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A Model Analysis For Customer Repurchase Intention On Homegrown Micro and Small Retail Enterprises: Implications To An Industry Strategic Marketing Plan
A Model Analysis For Customer Repurchase Intention On Homegrown Micro and Small Retail Enterprises: Implications To An Industry Strategic Marketing Plan
A Dissertation
Submitted to
Submitted by
Farrell G. Bacabac
DMBM Candidate
May 2023
Page 2
Approval Sheet
and submitted by Farrell Bacabac in partial fulfillment of the requirements for the degree, Doctor of
Management, has been examined and recommended for acceptance and approval.
ROWENA M. LIBO-ON, DM
Chair
Accepted and approved in partial fulfillment of the requirements for the degree, Doctor
of Management
ROWENA M. LIBO-ON, DM
Dean
Abstract
homegrown micro and small retail enterprises and its implications to an industry strategic
specifically determined which among the study variables are significant predictors of the
respondents’ repurchase intention. Results show that customer experience was found to
derived satisfaction (which is one of the strongest predictor of repurchase intention) and it
is probable that due to its high correlations with derived satisfaction, its direct effect on
repurchase intention as compared to direct satisfaction. This could also mean that derived
Trust is the strongest predictor of customer repurchase intention, and the best model that
can explain 65% of the changes in customers’ repurchase intention include a high trust,
high expectation, and satisfaction of the customer that will more likely lead to repeat
purchase.
Acknowledgment
The researcher would like to express her most profound gratitude and appreciation to
the following individuals, who in one way or another, contributed significantly for the
Dr. Rowena M. Libo-on, dean of the School of Graduate Studies, for her kind support and
constant follow up that provided the researcher with proper motivation and encouragement to work
Dr. Mary O’ Penetrante , adviser, for sharing her expertise in providing suggestions,
corrections, and recommendations, from inception to the final completion of this paper.
Members of the panel, Dr. Luis A Abioda, Dr. Reynaldo N. Dusaran, Dr.
Carmen N. Hernandez, for providing the researcher with their invaluable suggestions,
corrections, and recommendations that made the successful conduct of this study;
Family member, for their unconditional support and understanding that inspired the
Above all, the God Almighty for His blessings and spiritual guidance that provided the
The Researcher
Table of Contents
Chapter 1..............................................................................................................................1
Introduction..........................................................................................................................1
Theoretical Framework........................................................................................................7
Conceptual Framework........................................................................................................8
Definition of Terms..............................................................................................................9
Customers Expectation.......................................................................................................20
Customer Experience.........................................................................................................21
Customer Satisfaction.........................................................................................................22
Customer Trust...................................................................................................................25
Repurchase intention..........................................................................................................26
Synthesis............................................................................................................................28
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Chapter 3............................................................................................................................29
Methodology......................................................................................................................29
Research Design.................................................................................................................29
Sampling Technique...........................................................................................................31
Data Gathering...................................................................................................................33
Data Processing..................................................................................................................33
Ethical Considerations........................................................................................................34
CHAPTER 4......................................................................................................................36
Chapter 5............................................................................................................................50
Summary, Findings, Conclusions and Recommendations.................................................50
Summary.......................................................................................................................50
Major Findings.............................................................................................................51
Conclusions...................................................................................................................52
Page 1
Chapter 1
Introduction
The World Bank (2020) reported that small and medium enterprises (SMEs)
account for the majority of businesses worldwide and are important contributors to job
creation and global economic development. They also reported that SMEs represent
952,969 (99.51%) are MSMEs and 4,651 (0.49%) are large enterprises. Micro enterprises
enterprises at 10.25% (98,126) and medium enterprises at 0.49% (4,716). The top five (5)
industry sectors according to the number of MSMEs in 2020 were: (1) wholesale and
retail trade; repair of motor vehicles and motorcycles (445,386); (2) accommodation and
food service activities (134,046); (3) manufacturing (110,916); (4) other service activities
(62,376); and (5) financial and insurance activities (45,558). These industries accounted
Wholesale and retail trade including repair of motor vehicles and motorcycles is
46.74% of the total MSMEs operating in the country. Regional concentration of MSMEs
is largely associated with economic activity and population size. The Philippines employs
two criteria in operationally defining MSMEs, namely employment and asset size. The
than 10 employees, small if it has 10-99 employees, medium with 100-199 employees,
53,200 people and is known as the center for commercial fish trading because of the
abundance of marine resources. Its fishing ports operate twenty fours (24) hours daily to
cater to the needs of customers coming from various parts of the country and to
complement the vibrant fish and other commercial industries. During the last few years,
there was a spiraling growth of micro and small medium enterprises (MSMEs) in the
locality specifically in the retail trade, repair of motor vehicles and motorcycles,
accommodation and food service activities, and other service activities in the retail
industry.
However, the continuing changes of the market environment and dynamism has
gradually altered not only the physical and geographical landscape of the place but also
the mechanisms involving the relationships between the retail enterprises and their
customers. It could be contended that before the influx of the big retail players, there has
been an established pattern governing the relationships between the customers and retail
owners/operators locally dubbed as “Suki”, that make them confident of their customers
repurchase decision making. The “Suki” system is an established social relationship that
binds retailers and customers in exclusive market transactions. The customer repurchase
intention in the context of the “Suki” is not arbitrary or impulsive but deliberate as what
Martin Fishbein and Icek Ajzen in the late 1960s in their theory of Reasoned Action said
that a consumer only takes a specific action when there is an equally specific result
concept of Social Exchange Theory (Liu, Leach, & Bernhardt, 2005, in Mirza et al.,
the comparison level of alternatives and a person's satisfaction. The social exchange
of quality, satisfaction with process quality) and rational evaluation (For example, trust,
However, the entrants of the leading Small Medium Enterprises (SMEs), like
Gaisano Grand, Prince Supermart, Seven-Eleven, iMart, Quixmart, Mercury drug stores,
and many other large retail enterprises in the market of the municipality have created
negative reactions and a sense of skepticism not only in terms of their survival but also on
understood and applied by various organizations to get a competitive edge. In the current
competitive dynamic business environment, marketing experts keep trying to give their
best to expend as many resources as possible to transfer dreams into reality programs that
are considered to satisfy existing customer needs and build up a long period of constant
connection with the customer (Mirza et al., 2021). Repurchase intention has emerged as
a strategic imperative for service marketing with the realization that the cost of retaining
customers is arguably less than that of attracting new customers, and can be more
profitable in the long run (Namukasa, 2013; Ostrowski et al., 1993; Reichheld et al., 1996,
Face with an impending threat for survival, this study aims to find out the
intention presumably embodied in the “Suki” system by looking into the relationships
between customers’ personal characteristics like age, sex, civil status, education, monthly
income, number of years as a customer, and residence with the perceived concepts of
expectation, experience, satisfaction, and trust in their business transactions with the
retail owners.
Likewise, it aims to find out what level of agreement on said constructs would
most likely influence customers’ repurchase intention. Mirza et al (2021), said that a
successful business can only maintain itself and survive when it has a clear image of
customers' needs and want, and a clear understanding of the constructs and concepts that
surround these needs and want (e.g. motivation, desires, purchasing power, satisfaction,
expectation, experience, etc.), the potential to build strong and long customer
relationships and partnerships with business partners, and an integrated business model.
intention but most of these studies have used self-rated customer satisfaction data.
Contemporary marketers like G. Fripp (2021), Fagus, M. (2020), Wang, Zhou, Zhang
believed that essentially customer satisfaction is the consumer’s evaluation of how well
the firm has lived up to their promises and the consumers compare their initial
expectations of likely value against their perception of the actual value they received
when they purchased or consumed the product or service. Because consumers are
comparing two aspects (prior expectations to actual delivery) they are essentially
confirming (or disconfirming) how well the organization has delivered. In services
marketing textbooks, this process is described as the Disconfirmation Model of Customer
This study hopes to provide empirical evidence of a new perspective and insights
to the local retailers in understanding customers’ repurchase intention that comes along
satisfaction) and direct response from the customers (here on referred to as “direct” level
addition to the value of the products and services which they provide.
In the same manner, local retailers, given the findings of the study will be
enabled to decide what strategic marketing initiatives they will adopt to retain their
customers and survive vis-a-vis the new market environment. Furthermore, the current
research will make a valuable addition to increasing repurchase intention literature for
marketers.
This study aimed to analyze the model for customer repurchase intention on
homegrown micro and small retail enterprises and its implications to an industry strategic
marketing plan.
1. Describe the respondents profile in terms of their age, sex, civil status, education,
indicators.
6. Determine which among the study variables are significant predictors of the
Based on the above research objectives, the following hypotheses are advanced:
H01: There are no significant differences in the respondents’ level of expectation, buying
H02: There are no significant correlations that exist between the respondents’ profile
repurchase intention.
Ho3: None of the study variables are significant predictors of the respondents’
repurchase intention.
Theoretical Framework
The study was anchored on the following theories. Firstly, the Theory of
Reasoned Action created by Martin Fishbein and Icek Ajzen in the late 1960s (as cited
by MacLeod and Nickerson, 2023). This theory posits that consumers act on a behavior
consumers are rational actors who choose to act in their best interests, like to re-purchase
consumer only takes a specific action when there is an equally specific result expected.
From the time the consumer decides to act to the time the action is completed, the
consumer retains the ability to change his or her mind and decide on a different course of
action. In this context, it is assumed that the repurchase intention of the customers is
Secondly, the Social Exchange Theory as cited in Mirza et al. (2021) and Liu,
Chou & Hsu (2016) characterized this as an emotional estimation such as satisfaction
with the conclusion of quality, satisfaction with process quality, and rational evaluation
of trust or learning.
(2001) is widely used in the marketing and information systems literature to study
consumer satisfaction and repurchase intention and behavior. The underlying logic of the
transaction. Second, after a period of consumption, they form perceptions about its
performance. Third, they assess its perceived performance vis-à-vis its original
expectation and determine the extent to which its expectation is confirmed. Fourth, they
develop a satisfaction level based on their confirmation level and the expectation on
which that confirmation was based. Finally, they form a repurchase intention based on
their level of satisfaction. It is important to note that all constructs in ECT except
expectation are post-purchase variables, and the assessment is based on the consumer’s
actual experience.
Conceptual Framework
The theories cited above were the basis for developing the paradigm as shown
below which shows the assumed relationships between the study variables. The theory
of reasoned action contends that a consumer only takes a specific action when there is an
equally specific result expected, and this could either be in the context of a fulfilled
expectation, satisfaction and experience and subsequently developed among them the
value of trust. The social exchange theory (Liu, Leach, & Bernhardt, 2005, in Mirza et
al., 2021)), likewise presupposes satisfaction with the conclusion of quality, satisfaction
with process quality and rational evaluation. And of course, the expectation
confirmation theory (ECT) by Oliver ( which features five stages of conscious analysis
The conceptual dynamics pointed out to the variables of the study with
repurchase intention within the framework of this study are further assumed to vary by
age, sex, civil status, education, monthly income, number of years as a customer, and
temporal sense, and that occurs prior to a response variable, but may not cause the
response. Figure 1 below illustrates the assumed relationships between the study
variables.
Age
Expectation Implications
Sex
Experience Repurchase to theory and
Civil Status
Satisfaction Intention practice
Education
Average monthly Trust
income
Years as customer
Residence
Definition of Terms
Age. The length of an existence extending from the beginning to any given time
of the employee Central Provident Fund (CPF) contributions and personal income tax. It
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comprises basic wages, overtime pay, commissions, allowances and bonuses but
exclude employer CPF contributions(A Singapore Govt. Website, 2021). In this study, it
Civil Status. Civil Status refers to the legal status of a contracting party with
reference to the marriage laws or customs of his/her country. In this study, it refers to the
respondents whether elementary level or graduate, high school level or graduate, college
service” (Olson & Dover, 1979, p. 181, in Ashfaq, 2019). In this study, it refers to the
10- item statements involving customer and retailers business relationships and
transactions in Estancia, Iloilo, and will be measured using a 5-point Likert Scale with
answers ranging from “Strongly disagree” to “Strongly agree.” The higher scores in this
As used in this study, it refers to the consequence of the results of the study to
model of repurchase intention considering the concepts and constructs that governs the
customer
and retailer business transactions and determines the repurchase intention of the MSMEs
the relationship between customers and service providers (Gentile et al., 2007, in
Mustikasari et al., 2021). In this study, it refers to the 10-items statements involving
customers experience vis-a-vis their expectation about their business relationship and
transactions with the retailers in Estancia, Iloilo and will be measured using a 5-point
Likert Scale with answers ranging from “Strongly disagree to Strongly Agree. The
country(Merriam Webster Dictionary, n.d.). In this study, it refers to the MSMEs own
Micro and Small Enterprises (SMEs). Republic Act No. 9501 or the Magna
Carta for Micro, Small and Medium Enterprises defines MSMEs as any business activity
engaged in industry, agribusiness, trade, and services. Specifically, micro enterprises are
those with not more than ten employees and small enterprises are those with 10 to 99
employees.
In this study, it refers to the micro and small enterprises as define in the Magna
Carta for MSMEs (RA 9501) with emphasis on homegrown micro and small retail
business relationships and transactions with the retailer/service provider and gauged in
terms of number of months or years. In this study, MSMEs refers to the Micro, Small,
in consuming the previous service again in the future (Kotler P.,2012, in Tektas et al.,
intention and will be measured using a 5-point Likert Scale with answers ranging from
Strongly disagree to Strongly agree. The higher scores in the scale will indicate higher
Residence. The place where one actually lives as distinguished from one's
refers to the municipality where the customer resides either in Estancia, Batad, Balasan,
perception about the extent to which their needs, goals and desires have been covered
completely (Rondán, Villarejo, Franco & Jesús, 2007, in Rendón et al, 2017). Positive
the value of disconfirmation, the greater is the difference between performance and
between customer’s level of expectation and experience in relation to the customers and
retailers business relationships and transactions where a difference of 1.0 or higher means
that the customer is satisfied, 0 means neither satisfied nor dissatisfied, and below 0
means that the customer is dissatisfied. Second, it was measured using a direct response
from the customer using a 5-point Likert Scale where 1 means Very dissatisfied, 2 means
never final in order to remain successful, the company must regularly update its strategic
marketing plan with new strategies and ideas. In this study, it refers to a marketing
strategy which will be developed as a result of this study in order for MSMEs maintain
and get hold of their customers amidst the threatening presence of the Small Medium
Trust. It is a belief that trusted parties will behave in accordance with the trusting
1979; Mayer et al. 1995, in Fang, 2014). In this study, it refers to the 10-item statements
on the level of agreement of customers about their trust on their business relationships
and transactions with retailers/service providers in Estancia, Iloilo and will be measured
using a 5-point Likert Scale with answers ranging from Strong disagree to Strongly
agree. The higher score in the scale will indicate higher customer trust to the
retailers/service providers.
designated service from the same company, taking into account his or her current
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situation and likely circumstances (Lacey and Morgan, 2007). The same definition was
used in this study and was measured using a 5-point Likert Scale where 1 means very
unlikely, 2 means unlikely, 3 means can’t say, 4 means likely, and 5 means very
likely.
The study analyzed the model of customers repurchase intention that included the
trust as predictor variables of the customers’ repurchase intention and its implications to
theory and practice. It used survey-correlational and predictive research design. The data
collection was conducted in February to April of s among the 403 customers of 225
micro and small retail enterprises in Estancia, Iloilo. These enterprises were located
within the 400-meter radius of Estancia’s business center where big establishments are
located.
The study was limited only to enterprises who have business permits and licenses
issued by the Business Permit and Licensing Office of the Municipality of Estancia in
2023 while the customers respondents were limited only to customers of these enterprises
who have purchased at least once within the period of the survey.
Micro and small Entrepreneurs. Results of the study will provide Sari-sari
store owners and other micro enterprises operators in the municipality empirical data that
would strengthen and further develop the dynamics and mechanisms of the existing
model to get hold and maintain their customers regardless of the continuing changes in
Industry Associations. The result of the study may enable them to evaluate
their marketing strategies e.g., re-training their employees on how to handle customer
marketing needs, complaints and assess customers post-marketing needs not only to
complement what micro enterprises are doing to their customers but also to ensure
competition in terms of dealing with customers and winning their repurchase intention.
Local Government Unit Results will help them identify strategies to help
local micro and small enterprises to be more competitive despite the emergence of
medium and large enterprises. The results of the study will also serve as inputs that will
enhance business climate in the locality and the development of policies that would
Department of Trade and Industry. The results will provide them of new
Estancia which will enabled them to develop effective business development programs.
Consumers. The results will also benefit the consumers in a way that the
satisfaction, and trust, as well as their repurchase intention which will eventually enabled
Policy Makers. The results will also benefit policy makers in a way that they
will have better understanding of the plight of microenterprises which will eventually
enabled them to formulate better business and related policies to better regulate business
operations in municipalities.
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Academe and future researchers. The results will be of used in the academe
and research institutes as evidence of the kind of business environment as they search for
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Chapter 2
discussion on the theoretical and conceptual background of the study namely: (1)
Experience; (4) Customer’s Satisfaction; (5) Customer’s Trust; and (5) Repurchase
Intention
briefly as follows (see Ajzen & Fishbein, 1980; Fishbein, 1980; Fisbein & Ajzen, 1975,
for fuller accounts). The most proximal cause of behaviour is behavioural intention
attitude (one’s evaluation of the behaviour) and subjective norm (one’s evaluation of
what important others think one should do), either of which might be the most important
determinant of any particular behaviour. Usually, this is revealed empirically by the beta
regressed on to attitude and subjective norm. If the result is a larger attitude than
subjective norm beta weight, the behaviour is deemed to be more under attitudinal than
normative control, but if the reverse is true, then the behaviour is deemed to be more
under normative than attitudinal control. In either case, then, it is desirable to know what
the behaviour. Attitude is determined by behavioural beliefs (beliefs about the likelihood
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important others think one should do and how much one is motivated to comply with
those important others. Both attitude and subjective norm are assumed to be determined
This theory posits that consumers act on a behaviour based on their intention to
create or receive a particular outcome. In this perspective, consumers are rational actors
who choose to act in their best interests. According to the theory, specificity is critical in
the decision-making process. A consumer only takes a specific action when there is an
equally specific result expected. From the time the consumer decides to act to the time
the action is completed, the consumer retains the ability to change his or her mind and
decide on a different course of action. This theory supports the assumption on this study
that the repurchase intention of the customers is influenced by their satisfaction which is
determined through customers’ expectation and their actual experience in buying in the
microenterprise.
to interact with society and the environment. If a person believes that they are able to
extract more of a reward through a behaviour than they lose by performing it, then the
person
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will perform the behaviour. Conversely, when the person feels that the cost will
outweigh the benefit, the behaviour will not be performed. If someone does not value
maintaining a relationship, or is distrustful and does not expect others to follow through
with the reward, then the balance would be shifted toward anticipating a lower worth to
Liu, Leach, & Bernhardt, 2005, in Mirza et al.,( 2021) proposes that an
emotional estimation such as (satisfaction with the conclusion of quality, satisfaction with
process quality) and rational evaluation (For example, trust, learning) (Chou & Hsu,
2016).
marketing and information systems literature (Bhattacherjee 2001, Oliver 1999) to study
consumer satisfaction and repurchase intention and behavior. The underlying logic of the
ECT framework is described by Oliver (1999) and Bhattacherjee (2001) as follows: First,
Second, after a period of consumption, they form perceptions about its performance.
Third, they assess its perceived performance vis-a-vis their original expectation and
determine the extent to which their expectation is confirmed. Fourth, they develop a
satisfaction level based on their confirmation level and the expectation on which that
confirmation was based. Finally, they form a repurchase intention based on their level of
satisfaction. It is important to note that all constructs in ECT except expectation are post-
purchase variables, and their assessment is based on the consumer’s actual experiences
Page 20
with the supermarket retailer. The ECT theory provides an easier flow to understand a
26304471/Review_theories_Expectation).
ECT explains that the user purchasing experience has a significant influence on
behaviour (Dabholkar, Shepherd, & Thorpe, 2000). If the perceived value of good or
customers more likely would use IT for online purchasing (Bhattacherjee, 2001, in
Customers Expectation
(Olson & Dover, 1979, p. 181). EXP is the users’ perception and feelings about product
or service. Diverse researchers have defined that EXP is a crucial element of SAT and
suggested on how to meet, fulfil, and manage such circumstances (Boulding, Kalra,
Staelin, & Zeithaml, 1993; Kotler, 2000, in Ashfaq et., 2019). It is crucial to manage
expectation to achieve a high level of satisfaction (Hsieh, Yuan, & Kuo, 2011).
explains the post purchase behaviour and customer satisfaction as a function compiling
(https://www.academia.edu/26304471/Review_theories_Expectation).
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Customer Experience
The customer experience is hard to define because each research point is diverse
(Bagdare & Jain, 2013; Barari & Furrer, 2018; Barari et al., 2020). Previous researchers
explain the customer experience as people who interact indirectly or directly with the
company in service, brand, and products (Meyer & Schwager, 2007). Customer
experience also concerns service such as brand, process, setting, provider, and offering
(Jaakkola, Helkkula, & Aarikka-Stenroos, 2015). Another study also mentions that
customer experience considers the customer to be a leading role during the shopping
activity. It catches up the affective and cognitive purpose in offline and online shopping
(Kawaf, & Tagg, 2017; Klaus, & Maklan, 2013; Rose et al., 2012; Rose, Hair, & Clark,
2011). In detailed, affective and cognitive aims are related more to experience than the
aspects as affordability, accessibility, service, tenant variety and retail mix, open comfy
environment (Calvo-Porral, & Lévy Mangin, 2019) Product assortment and perceived
convenience, promotional offers, mall tenant mix, comparison of product prices, role
playing, attitude (Idoko, Ukenna, & Obeta, 2019), store design, store atmosphere, store
stores prices, utilitarian value, hedonic value, store patronage (Ameen et al., 2020; El
Customer experience defines as the experience with the environment and the
relationship between customers and service providers (Gentile et al., 2007). Customer
experience depends on time, place, and the context that a customer is in (Kim, & Yim,
2020). It plays an essential role in creating value. Customer experience also defines
customer interaction in the context of the product, staff service, shopping environment,
Customer experience is defined as the experience with the environment and the
relationship between customers and service providers (Gentile et al., 2007). Customer
experience depends on time, place, and the context that a customer is in (Kim, & Yim,
202
Customer Satisfaction
Organizations are more customers oriented they have to satisfy their customers, the
satisfied customer enables organization to retain more customers, which results in high
sale turnover, higher productivity and profit to the organization. Customer satisfaction is
related with loyalty of the customer and financially stable performance of the firm
towards repurchase intention. Now customers no longer demand only the product but
they also require a satisfactory service package with the product (Banerjee and Singh,
2013). Customer satisfaction is the critical aspect that every firm wants to earn by
Page 23
providing a competitive product mix and is the key construct that helps the firms in
retaining the customers in long run. This customer satisfaction is actually attained as a
product and not to switch the vendor. Many research frameworks in the literature
emphasize that WOM is the consequence of customer satisfaction (Anderson and Mittal,
2000; Bolton et al., 2004). The positive attitude and perception of the customer achieved
through the satisfaction leads to word-of-mouth communication and intention to buy the
satisfaction has been defined as "a global measure of a set of satisfactions with specific
previous experiences" (Yu & Dean, 2001: 235). Furthermore , Jones and Suh (2000)
suggest that satisfaction defined from this point of view, explains clearly the behavioral
need or want of a customer (Bagram & Khan, 2012). According to Cengiz (2010) it is a
post consumption experience which compares perceived quality with expected quality,
from individuals and products depending on a number of variables which include service
Page 24
quality and the individual expectations (Cengiz, 2010). Low quality service, which does
not reach the customers’ expectations, leads to consumer dissatisfaction (Bagram & Khan,
2012). According to Hanif, Hafeez and Riaz (2010) high level of satisfaction is
established when the brand fulfills the needs of customers far more than the competing
satisfied customers will generate high achievement expectation on future behavior and
the possibility of continuance purchase intention will boost. Oliver (1980) declared that
satisfaction has a positive effect on future purchase intention and the frequency of
the business’ profitability (Cengiz, 2010; Zhang & Pan, 2009; Anderson, Furnell, &
Rust, 1997) the two being positively related. Businesses therefore now elevate the role of
also quick to switch from the brand which fails to fulfil basic requirements. Furthermore,
Morgan (2009) noted that a dissatisfied customer may relate a bad experience to 5 to 15
important precursor in promoting customer repurchase behaviour (Tsai & Haung, 2007),
Page 25
Customer Trust
evaluation and it increases customers’ beliefs that service providers will not engage in
opportunistic behavior (Palmer, 2008; Kotler and Keller, 2012). In other words,
customers feel safe and confident in continuing their relationships with service providers
Ganiyu, Uche and Elizabeth (2012) concur that customer satisfaction can lead to
trust, then a repurchase decision. Trust is when a customer highly believes in a specific
product or service. According to Eid (2011) trust is a set of beliefs held by a consumer
concerning certain characteristics of the supplier as well as the future behaviour of such a
supplier. It is a level of confidence that one party has on another party that they would
behave as expected. Trust can influence the willingness to repurchase from a particular
company (Jarvenpaa, Tractinsky, & Vitale, 2000). According to Ha and Akamavi (2009)
trust based on prior affective experience plays a crucial role in facilitating consumers’
Moorman et al (1993) cited in La and Choi (2012) viewed trust using two
approaches. The first approach was as a belief, confidence or expectation about another
party’s worthiness that results from expertise or reliability. The other views trust as one’s
numerous researchers have emerged and they include (Doney & Cannon, 1997) who
Page 26
suggest two types of beliefs; honesty and benevolence, McKnight and Chervany
(20012002) who believed that the trustee possesses features that would benefit the trustor
and Ring & Van de Ven (1994) who perceived trust as some perceptions about the ethical
character.
Trust has become important in many business decisions involving uncertainty and
dependency. For consumers to establish trust with the retailers, information has to be
revealed by about the products. In reality some retailers promote products which may
mislead consumers, negatively influencing the purchase thereby hindering consumer trust
of products (Moodie, Stead, Bauld, McNeill, Angus, Hinds, Kwan, Thomas, Hasting &
separation between buyers and sellers which forces retailers to be trustworthy in order to
Repurchase intention
a designated service from the same company considering his or her current situation and
events, people are expected to act in accordance with their intentions. Repurchase
Likewise, it is defined as purchasing goods or services that have formerly felt the
quality and benefits (Filieri, & Lin, 2017; Ilyas et al., 2020). A firm must reach customer
expectations when they want their customer to repurchase their product. One of the
Page 27
crucial factors is satisfaction. Satisfied consumers can make repeat purchases compared
and growth tools in market share (Ahmed et al., 2011). While deliberating the
significance of satisfaction, (Cronin Jr, Brady, & Hult, 2000) found that repurchase
intention and customer satisfaction can be raised by offering quality services and value
added in the product. The previous study stated that service satisfaction significantly
impacts repurchase intention (Shin et al., 2013; Wen, Prybutok, & Xu, 2011, in
Although the literature has indicated that both satisfaction and trust are critical to
exploring the relationship between these two concepts. Kim et al., (2009a,b) studied trust
and satisfaction to predict repurchase intention over the pre-purchase, purchase and post
purchase periods.
online through different time phases, their study did not identify the transaction and
experience process. Most previous studies have suggested that customers would switch to
a different product or service provider based on their satisfaction judgement during the
consumption process.
service restaurants (Kim et al., (2010), perceived value and attitude (Zhang et al., 2007),
as well as service quality and innovation in mobile services or social network sites
intention (Malhotra and Kubowicz Malhotra, 2013; Fei and Bo, 2014). Early stage
Page 28
the push-pull-mooring model (Bansal and Taylor, 1999; Nimako and Winneba,
2012).
Synthesis
The review of literature reveal that the customer’s repurchase intention can be
influenced by the interplay between expectation, experience, and satisfaction with their
demographic characteristics namely, age, sex, civil status, average monthly income and
number of years as a customer but very few include trust as one of the predictor variables.
Most of the studies reviewed are done outside of the country which means that
the social and cultural idiosyncrasies of the respondents in the studies may not be
reflective of the culture and behavior of the Filipinos vis-a-vis repurchase intention and
buying behavior.
There seems to have a dearth if not absence of literature that deals with the
number of years as a customer. In Filipino culture this is related to the concept of “suki”
where good relationships are built over long period of time between the seller and the
buyer. Many of the related studies measure this aspect in terms of loyalty which can
never be construed as casual, accidental but usually repetitive behavior which means that
such customer’s and retailer’s relationship has been existing for a long period of time.
To fill these literature gaps, this study was conducted with the hope that it could
explain the customer repurchase intention model fitted to the Filipino culture and
business climate specifically among the micro and small enterprises in the municipality of
Chapter 3
Methodology
This chapter presents the research design, population and sample respondents,
Research Design
This study is a survey-correlational with predictive research design as it
analyzed the variables that can predict customer repurchase intention using ex-post facto
data from customers who have purchased from the sampled MSEs. According to Ariola
(2014), this research design is appropriate to establish a causal effect between variables or
existing conditions and to find out answers to questions but cannot manipulate the
independent variables for practical or ethical reasons. Baquedano and Lizzaraga (2013)
used this research design to identify what personality variables better predict creativity.
radius of the site of the newly operational Gaisano Grand Mall. This area includes the
Barangay Poblacion Zone 1, Zone II, Zone 111, Bulaquena, and Botongon. These
barangays are the home of homegrown enterprises, like mini-groceries, sari-sari stores,
and motor repair and cycle parts enterprises. There are two groups of respondents in this
study, namely, the retail store as represented by its owners/managers and the customers.
Page 30
To determine the sample size of retail MSEs, a list of retail businesses in the
municipality was secured from the Business Permit and Licensing Office (BPLO) of the
Local Government Unit (LGU). The list shows that there are seven hundred fifty four
(754) retail MSEs registered and have permit to operate in the Municipality of Estancia in
2023. To compute for the sample size, the following formula by (Nuankaew,
Figure 2 shows the profile of the 225 micro and small retail enterprises in
Sampling Technique
Random sampling was used to select the sample retail enterprises. The list of
the micro, small and medium retail enterprises secured from the BPLO of the
municipality served as the sampling frame. Each MSEs in the list was assigned a
number. A table of random numbers consisting of 1,500 numbers was generated using
MS Excel software and was used to randomly select the 225 MSEs.
Two customers from each 225 MSEs were taken as samples using systematic
sampling technique. However, some MSEs have few customers during the conduct of
the study resulting to only 1 customer were included in the survey. A total of 403
enterprises. This instrument contains questions on the nature of the business, the number
of employees, the average number of customers in a month, and the location of the
information from the customers. This instrument was divided into two parts. The first
part contains the personal characteristics of the respondents which include their age, sex,
civil status, education, average monthly income, and the number of years as a customer.
The second part contains a total of 50 items divided into the following: ten items on the
level of customer’s expectation, ten items on their experience, ten items on satisfaction,
A 5-point Likert Scale was used to measure the study variables, in terms of the
experts in the field of marketing, business management, and research. Then the
the reliability test using Cronbach’s alpha test shows that the instrument has an
In choosing the target MSMEs, the following inclusion and exclusion criteria was
used:
Estancia’s business center, are in any of the following barangays: Barangay Poblacion
Zone I, Zone II, Zone II, Bulaquena, and Botongon. Only the enterprises listed in the
BPLO directory of businesses with business permit and licenses for 2023 were included
in the study. As to the customers, they should have purchased at least once from
selected enterprises within the period of the survey and are willing to participate in the
survey.
Also, those retail MSEs operating outside of the 400-meter radius mentioned above were
excluded as they are assumed to be not directly affected by the competition in the
Data Gathering
Each participant was requested to sign the Informed Consent Form prepared by
the researcher. This form contains the information about the study and its purpose, the
rights of the participants to refuse to participate in the study or to stop during the filling
out of the questionnaire when they feel so, and how the gathered information will be
treated, used, stored, and disposed of considering privacy and confidentiality of the
information gathered.
Philippine University was prepared in case the participants would ask for evidence on
questionnaire was provided to them, and they were given one week to complete the
survey form before the researcher collects and verify the information provided.
For the data collection with the customers, a survey questionnaire was conducted.
There were five field researchers trained on how to distribute the survey questionnaire
using a systematic sampling technique. Each data collector was assigned to a specific
enterprise to conduct the survey among customers within the specific week of the month.
information provided, coded, and processed using the Statistical Package for Social
Sciences software.
Data Processing
The data gathered were encoded, tabulated, and analyzed using SPSS software. A
codebook was developed by the researcher to be used as guide in facilitating easy data
Page 34
analysis. Descriptive statistics were generated to describe the profile of the respondents
and mean and standard deviation were used to determine the level of expectation,
Inferential statistics such as correlation and regression with beta coefficient tests were
Ethical Considerations
This paper was subjected to plagiarism test in the University’s Review and
compliance (please see Annex for Plagiarism test). The survey questionnaire was also
subjected to content validation by three experts and to reliability testing using 30 pilot
respondents. The
Cronbach alpha test result of 0.89 shows that the instrument has internal consistency.
A consent form was prepared for the target participants to get their voluntary
willingness to participate in the study and to get their permission to use their information
for research purposes. Since the data collected pertains to customers’ personal
characteristics like their age, sex, civil status, education, average monthly income, and
trust, and repurchase intention, equal treatment among these groups of respondents were
observed. They were given the option to withdraw anytime during the interview if they
To ensure that the information gathered are protected, they were stored in a
secured locker and only the researcher was allowed to retrieve the information. After two
Graduate Studies panel of evaluators and only upon the approval of the school this
This study is totally funded by the researcher and none of its immediate and
extended family members are involved in any ways or form in the conduct of this study.
Furthermore, the researcher has no professional ties with any of the individuals involved
in the conduct of this research that may give rise to potential biases in this research work.
The data gathered such as nature of business, the number of employees, the
average number of customers in a month, and the location of the business, and
based on the respondents experience and views and therefore deem low risk
information on their part to share it to the researcher. There is also very low risk for the
filed researchers in gathering this information from the respondents. Nevertheless, the
field researchers were trained to handle untoward incidents during the interview.
Health protocols and social distancing were strictly observed by the field researchers
The results of the study will provide insights to the local MSEs to better
understand their customers with the aim of retaining them and ensuring strong business
relationships with them. Results will also benefit the local government unit particularly
in understanding what makes retail MSMEs retained their customers thereby enhancing
municipality.
Page 36
CHAPTER 4
This chapter presents the results of the data analysis and the discussions on the
The respondents profile is shown in Table 1. The mean age of the respondents is
25 years old with a standard deviation of 6.13 years. About three fourths of them three re
between 23 to 26 years old, female (74.2%), single (81.0%) and obtained a college
they have been “Suki” of the MSEs for 12 to 13 years, and four in ten respondents are
from Estancia, three in ten are from Carles and the rest are from other municipalities such
as Balasan, Batad.
The results shown in Table 1 revealed that majority of the customers of these
micro and small enterprises are young, female, single, educated, more likely received a
minimum monthly income, have long been a customer to MSEs and resides in Estancia
and Carles. These findings show that the market of these SMEs are from Estancia and
Carles young, female, educated customers with minimum disposal income, and been a
Table 1
Profile of the Customers.
Variables f %
Entire Group 403 100.0
Age
25 and below 272 67.0
26-35 years old 88 22.0
36-45 years old 43 11.0
Mean (±5.5%) 23 to 26
Standard Deviation 6.13
Sex
Male 104 25.8
Female 299 74.2
Civil Status
Single 327 81.0
Married 66 16.0
Widow 10 3.0
Education
High School 13 3.0
College 380 97.0
Monthly Income
P15,000 and below 350 87.0
P15,001 - P20,000 35 9.0
P20,001 – P25,000 10 2.0
P25,001 – P30,00 8 2.0
Mean (±5.5%) Php11,644 – Php13,000
Standard Deviation Php5,586.40
Years as Customer
5 years and below 42 10.0
6-10 years 98 24.0
11-15 years 155 39.0
16-20 years 108 27.0
Mean 12 to 13 years
Standard Deviation 4.47
Suki 98.3%
Residence
Balasan 32 8.0
Estancia 171 42.0
Batad 14 4.0
Carles 130 32.0
Others 56 14.0
Total 403 100.0
The data in Table 2 shows that the mean level of customers’ expectation is “high”
and with minimal variations in their responses is observed (mean =3.68, SD = 0.59), their
mean level of experience is “good” and with minimal variation in their responses is also
Page 38
observed (mean = 3.65, SD = 0.61). Likewise, their mean level of direct satisfaction is
“satisfied” and with minimal variation in their responses is observed (mean = 3.62,
SD=0.61). This is consistent with the mean level of derived satisfaction which is
“satisfied“ but with a bit higher variation in responses (mean = 2.06, SD = 0.93).
Moreover, the mean level of customer trust is “high” with minimal variation in
The results show that generally the customers’ level of expectation is high, so with
their experience, satisfaction (both direct and derived), and trust. This could be due to the
fact that majority of them have been customers to these SMEs for long period of time and
Table 2
Customers’ Level of Expectation, Experience, Satisfaction, and Trust.
Variables F %
Entire group 403 100.0
Level of Expectation
Very High 72 17.9
High 209 51.9
Moderate 105 26.1
Low 14 3.5
Very Low 3 0.7
Mean 3.68 (High)
Standard Deviation 0.59
Level of Experience
Very Good 63 15.6
Good 201 49.9
Moderate 116 28.8
Poor 23 5.7
Mean 3.65
Standard Deviation 0.61
Level of Trust
Very high 73 18.1
High 179 44.4
Moderate 134 33.3
Low 15 3.7
Very low 2 0.5
Mean 3.65
Standard Deviation 0.62
The data in Table 3 shows that the mean level of repurchase intention is “likely”
and minimal variation in their responses is observed (mean = 3.80, SD= 0.82). This
means that the customers are likely to purchase again to their “Suki” MSEs.
Table 3
Customers’ Repurchase Intention
Repurchase Intention F %
Very likely 74 18.4
Likely 198 49.1
Can’t decide 110 27.3
Unlikely 17 4.2
Very unlikely 4 1.0
Total 403 100.0
Mean (±5.5%) 3.80
Standard Deviation 0.82
The normality test was conducted on the independent and dependent variables to
test whether the data are normally distributed. Results show that the level of expectation
and satisfaction have outlier responses. The correction made was to exclude the outliers
Page 40
in the determination of differences in mean scores of each group resulting to seven cases
excluded from the test making the total respondents of 396 instead of 403. Then the test
age was tested using the ANOVA test set at 95% level of confidence with critical value
of 5.5%. The increase in the critical value from 5.0% to 5.5% was due to the decrease in
Table 4.1 shows the results of the test on the differences in group mean scores.
The t-test show that a significant difference exists only on the level of expectation of
male and female wherein female have higher expectation than male customers (female
mean = 3.745 and male mean =3.610, t-test = 2.131, p-value =0.034) while their level of
experience, satisfaction (bother direct and derived), and trust are all the same (p-
value>0.05). These findings indicate that the level of customer expectation vary by sex
but their level of experience, satisfaction, and trust are all the same. Therefore the null
hypothesis which state that no significant differences exists in the level of expectation of
customers is rejected while the hypothesis which states that no significant difference
exist in the level of experience, satisfaction (both direct and derived), and trust of male
and female is accepted. These findings supports the findings of Bhattacherjee, M. (as
cited
by Ashfaq et al, 2019) that sex is significantly related to customer expectation, experience,
and satisfaction with female having higher expectation than male customers.
Page 41
Table 4.1.
Differences in the Customers Level of Expectation, Experience, Satisfaction (Direct and Derived), and Trust by Sex and Education
Indicators Expectation Expe rience Satisfac tion (Direct) Satisfaction (Derived) Trust
M t-test df Sig M t-test df Sig M t-test Df Sig M t-test df Sig M t-test df Sig
Sex 0.017 1.68 394 0.094 3.62 .923 394 0.356
Male 3.61 2.13 394 0.034* 3.62 .548 394 0.584 3.64 .131 394 0.896 0.079 3.68
Female 3.74 3.66 3.63
Education
High School 3.90 1.23 394 0.217 3.73 .482 394 0.630 3.75 .690 394 0.490 0.166 0.78 394 0.434 3.80 .826 394 0.409
College 3.70 3.65 3.63 0.050 3.66
*Significant at 5% level
Page 42
Table 5 shows the results of the ANOVA test on the differences in the level
age, civil status, average monthly income, years as customer and residence.
The ANOVA test results show that the customers’ level of expectation,
experience, satisfaction (both direct and derived), and trust do not vary by age (p-
variables vary by marital status (p<0.05), except the level of direct satisfaction (p-
show that married customers have higher level of expectation than single
married customers have higher level of direct satisfaction than single customers
(mean diff = 0.27141, p-value=0.05), married customers have higher level of trust
On the other hand, the level of expectation, direct satisfaction, and trust do
not vary by residence but the level of experience and derived satisfaction
significantly vary by residence wherein those coming from the four municipalities
(Estancia, Balasan, Batad, and Carles) have higher mean scores on these variables
This means that the null hypothesis which states that no significant
differences exist in the level of customer expectation when group by age, years as
customer, average monthly income is accepted, while the hypothesis which states
that the level of customer expectation, experience, derived satisfaction, and trust
vary by marital status is rejected. Furthermore, the hypothesis which state that no
direct satisfaction.
Page 44
Table 5.
Differences in the Level of Customers’ Expectation, Experience, Satisfaction (Direct and Derived), and Trust Grouped by Age, Marital Status, Years as Customer, Average
Monthly Income, and Residence.
Indicators Expec tation Exper ience Satisfaction (Derive d) Satisfaction (Direct) Trust
SS df F Sig SS df F Sig SS df F Sig SS df F Sig SS df F Sig
Age
Within groups 1.10 2 1.80 0.166 0.57 2 0.791 0.454 0.18 2 0.367 0.693 0.58 2 0.87 0.419 0.12 2 0.31 0.730
Between groups 120.54 393 142.29 393 100.68 393 132.40 393 134.40 393
Marital Status
Within groups 5.32 2 8.99 0.000* 3.04 2 4.278 0.015* 2.30 2 3.425 0.034* 0.32 2 0.64 0.526 2.30 2 3.42 0.034*
Between groups 116.32 393 139.82 393 132.31 393 100.53 393 132.31 393
Years as customer
Within groups 0.32 3 0.35 0.788 8.28 3 0.762 0.516 0.40 3 0.522 0.667 0.40 3 0.52 0.667 0.99 3 0.97 0.406
Between groups 121.32 392 142.86 392 100.46 392 100.86 392 133.62 392
Avg. Monthly Income
Within groups 0.55 3 0.60 0.615 0.46 3 0.427 0.733 1.84 3 2.431 0.065 0.62 3 2.43 0.065 0.36 3 0.35 0.783
Between groups 121.09 392 142.39 392 100.02 392 132.37 392 134.25 392
Residence 1.89 0.111
Within groups 1.05 4 0.85 0.490 3.68 4 2.587 0.037* 3.19 4 3.200 0.013* 1.34 4 0.99 0.408 2.55 4
Between groups 120.59 391 139.18 391 100.86 391 131.99 391 132.06 391
*Significant at 5% level; SS = sum of squares
Least Significant difference Post-Hoc Test on Level of customers’ Expectation, Experience, Satisfaction (Direct), and Trust by Marital Status.
95% Confidence Interval
Test Variables Marital Status Mean Diff Std. Error Sig. Lower Bound Upper Bound
Level of Expectation Single Married -.36238* .09885 .000* -.5567 -.1680
*
Level of Experience Single Married -.38514 .10412 .000* -.5899 -.1804
Level of Satisfaction Single Married -.27141* .10351 .009* -.4749 -.0679
(Direct)
*
Level of Trust Single Married -.20207 .07892 .011* -.3572 -.0469
Summary of differences: Age Sex Marital Status Education Years as Customer Average Monthly Income Residence
Expectation NS S S NS NS NS NS
Experience NS NS S NS NS NS S
Satisfaction (Direct) NS NS NS NS NS NS NS
Satisfaction (Derived) NS NS S NS NS NS S
Trust NS NS S NS NS NS NS
Page 45
intention.
The data in Table 6 shows the results of the test for correlations between
(direct and Derived), Trust, and Repurchase Intention. As observed, only marital
(both direct and derived), trust, and repurchase intention (p-value <0.05).
experience, expectation and satisfaction, and expectation and trust are all positive
and strong (r-values >0.5), while between expectation and derived satisfaction and
between expectation and trust are positive and moderate (r-value = 0.360 and
0.486 respectively).
experience and trust, and experience and repurchase intention (r-value >0.5). On
the other hand, negative and strong correlations between satisfaction (derived) and
experience.
trust, and retention (r-value >0.5), but weak negative between satisfaction (direct)
o.141.
independent and dependent variables. When the variance inflation factor (VIF)
was determined, it shows all VIF are less than 5.0 (Table 10.2), which indicates
Table 6
Correlations Between Independent and Dependent Variables
Variables Expectation Experience Sat (Direct) Sat (Derived) Trust Retention
Expectation r
Sig (2-tailed) .
df 0
Experience r .621
Sig (2-tailed) .000*
df 394 0
Satisfaction r .606 .716
(Direct) Sig (2-tailed) .000* .000*
df 394 394 0
Satisfaction r .360 -.508 -.187
(Derived) Sig(2-tailed) .000* .000* .000*
df 394 394 394 0
Trust r .632 .702 .834 -.141
Sig (2-tailed) .000* .000* .000* .005*
df 394 394 394 394 0
Retention r .486 .574 .607 -.149 .658
Sig (2-tailed) .000* .000* .000* .003* .000 .
df 394 394 394 394 394 0
Marital Status r .146 .096 .133 .046 .118 .170
df .000* .000* .000* .000* .000* .000*
Sig (2-tailed)
Page 47
Collinearity Diagnosticsa
Table 11 shows the results of the regression tests to determine which of the
and which regression model has the highest predictive ability on customer
repurchase intention.
As can be observed from Table 11, Model 1 has higher R and R2 values
((R= 0.680., R2 = 0.462 with p-value of 0.000) than Model 2 (R= 0.658, R2 =
0.433 with p-value of 0.000) or Model 3 (R= 0677, R2 = 0.458 with p-value of
satisfaction (direct). Model 2 includes trust only, and Model 3 includes customer
trust and experience as predictor variables. Model 1 has 65% predictive ability,
Page 48
Model 2 has 60%, and Model 3 has almost 64% predictive ability. All the three
Moreover, the coefficient test results show customer trust has the highest
value = 0.001), Satisfaction (derived) (beta = -0.175, p-value = 0.002). The least
is Satisfaction (direct) (beta= 0.104, p-value =0.156). This means that trust has the
Therefore, the best model that has the highest predictive ability is composed of
trust, expectation, satisfaction (derived) and the best predictor among these three
variables is trust. Therefore, the null hypotheses that none of the variables can
results of the study, it can be concluded that there is enough empirical evidence to
say that trust is the best predictor of customer repurchase intention and when
combined with high expectation and satisfaction, about 65% percent of the
Table 11.
Regression Model of the customer Repurchase Intention
Model Summary
Std. Error Change Statistics
Adjusted of the R Square F Sig. F
Model R R Square R Square Estimate Change Change df1 df2 Change
a
1 .680 .462 .457 .43796 .462 84.078 4 391 .000
b
2 .658 .433 .432 .44803 .433 300.984 1 394 .000
c
3 .677 .458 .455 .43868 .025 17.964 1 393 .000
a. Predictors: (constant), Total FTrust, Total SatDerived, TotalCExpect, TotalESat
Page 49
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 64.508 4 16.127 84.078 .000 b
Residual 74.997 391 .192
Total 139.504 395
2 Regression 60.417 1 60.417 300.984 .000c
Residual 79.088 394 .201
Total 139.504 395
3 Regression 63.874 2 31.937 165.954 .000d
Residual 75.631 393 .192
Total 139.504 395
a. Dependent Variable: TotalGRetention
b. Predictors: (constant), TotalFTrust, Total SatDerived, Total CExpect, TotalESat
c. Predictors: (Constant), Total FTrust
d. Predictors: (Constant), Total FTrust, TotalDExper
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Toleran
Model B Std. Error Beta t Sig. ce VIF
1 (Constant) .870 .164 5.309 .000
Expectation .229 .067 .214 3.435 .001 .354 2.825
Sat (Direct) .104 .073 .102 1.423 .156 .269 3.721
Sat (Derived) .175 .057 -.149 -3.077 .002 .589 1.698
Trust .424 .073 .417 5.832 .000 .269 3.717
a. Dependent Variable: TotalGRetention
Page 50
Chapter 5
the study.
Summary
intention on homegrown retail MSMEs as inputs to the industry strategic plan. It has the
their age, sex, civil status, education, monthly average income, number of years as a
experience, satisfaction (both direct and derive), and trust; 3) describe the respondents
level of expectation, buying experience, satisfaction, and trust when classified by profile
repurchase intention; 6) determine which among the study variables are significant
predictive research design was used. There were two sets of respondents in this study –
the 225 mangers and owners representing the micro and small retail enterprises operating
in the municipality of Estancia, Iloilo, and the 403 systematically selected customers of
these MSEs. The survey was conducted from February to April 2023 in the said
municipality.
Page 51
Major Findings
1. Majority of the customers of micro and small retail enterprises are young, female,
single, educated, more likely received a minimum monthly income, have long been a
satisfaction (both direct and derived), and trust. This could be due to the fact that
majority of them have been customers to these SMEs for long period of time
3. Customers are likely to repurchase from their “suki” retail store just like in the past.
4. Customers have high level of expectation, good experience, are satisfied (both
direct and derived) and have high trust to these retail stores and these variables do
not vary by age, sex (except expectation where female customers have higher
expectations than male customers), civil status (except expectation and experience
where married customers have higher expectation and better experience than single
ones, and residence wherein customers’ from Balasan, Estancia, Batad, and Carles
have better experience than those coming from other places like Sara, Ajuy and
other places.
level of expectation, experience, satisfaction (both direct and derived), trust, and
repurchase intention.
6. Among the independent variables, trust has the strongest predictive ability to
repurchase intention and when combined with high expectation, and satisfied
customers, the model can predict 65% of the variations in repurchase intention.
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Conclusions
1. Micro and Small retailers in the Municipality of Estancia have customers who are
young, female, single, educated, with minimum level of monthly income, have been a
2. Generally, the customers of the retail stores in the Municipality of Estancia have high
level of expectation, good experience, are satisfied and have high trust with their
“Suki” retail store and these level of expectation, experience, satisfaction (direct and
Derived), and trust are all the same across groups except on expectation wherein
female have higher expectation than males, married customers have better experience
than singles, and those coming from Balasan, Estancia, Batad and Carles have better
that due to its high correlations with derived satisfaction, its direct effect on
direct satisfaction. This could also mean that derived satisfaction is a better predictor
5. Trust is the strongest predictor of customer repurchase intention, and the best model
that can explain 65% of the changes in customers’ repurchase intention include a
high
Page 53
trust, high expectation, and satisfaction of the customer that will more likely lead to
repeat purchase.
The results of this study builds from the existing literature on customer
repurchase intention that customer expectation, experience and satisfaction are significant
Aizen (as cited by MacLeod and Nickerson (2023) posits that specificity is critical in the
decision-making process and that consumer only takes a specific action when there is an
intention. In this study it was found out that expectation is a significant predictor of
Trust was found out in this study a significant predictor of customer repurchase
intention. However, in the Theory of Reasoned action, trust is not a construct, nor in the
Social Exchange Theory as cited by Mirza et al (2021) and Lin, Leach, & Bernhardt
expands the body of knowledge on repurchase intention to include in the model trust,
need to give attention to developing customer trust, that is, in Filipino context, could also
mean developing good relationship with customers as reflected in the concept of “suki” in
Page 54
addition to satisfying customers by ensuring that their experience with the goods and
inclusion of two new elements in predicting behavioral intent, (this this study customer
repurchase intention): trust of customers to the enterprise to deliver what is expected, and
intention, trust, derived satisfaction, expectation, and direct satisfaction should be given
importance. These findings is clearly depicted in the following model shown in Figure 3
Trust
b=0.424
Expectation
b =0.229
Repurchase
intention
b =0.175
Derived
Satisfaction
b = 0.104
Direct
Satisfaction
Recommendations
From the findings and conclusions above, the following are recommended:
Page 55
predictor of customers of micro and small retail enterprises in Estancia. With this
empirical results, Sari-sari store owners and other micro enterprises operators in the
municipality should strengthen their relationships with customers and nurture trust and
enhance satisfaction among their customers as these factors more likely to results in
repurchase intention.
Business and Industry Associations. Given the results of this study, business
and industry associations should try to re-evaluate their marketing strategies and consider
trust and satisfaction in their marketing plan to enhance their ability to compete with large
shopping malls sprouting in their locality. The importance of “Suki” concept in this study
was proven to be one of the factors that glued the relationships between the seller and the
buyers. They may also consider reviewing aspect of their business operation that
strengthens trust and satisfaction such as capacitating store staff to provide services that
enhancing good relationships in the context of “Suki”, providing after ales service and
Local Government Unit Results of the study points to the differences in the
level of experience of customers coming from various places and those coming from
Estancia and nearby municipalities have better experience than those coming from other
places. It could be that those from other places experience a different business climate
as compared to those within the four municipalities and their experience could have been
influenced by this differences in business climate which could be better or less enviting,
that is why they have lower level of experience. By doing so, the local micro and small
Page 56
enterprises will be helped to become more competitive despite the emergence of medium
and large enterprises. In the same light, the local government unit may review their
policies that encourages fair competition among micro, small, medium and large
enterprises and to provide support to homegrown retail stores to encourage their growth
and development.
results will provide them of new perspectives in understanding the dynamic customers
Consumers. The results likewise will benefit the consumers in a way that the
micro and small retail enterprises will have a better understanding of their expectations,
experience, satisfaction, and trust, as well as their repurchase intention could results to
Policy Makers. The study highlighted the increasing competition among micro,
small retailers and larger enterprises in the locality and to influence customers repurchase
intention, trust and satisfaction are to be given attention. Policy makers should ensure
that business development policies are supporting and nurturing trust and satisfaction
among customers and retailers. Trust is a concept that was found by other researchers to
encourage and regulate good business practices and consumerism in these localities.
Academe and future researchers. The study found out that customer derived
measured directly by asking the customers of their level of satisfaction. This should be
Page 57
further tested using other research methodology and designs in other areas of business
management to further the existing knowledge about this alternative way of measuring
customer satisfaction. They could also expand the study that analyzes the effect of
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Baktia, G.M.Y. & Sumardjob (2021). The Effect of Demographic Factors on Intentions
https://www.gssrr.org/index.php/JournalOfBasicAndApplied/article/
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APPENDICES
Page 63
A. SOCIO-DEMOGRAPHIC PROFILE
Instructions: Please provide the necessary information or encircle the appropriate number or letter that
b. No
C. CUSTOMER EXPECTATIONS
Based on the following statements, please rate your LEVEL OF EXPECTATIONS of the store
attributes (service, products, tangibles) using the scale below:
1– Very Low 3 – Moderate 5 – Very
High 2 – Low 4 – High
I expect that the store: 1 2 3 4 5
1. Attends to my needs immediately.
5. Has an organized display that customers can easily locate what I need.
D. CUSTOMER EXPERIENCE
Based on the following statements, please rate your LEVEL OF EXPERIENCE of 1 2 3 4 5
the store attributes (service, products, tangibles) using the scale shown below:
1– Very Poor 3 – Moderate 5 – Very
Good 2 – Poor 4 – Good
1. Attends to my needs immediately.
5. Has an organized display that customers can easily locate what I need.
E. CUSTOMER SATISFACTION
Based on the following statements, please rate your LEVEL OF SATISFACTION
of the store attributes (service, products, tangibles) using the scale below:
1– Very Satisfied 3 – Neither 5 – Very
Satisfied 2 – Satisfied 4 – Satisfied
1. Immediate attention that was provided to me as a customer.
9. Product prices.
F. CUSTOMER TRUST
Based on the following statements, please rate your LEVEL OF TRUST of the store
attributes (service, products, tangibles) using the scale below:
1– Very Low 3 – Moderate 5 – Very
High 2 – Low 4 – High
I believe that the store has the ability to:
1. Attend to my needs immediately.
2. In your next purchase, how likely are you to buy new products from this store?
3. I intend to continue to purchase at least the same products over the next 6 months
4. I intend to continue to purchase at least the same products over the next 12 months
5. I intend to continue to purchase new products over the next 6 months from this store.
6. I intend to continue to purchase new products over the next 12 months from this
store.
10. I intend to purchase the same product from this store even with price increase.
A MODEL ANALYSIS FOR CUSTOMER REPURCHASE INTENTION ON HOMEGROWN MICRO AND SMALL
RETAIL ENTERPRISES: IMPLICATIONS TO AN INDUSTRY STRATEGIC MARKETING PLAN
Respondent No.:
A. SOCIO-DEMOGRAPHIC PROFILE
Instructions: Please provide the necessary information or encircle the appropriate number or
letter that corresponds to your response.
1. Age 2. Sex 4. Civil Status 3. Educational attainment
a. Male a. Singe a. Elementary c. College
b. Female c. widowed e. Doctorates
b. Married b. High School d. Master’s
d. Separated f. Others,
This is to certify that the undersigned professor edited the dissertation titled,
prepared and submitted by Farrell Bacabac, in partial fulfillment of the requirements for the
the report writing style and mechanics, technical, and forms and style in compliance with the