Customer Satisfaction among the Cafes’ in Iligan City
Jamila Mae Abong, Zheena Buenaventura, Maria Alianna Daco, Princess Norjannah Khalid,
Norulashiquin Lucman, Rian Kristia Sausal
La Salle Academy
Iligan City, Philippines
Abstract
The research is entitled “Customer Satisfaction Among the Cafes in Iligan City”. This was
conducted by the Accountancy Business and Management senior high school students. The study
aims to provide information regarding the relationship of 4p’s and age range on customer
satisfaction. This is a quantitative research wherein 100 respondents were required to answer the
standardized questionnaire from a related study. The independent variable was age range and the
dependent variable was the customer satisfaction. The Pearson Correlation Coefficient was used
in solving for the relationship of both variables. The null hypothesis is that there is a relationship
between the variables indicating that customer satisfaction is dependent to age range. According
to the data gathered, only between the early adulthood and place and promotion satisfaction as
well as the midlife and promotion satisfaction has the relationship. Therefore, the satisfaction of
the marketing mix in adolescence is not dependent on the age of customers. The place and
promotion satisfaction is not dependent on the age range: early adulthood. Lastly, the promotion
satisfaction is not dependent on age range: midlife. This study was conducted on October 2019January 2020. For the future researchers, it is recommended to have an equal number of
respondents for each of the age range (adolescence, early adulthood and midlife) to have a more
precise result.
Keywords: Marketing Mix, Customers’ Satisfaction, Age Range
Introduction
Customers are the primary factor for a business to survive and continue to operate. Marketing
Mix are variables in marketing strategy that will help the business maintain their success. In this
research, the researchers focused on the 5 out of at least 20 cafes in Iligan City. This research
would provide new information regarding the aspects of the focused cafes from the view point of
the customers with specific age range which is adolescence, early adulthood and midlife.
Through this, there will be a deeper connection between the cafés and its consumers which will
help the café identify which among the marketing mix will need innovations to reach the
standards and likeness of the customers to provide satisfaction. By maintaining good reputation
through the marketing mix, it can gain more consumers and will be the strength to keep the café
alive.
Alex Allwood stated that it is important how the customer experiences the brand
and how the brand makes the customer feels it. Digital Trends Report in 2018 reveals that
customer experience is the main objective of every business. Customers are the reason
why a business is still operating and there is still inflow of profit. It is important to have a
deeper knowledge from the point of view of the customers about their experience in a
certain company or business.
In this research, the researchers aim to know about the relationship of the customers’
satisfaction with the use of the marketing mix among the cafe in Iligan City. With this, cafe
industries will be aware of the responses of its costumers for them to have possible adjustments
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to give on what is the best thing for their customers and to be satisfied enough. According to
Dineshkumar (2012) he indicates that the success of any businesses or retail store
customers’ satisfaction plays an important role; for that reason, it is important to measure
it and to find the factors that really affect the customer satisfaction. This leads to the
researchers’ to come up with null hypothesis that the different age range have a
significant relationship to the marketing mix of the cafés in Iligan City.
Customers’ Satisfaction. According to Patterson, Johnson & Spreng (1997) and Bennett
& Rundle-Thiele (2004), there is a relationship with nature between the satisfaction and loyalty
that many researchers have been studied and it was confirmed that one mediating variable that
could change or affect the customers’ preferences or the customers’ satisfaction. In Yang and
Peterson’s research in 2004 it stated that by evaluating the customer’s satisfaction, it enables the
businesses to identify how well the business process is working and recognize the areas of
improvements.
Product. Product is a primary aspect of marketing mix and every product varies
according to its characteristics from another product. Products are one of the important elements of a
marketing mix. Dang (2015) emphasizes that the product is the first and one of the key marketing
elements. Author cit. Kotler and Armstrong emphasizes that the product: "is what can be offered
to the market, to get attention, to be the acquisition of used or used, and can satisfy the wants or
needs."
Price. In the study from Kotler in 2008 it indicates there that price affects the
customer’s mind control as it helps to decide to repurchase a product. Based from the study of
Peter & Donnely in 2007, it has been proven that customers usually buy products based on the
price rather than other attributes or features. From the study of Chelliah and Kwon (2011), it was
found stated that price play a significant role in marketing mix composition since the
organization may not make enough profit because of the low-priced offered to the product.
Place. Its concept is to create the right products and make services with right quantities
and good quality (Niel, 1984). Location may affect the victory or failure for a retail enterprise. A
good location is linked with costs, competitors and target market in consequence this acts as a
tool through which products and services are transferred from the manufacturer to customers
(Koschate Homburg, and Hoyer, 2005)
Promotion. According to McGraw-Hill/Irwin, in conceptual terms, it is the component in
an organization’s marketing mix which serves to convince, notify and remind the market and/or
the organization of a product, in the aim of affecting the recipients’ feelings, beliefs or behavior.
A promotion’s objective is to communicate and send a message to the customers about a results
or service that is being presented by a firm or business (Prentice Hall, 1985).
The impact of aging on consumer responses by Yany Gregoire (2003) explained the the
C-A-B framework played an important role in the earliest attempts to build models of consumer
behavior (Engel, Kollat and Blackwell 1968) wherein the cognitive component includes all the
stages where an individual become conscious of a problem, collects information to resolve, and
analyzes the information before buying or consuming a service or a product. The affective
component encompasses all the range of emotions that a consumer could experience in a decision
process related to consuming and the behavioral component contains the physical actions of
buying and consuming a product or a service.
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Conceptual Framework
Figure 1: The dependent variable will be the satisfaction while independent variable will be 4p’s
stands for, price, place, promotion and product and age range.
DEPENDENT
INDEPENDENT
SATISFACTION
Age Range
Statement of the Problem
1.
2.
What is the level of customer satisfaction in terms of:
1.1 Product
1.2 Price
1.3 Place
1.4 Promotion
What is the relationship between:
1.1 Age - Product
1.2 Age - Price
1.3 Age - Place
1.4 Age – Promotion
Hypothesis:
1. Customer satisfaction and age range has a relationship which means customer
satisfaction is dependent to age range.
Significance of the Study
This study is relevant for both the business sector and the consumers since it would determine the
information needed to make improvements on certain parts of the marketing mix to keep
customers satisfied of the business whether it may be about the product, price, promotion and
place.
Scope and Delimitation
This research involves 100 respondents, 20 respondents for each of the five café wherein the age
is needed as part of the questionnaire. The customer satisfaction is measured based on the total
score for each questionnaire from each respondent. The cafés can be located in Iligan City. To
find the relationship of the variables, the Pearson Correlation Coefficient was used.
Methodology
Research Design
The research design used was the quantitative research design. Quantitative methods emphasize
objective measurements and the statistical, mathematical, or numerical analysis of data collected
(USCLibraries,2019). This research design was appropriate for this study since it examines the
relationship of the marketing mix and the age range of the respondents in the cafés.
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Locale of the Study
The study was conducted in the top five most preferred cafés in Iligan City. The top five cafés
was known through a survey from the La Salle Academy students. The research data was
gathered in the cafés namely: Kenko Naicha, Bo’s Café, Infinitea, Tea O’clock and Bon Appitea.
Respondents of the Study
The respondents were the 100 respondents in all of the five cafés wherein 20 respondents in each
cafes. In identifying which should be the appropriate respondent for the research, the respondents
should be inside the said cafés and are customers of the cafés.
Research Instrument
For the research instrument to be reliable, the researchers used a marketing mix questionnaire
from the “The Impact of Marketing Mix on Consumer Satisfaction: A Case Study Deriving
Consensus Rankings from Benchmarking” research study. The questionnaire contains statements
about the marketing mix of the café the respondents were in which were scored through number
levels. And the researcher will get the age of the respondents and their response towards the
marketing mix of the café.
Statistical Tool
In order to find the relationship of the 4p’s and age range on customer satisfaction, the Pearson
Correlation Coefficient was used, where it measure the linear correlation between two variables
X and Y. In this case, the x and y variables are the 4p’s measuring the customer satisfaction and
the age range.
Results and Discussion
The portion will show the results and discussion in order for the researchers to identify if there is
a relationship between 4P’s and Age range to Customers’ Satisfaction.
The critical region used is the t variable is greater than -1.960 but less than 1.960.
Therefore, if the t-value falls under the said region, the null hypothesis will be rejected.
Table 1.Relationship Between 4p’s and Adolescence
r
t
Result
Product
0.10
0.76
No relationship
Adolescence
Price
0.90
0.68
No relationship
Promotion
0.25
1.95
No relationship
Place
0.24
1.87
No relationship
As shown, the marketing mix satisfaction does not depend on age range: adolescence since the
product, price, promotion and place have no relationship with the age range: adolescence.
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Table 2.Relationship Between 4p’s and Early Adulthood
r
t
Result
Product
0.36
2.28
Medium positive
strength of
correlation
Early Adulthood
Price
0.44
2.90
Medium positive
strength of
correlation
Promotion
0.10
0.59
No relationship
Place
-0.24
1.46
No relationship
In table 2, the promotion and place satisfaction does not depend on age range. Only the product
and price have a medium positive strength of correlation since only their t-value did not fall
under the critical region thus indicating that the null hypothesis is accepted.
Table 3.Relationship Between 4p’s and Midlife
r
t
Result
Product
-0.10
-0.76
No relationship
Midlife
Price
0.27
0.40
No relationship
Promotion
-0.90
-2.92
Strong negative
correlation
Place
0.53
0.88
No relationship
In table 3, the product, price and place satisfaction did not depend on the age range: midlife for it
has no relationship. Only the promotion satisfaction has a strong negative correlation with
midlife.
Table 4. The number of respondents regarding the most satisfied marketing mix (adolescence)
Naicha
Infinitea
Bo’s Café
Tea O’Clock
Bon Appitea
Product
7
11
4
7
8
Adolescence
Price
0
0
0
1
0
Place
4
1
6
6
2
Promotion
0
0
0
0
2
The table 4 shows that mostly of the respondents chooses the Product as their basis of their
satisfaction especially in Infinitea since majority chooses Product. There are still respondents in
Tea O’clock and Bon Appitea that chooses Place and Promotion, respectively. It also shows in
the table 4 that in Naicha, Infinitea and Bo’s Cafe, zero respondents choose Price and Promotion.
In Tea O’clock, zero respondents choose Promotion. Therefore, this means that the customers are
not satisfied with the Price, Plce, and Promotion of all cafe and they should innovate and take
effort on Price, Place and Promotion.
Table 5. The number of respondents regarding the most satisfied marketing mix (early
adulthood)
Naicha
Infinitea
Bo’s Café
Tea O’Clock
Bon Appitea
Product
4
6
4
4
3
Early Adulthood
Price
1
0
0
0
0
Place
2
1
5
2
5
Promotion
0
0
0
0
0
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In table 5, it shows that for the early adulthood respondents, they prefer both Product and Place
to be their basis for their satisfaction since for the both component of the marketing mix it has
somehow equal number of respondents who choose for Product and Place. However, the same
with the adolescence, no one choose Price except for some of the respondents of Naicha. Also, it
is evident in the graph that zero respondents chooses Promotion as the basis of their satisfaction.
This means that the customers are not really satisfied in the Price & Promotion of the cafe,
therefore they should innovate & take consider of this component in Marketing Mix for the
customers to be satisfied.
Table 6. The number of respondents regarding the most satisfied marketing mix (Midlife)
Naicha
Infinitea
Bo’s Café
Product
1
1
1
Midlife
Price
0
0
0
Place
0
0
0
Promotion
1
0
0
As shown in table 6, there are only one respondents who chooses Product in all the cafe listed
and one respondents from Naicha who choose Promotion. It shows in the figure that no one
choose Price and Place for Midlife to be the basis of their satisfaction. This means that they are
not really satisfied with the Price and Place of the cafe, therefore this cafe should innovate & take
consider of this component in Marketing Mix for the customers to be satisfied.
Implication
This research would be of great help for the businesses especially for the cafe industry since its
focus is cafe within Iligan City. This will serve as one of their basis in knowing the factor that
could affect the customer’s satisfaction. In business world, research like this will be beneficial
for them because it helps them know what should be improving for their business to be more
successful. Therefore, this research can be very useful every time since business is always
conducting innovation and researches, also there is a business that opens from time to time.
Conclusion
Therefore, the researchers conclude that satisfaction of the marketing mix in adolescence is not
dependent on the age of customers. The place and promotion satisfaction is not dependent on the
age range: early adulthood. Lastly, the promotion satisfaction is not dependent on age range:
midlife. Only the product and price satisfaction is dependent on age range: early adulthood and
only promotion satisfaction is dependent on age range: midlife.
Recommendation
Based on the findings and results of the study the researchers recommend the following for the
future researchers, since the study doesn’t have any relationship, it is best to have a balance or
equal number of respondents for the age range. Lastly, the researchers recommend to explore
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more studies that relates to 4p’s (promotion, place, price and product) in order to continue and
give information to the future researchers about the business or market strategy.
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