profiles of the respondents in terms of?

1.1 Age;

1.2 Sex;

1.3 Civil status;

1.4 Educational Attainment

1.5 Monthly income;

2. What is the level of service quality in UNO FACTORY OUTLET in terms of;
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


2.1 Reliability;

2.2 Assurance;

2.3 Tangibles;

2.4 Empathy;

2.5 Responsiveness

3. How often does the service quality of UNO FACTORY OUTLET help the expansion

of the company?

Hypothesis

There is no significant relationship between service quality and customer

satisfaction

SURVEY QUESTIONAIRE

Dear Respondents,

The objective of this survey questionnaire is to determine the Level of Quality Service

and customer Satisfaction on Uno Factory at Taguig City

PART l. Demographic Profile of Customer

Direction: Please provide the following information either by filling the data or by

putting a check ( ) that corresponds to your response.

Name (optional): _____________________________

1. Age:
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


() 16-20 years old () 31-35 years old

() 21-25 years old () 36-40 years old

() 26-30 years old () 41 years old and above

2. Sex: 3. Civil Status

Male () Single ()

Female () Married ()

4. Educational Attainment

Elementary () Secondary () Tertiary () Vocational () College Degree ()

5. Monthly Income

5,000 to 10,000 () 10,000 to 15,000 ()

15,000 to 20,000 () 20,000 and above ()

Part ll: Give your perception regarding on UNO FACTORY OUTLET. Use the scales

below in providing response to item given for each area. Please put check ( ) Mark in

the space provided for your answer.

Directions: Rate each item using the Likert Scale below on answering the questions.

Please check the number that well matched to your own perception regarding UNO

FACTORY OUTLET, Its management and operation.

Weight Verbal Description

(5) Very good (4) Good (3) Fair (2) Poor (1) Very Poor

What is your perception in the Quality of Service at UNO FACTORY OUTLET at

TAGUIG CITY.
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


5 4 3 2 1
Reliability
1. Show sincere interest in solving customers problems.
2. Provide their service as promised.
3. Staff greets the customers politely and courteously.

4. Always giving exact change.


5. Staff are listening to the customer’s purchase request and
complaints.
Assurance
1. Staff are trustworthy.
2. Customer feels safe in their transaction.
3. Staff are easy to approach.
4. Staff have Knowledge to answer questions.
5. Staff work together in customer’s best interest.

Tangibles 5 4 3 2 1
1. The store is well ventilated
2. Staff are always properly dressed and appear neat.
3. Visual appealing physical facilities.
4. Appropriate physical facilities for type of service.
5. Uno Store are always clean.
Empathy
1. Their staff are giving customers individual attention.
2. The operating hours are convenient to all customers.
3. The staff knows are convenient to all customers.
4. The staff are always willing to help.
5. The staff are continuously courteous with the customer.

Responsiveness: 5 4 3 2 1

1. Staff are friendly


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


2. Staff are never too busy to respond to the customer request.

3. Staff gives prompt service.

4. Staff are always willing to help.

5. Staff gives right information to their customers.

Part lll: PROBLEMS Rate each item using the Likert Scale below on answering the

Questions.

(5) Very Agree (4) Agree (3) Fair (2) Less Agree (1) Never Agree

Problems faced by the customers in Online shopping 5 4 3 2 1

1. Staff are not giving attention to customers purchase request and


complaints.
2. Staff are rude and not greeting the customers.
3. The change is not exact.
4. Staff is not trustworthy.
5. Customers cannot feel safe inside the Outlet Uno Factory
6. Staff did not have exact knowledge to answer the questions of
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


the customer.
7. Uno Store does not have a modern look equipment.
8. Staff are not properly dressed and appear neat when
accommodating customers.
9. Staff did not give individual attention to their customers.
10. Staff is not showing care to the customers.
11. Some customers are not able to eat because of time conflict with
the canteen.
12. Staff don’t give prompt service.
13. Staff are not willing to help.
14. Their staffs are not friendly.
15. Delivery performance of the employees.

Part lV: Solution rate each item using the Likert Scale below in answering the
questions.

5, Highly Recommended 4, Moderately Recommended 3, Recommended

2- Less Recommended 1, Not recommended

Proposed solutions 5 4 3 2 1

1. Staff must listen to customers purchase.

2. Staff must greet their customer politely and


courteously.
3. The change must be exact.

4. Staff should be trustworthy.


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


5. Customers should feel safe in their transaction the
store.
6. Staff should have a proper knowledge to answer
every customer’s question.
7. Uno Company should have modern look
equipment’s.
8. Staff must maintain neatness when
accommodating customers.
9. Staff should pay individual attention to their
customers.
10. Staff should their care to the customers.

11. Operating hours must be convenient to all


customers.
12. Staff must provide prompt service.

13. Staff must always willing to help.

14. Staff should be friendly at the time.

15. Quality of the product.

Significance of the study

As the Uno factory Outlet is growing rapidly, an understanding of the

characteristics of Customer Services Quality. This study is very significant to wide

variety of many industries to bring life changes in the Customers services quality as

per characteristics of customers to enhance their sales. This research study will be

used by:

Student who will engage in doing research related on this study in near future.

This study also serves a useful guidance in analyzing consumer buying behavior.

Future Researchers intend to make further study in the same field of customer

buying behavior.
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


Management of Uno Factory Outlet finding and implications of the study will

provide the management the factors influence consumer purchasing behavior to help

Uno Factory by their marketing strategy and to identify most influencing factor.

Customer they will be informing about the Influence of Customer service

quality at Uno factory outlet.

Scope and Limitation of the Study

This Study mainly focused on the Level of Quality Service and Customer

Satisfaction on UNO FACTORY OUTLET at Taguig City.

This study was conducted through survey which the respondents were

composed of 100 selected random customers.

A limitation to this study would be that the customers may complete the

questionnaires as they think the researcher wants them to answer. The result of the

study might only be generated to those who purchase the products of Uno Factory

Outlet and.; this study does not control the differences across product categories.
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University

Definition of Terms

Consumer Buying Behavior - is the study of individuals, groups, or

organizations and the processes they use to select, secure, use, and dispose of

products, service, experiences or ideas to satisfy their needs and wants

Customer Service is the support you offer your customers – both before and

after they buy and use your products or services – that helps them have an easy and

enjoyable experience with you.

Influence –it is person or thing that affects someone or something in an

important way.
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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

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Place – refers to the channel, or the route, though which goods move from the

source to the final user.

Product – is anything that can be offered to a market that might satisfy a want

or need.

Promotion – it is Refer to raising customer awareness of a product or brand,

generating sales, and creating brand loyalty.

Service Quality – This refers to an assessment of how well a delivered the

service conforms to the clients’ expectations.

Customer Expectation – This refers to the total perceived benefits a customer

expects from a company product or service

Competitive – This refers to the good, service, or offer that can hold its own

against competing products because its offer an attractive value for money,

proposition to its buyers.

Perception – This refers to the ability to see, hears, or become aware of

something through the senses.

Assessment – This refers to the evaluation or estimation of the nature, quality,

or ability of someone or something.

Quality - In manufacturing, a measure of excellence or a state of being free

from defects, deficiencies and significant variations.


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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


Service – A valuable action, deed, or effort performed to satisfy a need or to

fulfill a demand.

Servqual Model – Is a multi-dimensional research instrument, design to

capture consumer expectations and perceptions of a service along the five dimensions

that are believe to represent service quality.

Tangibility – Appearance of physical facilities, equipment, personnel, and X.

communication materials.

Reliability–Ability to perform the promised service dependably and accurately.

Empathy – Caring, individualized attention the firm provide its customers,

Responsiveness – Willingness to help customers and provide prompt service.

CHAPTER ll

REVIEW OF RELATED LITERATURE

Foreign Literature

Now a days, a business’s attempt to invention original and transforming habits

to increase more customers and develop more commercially effective. One of the

greatest active mechanisms for a business to develop effective is to have satisfied

customers. 96% of patrons very completed the world study service quality to be a

significant feature of them selecting to be reliable to a product (Willot, 2020). 70% of

customers claim that they are faithful to brands because of their great customer
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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


service (Willot, 2020). 52% of consumers state that they have bought additional

products from a company simply because they previously have experienced great

service quality from that company (Willot, 2020). These numbers indicate that several

different factors, such as service quality, customer satisfaction and brand loyalty are

all important for company to be profitable. Furthermore, how to acquire and maintain

factors such as these continue to be an imperative challenge for companies today,

and has been for a long time.

Current assessment of customer experience literature also indicates that there

is a deficiency of studies measuring customer experience immediately after digital

service encounters (Becker and Jaakkola 2020). This gap may be due to the

challenge for students whereby it becomes difficult due to the distance of the context

and the researcher at the time-of-service encounter; when the incident that triggers

any unexpected reaction. Though, firms can continue to measure it by sharing a close-

ended survey with the customer. In this context, the prime objective of this study is to

identify which factors are responsible for impacting the service encounter usage

experiences during a specific service encounter of mobile payments services in India.

According to (Sebastianelli and Tamimi 2018). Abilities mean that the service

providers have knowledge and experience to deliver the desired services. Honesty

means that the service provider is not perceived to cheat users and will satisfy the

commitments. Kindness indicate that the service providers are expected to satisfy the

requirements of their users positively.


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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


According to (Beers, 2020). In this study, the dependent variable that was used

was customer satisfaction, while the independent variables were service quality,

generations, gender and county. Moreover, a correlation analysis was used to detect if

there was a correlation between two or more factors (Hayes, 2019). The factors that

were used in this study was service quality, generations, customer satisfaction,

likelihood of repurchase and willingness of the consumers to switch their current TV-

brand. In this research, as previously mentioned, the relationship that was focused on

what the relationship between how valuable the service quality received was, and the

generation of the participant, where customer satisfaction represented the value of

service quality.

Evidence presented that there is a significant relationship between customer

satisfaction and customer loyalty (Leninkumar 2017). Customer loyalty is considered a

result of customer satisfaction, when customers who have suitable experiences with

the service of the business will continue to deal with the company viewing it as less

risky, thereby making them loyal and rational in decision-making. In fact, many writers

have ehncouraged that customer satisfaction is one of the determinates of customer

loyalty, especially in the service commerce.

Customer service is one of the service quality aspects that can enhance

customer satisfaction as well as increase customer loyalty towards the business. It is

important to emphasize customer service quality towards homestay operators in order

to make the homestay program in Malaysia become more competitive. A preliminary


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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

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study was conducted on a group of foreign tourists who stayed at the homestays in

Malaysia via interview sessions due to some grievances from customers in a literature

review. Most of them agreed that customer service is important in ensuring the quality

of homestay service. According to Kumar R. Mittal A 2015, explained valued

customers can be retained by improving the service quality of courier company. The

maximum satisfaction of customers with respect to (a) receptiveness dimension

enthusiastic to assist the customers, friendly approach of employees (b) reliability of

customer care ‘Service quality” an important construct of customer satisfaction.

Customer’s satisfaction depends upon the quality of services provided.

Local Literature

According to a blog posted by Sophia Bernazzani, Cuatomer Satisfaction

(CSAT) is a metric used to quantify the degree to which a customer is happy with a

product, service, or experience. (Bernazzani, 2018). This metric is usually calculated

by deploying a customer satisfaction survey that asks on a number of point scale how

a customer feels about a support interaction or overall experience, with answers

between “highly unsatified” and “highly satisfied” to choose from.


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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


Based on Joan Reyes (2013) stated that service quality is a vital strategy for

success and survival in today’s aggressive environment. It is very important for the

employees to be reliable and dependable in order to gain the trust of the public. They

should render quality service and have a commitment to be accountable to customers

and compete for their satisfaction and loyalty. It can identify some issues like meriting

96 attention, understanding the concept and also analyzing how to measure service

quality. Good service quality is an outcome of well – organized corporate culture,

which in general can be considered as a kind of social culture.

According to Asya Archakova (2013), she defined service quality in customer

satisfaction as one of the basic opportunities which help to run and improve business

as well as its profit and specially gain the loyalty of the costumers. Furthermore,

Reyes (2012) identifies that service quality is vital strategy for success and survival in

today aggressive environment. It is very important to employee to be reliable and

dependable in order to gain the trust of the public. Pearce (2014), Stated that it is

more crucial and determinant of service quality to understand customer satisfaction

and customer needs. In relation to this, Consumer Delight, customers are the very

reason for being I business; profits can be reaped only if an organization has

customers who will fail for the products and services on a continuing basis. Therefore,

any organization should identify the customers first and orient their business towards

satisfying the customers (Subburaj, 2012).


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


In light of above, enhancement of service quality is essential, especially in this

age of service. Competition among food outlet has become fiercer. Companies need

to complete because this is an age of competition, especially on the service side.

Consumers not only value products, but also relationship with companies put it as

buying loyalty with service. Consumer satisfaction is a measure of how products and

services supplied by a company meet or surpass consumer expectation and defined

as the number of consumers, or percentage of total consumers, whose reported

experience with a firm, its products, or its services (ratings) exceeds satisfaction goals

(Atento et.al, 2014).

Based on the local literature of Bartolata (2016), States that providing a high

and consistent quality of service is a key to business success. That is because high

service quality promotes customer satisfaction has a direct link to business revenue.

According to Barlan-Espino (2017), highlighted that success of a business

relies on customer service. Customers are believed to be the life blood of every

organization: without business will not survive.


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


Synthesis

The theories above are related to the topic, Level of Quality Service and

Customer Satisfaction on UNO Factory Outlet at Taguig City. First is what Kumar R.

Mittal A 2015, explained valued customers can be retained by improving the service

quality of courier company. The maximum satisfaction of customers with respect to (a)

receptiveness dimension enthusiastic to assist the customers, friendly approach of

employees (b) reliability of customer care ‘Service quality” an important construct of

customer satisfaction. Customer’s satisfaction depends upon the quality of services

provided. Another theory related to the topic is the study of AsyaArchakova (2013),

defined service quality in customer satisfaction as one of the basic opportunities which

help to run and improve business as well as its profit and specially gain the loyalty of

the costumers.

(Subburaj, 2012). Stated that it is more crucial and determinant of service

quality to understand customer satisfaction and customer needs. In relation to this,

Consumer Delight, customers are the very reason for being I business; profits can be

reaped only if an organization has customers who will fail for the products and

services on a continuing basis. Therefore, any organization should identify the

customers first and orient their business towards satisfying the customers.
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


CHAPTER lll

RESEARCH METHODOLOGY

Research Design

The procedure of this study used under the descriptive method, which includes

normative survey approach and evaluation. That is usually used to explore ideas

according to respondents that can represent a whole population. The survey is

relevant in this study because it enables formulation of generalization. The term

“survey” is commonly applied to research methodology that is designed to collect data

from specific population that is used in this study.

In terms of approach, these studies apply both qualitative and quantitative

approaches. The quantitative focused on obtaining numerical findings is used with the

survey method. The interview on the other hand, made up the qualitative approach of

the study as this focused on personal accounts, observation, description and

individual insights of the respondents. This study employed the combined approach so

as to overcome the limitations of both approaches.

Determination of Sample Size

In order to prove that a process has been improved, the researchers must

measure the process capability before and after improvements and implemented.

Determining Sample size is very important issue because samples are too large may

waste time, resource and money, white samples that are too small may lead to
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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


inaccurate result. In many cases, we can easily determine the large sample size

needed to compute process parameters, such as population. The researches need

100 respondents to collect information and data in our survey who has a customer.

Sampling Design and Technique

A subset of individuals (a sample) chosen from a larger set (a population each

individual is chosen selectively and entirely by chance, such that each individual has

the same probability of being chosen at any stage during the sampling process, a

simple random sample is unbased surveying technique? The principle of simple

random sample sampling is that every object has the same possibility to be chosen.

The Subject Sampling –the study involved selected customers of Uno Factory Outlet

at Taguig City. The researcher used strong evidence on data gathering and collection.

Description of Respondents
Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


The qualified respondents for this study are the various customers of Uno factory

outlet in Taguig City. The respondents can be citizen or non-citizen of the country.

These people were randomly selected as a respondent of the study regardless of

socio-economic status, sex, age and material status as long as they are consumers

and employees of Uno Factory Outlet. Educational attainment and occupation of

respondents are aware they are buying and its quality.

Research Instruments

In order to make the study, reliable objective and convincing the researcher’s data

needed in the study.

The main data-gathering instrument for the study is a survey questionnaire which is

designed to gather data regarding age, sex, civil status, educational attainment and

Monthly Income and the factors influences consumer purchasing behavior.


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


The researchers are used internet and books for further information about the

research.

Validation of the Research Instruments

In order to test the validity of evaluation tool which used for this study, the

researchers constructed survey questionnaire according to specific problems of the

study and presented it to the adviser. The researchers modified the content of the

questionnaire based on the assessment and suggestion of the adviser. The

researchers excluded irrelevant questions and changed value or difficult terminologies

into simple ones as to make the survey more comprehensive for the selected

respondents.

Data Gathering Procedures

In gathered the needed and additional information for the study. The researchers

went through a Planned Procedure. The researcher converts a survey in the

customers of Uno Factory Outlet in Taguig City.


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


The researchers wrote a letter to the respondents to answer the survey questionnaire

that made. As soon as each accomplished questionnaire was retrieved, the

researcher is prepared a data spreadsheet for easier encoding in the computer.

The researchers then determine the influence of multiple independent variables

presented simultaneously to predict membership of one another or other of the two

dependent variables categories.

The researcher used the Table so that it will be easy to distinguish the responses

of ever variables.

Statistical Treatment

The data collected in this study were organized and classified based from the

research design and the problems formulated. These are tabulated properly to

processing to present and to interpret the result.

The Frequency and percentage distribution was utilized to describe the respondent

variables. This also presented the actual response of the respondent to the question

indicated in the questionnaire.

The formula used in the application of this technique is


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University

Where:

P=Percentage

F=Frequency of responses

N=Number of respondents

100=Constant Influence

2. Weighted Mean

One of the most useful and widely used techniques for doing this – one which you

already know – is the average or, as it is known, and you know how to calculate the

mean: you simply add up a set of scores and divide by the number of scores. Thus,

we have our first and perhaps the most basic statistical formula.

Where:

(Weighted mean)

(Summation)

(frequency)
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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


(Weighted)

(Total Responses)

Range Verbal Interpretation

1 1.00-1.79 Very poor

2 1.80-2.59 Poor

3 2.60-3.39 Fair

4 3.40-4.19 Good

5 4.20-5.00 Very Good

Likert scale

Table 1: Likert scale Level of Quality Service and Customer Satisfaction on Uno

Factory Outlet at Taguig City


Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University

References

1. Sokhan., (2018). Customer Satisfaction and Satisfaction and Service Quality in the
Marketing Practice Study on Literature Review.
https://www.researchgate.net/publication/329240862

2. Leninkumar., (2017). Impact of Service Quality on Customer Loyalty and Customer


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3. Becker, L., & Jaakkola, E. (2020). Customer experience: fundamental premises and
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City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City

Taguig City University


4. Aksar, Kayani & ali., (2019) A Study of Customer Satisfaction and Customer Loyalty
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https://www.researchgate.net/publication/3385843091

5. Zhong and Moon., (2020). A Study of Customer Satisfaction and Customer Loyalty
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https://www.researchgate.net/publication/3385843091

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Payment? Modeling User Generated Context to Develop the “Digital Service Usage
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7.Afhanorhan., (2019) Publication/330054011 Assessing the effects of service quality


on customer satisfaction. https://www.researchgate.net/

8. Kosalya, Dharanipriya & Ramya., (2019) Service quality and its dimensions.
https://www.researchgate.net/publication/333058377s

9. (Willot, 2020). The relationship between service quality, Customer Satisfaction, and
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10. Beers, B. (2020). Regression Definition. Retrieved 16 March 2020, from


https://www.investopedia.com/terms/r/regression.asp

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https://www.investopedia.com/terms/c/correlation.asp

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