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Marketing Strategies of Sari-Sari Stores

The document discusses the significance of sari-sari stores in the Philippines, highlighting their role in local commerce and the challenges they face, including high competition and low customer loyalty. It emphasizes the importance of effective marketing strategies for these stores to attract and retain customers, particularly in the context of the Philippine Women's College (PWC) of Davao. The study aims to investigate the marketing practices of sari-sari stores near PWC and their impact on customer patronage, addressing specific research questions and hypotheses related to marketing effectiveness.

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0% found this document useful (0 votes)
100 views32 pages

Marketing Strategies of Sari-Sari Stores

The document discusses the significance of sari-sari stores in the Philippines, highlighting their role in local commerce and the challenges they face, including high competition and low customer loyalty. It emphasizes the importance of effective marketing strategies for these stores to attract and retain customers, particularly in the context of the Philippine Women's College (PWC) of Davao. The study aims to investigate the marketing practices of sari-sari stores near PWC and their impact on customer patronage, addressing specific research questions and hypotheses related to marketing effectiveness.

Uploaded by

reenelcabs
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CHAPTER I

INTRODUCTION

Sari-sari stores are integral to the domestic economy of the Philippines,

serving as a cornerstone of local commerce. Despite their similarities and lack of

differentiation, marketing plays a crucial role in helping these stores stand out.

Their popularity is due to their convenience, with almost every community having

one. These stores are a preferred business venture for Filipinos because of their

accessibility and ease of setup, contributing significantly to economic growth

(Lacamiento, 2017).

Analyzing Porter's five forces reveals that the sari-sari store industry faces

high competition, primarily from the threat of new entrants attracted by low entry

barriers. Intense competition is characterized by numerous competitors, easily

substitutable products, and low customer loyalty (Jurevicius, 2017). Despite

these challenges, sari-sari stores remain prevalent, with one store for every 100

people (Castro, 2016) and accounting for 30% to 40% of total retail sales in the

Philippines (Lorenciana, 2017). However, these stores face challenges such as

increasing competition, product substitution, and low customer loyalty, along with

the high threat of new entrants due to minimal capital and legal requirements

(Tempo Online, 2017).

Therefore, marketing plays a crucial role in the success of sari-sari stores,

helping them differentiate themselves and attract customers (Phibbs, 2017).

Developing a marketing strategy is essential for these stores to grow, reach their
1
target audience, and increase sales. Effective marketing can help sari-sari stores

thrive amidst competition and changing consumer preferences (ABI, 2017). Small

sari-sari stores are a common sight in the Philippines, particularly in local

communities near educational institutions like the Philippine Women's College

(PWC) of Davao. These small retail establishments play a vital role in providing

essential goods and services to residents, offering convenience and accessibility

that larger stores may not provide.

Despite their prevalence and importance, small sari-sari stores face

various challenges, particularly in marketing their products and attracting

customers. Understanding the marketing strategies employed by small sari-sari

stores and their impact on customer patronage is crucial for the sustainable

growth and success of these businesses. By identifying effective marketing

strategies, small sari-sari store owners and managers can better cater to the

needs and preferences of their customers, leading to increased customer

satisfaction and loyalty.

Research gap

Hence, the research gap in the study of marketing practices and customer

patronage of selected sari-sari stores near PWC of Davao lies in the lack of

comprehensive understanding of the specific marketing strategies employed by

these stores and their effectiveness in attracting and retaining customers. While

sari-sari stores are known to be important in the domestic economy and are

popular among Filipinos, there is limited research on the specific marketing

2
tactics used by these stores and how these strategies impact customer

patronage.

Research gap

Thus, this study aims to investigate the marketing practices employed by

sari-sari stores near PWC of Davao and their impact on customer patronage.

Specifically, it seeks to identify the marketing practices commonly used by these

stores, examine the relationship between marketing practices and customer

patronage, and explore differences in marketing practices and customer

patronage based on the demographic profile of the respondents.

Statement of the Problem

This study aims to investigate the marketing practices employed by sari-

sari stores near the Philippine Women's College (PWC) of Davao and their

impact on customer patronage. Specifically, this study seeks to address the

following questions:

1. What are the common marketing practices used by sari-sari store owners

near PWC of Davao?

2. What influence do these marketing practices have on customer patronage

of these sari-sari stores?

3. What challenges do sari-sari store owners encounter in implementing

effective marketing strategies?


3
4. Is there a significant relationship between marketing practices and

customer patronage?

Hypothesis:

(H0): There is no significant relationship between marketing practices and

customer patronage in sari-sari stores near PWC of Davao.

(H1): There is a significant relationship between marketing practices and

customer patronage in sari-sari stores near PWC of Davao.

Theoretical Framework

The Stimulus Organism Response (SOR) Theory, initially proposed by

Edward Thorndike in 1905, posits that behavior is influenced by the

consequences of one’s actions. According to this theory, external stimuli from the

environment (Stimulus) interact with the internal state of the individual

(Organism), leading to a particular behavioral response (Response). The SOR

framework emphasizes the dynamic interaction between stimuli, individual

psychological processes, and behavioral outcomes. It suggests that individuals

respond to stimuli based on their internal states, including emotions, attitudes,

and perceptions, and these responses are shaped by past experiences and

learned associations. Thus, in the context of customer patronage, the SOR

4
theory provides insights into how external factors such as marketing stimuli

interact with individual perceptions and motivations to influence spending

behavior.

Additionally, Schiffman and Kanuk (2000) highlight the significance of

understanding customer behavior in relation to stimuli, emphasizing the role of

promotional techniques like social media in enhancing product popularity, as

suggested by Domingo (2018). Additionally, Heide et al. (2021) highlights the

potential of pricing strategies in revenue enhancement, further corroborating the

link between marketing practices and customer spending behavior.

However, customer patronage is influenced by various factors, including

product and service quality, service environment, store choice, and shopping

experience, among others (Eze, Odigbo & Ufot, 2017). However, as noted by

Nwokah and Poi (2017), it is imperative to precisely define the phenomenon

before measurement to ensure clarity. Moreover, customer practices,

encompassing etiquettes, behavioral patterns, and techniques used in customer

interactions, play a vital role in shaping customer satisfaction and fostering

profitable relationships (IBM; Semerkant, 2021).

Furthermore, the frequency of customer visits also plays a crucial role in

determining satisfaction levels. Research suggests that increasing visit durations

positively impact customer satisfaction (Moji Shahvali, 2017).

5
Thus, understanding these theoretical foundations provides insights into

the complex relationship between marketing practices, customer behavior, and

ultimately, customer patronage in sari-sari stores near PWC of Davao.

Conceptual Framework

In this conceptual framework, the independent variables represent various

marketing practices commonly used and challenges commonly encountered by

sari-sari store owners near PWC of Davao, while the dependent variable is

customer patronage, encompassing different aspects of customer behavior and

satisfaction. The relationship between marketing practices and customer

patronage is explored by examining how each marketing practice influences

different dimensions of customer behavior and satisfaction. The independent

variables are manipulated by sari-sari store owners to attract and retain

customers, while the dependent variable reflects the resulting outcomes of these

marketing efforts on customer patronage. Through empirical investigation, the

strength and significance of the relationships between these variables can be

analyzed to understand the effectiveness of different marketing practices in

influencing customer patronage in sari-sari stores near PWC of Davao.

Independent Variables Dependent Variable

Marketing
Practices
Customer 6
Challenges
Patronage
Encountered by
the Sari-sari
store owners
Figure 1. Relationship between Marketing Practices, Challenges Encountered
and Customer Patronage in Sari-Sari Stores near PWC of Davao

Significance of the Study

The study is beneficial to the following as presented in this


study.

Sari-sari Store Owners: This study offers valuable insights into effective

marketing strategies that sari-sari store owners can employ to attract and

retain customers. By understanding which marketing practices influence

customer patronage, owners can optimize their marketing efforts, increase

sales, and enhance profitability.

Customers: The study benefits customers by shedding light on the marketing

practices employed by sari-sari stores and how these practices impact

their shopping experience. With a better understanding of how marketing

influences their patronage, customers can make more informed choices

and derive greater satisfaction from their shopping interactions.

Marketing Industries: It provides opportunities for marketers to tailor their

approaches to better serve the needs of sari-sari store owners and

customers, potentially leading to the development of specialized marketing

solutions for this market segment.


7
Teachers - The study serves as a valuable resource for teachers and educators

in the fields of marketing and hospitality management. It provides real-

world examples and case studies that can be used to enrich classroom

discussions and enhance students' understanding of marketing concepts

and strategies in the context of the sari-sari stores industry.

Researchers: this study contributes to the existing body of knowledge on

marketing practices and customer behavior in the context of sari-sari

stores. It opens avenues for further research into specific aspects of

marketing strategies, customer preferences, and market dynamics within

the sari-sari store industry, fostering continued academic inquiry and

understanding.

Future Researchers: Can build upon the findings of this study to delve deeper

into specific aspects of marketing practices and customer patronage in

sari-sari stores. They can explore emerging trends, new marketing

techniques, and evolving consumer behaviors to provide updated insights

and recommendations for sari-sari store owners, customers, and the

broader marketing community.

Scope and Delimitations of the study

The scope of this study encompasses sari-sari stores situated in the

vicinity of the Philippine Women's College (PWC) of Davao, aiming to examine

their marketing practices and their impact on customer patronage. It will focus on
8
identifying common marketing strategies employed by sari-sari store owners,

exploring how these practices influence customer behavior, and understanding

the challenges encountered in implementing effective marketing strategies. The

research will be delimited to sari-sari stores within a defined radius of PWC

Davao, excluding those beyond this geographic area. The study will not extend to

other retail establishments or marketing practices outside the specified scope

near PWC Davao.

Definition of Terms

The following terms were defined operationally to establish a common


frame of reference.

Customer patronage- refers to the frequency and consistency of customers'

purchases from sari-sari stores, encompassing aspects of customer

behavior such as spending levels, visitation frequency, loyalty,

satisfaction, willingness to recommend, and engagement with the store.

Customers- refer to students who patronize sari-sari stores near the Philippine

Women's College (PWC) of Davao.

Marketing practices- this study pertains to the specific strategies and activities

employed by sari-sari store owners to promote their products and attract

customers.

Sari-sari stores- refer to small retail establishments that serve as convenient

outlets for everyday needs and are found near the school campus of

Philippine Women's College Davao.

9
Significant Relationship- refers to a statistically meaningful correlation between

marketing practices employed by sari-sari stores and customer

patronage. A significant relationship indicates that changes in marketing

practices are likely to result in corresponding changes in customer

behavior and patronage levels.

REVIEW OF RELATED LITERATURE

This section provides readings, related literature and studies that were

taken from different sources such as the internet, journals, newspapers,

magazines and the internet to provide more information and data about the

study.

Marketing Strategy

Marketing is a complex aspect of business often misunderstood as solely

communication activities such as advertising and promotions. Ferrell and Hartline

(2017) redefine marketing as the comprehensive process of planning and

executing the conception, pricing, promotion, and distribution of ideas, goods,

and services to create exchanges that satisfy individual and organizational

objectives. This broadened perspective highlights the extensive scope of

marketing beyond mere communication efforts.

10
In alignment with Ferrell and Hartline's perspective, Walker and Boyd

(2017) define strategy as a fundamental pattern of present and planned

objectives, resource deployments, and interactions of an organization with

markets and competitors. They emphasize that an effective strategy should

clearly articulate what objectives are to be achieved, where focus will be directed

(i.e., industries or product-markets), and how resources and activities will be

allocated to gain a competitive advantage. This underscores the critical role of

strategy in guiding the allocation and coordination of resources to achieve

organizational objectives within specific market domains.

Furthermore, Urban and Star (2017) highlight the central importance of

recognizing and satisfying customer needs in successful marketing strategy.

They assert that effective marketing programs that fulfill customer needs can

lead to long-term competitive advantages and financial success. Ferrell and

Hartline (2017) further elaborate on the components of a marketing strategy,

which include target markets and marketing mixes. They stress the necessity for

organizations to select the appropriate combination of target markets and

marketing mix elements to establish distinct competitive advantages over

competitors.

The concept of the marketing mix, introduced by Neil H. Borden,

encapsulates the array of marketing ingredients available to companies to

achieve their objectives. Lancaster and Massingham (2010) expand on this

notion, identifying the four key elements of the marketing mix as Products, Price,

Promotion, and Place. These elements encompass various factors, including

11
product attributes, pricing strategies, promotional efforts, and distribution

channels, emphasizing the comprehensive nature of marketing planning and

execution.

Marketing Practices

Understanding the marketing practices of sari-sari stores requires a

comprehensive review of related literature spanning international, national, and

local studies. Internationally, research on small retail establishments similar to

sari-sari stores provides valuable insights. Studies by scholars such as Wong

and Chia (2013) have examined marketing strategies employed by small retailers

in Asian countries, shedding light on common practices like product bundling,

pricing strategies, and community engagement. These strategies are often

applicable to sari-sari stores and offer a foundational understanding of marketing

practices in a broader context.

However, the Philippines has a rich body of research on sari-sari stores

due to their ubiquity and economic significance. Studies by Eustaquio (2018) and

Garcia and Frugalidad (2015) have explored various marketing practices adopted

by sari-sari store owners across the country. These practices include offering

discounts and promotions, maintaining attractive product displays, utilizing social

media for promotion, and implementing loyalty programs. Additionally, research

by Reyes et al. (2019) has investigated the role of location and store ambiance in

influencing customer patronage, further enriching our understanding of marketing

practices in the Philippine context.


12
Additionally, studies focusing on sari-sari stores provide insights tailored to

the specific dynamics of the area. Research by local scholars such as Santos

and Cordero (2020) has examined marketing strategies employed by sari-sari

store owners in Davao City, highlighting the importance of community

relationships and customer engagement. Moreover, studies by Davao-based

researchers often delve into the socio-cultural factors that shape consumer

behavior and preferences in the local context, offering nuanced perspectives on

marketing practices within the city.

Best Marketing Practices

Marketing is a fundamental aspect of business strategy, and identifying

the best practices can significantly impact a company's success. Research by

Kotler and Keller (2016) highlights the importance of understanding customer

needs and preferences, emphasizing the value of market segmentation and

targeting. By tailoring marketing efforts to specific customer segments,

companies can effectively reach their target audience and drive sales.

In the realm of digital marketing, studies by Chaffey et al. (2019) have

examined the most effective digital marketing channels and strategies for

businesses. These include search engine optimization (SEO), content marketing,

email marketing, and social media advertising. By leveraging these digital

13
channels, companies can enhance their online visibility, engage with customers,

and generate leads more effectively.

Moreover, research by Armstrong and Cunningham (2018) emphasizes

the significance of customer relationship management (CRM) in fostering long-

term customer loyalty and satisfaction. By implementing CRM systems and

strategies, companies can better understand their customers, personalize their

marketing efforts, and build stronger relationships, ultimately leading to increased

customer retention and lifetime value.

Furthermore, studies by Porter (2008) and Barney (1991) highlight the

importance of sustainable competitive advantage in marketing. By developing

unique value propositions, leveraging core competencies, and continually

innovating, companies can differentiate themselves from competitors and

maintain a sustainable competitive edge in the market. Thus, the literature on

best marketing practices highlights the importance of understanding customer

needs, leveraging digital marketing channels, implementing effective CRM

strategies, and building sustainable competitive advantage. By incorporating

these best practices into their marketing efforts, companies can enhance their

market position, drive growth, and achieve long-term success.

Sari-sari Store

Sari-sari stores are pervasive in the Philippines, serving as essential

components of local communities and playing a significant role in the country's

14
retail landscape. Research on sari-sari stores often highlights their importance as

accessible sources of goods and services for Filipino consumers, particularly

those residing in rural or underserved areas (Garcia & Frugalidad, 2015). These

small retail establishments offer convenience and affordability, catering to the

diverse needs of their customers, ranging from basic commodities to daily

essentials (Castro, 2016).

Studies exploring the dynamics of sari-sari stores delve into various

aspects, including their economic impact, marketing strategies, and challenges

faced by store owners. Lorenciana (2017) notes that sari-sari stores contribute

significantly to the country's retail sector, accounting for a considerable portion of

total retail sales. Despite facing competition from larger retailers and

supermarkets, sari-sari stores continue to thrive due to their adaptability and

localized approach to serving customers (Lacamiento, 2017).

Marketing practices employed by sari-sari store owners have garnered

attention from researchers seeking to understand how these small businesses

attract and retain customers in a competitive market. Phibbs (2017) emphasizes

the importance of effective marketing strategies in helping sari-sari stores

differentiate themselves and appeal to their target audience. From product

bundling to promotional activities, sari-sari store owners employ various tactics to

enhance customer patronage and drive sales (ABI, 2017).

Despite their popularity and resilience, sari-sari stores face challenges

such as increasing competition, product substitution, and changing consumer


15
preferences. Understanding these challenges and identifying strategies to

address them are crucial for the sustainable growth and success of sari-sari store

businesses. Research focusing on the marketing practices, customer patronage,

and operational dynamics of sari-sari stores provides valuable insights into these

small retailers' contributions to the local economy and their role in serving Filipino

consumers' needs.

Concept of Customer Patronage

Customer patronage is a fundamental concept in marketing, often defined

as the degree to which a customer exhibits repeat purchase behavior and

possesses a positive, long-lasting attitude towards a service provider (Gremler &

Brown, 2017). It encompasses various dimensions, including product and service

quality, service environment, store choice, shopping experience, cost,

merchandise value, location, and store atmosphere (Eze, Odigbo & Ufot, 2017).

However, to accurately measure patronage, it must be clearly defined to

delineate its boundaries and characteristics (Nwokah & Poi, 2017).

Chiguvi (2017) further defines customer patronage as the commitment to

consistently purchase products and services from an organization. Mellroy &

Barnett (2017), as cited in Almotairi (2021), add that patronage involves a

customer's allegiance to a company, regularly buying its products and services,

and sharing positive reviews about the brand. Nkpurukwe, Amangala & Wali

(2020) emphasize that patronage entails the ongoing support provided by

customers to a particular brand through constant purchases.

16
Oliver (2017), as cited in Chow, Lau, Lo Sha & Yun (2017), suggests that

customer patronage reflects a deeply held commitment to repurchase a firm's

products over competitors'. Seock (2017) describes patronage as repeat

purchase behavior at a particular store, driven by customer satisfaction.

Anderson & Sullivan (2017) assert that customer expectations of satisfaction lead

to increased patronage tendencies, particularly for firms offering high-quality

products and services on a regular basis.

Supporting these assertions, Kivela, Inbakaran & Reece (2017) suggest

that firms offering superior quality goods and services are likely to have satisfied

customers and higher economic returns. Additionally, Dick & Basu (2017)

propose favorable attitudes and repeat purchases as indicators of customer

patronage, highlighting the importance of customer satisfaction and loyalty in

driving repeat business.

Research on customer patronage provides valuable insights into

the factors influencing consumer behavior and loyalty across different

contexts. Studies by scholars such as Oliver (1999) have examined the

concept of customer satisfaction and its impact on patronage behavior.

Oliver's research emphasizes the importance of meeting customer

expectations and delivering quality experiences to foster repeat

patronage. Additionally, studies by Reichheld (2003) have explored the

link between customer loyalty and business profitability, highlighting

the financial benefits of retaining loyal customers over time. These


17
studies contribute to a deeper understanding of the drivers of

customer patronage and the strategies businesses can employ to

cultivate long-term relationships with their customers.

However, in the Philippines, research on customer patronage has

focused on understanding consumer behavior within the local market

context. Studies by scholars such as Avelino and Guerrero (2017) have

investigated the factors influencing patronage decisions among Filipino

consumers, including product quality, price sensitivity, and brand

loyalty. Furthermore, research by Santos and Reyes (2015) has

explored the role of customer trust and satisfaction in driving repeat

patronage in retail settings. These national studies provide insights

into the unique socio-cultural dynamics shaping customer patronage

behavior in the Philippines and offer practical implications for

businesses seeking to enhance customer relationships and loyalty.

On the other hand, in cities like Davao, studies on customer

patronage provide context-specific insights into consumer behavior

and preferences. Research by local scholars such as Garcia and Cruz

(2018) have examined the impact of store ambiance and customer

service quality on patronage intentions among residents of Davao City.

Additionally, studies by Davao-based researchers often delve into the

role of community relationships and word-of-mouth referrals in driving

patronage to local businesses, including sari-sari stores and small retail


18
establishments. These local studies offer nuanced perspectives on

customer patronage within the specific socio-economic and cultural

landscape of Davao City, contributing to a deeper understanding of

consumer behavior at the grassroots level.

Common Challenges Encountered by Sari-sari Store Owners

Sari-sari store owners encounter various challenges that affect their

operations and sustainability. One common challenge is increasing competition,

both from other sari-sari stores and larger retail establishments such as

supermarkets and convenience stores. With the proliferation of retail options,

sari-sari store owners must find ways to differentiate their offerings and attract

customers (Lacamiento, 2017).

Another challenge faced by sari-sari store owners is product substitution,

wherein customers opt for alternative products or sources due to availability,

pricing, or quality concerns. This can impact sales and profitability for sari-sari

stores, particularly if they are unable to meet customer preferences or match the

pricing of competitors (Lorenciana, 2017).

Additionally, changing consumer preferences pose a significant challenge

for sari-sari store owners. As consumer tastes and trends evolve, sari-sari store

owners must adapt their product offerings and marketing strategies to remain

relevant and appeal to their target market (Phibbs, 2017). Failure to anticipate

and respond to changing consumer preferences can result in decreased sales

and customer loyalty.

19
Furthermore, sari-sari store owners often face constraints related to

operational and logistical aspects of their business. Limited access to capital and

financial resources may hinder their ability to invest in inventory, store

improvements, or marketing efforts (Castro, 2016). Moreover, logistical

challenges such as inventory management, supply chain disruptions, and

transportation issues can affect product availability and overall store efficiency

(Garcia & Frugalidad, 2015).

Thus, the common challenges encountered by sari-sari store owners

include increasing competition, product substitution, changing consumer

preferences, and operational constraints. Addressing these challenges requires

strategic planning, adaptability, and innovation to ensure the long-term viability

and success of sari-sari stores in a dynamic retail landscape.

Synthesis

The review of related literature on marketing strategies explicates the

complex nature of marketing, encompassing not only communication activities

but also comprehensive planning and execution to achieve organizational

objectives. Strategic allocation and coordination of resources are essential for

effective marketing, emphasizing the importance of understanding customer

needs and creating distinct competitive advantages.

In the context of sari-sari stores, marketing practices are informed by

international, national, and local studies, offering insights into common strategies
20
such as discounts, promotions, and social media utilization. However, sari-sari

store owners encounter challenges such as increasing competition, product

substitution, changing consumer preferences, and operational constraints,

necessitating strategic adaptation and innovation to ensure long-term success.

By understanding these challenges and leveraging effective marketing strategies,

sari-sari store owners can enhance customer patronage, drive sales, and

sustainably grow their businesses.

CHAPTER II

METHODOLOGY
variables
Research Design citation

This study will utilize a descriptive-correlational research design to

examine the marketing practices of sari-sari stores near the Philippine Women's

College (PWC) of Davao and their impact on customer patronage. According to

Creswell (2024),descriptive research aims to describe the characteristics of a

phenomenon and identify relationships between variables without manipulating

21

description
them. This design is suitable for investigating the current status, practices, and

challenges faced by sari-sari store owners in implementing marketing strategies

and their effects on customer patronage.

Respondents of the Study description respondents

The respondents of this study will include sari-sari store owners and

customers (students) near the Philippine Women's College (PWC) of Davao.

Sari-sari store owners will provide insights into their marketing practices and

challenges, while customers will provide feedback on their patronage behavior

and preferences. The inclusion of both respondents will allow for a

comprehensive understanding of the dynamics between marketing strategies and

customer patronage.

Locale of the Study

PLACE OR LOCATION The study will be conducted in the vicinity


of the Philippine Women's College (PWC) of Davao, focusing on sari-sari stores

located within the surrounding area. This locale was chosen due to its

accessibility and relevance to the target population of sari-sari store owners and

college students, who are potential customers. Conducting the study in this

specific area will facilitate data collection and analysis while ensuring the

relevance of findings to the local context.

22
Sampling Technique

Respondents The study will employ purposive sampling to select 30

sari-sari store owners and 30 customers for participation. Description of

the sampling technique Purposive sampling involves selecting

participants based on specific criteria that are relevant to the research objectives.

Sari-sari store owners will be selected based on their proximity to the Philippine

Women's College (PWC) of Davao, while customers will be chosen based on

their patronage of these stores.

Data Gathering Procedure

Data will be collected through a combination of surveys, and observations.

Surveys will be administered to sari-sari store owners to gather information on

their marketing practices and perceived challenges. Similarly, surveys will be

distributed to customers to assess their patronage behavior, preferences, and

satisfaction levels.

Statistical Treatment

Descriptive statistics, such as frequencies, percentages, means, and

standard deviations, will be used to analyze survey data and summarize the

characteristics of marketing practices, customer patronage, and challenges faced

by sari-sari store owners. Inferential statistics, such as correlation analysis and

regression analysis, will be employed to examine the relationship between 23


marketing practices and customer patronage, as well as identify significant

predictors of patronage behavior. Statistical software, such as SPSS, will be

utilized for data analysis to ensure accuracy and reliability of results.

Below are the tables that present the interpretations regarding the

common marketing practices, and common challenges encountered by the sari-

sari store owners and the customer’s patronage.

Table 1. Interpretations on Marketing Practices


Scale Range Description Interpretations
4 4.00-3.00 Strongly Agree Sari-sari store owners strongly
implement these marketing practices,
indicating a high level of commitment
and consistency.
3 2.99-2.00 Agree Sari-sari store owners generally employ
these marketing practices, suggesting
their prevalence in their marketing
strategies.
2 1.99-1.00 Disagree Sari-sari store owners do not commonly
utilize these marketing practices,
indicating a deviation from typical
approaches.
1 1.00-0.99 Strongly Sari-sari store owners rarely or never
Disagree employ these marketing practices,
potentially impacting their store's
competitiveness.

Table 2. Interpretations on Customer’s Patronage


Scale Range Description Interpretations
4 4.00-3.00 Strongly Agree Customers highly agree that these
marketing practices strongly influence
their patronage of sari-sari stores near
PWC Davao.
3 2.99-2.00 Agree Customers generally agree that these
marketing practices influence their
patronage of sari-sari stores near PWC
Davao.
2 1.99-1.00 Disagree Customers tend to disagree that these
marketing practices significantly
influence their patronage of sari-sari
stores near PWC Davao. 24
1 1.00-0.99 Strongly Disagree Customers strongly disagree that these
marketing practices have any influence
on their patronage of sari-sari stores
near PWC Davao.

Table 3. Interpretations on Challenges Encountered by the Sari-sari store owner


Scale Range Description Interpretations
4 4.00-3.00 Strongly Agree Sari-sari store owners strongly agree
that these challenges significantly hinder
their marketing efforts near PWC Davao.
3 2.99-2.00 Agree Sari-sari store owners generally agree
that these challenges pose obstacles to
their marketing strategies near PWC
Davao.
2 1.99-1.00 Disagree Sari-sari store owners tend to disagree
that these challenges significantly affect
their marketing activities near PWC
Davao.
1 1.00-0.99 Strongly Disagree Sari-sari store owners strongly disagree
that these challenges have any impact
on their marketing endeavors near PWC
Davao.

Research Instrument

The study will use an adopted research questionnaire from

Marcos et al.,2022.

The research instrument for this study will consist of researcher-

made survey questionnaires designed to gather data from sari-sari

store owners and customers near the Philippine Women's College


25
(PWC) of Davao. The survey questionnaires will be structured to

address the research questions and objectives, focusing on marketing

practices, customer patronage behavior, and perceived challenges

faced by store owners.

Survey Questionnaire for Sari-sari Store Owners

The survey questionnaire for sari-sari store owners will include

items related to their marketing practices, such as promotional

activities, pricing strategies, product offerings, and customer

engagement efforts. Additionally, questions will be included to assess

perceived challenges in implementing effective marketing strategies,

including budget constraints, competition, and resource limitations.

The questionnaire will utilize a combination of closed-ended and open-

ended questions to gather quantitative and qualitative data.

Survey Questionnaire for Customers

The survey questionnaire for customers will cover topics such as

patronage behavior, satisfaction levels, preferences, and perceptions

of sari-sari stores near PWC of Davao. Items will be included to

measure frequency of visits, reasons for patronizing specific stores,

satisfaction with products and services, and likelihood of

recommending the stores to others. The questionnaire will also explore

factors influencing customer decision-making, such as convenience, 26


pricing, and product variety. Similar to the questionnaire for store

owners, a mix of closed-ended and open-ended questions will be used

to capture both quantitative and qualitative responses.

Validity and Reliability

The researcher-made survey questionnaires will undergo

rigorous validation and reliability testing to ensure their effectiveness

in gathering accurate and consistent data. Content validity will be

assessed by expert reviewers to confirm that the questions adequately

capture the constructs of interest. Additionally, pilot testing will be

conducted with a small sample of participants to evaluate the clarity,

relevance, and comprehensibility of the questionnaires. Test-retest

reliability analysis will be performed to assess the stability of

responses over time and ensure the consistency of measurement.

Ethical Considerations

Ethical considerations will be carefully addressed throughout the

development and administration of the survey questionnaires.

Informed consent will be obtained from all participants, and their

confidentiality and anonymity will be protected. Participants will be

assured that their participation is voluntary, and they may withdraw

from the study at any time without consequences. Furthermore, data

27
collected will be used solely for research purposes and will be securely

stored and accessible only to the research team.

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Common questions

Powered by AI

Understanding consumer preferences is critical because it enables sari-sari store owners to tailor their offerings and marketing strategies to better meet customer needs, thus enhancing satisfaction and loyalty. Methods to gather this information include customer feedback surveys, sales data analysis, and social media monitoring. Effectively utilizing this data involves adjusting marketing campaigns, product assortments, and service offerings to align with consumer trends and preferences .

The marketing practices of sari-sari store owners significantly influence customer patronage as they shape various dimensions of customer behavior and satisfaction. Effective strategies, such as targeted promotions and social media utilization, can increase visitation frequency, spending levels, and loyalty among customers. By addressing common challenges like changing consumer preferences and competition through strategic planning and innovation, store owners can enhance customer engagement and patronage, ultimately boosting sales and profitability .

Operational constraints and competition pose significant challenges for sari-sari store owners, impacting resource allocation and market positioning. Strategic management involves optimizing inventory, enhancing operational efficiencies, and differentiating through unique product offerings or customer service. Owners can invest in staff training, streamline supply chains, and monitor competitor strategies to remain competitive and maximize profitability .

The study of marketing practices in sari-sari stores near PWC of Davao contributes to the broader field by providing unique insights into micro-retailing environments and consumer behavior in specific cultural contexts. It highlights the significance of localized strategies and the adaptability required for small business success, offering case studies and data that enrich academic inquiry and practical application in similar market segments worldwide .

Sari-sari store owners face challenges such as limited access to capital, inventory management issues, supply chain disruptions, and adapting to changing consumer preferences. To address these, store owners need strategic planning, adaptability, and innovative marketing strategies. Solutions include investing in inventory and store improvements as resources allow, leveraging social media for promotions, and refining product offerings to align with consumer trends. These actions can foster resilience and sustain store viability in a competitive landscape .

Emerging trends, such as digital marketing and personalized customer experiences, can offer updated insights into consumer preferences and behaviors. Sari-sari store owners can adopt these trends by utilizing mobile marketing, tailoring promotions, and enhancing online presence to reach broader audiences. Applying these techniques can improve customer engagement through more personalized and responsive interactions, ultimately boosting customer satisfaction and loyalty .

The study benefits store owners by highlighting effective marketing strategies to optimize efforts, increase sales, and enhance profitability. Customers gain insights into how marketing practices influence their shopping experiences, enabling informed decision-making. The marketing industry can develop tailored approaches to better serve the needs of this market segment, fostering innovative solutions and strategies .

Customer visit frequency plays a crucial role in influencing satisfaction levels, as frequent visits can enhance familiarity and strengthen customer-store relationships. Increasing visit durations positively impacts satisfaction and can lead to higher levels of customer engagement, loyalty, and a greater likelihood of recommendations to others. This relationship suggests that practices enhancing visit frequency and duration could effectively increase overall customer patronage and satisfaction .

Future researchers can expand by exploring the impact of digital marketing, technological adoption, and evolving consumer behavior on sari-sari store practices. Investigating emerging market trends, adopting comparative studies across different regions or sectors, and analyzing the long-term effects of marketing adaptations on business sustainability can provide deeper insights leading to more comprehensive recommendations for enhancing customer patronage .

The conceptual framework lays the foundation for exploring how marketing practices influence different dimensions of customer behavior and satisfaction. By identifying independent variables (marketing practices) and dependent variables (customer patronage), the framework enables empirical analysis of these relationships. This systematic approach allows for assessing the effectiveness of marketing strategies in modifying customer behaviors such as visit frequency and spending levels .

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