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A Study of Max’s Restaurants Consumers Behavior DELOS SANTOS STI-COLLEGE E. Rodriguez, Sr. Blvd., Quezon City Submitted in Partial Fulfillment of the Requirement for Business Research at DLS-STI, Quezon City Submitted by SHALIMAR T. BINUYA CRISTINE JANE D. BERSAMIRA IRISH T. PUNZALAN JOEY F. ENCARNACION NIKOLAI BALAAN Submitted to DR. ARNOLD O. ADANTE

Transcript of yeo yeo yeo

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A Study of Max’s Restaurants Consumers Behavior

DELOS SANTOS STI-COLLEGEE. Rodriguez, Sr. Blvd., Quezon City

Submitted in Partial Fulfillment of theRequirement for Business Research at DLS-STI, Quezon City

Submitted by

SHALIMAR T. BINUYACRISTINE JANE D. BERSAMIRA

IRISH T. PUNZALANJOEY F. ENCARNACION

NIKOLAI BALAAN

Submitted to

DR. ARNOLD O. ADANTE

May 10, 2011

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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Factors that would influence the consuming behavior of buyers. Among these factors include the

cultural, social, and personal factors. Among the cultural aspects include the culture-values,

perceptions, and preferences that are the most fundamental determinant of a person's wants and

behavior social factors that affect the buying behavior of the consumers of a product includes the

reference groups-all groups that have an influence on attitudes or behavior; the family, which is

the most influential primary reference group; and the roles and statuses, which defined as the

activities a person is expected to perform and the status associated with each. Stated that the

personal factors include variables such as the age and life-cycle stage- people buy

different goods over their lifetime. Another is the occupation and economic circumstances of the

consumer as well as his/her lifestyle. The latter is defined as the pattern of living as expressed by

activities, interests, opinions. Moreover, another personal factor is the personality and self-

concept-personality characteristics that influence buying behavior of the consumers. The

psychological factors such as the motivation of the consumer to purchase a need; the perception

of the consumer towards a product; learning as related to the experiences of the consumer, and

their beliefs and attitudes based on the thoughts and favorable, or otherwise, evaluations of a

person towards a certain merchandise. (Kotler, 1980)

Marketing Strategy define as 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.

The philosophy of being a market-driven business means making sure all aspects of the business

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products and services, customer service, marketing strategies are dedicated to solving customer

problems or meeting customer needs. You adapt your business to take advantage of demand that

already exists in the marketplace rather than trying to create demand through your marketing

efforts. Because competition is so intense in the restaurant business, knowing exactly what kind

of dining experience customers want is vital to success.

(Belmont University 2004)

Consumer behavior study is based on customer buying behavior, with the customer playing the

three distinct roles of user, payer and buyer. Once consumers were satisfied from the service to

the product you gave they will keep from coming back. Through consumers, businesses were

kept on increasing and the more consumers demand the more businesses will rise. Moreover,

aside from the behavior of consumers, expectations are also vital. In this kind of business, we

must know what the consumers wants and needs in order to attain their expectations. Consumer’s

expectations are also important because once they got satisfied with the kind of service you give

and you exceed their expectations, consumer will be able to remember it even in the smallest

thing.

the researchers would like to study the case of Max’s Restaurant, it being one of the best chicken

houses but not the only one. With all its competitors in the market, the researchers would like to

determine how it remains one of the strongest brands that it is today. The paper aims to discuss

not just the strategies they have used but also the behavior that consumers contributed to run the

restaurant. While Max’s Restaurant is indeed one of the most well-known restaurants in the

Philippines, the researchers believe that its success was not without failures and challenges. With

sixty-five years in existence, it is essential to explore and learn about how the restaurant

managed to keep with the times and remain a well-loved dining place.

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BACKGROUND/ SETTING

Before Max’s Restaurant was introduced in the Philippines it is not yet a restaurant. It

only started as a bar in the house of Maximo whose first customers were the American soldiers

in 1945. They were only serving drinks and food for

the American soldiers that time. Just the World War

II has ended, and the Philippines, being the close

ally of the United States, opened itself to

accommodate American soldiers. At that time, their

camp was close to the property of Maximo Gimenez

situated in the Diliman area on what is now Scout Tuazon, Quezon City. Perhaps the American

soldier is in need of some stimulating conversation or a change of pace from their lives at the

base, they befriended Maximo. In the beginning, the American GIs would bring their own hard

drinks. Eventually, they wanted something to eat while drinking. But Maximo wasn’t really a

cook, so he would ask his niece, Ruby Trota, to cook something. She was living in the house

with her family because their home in Paco, Manila has been leveled by the war. Using her own

recipe, Ruby prepared the one item that would have the power to “build a house”: fried chicken.

At first the soldiers just bartered their alcohol for the fried chicken. But soon after, they started

paying for their meals. Word got around fast and more and more soldiers were trooping to

Maximo’s residence to have a taste of their chicken.

It was not long before the place became known to serve very good chicken and steaks.

One could perhaps say that it literally was “the house that friend chicken built.” If it started for

The house of Maximo Gimenez.

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the Filipinos, it would have been called “Maximo.” But because the Americans couldn’t

pronounce his name properly, they decided to call it “Max’s.”

In 1945, Max’s Restaurant’s first branch

formally opened on Scout Tuazon, Quezon

City, with Maximo’s house on top of the

restaurant. They say that the “The House of

Imo (Maximo)” had the popular pre-war type

architecture built on tall massive wooden posts

built on solid ground-not even cemented. Since Max’s Restaurant became popular and as the

customers kept on increasing, they decided to entertain them at the ground floor. Eventually, the

floor had to be cemented, and the kitchen had to be built on the ground floor. They had to hire

extra helpers in order to accommodate all their customers.

But with the war over, Japan had surrendered, and the American soldiers eventually left

the Philippines. And with their number one customers gone, the restaurant did close down for

less than a year. Due to the lack of formal marketing and Quezon City being far from Manila,

which was then the center of commerce in the Philippines, business slowed down noticeably.

However, word of mouth would again give Max’s Restaurant its edge. People who heard of the

good chicken being served there eventually went over to have a taste of their offering.

In 1950, Max’s opened their second branch in Baclaran, Parañaque City, since that was

where Ruby was based. In the next few decades, Max’s would continue to expand with other

family members from different sides of the Trota family managing different branches, mostly

within the Metro Manila. There were four families operating Max’s that time: the Trotas, the

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Fuentebellas, the Sanvictores, and the Rogers. However, the dominant family that were running

that time were Erlinda Trota—Jim Fuentebella’s mother—and Robert Trota’s family headed by

his father, Edgardo Trota. They were all children of Ruby Trota. The latter passed away in 1981,

a decade after Maximo Gimenez passed away in

1970. The Sanvictores family was always part of

everything. They own a minority share but they

stick to the ownership side. On the other hand, the

Rogers family is based in the United States and is

headed by Bill Rogers, who is Trota and

Fuentebella’s cousin. Rogers was just a stockholder and not actually very active in the

operations.

In the 1980’s, because the threat of martial law and the Marcos administration’s pressure

on local businesses, many companies in the country either closed or moved to the United States

to escape persecution. Max’s was one of them. In 1981, Max’s opened its first branch outside the

country in San Francisco, California.

In the early part of the 1990’s, more than 30 Max’s Restaurants now spread all over the

Philippines, each managed by a different branch of the family, it soon became apparent that the

brand was growing. Despite of the lack of marketing strategy and promoting plan, they brought

Max’s Restaurant the same standard as every other restaurant in terms of service, quality and

value in the public and became prominent. Soon, the four families decided that it is time to give

effort to create one solid and united Max’s brand. They decided to do things that would help the

business more competitive in terms of the look of the restaurant, to the logo, to advertising. In

1998, after five years of planning Max’s was finally ready to franchise.

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Max’s Restaurant continues to multiply over the Philippines. While it remains a very

strong brand of dining, despite more and more competitors are showing up with the same product

—chicken. They began to advertise it with the use of commercials, billboards, flyers,

advertisement on magazines and newspapers. They even used tag lines for the viewers or

customers to remember the product they were promoting. The restaurants usually marketed itself

as a place for Filipino families to get together, it also established its slogan “Sarap to the bones!”

and eventually they made a popular series of television advertisement telling the story of a Max’s

employee played by TV celebrity Piolo Pascual. With this, Max’s continues to experiment

something new that people would like to eat aside from there original friend chicken which they

offered from the beginning.

Today, we know Max’s Restaurant for its fried chicken and as “The house that fried

chicken built”. It currently has over 120 branches in the Philippines. The chain also has branches

in the U.S. states of California, Hawaii, and New Jersey, and its first Canadian branch in

Toronto, Vancouver and more branches will open soon in Sydney, Australia, and Dubai, United

Arab Emirates.

It can be said that Max’s Restaurant has indeed come a long way. However, it is vital for

the company and its owners to remain competitive and to take advantage of the market and to

strengthen its brand and in order to keep its large customer base as well as to create new ones.

(Peter Imbong, Entrepreneur “The Big Franchise,” July 2010.)

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Timeline

1945: Max’s Restaurasnt opens on Scout

Tuazon, Quezon City, in home of Maximo

Gimenez.

1950: Max’s Restaurant opens in Baclaran,

Paranaque City.

1970: Maximo Gimenez passed away.

1981: Ruby Trota passed away.

1981: Max’s Restaurant opens its first branch

outside the Philippines, in California, USA.

1993: The cousins and families managing

Max’s get together to discuss the future of

Max’s, include franchising, marketing and

systematizing.

1994: Max’s Restaurant signs singer Gary

Valenciano as their first endorser.

1998: Max’s Restaurant begins franchising.

2002: Max’s Restaurant signs matinee idol

Piolo Pascual as their celebrity endorser.

2006: Max’s acquires he master franchise of

Krispy Kreme Doughnuts. They open the

first Krispy Kreme Doughnuts store in

November at the Bonifacio Global City’s

High Street in Taguig City

Conceptual Framework

Discuss the history of Max’s Restaurant.

Define the factors affecting consumer behavior:

Social class Personal Influences Family

Analyze all the factors through interpretation.

Make an overview on marketing strategy of the company.

Elucidation regarding the factors that affect consumer behavior.

Conclusion and recommendation of the study.

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Input Process Output

Figure 1.1 Conceptual Framework of the study.

Models of buying behavior have been developed since the 1940s to satisfy the objectives

of describing and predicting consumer behavior, so that a fuller understanding of customers, both

present and prospective, is achieved (Chisnall 1995). For this author, of the many models of

buying behavior, the multivariable models are the most appropriate. As Schiffman and Kanuk

(1994) argued, these are comprehensive models conceived to capture the dynamics of consumer

decision-making and to provide a framework for consumer researchers to test the various

dimensions of the models. The multivariable models emphasize that many buying decisions,

even those reputedly based on purely economic considerations, are also subject to the so-called

non-rational factors. People’s needs and motivations are complex and they are likely to seek

satisfaction at an economic level and also at deeper levels, involving emotions cultural norms

and values, group affiliations, etc. (Chisnall 1995).

The researchers aim to begin with the history of Max’s Restaurant and to provide a wider

explanation about the organization they have created. Subsequent to gathering of data, the

researchers have thought that Max’s Restaurant endow with promotions and advertising of their

product. Hence, the study will focus upon the behavior of the consumers as well as the factors

affecting consumer’s behavior, and how will this affects on the operations of the company.

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As the research gathered all the factors affecting consumer behavior, the researcher

discover that the comprehensive models conceived to capture the dynamics of consumer

decision-making and to provide a framework for consumer researchers to test the various

dimensions of the models.

In the Max’s Restaurant case, the company concentrated more on promotional and

advertising of their product as well as the image of the company. Their strategy takes effect to

the consumers resulting of more productive goods and higher profit to the company. As the result

of this, the company has brought a wider and more comprehensive development in adding.

However, the company did not focus on the type of consumers that they target to purchase on

their product. The reason why consumers aren’t able to buy is for the reason that they can’t

afford the given price of the product, this is because of the position or status of ones life,

personal influences, and the life style of consumers.

Because of that, the researchers will tackle about the factors affecting the consumers

buying behavior. And to provide an overview on the factors affecting consumer’s behavior as

well as the marketing strategies that will help the company determined the factors that needed to

be improved.

STATEMENT OF THE PROBLEM

1. What kind of strategy did the company use in order to attract customers in terms of:

1.1. Promotional

1.2. Advertising

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2. What are the factors that the company considered to meet customer’s expectation?

3. What marketing strategy may be developing by Max’s Restaurant?

SIGNIFICANCE OF THE STUDY

The importance of this study is to help the researchers know the reasons and other factors

that contribute to the success of Max’s Restaurant. To be able to know what the consumers still

wants and expects when eating in a restaurant like Max’s. The researcher aims to know what

kind of behavior the consumer does in a situation that is irrepressible.

Further more, the students would also benefit in this research by giving them knowledge

about Max’s Restaurant and allowing them to be part of the history of the company, to know the

reasons behind the success of Max’s Restaurant, and how did they cope up despite of the

economic problems. The students may also use this as their reference upon researching about

Max’s Restaurant. This would help them become educated in the business in terms of

promotional strategies, advertising, marketing strategies, and even encountering consumer’s

actions.

Consumers may also be part of this research for this will provide them idea on what

Max’s Restaurant is all about. This will give them knowledge what the Max’s Restaurants did in

order to provide the needs of their consumers, what other service or promotional strategies did

they used to meet the expectation of their consumers as well.

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This study may benefit other food companies or start-ups by identifying, through the

example of the experience of Max’s Restaurant, the factors that give rise to higher customer turn-

out. The output of this study may somehow help Max’s Restaurant identify what can be done to

capture young people and to keep attracting new customers. By means of survey, Max’s will be

able to know what the customers still needs and wants and what to improve more in spite of their

success. Though they were also conducting survey to their customers, this will also help them

give ideas to motivate them improve more of their promotional strategies, and what other service

does consumers expects.

For the future researcher, this will serve as their guide for the study and to help them give

an idea about the promotional strategies and marketing strategies used by the Max’s Restaurant.

SCOPE AND DELIMITATION

The study will focus on the consumer’s behavior and their expectations from Max’s

Restaurant, as well as other possible strategies that the restaurant undertakes to further its client

base. However, the study will not dwell on the operational problems and challenges such as

employee concerns, pricing, or other issues involving management of the restaurant. Further, the

study is bound within a two-month schedule and as such, extensive evaluation and exploration of

other possible alternatives and solutions to the problem may not be conducted.

DEFINITION OF TERMS

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Advertising. The act or practice of calling public attention to one’s product, service, need, etc.,

especially by paid announcements in newspapers, and magazines, over radio or television and

billboard.

Business. A person, partnership, or corporation engaged in commerce, manufacturing, or

service.

Business Plan. A detailed plan setting out the objectives of a business, the strategy and tactics

planned to achieve them, and the expected profits, usually over a period of three to ten years

Business Research. It is refers to any type of researching done when starting or running any

kind of business.

Capital. The ownership interests of a business as represented by the excess of assets over

liabilities.

Company. It is a collection of individuals and physical assets with a common focus and an aim

of gaining profits

Consumer Behavior. The study of when, why, how, and where people do or do not buy a product.

Corporation. An association of individuals, created by law or under authority of law, having a

continuous existence independent of the existences of its members, and powers and liabilities

distinct from those of its members.

Franchise. A relationship between a manufacturer and a retailer in which the manufacturer

provides the product, sales techniques, and other kinds of managerial assistance, and retailer

promises to market the manufacturer’s product rather than that of competitors.

Market Research. It is the study of influences upon customer and consumer behavior and the

analysis of market characteristics and trend. The gathering and studying of data relating to

consumer preferences, purchasing power, especially prior to product on the market.

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Marketing. The provision of goods or services to meet customer or consumer needs.

Marketing Research. It is a research that gathers and analyzes information about moving of

good or services from producers to consumers.

Research. Systematic investigation to establish facts or principles or to collect information on a

subject.

Researcher. Somebody who performs research, the search for knowledge or in general any

systematic investigation to establish facts.

Restaurants. An establishment where meals are served to customers.

Strategy.  A word of military origin refers to a plan of action designed to achieve a

particular goal.

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDY

This presents the reviews of related literature thus local and foreign and related studies,

which may serve as source of the past studies about consumer’s behavior, which will help in

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making this study more enriching and educative. The researcher gathered some relevant findings,

which may not have direct similarity with the present study, and yet in one way or another has

some relation to the topic.

Related of Foreign Literature

1.1. Sources of influence on the consumer

Consumer behavior essentially refers to how and why people make the purchase

decisions they do. Marketers strive to understand this behavior so they can better formulate

appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a

vast number of goods available for purchase, but consumers tend to attribute this volume to the

industrial world’s massive production capacity. Rather, the giant known as the marketing

profession is responsible for the variety of goods on the market. The science of evaluating and

influencing consumer behavior is foremost in determining which marketing efforts will be used

and when. (Wendy H. Hasson 1997)

1.2. Influencing the consumer

The consumer faces numerous sources of influence. Often, we take cultural influence for

granted, but they are significant. Physical factors also influence our behavior. For example, a

food manufacturer has found that it is more effective to advertise their products on the radio in

the late afternoon when people are getting hungry. A person’s self-image will also tend to

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influence what he or she will buy-an upwardly mobile manager may buy a flashy car to project

the image of success. Social factors also influence what consumers buy-often, consumers seek to

imitate others whom they admire, and may buy the same brands. The social environment can

include both the mainstream culture (e.g., Americans are more likely to have corn flakes or ham

and eggs for breakfast than to have rice, which is preferred in many Asian countries) and a

subculture (e.g., rap music often appeals to a segment within the population that seeks to

distinguish itself from the mainstream population). Thus, sneaker manufacturers are eager to

have their products worn by admired athletes. Finally, consumer behavior is influenced by

learning-you try a hamburger and learn that it satisfies your hunger and tastes good. (Robert E.

Kleine III “Research in Consumer Behavior” 2002)

1.3. The need for altering the Customers Behavior

Clearly, many market offerings need enhancement (by product innovations, by segment-

customization, or by quality improvements) so as to meet or exceed customer expectations

behavior. Indeed, we cannot overemphasize the first requisite for firms to attempt to

accommodate as many of customer’s expectations as economically feasible. However, many

expectations are feasible or costly to accommodate, and instead require altering. One way to sort

out consumer’s behavior that requires altering is to plot them in relation to what a firm can

realistically deliver. In any industry, customer behavior can be found to vary widely. These

varying behaviors may range from unrealistically high to unrealistically low. Behaviors in close

vicinity to a firm’s actual performance are deemed “realistic” these fall in the zone of

accommodation. (Jagdish N. Sheth and Banwari Mittal “Framework for managing customer

behavior 1996)

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1.4. Adaptive Marketing and Consumer Behavior

As markets become global, it will become more and more important for marketing

managers to understand and cope with cross-cultural or international consumer behavior. As

markets become more mature, understanding, competitive behavior becomes more important.

This should result in focusing on comparative customer behavior to pinpoint relative perceptions

and behavior. Companies are likely to utilize more and more behavior modification strategies

and less persuasion strategies in order to cope with rapidly changing competition and technology.

His should result in shifting the focus of consumer behavior away from perceptions and

cognitions and toward behaviors of customers and marketers. (Andre Davies “Adapting

Consumer Behavior” 2010)

1.5. Consumers Behavior and Expectation

Consumers make choices based on expectations of how alternative options will perform

(i.e., expected utility). Expectations about the quality of a product also play a central role in

subsequent satisfaction (Anderson and Sullivan 1993; Parasuraman, Zeithaml, and Berry 1994).

These expectations may be based on a number of factors including the quality of a typical brand

in a category, advertised quality, and disconfirmation sensitivity (Goering 1985; Kopalle and

Lehmann 1995; van Raaij 1991). Recent evidence suggests that consumers who are more

disconfirmation sensitive (i.e., consumers who are more satisfied when products perform better

than expected or more dissatisfied when products perform worse than expected) have lower

expectations (Kopalle and Lehmann 2001; Monga and Houston 2006). However, there is little

research concerning the role of culture-specific variables in expectation formation, particularly

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how they relate to the impact of disconfirmation sensitivity on consumer expectations. (Praveen

K. Kopalle “Consumer Expectations and Culture” 1998)

Related of Foreign Studies

2.1. The study of Buyer Behavior

The dramatic change from product to buyer focus was result perhaps of changes in the

demand-supply relationships. The industrial revolution initiated mass production and the

consumer found himself with a variety of choices. The presence of alternatives made producers

scramble for the attention and choice of the buyer. Thus, business firms are now compelled to

design and sell products that conform to the buyer’s desires. Buyer behavior has become so

important that the success of marketing program depends on a good understanding of it. It helps

a seller to select the most effective product design, price, advertising appeals and channels of

distribution, which would most likely to entice the buyer. Stated differently, an understanding of

buyer behavior will enable a marketer to communicate more effectively with its market. (Mc

Carthy, Jerome E., 1998)

2.2. Influencing consumer’s behavior

One of the best ways to influence consumer behavior is to give buyers an acceptable

motive. This is somewhat related to the idea of asking what type of person would buy a certain

product in evaluating consumer behavior. Consumers want to feel they’re doing something good,

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being a good person, eating healthy, making contacts, keeping up appearances, or that they just

deserve to be spoiled a little bit. If marketer can convince consumers that they need a product or

service for some “legitimate” reason, customers will be more likely to make a purchase. Another

alternative for influencing customer behavior is by offering specialized goods. While

commonality was once popular, more and more people are seeking diversity in taste, personal

preference, and lifestyle some successful campaigns touting the way their product stand out from

the crowd include Dodge’s “ the ruled have changed” this is different. Different is good.”

(Deborah Hussler Influencing Consumer’s Behavior” 2007)

2.3. Purchase Patterns

A study conducted by Susan Powell Mantel focused on analysing the roles of “attribute-

based processing” and “attitude-based processing” when analysing consumer preference.

According to the study, product attributes (qualities such as price, size, nutritional value,

durability, etc.) are often compared disproportionately, i.e., one is the more focal subject of

comparison, thus eliciting more consideration when the consumer decides which brand is the

“best.” The order of brand presentation in these cases is particularly important. Adding to the

complexity of the issue is the fact that purchase decisions are not always made on the basis of an

“attribute-by-attribute” comparison (attribute-based processing). Consumers also make decisions

based on an overall evaluation of their impressions, intuition, and knowledge based on past

experience, or attitude-based processing. Learned attitudes also influence these decisions. For

example, parents who drank Kool-Aid as children often but it for their kids, either because they

associate it with fond memories or just because brand familiarity or loyalty. (Deborah

Hussler“Consumer’s Behavior” 1999)

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2.4. Information search and decision making

Consumers engage in both internal and external information search. Internal search

involves the consumer identifying alternatives from his or her memory. For certain low

involvement products, it is very important that marketing programs achieve “top of mind”

awareness. For example, few people will search the yellow pages for fast food restaurants; thus,

the consumer must be able to retrieve one’s restaurants from memory before it will be

considered. For high involvement products, consumers are more likely to use external search.

Before buying a car, for example, the consumer may ask friend’s opinions, read reviews in

Consumer Reports, consult several websites, and visit several dealerships. Thus, firms that make

products that are selected predominantly through external search must invest having information

available to the consumer in need e.g., through brochures, websites, or new coverage. The

amount of effort a consumer puts into a searching depends on a number of factors such as the

market (how many competitor are there, and how great are differences between brands expected

to be?), product characteristics (how important is this product how complex is the product? How

obvious are indications of quality?), consumer characteristics (how is a consumer, generally, in

analysing product characteristics and making the best possible deal?), and situational

characteristics. (Lars Perner PhD., “Consumer Behavior: The Psychology of Marketing” 2010.)

2.5. Consumer Motivation

A marketer’s job is to figure out what needs and wants the consumer has, and what motivates the

consumer to purchase. Motivation is the drive that initiates all our consumption behavior, and

consumers have multiple motives, or goals. Some of these, overt, such as physiological thirst that

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motivates a consumer to purchase a soft drink or the need to purchase a new suit for an

interview. Other motives are more obscure, such as a student’s need to plug in an iPod or wear

designer clothes to gain social approval. Consumer motives or goals can be represented by the

values they hold. Values are people’s broad life goals that symbolize a preferred mode of

behaving or a preferred end-state of being. Consumers buy products that will help them achieve

desired values; they see product attributes as a means to an end. Understanding the means-end

and perspective can helps marketer’s better position the product and creates more effective

advertising and promotion campaigns. (Lauren Block and Patricia Williams “Encyclopedia of

Business and Finance 2nd edition 2007)

CHAPTER III

METHODS AND PROCEDURE

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This chapter aims to discuss about the method used to gather information about Max’s

Restaurant and to be able to explain how the research has been done.

Descriptive Data

Descriptive data describes data and characteristics about the population or phenomenon

being studied. Descriptive research answers the questions who, what, where, when and how.

According to Charles Darwin, Descriptive research attempts to determine, describe, or

identify what is. It uses description, classification, measurement and comparison to describe a

situation. The main characteristic is that the researcher has no control over the variables. He only

reports the situation as it is at the time. The term ex-post facto is usually used for descriptive

research studies in social sciences. The survey method is commonly used in descriptive research.

Analytical research attempts to explain why and how. It usually concerns itself with cause–effect

relationships among variables. The researcher attempts to analyze the situation and make critical

evaluation.

Sources of Data

The data that will be used in this study will come from two kinds of sources: the primary

sources which are the first-hand information that would be derived from interviews, magazines,

and survey and the secondary data derived from the books and records from De La Salle

University library.

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Research Instrument and Method of Data

In order to gather information needed to complete this study, the group will conduct

surveys through the use of questionnaires and actual interviews. Especially our sample size

would be 50 respondents only. In this survey, we will be dealing questions like:

How often does the consumer go and eat at Max’s Restaurant?

Have you ever encounter any problems upon eating at max’s Restaurant?

Are they satisfied with the service and quality of food that they served?

In addition, researchers would also gather data through interviews with the management

of Max’s Restaurant. In this regard the group will analyze some relevant data needed for the

completion of this study.

Chapter IV

Presentation, Interpretation of Analysis and Data

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Nowadays, consumers became selective about

Consumers and their behaviors comprise of many attributes and differentials. These differences

are not just associated with demographics, groups or any one particular item.

Factors Affecting Consumer’s Behavior

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Chapter V

Summary of Findings, Conclusion and Recommendation

Nowadays, more and more people are venturing into businesses, especially with the number of

businesses opening up for franchise. Also, we see a lot more of the young population try their

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luck in business. Gone were the days when new graduates would look for just jobs. Today,

people search for ideas, for capital, for partners with whom they can start a business, with the

hope of making an empire out of their humble beginnings.

However, as in any other undertaking, it is important to conduct a careful study, an

analysis, a plan of how one will go about his business. A unique idea and capital are not enough

to ensure the success of a business. At the end of the day, it all boils down to the plan.