RESEARCH METHODOLOGY - Neriza

 Quantitative-Correlational Study
 Discuss the process of making the survey questionnaire (standardized but
modified accdg. to context); Briefly discuss the test of validity and reliability
(Cronbach Alpha)
 Briefly discuss sample size computation (Slovin’s Formula)
 Purposive sampling method; criteria for the respondents

The main research method of our study was Quantitative-Correlational analysis.

Quantitative because the data involved are quantified or numerical data. Thus,
correlational design as this study focuses on evaluating two or more variables which are
categorized as independent and dependent variables and assessing the statistical
relationship between these variables with no effect from any extraneous variable.

The research instrument of this study is a Quantitative Modified Survey

Questionnaire. A standardized questionnaire was adopted but certain modifications
were applied in order to contextualize the instrument according to the objectives of our
study. The survey questionnaire contained a total of (19) nineteen close-ended
questions that mainly consisted of two parts. The first part were inquiries about the
respondents' personal information and the second part were questions categorized
according to the variables. To further describe the independent variables identified, 3
sub-factors for each variable were enumerated which are answerable through a Likert
scale while the dependent variable was measured through categorical choices, which
can be seen in our research instrument in the appendix.

Hence, since the research instrument is modified according to context, a test of

validity and test of reliability were required. In the test of validity, 3 business and
research experts have reviewed and examined the survey questionnaire. After it has
been approved by the said experts, it went through a pilot testing to 15 respondents to
businesses who have more or less similar characteristics to the final and actual survey.
Then for the test of reliability, Cronbach alpha was utilized to compute its consistency.
The research instrument was qualified to proceed to the final survey after it got a score
of 0.9145 in the Cronbach Alpha computation, which is equivalent to an excellent result
in terms of consistency. (NEXT SLIDE PLEASE)

In the final survey, data was collected through conducting a quantitative survey
using online Google Forms. A list of DTI registered MSMEs in the foodservice industry
in Cebu was acquired from the DTI, Cebu Provincial Office. It was further filtered into
restaurants, online food shops, food delivery services, fast food, cafes, and snack bars
coming up with a total population of 2,432 MSMEs in the food service industry. As
shown in the slide, the sample size was then computed through a Slovin’s Formula for a
finite population with 6% margin of error which resulted in 250 respondents. Hence, the
survey questionnaire was accordingly distributed to 250 respondents. (NEXT SLIDE
PLEASE)
The respondents were identified through a purposive sampling method. It is a sampling
technique used when researchers identify the members of the population to take part in
the study based on the researchers’ assessment. The following criteria was deployed in
choosing the respondents of this study:
(1) a business owner or manager; 
(2) working/managing an MSME in a restaurant and foodservice business in
Cebu; and 
(3) the business is using cashless payment methods in their operations. 
(NEXT SLIDE PLEASE)

Conceptual Framework

With the trend of digitalization, where businesses have chosen to adopt cashless
payment, this diagram depicts the variables that are the dependent and independent
variables that the researchers have taken into consideration. The dependent variable in
this study was MSMEs' perceived profit growth, while the independent variable was the
benefits of cashless payments as shown in this diagram. It was considered directly
effecting the MSMEs' perceived profit growth including the (1) Ease in Accepting
Payments from Customers or Debtors; (2) Ease in Making Payments to Suppliers or
Creditors; (3) Ease in Managing the expenditure of the business; (4) Time Saving; (5)
Not Required to carry physical cash while traveling for the purpose of business; and (6)
No misappropriation of cash or theft of cash. The researcher will assess the cashless
payment benefits based on MSMEs perceived profit growth to find out whether cashless
payment is beneficial enough to MSMEs engaging in the food service industry in Cebu,
as it is the main purpose of this study. These cashless payment benefits were
considered as it directly effects to MSMEs profit increase or decrease. According to
(Kumar, 2017), with the use of cashless payment, there will be an ease of making and
accepting payments since MSMEs can easily make and accept payments from
customers or debtors at anytime and anywhere as it provides flexibility and reduces the
payment processing time that will also lessen its transaction cost.

(NEXT SLIDE PLEASE)

To test the relationship of cashless payment benefits towards the perceived profit
growth of MSMEs engaging in the food service industry in Cebu, these following
hypotheses were formulated. Hence, the particular objectives of this study are to
answer these following hypotheses.
H1: Ease in Accepting payments from customers or debtors through cashless method has Positive
Relationship with Perceived Profit Growth of MSMEs.
H2: Ease in Making Payments to Suppliers/Creditor through Cashless Payment has a Positive
Relationship with Perceived Profit Growth of MSMEs.
H3: Ease in Managing Expenditures of the business through Cashless Payment has a Positive
Relationship with Perceived Profit Growth of MSMEs. 
H4: Saves time by using Cashless Payment has a Positive Relationship with Perceived Profit Growth of
MSMEs.
H5: Non-requirement of Carrying Hard Card by using Cashless Payment has a Positive Relationship with
Perceived Profit Growth of MSMEs.
H6: No Cash Misappropriation/Theft of Cash as a result of using Cashless Payment has a Positive
Relationship with Perceived Profit Growth of MSMEs.

Each of these cashless payment benefits has 3 corresponding sub factors which include:
(1)Ease in Accepting payments from customers or debtors;
a. Most cashless payments methods are user-friendly which encourages more customers thus
increasing sales
b. Certainty with the payment received which avoids under/overstatement of sales
c. Lessens staff needed to process customer which reduces labor costs
(2) Ease in making payments to suppliers or creditors;
a. No need to travel to pay suppliers/creditors thus decreasing transportation expenses
b. Avoids penalties from payment delays which reduces additional charges
c. Convenience in settling business bills and expenditures reducing additional costs (The business
can save money from giving monetary compensation for staff who will be asked to take errands
to settle business utilities and other expenses)
(3) Ease in Managing the expenditure of the business;
a. Allows tracking of spending that enables the business to monitor its expenditures
b. Motivates budget discipline which discourages unnecessary expenses
c. Keeps cash flow records which minimize fraudulent activities from employees/staff thus
safeguard the sales of the business
(4) Time Saving;
a. Allows biometrics access to account instead of pin passwords which secures the sales of the
business
b. Transactions reflect automatically (Real–time payment) that provides an actual and accurate
amount for sales computation 
c. Allows payment through QR (Quick Response) Code that lets staff cater more customers thus
increasing sales
(5) Not required to carry physical cash while traveling for the purpose of
business; and
a. Reduces the risk of a robbery that avoids unfortunate business loss
b. Reduces overspending which minimizes business costs 
c. Offers more account security by protecting the money of the business from swindlers or online
schemes
(6) No misappropriation of cash or theft of cash
a. Reduces human errors from manual inputs of the amounts that minimize the under/overstatement
of sales
b. Disables employees/staff to manipulate amounts in the cash records
c. Reduces risk of fraud among employees/staff which avoids the money of the business to be
corrupted