LEVEL OF SERVICE QUALITY OF SELECTED FOOD ESTABLISHMENTS

IN BROOKE’S POINT, PALAWAN

An Undergraduate Thesis Presented to the

Faculty of Palawan State University,
Brooke’s Point Campus,
Brooke’s Point, Palawan

In Partial Fulfillment
of the Requirement for the Degree
Bachelor of Science in Hospitality Management

by
AMOTO, HAZEL JOY L.
BALAHIM, RAHIM B.
DAGUINOTAN, SIENA MAE S
DELA CRUZ, FRANK JESS C.
LOMBE, PRECY S.
MARINSIL, ABDULHAMAN
PAGADUAN, NICKEY O.
OCBINA, JERABEL G.
TAHA, RAFFY A.
TUMANDAO, JESSICA A.

10 January 2022
 APPROVAL SHEET

This thesis attached hereto, “LEVEL OF SERVICE QUALITY OF SELECTED

FOOD ESTABLISHMENTS IN BROOKE’S POINT, PALAWAN” prepared and submitted
by Hazel Joy L. Amoto, Rahim B. Balahim, Siena Mae S. Daguinotan, Frank Jess C. Dela
Cruz, Precy S. Lombe, Abdulhaman M. Marinsil, Nickey O. Pagaduan, Jerabel Ocbina,
Raffy A. Taha, Jessica A. Tumandao, in partial fulfillment of the requirements for the degree
of Bachelor of Science in Hospitality Management has been examined and is hereby
recommended for approval.

KENT VOICES SIBULAN

Research Adviser

PANEL OF EXAMINATION

Approved by the committee on oral examination with a grade of ____________

VON BENJAMIN S. QUITAIN

Chairman

GILBERT TUSALEM SHELLAJEAN M. OMAR

Member Member

Approved in partial fulfillment of the requirements for the degree of Bachelor of Science in
Hospitality Management.

Approved:

PROF. WILLIAM M. HERRERA

Campus Director

Date: ______________
 ABSTRACT

AMOTO, Hazel Joy L., BALAHIM, Rahim, DAGUINOTAN, Siena Mae S., DELA
CRUZ, Frank Jess C., LOMBE, Precy S., MARINSIL, Abdulhaman M., PAGADUAN, Nickey
O., OCBINA, Jerabel, TAHA, Raffy A., TUMANDAO, Jessica A. “LEVEL OF SERVICE
QUALITY OF SELECTED FOOD ESTABLISHMENTS IN BROOKE’S POINT,
PALAWAN” Bachelor of Science in Hospitality Management. Palawan State University,
Pangobilian, Brooke’s Point, Palawan

Adviser: KENT VOICES SIBULAN

The reality of markets is that customers pay monetary means to receive its equivalent
value, whether through service or product. While it is a given that different economies survive
through this principle and even learn to manipulate it in many ways, there are a few exceptions.
The food industry, in particular, revolves around a little of both worlds. What this statement
means is that the population of customers within the food industry pay the value of their money
to receive [both] service and product.

This study is conducted to determine the level of service quality delivered to customers
by selected food establishments in the Municipality of Brooke’s Point. A descriptive survey
design was used on determining the Level of service quality of selected food establishments in
terms of profitability. The research was conducted in a small municipality named Brooke’s
Point. The study only included five (5) business owners and/or their body of staff-in-operation
such as Maruyog Ridge, Tambayan, Big Boss, Uptown and Barkadas. The basis for the selection
is solely upon the establishment’s visual popularity and the conduct of an informally pre-survey.
Furthermore, the Total respondents of this study is Two hundred forty (240), the researchers used
a random sampling method to determine the respondents. The instrument known as the
SERVQUAL Method is a survey questionnaire, it has four (4) to six (6) questions per the main
factor that shall be rated by a 5-point Likert-type scale. The data tested for analysis using
statistical formulae, deriving for frequencies, ranking, and correlation

The result showed Big Boss has an overall grand mean of =4.245238 which indicates a
significantly high service quality in all the dimensions. Tambayan has an overall grand mean of
=3.694375 which indicates a significantly high service quality in all the dimensions. Barkadas
has an overall grand mean of =4.245238 which indicates a significantly high service quality in all
the dimensions. Maruyog Ridge has an overall grand mean of =3.658088 which indicates a
significantly high service quality in all the dimensions. Uptown Coffee has an overall grand
mean of =3.985625 which indicates a significantly high service quality in all the dimensions. In
conclusion, there exists a significant relationship between the high scores on profitability as a
form of measurement for customer patronage and service quality.

The regulatory mechanism of the market between consumers and producers is not

always assured of quality. As a concluding result, the study concluded that there is a significant

relationship between the profitability (customer patronage) and service quality. This study

recommends that the idea behind customer mentality and impetus of why they receive services

in the first place be studied. This shall bring about an improvement upon the food economy of

the municipality, if not the country.

Keywords: Customers, Food Establishment, Profitability, Service Quality

 ACKNOWLEDGEMENT

The researchers praise God, the Almighty, for His blessings throughout the research, for

the successful completion of this study.

The researchers would like to express their sincerest gratitude to their research panelists:

Shellajean M. Omar, Von Benjamin S. Quitain and Gilbert O. Tusalem , for giving us invaluable

guidance towards the completion of the study. It was a great privilege and honor to work and do research

under the supervision of Kent Voices Sibulan and Ma. Katrina Pilar S. Quatain . We are extremely

thankful to the tireless efforts of our subject teacher, as well as some of the faculty and staff of the

Palawan State University Brooke’s Point Campus.

The researchers are very grateful to their parents for their love and prayers, and of course for the

financial support and sacrifices that they have provided. Our special thanks for the patience of our tita

Henessy and ate Zahir, who unceasingly extended hours and hours of guiding and educating our group, as

researchers and writers. Thank you everyone, each and every member of the group, for the sense of

humor, for the unexpected “pakain” sessions, and many more.

 TABLE OF CONTENTS

Page
TITLE PAGE…………………………………………………………………………… i
APPROVAL SHEET…………………………………………………………………… ii
ABSTRACT……………………………………………………………………………. iii
ACKNOWLEDGEMENT……………………………………………………………… iv
TABLE OF CONTENTS……………………………………………………………….. v
CHAPTER
I. INTRODUCTION
Background of the Study……………………..………………………………… 1
Statement of the Problem…………………………………...………………….. 3
Scope and Delimitations……………………..………………………………… 4
Significance of the Study…………………..…………………..……………….. 4
II. REVIEW OF RELATED LITERATURE AND STUDIES
Related Literature……………………………………………..…………………. 5
Related Studies……………………………………………..…………………. 10
Synthesis….…………………………………………………..…………………. 11
Conceptual Framework……………………………………..…………………… 12
Assumptions…………………………………………………………………….. 13
Definition of Terms…………………………………………..………………….. 14

III. RESEARCH METHODOLOGY

Research Design…………………………………………………………………. 15
Respondents of the Study………………………………………………………… 16
Procedure for Data Gathering…………………………………………………………… 16
Data Collection Procedure and Analysis………………………………………… 17
IV. RESULTS AND DISCUSSION
Results and Discussions …………………….…………………………………… 18
V. SUMMARY, CONCLUSIONS, AND RECOMMENDATION
Summary………………………………………………………………..………… 21
Conclusion………………………………………………………………..……… 21
Recommendations……………………………………………………..………… 22

REFERENCES………………………………………………………………………….. 23
APPENDICES…………………………………………………………………………… 24
PLATES………………………………………………………………………………….. 33
CURRICULUM VITAE………………………………………………………………… 38
 Chapter I

INTRODUCTION

In this section of the paper, the researcher shows how the field is operating in real life

with practicality and objectivity by proving a concise background on the concepts. The gap of

the field is also implied to establish why the paper is relevant. Furthermore, the insights by which

the researchers stated herein will be concretized by the preceding chapter.

Background of the Study

The reality of markets is that customers pay monetary means to receive its equivalent

value, whether through service or product. While it is a given that different economies survive

through this principle and even learn to manipulate it in many ways, there are a few exceptions.

The food industry, in particular, revolves around a little of both worlds. What this statement

means is that the population of customers within the food industry pay the value of their money

to receive [both] service and product.

Service, in particular, is one of the major determinants of an establishment’s popularity

hence profitability. That said, however, many restaurants struggle to maintain this aspect due to

the increasing labor wage thresholds; among many other restraints. Nevertheless, if and when

establishments traverse these restraints, a contemporary concept takes shape: Service Quality; or,

the parity of customer perception [expectation] with an establishment’s actual performance.

Service quality, in other words, draws a thin line between “good” and “bad” restaurants–

given that the market of the food industry has many establishments selling identical products. It

makes or breaks the competitive aspect of food establishments, which results from
factors such as globalization, economic and financial deregulation, government policies, and

many advanced technologies (Aftab et. al, 2016). To briefly expound on how these factors affect

the market for food, the four (4) proceeding paragraphs shall be as follow:

Globalization is carried by culture. As cultures expand and become homogenized, people

of different races crave to experience food from other cultures. The Korean wave, for example,

took the global society by storm, and food such as Ramen and Kimchi became international

sellers. For establishments to overcome the fluctuating trends, they must concur.

Economic deregulation is the loosening of government intervention including in the

business sector. When this phenomenon happens, people are more encouraged to buy food rather

than cook; or, increase grocery activity. Hence, it becomes peak season for food establishments

and restaurants face the struggle for retaining service quality [keeping up with the surge].

Conversely, the passing of government policies such as tariff-related issues or implementation of

floors and ceilings constrict economic activity, hence the establishments have to find ways in

coping with the lean seasons and not experience bankruptcy.

Finally, the role of technology is also not in the least negligible. Technologizing food

service means fewer labor costs and fewer work opportunities. In turn, however, it could

potentially increase service efficiency and satisfaction from the perspective of customers. Hence,

while keeping in mind that all types of markets basically aim to provide customer satisfaction,

service quality is crucial.

The Food Industry, however, finds it difficult to zero in on the actual driver of this

aspect–service quality–due to the subjective nature of customer taste, albeit the clear definition

of this contemporary concept. Because people have varying needs and want, food establishments

fail to cater to a general set of criteria for describing an ideal manner of shaping service quality.
So contemporary research attempts to find an appropriate measure of customer satisfaction

through qualitative and quantitative assessments.

It is implied in the preceding statement that customer satisfaction is an aspect that is hard

to predict, hence, another point worthy of discussion is the aim of repurchasing. By analyzing the

tendency of repurchase, an establishment can identify a body of customer patronage. As far as

profits and revenues go, an establishment simply needs sustainability and outsourcing abilities,

which take the form of the said customer patronage as measured by profitability. So to keep

customer patronage, an establishment must ensure a consistent performance that takes the form

of service quality. In essence, food establishments have both product and service to offer, and

with identical products popping out of different establishments, patronage establishes efficiency

and satisfaction through service quality; wherein, it can be measured by profitability.

After seeing the importance of service quality, one may overgeneralize its simplistic

nature. However, it is qualified by several dimensions, wherein some may be accused of

overlapping. Hence, the study has found five specific dimensions (reliability, responsiveness,

assurance, empathy, and tangibles) as per the adaptation of the SERVQUAL instrument, further

to be analyzed via profitability.

Statement of the Problem

The purpose of this study is to determine the level of service quality delivered to

customers by selected food establishments in the Municipality of Brooke’s Point. In doing so,

this study will seek to answer the following questions:

1. What are the levels of the dimensions of service quality for each selected food

establishment?
 2. What is the relationship of service quality to customer patronage as determined by

profitability for each selected food establishment?

Scope and Limitations

There were five food establishments that were selected out of a handful found in the

Municipality of Brooke’s Point. The five food establishments were selected based on popularity

aside from the fact that the establishments selected are qualified for the application of the

SERVQUAL Instrument. The study did not delve deeper in terms of improvement and food

quality assessments but shall solely focus on the five dimensions included in the above-

mentioned instrument. Further, it shall not consider the ignorance of this paper’s respondents

with regards to the said five dimensions. Finally, for the sake of the paper’s purposes, the

researchers shall only consider restaurants as “food establishments.”

While the study did not adopt the second part of the instrument which surveys customers

to measure the gap between restaurant perception and customer satisfaction in terms of service

quality, it was based on the profit earned by the establishment per month of operation.

Significance of the Study

This paper shall contribute very significant development on the field of knowledge for

both the professional field of business and the practical knowledge of business owners

[establishments]. On the academic side, this paper will lessen the oblique areas of the scholar’s

understanding of customer behavior and establish a more concrete interpretation of service

quality and profitability relationship. Simultaneously, business owners shall benefit by

developing a deeper understanding of customer-driven factors and how it is affected by service

quality. In other words, scholars shall hone theories that support customer satisfaction and

service relationship, and business owners shall understand how they can boost profit through

improved service better.

 Chapter II

CONCEPTUAL FRAMEWORK

In this section, the premises by which the study was constituted along with basic

assumptions were presented. It laid the foundation for creating a logical sequence on

understanding how and why the researchers have concluded studying service quality through the

analyses of profitability. It also gave precedents to establish the instrument’s accuracy and

created a clear picture of how the researchers were able to formulate the topic of the paper.

Furthermore, this section illustrated the relationship of the variable included by the researchers

and elaborated its contribution to the theories of service quality.

Related Literature

Jiang, Klein, & Carr (2002) asserted that profitability is, in fact, a logical driver of service

quality. First, they pointed out that reliability and responsiveness all depend on the labor team of

an establishment; which makes so much sense since the authors also acknowledged that the ideal

is: the more staff present, the faster and more accurate the service. In turn, they stressed that

staffing has to depend on the establishment’s profit to ensure that the cost does not outweigh the

earnings. Second, the authors noted that assurance and empathy are reliant on the efficiency of

service, which comes from the staff and technology. However, now that the internet has crash

landed into the realm of economics, most tools for assessments have dissipated into almost

irrelevance.

Given the fact that reliability has a direct relationship with the length of existence,

SERVQUAL can be seen as highly reliable in terms of measuring service quality and–since
service quality is interchangeable with profitability–profitability as well (Tate & Evermann,

2010). In another light, Tate and Evermann (2010) also acknowledged that profitability is the

main indicator of Customer patronage, vice versa. They stated that in the event that customer

patronage is lost, profitability significantly drops to a low, and when customer patronage is

observed, profitability significantly shoots up.

So, in essence, the study has built the premise that profitability is the indicator of

customer patronage and is interchangeable with service quality, measuring the perceived service

quality and profitability quantifies the gap of establishment performance.

Despite the SERVQUAL Instrument being a relatively old method in the study of Service

Quality, it has recorded very little frequency of utility. MIS Quarterly (1997) for instance

discusses how important Service Quality functions in customers’ value-received from

establishments. It also modified the instrument to fit the context that the study was aiming for.

The researchers of MIS Quarterly suffer from a number of conceptual and empirical difficulty.

Kappelman (1997) introduces several limitations and restraints to the modification of the

SERVQUAL instrument in interpreting Service Quality. In essence, however, he stated that: (1)

some alternatives to difference scores are preferable and should be utilized; (2) if used, caution

should be exercised in the inter- predation of IS-SERVQUAL difference scores; and (3) further

work is needed in the development of measures for assessing the quality of IS services.

MIS Quarterly (1997) also wrote about the imperative role of service quality in the

development of an establishment’s patronage. They emphasized the importance of a sustained

population of consumers in the survival and improvement of a thriving establishment and the

maintenance of an already-established restaurant.

Related Studies

For more than a whole decade, establishments have listed customer satisfaction as “very

important,” if not important (Speller & Jones, 1993). This implied that quality and satisfaction

must be the main drivers of success in businesses (Speller & Jones, 1993). In fact, the Marketing

Strategy (PIMS) database has shown a positive relationship between perceived quality and an

organization’s financial performance (Buzzel & Gale, 1987). From this, the paper has concluded

that profitability shall be a reliable factor in analyzing service quality.

Synthesis

The field of Service Quality in both Business and Economics are all struggling to qualify

and quantify the aspects of service quality due to the variance in the culture of an establishment’s

location. Hence, the gap exists in the objective analyses of a subjective aspect in the field of

Service Quality. In fact, it can be seen the studies cited in the preceding subsection that quality

never falls into a general and universal criterion, so data from one location varies greatly from

other locations. Hence, the researchers of this paper attempted to fill this gap by quantifying the

actual concept of Service Quality with Profitability. This logical conception will be expounded in

the succeeding portions of the paper.

Conceptual Framework

The study revolves around how the establishments perceive their service quality and how

customers receive it on their end of the bargain. Hence, in Figure 1, the researchers shall signify

the interchangeability of profitability to service quality because service quality is solely aimed

atgetting customers to buy their products. When service quality is high, customers flock since
many establishments offer the same product anyway; hence service quality becomes the

determinant for customer patronage which results in high profitability as can be seen in the

figure.

Figure 1. Conceptual Framework

Service Quality is determined by five (5) factors: Reliability or the ability of an

establishment to deliver service; Responsiveness or the ability of establishments to listen to

customer needs; Assurance or the ability to ensure reliability; Empathy or the ability to hone

services according to particular preferences of customers; and, Tangibles or the concrete things

that customers can utilize at the place of the business. In turn, profitability is interchangeable

with Service quality because customers pay to receive services. Hence, the amount of money that

customers give out is eventually reciprocated with the value-worth of service. So, when service

quality is low, profitability is low; this goes the same to a high degree. Wherein, a low degree

results in a smaller population to accommodate the services and products offered by the

establishment; conversely, a high degree would result in customer patronage.

Hypothesis/Assumption

The assumption of the paper that the five dimensions of service quality are present in all

food establishments is vital in the use of the SERVQUAL Instrument. The presence of the said
five dimensions however are varied in terms of their measurements or levels and are measured

by ordinal values–exclusively ranking or rating–assigned by customers. In this study, the

SERVQUAL Instrument shall test the following hypotheses:

Ho That high scores from the Instrument is directly related to customer patronage

H🇦 That high scores from the instrument is not directly related to customer patronage

Definition of Terms

The following terms were defined theoretically:

Business establishments – specifically pertain to restaurants.

Customer Patronage – the sustained frequency by which a particular consumer transacts with a

particular food establishment.

Profitability – the measurement of income as a result of patronage.

Service Quality – the performance of a food establishment in obtaining information and

delivering products to the customer population.

SERVQUAL – an instrument previously formulated and validated by field scholars to measure

five (5) dimensions pertaining to Service Quality.

 Chapter III

RESEARCH METHODOLOGY

In this section of the paper, the researcher delves into the method of handling [data

management] and interpreting data obtained to provide a scientific conclusion. It shall create a

literary representation of how the respondents were selected and which areas they were selected

from. Its basis shall also be justified and presented succeedingly. While these instruments and

data treatment methods are fully reliable and validated, the researchers practice utmost caution.

Research Design

This study was a descriptive survey of the service quality of selected food establishments

in terms of profitability. The survey collected data are necessary to answer the main problem

statements that utilized the interpretation of the SERVQUAL method–also known as the GAP

Method. This descriptive study shall be conducted with a verified questionnaire conducted as an

interview method of data collection, albeit the conduct of statistical treatment for a more accurate

interpretation.

The instrument known as the SERVQUAL Method is a survey questionnaire invented by

Parasuraman, Valarie A. Zeithaml, and Len Berry, which they published in 1988. It has four (4)

to six (6) questions per the main factor that shall be rated by a 5-point Likert-type scale. The

point-system shall be interpreted as follows: 5 – Absolutely; 4 – Definitely; 3 – Possibly; 2 –

Probably; and, 1 – Not at all.

Research Locale

The research was conducted in a municipality named Brooke’s Point in the southern part
of the Province of Palawan, wherein an abundance of food establishments are seen in the area

hitherto. Since there is an indefinite number of food establishments in the municipality [some are

not registered with the Bureau of Internal Revenue], the study only included five (5) business

owners and/or their body of staff-in-operation. The basis for the selection is solely upon the

establishment’s visual popularity and the conduct of an informally pre-survey. Furthermore, the

researchers have decided to conduct a selected sampling method, basically through observed data

in terms of the number of customers inside the establishments premises.

Population and Sample

The population were the owners and staff, and customers of the selected five restaurants,

namely: Big Boss, Maruyog Ridge, Tambayan, Uptown and Bar cadas. There were two hundred

respondents who were spotted inside the establishments premises within three hours.

Procedure

The researchers divided into four smaller groups and were sent to observe the flow of

customers in all restaurants in the area of the town proper of the Municipality of Brooke’s Point.

Based on the notes made by the researchers, the top five restaurants were selected.

The regular procedure started with a letter of request to allow the researchers to interview

and access their financial books. Thereafter, as scheduled, the interviewees were interviewed,

with the researchers present to answer or explain any points for clarification. Collecting data was

personally executed by the researchers in a face-to-face manner, in consideration of the

limitation of the SERVQUAL Instrument in an online execution. Researchers went to the

establishment and identified the available interviewees, for the owners and staff in the above-

mentioned establishments. Data collection proceeded for the customers, interviewing whoever
comes first, with due permission of the customer.

Materials

About half the questions in the instrument are posed as negative questions because it is a

more appropriate research design for developing and validating scales. The questionnaire was

split into two components: the first asked what level of service quality consumers expected from

an establishment and then they asked the actual service quality of specific firms. This study, in

particular, shall utilize the latter part and include sixteen (16) questions regarding the

profitability of the establishment

Data Presentation and Analysis

The interview data were classified and sorted. These were, then, tabulated and ranked

into two sections: the interview-survey results and the profitability data. The idea was for the

former and the latter sets of data to place in the same rank to conclude that there is a direct

relationship and to identify the level of service using the interpretation of the SERVQUAL

Method.

Statistical Treatment

The data tested for analysis using statistical formulae, deriving for frequencies, ranking,

correlation, and hypothesis testing as follows:

Ranking – data transformation in which numerical or ordinal values are replaced by the

rank; wherein, the top rank is 1st and the lowest is 5th.

Correlation - using Pearson’s Product-Moment Correlation, which can be a value between

-1 to 1; 0 included.

Furthermore, the hypothesis shall be tested using a rejection curve to finalize all compiled
data [including results, findings, and implications] as a part of the analyses, the procedures, and

guidelines which are based on the framework of the study.

 Chapter IV

RESULTS AND DISCUSSION

This chapter provides the results of the survey for a quantitative analysis of the data

collected from the questionnaires. The presentation of data and their corresponding discussions

were outlined in a manner that the inquiries of the study were answered, most importantly tackled

with correlated with the descriptive statistics.

1. The Dimensions of SERVQUAL (used in he Questionnaire for Survey)

The first section of the presentation of results is organized into five separate tables (refer

to Appendices A-E) showing the raw data, there is one table for every restaurant and their

respondents. The illustration of results were in tables for an effective visual presentation, which

are generally composed of the breakdown of the respondents’ answers per question.

1.1 Big Boss Restaurant Distribution Table of Service Quality pre Respondent

According to Table 1 (see Appendix A), Big Boss has an overall grand mean of

μ=4.245238 which indicates a significantly high service quality in all the dimensions. With an

average overall headcount of n=30 customers within 3 hours of service, Table 1 also shows that

μ=4.266667 is the average customer satisfaction but the minima is extreme, having a value of

x=2.5 . This implies that service is great but there are times that service is not so great.

1.2 Tambayan Restaurant Distribution Table of Service Quality pre Respondent

According to Table 2, Tambayan has an overall grand mean of μ=3.694375 Which

indicates a significantly high service quality in all the dimensions. With an average overall

headcount of n=35 customers within 3 hours of service, Table 2 also shows that μ=4.0375 is the

average customer satisfaction but the minima is relatively close to the mean, having a value of
x=3 . This implies that the service is not too great but it is consistent. Average customer

satisfaction through consistent service can explain

1.3 Barkadas Restaurant Distribution Table of Service Quality pre Respondent

According to Table 3, Barkadas has an overall grand mean of μ=4.245238 which indicates

a significantly high service quality in all the dimensions. With an average overall headcount of

n=30 customers within 3 hours of service, Table 3 also shows that μ=4.266667 is the average

customer satisfaction but the extrema is extreme, having a value of x=4.9375 with a frequency of

two and a standard deviation of δ=0.02768 . This implies that service quality is very good despite

holding a smaller patronage. However, the customer patronage has a high cohesion because the

grand mean for servqual is lower than the profitability mean.

1.4 Maruyog Ridge Restaurant Distribution Table of Service Quality pre Respondent

According to Table 4, Maruyog Ridge has an overall grand mean of μ=3.658088 Which

indicates a significantly high service quality in all the dimensions. With an average overall

headcount of n=34 customers within 3 hours of service, Table 4 also shows that the grand mean of

the average customer satisfaction is disparate compared to the minima is relatively close to the

mean, having a value of x=2.56 which is very far from the maxima x=5 . This implies that the

service quality strikingly varies depending on the customer.

1.5 Uptown Coffee Shop/Restaurant Distribution Table of Service Quality pre Respondent

According to Table 5 (see Appendix E), Uptown Coffee has an overall grand mean of

μ=3.985625 which indicates a significantly high service quality in all the dimensions. With an

average overall headcount of n=35 customers within 3 hours of service, Table 5 also shows that

μ=4.1 is the average customer satisfaction but the minima is extreme, having a value of x=3.5. It
can be inferred that Uptown Coffee has the best overall profitability among all the restaurants in

Brooke’s Point but Barkadas has the highest service quality.

2. Chi-Square Goodness of Fit Test

Figure 1.1: Chi-Square Distribution Table

Figure 1.2: Bar Graph Presenting the Chi-Square Table

Figure 1.3: The Bell-Curve Representing the Chi-Square Value as Hypothesis Testing
 The second section of the presentation of results is tabulated in order to make the Pearson's

correlation coefficient easier to extract. Based on the Data, the calculated Chi-Square Value is
2
X =4.584069. Since there were 16 categories, the degree of freedom taken by the researchers

were 15 with significance level of α =0.05 , which invokes a critical value of 24.996 . Therefore,

the Chi-Square Value is within the acceptance region of the one-tailed test conducted (See

Appendix F). In conclusion, there exists a significant relationship between the high scores on

profitability as a form of measurement for customer patronage and service quality.

 Chapter V

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

In this chapter, the conclusions derived from the findings of this study on the relationship of

customer patronage to the service quality of food establishments in Brooke’s Point are described.

The conclusions were based on the purpose, research questions, and findings of the study. The

implications of these findings and the resultant recommendations will also be explained. The

following recommendations shall be based on the conclusions of the purpose of the study.

Summary

This study entitled “Level Of Service Quality Of Selected Food Establishments In

Brooke’s Point, Palawan” measured the service quality of restaurants through the perception of

customers and their regular access to the food served in local restaurants around Brooke’s Point.

The study began with the idea that the regulatory mechanism of the market between consumers

and producers is not always assured of quality. So the common assumption is that a place with the

most patrons is with equivalent profit, which is why profit was used as the unit of measurement

for service quality. Service quality is, then, expounded among five (5) dimensions: reliability,

responsiveness, assurance, empathy, and tangibles. In essence, the study simply aims to identify

the relationship between customer patronage and service quality; using profitability as a unit of

measure for customer patronage.

The results invoke a critical Chi-Square Value that, drawing a conclusion that there exists

a significant relationship between the high scores on profitability as a form of measurement for
customer patronage and service quality. It was also noted that profitability is a sole means of

measuring customer patronage and never the other way around, meaning that customer patronage

cannot be used to measure profitability.

Conclusion

The concluding section of this paper is made clear, that profitability is a clear unit of

measurement for customer patronage instead of conducting a simple headcount. That said, the

instrument that was adopted showed how the customers receive the service being offered by the

establishments. Hence, this study makes a single conclusion that there is a clear relationship

between patronage and service quality and the overall quality of the restaurants within the

municipality are significantly high.

Recommendation

Based on the results and findings of the study, the following are recommended:

1. The study recommends that a study be conducted delving into the roots of service

quality: what constitutes it beyond the tangible aspects of an establishment.

2. This study also recommends that the idea behind customer mentality and impetus of

why they receive services in the first place be studied.

3. For the benefit of this study, another study can be conducted in a wider scale so that the

conclusions can be generalized on a nationwide scale. This shall bring about an improvement

upon the food economy of the municipality, if not the country.

 REFERENCES

James J. Jiang, Klein, G., & Christopher L. Carr. (2002). Measuring Information System Service

Quality: SERVQUAL from the Other Side. MIS Quarterly, 26(2), 145–166.

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Pitt, L. F., Watson, R. T., & Kavan, C. B. (1995). Service Quality: A Measure of Information

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PSA Editor. (n.d.). Annual Poverty Indicator. Philippine Statistics Authority.

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 Appendix A
Table 1.1: Big Boss Restaurant Distribution Table of Service Quality pre Respondent
 Appendix B
Table 1.2: Tambayan Restaurant Distribution Table of Service Quality pre Respondent

Appendix C
Table 1.3: Barkadas Restaurant Distribution Table of Service Quality pre Respondent

Appendix D
Table 1.4: Maruyog Ridge Restaurant Distribution Table of Service Quality pre Respondent

APPENDIX E
Table 1.5: Uptown Coffee Shop/Restaurant Distribution Table of Service Quality pre Respondent