CHAPTER I

THE PROBLEM

Rationale of the Study

In the last few decades, the ever-changing world of restaurants has undergone a

significant transformation. There has been a notable shift in emphasis away from food, and

factors such as ambience, location, brand status, and culinary innovation have begun to

heavily influence business marketing strategies. Any restaurant's revenue, publicity, and

eventual success nowadays necessitate a meticulous marketing strategy. The restaurant

industry's consumer base has always been growing.

Knowing and being aware of the marketing strategies is very important for any

business because the heart of every successful enterprise lies in marketing especially

nowadays that there are many competitions. Business should know how to position itself

in the market. If a business is unknown to the community and doesn’t have any kind of

communication with customers, it needs to use marketing strategies to create awareness

for its services or products. Having proper marketing gives businesses a major advantage

over their competitors. Marketing strategies should be applied well for they help the

business to gain more profit and it can be used to influence the loyalty of customers.

(Killing, 2012)

Restaurant is defined as a business establishment, which prepares and serves food

and drink to customers in return for money, and it is either paid before the meal, after the

meal, or with a running tab. (Prime Global, 2017)

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Establishing a business particularly a restaurant is not an easy endeavor. It requires

ample funds, time and resources. Maintaining and keeping it buzzing is another challenge.

One who is in-charge must be skillful and talented to be able to manage and sustain the

business and make it more competitive. Effective restaurant management involves several

different tasks, such as public relations, inventory, dealing with staff, and customer

service. Sometimes a restaurant owner acts as the manager but sometimes it is a separate

position. However, a strong manager is an essential component of a successful restaurant

and he or she is usually the person who handles both the staff and the costumer issues.

Managers need to watch the cash flow closely. If they do not understand this basic

concept of restaurant finances, they will put themselves at great financial risk. They

should consider restaurant promotions like a nightly happy hour to prix fixed menus to

two-for-one dinner specials. They should also keep track of the restaurant sales to help

analyze sales trends, payroll costs, customer counts and to predict future sales. Managers

should update their menu regularly. It is important that the menus have process that keep

food costs low and profits high. Managing a restaurant involves many different

responsibilities, from hiring and firing to tracking sales and basic accounting. (Mealey, L.

2017)

Customers want a restaurant that can please or satisfy their tummy with an

appropriate price with a pleasant, relax and clean environment. Customers also consider

the fact that choosing a meal to be presented to them is fresh and the plates, forks and

spoon are well sanitized. It is important that a restaurant is accessible to the railroad or it

is visible to the highway, so that they can attract customers to visit in their place.
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Aside from good management skills, effective and systematized strategies are also

important to keep restaurant business on top. By developing and establishing a coherent

and well considered marketing strategy, organizations can promote their business, court

the right types of client and allocate their resources correctly, all while safeguarding the

reputation of the firm. (Summerfield, 2014)

Successful competition in any organization can be realized if there is a proper plan

for marketing. Marketing mix strategy is one of the plans that should be focused upon. The

marketing mix is defined as the set of controllable factors the organization assembles to

fulfill the objective market. The objective market for this situation is the gathering of

clients. The organization needs to draw in or speak to with the administration or item. The

showcasing blend incorporates four components called the four P’s of marketing: product,

place, price and promotion.

In view of the aforesaid situation, the study is intended to determine effective means

employed by restaurant owners and managers to attract, retain customers and to generate

more sales and profits. Consequently, through this study school administrators will build a

program focusing on business fields and will use it as a reference in teaching. In addition, it

will help those who are aspiring business men/women to adapt and improve the strategies to

attract customers and to survive the business world. Finally, the result of the study will help

the researchers understand better the nature of business and the concept of 4P’s which are the

product, price, place and promotion as marketing strategies that will serve as their guide in

establishing a business in the future.

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Theoretical Framework

This part contains review of insights gathered from available sources that have

direct understanding to the marketing mix strategies of selected restaurants in Vigan City.

A marketing mix strategy looks at all of the areas of the selling activities and helps

each one support the next, making sure all other departments are aware of what each is

doing. Understanding how to create an integrated marketing mix strategy will help owners

make better individual decisions regarding specific marketing tactics. A marketing mix

strategy will help them create products and services with the best chances for making a

profit. Part of a marketing mix strategy is setting the right price for a product or service,

pricing strategy that might require entrepreneurs to sell at prices that create a high-end

perceived value. If the target customer bargain conscious and is willing to accept fewer

bells and whistles on the product in exchange for paying less, pricing strategy will require

owners to sell at or below the competition’s price. When business owners have marketing

mix strategies, their departments can have a better work with each other, for they will

have to work with a same plan that established for the betterment of the business. (Milano,

2018)

The creation of an effective marketing mix strategy is often the task of a firm’s

senior management team. By handing down a comprehensive marketing strategy from the

c-suite, companies will help to create a more focused, business-wide approach to

marketing. It is crucial, however, that the strategy is multi-faceted, realistic and

implemented consistently over time. An effective marketing strategy must also serve to

bridge any gaps that may exist between the boardroom and the marketers responsible for

disseminating the company message. Marketing strategies often require company-wide

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discipline and governance to ensure that they’re being well implemented effectively and

efficiently. (Summerfield, R. 2014)

Advertising

Advertising a restaurant is different for almost any other type of business. A

customer's restaurant experiences are created not only by the product (the food) but also

by the decor, the music and the service. It can be difficult to convey all of that information

in an ad, so the successful restaurateur must become more creative with promotion and

marketing. Many low-cost yet highly effective ways get your message across and bring in

new business. (Wagner, 2017)

Marketing Communication

According to Karlsson (2007), for advertising to be effective, it is important for

advertisers to be aware of how the message may met by customers on the market. To

make this easier, academics and professionals have during a long period tried to come up

with theories and models that can show how customers respond to the advertising they are

being exposed to. By understanding the different behavioral levels that customers pass

through. The advertiser can create a message that will meet all requirements and thereby

be effective.

The Use of Social Media

The introduction of social media websites changed the communication landscape.

With the popularity of these websites among consumers and the increase in the time they

spend on browsing of these websites given the great amount of social interaction that

occurs between them, the effect of these websites on influencing the consumers' behavior
 6

has also increased (Hutter et al., 2013). These changes have caused marketers to start

adopting social media widely in their marketing mix activities.

Social media marketing strategies are undeniable force in today’s world.

Pamphlets and delivery menus slipped under doorways simply will not cut it anymore.

Often, the restaurants with strong social media presence as part of their restaurant

marketing plan are the ones that fare the best, and in the competitive food industry,

ignoring social media is a death sentence. (Marrs, M., 2017)

In addition, doing blogs offer the chance to experiment with the restaurant’s voice

and personality. Share their successes and struggles, funny stories, recipes, and anything

else they think might interest their customers. Some food bloggers have big followings,

and getting their attention can have a huge influence on the restaurant. Even just one write

up or mention from a major foodie can be a huge for restaurant promotion efforts. (Marrs,

M., 2017).

Nielsen (2013) as cited by Gaber (2014) showed that the majority of advertisers

are increasing their advertising budget for social media and that they have a separate

budget for marketing through it. Most of the marketers’ surveys indicated that they are

planning to shift a part of their advertising budget from traditional media to social media.

Moreover, the study showed that 89% of the marketers are adopting the free social media

tools and 75% of them are adopting the paid advertisements together with the free tools on

social media. These statistics show that marketers are starting to recognize the advantages

of interactive marketing through social media where consumers are directly engaged with

the marketing messages.

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Employees’ Behavior

A product or service with bad quality means that the product or service does not

meet the customer’s expectation. It is difficult to imagine how purchasing something that

falls short of expectations could be considered as a good value. (Finch, 2008)

Herzberg’s two-factor theory explains that good working conditions only go so far,

and that employees require higher-level fulfillment such as motivation and recognition in

order to be satisfied with their position. Even in a low- skill position, low turnover is

desired. In addition, happy employees lead to happy customers. (Ozgunor et al., 2014)

Strategic Advantage through Customer Service

Many stores differentiate their retail offerings, build customer loyalty, and

develop sustainable competitive advantages by providing excellent customer service.

Good service keeps customers returning to a retailer and generates positive word-of-

mouth communication, which attracts new customers. Providing high-quality service is

difficult for retailer. A sales associate may provide good service to one customer and

poor service to the next. (SlideShare, 2015).

Customer Service Strategies

Personalized and standardized are two approaches retailers use to develop a

sustainable customer service advantage. Successful implementation of the personalized

approach relies on the performance of sales associates or the degree to which customer

interactions can be personalized using an electronic channel. The standardization

approach relies more on policy, procedures, and store and Web site design and layout.

(SlideShare, 2015).
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Quality of Food

There is an artistry in the preparation of food. Some food can be prepared to be

delicious, while another recipe can make a dish a repugnant. Whether the food is a

gourmet meal, a chocolate chip cookie or a hamburger, the recipe can make it a hit or a

miss. However, take note that the taste of a food is not the quality of the food. (Kurtus, R.,

2008).

Establishing quality standards are not difficult but maintaining them is the whole

trick. The theory indicate that standard should first be established, than actual is compared

with establish standard, then if there are any variance they should be removed to bring the

actual to the required standard. Then there is feedback and follow through. (Khan, 2015)

According to Khan (2015), food quality standards are directly link with menu and

receipt standardization. The menu specify the ingredients, the quality and presentation,

while standardize receipt assures that it will remain constant over the period. Food quality

is the most important factor for the potential customer to decide where they want to dine.

Culture of Targets Market

According to Restrepo (2018), it is time to look outwards after a brand has

developed a strong mission and understanding of its internal culture. To meet the needs of

the customers, understand first what they want and how to provide it. This is where

understanding the culture of the target market comes into play. In some cases, this may

include multiple countries or cultures that must be taken into account. It is critical to

consider cultural factors in the target market when developing a marketing strategy and

providing a service. This is where language comes into play. Culturally appropriate
 9

language must be used to create effective marketing strategies. This includes the language

used in interactions with customers. Informal language and establishing a rapport with a

customer are very important in some cultures. In others, formal language demonstrates

respect and must be used when providing service.

In regards to marketing strategies, understanding the culture and the use of language

in the target market is essential. People from different cultures have different thought

processes. If you present the same advertising campaign to two different cultural groups

of people you will gain different responses. People from one culture may notice

background items and be more interested in the details, whereas people from another

culture may only identify with or notice the central figure and ignore the rest of the image.

This has an impact on the way that a marketer presents their message based on cultural

thought processes. By understanding the culture of the target market, the marketing

strategy can be altered to ensure maximum customer engagement. (Restrepo, 2018)

Culture plays a role in the perceptions, behavior, and expectations of the customer.

Therefore adopting culturally nuanced policies and practices is also important in ensuring

that service practices are culturally sensitive. For example in some cultures upselling of a

product is not appropriate. Response time is also important when interacting with

customers and providing service. Some cultures expect an immediate response to emails,

whereas others are ok with a longer response time such as 24 or 48 hours. By

understanding the culture of the target market that you are working in, you are able to best

identify how to provide the best service possible to your customers. (Restrepo, 2018)

Using Customer Research

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Marketers often use research to determine when and how to modify or tailor a

product to meet the needs of new or existing groups of consumers. Collecting information

about customer expectations and perceptions is not enough. The service gap reduced only

when retailers use this information to improve services. (Hoyer, W., & Macinnes, D.,

2010)

Consumer research, sometimes known as market research is a valuable business

tool that help entrepreneurs understand their customers and what makes them tick.

Looking at the driving forces behind customer behavior, consumer psychology and

purchase patterns, it uses research techniques to provide objective information that they

can use to craft products, marketing programs and advertising campaigns that increase

sales and profitability. (Hoyer, W., & Macinnes, D., 2010)

Consumer research can be very useful. If research indicates that consumers have

heard of the brand but do not know anything about it, the advertising objective should be

to enhance brand knowledge. If consumers know the brand name but don’t know the

characteristics of the brand that make it desirable, the advertising should aim to enhance

brand knowledge and encourage positive attitudes about it. In addition, if consumers

know neither the brand name nor the product’s benefits, the advertising should educate the

target market about both. (Hoyer, W., & Macinnes, D., 2010)

Clients References

According to Schiffman and Kanuk (1997) cited by Asamoah, E.S and Miloslava,

C. (2011) consumer behavior is “the behavior that consumers display in searching for

purchasing, using, evaluating and disposing of products, services and ideas.” Consumers
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all over the world exhibit varied taste and preferences for food, hence, it behaves on firms

to understand the behavior of consumers to enable them strategize to respond to the

demands of the market and stay competitive. As indicated by Hamansu (2008), ‘the main

objective of the study of consumer behavior is to provide marketers with the knowledge

and skills that are necessary to carry out detailed consumer analyses which could be used

for understanding markets and developing marketing strategies.

Feedback

Restaurants do not use the yellow pages as much as they used to, and for good

reason: people have moved to the Internet to find what they are looking or after for. They

use search engines and consumer review sites to find local restaurants and decide which

they should give their money. They want to see the restaurant’s menu before visiting and

they have favor those that have a strong online presence over those that have not

embraced the Internet. (Dibenedetto, L., 2012)

Review sites have become an integral part of a business’s reputation, and negative

reviews have the potential to harm your business. Too many negative Yelp reviews,

whether true or not, will turn business away. Asking happy customers to write a review,

as well as responding personally to any negative feedback, is the best way to maintain a

positive online reputation. (Dibenedeto, L., 2012)

One of it is the Yelp which reviews is like having a flock of golden geese –

reviews from Yelp can do wonders for your business. The most important thing to

understand about Yelp is that people can and will review owners, even if they do not set
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up an account. For that reason, restaurant owner should absolutely be proactive and dress

up their Yelp account so it works for the owner, rather than against them. (Marrs, 2017)

The other big thing to keep in mind when it comes to Yelp is how owners handle

feedback. It is great to thank Yelpers for their review, whether positive or negative. If they

get negative feedback, they should always answer in a polite, professional manner. If they

are responding to the negative review publically, try thanking the reviewer for the

feedback, apologize for the incident, and promise to improve in the future. (Marrs, M.,

2017)

Conceptual Framework

INDEPENDENT VARIABLES DEPENDENT VARIABLES

Marketing Mix Strategies

Selected Restaurant in
a. Product
Vigan City, Ilocos Sur
b. Price

c. Place

d. Promotion

Figure 1

The Research Paradigm

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The researchers are guided by the paradigm above. In this study, the independent

variables are the marketing mix strategies in terms of product, price, place and promotion.

The selected restaurants served as dependent variable.

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Statement of the Problem

This study aims to know the Marketing Strategies of the Selected Restaurant in Vigan

City.

Specifically, it sought to answer the following questions:

1. What is the level of marketing mix strategies of selected restaurants in Vigan City

as perceived by the customers in terms of:

 Product,

 Price,

 Place, and

 Promotion?

2. What is the overall level of the marketing mix strategies of selected restaurants in

Vigan City as perceived by the customers?

3. What makes the marketing mix strategies effective on the selected restaurants in

Vigan City as perceived by the customers?

Scope and Delimitation

This study is focused on determining the level of the marketing mix strategies of the

selected restaurants in Vigan City as perceived by the customers for the year 2022. It will

seek also to know the marketing strategies of the selected restaurants in terms of pricing,

place/location, promotion, and product. The subject of the study will be exclusive to the

customers, from teenagers to middle-aged, of the four (4) selected restaurants in Vigan City

namely; Six Bros, Panganan ken Ihawan toy Ciudad ti Vigan, Tessie’s Restaurant, and

Sanitary Restaurant, with a population size of 5 customers per selected restaurant, with a total
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of 20 participants. The data will be collected with a timeframe of a week or two, depending

on certain circumstances or situation. The data needed for the study will be gathered through

a questionnaire and will undergo through thematic analysis.

This study does not cover the significant difference in the level of marketing mix

strategies of selected restaurants in Vigan City as perceived by the customers.

Significance of the Study

This study is important for the following persons:

Researchers. This study is important for the researchers in identifying marketing

strategies needed in the business operation.

Future Researchers. The presented ideas and information may be used as reference data

in conducting new research or testing other related findings' validity.

School Administrators and Teachers. This study is important for the school

administrators and teachers in designing programs and activities that enhance business

capability and encourage students to put up their own businesses.

Aspiring Entrepreneurs. This study is important for the aspiring entrepreneurs because

it serves as their guide towards their goals of becoming a successful businessman and

woman in the future.

Operational Definition of Terms

The following terms are defined as used in the study to ensure a better understanding

of the study.
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Marketing Mix Strategy. It serves as the fundamental underpinning of

marketing plans designed to fill market needs and reach marketing objectives. In this

study, it is measured in terms of pricing, place/location, promotion, and products.

Place/ Location. This refers to where the establishments are located. Where

the place/location is accessible for customers.

Pricing. This refers to the amount of money given in exchange for the

product. Where the price is relevant to the quality of the product.

Product. This refers to the actual goods or services offered for sale. Where the

product is the food or meal that the restaurant serves.

Promotion. This refers to the activity that educates the potential customers

about the product and persuades them to patronize the product. Where the promotion

can either be in public relation, direct marketing, etc.

 CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents a review of related literature obtained from available

resources that have direct bearing to the study.

Related Literature

On Product

In what Rick Suttle wrote in his article for Product Strategies for Restaurants,

product strategies are designed to increase customer visits at certain times of the day, such

as lunch or dinner. Like the value approach that involves selling select menu items at

reduced prices. This strategy works for restaurants, combining food with a side dish and

small drinks to appeal for customer’s taste and this type of product strategy is particularly

effective at increasing customer traffic among 16 to 34-year-olds. (Suttle, R., 2018)

Restaurant owners can increase sales, profits or both by modifying their product

mix. An effective product strategy involves more than simply adding new items to a

menu. Looking at the benefits of customers seek when dining out, the profit margins of

various items and how certain offerings affect the image are all important components of

developing an optimal product line. To attract a wider variety of diners, segment the menu

to appeal to different demographic characteristics. Not every meal has to make money to

help them grow the business. Add upscale specials for both regulars and new customers,

even if owners lose some money on the sale, to expand their menu and position the

establishment as an eatery that appeals to a more all-encompassing crowd. Instead of only

offering a la carte options, bundle appetizers, soups, salads, entrees and desserts to create

value meals. Managers don’t have to offer a five-course meal, but letting diners choose
 18

three items for one price, or two items and a beverage, can encourage more spending.

Anytime they add a new product or product line, analyze how it will affect the brand.

(Sam Ashe-Edmunds, n.d.)

Restaurants often market their own signature sauces, spice blends, jams, jellies and

food products in professionally produced bottles and cans. Regardless of source,

restaurateurs must research food production techniques, sanitary standards, quality control

procedures and cleaning and sterilizing capabilities of vendors before committing to

carrying any products. Successful restaurants look for ways to enhance the guest

experience by providing products from local farmers and artisans, packaging favorite

restaurant foods and featuring local foods on menus. Information about local foods, farms

and quality products impresses guests and builds loyalty by giving value to everything

that people see, touch and eat during visits. Food quality is important to health, and

marketing a signature line of products helps to convince customers that a given restaurant

is an expert on food in general and local produce in particular. (Matthew, 2014)

On Price

Price is the amount of money that acquire is given to a certain product. Insofar as

the amount people are prepared to pay for a product represents its value, price is also a

measure of value. Prices perform an economic function of major significance. (The

Editors of Encyclopedia Britannica, 2018) Pricing should be contingent upon what it costs

to produce, market, and cover expenses.

Value pricing assumes that customers see price as a primary indicator of a

product’s value. Penetration pricing is the act of setting the initial sales price far lower
 19

than what the normal selling price would be in order to infiltrate the market. Restaurants

often utilize penetration pricing when introducing a new menu item. Customary pricing

that established by tradition or competition, and restaurants employ customary pricing on

a regular basis. Bundle pricing is the act of marketing and selling two or more products as

a package with the intent of saving the customer money. (Hammond, M., 2018)

Designing a restaurant menu can be rather complicated and hard to understand at

times. It is hard to know what to charge in order to make a profit. Food cost and portion

control are two ways to help price a menu correctly, but one must be careful not to let the

price be out of the local market. Another way to ensure a profit is to create a balance of

expensive and inexpensive items. One reason that chain restaurants are so successful is

that they have a firm handle on portion control. The cooks in those restaurants know

exactly how much of each ingredient to put in every dish. In order to practice portion

control in their own kitchen, everything should be measured out. (Mealey, L., 2017)

Food markets fluctuate depending on the season, the weather and the price of gas.

However, when owners balance expensive items, which are prone to price fluctuations,

with items that have stable prices, they can help maintain their desired food cost. (Mealey,

L., 2017)

Market Price is where restaurants routinely change the price of menu items

according to the current market, which goes by supply and demand. Market price protects

the food cost. It allows the entrepreneurs to charge what to need in order to make a profit.

It can serve seasonal items all year round and know that a food costs are covered. On the

other hand, market price usually reserved for items that are more expensive. When a
 20

dining patron sees the term market price, they will ask their server about how much the

item costs. Thus, any customers doesn’t want unexpected price towards their bills, for it

will make them alienate. And some customers don't want to be seen as cheap or gauche

and ask what the price is. (Mealey, L., 2018)

Creating the right price point for a menu is essential for keeping costs down and

sales up. Understanding the role of portion control, food cost, and price points will help to

create a restaurant menu that balances customer expectations with an affordable kitchen

inventory. (Mealey, L., 2018)

On Place

In the marketing mix, the process of moving products from the producer to the

intended user is called place and in other words, it is how a product is bought and where it

is bought. How a product is brought is a distribution channel that can be defined as the

activities and processes required to move a product from the producer to the consumer.

Also included in the channel are the intermediaries that are involved in this movement in

any capacity. These intermediaries are third party companies that act as wholesalers,

transporters, retailers and provide warehouse facilities. Correct placement is a vital

activity that is focused on reaching the right target audience at the right time. It focuses on

where the business is located, where the target market is placed, how best to connect these

two, how to store goods in the interim and how to eventually transport them.

(Luenendonk, 2018)

Location is an important factor because it determines how many customer will

have an access to the business. Menus are also the same from location to location, and
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consumers enjoy a recognizable, familiar experience no matter where they are, with a

dependable level of quality. (FranchiseHelp Holdings LLC, 2019)

Not every available space is right for a restaurant. A good restaurant location is

harder to find than some people think. Bustling pedestrian street in the heart of downtown

may look like the perfect spot but may turn out to be a dud. Other times a spot that people

would never think to put a restaurant like in an old shoe shop in a run-down mill town

might be a success. Of course, food and service are important to the success of a

restaurant, but the location can be just as crucial, especially in the early years. Setting up

shop in a location with either high foot or car traffic is ideal. Making a restaurant (or

restaurant sign) visible to the public is like free advertising. It reminds them that a

restaurant exists and they should stop by for dinner sometime. (Mealey, L., 2018)

On Promotion

The success of the food service business lies on the customer because of this, ways

should be done to promote. With their large signs, billboards and advertisements

illuminating the city, the fast food chains are definitely here to stay the food business so

that customers will patronize the food and services continuously. There are 15,000 fast

food restaurants operating in Metro Manila. The most common tools adopted by the fast

food companies in the Philippines are window displays, free delivery, radio and TV

advertising, and billboard advertising. (Entrepinoys, 2015)

According to the article entitled Capital, Costing, Pricing and Promotion in Food

Business (2018), popular food business and advertisement is not enough to make it

succeed. It also need to get in touch with different institutions or organizations to improve
 22

food preparation and service and it is called networking. It is also recommended to food

service business owners to join workshops and seminars to know the trends and present

preferences of consumers. In this way, they can improve the quality of their service and

food. In joining food festivals, they can observe and study the different food preparation

style of different provinces and countries.

Company uses TV, radio, print media and online media for its advertisements.

Attractive promotions can encourage spontaneous buying as close to half or 49% of

Filipino shoppers are always on the lookout for promotions. (Mixph, 2015)
 CHAPTER III

RESEARCH METHODOLOGY

This section presents the research design used in the study, the population and

sample, data gathering instrument, data gathering procedure, and statistical treatment of

data.

Research Design

This study will use the descriptive method of research. The descriptive method

will be employed to determine the marketing strategies of the selected restaurants in

Vigan City.

Sources of Data

Locale of the Study. The study covered four (4) selected restaurants in Vigan

City, Ilocos Sur namely; Six Bros, Panganan ken Ihawan toy Ciudad ti Vigan, Tessie’s

Restaurant, and Sanitary Restaurant.

Population. The respondents of the study were 5 customers (teenagers – middle

aged) from each of the four (4) selected restaurants, with a total of 20 respondents.

Table 1. Population of the Study

Respondents Number of Customer

Six Bros. 5

Panganan ken Ihawan toy

5
Ciudad ti Vigan

Tessie’s Restaurant 5

Sanitary Restaurant 5

Total 20
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Data Gathering Instruments

The data for the research were gathered through a questionnaire. The questionnaires

comprised the marketing mix strategies of the selected restaurant in Vigan city. The

questionnaires were constructed by the researchers and were validated by experts in the field

of business.

Data Gathering Procedure

In conducting this study and administering the questionnaires to the respondents, the

researcher sought permission first to the participants. Upon approval of the participants, the

researcher then sent the link of the questionnaires to the participants in the form of google

forms.

Ethical Consideration

Ethical considerations was strictly observed. The participants was recruited

with their full and informed consent. They were not subjected to any form of harm,

discrimination, or violence. Their participation was completely voluntary. The information

gathered was used solely for the purposes of the study. Any and all records were kept

securely and confidentially, once the research has been published and presented, the records

will be destroyed. Any form of communication was carried out with honesty and

transparency.

Data Analysis
 25

The quantitative data gathered are coded, tabulated, and computerized by the

researchers with the help of a statistician. The qualitative data gathered for the research was

analyzed through thematic analysis, given the nature of this study. Data was broken down

into coding, the process of reading data and breaking into sub-categories and giving labels to

the text. Questions asked allowed the researchers to input them into specific categories for

further analysis. After the data was analyzed, it was presented by a quantitative display of

graphs and charts showing the statistical findings.

Statistical Treatment of Data

The data gathered in this study was treated using the following statistical tool/s:

1. Mean was used to identify the marketing mix strategies of selected restaurants in

Vigan City.
 CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the findings, analysis and interpretation of the data

gathered through the questionnaires which were administered to determine the level of

the marketing mix strategies of the four selected restaurants in Vigan City as perceived

by the customers.

Problem 1: What is the level of marketing mix strategies of selected

restaurants in Vigan City as perceived by the customers?

Table 2 shows the summary of the level of marketing mix strategies in terms of

products, pricing, place/location and promotion as perceived by the customers

Table 2

Summary of the Level of Marketing Mix Strategies in Terms of Products,

Pricing, Place/Location and Promotion as Perceived by the Customers

As a Whole
Marketing Mix Strategies
X DR
1. Products 4.22 VH
2. Pricing 4.07 H
3. Place/Location 4.02 H
4. Promotion 3.54 H
Legend:

4.21 – 5.00 Very High (VH)

3.41 – 4.20 High (H)

2.61 – 3.40 Moderate (M)

1.81 – 2.60 Low (L)

1.00 - 1.80 Very Low (VL)

 27

Table 2 shows that the mean of level marketing mix strategies of selected

restaurants in Vigan City in terms of product is interpreted as “very high” with a mean

of 4.22. It implies that their products as perceived by the customers has high quality and

taste good.The product experience is typically a composite of a number of factors.

Experiences in a hotel is often the sum total of the quality of the furnishing, food

choices, facilities and a whole lot of other elements. (A.B. Ilano, 2016)

On the other hand, pricing overall mean 4.07 is interpreted as “high.” This means

that the customers are likely to buy the food for it is not costly. Price should never be

just about the cost plus markup. It should also be a tool for communication and

strategy. It is also a very sensitive element because, unique among the components of

the marketing mix, it actually can make or break the products’ profitability. (A.B. Ilano,

2016)

Furthermore, the place has also a mean of 4.02 which is interpreted as “high”. It

implies that the customers eating in the restaurants feel safe and they have an access of

location. Place, as the next component of the marketing mix, is a part of the strategy of

standardization. All of the outlets tend to be located close or inside central areas, in

single locations or next to other retailers. (Tseltsova, A. & Bohnert, K.)

Promotion as a whole is 3.54 which is interpreted as “high” and has the lowest

mean among the marketing mix strategies, this implies that the promotion done

towards the customers is practiced but needs more improvements.

 28

Problem 2: What is the overall level of the marketing mix strategies of selected

restaurants in Vigan City as perceived by the customers?

Table 3 shows the overall level of marketing mix strategies as perceived by the

customers in Vigan City.

Table 3

Overall Level of Marketing Mix Strategies as Perceived by Customers in Vigan

City

As a Whole
Marketing Mix Strategies
X DR
1. Products 4.22 VH
2. Pricing 4.07 H
3. Place/Location 4.02 H
4. Promotion 3.54 H
Overall Mean 3.96 H
Legend:

4.21 – 5.00 Very High (VH)

3.41 – 4.20 High (H)

2.61 – 3.40 Moderate (M)

1.81 – 2.60 Low (L)

1.00 - 1.80 Very Low (VL)

Table 3 shows that the overall mean of the marketing mix strategies of selected

restaurants as a whole is 3.96 which is interpreted as “high”. It implies that the owners

have strategies to make their place accessible and to the customers and promote their

products as well.
 29

Problem 3: What makes the marketing mix strategies effective on the selected

restaurants in Vigan City as perceived by the customers?

This section contains the information that has been gathered regarding on what makes

the marketing mix strategies effective on the selected restaurants in Vigan City. Table 4

below provides a summary of the salient points that emerged from the participants' responses.

Table 4

Summary of what makes the Marketing Mix Strategies Effective on the Selected

Restaurant/s in Vigan City as Perceived by the Customers

General Description
Theme Verbatim Responses Codes of the theme

1. Quality of the Product

a. Best “One thing that I’m sure everyone The respondents

of is that, everyone here here in find the quality of
in Vigan City agrees that Vigan City the food was the
the food that they serve agrees best.
here is the best.”
best

b. Delicious “The food that they delicious The taste of the

serve here is delicious. I food is what
can’t get enough of it, can’t get makes the
especially on the enough of it respondents want
pinakbet.” to eat more on the
selected
restaurants.
 30

c. Flavorful “It tasted like heaven tasted like The respondents

when I ate at this heaven depended on the
restaurant. The food distinct flavor of
here has a distinct distinct the food.
flavor, which is the flavor
reason why I always
come back here.”

2. Pricing of the Product

a. Affordable “If I have a small amount Small amount The respondents

of cash on me, that wasn’t of cash depended on the
a problem because the low-price food.
price of the food is low- Low-cost
cost, but the taste is still
good, which makes this
restaurant worth to dine
in.”
b. Economical “The pricing is cheap and Cheap The respondents find
I thought that it is also an that inexpensive food
eco-friendly cost.” Eco-friendly is economical.

Quality of the Product

“…….that the food that they serve here is the best.”

Respondent 2 is certain that having the quality of the food at its best is what makes

the marketing mix strategies effective on the selected restaurants. Participant 11 also have

said the same thing. According to Indeed Editorial Team (2016), product quality is critical

because it affects the company's success and helps establish its reputation in customer

markets. When businesses can produce high-quality products that continue to meet

customer demands, they can reduce production costs, increase investment returns, and

increase revenue. Therefore, the quality of the food is, indeed, important to all of the

established restaurants.
 31

“The food that they serve here is delicious. I can’t get enough of it,

especially on the pinakbet.”

Respondent 3 mentioned delicious. The taste of the food is just as important to the

quality. Respondent 16, 18, and 20, also has the same response. Customers often see some

unnoticeable details, but as long as they got a taste to the food, especially when it is good,

they often forget those details. Food isn’t just about the scents, the spices, the tastes, and the

construction, it’s about the hard to describe moments and emotions it makes us feel. Food

can help improve our mood, but it’s not just because of how it helps fuel our bodies, but for

the way it helps fuel our souls, our hearts, and our minds (Williamson, 2021). Thus,

delicious food can improve customers’ mood, especially when they are tired or stressed at

work.

“The food here has a distinct flavor…..”

Respondent 1 have said that a food having a distinct flavor is effective and pleasing

to customers. Respondent 4 and 8 have also said the same with the addendum of, by distinct

flavor, they meant it in a good way, which is flavorful. According to Flood (2016), flavors

have no nutritional value, their primary function is to enhance the flavor of foods. Flavors

are available in both natural and artificial forms. Artificial flavors are carefully chosen in

order to provide a wider and more diverse range of flavors. Hence, having a food that has a

distinct flavor does not mean it is not safe to eat or unhealthy. It enhances only the taste,

which makes it tastier and which is why some customers like to eat food that has a distinct

flavor.
 32

Pricing of the Product

“If I have a small amount of cash on me, that wasn’t a problem because the

price of the food is low-cost, but the taste is still good, which makes this restaurant

worth to dine in.”

Respondent 9 conveyed that, an affordable meal or food is what makes a restaurant

worth to dine in. Similar to Respondents 5, 6, 12, 13, 15, and 17’s answer. An affordable

meal is a good way to help customers to save up money and to retain them as well. Also a

great way to attract new customers to dine in to the selected restaurants. Price is an

important factor in food choice, especially for low-income consumers. Low-income

consumers were significantly more conscious of value and price than higher-income

consumers (Steenhuis et. al, 2011). Therefore, most of the respondents had the same answer

because pricing is what influences the customers’ food choice.

“The pricing is cheap and I thought that it is also an eco-friendly cost.”

Respondent 7 have said that economically priced food is what makes a good

restaurant, as well as making the marketing mix strategies effective on the selected

restaurants. Furthermore, pricing strategy is a vital part for developing a marketing mix

strategies. Accurate pricing of menu items is critically important for restaurants to succeed.

If your prices are too high, your competitors will get your business. If your prices are too

low, you’ll miss out on profits (Allen & Company, 2014).

 CHAPTER V

SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter summarizes the study and presents the salient findings, the conclusions

drawn from these findings and the recommendations made by the researchers.

Summary

The main aim of this study was to determine the levels of the marketing mix

strategies of four selected restaurants in Vigan City as perceived by the customers. The

level of marketing mix strategies of selected restaurants in Vigan City as perceived by the

customers was measured in terms of product, price, place and promotion. The overall

level of the marketing mix strategies of selected restaurant in Vigan City as perceived by

the customers was also studied. Moreover, the factors that affect the marketing mix

strategies effectiveness on the four selected restaurants was also determined.

The population of the study were 5 (25%) customers of each restaurants with the

total of 20 (100%) respondents.

The research made use of quantitative data gathered through a questionnaire, as

well as qualitative data gathered through a short interview. The quantitative data are

coded, tabulated, and computerized by researchers with the help of the statistician. The

statistical treatment used was Mean. The qualitative data undergone through thematic

analysis, coding, and formulation of themes.

 34

Findings

After analyzing and interpreting the data, following are the findings:

1. The level of the marketing mix strategies in terms of products is “very high” with

(x= 4.22) while pricing (x=4.07), place/ location (x=4.02) and promotion (x= 3.54)

were all descried as “high”.

2. The overall mean level of marketing mix strategies was (x= 3.96) which is

described as high.

3. Respondents’ perception on what makes the marketing mix strategies effective

depend on the quality and pricing of the product (food).

Conclusions

Based on the findings of this study, the following conclusions are drawn:

1. The level of marketing mix strategies in terms of Product is very high whereas

pricing, place/ location and promotion is high.

2. The overall level of marketing mix strategies in terms of products, pricing, place/

location and promotion is high.

3. The quality and pricing of the product is important to make the marketing mix

strategies effective.

Recommendations

In the light of the foregoing findings and conclusions, the following

recommendations are forwarded:

1. Full support and close monitoring of promotional strategies of the restaurants to

advertise their products should be undertaken.

 35

2. While the overall level of marketing strategies is indeed high, the owners should

still come up with better strategies that will attract more customers.

3. Continuous improvement on not only the product, but to all the components of the

4p’s is needed to retain and attract customers.

4. Future researchers and senior high school students may utilize the respondents’

perceptions to gain further understanding of the Marketing Mix Strategies of

restaurants and other businesses.

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APPENDICES
 41

APPENDIX A

Letter to the Manager

 42

APPENDIX B

Letter to the Participant

 43

APPENDIX C

Informed Consent Form of the Participant

 44

APPENDIX D

Questionnaire
45
 46

APPENDIX E

Interview Questions

1. What is your favorite product (dish/meal) in this restaurant? (name of the restaurant)
Why do you say so?

2. Do you think that the price of the product (dish/meal) in this restaurant (name of the
restaurant) is relevant to the quality of the product (dish/meal) itself? If yes, why do
you say so? If not, explain why?

3. How often do you eat in this restaurant? (name of the restaurant)

4. Is the place or location of this restaurant (name of the restaurant) accessible, knowing
that we are in the middle of a pandemic? If so, can you provide a short explanation?

5. How did the owner promote their restaurant?

6. What are your experiences on this restaurant? (name of the restaurant)

7. What are your comments or suggestions to this restaurant with regards to the 4Ps:
product, price, place, promotion?
 47

APPENDIX F
Sample Statistical Computation

Level of Marketing Mix Strategies in terms of Products as perceived by the

customers in Vigan City
Restaurant Restaurant Restaurant Restaurant As a
A B C D Whole
A. PRODUCTS
X DR X DR X DR X DR X DR
1. Meals have high
quality and tastes 4.50 SA 4.50 SA 4.35 SA 4.60 SA 4.44 VH
good.
2. Products/ Meals
are appropriate to the 4.05 A 3.90 A 4.25 SA 4.09 A 4.09 H
season
3. Meals are well
arranged and 4.30 SA 4.00 A 4.20 A 4.20 A 4.20 H
presented.
4. Restaurant offers
variety of meals in
3.90 A 3.90 A 4.15 A 4.15 A 4.15 H
meeting customer’s
satisfaction.
5. Restaurant offers
local/ traditional
4.20 A 3.90 A 4.30 SA 4.25 SA 4.25 VH
foods to the
customers.
6. Restaurant food
portion size (food
4.35 SA 4.05 A 3.95 A 4.14 A 4.14 H
quantity) served is
reasonable.

Overall Mean 4.22 SA 4.04 A 4.20 A 4.42 SA 4.22 VH

Norms: Statistical Range Descriptive Rating Overall Descriptive Rating
4.21 – 5.00 Strongly Agree (SA) Very High (VH)
3.41 – 4.20 Agree (A) High (H)
2.61 – 3.40 Undecided (U) Moderate (M)
1.81 – 2.60 Disagree (D) Low (L)
1.00 - 1.80 Strongly Disagree (SD) Very Low (VL)
 48

CURRICULUM VITAE

I. Personal Data

Full Name: Kent B. de Peralta

Nickname: Koy, Kentai

Home Address: Manueva, Santa Ilocos Sur

Birthdate: November 15, 2004

Place of Birth: Manueva, Santa Ilocos Sur

Age: 17

Gender: Male

Height: 5’81/2

Weight: 48 kgs

Religion: Roman Catholic

Email Address: jeunbi545@gmail.com

Motto: “What goes around, comes around.”

Father’s Name: Jojit C. de Peralta

Mother’s Name: Anna Lourdes Cuenta Bayugo

II. Educational Background

Elementary Education: Basug Elementary School, 2010-2017

Basug, Santa, Ilocos Sur

Secondary Education:

Junior High School University of Northern Philippines, 2017-2021

Tamag, Vigan City, Ilocos Sur

Senior High School University of Northern Philippines, 2021-Present

Tamag, Vigan City, Ilocos Sur