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CHAPTER 1

THE PROBLEM AND ITS SETTING

Background of the Study

Street food vending has become a vital aspect of global food culture,

offering affordable and convenient meals to millions of people, especially in

urban areas of developing countries. It serves as an essential livelihood for low-

income populations and significantly contributes to the local economy (Hussain et

al., 2021). However, this informal sector faces critical challenges related to

marketing practices, food preparation, health risks, and environmental

sustainability. According to the World Health Organization (WHO, 2015), the

informal nature of street food vending often results in a lack of regulation and

oversight, which increases the risks of foodborne illnesses. Vendors frequently

operate in unsanitary conditions, lacking access to clean water, proper waste

disposal, refrigeration, and adequate sanitation facilities. These limitations make

it difficult to ensure that food served is free from pathogens such as Salmonella,

E. coli, and Listeria (Ateba & Mbewe, 2020).

In addition to food safety concerns, many street food vendors engage in

misleading marketing practices, claiming their products are "organic," "low-calorie," or

"gluten-free" without proper certifications (Garcia & Costa, 2017). Such practices

mislead consumers and may pose health risks, especially in regions where food safety

awareness is limited (Wu et al., 2019). Furthermore, the environmental impact of street

food vending cannot be ignored. The use of single-use plastics for food packaging

significantly contributes to global plastic pollution, while improper waste disposal

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exacerbates urban sanitation issues, particularly in cities with inadequate waste

management systems (Njoroge et al., 2020; Silva & Fernandez, 2018).

Globally, street food vendors in various countries encounter similar

challenges. In India, for example, vendors rely heavily on traditional advertising

methods like word-of-mouth, which limits their customer reach and growth

potential (Hussain et al., 2021). In Nigeria, poor food handling and unhygienic

food preparation conditions, compounded by a lack of access to clean water,

increase the risk of foodborne illnesses (Oluwaseun & Olajide, 2020). Similarly,

in Mexico, vendors face inadequate regulation and food safety training, leading to

a high incidence of foodborne diseases (Sánchez et al., 2020). Misleading

marketing claims, such as promoting food as "natural" or "chemical-free," are

also common, further complicating consumer trust and safety (Pérez et al.,

2018).

In Southeast Asia, countries like Thailand and Indonesia boast vibrant

street food cultures but face issues of inconsistent regulatory enforcement.

Despite efforts to enhance food safety through training programs, vendors often

lack formal food handling education, leading to persistent risks of contamination

and foodborne diseases (Hernandez & Wang, 2020; Mulyana & Rustam, 2020).

Studies highlight the need for improved infrastructure, such as access to clean

water and proper waste disposal, to address these challenges effectively

(Pongsiri et al., 2021).

In the Philippines, street food vending is integral to the economy and

culture, yet vendors face significant challenges in both marketing and food
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preparation. On the marketing side, many vendors operate informally, relying on

traditional advertising methods like word-of-mouth and local visibility rather than

utilizing modern tools such as social media or professional branding (Sharma et

al., 2018). This limits their ability to expand their customer base and create loyal

clientele. Fajardo et al. (2017) note that the absence of structured marketing

strategies prevents vendors from standing out in a competitive market. On the

food preparation side, poor sanitation infrastructure and lack of knowledge about

food safety are common challenges. Vendors often work in unsanitary

environments without access to clean water, refrigeration, or proper waste

disposal systems, which increases the risk of foodborne diseases and

undermines consumer trust (Ong et al., 2020; Yap et al., 2019).

Regulatory challenges further compound the problem. Many vendors

operate without the necessary permits, leading to inconsistent enforcement of

health and sanitation standards. Additionally, vendors face issues securing

strategic vending locations due to local zoning restrictions and periodic evictions

by authorities (Gonzales & Tan, 2019). These challenges hinder vendors' ability

to build a stable customer base and achieve sustainable growth.

In Davao City, efforts have been made to regulate street food vending

through local ordinances. For instance, a city council initiative proposed

establishing a government-funded training center for street food vendors,

recognizing their importance to Filipino culture and the local economy (Labrador,

2015). Such initiatives aim to address food safety and marketing challenges,

ultimately enhancing vendor competitiveness. However, these efforts remain

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limited in scope and are yet to be implemented in many rural areas, including

Baganga.

Street food vendors in Baganga, Davao Oriental, cater to diverse

preferences, including local cuisine, rice meals, snacks, beverages, and specialty

items. These vendors play a significant role in the local food culture and

economy but face similar challenges to those encountered by vendors in other

regions. Health and safety concerns, such as maintaining proper food hygiene

and safety standards, remain pressing issues due to inadequate facilities and

resources. Poor infrastructure, including limited access to clean water, waste

disposal, and electricity, further complicates food preparation and operations.

Moreover, vendors in Baganga lack formal marketing strategies, relying primarily

on traditional methods that limit their reach and competitiveness.

While previous studies have explored marketing and food preparation

practices in various contexts, there is a lack of context-specific research

examining how local factors in Baganga, such as regional consumer preferences,

socio-economic conditions, and cultural influences, affect vendor practices.

Existing literature often focuses separately on marketing or food preparation, with

limited exploration of how these factors interact to influence business

performance. Additionally, the role of digital marketing tools, such as social

media and food delivery apps, remains underexplored, particularly in rural areas

like Baganga.

Food safety and hygiene practices, and their impact on consumer trust

and business sustainability, are not well documented. Similarly, there is limited
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research on how competitive pricing, vendor skill development, and government

regulations affect vendor performance. Consumer satisfaction and perception

regarding food quality and vendor practices have also been inadequately studied,

particularly in the context of street food vending in Baganga. The potential role of

sustainable and eco-friendly practices in enhancing vendor competitiveness and

business performance is another area that remains underexplored.

Statement of the Problem

This study aims to determine the effects of marketing practices and food

preparation practices on street food vendors' business performance in Baganga,

Davao Oriental. Specifically, it seeks to address the following research questions:

1. What is the profile of street food vendors in the municipality of Baganga in

terms of:

1.1. Capital

1.2. Years of Operation, and

1.3. Educational Attainment?

2. What are the marketing practices of street food vendors in terms of:

2.1. Pricing,

2.2. Promotion,

2.3. Branding, and

2.4. Customer Engagement?

3. What are the food preparation practices of street food vendors in terms of:

3.1. Food Quality,

3.2. Food Hygiene,

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3.3. Preparation Techniques, and

3.4. Personal Hygiene of the Vendors?

4. What is the business performance in terms of:

4.1. Profitability, and

4.2. Repeat Business?

5. What challenges do street food vendors face in implementing effective

marketing and food preparation practices?

6. Is there a significant effect between marketing and food preparation

practices on business performance?

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Hypothesis

Ho: There is no significant effect of marketing practices and food preparation

practices on the business performance of street food vendors in Baganga, Davao

Oriental.
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Related Literature and Studies

This section presents a review of literature and related studies focusing on

the impact of marketing practices and food preparation methods on the business

performance of street food vendors. The researchers have meticulously analyzed

various sources, including peer-reviewed journals, research studies, and relevant

books, to provide a comprehensive understanding of the topic.

Marketing Practices

Marketing practices play a crucial role in determining the success of

businesses, including small enterprises like street food vendors. These practices

encompass strategies ranging from traditional advertising to modern digital

marketing tools, which allow businesses to connect with consumers on various

platforms (Kotler & Keller, 2016). Solomon (2018) emphasizes that

understanding consumer behavior, such as motivations, preferences, and

purchasing patterns, is critical for developing targeted marketing strategies. This

understanding enables businesses to create campaigns that resonate with their

target audience, enhancing both customer acquisition and retention.

According to Keller (2013), brand equity—a measure of the value a brand

adds to a product or service—has a significant impact on business performance.

Companies that strategically position their brand to build equity often enjoy

higher prices, improved customer loyalty, and a stronger competitive edge. For

street food vendors, creating a unique identity and maintaining consistent quality

can build informal brand equity, fostering trust among customers. Chaffey (2019)
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also highlights the importance of integrating relationship marketing, which

focuses on long-term customer engagement rather than one-time sales, as a way

to drive sustained growth.

Recent studies underscore the effectiveness of grassroots and digital

marketing for small businesses. Ayoade et al. (2019) found that word-of-mouth

marketing remains one of the most cost-effective and impactful strategies for

attracting new customers. Similarly, Hussain et al. (2021) emphasize that street

food vendors can leverage social media platforms to expand their reach and

build strong customer relationships despite limited resources. Digital tools such

as online menus, customer reviews, and promotional offers have proven to

enhance visibility and trust, particularly for vendors operating in highly

competitive environments. By combining traditional methods with modern

approaches, street food vendors can effectively adapt to changing consumer

preferences and market conditions.

Promotion. Promotion is a crucial marketing strategy that enables

businesses to effectively communicate with customers, build awareness, and

encourage purchasing behavior. Blakeman (2018) highlights that well-planned

promotional campaigns are key to attracting new customers while retaining

existing ones through tactics such as advertising, discounts, and public relations.

Mowen and Minor (2017) further emphasize that promotions, when tailored to the

specific preferences of the target audience, can effectively increase sales and

customer engagement. With the rise of digital platforms, Riefler et al. (2012)

underscore the role of social media promotions in enhancing brand awareness

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and creating meaningful connections with younger consumers. Similarly, Ingham

et al. (2018) argue that offering discounts, bundle deals, and flash sales can

significantly influence consumer buying decisions, particularly in highly

competitive markets.

Moreover, contemporary studies emphasize the strategic alignment of

promotions with long-term business goals. For example, Schindler and Kibarian

(2003) argue that while promotional activities are effective in generating

immediate sales, their sustainability lies in fostering brand loyalty and integrating

them with broader marketing strategies. Additionally, Ko et al. (2020) explore the

effectiveness of influencer partnerships in promoting products, demonstrating the

value of leveraging online personalities for greater market reach. In a related

context, Mathur and Kumar (2019) discuss how eco-friendly promotional

campaigns resonate with environmentally conscious consumers, contributing to

brand differentiation and customer retention. Thus, modern promotional

strategies not only stimulate sales but also enhance a business’s reputation,

ensuring sustained growth and competitive advantage.

Pricing. Pricing is a critical component of the marketing mix, significantly

influencing a product's market positioning, competitiveness, and overall

profitability. It involves setting a price that aligns with perceived value, market

conditions, and financial objectives (Kotler & Keller, 2016). Effective pricing

strategies impact customer acquisition, brand perception, and long-term business

sustainability (Kapferer, 2012). Monroe (2003) emphasizes that customers are

often willing to pay higher prices for products that deliver superior value, whether
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through quality, brand reputation, or unique features. Additionally, price elasticity

of demand, which measures consumer responsiveness to price changes, is a key

consideration in developing effective pricing models (Nagle & Holden, 2002).

Recent studies highlight the growing importance of competitive pricing and

its role in business success. According to Yang and Su (2014), businesses in

competitive industries, such as street food vending, benefit from dynamic pricing

strategies that adapt to market trends and customer preferences. Moreover,

Kumar et al. (2020) suggest that pricing strategies integrated with digital tools,

such as online promotions and discount campaigns, can increase customer

engagement and retention. This is particularly relevant in small businesses

where pricing directly impacts consumer loyalty and profitability. By focusing on

strategic pricing, businesses can enhance their market presence while

maintaining sustainable profit margins.

Branding. A product with high perceived value and low price sensitivity

can command a higher price without a significant loss in demand. Perceived

value is influenced by several factors, including product differentiation, brand

equity, and consumer emotions. A well-known brand, for instance, often carries a

perception of higher value, enabling it to charge a premium price. The concept of

price-quality relationship (Agarwal & Teas, 2001) further supports this,

suggesting that consumers tend to equate higher prices with higher quality,

assuming the brand delivers on its promises. As a result, businesses that

strategically manage consumer perceptions and align their pricing with value can

create a competitive advantage in the market. Psychological pricing is a strategy

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that uses consumer psychology to influence purchasing behavior. According to

Raghubir and Corfman (2006), psychological pricing techniques exploit cognitive

biases and emotions to make a price appear more attractive. By offering a lower

introductory price to attract customers, companies can build a user base before

gradually increasing prices. Choi and Lee (2020) argue that penetration pricing is

particularly effective in digital product markets, such as mobile apps or software-

as-a-service (SaaS), where gaining a critical mass of users is key to long-term

success. Once a customer base is established, companies can introduce

premium features or transition to subscription models. Consumers are more likely

to make a purchase if they perceive the price to be fair in relation to the value

provided. According to Xia et al. (2004), customers’ perceptions of price fairness

are influenced by factors such as the pricing process, price transparency, and

comparisons with competitor prices.

Customer Engagement. A product with high perceived value and low

price sensitivity can sustain higher pricing without significant loss in demand.

Factors such as product differentiation, brand equity, and consumer emotions

play a critical role in shaping perceived value. Agarwal and Teas (2001) highlight

the price-quality relationship, where consumers often associate higher prices with

better quality, provided that the brand fulfills its promises. For instance,

businesses that focus on creating strong brand equity can leverage this

perception to command premium prices. Additionally, psychological pricing

strategies, such as charm pricing, capitalize on cognitive biases to make

products seem more affordable. According to Raghubir and Corfman (2006),

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such strategies are particularly effective in influencing consumer behavior,

fostering trust, and driving purchase decisions.

In addition, penetration pricing is a useful strategy for gaining market

share in competitive sectors. Choi and Lee (2020) emphasize its effectiveness in

industries like digital products and services, where establishing a large user base

is crucial for success. Businesses often introduce low introductory prices to

attract initial customers and gradually increase prices once loyalty is established.

Price fairness is another critical factor in customer retention and satisfaction. Xia

et al. (2004) explain that transparent pricing and comparisons with competitors

enhance perceived fairness, increasing the likelihood of repeat purchases.

Additionally, Suri and Monroe (2013) argue that contextual elements, such as

promotional pricing and discounts, also influence consumer perceptions, helping

businesses balance value delivery and profit margins. These strategies

underscore the importance of aligning pricing approaches with consumer

expectations and market dynamics to maintain competitiveness.

Food Preparation Practices

Food preparation practices are critical to the success of food-related

businesses, as they ensure food safety, quality, and customer satisfaction

(Murray et al., 2017). Proper techniques maintain the nutritional value of food

while adhering to health standards, which is essential for fostering customer trust

and loyalty (Mahyudin et al., 2019). Research highlights those foodborne

illnesses, often caused by improper hygiene practices, can damage a business's

reputation. According to Dube and Renko (2016), adherence to food safety

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protocols not only prevents such illnesses but also solidifies a business's

standing in the market by consistently delivering high-quality food products.

Street food vendors, in particular, face unique challenges in maintaining

proper food preparation practices due to the informal and resource-limited nature

of their operations. Ayoade et al. (2019) emphasize the need for vendors to

balance convenience and safety, as efficient yet hygienic practices attract and

retain customers in competitive markets. The use of fresh ingredients and proper

cooking methods, as discussed by Chou et al. (2016), enhances sensory

attributes such as taste and aroma, which directly impact customer satisfaction

and vendor differentiation. Moreover, vendors who prioritize hygiene and quality

are more likely to build a loyal customer base and maintain a strong market

presence despite high competition.

Modern advancements in food preparation further integrate technology to

streamline operations and improve safety. Schenk and Holcomb (2020)

underscore the role of food safety equipment and digital systems in maintaining

inventory and quality control. For street food vendors, adopting even basic

technological tools can enhance consistency and safety, addressing the needs of

increasingly health-conscious consumers. As businesses adapt to evolving

market expectations, the integration of hygiene, high-quality ingredients, and

innovative safety protocols remains a cornerstone of success for street food

vendors and food businesses alike.

Food Quality. Food quality is a multidimensional concept encompassing

sensory properties, nutritional value, safety, and sustainability, which directly

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impact consumer satisfaction and business performance. According to Haug and

Lantz (2018), consumer perceptions of food quality are influenced by factors

such as food origin, brand reputation, and ethical considerations like

environmental sustainability. Intrinsic attributes like taste, texture, and nutritional

value, as well as extrinsic factors such as packaging and storage, play a critical

role in defining food quality (Drewnowski, 2009). Sensory attributes, including

taste and aroma, are the most immediate determinants of food quality and

consumer acceptance (Dijksterhuis et al., 2007). Sweetness, sourness, and

bitterness contribute to a food’s flavor profile, while texture, influenced by

moisture content and processing techniques, affects consumer satisfaction

(Marcos et al., 2019). Nutritional quality, especially the retention of essential

vitamins and minerals during processing and storage, remains a significant

consumer priority (Haug et al., 2020).

In addition to these factors, food safety and hygiene are crucial aspects of

food quality. Foodborne illnesses caused by improper handling and storage

conditions pose significant health risks, affecting consumer trust and vendor

performance (Ateba & Mbewe, 2020). Environmental considerations, such as

sustainable sourcing and waste reduction, are increasingly relevant to consumer

perceptions of food quality (Almasri et al., 2021). Vendors who integrate

sustainable practices, such as using eco-friendly packaging and reducing food

waste, can enhance both customer satisfaction and competitive advantage

(Njoroge et al., 2020). Together, these dimensions of food quality emphasize the
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importance of maintaining high standards in both production and service to

ensure consumer trust and business success.

Hygiene. Personal hygiene is essential for maintaining health and

preventing the spread of infections. According to Dr. S. S. Gupta (2016) in

Essentials of Hygiene, practices such as handwashing, oral care, and

maintaining clean clothing significantly reduce the risk of contagious diseases

like Salmonella and E. coli. Hygiene is particularly crucial in food safety, as

foodborne illnesses often arise from improper handling and storage. W.C. Frazier

and D.C. Westhoff (2001) emphasize that food handlers' hygiene and the

cleanliness of food preparation areas are critical in minimizing microbial

contamination risks. Key practices include regular handwashing, using separate

cutting boards for raw and cooked foods, and sanitizing surfaces. Similarly, David

J. Hunter (2007), in Public Health and Sanitation, highlights the role of hygiene

and sanitation infrastructure in addressing public health concerns, such as

cholera and dysentery, by promoting community-level practices like handwashing

campaigns and proper waste disposal.

Furthermore, Margaret E. L. and Peter M. T. (2011) in Environmental

Hygiene and Disease Control stress that inadequate environmental hygiene,

such as unclean water and poor waste management, can lead to gastrointestinal

and respiratory diseases. Effective public policies and consistent maintenance

can mitigate these risks. Similarly, Stefan A. M. and Emily B. F. (2016) found that

behavior change programs teaching proper hygiene practices—such as safe

drinking water use and handwashing—significantly reduce infectious diseases.

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These findings underscore the importance of hygiene education and community-

wide implementation of sanitation measures, which are critical in both public

health and food safety efforts.

Preparation Techniques. Food preparation methods range from

traditional practices to modern innovations, each designed to enhance flavor,

maintain nutritional value, and ensure food safety. Mason and Timms (2017) in

Food Safety Management highlight traditional methods like drying, pickling, and

fermentation as essential tools for food preservation across cultures.

Fermentation, for instance, not only prolongs shelf life but also adds beneficial

probiotics to foods like yogurt and kimchi. Similarly, Lynch et al. (2009)

emphasize the importance of safe preparation practices, such as proper

handwashing and using separate cutting boards, to minimize foodborne

illnesses. These basic yet effective measures remain integral to food safety

globally.

Modern techniques, on the other hand, leverage advanced technology to

elevate both the efficiency and creativity of food preparation. Methods like sous-

vide cooking and molecular gastronomy manipulate the physical and chemical

properties of ingredients to enhance texture and flavor. Hervé This in Molecular

Gastronomy: Exploring the Science of Flavor (2006) explains how such

approaches allow chefs to create novel culinary experiences, blending science

with artistry. Additionally, Chadha and Singh (2012) in Technological Innovations

in Food Preparation discuss how automated cooking systems and high-tech

kitchen appliances are revolutionizing the food industry by improving

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consistency, safety, and productivity, particularly in large-scale operations. These

modern innovations are shaping the future of food preparation in both domestic

and commercial settings.

Business Performance of Street Food Vendors

Street food vendors play a vital role in supporting local economies and

providing affordable meals, particularly in developing countries. Their business

performance is influenced by factors such as market demand, location, pricing

strategies, customer service, and food safety practices. Schneider and Tse

(2017) highlighted those non-financial indicators, such as customer satisfaction

and word-of-mouth recommendations, are critical for the success and

sustainability of street food vendors. These elements are closely tied to service

quality, food safety, and the ability to meet customer expectations, all of which

significantly impact long-term performance.

Location remains a pivotal factor in the success of street food vendors.

Dube (2016) emphasized that vendors in high-traffic areas or near

complementary businesses often experience higher sales and increased

visibility. Hassan and Berman (2015) further explained that pricing strategies also

play a key role; vendors who balance affordability with product quality tend to

retain customers and improve financial performance. For instance, affordable

pricing strategies may increase sales volume in lower-income areas, while

vendors in more affluent regions can adopt premium pricing for specialized

offerings, catering to niche markets.

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Food safety and customer service are integral to maintaining a competitive

edge. Lau and Ong (2017) argued that vendors who follow proper hygiene

practices and food safety standards are more likely to earn customer trust,

leading to repeat patronage. Bansal and Joshi (2018) added that excellent

customer service, such as quick responses and friendly interactions, significantly

contributes to building a loyal customer base. Moreover, vendors who

consistently deliver quality products and maintain positive customer relationships

enhance their reputation and financial sustainability, which are crucial in the

competitive street food sector.

Sales Revenue. Sales revenue, often referred to as sales turnover or

income, plays a pivotal role in determining business performance. Kotler and

Keller (2016) in "Marketing Management" define sales revenue as the total

income from the sale of goods and services before deductions, highlighting its

importance as a core indicator of market demand, operational success, and

profitability. Hollensen (2015) supports this by emphasizing that increasing sales

revenue reflects effective marketing strategies, consumer acceptance, and

competitive positioning. Internal factors, such as pricing strategies, product

quality, and marketing efforts, directly influence sales revenue, while external

factors, including market competition, economic conditions, and technological

advancements, shape revenue growth potential. For instance, in the food

industry, adapting marketing campaigns to consumer preferences and trends can

significantly boost sales revenue, providing vendors with the resources to

improve operations and maintain business stability.

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Accurate and timely revenue recognition is essential for financial

transparency and business credibility. Schipper and Vincent (2003) discuss how

managerial judgment impacts revenue recognition practices, potentially leading

to earnings manipulation or discrepancies in financial reporting. Similarly,

Dechow and Schrand (2004) highlight how inconsistencies in revenue

recognition can misrepresent a company’s true financial performance, creating

risks for stakeholders. For small-scale businesses like street food vendors,

understanding revenue dynamics ensures better financial planning and resource

allocation. In specialized sectors, such as construction and telecommunications,

methods like percentage-of-completion are used for revenue recognition to

reflect progress over time (Healy & Wahlen, 2000). These insights underline the

necessity for street food vendors to implement clear and consistent revenue

tracking to sustain business performance while ensuring compliance with

financial standards.

Repeat Business. Repeat business refers to the phenomenon where

customers consistently return to engage with a business after their initial

interaction. This concept is particularly vital in competitive industries like retail

and hospitality, where customer loyalty directly influences revenue. According to

Malthouse and Blattberg (2005), loyal customers not only continue to purchase

but also promote the business through word-of-mouth, driving organic growth.

Oliver (2000) emphasizes that customer satisfaction—achieved when a product

or service meets or exceeds customer expectations—is a primary driver of repeat

business. High satisfaction levels encourage customers to return, as they

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perceive the value provided justifies the cost. Similarly, Anderson and Sullivan

(2003) note a strong positive relationship between customer satisfaction and

retention, with dissatisfied customers more likely to churn.

Recent studies further highlight strategies to enhance repeat business.

Chaudhuri and Holbrook (2001) stress the importance of brand trust, which

loyalty programs can cultivate, making customers more inclined to return despite

competition. Lemon and Verhoef (2016) emphasize creating personalized

rewards and seamless customer experiences throughout the journey.

Additionally, Choi and Mai (2018) found that convenience, perceived quality, and

value significantly influence customer loyalty. Digital engagement, such as

personalized email campaigns and app-based loyalty programs, has also proven

effective in retaining customers (Kim & Choi, 2021). These insights underline the

critical role of customer experience and targeted strategies in fostering repeat

business.

Theoretical Framework

This section integrates all of the previous sections to provide a more

comprehensive grasp of the subject. This theoretical framework examines the

influence of marketing practices and food preparation practices on the business

performance of street food vendors by integrating key theories and perspectives.

Central to this study is the Marketing Mix Theory (McCarthy, 1960), which

emphasizes the 4Ps—Product, Price, Place, and Promotion—as tools to

evaluate marketing strategies. Product involves the variety, quality, and

uniqueness of food offerings, tailored to meet consumer preferences and create

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differentiation in a competitive market (Schmitt, 1999). Price plays a significant

role for budget-conscious customers, where strategies such as competitive

pricing ensure affordability while maintaining profitability (Kotler, 2012). Place

focuses on strategic vending locations in high-traffic areas such as parks or busy

streets, essential for attracting customers (Lovelock & Wirtz, 2011). Finally,

promotion entails activities like word-of-mouth, social media, and local

advertising, which help vendors foster brand awareness and loyalty (Solomon,

2018).

In addition to marketing, food preparation practices significantly impact

business performance. The Food Quality and Safety Theory (Herson & Traill,

1993) underscores the importance of adhering to hygiene standards and food

safety protocols, such as the Hazard Analysis and Critical Control Points

(HACCP) system. This ensures that vendors maintain customer trust and comply

with legal standards (WHO, 2018). The Sensory Evaluation Theory (Stone &

Sidel, 2004) highlights the role of sensory attributes—taste, texture, aroma, and

appearance—in shaping customer satisfaction, which directly influences repeat

business and customer retention.

Another theory is the Stimulus-Organism-Response (S-O-R) Model

(Mehrabian & Russell, 1974) which offers additional insights into how

environmental stimuli, such as the presentation of food and the cleanliness of

vending spaces, affect customer behavior. Positive stimuli encourage customer

satisfaction and loyalty, leading to improved business outcomes. Furthermore,

operational efficiency theories like Lean Production and Just-In-Time (JIT)

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(Womack & Jones, 1996) are essential for optimizing food preparation. These

frameworks enable vendors to minimize waste, improve service speed, and

reduce costs, ultimately enhancing profitability.

Conceptual Framework

Independent Variable

Marketing Practices

Dependent Variable
 Promotion

 Pricing

 Branding

 Customer Business Performance of

Engagement Street Food Vendors

Food Preparation Practices  Sales Revenue

 Repeat Business
 Food Quality

 Hygiene

 Preparation

Techniques
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Figure 1: Conceptual Framework Showing the Variables

Significance of the Study

This study aims to provide valuable insights and benefits to various stakeholders:

Street food vendors. The findings of this study will help street food vendors

improve their marketing and food preparation practices. By identifying effective

strategies, vendors can better cater to customer demands, enhance their

competitiveness, and ensure business growth.

Future Researches. The research offers a valuable foundation for future

studies, providing existing data and insights that can be further explored and

developed to improve knowledge in the fields of marketing, food preparation, and

the street food industry.

Businessman owners and entrepreneurs. The study serves as a guide for

current and aspiring business owners, offering innovative techniques and

approaches to meet customer needs. It also provides practical examples for

conceptualizing unique business models that stand out in competitive markets.

Business students and Academics. Students and academics studying

entrepreneurship, business management, or the food industry will benefit from

the case studies and insights presented in this research. The findings can be

used as a reference to link theoretical knowledge with real-world applications.

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Investors. For potential investors, this research highlights the opportunities and

challenges in the street food sector. It provides valuable information to help them

evaluate risks, identify profitable practices, and make informed investment

decisions.

Local Government and Policy makers. The findings of this study can support

local government units and policymakers in creating and implementing policies,

programs, and regulations that enhance the operations of street food vendors.

The research also emphasizes improving public health, food safety, and support

for small businesses.

Consumers. Consumers will directly benefit from the improved practices of

street food vendors. Higher food quality, better hygiene, and enhanced customer

service will lead to more satisfying and safer dining experiences.

Definition of Terms

The key terms relevant to this study are defined as follows to provide

clarity and alignment with the study's focus:

Street food vendors. Street food vendors are individuals or small-scale

businesses that sell ready-to-eat food from mobile or temporary setups, such as

carts, stalls, or food trucks, in public spaces. According to Mohan (2015) in

"Street Food and the Globalization of Food Culture," these vendors are an

integral part of urban food ecosystems, offering affordable and accessible

culinary options that reflect local traditions and cultural diversity.

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Marketing practices. Are methods or techniques used by businesses to

promote their products or services effectively, achieve competitive advantages,

and meet customer needs. According to Kotler and Keller (2016), marketing

practices include strategic approaches such as pricing, branding, promotion, and

customer engagement that influence consumer behavior and drive business

growth.

Food preparation practices. These practices involve the processes and

methods employed by vendors to prepare and cook food while ensuring hygiene,

quality, and safety. As highlighted by Ateba and Mbewe (2020), effective food

preparation not only meets regulatory food safety standards but also enhances

customer satisfaction through consistency, presentation, and taste, thereby

positively impacting vendor reputation and business outcomes.

Business performance. It measures how effectively a street food vendor

achieves goals such as sales, profitability, customer satisfaction, and operational

efficiency. It combines financial metrics like revenue with non-financial aspects

such as customer loyalty and service quality, providing a comprehensive view of

success (Richard et al., 2009).

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CHAPTER 2

METHODS

This chapter presents a detailed discussion of the research design,

research subjects, research instruments, data collection procedures, and

statistical methods used for data analysis.

Research Design

This study adopted the descriptive survey method, a research approach

focused on systematically collecting and analyzing data to describe and interpret

current conditions or phenomena. According to Aggarwal (2008), descriptive

research involves more than just gathering and tabulating facts; it requires proper

analysis, interpretation, and comparison to identify trends, relationships, and

patterns. This method was chosen to explore the effects of marketing practices

and food preparation practices on the business performance of street food

vendors in Baganga, Davao Oriental, as it allows for a comprehensive

examination of real-world practices and their outcomes.

The descriptive survey method is particularly suitable for this study as it

enables the direct collection of data from respondents, allowing the researchers
 28

to gain insights into key factors influencing vendor operations. It provides a

framework for understanding how marketing strategies drive customer

engagement, how food preparation practices impact customer satisfaction, and

how these variables collectively affect business performance. By using this

method, the study aims to generate detailed findings that can inform strategies

for improving marketing and operational practices among street food vendors,

offering actionable recommendations for vendors and stakeholders alike.

Research Subject

The respondents of this study are street food vendors operating in

Baganga, Davao Oriental. Specifically, the research involves surveying vendors

from all 18 barangays in the municipality. The total population consists of 125

vendors, and the desired sample size is determined using Slovin’s Formula,

resulting in 92 respondents. A stratified sampling method is employed to ensure

accurate representation of vendors from each barangay. Stratified sampling, as

described by Harter (2008), involves selecting sample members by chance but

with a known probability, allowing for more precise representation of the

population.

Survey questionnaires are used as the primary data collection tool. These

questionnaires are distributed to the selected respondents after obtaining their

consent. This method ensures that the data collected reflects the vendors’

current experiences and practices across the municipality. According to

Dasgupta et al. (2009), proper sampling methods, like stratified sampling,

enhance the reliability and accuracy of results by ensuring that the sample
 29

closely mirrors the original population, offering theoretical guarantees for robust

data collection and analysis. This approach allows the study to capture

meaningful insights into the marketing and food preparation practices of street

food vendors in Baganga.

Table 1

Subject of the Study

Barangay Population Sample

Baculin 6 5

Bobonao 4 3

Salingcomot 5 4

Lucod 12 9

Central 16 12

Batiano 6 5

Binondo 4 3

Mahan-ub 4 3

Saoquigue 9 7

Lambajon 13 10

Dapnan 5 4

San Isidro 10 8
 30

Campawan 3 2

Mikit 4 3

San Victor 5 4

Kinablangan 8 6

Ban-ao 2 1

Batawan 4 3

Total 120 92

Source: Primary Data

Research Locale

The study is conducted in the province of Davao Oriental, which consists

of ten municipalities and one city. The researchers specifically focus on selected

areas within the municipality of Baganga. This location is chosen due to its

accessibility and relevance to the study's objectives. A map of the research site is

presented in Figure 2 for reference.

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Figure 2: Map of the province of Davao Oriental

Research Instrument

To assess the effects of marketing practices and food preparation

practices on the business performance of street food vendors in Baganga, Davao

Oriental, the researchers developed a structured survey questionnaire as the

primary data collection tool. This instrument is designed to obtain comprehensive

information about the vendors' practices, challenges, and perspectives. To

ensure clarity and accuracy, the questionnaire is administered through face-to-

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face interviews, allowing the researchers to address any ambiguities and explore

relevant details as needed.

The questionnaire incorporates scales aimed at measuring the impact of

marketing and food preparation practices on business performance. These

scales evaluate respondents' agreement or disagreement with statements related

to marketing strategies, food preparation methods, and their influence on sales,

customer satisfaction, and operational efficiency. The survey consists of sixty

(60) items, with five (5) questions dedicated to each indicator representing

marketing practices, food preparation practices, and business performance. A 4-

point Likert scale is used, where respondents choose from the following options:

4 - Strongly Agree, 3 - Agree, 2 - Disagree, and 1 - Strongly Disagree.

Scoring is calculated by adding the points of all selected responses and

dividing the total by 25. The scale’s maximum score is 4, representing

"Excellent," while the minimum score is 1, indicating "Poor." This scoring system

ensures an objective evaluation of the responses, aligning with the study's

objectives and providing actionable insights into the performance of street food

vendors in the municipality.

Table 2

Marketing and Food Preparation Practices Matrix

Range Verbal Scale Verbal Interpretation

3.51 – 4.50 Strongly Agree This means that they perceived

the item to be very satisfactory.

2.51 – 3.50 Agree This means that they perceived

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the item to be satisfactory.

1.51 – 2.50 Disagree This means that they perceived

the item to be less satisfactory.

1.00 – 1.50 Strongly Disagree This means that they perceived

the item to be unsatisfactory.

Data Gathering Procedure

The data gathering procedure ensures the efficiency and authenticity of

the information collected, which is crucial for the success of the study. Various

methods such as interviews, observations, surveys, and questionnaires are

utilized to collect primary data effectively. For this study, the researchers carefully

followed a systematic process to ensure the reliability and validity of the collected

data.

The process began with the creation of a formal request letter addressed

to relevant authorities to seek approval for conducting the survey. The

researchers first approached the Dean of the College to secure permission for

the survey, obtaining the required signatures from both the Dean and the

Program Head as formal authorization. Subsequently, the researchers

coordinated with local government offices to obtain the population data of street

food vendors in Baganga, Davao Oriental. A list of selected street food vendors

was prepared based on the population data.

Before conducting the survey, the researchers will personally approach

the street food vendors, explain the purpose of the study, and provide them with

a copy of the formal letter to establish transparency and gain their consent. Once
 34

consent will be obtained, the survey will be conducted using structured

questionnaires to gather the necessary data. After data collection, the

researchers will work with a statistician to analyze the results, identify

correlations between variables, and ensure accurate findings. Finally, the

interpretations, conclusions, and recommendations will be formulated based on

the analysis.

Statistical Treatment of Data

This study employs various statistical methods to analyze the data and

identify relationships between variables. The primary tools used include the

arithmetic mean, Pearson R correlation coefficient, and linear regression.

1. Arithmetic Mean

The arithmetic mean is used to determine the average responses of

the participants regarding marketing practices, food preparation practices,

and business performance. It is calculated by summing all the values in

the data set and dividing by the total number of values. This method

provides an unbiased representation of the data and helps summarize the

overall trends among the respondents.

2. Pearson R Correlation Coefficient

The Pearson R correlation coefficient measures the strength and

direction of the linear relationship between two continuous variables. It

ranges from -1 to 1, where -1 indicates a perfect negative correlation, 0

indicates no correlation, and 1 indicates a perfect positive correlation. This

 35

tool is used to assess how strongly marketing practices and food

preparation practices are related to business performance.

3. Linear Regression

Linear regression is applied to model the relationship between the

dependent variable (business performance) and independent variables

(marketing and food preparation practices). It identifies the line of best fit

that predicts the dependent variable based on the independent variables.

This method helps in understanding the influence of specific practices on

business performance and provides actionable insights for vendors.

Ethical Consideration

Ethics play a crucial role in research, serving as a guiding principle to

ensure that researchers act responsibly and respectfully toward participants and

society as a whole. Ethical considerations prevent harmful behavior and

safeguard the rights and welfare of individuals and communities involved in the

study (Bhasin, 2020). This section highlights the ethical guidelines adhered to by

the researchers to ensure a respectful and transparent research process.

One of the primary ethical principles observed is beneficence and

nonmaleficence, which emphasize promoting participants' well-being while

avoiding harm (Singh, 2015). Data collection for this study is conducted through

survey questionnaires, with participants voluntarily choosing to participate without

coercion. The researchers ensure the safety, security, and well-being of

respondents before, during, and after the data collection process. Questions
 36

included in the survey are aligned with the research objectives, respecting

participants' decision-making autonomy.

Confidentiality is another key principle observed in this study. Participants

have the right to remain anonymous, and their private information is handled with

respect in accordance with the 1987 Philippine Constitution, which upholds the

Right to Information and Privacy under Article III. Informed consent is obtained

before data collection begins, and a formal consent letter signed by the principal

and research instructor guarantees participants' rights. Respondents are

provided the option to withdraw from the study at any time.

The principle of integrity ensures that the research is conducted truthfully

and transparently, avoiding any falsification or professional misconduct. All data

collected are accurately reported, and no alterations are made to misrepresent

findings. Additionally, justice is upheld by ensuring fairness in participant

recruitment and site selection, promoting social equity and impartiality throughout

the study.

Lastly, respect for individuals’ rights is prioritized, particularly their privacy,

confidentiality, and autonomy. The researchers comply with Republic Act No.

10173, or the Data Privacy Act of 2012, which mandates that personal data

collection must be for legitimate purposes with the informed consent of

participants. Data security measures, such as encrypting sensitive information

and controlling access to collected data, are implemented to ensure that

participants' information remains safe and secure. By following these ethical

principles, the study upholds the dignity and rights of all individuals involved.