FACTORS INFLUENCING CUSTOMER’S GROCERY STORE

PREFERENCE IN VALENCIA CITY, BUKIDNON

DURING ACADEMIC YEAR 2018-2019

JEZREEL C. TUBAL
NICOH T. TORMO
CHARMEN M. ZAFRA
PINKY AMOR C. RAMONAL
AILEEN T.LOBITAÑA

MARCH 2020
 FACTORS INFLUENCING CUSTOMERS’ GROCERY STORE
PREFERENCE IN VALENCIA CITY, BUKIDNON
DURING THE ACADEMIC YEAR 2018-2019

A Thesis
Presented to the
Faculty of the School of Business and Accountancy
Mountain View College
Valencia City, Bukidnon

In Partial Fulfillment
of the Requirements for the Course
BUSINESS RESEARCH

Tubal, Jezreel C.
Tormo, Nicoh T.
Zafra, Charmen M.
Ramonal, Pinky Amor C.
Lobitaña, Aileen T.

Fernando, Ronnel Aldin, MMHRM, DBA (C)

Research Adviser

MARCH 2020

ii
 APPROVAL SHEET

This thesis entitled FACTORS INFLUENCING CUSTOMER’S GROCERY

STORE PREFERENCE IN VALENCIA CITY, BUKIDNON DURING ACADEMIC
YEAR 2018-2019, prepared and submitted by Jezreel Tubal,
Nicoh Tormo, Charmen Zafra, Pinky Amor Ramonal, Aileen
Lobitaña, in partial fulfilment of the requirements for the
course Business Research, has been examined, accepted and
recommended for Oral Examination.

Ronnel Aldin D. Fernando, MMHRM, DBA (c)

Adviser

PANEL OF EXAMINERS

APPROVED by the Oral Examination Committee

Allen C. Monta, C.P.A, M.B.A., DM

Chairman

Donato P. Iligan, DBA Apolinar Paulican, PhD

Member Statistician

Accepted and approved in partial fulfillment of the

requirements for the course BUSINESS RESEARCH.

Allen C. Monta, CPA, DM

Dean, School of Business and Accountancy

March 4, 2019
Date of Oral Defense

iii
 English Editing Certification Form

This is to certify that I have edited this thesis

manuscript entitled

“FACTORS INFLUENCING CUSTOMER’S GROCERY STORE PREFERENCE IN

VALENCIA CITY, BUKIDNON DURING THE ACADEMIC YEAR 2018-2019”

Prepared by:

JEZREEL C. TUBAL
NICOH T. TORMO
CHARMEN M. ZAFRA
PINKY AMOR C. RAMONAL
AILEEN LOBITAÑA

And have found it thorough and acceptable with respect to

grammar and composition.

Asst. Prof. Missi M. Ortega, MA

Signature over printed name

May 18, 2021

Date

iv
 This Thesis is dedicated to:

To our loving families represented by each one of

us who give moral and financial supports

v
 ACKNOWLEDGMENT

The completion of this study is the result of the

cooperation and assistance of our Almighty God, who has
sustained us with heavenly wisdom, understanding, strength
and good health throughout our research work to complete
the research successfully.

First and foremost, to our parents, who have been

always there for us and for their unending support and love
to us, for their moral and financial support that carry us
through this study;

To our class and thesis adviser, Asst. Prof. Ronnel

Fernando, who has given his precious time by helping us in
our research work, by sharing his ideas, by editing the
analysed data, and by giving some pieces of advice for this
study;

To the panel members, Dr. Monta and Sir Iligan, who

have given us some suggestions and recommendation for us to
finish this study;

To Dr. Paulican, our research statistician, who helped

us analyse and interpret the data;

To our participants, who took time and cooperated in

answering the questionnaires, who without them, this study
will not become possible.

vi
 ABSTRACT

Groceries stores are found anywhere; and they offer

almost everything consumers need. Knowing and understanding
the customers buying preference is a great help in order to
make one’s business grow. Consumers’ behaviour must be
studied because their behaviour affects certain decision
taken by firms. Several studies summarized the possible
factors that can affect the consumers’ buying preferences.
Researchers identified six broad categories that affect
consumers store preference: store atmosphere,
accessibility, price, service, product mix, and promotion.
This study was conducted on a survey in Valencia City,
Bukidnon and the respondents were the consumers of the 5
grocery stores existing in the city. Using the exploratory
factor analysis the data was reduced to a smaller set of
variables. Findings revealed that indeed these factors
influence the consumers buying preferences especially in
choosing which grocery store to buy in Valencia City,
Bukidnon.

vii
 TABLE OF CONTENTS
Page
TITLE PAGE............................................... ii
APPROVAL SHEET.......................................... iii
ENGLISH EDITING CERTIFICATION FORM ..................... iv
DEDICATION ............................................... v
ACKNOWLEDGMENT .......................................... vi
ABSTRACT ............................................... vii
TABLES AND FIGURES
Chapter
1 INTRODUCTION
Background of the Study ............................1
Statement of the Problem ...........................4
Hypothesis Statement ..............................5
Scope and Delimitation .............................5
Significance of the study ..........................5
Definition of Terms ................................6

2 THEORETICAL FRAMEWORK
Theoretical Framework ..............................8
Conceptual Framework ..............................11
Factor Affecting Costumers’ Preferences ..........12
Review of Related Literature ......................15

3 METHODOLOGY
Research Design ...................................20
Research Environment ..............................20
Research Respondents ..............................21
Research Instrument ...............................21

viii
 Data Collection Procedures ........................21
Statistical Treatment of the Data .................22
4 DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Problem 1 .........................................23
Problem 2 .........................................27
5 FINDINGS, CONCLUSION AND RECOMMENDATIONS
Findings ..........................................30
Conclusions .......................................30
Recommendation ....................................31
REFERENCES.............................................33
APPENDICES
A Letter of Approval ................................. 37
B Letter of Consent .................................. 38
C Research Instrument ................................ 39
D Curriculum Vitae ................................... 43

ix
 LIST OF FIGURES

FIGURE TITLE PAGE

1 Research Paradigm 15
2 The Demographic Profile of the Respondents 24

LIST OF TABLES

TABLE TITLE PAGE

1 KMO and Bartlett’s Test 27

2 Rotated Component Matrix 28

x
 Chapter 1

INTRODUCTION

Background of the Study

In today’s generation, everything in the household

kitchen and personal consumption are found in a grocery
store. Merriam Webster defines “grocery” as a store that is
engaged in retailing a general range of products and is
somehow a synonym for “supermarket”. Fruits and veggies,
pantry staples, meat and seafood, generic products and the
things that people often used and consumed in their daily
lives can be purchased in grocery stores. That is the
primary reason why grocery stores can be seen everywhere.
(Nwagwu, 2013)

There are two kinds of individual that are locked in

within the word basic supply. The buyer or the
consumer/customer and the seller. Seller or supermarket
owners need to study the consumers buying process and
preferences for it describes the journey customers go
through before they go to a store and buy a product.
Naturally, costumers want the suppliers’ business to be
successful. Understanding the customer’s behavior is one of
the elements that help businessmen or storeowners to be
successful. (Kuloba E. Phoebe, 2015)

1
 Understanding a customer’s buying preference is not
only very important for the salespeople. It will also
enable to align the sales strategy accordingly. These days,
retailers can access data on product demand levels on a
minute to minute basis across their fleet on stores.
(Kuloba E. Phoebe, 2015)

According to a study conducted in Nairobi, Kenya.

Customers are drawn to supermarkets because they are
conveniently placed and offer affordable prices and good
customer service, according to the report. Maintaining a
clean facility in a convenient location with suitable
running hours, in particular, is a guaranteed method to
ensure a consistent flow of consumers into a business,
while the availability of a diverse selection of items
would stimulate patronage (Kanyi, 2010). Also, in small
independent green grocers in Perth, Western Australia, have
been able to maintain their market share by focusing on
higher product quality and customer care. Given that
product quality is the most essential factor influencing a
consumer's decision to shop at a certain retailer,
emphasizing product quality and range must remain a
significant point of differentiation (Batt, 2008). Grocery
store owners should pay attention to their loyal customers
by continuing to provide them with deals that meet their
needs, as well as devising tactics to recruit non-loyal
customers. As a result, we can see that there are certain
specific factors that are most important in deciding a
consumer's shopping behavior, and these should be carefully

2
addressed by retail organizations, given the large
opportunity that exists in the retail industry.

Therefore, consumers’ behavior must be studied because

their behavior affects certain decision taken by firms.
Retailer should contrive strategies that will improve the
image of the store in order to increase shopping
activities, which will eventually lead to greater
profitability. This can be achieved by trying to convert
consumers into loyal customers by identifying their needs
and wants and by providing an offering that will satisfy
the consumers and win their loyalty (Phoebe, 2015).

This study was about factors that influence consumers’

buying preferences in the grocery stores found in Valencia
City, Bukidnon and the relative importance of such factors.
The major objective of the study was to determine the
factors that influence consumers’ choice of grocery stores
to patronize. Other specific objectives included, ranking
the identified factors in order of their importance, to
determine consumers’ grocery store loyalty status. To
achieve this, a sample of grocery stores customers in all 5
grocery stores existing in Valencia City, Bukidnon was
selected using systematic sampling.

3
Statement of the Problem

This study determined the factors influencing

customers’ store preference in buying groceries.
Specifically, it will seek to answer the following
questions:

1. What is the profile of grocery store customers in

terms of:

a. age

b. gender

c. income

d. educational attainment

e. occupation

f. civil status

2. What are the factors influencing consumers’ grocery

stores preference in:

a. Gaisano

b. NVM

c. Robinson’s Supermarket

d. Roy Plaza

e. Metro Gold

4
Hypothesis Statement

Null Hypothesis

Store Atmosphere, Accessibility, Price, Service,

Product Mix, Promotion do not influence consumer
preferences of grocery stores in Valencia City.

Alternative Hypothesis

Store Atmosphere, Accessibility, Price, Service,

Product Mix, Promotion influence consumer preferences of
grocery stores in Valencia City.

Scope and Delimitation

This study only presents the factors that influence

consumers in choosing which store to buy groceries in the
major grocery stores in Valencia City, Bukidnon during this
year 2018. The 5 major supermarkets that are included in
the survey were NVM, Gaisano, MetroGold, Robinson’s and Roy
Plaza. These supermarkets offer much more varieties of
products to choose from.

Significance of the Study

This study will benefit the following stakeholders:

Business firms/Grocery store owners. Upon knowing the

factors that influence store preference in buying
groceries, they can be innovate their marketing strategies

5
and improve their store so that the customers will be
satisfied and that they can shop comfortably according to
their preference after the business firms innovate their
store.

Consumers. After the store innovates their performance, the

customers can now shop easily according to their
preference.

Students. Business students or aspiring business owners can

build their business and attract more customers according
to the preferences of the customers.

Definition of Terms

Accessibility-In this study, the term accessibility

includes the location and parking space of the store.

Customers’ Store Preference- According to (Weedmark,

2018), customers store preference is defined as the
subjective taste of individual consumers, measured by their
satisfaction. In this study, the term is used to identify
the consumers liking in store.

Price- Merriam Dictionary defines price as the amount of

money given or set as consideration for the sale of a
specified thing. In this study, the prices of the products
found in the store are of a reasonable price.

Product-mix- In this study, the term is used to see that

the store has a significant product variety.

6
Promotion- The term refers to the entire set of
activities, which communicate the product, brand or service
to the user. The idea is to make people aware, attract and
induce to buy the product, in preference over others. In
this study, promotion is used to study the use of
advertising and promotions of the store to reach its target
customers.

Service- In this study, the term is used to study if the

management and workers of the store are well mannered.

Store Atmosphere- According to (Parveen, 2017), Store

Atmosphere is a major part of the store design and it
is defined as the dominant sensory effect created by
the store's design, physical characteristics and
merchandising activities. The phrase is employed in this
study to describe the store's ambiance. The store's wet
market has no unpleasant odors, and it is well-lit and air-
conditioned.

7
 Chapter 2

THEORETICAL FRAMEWORK AND LITERATURE REVIEW

This chapter contains the theoretical framework,

conceptual framework and review of related literature that
explains why the research problems under study exist.

Theoretical Framework

The nature of this research is focused on the factors

that influence customers in choosing grocery stores that
exist nowadays. The purpose of this study is to carefully
examine existing literature associated with the topic of
research. For understanding consumer choices, the
researchers search for articles and related studies. More
particularly, the search was limited to publications made
between 2003 and 2017, while focusing only on retail format
choice in the grocery context.

Several studies on how to attract customers and make

them buy at a retail store have been undertaken. These
studies have been identified in retail and consumer
behavior literature that effect store patronage by
customers. Researchers identified six broad categories that
effect consumer store preference: store atmosphere,
accessibility, price, service, product mix and promotion.

8
This study is based on the following theories:

1. Customer Relationship Management. Customer

Relationship Management (CRM) is a policy or ideology
that outlines how an organization can interact with
its clients. A customer relationship management
strategy's goal is to optimize successful customer
relationships by growing the relationship important
for both the supplier and the customer in most
businesses. Customer experience management is a
critical component of any business growth, and it
necessarily requires a comprehensive plan and process
to be effective. The conceptual framework of customer
relationship management is analyzed to examine
outcomes (Mugunthan, 2017).

2. Store Ambiance, Customer Satisfaction, and Purchase

Intention. It is difficult to choose which store to
visit while shopping in retail markets. This problem
arises as a result of a variety of retailers selling
identical goods at low prices. Many stores are making
changes in order to bid for customers' interest.
Customer satisfaction can be influenced by store
ambiance, which can lead to increased purchase intent
(Mauer, 2017).

3. Factors Affecting Shoppers’ Brand Preference towards

Choosing Retail Stores. Store ambience, store
location, store configuration, parking facility, and
salesperson service level are all factors that affect
shoppers' brand tastes when it comes to shopping in

9
 retail stores. Customer demand for retail stores is
influenced by all five factors. The parking facilities
and the store's location were discovered to be the
most important factors. As a result, it is suggested
that retail store managers consider these five factors
to be strategically important in order for their
stores to become shoppers' preferred destinations
(Bhukya, 2016).

4. Store brands’ purchase intention: Examining the role

of perceived quality. With the rise of store brand
market share across the world, the current research
seeks to answer the following question: “Does consumer
product perceived quality affect store brand
proneness?” or, to put it another way, “Does product
perceived quality influence store brand purchasing
intention?” This is important to consider since
perceived quality is a variable that is determined by
the consumer. The current research suggests and
empirically studies a conceptual model of the impact
of store brand perceived product quality on perceived
value and purchasing intention. The findings indicate
that perceived consistency could play a moderating
role in some of the proposed relationships. Market
segmentation and marketing campaigns focused on
consumers' perceived quality could be developed by
store brand managers and retailers (Cristina, 2017).

10
 5. Consumer Behavior Analysis: Behavioral Economics Meets
the Marketplace. Behavioral economics has been
extended to include the study of human consumers'
behavior in natural settings offered by market
economies. Precisely, it is concerned on how
behavioral economics has been extended to include the
analysis of human consumers' behavior in natural
settings provided by market economies. It is argued
that customer behavior analysis should be used in
applied behavior analysis (Foxall, 2013).
6. Interpreting value in the customer service experience
using customer-dominant logic. Customer value has
traditionally been analyzed from the standpoint of the
business. The need to step away from the service-
dominant viewpoint to follow a consumer-based approach
that recognizes value within the wider sense of a
customer's life world is highlighted by new
understandings of customer value from the business-
dominant logic view of services. Individual consumers
make sense of their involvement in a unique,
commercially oriented consumption experience. To
comprehend the lived experience of these people, a
phenomenological approach is used (Tynan, 2014).

Conceptual framework

There are many factors also why customers are now

loyal to a grocery store. These include store atmosphere,

11
accessibility, price, service, product mix, promotion
(Phoebe, 2015)

Factors affecting Customer’s Preferences

Store atmosphere. What is the concept of an

atmosphere? In marketing, the word "atmosphere" refers to
the deliberate construction of a space in order to obtain a
desirable response from customers. It is the attempt to
create a retail experience that has emotional impacts on
the customer in order to maximize their chances of making a
purchase (Mishra, 2017). The shop environment is the
stimulus that triggers a consumer's evaluation of the
environment, as well as certain behavioral responses.
Consumers' perceptions of consistency may be enhanced by
the retail environment, leading to higher levels of
convincing (Doucé, 2013).

Accessibility. Accessibility refers to people’s

ability to reach desired services and activities, which is
the ultimate goal of most transport activity. Many factors
affect accessibility, including mobility (physical
movement), the quality and affordability of transport
options, transport system connectivity, mobility
substitutes, and land use patterns. Accessibility can be
evaluated from various perspectives, including a particular
group, mode, location or activity (Litman).

12
 Price. Speaking broadly, the price is the sum of all
the values that a customer gives up to gain the benefits of
having or using a product or service. Thus, customers
exchange a certain value for having or using the product –
a value we call price. Historically, price has been the
major factor affecting buyer choice. However, in recent
decades, non-price factors have gained increasing
importance. Yet, the price is still one of the most
important elements of the marketing mix. It may determine
very much of a firm’s market share and its profitability
(Claessens, 2015).

Promotion. One of the most important components of the

marketing mix is promotion. It involves convincing the
target group to purchase the company's goods by
communicating with them and identifying their needs. (Badi,
2018). Promotions refer to the entire set of activities,
which communicate the product, brand or service to the
user. The idea is to make people aware, attract and induce
to buy the product, in preference over others. Promotional
methods may include: website, social media, Blogging, e-
newsletters, networking, brochures and flyers, TV, radio or
print advertising, word of mouth, loyalty and reward
programs (Wellington)and (Lake, 2019).

Service. Client relations aspect is the company-

wide handle of sustaining positive connections together
with the clients. It is the entirety of

13
all client intelligence and experiences. No matter
how particular the distinctive parts of a team,
every activity taken by each individual within
the trade contributes to or degrades from a
positive client relationship (Wellington). Customer support
is the face-to-face interaction a business owner or company
has with a client or customer, whether it is by text,
phone, or in person. If a business owner or company has a
client who can grow trust for the company, it is determined
by how the owner or company performs the personal
experience with the client (Lake, 2019).

Product Mix. The entire selection of goods and or

services provided by a company is referred to as product
combination, also known as product assortment or product
portfolio. A product mix is made up of product lines, which
are related goods that customers are likely to use together
or consider to be identical products or services. Kotler
and Armstrong (2012) describe a product as anything offered
to a market for attention, acquisition, use, or consumption
that might satisfy a need or want. On the contrary, “a
service can be defined as any activity or benefit that one
party can offer to another that is essentially intangible
and does not result in ownership of anything”.

14
Factors:

1.Store Atmosphere

2. Accessibility Consumers’
3. Price
Preference
4. Service
on Grocery
5. Product Mix
Stores
6. Promotions

Figure 1.

The research paradigm shows the relationship of the

possible factors that can affect the consumers buying
preferences in grocery stores.

Review of Related Literature

Store Atmosphere

One of the most important factors is store atmosphere.

It plays an important role in attracting consumers towards
various retail formats. Studies indicated that this factor
is most influential for modern store formats. This is
because in modern stores, the customers find it easy to

15
move around and find their desired products effortless
(Phoebe, 2015).

Among earlier studies, consumers have looked into

different aspects of store atmosphere in different ways.
Some studies looked at it from the perspective of store
environment. Some tested it with reference to store layout,
convenient shopping inside the store, store ambience,
music, lightning, and colors. Researchers (Wel, Hussin,
Omar, & Nor, 2012) and (Batra, 2014) described store
atmosphere as level of cleanliness and sanitation. They
found that cleanliness makes a high and positive impact on
consumer purchase behavior. According to Ali (2012), modern
stores have an advantage over traditional stores due to
ease in mobility inside the store and proper lighting and
signage for consumers’ convenience. In this regard, store
atmosphere works positively on costumers’ perception
towards retail format choice.

Accessibility

A study shows that location convenience is another

significant factor that attracts customer to different
store formats. The reason is that the majority of the
population does not prefer the usage of means of
transportation to reach distant locations for daily grocery
shopping.

(Zulqarnain, Zafar, & Shahzad, 2015) and (Wel, Hussin,

Omar, & Nor, 2012) refer location as distance between place

16
of residence and the grocery store. They found that
location convenience has an impact on store format choice.
(Olabanji & Matiza, 2014), (Palma, Emerson, & House, 2003)
(Chaiyasoonthorn & Suksa-ngiam, 2011) and (Pugazhenthi P. ,
2010)found that convenient location has an important impact
on store choice decision.

Price

Studies have pointed out the importance of competitive

prices on a choice of store formats. People who are more
price conscious prefer to shop in stores that offers low
price and only if the price are reasonable. There are
studies that have looked into various aspects of price
competitiveness. (Ali, 2012) and (Subhra Mondal M. M.,
2017) found that competitive prices had positive
relationships in the store format. (Zulqarnain, Zafar, &
Shahzad, 2015), (Wel, Hussin, Omar, & Nor, 2012) , (Palma,
Emerson, & House, 2003)also concluded that the price had
played a significant and important role in selecting store
format and had an obvious imprint on consumer shopping
behavior. (Tafadzwa Matiza, 2014)and (Pugazhenthi P. ,
2010) found that the price is the most important factor
influencing customers especially in the purchase of food
and grocery. (Mukherjee, 2011)looked at the price in
comparison between traditional and modern stores. Their
results showed that the price had positive impacts on both
store formats. However, the most important finding was that
consumers perceived that prices were higher in modern store
due to more sales staffs, lighting, being neat and clean
and using air conditioning.

17
Service

In modern stores the sales staffs are well trained,

educated and interacts regularly with the customers.
According to (Batra, 2014) treating the customers with the
utmost respect and helping them in finding the right
products attract customers. Customers who prefer to shop in
modern retail stores give most attention to the store
staff’s courtesy and behavior (Tafadzwa Matiza, 2014),
(Ali, 2012), (Mishra, 2017) and (Wel, Hussin, Omar, & Nor,
2012)found that courtesy of staff have positive effect on
consumer attitude and also attract customers towards the
retail stores.

Product Mix

Most customers perceived that modern retail stores

have growing influence compared to traditional store
formats due to the assortment of different brands available
in a retail store (Batra 2014). (Zulqarnain, Zafar, &
Shahzad, 2015) (Wel, Hussin, Omar, & Nor, 2012), (Olabanji
& Matiza, 2014)and (Palma, Emerson, & House, 2003)
concluded that product variety has a positive impact on
store format choice and store loyalty. In these studies,
findings show that customers preferred to choose to shop
that stocked larger product varieties. Ali (2012) and
Batra(2014) found that due to large product variety in
modern stores, customer preferred to go for grocery
shopping there.

18
Promotion

Studies show that promotion is another significant

factor that attracts customers. The reason is that well
designed marketing and promotional strategies persuade
customers that the product is better than the other
competitive products and remind customers about why they
may want to buy (Wel, Hussin, Omar, & Nor, 2012)). He
defines promotions as external communication which is
needed by the store to attract customer to visit their
outlets.

Many researchers have looked into various aspects of

promotion. According to (Batra, 2014) and (Wel, Hussin,
Omar, & Nor, 2012), promotion is one of the significant
factors and positively results in attracting customers to
the store.

19
 Chapter 3

METHODOLOGY

This chapter contains the research design, the

description of the environment where the study will be
conducted, and the respondents of the study.

Research Design

This study employed the exploratory research design.

This research design is conducted to address a problem that
has not been studied more clearly. Furthermore, it merely
intends to explore the research questions and does not
intend to offer final and conclusive solutions to existing
problems but helps the researchers to have a better
understanding of the problem.

Research Environment

This study was conducted at Valencia City, a 2nd class

municipality in the province of Bukidnon. It is the most
populous among all cities and municipalities, and the 6th
largest in terms of area, in the whole province of
Bukidnon. There are a number of the leading stores
established in Valencia City. These include Roy Plaza,
MetroGold, NVM, Robinsons, and Gaisano.

20
Research Respondents

The respondents of the study were the consumers and

the people who are present in the grocery stores during the
gathering of data in Valencia City. There were a total of
150 respondents. The researchers’ chose 30 customers
through random sampling in each of the 5 major grocery
stores existing in Valencia City, Bukidnon.

Research Instruments

The researchers used questionnaires in gathering the

data. There were26 questions divided into 6 major aspects.
There were 11 questions under Store Atmospherics, 4
questions under Accessibility, 3 questions under Price, 3
questions under Service, 2 questions under Product-Mix and
3 questions under Promotion. All questions can be answered
by checking and rating in a scale of 1-5 where 5-strongly
agree, 4- agree, 3-undecided, 2-disagree and 1-strongly
disagree.

Data Collection Procedure

The researchers asked permission from the management

of the store, as well as the customers of the store if they
are willing to participate in the study. The permission was
granted so we conducted the survey. The respondents were
chosen through random sampling. We write numbers 1-10 on a
piece of paper and put it in a box; we then shake the box
and get a paper; we count the number of individuals who
went by us, and the number we got will be our next

21
respondent. After answering the questionnaires, the
researchers verified if all the questions were answered.

Statistical Treatment of the Data

The encoded data were checked for correctness and

accuracy. Then, the data were analyzed using KMO and
Barlette’s test and the exploratory factor analysis. KMO
and Bartlette’s test indicates the proportion of variance
in the variables that might be caused by underlying
factors. High values (close to 1.0) generally indicate that
a factor analysis may be useful with your data. Exploratory
factor analysis (EFA) is generally used to discover the
factor structure of a measure and to examine its internal
reliability. EFA is often recommended when researchers have
no hypotheses about the nature of the underlying factor
structure of their measure. EFA were used to reduce data to
a smaller set of summary variable and to explore the
underlying theoretical structure of the phenomena.

22
 Chapter 4

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

This section discusses the presentation, analysis, and

interpretation of the data gathered concerning this study.

Specific Question 1:

The first question states: What is the profile of

grocery store customers in terms of:

a. age

b. gender

c. income

d. educational

e. occupation

f. civil status

23
Table 1. Age (in years) distribution of the respondents
Age Range No. of Respondents Percentages

15-20 38 25%
21-25 33 22%
26-30 25 17%
31-35 17 11%
36-45 18 12%
46-60 15 10%
61-70 4 3%
n=150

The demographic profile shows that highest number of

respondents belongs to age ranging from 15-20 with twenty-
five percent (25%), ages 21-25 with twenty-two (22%), and
ages 26-30 with seventeen percent (17%).

Table 2. Gender distribution of the respondents.

No. of Respondents Percentage

Male 60 40%

Female 90 60%

n=150

It is quite clear that out of the total respondents

for this study, majority of them, sixty percent (60%), were
female the rest forty percent (40%) were males.

24
Table 3. Civil Status distribution of the respondents
No. of respondents Percentage
Single 88 54%
Married 51 31%
Separated 8 10%
Widowed 17 5%
n=150

Looking at the data in terms of the civil status of

the respondents, 54% said they were single;31% reported
they were married; 10% said, they are widows, and 5% said
they were separated.

Table 4. Educational attainment of the respondents

No. of respondents Percentage
High school 22 14%

High school Graduate 22 14%

College student 55 36%

College Graduate 36 24%

Masteral Graduate 11 7%

Doctorate Graduate 3 2%

Elementary 4 3%

n=150

Looking at the respondents, in terms of educational

attainment, the data show that during the period when the
study was conducted, 36% the respondents are college; 24%
were college graduate, 7% are masteral graduates, 2% have
doctorate degrees.

25
Table 5. Monthly income distribution of the respondents.
No. of Respondents Percentage
above 50,000 4 3%
30,001-50,000 12 8%
15,001-30,000 23 15%
8,001-15,000 16 10%
3,001-8,000 22 15%
3,000 and below 10 7%
No income 63 42%

n=150

Looking at the monthly income of the respondents, 42%

of them has the highest percentage has no income, followed
by 15% of the respondents who has an income of 15,001-
30,000, then3%, the lowest percentage, has an income above
50,000.

Table 6. Occupation distribution of the respondents

No. of respondents Percentage
Business person 25 17%
Manager/supervisor 3 2%
Professional 6 4%
Teacher 8 5%
Clerical 0
Technical 0
Gov't employee 13 9%
Student 68 45.3%
Others 27 18%
n=150

26
 Looking at the respondents’ demographic profile,
nearly about half of the total respondents (45.3%) were
students, whereas 18% of the respondents belong to others,
which are specifically housewife, maid, and etc.

The second question states: What are the factors

influencing consumers’ grocery stores preference?

To answer this question, tables 7 and 8 were created.

Table 7. KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .898
Bartlett’s Test of Sphericity .000

Sig. at the .05 level.

Based on Table 7, the KMO test resulted to sampling

adequacy at .898. Since the KMO test requires sampling
adequacy to be at least .5, this means that the data
gathered is fit for the exploratory factor analysis.
Further, the sphericity test result of .000 implies that
all factors were significant in grocery store preference.

Table 8, presents the new component groupings. When

the questionnaires were formulated, the researchers
identified 6 components, namely; store atmospherics,
accessibility, price, service, product mix, and promotion.

After Exploratory Factor Analysis was conducted, these

components are now grouped into 4, a reduction of 2
components from the original.

27
Table 8. Rotated Component Matrix
Components

1 2 3 4
SA 1.1 The store is sufficiently air-conditioned. .755
SA 1.3 The store has no bad smell .673
SA 1.5 The store music is conducive to buying. .716
SA 1.2 The grocery store is not crowded. .762
SA 1.4 The store wet market has no bad smell .645
SA 1.6 The store is adequately lighted. .721
SA 1.7 The stairs are conveniently located. .662
SA 1.8 The store color is pleasing to the eyes. .774
SA 1.9 The comfort rooms are conveniently located. .553
SA 1.10 The comfort rooms are clean. .769
SA 1.11 There is adequate benches for shoppers. .674
A 2.1 There is parking space for private vehicles. .473
A 2.2 The parking space is not far from the store. .780
A 2.3 The grocery store is accessible to shoppers .721
A 2.4 Availability of public transportation. .751
PRC 3.1 High priced products are reasonably priced. .757
PRC 3.2 Medium priced products are reasonably .749
priced.
PRC 3.3 Low priced products are reasonably priced. .758
S 4.1 The store clerks are courteous. .442
S 4.2 The security guards are courteous. .726
S 4.3 The customer service is manned all the time. .641
PM 5.1 Grocery store has significant product .710
variety
PM 5.2 Grocery store has significant product .773
assortment
PRM 6.1 Store’s use of advertising is reaching its .485
target customers.
PRM 6.2 The store’s periodic sale at reduced prices .485
is very affective.
PRM 6.3 The grocery store visual messaging (getting .570
the shoppers’ attention) is very effective.

The four (4) factors derived from factor analysis

using principal component analysis showed that all the
twenty-six variables have significantly high factor
loadings (see Table 8). These factors belong to the new
components as renamed by the researchers below:

28
 For Component 1 (labeled as Store Atmosphere), SA 1.1
(.755), SA 1.3 (.673), SA 1.5 (.716), SA 1.2 (.762), SA 1.4
(.645), SA 1.6 (.721), SA 1.7 (662)’ SA 1.8 (.774). and S
4.1 (.442), respectively.

For Component 2 (labeled as Customer Relations and

Other Services), SA 1.9 (.553), SA 1.10 (.769), SA1.11
(.674), S 4.2 (.726), S 4.3 (.641), PRM 6.1 (.485), and PRM
6.2 (.485).

For Component 3 (labeled as Price and Product Mix),

PRC 3.1 (.757), PRC 3.2 (.749), PRC 3.3 (.758), PM 5.1
(.710), PM 5.2 (.773), and PRM 6.3 (.570.

For Component 4 (labelled as Accessibility), A 2.1

(.473), A 2.2 (.780), A 2.3 (.721), and A 2.4 (.751).

Based on the findings of the study, there is

sufficient statistical evidence to reject the null
hypothesis stating, “Store Atmosphere, Accessibility,
Price, Service, Product Mix, Promotion do not influence
consumer preferences of grocery stores in Valencia City”.

29
 CHAPTER 5
FINDINGS, CONCLUSION AND RECOMMENDATION

This chapter shortly presents the findings,

conclusion, and recommendation of this study.

FINDINGS
The data that researchers have gathered are suitable
for exploratory factor analysis. The survey revealed that
the majority of the consumers belongs to ages 15-20, and is
mostly female. Most of the consumers were student
specifically in college level. After EFA was conducted,
the 6 factors (Store atmospherics, Accessibility, Price,
Service, product-mix, and Promotion) that the researchers
have suggested were reduced to 4 factors (Store atmosphere,
Customer relations and other services, Price and Product-
mix and Accessibility). This new 4 factors are significant
to consumer preference in choosing grocery stores in
Valencia City.

CONCLUSION
Based on the data and the results obtained, it is
concluded that store atmosphere, Customer Relation and
Other Services, Price and Product Mix, and Accessibility
are the only factors that are significant to the customer
in choosing which grocery store to buy, specifically here

30
in Valencia City. The researchers determined that consumers
prefer buying in grocery stores that has a good ambiance,
is adequately lighted, offers friendly prices, offers a
different variety of products, has well-mannered staff, and
one that is accessibly located to costumers.

RECOMMENDATION
In this study, Store atmosphere, customer relations
and other services, Price and product-mix and Accessibility
are found as the key parameters of evaluation for consumer
preference in choosing grocery stores. On the basis of
these findings, the following recommendations are made:
Grocery stores should improve its ambience. Consumers
feel that shopping in a clean and attractive store makes
the shopping experience more pleasant. Hence, the modern
grocery stores must strive to make its store well
organized.
Moreover, store clerks must be courteous and friendly
to their customers. When customers feel treated well by
store employees, they feel happy and would love to return
to the same store.
Also, store owners should importantly consider that
their store is accessibly located to local transportation
facilities. When this criterion is met, customers prefer to
be in that store as shopping become convenient to them.
Price is also important. People will also come to the
store if they knew that the prices of the products will
give justice to its quality. Availability and completeness
of different varieties of products in a store is a good

31
thing. When most of the goods, if not all, can be had in
one store, the costumers can save time shopping.

32
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36
 Mountain View College
School of Business and Accountancy
College Heights, Mt. Nebo, 8709 Valencia City, Philippines

January 21, 2019

Dear Ma’am/Sir:

Warmest Greeting!

We are presently working on our thesis entitled

“Factors influencing Consumers Grocery store Preferences in
Valencia City, Bukidnon”, as a requirement for the course
Business Research 2.
In regards to that, we would like to ask your
permission to allow us to conduct a survey in your store.
The survey would last only about 5-10 minutes.
Participation in the survey is entirely voluntary and there
is no known risk in participation of the study. All
information provided will be kept within utmost
confidentiality and be used for academic purposes only.
Thank you so much and God Bless!

Sincerely yours,

Tormo, Nicoh
Tubal, Jezreel
Zafra, Charmen
Ramonal, Pinky
Lobitaña, Aileen

Noted by:

Allen C. Monta, CPA,MM,DBA

Dean, School of Business and Accountancy

Ronnel Aldin Fernando,MMHRM,DBA(C)

Research Adviser

37
Dear Ma’am/Sir:

Good Day!

We are currently doing a research entitled “Factors

Influencing Customers’ Grocery Store Preference in Valencia
City, Bukidnon”, as a requirement for the course Business
Research.

In addition to that, we are asking for your

cooperation and participation in answering the questions
below. Rest assured that all of your answers will be kept
and secured. Your presence is a great help to us.

Hoping for your consideration. Thank you and Godbless.

Sincerely Yours,

Researchers

Jezreel Tubal
Nicoh Tormo
Charmen Zafra
Pinky Amor Ramonal
Aileen Lobitaña

38
 Survey Questionnaire

PART 1. Demographic Profile of Respondents (please check

the appropriate box)

1. Age range:

[] 15-20 [] 21-25 [] 26-30 [] 31-35 [] 36-35 []

46-60 []61-70

2. Gender: [] Male [] Female

3. Civil Status: [] single [] married [] widowed

[] separated

4. Educational Attainment:

[] high school student [] high school graduate [] college

student [] college graduate

[] graduate student (e.g., master’s) [] masteral

graduate degree [] post graduate student (e.g.,
doctoral) [] doctoral graduate

[] other (specify) ________________________

5. Monthly income range:

[] above 50,000 [] 30,001-50,000 [] 15,001-

30,000 [] 8,001-15,000

[] 3,001-8,000 [] 3,000 and below [] no income

6. Occupation/profession:

[] businessperson [] manager/supervisor []
professional [] teacher [] clerical

[] technical [] gov’t employee [] student [] other

(please specify): ________________

39
PART 2. Survey Questions

1. What attracts you to your preferred grocery store?

Please rate in a scale of 1-5, where:

5- Strongly Agree (SA)

4- Agree (A)

3- Undecided (UD)

2- Disagree (DA)

1- Strongly Disagree (SD)

Store Attraction Factors (those you consider important in SA AG UD DA SD
preferring or choosing a particular store)
5 4 3 2 1
Store Atmospherics

1.1 The store is sufficiently air-conditioned.

1.2 The grocery store is not crowded.
1.3 The store has no bad smell (odor).
1.4 The store wet market has no bad smell.
1.5 The store music is conducive to buying.
1.6 The store is adequately lighted.
1.7 The stairs and escalators are
conveniently located.
1.8 The store color is pleasing to the eyes.
1.9 The comfort rooms are conveniently
located.
1.10 The comfort rooms are clean and well
maintained.
1.11 There are adequate benches for
shoppers to rest and relax.
Accessibility
2.1 There is ample parking space for private
Vehicles.
2.2 The parking space is not far from the
store building.
2.3 The grocery store is conveniently located and accessible
to shoppers.
2.4 There is available public transportation going to the
store and leaving the store.
Price
3.1 The high-priced products found in the grocery store are
reasonably priced.
3.2. The medium-priced products found in the grocery store
are reasonable priced.
3.3 The low-priced products found in the grocery store are
reasonable priced
Service
4.1 The store clerks provide prompt and courteous service.
4.2 The security guards at the entrance are courteous when
checking the incoming shoppers.
4.3 The customer assistance counter is manned all the time
to address customer inquiry and complaint.

40
Product- Mix
5.1 The grocery store has significant product variety
(number of products).
5.2 The grocery store has significant product assortment
(depth of each product).
Promotion
6.1 The store’s use of advertising (TV, Print, or radio) is
reaching its target customers.
6.2 The store’s periodic (seasonal) sale at reduced prices
is very affective.
6.3 The grocery store visual messaging (getting the
shoppers’ attention) is very effective

2. In terms of store atmospherics, rank the following grocery

stores, where 1 is the highest and 5 as the lowest.

Gaisano
NVM
Robinsons
Supermarket
Roy Plaza
MetroGold

3. In terms of accessibility, rank the following grocery stores,

where 1 is the highest and 5 as the lowest.

Gaisano
NVM
Robinsons
Supermarket
Roy Plaza
MetroGold

4. In terms of price, rank the following grocery stores, where 1

is the highest and 5 as the lowest.

Gaisano
NVM
Robinson
Supermarket
Roy Plaza
MetroGold

41
5. In terms of service, rank the following grocery stores, where
1 is the highest and 5 as the lowest.

Gaisano
NVM
Robinson
Supermarket
Roy Plaza
MetroGold

6. In terms of product-mix, rank the following grocery stores,

where 1 is the highest and 5 as the lowest.

Gaisano
NVM
Robinsons
Supermarket
Roy Plaza
MetroGold

7. In terms of promotion, rank the following grocery stores,

where 1 is the highest and 5 as the lowest.

Gaisano
NVM
Robinsons
Supermarket
Roy Plaza
MetroGold

Thank You and Godbless 

42
CURRICULUM VITAE

Personal Information

Name : Jezreel Tubal

Date of Birth : April 2, 1999
Place of Birth : San Miguel, Surigao Del Sur
Religion : Seventh-day Adventist
Civil Status : Single
Home Address : Magroyong, San Miguel del Sur

Educational Attainment
Tertiary : Mountain View College
Bachelor of Science in Business
Administration Major in Financial
Management
2017- Present

Secondary : San Miguel National Comprehensive

Highschool, Magroyong, San Miguel,
Surigao del Sur
2011-2015

Primary : Magroyong Elementary Highschool

Magroyong, San Miguel,
Surigao del Sur
2011-2015

Work experience:
SBA office, Mountain View College
2021

43
CURRICULUM VITAE

Personal Information

Name : Aileen Lobitaña

Date of Birth : May 7, 1997
Place of Birth : Lilingayon, Valencia City
Religion : Seventh-day Adventist
Civil Status : Single
Home Address : Lilingayon, Valencia City

Educational Attainment
Tertiary : Mountain View College
Bachelor of Science in Business
Administration Major in Financial
Management
2015-present

Secondary : Central Bukidnon Institute

Bagontaas Valencia City
2011-2015

Primary : Lower Lilingayon Adventist Elem. School

Lower Lilingayon Valencia City, Bukidnon
2005-2011

Work Experience
: Adventist Medical Center
Valencia City, Bukidnon
2020

44
CURRICULUM VITAE

Personal Information

Name : Charmen Zafra

Date of Birth : February 4, 1991
Place of Birth : Nuing Jose Abad
Santos Davao Occidental
Religion : Seventh-day Adventist
Civil Status : Married
Home Address : Lower Lilingayon, Valencia City, Bukidnon

Educational Attainment
Tertiary : Mountain View College
Bachelor of Science in Business
Administration Major in Financial
Management
2017- Present

Secondary : Edna Guillermo Memorial National High

School
2005-2009

Primary : Egnacia Guillermo Elementary School

1999-2005

Work Experience
: Monte Vista Agro Industries Corporation
Mountain View College, College Heights,
Mt. Nebo, Valencia City, Bukidnon
2021

45
CURRICULUM VITAE

Personal Information

Name : Pinky Amor Ramonal

Date of Birth : January 10, 1993
Place of Birth : Lower Lilingayon, Valencia City, Bukidnon
Religion : Seventh-day Adventist
Civil Status : Single
Home Address : Lower Lilingayon, Valencia City, Bukidnon

Educational Attainment
Tertiary : Mountain View College
Bachelor of Science in Business
Administration Major in Financial
Management
2017-present

Secondary : Riverside Adventist Academy

Lower Lilingayon, Valencia City, Bukidnon
2005-2009

Primary : Lower Lilingayon Adventist Elem. Sch.

Lower Lilingayon, Valencia City, Bukidnon
1999-2005

Work Experience
: Monte Vista Agro Industries Corporation
Mountain View College, College Heights,
Mt. Nebo, Valencia City, Bukidnon
2021

46
CURRICULUM VITAE

Personal Information

Name : Nicoh Tormo

Date of Birth : September 19, 1997
Place of Birth : Kabacan, North Cotabato
Religion : Roman Catholic
Civil Status : Single
Home Address : Dagupan, Kabacan, North Cotabatp

Educational Attainment
Tertiary : Mountain View College
Bachelor of Science in Business
Administration Major in Financial
Management
2017-present

Secondary : Notre Dame of Kabacan High School

Kabacan, North Cotabato
2009-2013

Primary : Datu Mantawil Elementary School

Dagupan, Kabacan, North Cotabato
2003-2009

Work Experience
: Monte Vista Agro Industries Corporation
Mountain View College, College Heights,
Mt. Nebo, Valencia City, Bukidnon
2021

47