PDF CD Lava Leomarc 1

LAGUNA COLLEGE OF BUSINESS AND ARTS
SCHOOL OF GRADUATE STUDIES
CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR

MALL IN SANTA CRUZ, LAGUNA
________________________
A Master’s Thesis
Presented to the
Faculty of the School of Graduate Studies
Laguna College of Business and Arts
________________________
In Partial Fulfillment
of the Requirements for the Degree
MASTER IN BUSINESS ADMINISTRATION
________________________
By
LEOMARC A. LAVA
MAY 2020
ii
APPROVAL SHEET
This thesis hereto entitled:
CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR MALL

IN SANTA CRUZ, LAGUNA
Prepared and submitted by LEOMARC A. LAVA, in partial fulfillment of the

requirements for the degree, Master in Business Administration has been examined and
recommended for acceptance and approval.
MARCELINA DL. PEREZ, PhD (Cand)

Adviser
Approved by the Committee on Final Oral Examination with a grade of _________.
ERNILDA L. DECENA, PhD

Chairman
EDNA M. MANAIG, EdD DINA DELA CRUZ, PhD

Member Member
Accepted in partial fulfillment of the requirements for the degree of

Master in Business Administration.
ERNILDA L. DECENA, PhD

Dean, School of Graduate Studies
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Certificate of Quantitative Data Treatment
This certifies that the Master’s thesis entitled,
CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR MALL IN
SANTA CRUZ, LAGUNA conducted by LEOMARC A. LAVA, whose research design
was quantitative, had been subjected to Quantitative Data Treatment utilizing Statistical
Package for Social Sciences (SPSS) at Laguna College of Business and Arts by the
undersigned.
RAMIR L. LARINO, DPA

Quantitative Data Analyst
iv
Certificate of Grammar Editing
This certifies that the Master’s thesis entitled,
CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR MALL IN
SANTA CRUZ, LAGUNA conducted by LEOMARC A. LAVA, whose research design
was quantitative, had been subjected to Grammar Editing at Laguna College of Business
and Arts by the undersigned.
JEROME CARLO ALIGUI

Grammarian
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ACKNOWLEDGMENT
It is the researcher’s great honor and privilege to express his gratitude to all those
people who extended their hands, hearts and minds in making this research possible.
To his dearest adviser, Ms. Marcelina DL. Perez, PhD (Cand), for giving him
brilliant comments, suggestions, and ideas that enhanced the quality of his research study.
His deepest gratitude for her undying support and effort in helping him develop his
research paper to such a humble yet meaningful masterpiece.
To his dearest validators, Dr. Ramir Larino, Mrs. Rozalle H. Palacol, MBA, and
Mrs. Marissa L. Dimarucot, MBA, for sharing their expertise in validating survey
instrument that ensured its reliability and validity for data gathering.
To his friends and classmates who were there to help, to give inspiration, and to bring
him hope.
Most of all, to his beloved parents, Mr. Rotileo and Julie Lava, for their
unconditional love, support, and understanding. Also, to Gina Tandang for the wisdom
and financial support which truly inspired him to strive harder to finish this research
study.
He would also like to extend his sincerest recognition to the panelists, Dr. Dina
Dela Cruz, Dr.Edna Manaig, and Dr. Erlinda Decena, for their positive criticisms and
generous considerations that made the study more credible and valuable.
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Above all of these, to the God Almighty for giving him enlightenment, strength,
inspiration, intelligence, and encourage to finish this research study.
LAL
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ABSTRACT
Title :
CUSTOMER SATISFACTION AND PATRONAGE
OF SUNSTAR MALL IN SANTA CRUZ, LAGUNA
Author : LEOMARC A. LAVA
Degree : Master in Business Administration
School : Laguna College of Business and Arts
Academic Year : 2019-2020
Adviser : Marcelina DL. Perez, PhD (Cand)
No. of Pages : 74
Keywords : Customer Satisfaction, Customer patronage, Service
Delivery
____________________________________________________________________________
Shopping malls are operating in highly competitive retail environment which requires
effective management in order to satisfy customers and achieve customers’ loyalty. The primary
purpose of this paper is to determine the satisfaction and loyalty among shopping mall customers
to Sunstar Mall. Thus, this research aims to analyze and to find out which shopping mall
attributes increase customer satisfaction. There are two shopping mall attributes. First, the
physical attribute which includes location, tenant mix, and mall image, and the other is service
delivery attribute.
The study established that the location of Sunstar Mall is a major determinant of its
customers’ satisfaction. The prospective tenants of the mall have considerable influence on the
number of customers’ visits and thus in the improvement resident tenants’ sales. The study
further established that all the aspects of tenant mix including presence of complementary
tenants, competing tenants, anchor tenants, and tenant placement significantly affect the
customer features that are positively related to the mall customers’ satisfaction. The mall layout
and its general image hold equal importance in customers’ satisfaction evaluation. Also, the
study further established that services like availability of parking area and good customer service
are important attributes which customers consider when choosing particular shopping mall.
The general conclusion to this study is that customers are satisfied in a shopping mall
which is strategically located, has variety of stores, has adequate and good customer service,
and has an impressive mall image. The presence of all these attributes, or even some of them,
has the potential of attracting many customers to patronize a particular shopping mall like
Sunstar Mall. The study concludes that with a better understanding of customer’s satisfaction in
mall attributes and their selection criteria and methodologies, Sunstar Mall developers can better
understand which among the attributes and information will best help them in improving mall’s
attractiveness, customers’ satisfaction, and customers’ patronage.
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TABLE OF CONTENTS
PAGE
Title Page i
Approval Sheet ii
Certificate of Quantitative Data Treatment iii
Certificate of Grammar Editing iv
Acknowledgment v
Abstract vii
Table of Contents viii
List of Figures x
List of Tables xi
List of Appendices xii
CHAPTER
1 THE PROBLEM AND ITS BACKGROUND
Introduction 1
Theoretical Framework 3
Conceptual Framework 6
Statement of the Problem 8
Hypothesis 8
Scope and Delimitations 8
Significance of the Study 9
Definition of Terms 10
2 REVIEW OF RELATED LITERATURE
Review of Related Literature and Studies 11
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Synthesis 18
3 METHODOLOGY
Research Design 20
Population and Sampling 21
Respondents of the Study 21
Research Instrument 21
Validation of Instrument 22
Ethical Considerations 22
Data Gathering Procedure 22
Treatment of Quantitative Data 23
4 PRESENTATION, ANALYSIS, AND
INTERPRETATION OF DATA 26
5 SUMMARY OF FINDINGS, CONCLUSIONS
AND RECOMMENDATIONS 39
REFERENCES 47
APPENDICES 51
CURRICULUM VITAE 73
LIST OF FIGURES
FIGURE PAGE
1 Research Paradigm 7
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LIST OF TABLES
TABLE PAGE
1.1.1 Level of Customer Satisfaction of Sunstar Mall

in Terms of Physical Attributes as to Location 26
in Terms of Physical Attributes as to Tenant Mix 28
in Terms of Physical Attributes as to Mall Image 29
1.2 Level of Customer Satisfaction of Sunstar Mall
in Terms of Service Delivery 31
2 Level of customers Patronage of Sunstar Mall 32
3 Significant Relationship between Customer
Satisfaction and Customer Mall Patronage 34
4 Proposed Mall Development Plan of Sunstar Mall
Matrix 37
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LIST OF APPENDICES
APPENDIX PAGE
A Validation Letters 51
B Research Questionnaire 54
C Sunstar Mall Photos 58
D Sunstar Mall Vicinity Map 58
E Sunstar Mall Floor Layout 61
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
A shopping mall is a group of retail and other commercial establishments that is
planned, developed, owned, and managed as a single property, typically with on-site
parking provided. The mall's size and orientation are generally determined by the market
characteristics of the trade area served by the centre (International Council of Shopping
Centres –ICSC, 2014).According to the history of shopping mall, as stated by Jacobs
(1986), the development of shopping malls started in the United States and later spread
to other countries in the world. According to Kowinski (1985), shopping malls first
came in to existence in California in the 1920s where supermarkets would anchor and
serve as attraction for a strip of smaller stores.
It was during the American period when shopping malls were first introduced in
the Philippines with the construction of the Crystal Arcade in Escolta, Manila in 1932.
It was the first enclosed air-conditioned establishment with its interior having glass-
covered display windows.
At present, malls are a part of the modern metropolitan landscape with many of
them situated in almost every city and in Manila’s major highways.
Now, the success of every business organization like shopping malls depends on
the customer’s satisfaction. Whenever a business is about to start, customers always

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come first and then the profit. Those companies that succeed to fully satisfy the
customers will remain on top. Today, companies know that customer satisfaction is the
key component to succeed in business and plays a vital role to expand the market value.
In general, customers are those people who buy goods and patronage services from the
markets or businesses that meet their needs and wants. Customers purchase products
and services to meet their expectations in terms of money. Therefore, companies should
match their pricing with the quality of products or service to attract customers and
maintain a long-term affiliation.
The organization should make sure that they are providing full service, equivalent
to their monetary value. This increases the number of customers and holds the long-term
relationship between customers and the organization. Also, existing customers will help
attract new customers by providing or sharing good information about the products and
services of the companies. Satisfaction means to feel contentment after what the person
desired or wanted. It is difficult to know whether customers are satisfied with the
availability of product or services. So, giving satisfaction to customers is not an easy
task, for this, different factors should be taken into consideration.
Measuring customer satisfaction is a key performance indicator within business
and is often part of the balanced scorecard. The main aim of measuring customer
satisfaction is to make prompt decision for the continuous improvement of the business
transaction. Attracting a new customer as a source to build on existing relationship,

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customer satisfaction measurement is essential to be measured. Similarly, to retain the
current customer base, measuring customer satisfaction is equally important.
This study is about customer satisfaction on physical attributes, service delivery,
and customer patronage of Sunstar Mall in Santa Cruz, Laguna. Sunstar Mall is a pioneer
mall in the 4th district of Laguna with the mission of giving unforgettable experience,
relaxing moments, and fun family days to their customers and visions to be a benchmark
regional mall in the 4th district of Laguna. As time passes by, more competitors are
mushrooming within the area and due to the huge investment, which have already taken
place and the impact that malls have on the local economy, this research paper will seek
to identify the key drivers or determinants on customer satisfaction and patronage in
Sunstar Mall.
The aim and objective of this thesis is to examine the relationship between
customer satisfaction on physical attributes and service delivery of Sunstar Mall and
customer patronage and to analyze the elements that lead shopping malls to a long-term
success. This emphasizes measuring the customer satisfaction and loyalty in order to
bring improvement in the business organization.
Theoretical Framework
Theoretical framework is a collection of interrelated concept and ideas that hold
or support a theory of study subject. One of the most notable characteristics of the retail
sector is that it is highly location sensitive. This section visits two of these theoretical
frameworks that directly relate the retail location. The two theories are the Central Place
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Theory and the Congener Conglomeration Theory. The Central place theory principles
are closely linked with shopping mall location and the importance of tenant mix in a
mall especially the presence of anchor tenant which influence mall preference by tenant.
Congener Conglomeration Theory is concerned with tenant mix which is one of the
objectives of this research.
Central Place Theory
German geographer Walter Christaller is considered as the father of the central
place theory which he advanced in 1933 when he began to realize the economic
relationships between cities and their hinterlands (areas farther away).
This theory argues that it is practicable to map retail center by taking the
surrounding geography into account. Christaller noted that the demand is not uniform
but is influenced by the distance from the city. Therefore, as distance increases, the
demand also decreases because of the need for consumers to travel to the center for
goods. According to Losch (1940), this phenomenon is called spatial demand cone. The
majority of shopping emphasized this by noting that decreasing shopping probabilities
radiate outward from shopping center (Huff, 1964).
Central place theory advances an idea of hierarchical connection between cities
depending on the rank size. Larger cities are connected closely to cities of smaller size
so that the growth of smaller cites is affected by the activities in the larger cities. Dicken
and Lloyd (1990) noted that the extent of services provided in the cities will depend on
their sizes so that the larger central city would have more services compared to a smaller
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city. This type of hierarchical order for cities is also found in retail markets. A similar
order exists in the mall as clusters of small retail establishments within the mall are
attracted by the existence of a large anchor tenant. Applebaum et al. (1974) divided the
trading areas into a separate hierarchical circle demand and distinguished between
primary area where the demand is very high, a secondary area where demand is
relatively lower, and a peripheral ring where consumers would prefer to shop
somewhere else.
Christaller also identified threshold as an important aspect of the theory. He noted
that there is a minimum number of people required to continue sustenance of a central
place business or activity. This brought about classification of goods in to high order
and low order goods. He identified low-order goods as those items that must be replaced
frequently such as food and other routine household items. Because these items are
purchased regularly, small businesses in small towns can survive because people will
buy frequently at the closer location instead of going into city.
High order goods however are specialized items such as fine jewelry, automobiles,
furniture, and household appliances that are brought less frequently. Since they require
a large threshold and people do not purchase them regularly, many businesses selling
these items cannot survive in areas where population is small. Therefore, they often
locate in large cities that can serve a large population in the surrounding hinterland.
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Congener Conglomeration Theory
Early research by Hotelling (1929) discovered that customers are attracted by
existence of completing stores selling similar items in the same shopping center. He
further stated that this explained why there are so many store similar concepts existing
same time in a shopping center. He referred to this as Congener Conglomeration. The
Congener Conglomeration theory focuses on customer needs. The theory advocates for
more options of goods and services to the consumers in order to provide effective retail
choices and reduce the risks to the consumer on missing out possible great offers when
they do shopping in a shopping place. The theory argues that consumer can compare
and select goods while avoiding missed information on the market because there is more
than one similar offer available in to choose from. People who have been attracted to a
shopping center by one or few store will possibly pay attention to other retailers, so the
turnover of the retailers will possibly be increased (Yi, 2007). It is claimed that the
theory has built up the basis explaining the effectiveness of anchor stores in the shopping
center and also explained shopping center will always try to have a full offering because
the different retailers support each other and also make the shopping center successful
together.
Conceptual Framework
For purposes of this research, the conceptual framework is the precise description
of the phenomenon under study with the visual representation of the variables
understudy (Mugenda 2008). According to Miles & Huberman (1994), a conceptual

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framework is an illustrative write up that uses graphical or narrative explanation to
describe the main areas of study, the factors, ideas and variables, and the attendant
relationship between them. The framework presents the relationship between the
dependent and independent variables. In this study, the independent variables are the
consumer satisfaction in terms of the Physical attributes and Service delivery of Sunstar
Mall. A dependent variable is the one whose outcome depends on the manipulation of
the independent variables. For this research, the dependent variable is the level of
Consumer patronage of Sunstar Mall.
Independent Variables Dependent Variable
Customer Satisfaction in:

Customer
 Physical Attribute
Level of
 Service Delivery
Patronage
Figure 1. Research Paradigm
Based from the above cited theoretical framework, the proponent will
conceptualize his research as shown in Figure 1.
Figure 1 shows the paradigm of the study. The independent variables are the
Consumer satisfaction in Physical Attributes and Service Delivery of Sunstar Mall. The
dependent variable is the Customer Level of patronage of Sunstar Mall.

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Statement of the Problem
The main thrust of the study is to determine the following specifically, the study
will answer the following questions:
1. What is the level of customer satisfaction of Sunstar Mall in terms of:
1.1. Physical Attributes
1.2. Service delivery?
2. What is the level of customers’ patronage of Sunstar Mall?
3. Is there a significant relationship between customer satisfaction and customer mall
patronage?
4. Based on the result of the study, what mall development plan can be proposed?
Hypothesis
The study posited the following hypothesis:
1. There is no significant relationship between customer satisfaction and customer
mall patronage in terms of physical attributes.
2. There is no significant relationship between customer satisfaction and customer
mall patronage in terms of service delivery.
Scope and Delimitations
The concern of the study is focused on the factors that affect the customer
satisfaction and patronage of shopping mall.
The respondents of the study are the mall goers of Sunstar Mall in Santa Cruz,
Laguna.
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The study is limited to the said mall.
Significance of the Study
The researcher believes that the following would benefit from the current study:
Mall Owners. The result of the study will help them to be aware in ensuring a
successful mall performance in this competitive retail environment.
Mall Management. This study will provide mall managers with the information
about optimal tenant mix and other factors that will ensure maximum shopper visit in
their malls.
Tenants. This research will offer mall tenants an understanding of quality of
service for their customers and development that will help them gain a competitive
advantage over other competing shopping malls.
Customers. The result of the study will help them which attributes will satisfy
them in choosing shopping mall.
Researcher. This study will provide the researcher in depth knowledge and
information on what are the factors that affect customer satisfaction and patronage in
choosing shopping mall must take into consideration on how they will meet customer
expectation by providing the best attributes.
Future researchers. The paper may serve as a guide and basis for future
researcher in conducting similar study about customer preference in choosing shopping
malls.
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Definition of Terms
The following terms are used in the study as they are operationally defined here
under:
Ambiance. It refers to the products and services available in a shopping mall, the
shops and their arrangement and organization.
Anchor tenants. It is a store with reputable brand which can generate high
pedestrian flow on its own and therefore generates trade for smaller tenants.
Customer Patronage. It is a measure of how likely customers are to repeat
business for more than once.
Customer Satisfaction. It is a measurement that determines how happy customers
are with the company’s products, services, and capabilities.
Mall Image. It refers to the way in which the mall is perceived in the minds of the
tenants and shoppers who patronize it.
Physical Attributes. It is a quality or characteristics of a person, place, or thing.
Service Delivery. It is a set of principles, standards, policies, and constraints
which are used to guide the design, development, deployment, operation, and retirement
of service delivered by a service provider.

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Chapter 2
REVIEW OF RELATED LITERATURE
This chapter present a review of relevant literature on the customer satisfaction and
customer patronage. The literature is guided by the objectives of the study. The concept
of satisfaction is discussed along with mall physical attributes such location, tenant mix,
and mall image, and the service attribute.
Customer Satisfaction
Customer satisfaction has been one of the top tools for a successful business.
Customer satisfaction is defined as an overall evaluation based on the total purchase and
consumption experience with the good or service overtime (Fornel, Johnson, Anderson,
Cha & Bryant, 1996). With marketing, customer satisfaction also comes along with it
which means it ascertains the expectation of the customer on how the goods and services
are being facilitated by the companies. Actionable information on how to make
customers further satisfied is therefore, a crucial outcome (Oliver, 1999).
At a glance, customer satisfaction is a crucial component of a business strategy as
well as customer retention and product repurchase. To maximize the customer
satisfaction, companies should sell ideas and methods after the completion with all the
necessary documents. Customer satisfaction is a barometer that predicts the future
customer behaviour (Hill Roche & Allen, 2007).

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However, the product and its features, functions, reliability, sales activity and
customer support are the most important topics required to meet or exceed the satisfaction
of the customers. Satisfied customers usually rebound and buy more. Besides buying
more, they also work as a network to reach other potential customers by sharing
experiences (Hague & Hague, 2016). The value of keeping a customer is only one-tenth
of winning a new one. Therefore, when the organization wins a customer it should
continue to build up a good relationship with the client. Providing the quality of goods
and services in the 20th century is not only to satisfy the customers but also to have a safe
position. Indeed, this has benefited the customers significantly on consuming qualitative
products (Rebekah & Sharyn, 2004).
Customer Satisfaction is dynamic and relative. Only the idea “customer-centric”
can help companies improve satisfaction and keep customer truly. Conversely, if
competitors improve customer satisfaction, then it may lose corporate customers. While
improving customer satisfaction, customer expectations should be noticed. Service
quality and value for money have a direct positive impact on customer satisfaction.
Employee satisfaction is equally important before achieving the customer satisfaction. If
the employees have a positive influence, then they can play a big role to increase
customer satisfaction level. Satisfaction is a dynamic, moving target that may evolve
overtime, influenced by a variety of factors. Particularly, when product usage or the
service experience takes place overtime, satisfaction may be highly variable depending
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on which point in the usage experience cycle one is focusing. (Lovelock, C & Wright,
L., 2007, 86-87).
Customer Satisfaction is influenced by specific product or service features and
perception of quality. Satisfaction is also influenced by customer’s emotional response,
their attributions nether perception of equity (Zeithal & Bitner. 2003, 87-89). Increased
customer satisfaction can provide company benefit like customer loyalty, extending the
life cycle of a customer expanding the life of merchandise that customer purchase, and
increases customer positive word of mouth communication. When the customer is
satisfied with the product or service of the company, it can make the customer to purchase
frequently and to recommend products or service to potential customers. It is possible for
a business organization to grow up in case the company ignores or disagree the needs of
customers (Tao, 2014).
Measuring customer satisfaction is a key performance indicator within business and
is often part of the balanced scorecard. The main aim of measuring customer satisfaction
is to make prompt decision for the continuous improvement of the business transaction.
In attracting a new customer as a source to build on existing relationship, customer
satisfaction measurement is essential to be measured. Similarly, to retain the current
customer base, measuring customer satisfaction is equally important. Actionable
information on how to make customer more satisfied is, therefore a crucial outcome.
Unless the organization focuses on their improvement efforts in the right area the
organization cannot maintain the competition level of business in a market. To recognize

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the needs of the customer is to satisfy the customer and to meet the need of the customer,
a measurement of customer satisfaction is what matters the organization. (Hill, Roche &
Allen 2007).
The increasing interest in customer satisfaction is closely related to the quality
revolution that started in the early 1980s. The TQM researchers realized that the quality
improvement of products and services could not rely on the internal metrics and standards
of the business organizations, but it had also to be combined with customer information
and feedback. Moreover, the quality should be manifested in ways that are relevant and
perceptible to the total set of customers (Grigoroudis and Siskos, 2010).
Nowadays, organization has started to track the satisfaction level so that they can
improve the service. In addition, it has a great impact on understanding the issues that
cause the satisfaction and dissatisfaction with the service experience. In this way, if the
organization is able to understand why and how the customers are satisfied, then they
can focus on its resources. (Hill, Roch & Allen, 2007).
Negotiation with the customers will enable them to understand more deeply the
results infeasible requirements by having mutual cooperation, as well as the trust between
customer and suppliers, and suggestions from the customer’s contentment. Additionally,
when it comes to customer satisfaction, all the factors should be considered such as the
price of the product, the quality of the product, what varieties of the products are available
in the store, the speed of service, pricing, complaints or problems, trust in employees, the
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closeness of the relationship with contacts in, types of other services needed, and
recognizing the client’s mind. (National Business Research Institute, 2017).
Customer Loyalty (Patronage)
Oliver (1999) defined loyalty as “a deeply held commitment to rebuild and
patronize a preferred product or service in the future despite situational influences and
marketing efforts having the potential to cause switching behaviours. “Customer loyalty
is viewed as the strength of the relationship between an individual’s relative attitude and
re-patronage. Although customer satisfaction is a crucial part of a business, satisfaction
alone cannot take a business to a top level. Customer satisfaction produces a positive
financial result especially in a regular purchase. Today’s unforgiving market where
creating and maintaining customer loyalty is more complex than it is used to be in a past
year. This is because of technological breakthrough and widespread of the internet uses.
Loyalty building requires the company to focus on the value of its product and services
and to show that it is interested to fulfil the desire or build the relationship with customers
(Griffin, 2002).
Thomas and Tobe (2013) emphasized that “loyalty is more profitable.” The
expenses to gain a new customer is much more than retaining existing one. Loyal
customer will encourage others to buy from you and think more than twice before
changing their mind to buy other services. Customer loyalty is not gained by an accident.
They are constructed through the sourcing and design decisions. Designing for customer
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loyalty requires customer-centered approaches that recognize the want and interest of
service receiver. Customer loyalty is built over time across multiple transactions.
A relationship with customer is equally important in customer loyalty and this
requires that company work in broader context that extends beyond itself, as no company
can be world class at everything (McDonald & Keen, 2000). Gremler and Brown (1999)
divided customer loyalty into three different categories that include behaviour loyalty,
intentional loyalty and emotional loyalty. Behaviour loyalty is repeating purchasing
behaviour, while intentional loyalty is the possible buying intention. Emotional loyalty,
however, is achieved when a customer feels that a brand corresponds with their value,
ideas, and passion.
Customer loyalty is another important factor in customer satisfaction. The impact
of the satisfaction in loyalty has been the most popular subject of the marketing theory.
Therefore, several studies have proved that satisfaction and loyalty have the direct
connection between one another. As satisfied customers are loyal and dissatisfied
customers are a vendor (Heskett, 2011).
Finding the loyal customer is not accessible even if the customers seem to be
satisfied with the product and the services. In fact, the behaviour and attitude of the
customers towards the particular goods and services matters the most. If the behaviour
of the customers is positive to the service holder, then those customers are said to be as
a loyal customer (Abdullah, 2012). There are two types of customer loyalty based on
behavioural and emotional loyalty on the goods and services. Behavioural loyalty refers
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to frequent shopping in a particular retailer and emotional loyalty refers to the customer
concern towards certain retailers on the basis of past buying experience and attitude. In
this both behavioural and emotional loyalty model, increased satisfaction should increase
customer loyalty. When customers are not satisfied, customer have the opinion to express
the complaints going to the competitor. But the study has shown 60-80% of the customers
are satisfied and very satisfied on the survey just prior to the defection. Therefore, there
should also be other factors besides satisfaction that have a certain impact on customer
loyalty (Reichheld & Schefter, 2000).
At the time of 1980, product durability and service quality used to be evaluated by
customer loyalty. But there has been a dramatic changing in the late 1980 and 1990 when
the needs and wants of the customers were identified by the retailers in the market.
Nowadays, in this modern era, the companies have changed this concept toward the
initial target customers by manufacturing ordinary product benefits in order to persuade
customer’s satisfaction and loyalty (Abdullah, 2012). Service quality, product quality,
price strategy, and store attributes are the four major variables that influence customer
loyalty. Service is one of the most complex factors which do not exist before they are
consumed. In order to develop the service management, it is important to understand
what customers are really looking for and what the customers evaluate. Customers expect
the quality of service through retailers, so, the service marketers have to assess how
customers perceive the quality of the “service feature” implied by the perceived service
quality framework.
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Synthesis
This section summarizes the key finding of the literature review in general terms.
This chapter has discussed customers’ satisfaction and customer patronage.
Based on Coyne (1986), there are two critical thresholds affecting the line between
customer satisfaction and customer loyalty. On the high side, when satisfaction reaches
a certain level, loyalty increases dramatically. At the same time satisfaction declined to
a certain point, loyalty dropped equally dramatically (Oliva, Oliver & MaMillan, 1992).
The customer is link to a business success. Customer satisfaction is a key element for
every organization wishing to increase customer loyalty and create a better business
achievement. The role of satisfaction in loyalty largely indicates that the former is a
determinant of the latter (Dick & Basu, 1994).
Satisfaction is an attitude whereas loyalty is described as a behaviour. Chen and
Wang (2009) suggested a view of customer satisfaction as a kind of consistency
evaluation between prior expectation and perceived service performance. Accordingly,
the positive evaluation of the product or service that the customer acquires is a major
reason to continue a relationship with a company’s service or products and an important
pillar that upholds loyalty. Satisfied customers are thus more likely to repurchase, lower
their price sensitivity, engage in positive word of mouth recommendation, and become
loyal customer (Chen & Wang, 2009).
Customer satisfaction and loyalty represents a top priority of the company’s success
and profit. Satisfaction does not automatically lead to loyalty it needs a step by step
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process. Steps are described as customers going through different phases such as
awareness, exploration, expansion, commitment, and dissolution. (Arantol, 2000).
Customer loyalty can be considered to be a by-product of customer satisfaction. The
satisfaction of business customer leads to customer loyalty (Fornel, 1992). Customer
loyalty will increase significantly when satisfaction accomplishes at a certain level and
at the same time customer loyalty will decline automatically if the satisfaction level drops
to a certain point. Moreover, highly satisfied customers are tending to be more loyal than
the customers who are merely satisfied. Overall, it is clear that there is a significant
positive relationship between customer satisfaction and customer loyalty. Customer
loyalty leads to an increase in both sales and profitability (Chi, 2005).
Research Gaps
Over the last decade, there has been substantial research on the customer
satisfaction of shopping malls in overseas countries. However, the research in the area of
shopping mall is very limited. In addition, most researches conducted on shopping mall
satisfaction focused on the effect of one attribute rather than a combination of several
attributes. This is the research gap that this study seeks to fill. The study tried to establish
the critical dimension in evaluating customer satisfaction as to patronize and to be loyal
to Sunstar Mall.
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Chapter 3
METHODOLOGY
This chapter looked at the data collection and analysis method that was used in
carrying out the fieldwork of the thesis. The methods of data collection, analysis and the
tools that were used in this exercise were clearly laid out. Other aspects of the research
methodology that looked at in this chapter include the research design, population and
sampling techniques, data collection methods, research procedure and data analysis
method.
Research Design
According to Cooper and Schindler (2011), a research design is a blueprint for
fulfilling objectives and answering questions. It refers to the overall strategy that will be
used to integrate the different components of the study in coherent and logical way, in
order to effectively address the research problem, this study adopted a descriptive survey
design. According to Creswell and Clark (2007), a descriptive survey research design is
used when seeking to gather information, summarize, present, and interpret if for the
purpose of clarification. Descriptive survey research was used to obtain information
concerning the current status of the phenomena and to describe “what exists” with respect
to variables or conditions in a situation. The design was therefore chosen as the study
seeks personal views, opinions, attitudes, and perceptions about the determinants that
influence the customer satisfaction and patronage.

21
Population and Sampling
A population is defined as a complete set of individual, cases or objects with some
common observable characteristics, (Mugenda & Mugenda, 2003). The population for
this study were the mall goers/customers of Sunstar Mall. The population were
comprised of 400 mall goers. The number of mall goers was provided by the Sunstar
mall.
Respondents of the Study
The respondents of the study were the customers of Sunstar Mall in Santa Cruz,
Laguna.
The number of respondents was chosen through random sampling, while the
sampling design used in selecting customer is convenient. According to Kumar (2005),
in convenience sampling, the researcher has ease of access to the sample population
wherein the researcher simply gathered data from people nearby. This method of
sampling allows the researcher to gather data even when facing the obstacles.
Research Instrument
The research instrument that used was the modified survey questionnaire which
was the primary data-gathering instrument of the study and different reading materials
such as books, related studies such as theses and dissertation, and internet websites. The
survey questionnaire was constructed for the purpose that it will give significant
information about behaviour and experience of the customers. All information that were
22
gathered was used to analyze what area must be improved to provide a better mall
experience and quality service.
Validation of Instrument
The questionnaire was presented to the adviser and was validated by the
researcher’s statistician for comments and suggestions. The main content of the
questionnaire was to gather needed information relating to the customer satisfaction and
patronage of Sunstar Mall. After the questionnaire was finalized, it was reproduced and
was distributed to the 400 customers of Sunstar Mall.
Ethical Consideration
Ethical issues denote conduct that guides the researcher’s behaviour in the process
of carrying out the research (Mugenda and Mugenda, 2009). The ethical concerns arouse
from being in possession of information from the mall and the respondents were
addressed by maintaining high level confidentiality of the information volunteered in
addition to using the information solely for the purpose of this research study. In order to
avoid any doubt among the respondents as to what will be the purpose of the information
they will avail will be used for, the researcher explained to the respondents the purpose
of the research. All the personal details were limited to general information.
Data Gathering Procedure
After the approval of the research topic to work on, the researcher used all available
reading materials and references in the construction of the research instrument.

23
Data collection procedures refer to the process of data gathering after the researcher
has identified the type of information required for the research. For the purpose of this
research, data were collected using questionnaires. A set of questionnaires that were
carefully designed and was given in exactly the same form to a group of people in order
to gather data about some topic which was of interest to the researcher.
The questionnaires were designed to have two sections. The first section was
designed to analyze the general information about the respondent so as to help determine
the respondent’s capacity in answering the questions in regards to the objectives of the
study. The second section seek to establish respondent’s opinions in respect to the
objectives of the study as to how the factors have satisfies them in terms of physical
attributes and service delivery of Sunstar Mall.
The researcher also gathered secondary data by reading and writing related
literature from different reading materials, related studies, and internet website.
Moreover, the researcher visited different schools and malls to collect recent information
about the study.
Treatment of Quantitative Data
Raw data that will be obtained from the field will be difficult to interpret and should
be cleaned, coded, and key punched into computer for purpose of analysis. Data that
obtained in the field were analyzed using mean scores and standard deviations to
establish the relationship between the various independent variables and the dependent
variables. The SPSS (Statistical package for social sciences) and Microsoft excel were
24
used to analyze the data. Data presentation was in form of descriptive statistics such as
percentages and tables. Statements of the facts that were found out were used to further
explain the finding to the research.
1. To answer SOP numbers 1 and 2, the weighted mean was employed and the formula
was:
2. To answer SOP number 3, the GOODMAN and KRUSKAL’S GAMMA
CORRELLATION was used and the formula was

25
Numerical Verbal Description
Description
4 3.50-4.00 Very Adequate Value Item Very Adequate Value Item
– Very satisfied – Very Highly Patronize
3 2.50-3.49 Adequate Value Item – Adequate Value Item –
Satisfied Highly Patronize
2 1.50-2.49 Inadequate Value Item – Inadequate Value Item –
Quite Satisfied Moderately Patronize
1 1.00-1.49 Not Available Value Item Not Available Value Item
– Not Satisfied – Slightly Patronize
In deciding on whether to accept or reject the null hypothesis using the probability
@ α = 0.05, the following rules are applied:
a. If gamma coefficient has a probability of less than α, then there is significant
relationship and the null hypothesis is rejected; and
b. If gamma coefficient has a probability of equal to or greater than α, then there is
no significant relationship and the null hypothesis is accepted.
Range Verbal Interpretation
0 No Correlation
± 0.01 to ± 0.20 Slight Correlation
± 0.21 to ± 0.40 Small Correlation
± 0.41 to ± 0.60 Moderate Correlation
± 0.61 to ± 0.80 High Correlation
± 0.81 to ± 0.99 Very High Correlation
±1 Perfect Correlation
26
Chapter 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter deals with the presentation, analysis and interpretation of the data
gathered.
The main thrust of the study is to determine the following specifically, the study will
answer the following questions:
1. What is the level of customer satisfaction of Sunstar Mall in terms of:
1.1. Physical Attributes; and
1.2. Service delivery?
Table 1.1.1
Level of Customer Satisfaction of Sunstar Mall in terms of
Physical Attributes as to Location
Verbal
Indicators Mean
Interpretation
1 Location of being accessible. 3.75 VAVI – VS
2 Accessibility of this mall by public transport. 3.84 VAVI – VS
3 The time it would take me to arrive at the mall and get back. 3.49 AVI – S
4 Major road greatly influenced my choice to visit here. 3.71 VAVI – VS
5 I like the visibility of the mall. 3.60 VAVI – VS
6 The general location of this mall greatly influences my 3.68 VAVI – VS
decision to always visit in this mall.
Average Mean 3.68 VAVI - VS
Legend:
4 3.50-4.00 Very Adequate Value Item Very Satisfied
3 2.50-3.49 Adequate Value Item Satisfied
2 1.50-2.49 Inadequate Value Item Quite Satisfied
1 1.00-1.49 Not Available Value Item Not Satisfied
Table 1.1.1. shows the level of customer satisfaction of Sunstar Mall in terms of
physical attributes as to location.

27
It appeared in here that the respondents were saying that indicator number 2 stating
that “Accessibility of this mall by public transport” was very satisfactory and attained
the highest mean of 3.84 while they were saying that indicator number 3 which states
that “The time it would take me to arrive at the mall and get back” was satisfactory
which achieved the lowest mean of 3.49.
The computed average mean was 3.68, this means to say that the level of customer
satisfaction of Sunstar Mall in terms of physical attributes as to location is very
satisfactory.
It implied that it is important to understand the demographic of the area where you
are located and the neighboring areas surrounding your location. It’s not just where the
mall is located, but neighboring localities and accessibility along with the positioning
of the mall that draws traffic and make it popular.
According to the study of Bloch et al. (1994), consumers prefer to go to shopping
mall near to their residence or work place to avoid travelling long distance. Since
shopping activities carried out normally during peak hours, that is, in the evening or
weekend, consumers prefer to visit nearby shopping malls and thus avoid the issues
associated with negative experience such as traffic congestion or crime and security.
28
Table 1.1.2
Level of Customer Satisfaction of Sunstar Mall in Terms of
Physical Attributes as to Tenant Mix
Verbal
Indicators Mean
Interpretation
1 The presence of complementary stores affected my decision to 3.60 VAVI – VS
visit in this mall.
2 The presence of Cinema, Fast foods and Department store has 3.69 VAVI – VS
positively influenced my decision to patronize this mall.
3 The presence of shops selling similar products has drawn more 3.46 AVI – S
customers to this mall.
4 The placement of shops with in the mall helped bring human 3.30 AVI – S
traffic to this mall.
5 The general mixes of shops in this mall have a positive impact 3.41 AVI – S
on drawing more customers.
Average Mean 3.49 AVI - S
Legend:
Table 1.1.2 shows the level of customer satisfaction of Sunstar Mall in terms of
physical attributes as to tenant mix. It can be noticed that the respondents assessed
indicator number 2 stating that “The presence of Cinema, Fast foods and Department
store has positively influenced my decision to patronize this mall” as very satisfactory
having obtained the highest mean of 3.69, on the other hand, the same set of respondents
were amenable that indicator number 4 which states that “The placement of shops with
in the mall helped bring human traffic to this mall” as satisfactory whose mean of 3.30
was the lowest.
Subsequently, the calculated average mean was 3.49; this simply means that the
level of customer satisfaction of Sunstar Mall in terms of physical attributes as to tenant

29
mix is satisfactory.
It implied that shopping mall customers visit shopping malls that appear to have a
variety of stores, products and services that are congruent to their needs and preferences.
According to the study of Kahn and Wansink (2004), high perceived variety leads to
greater consumption. In a study by Ubeja (2013), it was found that customers were
willing to pay any amount but they want greater variety of products under one roof.
Table 1.1.3
Physical Attributes as to Mall Image
Verbal
Indicators Mean
Interpretation
1 I got attracted in this mall because of the publicity it has 3.50 VAVI – VS
received in the social media.
2 I like the human traffic flow within the mall. 3.37 AVI – S
3 I feel that the design and layout of the mall promote the 3.58 VAVI – VS
performance of the business.
4 The high standards of mall and the cleanliness of the mall 3.35 AVI – S
played a big part in my decision to visit this mall.
5 The general image of the mall including entertainment, 3.66 VAVI - VS
atmosphere, and special event is important for the
performance of the business.
Legend:
Table 1.1.3 shows the level of customer satisfaction of Sunstar Mall in terms of
physical attributes as to mall image. It can be glanced in the above table that the
respondents were claiming that indicator number 5 which states that “The general image
of the mall including entertainment, atmosphere, special event is important for the
30
performance of the business” was very satisfactory yielding the highest mean of 3.66
while it was found out that indicator number 4 stating that “The high standards of mall
and the cleanliness of the mall played a big part in my decision to visit this mall” which
has been assessed by the same group of respondents is satisfactory and achieved the
lowest mean of 3.35.
Consequently, the attained value of the average mean was 3.49, this means to say
that the level of customer satisfaction of Sunstar Mall in terms of physical attributes as
to mall image is satisfactory.
The findings of the study implied that the shopping mall image has a positive
relation to customers’ satisfaction. It also implied that a good mall environment is very
favorable to enhance the shopping mall’s image to differential shopping mall from
others.
According to the study of Cowel (1993), the architecture and external design and
the surrounding environment of a shopping mall influence consumers’ assessment of
the thresholds quality and standard of service they can expect there. The structure of a
mall projects and external presence and authority that includes high visibility,
appropriate signage and cladding so as to convey the status of the mall and the type and
segment of consumer targeted (Guy, 1994). In the views of Sigh and Dash (2012), due
to the intense competition, shopping malls have to present a unique and favorable
image. This differentiating image can be created by combining various features at one
place.
31
Good mall’s environment has been considered as a competitive tool for shopping
mall owners, as it might give positive impact to mall facilities and visuals to increase
the customers satisfaction (Pullman & Gross, 2004; Kwortnik & Ross, 2007).
Table 1.2
Physical Attributes as to Service Delivery
Verbal
Indicators Mean
Interpretation
1 Availability of parking is a major factor in my choice to visit 3.50 VAVI – VS
this mall.
2 I choose this mall because I felt secured here. 3.57 VAVI – VS
3 Convenient mall hours are an attractive feature of this mall that 3.49 AVI – S
influenced my decision to visit this mall.
4 Good service to the customer attracts me to return in this mall. 3.26 AVI – S
5 I felt that the good service attributes that provided is a positive 3.46 AVI – S
attributes to choose this mall.
Legend:
Table 1.2 shows the level of customer satisfaction of Sunstar Mall in terms of
service delivery. Indicator number 2 stating that “I choose this mall because I felt
secured here” which has been assessed by the involved respondents as very satisfactory
having earned the highest mean of 3.57 while they said that indicator number 4 which
states that “Good service to the customer attracts me to return in this mall” was
satisfactory and got the lowest mean of 3.26.

32
Meanwhile, the acquired value of the average mean was 3.46; this means that the
level of customer satisfaction of Sunstar Mall in terms of service delivery is satisfactory.
The figure implied that there were no any unsatisfied respondents at all. It clarified that
Sunstar Mall is doing great in good service. It is widely held that a customer-oriented
mall is delivering exceptional service quality and creating higher customer satisfaction.
According to the study of Rebekah & Sharyn (2004), providing the quality of goods
and services in the 20th century is not only to satisfy the customers but also to have a
safe position. Indeed, this has benefited the customers significantly on consuming
qualitative products. If customers do not feel safe and comfortable, they would hesitate
to spend their time and money in any type of service setting (Kajalo & Lindblom, 2010).
2. What is the level of customers’ patronage of Sunstar Mall?
Table 2
Level of Customers Patronage of Sunstar Mall
Verbal
Indicators Mean
Interpretation
1 How would you rate your level of overall satisfaction 3.42 AVI - HP
with Sunstar Mall?
2 How likely are you to visit again & services from this 3.62 VAVI – VHP
mall?
3 How likely are you not to switch to another Mall? 3.28 AVI – HP
4 Is the mall commendable to other people? 3.35 AVI – HP
5 I believe that this mall deserves my loyalty 3.38 AVI – HP
Average Mean 3.41 AVI – HP
Legend:
4 3.50-4.00 Very Adequate Value Item Very Highly Patronized
3 2.50-3.49 Adequate Value Item Highly Patronized
2 1.50-2.49 Inadequate Value Item Moderately Patronized
1 1.00-1.49 Not Available Value Item Slightly Patronized
33
Table 2 discloses the level of customers’ patronage of Sunstar Mall. It appeared
that indicator number 2 stating that “How likely are you to visit again and services from
this mall” has been assessed by the respondents as very highly patronized and was able
to gain the highest mean of 3.62. Subsequently, indicator number 3 stating that “How
likely are you not to switch to another Mall” was assessed by the same sector of
respondents as highly patronized whose mean of 3.28 was the lowest.
The computed average mean was 3.41, this simply means that the level of
customers’ patronage of Sunstar Mall is highly patronized.
According to the study of Heskett (2011), satisfied customers are loyal and
dissatisfied customers are a vendor. Customer loyalty will increase significantly when
satisfaction accomplishes at a certain level and at the same time customer loyalty will
decline automatically if the satisfaction level drops to a certain point. Moreover, highly
satisfied customers are tending to be more loyal than the customers who are merely
satisfied. Overall, it is clear that there is a significant positive relationship between
customer satisfaction and customer loyalty. Customer loyalty leads to an increase in
both sales and profitability (Chi, 2005).

34
3. Is there a significant relationship between customer satisfaction and customer
mall patronage?
Table 3
Significant Relationship between Customer Satisfaction and
Customer Mall Patronage
P-Value
Gamma- Verbal
Variables Remarks Decision
Value Interpretation Computed Tabular
With
Patronage Very High Accept
0.999 0.000 0.050 Significant
versus Location Correlation Ho
Relationship
Patronage With
Small Accept
versus Tenant 0.362 0.000 0.050 Significant
Correlation Ho
Mix Relationship
Patronage With
Small Accept
versus Mall 0.330 0.000 0.050 Significant
Correlation Ho
Image Relationship
Patronage With
High Accept
versus Service 0.777 0.014 0.050 Significant
Correlation Ho
Delivery Relationship
Table 3. Shows the significant relationship between customer satisfaction and customer
mall patronage. In terms of Patronage versus Location, it has a very high correlation (0.999) and
since the amount of p-value of 0.000 was lower than the p-value of 0.050, it means that the two
paired variables were significantly related to each other, hence, and the null hypothesis is hereby
rejected.
According to the study conducted by Lekshmi et al., (2012), location that determines the
success of a shopping mall has long academic history. They point out that location is a basic
feature of attractiveness considered in shopping mall selection by both retailers and customers.
The findings of this study support the study conducted by Gabler (2007) which suggested that
strategic location is one of the main success factors of shopping malls as it can lead to strong
35
competitive advantage and that the shopping mall that is conveniently accessible for the
catchment population will be preferred by both retailers and consumers.
In terms of Patronage versus Tenant Mix, it has a small correlation (0.362) and since the
amount of p-value of 0.000 was lower than the p-value of 0.050 which means that the two paired
variables were significantly related to each other and the null hypothesis is hereby rejected.
According to the study conducted by Yuo et al., (2004), the appropriate mix of product
categories increases the revenue of the shopping mall hence attract and retain tenants and more
customers and in reverse case, decreases the revenue and limits the number of tenant. Bruwer
(1997) who observed that a successful tenant mix is not only vital to the landlord and
management of shopping mall, but also to tenants and their customers. The findings further give
weight to the definition of tenant mix as described by Greenspan (1987) as the combination of
homogeneous and heterogeneous retail agglomerations that encourage better relationship
between customers and retail activities and run successfully as individual business.
In terms of Patronage versus Mall Image, it has a small correlation (0.330) and since the
amount of p-value of 0.000 was lower than the p-value of 0.050 which means that the two paired
variables were significantly related to each other and the null hypothesis is hereby rejected.
According to the study conducted by Kotler (1973) about the effect of atmosphere on the
purchase decision, atmosphere enhances the purchase probability of the customers and could be
experienced by the senses that is, sight, sound, scent and touch. In a study of Chinese consumers,
Zhou and Zhuang (2003) found that while deciding upon the place to shop from consumers
emphasis highest importance to the atmosphere, location was given less and price the least
important. The findings support the studies conducted by Grewal, Baker, Levy and Voss (2003)
36
which suggested that mall image attributes are predictors of shopping mall choice and Kim and
Jin (2001) who perceived mall image attribute as a possible significant factor in drawing
customers to a shopping place.
In terms of Patronage versus Service Delivery, it has a high correlation (0.777) and since
the amount of p-value of 0.014 was lower than the p-value of 0.050 which means that the two
paired variables were significantly related to each other and the null hypothesis is hereby
rejected.
According to the study conducted by Tao (2014), when the customer is satisfied with the
product or service of the company, it can make the customer to purchase frequently and to
recommend products or service to potential customers. It is possible for a business organization
to grow up in case the company ignores or disagree the needs of customers. Customer loyalty is
another important factor in customer satisfaction. The impact of the satisfaction in loyalty has
been the most popular subject in study of the marketing theory. Therefore, several studies have
proved that satisfaction and loyalty have the direct connection between one another. As satisfied
customers are loyal and dissatisfied customers are a vendor (Heskett 2011).
4. Based on the result of the study, what mall development plan can be proposed?
Mall owners, faced with shifting consumer satisfaction and patronage, regularly confront
the need to remodel and redevelop. Successful redevelopment covers a spectrum from spruce
ups, new links to surrounding neighborhoods and new approaches to transportation.

37
Table 4
Proposed Mall Development Plan of Sunstar Mall Matrix
Areas of Objectives Persons Time Development Budget Success
Concern Involved Frame Plan/ Allocation Indicator
Activities
Tenant To Leasing Year .Find the Transportation 90 to 95 %
Mix maximize Department Round right tenant to Allowance/ more
tenant Activity fit within the Food innovative
occupancy retail cluster Allowance &
and have a and the strategically
variety of customer types of
stores profile for the stores that
mall consumers
will respond
to.
Mall To maintain Maintenance Every Trained Lecturer fee 90 to 95%
Image cleanliness and Quarter personnel and Professional Better and
and good housekeepin provide high fee / Quality clean
shopping g quality cleaning shopping
environment Department cleaning Materials environment
materials
Service To give All Every Create a Lecturer fee, 90 to 95%
Delivery customer Departments Quarter customer Professional Better self-
quality Tenant service fee / Seminar confidence
service from personnel strategy such Fee, Food and develop
the staff and and Staff as creating allowance good
personnel customer customer
service relations
vision,
assessing the
customer
needs and
training on
service skills
The study can lead us to propose to have a new store starting over at the same site
and to ensure optimal tenant mix and placement when letting out mall spaces. Also,
based on the study, it can be proposed to renovate spaces needed to be adaptable.
Prioritize designs with customers’ flows and flexibility in mind.

38
Moreover, it can be proposed to have a team of cleaning personnel that is highly
trained and experienced in delivering the best possible cleaning services. Also, the use
of quality cleaning materials can be proposed.
Customer experience, satisfaction, and patronage are essentials which every mall
must provide. Based on the result of the study, it also leads us to propose to have a goal
that should be responsive and efficient help desk. Added to this is a service representative
to monitor quality of customer service and their interaction with the customers.
39
Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This concluding chapter summarizes the major findings and conclusions. It also
discusses empirical implications of the study and makes recommendations for further
research.
The study has utilized a cross-sectional survey using self-administered structured
questionnaire and quantitative data analysis technique in examining the overall
satisfaction of customers and patronage. Four hundred (400) customer respondents were
selected using convenience sampling scheme. It was designed to analyze the general
information about the respondent and seek to establish respondent’s opinions in respect
to the objectives of the study as to how the factors have satisfied them in terms of physical
attributes and service delivery of Sunstar Mall. The said variables were treated using
weighted mean and Goodman and Kruskal’s Gamma Correlation through SPSS.
The aim and objective of this thesis is to examine the relationship between customer
satisfaction on physical attributes and service delivery of Sunstar Mall and customer
patronage, and to analyze the elements that lead shopping to success in a long term.
Summary of Findings
Based on the data gathered and after careful and thorough analysis and
investigation, the following are the findings of the study in summarized form.
40
1. Level of Sunstar Mall Customer Satisfaction in Terms of Physical Attributes
1.1.1. As to location, the study established that location is a major determinant of
mall customer satisfaction as it is considered to have considerable influence on the
number of customers to visit the mall. The study further established that all the
aspects of location including accessibility, public transport, travel time, presence of
major road, and visibility have a huge influence on customer satisfaction. However,
the study revealed that accessibility of this mall by public transport is considered
the most influential factor in customer satisfaction with a mean of 3.84. Further, the
study established that the time it would take a person to arrive at the mall and get
back with the mean of 3.49 is a critical factor that influences the satisfaction of a
customer. The study established that the level of customer satisfaction of Sunstar
Mall in terms of physical attributes as to location is very satisfactory with a mean
of 3.68.
1.1.2. As to tenant mix, the study established that all the aspects of tenant mix
including presence of complementary tenants, anchor tenants like cinema, fast food
chains, and department stores, competing tenants, and the manner of tenant
placement significantly have an adequate value item on customers on a shopping
mall with an average mean score of 3.49. This implied that the customers are very
satisfied with Sunstar Mall as of having the presence of cinema, fast food chains,
and department store and has positively influenced customers decision to patronize
the mall with a mean of 3.69. Similarly, the study found that the customers are very
41
satisfied and favored in the presence of complementary shops as it draw more
shoppers in the mall with a mean of 3.60. This finding re-affirms the view that the
presence of shops selling similar products creates a specific satisfaction for the
customer with 3.46 mean score and positions it in relation to competing shopping
malls. The study also found that with 3.41 mean, customers are satisfied and has a
positive impact in drawing more customers with the general mix of shops within
the mall. The study also found out with 3.30 mean score that customers consider
and prefer clustering of similar types of business in order to draw shoppers where
they are concentrated.
1.1.3 The study observed that the shopping mall image features positively
satisfies customer with the average mean of 3.49 that is adequate value item. The
study further established that customers are very satisfied and have an equal
importance with the general image of the mall including entertainment, mall
atmosphere, and special events having 3.66 mean and the layout of the mall with
3.58 mean score. The study further revealed that costumers consider prominence of
the mall; they are very satisfied in its publicity through the social media having a
mean score of 3.50. The study further established that the layout configuration and
human traffic flow of the mall allows the customer to be satisfied with 3.37 mean
score, as it allows distribution of foot traffic across the mall. High standard and
cleanliness of the mall played a big part in satisfying customer where it has a 3.35
42
mean score showing that customers are satisfied and bring more customers in to the
shopping mall.
1.2. The study established in terms of service delivery the secured feeling in
Sunstar Mall having very adequate value item as to customer satisfaction with a
mean score of 3.57. Also, customers considered the availability of the parking area
as an important attribute of the mall having a mean score of 3.50 showing that the
customers are very satisfied with the parking spaces the mall offers. The study
further found out that customers are satisfied with the mall hours of the mall with
3.49 mean score as well as the good service attributes with 3.46 mean score. The
study subsequently revealed that customers are satisfied with the good service to
the customers having 3.26 mean score with adequate value item.
2. Level of Customers’ Patronage of Sunstar Mall
The study established that the customers very highly patronize Sunstar Mall,
including its services, with the overall impression to revisit the mall with a mean score
of 3.62. This underscores the importance of the overall satisfaction of customers with
3.42 mean score. Factors like showing to have an adequate value item, together with the
loyalty of the customers to the mall, being commendable to other people, and likely not
to switch to other competitors have mean scores of 3.38, 3.35 and 3.28 consecutively
which show that customers are highly patronizing the mall.

43
3. Significant Relationship between Customer Satisfaction and Customer Mall
Patronage
The research tried to understand the significant relationship of the customer
satisfaction and patronage of Sunstar Mall. Mall attributes were classified under factors
such as physical attributes which include location, tenant mix, and mall image and the
service delivery attributes. Location of the mall has been found to play an important role
in customers’ satisfaction and patronage towards shopping malls with a very high
correlation of 0.999 gamma value. The study found out that customer’s satisfaction, with
tenant mix, greatly influences the significant relationship with the customers’ patronage
with small correlation of 0.362 gamma value. The study found out that there is a positive
relationship between mall patronage and customer satisfaction in mall image that has a
small correlation of 0.330 gamma value. The findings suggest that mall image is an
important driver of customers’ satisfaction and patronage of Sunstar Mall. The study
also found out that service delivery has a significant relationship with the customer
patronage of Sunstar Mall having a high correlation of 0.777 gamma value.
Conclusion
This study sought to map out the customer satisfaction and patronage towards
Sunstar Mall. In order to do so, physical attributes which include, location, tenant mix,
mall image, and service delivery attributes were identified and formed as part of the
respondents’ preference evaluation consideration.

44
1. Level of Sunstar Mall Customer Satisfaction in Terms of Physical Attributes
1.1.1. As to Location. The general conclusion of this study is that customers are
satisfied with Sunstar Mall’s strategic location. It is considered as the top
satisfying factor for unlike the other attributes which can relatively be
easy to change, this points out that customers consider location as a long-
term decision in customers’ satisfaction as it is the most significant factor
in gauging customers’ patronage to Sunstar Mall.
1.1.2. As to Tenant Mix. In general, it was concluded that the various tenant mix
attributes of Sunstar Mall have a positive impact on the customer
satisfaction. An effective tenant mix will attract and satisfy customer
traffic into the shopping mall. Having variety of stores is an attribute
that has the potential of attracting many customers to patronize
Sunstar Mall.
1.1.3. As to Mall Image. The study further concluded that Sunstar Mall image
perceive a possible significant factor in drawing and satisfying customers
to a shopping mall and therefore of great interest to the customers of the
mall. It confirmed that shopping mall image features are positively
related to mall preference by the customers.
1.2. As to service delivery with a better understanding of the customers’
satisfaction on mall service delivery, this study subsequently concluded
that every shopping mall needs to provide better security and sufficient
45
parking space in order to attract customers. The study further found that,
even though the various elements of service delivery are considered when
satisfying customer, security is most important.
2. Level of Customers’ Patronage of Sunstar Mall
The study concluded that shopping mall developers better understand all the
attributes and information that will best help them in improving mall
attractiveness and Sunstar Mall customers’ patronage.
3. Significant Relationship between Customer Satisfaction and Customer Mall
Patronage
The study concluded that Sunstar Mall management’s attention in order to
create customer loyalty should be on customer satisfaction, of which
service delivery is an important antecedent.
Service delivery is a very important component to create customer
satisfaction. Therefore, shopping mall industry needs to improve its
service quality in order to create high level of customer satisfaction and
eventually gain customers’ loyalty.
Recommendation
The study concentrated on customer satisfaction on physical attributes and service
delivery of Sunstar Mall as well as its customer’s patronage, and upon assessment of the
findings, the study suggests the following recommendations:

46
1. Mall developers should carry out a feasibility study prior to developing a shopping
mall in order to establish the suitability and appeal of the site being considered for
mall establishment. This will ensure that the mall is situated in the most suitable
available location that can easily be accessed by its prospective customers.
2. Mall managers should ensure that there is optimal tenant mix and placement when
letting out mall space. This will ensure maximum customer satisfaction and
attraction which in turn will lead mall performance to customer retention in the
mall.
3. Mall managers should organize promotional activities in order to market the mall
and create a lasting impression of mall image in the minds of the customers. This
will help in boosting the satisfaction and patronage of the customers.
4. Mall developers should ensure that there is an adequate space designated for
parking during the design stage of the mall development. Availability and adequacy
of parking will lead to satisfaction and patronage of customers. Training and
seminars to the employees and staff are also recommended to guarantee good and
quality service to the customers.

47
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51
APPENDICES
APPENDIX A
Validation Letters
ROZALLE H. PALACOL, MBA

Faculty
Laguna State Polytechnic University
Dear Mrs. Palacol:
Greetings of Peace and Joy!
I LEOMARC A. LAVA, a graduating student from Laguna College of Business and

Arts, under the College of Graduate Studies, taking up Masters in Business
Administration, presently conducting my research entitled “Customer Satisfaction
and Patronage of Sunstar Mall”.
With this, I would like to request your expertise in validating the survey questionnaire
to ensure a reliable and valid instrument for gathering data. I know that in your
capable hands, this instrument will be able to yield truthful results.
Your suggestion and comments are highly appreciated.
Thank you very much for your support and kind consideration. God Bess!
Respectfully yours,
Leomarc A. Lava (sgd.)

Researcher
52
MARISSA L. DIMARUCOT, MBA

Dean - CBMA
Dear Mrs. Dimarucot:
I, LEOMARC A. LAVA, a graduating student from Laguna College of Business and

Respectfully yours,

Researcher
53
RAMIR R. LARINO, DPA

Institutional Statistician
Laguna College of Business and Arts
Dear Dr. Larino:
I, LEOMARC A. LAVA, a graduating student from Laguna College of Business and

Respectfully yours,

Researcher
54
APPENDIX B
Research Questionnaire
QUESTIONNAIRE
The purpose of this questionnaire is to collect data on determining the customer

satisfaction and patronage of Sunstar Mall. Kindly provide the requested data as
required in the different sections of this questionnaire.
The information gathered is purely for academic purposes and will be treated with
absolute confidentiality. The exercise will take approximately 10 minutes.
BACKGROUND INFORMATION
This section is intended to provide demographic information of the respondent.
Please indicate your response in the box provided.
Name _______________________________
Address _______________________________
How long have you been visiting Sunstar Mall?

Less than 2 years [ ]
Over 2 years [ ]
Kindly indicate how much you agree/disagree with the following statements on a scale
of 1 to 4 as per the table below.
4 Very adequate Value Item 2 Inadequate Value Item
3 Adequate Value Item 1 Not Covered Value Item
55
SECTION A: ASSESMENT OF THE MALL SHOPPER SATISFACTION IN THE PHYSICAL
ATTIRBUTES IN TERMS OF LOCATION
Please indicate the extent to which you satisfied/Dissatisfied with the following statement in respect
to the influence of location in your satisfaction of this shopping mall.
No Rating:
Statement
4 3 2 1
1. Location of being accessible.
2. Accessibility of this mall by public transport

3. The time it would take me to arrive at the mall and get back.
4. Major road greatly influenced my choice to visit here.
5. I like the visibility of the mall
6. The general location of this mall greatly influence my decision to

always visit in this mall
SECTION B: ASSESMENT OF THE MALL SHOPPER SATISFACTION IN THE PHYSICAL

ATTIRBUTES IN TERMS OF TENANT MIX
No Statement Rating:
4 3 2 1
1. The presence of complementary stores affected my decision to
visit in this mall.
2. The presence of Cinema, Fast foods and Department store has
positively influenced my decision to patronize this mall
3. The presence of shops selling similar products has drawn more
customers to this mall.
4. The placement of shops within the mall helped bring human traffic
to this mall.
5. The general mix of shops in this mall has a positive impact on
drawing more customers.
56
SECTION C: ASSESMENT OF THE MALL SHOPPER IN THE PHYSICAL ATTIRBUTES IN
TERMS OF MALL IMAGE
No. Statement Rating:
4 3 2 1
1. I got attracted in this mall because of the publicity it has received
in the social media
2. I like the human traffic flow within the mall.
3. I feel that the design and layout of the mall promote the
performance of the business
4. The high standards of mall and the cleanliness of the mall played a
big part in my decision to visit this mall.
5. The general image of the mall including entertainment,
atmosphere, special event is important for the performance of the
business
SECTION D: SATISFACTION OF THE MALL SHOPPER IN THE SERVICE DELIVERY OF
SUNSTAR MALL
Please indicate the extent to which you agree/disagrees with the following statement in respect to
the influence of service attributes in your choice of this shopping mall.
4 3 2 1
1. Availability of parking is a major factor in my choice to visit this
mall.
2. I choose this mall because I felt secured here
3. convenient mall hours is an attractive feature of this mall that
influenced my decision to visit this mall
4. Good service to the customer attracts me to return in this mall.
5. I felt that the good service attributes that provided is a positive
attributes to choose this mall.
57
SECTION E: ASSESMENT OF THE MALL SHOPPER LEVEL OF PATRONAGE
4 3 2 1
1. How would you rate your level of overall satisfaction with Sunstar
Mall?
2. How likely are you to visit again and services from this mall?
3. How likely are you not to switch to another Mall? s
4. Is the mall commendable to other people?
5. I believe that this mall deserves my loyalty
Thank you for your input. It will contribute tremendously to the success of this project.
Thank you and God Bless
58
APPENDIX C
Sunstar Mall Photos
59
APPENDIX C
Sunstar Mall Vicinity Map
60
APPENDIX C
Sunstar Mall Floor Layout
61
CURRICULUM VITAE
Leomarc A. Lava
R. Lava Street, Brgy. Pinagsanjan, Pagsanjan,
Laguna 4008
leomarclava102881@gmail.com
0977-628-7040
OBJECTIVE_________________________________________________________________________________
 To gain knowledge and skills upon work which will further enhance my capability and skills to a
level beneficial to the company’s prestige.
PERSONAL INFORMATION________________________________ ______________ __
Age : 38 years old

Date of Birth : October 28, 1981
Place of Birth : Pagsanjan, Laguna
Civil Status : Single
Nationality : Filipino
EDUCATIONAL BACKGROUND _________ ___________________________________
POST GRADUATE: Laguna College of Business and Arts

Calamba City, Laguna
Master in Business Administration
Thesis Title: Customer Satisfaction and Patronage of
Sunstar Mall in Santa Cruz, Laguna
2017-2020
TERTIARY EDUCATION AMA Computer College

Sta. Cruz, Laguna
Bachelor of Science in Business Administration
Major in Management
March 2002
62
WORK EXPERIENCE_______________________________ _____________
Marketing and Events Manager Sunstar Mall

National Road, Brgy. Gatid, Santa Cruz, Laguna
November 2008- Present
Part Time Instructor Laguna State Polytechnic University

Santa Cruz, Laguna
August 2016 – Present
Sales Officer / Officer In charge Center Point Builders Supply

Pagsanjan, Laguna
September 2002 – June 2008
CHARACTERREFERENCES_________________________________________________________
Mrs. Mariluz Figuracion

Mall Manager
Sunstar Mall
Santa Cruz, Laguna
(049) 5571490
Mrs. Rozalle H. Palacol, MBA

Faculty
09323209312
Mr. Dante Ocampo

General Sales and Manager
Center Point Builders Supply
Pagsanjan, Laguna
(049) 501-0655
I hereby certify that the above information was true and correct, through my best ability and
full knowledge.
Leomarc A. Lava

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LAGUNA COLLEGE OF BUSINESS AND ARTS

SCHOOL OF GRADUATE STUDIES

CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR

This thesis hereto entitled:

CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR MALL

Prepared and submitted by LEOMARC A. LAVA, in partial fulfillment of the

MARCELINA DL. PEREZ, PhD (Cand)

Approved by the Committee on Final Oral Examination with a grade of _________.

ERNILDA L. DECENA, PhD

EDNA M. MANAIG, EdD DINA DELA CRUZ, PhD

Accepted in partial fulfillment of the requirements for the degree of

ERNILDA L. DECENA, PhD

Certificate of Quantitative Data Treatment

This certifies that the Master’s thesis entitled,

CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR MALL IN

SANTA CRUZ, LAGUNA conducted by LEOMARC A. LAVA, whose research design

RAMIR L. LARINO, DPA

Certificate of Grammar Editing

This certifies that the Master’s thesis entitled,

CUSTOMER SATISFACTION AND PATRONAGE OF SUNSTAR MALL IN

SANTA CRUZ, LAGUNA conducted by LEOMARC A. LAVA, whose research design

and Arts by the undersigned.

JEROME CARLO ALIGUI

research paper to such a humble yet meaningful masterpiece.

inspiration, intelligence, and encourage to finish this research study.

1.1.1 Level of Customer Satisfaction of Sunstar Mall

THE PROBLEM AND ITS BACKGROUND

A shopping mall is a group of retail and other commercial establishments that is

Centres –ICSC, 2014).According to the history of shopping mall, as stated by Jacobs

serve as attraction for a strip of smaller stores.

covered display windows.

them situated in almost every city and in Manila’s major highways.

the customer’s satisfaction. Whenever a business is about to start, customers always

maintain a long-term affiliation.

availability of product or services. So, giving satisfaction to customers is not an easy

task, for this, different factors should be taken into consideration.

Measuring customer satisfaction is a key performance indicator within business

transaction. Attracting a new customer as a source to build on existing relationship,

current customer base, measuring customer satisfaction is equally important.

This study is about customer satisfaction on physical attributes, service delivery,

to identify the key drivers or determinants on customer satisfaction and patronage in

bring improvement in the business organization.

Theoretical framework is a collection of interrelated concept and ideas that hold

objectives of this research.

Central Place Theory

German geographer Walter Christaller is considered as the father of the central

relationships between cities and their hinterlands (areas farther away).

majority of shopping emphasized this by noting that decreasing shopping probabilities

radiate outward from shopping center (Huff, 1964).

Central place theory advances an idea of hierarchical connection between cities

Christaller also identified threshold as an important aspect of the theory. He noted

that there is a minimum number of people required to continue sustenance of a central

buy frequently at the closer location instead of going into city.

Early research by Hotelling (1929) discovered that customers are attracted by

same time in a shopping center. He referred to this as Congener Conglomeration. The

understudy (Mugenda 2008). According to Miles & Huberman (1994), a conceptual

Consumer patronage of Sunstar Mall.

Independent Variables Dependent Variable

Customer Satisfaction in:

Figure 1. Research Paradigm

conceptualize his research as shown in Figure 1.

dependent variable is the Customer Level of patronage of Sunstar Mall.