Comparative Study of Online Marketing vs.

Local Marketing

to the Profit of the Selected Ukay-Ukay Store in Talavera

A Thesis Paper
Presented to the Faculty of
Senior High School Department
ASKI Skills and Knowledge Institute, Inc.

In Partial Fulfillment
Of the Requirements for the Subject
Practical Research 2

Group 2

Berdin, Franklin L.
Carpio, Joana Marie A.
Cuevo, Alfred Joshua M.
Esteban, Richter M.
Guillermo, John Bryan
Magayo, Erica B.
Pale, Ley Anne V.
Rauza, Rowena E.
Romero, Jemma Rose C.
Salmo, Seth Louis Ira A.

Danica S. Valentino
Subject Teacher
 CHAPTER I

THE PROBLEM

Introduction

Technology plays a vital role to everyone. It helps

to communicate easily and spread the messages to the people

around. It can play a very important and helpful role.

There are lot of methods and techniques used in marketing

online, it includes email, websites, search engine

optimization etc. Through technology, online marketer makes

lives easier and not a time consuming compared to the

traditional selling. Different adaptation of the internet

for businesses and personal use they generated new channels

for advertising and marketing engagement. There are lot of

benefits and challenges inherent to online marketing which

is used as mediums to attract new, potential customers and

convert it to loyal customers.

Most of the small business used local marketing

because it is a great way to gain customers in their area

who may see the business as a better option. Local

marketing has the power to replace the item unlike the

online marketing, the customer cannot return the item

whatever the reason is. Local marketing is a market setup

where you can buy products and service in the actual store

in the traditional way.

The term ukay-ukay is derived from the Filipino

hukay, which means to dig up. Ukay-ukay, synonymous with

wagwag, which is the act of dusting off a piece of clothing

by taking hold of one end and snapping it in the air.

Wagwag is an ilokano term synonymous with segunda mano (SM)

or second hand, which unwittingly gives the stuff an air of

elegance because SM stands for shoemart, the foremost

Philippine retail chain. Apparently, ukay-ukay started as a

popular trade at the turn of the century.

Ukay-ukay may be considered a "special" type of good

available in the market. First, it has a different

marketing and sale process. Second, how it enters the

market is unique. When such goods are brought into the

country, records would show that some were not really

intended for sale: The government would maintain that these

are either donations or aid from foreign countries. Others

are recorded as pasalubong for Philippines-based relatives.

There are various reasons consumers still buy these goods.

One is their low prices when compared to substitute and

complementary goods.
 According to hearsay, its origin started way back

in the 80s. Due to the frequency of calamities happening in

our country, a certain humanitarian group called the

Salvation Army used to ship second-hand garments and other

goods as forms of help to the Filipino victims. As the

goods piled up, business-minded people decided to buy them

at a very low cost and sell them to the public. Thus, ukay-

ukay business was born.

When this kind of clothing store first appeared in

the market, it was not so much noticed by consumers and

there were only a few number of this clothing store. As

time went by, together with life-style of Filipinos, ukay-

ukay became numerous anywhere in the country. As a matter

of fact, Bench, Bonjour de corps and a lot more are readily

available in ukay-ukay stores in a high demand. This is

just a proof that ukay-ukay somehow meets the standards of

Filipinos when it comes to clothing. People who patronize

ukay-ukay have varied reasons and belong to various social

classes. Most patrons belong to the low and middle classes

whose reason is affordability. On the other hand, some

patrons belong to the high class whose reasons are

originality, uniqueness and quality. These are the factors

that justify the booming of ukay-ukay business nationwide.

Some may not yet be aware but the growth of ukay-ukay

really seemed to be indispensable especially now that most

Filipinos experience economic downfall and low purchasing

power. Aptly, consumers would definitely search for

products like clothes that are affordable that meets

somehow their standards.

Statement of the Problem

This research study generally aims to determine the

significant difference between Online Marketing and Local

Marketing to the profit of the selected ukay-ukay stores in

Talavera.

1. What is the difference between online marketing and

local marketing to the profit of the selected Ukay-ukay

store in Talavera?

2. Is there any significant difference between online

marketing and local marketing in terms of:

2.1 Price

2.2 Quality

2.3 Service
3. How may the potential marketability of Online Marketing

be described in terms of its difference in profit to the

commercial marketing?

Hypotheses of the Study

The following hypotheses are stated in a null form:

1. There is no difference between online marketing and

local marketing to the profit of the selected Ukay-ukay

store in Talavera

2. There is no significant difference between the profit of

online marketing and local marketing in terms of price,

quality and service.

3. There is no significant difference between the

customers’ perception and entrepreneurs’ perception in

terms of price, quality and service of the ukay-ukay

businesses.

Significance of the study

In the most basic form, marketing strategy is a plan

to sell services or products in a way that renders long-

term profitable growth. It is like a road map for any brand

guiding the brand where to go and what’s the best route to

get there. Successful companies use strategy to deliver

their offerings to the customers that will have meaningful

impact. This study was anticipated to contribute additional

information to serve the following individuals and

organization.

This section provides a description on the various

significance and purpose of this research to the owners,

suppliers and the future researchers.

Owners. The findings of this study will be beneficial

to the owners to enrich their knowledge and understanding

regarding the difference impact of the online and local

marketing strategies on its profit.

Suppliers. This study will serve as a guide for them

to be familiar with this kind of strategies of ukay-ukay

vendors.

Consumers. This study will help the customers to

understand the operation and enable them to evaluate or

assess the level of satisfaction in Ukay-ukay business.

Students. This study will give new ideas and

information to them specifically to the marketing students

in their future understanding.

 Future researchers. As a researcher, this study may

serve as motivation and inspiration to the future

researchers. This will help them to become more

knowledgeable and for them to allow good opportunities in

life. It gives path especially when the situation has

something to do in order to be aware in different issues

related to this study.

Scope and Delimitation

The study focuses on the determining the differences

between the profit of Online Marketing and Local Marketing

on the selected ukay-ukay store in Talavera.

The scope of the study involves the time and money

will spent, the tools or materials and techniques used, in

the number of personnel needed for the experiment to be

completed.

The general budget for this experiment ranges from a

minimum amount of 100 pesos (includes raw materials) to a

maximum amount 500 pesos which depends on the amount of

unstable expenses.

The materials needed for this experiment is sheets of

paper and pen for survey.

 Technique involves performing the correct method in

order to obtain the data and information like giving survey

questioner to those who are involve in this research.

The experiment needs 30 participants to answer the

question under the survey questionnaire.

Research Paradigm

Entrepreneurs’ Perception

Ukay―ukay Businesses Online Marketing

vs. Local Marketing
 Price

 Quality

 Service
Profit

Customers’ Perception

Figure 1. Research Paradigm

Figure 1 illustrates the framework of the study. At

the core is the ukay-ukay business phenomenon, the

Philippine version of rum-mage sale. The term now pertains

to places that sell second-hand goods such as clothing,

shoes, bags, furniture, etc. These are usually shipped from

USA at a cheaper price. It also means to dig be-cause

people will dig into a pile of clothes.

Drawing from the perception of both entrepreneurs and

customers, the study looked into the business’ price,

quality and service.

Conceptually, Price is a value that will purchase a

finite quantity, weight, or other measure of a good or

service.

Quality, refers to the perception of the degree to

which the product or service meets the customer's

expectations. Quality has no specific meaning unless

related to a specific function and/or object.

Service, a valuable action, deed, or effort performed

to satisfy a need or to fulfill a demand.

Based on the model, it is hypothesized that there is

a relationship that exists among the following attributes

of the ukay-ukay business: (a) price, (b) quality and (c)

service. The results of the study would serve as bases in

giving ideas to business-minded persons who would be

prospective entrepreneurs. The findings would also serve as

bases for actions to strengthening the marketing strategies

of the ukay-ukay business.

Definition of Terms

This part of the study provides explanation on the

meaning of the words and how it was used to secure the

understanding of this topic. The following terms are

described clearly and operationally.

Local Marketing. Refers to the ukay-ukay businesses

which only have physical store but not using social media

to market their products

Online Marketing. Refers to the ukay-ukay business

which have physical store at the same time selling their

items on online or social media (specifically Facebook)

Profit. refers to the amount of earnings that exceeds

expenses for the period.

Hukay. the act of digging clothes

Ukay-Ukay. secondhand clothes, bags, hats, shoes and

etc. imported from other country.

Wagwag. is an ilokano term synonymous with segunda

mano (SM) or second hand

 Survey Questionnaire. a list of planned, written

questions related to a particular topic, with space

provided for indicating the response to each questions,

intended for submission to a number of persons for reply.