Mones, Lenneth B.

Domugho , Danica S. ABM XI- St. Pius V

Aleria, Jonh Emanuelle D.
Sotera, Randie Lester
Setiar, Prince Eric G.
Surmion, Mian P.
PRINCIPLES OF MARKETING

THE OBSERVATION EXERCISE

Each group shall identify a retail establishment and seek to answer the question of “How do people
buy____”. Each group will determine what product or service they will want as the subject of their
observation.

The group will then observe the way that customers shop, taking note of interesting behaviors and
observational patterns. Possible questions to resolve include: How old is the typical shopper? Who
do they tend to shop with? How do they typically shop and select? How do they pay? What is their
mood based on facial expressions?

How do people buy rice?

St. Josh Store Wholesaler and Retailer of Rice and Corn Grits
Mircy Cabangisan NFA CN: 10131-06057 Licensed Grain Retailer (New Public Market DC)
 Subject of observation: Purchase of Rice grains (Bigas)
 Observational Patterns: People of different financial capacity would never disregard buying rice. May it
be a well- milled rice at low cost or the premium grade rice which is twice the price of the former.
Nonetheless, means of purchasing rice grains are different. Others who buy premium grade rice tend to
buy in tigi while those who buy local well-milled rice buy in half sack and more.
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 How old is the typical shopper? 28 years old and above *the customer observed was 34 years old
 Who do they tend to shop with?
Wives tend to shop with young children or their husbands. Old people shop alone. Men shop
fast with their little family then instantly ride their vehicle.
 How do they typically shop and select?
Costumers have a custom of tasting the grains before finally choosing what to purchase. Few
choose to buy kilos of the local well-milled rice at the price of 23 pesos. This is because they want
maximum quantity at a minimum price. As per the costumer observed, he chose to purchase a 7 kilo 43
tonner. He said that he wants quantity without disregarding quality. Another observation made is that
premium grade rice ( 50 pesos) is not being much patronize by buyers because the guys who assist them
in buying refer to the premium grade rice at the price of 44 pesos which is 6 pesos less than the former.
 How do they pay? Cash based payment is the traditional payment scenario.
 What is their mood based on facial expressions?
Old people have creased foreheads and uneasiness painted in their faces due to overcrowd,
heated ambiance and lack of proper assistance by the workers. Others, look like they need to make the
purchase a lightning fast. Women look normal as though they have mastered the art of choosing the right
grain. Others look impatient and hateful because of the skyrocketing of the prices.
 CANDY LAB DC
Maam Chie Panagsagan
MENU ITEMS INCLUDE:
GUMMY BEARS
PEOPLE WHO TENDS TO VISIT ARE:
DCCES GRADESCHOOLERS
LHS STUDENTS
6-40 YEARS OLD PEOPLE
CHAIN RATIO METHOD
 A = population of Don Carlos = 66, 695
 B= percentage of girls in DC Sur = 20%
 C= percentage of 6-40 girls in DC Sur = 10%
 D=percentage of girls in DCCES and LHS = 5%
A x B x C x D= 13, 393 number of potential consumer
 Estimate monthly revenue: 37 902. 1 pesos
 Monthly revenue: 15, 000 pesos (net income)
40, 000 pesos (gross income)
ESTIMATE DEMAND

Identify a food place that is very close to your school. It could be a food cart, a small take-out
stall, a diner, a quick service food place or a fine dining restaurant. Do a site visit so that you get
to see the place in action- what the menu items are, who tend to visit, etc.

Your group will not try to estimate how much sales it generates per month without asking the
personnel at the food place. Construct a methodology for estimating demand, which will likely
involve using the chain ratio approach, observation and some calculation. Discuss your
methodology then produce an estimate of the monthly revenue for the site.