POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Chapter 4

THE PROBLEM AND ITS BACKGROUND

Introduction

Within the rise of modern technology nowadays, people are more used

to avail products that can use ease one’s task and duties. People invent

products that combines multiple of works with a single touch of your

fingertips. With this, mobile phones came to exist. According to

BeBusinessed.com (2019) mobile phones were originally created to

people could take while they drove and initially called “earphones”, early

cell phones were bulky and expensive compared to today’s modern

devices and gadgets. It is created again to give everybody an ease and

relief for today’s weekly tasks. mobile manufacturers, sell products were

customers can buy on purchase their products swiftly. They construct

kiosk stores, concepts store and branches where in people tends to find

their product easily. Location of the products or goods is a vital element in

gaining profit. According to Tutorialpoint.com (2019) location of store is

an important and unique factor for the marketing team and which the

competitors cannot imitate. Hence it can give a strong competitive

advantage. Choosing the best location for store or any means to sell and

introduce by product. With this study. Store location is a vital role on

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introducing new mobile technologies and giving an edge with many

competitors that ran same line of mobile phones.

Background of the Study

Samsung mobile phones came to rise in the year 2000’s and started a

wide range of products that provides different wants and needs of the

customer. Since then, the company find ways to introduce their product

without being outstand by many mobile phone providers such as VIVO,

HUAWEI, OPPO, SONY, and NOKIA. The company find store location as

an advantage to compete with others.

In this study the researches will be determine the buying decision of

consumers in relation to the location of Samsung mobile store, in areas

where in it has an easy location to customers namely, Festival Mall

Alabang and SM South Mall.

Theoretical Framework

The Geographical Origin Theory

The increase in the number of brands, products and services that

are available on the market makes it more and more difficult for

consumers to choose between alternatives that satisfy their needs. It is

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like choosing the best of the best in the market industry. Company

nowadays make every effort to gain sales and definite numbers of quotas

to ensure market dominance on their own fields and expertise. In reaching

company's desired goals, most of them think of a way that the products or

services they offer will be patronized immediately by the public, and one of

this is the location or the geographic origin of a product. The significance

of product characteristics to geographic origin has been recognized in any

marketing research for many times and been supported by series of

studies.

Fig 7.0 Geographic Origin Verlegh and Van Ittersum Theory by (2001)

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In this research, Geographic Origin of Verlegh and Van Ittersum (2001)

was used. According to them, the theory responds that origin of the

product or the location of the product is a thing for a consumer to decide

whether he or she would buy a specific product or service. Wall et. al.

(1991) and Van Ittersum (1999) supports that geographic product origin

has been found to have a product-specific effect on product evaluations,

so that a particular origin may have a positive influence on the evaluation

of one product, while having a negative influence on the evaluation of

another. According to Verlegh and Steenkamp (1999) the impact of

geographic origin on consumer product evaluations has been found to be

substantial which suggests that, for most consumers, geographic origin

has a large predictive and confidence value.The consumer usually

searches his or her memory (the psychological field) before seeking

external sources of information regarding a given consumption related

need. Past experience is considered an internal source of the consumer

is likely to need to reach a decision. Many consumer decisions are based

on a combination of past experience, marketing and noncommercial

information (Schiffman & Kanuk, 2004).

The theory consist of three variables namely: Cognitive Aspect,

Affective Aspect and the Normative Aspect and the Sub-variables

respectively: Confidence Value (CV), Predictive Value (PV),

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Experiential beliefs, Inferential beliefs, Feelings, Symbolic meaning,

Consumer Ethnocentrism, and Boycotts and Buycotts. The Cognitive

Aspects of Geographic Origin, relate to the beliefs that are associated

with the geographic origin of a product, while Affective Aspects refer to

the feelings or emotions that are evoked by the place of origin. For

example, when buying vegetables in the market consumers preferred to

buy vegetables raised from Benguet because of the belief that

agricultural products are good in that area, that is Cognitive Aspect while

for Affective Aspect; a consumer buys vegetables on that place due to

persuasive selling of the vendor. Normative aspects relate to personal

and social norms regarding the purchase and use of products from a

particular origin. For example, you buy a specific product because ithas

been part of your life and there lies a tradition or culture or significant

event happen on that place

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Conceptual Framework

Input Process Output

1. Profile of the
Respondents
1.1 Sex
1.2 Age
1.3 Civil Status
1.4 Socio Economic
Status
1.5 Number of Years of
using of Samsung o Relationship of
Mobile Products Location to
Customer Buying
2. Relationship of location
to customer buying
Decision Assessed
decision
2.1 Cognitive Aspect

2.1.1 Confidence Value

Presentation, analysis
2.1.2 Predictive Value

2.1.3 Experiential and interpretation of

o Effects of Location
Beliefs data gathered through to Customer
2.1.4 Inferential Beliefs
questionnaire Buying Decision
2.2 Affective Aspect Assessed
2.2.1 Feelings

2.2.2 Symbolic Meaning

2.3 Normative Aspect

2.3.1 Consumer

Ethnocentrism
o Recommendations
2.3.2 Boycotts and

Buycotts

3. Impact of location to
customer buying
decision
3.1 Cognitive Aspect
3.2 Affective Aspect
3.3 Normative Aspect

Feedback

Fig 8. Conceptual Framework

This study used the system analysis approach of Input-Process-

Output Model (IPO) to support the research as a whole and will guide

the development and direction of the study.

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Statement of the Problem

This study discussed about Comparative analysis of the relationship of

location to the customer buying decision among Samsung concept

stores between Festival Mall & SM Southmall Las Piñas

Specifically, the study aimed to answer the following sub problems:

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

following variables?

1.1 Sex

1.2 Age

1.3 Civil Status

1.4 Socio Economic Status

1.5 Type of Customer

1.5.1 First-time Customers

1.5.2 Potential Customers

1.5.3 Regular Customers

2.) What is the relationship of geographic location to customer

buying decision as perceived by the respondents in terms of the

following variables?

2.1 Cognitive Aspect

2.1.1 Confidence Value

2.1.2 Predictive Value

2.1.3 Experiential Beliefs

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2.1.4 Inferential Beliefs

2.2 Affective Aspect

2.2.1 Feelings

2.2.2 Symbolic Meaning

2.3 Normative Aspect

2.3.1 Consumer Ethnocentrism

2.3.2 Boycotts and Buycotts

3.) Is there any significant relationship between location and

customer buying decision of Samsung concept store of Festival

Mall, as perceived by the respondents?

4.) What are the impact of location to customers buying decision?

4.1 Cognitive Aspect

4.2 Affective Aspect

4.3 Normative Aspect

5.) Are there any significant effects in location to customer buying

decision of Samsung concept store of Festival Mall, as perceived by

the respondents?

6.) Are there any significant relationships of location to customer

buying decision between Samsung concept store of Mall and SM

South Mall Las Piñas Festival as perceived by the respondents?

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Hypotheses

1. There is no significant difference on the effects in location to customer

buying decision of Samsung concept store of Festival Mall, as

perceived by the respondents when they are grouped according to

profile

2. There is no significant difference on the relationship of location to

customer buying decision between Samsung concept store of Mall and

SM South Mall Las Piñas Festival as perceived by the respondents

when they are grouped according to profile

Scope and Limitation

This study focuses on the relationship of location on the customer’s

buying decision between Festival Mall and SM South Mall Samsung

stores. The study will focus only on Consumer demographics in the

Samsung Festival Mall and SM Las Piñas Concepts Stores

respectively.

The data collection will be conducted to the regular users and

potential users of Samsung who will represent the population. This

study will not cover other problems that are not consider as one of
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customers buying decision. The study would be done through the

utilization of questionnaire to the customers as a survey and reference.

The researchers will be able to know the buying decision of the

customers by the strategy.

Significance of the study

This study on the comparative analysis of the relationship of location

on customer buying decision of Samsung concept store are relevant

and will be beneficial to the following.

Samsung. This study could be used by Samsung branches for them

to improve their strategies in grasping customer attention.

Entrepreneurs. This study will alert businesses who are still finding

a place to build their enterprise to identify a profitable business location.

Customer. This study could be used by the customers to gain

knowledge on their buying decision and how it affects them.

Marketers. This study can help marketers to make innovative and

new strategies that mainly focus in the placement of the business.

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Students and Future Researchers. It is significant to the students

that would possibly use this study as a reference in the future.

Definition of Terms

For better understanding of the manuscript, the following words are defined

operationally and conceptually

Comparative Analysis. Can be an item-by-item comparison of two or more

comparable alternatives, processes, products, qualifications, sets of data,

systems, or the like.

Concept stores. It is a retail store selling a wide variety of product categories

under a single brand.

Customer Buying Decision. is the thought process that leads

a consumer from identifying a need, generating options, and choosing a

specific product and brand.

Homogeneous product. Is one that cannot be distinguished from

competing products from different suppliers

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Innovation. Generally refers to changing processes or creating more

effective processes, products and ideas.

Location. A place where the business enterprise is situated or located.

Mall. a large building or series of connected buildings containing a variety of

retail stores

Price skimming. is a product pricing strategy by which a firm charges the

highest initial price that customers will pay.

Product line. is a group of related products all marketed under a single

brand name that is sold by the same company

Relationship - the state of being related or interrelated

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Chapter 6

RESEARCH DESIGN AND METHODOLOGY

This chapter discusses the way the researcher conducted the study. It

represents the method of research used, the sample size, the population,

the sampling technique, the respondents, the instrument used to generate

the data required and the statistical technique/s for the analysis of data.

Method of Research

The study used a descriptive method of research to fulfill the objective

of this study. According to Nassaji (2015), Qualitative research, however,

is more holistic and often involves a rich collection of data from various

sources to gain a deeper understanding of individual participants, including

their opinions, perspectives, and attitudes. Qualitative research collects

data qualitatively, and the method of analysis is also primarily qualitative.

To get the relevant data needed, the researcher utilized a survey

questionnaire. This method helped the researcher to describe the

circumstances on the current period the study was conducted.

` The researcher distributed 290 questionnaires through convenience

sampling technique. The sample size for this study uses the Slovin’s

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Formula but the researcher was only able to get 169 answered

questionnaires back.

Slovin’s Formula:

N = N

1 + Ne²

Where:

n=sample size

N=population size

e=margin of error

N = 300

1 + 300 (0.0025)

N = 300

1 + .725

N = 300

1 .725

N = 171.42 or 171

Population, Sample Size, and Sampling Technique

The target population of the study were Customers of Samsung

Concept stores belonging with the categories specified by the researcher:

First-time Customers, Potential Customers and Regular Customers who

are happen to be in the Concept Stores at the moment we are gathering

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data. They were customers who are willing to purchase or have at least an

Interest in buying Samsung products. The researcher used the

Convenience Sampling technique and selected respondents that were

easily accessible and can provide immediate response. Convenience

Sampling Technique is a type of non-random sampling or non-probability

sampling technique which obtained by using any groups who happens to

be accessible at the moment of research.

Description of Respondents

A total of ____ of Customers of Samsung Concept Stores were the

respondent of the study. The respondents were described according to

the following variables: their sex, age, civil status, Socio Economic Status

and Number of Years of using of Samsung Mobile Products.

The respondents of this study were categories by the researches these

are First-time Customers, Potential Customers and Regular Customers

which are customers who are willing to purchase or have at least an

Interest in buying Samsung products.

Research Instrument

The instrument used was a researcher-made questionnaire checklist to

gather the needed data for the student’s profile. The draft of the
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questionnaire was drawn out based on the researcher’s readings,

previous studies, professional literature, published and unpublished thesis

relevant to the study. In the preparation of the instrument, the

requirements in the designing of good data collection instrument were

considered. For instance, statement describing the situations or issues

pertaining was toned down to accommodate the knowledge preparedness

of the respondents.

In ranging the respondents, the researchers adopt the Likert Scale. The

questions that adopted Likert Scale that offer four answerable options with

a reasonable scale will be provided by the researchers. These options

varied depending on the factors being assessed. Whereas the 4 is in the

position for the strongest or highest emotional perspective which

documentarily described as “maximum range”; 3 is for “in-range”

depending on the factors being assessed; 2 is for “less in-range”; and 1 is

the lowest “not in-range” depending on the factors being assessed.

Mean Value Scale Relationship Impact

4 Completely Agree Very Effective

3 Mostly Agree Effective
Somewhat
2 Less effective
Disagree
1 Strongly Disagree Not Effective

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Data Gathering Procedure

The first step before going to the testing proper is to make a request

letter. Upon approval, the researcher retrieves the request letter. The

Principal, as well as class advisers and other faculty members were

selected in the administration. In administering the questionnaire, the

researcher was use the time allotted for vacant to avoid distractions of

class discussions. The student responses were given enough time to

answer the questions. After data gathering, the researcher now collected it

for tallying the scores and to apply the statistical treatment to be used with

the study.

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