CS Manuscript Final Updated Ready For Checking
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Research Teacher
Date Signed
Academic Coordinator
Date Signed
Accepted as partial fulfillment of the requirements for the completion of the Senior
High School program
Principal
i
Date Signed
March 2019
Allyssa M. Rayco
Sofia M. Comia
ii
Submitted to the Faculty of Basic Education Department, Mary Help of Christians
College - Salesian Sisters, Inc., in partial fulfillment of the requirements for the
completion of the Senior High School program
March 2019
ACKNOWLEDGMENTS
We would like to express our sincere gratitude and deepest appreciation to all of
the people who helped us in making and completing this research a promising one.
Thank you to our Almighty Father for His showers of graces and gifts of talent
bestow on each one of us, and guidance throughout our work to complete this research
project successfully.
We would like to express our sincere gratitude to our research advisor, Ms.
Lorilyn Tandang for the continuous support to our study, for her patience, motivation,
enthusiasm, and immense knowledge. It was a great privilege and honor to work and
study under her guidance.
We would like to thank the rest of our teachers involved in our research, Ms.
Maria Theresa Alvarez, Ms. Nicole Morales, and Mr. Dave Alberto, for their
encouragement, insightful comments, and validation of our instruments. Without their
assistance and dedicated involvement, this paper would have never been accomplished.
iii
Finally, we would like to thank our families for their love, unending support,
prayers, caring, and sacrifices for educating and preparing our future. This research will
be a living artifact that will serve as a token for the sacrifices of our parents and to our
friends and research colleagues for their constant encouragement and genuine support
throughout this research project.
ABSTRACT
Over the years, the convenience store has gained stronger competitors in the retail
industry. However, it has maintained its competitive advantage among them and this has
led it to the expansion of its brand through building stronger networks of stores
throughout the country. A recent study emphasizes that the determining factors such as
customer preferences, customer count, customer purchases, and demographics are critical
backbones of a convenience store’s competitiveness and success. This research study
focuses on indicating the competitiveness of a convenience store within its location in
terms of the four (4) indicators: customer preference, customer count, customer purchase,
and the demographic profile of the customers. The descriptive research design is used to
establish a deeper understanding of the influence of the indicators of competitiveness and
the competitiveness of the convenience store. To establish this, the researchers employ
sixty (60) survey questionnaires and rating scales for their sixty (60) respondents overall
who enter or buy in the convenience store and an observational checklist and tally sheet
for the researchers themselves. In addition, they utilize figures such as bar graphs to
iv
descriptively present the data gathered during the actual instrumentation provided with
interpretations and analyses. The results suggest that majority of the respondents are
female students belonging to the Generation Z age bracket from 0-23 years old who live
within the prescribed radius from the convenience store and have an average monthly
allowance of Php 0- Php 999. Most of them frequently go in the convenience store in the
afternoon to buy food products having a budget ranging from Php 50-Php 100. From the
results, this study emphasizes that the convenience store corresponds to a competitive
advantage among its competitors and stakeholders should always consider its indicators
along with the convenience store’s market stance.
v
TABLE OF CONTENTS
Acceptance Page i
Title Page ii
Acknowledgements iii
Abstract iv
List of Figures vi
Chapter 1 Introduction
Review of Literature 3
Related Studies 5
Definition of Terms 7
v
Chapter 3 Research Design & Methodology
Research Design 9
Instrumentation 9
Introduction 11
Demographics 18
Summary 25
Conclusion 26
Recommendations 26
Bibliography 28
Appendices 32
v
Appendix A 32
Appendix B 33
Appendix C 35
Appendix D 36
Appendix E 37
v
LIST OF FIGURES
vi
vi
i
CHAPTER I
INTRODUCTION
A convenience store is a petite retail business that allows people to purchase their
everyday items such as groceries, snack foods, confectionery, beverages, etc. Some of it
lasts for long hours and offer a small variety of goods. The stock goods for a person
might require in an emergency and would not like traveling long distances for it. Ease of
access will result in stores being visible no matter which direction the customer is looking
(Wisbey, 2016). Convenience stores offer slightly costlier prices compared to
supermarkets, and also render express service. Nowadays, convenience retailers offer
consumers a wide variety of choices, from quirky to conventional (National Association
of Convenience Stores, 2017).
1
The research attempts to find the competitiveness of the convenience store by seeking
specific answers to these questions:
The results and findings of this study will be beneficial to the present and future
stakeholders of a convenience store considering that the customer preference, the number
of customers, and the customer purchase play an important role to the competitiveness a
convenience store. In addition, businesses could apply what results might be found from
the study by prioritizing the needs, wants, and concerns of their prospective customers.
Therefore, as for the researchers, the study will also help them to further test and indicate
the factors affecting competitiveness that might affect business such as a convenience
store.
The study involves a sample of twenty customers of the convenience store in four
(4) separate hours in three (3) days within a City that limits the generalization of results.
They will observe in three (3) different branches of a certain convenience store to gather
relevant data and information that will be used in deriving interpretations, conclusions,
and recommendations.
2
CHAPTER II
Related Literature
Consumer Preference
Customer Count
Customer count is the process of listing and counting the number of customers
who are purchasing a business’ goods. Often attributed to this is the customer base,
which, according to Business Dictionary (2018), is the group of customers repeatedly
purchases the goods or services of a certain business.
Hunter (2017) noted that in the retail industry which convenience stores belong,
challenges, like finding new customers and satisfying their preferences, should always be
taken into consideration and should be seen as an ongoing opportunity because they are
its main source of revenue and its increase or decrease.
3
The concept of customer retention can also be considered as a follow-up result in
customer counting. It is the ability of a business to retain its customers over a period of
time (Countly, n.d.). It is both a measure of customer loyalty and the capacity of the
business to keep the customers satisfied with good services and quality of products being
sold, such as in a convenience store setting.
Customer Purchase
Customer purchase is a condition when a consumer buys a certain product for his
or her personal use. Previous customer purchase is often the single best guide to what a
customer will buy next (Davenport, DalleMule, & Lucker, 2011).
Demographic Profile
4
Competitiveness
Convenience stores need to adapt their strategy, expanding their product mix to
appeal to today’s busy consumers who want quality products which they can buy to
satisfy their needs and wants (Atchley, 2015). Moreover, retailers know that providing a
positive shopping experience is critical to building loyalty and increasing customer per
visit. He also highlighted that consumers have higher expectations when it comes to
purchasing different types of products and convenience stores are now faced with
competition from the marketplace.
In the Philippines, convenience stores remain one of the country’s fastest growing
retail channels, as it is still largely under-penetrated. A single convenience store in the
Philippines serves over 40,000 Filipinos, whilst neighboring countries have a
convenience store for every 3,000-4,000 people (Euromonitor International, 2018). In
addition, aside from network expansion, convenience stores also continue to look for new
products and services to offer their customers.
Related Studies
The consumers’ choice and the individual demand for a given product, is
determined by his or her preferences (needs, tastes, and desires) as well as a limited
budget (Nyrud, 2012). She stated that traditional consumer behavior theories are
frequently based on the assumption that consumers demand characteristics of products
rather than specific products and knowledge about the needs of consumers can be used to
identify opportunities for industry and manufacturers as well as segmenting customers
into groups with similar needs and expectations. Clients, stakeholders, and end users have
5
different needs, preferences, and attitudes. In a study conducted by Yadav and Verma
(2015), changing tastes and preferences of consumers leads to radical transformation in
ways of life and spending patterns, this, in turn, gives rise to new business innovations
and opportunities. Thus, surveying consumers’ attitudes towards a product and
identifying salient product attributes provides information that can be used to predict the
choice of consumers.
Moreover, Anojan and Subaskaran (2015) emphasized that market provides a key
to gain actual success only to those brands which match best to the current environment
which can be delivered what are the people needs and they are ready to buy at the right
time without any delay.
According to the study of Eastwood, Gray & Brooker (n.d.) that while the
resulting information is useful, store patronage is becoming art increasingly important
component of supermarket management as new decision-making tools are introduced.
Among the developments are micromarketing, category management, shelf space
allocation, labor scheduling, and efficient consumer response. As three management
techniques are implemented, the risk of stockouts rises. The incidence of stock outs
depends, in large part, on the number of food shoppers patronizing a given outlet.
Therefore, studies of store patronage are going to be an increasingly important
component of applied demand analysis and food retailing.
Bunick (2016) also noted that customers make buying decisions based on their
gender, age, location, education level, and family, among many other factors. In addition,
Rustam and Octavia (2015) asserted that retail stores, especially convenience stores must
determine which products are to be sold in a category of products with the difference of
price or variations in flavor and size of each brand will be the choice of the consumer.
6
Furthermore, Kesornbua (2010) recommended in his study about the demographic
factors, and elements of the retail marketing mix that most influence consumers to shop
in convenience stores that more extensive studies regarding the convenience stores’
consumers should be conducted to determine consumer profiles, and purchasing
behaviors toward convenience store shopping in order to obtain a complete view of the
convenience store segment of the retail market in a country.
Definition of Terms
For the purpose of clarification, the important terms used in the study have been defined.
The following terms are:
7
Customer Count. The number of customers which is present in a certain
establishment.
Peak Hours. Time of day when a lot of people are using the same service, such as
the internet, phone, etc.
Service.A transaction in which no physical goods are transferred from the seller
to the buyer.
Stakeholder. A party that has an interest in a company and can either affect or be
affected by the business.
8
CHAPTER III
Research Design
The researchers will use the descriptive research design to establish a deeper
understanding of the influence of the indicators of competitiveness and the
competitiveness of the convenience store. They will also go to three (3) different
convenience store branches in a certain area to conduct their data gatherings. The
potential subjects will vary from different age and will be chosen randomly. Furthermore,
the respondents will be given a short-survey questionnaire with a set of questions to
answer.
9
Instrumentation
The researchers will utilize the instruments: observational checklists, tally sheet,
rating scale, and a short survey questionnaire to the prospective respondents to gather
data and information about their demographic profile as customers of the convenience
store and their perspective to the convenience store.
For the purposes of this research, short-survey questionnaires, and rating scales
will be used to determine the customers’ preference, customer purchase, and
demographics. As far as data collection tools are concerned, the conduction of the
research will also involve the use of observational checklists that will be used by the
researchers to determine the characteristics of the convenience store, and tally sheets to
quantify the number of customers entering the convenience store.
10
CHAPTER IV
To complete this study, it is necessary to analyze the data collected in order to answer the
research questions. As already indicated in the preceding chapter, the findings are
interpreted in a descriptive manner.
11
Figure 1. Time Brackets which the Respondents Frequently Go
Figure 1 presents the time brackets which the respondents frequently go. It shows
that eleven (11) out of the sixty (60) respondents go at around 6:00 am – 12:00 nn in the
convenience store. Meanwhile, most of the respondents or thirty-one (31) of them go at
around the time bracket of 12:01 pm – 6:00 pm. On the other hand, sixteen (16) out of the
sixty (60) respondents go at around 6:00 pm – 12:00 am, and only two (2) of them go at
around 12:01 am – 5:59 am. According to the Convenience Store News [CSN] (2015),
more than half of the customers or fifty-three percent (53%) of them frequently go to
convenience stores in the afternoon either to have lunch.
12
Figure 2. The Respondents’ Reason in Going to the Convenience Store
*There are eight (8) respondents who answered more than one (1) answer box.
Figure 2 shows the reasons for the respondents in going to the convenience store.
It shows that majority of the respondents or fifty-one (51) out of sixty (60) of them go to
buy their preferred and needed products, while five (5) go to meet up with someone and
talk there, and four (4) of them go to stay and get cooled. Burton (2012) and Yadav and
Verma (2015) emphasized that one of the reasons why people go at convenience stores is
to buy necessary items or products that will satisfy their needs and wants because of the
advantage of convenience and variety.
13
Figure 3. Qualities of the Convenience Store which the Respondents Like
Figure 3 indicates the qualities of the convenience store which the respondents
consider most. It shows that twenty-two (22) out of the sixty (60) respondents like the
cleanliness of the convenience store, fifteen (15) out of the sixty (60) respondents like the
convenience store’s customer service, seventeen (17) out of the total number of
respondents like the organization of the products in the convenience store, and six (6) of
them like the other qualities such as the store size, convenience, and having exclusive and
unique products. It is clearly indicated that the majority of the customers like the
cleanliness of the convenience store, and secondly, the organization of its products.
Carpenter and Moore (2006) and Teller et al., (2006) highlighted the importance of
cleanliness and organization of products as the most significant factors in the success, and
competitiveness of convenience stores (as cited in Yadav and Verma, 2015). In addition,
these attributes are the basis of most consumers whether to shop in a convenience store or
not.
14
In Convenience Stores A, B, and C, most of their customers desire a clean
environment of the convenience store. The protocol implies that after a customer eats and
leaves the store, the store clerks shall immediately clean the tables and segregate the
trashes properly. In addition, an organized gallery of products also helps customers to
find their preferred and needed products more quickly and conveniently. Therefore, the
general result above implies that the convenience store also attracts customers through
having a clean environment inside and outside of it, and proper installation and
organization of products which are being sold.
Figure 4 exhibits the products of the convenience store which the respondents
usually buy and seek. It indicates that most of the respondents or fifty-seven out of the
sixty (60) respondents buy and seek mainly food products, and only three (3) of them buy
and seek non-food products, such as newspapers, magazines, and sanitary products.
According to a survey made by AlixPartners (n.d.), it showed that 52.9% of the
customers frequently purchase food products, such as beverage, snacks, and ready-to-eat
foods. Moreover, customers’ most important factors in selecting a convenience store to
purchase a meal are the location (21%), price (18%), and food quality (14%). In
15
connection with the demographic results, such as in age and educational/professional
status, the Hartman Group (2018) noted that Gen Z customers and students are more
likely than others, to shop at convenience stores and the categories they purchase the
most are food products such as snacks, sweets, and beverages.
16
ensure that the products which they purchase are within their budget so that they can save
more money in buying their other needs and wants. Furthermore, Aspfors (2010)
emphasized that customers will choose the products that provide most satisfaction for
money specifically in their budget. They will not purchase a product that exceeds their
budget because they will experience a “money shortage”.
Figure 6. Number of Customers who Entered the Convenience Store at Specific Time
Brackets
17
Figure 6 exhibits the total number of customers who entered the convenience
store at specific time brackets. It shows that there are one hundred thirty-two (132)
people who entered the convenience store at around 12:00 nn – 1:00 pm. Next, there are
one hundred twenty-three (123) who entered from 6:00 pm – 7:00 pm. Meanwhile, there
are ninety-six (96) customers who entered from 7:00 am - 8:00 am. Lastly, at around 3:00
pm – 4:00 pm, there are ninety-five (95) customers who entered the convenience store. In
a research conducted by Excentus (2018), convenience stores can stay relevant and
establish competitive advantage if they know their customers which bridge the gap
between the business side of growing revenue and consumer side of knowing what they
want and expect. Retaining old customers and acquiring new customers are critical for a
convenience store’s success because their customers will be the source of their profit.
In explaining the result above, it can be stated that the convenience store acquires
more customers during afternoon and evening where they may be taking lunch and
dinner, respectively. However, there is also a huge volume of customers in the morning
and in the late afternoon which implies the importance of food products of the
convenience store to its customers because they may be taking breakfast and merienda
during these periods of the day. Therefore, it can also be noted that the convenience store
retains and acquires customers throughout the course of its business operations.
Demographics
18
Figure 7. Sexual Orientation of the Respondents
Figure 7 presents the gender of the respondents. It shows that twenty-nine (29) out
of the sixty (60) respondents are male, while thirty-one (31) out of the sixty (60)
respondents are female. The importance of female customers mirrors the position of a
business in the private sector (Moss, 2003). Kress (2012) emphasized that “A clean,
well-lit, organized store with friendly customer service, competitive pricing, fresh
products, and a community connection is an absolute must and all those things rolled
together to contribute to a woman’s feeling as if she wants to shop at a particular store”.
Moreover, in the Convenience Store B, most of the customers who have entered
in the convenience store are male student drivers that might have affected the number of
male customers which is dominant in the branch findings.
19
Lastly, in the Convenience Store C, there is also a school which is approximately
fifty (50) meters from the store and the school’s population comprises mostly female
students and staffs which might have affected the dominant number of female customers
of the convenience store.
Therefore, it can be implied that the sexual orientation data which are gathered
from the Convenience Store C have greatly affected the general findings of the sexual
orientation of respondents in the three (3) convenience store branches which are mostly
female in gender. Thus, the convenience store provides the needs and preferences of its
female customers through its feminine products.
Figure 8 shows the age of the respondents which is divided into three (3) age
bracket groups. It indicates that forty-nine (49) out of the sixty (60) respondents are
“Generation Z customers” who range from 0-23 years old. On the other hand, four (4) out
20
of the sixty (60) respondents are the “Generation Y customers” who range from 24-42
years old. Lastly, seven (7) out of the sixty (60) respondents belong to the “Generation
X” customers who range from 43-54 years old. Clearly, it is shown that the majority of
the convenience store’s customers are “Generation Z customers”. The Hartman Group
(2018) considered that Generation Z is the most educated group of teens on the topics of
health and wellness, but they are not letting related concerns impact their food and
beverage choices yet (as cited in Thakker, 2018) and Gen Z weigh price, location,
experience, and quality when choosing where to get their preferred and needed products.
Moreover, Thakker (2018) noted that this age group is expected to demand even more
from the convenience store because they are known to be the most diverse, independent,
politically, and socially aware set of consumers.
21
Figure 9. Educational/Professional Status of the Respondents
22
Figure 10. Location where the Respondents Live
Figure 10 shows the location where the respondents live. It indicates that most of
them or fifty-eight (58) out of the sixty (60) respondents live within the 5-10 kilometer
(km) radius from the convenience store and only two (2) respondents live beyond the
given radius. Waters (2018) highlighted the importance of the proximity of a convenience
store to its target market and customers. In addition, convenience goods require easy
access to let the customers quickly make a purchase and consumers prefer convenience
stores that are not hard to find.
In Convenience Store A, most of its customers live within the 5-10 kilometer
radius from the convenience store because it is situated along subdivisions which most of
its customers live. Meanwhile, in Convenience Stores B and C, there are a few numbers
of customers who have answered that they are outside the 5-10 kilometer radius from the
branches which makes the researchers develop an impression that consumers might be
inclined to patronize convenience stores located on the path of their daily commutes and
this can mean occupying space situated in or near a transit hub or along heavily trafficked
routes.
23
Figure 11. Average Monthly Allowance/Income of the Respondents
In Convenience Stores A and C, most of their customers have answered that they
have an average monthly income of P0-P999, they are dominantly high school and
college students. However, in Convenience Store B, most of its customers have P3,000 or
higher because some of them are working students. Therefore, in relation with the result
of Yadav and Verma (2015), it may be constructed that the convenience store prioritizes
the allowance or income of its customers so that it will be a basis for constructing fair
prices for its customers which could result to customer attraction and retention.
24
CHAPTER V
Summary
25
This research investigated the influence of the indicators of competitiveness on
the convenience store’s competitiveness. Primary data were collected by randomly
distributing survey questionnaires to sixty (60) respondents, a total of three (3) rating
scales and three (3) observational checklist. The following conclusions can be drawn
from that the indicators of competitiveness greatly influence the competitiveness of the
convenience store by measuring the descriptive statistics that reflect how the convenience
store is being competitive in terms of customer preference, customer count, customer
purchase, and customers’ demographics.
First, the customer preference showed that most of the respondents prefer to buy
the goods they need especially food and beverages. Second, the customer count depicted
the average number of customers who entered and bought products in the convenience
store. Moreover, it is a clear indication that the convenience store had still a great number
of customers who continuously patronize its products sold. Third, the customer purchase
highlighted that the customers have enough budget to buy their preferred and needed
products in the convenience store. Lastly, the customers’ demographics emphasized that
the convenience store considered the needs of its adolescent customers who have the
highest attributes in the age bracket. While in the educational and professional status, the
student is the dominant customer, and in terms of location, customers are usually near the
convenience store. The results show that the indicators of competitiveness affect the
competitiveness of a convenience store.
This research analyzes the competitiveness of the convenience store. Primary data
were collected by randomly distributing questionnaires to sixty (60) respondents. As
stated beforehand in the introduction, the purpose of this study is to measure the customer
preferences, the number of customers, customer purchases, and the customers’
demographics which are the factors that can affect the competitiveness of a convenience
store. The following conclusions can be drawn that the factors that can affect the
competitiveness of the convenience store are customer preferences, the number of
customers, customer purchases, and the customers’ demographics. Thus, competitiveness
is present in every convenience store when factors have been measured and tested.
26
Conclusion
Based on the findings the researchers conclude that the convenience store
achieves competitiveness through its customers’ preferences because it meets the
demands and needs of its customers through selling products which satisfy them. The
convenience store also achieves competitiveness through its number of customers
because it acquires and retains more customers throughout its business operations which
are evident in the findings. Moreover, it is being competitive through its customer
purchases because it gains more profit from its customers in terms of customer brand and
store loyalty. Lastly, it also meets the demands of its dominant demographic group of
customers and transforms it into profit in terms of demographics which makes
competitive.
The result of the study indicates that that the competitiveness of the convenience
store reflects on the aspects of customer preferences, customer count, customer
purchases, and customers’ demographics. Hence, this study can help redound to the
present and future stakeholders considering the factors that have been measured and
tested to determine if a certain convenience store is being competitive in the marketplace
or not.
Recommendations
Since this study is conducted in a small area with few involved convenience
stores, it is recommended that further studies will be carried out to larger proximity
where there could be more convenience store involved. It is also recommended to be
conducted in a busier city, in order to provide more concrete and stronger outcome of the
study. Moreover, the study were done with three (3) convenience stores, it is
recommended that further studies will increase the number of stores to be studied on.
Furthermore, future research could explore in comparing the competitiveness of different
convenience stores (different brands), consider adding more hours to observation, and
increase the number of respondents.
27
BIBLIOGRAPHY
28
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National Association of Convenience Stores [NACS] (2017). Convenience Store Step Up
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www.scipress.com/ILSHS.60.102
APPENDICES
Appendix A
INSTRUMENTATION
Rating Scale
III. Please answer the questions and put a check ( ) mark on the box provided.
(1 being the lowest and 5 being the highest)
33
1. The prices of the products you prefer to buy
☐5 ☐4 ☐3 ☐2 ☐1
2. The time it took you to find the product/s you preferred and needed
☐5 ☐4 ☐3 ☐2 ☐1
3. The quality of your preferred and needed products which you bought
☐5 ☐4 ☐3 ☐2 ☐1
4. The availability of the products that you preferred and needed
☐5 ☐4 ☐3 ☐2 ☐1
5. The organization of the products being sold
☐5 ☐4 ☐3 ☐2 ☐1
Thank you for answering our short-survey questionnaire and rating scale. Have a nice
and convenient day ahead!
Appendix B
Questionnaire
PAASCU Accredited
34
INSTRUCTIONS:
Age: ______
Gender: _______
35
Appendix C
Observational Checklist
(Observed and measured by: NEVER, LESS OFTEN, OFTEN and ALWAYS)
36
LESS
QUESTIONS ALWAYS OFTEN NEVER
OFTEN
2. Does the convenience store serve its customer properly in terms of:
a) Cleanliness
b) Organization
c) Greetings
d) Suggestive Selling
Appendix D
Tally Sheet
No. of customers who enter in the convenience store at specific time intervals
Observer/s: Date:
Place: Day:
37
Time Number of Customers TOTAL
7:00AM – 8:00 AM
12:00 NN – 1:00 PM
3:00 PM – 4:00 PM
6:00 PM – 7:00 PM
Appendix E
38
39