BIBLIOGRAPHY TALLAWAN, JINKY L. 2011. Consumers’...
BIBLIOGRAPHY
TALLAWAN, JINKY L. 2011. Consumers’ Choice on Market Outlet for Grocery
Items in Abatan, Buguias, Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: David Joseph L. Bognadon, MSc
ABSTRACT
This study was conducted to determine the grocery items that consumer purchased from
the nine different market outlets for grocery items in Abatan, Buguias, Benguet; to identify the
reasons or factors that influences the consumers in their decision on what particular market outlet
from which to purchase; moreover, the study aimed to determine the things that market outlet
needs to consider in attracting more customers.
The study was conducted from November to December, 2010. A total of 100 respondents
from the different barangay in Buguias and nearby places. Respondents are those that usually
buy household goods for consumptions. They were taken randomly.
The study reveals that respondents were in their middle age. Most of them are farmers and
housewives taking good care of the household chores. Majority of the respondents are female
and are married. A great majority of them are residing in barangays close to Abatan, Buguias,
Benguet.
Based on the results of the study, grocery items are the main products being purchased by
the respondents. They buy these items from the different market outlets allotted for grocery
items.
Among the mentioned market outlets in the study, most respondents prefer to purchase
from Almond’s. Followed by Jumapa’s because of its availability of products, lower prices, and
short walking distance. Another is the Gavino Supermart with 2 main reasons which is the wide
selection of goods and the presence of parking space.
From the given factors in the study, the quality, availability of products, having lower
price, it is a short walking distance, having wide selection of goods, and have enough workers
are the mainly reasons that influence consumer’s decision on what particular market outlet from
which to purchase.
From the respondent’s suggestions, market outlets should always look into the needs and
wants of their customers when it comes to the products they offer; the characteristics of the
shopping area; the location; their facilities (should be upgraded) and; their promotions (what to
offer in order to gain customers).
Based from the findings, Consumers have their own choices of market outlets for specific
type of products to purchase. Almond’s, Jumapa’s, and Gavino Supermart are the three main
most preferred market outlets by consumers when purchasing. Looking into the products to offer
such as its prices and availability; the shopping area, its cleanliness or sanitation; the location of
the outlet; the facilities, it should be upgraded; the personnel (workers) and; the promotions to
offer are the things that market outlets needs to consider in attracting more customers.
Considering the reasons of consumers on their choice of market outlet is very much
important to know especially for those still planning to have this kind of business since it is the
only way to acquire customer. Existing market outlets should learn to value their customer.
Upgrade the facilities and services as much as possible. Entrepreneurs should consider the needs
and wants of a customer when having a business in order to capture a bigger market share.
2
TABLE OF CONTENTS
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objective of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Delimitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
The Market Outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Consumers’ Behavior
and Decision Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Factors Influencing
Consumers on Outlet Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Gathering Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
RESULTS AND DISCUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Grocery Items Bought from
the Different Market Outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Factors that Influences
Consumers on Market Outlet Selection . . . . . . . . . . . . . . . . . . . . . . .
21
Choice of Market Outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Things that Market Outlet Needs to Consider . . . . . . . . . . . . . . . . . . .
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . .
28
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
A. Letter to the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
B. Survey Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
1
INTRODUCTION
Rationale
“Abatan” is a kakana-ey term which simply means “meeting place”. People called
it Abatan because it is where people from different places meet and it is here where they
buy goods for there daily needs. It started in 1974 where in little stores are the only
available market outlets. But as the years passed by, large market outlets keep existing
which are now operating successfully.
The development of business establishments in Abatan, Buguias, Benguet made it
as a center of business and trade in the locality. Not only for the whole Buguias but also
nearby municipalities like Mankayan, Bakun, Sayangan, and Bauko.
Nowadays, grocery stores are the main supplier or source of food and other
consumable goods needed by households such as detergent soaps, personal care products
and other. Grocery stores are now considered as of the most important when it comes to
household needs. It was established primarily for wholesaling and retailing of goods
needed by households such as food items, and non-food products being consumed.
Market outlets like sari-sari stores, supermarkets, groceries, department stores,
and commercial centers are those that usually found in market places. Market outlet plays
an important role in the economy. This serves as a channel and connecting link between
producers and consumers as well. It occupies an important place in the world of
marketing and thus, with in the economic society as a whole.
The continuing growth and development of market outlets in the locality has allowed
consumers the freedom of choice where to make necessary purchases on grocery items.
Market outlets should consider their consumers as the most important asset. Thus
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their right must be understood and respected. According to Paul Peter and Olson (1999),
the maintenance of costumer loyalty has additional benefits to the business. To develop
effective strategies, market outlets need a thorough understanding of their costumer’s
behavior and needs. Loyalty is a physical and emotional commitment given by costumers
in exchange for their needs being met. Market outlets should therefore view the
relationship with consumers to attain the current level of loyalty.
Consumers nowadays are harder to please. They are demanding and price
conscious and usually compare with other outlets. The power of “word of mouth” is often
spoken of in terms of how satisfied or dissatisfied consumers communicate their
experiences to others. Consumers are totally satisfied - or else are dissatisfied and then
have their problems resolved by marketing managers - can become powerful advocates.
Thus, they will recommend that particular market outlet to their friends (Stone et. al.,
2000).
Statement of the Problem
1. What grocery items do consumers purchased from the market outlets in Abatan,
Buguias, Benguet?
2. What are the reasons or factors that influences the consumers in their decision
on what particular market outlet from which to purchase?
3. What are the things that market outlets needs to consider in attracting more
customers or consumers?
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Objectives of the Study
1. To determine what among the grocery items do consumer purchased from the 9
different market outlets for grocery items in Abatan, buguias, Benguet.
2. To identify the reasons or factors that influences the consumers in purchasing
from a particular market.
3. To identify the things that market outlets needs to consider in attracting more
consumers.
Importance of the Study
The results of the study will provide market information to the different market
outlets and other enterprises as well in the locality which may guide the managers or their
employees, for them to know how to manage their businesses with regards to customer
acquisition. This may also serve as a reference for entrepreneur students planning to
build/put up their own businesses after graduation.
Scope and Delimitation
The study focuses on the consumer’s choice on market outlets for grocery items
in Abatan, Buguias, Benguet. The market outlets referred in the study are the sari-sari
stores, supermarkets, groceries, and commercial centers that are found in the coverage
area. Respondents in the study are the consumers who buy goods for consumption.
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REVIEW OF LITERATURE
The Market Outlet
According to Berman and Evans as cited by Julian (2006), market outlets serve as
a channel of distribution which comprises all the businesses and people involve in the
physical movement and transfer of ownership of goods and services from producers to
consumers. It plays an important role as an intermediary between manufacturers,
wholesalers and other suppliers and the final consumers.
Kotler stated that market outlet exhibit great variety and new forms of goods keep
emerging (Julian, 2006). Customers today can shop for goods and services in a wide
variety of stores. Department store is one of the best known types of market outlet while
new types of store emerge to meet widely different consumer’s preferences for service
levels and specific purchases. Department stores offer several product lines – typically
clothing, home furnishing, and household goods – with each line operated as a separate
department managed by specialist buyers or merchandisers. Convenience stores are small
store located near residential area, open long hours seven days a week, and earned a
limited line or high turn-over convenience products at slightly higher price. Supermarkets
are other popular market outlets which relatively large but has low cost of products, self
service operation and was design to serve total needs for food, laundry and household
maintenance products. According to a November 1999 Progressive Grocer Article,
Grocery industry is now facing challenges and increased competition due to internet
shopping wherein, online shoppers will be able to name the price for their favorite name-
brand grocery items. Market outlets satisfy consumers to undertake one-stop shopping
and customers are able to choose and buy product version and quantity that they desire.
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Complete transactions with their customers which mean trying to fill orders promptly and
accurately. Market outlets are anxious, they always find new marketing strategies to
attract and hold customers. Nowadays, national brands are found in most department
stores, in their own shops and merchandiser’s outlets. Customers have become smarted
shoppers. In the face of increase competition, market outlet once located in the center of
cities, have open branches in suburban areas.
The selection of a specific market outlet, whether before or after brand decision
involves a comparison of the alternative outlets of a consumer’s evaluative criteria, a
given consumer’s target market’s perception of all attributes associated with a market
outlet is generally referred to as the outlet’s image. Thus, market outlets should be
concerned not only with their own image but also with the image of their shopping area.
Consumers’ Behavior and Decision Process
According to Mowen and Minor (2000), consumer behavior is defined as the
study of the buying units and the exchange processes involved in acquiring, consuming,
and disposing of goods, services, experiences and ideas. Consumer is inevitably at one
end of an exchange processes in which resources are transferred between two parties.
Other sources such as feelings, information, and status may also be exchanged between
the parties. The definition states that it is study of buying units because purchases maybe
made by groups as well as by individuals. An important study area for consumer
researchers is organizational buying behavior. Particularly in business – to – business
marketing, the purchase decision may be made by a group of people in a buying center
rather than by an individual. Another from the definition is the exchange process which
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involves a series of steps, beginning with the acquisition phase, moving on to the
consumption phase, and ending with the disposition of the product or service.
In investigating the acquisition phase, researchers analyze the factors that
influence consumer’s product and service choices. Indeed, most of the research in
consumer behavior has focused on the acquisition phase. Disposition refers to what
consumers do with a product once they have finished using it. It addresses consumer
satisfaction levels after purchasing a good or service.
Understanding consumers and the consumption process brings a number of
benefits, among the ability to assist managers in their decision making, provide marketing
researchers with a knowledge base from which to analyze consumers, help legislators and
regulators create laws and regulations concerning the purchase and sale of goods and
services, and assist the average consumer in making better purchase decisions.
Looking into Consumer Buying Process by Ebert and Griffin (2000), buying
process begins when the consumer recognizes a problem or need. May occurs when you
have a chance to change your purchasing habits. Once they have recognized a need,
consumers often seek information. Before making major purchases, however, most
people seek information from personal sources, marketing sources, public sources and
experience. By analyzing the product attributes that to a given product, consumer
consider their choices and decide which product best meets their needs. Ultimately,
consumers must make purchase decision. They may decide to defer a purchase until a
later time or they may decide to buy now. “Buy” decisions are based on rational motives,
emotional motives or both. Rational motives involve the logical evaluation of product
attributes: cost, quality, and usefulness. Emotional motives involve nonobjective factors
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as inputs into their overall satisfaction or dissatisfaction perception.
Factors Influencing Consumers on Outlet Selection
According to Kotler as cited by Julian (2006), the consumers buying behavior is
influenced by cultural, social, personal and psychological factors. Cultural factors exert
the broadest influence on consumer’s behavior. It is the most fundamental determinants
of a person wants and behavior. It includes values, perception, preferences and behavior.
People with different cultural, subculture and social class characteristics have different
product and brand preferences. Culture is a problematic issue for many marketers since it
is inherently nebulous and often difficult to understand (Perner, 2010). Having a business
in a certain place must consider studying their culture. To know if the products or the
business is acceptable or appropriate to that place and to the consumer as well.
Customers are expensive to acquire and not easy to keep (Stone et al., 2000). In
neglecting the acquisition and retention of customers, high marketing costs relative to any
competitors is likely to occur that take more trouble. The marketing information system
must therefore give an accurate and up-to-date picture of acquisition and retention. If the
retention strategy succeeds, the maintenance of costumer loyalty has additional benefits.
Loyal customers not only repurchase, they also advocate products and services to their
friends, pay less attention to competitive brands and often buy product.
Costumers usually seek: convenience and easy access to the right person in the
company, first time; ‘special’, privileged status as a known customer; effective and fast
solutions if and when problems arise; appropriate anticipation of their needs; and, a
professional, friendly two-way dialogue.
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The factors affecting information search by consumers (Paul Peter and Olson,
1999) are market characteristics such as the number of alternatives, price range, store
concentration, information availability. Also product characteristics such as price,
differentiation, positive products. Another is consumer characteristics such as learning
and experience, shopping orientation, social status, age, gender, and household life cycle,
perceived risk. And, situational characteristics like time availability purchase for self,
pleasant surroundings, social surroundings, and physical or mental energy.
According to a recent survey conducted (Nielsen Co., 2008) on how important are
the following factors when deciding where to do grocery shopping; Good value for
money, Better selection of high quality brands and products, The one closest, The most
convenient, and Uses recyclable bags and packaging. Globally, consumers have revealed
that “good value for money” is now the most important factor in determining where they
buy their groceries. Nielsen found an overwhelming 85% of the world’s consumers
ranked “good value for money” the most important consideration when choosing a
grocery store, with the most avid value seekers hailing.
“Good value for money” includes a store’s reputation for being cheaper than their
competitors. In highly competitive and concentrated retailer environment, consumers
don’t react most to promotions and price discounts, instead, brand reputation, quality and
buying habits are more important. They are only inclined to buy promotional items when
they already like and trust the brand.
Successful business people know that the customer must always win (Freemantle,
2001). The art is to stimulate that feeling of winning: of obtaining a great bargain, of
completing a favorable deal, of obtaining immense value for the money, of receiving
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something extra – over and above the expected. The stimulus comes from doing positive
things for customers – from surprising them with unexpected delights and creating for
them experiences that make them happy to be alive.
In stimulating customers, the following are also important application to develop
the relationship: doing new things, giving extra taking a personal interest, learning to
make improvements, reflecting daily on doing things better or differently, and reflecting
strategically which may have substantial impact to customers.
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METHODOLOGY
Locale and Time of the Study
The study was conducted in the municipality of Buguias, Benguet particularly in
Abatan during the period of November - December 2010.
Respondents of the Study
The respondents of the study were individual representatives that usually buy
household goods for consumptions from the different barangay in Buguias and nearby
places. A total of 100 respondents were taken randomly from nearby barangays of
Abatan.
Data Gathering Procedure
The gathering of data was conducted through survey with the aid of a
questionnaire and personal interview. The survey questionnaire contains necessary
questions related to the objective and personal interview for more information needed in
the study.
Data Gathered
The data gathered are the grocery items that consumers usually buy from the nine
different market outlets for grocery items; the reasons of consumers in their choice of
market outlets; the factors that influence consumers for their choices; and, the things that
market outlets needs to consider in attracting more customers or consumers.
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Data Analysis
The data gathered were tabulated, analyzed, discussed and interpreted using
descriptive statistics such as percentages, ranking and frequency counts.
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RESULTS AND DISCUSSION
This chapter presents the discussion, analysis and interpretations of findings from
the data gathered from 100 respondents residing in Buguias, Benguet and nearby places
like Mankayan with regards to the general information on the respondents, the grocery
items that consumer usually purchased from the nine different market outlet for grocery
items; the reasons or factors that influences the consumer in their decision on what
particular market outlet from which to purchased and; the things that market outlets needs
to consider in attracting more customers.
The data were presented in tabular form and analyzed. Implications were drawn
from the presented.
General Information on Respondents
Table 1 presents the general information on the respondents according to age,
gender, civil status, occupation and the residence of the respondents.
Age. The ages of the respondents ranged from 18-72 years old. The largest
percentage of respondents belonged to 29-39 age bracket with 35%; 31 and 23 percent 0f
the respondents belong to 40-50 and 18-28 age brackets respectively. Few respondents
belong to 51-61 which is 7% and only 3% respondents under 62-72 age bracket. The age
mean of respondents is 36.7 which mean that they are at their middle age.
Gender. As shown in the table, most respondents are females representing 82% of
the overall total as compare to males which is only 18%.
Civil status. Table shows that, most of the respondents are married (89%). Only
11% are single.
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Table1. General information on respondents
PARTICULARS FREQUENCY
PERCENTAGE
AGE
18 - 28
23
23
29 - 39
35
35
40 - 50
31
31
51 - 61
7
7
62 - 72
3
3
TOTAL
100
100
Age mean = 36.7
Gender
Female
82
82
Male
18
18
TOTAL
100
100
Civil status
Single
11
11
Married
89
89
TOTAL
100
100
Occupation
Businessman
20
20
Government employee 31
31
Private employee
1
1
Farming
23
23
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Occupation. As to the respondent’s occupation, 31% are engaged in farming; 23%
are housewives; 21% respondents are working as government employees in different
government offices; 20% respondents claimed that they managed their own business; 4%
and 1% of respondents are students and a private employee. This implies that most
respondents are farmers and housewives that worked on household chores.
Barangay residence of the respondents. As shown in the table, most respondents
are from the different barangay of Buguias having 70% while few members of the
respondents are from the municipality of Mankayan having only 30% of the over all total.
This implies that most of the respondents are mainly from Buguias wherein the barangay
where they reside are the ones that close to Abatan.
Table 1. Continued . . .
PARTICULARS FREQUENCY
PERCENTAGE
Occupation
Businessman
20
20
Government employee 31
31
Private employee
1
1
Farming
23
23
Housewife
21
21
Student
4
4
TOTAL
100
100
Barangay
Buguias:
Bangao
48
48
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Table 1. Continued . . .
PARTICULARS FREQUENCY
PERCENTAGE
Baculungan Sur
3
3
Baculungan Norte 4
4
Loo
6
6
Lengaoan
3
3
Abatan
4
4
Calamagan
2
2
70
70
Mankayan:
Guinoaong
4
4
Bulalacao
23
23
Tabio
3
3
30
30
TOTAL
100
100
Grocery Items Bought from the Different Market Outlet
Table 2 presents the percentage of market outlet choice for grocery items from the
nine different market outlets in Abatan, Buguias, Benguet.
As shown in the data, as to bake food products, most of the respondents purchase
it from Almond’s which has 84% of the over all total. Sixteen percent of the respondents
is from Jumapa’s followed by Dupiano’s having 14% of the respondents. Few
respondents claim to purchase it from Gavino Supermart, Junarlyn’s, Yap Building and
Public Market Building.
For beverages, 56% of the respondents claim to purchase it from Almond’s
followed by Gavino Supermart having 42%. There is about 27% of the respondents
Consumers’ Choice on Market Outlet for Grocery Items in
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purchase it from Jumapa’s while few (11%) respondents purchase from either Dupaino’s
or Calatan’s.
As for canned goods, 71% of the respondents purchase it from Almond’s. Twenty
seven percent of the respondents is from Jumapa’s followed by Dupiano’s (22%). There
are few respondents who buy it from Calatan’s and Gavino Supermart.
With regards to cooking oil, 70% of the respondents purchased from Almond’s.
23% is from Jumapa’s, followed by Dupiano’s which is 18% and few from Calatan’s,
Gavino Supermart, Benmas, and Public Market Building.
For dairy products, 64% of the respondents claim to purchase it from Almond’s,
15% from Jumapa’s, 13% from Dupiano’s and 12% from Calatans but a few from
Gavino Supermart, Calatan’s, Benmas, and Public Market Building.
For detergent soap, 68% of the respondents prefer to buy it from Almond’s.
Twenty four percent is from Jumapa’s, 15% of the respondents purchase it from from
Dupiano’s and 12% of the respondents is from Calatan’s. Few respondents (8%) purchase
it from Gavino Supermart.
As for noodles and pasta’s, 66% of the respondents purchase it from Almond’s,
19% of the respondents is from Jumapa’s while 16% is from Dupiano’s. Few (9%)
respondents purchase it from either Calatan’s or Gavino Supermart and Public Market
Building (1%).
There are 50% of the respondents who prefer to buy processed meats from
Almond’s and 17% of the respondents are from Public Market Building. Few of the
respondents who buy it from Dupiano’s, Jumapa’s, Gavino Supermart, Yap Building and
Calatan’s. When it comes to Personal Care Products also, 62% of the respondents prefer
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also to buy it from Almond’s, 18% of the respondents purchase it from Dupiano’s, 15%
of the respondents is from either Jumapa’s or Yap Building. There are few of the
respondents who buy it from Calatan’s, Gavino Supermart and Junarlyn’s.
As for poultry products, 47% of the respondents purchase it from Almond’s, 13%
of the respondents is from Public Market and 11% from Jumapa’s while few of the
respondents is from Calatan’s, Dupiano’s, and Gavino Supermart.
For sandwich spread, 66% of the respondents who purchase it from Almon’s, 24%
of the respondents are from Jumapa’s and 15% from Dupiano’s. Few (10%) respondents
are from Calatan’s and Gavino Supermart (6%).
For sweetener, as usual, Almond’s has the highest percentage which is (73%) of
respondents, 20% of the respondents are from Jumapa’s followed by Dupiano’s (14%).
Few (11%) respondents claim to purchase it from either Calatan’s or Gavino Supermart,
and Public Market (1%).
By looking into the data gathered, almost all of the products given were bought by
the respondents at the Almond’s that’s why from the results, majority preferred it as their
shopping area. As a researcher also, based from the observations and interview, it was
proven that the results gathered are true.
Therefore, results indicate that most of the respondents prefer Almond’s for all
type of grocery items followed by Jumapa’s, Dupiano’s, Gavino Supermart and Calatan’s
for specific type of products.
Factors or Reasons that Influences Consumers
on Market Outlet Selection
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
18
Table 3 presents the significant factors that influence the consumers on market
outlet selection.
Data shows that majority of the respondents had chosen Almond’s because of the
quality, variety, availability and labeled with prices products. It is also preferred for their
lower prices though some are not but not that high as compared to other outlet.
Respondents chooses Almond’s also because of its accessibility, sanitation, wide
selection of goods, satisfied or enough facilities and services, for their advertisements and
discounts as their promo’s.
On the other hand, Jumapa’s is preferred because of its short walking distance, and
their home delivery service. Other sees this in Gavino Supermart as well.
Furthermore, Dupiano’s is also preferred for their Buy 1 take 1 promo. As one
respondents say’s, “more promo, more customer”.
Respondents claim their choices are not based on accessibility and promotions of a
certain market outlet but rather on the quality of the product sold and availability of the
products, lower price, its short walking distance, wide selection of goods and enough
workers with their specific functions.
Same as to what Nielsen Co. (2008) stated that good value for money; better
selection of high quality brands and products and; the closest, the most convenient are the
most important factors when deciding where to do grocery shopping.
Choice for Market Outlet
Consumers’ Choice on Market Outlet for Grocery Items in
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19
Table 4 presents the average result on market outlet selection through the
influence of the different factors that respondents consider in choosing where to
purchase.
For the average, as it was rank according to how it was chosen by the
respondents. Almond’s rank as number one which means, it was the first choice of
respondents when it comes to Market Outlet for grocery items followed by Jumapa’s and
Gavino Supermart as the 2nd and 3rd choice of the respondents. The 4th choice is for
either Dupiano’s or Public Market Building and Calatan’s as the 5th choice.
This only implies that they should also be aware of the factors that a consumer is
considering when choosing a certain market outlet from which to purchase.
Table 4. Choice for Market Outlet
NAME OF MARKET OUTLET
NO. OF
PERCENTAGE RANK
RESPONDENTS
Jumapa’s 65
65
2
Dupiano’s 49
49
4
Almond’s 94
94
1
Calatan’s 44
44
5
Gavino Supermart
59
59
3
Benmas 17
17
7
Junarlyn’s 10
10
8
Yap Building
31
31
6
Public Market Building
49
49
4
Consumers’ Choice on Market Outlet for Grocery Items in
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20
Things that a Market outlet needs to consider
Based from the comments and suggestions of the respondents on the different
market outlets, here are some of the things that a market outlet needs to consider:
Product. Sixty seven percent of the respondents claim that consumers always look
into the prices of products as one of their bases in choosing where to purchase. It should
not be too high when compare to other outlet. Same as on the quality and variety of their
products because not all costumers have the same tastes and wants when it comes to
grocery items.
Seventy two percent of the respondents also claim that, market outlets should
consider their customer’s comfort. Their products should organize according to its variety
or kinds and labeled with specific prices. Finding where the products are (unorganized)
and asking to the counter or to the workers if how much is a wasting time.
This is true to what Ebert and Griffin (2000) stated that decisions of consumers are
based on rational motives which involve the cost, quality and usefulness of the products.
As Paul Peter and Olson (1999) also stated that the factors search by consumers is on the
product characteristics such as the price, differentiation, and having positive products.
Shopping area. With regards to the shopping area, 47% of the respondents claim
that market outlets should consider the space of their products and the space for the
costumers. Presence of comfort room and sanitation are also thing to consider. As Paul
Peter and Olson (1999) stated that an outlet should also consider the situational
characteristics such as time availability for self and pleasant surroundings.
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
21
Location. As to the location of market outlets, 73% of the respondents claim that
an outlet should consider the accessibility and the presence of parking space. Some
purchasers prefer to bring their cars when a large volume of groceries is to be purchased.
Facilities. Eighty one percent of the respondents claim that market outlets should
also be aware on the new technologies that they should have. Computer scanning and
shopping cart are some of the facilities that an outlet needed.
Personnel. Thirty six percent of the respondents claim that market outlets should
have responsive, friendly and enough workers. This is an additional plus points to gain
loyal customers. The presence of security guard is also important especially on the
supermarkets. They are the one that asses customers to avoid unnecessary movements
and always there when a car parks on the parking space until the time they are about to
moved out to avoid accident.
Customers usually seek easy to access personnel, their effective and fast solutions
when problem arise, appropriate anticipation of their needs and a professional, friendly
two-way dialogue (Stone et. al., 2000).
Promotion. As to the promotions being offered, 22% of the respondents claim that
having more promo’s can gain customers.
As Freemantle (2001) stated that stimulating customers is by doing new things,
giving extra taking a personal interest, learning to make improvements, reflecting daily
on doing thing better or differently, and reflecting strategically may have substantial
impact to customers.
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
22
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the grocery items that consumer purchased
from the nine different market outlets for grocery items in Abatan, Buguias, Benguet; to
identify the reasons or factors that influences the consumers in their decision on what
particular market outlet from which to purchase; moreover, the study aimed to determine
the things that market outlet needs to consider in attracting more customers.
The study was conducted from November to December, 2010. A total of 100
respondents from the different barangay in Buguias and nearby places. Respondents are
those that usually buy household goods for consumptions. They were taken randomly.
The study reveals that respondents were in their middle age. Most of them are
farmers and housewives taking good care of the household chores. Majority of the
respondents are female and are married. A great majority of them are residing in
barangays close to Abatan, Buguias, Benguet.
Based on the results of the study, grocery items are the main products being
purchased by the respondents. They buy these items from the different market outlets
allotted for grocery items.
Among the mentioned market outlets in the study, most respondents prefer to
purchase from Almond’s having the reasons that the products are available, there is a
wide selection of goods, there is the presence of facilities like computer scanning-cash
register and shopping cart. Followed by Jumapa’s because of its availability of products,
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
23
lower prices, and short walking distance. Another is the Gavino Supermart with 2 main
reasons which is the wide selection of goods and the presence of parking space.
From the given factors in the study, the quality, availability of products, having
lower price, it is a short walking distance, having wide selection of goods, and have
enough workers are the mainly reasons that influence consumer’s decision on what
particular market outlet from which to purchase.
Lastly, from the respondent’s suggestions, market outlets should always look into
the needs and wants of their customers when it comes to the products they offer; the
characteristics of the shopping area; the location; their facilities (should be upgraded)
and; their promotions (what to offer in order to gain customers).
Conclusions
The following conclusions were drawn based from the findings:
1. Consumers have their own choices of market outlets for specific type of products
to purchase.
2. Almond’s, Jumapa’s, and Gavino Supermart are the three main most preferred
market outlet by consumers when purchasing because goods being offered are quality and
have lower prices. It is also because of its product availability, short walking distance,
wide selection of goods and enough workers.
3. Looking into the products to offer such as its prices and availability; the
shopping area, its cleanliness or sanitation; the location of the outlet; the facilities, it
should be upgraded; the personnel (workers) and; the promotions to offer are the things
that market outlets needs to consider in attracting more customers.
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
24
Recommendations
1. Considering the reasons of consumers on their choice of market outlet is very
much important to know especially for those still planning to have this kind of business
since it is the only way to acquire customer.
2. Existing market outlets should learn to value their customer. Upgrade the
facilities and services as much as possible.
3. Entrepreneurs should consider the needs and wants of a customer when having a
business in order to capture a bigger market share.
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
25
LITERATURE CITED
EBERT, R. J. and R. W. GRIFFIN. 2000. Business LEssentials. USA: Prentice- Hall, Inc.
Pp. 257-263
FREEMANTLE, D. 2001. The Stimulus Factor. Great Britain: Biddles Ltd, Guildford Et
King’s Lynn. Pp.193-206
JULIAN, D. J. 2006. Consumers’ Choice of Market Outlet for Grocery Items in La
Trinidad, Benguet. Undergraduate Thesis. Benguet State University. La Trinadad
Benguet. Pp.7-10
MOWEN, J.G. and M. MINOR. 2000. Consumer Behavior. USA: Prentice- Hall, Inc. Pp.
5-11,415-427
PAUL PETER, J. and J. C. OLSON. 1999. Consumer Behavior. Singapore: McGraw,
Hill Co. Inc. Pp.77-282
PERNER, L. 2010. Consumer Behavior: The Psychology of Marketing. Retrieved August
2010 from http://www. LarsPerner.com
STONE, M., N. WOODCOCK. and L. MACHTYNGER. 2000. Customer Relationship
Marketing. Great Britain: Clays Ltd, St lves plc. P. 33
NIELSEN Co., 2008. Grocery Store Choice and Money. Retrieved July 2010 from
http://nielsen.com/site/documents/Nielsen_StoreChoice_ValueReport_Dec07. pdf
PRORESSIVE GROCER ARTICLE. 1999. Reference for Business. Retrieved August
2010 from http://www.referenceforbusiness.com/industries/Retail-Trade/Grocery-
Stores.html
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
26
APPENDICES
APPENDIX A
Letter to the Respondents
College of Agriculture
Department of Agricultural Economics and Agribusiness management
Benguet State University
Km-6 La Trinidad, Benguet
November 27, 2010
Dear Respondents:
I am a student of Benguet State University presently conducting a study entitled
“CONSUMERS CHOICE ON MARKET OUTLET FOR GROCERY ITEMS IN
ABATAN, BUGUIAS, BENGUET.” In this regard, may I ask your participation for the
success of my study by answering honestly the attached questionnaire. Rest assured that
all the information to be gathered will be kept confidential and it will be very much
appreciated.
Thank you and God bless.
Very truly yours,
JINKY L. TALLAWAN
Student Researcher
Noted by:
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
27
DAVID JOSEPH L. BOGNADON
Adviser
APPENDIX B
Survey Questionnaire
I. General Information
Name: ________________________
Barangay: ______________________________________________________.
Age: ________Gender: _________
Civil status: _____________
Occupation: _______________
1. What are the grocery items you usually buy/purchased? What market outlet you
prefer most to buy these items?
From the given market outlets, choose from the identified grocery items if what
product you usually buy on that particular outlet by checking on the space
provided.
(Just leave on the market outlet that you never enter/ not your preferable outlet)
>>>>>>>>> Next page <<<<<<<<<
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
TALLAWAN, JINKY L. 2011. Consumers’ Choice on Market Outlet for Grocery
Items in Abatan, Buguias, Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: David Joseph L. Bognadon, MSc
ABSTRACT
This study was conducted to determine the grocery items that consumer purchased from
the nine different market outlets for grocery items in Abatan, Buguias, Benguet; to identify the
reasons or factors that influences the consumers in their decision on what particular market outlet
from which to purchase; moreover, the study aimed to determine the things that market outlet
needs to consider in attracting more customers.
The study was conducted from November to December, 2010. A total of 100 respondents
from the different barangay in Buguias and nearby places. Respondents are those that usually
buy household goods for consumptions. They were taken randomly.
The study reveals that respondents were in their middle age. Most of them are farmers and
housewives taking good care of the household chores. Majority of the respondents are female
and are married. A great majority of them are residing in barangays close to Abatan, Buguias,
Benguet.
Based on the results of the study, grocery items are the main products being purchased by
the respondents. They buy these items from the different market outlets allotted for grocery
items.
Among the mentioned market outlets in the study, most respondents prefer to purchase
from Almond’s. Followed by Jumapa’s because of its availability of products, lower prices, and
short walking distance. Another is the Gavino Supermart with 2 main reasons which is the wide
selection of goods and the presence of parking space.
From the given factors in the study, the quality, availability of products, having lower
price, it is a short walking distance, having wide selection of goods, and have enough workers
are the mainly reasons that influence consumer’s decision on what particular market outlet from
which to purchase.
From the respondent’s suggestions, market outlets should always look into the needs and
wants of their customers when it comes to the products they offer; the characteristics of the
shopping area; the location; their facilities (should be upgraded) and; their promotions (what to
offer in order to gain customers).
Based from the findings, Consumers have their own choices of market outlets for specific
type of products to purchase. Almond’s, Jumapa’s, and Gavino Supermart are the three main
most preferred market outlets by consumers when purchasing. Looking into the products to offer
such as its prices and availability; the shopping area, its cleanliness or sanitation; the location of
the outlet; the facilities, it should be upgraded; the personnel (workers) and; the promotions to
offer are the things that market outlets needs to consider in attracting more customers.
Considering the reasons of consumers on their choice of market outlet is very much
important to know especially for those still planning to have this kind of business since it is the
only way to acquire customer. Existing market outlets should learn to value their customer.
Upgrade the facilities and services as much as possible. Entrepreneurs should consider the needs
and wants of a customer when having a business in order to capture a bigger market share.
2
TABLE OF CONTENTS
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objective of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Delimitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
The Market Outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Consumers’ Behavior
and Decision Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Factors Influencing
Consumers on Outlet Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Gathering Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
RESULTS AND DISCUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Grocery Items Bought from
the Different Market Outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Factors that Influences
Consumers on Market Outlet Selection . . . . . . . . . . . . . . . . . . . . . . .
21
Choice of Market Outlet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Things that Market Outlet Needs to Consider . . . . . . . . . . . . . . . . . . .
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . .
28
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
A. Letter to the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
B. Survey Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
1
INTRODUCTION
Rationale
“Abatan” is a kakana-ey term which simply means “meeting place”. People called
it Abatan because it is where people from different places meet and it is here where they
buy goods for there daily needs. It started in 1974 where in little stores are the only
available market outlets. But as the years passed by, large market outlets keep existing
which are now operating successfully.
The development of business establishments in Abatan, Buguias, Benguet made it
as a center of business and trade in the locality. Not only for the whole Buguias but also
nearby municipalities like Mankayan, Bakun, Sayangan, and Bauko.
Nowadays, grocery stores are the main supplier or source of food and other
consumable goods needed by households such as detergent soaps, personal care products
and other. Grocery stores are now considered as of the most important when it comes to
household needs. It was established primarily for wholesaling and retailing of goods
needed by households such as food items, and non-food products being consumed.
Market outlets like sari-sari stores, supermarkets, groceries, department stores,
and commercial centers are those that usually found in market places. Market outlet plays
an important role in the economy. This serves as a channel and connecting link between
producers and consumers as well. It occupies an important place in the world of
marketing and thus, with in the economic society as a whole.
The continuing growth and development of market outlets in the locality has allowed
consumers the freedom of choice where to make necessary purchases on grocery items.
Market outlets should consider their consumers as the most important asset. Thus
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
2
their right must be understood and respected. According to Paul Peter and Olson (1999),
the maintenance of costumer loyalty has additional benefits to the business. To develop
effective strategies, market outlets need a thorough understanding of their costumer’s
behavior and needs. Loyalty is a physical and emotional commitment given by costumers
in exchange for their needs being met. Market outlets should therefore view the
relationship with consumers to attain the current level of loyalty.
Consumers nowadays are harder to please. They are demanding and price
conscious and usually compare with other outlets. The power of “word of mouth” is often
spoken of in terms of how satisfied or dissatisfied consumers communicate their
experiences to others. Consumers are totally satisfied - or else are dissatisfied and then
have their problems resolved by marketing managers - can become powerful advocates.
Thus, they will recommend that particular market outlet to their friends (Stone et. al.,
2000).
Statement of the Problem
1. What grocery items do consumers purchased from the market outlets in Abatan,
Buguias, Benguet?
2. What are the reasons or factors that influences the consumers in their decision
on what particular market outlet from which to purchase?
3. What are the things that market outlets needs to consider in attracting more
customers or consumers?
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
3
Objectives of the Study
1. To determine what among the grocery items do consumer purchased from the 9
different market outlets for grocery items in Abatan, buguias, Benguet.
2. To identify the reasons or factors that influences the consumers in purchasing
from a particular market.
3. To identify the things that market outlets needs to consider in attracting more
consumers.
Importance of the Study
The results of the study will provide market information to the different market
outlets and other enterprises as well in the locality which may guide the managers or their
employees, for them to know how to manage their businesses with regards to customer
acquisition. This may also serve as a reference for entrepreneur students planning to
build/put up their own businesses after graduation.
Scope and Delimitation
The study focuses on the consumer’s choice on market outlets for grocery items
in Abatan, Buguias, Benguet. The market outlets referred in the study are the sari-sari
stores, supermarkets, groceries, and commercial centers that are found in the coverage
area. Respondents in the study are the consumers who buy goods for consumption.
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
4
REVIEW OF LITERATURE
The Market Outlet
According to Berman and Evans as cited by Julian (2006), market outlets serve as
a channel of distribution which comprises all the businesses and people involve in the
physical movement and transfer of ownership of goods and services from producers to
consumers. It plays an important role as an intermediary between manufacturers,
wholesalers and other suppliers and the final consumers.
Kotler stated that market outlet exhibit great variety and new forms of goods keep
emerging (Julian, 2006). Customers today can shop for goods and services in a wide
variety of stores. Department store is one of the best known types of market outlet while
new types of store emerge to meet widely different consumer’s preferences for service
levels and specific purchases. Department stores offer several product lines – typically
clothing, home furnishing, and household goods – with each line operated as a separate
department managed by specialist buyers or merchandisers. Convenience stores are small
store located near residential area, open long hours seven days a week, and earned a
limited line or high turn-over convenience products at slightly higher price. Supermarkets
are other popular market outlets which relatively large but has low cost of products, self
service operation and was design to serve total needs for food, laundry and household
maintenance products. According to a November 1999 Progressive Grocer Article,
Grocery industry is now facing challenges and increased competition due to internet
shopping wherein, online shoppers will be able to name the price for their favorite name-
brand grocery items. Market outlets satisfy consumers to undertake one-stop shopping
and customers are able to choose and buy product version and quantity that they desire.
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
5
Complete transactions with their customers which mean trying to fill orders promptly and
accurately. Market outlets are anxious, they always find new marketing strategies to
attract and hold customers. Nowadays, national brands are found in most department
stores, in their own shops and merchandiser’s outlets. Customers have become smarted
shoppers. In the face of increase competition, market outlet once located in the center of
cities, have open branches in suburban areas.
The selection of a specific market outlet, whether before or after brand decision
involves a comparison of the alternative outlets of a consumer’s evaluative criteria, a
given consumer’s target market’s perception of all attributes associated with a market
outlet is generally referred to as the outlet’s image. Thus, market outlets should be
concerned not only with their own image but also with the image of their shopping area.
Consumers’ Behavior and Decision Process
According to Mowen and Minor (2000), consumer behavior is defined as the
study of the buying units and the exchange processes involved in acquiring, consuming,
and disposing of goods, services, experiences and ideas. Consumer is inevitably at one
end of an exchange processes in which resources are transferred between two parties.
Other sources such as feelings, information, and status may also be exchanged between
the parties. The definition states that it is study of buying units because purchases maybe
made by groups as well as by individuals. An important study area for consumer
researchers is organizational buying behavior. Particularly in business – to – business
marketing, the purchase decision may be made by a group of people in a buying center
rather than by an individual. Another from the definition is the exchange process which
Consumers’ Choice on Market Outlet for Grocery Items in
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6
involves a series of steps, beginning with the acquisition phase, moving on to the
consumption phase, and ending with the disposition of the product or service.
In investigating the acquisition phase, researchers analyze the factors that
influence consumer’s product and service choices. Indeed, most of the research in
consumer behavior has focused on the acquisition phase. Disposition refers to what
consumers do with a product once they have finished using it. It addresses consumer
satisfaction levels after purchasing a good or service.
Understanding consumers and the consumption process brings a number of
benefits, among the ability to assist managers in their decision making, provide marketing
researchers with a knowledge base from which to analyze consumers, help legislators and
regulators create laws and regulations concerning the purchase and sale of goods and
services, and assist the average consumer in making better purchase decisions.
Looking into Consumer Buying Process by Ebert and Griffin (2000), buying
process begins when the consumer recognizes a problem or need. May occurs when you
have a chance to change your purchasing habits. Once they have recognized a need,
consumers often seek information. Before making major purchases, however, most
people seek information from personal sources, marketing sources, public sources and
experience. By analyzing the product attributes that to a given product, consumer
consider their choices and decide which product best meets their needs. Ultimately,
consumers must make purchase decision. They may decide to defer a purchase until a
later time or they may decide to buy now. “Buy” decisions are based on rational motives,
emotional motives or both. Rational motives involve the logical evaluation of product
attributes: cost, quality, and usefulness. Emotional motives involve nonobjective factors
Consumers’ Choice on Market Outlet for Grocery Items in
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as inputs into their overall satisfaction or dissatisfaction perception.
Factors Influencing Consumers on Outlet Selection
According to Kotler as cited by Julian (2006), the consumers buying behavior is
influenced by cultural, social, personal and psychological factors. Cultural factors exert
the broadest influence on consumer’s behavior. It is the most fundamental determinants
of a person wants and behavior. It includes values, perception, preferences and behavior.
People with different cultural, subculture and social class characteristics have different
product and brand preferences. Culture is a problematic issue for many marketers since it
is inherently nebulous and often difficult to understand (Perner, 2010). Having a business
in a certain place must consider studying their culture. To know if the products or the
business is acceptable or appropriate to that place and to the consumer as well.
Customers are expensive to acquire and not easy to keep (Stone et al., 2000). In
neglecting the acquisition and retention of customers, high marketing costs relative to any
competitors is likely to occur that take more trouble. The marketing information system
must therefore give an accurate and up-to-date picture of acquisition and retention. If the
retention strategy succeeds, the maintenance of costumer loyalty has additional benefits.
Loyal customers not only repurchase, they also advocate products and services to their
friends, pay less attention to competitive brands and often buy product.
Costumers usually seek: convenience and easy access to the right person in the
company, first time; ‘special’, privileged status as a known customer; effective and fast
solutions if and when problems arise; appropriate anticipation of their needs; and, a
professional, friendly two-way dialogue.
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The factors affecting information search by consumers (Paul Peter and Olson,
1999) are market characteristics such as the number of alternatives, price range, store
concentration, information availability. Also product characteristics such as price,
differentiation, positive products. Another is consumer characteristics such as learning
and experience, shopping orientation, social status, age, gender, and household life cycle,
perceived risk. And, situational characteristics like time availability purchase for self,
pleasant surroundings, social surroundings, and physical or mental energy.
According to a recent survey conducted (Nielsen Co., 2008) on how important are
the following factors when deciding where to do grocery shopping; Good value for
money, Better selection of high quality brands and products, The one closest, The most
convenient, and Uses recyclable bags and packaging. Globally, consumers have revealed
that “good value for money” is now the most important factor in determining where they
buy their groceries. Nielsen found an overwhelming 85% of the world’s consumers
ranked “good value for money” the most important consideration when choosing a
grocery store, with the most avid value seekers hailing.
“Good value for money” includes a store’s reputation for being cheaper than their
competitors. In highly competitive and concentrated retailer environment, consumers
don’t react most to promotions and price discounts, instead, brand reputation, quality and
buying habits are more important. They are only inclined to buy promotional items when
they already like and trust the brand.
Successful business people know that the customer must always win (Freemantle,
2001). The art is to stimulate that feeling of winning: of obtaining a great bargain, of
completing a favorable deal, of obtaining immense value for the money, of receiving
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something extra – over and above the expected. The stimulus comes from doing positive
things for customers – from surprising them with unexpected delights and creating for
them experiences that make them happy to be alive.
In stimulating customers, the following are also important application to develop
the relationship: doing new things, giving extra taking a personal interest, learning to
make improvements, reflecting daily on doing things better or differently, and reflecting
strategically which may have substantial impact to customers.
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METHODOLOGY
Locale and Time of the Study
The study was conducted in the municipality of Buguias, Benguet particularly in
Abatan during the period of November - December 2010.
Respondents of the Study
The respondents of the study were individual representatives that usually buy
household goods for consumptions from the different barangay in Buguias and nearby
places. A total of 100 respondents were taken randomly from nearby barangays of
Abatan.
Data Gathering Procedure
The gathering of data was conducted through survey with the aid of a
questionnaire and personal interview. The survey questionnaire contains necessary
questions related to the objective and personal interview for more information needed in
the study.
Data Gathered
The data gathered are the grocery items that consumers usually buy from the nine
different market outlets for grocery items; the reasons of consumers in their choice of
market outlets; the factors that influence consumers for their choices; and, the things that
market outlets needs to consider in attracting more customers or consumers.
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Data Analysis
The data gathered were tabulated, analyzed, discussed and interpreted using
descriptive statistics such as percentages, ranking and frequency counts.
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RESULTS AND DISCUSSION
This chapter presents the discussion, analysis and interpretations of findings from
the data gathered from 100 respondents residing in Buguias, Benguet and nearby places
like Mankayan with regards to the general information on the respondents, the grocery
items that consumer usually purchased from the nine different market outlet for grocery
items; the reasons or factors that influences the consumer in their decision on what
particular market outlet from which to purchased and; the things that market outlets needs
to consider in attracting more customers.
The data were presented in tabular form and analyzed. Implications were drawn
from the presented.
General Information on Respondents
Table 1 presents the general information on the respondents according to age,
gender, civil status, occupation and the residence of the respondents.
Age. The ages of the respondents ranged from 18-72 years old. The largest
percentage of respondents belonged to 29-39 age bracket with 35%; 31 and 23 percent 0f
the respondents belong to 40-50 and 18-28 age brackets respectively. Few respondents
belong to 51-61 which is 7% and only 3% respondents under 62-72 age bracket. The age
mean of respondents is 36.7 which mean that they are at their middle age.
Gender. As shown in the table, most respondents are females representing 82% of
the overall total as compare to males which is only 18%.
Civil status. Table shows that, most of the respondents are married (89%). Only
11% are single.
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Table1. General information on respondents
PARTICULARS FREQUENCY
PERCENTAGE
AGE
18 - 28
23
23
29 - 39
35
35
40 - 50
31
31
51 - 61
7
7
62 - 72
3
3
TOTAL
100
100
Age mean = 36.7
Gender
Female
82
82
Male
18
18
TOTAL
100
100
Civil status
Single
11
11
Married
89
89
TOTAL
100
100
Occupation
Businessman
20
20
Government employee 31
31
Private employee
1
1
Farming
23
23
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Occupation. As to the respondent’s occupation, 31% are engaged in farming; 23%
are housewives; 21% respondents are working as government employees in different
government offices; 20% respondents claimed that they managed their own business; 4%
and 1% of respondents are students and a private employee. This implies that most
respondents are farmers and housewives that worked on household chores.
Barangay residence of the respondents. As shown in the table, most respondents
are from the different barangay of Buguias having 70% while few members of the
respondents are from the municipality of Mankayan having only 30% of the over all total.
This implies that most of the respondents are mainly from Buguias wherein the barangay
where they reside are the ones that close to Abatan.
Table 1. Continued . . .
PARTICULARS FREQUENCY
PERCENTAGE
Occupation
Businessman
20
20
Government employee 31
31
Private employee
1
1
Farming
23
23
Housewife
21
21
Student
4
4
TOTAL
100
100
Barangay
Buguias:
Bangao
48
48
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Table 1. Continued . . .
PARTICULARS FREQUENCY
PERCENTAGE
Baculungan Sur
3
3
Baculungan Norte 4
4
Loo
6
6
Lengaoan
3
3
Abatan
4
4
Calamagan
2
2
70
70
Mankayan:
Guinoaong
4
4
Bulalacao
23
23
Tabio
3
3
30
30
TOTAL
100
100
Grocery Items Bought from the Different Market Outlet
Table 2 presents the percentage of market outlet choice for grocery items from the
nine different market outlets in Abatan, Buguias, Benguet.
As shown in the data, as to bake food products, most of the respondents purchase
it from Almond’s which has 84% of the over all total. Sixteen percent of the respondents
is from Jumapa’s followed by Dupiano’s having 14% of the respondents. Few
respondents claim to purchase it from Gavino Supermart, Junarlyn’s, Yap Building and
Public Market Building.
For beverages, 56% of the respondents claim to purchase it from Almond’s
followed by Gavino Supermart having 42%. There is about 27% of the respondents
Consumers’ Choice on Market Outlet for Grocery Items in
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purchase it from Jumapa’s while few (11%) respondents purchase from either Dupaino’s
or Calatan’s.
As for canned goods, 71% of the respondents purchase it from Almond’s. Twenty
seven percent of the respondents is from Jumapa’s followed by Dupiano’s (22%). There
are few respondents who buy it from Calatan’s and Gavino Supermart.
With regards to cooking oil, 70% of the respondents purchased from Almond’s.
23% is from Jumapa’s, followed by Dupiano’s which is 18% and few from Calatan’s,
Gavino Supermart, Benmas, and Public Market Building.
For dairy products, 64% of the respondents claim to purchase it from Almond’s,
15% from Jumapa’s, 13% from Dupiano’s and 12% from Calatans but a few from
Gavino Supermart, Calatan’s, Benmas, and Public Market Building.
For detergent soap, 68% of the respondents prefer to buy it from Almond’s.
Twenty four percent is from Jumapa’s, 15% of the respondents purchase it from from
Dupiano’s and 12% of the respondents is from Calatan’s. Few respondents (8%) purchase
it from Gavino Supermart.
As for noodles and pasta’s, 66% of the respondents purchase it from Almond’s,
19% of the respondents is from Jumapa’s while 16% is from Dupiano’s. Few (9%)
respondents purchase it from either Calatan’s or Gavino Supermart and Public Market
Building (1%).
There are 50% of the respondents who prefer to buy processed meats from
Almond’s and 17% of the respondents are from Public Market Building. Few of the
respondents who buy it from Dupiano’s, Jumapa’s, Gavino Supermart, Yap Building and
Calatan’s. When it comes to Personal Care Products also, 62% of the respondents prefer
Consumers’ Choice on Market Outlet for Grocery Items in
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also to buy it from Almond’s, 18% of the respondents purchase it from Dupiano’s, 15%
of the respondents is from either Jumapa’s or Yap Building. There are few of the
respondents who buy it from Calatan’s, Gavino Supermart and Junarlyn’s.
As for poultry products, 47% of the respondents purchase it from Almond’s, 13%
of the respondents is from Public Market and 11% from Jumapa’s while few of the
respondents is from Calatan’s, Dupiano’s, and Gavino Supermart.
For sandwich spread, 66% of the respondents who purchase it from Almon’s, 24%
of the respondents are from Jumapa’s and 15% from Dupiano’s. Few (10%) respondents
are from Calatan’s and Gavino Supermart (6%).
For sweetener, as usual, Almond’s has the highest percentage which is (73%) of
respondents, 20% of the respondents are from Jumapa’s followed by Dupiano’s (14%).
Few (11%) respondents claim to purchase it from either Calatan’s or Gavino Supermart,
and Public Market (1%).
By looking into the data gathered, almost all of the products given were bought by
the respondents at the Almond’s that’s why from the results, majority preferred it as their
shopping area. As a researcher also, based from the observations and interview, it was
proven that the results gathered are true.
Therefore, results indicate that most of the respondents prefer Almond’s for all
type of grocery items followed by Jumapa’s, Dupiano’s, Gavino Supermart and Calatan’s
for specific type of products.
Factors or Reasons that Influences Consumers
on Market Outlet Selection
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Table 3 presents the significant factors that influence the consumers on market
outlet selection.
Data shows that majority of the respondents had chosen Almond’s because of the
quality, variety, availability and labeled with prices products. It is also preferred for their
lower prices though some are not but not that high as compared to other outlet.
Respondents chooses Almond’s also because of its accessibility, sanitation, wide
selection of goods, satisfied or enough facilities and services, for their advertisements and
discounts as their promo’s.
On the other hand, Jumapa’s is preferred because of its short walking distance, and
their home delivery service. Other sees this in Gavino Supermart as well.
Furthermore, Dupiano’s is also preferred for their Buy 1 take 1 promo. As one
respondents say’s, “more promo, more customer”.
Respondents claim their choices are not based on accessibility and promotions of a
certain market outlet but rather on the quality of the product sold and availability of the
products, lower price, its short walking distance, wide selection of goods and enough
workers with their specific functions.
Same as to what Nielsen Co. (2008) stated that good value for money; better
selection of high quality brands and products and; the closest, the most convenient are the
most important factors when deciding where to do grocery shopping.
Choice for Market Outlet
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Table 4 presents the average result on market outlet selection through the
influence of the different factors that respondents consider in choosing where to
purchase.
For the average, as it was rank according to how it was chosen by the
respondents. Almond’s rank as number one which means, it was the first choice of
respondents when it comes to Market Outlet for grocery items followed by Jumapa’s and
Gavino Supermart as the 2nd and 3rd choice of the respondents. The 4th choice is for
either Dupiano’s or Public Market Building and Calatan’s as the 5th choice.
This only implies that they should also be aware of the factors that a consumer is
considering when choosing a certain market outlet from which to purchase.
Table 4. Choice for Market Outlet
NAME OF MARKET OUTLET
NO. OF
PERCENTAGE RANK
RESPONDENTS
Jumapa’s 65
65
2
Dupiano’s 49
49
4
Almond’s 94
94
1
Calatan’s 44
44
5
Gavino Supermart
59
59
3
Benmas 17
17
7
Junarlyn’s 10
10
8
Yap Building
31
31
6
Public Market Building
49
49
4
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Things that a Market outlet needs to consider
Based from the comments and suggestions of the respondents on the different
market outlets, here are some of the things that a market outlet needs to consider:
Product. Sixty seven percent of the respondents claim that consumers always look
into the prices of products as one of their bases in choosing where to purchase. It should
not be too high when compare to other outlet. Same as on the quality and variety of their
products because not all costumers have the same tastes and wants when it comes to
grocery items.
Seventy two percent of the respondents also claim that, market outlets should
consider their customer’s comfort. Their products should organize according to its variety
or kinds and labeled with specific prices. Finding where the products are (unorganized)
and asking to the counter or to the workers if how much is a wasting time.
This is true to what Ebert and Griffin (2000) stated that decisions of consumers are
based on rational motives which involve the cost, quality and usefulness of the products.
As Paul Peter and Olson (1999) also stated that the factors search by consumers is on the
product characteristics such as the price, differentiation, and having positive products.
Shopping area. With regards to the shopping area, 47% of the respondents claim
that market outlets should consider the space of their products and the space for the
costumers. Presence of comfort room and sanitation are also thing to consider. As Paul
Peter and Olson (1999) stated that an outlet should also consider the situational
characteristics such as time availability for self and pleasant surroundings.
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Location. As to the location of market outlets, 73% of the respondents claim that
an outlet should consider the accessibility and the presence of parking space. Some
purchasers prefer to bring their cars when a large volume of groceries is to be purchased.
Facilities. Eighty one percent of the respondents claim that market outlets should
also be aware on the new technologies that they should have. Computer scanning and
shopping cart are some of the facilities that an outlet needed.
Personnel. Thirty six percent of the respondents claim that market outlets should
have responsive, friendly and enough workers. This is an additional plus points to gain
loyal customers. The presence of security guard is also important especially on the
supermarkets. They are the one that asses customers to avoid unnecessary movements
and always there when a car parks on the parking space until the time they are about to
moved out to avoid accident.
Customers usually seek easy to access personnel, their effective and fast solutions
when problem arise, appropriate anticipation of their needs and a professional, friendly
two-way dialogue (Stone et. al., 2000).
Promotion. As to the promotions being offered, 22% of the respondents claim that
having more promo’s can gain customers.
As Freemantle (2001) stated that stimulating customers is by doing new things,
giving extra taking a personal interest, learning to make improvements, reflecting daily
on doing thing better or differently, and reflecting strategically may have substantial
impact to customers.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the grocery items that consumer purchased
from the nine different market outlets for grocery items in Abatan, Buguias, Benguet; to
identify the reasons or factors that influences the consumers in their decision on what
particular market outlet from which to purchase; moreover, the study aimed to determine
the things that market outlet needs to consider in attracting more customers.
The study was conducted from November to December, 2010. A total of 100
respondents from the different barangay in Buguias and nearby places. Respondents are
those that usually buy household goods for consumptions. They were taken randomly.
The study reveals that respondents were in their middle age. Most of them are
farmers and housewives taking good care of the household chores. Majority of the
respondents are female and are married. A great majority of them are residing in
barangays close to Abatan, Buguias, Benguet.
Based on the results of the study, grocery items are the main products being
purchased by the respondents. They buy these items from the different market outlets
allotted for grocery items.
Among the mentioned market outlets in the study, most respondents prefer to
purchase from Almond’s having the reasons that the products are available, there is a
wide selection of goods, there is the presence of facilities like computer scanning-cash
register and shopping cart. Followed by Jumapa’s because of its availability of products,
Consumers’ Choice on Market Outlet for Grocery Items in
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lower prices, and short walking distance. Another is the Gavino Supermart with 2 main
reasons which is the wide selection of goods and the presence of parking space.
From the given factors in the study, the quality, availability of products, having
lower price, it is a short walking distance, having wide selection of goods, and have
enough workers are the mainly reasons that influence consumer’s decision on what
particular market outlet from which to purchase.
Lastly, from the respondent’s suggestions, market outlets should always look into
the needs and wants of their customers when it comes to the products they offer; the
characteristics of the shopping area; the location; their facilities (should be upgraded)
and; their promotions (what to offer in order to gain customers).
Conclusions
The following conclusions were drawn based from the findings:
1. Consumers have their own choices of market outlets for specific type of products
to purchase.
2. Almond’s, Jumapa’s, and Gavino Supermart are the three main most preferred
market outlet by consumers when purchasing because goods being offered are quality and
have lower prices. It is also because of its product availability, short walking distance,
wide selection of goods and enough workers.
3. Looking into the products to offer such as its prices and availability; the
shopping area, its cleanliness or sanitation; the location of the outlet; the facilities, it
should be upgraded; the personnel (workers) and; the promotions to offer are the things
that market outlets needs to consider in attracting more customers.
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Recommendations
1. Considering the reasons of consumers on their choice of market outlet is very
much important to know especially for those still planning to have this kind of business
since it is the only way to acquire customer.
2. Existing market outlets should learn to value their customer. Upgrade the
facilities and services as much as possible.
3. Entrepreneurs should consider the needs and wants of a customer when having a
business in order to capture a bigger market share.
Consumers’ Choice on Market Outlet for Grocery Items in
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LITERATURE CITED
EBERT, R. J. and R. W. GRIFFIN. 2000. Business LEssentials. USA: Prentice- Hall, Inc.
Pp. 257-263
FREEMANTLE, D. 2001. The Stimulus Factor. Great Britain: Biddles Ltd, Guildford Et
King’s Lynn. Pp.193-206
JULIAN, D. J. 2006. Consumers’ Choice of Market Outlet for Grocery Items in La
Trinidad, Benguet. Undergraduate Thesis. Benguet State University. La Trinadad
Benguet. Pp.7-10
MOWEN, J.G. and M. MINOR. 2000. Consumer Behavior. USA: Prentice- Hall, Inc. Pp.
5-11,415-427
PAUL PETER, J. and J. C. OLSON. 1999. Consumer Behavior. Singapore: McGraw,
Hill Co. Inc. Pp.77-282
PERNER, L. 2010. Consumer Behavior: The Psychology of Marketing. Retrieved August
2010 from http://www. LarsPerner.com
STONE, M., N. WOODCOCK. and L. MACHTYNGER. 2000. Customer Relationship
Marketing. Great Britain: Clays Ltd, St lves plc. P. 33
NIELSEN Co., 2008. Grocery Store Choice and Money. Retrieved July 2010 from
http://nielsen.com/site/documents/Nielsen_StoreChoice_ValueReport_Dec07. pdf
PRORESSIVE GROCER ARTICLE. 1999. Reference for Business. Retrieved August
2010 from http://www.referenceforbusiness.com/industries/Retail-Trade/Grocery-
Stores.html
Consumers’ Choice on Market Outlet for Grocery Items in
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APPENDICES
APPENDIX A
Letter to the Respondents
College of Agriculture
Department of Agricultural Economics and Agribusiness management
Benguet State University
Km-6 La Trinidad, Benguet
November 27, 2010
Dear Respondents:
I am a student of Benguet State University presently conducting a study entitled
“CONSUMERS CHOICE ON MARKET OUTLET FOR GROCERY ITEMS IN
ABATAN, BUGUIAS, BENGUET.” In this regard, may I ask your participation for the
success of my study by answering honestly the attached questionnaire. Rest assured that
all the information to be gathered will be kept confidential and it will be very much
appreciated.
Thank you and God bless.
Very truly yours,
JINKY L. TALLAWAN
Student Researcher
Noted by:
Consumers’ Choice on Market Outlet for Grocery Items in
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27
DAVID JOSEPH L. BOGNADON
Adviser
APPENDIX B
Survey Questionnaire
I. General Information
Name: ________________________
Barangay: ______________________________________________________.
Age: ________Gender: _________
Civil status: _____________
Occupation: _______________
1. What are the grocery items you usually buy/purchased? What market outlet you
prefer most to buy these items?
From the given market outlets, choose from the identified grocery items if what
product you usually buy on that particular outlet by checking on the space
provided.
(Just leave on the market outlet that you never enter/ not your preferable outlet)
>>>>>>>>> Next page <<<<<<<<<
Consumers’ Choice on Market Outlet for Grocery Items in
Abatan, Buguias, Benguet / Jinky L. Tallawan 2011
Document Outline
- Consumers� Choice on Market Outlet for GroceryItems in Abatan, Buguias, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDICES