ABM G12 Nicholson The Relationship Between The Place Strategy and The Customers Satisfaction 1

The Relationship between the Place Strategy
and Customer Satisfaction of Chingkee Tea
A RESEARCH PAPER
Presented to
The Faculty of Senior High School
Xavier University – Ateneo de Cagayan
Cagayan de Oro City
In Partial Fulfilment
of the Requirements in Research 203
By
Alkuino, Lila Loureen

Alpiz, Vanessa Mae
Isiderio, Christxanlor
Javier, Hannah Pamela
Mejia, Charlotte Faye
Mende, Micah
Moreno, Nina Felice Christine
Tolentino, Maria Vince Victoria
Grade 12 Nicholson
SY 2018 – 2019
CERTIFICATE OF ORIGINALITY
This is to certify that we assume full responsibility over the work entitled
“TITLE OF RESEARCH” submitted as a requirement for graduation for Senior
High School at Xavier University Senior High School – Ateneo de Cagayan, that
the work is our own, that this is original except as specified in the
acknowledgements, footnotes, or in the references and that this has never been
submitted to this or any other school for a degree or other requirements.
ALKUINO, LILA LOUREEN
ALPIZ, VANESSA MAE
ISIDERIO, CHRISTXANLOR
JAVIER, HANNAH PAMELA
MEJIA, CHARLOTTE FAYE
MENDE, MICAH
MORENO, NINA FELICE
TOLENTINO, MARIA VINCE
FEBRUARY 22, 2019

APPROVAL SHEET
This Research Paper entitled: “TITLE OF RESEARCH” prepared and
submitted by MEMBER’S NAME, MEMBER’S NAME, MEMBER’S NAME,
MEMBER’S NAME, in partial fulfillment of the requirements for graduation for
Senior High School has been examined and is recommended for Oral
Examination.
Research Adviser
______________________________________________________________
PANEL OF EXAMINERS
Approved by the Committee on Oral Examination with a passing mark.
Chair
Member Member
Approved and accepted in partial fulfilment of the requirements for
graduation for Senior High School.
Dr. Rogelio L. Gawahan, PhD

Principal
Xavier University Senior High School
FEBRUARY 22, 2019

ACKNOWLEDGEMENT
The researchers wish to express their deepest gratitude to the
following people that has walked with us all throughout this journey. We
dedicate these pages of hardwork to them.
To Ms. Rose Ann Gicole, research adviser, who never fell short of
support and dedicated her time for the success of this study. Despite our
struggles, she never gave up on us and continued to guide us our way.
To the researchers’ family and friends, who served as
inspiration for the researchers’ determination to finish what they started. Their
love and support was the driving force for the success of this study.
And above all, to the LORD ALMIGHTY, for he is everything,
everything is nothing without him. His love is infinite and the researcher’s
dedicate the success of this study to Him.

ABSTRACT
Chingkee Tea, opened in 2012, is Cagayan de Oro’s most in-demand and
the number one milktea place in the city. Offering a variety of milktea products
with numerous flavour options, it has been well-received by customers all
around the city. Chingkee Tea now has opened three branches in Cagayan de
Oro ever since it’s opening last 2012: The Main Branch, the Grand Central
Branch, and its recently opened branch located at the former Gazebo store. All
the three branches are closely located with one another, all located within
Divisoria, Cagyan De Oro city. This study aims to determine the relationship
between Chingkee Tea’s Place Strategy and the level of Customer Satisfaction
of their consumers. This study aims to access if there is a positive relationship
between the said variables considering that Chingkee Tea is only a local
establishment where its Place Strategy, which is Close-Parameter Branching
has been commonly adapted mostly by International Brands or big-time
establishments like McDonald’s, Banco De Oro, and Jollibee. Data were
gathered from 316 respondents that were all consumers of Chingkee Tea using
a self-made and structured survey-questionaire. The researchers applied the
Pearson’s R, Mean and Standard Deviation, and hypothesis testing by
computing its P-value to determine if a significant correlation existed. The
results of the study revealed significant data to support the proposed
hypothesis.
Keywords: Branching Parameters, Place Strategy, Location, Channels, Service
Quality, Product Quality, Customer Satisfaction, Physical Environment, Hygienic
Cleanliness
TABLE OF CONTENTS
Page Number
TITLE PAGE i
CERTIFICATE OF ORIGINALITY ii
APPROVAL SHEET iii
ACKNOWLEDGEMENT iv
ABSTRACT v
TABLE OF CONTENTS vii
LIST OF TABLES ix
LIST OF FIGURES xi
CHAPTER 1 THE PROBLEM 1
Introduction 1
Statement of the Problem 5
Research Questions 6
Research Hypothesis 6
Significance of the Study 7
Scope and Delimitation 8
CHAPTER 2 REVIEW OF RELATED LITERATURE 10
CHAPTER 3 RESEARCH METHODOLOGY 20
Research Design 20
Context and Participants 20
Data Gathering Instruments 21
Data Gathering Procedure 22
Data Analysis 23
CHAPTER 4 RESULTS AND DISCUSSION 26
Introduction 26
Results 27
Age-wise Distribution 27
Gender-wise Distribution 28
Occupation-wise Distribution 29
Determining if respondents have been to all… 30
Determining how often respondents visit… 31
Determining the top 4 possible reasons… 32
The Relationship between the Place Strategy .. 34
The Relationship between the locations of… 35
The Relationship between the channels.. 36
The Level of Customer Satisfaction of 3 Branches 37
Hypothesis Testing 39
Discussion 39
Demographic Profile of the Customers 40
The Relationship between the Place Strategy… 40
The Relationship between the three locations.. 41
The Relationship between the three channels... 41
The level of Satisfaction in the three branches.. 42
Hypothesis Testing 43
CHAPTER 5 SUMMARY, FINDINGS, CONCLUSION AND 45
Summary of Findings and Discussion 45

Conclusions and Implications 48
Implications 51
Limitations of the Study 52
Recommendations 53
APPENDICES 55
CURRICULUM VITAE 70
LIST OF TABLES
Table
Page
Table 1: Percentage Distribution of Respondents for Age 21
Table 2: Percentage Distribution of Respondents for Sex 21
Table 3: Percentage Distribution of Respondents for…. 22
Table 4: Percentage Distribution of Respondents for ….. 23
Table 5: Percentage Distribution of Respondents for….. 23
Table 6: Percentage Distribution of Respondents for Number….. 24
Table 7: Mean average of the level of conformity towards … 25
Table 8: Mean score of the level of conformity towards…. 26
Table 9: Pearson’s r result on the relationship of …. 31
Table 10: Pearson’s r result on the relationship of …. 32
LIST OF FIGURE
Page
Figure
Figure 1: Schema of the Conceptual Framework 3

Chapter 1
1.1 Background of the Study
According to Heil (n.d), being in the right location is a key ingredient in a

business's success. If a company selects the right location, it may have
adequate access to customers, workers, transportation, materials, and so on.
Consequently, location often plays a significant role in a company's profit and
overall success. The branching strategy plays a significant role towards the
operations of the establishment. The place or location chosen by the
establishment to pursue their business operations may either show a positive
result through profitability and the acceleration of potential sales or may either
lead to the downfall if not done strategically.
According to James Carnite (2018), the Place Strategy of a business entity

exhibits an important role in a product’s or service’s marketing mix, as it focuses
on how and where businesses should strategically place branches to gain more
customers and achieve a bigger market share. As stated in eCommerce (2018),
place strategies, when effectively implemented ensures profitability and
accelerate the possibility of potential sales. Since customers are seen to play a
significant role in the success of business operations, establishments envision
to situate their branches where potential customers are expected to emerge
from. Moreover, the customer convenience is put into consideration upon
formulating an effective place strategy (Kalb, 2017).
Close-Parameter Branching as a place strategy has been widely used by

fast-food chains such as McDonald’s and Jollibee, as well as by banks such as
Banco de Oro (BDO). According to Mayer (2018), McDonald’s uses a
combination of Franchise outlet system as well as company-owned outlets.
There is a total of 37,000+ outlets McDonald’s has in over in 100+
countries. Customers can visit these outlets to enjoy the hamburgers or can
order products and get it delivered at their doorstep. This approach, in relation
to companies, specifically McDonald’s strategy on focusing on convenience as
a driving force in their place strategies where branch outlets are positioned
where it is most accessible for customers and amount of branches helps the
company further saturate a specific area gaining more consumers and market
share. McDonald’s emphasizes on encompassing the management of a range
of processes involved in bringing products to the end consumer. McDonald’s
outlets are very evenly spread throughout the cities making them very
accessible. Drive in and drive through options make McDonald’s products
further convenient to the consumers (Bhasin, 2018).
According to Kotler, P., Armstrong, G., Cunningham, P.H. (2005),

Customers want products and services to be as convenient to purchase as
possible, thus, the branching strategy must be thoroughly established in a way
that the customers ‘convenience is put into consideration. One concrete
example of an internationally known establishment is McDonald’s. As they
situate branches where they are accessible to the potential customers of
McDonald’s in aiming to ensure that the customer’s convenience is given
(Mayer,2018).
As stated in their official website, Banco de Oro or BDO also emphasizes

the vitality of customer convenience in branching as Jaime C. Yu, senior
executive vice president of BDO said reaching the 1,000-branch milestone is a
testament to the Bank’s commitment to make banking reachable to Filipinos
whether they are located in the metropolitan area or far flung provinces. “We
fully recognize that there are still about 70 percent of the population with no
bank accounts or has yet to enter the formal banking sector. The continued
growth of our branches is our way of creating opportunities for more people to
experience the rewards of having a bank that takes care of their financial
needs,” he stated. BDO ended 2016 with a branch network of 982 (including
one in Hong Kong). Of this total, 492 branches were in Metro Manila, 305 in
Luzon, 108 in Visayas, and 76 in Mindanao. This year, the Bank eyes to add
60 more branches, further increasing its network to 1,042 by the end of
2017.BDO’s domestic distribution network remains to be one of the strongest
in the banking industry. It is known for its longer banking hours and weekend
banking. This wide market reach is complemented by over 3,600 ATMs and
electronic channels.
As all of these companies run locally and internationally, Chingkee Tea has
incorporated this strategy in branching and has garnered success as a local
establishment in Cagayan de Oro. Chingkee Tea, an establishment owned and
managed by Ms. Sharee Mae “Chingkee “ Uy Te, is considered to be Cagayan
De Oro’s favorite milk tea place (CLIX, 2017).
Chingkee Tea is a local establishment in Cagayan de Oro city, Misamis

Oriental and is widely known for their authentic milk tea. Owned and managed
by Ms. Sharee Mae “Chinkee“ Uy Te. She started with the construction of a
branch in Malfori Compound right after graduating from college. All branches of
the establishment embody Ms. Te’s love for art and tea. The demand for
Chingkee Tea’s product continuously increased which led the management to
further develop by providing more branches. At present, three branches have
already been established in Cagayan de Oro city, all of which are located just
one block from one another. The main branch located at Pabayo-Hayes street,
the second branch just 71 meters away at Grand Central, and the recently
established branch in Don Apolinar Velez street located just 130 meters away.
The researchers conducted an interview with the Mr. Josh Mutoomull,

husband of the owner and founder of Chingkee Tea, Ms. Chingkee Te and co-
owner of the establishment. According to Sir Josh, there were factors they
considered before establishing its branches. These factors were the following:
the kind of market in the area, high foot traffic, spending capacity and the
affordability of rent. They were not particular about the space. Before the
Chingkee tea branch near Xavier University was closed for business, the three
branches in Divisoria were at a walking distance from each other. Chingkee tea
did not intend to have its branches at a walking distance. According to Sir Josh,
the third branch (Gazebo) was mostly because of their forecasting and business
continuity plan. The Pimentel branch (beside Viajero) had only one year
contract. Although it got renewed three times, the Pimentel owners to demolish
it prior to renting it to Chingkee tea. The owners were just maximising the
earning capacity of the place while they were waiting for year 2019 to demolish
it. In relation to the closed down branch, Chingkee tea established a branch
near SM uptown and the business was a short-term contract. Chingkee tea
already knew that property was intended to be used by Jollibee. However, the
business took advantage of the lower rent and it was an opportunity for them to
test the uptown prior for their feasibility study.
As Chingkee Tea has recently opened its third Cagayan de Oro-based
branch located at Don Apolinar Velez street, just 92 meters and 160 meters
away from its previously established branches, located at Grand Central and
its main branch at Pabayo-Hayes street respectively, its place strategy is
observably in line with the international establishments stated above. Chingkee
tea has dominated the market as all three branches are a walking distance from
each other gaining more and more customers everyday despite being a local
establishment. The management of Chingkee Tea did not intend to establish
such place strategy, as the researchers have conducted an interview with the
owner.
Research Gap
Globally, there is an increase of 4.5 percent to 5.5 million ton of tea

consumption. It expanded throughout the developing economies and it is
based on the rapid growth in per capita income levels. Most of the tea producing
countries in Asia, Africa and Latin America tea consumption notably grow in
demand. For instance, the annual rate of expanded tea consumption in China
is 10.1 percent and it reached 2.1 million tonnes in 2016. Another country
ranked as the second largest tea consumption is India with consumption at 1.05
million tonnes in 2016 (FAO, 2018). The major outlets for tea are tea houses
(Lee, 2015). One kind of tea house is the tea art house. The tea art houses are
located close to streets. Some are in apartment buildings.
Observably, Chingkee tea has similitudes of a tea house on the grounds

that their situating procedure is similar to the global industry of milk teas.
Chingkee tea stores can be found close to the avenues, likewise Chingkee tea
is one of the outstanding tea store at Cagayan de Oro. Furthermore, Chingkee
tea has three (3) branches with the same method of situating and the three
branches is only a mobile separation. According to Gerdemen (2002), if an
establishment wishes to expand geographic expansion should be made
available and accessible to a non-identical set of market and to outstretch the
inclusion of additional resources. Geographic expansions must be thoroughly
assessed, as geo-mistakes can result to a degraded operations of an
organization and may cause it to lose focus on what is its goals in the first place.
However, the Chingkee Tea establishment has taken a new strategic view,
as apparently, the three (3) branches are situated relatively close to each other
and thus cater to similar target market. The three branches can be found around
the vicinity of Divisoria. This study ought to know whether the place strategy of
Chingkee tea significantly affects the satisfaction of their customers.
1.2 Statement of the Problem
In Cagayan de Oro city, Milk tea establishments have increased in

population as product demand has been continuously increasing. As a result
consumers are provided with a wide array of Milk Tea establishments to choose
from. Tea shops where Milk Teas are sold are usually situated in the downtown
area and can be seen everywhere. They have also added that the prices of milk
tea are acceptable. Consequently, milk tea places are seen as the best place
for people to get together, thus gaining its popularity (Min-rong, Ya-ting, and
Meng-han, n.d)
Despite the tight market competition, Chingkee Tea manages to remain as

a popular destination for Kagay-anons, gaining the number 1 spot in “The Top
Five Milk Tea Cafes in Cagayan De Oro city” in Clix, Cagayan de Oro’s premier
go-to site. Most importantly, Chingkee Tea expanded its branches in different
places. The place strategy of Chingkee Tea has managed to set this
establishment apart as the expansion of the branches are relatively close to
each other. Chingkee tea practices the close-parameter branching as the three
branches are located in the vicinity of Divisoria. Thus, this study strives to
investigate the relationship between the place strategy of Chingkee Tea
towards customer satisfaction.
1.3 Research Questions
The following are the questions the researchers aims to address:

1. What is the profile of the customer of Chingkee Tea according to: age,
gender, and occupation?
2. What are the possible reasons why other customers have not visited all
the three (3) branches?
3. Is there a relationship between the place strategy of Chingkee Tea and
the customer satisfaction?
4. Is there a relationship between the locations of the 3 branches of
Chingkee Tea in Divisoria to the satisfaction of their customers?
5. Is there a relationship between the channels of the 3 branches of
6. What is the level of satisfaction in the three branches?
a. Research Hypothesis
Non- Directional
Ho= There is no positive relationship between the place strategy and

customer satisfaction of Chingkee Tea.
Ha= There is a positive relationship between the place strategy and

Directional
Ho= There is no positive relationship between the place strategy and

Ha= There is a positive relationship between the place strategy and

1.5. Significance of the Study
This study deems useful to the following entities:
Chingkee Tea Management
After thorough analysis of the relationship of Chingkee Tea’s close

parameter branching to the satisfaction of their customers, the Chingkee Tea
Management will be able to assess the effectiveness of their current branching
strategy with sufficient data to support it. Furthermore, this will provide them
with adequate and concrete data to further enhance their business operations
in the long run.
Customers
Through this research, the customers will be able to acquire information

regarding the marketing strategies of the establishment they patronize.
Furthermore, through this research paper, customers will acquire ample
insights regarding their preferences and how this is related to the place strategy
of Chingkee Tea. Through the data established by the researchers, Chingkee
Tea may incorporate these to further develop their business operations and
subsequently improve the satisfaction of customers.
Aspiring Business Owners
With the results of the study, aspiring business owners will be provided
with ample insights as to the importance of effective branching strategy to their
customers’ preference. They may integrate the findings of this study into their
business operations to further develop a more engaging relationship between
their customers and the establishment.
Researchers
Researchers who have ongoing or future studies with connection to the

relationship of branching strategy to the customer preference may use the
findings of this research as basis. Researchers may approve or disprove of the
results of this study, all of which leads to further developing the branching
strategy that may be used by the different business entities.
1.6. Scope and Delimitation of the Study
The general intent of this study is to determine whether or not there is a

relationship between the place strategy of Chingkee Tea towards the
satisfaction of their customers. The study has been conducted in Cagayan de
Oro, specifically in the vicinity of Divisoria where the branches of Chingkee Tea
are located. This study has been conducted by researchers who are from
Xavier University Senior High School of School Year 2018 to 2019.
This study focuses on the two main variables which is the place strategy
and the customer satisfaction. The place strategy will be measured through
location and channel as one of the sub-variables of place strategy (McCarthy,
Jerome, and Williams (1996). Customer Satisfaction will be measured through
the following sub-variables: food quality, service quality, physical environment,
and hygienic cleanliness (Ryu et.al, 2012).
The data-gathering of this study will be conducted within the different

branches of Chingkee Tea. The researchers will personally be distributing the
questionnaires to the customers of Chingkee Tea. The researchers will follow
the purposive sampling, as to ensure that the respondents are all customers of
Chingkee Tea. The respondents will be coming from different demography, i.e
employees, students as long as they are customers of Chingkee Tea. The
researchers have utilized the Heursitics Method in obtaining the number of
respondents and has come up with a total of 316 respondents.
The survey-questionnaires will be handed out to the actual customers of
Chingkee Tea from the different branches. The researchers will conduct the
survey in the afternoon in the different branches of Chingkee Tea. The survey
will last for two (2) weeks, on school days. The researchers must reach the
quota of 32 questionnaires per day on the first six (6) days and 31
questionnaires on the succeeding days, to accomplish the necessary
questionnaires needed in this study.
Chapter 2
Review of Related Literature
This chapter provides an overview of previously constructed researches

on the main variables of this study namely, the place strategy and the customer
satisfaction. Furthermore, this chapter provides a framework of the
aforementioned variables to capsulate the highlight of this study.
The main purpose of this literature review is to thoroughly comprehend the main
variables of this study with adequate reliable sources. Figure 1 shows the
schematic diagram that outlines the highlight of this study with the
corresponding sub-variables and the reliable researches that supports it.
According to James Carnite (2018), the Place Strategy of a business entity

exhibits an important role in a product’s or service’s marketing mix, as it focuses
on how and where businesses should strategically place branches to gain more
customers and achieve a bigger market share. Furthermore, according to
Effective Marketing Mix- Place Strategy in eCommerce (June 2018 issue) place
strategies, when effectively implemented ensures profitability and accelerate
the possibility of potential sales. Since customers are seen to play a significant
role in the success of business operations, establishments envision to situate
their branches where potential customers are expected to emerge from. The
customer convenience is put into consideration upon formulating an effective
place strategy (Kalb, 2017).
Hotelling Spatial Theory
Harold Hotelling, has set out to understand the location of different firms
and as to how and why they located themselves (Shepsle, 1997). He observed
that competitor firms regularly locate their retail shops relatively close or just
across from one another (Shepsle, 1997). In his article “Stability in Competition”
he introduced the idea of locational equilibrium wherein two firms have to
choose their location, considering the customers’ distribution and transportation
costs. According to Hotelling (1921) in order to set the best location to maximize
profits, the firms have to consider three variables: competitors’ location,
customers’ distribution and transportation costs.
As a result of competitive forces, firms usually locate themselves close to

each other (Shepsle, 1997). Establishments are often times competing for the
best locations, where key customers are located. Every location entails a
market share, and with an effective strategy the firm may gain an increased
market share. Most likely, where one firm of similar nature emerges, other firms
will follow (Shepsle, 1997).
Central Place Theory
The central place theory (CPT), aims to explain the spatial arrangement,
size, and number of settlements (Christaller, 1993). The central place is
defined as a settlement that provides products and services to people around
it. The two basic concepts that encapsulates this study are the threshold and
range. The threshold is the minimum population that is required to bring about
the provision of certain goods or services. If in a situation the population is not
met, the activity may not be functional and may not be able to start. The range
refers to the maximum distance that the people are willing to travel to purchase
goods and services.
Cognitive Dissonance Theory
Festinger’s cognitive dissonance theory (CDT) has been frequently

applied to the management literature to give light, explain and predict what
motivated the nature of dissonance in the production of attitude and behavior,
and what causes them to change managerial decision making and the broader
organizational context.
Despite the fact that it was presented inside the field of social brain
science, it has likewise turned into an oft-referred to hypothesis in the board
inquire about. An early and exemplary trial of the hypothesis distributed by
Festinger and Carlsmith (1959) found that subsequent to playing out a terrible
conduct, people who got littler (contrasted with bigger) motivations changed
their frames of mind to support the conduct. This early research not just
drastically affected the field of social brain research yet in addition made ready
for the board research to investigate new pathways in understanding vital work
environment practices.
Expectancy Disconfirmation Theory
The Expectancy Disconfirmation Theory Is built upon the basis of the

CDT definition. The former is capable of measuring the customer’s satisfaction
from the difference between the customer’s expectation and the experience in
perceived products or services. According to EDT, satisfying the customers is
not limited only to heir expectation of products or services. Instead of these
factors, the satisfaction of the customers from perceived information is the first
step that can attract the customer’s trust over offered products and services by
business. Once the customers have realized that the perceived information of
products or service can satisfy their initial expectations, then occurred positive
disconfirmation leads to their satisfaction.
The result of the difference disconfirmation of expectation or desire can

either be positive or negative. In an instance where the perceived performance
about the quality of specific product or service is higher than customer’s
expectation or desire, the positive disconfirmation occurs. Similarly, when
customers perceives the performance worse than what they expected or
desired about the quality of specific product or service, then the negative
disconfirmation occurs (Elkhani and Bakri, n.d.)
Theoretical Framework
CUSTOMER
SATISFACTION
PLACE STRATEGY
Competitor’s
Frequency
Location
MARKET SHARE Perceived Experience

Customer
Distribution
Expectancy
Transportation
THRESHOLD
Cost
Negative Positive
RANGE
Exaggerated Praise
Disparity
Customer Satisfaction
At the point when a buyer/client is satisfied with either the item or

administrations it is named fulfillment. Fulfillment can likewise be an individual's
sentiments of joy or disillusionment that outcomes from contrasting an item's
apparent execution or result with their desires (Kotler and Keller, 2009).
Consumer loyalty is characterized by one creator as "the buyer's reaction to the
assessment of the apparent disparity between earlier desires and the real
execution of the item or administration as saw after its utilization" (Tse and
Wilton, 1988) henceforth considering fulfillment as a general post-buy
assessment by the shopper" (Fornell, 1992). As per Schiffman and Karun
(2004) Customer fulfillment is characterized as "the person's view of the
execution of the items or administrations in connection to his or her desires"
(Schiffman and Karun, 2004). According to Ryu et al. (2012), there are factors
to consider in assessing the customer satisfaction.
Food Quality
The extent of nourishment quality, as indicated by Ryu et al. (2012), has

been featured as a proportion of customer fulfillment inside eatery advertise as
an outcome of which Ryu et al. (2012) embraced five elements of sustenance
quality, to be specific: the smell of the nourishment is luring, there is an
assortment of menu things, the food is nutritious, the food is scrumptious, and
the nourishment is new. Qin and Prybutok (2009) distinguished the connections
between conduct expectations, consumer loyalty, saw esteem, sustenance
quality and administration quality in drive-thru food eateries and showed that
there is a direct and positive effect of nourishment quality on buyer fulfillment.
The most basic piece of the whole eatery condition is food (Sulek and Hensley
2004).
Service Quality
Service quality characterized as "it is a type of conduct that identifies

with fulfillment however not comparable to it which results as an offset of
prospect with execution" (Bolton and Drew, 1991; Cronin Jr. what's more,
Taylor, 1992; Parasuraman, Zeithaml and Berry, 1988; Shepherd, 1999).
Different scientists characterized quality as "it is a degree to which any
administration satisfies client's necessities or expectations (Dotchin and
Oakland, 1994; Lewis and Mitchell, 1990).
Physical Environment
As indicated by Bitner (1992), the physical condition in which

administrations are conveyed is otherwise called the "servicescapes". The term
servicescapes alludes to "… the majority of the target physical elements that
can be constrained by the firm to improve (or compel) worker and client
activities". Indeed, Bitner's definition has been acknowledged and cited in
alternate examines. The impacts of physical environment and worker conduct
on administration quality have been concentrated likewise by Wall and Berry
(2007) They expressed that servicescapes could have basic effect on clients'
desires for administration quality since customers need substantial sign to
make an image, so as to evaluate the quality.
Hygienic Cleanliness
A few researchers have directed investigations about eatery neatness

and they discovered connection between consumer loyalty, administration
quality assessment and eatery tidiness (Stevens, Knutson et al. 1990; Becker,
Murrmann et al. 1999; Barber and Scarcelli 2009; Barber and Scarcelli 2010).
Threevitaya (2003) found, in Thailand, that eatery cleanliness and tidiness were
the principal factors clients thought about when feasting out. Zeithaml et
al.(1990) and Aksoydan(2007) recommended that sustenance administration
foundations that neglected to satisfy the guidelines of nourishment cleanliness
and tidiness expected by clients would be evaluated as having poor or low
quality administration.
Place Strategy
Jones (2007) defines place as any way that the customer can obtain a
product or receive a service. It is related to the method of making a product
available to the customers (Armstrong & Kotler, 2011). Kotler and Armstrong
(2006), also define place or distribution as a set of interdependent organizations
involved in the process of making a product available for use or consumption
by consumers. McCarthy, Jerome and Williams (1996) added that a product is
sometimes not available on when and where it is wanted, thus in the concept
of place, it is a necessity to consider where, when, and to whom are the goods
and services are offered for sales. Furthermore, they stated that products and
services are not immediately available to the target market. These products and
services undergo a channel (McCarthy, Jerome and Williams, 1996).
Owomoyela et al, (2013) believe that place has a significant effect on business
performance. According to Apuke (2016), there are six (6) variables under the
place strategy namely: (1) Channels, (2) Coverage, (3) Assortments, (4)
Location, (5) Inventory, and (6) Transportation. However, this research will only
focus on the variables that will best fit this research.
Channels
Channel refers to different measures for making a product or service

available for the market. In this context, a channel serves as a bridge between
the producer and the consumer through which the products reach the target
market. The strategy of distribution channels refers to a wide group of principles
through which a firm wants to achieve its distribution objectives by focusing in
drafting distribution techniques and methods to achieve the general goals of the
enterprise (Mehtaa, Dubinskyb and Andersonc, 2001).
To measure the channel, the satisfaction of each branch must be

computed through the assessment variables of customer satisfaction (Ryu,
et.al, 2002).
Location
An increase in the potential sale becomes possible with a good location,

as it could attract more customers (Pastor, 1994). The location theory, which
considers an ideal location of a store in order to maximize the profit, was
introduced in the early 20th century. In addition, The Huff model was introduced
by David Huff in 1963 (Huff 1963). Huff suggested the traffic hours and the type
of traded goods as the contributing factors.
According to Christaller (1993), establishments must greatly consider

the range in putting up a business. This is the maximum distance that their
customers are willing to walk or travel to avail a certain product.
Conceptual Framework
The Relationship Between the Place

Strategy and Customer Satisfaction
of Chingkee Tea
Independent Variable Dependent Variable
Place Strategy Customer Satisfaction
Food Quality
Branch A
Channels Branch B
Service Quality
Branch C Hygienic Cleanliness
Location
Physical Environment
Related Studies
4Ps: A Strategy to Secure Customers’ Loyalty via Customer Satisfaction
Organizations strategically devise marketing strategy to satisfy the

desires of their prospective customers. The central goal of marketing strategy
is emphasized and emerges in two-way action which are providing good value
to customers against their spending, and being able to establish a strength
bond with their customers by satisfying their needs in profitability. To effectively
come up with a revolutionary market strategy that is equated with a result-
seeking plan, one has to thoroughly conduct a precise analysis of the market
and diagnostic evaluation of the factors that are associated with the market.
These factors include the approach of the competitor of their business, the
needs of their customers, and the capacity of the organization which comes in
the form of available resources which enable them to compete in the market
(Winer, 2004).
Marketing mix strategy, is defined as “the mix of controllable marketing

variables that the firm uses to pursue the desired level of sales in the target
market” (Churchill & Peter, 1995). There has been a significant change in the
market strategy ver the past decades as the contemporary marketing strategies
are seen to be more focused on the customers. The primary idea of the
marketing mix strategy, therefore, is to be able to provide a superior
performance through knowing and complying with the needs and requirements
of the customers (Armstrong & Kotler, 2011). Today, the customer driven
strategy is equated with a market driven strategy as this helps to evaluate and
highlight the market industry based on the needs and demands of the
customers. (Wheelen & Hunger, 2008).
Breaking down the marketing mix, which is the product, place, price, and
promotion, are coherently called as the 4Ps. Organizations focus on the two
types of strategic process to formulate a distinctive marketing mix. The first
process is to identify a market where an organization wishes to penetrate,
followed by the second process which is the development procedure of 4Ps
with the combination of all aspects of the marketing mix (Kanagal, 2009).
The Relationship Between Service Quality and Customer Satisfaction in

the Telecommunication Industry: Evidence From Nigeria
According to Tam (2000), there is a close link between the service quality
and customer satisfaction. Service quality is deemed a significant factor in
increasing customer satisfaction and as well as loyalty, the significance of this
variable in the customer satisfaction has been studied by academics and
practitioners. Service Quality also plays a crucial role in improving the
organizational profits because it is directly related to the customer satisfaction.
Success Factors Of Place Marketing: A Study Of Place Marketing

Practices In Northern Europe And The United States
When geographical locations are branded like products and services,

the brand name is then often the actual name of the location. A branded place
makes people aware of the location and connects desirable associations
(Keller, 1998). Places comprise many components, such as name, symbols,
packaging and reputation (Shimp, 2000). A study of the branding practices of
12 English cities found no evidence to suggest that the branding of locations is
impossible, and the results suggest that branding as a concept was seen as
relevant, but not always understood or applied effectively (Hankinson, 2001).
Chapter 3
Methodology
I. Research Design
As this study will tackle the relationship between the two main variables,
the place strategy and customer satisfaction, the researchers will abide by
the quantitate descriptive correlational research design. The existence of a
relationship between the aforementioned variables will be studied and
analyzed with the corresponding statistical procedure and data analyzation
of a correlational research design.
II. Context and Participant
Chingkee Tea has a very distinctive place strategy, with three of its
branches located at a walking-distance with each other in the vicinity of
Divisoria. This study aims to gather relevant information and data alongside
a thorough and meticulous analyzation to identify the relationship between
the place strategy and the customer satisfaction of Chingkee Tea.
To gather the necessary number of participants, the researchers have

used the Heuristical method, as this research entails a purposive sampling.
According to Lunenburg and Irby (2008), heuristics refers to the rule of
thumb for the sample size used in a study. The number of respondents for
this study is 316.
The participants of the study will be the customers of Chingkee Tea

coming from various demography. The researchers will ensure to have a
hands-on attitude towards the distribution of the questionnaires as this study
entails a purposive sampling, thus questionnaires will only be handed out to
actual Chingkee Tea customers.
III. Instrument
The instrument to be used to be used in this study is survey questionnaire.

The survey questionnaires will contain questions that will address the objectives
of this research.
This research will use a structured questionnaire (Appendix B). The

questionnaire to be used in this research is three pages in length. It has been
structured by the researchers based on concepts and ideas of authors
regarding place strategy and customer satisfaction. All of the questions that
were used in structuring the questionnaire are close-ended in nature, as they
are easier to quantify and analyze.
The first page of the questionnaire contains the informed consent form. On
the succeeding pages are quantifiable questions. The first part of this survey-
questionnaire contains three (3) questions that will gather the personal
information of the respondents. The respondents will choose the corresponding
choices in answering the respective questions. It will begin by asking the
gender, then preceded with the age of the respondent ranging from 18 below,
19 to 25, 26 to 31, and 32 above. Lastly, the respondent will choose their
occupation by the following choices: student, employed, self-employed, and
unemployed.
The second part are questions that answer the place strategy, with four (4)
questions focusing on the location as one of the sub-variables (McCarthy,
Jerome and Williams, 1996). The third part covers the second sub-variable
which is channel, comprising of 12 questions. Lastly, the fourth part covers the
customer satisfaction of the customers with four (4) questions.
The instrument is structured in the modified likert scale, on a 4 – point scale

to avoid neutralism. It ranges from “strongly agree” (SA), through “agree” (A),
“disagree” (D), “strongly disagree” (SD).
To measure the reliability of the questions, Cronbach’s Alpha Coefficient will
be used. If the value of alpha is more than 0.7, thus the instrument used which
is the survey-questionnaire is reliable. Furthermore, if the value of alpha
reaches 0.8 or more than, this entails that all of the inquiries and the overall test
is constantly reliable and has a strong reliability coefficient
The instrument will be pilot tested to 30 respondents which are not part of
the sample to establish the content validity.
IV. Data Gathering Procedure
This study will follow a structured process in gathering the necessary

information and data. The procedure is as follows:
 A letter with consent will be delivered to Chingkee Tea to
manifest the interest of the researchers in this study.
Furthermore, the letter of consent will allow the researchers to
conduct the study.
 A self-made questionnaire from the various concepts found in the
literature review will be constructed. The self-made questionnaire
will be distributed to the respondents of the study. The
respondents will be requested to sign the informed consent form
before answering the self-made questionnaire. The
confidentiality of the respondents will be assured. The
respondents may opt to safeguard their anonymity by not
disclosing their names.
 Before the actual distribution of the self-made questionnaires in
the final survey, the questionnaire will be pilot tested to thirty (30)
respondents not belonging to the actual sample.
 The results of the pilot-tested questionnaires will be measured
based on its reliability. The Cronbach’s Alpha Coefficient will be
used to establish this.
 Once the researchers have ensured the reliability of the self-
made questionnaires, the self-made questionnaires will then be
subjected to the final survey. The researchers will personally
hand-out the questionnaires to Chingkee Tea customers from
different branches of Chingkee Tea. The researchers will
alternately visit the branches. The researchers will first hand-out
surveys in the Gazebo Branch, and the following day, the Grand
Central Branch.
 After gathering all 316 respondents, the researchers will start
coding the questionnaires. Once the coding is finished, the
encoding process will begin. The researchers will input the
results of the questionnaires to Excel. After encoding, the tally
will then follow.
V. Data Analysis
The researchers will abide by the correlation method in analyzing the

data gathered to identify whether there exists a relationship between the
customer satisfaction and the place strategy of Chingkee Tea.
The data will be analyzed by computing the mean results of the

satisfaction in each branch, calculating the Pearson’s R to identify whether
there exists a relationship between the variables of the study, and to
compute for the p-value to compute for the p-value which serves as the
basis on accepting or rejecting the null hypothesis.
To establish the correlation between the variables, the study will abide
by the ranges bellow to interpret and identify the relationship of the variables
through the computation of the Pearson’s r:
Value Interpretation
.00-.19 Very weak positive relationship
.20-.39 Weak positive relationship
.40-.59 Moderate positive relationship
.60-.79 Strong positive relationship
.80-1.0 Very strong positive relationship
.00-(-.19) Very weak negative relationship
(-.20)-(-.39) Weak negative relationship
(.-40)- (-.59) Moderate negative relationship
(-.60)-(-.79) Strong negative relationship
(-.80)-(-1.0) Very strong negative relationship
The mean will be used to analyzed the average score of the individual
branches, depending on their service quality, food quality, physical environment
and the hygienic cleanliness. This will be obtained by getting the sum of all the
scores and divided by the total number of values.
The frequency and percentage table has been used in identifying the
levels of satisfaction in three of the branches of Chingkee tea.
The P-value will be used to determine how strong the study is leaning
towards the alternative hypothesis. The alpha level of 0.05 will be used as a
basis in this study, as this study is under the branch of business. If the result of
the p-value is lower than 0.05, then the null hypothesis will be rejected and the
alternative will be accepted. However, if the result is higher than the
aforementioned figures, then the null hypothesis will not be rejected, and thus
cannot claim that the alternative hypothesis is of validation.
CHAPTER 4
RESULTS AND DISCUSSION
This study attempts to assess if there is a significant relationship

between Chingkee Tea’s Place Strategy with regards to its three (3) present
branches and its customers’ satisfaction. There were three (3) Chingkee Tea
Branches involved in the study namely: The Main Branch, The Grand Central
Branch, and lastly, the Gazebo Branch. All three (3) branches are located within
an average of 67 meters apart from each other, just 3-4 minutes walking
distance, observably near from one another. This place strategy is apparent on
international establishments, mostly fast-food chains, convenience stores, and
banks. This set Chingkee Tea apart as firstly, it is a local establishment in
Cagayan de Oro city specializing in selling Milktea products and Ramen. This
study will answer the following research questions:
1. What is the profile of the customer of Chingkee Tea according to: age,
gender, and occupation?
2. What are the possible reasons why other customers have not visited all
the three (3) branches?
3. Is there a relationship between the place strategy of Chingkee Tea and
the customer satisfaction?
4. Is there a relationship between the locations of the 3 branches of
5. Is there a relationship between the channels of the 3 branches of
6. What is the level of satisfaction in the three branches?
4.1 Introduction
This chapter presents the analysis of data and research findings of the
study based on the gathered data. The data were examined to identify, relate
and explore the relationship between the customer satisfaction and place
strategy of Chingkee tea. This section exclusively revolves around the
introduction of accumulated information genuinely to encourage the
consumption of their products, a reflection of customer satisfaction, which will
be displayed in Chapter 5. The researchers had a maximum target of 3050
respondents, questionnaires were given to Chingkee tea customers. There
were only a total of 316 responses gathered at the end of the surveying period.
4.2 Results
4.2.1 Demographic Profile
4.2.1.1 Age-wise Distribution
The respondents of the study were divided into 4 categories of age

ranges namely: 18 below, 19-25 years old, 26-31 years old and 32 above.
Figure 1 below shows the percentage distribution of the said categories out of
the 316 respondents.
FIGURE 1. Age-wise Distribution
Total 18 Below 19-25 26-31 32 Above Did not specify

Number of
Respondents
316 161 123 20 2 10

As can be seen, 161 or 52% of the 316 respondents were aged 18 below,
123 or 40% of the 316 respondents were aged between 19-25 years old, 20 or
6% of the overall number of respondents were 26-31 years old, and 2 or 1%
were 32 years old above. Aside from that, 10 of the 316 respondents chose to
not specify their age.
4.2.1.2 Gender-Wise Distribution
There were two (2) categories in the division of respondents based on

their gender namely: Male and Female. Figure 2 below shows the percentage
distribution of both categories out of 316 respondents.
FIGURE 2. Gender-wise Distribution
Total Number of Male Female Did not Specify

Respondents
316 96 208 12
As can be seen, 208 or 66% of the 316 respondents are female, 96 or

30% are male, while 12 respondents or 4% of the 316 respondents chose to
not specify their gender.
4.2.1.3 Occupation-wise Distribution
The respondents of the study were divided into four (4) categories with
regards to their occupational standing namely: Student, Employed, Self-
Employed, and Unemployed. Figure 3 below shows the percentage distribution
of the 316 responses received.
FIGURE 3.Occupation-wise Distribution
Total Number Student Employed Self- Unemployed Did not

of Employed Specify
Respondents
316 256 36 8 8 8
As seen on Figure 3, 256 or 81% of the 316 respondents responded to

be Students, this majority of the total number of respondents. 36 respondents
or 11% to be Employed, 8 respondents or 2% to be Self-employed, and 8
respondents or 3% to be Unemployed. Aside from that, 8 respondents chose
to not specify their occupation which accumulates another 3% of the total
response to the survey.
4.2.2.1 Determining if respondents have been to all three (3) branches of
Chingkee Tea.
The respondents were asked the question “Have you visited the three
(3) branches of Chingkee Tea namely: Main Branch, Grand Central Branch,
and Gazebo Branch?”, to be answered by either Yes or No. The figure below
presents the percentage distribution of all the of the 316 respondents’ answers.
FIGURE 4. Respondents that have been to any Chingkee Tea Branch
Total of Respondents Yes No
316 257 59
Seen above, 257 or 81% of the 316 respondents responded “Yes”,

meaning, they have already visited any of the branches of Chingkee Tea. On
the other hand, 59 or 19% of the total number of respondents answered “No”,
meaning, they have not been to any of the three branches.
There were 12 or 9% of the total number of respondents who answered
No responded how some of the branches be inconsistent with the quality of
products offered, 10 respondents or 7% responded how some branches are
inconsistent with their service quality to be a reason as to why they have not
been to all three (3) of the Chingkee Tea branches. Lastly, some of the
branches’ layout and design did not significantly affect as to why some
respondents have not been to all the branches garnering only 8 or 6% of the 59
possible responses.
4.2.2.2 Determining how often respondents visit Chingkee Tea Branches
FIGURE 6. Frequency of how often Respondents visit the Chingkee Tea

Branches
Total Number Once a Month Twice a Month Thrice a Month More than
of Three times a
Respondents Month
316 87 65 61 103
Figure 3 presents the frequency of the respondents in visiting any of the
three (3) Chingkee Branches to be answered by the span of a month namely:
Once a month, Twice a month, Thrice a month, and More than three times a
month. 103 or 33% of the 316 respondents answered that they visit Chingkee
Tea more than three (3) times a month, the highest number of respondents
garnered. 87 respondents answered Once a month, which garners 27% of the
total responses. 65 or 21% of the respondents answered Twice a month and
lastly, the remaining 61 responses or 19% to visit Chingkee Thrice a Month.
4.2.2 Determining the Top 4 possible reasons as to why some of the

respondents haven’t been to all three (3) branches.
Figure 2 below presents the response of the 59 respondents that haven’t

been to all three (3) branches of Chingkee Tea as seen previously.
Respondents had to choose their top four (4) answers among 8 given possible
reasons namely:
A. Some of the branches are always full.
B. Some of the branches do not offer the product I want.
C. Some of the branches are inconsistent with the quality of the products
offered.
D. Some of the branches are inconsistent with the service quality.
E. The location of some of the branches is inconvenient for me.
F. The surroundings of some branches are sometimes messy or unclean.
G. The layout and design of some branches have an unpleasant

environment or ambiance.
FIGURE 5. Possible reasons why Respondents haven’t been to any of the
three (3) Chingkee Tea Branch
Total A B C D E F G
Number of
Respondents
who
answered No
59 40 16 12 10 39 13 8
As can be seen, majority of the respondents responded how branches

are always full, how the location of some of the branches deemed inconvenient
to them, how some of the branches do not offer the products they prefer, and
how the surroundings of some branches are sometimes messy or unclean as
the top four (4) reasons as to why they have not been to all three (3) branches
of Chingkee Tea garnering 40, 39, 16, and 13 responses, 29%, 28%, 12% and
9% of the 59 possible responses respectively.
4.2.3 The Relationship Between the Place Strategy and Customer

Satisfaction of Chingkee Tea
This study seeks to determine whether there exists a relationship
between the two main variables of the study. The two main variables are the
place strategy of Chingkee Tea and the Customer Satisfaction. To determine
the relationship between these two main variables, Pearson’s R was used.
The researchers have utilized the Pearson’s R in computing the

correlation between the variables of the study. This will be used to determine
whether there exists a linear relationship between the place strategy of
Chingkee Tea to its customer satisfaction. There are three possible results:
These are positive correlation, negative, and no correlation. To determine the
existence of a relationship through Pearson’s R, the value can be interpreted
as seen in the table below (Evans, 1996.)
Value Interpretation
.00-.19 Very weak positive relationship
.20-.39 Weak positive relationship
.40-.59 Moderate positive relationship
.60-.79 Strong positive relationship
.80-1.0 Very strong positive relationship
.00-(-.19) Very weak negative relationship
(-.20)-(-.39) Weak negative relationship
(.-40)- (-.59) Moderate negative relationship
(-.60)-(-.79) Strong negative relationship
(-.80)-(-1.0) Very strong negative relationship
Figure 7. Interpretation Table
To compute for the relationship between the place strategy and customer
satisfaction, the mean average of the question pertaining to the place strategy
was computed. The mean average of the questions that pertain to customer
satisfaction has also been computed. After computing for the mean average,
the two variables has been paired to compute for the Pearson’s r d with the
result below:
Mean average of the

questions of place strategy.
Pearson’s R= 0.61579
Mean average of the overall
satisfaction.
4.2.4 The Relationship Between the locations of the 3 branches of

Chingkee Tea in Divisoria to the satisfaction of their customers
The overall satisfaction has been paired with the questions pertaining to the
location of the three branches of Chingkee Tea. By finding the mean average
of the question that corresponds to the location and by finding the mean
average of the overall satisfaction, the Pearson’s R was computed. The value
of the computed Pearson’s R can be seen in the table below:
Locations of the three (3)

brancches of Chingkee Tea
located in Divisoria
Pearson’s R= 0.43751
Overall Satisfaction of the
customers
As the independent variable of this pair is the location, it is paired with
the dependent variable which is the customer satisfaction. The result of the
computed Pearson’s R has a value of 0.43751. The result show a moderate
positive relationship between the aforementioned variables. The positive result
entails that when a variable increases or decreases the other variable increases
or decreases as well. The moderate positive relationship in the variables implies
that the location has a significant relationship with the customer satisfaction.
4.2.5 The Relationship Between the channels of the three (3) branches of
Mean of the questions on the

channels of the three (3)
branches
Mean of the question on the Pearson’ R= 0. 0.64226
overall satisfaction of the

customers
The independent variable in this pair is the channel which is a sub-

variable of the place strategy, and is paired with the dependent variable which
is the customer satisfaction. The results imply a strong positive relationship
which means that when one variable increases or decreases, the other variable
increases or decreases as well. The relationship of the two variables show a
significant relationship.
4.2.6 The level of Satisfaction in the three branches

Mean Range Number In % Interpretation
1 4 1% Very Dissatisfied
1.76 11 4% Dissatisfied
2.51 160 53% Satisfied
3.26 129 42% Very Satisfied
Figure 8. Main Branch
The respondents who have been to the Main Branch is 96% of the total
respondents. Out of 316 of the respondents there were 304 who have already
visited the Main Branch. Out of the total respondents who have visited the main
branch, 1% of this was dissatisfied with the customer satisfaction of this branch.
Four respondents experienced extreme dissatisfaction upon visiting this
branch. There are 11 dissatisfied respondents which is 4% of the total
respondents who have visited the main branch. The satisfied respondents are
160, which is 53% of the total respondents who have visited the main branch.
Those who are very satisfied are 129 in number which is 42% of the total
respondents who have visited the main branch.
Figure 9. Grand Central Branch
The respondents who have been to the Grand Central Branch is 97% of
the total respondents. Out of 316 there were 307 who have already visited the
Grand Central Branch. Out of the total respondents who have already visited
the Grand Central Branch there were 5 respondents who were very dissatisfied.
2% of the total respondents were very dissatisfied. The number of respondents
who were dissatisfied is 15. This is 5% of the total respondents who have visited
the Grand Central Branch. The number of respondents who were satisfied is
165. This is 54% of the total respondents who have Grand Central Branch.
There are 122 respondents who were very satisfied which is 40% of the total
respondents who have visited the Grand Central Branch.
Figure 10. Gazebo Branch
The number of respondents who have visited the Gazebo Branch is

95%. There is a total of 301 out of 316 who have visited the Gazebo Branch.
The number of respondents who have visited and had a very dissatisfied
experience is 5. This is 2% of the total respondents who have visited the
Gazebo Branch. The respondents who have visited and were dissatisfied is 11
and is 4% of the total respondents who have visited the Gazebo Branch. The
number of satisfied respondents is 133 which is 44% of the total respondents
who have visited the Gazebo Branch. The number of very satisfied respondents
is 152 which is 50% of the total respondents who have visited Gazebo Branch.
4.2.7 Hypothesis Testing
There are four (4) hypothesis of this study. The directional kind of hypothesis
has a null hypothesis that states that there is no positive relationship between
the place strategy and the customer satisfaction of Chingkee Tea. The
alternative hypothesis states that there is a positive relationship. The non-
directional null hypothesis states that there is no relationship between the place
strategy and the customer satisfaction of Chingkee tea. The alternative
hypothesis states that there is a relationship between the place strategy and
customer satisfaction. Through computing the P-value based on the data
collected from the surveys conducted, it resulted to a 3.3283E-18P-value. Since
the computed P-value is lower than the Alpha level which is 0.05, the
researchers have rejected the null hypothesis and accepted the directional
alternative hypothesis. Thus, there is a positive relationship between the place
strategy and customer satisfaction of Chingkee Tea.
4.3 Discussion
This study aims to determine whether there exists a relationship between

the current place strategy of Chingkee Tea and their customers’ satisfaction.
The place strategy contains two (2) sub-variables, however, only the sub-
variable which is the location and channels will be extensively focused on. All
the customer satisfaction’s sub-variables will be focused on throughout the
study.
The location of the three branches is evidently located alongside each

other, The Main Branch be 71 meters and 130 meters away from the Grand
Central Branch and Gazebo Branch respectively. According to Hotelling (1921),
firms set the best location and consider the customers’ distribution in doing so.
As the findings of the research entails that majority of the customers are
students, this situates as to why they have chosen locations nearby schools
which are their target market. The branches of Chingkee Tea are located in
Divisoria which is located at the heart of Cagayan de Oro City. Apparently, there
are numerous schools that surround the three branches such as Xavier
University, Lourdes College, Pilgrim College, Shekinah Glory, ABCCA, and
Corpus Christi. The result of competitive forces can be seen as firms locate
themselves close to each other (Talkwalker, 2012). The location entails a
market share, and with an effective strategy the firm may gain an increased
market share. Usually, where one firm of similar nature emerges, other firms
will follow (Talkwalker, 2012).
4.3.1 Demographic Profile of the Customers
In the age-wise distribution of Chingkee Tea’s customers, majority of the

customers are 18 below followed by those who are 19-25 of age. The result of
the age supports the idea that majority of the customers of Chingkee tea are
students, as this age range belong to the said population. Furthermore, the
results show that 81% of the customers are students. For the gender-wise
distribution, the results show that majority of the customers are female.
4.3.1 The Relationship Between the Place Strategy and Customer

Satisfaction of Chingkee Tea
The researchers have conducted a pairing of significant variables to

establish the relationship between the two main variables. The first pair’s
dependent variable is the overall satisfaction and the independent variable
which is the place strategy. Between the two (2) variables, there is a strong
relationship between the place strategy to the overall satisfaction of the
customer. Since this pair had a computed Pearson’s R of 0.61579. It shows a
strong positive correlation which entails that when one variable increases or
decreases, the other variable increases or decreases as well, this is based on
the Interpretation Table (Evans,1996) seen above. The place strategy has been
implemented in a way that positively affects the customer satisfaction.
According to Kotler, P., Armstrong, G., Cunningham, P.H. (2005), customers
want products and services to be as convenient to purchase as possible, thus,
the place strategy must be thoroughly established in a way that the customers’
convenience is put into consideration. As they situate branches where they are
accessible to the potential customers Chingkee Tea has made their customers
satisfied (Mayer, 2018). Furthermore, as stated in the Central Place Theory, the
three channels provide the customers with options depending on their
respective choice of physical environment and the like. In general, the
customers are satisfied as the management of Chingkee Tea has been
effective in eliminating the negative disconfirmation.
4.3.2 The Relationship Between the locations of the 3 branches of

The second pair in this study is the location of the three (3) branches of
Chingkee Tea and is paired with the satisfaction of the customers. The results
show a moderate positive relationship. The location of the establishment must
be accessible to the potential customers. Based on the results of the second
pair, there exists a moderate relationship. The possible reason for this is the
influence of the geographical factor of the location of the Chingkee Tea’s
branches. Some of the respondents may have been residence far from the
downtown area where Chingkee Tea is located. Thus, the location of Chingkee
Tea’s branches may has a moderate positive relationship towards the customer
satisfaction.
4.3.2 The Relationship Between the channels of the 3 branches of

The results of the two pairs show a strong positive relationship. The results
imply that how the products and services of Chingkee tea are being made
available to their target market has a significant relationship towards the
customer satisfaction.
According to the Cognitive Dissonance Theory by Festinger and

Carlsmith (1959), people who got littler (contrasted with bigger) motivations
changed their frames of mind to support the conduct. For example, when a
group of customers purchases a product, some have already tried and was
satisfied with the product yet some haven’t. According to the theory, those who
have tried might influence the ones who haven’t. Since there is a variation in
one’s taste and preference, there is a possibility that the first-time customer be
given high expectations yet might dislike the product. The same situation be
applicable to customer service quality and location of the place that impacts the
quality of customer satisfaction in the end. This early research not just
drastically affected the field of social brain research yet in addition made ready
for the board research to investigate new pathways in understanding vital work
environment practices. To eliminate the negative disconfirmation of the
customer brought about by the negative experience of a product they disliked,
the Management has to act upon it. For the case of Chingkee Tea, they can act
upon these situations by providing a wide selection of flavors to cater to
customers’ taste and preference.
4.3.3 The level of Satisfaction in the three branches
Results showed that out of the 316 respondents, 307 or 97% of the total
number of respondents have been to the Grand Central Branch. The results’
computed Mean and Standard Deviation resulted that 5 respondents or 2% of
the total number of respondents responded to be Very Dissatisfied, 15
respondents or 5% of the total number of respondents responded to be
Dissatisfied, 165 respondents or 54% of the total number of respondents
respondednt to be Satisfied, and Lastly, 122 respondents or 40% of the total
number of respondents responded to be Very Satisfied with the Grand Central
Branch.
301 out of the 316 respondents have been to the Gazebo Branch
garnering 95% of the total number of respondents. Results showed that 5
respondents or 2% of the total number of respondents were Very Dissatisfied,
11 respondents or 4% of the total number of respondents were Dissatisfied,
133 respondents or 44% of the total number of respondents were Satisfied, and
majority of the respondents, garnering 152 respondents or 50% of the total
number of respondents responded to be Very Satisfied with the Gazebo
Branch.
4.3.4 Hypothesis Testing
Based on the calculations on the Hypothesis testing through computing

its P-value, the researchers have concluded that there is a positive relationship
between the Place Strategy and Customer Satisfaction of Chingkee since the
results totalled to only 3.3283E-18, which is lower than the expected alpha level
of 0.05. The results are strongly leaning towards the alternative hypothesis,
which implies that directional alternative hypothsis is to be accepted in this
research. Thus, there is a positive relationship between the place strategy and
Furthermore, the satisfaction of the customers towards the three

branches of Chingkee Tea resulted to the positive relationship between the
place strategy and the customer satisfaction. According to Festinger (1957)
cognitive dissonance theory suggests that if there is an inconsistency in the
provision of the products and services, then the customer attitude and belief of
the customers. Chingkee tea has addressed this dissonance by providing their
customers with a number of options. The customers are satisfied with the
overall quality of Chingkee tea with all the three branches. The elimination of
dissonance has helped increase this satisfaction. If the customer is not entirely
please with the food quality of Chingkee Tea in a given branch, then the
customer may transfer to another branch. If they are then satisfied with the
quality of the alternative branch, then the management has been successful in
eliminating the dissonance. The same theory can be applied to the physical
environment of Chingkee Tea as the design and layout of each branch varies.
If a customer seeks to indulge in a different vibe in terms of the physical
environment, then the other branches of Chingkee Tea may satisfy what the
customer wants. If again the customer is satisfied with the physical environment
of the alternative branch, then the management has been once again
successful in eliminating the dissonance.
Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
This chapter shall contain the short description and enumeration of what
transpired in the study process as well as the implications that can be gained
from the results of the study. This chapter shall consists the summary,
conclusion and recommendation of the study based on the data gathered and
presented by the researchers in the previous chapter hereof.
I. Summary of Findings and Discussion
This study attempts to assess if there is a significant relationship between

Chingkee Tea’s Place Strategy with regards to its three (3) present branches
and its customers’ satisfaction. This place strategy that Chingkee Tea practiced
is evident on international establishments, mostly fast-food chains,
convenience stores, and banks. The research strives to answer the following
questions: (1) What is the profile of the respondents in terms of Age, Gender,
Occupation and Income? (2) How frequent the respondents avail the products
offered by Chingkee Tea? (3) Is the location of the branch an important factor
for the consumers to buy Chingkee Tea products? And (4) How satisfied are
the consumers in terms of the location of the branches, service quality, food
quality, physical environment (layout , design and ambiance) and Hygienic
Cleanliness of products and surroundings. To answer these questions, a survey
is conducted with the use of researcher-made questions. There were a total of
316 responses gathered from the customers of Chingkee Tea from different
branches which are the Main Branch, Gazebo Branch and at the Grand Central
Branch. After thorough analysis of the data, the following findings emerged:
1. Half of the population respondents were aged eighteen (18) and below
and nineteen (19) to twenty-five (25) years old.
2. The respondents were mostly female customers of Chingkee Tea.
3. Majority of the respondents that avail Chingkee Tea products are

composed of students from different schools and grade level.
4. Majority of the respondents visited the three (3) branches of Chingkee
Tea namely: Main Branch, Grand Central Branch, and Gazebo Branch.
5. Majority of the respondents responded how branches are always full,

how the location of some of the branches deemed inconvenient to them,
how some of the branches do not offer the products they prefer, and
how the surroundings of some branches are sometimes messy or
unclean.
6. Most of the respondents visit any of the three (3) Chingkee Tea
Branches in more than three (3) times a month, the highest number of
respondents garnered.
7. The independent variable which is the place strategy has been paired
with the overall satisfaction to find the Pearson’s r.
8. The Pearson’s r shows that there is a strong relationship between the

place strategy and the customer satisfaction of Chingkee Tea.
9. The location of the three branches has been paired with the overall
satisfaction having a moderate positive relationship.
10. The channels of three (3) branches has been paired with the customer
satisfaction with a strong positive relationship.
11. Majority of the 314 respondents have visited main branch of Chingkee
Tea and 306 out of 314 respondents have been to the main branch of
Chingkee Tea. Half of the population were satisfied according to the
customer satisfaction, almost half of the population were very satisfied
conferring to the customer satisfaction.
12. The respondents who have been to the Grand Central Branch is 97%
or out of 314 respondents, 307 have visited the Grand Central Branch.
Almost half of the population shows that the customers are very satisfied
in measuring the customer satisfaction and half of the population
reflects that the customers are satisfied with the overall performance of
the Chingkee Tea, Grand Central Branch.
13. There is a total of 301 out of 316 who have visited the Gazebo Branch.
The number of respondents who have visited and had a very satisfied
experience is half of the population. 44% or 133 out of the total
population responded that they are satisfied with what they experience
in Chingkee Tea, Gazebo Branch.
The present study aims to determine whether there exists a relationship

between the current place strategy of Chingkee Tea and their customers’
satisfaction. The place strategy contains two sub-variables. However only the
sub-variable which is the location will be extensively focused on. All the
customer satisfaction’s sub-variables will be focused on.
The results showing the majority of the population imply that the
participant’s average population of Chingkee tea’s customers are mostly
students. Majority of these respondents are aged 18 (eighteen) to 32 (thirty-
two). Researchers decided to divide it into 4 categories namely 18 below, 19-
25 years old, 26-31 years old and 32 above.
In terms of Gender, there’s 2 categories namely Male and Female. There

are 96 male respondents and 208 female respondents and a total of 316
respondents. An important finding to be discussed while using Pearson’s has
three possible outcomes. It could be positive correlation, negative correlation,
or no correlation at all. Researchers presents pie graphs to illustrate numerical
proportion. In figure 3 shows how frequent does the respondents of Chingkee
tea visits the 3 (three) branches.
The goal of this study is to determine if there is an existing relationship

between the branching strategy of chingkee tea and its customer satisfaction.
The branching strategy have two sub-variables we conclude but the
researchers focused more on the sub-variables on customer satisfaction. The
researchers observe that the Chingkee Tea’s branching strategy is that the
location of their branches are close in each other and located at one place.
According to Hotelling (1921), firms set the best location and consider the
customers’ distribution and the majority customers of this study are students
that’s why the Chingkee Tea decided to locate at Divisoria because it’s the heart
of Cagayan de Oro. Which are closer to many potential buyers because
Divisoria have numerous schools like Xavier University-Ateneo de Cagayan,
Lourdes College, Pilgrim College etc. and it fits in their target costumers and
according to (Talkwalker, 2012), the location entails a market share, and with
an effective strategy the firm may gain an increased market share. Usually,
where one firm of similar nature emerges, other firms will follow. The
researchers have showed pairings in significant of the variables to see the
relationship between the two main variables. The first pair is the independent
variable which is the overall satisfaction which relate to customer satisfaction
and the second is the dependent variable which is the location of the three
branches. Between the two variables there is a reasonable relationship
between the location of the branches and overall satisfaction of the customer
in terms of location. The researches also have shown a pairing for the location
of the variable as an important issue in availing Chingkee Tea’s products or
visiting from the three branches and it’s paired with the frequency of visits. The
frequency of visit has been paired with the dependent variable is how the
location of the branches inspire the customers to visit the three branches.
II. Conclusions and Implications
Based on the data acquired and analyzed throughout the study, the
population of respondents is majorly composed of students aged eighteen (18)
and below and nineteen (19) to twenty-five (25) years old. Majority of the
respondents are females as well being 66% of the total respondents.
By computing the results’ Mean and Standard Deviation, it resulted to

96% of the respondents have been to the Main Branch, meaning, out of 316 of
the respondents there were 304 who have already visited the Main Branch.
95% out of the total number of respondents have visited the Gazebo Branch,
meaning there is a total of 301 out of 316 who have visited the Gazebo Branch.
Lastly, the respondents who have been to the Grand Central Branch is 97% of
the total respondents, meaning, out of 316, there were 307 who have already
visited the Grand Central Branch.
Out of the total respondents who have visited the main branch, 1% of
this were dissatisfied with the customer satisfaction of this branch, haing four
(4) respondents out of 316 experienced dissatisfaction upon visiting this
branch. 11 respondents were dissatisfied which is 4% of the total respondents
who have visited the main branch. The number of satisfied respondents
resulted to 160, which is 53% of the total respondents who have visited the
main branch. Those who were very satisfied totaled to 129 respondentd in
number which is 42% of the total respondents who have visited the main
branch.
There were 5 respondents who were very dissatisfied upon visiting the Grand
Central Branch, being 2% of the total number of respondents. There were 15
who responded dissatisfied, this is 5% of the total. Satisfied customers resulted
to 165 respondents, this is 54% of the 316 respondents. And lastly, 122
respondents answered that they were very satisfied with the establishment, this
is 40% of it all.
The number of respondents who have visited and had a very dissatisfied
experience is 5. This is 2% of the total respondents who have visited the
Gazebo Branch. The respondents who have visited and were dissatisfied is 11
and is 4% of the total respondents who have visited the Gazebo Branch. The
number of satisfied respondents is 133 which is 44% of the total respondents
who have visited the Gazebo Branch. The number of very satisfied respondents
is 152 which is 50% of the total respondents who have visited Gazebo Branch.
The results of the study were determined by first pairing two (2)
questions with different variables relating both to how it affects customer
bahaviour in terms of frequency of visits, overall satifaction, and volume of
purchase of Chingkee Tea customers.
The first pair include the independent variable which is the overall
satisfaction in terms of location strategy and the dependent variable which is
the location of the three branches. By computing its Pearson’s R, it resulted to
0.404077, meaning that these two variables has a moderate relationship with
one another, meaning, the location of the Chingkee Tea branches has
moderate effects on their customers’ overall satisfaction on their product.
The second pair include the location of all the three (3) Chingkee Tea
Branches and how it affects the frequency of visits made by their customers.
By computing its Pearson’s R, it resulted to only 0.087481, this shows a very
weak correlation. This means that how the customer’s view the importance of
the location of the three branches, has a very weak relationship to their
frequency of visit. This implies that the location of Chingkee Tea Branches does
not significantly affect the frequency of their customers’ visits at the
establishment.
The third pair being how the location of Chingkee Tea encourage
customers to visit the establishment and avail more milktea products. By
computing its Pearson’s R, it resulted to only 0.161767, this shows a very weak
relationship as well, meaning, that the location of Chingkee Tea does not
significantly affect how customers are encouraged to visit any of the branches
and buy more milktea products.
Implications
Conclusions drawn out from the study proves issues and concepts
formulated by previous researchers on Customer Satisfaction and Place
Strategy.
This research has proved that Place Strategy is a key ingredient in the
business success (Heil, n.d). The location selected must have adequate access
to customers, workers, transportation and materials such as ingredients and
resources. The place chosen by the establishment in pursing their business
operation may show positive result to profitability and by accelerating potential
sales. This research has established that there is a positive relationship
between place strategy and customer satisfaction of Chingkee Tea. This
implies that the customers are satisfied with how Chingkee Tea has situated
their branches. The location of Chingkee Tea is a high foot traffic, densely
populated area and surrounded by different business establishments.
According to Christaller (1993), there should be a minimum target population
for a business to sustain its operations. For Chingkee Tea they have chosen
students around Divisoria as their target popuation who serves as the
immediate customers of Chingkee Tea that will sustain their business
operations in the long run. The establishment has also considered one of the
main concepts of the Central Place Theory which is the range. This refers to
the maximum distance that the people are willing to travel to purchase goods
and services. Chingkee Tea has made sure that their target customers are
located at a close range which makes it convenient for them.
Furthermore, Festinger and Carlsmith (1959), suggested that

management must identify the cause of dissonance in the attitude and
behaviour of their customers. This research has proved that Chingkee Tea has
been effective in eliminating the dissonance of their customers which resulted
to a positive relationship between the place strategy and customer satisfaction.
Chingkee Tea has provided their customers with different options in terms of
service, food and physical environment (ambiance). The three (3) branches
although, the same brand name provides different physical environment and
food varying on the branch customers intend to visit. The elimination of
dissonance occurs when a customer’s experience changes negative to
positive. When a customer is dissatisfied with a certain product then the
management must eliminate this negative disconfirmation. They may provide
more options thus the emergence of the various flavors of milk teas. In addition,
when a customer is unpleased with the physical environment of a branch they
may choose another branch. If they are satisfied with the alternative branch
then Chingkee Tea has been succesful in eliminating the dissonance.
III. Limitations of the Study
Although this study provides relevant results and findings there are a
number of limitations that should be noted.
This study has been bounded by several frameworks formulated through

existing concepts and theories by previous researchers and the prominent
personalities in the field of research. The framework has been used in the
formulation of the assumptions in this study. Thus, the results and discussions
that have been gathered are only limited to the assumptions and theories of the
framework in this study. The researches acknowledge that there are other
significant variables at play in the overall customer satisfaction of the customers
of Chingkee Tea other than its relationship to the place strategy.
In addition, the results of the study have been formulated through the
response of the customers of Chingkee Tea. The answers may have been
socially influenced.
The limiitations of the study also includes the characteristics of the

design of the research that influenced the interpretation of the findings of the
research. The researchers also acknowledge the restrains on the
generalizability of the study.
IV. Recommendations
The researchers strongly recommend the following with regards to the

structure of the study and to the future researchers:
1. Conduct a preliminary interview to the management of Chingkee Tea

to thoroughly identify the relevant variables to be used in the survey
questions and to the study in general.
2. Identify the exact total number of customers in a year in the different

branches of Chingkee Tea to compute for the target respondents and
ensure the generalizability.
3. To increase the generalizability of the research by increasing the target
respondents that will represent the population of the study.
4. To conduct a post-quantitative interview to gather more information,

insights, and better understand the answers of the respondents. This
will help understand the implications of the findings.
The researchers recommend the following to the applicable beneficiaries

of the study (ref. Chapter 1):
Chingkee Tea Management: Seeing that the current place strategy of

Chingkee Tea is effective, the researchers recommend that Chingkee Tea open
up more branches in different cities that are similar in characteristics of
Cagayan de Oro. Furthermore, the establishment must still abide by the current
place strategy by choosing locations that are school-saturated areas. The
reasons as to why the customers have not visited all the three (3) branches
must also be addressed. The most common reason is when the branches are
always full and that the locations are inconvenient.
Customers: The researchers recommend that the customers utilize the

information regarding the place strategy of the establishment they patronize.
Aspiring Business Owners: The researchers recommend that the aspiring

business owner utilize the ample insights provided by the research. The
aspiring business owners must prioritize the place strategy as an important
factor in putting up their business. They must consider the existing theories and
concepts provided in this study.
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APPENDICES
A. SURVEY QUESTIONNAIRE FORM
RESEARCH SUBJECT INFORMED CONSENT FORM – STUDENT PARTICIPANTS
To the prospective research subject: Read this consent form carefully and ask as many questions as you like
before you decide whether you want to participate in this study or not. You are also free to ask questions any
time before, during, or after your participation in this research.
Project Information
Project Title: THE RELATIONSHIP BETWEEN THE CUSTOMER SATISFACTION AND PLACE STRATEGY
OF CHINGKEE TEA
Principal Investigator:
Sponsor:
Niña Christine Felice A. Moreno
Department: ABM 12-Nicholson Organization: Xavier University
Other Investigators: Charlotte Faye Mejia, Lila Loureen

Alkuino, Hannah Pamela Javier, Micah Mende, Vanessa Phone: +63917-894-9890
Mae Alpiz, Maria Vince Tolentino, Chrixanlor Isiderio
1. PURPOSE OF THIS RESEARCH STUDY

You are being asked to participate in a research study that aims to find out whether there
exists a relationship between the independent and dependent variables. The researchers would
want to determine the relationship between customer satisfaction and place strategy of
Chingkee Tea among their customers from various demography.
2. POSSIBLE RISKS OR DISCOMFORT

No known or possible risks can pose danger to you in any form, as this research will
only involve a survey questionnaire. The answering of such questionnaire, however, may
consume a portion of your time.
3. POSSIBLE BENEFITS
 The findings of this research will benefit the students for it will provide additional
knowledge on the importance of brand image and its connection with consumer buying
behavior.
 This research will also prove useful to business entrepreneurs who wish to improve
their individual business ventures for this could help them understand their target
markets better.
4. FINANCIAL CONSIDERATIONS
No additional cost is required from the respondents.
5. CONFIDENTIALITY
Your identity in this study will be treated with utmost confidentiality. The results of this study or
any other related data may be published for scientific purposes, but your name will not be
mentioned as well as any identifiable references to you.
6. TERMINATION OF RESEARCH STUDY
You are free to choose whether or not to participate in this study. There will be no penalty if you
choose not to participate.
7. AVAILABLE SOURCES OF INFORMATION

Any further questions and inquires about this study will be answered by the Principal
Investigator.
Name: Niña Christine Felice A. Moreno
Phone Number: 0917 894 9890
8. AUTHORIZATION
I have read and understood this consent form, and I volunteer to participate in this research
study. I voluntarily choose to participate, but I understand that my consent does not take away
any legal rights in the case of negligence or other legal fault of anyone who is involved in this
study. I further understand that nothing in this consent form is intended to replace any
applicable laws.
_____________________________________
Participant's Signature Over Printed Name
Date: ________________________
Principal Investigator's Signature Over Printed Name

Date: ________________________
Name (Optional):_______________________ Date:

__________
PART I. PERSONAL INFORMATION
1. Gender 2. Age
[ ] Male [ ] Female [ ] 18 below [ ] 19-25 [ ] 26-31
[ ] 32 above
3. Occupation
[ ] Student [ ] Employed [ ] Self-employed [ ] Unemployed
Direction: Please put a check mark for your corresponding answers.
1. Have you visited the three (3) branches of Chingkee Tea (Main Branch, Grand Central
Branch, and Gazebo Branch)?
____ Yes ____ No
2. If NO, what are the possible reasons? Check only your TOP 4 answers.
__ Some of the branches are always full.
__ Some of the branches do not offer the product I want.
__ Some of the branches are inconsistent with the quality of the products offer.
__ Some of the branches are inconsistent with the service quality.
__ The location of some of the branches are inconvenient for me.
__The surroundings of some branches are sometimes messy or unclean.
__ The layout and design of some branches have unpleasant environment or ambiance.
3. How often do you visit Chingkee Tea?

__ Once a month
__ Twice a month
__ Thrice a month
__ More than three times a month
Part II. Location
Strongly Disagree Agree Strongly

disagree agree
1 4
2 3
1 The location of the branches of Chingkee Tea

is an important factor for me to avail their
products and visit their branches.
2 If one of the branches of Chingkee Tea is full, I

am willing to walk to another branch (Gazebo,
Grand Central and the Main Branch).
3 The location of the three branches of Chingkee

Tea encourages me to visit their store and avail
their products.
4 The location of the three branches of Chingkee

Tea is convenient for me.
Part III. Channels

Direction: Please put a check mark for your corresponding answers. Do not
include the Chingkee Tea
Branch that you have not visited.
disagree agree
1 4
2 3
Main Branch
1 The food and drink of the main branch is of high

quality.
2 The main branch of Chingkee Tea offers an
efficient and high service quality.
3 The layout and design of the main branch of

Chingkee Tea gives out a comfortable and
pleasing ambiance.
4 The main branch of Chingkee Tea offer products

that are clean as well as the surroundings.

disagree agree
Grand Central Branch
1 4
2 3
1 The food and drink of the grand central branch

is of high quality.
2 The grand central branch of chingkee tea offers

an efficient and high service quality.
3 The layout and design of the grand central

branch of chingkee tea gives out a comfortable
and pleasing ambiance.
4 The grand central branch of chingkee tea offer

product that are clean as well as the
surroundings.

disagree agree
Gazebo Branch
1 4
2 3
1 The food and drink of the gazebo branch is of

high quality.
2 The gazebo branch of chingkee tea offers an

efficient and high service quality.
3 The layout and design of the gazebo of

chingkee tea gives out a comfortable and
pleasing ambiance.
4 The gazebo of chingkee tea offer product that

are clean as well as the surroundings.
Part III. Customer Satisfaction
Very Dissatisfied Satisfied Very

Dissatisfie Satisfied
d
Rate your overall satisfaction in terms of… 4
1 2 3
1 Location of the branches
2 Food Quality
3 Service Quality
4 Physical Environment (Layout , design and

ambiance)
5 Hygienic Cleanliness of products and

surroundings
MARIA VINCE VICTORIA M. TOLENTINO
Block 10,Lot4, NHA,Kauswagan,Cagayan de Oro City
E-mail: [email protected]
Mobile # 09669347504
PERSONAL DATA
Age: 18 Height: 5’3
Weight: 66 kg Birthplace: Cagayan de Oro City

Nationality: Filipino Religion: Roman Catholic
EDUCATIONAL ATTAINMENT
SENIOR HIGH Xavier University Senior High School
Accountancy, Business and Management Strand
73 Corrales Avenue, Cagayan de Oro City
2017 – Present
Misamis Oriental General Comprehensive High

JUNIOR HIGH School
Don Apolinar Velez St., Cagayan de Oro City
2014-2017
St. Mary’s Academy of Carmen

Carmen, Cagayan de Oro City
2013-2014
ELEMENTARY Bongbongon Elementary School

NHA, Kauswagan, Cagayan de Oro City
SY 2007-2013
CHARLOTTE FAYE J. MEJIA
Zone #10, Bulua Cagayan de Oro City
Contact Number: 0997-425-7610
Email: [email protected]
PERSONAL INFORMATION
Age: 18 years old

Height: 5’3”
Weight: 55 kg
Birthplace: Cagayan de Oro City Nationality: Filipino
Civil Status: Single Religion: Roman
Catholic
EXPERIENCE
MACARIZZA
September 2017
AJ’s Dip em Brownies

July 2018
EDUCATION
SECONDARY Xavier University Senior High School

2017 – Present
Gusa Regional Science High School - X

Gusa, Cagayan de Oro City
2014 – 2017
ELEMENTARY City Central School

Don Apolinar Velez St, Cagayan de Oro
2008 – 2014
PRIMARY Kong Hua School

Kauswagan, Cagayan de Oro City
2006 – 2008
Hannah Pamela M. Javier
Davao Street Phase 1 Aluba, Cagayan de Oro City
Age: 17 years old

Height: 4’6”
Weight: 36 kg
Birthplace: Cagayan de Oro City Nationality: Filipino
Catholic
EDUCATION

2017 – Present
Corpus Christi School

Macasandig, Cagayan de Oro City
2014 - 2017
ELEMENTARY
Holy Trinity Montessori School
11th – 21th Nazareth, Cagayan de Oro City
2008 - 2014
VANESSA MAE P. ALPIZ
4TH 21ST street Nazareth, Cagayan de Oro City
Contact Number: 0956 -632 -2328
Age: 18 years old

Height: 5’3”
Weight: 56 kg
Birthplace: Davao City Nationality: Filipino
Catholic
EDUCATION

2017 – Present
Nanuri Internation School

Taguanao, Indahag, Cagayan de Oro City
2015 – 2017
Holy Cross College of Sasa

Sasa, Davao City
2014 – 2015
ELEMENTARY New Ilang Achievers Academy, Inc.

Ilang, Davao City
2011 – 2014
F. Bangoy Central Elementary School

Sasa, Davao City
2008-2011
PRIMARY F. Bangoy Central Elementary School

Sasa, Davao City
NIÑA CHRISTINE FELICE A. MORENO
101, Ludeña St., Brgy. 5
Balingasag, Misamis Oriental
Age: 17 years old Height: 5’6”
Birthplace: Quezon City Weight: 75 kg

Nationality: Filipino Civil Status: Single
Religion: Roman Catholic
EDUCATION
SENIOR HIGH Xavier University Senior High School

2017 – Present
JUNIOR HIGH Kong Hua School

2014 – 2017
ELEMENTARY Kong Hua School

2008 – 2014
PRIMARY International School

2006 – 2008
CHRISTXANLOR ISIDERIO
Bellevue subdivisión block 2 lot 1,
Cagayan De Oro City 9000
Contact numbers: 0956-654-3228
E-mail: [email protected]
PERSONAL INFORMATION:
Age: 18 yrs. Old Height: 5’’7
Weight: 68 kg. Birthplace: Cagayan

de Oro City Nationality: Filipino Civil
Status: Single Religion: Catholic
EDUCATION:
SENIOR HIGH Xavier University
73 Corrales Avenue Cagayan de Oro City
2018-2019
JUNIOR HIGH Cagayan de oro national high school
Nazareth 12 st, Cagayan de Oro
2014-2017
ELEMENTARY Camaman-an elementary school
Camaman-an adela st, Cagayan de Oro
2008-2014

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The Relationship between the Place Strategy

and Customer Satisfaction of Chingkee Tea

Alkuino, Lila Loureen

“TITLE OF RESEARCH” submitted as a requirement for graduation for Senior

submitted to this or any other school for a degree or other requirements.

ALKUINO, LILA LOUREEN

ALPIZ, VANESSA MAE

JAVIER, HANNAH PAMELA

MEJIA, CHARLOTTE FAYE

MORENO, NINA FELICE

TOLENTINO, MARIA VINCE

FEBRUARY 22, 2019

This Research Paper entitled: “TITLE OF RESEARCH” prepared and

submitted by MEMBER’S NAME, MEMBER’S NAME, MEMBER’S NAME,

MEMBER’S NAME, in partial fulfillment of the requirements for graduation for

Approved by the Committee on Oral Examination with a passing mark.

Approved and accepted in partial fulfilment of the requirements for

graduation for Senior High School.

Dr. Rogelio L. Gawahan, PhD

FEBRUARY 22, 2019

The researchers wish to express their deepest gratitude to the

dedicate these pages of hardwork to them.

struggles, she never gave up on us and continued to guide us our way.

To the researchers’ family and friends, who served as

And above all, to the LORD ALMIGHTY, for he is everything,

dedicate the success of this study to Him.

Chingkee Tea, opened in 2012, is Cagayan de Oro’s most in-demand and

with numerous flavour options, it has been well-received by customers all

of their consumers. This study aims to access if there is a positive relationship

establishment where its Place Strategy, which is Close-Parameter Branching

has been commonly adapted mostly by International Brands or big-time

establishments like McDonald’s, Banco De Oro, and Jollibee. Data were

a self-made and structured survey-questionaire. The researchers applied the

Pearson’s R, Mean and Standard Deviation, and hypothesis testing by

computing its P-value to determine if a significant correlation existed. The

results of the study revealed significant data to support the proposed

Keywords: Branching Parameters, Place Strategy, Location, Channels, Service

Quality, Product Quality, Customer Satisfaction, Physical Environment, Hygienic

APPROVAL SHEET iii

TABLE OF CONTENTS vii

CHAPTER 1 THE PROBLEM 1

Statement of the Problem 5

Significance of the Study 7

Scope and Delimitation 8

CHAPTER 2 REVIEW OF RELATED LITERATURE 10

CHAPTER 3 RESEARCH METHODOLOGY 20

Context and Participants 20

Data Gathering Instruments 21

Data Gathering Procedure 22

Determining if respondents have been to all… 30

Determining how often respondents visit… 31

Determining the top 4 possible reasons… 32

The Relationship between the Place Strategy .. 34

The Relationship between the locations of… 35

The Relationship between the channels.. 36

The Level of Customer Satisfaction of 3 Branches 37

Demographic Profile of the Customers 40

The Relationship between the Place Strategy… 40

The Relationship between the three locations.. 41