1

IMPACT OF PRICING STRATEGIES ON SALES PERFORMANCE OF

CLOTHING BUSINESSES IN SINILOAN PUBLIC MARKET

A research
presented to the Faculty of
Senior High School Siniloan Integrated
National High School

In Partial Fulfillment
of the Requirements for the
Senior High School Applied Research Course

DAYRIT, NIÑA LARRAINE Q.

BUENA, LENILYN B.
PARBA, LAUREN KENJI F.
SERRANO, LANDER JHUDIEL D.
2025
 2

TABLE OF CONTENTS
​ Page
Preliminaries

Title Page​ i
Approval Sheet​ ii
Acknowledgment​ iii
Dedication​ iv
Abstract​ v
Table of Contents​ vi
List of Tables​ viii
List of Figures​ ix

Chapter
​ 1​ PROBLEM AND ITS BACKGROUND​ 1

​ ​ Introduction​ 1
​ ​ Background of the Study​ 1
​ ​ Statement of the Problem​ 2
​ ​ Hypotheses of the Study​ 2
​ ​ Review of Related Literature and Studies​ 2
​ ​ Theoretical Framework​ 2
​ ​ Research Paradigm​ 2
​ ​ Significance of the Study​ 3
​ ​ Scope and Limitation of the Study​ 3
​ ​ Definition of Terms​ 3

​ 2​ METHODOLOGY​ 6

​ ​ Research Design​ 6
​ ​ Setting of the Study​ 6
​ ​ Sampling and Subject of the Study​ 6
​ ​ Research Instrument​ 7
​ ​ Research Procedures​ 7
​ ​ Statistical Treatment of Data​ 7

​ 3​ RESULTS, ANALYSIS AND INTERPRETATION OF DATA​ 8

​ 4​ SUMMARY, CONCLUSIONS AND RECOMMENDATIONS​ 9

​ ​ Summary of Findings​ 9
​ ​ Conclusions​ 10
​ ​ Recommendations​ 10

Bibliography​ 11
 3

Appendices​ 12

​ Questionnaires​ 13
​ Letter and Other Research Materials​ 14
​ Research Exhibits​ 15
​ Statistical Computations​ 16

Curriculum Vitae​ 17
 4

ACKNOWLEDGEMENT

"I can do all things through Christ who strengthens me."

-​ Philippians 4:13

To the people who allowed us to conduct our research, to those who

printed our research, and to those who provided moral support throughout this

study, thank you. Without you, this manuscript would not have been possible.

First and foremost, we thank GOD for guiding us from the beginning to the

end. He led us and gave us the strength—the strength to endure the sleepless

nights we faced during our research.

We would like to extend our gratitude to the following individuals and groups who

made this research possible:

Dr. Kristine P. Reyes, Principal of Siniloan Integrated National High

School, for her blessings, support of this research, and exemplary leadership.

Dr. Icy Princess A. Trencio, for her guidance and support, and for

granting us permission to conduct this research.

Dr. Melina V. Kahulugan, our 3 I’s adviser for her continuous guidance,

encouragement, and thorough evaluation of our work, which greatly improved its

quality.
 Mr. Richard I. Tuala, MAT, Statistician, for his assistance in explaining the

statistical tools and ensuring the accuracy of the data presented in this study.

Ms. Maan D. Leopando and Mr. Rogie R. Francia, Subject Specialists,

for their thorough review of our work, particularly in the field of business, and for

providing invaluable recommendations to improve the content and approach of

this study.

Mrs. Rosemarie C. Robles, Language Critic, for her expertise in refining

the grammar, structure, and language of this manuscript to achieve clarity and

precision.

Lastly, we would like to express our heartfelt gratitude to the clothing store

owners who participated in this research. Without your cooperation, this

manuscript would not have been possible. We deeply appreciate your time and

effort in answering our questionnaire and tolerating our persistent inquiries.

DEDICATION

This research work is sincerely dedicated to our teachers, classmates,

friends, fellow researchers, and those who continually encourage and guide us. It

is also dedicated to our parents, who have consistently supported us both

financially and emotionally. Above all, we dedicate this research study to our

Almighty God for granting us the wisdom and determination to accomplish this

endeavor.

Researchers

- Buena, Lenilyn B.

- Dayrit, Niña Larraine Q.

- Parba, Lauren Kenji F.

- Serrano, Lander Jhudiel D.

 CHAPTER 1

PROBLEM AND ITS BACKGROUND

Introduction

Price is one of the most flexible marketing mix elements, directly

influencing a company's profitability and cost-effectiveness in the short term. A

business can use it to differentiate itself from its competitors, which is also a

major determinant of profitability (Simon et al., 2008). A company's ability to keep

its competitive advantage over its competitors will depend on the pricing it sets

(Dutta et al., 2003). Ultimately, an organization's competitive success relies not

just on profitability or market share but on the broader concept of

competitiveness, which reflects an ability to consistently outperform others in the

same industry (Lu et al., 2006).

To sustain and establish this competitive advantage, companies must

carefully monitor their pricing strategies to efficiently regulate cost efficiency,

profitability, and market position. Pricing must be done accurately since it defines

how businesses can simultaneously sell products to customers needing

affordable but quality products (Bregman, 1995; Nagle & Hogan, 2007). Thus,

pricing is not merely a financial decision but a strategic one, directly impacting

the long-term sustainability of a business. To set appropriate prices, companies

must understand customer perceptions of value, define pricing objectives, and

continuously monitor their market position in terms of competition (De Toni et al.,
2017; Hinterhuber & Liozu, 2014). In doing so, businesses are better equipped to

manage costs and achieve consistent returns, supporting profitability and

competitive positioning.

Despite its importance, pricing is often underexplored in marketing

research. Much of the focus within marketing literature is directed toward other

elements, such as product development, distribution, and promotional strategies,

whereas pricing usually gets dealt with less rigorously (Avlonitis & Indounas,

2006). This limited focus on pricing can lead many companies to make pricing

decisions based on intuition or managerial experience rather than systematically

analyzing costs and market trends (Lancioni, 2005). Studies indicate that only a

small percentage of managers treat pricing as a strategic tool, and fewer than 2%

of published marketing articles focus on pricing strategies (Liozu & Hinterhuber,

2012). This gap presents an opportunity to investigate further how a strategic

approach to pricing can enhance business performance, especially in smaller or

local markets, where such considerations may be overlooked.

This investigation examines how pricing strategies are implemented in the

clothing retail sector within Siniloan Public Market. Unlike large corporations that

often have well-structured pricing models, many small retailers in Siniloan rely on

informal pricing strategies influenced by immediate market conditions and

personal experience. These businesses deal with certain challenges, such as

intense competition from local and regional sellers, making effective pricing
strategies vital for their success. The study aims to understand the pricing

strategies of these owners and assess how these strategies impact their sales

performance, ultimately helping them improve their competitiveness in the

market.

Background of the Study

The clothing business sector plays a significant role in both global and

local economies. In 2024, the global apparel market was valued at approximately

$1.79 trillion, contributing 1.63% to the global GDP (Global Apparel Industry

Statistics, 2024). The Philippines’ garment industry generates around $1 billion

annually in exports, positioning the country as a prominent player in the regional

apparel market (Asia Garment Hub, 2024). However, clothing owners, especially

those operating in public markets, face notable challenges in implementing

competitive pricing strategies that could help them distinguish themselves and

boost sales. These challenges were exacerbated by the COVID-19 pandemic,

which led to a 40% drop in exports, putting the livelihoods of over 600,000

workers at risk and forcing many small businesses to close (International Labor

Organization). Consequently, many small clothing shops were forced to shut

down during strict lockdowns imposed across the country, leading to substantial

revenue losses for local garment makers and sellers (Ibañez, 2020).
 In the post-pandemic environment, clothing owners face intensified

competition from larger market players. This is reflected in the Philippine apparel

market’s Herfindahl-Hirschman Index (HHI), which increased from 2428 in 2017

to 2513 in 2023, signaling a rise in market concentration (International Labor

Organization). With evolving consumer expectations, retailers are under growing

pressure to deliver high-quality products and exceptional shopping experiences

across both online and physical stores (Kurniawan & Arvitrida, 2021). In local

markets, Clothing owners must refine their strategies, with pricing playing a

central role in attracting customers (Abeleda, 2020). The Siniloan Public Market

in Laguna offers a suitable setting to investigate the role of pricing strategies

among clothing owners. As it consists of numerous stalls close to each other, the

market creates a highly competitive environment where pricing strategies are

essential for store owners to stand out and attract customers. Many store owners

often rely on traditional or competitor-based pricing methods, lacking systematic

approaches to optimize prices in response to changing consumer demand and

market conditions, as noted by Kochevoi, Kolesnіk, and Vlasova (2024). Price

often serves as a key differentiator in this highly competitive marketplace (Simon

et al., 2008). Sales performance, defined as the total number of products sold

and the resulting profit after expenses, is a critical indicator of business

performance, reflecting customer demand and operational efficiency (Hyginus et

al., 2019; Igwe et al., 2020). Therefore, choosing the right pricing strategy is

essential for enhancing sales outcomes and ensuring long-term sustainability.

 In India, most businesses have failed to exist for a long time due to

unstable product prices, resulting in decreased sales and difficulty attaining

profitability (Adeyemi et al., 2013). In the Philippines, particularly within local

markets, clothing business owners encounter similar challenges in maintaining

profitability (Milewska, 2022). According to (Heidhues and Koszegi, 2004), poorly

set prices can lead to profit losses. During pre-interviews with clothing business

owners in the Siniloan Public Market, many reported issues with profitability due

to lower-priced offerings from competitors, which negatively affected their

long-term profit potential. Therefore, this study aims to investigate whether

specific pricing strategies positively impact profitability among selected clothing

owners. This study will explore the relationship between various pricing

strategies, based on Kotler and Keller's (2016) studies, namely

competition-based, cost-based, and discount pricing, and their impact on sales

performance among clothing owners in the Siniloan Public Market. Additionally,

the study will examine how the owner’s profiles influence pricing decisions and

sales outcomes, offering valuable insights to small business owners seeking to

have a pricing strategy for business growth in this competitive market.

Statement of the Problem

The primary objective of this study is to analyze the impact of various

pricing strategies on the sales performance of clothing businesses in the

competitive market of Siniloan Public Market. This study aims to answer the

following research questions:

1. What is the profile of respondents in terms of:

1.1 Age

1.2 Gender

1.3 Educational Background

1.4 Years of Operation

1.5 Monthly Net Income

2. What is the level of pricing strategy adopted by different clothing businesses in

terms of:

2.1 Cost plus pricing

2.2 Competitive pricing

2.3 Discount pricing

3. What is the sales performance of clothing businesses in terms of:

3.1 Daily Sales

3.2 Daily sales volume

3.3 Number of customers

3.4 Customer acquisition

4. Is there a significant relationship between the profile of respondents and

pricing strategy?

5. Is there a significant relationship between the profile of respondents and sales

performance?

6. Is there a significant relationship between Pricing Strategy and Sales

Performance?

Hypotheses of the Study

This part shows the researchers' assumptions about the data collected,

which aim to answer the research problems identified in the study.

​ Ho1: There is no significant relationship between the profile of

respondents and pricing strategy.

Ho2: There is no significant relationship between the profile of

respondents and sales performance.

Ho3: There is no significant relationship between pricing strategy and

sales performance.
Review of Related Literature and Studies

Age

A study by Kristiansen et al. (2003) concluded that age is critical to

entrepreneurs' business success. In the same way, Sleuwaegen and Goedhuys

(2002) identified that age affects a company's growth trajectory, where

experienced entrepreneurs are more likely to use strategies focused on

sustainable income. Azoulay et al. (2018) found that the average age of founders

of growing businesses is 45 years. Zhao et al. (2021) found that entrepreneurs

who start businesses in their 50s achieve success comparable to those in their

20s. Older owners typically possess more excellent retail experience, which can

lead to more effective pricing strategies that align with market demands (Judd,

2015). The age of business owners can impact their pricing strategies, with older

owners often focusing on long-term relationships and value creation rather than

short-term gains (Gunaydan, 2023). Their market understanding may lead to

better performance compared to younger owners (Milan et al., 2016). On the

contrary, young entrepreneurs recognize the importance of strategic pricing but

may still prioritize short-term profitability over long-term brand positioning

(Kawira, 2021). Young entrepreneurs focus on enhancing product value to attract

customers rather than relying solely on competitive pricing (Muhamad et al.,

2023). Many young entrepreneurs struggle with limited resources, impacting their

ability to implement effective pricing strategies (Noor & Abu Hanifah Ayob, 2021).
Gender

Veciana et al. (2005) stated that males are more inclined to pursue

entrepreneurial activities than their female peers. On the contrary, based on

recent academic studies, Klapper and Parker (2011) contended that both men

and women enter entrepreneurship across different industries due to constraints

in capital, increasing discrimination, and educational barriers. Regarding industry

background, Diaz-Garcia and Jimenez-Moreno (2009) highlighted that women

entrepreneurs excel in the retail and service sectors, unlike men. Research by

Miller and Parker (2020) explains that LGBTQ-owned businesses often have

special skills in selling to different types of customers. LGBTQ+ entrepreneurs

often navigate their identities in business, which can affect their pricing decisions.

For instance, they may price products higher to reflect their brand's values or to

target niche markets that appreciate inclusivity (Badgett et al., 2019). LGBTQ+

business owners utilize diverse marketing strategies that consider the

micro-segmentation of their audience, allowing for tailored pricing that resonates

with specific consumer habits and lifestyles (Agustian et al., 2023)

Educational Background

A business owner's education level impacts their sales performance and

pricing strategies. Higher education levels correlate with more successful

strategic decision-making, including pricing strategies. Sinha (1996) investigated

education's role in entrepreneurial success. Charney and Libecap (2000)

identified education as a source of entrepreneurial competencies.

Advanced-educated owners often use pricing strategies that improve sales

(Sonfield & Lussier, 2014). Research indicates a strong relationship between

education and business prosperity, implying knowledgeable proprietors are more

adept at handling market obstacles and maximizing pricing (L.M.C.S. Menike,

2018); Al-Zubeidi, 2005). Owners with higher education tend to engage more in

marketing research, which informs their pricing strategies (Amoakoh, 2014).

Educated owners demonstrate superior advertising and pricing strategies,

enhancing firm performance (Ghouri et al., 2012). They tend to understand

customer behavior and market dynamics, allowing for aggressive pricing

strategies that attract customers (Kumar, 2014).

Years of Operation

Studies show that businesses that survive the first four years have a

significantly higher chance of long-term survival and growth (Knaup & Piazza,

2007). Owners can make better price decisions by having a better understanding

of cost structures and market demands after operating for a longer period of time

(Manuere et al., 2015). Strategic pricing capabilities are improved by experienced

owners' greater ability to respond to changes in the economy and competition by

adjusting prices (Liang, C. & Dunn, P. (2014). According to studies, company

owners that continue their operations for more than five years typically adopt
strategies focused on financial planning, customer retention, and effective

operational procedures to guarantee long-term success (Jakes & Burrus, 2022).

Businesses with more years of operation often focus on profit maximization

through strategic pricing, as they have established customer bases and brand

recognition (Larentis et al., 2015). Limited experience leads to inadequate market

analysis, affecting pricing decisions (Cant et al., 2016). Wanigasekara and

Surangi (2010) argued that real experience might be more important than formal

education in determining effective pricing strategies because it can promote

intuitive decision-making in dynamic markets.

Pricing Strategy

Pricing strategy is a vital aspect of business management that directly

impacts revenue generation, market positioning, and profitability (Gray, 2024). A

strategic pricing approach enables businesses to differentiate themselves from

competitors, which is essential for maintaining a unique market presence

(Hogevold et al., 2021). Integrating competitive strategy with pricing decisions

enhances profitability and market responsiveness (Cressman, 2012). In highly

competitive markets, strategic pricing can prevent price wars and maintain

profitability (Bourdon, 1992). Pricing is one of the factors that influences

consumer purchasing decisions, often deterring potential buyers in the market

(Hameed et al., 2012). Pricing strategies are integral to marketing, impacting

consumer behavior and competitive positioning ("On the Importance of Pricing

Strategy in Marketing Strategy," 2023). Additionally, flexible pricing strategies,

such as offering discounts during off-peak seasons, allow businesses to

effectively manage demand and optimize sales and inventory (Survey Point

Team, 2024). The purpose of pricing strategies is to maximize profits by

balancing production costs with customers' perceived value, thereby covering

expenses and ensuring maximum returns (Novkovic, 2023).

Cost-Plus Pricing

According to Han, Zhang, and Li (2024), ost-plus pricing is an easy way

to optimize companies' profit objectives through accurate demand forecasting.

Their approach advises using caution when estimating expenses and forecasting

demand to pay bills and meet profit targets. Cost-plus pricing is more flexible and

widely used, but, as Hanson (1992) shows, it is a dynamic process in which

businesses adjust their prices in response to changing market conditions and

cost problems. Prices are set based on production costs plus desired profit

margins, ensuring that costs are covered by business revenue (Kochevoi et al.,

2024). Cost-plus pricing, as explained in Bragg's (2016) research, is a

cost-based approach that determines the expenses of goods and businesses.

The cost can be estimated by considering the item’s expenses. Furthermore,

cost-plus pricing is a simple and effective technique, as it ensures that all costs

are covered before benefits are calculated (Godfrey, 2016).

Competitive Pricing

As Gupta, Ivanov, and Choi (2020) noted, the clothing industry is

incredibly competitive. Competitive pricing is important. This strategy, which

includes a variety of activities and steps, includes setting prices based on what

competitors are offering, as explained by Gerpott and Berends (2022). Ali and

Anwar (2021) point out that this pricing approach can have a big impact on

customer behavior and frequently results in higher purchases. Its responsiveness

to competitors' prices is one of its main benefits, but it also has disadvantages. In

particular, it frequently ignores aspects of demand that may impact sales.

Additionally, when businesses prioritize competitive pricing, there is a greater

chance that price wars will break out in the marketplace (Heil & Helsen, 2001). In

the end, this strategy focuses on adjusting prices relative to rivals to maintain

market share and attract especially price-sensitive customers (Kochevoi et al.,

2024).

Discount Pricing

Discounting is a popular marketing strategy that attracts customers by

providing a price drop from an earlier price to encourage fast purchases, claim

Armstrong and Chen (2013). Discounting helps businesses compete with other

sellers in addition to bringing customers, according to Arvi and Pamuji (2024).

Customers are more prone to make impulsive purchases when influenced by

their lifestyle and the superior quality of a product, particularly when attracted by
price breaks, according to Bunyamin and Hadidu (2021). Because of this,

discounting is an effective strategy for promoting sales. A price discount is a

prevalent marketing strategy that provides extra value or incentives, encouraging

consumers to purchase promoted products immediately (Yin & Huang, 2014).

Sales Performance

Sales performance is a central measure of business success, with its

impact extending across revenue generation and competitive positioning.

Organizations that improve sales performance enhance their service, quality, and

customer satisfaction, setting themselves apart in competitive markets (Amyx &

Bhuwan, 2009). High sales performance is important for individual and team

productivity and contributes significantly to the organization’s overall growth

(Evelyn et al., 2017). An effective sales strategy can increase market share and

profitability, positioning businesses to succeed in competitive environments.

Furthermore, organizations that continuously analyze their sales data are better

equipped to identify successful strategies and areas for improvement (Rodriguéz

et al., 2023).

Daily Sales

Daily sales of a business refer to the total revenue generated from sales

transactions within a single day. This metric is crucial for assessing business

performance and making informed operational decisions (Hoon, 2017). Garduce

et al. (2024) found that the majority of business owners believe that their prices

impact daily sales, which in turn affects profitability. (Kumar & Pandey, 2017;

Phumchusri, Kosawanitchakarn, & Srimook, 2022) highlight that there's an

impact of pricing strategies on daily sales by manipulating consumers through

the pricing strategy. The study suggests that this pricing strategy not only

increases immediate sales but can also enhance customer loyalty and repeat

purchases.

Daily Sales Volume

Sales volume is the total number of units sold in a specific reporting

period. Kumar (2022). The sales volume serves as an indicator for observing

developments in sales (Suartini et al., 2018). Devendra and Devrajaurs (2023)

discovered that price strategy directly correlates with sales volume. Kotler and

Armstrong (2006). Assert that price is the only element in marketing that

generates revenue, playing an important role in driving sales volume. Akombo

(2011) emphasizes pricing decisions, which affect consumer purchasing power

and can directly influence sales volume. Tafonao et al. (2024) expand this

perspective through marketing strategies such as promotions combined with

pricing strategies, which can increase their sales volume.

Number of Customers

Gupta and Lehmann (2003) state that customers are valuable intangible

assets and are the strength of any business. Customers who consume products

or services for their use (Laban, P.R. (2003) are essential to a business, keeping

current customers and attracting new ones (Ranabhat, 2018). Customers’ ages,

incomes, educational backgrounds, and interests vary greatly, making it

important for businesses to track and respond to consumer feedback. Doing so

can improve their reputation, increase client trust, and promote growth and

success (Patil & Rane, 2023). According to Huiliang et al. (2021), there is a

correlation between product pricing and consumer behavior, indicating that

pricing impacts decisions to buy. Codini, Saccani, and Sicco (2012) showed how

various pricing strategies influence consumer perceptions and attract customers.

Jia, X., Li, W., & Gao, W. (2021) further emphasized that if supplier firms motivate

their major customers, they can gain a significant competitive advantage,

boosting sales performance.

Customer acquisition

Customer acquisition is a major objective for businesses and is often the

quickest method of expanding their customer base (Bano, 2024). According to

Hormozi (2021), businesses must price "competitively" to acquire clients and

maintain that pricing to retain them. The researcher emphasized that gaining and

keeping prospects is only possible if a salesperson is vigilant about clients

commoditizing the business through competitive pricing. Numerous studies have

demonstrated the significant impact that pricing strategies have on attracting new

customers to retail businesses. Significant price reductions can greatly increase

buying intentions for retailers to attract price-conscious consumers, particularly in

developing nations like India (Saritha et al., 2021). Aggressive pricing strategies

are frequently well-received by consumers, which can boost foot traffic and

revenue. (Kumar, 2014). Store brands, typically priced lower than national

brands, can attract cost-conscious consumers, increasing customer acquisition

and enhancing the retailer's market position (Huo, 2021).

Net Income

Theoretical Framework
Kotler's Pricing Theory

Introduced in 1972, Philip Kotler's Pricing Strategies Framework is one of

the foundational theories in marketing. According to Kotler's theory, pricing

serves a dual purpose: it acts as a revenue tool and a strategic element

influencing consumer perceptions of a product's value and quality. This

framework states that pricing strategies shape a product's competitive position in

the market, which is particularly important in industries where multiple

businesses offer similar products. In connection with the theory of this research,

the researchers will determine whether clothing businesses implementing

competitive pricing, cost-plus, or discount pricing approaches affect sales

performance.

Research Paradigm

​ The Research Paradigm showed the relationship between independent,

dependent, and moderating variables, which helped us understand how pricing

strategies affected sales performance in the Siniloan Public Market. The first box

represented the different pricing strategies, including cost-plus pricing,

competitive pricing, and discount pricing. The second box showed the sales

performance, which included daily sales, daily sales volume, number of

customers, and customer acquisition. This design helped the researchers

determine if there was a relationship between these variables. The third box

represented the moderating variables, which included business owners' age,

gender, educational background, and years of operation. These moderating

variables may have influenced the relationship between the independent and

dependent variables.

Figure 1. The Conceptual Paradigm Showed the Relationship Between

Independent, Dependent, and Moderating Variables.

Significance of the Study

The following entities will benefit from this study:

Owners of Clothing Businesses in the Siniloan Public Market. The

research will help the owners understand the impact of various pricing strategies

on their sales performance. The findings of this study will enhance their ability to

compete and provide a deeper understanding of the competitive landscape in the

town market of Siniloan.

New Entrepreneurs. New entrepreneurs who wish to establish a clothing

store in the town market of Siniloan will also benefit because this study will

provide a clear guide on the successful pricing strategies current owners use.

Using those pricing strategies will also help them learn how sales performance

works in a competitive market.

Consumers. Consumers will also benefit from more affordable clothing

prices. Owners might implement enhanced pricing strategies and offer discounts

or competitive prices that align with consumers' budgets, improving consumer

satisfaction and loyalty through better value offerings.

Future Researchers. This study will serve as a guide for future studies

related to the topic. Researchers can expand the scope and consider other

aspects of this field. The findings may be a primary reference for future

researchers who want to conduct similar research.

Scope and Delimitations

This study focused on the impact of different pricing strategies clothing

business owners used in the Siniloan Public Market, such as cost-plus pricing,

discount pricing, and competitive pricing, on their sales performance. This was

assessed in terms of daily sales, sales volume, the number of customers, and

customer acquisition. In addition to these variables, we also considered

moderating variables that may have affected the relationship between the

independent and dependent variables, such as age, gender, educational

background, and years of operation. The research was conducted exclusively at

Siniloan Public Market in January 2025, using purposive sampling for the clothing

sector only, which resulted in a limited sample size that could have affected the

generalizability of the findings. A descriptive correlational design was used to

explore the relationship between the independent and dependent variables while

maintaining the natural conditions of the businesses. Data was gathered through

questionnaires, which provided insights into the impact of different pricing

strategies on sales performance. The study aimed to help clothing business

owners understand the effects of different pricing strategies on their sales

performance.

Definition of Terms

The terms in this study are defined to clarify their meaning as intended by

the researchers and to ensure a shared understanding for all readers.

Business Owners: Individuals who own and operate clothing stores in the

Siniloan Public Market, responsible for the daily management and

decision-making within their businesses.

Competitive Pricing Strategy: A pricing strategy that bases the pricing on the

prices set by competitors of a clothing business in the Siniloan Public Market.

Cost-Plus Pricing: A type of pricing that adds the total cost of clothing materials

to the markup percentage, resulting in the selling price of the clothing in the

business.

Customer: An individual who purchases and uses clothing sold by businesses in

the Siniloan Public Market.

Customer Acquisition: The process of attracting and acquiring new customers

to a clothing store in the Siniloan Public Market. This involves strategies and

actions aimed at converting prospects into paying customers.

Daily Sales: The total income generated from clothing sales within a single day

by a clothing business in the Siniloan Public Market.

Discount Pricing Strategy: A type of pricing strategy that reduces the original

selling price of clothing in the business. It aims to attract new customers to the

clothing business in Siniloan.

Pricing Strategy: Refers to the various methods or approaches a business

owner uses to set clothing prices. It involves thorough computations and

formulas to determine the appropriate prices of the clothes.

Sales Performance: Refers to the effectiveness of the clothing business in the

Siniloan Public Market in terms of sales or revenue generated by the business.

Sales Volume: The quantity of clothing sold to customers in the clothing

business within a day in the Siniloan Public Market.

 CHAPTER 2

METHODOLOGY

​ This chapter presents the methods, design, setting, subject, research

instrument, procedures, and statistical treatment of data employed to ascertain

the theory of the investigation.

Research Design

​ The quantitative research method utilized in this study is

descriptive-correlational research. This approach establishes relationships

between different variables and quantifies these relationships appropriately.

Specifically, this study will examine how various factors, such as the profiles of

clothing business owners, relate to their pricing strategies and sales performance

by employing correlational methodology.

According to Creswell (2014), quantitative research is a systematic

method of study used to test theories by examining the relationships between

variables using numbers. This method enables researchers to measure variables

and analyze their statistical relationships. According to Polit and Beck (2012),

descriptive correlational research does not change things but focuses on

observing and describing the relationships between variables. In the context of

our study, it is helpful for real-life situations, such as businesses, where you

cannot change the events but can still observe the patterns and relationships.
 The researchers use the descriptive-correlational method to identify the

level of correlation between varied pricing strategies and sales performance at

Siniloan Public Market. Through the analysis of pricing methods such as

cost-plus pricing, competitive pricing, and discount pric­ing, this study examines

how these methods impact sales performance, such as daily sales, sales

volume, number of customers, and customer acquisition. This method is

essential because it provides valuable insights to the clothing business owners

into which pricing strategy works well without changing their method in an

experiment. Understanding these relations in a competitive market can help

owners decide with more knowledge how they should price their products.

Setting of the Study

The study was conducted at the Siniloan Public Market in Siniloan,

Laguna, Philippines. This location was chosen because it was a town market with

many local businesses, including various clothing stores, competing closely in

the same market. This active market provided the perfect place to gather data

and analyze how pricing strategies affected sales performance.

Among the owners offering products to local consumers, tourists, and

people from neighboring towns, entrepreneurs continuously adapted to different

pricing strategies to remain competitive and compete with other sellers. These

characteristics allowed researchers to select and examine how pricing strategies

affected their sales performance in a competitive environment.

Sampling and Subject of the Study

The respondents in this study are clothing store owners in the Siniloan

Public Market. They manage their businesses and make decisions, especially

regarding pricing strategies and sales monitoring. The participants vary in age,

gender, level of education, and years of operation. To ensure that these various

characteristics are adequately represented in the study, non-probability purposive

sampling will be used. According to Etikan et al. (2016), purposive sampling is a

technique where the researcher selects participants based on their relevance to

the study's objectives. This method is suitable when researchers have a clear

idea of the characteristics or attributes they want to study and want to select a

sample representative of those characteristics. (Dovetail Editorial Team; 2023)

In this study, the selected participants are clothing business owners who

have registered businesses in the market and have been actively operating their

stores for at least four to five years in the market to ensure sufficient market

pricing experience. When the list is complete, the researchers will personally visit

the qualified participants to invite them to participate. Their participation is

voluntary. The purpose of the study will be explained to the participants, and their

responses will be kept confidential.

Research Instrument

The researchers adapted and modified the questionnaire from the study

"Pricing Strategies and Business Performance Among Selected SMEs in Santa

Cruz, Laguna" (Aguilar et al., 2024) to better align with the study's objectives.

Questionnaires will be distributed to clothing store owners at the Siniloan Public

Market to collect quantitative data on how pricing strategies impact sales

performance within the competitive Siniloan public market. The questionnaire

used a 5-point Likert scale checklist and consisted of three parts:

The first part deals with the profile of the respondents, including age,

gender, level of education, and number of years in business.

The second part includes questions about the pricing strategies used by

clothing store owners, such as cost-plus pricing, competitive pricing, and

discount pricing. In this part, each subtopic includes five (5) questions about that

specific topic, which respondents will answer.

The third part concerns the sales performance of clothing businesses in

terms of daily sales, sales volume, number of customers, and customer

acquisition. Similar to the pricing strategy section, the respondents will answer

five questions for each sales performance using the same 5-point Likert scale.

The following scale was used to determine the owner's pricing strategy

level and clothing business sales performance.

1 = Strongly Disagree

2 = Disagree

3 = Neutral

4 = Agree

5 = Strongly Agree
Research Procedure

The research began with the development of a structured questionnaire

designed to include three primary sections: profiles of the respondents, pricing

strategies, and sales performance. The questionnaire used in this study has

been adopted and modified. A formal request letter for permission to conduct the

study was submitted to the school administration, specifying the objectives,

respondents, and methods involved. Feedback was collected, and revisions

were made if necessary. In addition, research materials were prepared to ensure

respondents were fully informed about the study, their participation rights, and

confidentiality measures.

Once permission was granted, the validated questionnaires were

disseminated through in-person outreach to the clothing business owners in the

Siniloan Public Market. Moreover, all respondents received a brief overview of

the study's purpose and confidentiality assurances. Data collection began in

January 2025. The designated research team members personally retrieved the

completed questionnaires over the course of one month to ensure compliance

with the study's timeframe and ethical standards.

Following the data collection, the questionnaires were organized based on

respondent profiles and responses, with personal information anonymized to

protect participants' identities. The data was then inputted into Excel for analysis,
providing tables, charts, and graphs to represent critical findings on pricing

strategies and sales performance. The use of statistical tools, including

descriptive statistics, Pearson's r correlation coefficient, and chi-square test

provided a thorough evaluation of whether there was a significant relationship

between the profile of the respondents, pricing strategies, and sales

performance. Finally, the results of the data analysis were interpreted to answer

the research hypotheses.

Statistical Treatment of the Data

To be able to get a definite conclusion referring to this study, the

researchers used the following statistical tools:

The profile of the respondents, in terms of age, gender, educational

background, and years of operation, was analyzed using frequency, percentage,

and rank. This helped describe the demographic characteristics of the clothing

business owners.

The different pricing strategies used by other businesses and their sales

performance in terms of daily sales, daily sales volume, the number of

customers, and the acquisition of new customers were analyzed using weighted

mean and standard deviation. This revealed the average pricing strategies and

the differences in sales performance between businesses.

 The Chi-Square Test was used to assess whether there was a significant

relationship between the profile of the respondent, specifically gender and

educational background, and the variables of pricing strategy and sales

performance.

On the other hand, the Pearson Correlation Coefficient (r) was used to

determine if there was a significant relationship between the different variables of

the profile of the respondents, which included age and years of operation, and

the pricing strategy used, as well as sales performance.

Furthermore, the Pearson Correlation Coefficient (r) was utilized to assess

if there was a significant relationship between pricing strategies and sales

performance.