POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 2

money, the work odd hours and they only have short breaks. BPOs don’t need to be anywhere

in particular,” he said.

These had been proved by the key players that expands its operations outside of Metro

Manila like 7-Eleven, Ministop, Family Mart, Lawson and Alfamart. 7-Eleven, under the

Philippine Seven Corp. (PSC) with 1,282 outlets as of 2015, expanded its store not only in

Metro Manila but also in the provinces. From 41.74% in 2010, the opening of stores from

outside Metro Manila has increased to 54.6%. After 7-Eleven, the Ministop, operated by

Robinsons Retail Holdings, is the next biggest player in the country by having 450 stores as

of 2015. The Robinsons Retain Holdings plans to expand 70-100 outlets annually. Ayala Land

and SSI, the operator of Family Mart Convenience Store, expanded 100 outlets as of 2015,

and plans to expand up to 400 stores by the end of 2018. Another competitor in the

convenience store industry is Puregold and Lawson Inc. of Japan. “Based on initial plans, the

target is to have 500 Lawson convenience stores operating in the country by 2020,” stated in

its website. Alfamart, according to Sumber Triyaya, he planned to add 150 more outlets to its

present 400 outlets. He said that the current outlets were in Metro Manila, but the following

significant positive market response based on same-store sales growth, the brand was set to

enter regions outside Metro Manila.

These expansions of convenience stores in rural areas resulted in changes that were

never seen before. Nielsen’s Shopper Insights Leader Ann Navalta said that premiumization

and urbanization were significantly influencing the way consumers were purchasing products,

with growth going beyond megacities to second-tier cities. “Time is becoming a precious

commodity and to cope, consumers are looking and willing to spend for products and services

which provide convenience”, she added. As time became essential in this fast-paced society,

convenience became a key factor in a business but convenience was not the only

consideration for Filipinos.

Nielsen Shopper Reports 2015 stated that there were several attributes that is

important to the customers. These attributes correspond with three key factors – accessibility,

convenience, and satisfaction.

The accessibility has three attributes – location, safety, availability. Location will

determine the site's visibility, access, amount of traffic and competition. Being visible to nearby

residential areas will attract customers due to easy access with less time consumed.

Availability of products and services is important because buying products and/or services is

the main purpose of the customers when going to the convenience store. If there are no

available products that the customers wanted to buy, they will look for another store. Lastly,

the safety of the customers and store must also be considered when establishing convenience

store. If the route to the store and its ambiance does possess safety risks, such as crime,

customers may avert going to the convenience store even it is the only available store at a

given time. These attributes form the key factor of accessibility.

Convenience is divided into five attributes - layout, time, service, variety and

affordability. Convenience stores with optimized layout and good customer service decreases

customers’ time and effort in looking for the product needed. In addition, having a wide variety

of products with affordable price may eliminate customers’ option to look for another

convenience store. Overall, convenience aims to lessen the difficulty, time, and effort of a

customer when buying products and/or services in a convenience store.

Satisfaction refers to the overall fulfillment of customers when getting benefits in a

product and/or service they acquire. It also pertains in satisfying the basic needs and wants.

It is one of the factors that make customers patronize convenience stores.

In conclusion, these key factors – accessibility, convenience, and satisfaction – will

determine if the residents of barangays in Rodriguez Rizal benefitted from convenience stores
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in their area. These are used in identifying the benefits brought by products and services of

convenience stores.

Theoretical Framework

This particular study is based on the theories Relationship and Hierarchy of Needs

Relationship Marketing — according to Morgan and Hunt (1994), is establishing,

developing, and maintaining successful relational exchanges, constitutes a major shift in

marketing theory and practice. After conceptualizing relationship marketing and its ten forms,

the authors theorize that successful relationship marketing requires relationship commitment

and trust. Relationship Marketing needs to have a high level of trust, a long-term relationship

orientation, intensive information exchange, and a high level of mutual cooperation.

A prime aim of relationship marketing can be said to that of locking in high-value

customers through identifying customers, serving their needs sensibly, using customer

information tactically and overcoming customer dissatisfaction. In relationship marketing,

managing customer expectations and their experience in dealing with a company focuses as

much on the emotional experience as on rational customer satisfaction and encourages

feedback of information.

One of the aims of relationship marketing is to create customer satisfaction. Cayabat

(2016) argue that the concept of customer satisfaction has gained importance in the last

decade. It is argued that customer satisfaction leads to customer loyalty and loyalty, in turn,

leads to more profitability, increase market share and growth for the business. Customer

satisfaction increases sales of the company, moreover satisfied customers are fewer prices

sensitive and they are willing to pay a higher price as compared to the competitors. In

addition, a company’s future human capital performance is also affected by customer

satisfaction.

Theory of Human Motivation - by Abraham Maslow (1943) identified five ascending

levels of goal attainment. The resulting hierarchy he then published went as follows:

Physiological Needs; Safety Needs; Love and Belonging Needs; Esteem Needs; and lastly,

Self- Actualization Needs. Maslow argued that these levels explained humans’ needs and

motivators; once our base physiological needs — like air, food, shelter, and sleep — are

fulfilled, we move on to the next level in the pyramid chart until we eventually reach Self-

Actualization.

Customers can be linked on the 2 layers of the hierarchy, in the physiological and

safety.

Physiological needs are the physical requirements for human survival, such as food,

water, clothing, shelter, etc. If these requirements are not met, the human body cannot

function properly and will ultimately fail. Physiological needs are thought to be the most

important; they should be met first. This is the first and basic need in the hierarchy of needs.

Without them, the other needs cannot follow up. Needs are the basic reason or the minimum

requirements consumers look in a product or service. It must be addressed first or else

satisfaction of motivation wants becomes irrelevant.

Once a person's physiological needs are relatively satisfied, their safety needs take

precedence and dominate behavior. People have a basic need for security, such as the need

to feel safe and free from harm. In the absence of economic safety – due to economic crisis

and lack of work opportunities – these safety needs manifest themselves in ways such as a

preference for job security, grievance procedures for protecting the individual from unilateral

authority, savings accounts, insurance policies, disability accommodations, etc. Safety and

security needs are about keeping us safe from harm. These include shelter job security,
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health, and safe environments. If a person does not feel safe in an environment, they will

seek to find safety before they attempt to meet any higher level of survival, but the need for

safety is not as important as basic physiological needs.

Conceptual Framework

Figure 1

Conceptual Framework

This framework illustrates the processes that this paper went through. The input-

process-output flow was used by the proponent to present the conceptual research model.

The input comprises the profile of respondent-customers and residence their opinions

toward the establishment of convenience stores in their barangays. The profile of the

respondent-customer and residence was determined in terms of age, sex, frequency of going,
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intention, commonly bought items, and amount spent. While the benefits of establishment of

convenience stores in barangays was assessed as to the three aspects, namely, accessibility,

convenience, and satisfaction.

The data gathered through the questionnaire were analyzed and interpreted. The study

is expected to determine the profile of respondents, assess the benefits of convenience stores

to Rodriguez, Rizal, and determine the benefits shown.

The continuous flow of the arrow from the input to the process, and from the process

to the output boxes represents the relation of the variables from one another. The output of

the study is dependent on the process taken, while the course of action has been developed

based on the input of the study.

Statement of the Problem

The researchers aimed to determine the benefits of convenience stores to Rodriguez,

Rizal. Additionally, it sought to answer the following questions:

1. What is the profile of the respondent in terms of the following variables?

1.1 Age

1.2 Sex

1.3 Highest Educational Attainment

1.4 Monthly Income/Allowance

1.5 Recurrence of going

1.6 Purpose when going to the convenience store

1.7 Commonly bought items

1.8 Amount Spent

2. How do the respondents assess the benefits of convenience stores to Rodriguez, Rizal

in terms of the following aspects?

2.1 Accessibility

2.2 Convenience

2.3 Satisfaction

3. Is there a significant difference on the respondents’ assessment on the benefits of

convenience stores to Rodriguez, Rizal when respondents are grouped according to their

profile?

Hypothesis

There is no significant difference on the respondents’ assessment on the benefits of

convenience stores to Rodriguez Rizal in terms of accessibility, convenience, and satisfaction

when respondents are grouped according to their profile.

Scope and Limitation

The study is conducted in eleven barangays, namely Balite, Burgos, Geronimo,

Macabud, Manggahan, Mascap, Puray, Rosario, San Isidro, San Jose, San Rafael, in

Rodriguez, Rizal from 2nd week of June to 2nd week of October. The 400 respondents are

residents of Rodriguez, Rizal living near any of the convenience stores mentioned (7 –

eleven, MiniStop, AlfaMart, Lawson, Family Mart).

Traditional convenience store or “Sari-sari” store is excluded in this study’s definition of

convenience store. The researchers specified selected convenience stores to be included in

the study therefore do not guarantee the same effect for other stores not mentioned.
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The customers have their own personal preferences thus the possibility of some

questions being not applicable to the some respondents.

The population used in the formula is based on the PSA 2015 statistical records so the

computed sample size may not be an exact representation of the actual population. PSA only

release updated statistical records every 5 years. The next one will be in 2020.

Limited access for resources and references. The researchers’ output was based only

on the available materials gathered during the research. The materials gathered were only

acquired from libraries in Metro Manila. These resources and references does not objectively

define or state the researchers’ output. It will only be a guide in obtaining the desired output

of the study.

The survey period was facilitated during the month of August only. This month was the

time given by our adviser in conducting the survey.

Timing of the survey. The mood or feeling of the respondents during the survey may

have significant effect in answering the questionnaire and may be different from similar or

future results of the same study.

Significance of the Study

This study will contribute to the following sectors:

Government. This study will give them even the slighted idea on the effects of the

expansion of convenience stores not only in Rodriguez Rizal, but also to other rural areas.
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Province of Rodriguez Rizal. This study will show them the facts that the retail industry,

specifically, convenience stores are expanding. It will help them to provide or to assist

incoming retail businesses such as convenience stores.

Residence of Rodriguez Rizal. It will be an important research to them to learn about

the effect of expansions of convenience stores in their area. They can use this research to

determine the level of accessibility, convenience, and satisfaction of convenience stores in

their area.

Consumers. The outcome of this study will give them basis or standards on how to

evaluate convenience stores in terms of its accessibility, convenience, and satisfaction.

Entrepreneur. This research will give them information to assess the factors needed in

establishing business in Rodriguez Rizal.

Investors. The outcome of this study will give them information in helping to decide

whether to invest more in retail industry for the coming years.

Managers. This research will give them information that will help them in decision making

in aspects of convenience, accessibility, and satisfaction. Mainly, this study focus on

convenience stores, but it can be also applied to other retail businesses.

Franchisee / Franchisor. This study will give them the data to assess if a rural area,

such as Rodriguez Rizal, will be suitable in establishing convenience stores.

Educators. It will be an important research that can help them create better teaching

strategies which can improve the performance of their students. This will furnish them

sufficient information about aspects of a business that will make it successful.

To the Future Researchers. This may be used by future researchers as a reference

material and guide in the conduct of a similar study.

Accounting Profession. This research will contribute to Production and Operation

Management in terms of qualitative decision-making and non-financial aspects.

Definition of Terms

Accessibility. Accessibility of convenience stores refers to its nearness from the

community and being available to the customers anytime of the day; which a convenience

store can be reached from other locations, provided that the store is safe from harm, and

provides the most basic needs;. It also includes the safety felt by the customers when going

to and while inside the store.

Benefits. Desirable attribute of a good or service, which a customer perceives he or

she will get from purchasing.

Business motivation. Comes from the enjoyment of the work itself and/or from the

desire to achieve certain goals.

Channels of distribution. These are the different paths that goods pass through in

moving from the producer to the consumer.

Consumer. The person who uses the product or services

Consumerism. The belief that the purchase of material goods and professional

services will result in psychological happiness, personal fulfillment and social regard.

Continuity marketing. Is a method of providing goods or services to consumers that

relies on direct marketing and continues into perpetuity.

Convenience. The state of being able to proceed with something with little effort, time

or difficulty in obtaining goods or services, given with a wide variety of products along with

its affordable price, good crew accommodations, and optimized spacing inside the store to

help the customers to shop easily and save time.

Convenience store. Retail firm that located in residential neighborhoods because it

appeals to consumers who want to shop when other stores are closed; Small retail business

that stocks a range of everyday items such as groceries, snack foods, confectionery, soft

drinks, tobacco products, over-the-counter drugs, toiletries, newspapers, and magazines.

Customer Expectations. The total perceived benefits a customer expects from a

company's product or service Customer Service

Customer. The person who buys or rents products or services

Demand. Is the quantity of a good or service that consumers and businesses are willing

and able to buy at a given price in a given time period.

Descriptive research. Involves the description, recording, analysis, and interpretation

of the present nature, composition or processes of phenomena

Effect. Increase in degree of residents’ accessibility, convenience, and satisfaction to

the products and/or services caused by the expansion of convenience stores.

Hedonic needs. The needs for luxury purposes, which are desirable objects that allow

the consumer to feel pleasure, fun, and enjoyment from buying the product.

Needs. The basic reason or the minimum requirements consumers look in a product

or service.
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Physiological needs. The physical requirements for human survival, such as food,

water, clothing, shelter, safety etc.

Place utility. Making a product available in a location convenient for customers.

Price. An integral part of the retail marketing mix. It is the factor, which is the source of

revenue for the retailer. It also communicates the image of the retail store to the customers.

Relationship Marketing. Establishing, developing, and maintaining successful

relational exchanges with a customer.

Retail marketing. Include all function or activities involved in selling (or renting) goods

and services to end-users, including households, individual s, and others who are purchasing

goods and services for final consumptions

Retailer. An entity that sells goods such as clothing, groceries, or cars directly to

consumers through various distribution channels with the goal of earning a profit

Safety. A concept that is concerned with achieving a positive state of well-being among

people within social and physical environment.

Satisfaction. Fulfillment of one's wishes, expectations, or needs, or the pleasure;

Acquired the benefits needed for a product or service the consumer obtained; Convenience

store offers satisfaction in its accessible and convenient products, and fulfills the needs of the

community where it resides.

Supply. A fundamental economic concept that describes the total amount of a specific

good or service that is available to consumers.

Target Market. A particular group of consumers at which a product or service is aimed.

Time utility. When making a product available when consumers want to purchase it.
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Trade. Generally includes any activity carried on for the production of income from

selling goods or performing services.

Utilitarian needs. Needs purchased for their practical uses and are based on the

consumer's needs.