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OPTICAL SHOP CONSUMER SURVEY AS BASIS FOR FORMULATION OF AN EFFECTIVE MARKETING STRATEGY
_______________________________________________
A Thesis ProposalPresented to theGraduate School
Cebu Technology UniversityMain Campus, R. Palma Street, Cebu City
_______________________________________________
In Partial Fulfillmentof the Requirements for the Degree
Master in Public Administration
______________________________________________
By
ANNE JERE LETRONDO BAJARIAS
April 2012
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APPROVAL SHEET
This thesis entitled “Optical Shop Consumer Survey as Basis for Formulation of an Effective Marketing Strategy” prepared and submitted by Anne Jere L. Bajarias, in partial fulfillment of the requirements for the degree of Master in Public Administration (MPA), gas been examined and recommended for acceptance and approved for oral defense.
THESIS ADVISORY COMMITTEE
BONIFACIO S. VILLANUEVA, Ed. D.Chairman
VICTOR D. VILLAGANAS, Ed. D. CORAZON A. DE PERIO, Ed.D.Adviser Member
ADORACION A. LAWAS, Ed. D. REYNALDO T. GABALES, Ph.D., Ed.D.Member Member/Statistician
REBECCA d.C. MANALASTAS, Ph.D.Member
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Chapter 1
THE PROBLEM AND ITS SCOPE
INTRODUCTION
Rationale of the Study
The human eye plays a very important role in life. It is the organ of
vision that gives the sense of sight, allowing one to learn more about the surrounding
world. It is used in almost every activity, whether reading, writing, or watching television
and in any countless ways. (www.odec.ca)
Eyesight should be taken care of. Without a healthy vision, one will be
forced to rely on others in almost everything one does. Most people probably would
agree that sight is the sense they would value more than the rest. Good eyesight is an
important part of wellbeing and a significant factor in retaining independence and quality
of life as one gets older. (www.health.gov)
Sight Haven is an optical shop that was established last September
2011. It has two branches, one at J. Center Mall and the other in Parkmall. Since Sight
Haven is new in the optical industry and there are already established market leader in
optical shops, it has difficulty in gaining customers.
Another problem that Sight Haven is facing is the location of its
branches. Since the locations of its branches are not very accessible, the opportunity in
attracting customers is low. Because of these reasons, Sight Haven needs an effective
marketing strategy in order for them to compete with other optical establishments.
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Hence, this study is aimed to conduct a consumer survey in Lapu-lapu
City, Mandaue City, and Cebu City regarding optical stores. The findings of these study
will serve as a basis for formulating an effective marketing strategy for Sight Haven.
Conceptual Background
Marketing is the process and executing conception, pricing, promotion,
and distributing of ideas, goods and services to create exchanges that satisfy individual
and organizational goals. Marketing starts with the recognition of customer needs and
then works backward to devise products and services to satisfy these needs as
presented in Figure 1. The principal task of the marketing function operating under
marketing concept is not to manipulate customers to do, what suits the interest of the
firm, but rather to find effective and efficient means of making the business do what
suits the interest of the customers.(Peter and Connelly,2001)
According to Jain (2006), marketing plays a vital role in the strategic
management process of a firm. The experience of companies well versed in strategic
planning indicates that failure in marketing can block the way to goals established by
the strategic plan.
The concept of marketing mix is one of the basic ideas of marketing.
Marketing mix is a business tool used in marketing products.(www.wikipedia.org) it is
also known as a planned mix of the controllable elements of a products marketing plan
commonly termed as four P’s: product, price, place and promotion. These four elements
are adjusted until the right combination is found that serves the needs of the customer,
while generating optimum income.(www.businessdictionary.com)
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Consumer Service
Price
Product
Promotion
SIGHT HAVEN
Service Enhancement
Recommended Marketing Strategy
Optical Shop Consumer Survey
Figure 1. Conceptual Framework
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Product as one of the elements in four P’s is very important and the
success of the business will depend largely on how good or bad it is. The decision as to
the nature of the product also has to depend also has to depend on its customer base
as also their buying habits, geographical locations, purchasing power, and other factors.
Sometimes a business may want to come out with the best there is, and sometimes the
same business might market a product that is for the budget customer.
(www.streetdictionary.com) According to Direct Internet Marketing and Corporate
Consulting (DIMACC) the most important aspect of good marketing is to be sure to
produce product and services that meet your target customers’ needs, as well as their
desires and according to Lacorte in his study entitled “Marketing Practices of China
Banking Corporation Consumer Banking Group-Cebu Center”, consumer not only want
certain products and services, but they also want them in right amount and quality.
These studies are similar to the present study of the researcher since the researcher
wants to define the characteristics of Sight Haven’s products and services to ensure
that products and services will meet the expectations of the target customer.
Another element of the marketing mix is price. Price is the amount a
prospect is willing to pay for the product. The product should be priced properly. If it is
priced higher than what your customer is willing to pay then it will not sell and if it is
priced lower, then the business might be missing out on revenues. Therefore, price your
product or services competitively. Deciding on a pricing strategy beforehand can really
aid in pricing decisions. (www.dimacc.com) Pricing strategy is setting the right price for
your product and services. The price should not be too cheap or too steep. The delicate
pricing of product or service is an important factor in fighting off competitors. Some
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companies use high pricing to represent their products scarcity and quality. Others use
low pricing to directly compete with their competitors to obtain the highest market share.
Product promotion is another element of the marketing mix that is vital
to your business to promote your products and services. Promotion can include
advertising, selling, public relations, and sales promotion. Promotion strategy depends
on the product itself, the market, the customer and also the budget of the company has.
Aside from a well-planned marketing mix, another way to ensure the
success of your company is to have a good customer service. Customer service is a
series of activities designed to enhance the level of customer satisfaction – the feeling
that a product or service has met the customers’ expectation. Good customer service
matters because keeping customers is easier than finding new ones, and satisfied
customers will do a lot of advertising for us. Dissatisfied customers spread bad news
and undermine your business. According to Silvosa in his study entitled “Customer
Feedback on Marketing Practices of Rustans Supermarket-Cebu Branch” the company
should ensure proper monitoring the quality of products displayed in the display area in
order to attract more customers and products in display area can always be physically
attractive and have impressive presentations and make sure that it is always based on
the standard of the company and the company should ensure product availability
especially in their display area. Also, full-computerization system in the entire operation
can be implemented in order to provide fast and efficient service to the customer. The
present study of the researcher is similar with Silvosa’s study because both are dealing
with product display as part of customer satisfaction.
(www.smallbusinesssuccess.com)
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Sight Haven, is an optical shop owned by the Tan family, is new in the
optical industry. It was established last September 30, 2011 with its first branch at J.
Center Mall. Two months after, on December 12, 2011 it opened its second branch at
Parkmall. Since there are already established competitors in the optical industry such as
Executive Optical and delos Reyes Optical, Sight Haven has difficulty in gaining
customers. Also, the location of Sight Haven is not very accessible that is why it has
only few customers and only few people know its existence. Because of the crisis the
business is experiencing, it needs an effective marketing. It needs to define its target
market, analyze the market environment and position its products in order to compete
with other optical shops. In order for Sight Haven to properly define and analyze the
market and its environment, the profile of the target customers such as age, gender,
income bracket and educational attainment must be identified to cater the specific
needs and desires of a certain group of customers and to develop appropriate
marketing plan.
Thus, it is deemed necessary to conduct a consumer survey regarding
optical shop and use its findings as basis in formulating an effective marketing strategy
for Sight Haven.
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THE PROBLEM
Statement of the Problem
This study aims to conduct a consumer survey in Lapu-lapu City, Mandaue City
and Cebu City regarding optical shop. The data gather from the survey will serve as a
basis for formulating effective marketing strategy for Sight Haven.
Specifically, this study will answer the following question:
1. What is the profile of the respondents as to:
1.1 gender;
1.2 age;
1.3 income bracket; and
1.4 educational attainment?
2. What is the customers preference in choosing an optical shop as regard to:
2.1 product;
2.2 price;
2.3 promotion; and
2.4 service?
3. Is there a significant relationship between the respondents’ profile and its
preference in choosing an optical shop?
4. Based on the findings of the study, what effective marketing strategy for Sight
Haven may be proposed?
Null Hypothesis
The given null hypothesis was tested at 0.05 level of significance.
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H0: There is no significant relationship between the respondent’s profile and its
preference in choosing an optical shop.
Significance of the Study
The result of the study will benefit the following:
Sight Haven. The findings of the study will provide the management of Sight
Haven with base information in the formulation and development of their marketing
strategies in Lapu-lapu City, Mandaue City and Cebu City.
Future Research. The findings of the study will serve as a reference material for
future studies of related topics.
RESEARCH METHODOLOGY
The research methodology that will be used in this study will be descriptive
research method. Descriptive research is used when the study involves colleting of data
in order to test hypothesis or answer questions concerning the current status of the
subject of the study thus making it the most appropriate research method.
Flow of the StudyThis study will utilize the descriptive method of research with researcher-made
questionnaire. The questionnaire will determine the preference of customers in Lapu-
lapu City, Mandaue City and Cebu City when choosing an optical shop. The
questionnaire will also assess the relationship of the respondent’s profile and its
preference.
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Figure 2 gives the flow of the study. It uses the systems model – the input,
process and output approach.
Inside the Input are the profile of the respondents and the customers
preference in choosing an optical shop.
Included in the Process are the method used in the research, the instrument
used by the researcher in the gathering of data, the processing and data analyzing, and
the interpretation of the data gathered.
The Output contained the output of the research which is the proposed
marketing strategy for Sight Haven.
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INPUT PROCESS OUTPUT
Respondent’s Profile
Customers Preference in
choosing an Optical Shop
Descriptive method using researcher-
made questionnaire
Gathering of Data
Data Processing
Data Analysis
Interpretation of Data
Proposed Marketing Strategy for Sight
Haven
Figure 2. Research Flow
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Research Environment
This research will be conducted in Lapu-lapu City, Mandaue City and Cebu City.
The researcher will only focus its study in these areas since Sight Haven is new in the
optical industry and it has still two operating branches – in J. Center Mall and Parkmall.
The researcher chose these areas as its research environment because of the location
of the branches of Sight Haven.
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Figure 3. Location of the Study
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Research Respondents
The respondents of this study are those people with eye problem that are
residing in Lapu-lapu City, Manduae City and Cebu City. The researcher will distribute
the questionnaire to 400 respondents. Since the total number of population in these
cities are unknown, the researcher computed the sample size through computer
generation and through the table researched from the internet.
Table 1. Sample size for ±3%, ±5%, ±7% and ±10% Precision Levels Where Confidence Level is 95% and P=.5.Size of Sample Size (n) for Precision (e) of:Population ±3% ±5% ±7% ±10%500 A 222 145 83600 A 240 152 86700 A 255 158 88800 A 267 163 89900 A 277 166 901,000 A 286 169 912,000 714 333 185 953,000 811 353 191 974,000 870 364 194 985,000 909 370 196 986,000 938 375 197 987,000 959 378 198 998,000 976 381 199 999,000 989 383 200 9910,000 1,000 385 200 9915,000 1,034 390 201 9920,000 1,053 392 204 10025,000 1,064 394 204 10050,000 1,087 397 204 100100,000 1,099 398 204 100>100,000 1,111 400 204 100a = Assumption of normal population is poor (Yamane, 1967). The entire population should be sampled.(www.edis.ifas.ufl.edu) Figure 4. Table for Sample Size Determination
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Research Instruments
The main instrument that will be used is the researcher-made questionnaire
adopted from the study of Eweida and Sverkel entitled “Understanding Consumer
Preference in the Flower Industry” and from the study of Llido entitled “On-line Lottery
Consumer Survey : Basis for Evaluation and Formulation of Effective marketing
Strategy”. The test will be given to 400 respondents with eye problem. In order to
gather the needed information, the researcher will personally conduct the survey and do
some informal interview if necessary. The questionnaire was constructed into two(2)
parts.
Part I contained the personal profile of the respondents for the background
information.
Part II contained the customer expectations and preference in choosing an
optical shop.
Data Gathering ProceduresIn the gathering of the data needed for the study, certain procedures were
followed:
A. Conducting survey in companies
First, the researcher will give a letter of intent to conduct an interview in the said
company to the department concerned.
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Second, with the approved letter of intent, the researcher will then personally
give the questionnaire to the respondents and conduct informal interview if
needed in order to attain the desired outcome.
Third, after conducting the survey, letter of gratitude will be given to the
concerned department.
B. Random Survey
The researcher will randomly select a person with an eye problem and personally
conducts the survey regarding its preference in choosing an optical shop.
C. Survey using the Internet
The researcher will determine friends and relatives with eye problem that are
residing in Lapu-lapu City, Mandaue City and Cebu City and will send them
questionnaire through electronic mail or post questionnaire in their facebook
page. A following interview will be conducted for clarifications.
Statistical TreatmentAfter the questionnaire had been distributed and collected, the data were
collected, tabulated and subjected to the following statistical treatment.
1. Simple Percentage Computation. This formula will be used to determine the
profile of the respondents such as age, gender, income bracket and
educational attainment.
The formula is:
= P=fNx 100
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Where:
P is the percentage
f is the frequency of the response
N is the total number of cases
100 is constant
2. Average Weighted Mean. This formula will be utilized to determine the
customers preference in choosing an optical shop as regard to product, price,
promotion and customer service.
The formula is:
X=∑ fwN
Where:
X is the weighted mean
∑ is the sum of summation
f is the frequency of the respondents
w are the weights
N is the total number of cases
3. Chi-Square. This formula will be used to test the null hypothesis.
The formula is:
X2=∑(Fo−Fe )2
Fe
Where:
X2 is the chi square
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∑ is the sum of summation
Fo is the observed frequency
Fe is the expected frequency
Scoring ProcedureTo score the responses given by the respondents, the following categories will be
used.
Weight Category Verbal Description
5 Strongly Agree (SA) The respondent absolutely concur with
the given situation or condition.
4 Partially Agree (PA) The respondent partly concur with the
given condition or situation.
3 Undecided (U) The respondent cannot decide whether
to agree or disagree with the given
situation or condition.
2 Partially Disagree (PD) The respondent partly oppose with the
given condition or situation
1 Strongly Disagree (SA) The respondent totally oppose with
the given condition or situation.
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Definition of Terms
Marketing strategy. Marketing strategy is a strategy that integrates an organization’s
marketing goals into a cohesive whole. Ideally drawn from market research, it
focuses on the ideal product mix to achieve maximum profit potential. The
marketing strategy is set out in a marketing plan.
Marketing mix. Marketing mix is a planned mix of the controllable elements of
a product's marketing plan commonly termed as 4Ps: product, price, place,
and promotion.
Product. Product is a good, idea, method, information, object, or service that is
the end result of a process and serves as a need or want satisfier. It is usually
a bundle of tangible and intangible attributes (benefits, features, functions, uses)
that a seller offers to a buyer for purchase
Price. Price is a value that will purchase a definite quantity, weight, or other measure of
a good or service
Promotion. Promotion is all forms of communication other than advertising that call
attention to products and services by adding extra values toward the purchase.
Includes temporary discounts, allowances, premium offers, coupons, contests,
sweepstakes, etc.
. Consumer Service. Customer service is any contact between a customer and a
company, that causes a negative or positive perception by a customer.
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BibliographyBooks
J. Paul Peter and James H. Donnelly, Jr., Marketing Management: Knowledge and
Skills, 6 th Edition. New York: McGraw – Hill, 2001
Walter van Waterschoot, The Journals of Marketing, 2006
Unpublished Material
Valmoria, Levi Graciano, Performance of Philippines Drug Enforcement Agency
Regional Office VII (PDEA RO-7): Action Plan, (Unpublished Master’s Thesis,
Cebu Technological University, Cebu City, 2006).
Fay Basilla Lacorte, Marketing Practices of China Banking Corporation
Consumer Banking Group – Cebu Center, (Unpublished Master’s Thesis,
University of San Carlos, Cebu City, 2000)
Philip B. Llido, On-Line Lottery Consumer Survey: Basis for Evaluation and
Formulation of Effective Marketing Strategy, (Unpublished Master’s Thesis,
University of San Carlos, Cebu City, 2000)
Romel S. Silvosa, Customer Feedback on Marketing Practices of Rustan’s
Supermarket – Cebu Branch, (Unpublished Master’s Thesis, University of San
Carlos, Cebu City, 2000)
Adam Eweida and Simon Sverkel, Understanding Consumer Preference in the
Flower Industry, Uppsala University, Department of Business Studies, 2009
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Internet
www.edis.ifas.ufl.edu
www.commerce.uct.ac
www.freeworldacademy.com
www.odec.ca
www.health.com
www.wikipedia.org
www.businessdictionary.com
www.streetdictionary.com
www.dimacc.com
www.smallbusiness.com
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SAMPLE QUESTIONNAIRE
Dear Respondents:This survey questionnaire is prepared to assess the customer preference in
choosing an optical shop. Please accomplish this questionnaire carefully and honestly. Rest assured that all information will be treated with greatest confidentiality.
A. Personal Particulars
Please answer the following questions by putting an X mark on the numbers provided for each of the choices. Please do not leave any question blank.
1. Gender(1) Male (2) Female
2. Age(1) 18-29 years old(2) 30-39 years old(3) 40-49 years old
(4) 50-59 years old(5) 60-69 years old
3. Income Bracket(1) None(2) 1,000 – 5,000(3) 6,000 – 10,000(4) 11,000 – 15,000(5) 16,000 – 20,000(6) 21,000 – 25,000
(7) 26,000 – 30,000(8) 31,000 – 35,000(9) 36,000 – 40,000(10) 41,000 – 45,000(11) 46,000 – 50,000(12) 51,000 above
4. Educational Attainment(1) None(2) Primary(3) Secondary(4) Vocational(5) College(6) Post-graduate
B. Customer PreferencePlease put an X mark on the corresponding column of your answer.
Weight Category 5 Strongly Agree (SA) 4 Partially Agree (P) 3 Undecided (U) 2 Partially Disagree(PD) 1 Strongly Disagree (SD)
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5 (SA
)
4 (PA
)
3 (U)
2 (PD
)
1 (SA
)
PRODUCT 1. Excellent optical shop will have high quality products and equipment 2. Excellent optical shop will have a wide range of products 3. Excellent optical shop will have attractive and pleasing products
4. High quality product will be attractively packaged 5. The availability of the products displayed is important to me 6. Excellent optical shop will have the latest fashion eyeglasses and contact lenses
PRICE 1. Eyeglasses and contact lenses in an excellent optical shop will be competitively priced 2. Excellent optical shop will offer discounts if customer will buy in bulk
PROMOTION 1. Excellent optical shop will have its advertisement on television 2. Excellent optical shop will have its advertisement on radio
3. Excellent optical shop will have its advertisement on newspaper or magazine 4. Excellent optical shop will offer products bundled with other products
SERVICE 1.Excellent optical shop will handle customer complaints effectively and in a professional manner 2. Excellent optical shop can handle demanding customers in a professional manner 3. Excellent optical shop will offer advice about products at the time of purchase 4. Excellent optical shop must have expert and trained staff
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CURRICULUM VITAE
ANNE JERE LETRONDO BAJARIAS2015 C. Mina St., Mabolo, Cebu City
Telephone Number: 232 3714Mobile Number: 0915 726 8527
E-mail Address: [email protected]
Personal Information
Date of Birth : December 02, 1986Place of Birth : Cebu CityAge : 25 years oldGender : FemaleNationality : FilipinoCivil Status : MarriedSpouse Name : Jeb D. Bajarias, Jr.Daughter : Ashlee Selene Letrondo Bajarias
Employment History
Brand AssociateInternational Pharmaceuticals, IncorporatedAugust – November 2011
Brands : Herbycin ExpectorantApple TonicDr. Wong’s Tiki-TikiNopain Mefenamic Acid
Exposure : Marketing and PlanningInventory ManagementSales Management
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Educational Background
Post Graduate : Master in Public AdministrationCebu Technological University2011 – Present
College : Bachelor of Science in ManagementUniversity of the Philippines Cebu2004 – 2008
Secondary : Cebu City National Science High School2004 – 2008
Elementary : Cebu Normal University1994 – 2000