The Effect of Customer Satisfaction to the Profitability of Jukaykayatbp

(Tanauan Branch)

________________

A Research Study

Presented to the

Faculty of the Tanauan City National High School

Tanauan City, Batangas

________________

In Partial Fullfillment

of the Requirement Research II in

Accountancy, Business and Management

________________

RAPHAELA MACANDILI CASTILLO

MHONICA DIPASUPIL OBNIAL

RICHELLE MAHUSAY SANTIAGO

DINA BALISBIS SANTOS

October 2017
 ACKNOWLEDGEMENT

The researchers would like to extend their gratitude to the following people who have

extended their hands in pursuing the completion of this research paper.

First of all, to the ALMIGHTY GOD, for giving us them the determination to accomplish

this study;

To MRS. LENITA R. MARGATE, Research II teacher, for sharing her knowledge and

expertise in the development of this project;

To MRS. YBETTE P. QUINE, ABM teacher, for providing them with constructive and

detailed feedback which provided ample information in this study;

To their PARENTS, for supporting them financially;

To JUKAYKAY, for giving the researchers the information they needed in this study.

To TEACHERS, for helping them and sharing their valuable ideas.

To all those people who showered love and encouragement to the researchers, thank you!
 DEDICATION

To our beloved family, relatives,classmates, friends, Jukaykay, respondents, to the Department of

Education to Tanauan City National High School, and especially to our Divine Creator.

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ABSTRACT
Jukaykayatbp is the ultimate clothing hub for the so-called millennials. It is considered as the

house of all apparels that is Tumblr-inspired and Pinterest-inspired that youths of today enjoy

wearing to express and flaunt themselves. (Rodriguez, 2016) This study intended to identify the

effect of the customer satisfaction to the profitability of Jukaykayatbp located at Tanauan City.

The descriptive and causal relationship design has been adopted in this study. With the use of

random sampling technique, the researchers came up with the 5% monthly customers, equivalent

to 113 customers- respondents. The researchers used a five-point Likert scale-questionnaire to

collect data from the respondents. The descriptive statistics of frequency counts and percentage

was also used to analyze the demographic data while the interpretation of results was based on

verbal interpretation of the Likert scale. The significant relationship of customer satisfaction to

the profitability of Jukaykayatbp was determined using Pearson Correlation Coefficient Formula.

After a thorough computation, the researchers found out that there is 1.00 perfect correlation.

Therefore, the hypothesis is accepted. The effect of customer satisfaction on Jukaykayatbp is

significantly related to its profitability. As a conclusion, there is a significant relationship

between customer satisfaction and the profitability of Jukaykayatb. Therefore, the researchers

concluded that customer satisfaction is very important not only for Jukaykayatbp but also for

other businesses in order for them to generate their desired profit.

Table of Contents
Title Page……………………………………………………………………………….i

Acknowledgement.............................................................................................ii

Dedication..........................................................................................................iii

Abstract……………………………………………………………………………... iv

Contents…………………………………………………………………………….…v

Chapter

I. The Problem

Introduction..........................................................................................................1

Background of the Study......................................................................................2

Statement of the Problem………………………………………………………..…...3

Theoretical Framework…………………………………………………………….....4

Conceptual Framework……………………………………………………………….6

Significance of the Study……………………………………………………….........7

Scope and Limitation of the Study…………………………………………………..8

Definition of Terms………………………………………………………………….…9

Chapter

II. Review of Related Literature and Studies

Related Literature…………………………………………………………………...10

Related Studies……………………………………………...................................13

Synthesis..........................................................................................................15

Gap of the Study…………………………………………………………………….15

Chapter

III. Methodology

Research Design……………………………………………………………………17

Target Population.............................................................................................17

Sample Size and Method.................................................................................18

Data Gathering Instrument………………………………………………………...18

Data Gathering Process…………………………………………………………...19

Statistical tool…………………………………………………………………….....19

Chapter

IV. Presentation, Analysis, and Interpretation of Data…………………..….21

Chapter

V. Summary, Findings, Conclusions, and Recommendations

Summary……………………………………………………………………….…....30

Findings............................................................................................................31

Conclusions………………………………………………………………………….32

Recommendations………………………………………………………………… 32

Bibliography………………………………………………………………………..33

Appendices.....................................................................................................36

CHAPTER I
 THE PROBLEM

Introduction

Jukaykayatbp. is named after the nickname of the owner which is Roan Kamille “Jukay”

Tolentino who also happens to have four branches in Metro Manila and 6 provincial branches,

most of which are owned branches and some of which are showrooms. Jukaykayatbp was

originally just a startup online shop, but the overwhelming customer feedback has given birth to

physical stores, as well. In fact, the demand for its products is so high that in just a few years, it

has already expanded to branches. (Rodriguez, 2016)

It’s also stated on the article written by Rodriguez (2016), Jukaykayatbp is the ultimate

clothing hub for the so-called millennials. It is considered as the house of all apparels that is

Tumblr-inspired and Pinterest-inspired that the girls of today enjoy wearing to express and flaunt

themselves. Though most of the shop’s items are for girls, there are also a few that guys may

like, too.

Jukaykayatbp is one of the famous fashion boutiques in Tanauan City. It became popular in

merchandising industry because of its product with high quality and affordable price. It was

patronized by the Tanauenos especially the students because its style of fashion is on trend.

In this study, the researchers will identify the relationship of the customer satisfaction to the

profitability of Jukaykayatbp.

Background of the Study

 According to the blog written by Wilson (2012), she stated that it is funny how fashion

trends come back around. She also enumerated 50 fashion trends around the world which are:

Dishdasha, Miniskirt, Lotus Shoes, Dr Martens, Kimono, Boubou, Clogs, Pashmina, Espadrilles,

Kilt, Pollution Mask, Dirndl, Mokot, Amish Hat, Mankini, Babouches, Uggs, Panama Hat,

Amauti, Denim, Lederhosen, Cowboy Boots, Chamanto (Poncho), Beardcap, Aloha Shirt, Fair

Isle, Wellington Boots, Beret, Mocassins, Sombrero Vueltiao, Eyeliner, Dredlocks, Gele, Jandals,

Ushanka Hat, Keffiyeh, Chullo, Chaquetilla, Conical Hat, Cork Hat, Tweed, Aviator Sunglasses,

The Bikini, Duffel Coat, Leather Jacket, Jockstrap, Boat Shoes, Sari, LBD, and Sombrero.

While on the article written by Alpad (2018), whereas 2017 saw tassel earrings,

off-shoulder tops, ripped jeans and even the so-called millennial pink, ruling catwalks

and almost every lady’s wardrobe, 2018 is poised to follow a different landscape in the

fashion department.

Taking cues from global clothing and accessory brands’ Spring/Summer 2018

showcases, style authorities Vogue and Glamour magazines have come up with

forecasts of 2018 fashion trends that followers and observers can get excited about:

ultra violet, fringe, plastics, check prints, oversized jewelry, cycling shorts, balloon

sleeves, dark denim, primary color blocking, see through materials.

According to Statista (2018), the demand for clothing in the Philippines rise as the time

passes from 2011 to 2018. It only means that many entrepreneurs build clothing businesses

because of the continuous demand of clothes in the country.

Clothing businesses in Tanauan City constantly evolve because of the increasing demand of

the consumers. Clothes became one of the basic needs of the people because of its trendiness.
 Among the apparel shops in Tanauan City, Jukaykayatbp is considered to be the leading

shop in terms of clothes in the city.

The purpose of this paper is to identify the effect of the customer satisfaction to the

profitability of Jukaykayatbp. The researchers observe that since Jukaykayatbp has become

popular in this kind of business industry, it is utmost important to know the different factors

affecting their business operation. As students of Business Management strand, the researchers

believe that with this kind of study, they may come up with an actual business experiences

helping them to become effective business owners in the future.

Statement of the Problem

 This study aims to determine the effect of the customer satisfaction to the profitability of

Jukaykayatbp. Specifically, this study aims to answer the following questions:

1. Who are the valued customers of Jukaykayatbp based on the demographic profile?

2. What are the factors that affect the satisfaction of the customers of Jukaykayatbp?

3. What is the average monthly income of Jukaykayatbp business?

4. Is there a significant relationship between customer satisfaction and the profitability of

Jukaykayatbp?

Theoretical Framework
 The Kano Model is a theory developed in the 80's by Professor Noriaki Kano and his

colleagues of Tokyo Rika University. The Kano et al (1996) model of customer satisfaction

classifies attributes based on how they are perceived by customers and their effect on customer

satisfaction. The model is based on three types of attributes viz. basic or expected attributes, (2)

performance or spoken attributes, and (3) surprise and delight attributes.

The Kano Model (Source: Kano, Seraku et al. 1996).

The performance or spoken attributes are the expressed expectations of the customer. The

basic or expected attributes are as the meaning implies the basic attributes without any major

significance of worth mentioning. The third one, the surprise and delight attributes are those,

which are beyond the customers’ expectations.

Kano Model measures satisfaction against customer perceptions of attribute performance,

grades the customer requirements and determines the levels of satisfaction. The underlying

assumption behind Kano's method is that the customer satisfaction is not always proportional to

how fully functional the product or service is or in other words, higher quality does not
necessarily lead to higher satisfaction for all product attributes or services requirements. In his

model, Kano (Kano,1984) distinguishes between three types of basic requirements, which

influence customer satisfaction. They are: (1) Must be requirements - If these requirements are

not fulfilled, the customer will be extremely dissatisfied. On the other hand, as the customer

takes these requirements for granted, their fulfilment will not increase his satisfaction; One-

dimensional Requirement- One dimensional requirements are usually explicitly demanded by the

customer - the higher the level of fulfillment, the higher the customer's satisfaction and vice

versa. (3) Attractive Requirement- These requirements are the product/service criteria which

have the greatest influence on how satisfied a customer will be with a given product. “The

additional attributes, which Kano mentions are: Indifferent attributes, Questionable attributes,

and Reverse attributes.

Conceptual Framework
 Customer Satisfaction Profitability

Hypothesis

Null Hypothesis: There is no significant relationship between customer satisfaction and

profitability.

Alternative Hypothesis: There is a significant relationship between customer satisfaction and

profitability.

Significance of the Study

 The researchers come up to this study because of their curiosity about the effect of

customer satisfaction to the profitability of a business.

This study is believed to be significant to the following people:

Jukaykayatbp Business Owner. They may use the findings of the study to gain higher

profits by satisfying their customers.

Entrepreneurs. They can make plans on improving their service and products. They will

also know the importance of customer satisfaction to higher profitability.

Local Government of Tanauan. They will be aware of the economic status produced by

Jukaykayatbp business.

Future Researchers. They may conduct another study which may contribute to the

actual insights applicable to business stand.

Scope and Limitation of the Study

 Specifically, this study focused on the effect of customer satisfaction to the profitability of

Jukaykayatbp business. This also determined the factors that affect the satisfaction of the

customers. Jukaykayatbp clients were chosen to be the respondents of the study so as to provide

appropriate results. The researchers gathered all the needed data using their self-made

questionnaires and conducted interview to Jukaykayatbp’s owner/staff.

Moreover, this study was supported by other studies and theories related to the topic.

Definition of Terms
 The following terms were used in this study and were defined operationally.

Customer satisfaction- it is a marketing term that measures how product or service

supplied by a company meet or surpass of customer expectation.

Customer– he/she is the one who gives custom or trade.

Valued Customer- he/she is the priority of the business.

Profit–it is the income of invested property without counting its increased value by any

actual rise in the market.

Quality– it is the characteristics of anything regarding as determining its value, place,

worth, rank, position, etc.

Product–it is anything produced or obtained as a result of some operation or work.

Business– it is a commercial enterprise or establishment.

Effect– it is a result or product of some cause or agency.

Entrepreneur–he/ she is the one who undertakes to start and conduct an enterprise or

business.

Respondent –he/she is the one who gives response.

CHAPTER II
 REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the studies and literature which are relevant to the study.

There are different concepts of customer satisfaction and profitability. The national and

international researchers conducted lots of studies related to customer satisfaction and

profitability. The present researchers reviewed different studies which are related in this topic.

The literature and studies provided the necessary information in conceptualizing this study.

Related Literature

Price is the amount a customer pays for a product or the sum of the values that consumers

exchange for the benefits of having or using a product or service (Bearden et al 2004). Price

means different things to different people; it is interest to lenders, COT or service charged by the

banker (lenders), premium to the insurer, fare to the transporter, honorarium to the guest lecturer

etc., (Kotler et al 2008). Studies have shown price as an important factor in purchase decision,

especially for frequently purchased products, affecting choices for store, product and brand

(Rondan, 2004).

According to Agwu and Carter (2014), among the four Ps, price is the only income

generator and it is the value attached to a product. Furthermore, price is the amount of money

charged for a product or service.

A considerable number of studies have been performed based on the proposition of the

environment of the store on a satisfaction level and purchase behavior of the consumer (Donovan

et al., 1994). The store’s décor and the music played within the store can be synced to meet the

expectations of the customers (Newman & Patel, 2004).

 According to Visser et al. (2006), retailers who want to be the shoppers’ preferred choice

must pay attention to their store’s ambiance, and exert effort to make the store stand out and

distinguishable from their competitors.

An estimation of the market area in which the store is located is a crucial strategic tool in

order to enable retailers to attract. 2007; Grewal et al. 2009) since convenience stores have the

most direct contact with customers (Kuo et al. 2002)

Mendes and Themindo (2004) define store location as the physical space occupied by a

shop, they further attribute that, it is the catchment area of a shop which experiences intense

economic and commercial activities. Store location incorporates trade area analysis and retail site

analysis. A trade area as defined by Levy, Weitz and Beitelspacher (2012) is a contiguous

geographic area that accounts for the majority of a store’s sales and customers.

Robbins (2003) defined attitudes as evaluative statements and they can be either

favorable or unfavorable-concerning objects, people, or events. A person with a high level of job

satisfaction holds positive attitudes toward the job; a person who is dissatisfied with his or her

job holds negative attitudes about the job.

Employees' behaviors are defined as various sequences of actions carried out by

employees within the organization (Hanna et al., 2004).

Kong and Jogaratnam (2007) confirmed the fact that employee personalization and

courtesy was a significant predictor of customer satisfaction.

According to Tatikonda and Weiss Kenan (2001) when company makes a product, which

functionality needs technical assistance, the reliability of that product will increase the

uniqueness of that product; this superiority will lead customer satisfaction to sale.

Product quality and product cost, as dominant factors of customer satisfaction and
loyalty, are important aspects in management theory and practice in the U.S. automobile

industry (Bresnahan, 2010; Eckert & Hughes, 2010; Zinn & Haddad, 2007).

According to Gustafsson (2005), customer satisfaction is defined as a customer's overall

evaluation of the performance of an offering to date. This overall satisfaction has a strong

positive effect on customer loyalty intention has a strong positive effect on customer loyalty

intention across a wide range of product and service categories.

Customer satisfaction is actually how customers evaluate the ongoing performance.

According to Kim Park and Jeong (2004), customer satisfaction is customers’ reaction to the

state of satisfaction, customers’ judgment of satisfaction level.Customer satisfaction is very

important in today’s business world as according to Deng et.al; (2009). The ability of a service

provider to create high degree of satisfaction is crucial for product differentiation and developing

strong relationship with customers.

Based on the study of Lotler (2003.p.36), there is general agreement that satisfaction is a

person's feelings of pleasure or disappointment resulting from comparing a product's perceived

performance in relation to the expectation of customer. Based on this review, customer

satisfaction is defined as the result of a cognitive and effective evaluation, where some

comparison standard is compared to the actual perceived performance. If the perceived

performance is less than expected, customers will be dissatisfied. Otherwise, if the perceived

expectation is met with performance, customers are in a different or neutral stage.

Furthermore, Rampersad (2001) said that information about the opinion of the customer

regarding a product or service is of essential importance, can be obtained in several ways, such

as customer surveys, phone interviews and customer panel discussions. It is also important to

measure customer orientation continuously.

 Moreover, as stated by Barsky and Nash (2003) in order customer satisfaction, it is

important to recognize and to anticipate customer's needs and to be able to satisfy them.

Enterprises which are able to rapidly understand and satisfy customer's needs, make greater

profits that those which fail to understand and satisfy those needs.

Based on the research of Parker and Mothens (2001), there are two (2) principal

interpretations of satisfaction within the literature of satisfaction as an outcome. Customers want

a meeting between their values (need and wants) and the objects of their evaluations. More

recently, renewed attention has been focused on the nature of satisfaction and emotion,

fulfillment and state.

As explained by Kotler (2003), the satisfaction judgment is related to all the experiences

made with a certain business concerning its given products, the sales process, and the after-sale

service. Whether the customer is satisfied after purchased also depends on the offers

performance in relation to the customers expectation. Customers get their expectation from past

buying experience, friends, and associates advice and marketers and competitor's information

and promises.

According to Hansemark and Albinsson (2004), satisfaction is an overall customer

attitude towards service provider, or an emotional reaction to the difference what customers

expect and what they receive, regarding the fulfillment of some need, goal or desire.

As discussed by DobKlofstrand (2009), profitability is primarily goal of all business

ventures, without profitability the business will not survive in the long run.

Additionally, by Ross (1997), consist of two words "profit" and "profitability". It is

necessary to differentiate between the term profit and profitability at this point. The term profit,

from accounting point of view, is arrived at by deducting from total revenue of an enterprise all
amount expended in earning that income while the term "profitability" is defined as the ability of

a gives investment to earn a return from its use.

Related Studies

The study of Yeunget, al. (2002) states that the delivering customer satisfaction is at the

heart of modern marketing theory. There is growing research evidence of the beneficial effects of

customer satisfaction in terms of both behavioral outcomes such as loyalty, and performance

outcomes such as profit.

Ganiya (2017) stated that customer satisfaction is strongly related and has potential to

enhance customers loyalty towards the business.

As cited in the study of Boatemad et.al (2012), when customers are satisfied they make

repeat purchase becomes, create positive word-of-mouth, refer others, and will later transfer to

profitability.

According to Gashtiet (2011), the quality of service and quality of product promotes

customer satisfaction.

As stated by Schanek et.al (2015), the performance of a company is affected by the price

of the product and its technological design, as these factors, are together with customer

satisfaction, an essential part of product quality.

Synthesis

Ma’am sabi niyo po ituturo niyo poi to sa amin.

Gap of the study

Though the researchers have reviewed different literature and studies, they fail to gather
information about their study locally. They just found international literature and studies which

they can use in strengthening their study.

Furthermore, the gathered information from journals, magazines and references books

really helped to clarify things on how the customer’s satisfaction affect the business profitability.
 CHAPTER III

METHODOLOGY

This chapter discusses about the research design, target population, sampling size

method, data gathering collection and statistical treatment of data.

Research Design

This study used both descriptive and causal relationship design. The researchers used

these two research designs because of its fitness in accumulating information regarding the effect

of customer satisfaction to the profitability of Jukaykayatbp. A questionnaire was designed to

generate responses from the customers whereas an interview was conducted to obtain

information from Jukaykayatbp staff and owner.

Target Population

Based from an interview given by Jukaykayatbp staff, their store accompanies 75

customers a day. From 2,200 to 2,250 customers, 5 % of the total monthly customers was

considered, taking 113 as respondents of the study.

Sample Size and Method

The strata involved in the study were the customers. A sample size of one hundred

thirteen respondents was considered in this research. The breakdown of the sample was 113

customers. This is chosen based on the client’s availability and time constraints.
Data Gathering Instrument

A survey questionnaire was used to gather data which was validated by Mrs. Lenita

Margate research-expert. The questionnaire was divided into two parts.

In order to collect the information needed in the study, the researchers prepare survey

questionnaires and then distributed to the customers of Jukaykayatbp. Interview-questions were

also prepared to acquire the experiences of Jukaykayatbp owner and staff.

Questionnaire was assessed or rated using the Likert Scale below.

Numerical Value Mean Range Verbal Interpretation

5 4.21 – 5.00 Always
4 3.41 – 4.20 Often
3 2.61 – 3.40 Sometimes
2 1.81 – 2.60 Seldom
1 1.00 – 1.80 Never

The Likert Scale was used to interpret the computed weighted mean and composite mean

of the factors affecting the customers in buying the products of Jukaykayatbp business.

This data-gathering was completed in 5 minutes per respondent.

Data Gathering Process

Permit to conduct research was secured by the student-researchers. They distributed the

questionnaires to the available customers and conducted an interview with the Jukaykayatbp

owner and staff.

The data gathering was conducted from September 2017. This questionnaire was checked

by Mrs. Lenita Margate to ensure the validity of responses.

Statistical Tool

After retrieving all the accomplished questionnaires from the respondents, each item was

obtained and tabulated.

The statistical tools that the researcher used in this study are:

Frequency - the frequency (or absolute frequency) of an event is the number of times the event

occurred in an experiment or study.

Percentage - one of the most frequent ways to represent statistics is by

percentage. Percent simply means "per hundred" and the symbol used to express percentage is

%. One percent (or 1%) is one hundredth of the total or whole and is therefore calculated by

dividing the total or whole number by 100

Weighted Mean-  a kind of average. Instead of each data point contributing equally to the

final mean, some data points contribute more “weight” than others. If all the weights are equal,

then the weighted mean equals the arithmetic mean (the regular “average” you're used to).

Pearson Correlation Coefficient -  pearson correlation coefficient (PCC, pronounced

/ˈpɪərsən/), also referred to as the Pearson's r, Pearson product-moment correlation coefficient

(PPMCC) or bivariate correlation, is a measure of the linear correlation between two variables X

and Y.

CHAPTER IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

 The data collected by the use of various research instruments were presented and

discussed comprehensively in this chapter. The input contains profile of the respondents and the

factors affecting the satisfaction of the customers of Jukaykayatbp. The result of the interview

that the researchers conducted to the owner of Jukaykayatbp is also presented in this chapter.

1. Profile of the Respondents

The research study focused on age, gender, employment, civil status, and monthly

income. The variables were used to identify the factors affecting the satisfaction of the customers

of Jukaykayatbp.

1.1 Age

Table 4.1.1

Profile of the Respondents in terms of Age

Age Frequency Percentage

15 - 17 111 98%
18 - Above 2 2%
Total 113 100%
The table above shows the age range of the respondents. Most of the respondents

belonged to the age group of 15 to 17 years old having a frequency of 111 and a percentage of

98. The respondents between 18 and above got a frequency of 2 with a percentage of 2.

Since the majority of the respondents were in the age group of 15 to 17 years old,

therefore, it can be concluded that most of the customers of Jukaykay were teenagers. This was

also because of the fact that the products of Jukaykay were based on what's hit nowadays.

However, the respondents belonged to 18 years old and above were probably considered to be

updated in the trends this time.

 1.2. Gender

Table 4.1.2

Profile of the Respondents in terms of Gender

Gender Frequency Percentage

Male 3 3%
Female 110 97%
Total 113 100%

The number of female respondents which has a percentage of 97℅ is greater than the

number of the male respondents which has 3℅ with the total of 110 for female and 3 for male.

Based on the collected questionnaires, almost all of the population consists of female

respondents while the rest consists of male respondents. This only shows that even though

Jukaykay only sell clothes for women, there are still men who buy their products.

1.3 Employment

Table 4.1.3

Profile of the Respondents in terms of Employment

Employment Frequency Percentage

Student 112 99%
Employed 1 1%
Total 113 100%
 In consideration with the employment of the respondents, it can be stated that most of the

respondents is unemployed. Only one of the respondents is employed. Therefore, it can be said

that most of the respondents were students based on what the table above.

1.4 Civil status

Table 4.1.4

Profile of the Respondents in terms of Civil Status

Civil Status Frequency Percentage

Single 112 99%
Married 1 1%
Total 113 100%

The illustration above only shows that only one of the respondents is married, it is also

concluded that this married respondents is also the only respondent that is employed since most

of the respondents are students.

1.5 Monthly Income/ Allowance

Table 4.1.5

Profile of the Respondents in terms of Monthly Income/Allowance

Monthly Income/Allowance Frequency Percentage

1,000 – 2,000 66 58%
2,000 – 3,000 18 16%
3,000 – Above 28 25%
5,000 – Below - -
5,000 – 10,000 - -
10,000 – 15,000 - -
15,000 – Above 1 1%
 Total 113 100%

The table illustrates that the highest frequency of 66 with a percentage of 58 is

represented by the monthly income/allowance of Php.1, 000- Php.2, 000. This was followed by a

representation of the respondent's income/ allowance having a frequency of 28 with a percentage

of 25 with a monthly income of Php.3, 000 and above. -The monthly income of the

respondents which ranges from Php.2, 000 – Php.3, 000 got a frequency of 18 and a percentage

of 16. The last that got the lowest monthly income/ allowance ranges from Php.15, 000 and

above got a frequency of one and a percentage of one. While the monthly income/allowance of

the respondents which ranges from Php.5, 000 and below, Php.5, 000 to Php.10, 000, and

Php.10, 000 to Php.15, 000 got no frequency and percentage.

The results revealed that majority of the respondents had a monthly income/allowance

ranging from Php.1, 000 to Php.2, 000. This is probably due to the fact that majority of the

respondents are just common students.

2. Factors affecting the customers to buy the product of Jukaykay

The following tables present the data gathered through the questionnaire accomplished by the

respondents. The data presented in here concerns factors affecting the customers to buy the

product of Jukaykayatbp.

2.1. Price

Table 4.2.1

Price Weighted Mean Interpretation

a. Affordable 4.04 Often
 Composite Mean 4.04 Often

Table above illustrates price as a factor in choosing a product. Based on the results,

respondents consider price in buying clothes. Respondents often see Jukaykayatbp clothes with

affordable price with a weighted mean of 4.04. It is related to the statement by Rondan (2004)

that pricing is an important aspect in purchase decision.

Table 4.2.2

Location Weighted Mean Interpretation

a. Accessible 3.87 Often
b. Has enough space for 3.53 Often

customers
Composite Mean 3.7 Often

As shown from the preceding table when it comes to the location, the respondents

answered often that the location of Jukaykayatbp “has enough space for its customers” and that it

is accessible with a weighted mean of 3.7 also in “accessible” with a weighted mean of 3.53. It is

proven that location is also a factor that customers consider in buying clothes with a composite

mean of 3.7 with a verbal interpretation of often. Therefore, Jukaykayatbp’s location is

considered as a catchment area of the shop as what have been said by Mendes and Themindo

(2004).

2.3. Ambiance

Table 4.2.3
 Ambiance Weighted Mean Interpretation
a. Welcoming 3.80 Often
b. Relaxing 3.85 Often
c. Attractive 4.26 Always
Composite Mean 3.97 Often
Table 4.2.3 reveals the respondents found out that in terms of the ambiance,

Jukaykayatbp has a “welcoming” atmosphere on its shop with a weighted mean of 3.80,

interpreted as often. Meanwhile the customers consider Jukaykayatbp with a relaxing setting

attaining a weighted mean of 3.85. The ambiance of Jukaykayatbp is ponder “attractive”, getting

the highest weighted mean of 4.26 which is verbally interpreted as always. This means

Jukaykayatbp was able to have store ambiance which stand out and distinguishable from their

competitors as what have been stated by Visser et al. (2006).

2.4. Product's Characteristics

Table 4.2.4

Product’s Characteristics Frequency Interpretation

a. High Quality 4.00 Often
b. Fashionable 4.39 Always
c. Comfortable to wear 4.29 Always
d. On Trend 4.42 Always
e. Seasonal 4.07 Often
Composite Mean 4.23 Always

It can be gleaned from the table above the assessment of the respondents to the

characteristics of the product of Jukaykayatbp. Respondents evaluates “high quality” as often

with a weighted mean of 4.00. “Fashionable” was assessed as always same as with “comfortable

to wear”, and “on trend” with a weighted mean of 4.39, 4.29, and 4.42. Based on the composite

mean of 4.23, attitude of employees is considered as one of the factors that the customers regard

in buying a product. This is in relate to the words said by Bresnahan, (2010), Eckert & Hughes,
(2010), and Zinn & Haddad, (2007) that product quality and product cost, as dominant factors of

customer satisfaction and loyalty, are important aspects in management theory and practice in the

U.S. automobile industry.

2.5. Attitude of employees

Table 4.2.5

Attitude of Employees Weighted Mean Interpretation

a. Respectful 3.81 Often
b. Friendly 3.7 Often
c. Reliable 3.64 Often
d. Positive 3.78 Often
e. Humble 3.8 Often
Composite Mean 3.7 Often

It is illustrated from the table above the assessment of the respondents regarding

to the aspects under the attitude of employees. All of the aspects were interpreted as often with a

weighted mean of: “friendly” got 3.7, “reliable” got 3.64, “positive” got 3.78, “humble” got 3.8,

and the highest aspect which got 3.81. By the composite mean of 3.7, this is also considered one

of the factors that the customers considered when buying a product. In relate with this is the

statement stated by Kong and Jogaratnam (2007), that employee personalization and courtesy

was a significant predictor of customer satisfaction.

Table 4.2.6

Summary table of the factors affecting the customers to buy the product of Jukaykayatbp

Factors affecting the Composite Interpretation

customers to buy the product Mean

of Jukaykay
Price of the Product 4.04 Often
 Location 3.7 Often
Ambiance 3.97 Often
Product’s Characteristics 4.23 Always
Attitude of Employees 3.7 Often
Grand Composite Mean 3.93 Often

As presented in the Table 4.2.6 all the factors are often affected the customers to buy the

products of Jukaykay with a grand composite mean of 3.95.

3. Profitability of Jukaykay

On the interview that the researchers conducted on Jukaykay, they found out that the

estimated monthly income of Jukaykay is amounting to 75,000 pesos less its expenses.

Moreover, the researchers also found out that Jukaykay doesn't have an expected monthly

income. As long as they were able to sold out their inventory monthly. This is related to the

statements specified by Ross (1997), the term profit, from accounting point of view, is arrived at

by deducting from total revenue of an enterprise all amount expended in earning that income

while the term "profitability" is defined as the ability of a gives investment to earn a return from

its use.

4. Relationship between customer satisfaction and profitability of Jukaykay

The following variables affecting the customers to buy the product of Jukaykay are 3.95

grand composite mean for customer's satisfaction in Jukaykay and its estimated profitability of

100,000 per month less its expenses.

Table 4.4.1

Customer Satisfaction X 3.93

 Profitability Y 75,000

After a thorough computation, with the use of PCC formula, the researchers found out

that there is 1.00 perfect correlation. Therefore, the hypothesis is accepted. The effect of

customer satisfaction of Jukaykayatbp is significantly related to its profitability. This what also

been proven in the study of Boatemad et.al (2012), that when customers are satisfied they make

repeat purchase becomes, create positive word-of-mouth, refer others, and will later transfer to

profitability.

CHAPTER V

SUMMARY, FINDINGS, CONCLUSION, AND RECOMMENDATION

This chapter presents the summary of the findings revealed in the study, the conclusion

drawn, and the recommendation offered by the researchers based from the results of the analysis

and interpretation of the gathered data.

Summary
 This study aimed to identify the effect of customer satisfaction to the profitability of

Jukaykayatbp. It sought to find out the profile of the respondents in terms of age, gender, civil

status, employment, and monthly income. Furthermore, it is pursued to find the factors affecting

the customers to buy the products of Jukaykayatbp in terms of price of the product, location,

ambiance, product’s characteristics, and attitude of the employees. The study tested if there is a

significant relationship between customer satisfaction and profitability of Jukaykayatbp.

This study made use of descriptive and causal relationship research design. This study

involves 113 respondents of customers of Jukaykay in Tanauan City, Batangas. Survey

questionnaire was used as the main instrument of the study in gathering data. An interview was

also conducted to Jukaykayatbp owner/staff to gather the information needed in the study. The

result from the questionnaire was tallied, interpreted and analyzed through the statistical tool

such as frequency and percentage method, weighted mean and pearson correlation coefficient.

Findings

After the data were gathered, analyzed, tabulated and statistically treated the following

findings were formulated.

1. Profile of the Respondents

Based on the result of the study, most of the respondents are customers

ofJukaykay are students and female. Their ages ranges between 15 to 17 years
 old.

2. Factors affecting the customers to buy the product of Jukaykay

Based on the table above, when it comes to price, the respondents according to the

weighted mean and composite mean of 4.04 were often that the products of Jukaykay are

affordable.

As shown from the preceding table when it comes to the location, the respondents

answered often that the location of Jukaykay has enough space for its customers and that

it is accessible with a composite mean of 3.7.

Table 4.2.3 shows that if the ambiance is attractive, the respondents relatively

answered always with a weighted mean of 4.26. It is shown in the table with regards to

the factors affecting the customers to buy the product of Jukaykay in terms of ambiance,

there's one thing that got the highest weighted interpretation that is the word "attractive",

while the other two things got a weighted mean of 3.80 and 3.85 with a verbal

interpretation of often.

In table 4.2.4, there are three characteristics that got the highest weighted mean of

4.39 and 4.42 with a verbal interpretation of always the "fashionable", "comfortable to

wear" and "on trend". While the other two, the "high quality" and "seasonal" only got a

higher weighted mean of 4 and 4.07 with a verbal interpretation of often.

As shown in Table 4.2.5, all of the things under the attitude of employees got a

weighted interpretation of often as well it composite mean which is 3.8 interpreted as

 often.

Table 4.2.6

Summary table of the factors affecting the customers to buy the product of Jukaykay

Factors affecting the Composite Interpretation

customers to buy the product Mean

of Jukaykay
Price of the Product 4.04 Often
Location 3.7 Often
Ambiance 3.97 Often
Product’s Characteristics 4.23 Always
Attitude of Employees 3.7 Often
Grand Composite Mean 3.93 Often

As presented in the Table 4.2.6 all the factors are often affected the customers to

buy the products of Jukaykay with a grand composite mean of 3.95.

As what have been discussed on Chapter 4, the grand composite means of the

factors affecting the customers to buy the product of Jukaykay is 3.93 which verbally

interpreted as often.

3. Profitability of Jukaykay

On the interview that the researchers conducted on Jukaykay, they found out that

the estimated monthly income of Jukaykay is amounting to 75,000 pesos less its

expenses. Moreover, the researchers also found out that Jukaykay doesn't have an

expected monthly income. As lobf as they were able to sold out their inventory monthly.
 4. Relationship between customer satisfaction and profitability of Jukaykay

By the used of statistical tools, the researchers were able to identify their x and y

variable. They were able to solve the correlation between customer satisfaction and

profitability of Jukaykay which was 1.00 perfect correlation by the use of pearson

formula.

The following variables affecting the customers to buy the product of Jukaykay

are 3.95 grand composite mean for customer's satisfaction in Jukaykay and its estimated

profitability of 100,000 per month less its expenses.

Table 4.4.1

Customer Satisfaction X 3.93

Profitability Y 75,000

After a thorough computation, with the use of PCC formula, the researchers found

out that there is 1.00 perfect correlation. Therefore, the hypothesis is accepted. The effect

of customer satisfaction of Jukaykay is significantly related to its profitability.

Conclusions

Based on the findings, the following conclusions were drawn:

(1) The female students are the valued customers of Jukaykayatbp based on the

demographic profile.

(2) Characteristics of clothes, among the other factors, becomes the primary

consideration of customers in choosing a product.

 (3) Based on the interview done by the researchers, 75,000.00 is the estimated monthly

net income of Jukaykayatbp.

(4) There is a significant relationship between customer satisfaction and the profitability

of Jukaykayatbp.

Recommendations

Based on the given conclusion, the following recommendations were drawn:

(1) Jukaykayatbp should develop more the attitude of their employees so that their

customers will be more pleased.

(2) Jukaykayatbp should maintain their customer satisfactory rate high for the stability of

their profitability.

(3) Jukaykayatbp may try to innovate their products as well maintain its characteristics so

that their customers loyalty will stick to them.

(4) That this study should not limit only the Jukaykayatbp business, hence future student-

researchers should include other variables.

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APPENDICES