Lets move to chapter 2 Methodology

In Research Design:

Our study uses a descriptive-correlational research design, aimed at exploring the possible
connections between dependent and independent variables. To interpret the collected data, we have
chosen a quantitative research approach. This method involves systematically gathering quantifiable
data and employing statistical, mathematical, or computational techniques to analyze it (Fleetwood,
2020). This research design is optimally suited to assess the utilization of costing methods in coffee
shops and investigate their influence on profitability.

In Participants/Subjects of the Study:

Our study encompasses 16 coffee shop owners and managers situated in Santiago City.
Employing a total sampling method, we ensure that every single coffee shop within the city is included.
By employing this comprehensive method, we aim to gather insights that are broadly applicable to the
entire population of coffee shops in Santiago City.

In our participant selection process, we adhere to specific criteria:

The respondents must be registered businesses under the office of City Permit and Licenses.

The coffee shops must be registered as part of the Café line of business.

In Setting of the Study:

Our research will be conducted in Santiago City, Isabela, Philippines. This vibrant urban hub is
known for its bustling commercial activities, including a thriving coffee shop industry. Its strategic
location and growing population have contributed to the establishment of numerous coffee shops,
making it an ideal setting for our study. Furthermore, the active business environment in Santiago City
grants us access to pertinent financial data, facilitating a comprehensive analysis of the coffee shop
industry's profitability across varying costing methods. Our findings can potentially provide valuable
insights not just locally, but also for similar urban areas both within the Philippines and beyond.

In Research Instrument:

To delve into the impact of costing methods on coffee shop profitability, we will utilize a self-designed
and patterned survey questionnaire. This questionnaire is structured into four sections to ensure
comprehensive data collection from our participants.

Section 1: This segment focuses on collecting the demographic profile of the respondents. These insights
into the characteristics and scale of the businesses surveyed will greatly aid in analyzing and interpreting
the research findings.

Section 2: Here, we examine the implementation of costing methods by participants. With two
questions, we aim to determine the specific costing method employed by each coffee shop and how
frequently these methods are reviewed and updated. Our intention is to evaluate their effectiveness
and impact on profitability.
Section 3: Investigating the impact of costing methods on pricing and profitability, we request
participants to rate their responses on a scale ranging from 4 (Very Great Extent) to 1 (Not at All). This
section will provide valuable insights into how costing methods influence pricing strategies and business
performance, ultimately shaping competitive advantage in the market.

Section 4: We will evaluate the profitability of coffee shops in Santiago City based on their Gross Profit
Margin (GPM) and Net Profit Margin (NPM). This final section aims to provide a comprehensive
understanding of the profitability landscape of coffee shops in Santiago City.

In Data Gathering Procedure:

With a commitment to ethical practices, we adopt a personal survey approach while assuring
participants of the strict confidentiality of their information due to the sensitive nature of the topic.

Our data gathering process involves key steps:

Gathering a list of registered coffee shops in Santiago City from the City Permit and Licenses Office.

Developing a customized questionnaire, duly approved by our professor.

Actively recruiting participants, coffee shop owners, and managers, obtaining their consent through a
consent form.

Conducting face-to-face surveys to delve into costing methods, pricing strategies, and financial
performance.

Throughout the survey process, meticulous data collection and note-taking of valuable insights are
maintained for further analysis.

And lastly in Data Analysis:

Our research findings will be analyzed using the Statistical Package for the Social Sciences (SPSS)
software. This software enables us to thoroughly examine the correlation between costing methods and
coffee shop profitability. Descriptive statistics will be employed to present response distributions,
providing insights into participant perceptions. Additionally, correlation analysis will help us understand
the relationships between different variables, thereby enhancing our comprehension of the effects of
various costing methods on coffee shop profitability.