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CUSTOMER RELATIONSHIP MANAGEMENT AMONG

FOOD CHAINS IN TAGUM CITY AN ASSESSMENT

A thesis
Presented to
The thesis committee
Department of Business Administration Education
UM Tagum College, Tagum City

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Hotel and Restaurant Management

ARCETAS, WARREN C.
DUCOT, ANTOINETTE P.
MAYNOPAS, BEVELYN T.

March 2019
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APPROVAL SHEET

This thesis entitled CUSTOMER RELATIONSHIP MANAGEMENT

AMONG FOOD CHAINS IN TAGUM CITY: AN ASSESSMENT
“prepared and submitted by ARCETAS WARREN, DUCOT
ANTOINETTE and MAYNOPAS BEVELYN, in partial fulfillment of the
requirements for the degree, Bachelor of Science in Hotel and
Restaurant Management, has been examined and is hereby endorsed.

LUCELA T. BARRIGA, MM
Adviser
______________________________________________________________

PANEL OF EXAMINERS

Approved by the Thesis Committee on Oral Examination with the

grade of __________.

NEXOFELOU R. GONO, MM RITCHARD OCIO, BSHRM

Chairperson Member
______________________________________________________________

Accepted and approved in partial fulfillment of the

requirements for the degree, Bachelor of Science in Hotel and
Restaurant management.

NEXOFELOU R. GONO, MM
Program Head, Hotel and Restaurant Management

GINA FE G. ISRAEL, EdD

Dean of College
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ACKNOWLEDGMENT

In the long and multifaceted process of making this thesis, it is

inevitable to meet the following exemplary people which we would like
to express our sincerest gratitude. Without them, the realization and
success of this study could have been only just a dream.

This research would not be realized without the help and

guidance of our dearest professors:

Prof. Ritchard Ocio, our subject teacher for investing her time
and patience in reviewing and correcting our manuscript from the
start. For her knowledge, which she has shared during consultations
and inquiries.

Prof. Lucela T. Barriga, our adviser for her advice, support,

patience and for being a very approachable person. Even though she
had a very busy schedule, she always found time to accommodate us
and check our manuscript.

Prof. Rey Regidor, our statistician for his great knowledge and
for the reliable results he has provided for statistical aspects of the
study.

Prof. Nexofelou R. Gono and Prof. Richard Ocio, our panel of

examiners whose comments, additional provisions and revisions made
this thesis better. To the expertise they have lent unto the researchers
which were beyond generosity just come up with a quality output that
could be shared to the school.

In recognition of the assistance extended by our supporters, we

sincerely acknowledge the following:
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To the Food Chains in Tagum City, the respondents of this study for
sharing their precious time in answering the questioners with all
honesty and full discretion.

To our friends, for making us that we are not alone in this journey
and for cheering us whenever we feel stressed or pressured.

To our family, for providing us moral and financial support and

materials used in this project.

Lastly, to Almighty God, for his divine providence along this journey
without his guidance we could do nothing.

-Warren-

-Antoinette-

-Bevelyn-

DEDICATION
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Every challenging work needs self-efforts as well as guidance of

elders especially those who were very close to our heart.

This study is dedicated to our beloved parents who gave us the

financial support, and serve as our strength, inspirations and the
guiding light of our path to accomplish this study. Your unconditional
and precious efforts extended will guide us, as we go through to the
next step of our success.

It is also dedicated to our professors for the knowledge that they

shared to us and for guiding us along the way of making this thesis.

Above all we humbly dedicated this to our Almighty God who is the
source of everything we need such as knowledge and wisdom.

Thank you very much!

Warren

Antoinette

Bevelyn

ABSTRACT
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This main objective of this study was to determine the level of

Customer Relationship Management among Food Chains in Tagum
City. The research applied a quantitative research design using
descriptive study using random sampling technique in identifying the
sample size. A total of 200 Customers of food chains served as
respondents of this study. T-Test and ANOVA is the statistical tool
used for the data treatment. Result showed a very high level of
customer relationship management among food chains in terms of
customer service, frequently / loyalty programs, rewards programs
and community building. The researchers also proposed an action
plan.

Keywords: BS in Hotel and Restaurant Management ,Customer

Relationship Management, Food Chains in Tagum City, Philippines

TABLE OF CONTENTS

Page
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TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENT III

DEDICATION v

ABSTRACT vi

TABLE OF CONTENTS vii

LIST OF TABLES x

LIST OF FIGURES xi

Chapter

1 INTRODUCTION

Rationale 1

Research Objective 2

Review of Related Literature 2

Theoretical Framework 17

Conceptual Framework 19

Significance of the Study 19

Definition of Terms 21

2 METHOD

Research Design 22

Research Locale 22

Research Instrument 24

Data Collection 25

Statistical Tools 25

3 RESULTS
Level of Customer Relationship Management among
Food Chains in Tagum City 27
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4 DISCUSSION

Level of Customer Relationship Management among

Food Chains in Tagum City 31

Conclusion 33

Recommendations 33

REFERENCES 34

APPENDICES 35

A Proposed Action Plan 36

B Letter to Food Chains 37

C Approval Letter 38

D Survey Questionnaire 38

E Certificate of Appearance 39
F Editors Certificate 40

G Turnitin (Plagiarism Checker) Result 41

CURRICULUM VITAE 42

LIST OF TABLES

Table Page

1 Level of Customer Relationship Management among

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Food Chains in Tagum City 28

LIST OF FIGURES

Figure Page

1 The Conceptual Framework 20

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2 Map of the Philippines Highlighting Davao Del Norte 23

Chapter 1

INTRODUCTION
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Rationale

The relationship marketing and customer relationship

management is vast and is discussed extensively elsewhere.

Influencing elements to form CRM as marketing practices in firm have

been examined from different theoretical viewpoint and have received

significant attention. Literature for customer relationship

management has developed in parallel with the relationship marketing

literature. The customer relationship management is a comprehensive

strategy and process that enables an organization to identify, acquire,

retain and nurture profitable customers. Additionally, customer

relationship management is a core organizational process that focuses

on establishing, maintaining and enhancing long term associations

with customers as advocated by relationship marketing. The

comprehensive approach of customer relationship management is to

maximize the relationship with all (Ata & Toker, 2012).

The fast food business is a lucrative market in the Philippines.

The personal consumption expenditure gross domestic product (GDP)

share of food industry in 2015 is equivalent to 41.90%. In a country

report published by Euro monitor International fast food market is the

largest and fastest-growing category in the food service industry. In

fact, the total revenue in 2012 amounted the creation of Php 12.9

billion which is equivalent to 30% of the total sales revenue in

consumer food service. Of the 13, 119 business establishments

engaged in food and beverage services, fast food chains ranked second
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with 2, 535 establishments. Based on the same report, the fast food

market is expected to be the biggest category in the food service

industry in the Philippines by the end of 2017. Because of intense

rivalry in the fast food industry, fast food restaurants should increase

return patronage by meeting their customers’ needs and expectations

by practicing customer relationship management (Raquel, 2017).

In Tagum City, there are lots of food chain that we can go to

such as Mang Inasal, Hukad, KFC, Shakeys Pizza, Jollibee, HRB's

Angels Fastfood, and McDonald's. It can be observed that one major

challenge of fast food industry facing is that customers do not stick to

just one store when dining although they keep on coming on the same

store. Many companies are struggling towards customer loyalty and

customer retention because of the poor implementation of customer

relationship management and strong competition in the market.

Moreover, there is no research that examines the effect of customer

relationship management among fast food chain. Hence this study is

conducted.

Research Objective

1. To identify the level of Customer Relationship Management

among food chain in terms of?

1.1 Customer service;

1.2 Frequently/loyalty programs;

1.3 Rewards programs ; and

1.4 Community building.

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2. To determine the significant difference in the level of

Customer Relationship management when grouped according to age

and gender.

Hypothesis

The hypothesis of the study were tested at 0.05 level of

significance stating that there is no significant difference in the level of

customer and relationship management when analyzed correlation to

age and gender.

Review of Related Literature

Marketing is a continuous and persistence process,

implementation and follow-up. Marketing plays a key role in business

planning in different ways. Customer value is the key integrant in the

marketing formula for success. The broad purpose of marketing is to

bring a firm’s products for money; the purpose of personal marketing

is to bring the right products into contact with the right customers,

and to make certain that ownership transfers take place. Each

company must find the game plan for a longterm survival, and growth

that makes the most sense given its specific situation opportunities,

objectives and resources (Kotler, Armstrong, Harris & Piercy, 2013).

Moreover, marketingmanship is one of the skills used in

personal marketing; it is a direct, face-to-face, marketing-to-buyer

influence, which can communicate the facts necessary for making a

buying decision; or it, can utilize the psychology of influence to

encourage the formation of a buying decision. The marketing-person

of today has to react and interact in many different ways to many

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different people. Marketingmanship may be implemented not only

through personal marketing but also through advertising. Modern

advertising is planned with motivation or influence as the objective

(Patel, 2017) .

In addition, relationship marketing as the ongoing process of

engaging in cooperation and collaborative activities and programs with

immediate and end-user customers to create or enhance mutual

economic values at a reduced cost. The discipline of marketing has

emerged over many decades. Early marketing thinking primarily

focused on the efficiency of marketing channels. It is important for an

emerging disciple to develop an acceptable definition that

encompasses all features of the phenomenon and effective de-limits

the domain. It is reasonable to limit the domain of relationship

marketing to only those actions that are focused on serving the needs

of customers. However, to achieve a mutually beneficial relationship

with the customers, corporate management may need to consider

other organizational relationship, i.e. with suppliers, competitors or

internal divisions (Bruhn, 2013).

Thus, customer is not just about installing software or

automating customer touch points. It is about the reinvention of our

enterprises around the customer and becoming customer. In

Customer Relationship Management is a comprehensive strategy and

process of acquring, retaining and partnering with the selective

customer to create superior value for the company and the customer.”

Customer relationship management has become important for the

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business with the new marketing approach to adapt their business

activities to reach towards their customers and build the strong

relationships, networks and interactions with customers centric

(Saunders, Wong, Kotler, & Armstrong, 2012).

Since, Customer relationship management has different market

approaches, customer market, the referral market, consisting of

customers who have been referred to the business by word of mouth,

the supplier market, the recuitment markets, the influencer market

and the internal market comprising an organization`s own employees.

The marketing approach of customer relationship management has

gained much currency in the recent years by attempting to build

closer relationships and interactions between a business and its most

important customers. Customer relationship management focused on

businesses marketing their products and services through

relationships and interactions with customer market, often taking

advantage of IT-based interactivity (Emerald, 2015).

Moreover, customer is someone with whom we exchange value.

With better service provided to the customer in return strong

relationship bond will create between the company and customers.

For example, Customer who orders books via internet from an online

bookstore may afterwards contact the supplier by telephone to obtain

additional information. Due the recorded of the data in the computer

system the operator can see that 10 the purchase has been

completed, as well as having access to the additional information on

the delivery, product and payment. In this way the customer does not
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have to provide their entire contact history. The dialogue may proceed

without the obstacles because the delivery channels have been

connected with one another (Ata & Toker, 2012).

In addition, Customer relationship management is a process

that addresses all aspects of identifying customers chance to create

customer knowledge, building customer bonds and shaping their

perceptions of the organization and its products. Customer

relationship is the one provided at the turn of the century, has

adapted the concept of real-time marketing for various purposes.

Customer relationship targets towards the building of an

infrastructure, which may be used to develop long-term customer

supplier relationship. As a results of infrastructure the walls between

company and customer torn down. Whereas it was once impossible to

enter the other`s domain at one`s own convince, now a days it is a

great easier deal. On the other hand customer are able to look into the

records to determine whether a specific products is in stock, track the

status of delivery and analysed other buyer opinions on the product.

The buyer maybe involved as lead user in the development of new

products and share confidential information (Wu & Lu, 2012).

Furthermore, customer can obtain access to areas of the

company which were previously hidden and which could only be

entered or accessed under supervision and by appointment. As viewed

from the other side it becomes much easier for suppliers to gather

information from customers and contact them. The customer and

supplier activities are integrated. The privacy of the both may easily be
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violate and both will have to consider carefully what is and what is not

desirable in this part. In real time, it will be possible to provide to one

another wishes quickly (Beltman, 2013).

Moreover, customer service “Great service is about attitude. And

a service attitude leads to a richer quality of life, not only in the

commercial sector”. Customer service is one of the important

component of customer relationship management. Companies only

know the strength and drawbacks with the results of provided

customer services. Different Service Company promote the mantra

TLC; think like customer while designing their service interactions.

Due to mishandling on how customer think, many service company

results miss opportunities to become truly excel- 11 lent (Chase,

2013).

Therefore, understanding customer psychology at a deeper level

can help company to provide excellent services. Actually while most of

the service company addresses the obvious things that affects

customer’s psychological attitude towards the service such as

responsiveness on the part of their employees. Through combination

of market demand and creative development of service the developed

world`s economics are ruled by service firms. A service encounter

consists of a customer interacting with an organization for the

purpose of achieving certain goal. The customer service interaction

can be either face to face to through telecommunications. Single

interaction or multiple interaction. To improve such encounters and

solve varieties of problem arose, it need to do what other science does,

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establish operational definition that permit focused analysis of cause

and effects (Wu & Lu, 2012).

Moreover, the past customer relationship management

companies lack the element of customer insight that the ability to

understand customer need and accuretely predict customer

behaviour. But these elements has become more critical as the

customer have become more mobile, more changeable, and

demanding. Companies must have all the capability required to

capture and analyze critical customer data and analyze that data to

create deep insight into the customer behave, how they would like to

interact with the company and what they surely want and need from

the company. However, critical customer insight should determine

how company interacts with customers in the future to provide

suitable offers and services for gaining customer insight (Freeland,

2013).

Thus, the service encounter can be operationally defined as

three T so; task to be done, treatment accorded to customer and the

tangible features of the service. For example the service provided by

the restaurant, better service can be analyzed whether food was

cooked well (task), was the food tasty (treatment) and was the

restaurant area clean and pleasant (tangible) through this service

encounters the company can provide effective customer service to

improve the weakness and customer satisfaction (Chase, 2013).

In addition, customer loyalty programs reinforce loyalty by

rewarding frequent users. By encouraging the frequent users a core of

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profitable customer companies initiate a spiral of economics

advantages which enables companies to compensate employee more

generously, provides investors with super cash flow and reinvest more

aggressively to further enhance the value delivered to customers

(Lovelock, 2012).

Therefore, customer driven Brand is the type of product produce

by the company to its customers. The importance of listening to the

customer has, been one of the marketers mantra. Although the

concept may work in the some companies or with some products, the

fact is that more and more customer decisions are being made by

channel customers or partner rather than by customers themselves.

For example, McDonalds serves coca cola, not Pepsi, in its

restaurants. Similarly, Wal-Mart customer looking for whirlpool

appliances will be disappointed; because the retailer no longer carries

that brand. McDonald`s and Wal-Mart are major brands themselves,

each focus enormous marketing efforts directed at customers. But

those consumers are increasingly restricted to making decisions in

effects already made by others. Today’s brand experiences from

consumer’s point of views encompass business to business

relationships further back on the production and distribution side.

The business to business relationships are the critical in building

sustaining brand value in the business to customer ground (Freeland.

2013).

Thus, the goal of customer relationship management The aim of

customer relationship management is to develop mutual relationships

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that are more profitable with customers. Some companies do this

taking cost out of the relationship, e.g. by shifting customers to web-

based self-service, and some increase the revenue by selling

customers additional products and services. Most companies adapt

both the approaches. The not for profit context would work towards

different customer relationship management objectives, such as

operational efficiency or increased client satisfaction (Wu & Lu, 2012).

In addition, measuring customer profitability suggests that an

organization must be able to trace their incomes and costs to

customers, either at a segmental or an individual level. Most

business-to business (B2B) companies can trace their incomes to

customers. The invoicing databases contain these data. Fewer B2B

companies can trace their costs to customers, for example, the costs

of customer acquisition and service. In business to consumer (B2C),

customer relationship management implementations, costs and

revenues are assigned at a segment level, because there are many

more customers (Buttle, 2014).

Hence, because of this rapid competition in the food industry,

companies are adopting a strategy called customer relationship

management, they believed in the philosophy “Customer is a king”

that served as the basis for the customer relationship management

business strategy that is customer is the center of all idea. It is

actually said that today’s generation, consumer is a dictator about

what the company must produce, thus company should adjust its

operational business. Exchanging value to someone is the customer.

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They are the one who will be prioritized in business, because without

consumer there will be no existence of business. So that is why, it is

very important to create a harmonious relationship between the

consumer and the organization (Milovilic, 2012).

In addition, Because of the unstopping changes many

companies formulate a strategy that can attract the attention of their

customer. Companies are now adopting customer relationship

management as a marketing tool to survive in this competitive market

place. It is important that the mind-set of companies is to keep the

loyal customer rather than to look for another one offerings and

serving us favourable customer support services (Kotler, 2012).

Furthermore, the organizations that have adopted customer

relationship management systems as a corporate strategy are

expected to grow at a faster pace than those firms who are non-

adopters within the same industries. Therefore, food manufacturer

need to implement customer relationship management in order to

improve business values and gain more competitive advantage on

which to base business prospects for longevity (Toker, 2012).

Management (CRM) means developing a comprehensive picture

of customer needs, expectations and behaviours and managing those

factors to affect business performance. A system that focuses on

managing the relationship between a company and its current and

prospective customer base, as a key to success. Customer relationship

management activates help in building long lasting relationships and

these relationships give company joy of retained customers.

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Relationship marketing is a way to obtain trust and satisfaction,

which in turn ensures sustainable success of an organization (Long,

2012).

Hence, customer relationship management (CRM) is an

important aspect on marketing approach that will enable the company

to stay the loyal customer by providing them a better quality. In

return, strong relationship between company and customer will

create. This approach also provides a tactics for how many years that

had adapted the concept of real time marketing for different reason

building of an infrastructure is the target of this strategy that will be

used in developing a long term buyer-seller relationship. Both the

privacy of buyer and seller may be easily violated and both have to

realize what is not desirable. Hence, because of these barriers between

customer and company has been trim down (Beltman, 2013).

Furthermore, the pipeline of customer relationship management

is not only knowledge which is essential for gathering information

about customers from different focal points but also the interaction

between customers and organization that make top management

developing marketing strategies to satisfy the wide-range of customers

and bring their loyalty to both product and the organization. This by

itself has no real value unless the organization has the necessary

technological tools such as internet, effective call center, and

customer database and information (Kamdem & Nguelefack, 2012).

Added to this, the benefit of customer relationship management

is considered by many organizations because they realized that

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because of this strategy, it can develop the productivity towards the

function of marketing. Companies should engage in doing things

morally by managing the needs of the customer and what they are

looking for, so that companies will repeatedly purchase. If this will

happened companies can increase their market profitability, this is

not for the benefit of the business but for the customer. It can also

transform the connection of friends into partner. Thus, building a

strong relationship between customer and companies is important in

an organization (Baran, 2013).

Moreover, customer relationship management practices have a

direct and positive relationship with customer loyalty. Better the

customer relationship management practices more will be the loyalty.

Customer loyalty forms the basis for retained and profitable customer.

Loyalty is the most desirable outcome for any firm, as it ensures

continuous inflows of customer and ultimately of profit. Since

popularity of customer relationship management practices is growing

rapidly, different researchers have been conducted to check the

impact of this strategy on customer loyalty (Khandekar, 2012).

Moreover, the past decade has been marked due to a significant

change that has evolved the entire marketing industry. The rapid

competition, deregulation, dynamic changes of technology have

shaped the way customer manage their business. This change has

brought about significant deviations regarding interacting with

customer not only in the developed economies but also in the

developed countries. To fight this change and to remain in the

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business world it has become imperative for the industries to embrace

customer relationship management strategies that will aimed at

maintaining and enhancing the loyal customer. This idea increased

emphasize on effective customer relationship management due to

hyper competition in the industries. Through a proper implementation

of customer relationship management tools Service Company such as

food restaurant can differentiate themselves which can led towards

creation of sustainable competitive edge (Chang, 2014).

Moreover, one prominent aspect of customer relationship

management is to deal each customer differently based on the idea

that each customer has different needs. Customer relationship

management involves in identifying the most profitable customer and

maintaining good relationship with them. But, if overly used it can

pose a threat for the restaurant. Different treatment with different

customers may harm customer's trust and the may perceive it as a

dissemination. So in implementing these tools firms must have to

address the issue in order to avoid dissatisfaction (Nguyen, 2012).

In addition, Customer relationship management is the way

companies build relationships with customers with the aim of

maintaining customer loyalty and commitment to continue to use the

company's products is concerned. Customer relationship management

is a philosophy and a business strategy, supported by a system and a

technology, designed to improve human interactions in a business

environment. In customer relationship management requires

communication between the company and related parties that support

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the company in business. Communication that exists is not a

monologue or one way, but necessary dialogue involving two or more

parties in the process of giving and receiving information. In addition,

companies today must do direct communication. This is necessary

considering the increase complexity of needs, desires and standards of

quality that consumers want the products required (Binsar, 2014).

Customer relationship management is a technology or software

that helps track data and information about the customers to enable

better service. Customer relationship management help to acquire

profitable customers, to be focus on enterprise customers as a key to

competitive advantage. It helps to retain profitable customers longer,

win back profitable customers and eliminate unprofitable customers.

Companies can upsell additional products in a solution, cross sell

other products to customers, referrals and word of mouth benefits and

reduce service and operational cost (Rogers 2014).

The quality of the product can attract customer for example

through a product development process shared by the customer and

the provider. The essential fulfilment is thereby achieved in that

jointly developed product achieves the customers’ expectations.

Furthermore, the customer is strongly integrated through the

development process, getting to personally know the company contact

and therefore develops an emotional connection. Therefore, quality

standards, designs, and additional product services can also

contribute to customer commitment (Raab, 2014).

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Price is the key element in the reaching the customer satisfied.

Price plays and important role in the functioning of economic system.

Giving discount and bonus on purchasing will attract customers

towards the products. Customers can also be made loyal by

satisfaction dependent pricing systems and money back guarantees in

case of dissatisfaction. In this case, special contracts and standard

customers pay different prices, which are graded according to

purchase quantity. A potential customer, who is granted better

conditions with the growing length of the business relationship or with

increased purchase quantity, will carefully consider whether they will

choose another supplier, and thereby pay with this benefit. On the

other hand, possibility consists of contracts that vary in the level of

basic amounts and in price per unit. (Rowley, 2016).

Communication The continuous communication with the

customer should lead to an increase in the customer’s loyalty to the

company. Classic elements here include personal contacts with the

customers in the form of customer’s forums, field service, direct

mailing efforts, telephone contact and complaint management system.

Companies are more active using the internet, email and voice over IP

technology. Through email communication, customers of

Amozon.com can view similar items based on purchases made by

other customers. If customer has an interest in a certain topic, certain

form of music or certain hobby reviewing items of interest as

determined by Amozon.com can be very helpful. If there is lack of

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such communication efforts, then customers may choose their

purchasing requirement elsewhere (Raab, 2014).

Trust is the medium to connect one party`s confidence with the

other relationship member`s reliablity, durability and integrity and the

belief that its actions are the best interest of prducing positive

outcomes for the trusting party. Trust plays a important role to retain

profitable existing customers. Trust is an indispensable component of

a healthy, growing relationship between a company and its customer.

The customer`s own level of commitment to his relationship with a

company build long term trust. It Enterprises create trust-based

customer relationship through the actions of their employee and

partners, and through company strategies and policies to keep

existing customers (Rogers, 2014 ).

In Service Company customers have to go through the

consumption or delivery process in order to learn about the product,

this represent a big risk that the reputation of the service provider has

significant bearing on purchase decisions. To enhance trust firm

should really listen to customers feedback and try to give immediate

reactions, inform customer about the risk and problems of different

services. Trust brings positive word of mouth and number of

operational benefits to a given service encounter. Hence, building

trust to retain customer is profitable to a company (Chase, 2013).

Theoretical Framework

This study is anchored by Rajesh and Manivannan (2013)

stated that the practices of maintaining a long-term relationship with

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customers are designated relationship marketing and more recently

customer relationship management (CRM). This will facilitate business

to improve in understanding customer, retain customers through

customer service, frequently/loyalty programs, rewards programs and

community building. The appropriate understanding and

implementation of customer relationship management (CRM) strategy

is the key success factors in present competitive market.

This study is supported by Winer (2001) described the

Customer relationship management performance areas, which

typically include customer service, frequency/loyalty programs,

rewards programs and community building. The appropriate

understanding and implementation of CRM strategy is the key success

factors in present competitive market.

The customer relationship management is a protective

marketing strategy that focuses on managing the customer experience

by understanding their needs and purchase behaviour. It is an

efficient way to strength the relationship between a company and its

customer, transforming links into friends and partners. This is done

by building learning relationships, for example through supermarket

identification cards and loyalty programs. Customer relationship

management implements a customer focus that enables an

organization to retain loyal customers and a greater share of the

customer’s wallet through cross selling and up selling. The

organization must master multichannel marketing and managing

touch points to implement it effectively. The structural design of

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customer relationship management consists of an integrated front

office, business intelligence system (data ware houses, data marts and

data mining), and business rules that transmit business intelligence

to front-office personnel, physical links to back office systems such as

inventory control, accounts receivable, and performance metrics

(Baran & Galka, 2013).

Conceptual Framework of the Study

Figure 1 shows the conceptual framework of the study. The

independent variable is customer relationship management which

have four indicators namely; customer service, frequently/loyalty

programs, rewards program and community building. Customer service

is the provision of service to customers before, during and after a

purchase. Frequently/Loyalty programs encourage shoppers to return

to stores where they frequently make purchases. Rewards program is

when a company gives out incentives in order to encourage a

particular behavior. Community building is a field of practices

directed toward the creation or enhancement of community

among individuals within a regional area (such as a neighborhood) or

with a common interest.

Significance of the Study

The conduct of this study is a beneficial move so that we will be

enlightened about the customer relationship management. Through

this study, we will be able to understand their challenges and how

they cope up with it. This study will beneficial to the following; HRM

department. This study will hopefully serve as baseline data for them
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Independent Variable

Customer relationship

Management

 Customer service

 Frequently/loyalty

programs

 Rewards program

 Community building

Age

Gender

Figure 1. Conceptual Framework of the Study

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to review the investigation process delivered and serve as a source of

active learning application in hospitality management education. To

the Students this study could provide Information about the

customer relationship management, as widely used active learning

application in hospitality management education and for the Future

Researchers the result may provide the awareness and information in

extending their horizon in the same field for a far reaching implication

of this study.

Definition of Terms

For clarity and easy understanding of the study, terms are

defined both conceptually and operationally.

Customer relationship management (CRM). In this study, it

refers to a protective marketing strategy that focuses on managing the

customer experience by understanding their needs and purchase

behaviour. Customer relationship management implements a

customer focus that enables an organization to retain loyal customers

and a greater share of the customer’s wallet through cross selling and

up selling (Baran & Galka, 2013).

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Chapter 2

METHOD

This chapter discusses the research design, the research

subject, research instrument, the data gathering procedure and the

statistical treatment of the data. This will serve as guide to the readers

in understanding on how and where the study will be conducted.

Research Design

The research applied a descriptive type of research approach

supplementary by a set of questionnaire as the main gathering tool.

These sets of questionnaire are given to the business establishment in

customer relationship management among food chain restaurant

establishment in Tagum City (Travers, 2005).

Descriptive research is devoted to the gathering of information

about prevailing conditions or situations for the purpose of description

and interpretation. This type of research method is not simply

amazing and tabulating facts but includes proper analyses,

interpretation, comparisons, identification of trends and relationships

in assessing customer relationship management among food chains in

Tagum City (Herson, 2005).

Research Locale

This study will be conducted among food chains in Tagum City.

The specific respondents of the study will be customers of selected

food chains in Tagum City. The findings of this study are specific to

the context of the food chains in Tagum City. The possibility for the
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Figure 2. The Map of the Philippines Highlighting Tagum City

general applicability of the findings was limited by the scope, and the

sample.

Accordingly, even though there could be common features, the

findings may not have general applicability to other system. Presented

in figure 2 is the map of the Philippines consisting of 17 regions in

which the City of Tagum, province of Davao del Norte is located Region

in XI.

Tagum City is a first class City and capital of Davao Del Norte,

Philippines. The city located 55 kilometers north of Davao City, the

main economic and administrative center of Region XI. It takes about

1 hour and 30 minutes travel to Davao City lies between 7’26 N

latitude and 125’48’ E longlitude.

Research Instrument

The researchers will use a survey questionnaire and collect

study for the convenience of both researchers and the respondents of

the study. The first set of the questionnaire will be the indicators of

the independent variables of the study the customer relationship

management

To determine the level of customer relationship management the

following parameter limits to be used:

Range Level Interpretation

4.20– 5.00 Very high This means that customer

relationship management is very

much evident.
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3.40– 4.29 High This means that customer

relationship management is much
evident.
2.60– 3.39 Moderate This means that customer
relationship management is evident.

1.80 – 2.59 Low This means that customer

relationship management less evident.

1.0 – 1.79 Very Low This means that customer

relationship management is not
evident.

Data Collection

The researchers will undergo the following steps: First, is to

seek permission from the UM Tagum Administration to facilitate the

research process. After which, the researchers will secure a letter to

conduct study from the respondents to allow them to carry out

research in the area. Primary data will be used for the study.

Structured questionnaires will be used as a tool of data collection. The

questionnaires will be prepare and will be distribute to the bar

establishment by the researchers. Respondents may write their names

or not in the questionnaire for the purpose of confidentiality and will

be given a week to fill in the questionnaire, and finally, the data will be

analyse and will be interpret based on the research objectives.

Statistical Tools

The result will be analyse and will be interpret in the light and

purposes of the study. The following statistical tools will be use are

the following.
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T-tests. This provided insight into the differences between

different customer relationship management and guided further data

analysis.

Analysis of variance (ANOVA). To test whether statistically

significant differences exist in customer relationship management of

among food chain.

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Chapter 3

RESULTS

Presented in this chapter are the data and the results of the

study. Tables are arranged in the following subheadings. Level of

Customer Relationship Management

Level of Customer Relationship Management among

Food Chains in Tagum City

Shown in Table 1 are the mean scores for the indicators of

customer relationship management among food chains with the

overall mean of 4.31 described as very high with the standard

deviation of 0.50. The very high level could be attributed to the very

high rating given by the respondent in all indicators. This means that

the respondent response to customer relationship management among

food chains in Tagum City are very much evident majority of the cases

in all items of customer service, frequently/loyalty programs, reward

programs and community building.

The cited overall mean score was the result gathered from the

following computed mean scores ordered from highest to lowest: 4.34

for Frequently/ loyalty programs with the standard deviation of 0.51;

4.32 for Reward Program with a standard deviation of 0.56; 4.31 for

Community Building with the standard deviation of 0.61 and 4.29 for
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customer service with a standard deviation of 0.54 Each indicator

have an equivalent description of very much evident.

Table 1. Level of Customer Relationship Management

Indicators x́ SD Descriptive Level

Customer Service 4.29 0.54 Very High

Frequently/loyal Program 4.34 0.51 Very High

Rewards Programs 4.32 0.56 Very High

Community Building 4.31 0.61 Very High

Overall 4.31 0.50 Very High

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The main level of customer relationship management that was

very much evident among food chains is Frequently/loyalty Program

being the highest mean this means that the food chains are providing

a wide variety of flavours, thus, they promised of making new type of

dishes. Moreover, they are able to deliver customer orders as

promised. Furthermore, they are enabling to grant customer request

to customize condiments and seasonings on food. Consequently, they

also provide freebies to customer with multiple purchases.

With regards to Rewards program that is very much evident also

among food chains, this means that the food chains in Tagum City

provide discounts to repetitive customers and invite them on

company’s celebration blowout. Moreover, they give gift to loyal

customers and they also give free items on those who have a massive

purchase. Consequently, they offers card to earn points to be given on

Christmas.

This is followed by Community building which also very much

evident among food chains. This means that food chains are willing to

participate in the planning and development, thus, they support

recreational programs in the community. Moreover, they conduct

seminars in the community and they create fun programs then they

also provide free snacks and sponsors mascot to give fun to people

during the events.

Finally, the customer relationship management that is also very

much evident among food chains is on Customer service, this further

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means that food chains immediately answer phone call inquiries,

thus, they immediately address customers complain. Furthermore,

they accommodate customer’s inquiries with careful attention.

Consequently, promptly response to customers request.

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Chapter 4

DISCUSSION

The data on customer relationship management among food

chains in Tagum City are presented in this chapter and said

discussions are based on the findings appeared in previous section.

This section of the study presents the summary of findings, drawn

conclusions and recommendation of the researchers.

Level of Customer Relationship Management among

Food Chains in Tagum City

The respondent’s level of customer relationship management

among food chains in Tagum City is very high. This mean the different

customer relationship management were very much evident among

food chains in Tagum City. This further means that the respondent’s

response to customer relationship management among food chains is

very much evident in all indicators of the cases in the items of

Frequently/ loyalty programs, Rewards programs, Community building,

Customer service.

The level of Customer Relationship management in Tagum City

among Food chains attained very high. Among the four indictors, the

Frequently/loyal Programs got the highest mean, followed by Rewards

Programs, community Building and Customer Service. All indicators

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mentioned are described as very high. The overall mean obtained has

a description of very high level which means that the customer

relationship management is very much evident.

The result of the study implies that the customer relationship

management was very much evident among food chains. That means

that food chains have an effective management that was able to train

staff well-enough to deliver a responsive and efficient service towards

the customers. On the other hand, it shows that the food chains have

conducted and implemented loyalty programs as part of their strategy

in customer retention. The management was able to keep a record of

outstanding customers to be rewarded for their loyalty. Finally, in

order to promote peace and order in their vicinity, they have

conducted a series of activities to develop a stronger bond for the

people in the community.

This confirms to the study of Bruhn (2013) that relationship

marketing as the on-going process of engaging in cooperation and

collaborative activities and programs with immediate and end-user

customers to create or enhance mutual economic values at a reduced

cost. The discipline of marketing has emerged over many decades.

Early marketing thinking primarily focused on the efficiency of

marketing channels. It is important for an emerging disciple to

develop an acceptable definition that encompasses all features of the

phenomenon and effective de-limits the domain. It is reasonable to

limit the domain of relationship marketing to only those actions that

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are focused on serving the needs of customers. However, to achieve a

mutually beneficial relationship with the customers, corporate

management may need to consider other organizational relationship,

i.e. with suppliers, competitors or internal divisions.

Conclusion

Based on the findings of the study, conclusions are drawn in

this section. The level of customer relationship management among

food chains in Tagum City is very high. This reveals that food chains

in Tagum City have effective marketing strategies that helps promote

mutual relationship among consumers. Moreover, they incorporate

activities in their organization interactive to the community. They also

provide rewards to a customer who pays immediately and comes back

repeatedly to dine-in.

Recommendations

In the light of the foregoing findings and conclusion, the

following recommendations are offered;

The level of Customer Relationship Management can be

maintained by giving a more careful attention to every inquiry of

potential customers and to the concern of usual consumers.

Moreover, the food chains may use social media in announcing

rewards to loyal customers. And they may conduct activities such as

creating innovative designs using recycled materials and more. This

type of activities is helpful in community building and in the

environment at the same time.

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