Final Chapter 1 3
Final Chapter 1 3
Final Chapter 1 3
Geralyn Jumaylab
Jennifer Pedralvez
Ina Rempillo
Wendy Sebastian
March 2016
Chapter 1
THE PROBLEM AND ITS BACKGROUND
A Convenience store, c-store, small grocery, warehouse, mini
market or corner shop/store is a small store that stocks a range of
everyday items such as groceries, snack foods, candy, soft drinks,
cigarettes, newspaper and etc., such stores may also offer money order
and wire transfer services. In some jurisdictions, corner stores are
licensed to sell alcohol, typical beer and wine. They differ from general
stores and village shops in that they are not in a rural location and are
used as a convenient supplement to larger store.
Convenient stores has ten very popular crime target, notably
shoplifting and robbery. Convenient store have their plans on establishing
special task forces through the help of the authorities. In America, every
convenience stores are often been targeted through armed robbery.
In some areas of the United States, it is unusual for store clerks to
be working with armed bulletproof glass and windows, or even during
daylight hours. Some convenient stores
have only one person working in night shift mode. Most of the transaction
are in cash value and easy resold merchandise like liquor, lottery tickets,
and cigarettes on the site.
The reasons for the higher rate of the crime at convenience stores
may be attribute to various factors including, (a) the small number of
employees per store makes it difficult to stop or to prevent criminals (b)
the extended hours of many convenience stores present
more
opportunities when some customers and (c) the smaller size makes it
easy for criminals to quickly navigate the plan and enter and exit close to
the cash register of the stores. Most of the convenience store have
installed security cameras to help to detect robberies and shoplifting. All
convenience stores have a friendly relationship with the local police.
Since retail landscape and consumers shopping pattern are
developed in nature, changing following trends are also happening around
the world that remains a need for studying consumers behavior. With this
growth in disposable incomes and improving infrastructure
Convenience stores usually charge significantly higher prices than
conventional grocery stores or supermarkets. A convenience stores order
smaller quantities of inventory at higher per-unit prices from wholesalers
but their products are just the same products in other stores. The main
ASSUMPTION
The following assumption were posed for this study:
1. There are reasons why people prefer to buy in convenience store.
2. There are different marketing strategies employed by the convenience
store.
3. The customers have different perception on the different aspect of
marketability of a convenience store.
SIGNIFICANCE OF THE STUDY
This study is identified to be beneficial to the following:
To the first time business owners. This study can help them to
gain more knowledge in dealing with different consequences as they
manage their business.
To the customers. This study can help those who are also curious
about the marketability and the marketing strategy on how the owners
handle their business.
7. Franchise
An alternative to building "chain stores" to distribute goods that
13. Merchandise
Household,
personal
use,
or
commercial
goods,
wares,
Chapter 2
REVIEW RELATED LITERATURE AND STUDY
This chapter aims to provide literature and studies related to their
researchers study. Books, magazines, journals and even Internet have
been used. The researcher tried to find out the relevant issues and
information necessary for the current study.
This section presents both foreign and local related literatures
relevant to the study. This relevance is shown by the proponents in order
to give more reason and understanding of the proposition.
LITERATURE
Related local and foreign literatures that are relevant to this study
were included in this chapter.
leader in the industry 1282 outlets that delivered P17.1 million revenues
and P20.6 billion sales last year (2015).
According to the Press release of the countys largest convenience
store operator, Philippine seven corporation grew its net profit last year by
27.9 percent to P873.3 million on the back of improved operating margin
and continued store expansion.
with fast checkout. They are modern version of neighborhood mom-andpop grocery/general store. Convenience stores enable consumers to
make purchases quickly, without having to search through a large store
and wait a long checkout line. Over half the items bought are consumed
within 10 minutes of purchase.
Due to their small size and high sales, convenience stores typically
receive deliveries every day. Convenience sores only offer limited
assortments and variety , and they charge higher prices than
supermarkets, Milk, eggs and bread once represented the majority of their
sales, but now almost all convenience stores sell gasoline, which
accounts for over 66 percent of annual sales. The second-highest selling
item i cigarettes, accounting for 14 percent of sales.
Convenience stores also are facing increased competition from
other formats. Sales increase during periods of rising gasoline price, but
their dependency on gasoline sales is a problem because gasoline sales
have low margins. In addition, supercenter and supermarket chains are
attempting to increase customer store visits by offering gasoline and
trying gasoline sales into their frequent shopper programs. Drugstores
and full-line discount stores also are setting up easily accessed areas of
their with convenience store merchandise.
STUDIES
The following studies are presented to provide empirical support to
present study.
Local. A study conducted by Kantar World panel
leader in
found that consumers could quickly name a store when asked what store
comes to their mind for specific attributes such as lowest price, or most
convenient to them. Consumers will refer to shop at stores that has
attributes that can satisfy their needs.
A few researchers found that store location plays an important part
in determining the store choice (Kolodinsky and Crawell,2000). Location
suggests customers accessibility to the store and includes factors such
as distance , and time travelled to the store. It was found that consumers
prefer to shop at stores that they have easy access to and are convenient
for them (Fox and Moschis, 2004).
Satisfaction is also found to influence consumers subsequent
behaviour, such as turn the consumer into a loyal, committed customer,
one who is willing to repurchase, or a customer who switches brands or
discontinues using the product (Kotler and Keller, 2006). Satisfaction is
defined as a persons feeling of pleasure or disappointment resulting from
comparing a products perceived performance and expectation (Kotler
to
Bianchi
2009,
convenience
store
(C-stores)
choice in the retailing literature ( See Pan and Zinkhan, 2006). These
studies suggest that several attributes affect consumers references and
expectations of retail store, such assortment, service, product quality,
store atmosphere, store location, price level, check - out speed, hours of
operation, friendliness of sales people, and parking facilities.
In a retailing context, although , there is no one clear definition of a
convenience store for the purpose of these paper we will define it as a
small, centrally located store, featuring ease of access, late - night hours,
and a limited line of merchandise
THEORETICAL/CONCEPTUAL FRAMEWORK
Cue Utilization Theory. The argues that products or services
consist of several arrays of cues that serve as surrogate indicators of
product or service quality.There are both intrinsic and extrinsic cues to
help guests determine quality, where are the intrinsic cues provide
information such as brand and price.
Customer Attention
Marketing
Strategies
Cue Selection
and
Understanding
Customer
Service
Product
Quality
Product
Price
Product Risk
Beliefs
Experiences
and
Perception
Satisfied
Purchase Intention
Processing cues
And
Beliefs
Dissatisfied
Theoretical Framework
Selecting of Respondents
Demographic
Profile
Level of
Satisfaction
Reasons why
customers prefer
to buy in
convenience store
Marketing
Strategies
used by
convenience
Research Paradigm
Chapter 3
METHODS OF RESEARCH
This chapter covers research design, the respondent, the
researcher instrument, the procedure and the processing of data of the
study.
GATHERING DATA
The first thing researchers did is to ask permission from the Adviser
to conduct the survey. The questionnaire was distributed to the
respondents who are all very much informed for the use of the study so
that they can answer the questions assuredly. The research was reviewed
from the theses of other researchers before, from websites on the internet
and from journals, books and entrepreneur magazines.
STATISTICAL TECHNIQUE
1. The researcher used percentage as statistical technique in the analysis
and interpretation of the data gathering.
Percentage frequency formula is as follows;
Formula:m
f
N
P = x 100
Whereas, P = Percentage
F = Frequency
N = No. Of respondents
2. The researcher also used ranking as statistical technique in the
analysis and interpretation of the data gathered. Ranking formula is as
follows;
Rank = The sum of the ranks everyday
Number of the respondents
3. Weighted Mean
The answers were based on a four-point scale with the
corresponding descriptions.
Formula:
fx
X
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Where;