OPTICAL SHOP CONSUMER SURVEY AS BASIS FOR FORMULATION OF AN EFFECTIVE MARKETING STRATEGY

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A Thesis ProposalPresented to theGraduate School

Cebu Technology UniversityMain Campus, R. Palma Street, Cebu City

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In Partial Fulfillmentof the Requirements for the Degree

Master in Public Administration

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By

ANNE JERE LETRONDO BAJARIAS

April 2012

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

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.

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)

Consumer Service

Price

Product

Promotion

SIGHT HAVEN

Service Enhancement

Recommended Marketing Strategy

Optical Shop Consumer Survey

Figure 1. Conceptual Framework

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

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)

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.

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.

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.

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.

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

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.

Figure 3. Location of the Study

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

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.

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

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

∑ 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.

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.

APPENDICES

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

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

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)

 

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          

CURRICULUM VITAE

ANNE JERE LETRONDO BAJARIAS2015 C. Mina St., Mabolo, Cebu City

Telephone Number: 232 3714Mobile Number: 0915 726 8527

E-mail Address: annejere.bajarias@ymail.com

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

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