Chapter 2

Philippine Copyright 2018
By:
Marjorie D. Delos Santos
and the
Bachelor of Science in Business Administration Department
Bulacan State University – Sarmiento Campus
All rights reserved. Portions of this manuscript may be reproduced with proper referencing
and acknowledgement of the author.
BULACAN STATE UNIVERSITY – SARMIENTO CAMPUS 2
DESIRABILITY OF KOREAN RESTAURANTS

& KOREAN COSMETICS PRODUCT
BASIS: A NEW PRODUCT
DEVELOPMENT
A Thesis
Presented to the Faculty of Bachelor of Science in Business Administration Department Bulacan
State University – Sarmiento Campus
San Jose del Monte City, Bulacan
In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Business Administration
Major in Marketing Management
By:
MARJORIE DELOS SANTOS
JUNE 2020
LIST OF FIGURES
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
The culture to the Philippines is a combination of cultures of the East and West. Every nation
has its own identity and some are even part of a larger empire outside of what is now the
Philippines. The Philippine archipelago was first settled by Negritos; today, although few in
numbers, they preserve a very traditional way of life and culture.
A K-POP became a global phenomena , they call it hallyu, (the Korean wave),
K-pop has become a truly global phenomenon thanks to its distinctive blend of addictive
melodies, slick choreography and production values, and an endless parade of attractive South
Korean performers who spend years in grueling studio systems learning to sing and dance in
synchronized perfection.
Hallyu has been building for two decades, but K-pop in particular has become increasingly
visible to global audiences in the past five to 10 years. South Korean artists have hit the
Billboard Hot 100 chart at least eight times since the Wonder Girls first cracked it in 2009
with their crossover hit “Nobody”.
The first idol group in South Korea appeared on the scene in 1996, when SM founder Lee
Soo-man created a group called H.O.T. by assembling five singers and dancers who
represented what he believed teens wanted to see from a modern pop group.
H.O.T. shared traits with today’s idol groups: a combination of singing, dancing, and rapping,
and disparate personalities united through music. In 1999, the band was chosen to perform in
a major benefit concert with Michael Jackson, in part because of their potential to become
international pop starts an indication that even in the ’90s, the industry was attuned to K-pop’s
potential for global success.
That potential can be seen in the studios’ eager promotion of multilingual artists like BoA,
who made her public debut at the age of 13 in 2000 and in the ensuing years has become one
of South Korea’s best-known exports thanks to a brand built on raw talent and multicultural
positivity. All the while, K-pop as a whole was building its own brand, one based on flash,
style, and a whole lot of quality. (Retrieved from
https://www.vox.com/culture/2018/2/16/16915672/what-is-kpop-history-explained)
Over the past decade, a specific form of Korean popular music - K-pop - has enjoyed huge
success around the world. Many of Korean idol or artist was the main reason why filipino’s
and other countries continuing to engaged the Korean culture, that’s why most of the business
that related to Korean was become bloomed and success in the marketing business industry.
THEORITICAL FRAMEWORK
Examines the determinants that influence consumers’ intention to buy environmentally
friendly products. Ajzen’s Theory retrieved from
(https://en.wikipedia.org/wiki/Theory_of_planned_behavior).
of planned behaviour (TPB) provides the conceptual framework of the research and the
appropriateness of the theory, there is some indication that the theory is more appropriate in
well established markets that are characterised by clearly formulated behavioural patterns,
The results are consistent with previous research on moral behaviour.

Planned behaviour will affect the market so that the consumer will affect too to decide what is
they planning to buy that’s why many Filipino’s will captivate the Koreans products and
Korean wants.
Attitude
Behavioral Beliefs
toward the
Behavior
Behavioral
Normative Beliefs Intention
Subjective Norm Behavior
Perceived
Control Beliefs
Behaviorial Actual Behavioral
Control Control
Figure 1 Ajzen’s Theory (TPB)
THE FIRST KOREAN FOOD RESTAURANT IN THE PHILIPPINES:
Based on my research the first Korean Resto that brings an influence to many Filipino’s was
the Korean village are popular to it’s well known delicious Korean food because aside from
many Korean foods menu’s it has the same delicious and standard factors like the foods in the
Korea. And aside from that many people stated that it has a fact not just a simple feedback,
According to Therese Andaya “I have been going to this restaurant as since the 80's... (As in a
teenager) This restaurant was originally situated in adriatico street for a good 20 years. Then
moved to Nakpil street,,, In my memory, this place had always been full pack, there was a
Korean woman who was ushering and attending to all the guests.
I clearly recall in the 80's and everytime I enter this restaurant to date makes me salivate.
Their yakiniku (squid, beef, pork, chicken, liver) had been very consistent in taste.
A must try is their soft tofu soup, kalbi jim (beef stew). The appetizers/starters are to die for.
You may even ask for endless servings. For desert, they have always traditionally served fresh
pineapple fruit all free respectively.
Some of the waiters had been in that restaurant since the 80's.Korean village is a way of
living, a tradition......I understand why they don't anymore make their place fancy because
effortlessly, it has created its own community...from our parents and to us,
parents.”According to Chap Chae “Best Korean Food I've ever had. Chap Chae is the best, the
meat is tender, the place is clean. Food and service was great. I greatly enjoyed the side dishes
especially the dilis, Korean toge, kim chi and the soup as well. Because we really enjoyed this
side dishes, we had to ask more additional side dishes be served on our table. The side dishes
are actually bottomless.its part of the set menu that you should Order then you get this side
dishes as long as they have. Price is actually reasonable, I should say affordable for a Korean
meal. However, the odor of the restaurant is disturbing, perhaps due to the lack of adequate
ventilation. The restrooms are located on the 2nd floor, and is not accessible to the handicap.
They serve Korean frozen delights too.One small problem is availability of parking. You will
have to park on the street if there are any available.”From that feedback I can assure that the
best Korean food in the Philippines was the Korean village but likely to the other store of
course Korean village has an opportunities to improve like their parking area no matter how
many customers they have if still their parking area was not afford to accommodate many of
their customers they can’t reach the target sales that much. (RETRIEVED FROM
https://www.tripadvisor.com.ph/Restaurant_Review-g298573-d818997-Reviews-Korean_Village-
Manila_Metro_Manila_Luzon.html).
THE FIRST KOREAN COSMETIC PRODUCTS IN THE PHILIPPINES:
The Face Shop is a South Korea-based skincare and cosmetics manufacturer, retailer and a
franchise business. It is a subsidiary of LG Household & Health Care of LG Corporation. Its
products includes body, bath, skin care and make-up aimed at both women and men.
The CEO of the company is Hong Dong-seok in march 18,2016.The Parent organization is the
LG Household & Health Care Headquarters: Jongno-gu, Seoul, South Korea Founder: Jung
Woon-ho Founded on December 2003 Subsidiaries: Groupe F&P SRI, Le, TFS Singapore
Private Limited, Avon Manufacturing (Guangzhou) Ltd
(Retrieved from http://international.thefaceshop.com/
• positive
EXPECTED P>E disconfirmation
• satisfaction
PERFORMANCE
• confirmation
COMPARISON
P-E • neutral
PERCEIVED
• negative
PERFORMANCE
P<E disconfirmation
• dissatisfaction
FIGURE.2
Disconfirmation Paradigm
According to the Disconfirmation Paradigm, perceptions of a service encounter are
characterized by either confirmation or disconfirmation of expectancies. Confirmation is when
a service is performed as expected. When there is a difference between performance and
expectations, disconfirmation results.Essentially customer satisfaction is the consumer’s
evaluation of how well the firm (usually a service firm) has lived up to their promises. As
outlined in the general discussion of customer satisfaction, consumers compare their initial
expectations of likely value against their perception of the actual value they received when they
purchased or consumed the product or service.Because consumers are comparing two aspects
(prior expectations to actual delivery) they are essentially confirming (or disconfirming) how
well the organization has delivered. In services marketing textbooks, this process is described
as the Disconfirmation Model of Customer Satisfaction.This website has a basic model for
understanding the process that consumers use to generate their customer satisfaction level,
which is most suitable for students in an introductory marketing course. However, below is the
more detailed Disconfirmation Model of Customer Satisfaction, which is designed for review
by students undertaking services marketing as a subject or as an university assignment.
(Retrieved from https://www.marketingstudyguide.com/disconfirmation-model-of-customer-
satisfaction/)
CONCEPTUAL FRAMEWORK
IPO model is the conceptual framework used by the researcher to project a better
understanding in this exclusive study:
KOREAN FOOD RESTAURANTS
INPUT PROCESS OUTPUT
 Equipment  Cooking  Finished products

 Utensils  Slicing  Services
 Raw products  Cleaning  Recommendation
 Promotion
FEEDBACK
FIG.2
FIGURE.2
In this IPO model, consists of which factor influence the consumer when visiting the stores,
first we must check the equipments in that store if all of it are in good condition then we will
assure that it’s has a safetiness then the process of how the service is going on it can be affect
the health and of course the security of a product if it can has a nutritious and clean as well to
eat, and the most important is the service we are in the restaurant food so we need a good and
friendly service to our dear customers to have their loyalty to comeback.

KOREAN COSMETIC PRODUCTS
INPUT PROCESS OUTPUT
Get the Make a research, The product price

demographic profile and survey and the quality of a
of the respondents (distribution of product and also the
in terms of questionnaire to the facilities and security
 Age target and conduct inside outside the
 Gender an interview. store.
 Occupation
income
 nationality
FEEDBACK
FIGURE.3
Korean Cosmetic Products IPO Diagram
In this figure 3. IPO model, The part of the questionnaire consists of questions that are
exploring which factors influence a consumer when buying the Koran cosmetic products. First ,
the respondents were universally about the factors that important to them when buying it. The
most important factor is if it’s a Korean brand. The respondents answered that this is an
important factor to consider. The second most important factor is the product quality, because it
can affect to their skin care. For this reason, we should enhance more as we can the local brand
to influence many Filipino that when the product is local brand we can assure that this is worth
it too and affordable.
STATEMENT OF THE PROBLEM
The objective of the study was to identify why
1. Demographic profile:
1.1 Age
1.2 Gender
1.3 Nationality
1.4 Occupation
2. What are the factors shall influence the consumer to eat Korean food?
3. Do you think Korean food is more delicious than Filipino food?
4. Why are you auspices the Korean food?
5.
The objective of the study was to identify
1. Demographic profile
1.1 Age
1.2 Gender
1.3 Monthly income
1.4 Civil Status
2. How will you captivate the other consumers to buy this Korean cosmetics product?
3. What is your greatest expectations to meet the satisfaction using it for your skin care?
4. Why do you keep using the Korean cosmetic products?

5.
SCOPE AND DELIMITATION OF THE STUDY
The Scope of the study consists of what additional population, concept, context or time that
include in my study, who are the included in the study and who are the respondents? The
respondent of this study was all the people that used water in daily life of course it’s us and the
main respondents was Income level is included but has exemptions in respondents who are
depending on their family or exactly to their budget. The total respondents is consisting of 200.
Why it is important to conduct a survey? To gathered information form a target population, a
survey makes use of statistical techniques mainly used in quantitative research.
In general, questionnaires are effective mechanisms for efficient collection of certain kind’s
information. Many Filipino people’ s are influence with the Korean idol so that they eagerness
to buy they are not aware that it can cover our owns cultures our own products and own
literature. The research is focalized to help the many Filipino’s to become K-poppers but still
don’t forget our own culture we can be more do well to other different countries so that they
can affect the business process of its, the awareness of how the importance of our own culture
and our own products , to satisfy the market needs with our own Filipino businesses.
SIGNIFICANCE OF THE STUDY
It signifies that many Filipino people’s are influence with the Korean idol so that they eagerness
to buy they are not aware that it can cover our owns cultures our own products and own
literature.
Consumers. The study provides the beneficial, because after all they not only receive
something for nothing, giveaway of freebies are a great way to try new product that consumers
may not have normally considered for purchased. Through freebies package people often
discover truly worthwhile products or services. And most of the consumer are more likely to
buy once they have a good idea of what they are spending their hand earned money on.
Researchers. The study provides to know the importance of our own culture and products
package to various consumer to buy the product that not included to their budget, but because of
many korean idols they actually buy the product even if they not needed exactly the product and
it helps to know what the consumers want and dislike regarding to the product they buy.
Future Researcher. This study can help the future researchers to their research because it is
consist of valuable data that applicable to their study.
Company. Like consumer attitudes, experience also colors consumer responses to certain
products. By studying consumer behavior, marketing professionals can tap into consumer
experiences with similar products to promote consumption and gain competitive advantage over
competitors.
Marketing Student. Those students may read this to get some ideas and information’s for their
related study to this research.

DEFINITION OF TERMS
k-popper - is simply someone who listens to Korean music, whether through a single artist or a
billion and enjoys it. We shouldn't bind ourselves with what others think or define us with. A
kpopper is someone who likes one group or a hundred groups, a soloist or a hundred soloists.
CHAPTER 2
REVIEW OF RELATED LITERATURE OF STUDIES
FOREIGN LITERATURE
From the book of The New Conceptual Selling by Robert B. Miller and Stephen E.
Heiman with Tad Tuleja (2011), I conclude that there has a sales planning which is the three
phases of the sales call, you need to strategically plan so that you know how to handle your
business in the matter of sales. The first phase was to get the information or getting
information it involves learning what you need to know about your customers in that
situation you will find out the customers reason why they interested in doing business with
you, this is where every good sales call begins. The second one was the giving information it
involves describing and demonstrating your business, so that matter the customers
understand of what he needs to make a sound buying decision. And your difference in the
other competitors, and the last phase is getting commitment it means that the buyer and the
seller has a good commitment to the buy-sell products.
According to Quality and Performance Excellence by James R. Evans ( 2007) Don’t
Ignore the Middle Management A well known principle of organizations theory popularized
by Deming is that organization are systems. When changing one part of an organization, it is
necessary to consider the effects of the change on other parts of the system. They have a
power of maintaining focus on the organization’s values, managing solutions to system-level
problems (those that involve many functions and departments), and acting as teachers and
coaches of the company.
According to Consumer Behavior & Marketing Strategy 7th edition by J.Paul Peter
(2004) they said that when it comes to communication process you need to put a symbol
using words, pictures and actions. A cognitive processing perspective suggests that
developing successful promotion strategies is largely a communication problem.
When it comes to choosing a location I’ve found it from the book of Levy Weitz (2007) it
says that the location of your business is super importants because of what I understand from
his study about that is your success is also depends of the place where your business is, it
also consider when choosing a location accessibility of the parking lot like the source of my
introduction the first Korean restaurants in the Philippines namely the korean village.
Successful retailers design a clear, coherent location strategy that helps them meet their
overall goals.
According to International Marketing by Sak Onkvisit & John J. Shaw (1989) it
explains why customers really buy stated that you can help them to decide what they buy
because you know of what your product is so that you can discuss to them of what are they
really need to buy. For like an example according to my understanding when i start my
business when there’s a customers that has not a knowledge of your selling product or what
we call an ignorant buyer slash a first timer user or customer you can help them to decide of
what they want to buy, when it comes to food you can do suggestive selling so that the
customer will have a knowledge about that you can inform to them of what is the product or
services that can fit to them. And this is a book that shows you how to stop selling because a
customer has a secondary perceptions states that “not of you, or of your product, but of his
own situation, no matter what how many reasons you may have for believing your product or
service is a great buy, they will mean nothing unless each individual customer has a solid
reasons of his own for wanting to do business with you, ,like my business proposal about a
Korean product or Korean service if the customer is not a Korean lover no matter what I do
there’s no reasons to force my customer to buy.
According
FOREIGN STUDIES
According to the book of Meir Liraz “Small Business Management: Essential
Ingredients for Success” (2017), one great need of business managers is to understand and
develop marketing programs for their products and services. Long term business success
depends on the ability to maintain a strong body of satisfied customers while continually
increasing this body with new customers. He discussed the marketing concept on the
importance of customers to a firm. And all company policies and activities should be aimed
at satisfying customers need while obtaining a profitable rather than maximum sales volume.
He also talk over how to make an effective marketing strategy that you can use in your
business. He also says some ways of collecting data that are inexpensive and an easily
accessible for the business owners. Such as employees, are one of the best sources that you
can used to determine the needs and wants of you target customers. Also your competitor,
know what the things they don’t have that you know you can provide. In that case there’s a
possibility that your profit may increase.
From the book of The New Conceptual Selling by Robert B. Miller and Stephen E.
Heiman with Tad Tuleja (2011), Marketing Strategy in Action in the year of 2003, Food
Cubs, had 78 corporate and 30 franchised stores. The chain built it’s success by focusing in
its primary market. It must has been a leader in shaking up the food industry and forcing
many conventional supermarkets to lower prices, increase services or in some cases, go out
of business. The Difference between cub and most supermarkets is obvious the minute a
shopper walks through Cub’s doors. It is wider than usual shopping carts, which are intended
to suggest expensive buying, fit easily through the wide aisles, which channel shoppers
toward high profit impulse foods.
According to the book of New Product Management by C. Merle Crawford and C.
Anthony Di Benedetto (2015) since my topics is starting a new business or a new product
development i found out that I need this workforce engagement businesses have learned that
to satisfy customers, they must first satisfy the workforce. Academic research has found
similar relationships between workforce and customers, if the employees were satisfied to
their working conditions and jobs they stayed with your company so that they can collect
more consumers and you can get their loyalty so that they can help to the errors of the
company.
According to Consumer Behavior & Marketing Strategy by Jery C. Olson (2004). The
uses of consumer behavior is to know that “people buy for their own reasons, not for yours”.
Solid businesses is begins and ends with the customer’s with his or her needs, problems, and
range of reasons for buying.
According to The New Conceptual Selling by Robert B. Miller and Stephen E.
Heiman with Tad Tuleja (2011) Basic Goals states that you should keep in mind everytime
you go out on a sales call.
From the book of Fred Factor by Mark Sanborn(2016) it shows the positivity in life that
no matter what is you status in life you can do more. The main take away from this book is
There are no important jobs, just people who fell unimportant doing them, so that what can
you do at your job to go over and above what people expect of you in otherwise the main
reason of my desirability of having a korean food restaurant is to help people that super love
the korean food they no need to go to Korea to experience it. “Anticipate the needs of others
and go out of your way to help them”, just like fred the main character in the book he is
empathic,injected his personality into his work, good listener, realized that the real path to
success was building a relationships and he added value and never did just the bare minimum.
According to the book of Think and Grow Rich by Napoleon Hill’s (1932) describe the
successful business and achievement of many business owners, This feature length film will tell
their inspirational stories and how they ultimately achieved their success. I put it to this paper
because if you want to be success in your business you need to learn more to the many
achievers to know what is the right thing to do and to be more inspire that they do that so why
you can’t do also. It also says that “There are no limitations to the mind except to those we
acknowledge”. What ever you have in your mind, whatever impact you want to create in the
world what ever business you want to start it’s all possible when you believe in yourself and
you gives a steps to do it because this book helps to believe in yourself and build your
confidence.
LOCAL LITERATURE
 According to Philippine Management Review (2019) The arguments for the
protection of local industries are the first one is keeping money at home, states
that the trade unions and protectionists often argue that international trade will
lead to an outflow of money because it makes the foreigners become more richer
and local people become more poorer. The second one is Reducing
unemployment, equalizing costs and price, enhancing national security and
protecting infant industry. It is related for my
 According to Negosyo Realtalk by Arvin Orubia(2018)


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Philippine Copyright 2018

DESIRABILITY OF KOREAN RESTAURANTS

In Partial Fulfillment of the Requirements for the Degree

MARJORIE DELOS SANTOS

THE PROBLEM AND ITS BACKGROUND

numbers, they preserve a very traditional way of life and culture.

with their crossover hit “Nobody”.

potential for global success.

style, and a whole lot of quality. (Retrieved from

Examines the determinants that influence consumers’ intention to buy environmentally

friendly products. Ajzen’s Theory retrieved from

The results are consistent with previous research on moral behaviour.

Figure 1 Ajzen’s Theory (TPB)

THE FIRST KOREAN FOOD RESTAURANT IN THE PHILIPPINES:

pineapple fruit all free respectively.

THE FIRST KOREAN COSMETIC PRODUCTS IN THE PHILIPPINES:

franchise business. It is a subsidiary of LG Household & Health Care of LG Corporation. Its

Private Limited, Avon Manufacturing (Guangzhou) Ltd

(Retrieved from http://international.thefaceshop.com/

According to the Disconfirmation Paradigm, perceptions of a service encounter are

characterized by either confirmation or disconfirmation of expectancies. Confirmation is when

a service is performed as expected. When there is a difference between performance and

expectations, disconfirmation results.Essentially customer satisfaction is the consumer’s

by students undertaking services marketing as a subject or as an university assignment.

(Retrieved from https://www.marketingstudyguide.com/disconfirmation-model-of-customer-

understanding in this exclusive study:

KOREAN FOOD RESTAURANTS

INPUT PROCESS OUTPUT

 Equipment  Cooking  Finished products

friendly service to our dear customers to have their loyalty to comeback.

KOREAN COSMETIC PRODUCTS

INPUT PROCESS OUTPUT

Get the Make a research, The product price

Korean Cosmetic Products IPO Diagram

it too and affordable.

STATEMENT OF THE PROBLEM

The objective of the study was to identify why

3. Do you think Korean food is more delicious than Filipino food?

4. Why are you auspices the Korean food?

The objective of the study was to identify

1.3 Monthly income

1.4 Civil Status

4. Why do you keep using the Korean cosmetic products?

SCOPE AND DELIMITATION OF THE STUDY

Why it is important to conduct a survey? To gathered information form a target population, a

survey makes use of statistical techniques mainly used in quantitative research.

SIGNIFICANCE OF THE STUDY

consist of valuable data that applicable to their study.

related study to this research.

seller has a good commitment to the buy-sell products.

According to Quality and Performance Excellence by James R. Evans ( 2007) Don’t

power of maintaining focus on the organization’s values, managing solutions to system-level

coaches of the company.

developing successful promotion strategies is largely a communication problem.

According to International Marketing by Sak Onkvisit & John J. Shaw (1989) it

there’s no reasons to force my customer to buy.

According to the book of Meir Liraz “Small Business Management: Essential

possibility that your profit may increase.

toward high profit impulse foods.

According to the book of New Product Management by C. Merle Crawford and C.

range of reasons for buying.

According to The New Conceptual Selling by Robert B. Miller and Stephen E.

you go out on a sales call.