Chapter 1

INTRODUCTION

This chapter presents the introduction of the study. Details of the background

of the background study, theoretical and conceptual framework, objectives,

statement of the problem, hypothesis, scope and limitations significance, and

definition of terms is provided.

Background of the Study

Profitability is one of the most important terms in business and accounting

that one can use to determine and describe a business’ long-term success.

Accomplishing profitability is essential to all businesses, as it allows them to grow. As

to Indeed Editorial Team (2023), understanding the concept and what determines

profitability can help develop better business strategies. While promotion is the

aspect of marketing that involves delivery of company, brand or product, messages

to target customers. Traditional methods of promotion, like print and television ads,

are nowadays augmented by new avenues of messaging made possible by digital

communications. Several tools are used by companies to aid the delivery of both

paid and unpaid promotional methods. Each tool contributes a different way to reach

customers and achieve communication objectives (Kokemuller, 2019).

Meanwhile, there have been studies made previously about how promotional

tools affect a business’ profitability. On the other hand, these studies concentrate on

explaining how strategic management adheres to affect business profitability.

Previous study discussed the marketing strategies used to retain current and to

increase new customers, elaborated the factors influence to business efficiency using

marketing strategies. It also covered the significance of branding in marketing tactics

and the relationship between marketing strategy and marketing mix effectiveness. As

the country’s economy and supply chain is on the path recovery, the food service
industry has recovered in terms of demand. The food service market in the

Philippines is highly driven by the rise in value-conscious consumers willing to try

new restaurants with a wide range of menu options. The increasing consumer

preference for convenient, on-the-go food options has become another primary

driving factor. The changing food consumption patterns and the increasing influence

of international cuisines on food consumption are prompting consumers to spend on

various types of international cuisine-based foodservice restaurants (Malicha, 2022).

In addition, this bustling sector is marked by fierce competition, demanding

innovative approaches to marketing and profitability. Shawarma is commonly popular

among high school or college students and professionals. In 2019, street stalls and

kiosks accounted for 43 percent of the total food service establishments in the

Philippines, or equivalent to over 41.2 thousand units. Shawarma and burger are one

of the fastest-growing food trends in the Philippine market, you may see various

brands and well-established companies coming up with their spin to shawarma.

Shawarma stalls can be found almost everywhere, to streets, malls, and LRT

stations, with dozens of them, dotted around an area, and yet they continue to grow,

which means that demand is also growing. In the vibrant culinary landscape of

modern cities, the burger and shawarma stalls have emerged as key players,

catering to diverse palates with their mouthwatering offerings (Rey-Franc, 2019).

Subsequently, potato is currently ranked as the world's fourth most

important food crop after rice, wheat and maize (Zhang et al. 2017). As a raw

material, potato is of particular interest because it can be consumed in diverse forms.

Indeed, fried potatoes are widely consumed followed by boiled and baked potatoes.

There is a unique product like "Rainbow fries" which are not offered by other food

stall in the area. This is a snack type product which is new and affordable to the

customer which consists of healthy ingredients and combination of other products

that gives satisfaction to the customers. The Rainbow Fries offer a wholesome and
secure option that's bound to satisfy not just regular customers but also health-

conscious individuals seeking a savory yet nutritious snack.

People enjoy the foods produced from different countries. Hence, “Home

Slice” pizza planned to establish a new concept for a new tasted pizza that suit the

Filipino taste. This new concept is created to trend how Filipinos are creative with its

purpose to serve and satisfy the customers. People tend to prioritize affordable options

over spending extensively solely on pizza purchases. Thus, setting up a business, such as

a pizza place, with both profitability and affordability in mind, coupled with a strong

marketing strategy, will significantly enhance the success and value of the venture.

Pizza is eaten all over the world because of its simplicity and taste. Given its

importance in the Italian diet, this paper provides a qualitative insight into fresh pizza

consumption for the first time.

Furthermore, pares, commonly known as beef pares, is a Filipino dish

consisting of braised beef, originating from the Philippines. It is particularly

associated there with small neighborhood restaurants, called carenderias, which

specialize in economical meals for local residents. This traditional comfort food is

commonly found in many Filipino establishments which all have their signature pares

recipes.

Finally, this study can improve marketing strategies, understanding which

promotional tools are most effective in attracting and retaining customers can lead to

more targeted and cost-effective marketing campaigns. This knowledge can help stall

owners allocate their resources efficiently for maximum impact. Implementing

effective promotional strategies can lead to increased sales and revenue. By

identifying and leveraging the right tools, stall owners can optimize their profitability.

This research has the potential to provide actionable insights that can lead to more

effective promotional strategies, ultimately driving profitability and long-term success

for burger and shawarma stalls. Acknowledging their right to comprehend their life
appears to be a crucial issue that has to be looked at as knowledge of the plight of

food stall operators in particular sectors of our society. Due to this viewpoint, the

study will investigate the daily accounts, experiences, and financial success of food

stalls in Trece Martires City, Cavite.

Theoretical Framework

Sales Promotion Theory is the study of increasing short-term sales revenue.

This study can be conducted readily and effectively as the results can be measured

quickly and, because of the narrow focus of the promotion, other factors can be

tightly controlled for. Sales promotions are a source of some debate, as some argue

that increasing short-term sales does not lead to long-term profitability. Others argue

that the benefits of creating more income for the company in the short term allows

that company to more rapidly grow to gain a larger market share. While promotions

come in many different forms, most fall into three categories: Push, Pull, and

Combination (Dick, 2017).

On the other hand, the strong theories of promotion generally suggest that

advertising is a great tool for marketing management as it enhances people’s

knowledge and influences their attitude to buy a product that one did not perceive to

buy before. The proponents of strong theories of promotion, therefore, insist that it is

an essential tool for augmenting the promotional mix of a product, as pointed out by

Chris Hackley. Moreover, he further argues that there are numerous intellectual and

cognitive paradigms that advertising employs to manipulate the customer into buying

a product. Weak theories of advertisement, on the other hand, are also a great tool

for the promotional mix; however, marketing management only uses them to increase

the stock of knowledge in consumers to increase brand awareness by increasing

their stock of knowledge. According to the sales promotion theory and strong theories
of promotion or advertising, it will be possible to find the most profitable promotional

strategies for burger stalls operators (Lewis, 2020).

Objectives of the Study

The study aims to identify the promotional tools affecting profitability of Micro-

businesses in Trece Martires City, Cavite. This study specifically has the following

objectives:

1. Determine the promotional tools used in food stalls

2. Identify the level of profitability of food stalls in terms of

2.1 Revenue

2.2 Profit Margin

Conceptual Framework

Promotional Tools Business Profitability

 Push Strategy  Revenue

 Pull Strategy  Profit Margins

 Combination Strategy

The conceptual framework adopted for this research study revolves around

the impact of promotional tools on business profitability in the context of food stalls.

This framework provides a theoretical foundation for understanding how different

promotional strategies, represented by the predictor variable, influence the financial

performance of these small food businesses, as measured by the criterion variable,

business profitability.

Statement of the Problem

This study generally aims to determine the promotional strategies used by

burger stalls to boost their financial performance. It specifically seeks to ascertain the

expansion of food stalls and the effectiveness and efficiency of the promotional tools
employed by them in terms of business profitability. Specifically, it intends to answer

these following questions:

1. What are the promotional tools used in food stalls?

2. What is the level of profitability of food stalls in terms of:

2.1 Revenue

2.2 Profit Margin

3. Is there a significant relationship between promotional tools and business

profitability?

Hypothesis

There is no significant relationship according to the level of profitability in

using promotional tools.

Scope and Delimitations

This research study will focus on investigating the impact of promotional tools

on the profitability of food stalls specifically located within Trece Martires City, Cavite.

The study's primary subject will involve the owners or managers of these food stalls

in the specified area. The research will be conducted with the specific boundaries

and limitations. The study will be restricted to Trece Martires City, Cavite, and its

surrounding areas. Therefore, any findings or conclusions derived from this research

may not be generalizable to other locations. This study will exclusively examine

Shawarma and Burger food stalls. The findings and insights may not be applicable to

other types of food businesses or different industries. It will involve owners or

managers of the selected food stalls in Trece Martires City. Responses from other

stakeholders, such as customers or employees, will not be considered within the

scope of this study. The study will analyze the impact of various promotional tools

employed by food stalls. However, it will not delve into other aspects of business

management, such as operations, pricing, or product quality, except where they

directly relate to the effectiveness of promotional tools. This research will focus in the
current period, and the findings may not account for changes in the business

environment, customer preferences, or economic conditions beyond this period.

Significance of the Study

This study gives great importance to the following benefits that may use this

study as an instrument to facilitate their decision-making, further improve their

existing products, and develop methods. This may also help them establish a great

competitive advantage over their competitors and reach the company's objective of

becoming a well-known burger and shawarma stall in Trece Martires City. The results

of this study will be of great benefit to the following:

To the researchers. This is beneficial to them because they intend to

determine the promotional tools and business profitability among Burger and

Shawarma Stalls in Trece Martires City, Cavite.

Consumer of Trece Martires City, Cavite. Consumers will benefit from this

because it will help them know what is worth buying. It also results in consumer

satisfaction and loyalty.

Students of Trece Martires City, Cavite. This study will serve as a

reference in making decisions about buying from stalls. This study also helps in

providing buying guidelines that are beneficial for their buying roles. It may help the

students because it may serve as their reference for buying guidelines from which

they can benefit.

To future researchers. This is beneficial because this study may also serve

as a similar or related study for future researchers as well as a reference or research

material. It also helps in gaining valuable information regarding the topic for future

use.
Definition of Terms

The following terms are operationally defined in this study:

Business Profitability. In this study, business profitability is the ability to gain

profit among Shawarma and Burger Stalls in Trece Martires City, Cavite.

Combination Strategies. Integrated promotional approaches combine

elements of both push and pull strategies. This category includes techniques that

blend short-term incentives with long-term relationship-building efforts to maximize

customer acquisition and retention in Trece Martires City, Cavite.

Economic Conditions. Economic factors such as inflation rates,

unemployment levels, and overall economic stability can have a profound effect on

consumer spending patterns. These conditions may influence the financial

performance of Shawarma and Burger Stalls in Trece Martires City, Cavite.

Location. The geographic location of a food stall can significantly impact its

customer base, foot traffic, and accessibility. In Trece Martires City, Cavite, it may

have varying levels of competition, consumer preferences, and economic conditions,

all of which can influence business profitability.

Profit Margins. Profit margins are the percentage of revenue that remains as

profit after accounting for all expenses. A higher profit margin indicates greater

profitability for the business, while a lower margin may signify financial challenges

among Shawarma and Burger Stalls.

Promotional Tools. Promotional tools refer to the marketing strategy used in

Shawarma and Burger Stalls in Trece Martires City, Cavite to gain profit.

Pull Strategy. Pull strategies, on the other hand, focus on creating a

demand for the product or service, thereby "pulling" customers in. These strategies

may involve the use of social media promotions, loyalty programs, and various

customer engagement initiatives to build brand loyalty and attract repeat business in

Trece Martires City, Cavite.

 Push Strategy. These include tactics aimed at "pushing" products or services

to customers. Examples of push strategies relevant to the fast-food industry are

discounts, limited-time offers, and other short-term incentives designed to stimulate

immediate purchases among Shawarma and Burger Stalls.

Revenue. Revenue reflects the total income generated by the Burger and

Shawarma stalls, accounting for sales from their products or services. It is a

fundamental indicator of business performance.

 Chapter 2

REVIEW OF RELATED LITERATURE

Profitability

Profitability on Foreign Countries

Although transition economies experience significant institutional

transformations that vary in their pace and magnitude, our understanding of how

such changes influence firm performance is rather limited. We examine how

variations in institutional reforms and international openness in 16 transition

economies in Central and Eastern Europe (CEE) influence firm profitability. We

enhance the understanding of this subject by showing that such institutional changes

have different effects on the competitive advantages and in turn profitability of

domestic firms and foreign subsidiaries.

Our analysis of over 230,000 observations reveals that institutional reforms

benefit domestic firms. Conversely, a completely different pattern emerges for foreign

subsidiaries, indicating that institutional reforms have negative consequences for

their profitability. Hence, in contrast to the established assumption that developed

institutional environments are advantageous for foreign subsidiaries, the nature of

institutional changes makes domestic firms the main beneficiaries (Kafouros, 2016).

Moreover, in 16 transition economies in Central and Eastern Europe (CEE),

this research project explores how variations in institutional changes and global

openness affect corporate profitability. This deepens our understanding of the topic by

demonstrating how institutional changes affect local and overseas subsidiaries'

profitability and competitive advantages in various ways. The researchers needed

country-level data on institutional development and openness as well as firm-specific

longitudinal data for both domestic and foreign-owned businesses in order to test their

hypothesis.
 Profitability in the Philippines

The study analyzed the profitability level of Fried Onion Small Business in

Palu City, influenced by Patronage Buying Motives (PBM), which consist of company

reputation, location of sales, selling price and guarantee to profitability. The

population of this study was 52. Population was chosen based on the small business

that still survives in the fried onion business as a local business. The sample taken

by purposive sampling was 35. Data collection was carried out by distributing

questionnaires to the managers of fried onion small businesses. The analytical tool

used is multiple linear analysis. The results showed that the F test of PBM had a

significant influence on profitability at 0,822 or 82.2%.

This means a very strong influence of the value of PBM. T-test shows that

corporate reputation is of significant value of 0,286, location of sales – 0,426, and

selling price has a significant value of the 0.235 influence on profitability, except

guarantees that do not affect profitability because the value of 0.151 is less than the t

table value of 2.0395. The impact of this study implies that small food businesses do

not really need a guarantee like electronic products, because reputation and quality

have become their guarantee (Totanan, 2021).

Profitability on Macro-business

The main objective of this study is to investigate the impact of

macroeconomic variables on Islamic banks’ profitability in Brunei. The sample

includes Bank Islam Brunei Darussalam (BIBD) from 2012 to 2016. Profitability was

measured by Return on Assets (ROA) and Return on Equity (ROE) while

macroeconomic variables included were GDP growth rate, inflation, interest rate,

exchange rate, oil prices, competition, and money supply. Data was obtained from

DEPD, AMBD, and IMF annual reports. The fixed effect panel regression technique

was adopted to measure the impact of each variable on Islamic banks’ profitability

using Stata 15.

 The findings revealed that GDP growth rate, inflation, exchange rate, oil

prices and money supply have a significant and a positive impact on profitability.

While oil prices, GDP and inflation are the most significant variables, exchange rate

and money supply are the least significant determinants of profitability. The study

therefore recommends the regulators and policy makers to discover alternative ways

to rejuvenate the economic and the financial system. Islamic bankers may revamp

their marketing strategies to reduce the impact of macroeconomic variables. This

study has vigorously contributed to the existing literature of Islamic banks’

profitability, in the context of a single country analysis, particularly in (Ali et al., 2018).

This study actively contributes to the body of knowledge on the profitability of

Islamic banks in the context of a single country analysis, notably in Brunei, by

examining the effects of macroeconomic factors on the sector's performance in

Brunei.

Profitability in Medium Business.

Small businesses create 50% of all jobs in the United States, but at least 50%

of all newly founded small businesses have failed since 2006, and only 1/3 have

survived beyond 10 years. Small businesses have a high chance of failure in the first

5 years due to a lack of sustainable strategies. The purpose of this multiple case

study was to explore the strategies small business owners need to sustain their

business beyond 5 years in a purposefully chosen county in Michigan. A conceptual

framework was constructed based on the stakeholder theory and its derived theories

to provide a theoretical background and explore the sustainable business strategies

used by the owners.

Five small restaurant business owners who sustained their businesses for at

least 5 years were purposely sampled. Data were collected via semistructured

interviews and member checking was used to ensure the participants concurred with

all transcripts; and triangulation was used to analyze a combination of synthesized

interview data, reflective interview notes, and business financial documents.

Computer software was used to analyze the data and to generate themes with their

categories from the data automatically. From the data analysis, 4 themes emerged

from the triangulated and analyzed data associated with small restaurant

sustainability.

The 4 emergent themes were that education enhanced owners’ strategies

and sustainability, personal traits drove owners to their business success, marketing

and seasonal strategies assisted them in strategic planning and brand building, and

business growth strategies assisted them in innovation and environmental

management. The success of small businesses can generate jobs, stimulate the

economy, and increase domestic and government revenue (Pepaj, 2018).

Dritan Pepaj conducted a study in Michigan, United States, to examine the

profitability of medium-sized businesses. The objective of this multiple-case research

was to investigate the techniques that small business owners require to sustain their

firms for more than five years in a specifically chosen county in Michigan. To give a

theoretical foundation and to investigate the owners' sustainable business strategies,

a conceptual framework based on stakeholder theory and its associated theories was

built. This survey included small restaurant proprietors as defined by the United

States. SBA (2014), which provided solid facts about their life experiences that

informed their long-term business objectives. The study also includes implications for

practice and future research recommendations.

The Micro, Small, and Medium Enterprises (MSMEs) play a significant role in

developing the Philippine economy by reducing poverty and creating jobs for the

country's growing labor force. This study aimed to unveil the financial management

practices and challenges confronting the MSMEs in Danao City, Philippines. This

research applied the descriptive correlational research method and was conducted

among the MSMEs that are operating in Danao City, Cebu. The respondents were

the 354 owners and employees of MSMEs. They are chosen using the cluster-

sampling technique. This investigation further utilized a researcher-made survey tool

to gather vital information on the profile, financial management practices, and

challenges faced by the MSMEs.

Frequency, simple percentage, weighted mean, Chi-square test of

independence, and ANOVA were used to treat the gathered data. The study revealed

that the financial management system was moderately practiced. It was concluded

that the MSMEs management does not practice the generally accepted standards on

the financial management and control of the business, which poses some threats on

its sustainability considering that their predominant size, the volume of assets, and

revenue earned is low. The researchers strongly recommend that the local

government officials enact city ordinance on the vital role of MSMEs in complying

with the governmental regulations to improve business transactions in regional

offices using the proposed position paper (Anoos & Gimena, 2020).

The paper investigated the essential significance of micro, small, and medium

enterprises (MSMEs) in the Philippines, specifically Danao City. A descriptive

correlational research approach was constructed in this research, which included 354

MSME owners and employees. Furthermore, the purpose of these studies was to

assess their impact on the economy, identify challenges faced by these enterprises,

and formulate effective policies and support mechanisms to foster their growth,

entrepreneurship, and contribution to sustainable economic development. This also

included recommendations and implications for future researchers as well as local

government ordinances.

Profitability in Micro Business

This research covers micro-entrepreneurs with BMBE certification in the

Province of Bataan, Philipine. Impact assessment of BMBE will be measured in

terms of profit maximization, increased capitalization, effective marketing tools,

improved technology utilization and increased job generation. Questionnaires are

provided to BMBE certificate holders to determine the level of impact on the growth

and development of micro-entrepreneurs. The quantitative approach is employed for

this study to understand the general characteristics of the population using survey

questionnaires.

The appropriate sample for this study was determined using statistical G-

Power Analysis Software. The statistical tests used were weighted mean, frequency

and percentage for the descriptive statistics while for inferential statistics, paired

samples t-test, and regression analysis were utilized. Weighted mean was utilized to

describe the BMBE incentives paired samples t-test was used to compare the growth

and development of the previous and current years. The frequency result for micro-

entrepreneurs shows that respondents “Sometimes” avail BMBE incentives. Results

showed that BMBE incentives availed by owners proved to have no significant impact

to profit maximization. Meanwhile, BMBE incentives have a positive significant

increase on capitalization. Lastly, the average job growth rate of the respondents is

237% (Alera et al., 2023).

The study utilized a quantitative approach to assess the impact of BMBE

certification on micro-entrepreneurs in the Province of Bataan, Philippines. The

research utilized questionnaires to measure the impact on profit maximization,

capitalization, marketing tools, technology utilization, and job generation. Results

showed that BMBE incentives had no significant impact on profit maximization, but

positively impacted capitalization and job growth.

Based on the results, business owners should take note, as the study

evaluates the effects of BMBE on capitalization, marketing tools, job creation, profit

maximization, and technology use using statistical tests with weighted means,

frequencies, and percentages. Based on the data, micro-entrepreneurs do not

always take advantage of BMBE incentives. It also includes information on the

respondents' average job growth rate, which is 237%.

Promotional Tools

Street vendors make a major contribution to the informal sector thereby

enhancing the socio-economic conditions in today's developing and developed

nations. A lot of socio-economic research and development work has been carried

out worldwide on the emergent needs of street vendors. However, the study and

critical analysis of promotional activities adopted by them to survive in the

globalization era has always been scarce.

Hence the aim of this study is to identify various promotional strategies

adopted by the street vendors for promoting their products for business expansion,

and also to highlight the effective techniques that influence consumer buying

behavior. This study uses primary data collected through a questionnaire answered

by a sample of around 200 active street shoppers in Guwahati. The data collected

were analyzed using descriptive statistical techniques. The analysis has produced

several important implications (Sekhar & Mandeep, 2022).

Promotional Tools used in the Philippines

The purpose of this research was to know if there is a significant relationship

between promotion tools (buy one get one free, coupons and physical surroundings)

and consumer behavior. A total of 337 students of Polytechnic University of the

Philippines under the college of Business Administration participated in this study.

This sample was taken by the use of probability sampling specifically, simple

random sampling. Data are analyzed through the use of regression as statistical

treatment. Results implied that buy one get one free and physical surrounding have

significant relationship with consumer buying behavior. However, coupons seemed to

have no significant relationship with consumer behavior. With the help of this result,

retailers or businesses near the school can formulate an effective business plan and

strategy when it comes to choosing the most appealing tool of promotion.

 Knowledge of this result will help them allot their money in a promotion tool

that consumers are attracted to. By that they will be able to maximize their profit.

Further studies that are qualitative in nature and scope that is not limited to students

are recommended to have a deeper understanding between consumer behavior and

promotional tools (Balatucan et al., 2019).

This investigates the influence of promotional tools on consumer buying

behavior. The findings suggest that "buy-one-get-one-free" and the physical

surroundings of a store have a significant impact on purchasing behavior among

students, while coupons do not exhibit a significant relationship.

Study focused on the pasalubong retail shops to know the preferred

promotional tools of every consumer. Based on the following theories; Operant

Conditioning, Attribution Theory, and Self-perception Theory, researchers

subsequently arrived and proved that there is a significant relationship between the

promotional tools and consumer purchasing behavior. This study aims to investigate

the influence of various sales promotional tools on consumer purchasing behavior.

The quantitative research was applied to test the relationship between two

variables. Analysis and validation of the data is used as a statistical tool to avoid

biases. Subsequently, there is a significant relationship between promotional tools

and consumer purchasing behavior. With that, it is recommended that pasalubong

shops in Calapan City should pay proper attention to promotional tools to increase

sales (Alcaraz et al., 2022).

The research conducted on the influence of promotional tools on consumer

purchasing behavior in pasalubong retail shops in Calapan City reveals that buy one

get one free has the highest impact, significantly attracting consumers and fostering

brand loyalty. Despite the effectiveness of price discounts and free samples, the

study underscores the nuanced preferences of consumers, emphasizing the need for

retailers to strategically choose promotional tools to maximize their impact on sales.

 This examines the impact of sales promotion and sales different

promotional tools on the purchase decision of a customer. The research

assesses the influence of sales promotional tools primarily, price discounts,

coupons, product sampling and point of sale display on product testing and

the customer’s purchase behavior. For the purpose of this study, the

researchers selected participants from the population of College of Business

Administration at Polytechnic University of the Philippines, a state university

in Sta. Mesa, Manila, since PUP has a wide range of students from different

provinces and regions which can help make this study show more accurate

results.

337 out of 2,702 CBA students were selected using Kukran random

sampling and the stratified random sampling wherein the respondents were

selected from each college using convenience sampling regardless of their

gender and age. The respondents represent 12% of the overall population of

students for the College of Business Administration. A Regression Analysis

found out if there’s a significant relationship between the dependent and

independent variable of the research.

Based on the results, sales promotional tools such as price discounts,

coupons, free samples, premium and point-of-purchase displays influence the

purchase decision of the student from Polytechnic University of the

Philippines. This paper will help the business owners and marketer when

planning sales promotion activities to know what is the most appropriate sales

promotion tool that will work for their business (Aquino et al., 2019).

The research conducted at Polytechnic University of the Philippines

on the impact of sales promotion tools on consumer purchase decisions

reveals that coupons have the strongest influence on purchasing decisions,

followed by price discounts, free samples, and point-of-purchase displays.

The study emphasizes the significant role sales promotion plays in bridging
marketing strategies and recommends businesses to carefully choose

promotional tools based on their target audience to maximize effectiveness.

Promotional Tools used in Macro-business

The manuscript investigates the impact of the observed sales

promotion tools on the consumers’ impulse buying behavior. Beside the

theoretical analysis of sales promotion and impulsive consumer behavior, the

authors try to determine which of the observed sales promotion tools is most

effective in encouraging consumers to perform impulsive purchases. Analysis

of collected data is done with the help of three statistical-econometric

methods: factor analysis, regression analysis and reliability analysis.

According to the results of research carried out, discounts are the tool

by which consumers are most motivated to pursue impulsive purchases. Also,

free samples and demonstrations and product rehearsals are very effective,

while loyalty cards are the most ineffective. Thanks to these research results,

this manuscript will have a contribution both for marketers and brand

managers (companies), as well as consumers and future researches on this

or similar topic (Nikolic, 2020).

The promotional tools used in macro business, focus on

understanding their impact on consumers' impulse buying behavior. These

tools include discounts, free samples, demonstrations, product rehearsals,

and loyalty cards. The research findings suggest that discounts are the most

effective in motivating consumers to make impulsive purchases, while loyalty

cards are the least effective, which can provide valuable insights for

marketers, brand managers, and consumers in the business context.

Promotional Tools used in microbusiness

With ever-changing technological advancements, most firms use a

variety of digital marketing tactics to target clients across a wide range of

marketing endeavors. Understanding which strategies to use is critical for

food-related micro-businesses. As such, the study looks into the effects of

digital marketing on profitability, with a particular focus on chosen samples of

food-related micro-businesses in Makati and Quezon City during the COVID-

19 pandemic. The researchers devised a questionnaire to assess the impact

of internet marketing on the profitability of food-related micro-businesses.

A total of three hundred forty-five microbusiness owners/managers

took part in the study. According to our findings, digital marketing and e-

commerce have substantial relationships with profitability. However, no

significant relationship between social media factors and profitability was

discovered. Overall, the study emphasizes the need for business

owners/firms/managers to allocate resources toward e-commerce (Castro et

al., 2022).

A study conducted in Makati and Quezon City analyzed the impact of

digital marketing on the profitability of food-related micro-businesses during

the COVID-19 pandemic. Findings showed a significant relationship between

digital marketing and e-commerce, while no significant relationship was found

between social media factors and profitability. The study underscores the

importance of e-commerce in business operations.

The notable contribution of small and medium enterprises (SMEs) in

the development of socio-economics has been very encouraging in terms of

its GDP contribution and employment creation. Both developed and

developing countries are living testimonies of the contributions by SMEs. The

primary aim of this paper is to assess the use of social media as a

promotional tool for SME development. To achieve this objective, a total of

800 structured questionnaires were developed through an intercept and

online survey to obtain data for the exercise.

A non- probability sampling technique was employed for the collection

of the data of which 648 respondents were duly accurate for the data
processing/analysis. Using PLS- SEM with the help of ADANCO software v

2.2.1, findings revealed that the use of social media as an advertising tool has

a significant effect on a firm’s financial performance, business motivation,

customers’ perspective/attraction, and an increase in market share, thus, a

key in reflecting a positive change in their mar-keting and promotional

activities in the consumer market. The findings of the study are both beneficial

to practitioners/owners of SMEs and the social media marketing literature in

general. This study further strengthens the need for businesses to invest in

digital marketing tools and employ them effectively to stay competitive in the

long term for the firm’s growth and survival.

This delves into the pivotal role of social media as a promotional tool

for Small and Medium Enterprises (SMEs) in the financial sector of Ghana.

With a focus on rural banks, the study uncovers significant positive

correlations between social media usage and various dimensions of SME

development, including enhanced financial performance, improved brand

motivation, and increased market share. The findings underscore the

transformative potential of digital marketing tools, particularly in

underdeveloped economies, shedding light on how SMEs in the financial

industry can leverage social media to not only connect with customers but

also propel their overall growth and sustainability. It emphasizes the specific

context of Ghana and the inclusion of control variables contribute valuable

insights for SME practitioners and policymakers aiming to harness the

potential of social media for economic development.

On a methodological note, the research adopts a quantitative

approach, employing structured questionnaires and utilizing Partial Least

Square and Structural Equation Modeling for data analysis. The use of

convenience sampling and the collection of 648 valid responses from

employees in the Greater Accra, Central, and Western Regions of Ghana

provides a robust foundation for the study's empirical findings.

Despite the limitations in generalizing the results to other developing

countries and the exclusive use of quantitative techniques, the research lays

a foundation for future explorations in the field, encouraging further

investigations into the reliability and validity of research constructs and

models in diverse developing country contexts.

Sales Promotion

This research studied the influence of sales promotion tools on

consumer buying behaviors of a resident of Pakistan, specifically Karachi.

The aim of the study is to identify the impact of sales promotion tools that are

price discount, sample, coupon and buy one get one free offer on the buying

behavior of customers. A total of 255 respondents participated in this study

through a questionnaire. The data was collected by using a convenience

sample technique. The results show that the price discount has a significant

relationship with consumer buying behavior (t = 3.159, p= 0.002).

Free Sample has a strong significant relationship with consumer

buying behavior (t = 3.603, p= 0.000) and Buy-One-Get-One also has a

strong relationship with consumer buying behavior (t = 3.585, p= 0.000), but

the coupon has no significant relationship with consumer buying behavior (t =

1.222, p= 0.223). This study emphasized on how significantly consumer

buying behavior gets influenced by sales promotion tools (Samreen, 2020).

Retail markets have been one of the most rapidly growing markets in

the world for the last decade; to stay competitive, retailers use effective sales

promotions tools and that become a vital technique for marketers to stimulate

consumer buying behavior towards purchasing any product.

The aim of this study is to determine the impact of the most used

tools of sales promotion in the retail sector such as: coupons, samples, price
discounts and buy one get one free on consumer buying behavior from two

aspects; brand switching and customer loyalty. This study is based on

literature review, conceptual framework and hypothesis which open the door

for future researchers to expand more in this field (Dawood, 2016).

Digital Marketing

In a rapidly changing era, entrepreneurs, as well as marketers, need

to be up to date with the change in the business environment or they may

have to face the risk of being obsolete. Days are long past when a

conventional business model used to grow fast and get success. In the era of

Facebook, WhatsApp, Twitter, and Instagram, social marketing has evolved

as an integral part of marketing strategy.

It is almost impossible to think of a marketing strategy without taking

into account the importance of social media. Adopting some form of online

promotion through social media has become essential for all business

houses. In an industry where trends are changing faster than light, adoption

of social network marketing is very vital for companies to survive in that race.

In this paper, the researcher has tried to find out the importance and

effectiveness of social media as a marketing and promotional tool. An attempt

has been made to analyze the extent of influence of social media as a buying

decision maker. The paper also tries to find out the role of gender biases. The

gap between the customer's expectation and social media performance is

also attempted to find out. In the end, strategies have been recommended by

the researcher for maximizing the effectiveness of social media as a

promotional tool (Ghoshal, 2019).

With ever-changing technological advancements, most firms use a

variety of digital marketing tactics to target clients across a wide range of

marketing endeavors. Understanding which strategies to use is critical for

food-related micro-businesses. As such, the study looks into the effects of

digital marketing on profitability, with a particular focus on chosen samples of

food-related micro-businesses in Makati and Quezon City during the COVID-

19 pandemic. The researchers devised a questionnaire to assess the impact

of internet marketing on the profitability of food-related micro-businesses.

A total of three hundred forty-five microbusiness owners/managers

took part in the study. According to our findings, digital marketing and e-

commerce have substantial relationships with profitability. However, no

significant relationship between social media factors and profitability was

discovered. Overall, the study emphasizes the need for business

owners/firms/managers to allocate resources toward e-commerce (Castro et

al., 2022).

Brand Promotion

The paper aims to investigate the effectiveness of brand promotional

strategies by Max retail, which influences the customers to purchase. Data

set included use of and influence of outdoor and in-store promotional tools.

These were investigated to determine impact and effect of the promotions.

There is a good response about the hoardings kept in the store and

POP for the internal communications and promotions and through this

research study, many of the customers have shown their neutral opinion

about the contests/sweepstakes/games. One third of the respondents

responded that the paper advertisement helps them to know the offers of

Max. The majority of the respondents also stated that the discount coupon is

a good stimulator for them to shop at the store.

With regard to availability, the store is having different brands of

clothes available everywhere without any issue of product out of stock. The

research and data collection done which are limited to Chennai consumers
only. Future investigation can focus on other geographies in the areas where

the stores are located (Sabeerdeen, 2023).

Mix-method Approach

This study seeks to investigate the impact of oil price volatility on

business profitability in the Province of Guimaras. Through a mixed-methods

approach, the study aims to answer important research questions such as the

correlation between crude oil price changes and micro business profitability

and investment, potential differences in the effect of crude oil prices during

periods of high and low prices, trends in the profitability of micro businesses

entrepreneurs, the role of the oil and gas upstream segment and its prospects

for the future, and proposes an extension program toolkit to help micro

business entrepreneurs mitigate the impact of oil price fluctuations on their

businesses.

The study will collect and analyze data from 200 micro business

entrepreneurs operating in five municipalities within the Province of

Guimaras, which represent approximately 90 percent of micro businesses in

the area by population. By providing significant insights into the impact of oil

price volatility on small businesses, the findings of this study can help inform

policymakers and business owners to improve economic sustainability and

competitiveness in the local market. The researchers recommend several

strategies to help small businesses better manage the risks associated with

oil price volatility.

These include diversifying business operations and revenue streams,

developing proactive risk management strategies, seeking financial support

and education, and advocating for policies that promote energy efficiency or

diversify energy sources. The researchers hope that these recommendations

will help small businesses maintain profitability in the face of changing market

conditions (Moralista, 2023).

 Chapter 3

METHODOLOGY

Population and Sample

The respondents of the study are the total enumeration of 28 food stalls

consists of shawarma, burger, fries, pizza, and pares at Trece Martires City, Cavite.

Simple random sampling will be used for the procedure of data gathering since

everyone has an equal chance of being selected thus eliminating bias. Likewise, this

strategy enables the researcher to collect relevant and useful information for

answering the research question. The researchers chose this area since the socio –

economic conditions present in the area that is relevant to the study and also as it fits

the time frame and resources of the researcher. The target population for this

research defined to include the businesses that offer various kinds of sale

promotional tools in Trece Martires City, Cavite.

Research Design

This research design employs the quantitative correlational design utilizing

descriptive technique. Quantitative research design is a formal, objective, systematic

process in which numerical data are used to obtain information about the variables. It

is used to describe and examine relationships between and among variables (Lamar,

2015). The correlational method is a quantitative research approach that uses two or

more quantitative variables from the same topic groups. This study is dedicated to

exploring shawarma and burger establishments in Trece Martires City. Utilizing

quantitative methods, we aim to discern distinctive features and patterns within these

culinary domains. Adhering to a structured research approach, as advocated by

Lamar in 2015, our methodology prioritizes organization and objectivity. Employing a

quantitative correlational design without experimental manipulations, we seek to

understand the relationships between various factors without introducing artificial

influences. To ensure a representative and diverse sample, a stratified sampling

method is meticulously employed, categorizing the population into strata based on

relevant characteristics.

The primary data collection method involves well-designed surveys tailored to

gather quantitative insights into different dimensions of shawarma and burger

establishments. These surveys aim to comprehensively capture characteristics and

market dynamics, providing a robust dataset for analysis. Data analysis relies on

correlation coefficients, enabling a systematic examination of the strength and

direction of relationships between identified quantitative variables. This statistical

approach offers valuable insights into the intricate dynamics of the shawarma and

burger establishments in Trece Martires City.

Research Instrument

To obtain and collect data, the researchers employed survey questionnaires

as their data-gathering tool. The questionnaire used contains questions that aim to

address the study’s research problem. The questionnaire was patterned after the

survey questionnaire of the research entitled Effectiveness of Discounts Or

Promotion Tools Among Filipino Businesses And Its Consumers In Science City Of

Munoz And San Jose City. To ensure that the questionnaire addressed the research

topics, some parts were modified. The researchers made sure that the questions

matched the statement of the problem. The primary instrument used in the study was

a modified-standardized questionnaire divided into two parts: the profile of the

participants and their strategies as well as the challenges. The profile includes the

respondents’ food stall location, type of food stall, what promotional material is used

and do they gain a higher profit from using their promotional tools as it is a yes or no

portion, while the second part of the research used open-ended research questions

so that the respondents could react honestly based on their working place and to

evaluate their profitability. This study will employ closed-ended questionnaires as the
research instrument to gather information. As stated by Bhandari (2023),

Respondents are presented with a predetermined list of options while answering

closed-ended or restricted-choice questions. The ideal questions to use when

gathering information on quantitative or categorical variables are closed-ended ones.

Nominal or ordinal variables can also be found in categorical variables. An interval or

ratio can be a quantitative variable. Comprehending the kind of variable and

measurement level enables you to conduct suitable statistical studies for outcomes

that can be applied to a wider population.

Table 1. Scale, Range, and Nominal

Scale Range Nominal

4 70% Discount Discount
3 50% Discount Buy One Take One
2 30% Discount Coupons
1 20% Discount Bundles

Data Collection

The purpose of this research is to study closely the taste of the customers in

the various promotional tools among burger and shawarma stalls in Trece Martires

City. We aim to investigate the impact of promotional tools, including free samples,

price reduction, social surroundings, and physical surroundings, on consumer

purchasing behavior and sales promotion within the context of these local stalls. In

data collection method, we are using survey questionnaire, this method used for

collecting data from a pre-defined group of respondents to gain information and

insights on various topics of interest. In surveys, interviewers serve as the agents of

data collection. Their task includes contacting the target persons, gaining their

cooperation, and conducting the interviews according to the rules of standardized

interviewing. Interviewers are not equally successful at doing their job. They differ
both in the quality of the data collected and in the response rate they achieve

(Biemer & Lyberg, 2003.

When designing a data collection survey, it is important to ensure that the

questions are clear, concise, and relevant to the topic of interest. In this case, the

topic is "Promotional Tools and Business Profitability Among Burger and Shawarma

Stalls' ' in Trece Martires City. The questions should also be neutral and non-leading

to avoid bias in the responses. Once the survey questions have been designed, the

survey can be distributed to the pre-defined group of respondents. The choice of

distribution method will depend on the type and size of the audience being studied,

the purpose of the study, timeline, budget, and staff available. Some common types

of surveys are written questionnaires, face-to-face or telephone interviews, focus

groups, and electronic (e-mail or website) surveys. It is important to determine what

you want to learn from the survey and how you will use the results. After the survey

has been distributed, the responses can be collected and analyzed. It is important to

keep track of all aspects of the data collection process, from recovering completed

questionnaires to contacts with interviewers and the target population. Finally, the

results of the survey can be presented in various formats such as tables, graphs, and

fact sheets.

Data Analysis

The researchers used quantitative approaches. To collect quantitative data,

you will often need to use operational definitions that translate abstract concepts into

observable and quantifiable measures (Bhandari, 2022). Including a survey

questionnaire, to examine data on the profitability and promotional tools used by

burger and shawarma food stalls in Trece Martires City, Cavite. This method is a list

of closed or multiple-choice questions that is distributed to a sample (Streefkerk,

2019). The survey was specifically presented to the owners of food stalls in Trece

Martires City, Cavite, that were offering buy one, take one price reductions. The
researchers aimed to gather structured data that could be statistically evaluated to

understand the significance of promotional tools and assess the financial viability of

these food stalls in the specified area by using this strategy. Quantitative data

analysis serves as part of an essential process of evidence-making in health and

social sciences. It is adopted for any types of research question and design whether

it is descriptive, explanatory, or causal. Jung, Y.M. (2019). Despite being a mouthful,

quantitative data analysis simply means analyzing data that is numbers-based or

data that can be easily "converted" into numbers without losing any meaning

(Samuels, 2020).