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Chapter 1 5 Final
Chapter 1 5 Final
SATISFACTION
In A Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Hospitality Management (BSHM)
ALABA, GERLIE S.
CUGDAN, BLYSSIE P.
HULAGNO, HANNAH SYQUIA B.
MONCANO, MELISSA JAYE
UMANTUD, CHERRY ANN B.
SEPTEMBER 2022
ACKNOWLEDGEMENT
In doing the study, the researchers encountered many problems, troubles, and
revisions that led them unmotivated in doing the study. Hence, as time went by, the
researchers pondered upon their need to accomplish and pursue this study for the end
purpose of passing their research subject. In the beginning, the researchers were
confused and oblivious about the necessarily related topics to be included. Yet, with the
help of the following people who provide guidance, assistance, and support, the
researchers had assured the study's success.
First, the researchers give thanks to God for bestowing them patience, wisdom,
and gift of knowledge in doing this study.
The authors of the studies who provide researchers the necessary information
used to come up with the study.
To our loving parents who help us financially in the study and for the support
they give as the researchers pursue their future careers.
Many thanks to our adviser, Mr. Earl G. Niñofranco, who guided and helped us
with our numerous revisions and provided us with appropriate initiatives for the benefit
of research.
Through the researcher's effort and sacrifices, this research paper is heartily
dedicated to the people who became part and inspiration of this study. From our
brothers, sisters, and loving parents, who worked hard to provide for our needs, their
sacrifices, unconditional love made us the individual we are today and make this work
successful.
The Researchers
TABLE OF CONTENTS
Page
Title Page i
Acknowledgement ii
Dedication iii
Table of Contents iv-v
CHAPTER 1:
Introduction -------------------------------------------------------------------------- 1-2
Background of the Study ----------------------------------------------------------- 3-4
Research Locale --------------------------------------------------------------------- 4-5
Theoretical Framework ------------------------------------------------------------- 5-7
Research Paradigm ------------------------------------------------------------------ 7-8
Statement of the Problem ---------------------------------------------------------- 8
Hypothesis ---------------------------------------------------------------------------- 8
Scope and Limitation ---------------------------------------------------------------- 8-9
Significance of the study ------------------------------------------------------------ 10
Definition of terms ------------------------------------------------------------------- 11
CHAPTER 1
In this section, the researchers will discuss the introduction, background of the
study, research locale, theoretical framework, research paradigm, statement of the
problem, hypothesis, the scope and limitation, significance of the study, and its
definition of terms.
INTRODUCTION
Customers want to try different types of foods that they can afford. As a result,
restaurants are always ready to welcome a wide range of customers hoping that they
will be satisfied. Satisfaction plays a hugely significant role in the restaurant. It is the
fulfillment of an expected outcome that someone has experienced. Gatari (2016) states
that customer satisfaction is an important factor, since one might not get an opportunity
to redo the service, if the experience is identified by a consumers as unsatisfactory.
Specifically, satisfaction determines how satisfied customers are with the products and
services they receive. On the other hand, customers' dissatisfaction provides owners the
ability to measure, have information, and understand what aspects are effective and
which need to be improved.
In relation to the topic, the study of Yuanji Zheng (2011) states that people with
different demographic characteristics (gender, age, income and education) have
different traits. These people need different services according to their traits. If the
restaurant offers a greater number of quality services, restaurants will enhance the
chance to give customer satisfaction. Consumers at different stages of age normally will
not have the same consumption patterns or attitudes in the process of service
consumption (Yuanji Zheng, 2011). Moreover, customer satisfaction will not only
depend on product and services offered to them; their preferences will vary also to their
age and gender of which it influences on how they will be satisfied.
In the book of Marketing, Jack Welch, retired CEO of GE, put it this way: “The
best way to hold your customers is to constantly figure out how to give them more for
less.” In his opinion, satisfying customers is not enough, as customers buy not only by
relationship but also by value. It needs to learn about customers. He repeats that
satisfaction is no longer satisfying, and there are still companies that are losing satisfied
customers, who are switching to competitors who can make them more satisfied. In
addition to that, companies need to offer more satisfaction than their competitors.
Hence, this study sought to assess the 4P’s marketing mix performance of selected
restaurant business at Butuan City, and examine the importance of marketing mix.
3
The Philippine foodservice sector remains strong, brought about by the growing
demand for convenience with the growing urbanization across the country and
increasingly busy lifestyles pushed customers to buy cooked foods or dine out.
Businesses such as restaurants are always looking for ways to improve their
performance to compete actively and aggressively in the market. These businesses
realized the significance of increasing value to the products and services they provide
to customers, intending to deliver goods quickly and keep current customers satisfied.
Service companies such as restaurants are improving not only the employees
but also its services and facilities. Customers can be attracted and loyal when the
establishment’s service performance and satisfaction are fulfilled. For example, large
families come to restaurants with different personalities, and restaurants have excellent
customer service benefits, which mean being friendly, available, attentive, and
responding quickly to customers' needs.
In this case, owners study the preferences of their target customers and set
actions or tactics to promote its brand or product in the market, including what they can
offer their customers the right product, at the right time and the right place for the right
price. Thus, the researchers choose to study “Assessing the 4P’s Marketing Mix
Performance of Selected Restaurant Business at Butuan City: Basis for Intervention
Plan Marketing Mix on Customer Satisfaction” to determine the significant difference
between the profile evaluation with the restaurant’s marketing mix performance, add
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knowledge on its sustainable marketing strategies in managing its business, and also to
create intervention plan for restaurants to help achieve their peak performance.
RESEARCH LOCALE
Butuan City is the perfect place to conduct the study, for the reason that the
place was accessible since the restaurants are located in the central part of the city where
the customer can easily dine in without the difficulty of finding a decent restaurant to
eat. In addition, customer reviews in restaurants in Butuan described its gaps in
marketing mix performance. Most of the feedback from different people, including
visitors, loved the quality of the product but are concerned about the capacity of places
of most restaurants to cater to a large number of customers. A customer named Wrinkler
from tripadvisor rated Tony and Lulu's restaurant in J C Aquino Avenue a five star but
stated that "Butuan's new hype is fantastic. Great food, great service, and a cozy
atmosphere. Their concept of Comfort Food Fusion Restaurant totally works and will
be appreciated by all ages... Best to book a table in advance; the place was packed when
we got there. We will definitely be back.” For this reason, researchers choose this study
since there is a need to assess the 4P’s marketing mix performance of restaurants
because customers still want to go back and there are still room for improvements in
terms to their product, price, promotion, and especially in the aspect of catering large
number of customers involving the restaurants’ place in order for them to be
competitive always.
in 22 J Azote, J C Aquino Ave, Bacolod City Street, and Capitol Drive Corner
Montalban Street. These restaurants were chosen based on the same type of services
offered and both accredited in Department of Tourism in catering the customers' needs
and wants, making it easiest to conduct the study.
THEORETICAL FRAMEWORK
The framework shown below was based on Philip Kotler Theory of Marketing:
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Figure 1. Shows the theoretical framework of the study, which 4P’s marketing mix
model. 4P’s means product, price, promotion, and place. It is a model for enhancing the
components of the marketing mix, which can help brands understand what elements
must be combined to meet their marketing goals and objectives. The 4P’s are the four
essential factors involved in marketing a good or service to the public.
These are the 4P's: the product (the good or service), the price (what the
consumer pays), the place (the location where a product is marketed), and promotion
(the advertising). Companies use the 4P’s model to identify some key factors for their
business, including what consumers want from them, how their product or service
meets or fails to meet those needs, how their product or service is perceived in the
world, how they stand out from their competitors, and how they interact with their
customers.
The marketing mix elements have been classified under four heads: product,
price, place, and promotion. That is why the marketing mix is said to be a combination
of 4p’s. Decisions relating to the product include product designing, packaging,
labeling, and product varieties. Decision on price is vital because sales depend to a large
extent on product pricing. Whether the uniform price will be charged or different prices
will be charged for the same product in different markets are examples of decisions on
the product's price. The third important element is the place which refers to a decision
regarding the market where products will be offered for sale. The promotion involves
decisions bearing on the ways and means of increasing sales. Different tools or methods
may be adopted for this purpose. The relative importance of attaching to the various
methods is decided while concentrating on the element of promotion in the marketing
mix.
in the markets where products would be made available for sale. These decisions are
taken considering the influence of marketing forces outside the organization, such as
consumer behavior and competitors’ strategy.
RESEARCH PARADIGM
Respondents Profile:
Price
Place
Promotion
Product
As illustrated, the researchers used the IPO model, which shows how the study will be
done and conducted.
The input includes the demographic profile of respondents, such as their age, sex, how
often do you dine in the restaurant, and also the 4P’s marketing mix composed of
product, price, promotion, and place that is used for the measurement of marketing mix
performance of selected restaurant business at Butuan City.
The output will be the intervention plan created by the researchers to improve
restaurants’ performance in terms of price, place, promotion, and product.
HYPOTHESIS
The study is all about 4P’s marketing mix, which consists of four components.
These are called the 4P’s of marketing, particularly price, place, promotion, and
product. It is used to guide the marketing initiatives and positioning of the business. In
addition, it understands the customer, the competition, and the business.
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This study assesses the 4P’s marketing mix performance of selected restaurants
at Butuan City in terms of price, place, promotion, and product. To determine customer
preferences, satisfaction, and assess the restaurant 4P’s marketing mix, the researchers
use the demographic profile of the respondents based solely on their age and gender.
These two were selected since they recognized only the most important aspects of the
respondents' profile. Swami et al. (2011), hypothesizes a model to include two
demographic variables namely age and sex. This was the reason why researchers use
only two variables as they associated with customer needs, wants, and easy to measure
in conducting the survey.
The paper also describes the importance of 4P’s marketing mix (price, place,
promotion, and product) in restaurants at Butuan City and how they are each used to
obtain a satisfied customer base. Product is considered one of the important elements
in marketing mix as it ensures and meets the customers' demand. Price represents the
value of restaurants’ product that customers know whether it is worth paying for. On
the other hand, promotion also aims that customer are aware of their products' existence
and boost its brand recognition. While, place is one of the most important as it plays a
major role where the product can be access, distribute, sold, and available to their
potential customers. Thus, researchers study the 4P’s because they are important
aspects and the foundation in the marketing mix for introducing new products or
services into the market. Primarily, it is used by businesses to define their marketing
options in terms of price, place, promotion, and product in order to meet the specific
demands and needs of their target customers.
Business Owners and Managers – This study would help business owners, especially
those in the field of the food and hospitality industry. For businesses to succeed, this
would help them make improvements and create effective tactics to target customers in
meeting their needs and satisfaction.
Employees- The given data would guide the employees to better understand how to
perform their task in providing services to customers, being knowledgeable and
resourceful in solving customer problems, informing and educating the customers about
product and services that will improve customer experience.
Students- This study was vital and beneficial to hospitality management students to
better understand how the marketing mix is essential and affects customers' satisfaction.
Specifically, this may serve as a source of information to widen their knowledge about
marketing strategies being used and implemented in any restaurant business.
Future researchers – The conducted study would further open doors for future
researchers to refine and expand studies in relation to 4P’s marketing mix.
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DEFINITION OF TERMS
Place – it is a physical or actual site where a business carries out or the distribution
channels utilized to reach markets.
Product - refers to what the restaurants business offers for sale and may include goods
or services.
CHAPTER 2
MARKETING MIX
Marketing mix is a set of four elements. These elements include: price, place,
promotion, and product. The successful marketing mix is important for helping
marketers in selecting the destination that can achieve their goals and create a demand
on their products or services. Marketers can help the organization in making strategic
decisions that are necessary to create a competitive advantage (Sara& Katie, 2009) and
(Singh, 2012). Marketing mix was regarded as one of the important aspects that are
associated with decision making and assessment. Marketing mix was defined by Kotler
and Armstrong (2010) in their book as a series of marketing variables that a company
can control and mix them to create a desired response from target audience. The
marketing mix is considered to be one of the most important aspects of the marketing
process. It plays a significant role in creating value and satisfaction for the customer. In
particular, the marketing mix or 4P’s (price, place, promotion, and product) operates as
the main forces when it comes to meeting the demands of customer and creating a long,
profitable relationship with them. According to the Festa, Cuomo, Metallo, & Festa,
(2016) traditional theoretical framework with regard to the implementation of
marketing-management process activities is based on the concept of the marketing mix.
It makes marketing seem easy to handle, permits the separation of marketing from other
operations of the firm and the delegation of marketing missions to experts who take
care of the analysis, planning, implementation of different marketing missions, such as
market analysis, market planning, advertising, sales, promotion, technical support,
pricing, distribution, and product packaging (Goi, 2009).
behind the use of the marketing mix are represented in seeking to achieve excellence in
performance that is done through identifying the needs and requirements of the
beneficiaries and then seeking to fulfil them (Nuseir and Madanat, 2015). In regards to
the need for customer orientation in today's business management scenario, it is known
that customer is the main resource of business processes and the performance of the
company depends on maintaining productive customer relationships as attracting to so
much new customers costs (Nethengwe & Shambare, 2018). It is also important for
developing countries to further open their markets more significantly and provide
enhanced opportunities for the industry (Delgoshaei, Ravaghi, & Abolhassani, 2012).
In the study of Behera (2018), a clear understanding by service providers of marketing
mix elements can impact future and existing customers and allow them to continue their
business life. In today’s business environment which has highly become competitive
and challenging, businesses need to thoroughly identify and forecast how different
types of consumers behave in searching for and buying desired products and services
to fulfil their needs and wants (Hanaysha, Kim, & Lennon, 2018).
The organization should have a database of its customers to determine the most
effective marketing mix, taking into consideration the macro and micro environment of
the organization. The 4P’s are considered to be the focal point in establishing a
marketing structure within the organization through providing a good-quality product
at an affordable price, in the right place (Ho & Hung, 2008). It should be noted that
when choosing the desired product, place, price and promotion strategies, we must have
at the beginning an idea about the product or service that will be sold in the market
according to Kamau (2015).
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Each organization aims to build up such a structure of 4P’s which can make the
customer satisfaction's highest level and meet its organizational objectives in the same
time. Thus, this mix is gathered to hold over in mind the needs of target customers, and
it differs from one organization to second relying on its resources and marketing
purposes (Thabit & Manaf, 2018).
PRICE
According to Van Vliet (2011), price is the amount a customer pays for a
service or product. More broadly, it is the sum or all the values that customers give up
in order to gain the benefits or having or using a product or service (Kotler et al., 2010).
Furthermore, pricing is the monetary value assigned to a commodity that serves as a
cost or profit to the business both directly and indirectly. In determining price, a
business should consider other marketing mix aspects when establishing price because
any decision made about those elements will impact the price. Thus, firms must analyze
the marketing mix plan holistically, especially when considering the price; rather than
analyzing product qualities first, corporations can define the optimal selling price for
specific clients first and then design the product to fit that price. This method is known
as 'target costing' (Kotler and Armstrong, 2004).
concentration and cannot meet them due to its limited supply. Another feature of a
perfectly competitive market is no product differentiation, as all suppliers offer general
or complete alternatives to their products.
PLACE
Place is the location that a business chooses for its product or service so that its
target customers can easily access it. This element of the marketing mix functions as a
vehicle for the other aspects of the marketing mix (product, price, place, and
promotion). Customers won't be able to access products if they don't have a location.
Goi (2009) defined place as the mechanism by which goods or services are transported
from the supplier or manufacturer to the consumer. Place or distribution channel is a
channel utilized by the manufacturers to distribute the goods from the distributors to
the industrial users (Dharmaesta & Irawan, 2007). A distribution channel or location
is a set of activities of an organization that involves the transfer of goods or services to
16
end customers. There are some basic channel decisions that marketers need to make
before offering a product to their customers. These channels help businesses promote
and sell their products and distribute them to end users such as resellers, distributors,
marketing service providers, and financial intermediaries (Kotler & Armstrong, 2012).
PROMOTION
Having a good quality of product or product alone, cannot solely stand as a basis
for customer satisfaction. In order to patronize a product, promotion is important. A
research conducted by Khan, Syed and Fahad (2012), shows that there is a positive
influence between the promotions towards satisfaction. Advertising has a big impact on
customer satisfaction. Promotions have a big impact on purchasing decisions. In the
case of promotions, the marketing communications process is in the form of
communication, influence, or persuasion, allowing buyers or consumers to make
purchase decisions with interest.
Promotion not only serves as a tool for communication between company and
customers, but also as a tool to influence customers in purchasing activities (Laksana,
2008). Promotion success is capable of enhance purchaser pleasure in building
purchaser loyalty. The research was supported by the study from Tjahjaningsih (2013)
stating that customer satisfaction has contributed to the influence of promotion to
customer loyalty. In other words, customer satisfaction serves as a mediation variable
between promotional variables against customer loyalty.
PRODUCT
One of the most important elements of the marketing mix is the product.
According to Dirisu, Iyiola & Ibidunni (2013), maintaining a high level of product
quality is a prerequisite for the long-term survival of a company. High quality products
reduce the likelihood that consumers will buy competitors' products Dirisu, Iyiola &
Ibidunni (2013).
Also, in the highly competitive global market, the benefits of new products are
considered very important (Cooper & Edgett, 2009). Good quality products lead to the
success of the company. Product quality has a big impact on the success of your
company. Poor quality products can damage the reputation, but improving product
quality can help in building trust with customers, differentiating from your competitors,
and even lowering the return rate. An improving product quality is an ongoing process.
According to Kotler (2014), item quality is the ability of an item or administrator to
view its abilities, depending on general toughness, reliability, accuracy, simplicity of
activity, and the value of the actual item. It will be remembered. These benefits are
18
CUSTOMER PREFERENCES
According to Kiran and Diljit (2017), target market determines the profile
distinct groups of customers who differ in their needs, wants and preferences and
develop an integrated marketing communications campaign to display and deliver the
advantages of the organizational products or services. It is imperative that restaurants
target marketing, just as a product or service targets the most likely customers to
purchase the product. For restaurants to understand their customers' preferences, they
must first identify and understand the various needs and desires of customers, such as
what they want, and what they can afford based on their profile. Preference is dedicated
to many other factors such as their culture, education, and social pressure. Weedmark
(2018) also states that consumer preference helps different businesses to establish a
plan on increasing the demand of a particular product that yields into higher profit.
perception that a brand wants to achieve with its customers. It is often described as the
expectations of customers to the product. It may have nothing to do with the actual
excellence of the product, consumer’s experience on the quality of the product
influences opinion leaders, consumer’s peer groups and others in buying a service or a
product. This study explains that brand quality affects customers' preferences and the
marketability of products to other customers.
Winter (2018), explain also that consumers prefer products that has a good
packaging. Customers tend to choose products that come with excellent packaging.
Thus, good packaging attracts consumers to buy products, as packaging is usually
related to the level of confidence, quality, and satisfaction of the consumer's mind.
Customer preferences will not only vary to its price, brand quality and
packaging but rather to their demographic profile such as age and sex which influences
on how they are going to purchase a product. Armstrong et al. (2005) explains that
seeing as consumers’ needs and interest for products vary depending on age, companies
employ age segmentation, offering different products or using different marketing
approaches for different age groups. Nevertheless, studies have been linked gender and
age to customer preferences in restaurants. By knowing the demographic profiles,
restaurant owners get a better understanding of who and what their customers are thus
able to give better service quality (Abdul Talib, Hashim, Karuthan & Kumar, 2012).
Understanding the customer's needs and wants will significantly increase the
business’s chances of gaining new customers. A lack of understanding of customer
preference leads to problems in both product and service design (Schall, 2003).
Research shows that the most successful restaurants are the ones which have anticipated
guests needs fully and are aware of customer preferences and thus create their service
strategy in line with targeted market needs (Victorino et al., 2005). Moreover, it is
important as an owner to know the customer preferences in the success of their
restaurant business.
CUSTOMER SATISFACTION
In the study of Cook (2011), focus that consumer of modern time are
sophisticated, who carries high level of expectations of products/services which are
served to them. They want qualitative product and service to convince their level of
satisfaction. Since we live in a modern world, we also live in a customer economy
where the customer is king. Customers nowadays are more vocal in expressing their
dissatisfaction; no matter how sophisticated the product and marketing strategy might
be, customers would still be uninterested if it does not meet their demands and
standards. Seyanont (2007) states that customer is impatient and sophisticated, if the
restaurant is not providing service quality and satisfaction, the customer will leave to
another restaurant.
According to Chron (2014), getting feedback from both satisfied customers and
dissatisfied customers on their experiences is important. One of the factors that
restaurants consider in identifying the needs and wants of the customer is their
feedbacks on whether that specific product/service satisfies them. Specifically, it helps
the owners identify what type of product/services their customer is looking for.
Paulseen and Mirk (2007), states many executives seem to trust intuitive sense that high
customer satisfaction will eventually be translated into higher loyalty and with it
ultimately improved company performance. Thus, achieving high customer satisfaction
has become a central focus of corporate strategy for most firms (Homburg, 2005).
Josiam et al. (2007) explains restaurant is highly competitive to attract and keep
customers; therefore, restaurants owners should have a deep and clear understanding of
customers’ needs, desires, and perceptions. The main objectives of the restaurant
industry are to satisfy their customer by offering and giving them not just the best
22
quality of products, services but to make sure also that these will be accessible when
they purchase. The study of Tirimba O. Richard B. Robert M. Thomas O. & Tom O.
(2013), explains that measuring customer satisfaction gives a sign on how an
organization is performing or giving products or services; hence, customer satisfaction
will be the degree of accomplishment to every one of the organizations including the
public sectors too. In addition, businesses such as restaurants use strategies to deliver
its product/services effectively and attain satisfaction. Moreover, satisfied customers
spread a positive exchange as it retains customers and gives the restaurant industry a
long-term business benefit.
SYNTHESIS
Marketing mix of 4P’s (price, place, promotion, and product) is the key to
meeting customer needs and building long-term, profitable relationships with them. The
marketing mix concept serves as a tool for businesses to survive in a highly competitive
environment (Kamau, 2015). All organizations aim to build a 4P’s structure that can
achieve the highest level of customer satisfaction while at the same time achieving their
organizational goals. Therefore, this marketing mix is organized to meet the needs of
target customers and varies from organization to organization based on resources and
marketing objectives (Thabit & Manaf, 2018). Companies need to analyze their
marketing mix plan as a whole, especially with price in mind. However, from a
marketing perspective, price is defined as "the amount charged to a product or service,
or the total value in exchange for the profits of a consumer owning or using a product
or service as stated by Kotler and Armstrong. Various factors influence a company's
pricing strategy, including material costs, product differentiation, level of competition,
market share, and value perceived by customers of a product (Davenport & Harris,
2007). Place or distribution channel is the location that a business chooses for its
product or service so that its target customers can easily access it. It is also an important
factor in marketing mix.
According to Goi (2009), place can be defined as the mechanism through which
goods and services are moved from the provider or manufacturer to the consumer. It is
also defined that place is a channel utilized by the manufacturers to distribute the goods
from the distributors to the industrial users (Dharmaesta and Irawan, 2007). In relation
23
to that, promotion also involve the marketing communications process in the form of
communication, influence, or persuasion, allowing buyers or consumers to make
purchasing decisions with. According to Tjiptono (2008), advertising is essentially a
form of marketing communication. The study of Dirisu, Iyiola & Ibidunni (2013),
explains that maintaining high product quality is a prerequisite for a company's long-
term survival. However, the satisfaction of the customers is expected depending on the
quality of the product or service. This means that customers have specific predictions
about the level of service they will receive before consuming the product. Thus,
customers have different preferences in terms of purchasing a product/service.
In order for restaurants to know what their customer preferences are, they
analyze and understand their different needs and wants. Quizon (2016), concluded that
consumer preference is highly influenced by brand quality, packaging and price.
According to Winter (2018), consumers prefer products that have good packaging.
Therefore, good packaging attracts consumers to purchase products, as packaging is
usually associated with satisfaction. Nevertheless, customer preferences will not only
vary to its price, brand quality and packaging but rather to their demographic profile
such as age and sex which influences on how they are going to purchase a product.
CHAPTER 3
RESEACH METHODOLOGY
The researchers present and discussed the research design, particularly the
methods to be used, respondents of the study, the instrument used to gather the data,
validity and reliability, data gathering procedure, statistical treatment, ethical
consideration, and questionnaire of the survey in this section.
RESEARCH DESIGN
The study will use a quantitative type of research design using descriptive
method to assess the demographic profile of the respondents, such as age, sex and assess
the extent of 4P’s marketing mix performance of selected restaurant business at Butuan
City.
In the study of Petry (2002), data analysis shows participants were divided into
age groups that, broadly defined, covered young adulthood (18 to 35 years), middle age
(36-55 years), and older adulthood (56 years and older). Basic demographics were
compared across the age groups using chi-square tests for categorial data and analyses
of variance for continues data.
RESEARCH INSTRUMENT
This study will use an adaptive questions from the study of (Ofuso, Gyamfi, &
Tutu, 2016) & (Odunlami, 2013) and self-made questions for data gathering. The
questionnaire contains four categories (price, place, promotion, and product), its
sources, title of the study, the demographic profile of the respondents such as their age,
sex, how often they dine in the restaurant, and directions on how the questionnaire will
be answered.
26
This will be a series of questions designed to answer the information filled out by
all respondents in the form that will assess the 4P’s marketing mix performance of
selected restaurant business at Butuan City.
VALIDITY
RELIABILITY
The study aims to “Assess the 4P’s Marketing Mix Performance of Selected
Restaurant Business at Butuan City.”
27
First, the researchers will go to city hall to ask the list of the restaurants that
are accredited from Department of Tourism and ensure that the restaurants
have the same type of services.
Once the researchers had the list, they will submit an approval letter to the
identified restaurants before conducting the pilot testing and final survey.
The adaptive research questionnaire tool will be evaluated for verifying
validity and reliability testing before beginning the data collection method
to ensure that the quality of data received from the respondents is accurate.
Next, the researchers will submit a letter of approval to the dean of the
college of tourism and hospitality management, requesting permission to
conduct a study outside of the institution.
The researchers will also ask the OSAS director Mr. Leonilo M. Dilemma,
Ed.D a permission of the process to conduct research.
Once the letter and questionnaire approved by the dean of the department,
and Mr. Leonilo M. Dilemma the researchers can now conduct a survey to
the respondents.
Before administering the tool, respondents will be given instructions on
how to complete the questionnaire and will be educated about the study's
goal. The researchers will also emphasize that their name and privacy will
be protected and their responses to the questionnaire will be kept private.
Lastly, the data will be statistically handled, analyzed, and interpreted after
it has been obtained.
STATISTICAL TREATMENT
Mean. This will be used to determine the assessment level of 4P's marketing
mix on selected restaurants business at Butuan City.
Range Description
4.00-3.01 I agree
2.00-1.01 I disagree
ETHICAL CONSIDERATION
Inform Consent
Participants of the study were asked to participate by obtaining consent that the
person participating in the survey was fully informed about what was being conducted.
Participants need to be aware of the purpose of the project, who or what group is
funding it, how the findings will be used, if there are any potential adverse impacts of
their participation and who will have access to the findings. In addition, they will
receive a consent letter outlining the key aspects of the study and what they are expected
29
to do. The letter includes the signatures of the participants who agreed to participate in
the study.
Voluntary Participation
Anonymity
Identity of the participant remains unknown to the research team. This is more
difficult to achieve than confidentiality as participants in the context of social research
are usually known to the program coordinator.
Risk
The 4P's marketing mix performance of selected restaurant business at Butuan City
will only be evaluated in this study. Data or samples will be gathered and preserved
during the research process. Data protection measures must be created and explicitly
30
conveyed to study participants in order to maintain public trust. To secure the sources
of information, it is vital to keep the research results safe until they're published.
Benefits
Respondents will benefit from this survey to receive a better marketing mix
performance in restaurant businesses at Butuan City, as they are the ones who will rate
the performance of restaurants. Furthermore, the outcome will be essential to the
restaurant business owners because it will assist them in improving the performance of
their marketing mix.
Plagiarism
The researcher will ensure that there will be no practice of passing off someone
else's work or ideas as one's own. To avoid charges of plagiarism or irregularities, all
contributions to the research shall be properly acknowledged and credited.
Falsification
Furthermore, the survey questions shall not be presented in such a way that they
will twist or distort the data or impose a particular outcome.
Conflict of Interest
Deceit
In essence, deceptions about the author's identity and the nature and genuine
objective of the study should be avoided, and this study will not do so. There will also
be full disclosure of all components related to responders' participation. This is to avoid
misinformation or misrepresentation of some research components, whether in the
techniques or the purpose.
31
CHAPTER 4
In the study of Petry (2002), data analysis shows participants were divided into
age groups that, broadly defined, covered young adulthood (18 to 35 years), middle age
(36-55 years), and older adulthood (56 years and older). Basic demographics were
compared across the age groups using chi-square tests for categorial data and analyses
of variance for continues data.
The result obtained in Table 2 is the number of male and female respondents in
the study. Accordingly, there are more (52%) female respondents compared to male
(48%) individuals. This means that majority of the respondents are females followed
by males.
Regarding how often these people eat out, the evaluation result presented in
Table 3 displays a mean score of 2.91, indicating that these individuals sometimes dine
in the said restaurants. It means that customers do not always dine at the specific
restaurants being studied because these customers are always looking to try new things,
and to do so, they visit other restaurants to try other experiences, food, and services that
their competitors do not have.
1 1.00-1.50 Never
2 1.51-2.50 Rare
4 3.51-4.50 Often
5 4.51-5.00 Always
Pimentel (2010), used a Likert Scale in the following manner: 1. Never, 2. Rare,
3. Sometimes, 4. Often and 5. Always. Giving a verbal description, one has to create an
interval of means in order to give interpretations for the weighted mean.
In the study of Chua, Karim, Lee, Han (2020) explains a review past research on
restaurant management reveals that the factors driving customers’ choice of restaurant
are price, food, variety, reputation, promotion, location, and information sources. This
is driven by the factors such as easy availability, taste, low cost, marketing strategies
and peer pressure that can make them become popular (Kaushik et al., 2011). Therefore,
the said factors are the reasons why customers sometimes dine in the restaurants.
Table 4. Price
Question Mean Score
1 4.01
2 3.52
3 3.86
4 3.93
Total 3.83
Table 4 shows the data of price analyzed per each question. The result indicates
how the respondents assessed the performance of the selected restaurants through the
given questions per category of the marketing mix. Question 1 talks about the value for
money in terms of the product's quality, where it has the highest mean score of 4.01 for
all the identified restaurants. It explains that the respondents positively understand the
question to assess how all the identified restaurants provide a good quality of products
as to what they are paying. On the other hand, question 2, discounts on the products
were being asked for, had a mean score of 3.52, question 3 got 3.86, and 3.93 for
question 4. Taking closely to question 2 up to 4, only question 2 got the lowest mean
score. In this case, the result for this question depends on the respondents' understanding
and experience of the restaurants' performance in offering discounts. While the other
34
questions as to the appropriate price of products and their quantity are at a good level
since their intervals to the highest mean score are not that far, and respondents
understand these specific questions based on their experience.
Kotler & Armstrong (2004), price is an important factor in the marketing mix.
This is influenced by the customer's purchasing ability and is considered a determinant
of the purchase decision.
Table 5. Place
Question Mean Score
1 4.13
2 3.77
3 3.79
4 4.03
Total 3.93
As shown in table 5, the data regarding the place analyzed per question
generalizes the result of the four restaurants. Location of products aids accessibility for
question 1 has a higher mean score of 4.13 for the four restaurants. Indicating that the
respondents understand whether the locations of the restaurants they dine in are
accessible depending on their experience. Question 2 got 3.77, in which the product's
availability through social media is asked. 3.79 result for question 3, where the products
target customers through their distribution channel. Question 4 about the effectiveness
of transportation system got a 4.03 result. To sum up, the results per question of place
category are considered good since their intervals are not far from each other, and the
respondents are doing well in understanding the question on assessing each restaurant's
place performance. However, question 1 is more favorable and may indicate that the
35
respondents have clear understanding in the location accessibility on how they can
reach the restaurant easily. The same goes for question 4 about the transportation
system.
Generally, the location or site where these four restaurants distribute their
products and services to their customers has a total mean score of 3.93. The result comes
up by adding all the mean score result per question and dividing it into four questions
of place category.
Table 6. Promotion
Question Mean Score
1 4.03
2 4.11
3 3.84
4 4.05
5 3.99
Total 4.00
The data above was analyzed per question in the promotion category;
generalizing the results of the four selected restaurants in table 6, it appears that every
question's results are more likely close to each other. Based on the table, questions 1,2,
and 4 got a score of 4, indicating that the respondents' understanding with the
restaurants' promotion performance on these specific questions was more effective and
positive as they assessed the establishment. On the other hand, questions 3 and 5 got a
score of 3, indicating that the respondent's understanding are quite all right but not as
36
compared to other questions with high scores. To conclude, the total mean score of
questions 1,2,3,4, and 5 for the four establishments is 4.00.
Table 7. Product
Question Mean Score
1 4.38
2 4.28
3 3.27
4 4.30
5 4.25
Total 4.29
Sees in Table 7, the result per question was analyzed, generalizing the results of
the selected restaurants. Among the five questions, only one got the lowest mean score:
question 3, indicating the respondents did not positively understand the question being
asked and their experience with it. The rest questions got a score of 4. Question 1
received a high score which generally means that respondents understand how products
are tasty and meet their needs based on their experiences. Followed by question 4, got
4.30 which pertains to restaurants good brand name and image. 4.28 for Question 2
regarding the packaging of food and 4.25 for question 5 regarding the excellent service
quality and speed. All high scores explain that respondents positively understood the
four questions being asked. Generally, it shows that the product questions in selected
restaurants have a total mean of 4.29.
Table 8 composing the total mean score for each marketing mix (price, place,
promotion, and product) of selected restaurants. Each element of the marketing mix
was evaluated from the perspective and experience of the respondents resulting a good
level. It shows that the strategies they employed was effective in providing quick and
timely responses to the needs of the customers in the market. However, the product
category is of more excellent level. Indicating among the 4P’s marketing mix applied
by the identified restaurants, the product emphasize that its performance satisfies more
the customers.
Value Range
Disagree 2 1.81-2.60
Agree 4 3.41-4.20
Table 9. Price
Results in Table 9 show the difference in the price level in each establishment.
As observed above, Almont Inland, Balanghai Hotel, and Almont City Hotel had letter
b at the end of their mean score, which means the three restaurants had the same
subscript and that they are both significantly the same for the reason the intervals of
their mean score are not that far as compared to Grand Palace Hotel.
Almont Inland got a mean score of 3.83, Balanghai Hotel got 4.00, Almont City
Hotel has 4.03 and 3.51 for Grand Palace. Among the selected restaurants, only Grand
Palace Hotel had the lowest mean score. It indicates that there are problems as to their
price performance based of the customer experience to their establishment. Such
reasons the customers do not find the prices of their product appropriate either to its
quality, quantity, and offering discounts. We live in a world driven by value, and so as
the customers. In short, they are more likely to buy a product that is worth their time,
and investment and price do not matter to a customer because when they have an urgent
need for that product certainly, they will pay no matter what the price is as long as it
matches as to what they expected to receive.
In the study of Ahmed and Rahman (2015), explains with respect to pricing
decisions, the customers do not solely want cheaper prices, what they want is value of
the products or services equal to their expectations.
39
Moreover, the data also reveals that Almont City Hotel received a high score,
indicating that they provide more high-quality products, discounts, and quantity,
which encourages customers to assess them positively based on their experiences
because they are more satisfied with the price of the products they receive from them.
According to Razak (2016), says the fairness of the price will influence the perception
of the customers and it ultimately will influence their willingness to become a customer.
Kotler (2012), in the end it is the consumer who will determine the right price
of a product. When setting prices, companies must also pay attention to consumer
perceptions of prices, and how these perceptions influence consumer purchasing
decisions.
The level of difference in each restaurant in terms of place sees in Table 13.
Result reveals that among all of them, still, the Grand Palace Hotel got a low score of
3.70. It implies that there are still problems and improvements that need to be done
regarding the location where the customers can get the products, such as its
accessibility. One of the reasons is low visibility, making it difficult to find the
restaurant, thus giving a bad impression to them. In the study of Bahador (2019),
explain it is important for a company to make sure that the product is ready at markets
in the strategic locations that is accessible to potentials buyers. Company also need to
have a deep understanding about their target market, who they want to target to buy
their product.
40
Almont City Hotel, Almont Inland, and Balanghai Hotel, on the other hand,
nearly had close intervals, indicating a good location. However, looking closely
to Almont City's score of 4.14 stood out. It implies that it is much more convenient to
reach and attract customers to their area, allowing them to quickly get the product.
The difference between each restaurant's results sees in table 11. All the
establishments performed well in terms of promotional strategy. However, with a high
mean score of 4.18, Almont City Hotel stood out in its promotional activities, such as
advertising, personal, and sales promotion, which were excellent and effective to the
customer influencing them to buy their products. On the other hand, Balanghai got the
second high mean score of 3.96, Almont Inland got 3.95, Balanghai Hotel has 3.96, and
3.92 Grand Palace. The result of the promotion category in four selected restaurants
displays that they all got an excellent mean score regarding how they introduce their
product to the market since their intervals are almost close to each other. However,
further improvements especially in the tools and channels they are using need to be
done to compete with other restaurants that have good performance in the promotion.
Promotion not only serves as a tool for communication between company and
customers, but also as a tool to influence customers in purchasing activities (Laksana,
2008). Moreover, Almont City got the highest level of promotion but is still
significantly the same as all three restaurants.
41
The table above reveals the result of the mean score in the four selected
restaurants (Table 12). All the identified restaurants got a score of 4 which means that
the restaurants had the same subscript and that they are both significantly the same as
to their product performance for the reason their intervals are more likely close to each
other. However, Almont City Hotel stands out in the product category where it has the
highest score of 4.39. Indicating that this restaurant highly satisfies the tastes, needs,
wants, and expectations of the customers by providing the highest quality products and
services while customers dine in their restaurant. Satisfaction was operationalized as
needs, wants or demands of customers are attained through a particular product or
service for which they have paid to a particular establishment (Hanif et.al 2010).
Almont Inland Resort and Grand Palace got a score of 4.29. Implying that both
restaurants also met the customers' expectations, preference and had the same
performance in having a good product/service quality image to keep them satisfied. On
the other hand, Balanghai Hotel got the lowest among the four establishments, which
indicate also that in terms of products/services offered, the restaurant still met the
requirements of customers but not as compared to the other three said restaurants which
way more excellent. Overall, Balanghai Hotel performs well but still needs to improve
its product to give more high satisfaction to its customers and be able to compete with
other restaurants in terms of its quality, brand image, and services.
42
According to Lupiyoadi and Hamdani (2006), since consumers are the major
focus when discussing customer satisfaction, improving product and service quality is
one strategy to increase customer satisfaction. Company's success in generating
customer satisfaction can be attributed to the reliability of its product and service
quality.
Razak, et. al. (2016) emphasizes that the product is the first and one of the main
of marketing elements. The product: “is what can be offered to the market, to get
attention, to become a used or used acquisition, and can fulfill wants and needs.”
Therefore, the product is one of the essential elements in the marketing mix as it is
linked to how a particular restaurant satisfies its customers.
Also, when grouped according to their sex, the parameters have no significant
differences (see Table 14). This means that the respondents' age and sex have no
significant effect on the level of restaurants' marketing mix performance.
McLeod (2019), states that a p-value less than 0.05 (typically ≤ 0.05) is
statistically significant. It indicates strong evidence against the null hypothesis, as there
is less than a 5% probability the null is correct (and the results are random). Therefore,
the result obtained is greater than 0.05 it means that they do not have significant
difference.
Table 15. Test of difference in the restaurant’s marketing mix performance among
establishments.
According to Table 10, the pricing of the product in the Grand Palace Hotel is
significantly on a lesser satisfactory level compared to the others. In the same way, the
44
quality of the place in Grand Palace Hotel is significantly lower compared to Almont
Inland, Almont City, and Balanghai Hotel (see Table 10). As a result, the four
establishments had significant differences in pricing because each of them always had
competition in giving a reasonable price for a high-quality product that customers could
get, and they had also different pricing strategies based on the product and services they
offered. On the other hand, the convenience and accessibility of the location were also
different as each of the four restaurants had a different location where they distributed
their products and services to their customers. Based on table 15, there were significant
differences among the identified establishments in this regard.
Findings: Based on the result in Table 13 and 14, there is no statistically difference as
to age and sex of respondents to the marketing mix performance of selected restaurants
in Butuan City. Therefore, the null hypothesis is not rejected.
45
CHAPTER 5
SUMMARY OF FINDINGS
The respondents' comprehension of each question related to the 4P’s marketing mix
of four chosen restaurants was assessed. As discussed, Almont City's pricing strategies
are much more effective than three restaurants, especially the Grand Palace, which
needs improvements to its price performance. On the other hand, Almont City still
stands out as its location is much more accessible than Grand Palace Hotel. As for the
promotion, all selected restaurants are excellent; however, the result shows that Almont
City's promotion plan is significantly more effective than the three restaurants.
46
To conclude, all the said restaurants got a satisfactory result for their product
performance. Regardless of how these restaurants perform well, Almont City still
stands out for providing the best and highest-quality products while patrons dine in their
restaurant.
CONCLUSION
Results revealed that most respondents were between 18 and 35, with a higher
proportion of females than males. The majority of the participants sometimes dine at
the chosen restaurants.
The Grand Palace still need to seek methods to improve its price, place,
promotion, and product performance. While, Almont City successfully implement a
good marketing mix.
RECOMMENDATION
Based on the conclusions in assessing the 4P's marketing mix performance, the
researchers recommended the following to restaurant owners and managers to improve
their price performance. It is found in the study that some customers are not satisfied
47
with the price of the products. Therefore, the researchers recommend that the
restaurants should perform a strategic cost analysis by doing benchmarking, sourcing
from different supplier, calculate cost, and offer discounts since it can also be a good
thing to satisfy customers who are not satisfied with the amount they pay for the
product.
The researchers also recommend that the location of the restaurants must be
given importance because the inconvenience of the establishment can be a deal breaker.
It is suggested that the owners and managers emphasize serving outstanding food and
services, add landmark or indicators for an easy accessibility, adapt constant changes
in market trends, offer food delivery options online and via phone to help increase sales
despite the location's inconvenience, and highlight the area when promoting through
social media to attract customers.
To future researchers, you can conduct further studies related to 4P’s marketing
mix and search for more possible solutions, especially in the restaurant’s performance.
Therefore, more research is needed to determine how the marketing mix is linked to
customer satisfaction.
48
INTERVENTION PLAN
- Benchmarking
- Sourcing from a
different
supplier
- Calculating the
restaurant's
costs
Place
To ensure the
- Add landmark
convenience of
or indicators for
the location
49
an easy
accessibility
- Adapt constant
changes in
market trends
regarding
building
interiors
- Emphasize
serving
outstanding
food and
services
- Offer food
delivery options
online and via
phone
- Highlighting
area’s location
in promoting
Promotion
information on
products
offered.
- Reach out food
bloggers or
influencers to
promote the
product.
Product
- Food innovation
To maintain and
- Offer “plat du
consistently
jour”
provide high-
- Offer seasonal
quality products
experiences
and services
51
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55
APPENDICES
56
APENDIX A
Respondents Profile:
Directions: Please rate and check each following items that indicates how often do you
shop at store and your level of agreement and disagreement regarding to the 4P’s
Marketing Mix Performance of Selected Restaurant Business at Butuan City. The
answers will be completely confidential.
A. Price 5 4 3 2 1
B. Place 5 4 3 2 1
C. Promotion 5 4 3 2 1
D. Product 5 4 3 2 1
Source: Adaptive questions from the study of (Ofuso, Gyamfi, & Tutu, 2016) &
(Odunlami, 2013) and self-made questions.
58
APPENDIX B
LETTER OF REQUEST
59
60
61
62
63
APPENDIX C
QUESTIONNAIRE VALIDATION
64
APPENDIX D
PARENTS’ CONSENTS
65
66
67
68
69
APPENDIX E
APPENDIX F
DOCUMENTATION
Balanghai Hotel
73
CURRICULUM VITAE
Personal Background:
Family Background:
Educational Background
CURRICULUM VITAE
Personal Information
Family Background
Educational Background
CURRICULUM VITAE
Personal Information
Family Background
Educational Background
CURRICULUM VITAE
Personal Information
Family Background
Educational Background
CURRICULUM VITAE
Personal Information
Family Background
Educational Background