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A requirement in our Marketing Research II at De la Salle University - Dasmariñas
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- 1. 1 I. Introduction With the flourishing recognition that store design is one of the restaurants’ most important concerns, store designing has emerged as top management priority in most restaurant businesses nowadays. Various gizmos are employed to attract clientele, thus increasing profitability. With its highly competitive nature, store design can be equally and especially important to influence customers’ perception and drive store choice and loyalty aside from other standards such as the location of a store, the distance the customer must travel and of course the price plus the healthful conditions of the place, primary reason why the management of De La Salle University- Dasmarinas sees to it that every canteen inside the campus is clean and every food served is safe and fresh. These are the basic criteria in consumers’ canteen choice decisions. Every store manager should take time in strategically building and positioning a food stall’s image for the customers to have a good perception about the business. Store design is one of the attributes that influence the overall image of a store (Lindquist, 1974, Mazursky and Jacoby, 1986). Store image not only includes the location, affordability of food prices, cleanliness of the place and food preparation but store design and layout as well. Emplacement or positioning of the canteen is equally significant. This is not however, to say that location is unimportant, canteen choice seem to be discrepant with a framework where customers optimize their food costs, where effort to access the canteen location being one component of their budget. Bell, Ho, and Tang, (1998), find that location no longer explains most of the variance in store choice decisions. Consumers’ store choice may be based on different criteria such as the availability of time depending upon the nature of the travel and schedules although student canteens inside the campus are conveniently situated in an area accessible to the students that’s why location may not really be a big issue for students of De La Salle University. Like any other consumer, students too, have their food allowances on a budget. That’s the reason why almost all of De La Salle University– Dasmarinas Square Canteens’ food is uniformly priced and is within financial means of students. Students enjoy almost the
- 2. 2 same prices for sandwiches that range from P 25.00 to P 30.00 while student lunch is served from P 45.00 to P 60.00. Food prices also play an important role in students’ eating preferences and/or purchasing decision. Student consumers measure store image also by food cost and how the food price fits their budget. Nevertheless, each student still has different taste and lifestyle. Some prefer delicious mouth-watering food and affordable prices. Others prefer cozy and classy ambient, not taking into consideration the prices of the food. Hence, store design is one factor that can affect the purchasing decision of a student. That’s why; store owners must also take into consideration their store’s design to build a better store image. Richardson, Jain, and Dick (1996) said that a pleasing in-store atmosphere provides substantial hedonic utility to consumers, encourages them to visit more often, stay longer, and buy more. Although it also improves consumers’ perceptions of the quality of merchandise in the store, consumers tend to associate it with higher prices. An appealing in-store atmosphere offers much potential in terms of crafting a unique store image and establishing differentiation. Even if the products by a retailer are similar to others, the ability to create a strong in-store personality and rich experiences can play a crucial role in building retailer equity. Store layout and design will be the only subject that the researchers will consider in the University’s Square canteen’s environment. Questionnaires were formulated to fit the objectives of the research. The respondents were not exclusively directed to a certain group but to different class levels. The researchers will find out if store design really is important to consumers of De La Salle University – Dasmariñas. This research will build a better fundament or groundwork for the necessity of committing to invest on the layout and designs of stores and canteens to get students’ positive response. The specific problem and objectives, research framework, scope and limitation and research hypothesis will be further explained in this paper and at the end of the study, a further analysis, interpretation and conclusion of the findings will be discussed.
- 3. 3 I. Research Problem This research study aims to answer the following issues: General: Does the University Square Canteen’s food stall design have an impact on the purchasing decision of students in De La Salle University- Dasmariñas? Specific: What are the weekly allowances of students in De La Salle University- Dasmariñas? How many times in a week do students eat in the University Square Canteen? What are the factors that contribute to a good design inside a food stall? What is the percentage of students who are influenced by food stall design in their purchasing decision? What are other factors aside from store design that may influence student’s purchasing decision? II. Research Objectives This study aims to achieve the following goals: General: To determine if the University Square Canteen’s food stall design has an impact on the purchasing decision of students in De La Salle University- Dasmariñas. Specific: To identify the weekly allowances of students in De La Salle University- Dasmariñas. To know how many times in a week students eat in the University Square Canteen. To know the factors that contributes to a good design inside a food stall. To measure the percentage of students who are influenced by food stall design in their purchasing decision. To know other factors aside from store design that may influence student’s purchasing decision.
- 4. 4 III. Research Methodology This study was made to describe the impact of University Square Canteen’s food stall design on students’ purchasing decision. Descriptive design will be utilized to describe student’s social status by the rate of their weekly allowances. In relation with their perception of store image, a linear regression design will also be used to determine significance of the relationship of Square Canteen’s stall design and purchasing decision. Survey will be the tool used for data collection. The social survey questionnaire will comprise close-ended questions that will be answered through multiple choices and dichotomous choices. Data collection strategy will be cross sectional wherein respondents will be individually given questionnaire surveys at a different time. On the other hand, data type will be both qualitative and quantitative. Social status and those that students see as a factor which can influence their purchasing decision will be in qualitative form. Percentage of students influenced by store design and relationship of store design on the purchasing decision of students will be in quantitative form. The number of respondents will be wisely chosen using convenience sampling to be able to control and adjust to the arrivals of first year respondents of De La Salle University- Dasmarinas. This non-probability sampling would be convenience sampling. The sample size will be computed based on the whole population of DLSU-D students for the year 2009- 2010. For convenience, survey questionnaires will be distributed to students found in the Square Canteen at the time of surveying. There are 12,452 students welcomed by De La Salle University- Dasmariñas for the Academic Year 2009- 2010 according to the Students Admission Office (Heraldo Filipino, Vol. 24 Issue 1). The sample size will be 100 students computed using the Slovin’s formula with 0.10 errors. Data from the survey will be the primary source of data. The questionnaire distributed to the respondents will determine the relationship of store design and students’ store preference. The weekly allowances and number of visit in a week on the Square Canteen will be expressed in categories or as ordinal data while purchasing decisions
- 5. 5 influenced by store design nominal quantitative data or simply by yes and no during data measurement. Related literatures from internet articles will be used to establish the movement of variables such as social status, store design and store preference. These articles from the internet will support the objectives, conceptual framework, and research design of the study. For data analysis and interpretation, Cross Tabulation will be used to determine number of times a week students eat in the University Square Canteen and perception towards stall design’s importance on their purchasing decision. Other variables such as weekly allowance, number of times in a week students’ eat in Square Canteen, factors that contributes to a good design and other factors that affects purchasing decision of students will be interpreted through tables and bar or pie charts. Data that answers the specific problems of the study will be measured in an ordinal level to be able to rank the most common allowances, number of times students eat a week and factors that affects students’ purchasing decision. For the testing of the hypothesis on the relationship of store design and student’s purchasing decision, linear regression analysis will be used. Level of significance that will be used for hypothesis testing will be 0.05 to have a 0.95 confidence level. P-value will then be compared with the significance level to determine the truthfulness of the null hypothesis. If P-value will be lower than the significance level, then we will reject the null hypothesis. If not, we will accept null hypothesis. IV. Scope and Limitation The scope of the study is about the impact of different designs at Square Canteen’s food stalls towards the purchasing decision of students in De La Salle University. The research study will be focusing mainly on the students of De La Salle University- Dasmariñas, Cavite and their eating or purchasing behavior observed in the University Square Canteen area situated at the west part of the campus.
- 6. 6 The study will comprise of the weekly allowances received by the students for the researchers to determine their buying capability, the times a week students’ eat in the Square Canteen and students’ purchasing response to stall designs and perception to food stall design’s impact on their purchasing decision.. V. Hypothesis Both the null hypothesis and alternative hypothesis of the study will be analyzed using the survey data at the end of the paper to prove which hypothesis is correct. Ho: Square Canteen’s food stall design has no impact on the purchasing decision of De La Salle- Dasmariñas’ students. Ha: Square Canteen’s food stall design has an impact on the purchasing decision of De La Salle- Dasmariñas’ students. VI. Conceptual Framework The theoretical framework of this study explains food stall design’s relationship with the purchasing decision of a student which is also influenced by student’s perception of the overall store image. Store image is built through many factors that a canteen is composed of, and one of those is design. As Lindquist (1974) and Mazursky & Jacoby (1986) said, store image allows customers’ perception on the business to be built. Store design is one of the attributes that influence the overall image of a store. Store image not only includes the affordability of food prices, the cleanliness of the place, food preparation and promotion, but store design and layout as well (Lindquist, 1974, Mazursky and Jacoby, 1986).
- 7. 7 Store layout and design includes the wall color, table and chair setup, ambience, lighting and spacing. That’s why; store owners must also take into consideration their store’s layout and design to build a good store image because store image allows businesses to gain more customers and receive positive purchasing response or decision. The framework states that how a student perceives store design’s importance in building store image has a relationship with their purchasing response. Good perceptions then affects purchasing behavior of a student leading to a decision to eat or dine while a bad perception otherwise. This theoretical framework will be further proven by a thorough analysis of the research survey. The independent variable is student’s perception on the importance of store design and the dependent variable is their purchasing decision, store design itself being the intervening variable. Perception on Stall Design’s Stall Design Purchasing importance in and Layout Decision building Store Image VII. Research Findings Weekly allowances of students in De La Salle University- Dasmariñas For the demographical characteristic of the respondents, their weekly allowance rate was determined through a survey. There are 27 different weekly allowance rates according to the survey. Out of the 100 respondents, 5 didn’t indicate their weekly allowance rate that’s why there are only 95 valid answers in the survey data. Statistics Weekly Allowances N Valid 95 Missing 5
- 8. 8 Weekly Allowances Frequency Percent Valid Percent Cumulative Percent Valid 250 2 2.0 2.1 2.1 350 1 1.0 1.1 3.2 500 6 6.0 6.3 9.5 600 7 7.0 7.4 16.8 650 2 2.0 2.1 18.9 720 1 1.0 1.1 20.0 750 9 9.0 9.5 29.5 780 1 1.0 1.1 30.5 800 2 2.0 2.1 32.6 850 1 1.0 1.1 33.7 900 6 6.0 6.3 40.0 960 1 1.0 1.1 41.1 1,000 17 17.0 17.9 58.9 1,150 1 1.0 1.1 60.0 1,200 5 5.0 5.3 65.3 1,250 8 8.0 8.4 73.7 1,375 1 1.0 1.1 74.7 1,500 13 13.0 13.7 88.4 1,600 1 1.0 1.1 89.5 1,750 1 1.0 1.1 90.5 2,000 1 1.0 1.1 91.6 2,100 1 1.0 1.1 92.6 2,400 1 1.0 1.1 93.7 2,500 4 4.0 4.2 97.9 3,750 1 1.0 1.1 98.9 5,000 1 1.0 1.1 100.0 Total 95 95.0 100.0 Missing no response 5 5.0 Total 100 100.0
- 9. 9 Survey data show that 17.9 percent of the first year De La Salle University students have a weekly allowance of P 1,000. Also, 13.7 percent of students have a weekly allowance of P 1,500 or P 300 daily allowance for a five-day a week classes. The third most common weekly allowance for the students of De La Salle is P 750 a week that is P 150 a day rate for a five-day a week classes. The fourth is P 1,250, which is P 250 a day in a five-day a week classes. The fifth is P 600 which is P 120 daily allowance rate while the sixth is P 900 and P 500 which is P 180 and P 100 daily. The mean of students’ weekly allowance is P 1,158.26. Descriptive Statistics N Minimum Maximum Mean Std. Deviation Weekly 95 250 5,000 1,158.26 689.237 Allowances Valid N (listwise) 95 A chart of the students demographical characteristic or weekly allowance rates shows that P 1000, P 1500, P 750, P 1250, P 600, P 900 and P 500 are the top six most common weekly allowance rates. The figure is shown below.
- 10. 10 Number of times a week students eat in Square Canteen All respondents indicated the number of times a week they eat in the Square Canteen allowing no missing or invalid answers to appear in the data sheet of the SPSS. Valid data is 100 percent. Statistics No. of times students eat in Square Canteen N Valid 100 Missing 0 According to survey data, 47 percent of the students eat in the Square Canteen every day, 23 percent eats thrice a week, 18 percent eats twice a week and only 12 percent eats once a week. Almost half of the students eat everyday at the Square Canteen and minority eats once a week in the Square Canteen. There is also none of the students who never eat in the Square Canteen. Complete data from the survey about how many times in a week students of De La Salle University- Dasmariñas eat in the Square Canteen is shown in the table below. No. of times students eat in Square Canteen Cumulative Frequency Percent Valid Percent Percent Valid once 12 12.0 12.0 12.0 twice 19 19.0 19.0 31.0 thrice 23 23.0 23.0 54.0 everyday 46 46.0 46.0 100.0 Total 100 100.0 100.0
- 11. 11 A chart of the survey data about how many times a week students eat in the Square Canteen is shown in the figure below. A high number of students, as shown in the figure below, eat everyday in the Square Canteen while none of the students who never eat in the Square Canteen. Students eat in the Square canteen on a mean of thrice a week, having 1 for once a day, 2 for twice a day, 3 for thrice a day and 4 for every day. Descriptive Statistics Std. N Minimum Maximum Mean Deviation No. of times students 100 1 4 3.03 1.068 eat in Square Canteen Valid N (listwise) 100 Factors that contributes to a good design inside the store The factors that are included in the composition of a good design are wall color, table and chair setup, lighting and spacing. In the survey data, 36.3 percent states wall color as the factor that contributes most to a good design inside the store. Table and chair setup is the second factor that students think contributes to a good design. It is
- 12. 12 29.8 percent of the survey data, which is not so far from the percentage of wall color. Third is the lighting of the store, which is 24.4 percent of the survey data. Last, but not the least, is the store spacing, which is 9.5 percent of all the survey data. All the answers are valid and complete as sample data were input in the SPSS. Complete survey data is shown in the table below. Case Summary Cases Valid Missing Total N Percent N Percent N Percent $Contributorsa 100 100.0% 0 .0% 100 100.0% a. Dichotomy group tabulated at value 1. Data show that students see wall color as the most important factor that makes a store design good and store spacing as the least of all the factors that can make a store design good. The data is then input as a multiple set of variables in which respondents were able to answer as many contributors which they see can contribute to a good design inside a food stall. $Contributors Frequencies Responses Percent of N Percent Cases factors that wall color 61 36.3% 61.0% contributes to good table and chair setup 50 29.8% 50.0% designa lighting 41 24.4% 41.0% spacing 16 9.5% 16.0% Total 168 100.0% 168.0% a. Dichotomy group tabulated at value 1.
- 13. 13 Percentage of students whose purchasing decision are influenced by store design Survey data shows that 80 percent of the students are influenced by store design in their purchasing decision and only 20 percent are not influenced by store design in their purchasing decision as shown in the table below. Statistics Store Design influences Purchasing Decision N Valid 100 Missing 0 Store Design influences Purchasing Decision Cumulative Frequency Percent Valid Percent Percent Valid no 20 20.0 20.0 20.0 yes 80 80.0 80.0 100.0 Total 100 100.0 100.0 Other factors that influence the students’ purchasing decision According to the survey data, there are 13 factors aside from store design that can affect students’ purchasing decision, food taste being the top in the rank. Food taste is 36 percent of all survey answers on other factors that affect students’ purchasing decision. The second factor that affects students’ purchasing decision the most is price or the affordability of the food, which is 21 percent of all survey answers. The third factor that mostly affects the purchasing decision of students is the number of tables and chairs or the number of people the store can accommodate. It is 9.1 percent of all survey answers. There are only 2 missing values because respondents
- 14. 14 didn’t indicate their corresponding answer to the question in the survey. There are a total of 98 valid answers to be counted in the frequency. Case Summary Cases Valid Missing Total N Percent N Percent N Percent $factorsa 98 98.0% 2 2.0% 100 100.0% a. Dichotomy group tabulated at value 1. Complete details of the survey data is shown in the table below. Ambience or the music and mood inside the store are the least of all factors considered. $factors Frequencies Responses Percent of N Percent Cases other ventilation 15 8.1% 15.3% factorsa sanitation and cleanliness 15 8.1% 15.3% food taste 67 36.0% 68.4% nos. of table and chairs 17 9.1% 17.3% price 39 21.0% 39.8% friendly staffs 9 4.8% 9.2% choices and menu 9 4.8% 9.2% good service 3 1.6% 3.1% amount of servings 5 2.7% 5.1% utensils 1 .5% 1.0% food presentation 1 .5% 1.0% place and location 3 1.6% 3.1% ambience 2 1.1% 2.0% Total 186 100.0% 189.8% a. Dichotomy group tabulated at value 1.
- 15. 15 On the perception of students on store design’s importance and the number of times a week students eat in Square canteen showing their purchasing behavior, there are no missing or invalid sample data entered on the cross tabulated data of the number of times a week students eat in Square Canteen or the students’ purchasing behavior and their perception on the importance of stall design in influencing their purchasing decision. Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent No. of times students 100 100.0% 0 .0% 100 100.0% eat in Square Canteen * Perception on Stall Design's Importance For the minority of the respondents, data from the sample show that only 3 out of 12 respondents who eat once in a week in the Square Canteen don’t see stall design important in making purchasing decision and 9 respondents sees it important. However, majority who eats almost every day in the Square Canteen, only 8 out of 46 doesn’t see stall design’s importance while the rest, otherwise. No. of times students eat in Square Canteen * Perception on Stall Design's Importance Crosstabulation Count Perception on Stall Design's Importance no yes Total No. of times once 3 9 12 students eat in twice 5 14 19 Square thrice 4 19 23 Canteen everyday 8 38 46 Total 20 80 100
- 16. 16 Figure below is a chart of the cross tabulated perception of students on stall design’s importance and student’s purchasing decision measured by the number of times a week they eat in Square Canteen. According to the chart, majority of the students see the importance of stall design in influencing their purchasing decision in the Square Canteen. Hypothesis testing Summary of the linear regression model shows that the independent variable which is student’s perception on stall design’s importance has R value of .085 and R square value of .007. Standard error of this estimate is equal to 1.070.
- 17. 17 The computation is based on the cross tabulated data of our independent and dependent variable. Summary model is shown in the table below. Model Summary Adjusted R Std. Error of Model R R Square Square the Estimate 1 .085a .007 -.003 1.070 a. Predictors: (Constant), Perception on Stall Design's Importance ANOVA of the dependent variable which is student’s purchasing behavior or number of times to eat in the Square Canteen shows 112.910 Sum of Squares and 99 degree of freedom. This statistical data is useful in the computation of the P-value which will determine the truthfulness of the null hypothesis. ANOVAb Sum of Model Squares df Mean Square F Sig. 1 Regression .810 1 .810 .708 .402a Residual 112.100 98 1.144 Total 112.910 99 a. Predictors: (Constant), Perception on Stall Design's Importance b. Dependent Variable: No. of times students eat in Square Canteen Co-efficient of the dependent variable shows the slope (B) of the linear regression model as .225 and the standard error as .267. These two statistical data came from the sample survey. This will also be helpful in the computation of the P-value to help the researchers decide in accepting or rejecting null hypothesis.
- 18. 18 Coefficientsa Unstandardized Standardized 95.0% Confidence Coefficients Coefficients Interval for B Std. Lower Upper Model B Error Beta t Sig. Bound Bound 1 U (Constant) 2.850 .239 11.917 .000 2.375 3.325 s iPerception on .225 .267 .085 .841 .402 -.306 .756 nStall Design's g Importance a. Dependent Variable: No. of times students eat in Square Canteen U Using the linear regression analysis of the statistical spreadsheet SPSS, a standard error of .267, slope of .225, 99 degree of freedom, and test statistics which is slope divided by the standard error was used to compute the P-value or probability of the relationship of De La Salle University- Dasmariñas students’ purchasing behavior and perception on the importance of Square Canteen’s stall design. The test statistic which is 0.843 is then used to compute P-value together with the degree of freedom or df. The P-value computed is P (T < .843) 0.7994. The P-value is then compared with the significance level 0.05 to test the truthfulness of the null hypothesis. The T- test of the P-value shows that the null hypothesis is true since P-value is greater than the significance level 0.05.
- 19. 19 VIII. Conclusions and Recommendations Conclusions 1. Survey data show that 17.9 percent of the first year De La Salle University students have a weekly allowance of P 1,000. Also, 13.7 percent of students have a weekly allowance of P 1,500. The third most common weekly allowance for the students of De La Salle is P 750 a week. The fourth is P 1,250. The fifth is P 600 while the sixth is P 900 and P 500. The mean students’ weekly allowance is P 1,158.26. 2. According to survey data, 47 percent of the students eat in the Square Canteen every day, 23 percent eats thrice a week, 18 percent eats twice a week and only 12 percent eats once a week. Almost half of the students eat everyday at the Square Canteen and minority eats once a week in the Square Canteen. The mean number of times a week students eat in the Square Canteen is thrice a week. 3. In the survey data, 36.3 percent sees wall color as a factor that contributes most to a good design inside the store. Table and chair setup is the second factor that students think contributes to a good design which is 29.8 percent of the survey data. Third is the lighting of the store, which is 24.4 percent of the survey data. Lastly is the store spacing, which is 9.5 percent of all the survey data. Therefore, wall color is what students consider as the number one factor that contributes to a good design. 4. Survey data shows that 80 percent of the students are influenced by store design in their purchasing decision and only 20 percent are not influenced by store design in their purchasing decision as shown in the table below. Therefore, most of the students in De La Salle University- Dasmariñas are influenced by store design in their purchasing decision. 5. According to the survey data, there are 13 factors aside from store design that can affect students’ purchasing decision, food taste being the top in the rank. Food taste is 36 percent of all survey answers on other factors that affect students’ purchasing
- 20. 20 decision. The second factor that affects students’ purchasing decision is price or the affordability of the food, which is 21 percent of all survey answers. The third factor that affects the purchasing decision of students is the number of tables and chairs or the number of people the store can accommodate. It is 9.1 percent of all survey answers. Other factors that can influence students purchasing decision are ventilation, sanitation and cleanliness, friendly staffs, choices and menu, good service, amount of servings, utensils, food presentation, place and location, and ambience. 6. The P-value computed is P (T < .843) 0.7994. The P-value is then compared with the significance level 0.05 to test the truthfulness of the null hypothesis. The T-test of the P-value shows that the null hypothesis is true since P-value is greater than the significance level 0.05. Therefore, Square Canteen’s food stall design has no direct impact on the purchasing decision of De La Salle University- Dasmariñas students. Recommendations The researchers therefore recommend that University Square Canteen concessionaires should also focus in enhancing food taste, price and adding space for additional tables and chairs to attract customers and attain a positive purchasing response since stall design does not really affect the purchasing decision of students. These top three factors are those which students find to be satisfying their needs and budgets. Canteen manager, therefore, should optimize food taste and offer quality even in a lower price. Also, the success of a food stall is not dependent on one factor alone that’s why food stall manager and food canteen entrepreneurs should focus on different factors that may improve business image or store image. Factors such as store ventilation, sanitation and cleanliness, friendly staffs, choices and menu, good service, amount of servings, utensils, food presentation, place and location, and ambience are other factors store managers should take into consideration in strategizing for a good marketing position for a food or canteen business.
- 21. 21 IX. Appendix Name: ________________________________________ College: _______________________ Daily Allowance: ________________________________ 1. How many days a week do you go to school? (Check your answer). 2 days 3 days 4 days 5 days 6 days 2. How many times in a week do you eat in Square Canteen? (Check your answer). Once Twice Thrice Everyday Never 3. Which do you think is the best designed food stall in the Square Canteen? ______________________________________ 4. Based on your answer above, what factor/s inside that stall that you think contributes to its good design? (Check as many boxes you want). Wall color Table and chair setup Lighting Spacing 5. Do you think their design is important in your purchase decision making or eating? (Check your answer). Yes No 6. What other factors aside from store design that you think influences your decision to eat or purchase inside a food stall in the Square Canteen? (Ex. food taste, ventilation, staffs, etc.) ______________________________________________________________________ ______________________________________________________________________
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Environmental issue is a sizzling topic nowadays as almost every country's government and society has started to be more aware about these issues. This leads to a trend of green marketing used by the firm as one of the strategies in order to gain profit and protect the environment. This paper will be discussing the green marketing and its sustainability as well as the tools and marketing mix of green marketing. Other than that, the green consumer and branding will be discussed in further in this paper as this will attract more consumers. Lastly, firm will be benefited once green marketing strategy is applied. Abstract-Environmental issue is a sizzling topic nowadays as almost every country's government and society has started to be more aware about these issues. This leads to a trend of green marketing used by the firm as one of the strategies in order to gain profit and protect the environment. This paper will be discussing the green marketing and its sustainability as well as the tools and marketing mix of green marketing. Other than that, the green consumer and branding will be discussed in further in this paper as this will attract more consumers. Lastly, firm will be benefited once green marketing strategy is applied.
Ambalam Pushpanathan
In the last decade, consumers have become more open-minded on ecological issues. Green marketing refers to selling product or rendering services based on environmental gain. It comes into continuation in late 1980s and early 1990s. Green marketing is rising quickly and consumers are willing to pay a lot for green product. There has been little analysis of the impact of this new market on the consumers and the environment so far. Green marketing affects all areas of our economy, it does not just lead to environmental safety but it also generates new market and job opportunities. Companies that are green stewards stand a chance of gaining many satisfied and loyal customers. Hotel company managers increasingly have to take environmental issues into account. Hotel industry in Sri Lanka has become one of the major income sources to the GNP. With the end of three decades war in Sri Lanka, hotel industry is developing more increasingly. And hotels are developing and implementing different kind of strategies to win the market through enhancing their customer satisfaction. On the other hand customers are now looking for more eco friendly hotels which secure their health and enhance their satisfaction. The research question of the present study is, how green marketing practices impact on customers satisfactions? Green marketing is a tool for protecting the environment for the future generation. It has a positive impact on environmental safety. Because of the growing concern of environmental protection, there is an emergence of a new market which is the green market. For Hotels to survive in this market, they need to go green in all aspect of their business. Consumers want to identify themselves with hotels that are green compliant and are willing to pay a premium for a greener life style. As such, green marketing is not just an environmental protection tool but also, a marketing strategy. The main objective of the present study is to analysis the relationship between green marketing practices and customer satisfaction. Three hotels in Wennappuwa area were selected for the presents study, such as Club Dolphin Hotel Waikkal, Ranweli Hotel Waikkal and Hotel Heaven Inn. 100 customers selected as sample for the present study. 45 customers were selected from Dolphin Hotel, 35 customers were selected from
Menghua Shi
Purpose – The green marketing concept emerged in the late 1980s, and many hotels have since implemented a variety of green marketing strategies, such as the use of the " green hotel " label to project a green image and attract potential customers. However, some companies that have launched environment-based promotions have been accused of " green washing " by their customers. This study aims to investigate the gap between hotel manager and customer perceptions of the relative importance of green marketing-related activities. Design/methodology/approach – Two sets of 30-statement questionnaires designed for hotel managers and customers were used to gauge respondents' perceptions of a variety of hotel green marketing-related activities. Independent samples t-tests and one-way analysis of variance (ANOVA) were used to examine the significant differences between the ways in which hotel managers and customers rate the importance of these activities. Findings – The two statements that gained the highest level of agreement amongst both hotel managers and customers were: " The internet is an effective channel for marketing a hotel's green initiatives directly to customers " ; and " Green hotels can elevate industry members' image and reputation to attract green tourists who demand green accommodation when travelling ". Both also perceived: " The environmental claims in advertisements are often met with criticism from competitors and consumer organisations " ; " Hotel customers are willing to pay a higher price for eco-facilities " ; and " Customers are willing to pay a higher green price if part of the amount paid is donated to green activities " to be the three least important statements. The results also indicated ten over-perceptions and three under-perceptions amongst hotel managers, thus implying that they may require a better understanding of customer expectations. Several demographic differences were also identified. Female hotel managers and customers were found to be more concerned with green hotel products and a green image; hotel managers aged over 59 were found to have reservations about certain green marketing strategies probably because of service quality issues, although green supporters are in general older than average; younger customers aged between 20-29 become more concerned about environmental issues; and customers with a Master degree level of education or above challenged whether hotels are truly innovative in their development of green products and services and had reservations about the use of eco-labels. Research limitations/implications – The results of this study may not reflect the full picture of managerial perceptions of green hotel marketing, as the sample was restricted to hotels on the Hong Kong Hotels Association list. Researchers may thus wish to undertake further studies with larger hotel samples over a longer time period in future. Drawing on the foundations laid by this study, future researchers may also wish to investigate smaller, lower-ranked hotels, which may experience greater challenges in implementing green marketing strategies than those considered here. Originality/value – Few studies to date have investigated green hotel marketing. The findings of this study can be viewed as a preliminary step towards greater understanding of green hotel marketing-related activities.
Benard SITHOLE
The research which was undertaken from January to April 2015 looking at the effect of green marketing strategies on corporate image in the cement manufacturing industry in Zimbabwe. The main purpose of this study is to assess the effects of green marketing strategies that is green promotions, eco-labelling, eco-production and green purchasing on corporate image. Literature review was carried out on the effects of green marketing strategies on corporate image particularly effect of green promotion on corporate image , effect of eco-labelling on corporate image, effect of eco-production on corporate image and effect of green purchasing corporate image as discussed, to find similarities and differences from different authors who studied green marketing variables and in this study major authors were Frunan (2010), Gassmann (2011), Ham (2011) and Bauer (2013). Pragmatism and both descriptive and exploratory research design were adopted which allows the gathering of data and description of events through organizing, tabulating, depicting and describing the data gathered. Simple random sampling, and judgemental sampling were used to select the respondents of which the procedures give each unit of the population an equal chance of being picked as well as allowing flexibility on the part of the researcher to use readily available participants. A sample size of 221 particularly 200 customers and 15 middle managers and 6 senior managers was used. SPSS V20 was used to analyze data and presentations were done in the form of table, bar-graphs, and pie-charts. Qualitative information was discussed to reflect the views of the respondents on the effect of green marketing strategies on corporate image in the cement manufacturing industry in Zimbabwe. The major findings are that if fully implemented green marketing strategies results in a positive corporate image as all cement manufacturing stakeholders want cement manufactures to install genuine green promotions, trust worth eco-labelling programs, practical eco-production processes strategies and credibility and fair green purchasing activities. In view of the above findings the study recommended that there is need for cement manufactures to be open to its various stake holders in the industry to generate trust which is an important builder of corporate image. On further research, a gap still exist on impact of green marketing on customer loyalty, so that the organisations will find solutions on how to convert the customers they have acquired into partners or advocates.
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Consumer Trends in the Philippines: Marketing in a Deteriorating Economy
ABSTRACT - As the continual devaluation of the peso increased production costs at the same time unprecedented inflation and unemployment rapidly eroded the purchasing power of consumers, large manufacturers in the Philippines responded with risk-oriented crisis marketing. Innovative survival tactics included unconventional promotional efforts which offered entertainment as added value to purchases, the introduction of smaller packaging sizes, and cheaper substitutes. Recent findings on the psychographic profiles of various demographic segments of the Filipino consumer base are presented, and then discussed in relation to the potential effectiveness of such strategies in maintaining a relatively dynamic market during the economic decline.
Corinna T. de Leon (1985) ,"Consumer Trends in the Philippines: Marketing in a Deteriorating Economy", in SV - Historical Perspective in Consumer Research: National and International Perspectives, eds. Jagdish N. Sheth and Chin Tiong Tan, Singapore : Association for Consumer Research, Pages: 173-181.
Historical Perspective in Consumer Research: National and International Perspectives , 1985 Pages 173-181
CONSUMER TRENDS IN THE PHILIPPINES: MARKETING IN A DETERIORATING ECONOMY
Corinna T. de Leon , National University of Singapore
[Acknowledgment is given to the following, for furnishing data and opinions: Antonio R. de Joya of Advertising & Marketing Associates, Inc.; Jose Orias of SSC&B: LinLas Worldwide (Philippines); Annette Alcasavas of Filipro, Inc; Angela V. Lascon of Philippine Refining Corp.; Antonio V. Concepcion of San Miguel Corporation; Alquimedes ?. Morales of Qualitative Empirical Research, Inc.; the Philippine Board of Advertising; the Marketing and Opinion Research Society, the Asian Federation of Advertising Associations.]
As the continual devaluation of the peso increased production costs at the same time unprecedented inflation and unemployment rapidly eroded the purchasing power of consumers, large manufacturers in the Philippines responded with risk-oriented crisis marketing. Innovative survival tactics included unconventional promotional efforts which offered entertainment as added value to purchases, the introduction of smaller packaging sizes, and cheaper substitutes. Recent findings on the psychographic profiles of various demographic segments of the Filipino consumer base are presented, and then discussed in relation to the potential effectiveness of such strategies in maintaining a relatively dynamic market during the economic decline.
INTRODUCTION
The assassination of opposition leader Benigno Aquino in August 1983 triggered severe -political inst-ability in the Philippines, which in turn aggravated the country's economic problems. A year later del Rosario (1984) observed that ''the demonstrations are ... angrier, more intense ... companies are shutting down and employees are being laid off ... never have so many banking and financial institutions collapsed in so short a time'' . Having anticipated growth in the eighties, marketing management confronted instead a challenge of survival for most of their product-, in the most adverse of economic conditions.
THE ECONOMY
Mainly to restructure repayments of the national debt , the Philippine government made essential changes in its economic and monetary policies. Significant measures included substantial depreciation of the Philippine peso, adjustment ef government controls which increased domestic prices, and wage restraint. The deterioration of monetary conditions was made evident by the nominal interest rates of loans which reached 28% in July 1984, compared to the average of 19% in July 1983.
On June 23, 1983, the nominal exchange rate was devalued from P10.20 to the U.S. dollar, to P11.00. Two months after the Aquino assassination, October 1983, the peso depreciated further to P14.00 to the US$. One year later, after the peso was allowed to float, the peso traded at P20.10 to the US$. The exchange rate in July 1985 was officially at P18.75 to the US$; but the wide-spread expectation is that the exchange rate will reach P23.00 to the US$ by the end of 1985.
Because of the limited foreign exchange resources, the imports of raw materials became difficult in 1984. Consequently the sudden decrease in manufacturing outputs resulted in speculation and hoarding of goods. As the availability of foreign exchange has improved, the increase of production costs and the decline in sales volumes in 1985 were mainly due to unprecedent inflation rates. Inflation reached 26% in December 1983 and 64% by September 1984. Although the government announced in June 1985 that inflation had lowered to 35%, the annual average was estimated at 50%.
Based on a survey of key manufacturing enterprises during the second quarter of 1984, the National Economic and Development Authority of the Philippines (NEDA) reported that the average nominal value of production increased 37% over 1983. However the volume of total production output and of sales is evidently declining in 1985, when the growth rates are viewed in terms of the substantial increase in domestic prices. Carrion (1985) stated that in food processing, only meat products were expected to increase sales,, by a mere 0.6%; whereas, sales of flour and bakery products are expected to decrease by 3%; milk, by 21%; passengers cars, by another 50% after the 75-80% decline in 1984; and home appliaiices, by 20%. Another effect of the economic crisis is the rising unemployment, as enterprises trim operational expenses or eventually shut down. The NEDA survey showed that in the first half of 1984 employment was reduced by 6% from the previous year. The published rate of unemployment rate rose from 5% to 6% in 1984. Moreover, the underemployment ratio rose from 31% in 1983 to 37% in 1984.
The population of the Philippines is estimated to be 54.4 million in 1985, with almost, as many females as males, as shown in Table 1.
Children comprise the largest segment of the market, and the majority of the consumers are below 30 years of age. The typical Filipino lives in the rural areas, is literate, and has completed elementary education. Almost all are Roman Catholics, due to the Christianization during three centuries of Spanish colonial rule.
There are 9.7 million households in the country, with an average of 5.6 members per household. Televisions are found in almost all homes in Metro Manila, and in half of the households in urban areas; but only one out of five rural homes owns a set, despite the 80% electrification in the Philippines (Table 2).
The reach of the broadcast media may be facing competition however from video recorders which are used in 11% of Metro Manila homes, and 2% of all households in the country. There are five television networks with I satellite in Metro Manila, and 20 replay stations reaching 42 provincial cities; 305 radio stations, of which 85% are commercial stations; 89 newspapers, of which 17 are circulated nationally; 142 magazines, including 45 illustrated comic books; and 1,046 cinemas (Advertising Age's Focus, 1984)
DEMOGRAPHIC PROFILE OF THE PHILIPPINES
THE REACH OF BROADCAST MEDIA IN THE PHILIPPINES
Although of common Malay, Chinese, and Spanish ancestries, the 54 ethnic groups living on the 7,000 islands of the Philippines speak nearly 100 different dialects, with English widely spoken as the language of business. Depending on the region, the media communicates in one of seven major dialects. In 55% of the area coverage, the national language of Pilipino (or Tagalog) is used as the media dialect, mostly in Metro Manila and surrounding areas in Central Luzon. Cebuano is the media dialect in 24% of the country, mostly in the islands of the Visayas. The other dialects of the media are Ilocano (11%), Ilonggo (10%), Bicolano (7%), Waray (3%), and Chabacano (2%).
The Philippine Board of Advertising (PBA) was organised in 1974 as the body responsible for the self-regulation of the advertising industry. All sectors of the industry are represented in the confederation by their respective associations; namely the Philippine Association of National Advertisers, the Association of Accredited Advertising Agencies, the Kapisanan ng mga Brodkasters sa Philipinas (Association of Broadcasters), the Print Media Organization, the Cinema Advertising Association, the Outdoor Advertising Association, the Advertising Suppliers Association, and the Mark,,ting and Opinion Research Society. The main agreement guiding the PBA is that all commercials must be submitted for screening and approval, prior to media exposure. As noted by Kahn (1984), recent measures prohibited the actual intake of alcoholic drinks and the actual inhalation of smoke from cigarettes/cigars in commercials, required the inclusion of the warning "drink moderately" and "if symptoms persist, consult your physician", and permitted the "Number One" claim only for six months after submission of updated supporting data.
Quiogue (1984) reported that in 1983 the PBA screened 1,210 commercials, out of which 18% were deferred for lack of substantiation and 3% completely disapproved from airing. In 1984 a total of 1,736 commercials were sent to the PBA for screening, half for television and half for radio, 87% of which were approved. These figures indicated that advertising activity did not decline during the economic crisis of 1983-85.
PHILIPPINE ADVERTISING EXPENDITURES BY MEDIA TYPE
Nonetheless, Table 3 presents data which that advertising expenditures decreased by 10% in 1984, as compared to that of 1983. Television and newspapers have- been traditionally the major media in the Philippines; and in 1984 expenditures on print advertisements decreased by 5% to 34%, whereas expenditures on the broadcast media increased by 5% to 631'. At the end of 1984 only half of the media had profits, while a quarter declared losses (Carrion, 1985). The 10% increase in the 1985 revenues of the broadcast media fell short of the 40% rise in their op-~rational expenses. Carrion (1985) took the view that on the whole advertising budgets for 1985 will be less than 1984, although some major advertisers may increase allocations "with the forward-looking objective of improving market shares when markets return to normal,,.
The status of marketing research in the Philippines was investigated for the first time by the Marketing and Opinion Research Society (MORES) in the first quarter of 1984. Belonging to the top 2000 corporations, 225 manufacturing, financial, and commercial establishments participated in the survey. As shown in Table 4, only three out of five companies stated that they use marketing research these companies are equally distributed into those with a separate marketing research department, and those whose research functions are the responsibility of the marketing department or the marketing planning/services unit. About half of the corporate respondents conducted their own research within their organisation, whereas two out of five did some studies on their own as well as commission the services of a research agency.
1984 SURVEY OF MARKETING RESEARCH USERS BY THE MARKETING AND OPINION RESEARCH SOCIETY
There are presently nine research agencies in the Philippines, the oldest being the Asia Research Organization; the newest being Qualitative Empirical Research (QUERY), Inc.; and the three largest being Pulse, Inc., Unisearch (of the Unilever group), and Philippine Survey & Research Center, Inc.
When asked to compare their budget with that of five years before, the participants of the MORES survey noted an average increase of 91%. In 1983/84 the average research budget was P365,000 (approximately US$19,500) per annum, with two out of five companies reporting that their allocations were in the range of P150,000 or less (about US$8,000). Informal queries to the marketing research managers of large manufacturing concerns indicated that research budgets for 1985 were not expected to be substantially less than that of 1984, because the cutbacks were in the advertising budgets which have been customarily far larger than research allocations.
An increasingly prevalent promotional activity in the Philippines is the sponsorship (by major brands) of entertainment shows. As in the rest of South-east Asia, mobile cinema or merely video films can be a crowd-drawer, especially in rural .areas. However, with the large number of cinemas throughout the Philippines, roadshows featuring live entertainment, traveling from town to town, have been a more effective promotional tool. Television, movie, or radio stars seen in person by their fans, reach the audience not only by entertaining them, but also by endorsing products. In television top-rating live shows are usually comprised of various segments with different sponsors, which elicit audience participation in games or raffles. Sponsored segments have become common in radio shows as well, usually relying on the announcer's popularity, who in a chatty-friend style. makes ad-lib commercials. Unstructured advertisements have been written into the story-line of popular drama shows on radio and television, deriving its impact from the delivery by a major star. Unconventional promotional tactics are apparently limitless, as a leading soap brand encouraged radio listeners to use its wrappers to write in their requests for songs dedicated on-air to their loved ones. In view of the considerable Lime exposures of the products ana the comparatively lower fees, such as promotional tactics evidently maximise cost effectiveness during the period of budgetary constraints.
Another trend in Philippine marketing is the introduction of cheaper substitutes, mainly through product reformulations which use raw materials that are produced locally. Encouraged by the success of the competitive Sorbetero Pilipino ice cream which specialised in native flavours, the market leader Magnolia diversified into the Sorbetes ice cream line which uses the abundant coconut oil as base rather than imported milk fats. More recently Magnolia launched new flavours for the inexpensive " ice-drop" on a stick, which is a non-fact water-based formulation. Nestle milk products re-introduced the previously unsuccessful Vita which is a chocolate flavoured drink made from soya beans, an ingredient which is locally grown. Although coffee is culstivated in the Philippines, Nescafe redirected their product development away from the higher-priced specialty coffee brands such as Master Roast and Decaf, to place in the Philippine market the new Sunrise brand which is described as an instant coffee blend with "added carbohydrates".
An inspection of outlets revealed that down sizing of major brands is a common practice during the period of unprecedented inflation. Many convenience goods are presently available in three to five sizes; and the extreme example is Blend 45 coffee which is packaged in seven sizes ranging from 30 grams to 250 grams, in different types of decorative re-usable bottles. The ever popular San Miguel beer can now be purchased not only in the regular 12 oz. bottle, but also in a smaller bottle called Miguelito, (a Spanish proper name which translates into "small Miguel"). Positioned originally by San Miguel Brewery as the beer with high alcohol content and in the largest bottle, Red Horse beer is now available in the smaller sized bottle referred to as the Colt. As major brands have produced the 30-gram bottles, Great Taste coffee is also marketing single-usage packets containing 1.5 grams. The classic wide-mouthed cans of Dole/Del Mor~te pineapple with 836 gram contents has been joined by a 235 grams can similar to that of tuna products.
Personal care products are now available in pocket-size bottles containing a quarter or less of the contents of the regular size. Moreover, most shampoo brands can be bought in single-usage sachets, a form of packaging recently adopted as well by Close-up toothpaste. Normally packaged in tin cans, powdered milk is now offered in smaller units, packed in aluminum or plastic bags.
THE CONSUMER
An indicator of the effects of the deteriorating economy on the consumer is the change in the proportions of the socio-economic classes. As shown in Table 5, consecutive surveys by the Philippine Survey and Research Center (1983-1984, 1985) revealed that the lower-class DE households in the total Philippines increased by 2% in 1985, as compared to,,,1983-84. In Metro Manila where there is a larger segment of higher-class AB households, a downward movement of 12% to 9% was found. Earning at least P10,000 (approximately US$500) a month, the higher-income AB class comprise only 3% of the population, and three-fourths of all households are in the DE class with the monthly income of the household head less than P3,000 (about US$150).
Recognising the importance of socio-economic classification to marketing, the Marketing and Opinion Research Society are presently conducting studies to standardize and validate research procedures. Concepcion (1983a, 1983b) pioneered the investigation with a survey of Metro Manila households, which yielded evidence that reported household income had the highest correlation with the standard of living. Correct classification of households improved when all five criteria were used; namely, general appearance of the residence, household appliances and vehicle ownership, household, income, education of the household head, and Occupation of the household head. However, the residence, appliances/ vehicles, and income were the criteria which most significantly discriminated between the three classes of AB, C, and DE.
1983/85 SOCIO-ECONOMIC CLASSIFICATION OF PHILIPPINE HOUSEHOLDS
Roberto (1984, 1985) conducted comparative surveys of Metro Manila housewives who belong to the lower-class DE homes, in January 1984 and December 1984. Reprinted in Table 6, his results showed that more respondents reported an improvement in their household incomes at the end of the year than in the beginning of 1984. This response was evidently due to the across-the-board salary adjustment ordered by the government, and the thirteenth month pay given in December. Nonetheless nine out of ten housewives stated that their present income was not sufficient; such that, the percentage of whose who felt their "income was very short" increased by 16% to almost half of the sample. Furthermore the proportion of the respondents who said they experienced being "hard-up" often in the past four weeks almost doubled from a quarter of them to 44%.
The ''coping strategies' of the class DE housewives were investigated also by Roberto (1984,1985) who proposed that regression of product usage follows a hierarchy of behaviours from the initial usage economization, to the later purchase reduction, substitution and elimination. As presented in Table 7, the majority of the respondents maintained expenditure levels of normal essential items such as rice, lights/electricity, water, medical consultations and medicines in December 1984 as in January 1984. However, although food and drinks comprise 55% of household expenditures, a greater proportion of housewives in the second survey reported usage-economizing tactics for rice and viands.
PERCEPTIONS OF INCOME BY LOWER-INCOME HOUSEWIVES
The impact of the economic decline is more clearly evident f rom th,~ coping patterns involving non-essential items. At the start of 1984, about half of the housewives in Roberto's study had eliminated eating out, magazines/comics/newspapers, cinema, social visits, parties, and social outings (Table 8). A year later the elimination of these same items increased substantially, to 80-90% of low-income housewives. Moreover, a second wave of elimination strategy seems to have occurred; such that, at least four out of ten respondents reported doing Without shopping for household needs, refreshment/drinks, health medicines, snacks, and shopping for clothing, whereas elimination rates for these items were minimal at the start of the year.
The study to be presented here pertains to the initial attempts in the Philippines to investigate the psychographic profiles of the socio-economic classes (SEC), as well as of the other demographic factors of age, gender, and family life cycle (FLC). The primary research objective was to verify the existence of psychographic differences between the three socio-economic classes, between the five age groups, between the two genders, and between the six stages of the family life cycle. The second objective was Lo identify which psychographic variables account for the differences between the demographic segments of the population.
Methodology
The first survey was conducted in the Metro Manila area in December 1983, with a sample of 2100 respondents. Face to face interviews were conducted with equal numbers (N = 70) of males and females, of the five age-groups ranging from 12-19 years old to 40 years old and above, and of the socio-economic classes AB, C and DE. The second survey was conducted in Metro Manila in February/March 1985, with a sample of 530 limited to females.
COPING STRATEGIES FOR ESSENTIAL ITEMS OF LOWER-INCOME HOUSEWIVES
ELIMINATION OF NON-ESSENTIAL ITEMS BY LOWER-INCOME HOUSEWIVES
The multi-stage probability sampling method was based on a prelisting of households by socioeconomic classes in each of the primary sampling areas (PSA) of approximately 200 homes each. Ten households were randomly selected in each PSA to be included in the survey, and the respondent was chosen from the household members using a stratified selection guide. The total base of the study was comprised of 700 households each for the AB, C, and DE classes.
The first survey examined eleven psychographic variables; namely, gender awareness, sociability, health consciousness, status consciousness, stress and anxiety, traditionalism, life independence of judgement, product loyalty, and cost consciousness. The second survey included community involvement as the twelfth variable. The inventory consisted of ten attitude statements for each of the psychographic variables, presented in Pilipino and in English. The statements were written on separate cards which were randomly shuffled for each respondent. The responses were measured on a linear, unmarked scale without a neutral point, which merely stated the bipolar meanings of ''agree strongly" and "disagree strongly" at either of the two ends. The respondents placed the mark ''X" on the appropriate place on the line, which was later measured by its distance from the poles by using a standardised scale of 20 points.
The statistical analysis was performed on the total scores for the Len statements of each psychographic variable. Each respondent was categorised according to the four demographic factors. Using the SPSS computer program, discriminant analysis distinguished statistically between the categories of the four demographic factors by using the twelve psychographic measurements as possible discriminating variables. The means and standard deviations for each of the psychographic variables for all of the demographic categories were calculated to explain the direction of the significant differences.
The Findings of Survey 1
The data analysis verified that there are differences due to the psychographic variables, between the three SEC classes, between the two genders, between the five age-groups, and between the six FLC stages. Summarised in Table 9, the findings revealed that the psychographic differences between the SEC, age, and gender categories are statistically significant beyond the 0.001 level; and the level of significance for FLC is 0.005.
1983/84 SURVEY ON THE PSYCHOGRAPHIC DIFFERENCES OF DEMOGRAPHIC CATEGORIES AMONG THE TOTAL POPULATION IN METRO MANILA
The specific psychographic variables which account for the differences between categories depends on which of the demographic factors is examined.
The standardized discriminant function coefficients (Table 9) indicated that Filipinos of either sex and of any age can be distinguished as belonging to the AB, C, or DE class mainly through the degrees of their sociability, stress and anxiety, traditionalism, life satisfaction, and status consciousness. The upper-class AB respondents were more sociable, more traditional, more satisfied with life, and more status conscious than those who belong to the middle-or lower classes. The lower-class respondents were more vulnerable to stress/anxiety.
The five age-groups included in the survey were as follows; 12-19 years old, 20-24 years old, 25-29 years old, 30-39 years old, and 40 years old and above. The levels of sociability, cost consciousness, and self-confidence accounted for the differences between age-groups to a greater extent than any other psychographic variable. Most sociable were the 20-24 year olds, with sociability decreasing with age. How ever cost consciousness increases with age. The Most self--confident are those in the older segment, while the least self-confident are those in the youngest segment.
Gender differences were shown to be mainly in the levels of sociability, gender, awareness, self -confidence, cost consciousness, and stress and anxiety. Males are more sociable, more self-confident, and more vulnerable to stress/anxiety. On the other hand, females are more aware of femininity/masculinity, and more conscious of cost.
The FLC stages were categorised to be respondents who lived in households alone, with pre-school children, with primary-school children, with high-school children, with adult children, and with other adults but no children. The stages can be distinguished in terms of cost consciousness, sociability, self confidence, and status consciousness. People who were alone or without children were the most conscious of cost and of status. Filipinos who live alone were the most sociable, and those who are with primary school children the least sociable. The later stages of the FLC was associated with greater self-confidence.
The Findings of Survey 2
The Second study verified that among females psychographic differences exist for SEC and age, but not for FLC. As shown in Table 10, the discriminant functions were statistically significant beyond the 0.001 level for SEC and age. Similar to the findings of the first survey, the psychographic differences which discriminate between the SEC categories are dissimilar in their importance from those which distinguish between age-groups.
The results indicated that females in the AB, C, or DE classes differ in their stress/anxiety, sociability, life satisfaction, product loyalty, and traditionalism. Females in the middle and lower classes are more vulnerable to stress/anxiety. Upper-class females are more sociable, more satisfied with their lives, more prone to product loyalty, and more traditional than the C and DE class females.
1985 SURVEY ON PSYCHOGRAPHIC DIFFERENCES OF DEMOGRAPHIC CATEGORIES AMONG FEMALES IN METRO MANILA
In order of importance, the psychographic variables which discriminate between age-groups are cost consciousness, community involvement, stress/anxiety, life satisfaction, and traditionalism. The older women were found to be more conscious of cost, less Satisfied with life, and more vulnerable to stress/anxiety. The younger women (12-29 years old) expressed more involvement with the community, and more traditional beliefs.
Confronted by a worsening economic crisis, marketing management in the Philippines resorted to innovative survival tactics. Risk-oriented moves included promotional activities that offer entertainment as added value to purchase, the down-sizing of major brands, and the introduction of substituLe products positioned at a pricerange lower than leading brands. At such an early stage of implementation, the success of these marketing strategies can only be surmarised, by drawing implications from the psychographic profile of the Filipino consumer.
The use of entertainment as a promotional vehicle targets the lower socio-economic class who comprise the majority of the market. Such attempts draw its popularity from the present economic situation in which entertainment and other social activities are luxuries very few can afford, and hence have been eliminated by almost all DE households (Roberto, 1984, 1985). Psychographic data yielded evidence that the lower class can be characterized as less satisfied with life, less sociable, less traditional and more stressed/anxious than the upper-and middle-class minority. Free entertainment may be the only source of a social life for the poorer consumers, as well as providing novel diversions away from a life that is unsatisfying and stressful. Therefore unconventional promotional gimmicks could effectively elicit grass-roots involvement with products beyond mere usage, functioning as a psychological tool to enhance product awareness and loyalty.
Product loyalty was found to be more typical of the upper-class consumer, rather than of the lower classes or any other demographic category. However as rapid inflation forced consumers to trade down to the lower end of the available price-range, products which had been positioned previously for the lower-income consumers became attractive as well to the upper-and middle-class segments. The new but cheaper products may prove to be successful even among the higher-income consumers, mainly because of the Filipinos' propensity to "readily switch" from one product type to another as "occasion, mood, or whatever other circumstances, triggered'' (Roberto, 1982a, p. 17). Moreover brands which accommodate dwindling household budgets may be acceptable to housewives of any income level, who as older consumers and females belong to those segments which are more cost conscious than others. For the lower class, the availability of more affordable products defers the need for total elimination of the item, by making it feasible to merely substitute (Roberto 1984, 1985).
Since the demand for higher-priced specialty brands declined, the remaining market opportunities were for products that offered more tangible value for less money. Roberto (1982a) proposed that product attributes are perceived by Filipino consumers either as dissatisfiers which as the minimum requirements causes product dissatisfaction when absent, satisfiers which enhance satisfaction when present, and residuals which were nonessential attributes. For example, in Roberto's study, ''easily lathers" and ''cleans hair'' were the only two dissatisfiers out of Len shampoo attributes, and the single satisfier was "does not hurt eyes''. Hence , it can be argued that simpler, inexpensive substitutes of f er the dissatisfier attributes without the added costs of satisfier or residual attributes. Ice-drops may show better market performance than regular ice cream during the inflationary period, simply because it provides the dissatisfier attributes of "cold refreshment'' and ''good flavour" at a far lower price.
Smaller product sizes enable consumers to cope through usage-economization, and defer substitution or elimination of the item. For example, single-usage packets of shampoo or toothpaste permit the infrequent usage (e.g. special occasions) among low-income consumers who are known to convert to ordinary bath/laundry soap in place of shampoo and to salt instead of toothpaste. Down-sizing could encourage trial usage by minimizing monetary risk, as well as sustain brand loyalty by reinforcing consumers who are "hiyang'' or ''sanay" to the brand through the maintenance of usage per se. ..Hiyang" pertains to the tendency of Filipinos to develop a sense of unique compatibility with a particular product, and "sanay" means a trust in the product borne of habitual usage over Lime (Roberto, 1982a). Furthermore smaller packaging may be especially convenient for housewives who, as the purchaser of household goods, have to satisfy the varied preferences of j-he members of the typically large Filipino household without repressing her cost consciousness.
Small packaging units conform to the traditional ''tingi-tingi'' system of small corner outlets called the "sari-sari store" which sell cigarettes by the stick, vinegar by the cup, and many household items repackaged into small plastic bags. Downsizing seems to be an appropriate response to the consumers need for tighter control over cash outlays. As such down-sizing could relieve the stress of purchase occasions for the majority of Filipino consumers who, in belonging to the low-income segment, are particularly vulnerable to anxiety-
Product survival during the economic decline could be ensured by such marketing strategies, through the evident sensitivity to the concerns of consumers. Nonetheless the impact of the described tactics should be evaluated directly, aft~r the present introductory period. In particular research should investigate the long-term changes in consumership patterns, and the possible ramifications of such developments when the market returns to normal.
Advertising Age's Focus ( 1984) Far East Media and Marketing Guide, Grain Communications, London.
Carrion, Marcial, S. (1985), "PBA Updates: Smaller Ad Pie'', Business Day, Metro Manila, 27 February.
Concepcion, Antonio V. (1983a), ''Standardization of tile Socio-Economic Classification of Philippine Homes", Paper presented to the General Membership Meeting, Marketing and Opinion Research Society of the Philippines Inc., 4 March.
Concepcion, Antonio V. (1983b) ''Standardization of the Socio-Economic classification of Philippine Homes", Master of Business Administration Thesis, Ateneo Graduate School of Business, Metro Manila,
Del Rosario, Ramon R., Jr. (1984) ''The Financial Executive: A Nation Adrift'', Business Day, 25 July.
Kahn, Andre S. (1985), "PBA Updates: The ACR in Progress'', Business Day, Metro Manila, 5 March.
Marketing and Opinion Research Society of the Philippines, Inc. (1984), "Status of Marketing Research in the Philippines", Unpublished Report.
Quiogue, Manuel P. (1984) PBA Update: In Pursuit of Truth in Advertising", Business Day, Metro Manila, 6 November.
Philippine Survey and Research Center, 1984), Media Fact Book, Unpublished Report.
Philippine Survey and Research Center Media Fact Book, Unpublished Report (1983-1985),
Quiogue, Manuel P. (1984) "PBA Update: The Last 7 Months", Business Day, Metro Manila, 3 February.
Roberto, Eduardo L. (1982a), "Profile: The Filipino Consumer", Occasional Papers No. 4, Asian Institute of Management, Metro Manila.
Roberto, Eduardo L. (1982b), "How Do You Motivate Consumers", Occasional Papers No. 5, Asian Institute of Management, Metro Manila.
Roberto, Eduardo L. (1984), "Coping with Difficult Times: The Case of Metro Manila Downscale Consumers", Occasional Papers No. 8, Asian Institute of Management, Metro Manila.
Roberto, Eduardo L. (1985), "Consumer Coping with Difficult Times: One More Time", Occasional Papers No. 9, Asian Institute of Management, Metro Manila.
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