The Impact of Product Quality On Customer Retention

Business Administration Department
South East Asian Institute of Technology, Inc.

National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines
THE IMPACT OF SOCIAL MEDIA MARKETING TO THE PURCHASE

DECISION OF THE BSBA MARKETING MANAGEMENT STUDENTS OF
SEAIT, INC.
____________________________
An Undergraduate Thesis
Presented to
The Faculty of BSBA-MM Department
SEAIT, Inc.
____________________________
In Partial Fulfillment
Of the Requirements for the Degree
BSBA Major in Marketing Management
____________________________
By
GULMAYO, KATHLEEN C.
LAÑOHAN, JANJOVEL A.
LEPITEN, MARITESS T.
LUMA-AS, PRECIOUS JAYLAH T.
MEJARES, MARY JOY F.
PATRIARCA, EDZEL P.
January 2022
JOSEPH M. BUGUIS
Course Facilitator
Table of Contents
TITLE PAGE i
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
ABSTRACT iv
LIST OF TABLES v
LIST OF FIGURES vi
LIST OF APPENDICES vii
CHAPTER
I THE PROBLEM
Introduction 1
Statement of the Problem 2
Significance of the Study 3
Scope and Delimitation of the Study 5

II CONCEPTUAL FRAMEWORK AND REVIEW OF RELATED
LITERATURE AND STUDIES
Conceptual Framework 6
Review of Related Literature and Studies 7
Definition of Terms 17
III METHODOLOGY
Research Design 20
Locale of the Study 21
Respondents of the Study 22
Sampling Size and Sampling Design 23
Data Gathering
Data Gathering Tools 25
Data Gathering Procedure 26
Statistical Treatment 26
Data Interpretation 29
IV PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Demographic Profile of the Respondents 31
Impact of Social media platforms to the purchase decision 33
Purchase decision of the respondents using social media 36
V SUMMARY OF THE FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
Findings 39
Conclusion 40
Recommendations 41
REFERENCES 44
APPENDICES 51
APPROVAL SHEET
ACKNOWLEDGEMENT
Abstract
In today’s time, social media has become an important platform in
connecting individuals around the world. The recent rise in the use of social
media marketing has dramatically altered in the marketing landscape. Due to the
rise of online shopping and the amount of time people spend on social media has
impact the consumers purchase decision. The consumers who are influenced by
social media are four times more likely to spend more on purchases.
The purpose of this study is to determine if social media marketing
impacts the purchase decision of the BSBA Marketing Management of SEAIT,
Inc.
The researchers used quantitative research design specifically a
descriptive research design in order to emphasize objective requirements. The
statistical, mathematical or numerical data were collected through questionnaires
and surveys. The researchers adopted simple random sampling so the
respondents will be chosen fairly since they are already known.
The findings of this study show that various forms of social media
marketing such as Facebook, YouTube and TikTok can influence customer
purchase decisions. Furthermore, the findings show that respondents are actively
using social media as a tool for validating purchase decisions and seeking
relevant information when making a purchase decision.

List of Tables
Table Title Page
1 Five Point Scale 29
2 Survey response on Sex Distribution 32
3 Impact of Social media platforms to the Purchase
Decision (Mean and interpretation) 32
4 Purchase decision of the respondent’s using social
media platforms 33
5 Purchase decision of the respondent’s using social
media platforms (Mean and interpretation) 35
6 Functional Relationship between Social Media and
Purchase Decision of Respondents 37

List of Figures
Figure Title Page
1 Conceptual Framework of the Study 7
2 Research Design 20
3 Exact Location of SEAIT, INC. So. Cot. 22
4 BSBA Total Population per Year Level 23
5 Data Gathering Procedure 25
6 Survey response on Age Distribution 31

List of Appendices
Appendices Title Page
Appendix A Survey Questionnaire 50
Appendix B Letter to the Dean 56
Appendix C Letter to the President 57
Appendix D Cronbach Alpha 58

Appendix E Results of Survey conducted 59
Appendix F Computation for Multiple Regression
Analysis 68
Appendix G Documentation 70
Appendix H Curriculum Vitae 72
Chapter I
THE PROBLEM
Introduction
There is no doubt that in the current global market, where competition
does not have any geographical limitations, and the customers’ preferences
continuously change, the meaning of the quality of a product is not to be
overlooked. The product can be offered to the market to be noticed, used,
owned, or consumed to satisfy a want or need (Firmansyah, 2019). It is, indeed,
the platform for a company’s prosperity and a strong customer support base.
This paper investigates the complex connections between product quality and
customer retention, using the example of the product and brand Maunlad located
in the Philippines, the city of Koronadal, South Cotabato.
Everywhere in the globe, companies are having a hard time in terms of
staying on top of the game in a competitive economic environment that changes
for the better very fast. According to Kotler (2005), Product quality is anything
offered to the market to satisfy a want or need, including physical goods,
services, experiences, events, people, places, properties, organizations,
information, and ideas. The idea that product quality is a significant factor of
success has universal acceptance, and big companies alike all appreciate the
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importance of this in maintaining a high level of customer satisfaction and loyalty.
In the Philippines which hosts a rich and varied business environment,
product quality and customer retention become so distinct. A growing middle
class and their increased desire for quality products and services offer pressures
to producers alike, no matter what sector they hail from. The effects of customer
service quality and product quality on customer satisfaction and customer loyalty
were studied by Altejar and Dizon. The findings of the study of Altejar and Dizon
showed that customer service quality and product quality affect customer
satisfaction, while customer satisfaction affects customer loyalty. In the light of
the above scenario, the effect of product quality on customer retention is
something that every business needs to know when aiming at maintaining a
higher volume of sales and achieving competitive advantage.
While the role of product quality in the retention of customers is gaining
recognition, there is still an existing gap between researchers and businesses in
Koronadal, South Cotabato as well as its impact on the Maunlad case
specifically. Customer feedback often implies that the product is the driving
factor as far as customer loyalty is concerned but scientific research in this area
is limited.
This research deficiency coverage will not only enrich our knowledge of the
factors that trigger customers’ repurchase but also provide advice and
recommendations to Koronadal businesses like Maunlad to improve their
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products and ultimately gain a competitive advantage and ensure sustainability in
the market.
Review of Related Literature
This literature review will delve into various aspects relevant to how
product quality influences customer retention in Maunlad, South Cotabato,
Koronadal. It will cover the analysis of demographic indicators, such as age and
gender, as well as the products quality. The other characteristics of customer
retention such as what shapes purchase intention as well as consumer buying
behavior will be explored in details. These topics will be borrowed from textbooks
and other publications which are relevant to the particular subject area. It gives
the study the requisite basis for analysis and discussion.
Age
Age is frequently used segmentation variable for market. Age is constantly
used with other demographic factors like gender, income and race while
conducting research on consumer behavior (Kimand, 2010). According to
Daneshvary and Schwer (2012) buying intention has a relationship with
demographic factors such as age. Younger consumers are more significant to
influence. It might be because the younger consumers are more open to
experience and are less concerned with prices. So, they will try to decide to
make easier decision and intend to purchase something in return. Age is one of
the most important demographic characteristics that influence consumer
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purchasing decision. According to Rani (2014), age is a crucial aspect in
marketing strategy since it produces a critical difference between consumer
choices and consumption habits and patterns. As a result, the author focused her
research on demographic characteristics and their impact on respondents'
purchasing decision and preferences in product and service selection.
Sex
Sex is another demographic factor that has been explored to examine its
impact on consumer buying behavior, as it relates to product categories.
Likewise, different studies showed that men are more risk taking than women
and they are more reliance on themselves to make purchase decision than
women (Syed, 2013). Daneshvary and Schwer (2012) believe that purchase
intention has a relationship with demographic factors like gender. Furthermore
they found that purchase intention is influenced across the gender. Out of all the
other characteristics that influence customer purchase decision, sex is the most
important. When it comes to sex, the perspective of consuming a product varies.
Because of the differences in their upbringing and socialization, men and women
have different purchase preferences. Sex is also related to our study because
they influence the purchase decision and at the same time men and women differ
in making decision that may affect their purchase decision.
Objective Quality
Objective qualification represents the rated and thought-out technical
attributes of a product evaluated through standard tests, technical specifications,
4
and quantitative measurements. The literature dealing with objective quality
considers this a key attribute of a high-quality product, encompassing
performance, reliability, durability, and safety (Karmarkar & Pitbladdo, 1997).
Product quality plays a crucial role in gaining a comparative advantage and
increasing profitability through feedback interactions with other strategic factors
(Jacobson & Aaker, 1987). Research focusing on objective quality often employs
thorough techniques to study and measure different product aspects (Mitra &
Golder, 2006). Objective measurement of product quality is a key dimension of
product excellence, which is quantifiable and measurable (Xu, 2020). It functions
as a basis for evaluating the product’s effectiveness, reliability, and safety,
impacting customers in terms of their perceptions, satisfaction, and brand
reputation. Objective product quality consists of properties of material,
workmanship, technical, and economic nature, fulfilling the needs of the
consumer (Box, 1983).
Perceived Quality
Perceived quality, also referred to as subjective quality or perceived value,
stands as a pivotal factor influencing consumer behavior and purchase decisions
across diverse industries. It encapsulates consumers' subjective evaluations and
impressions of a product's attributes, drawing from their sensory experiences,
expectations, and social influences. Various studies have delved into the
paramount importance of perceived quality in shaping consumer perceptions,
attitudes, and behaviors towards products. According to Stylidis et al. (2019),
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consumers' perceptions of quality are intricately influenced by factors such as
brand reputation, product design, packaging, and customer service, collectively
shaping their overall satisfaction with the product. In a seminal study by Jover,
Montes, & Fuentes (2004), the authors underscored the multifaceted nature of
perceived quality, highlighting its dimensions of performance and imagery.
Performance pertains to the functional aspects of a product, encompassing its
reliability, durability, and effectiveness, while imagery encompasses the aesthetic
and symbolic attributes, including brand image, design, and prestige. The
findings revealed that both performance and imagery significantly impact
consumers' perceptions of quality and purchase intentions, thus emphasizing the
multidimensional essence of perceived quality. This understanding aligns with
the model proposed by Dodds et al. (1991), which elucidates the interplay
between performance and imagery in shaping consumers' perceptions of quality.
Relative Quality
Relative quality, also known as comparative quality or perceived value
relative to competitors, is a key consideration for consumers when making
purchasing decisions. It involves comparing the attributes, features, and
performance of a product against those of competing alternatives available in the
market. Numerous studies have examined the importance of relative quality in
influencing consumer perceptions, preferences, and purchase behaviors. Reich,
A. (2011), proposed a model of price-quality inference, suggesting that
consumers often use price as a cue to infer the relative quality of a product
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compared to alternatives. According to their research, higher prices may signal
higher quality, leading consumers to perceive products as offering greater value
relative to lower-priced alternatives. In a study by Takai, S., & Kalapurackal, R.
(2012), the authors explored consumers' decision-making processes when
choosing between products of varying quality and price levels. They found that
consumers' preferences were influenced by the relative difference in quality
between options, rather than the absolute quality level of each option.
Consumers were more likely to choose the option that offered the best value
proposition relative to its price, even if it did not have the highest absolute quality.
In addition to price and brand reputation, product attributes and features also
play a crucial role in determining relative quality. Studies by Olsen, S. (2002),
examined how consumers evaluate products based on multiple attributes, such
as performance, reliability, durability, and design, relative to competing options.
Consumers may prioritize different attributes depending on their preferences and
needs, leading to variations in perceived relative quality across individuals and
market segments.
Customer Retention
Customer retention, the ability of a company to retain its customers over
time, is a critical aspect of business success in today's competitive marketplace.
Numerous studies have explored the factors influencing customer retention and
the strategies companies can employ to enhance customer loyalty and long-term
relationships.
7
One key factor influencing customer retention is customer satisfaction.
Studies by Ahmad, R., & Buttle, F. (2001). have found a strong positive
correlation between customer satisfaction and retention rates. Satisfied
customers are more likely to continue purchasing from a company, make repeat
purchases, and recommend the company to others, leading to higher retention
rates and increased profitability.
In addition to satisfaction, service quality also plays a crucial role in
customer retention. Narayandas, D. (1998). introduced the SERVQUAL model,
which identifies five dimensions of service quality: reliability, responsiveness,
assurance, empathy, and tangibles. Companies that consistently deliver high-
quality service across these dimensions are more likely to retain customers and
build long-term relationships.
Furthermore, studies have highlighted the importance of building
emotional connections with customers to enhance retention. Mcdougall, G.
(2001). introduced the concept of the "experience economy," emphasizing the
value of creating memorable and meaningful experiences for customers.
Companies that go beyond functional benefits to create emotional connections
and positive experiences are more successful in retaining customers and
fostering loyalty.
Finally, effective communication and relationship management are
essential for customer retention. Wirtz, B., & Lihotzky, N. (2003) introduced the
concept of relationship marketing, emphasizing the importance of building and
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maintaining long-term relationships with customers through personalized
communication, feedback mechanisms, and value-added services. Companies
that invest in building strong customer relationships are better positioned to retain
customers and withstand competitive pressures.
CONCEPTUAL FRAMEWORK AND REVIEW OF RELATED LITERATURE
AND STUDIES
This chapter presents the conceptual framework and the related literature
and studies that is connected and related to the impact of product quality to
customer retention.
Conceptual Framework
PRODUCT QUALITY
 Objective
Customer Retention
 Perceived
 Relative
Independent Variable Dependent Variable
Figure 1. Conceptual Framework of the Study
9
The conceptual paradigm outlined above illustrates the relationship
between the independent and dependent variables in this study, forming the
foundational framework for the research. The independent variable, Product
Quality, encompasses objective, perceived, and relative aspects. This variable is
examined to assess its impact on customer retention at Maunlad General
Merchandising in South Cotabato. Customer retention serves as the dependent
variable, representing the outcome of interest in the study. By exploring the
relationship between product quality and customer retention, this research aims
to identify potential solutions to the identified problem. The study will involve
analyzing variables and processes to gain insights into enhancing customer
retention strategies.
Statement of the Problem
This study intends to analyze the impact of product quality on customer
retention of Maunlad in Koronadal South Cotabato.
Specifically, it aims to do the following:
1. To determine the demographic profile of Maunlad's customers in Koronadal,
South Cotabato, specifically in terms of:
a. Age
b. Sex
c. Income level
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2. To examine the influence of product quality on customer retention,
considering three classifications:
a. Objective quality
b. Perceived quality
c. Relative quality
3. To measure customer retention, assessing the extent to which customers
continue to patronize Maunlad in Koronadal, South Cotabato.
4. To determine the correlation between product quality and customer retention,
investigating whether there is a significant relationship between the quality of
Maunlad's products and the likelihood of customers to remain loyal and continue
purchasing from the store.
This study aims to provide insights into the demographic characteristics of
Maunlad's customers, the impact of different dimensions of product quality on
customer retention, and the correlation between product quality and customer
loyalty in the context of Maunlad in Koronadal, South Cotabato.
Null Hypotheses (H0):
1. There is no significant relationship between objective product quality and
customer retention at Maunlad in Koronadal, South Cotabato.
2. There is no significant relationship between perceived product quality and
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3. There is no significant relationship between relative product quality and
Alternative Hypotheses (H1):
1. There is a significant relationship between objective product quality and
2. There is a significant relationship between perceived product quality and
3. There is a significant relationship between relative product quality and
These hypotheses will be tested to determine whether there is a statistically
significant relationship between different dimensions of product quality and
Scope and Delimitation of the Study
This study aims to investigate "The Impact of Product Quality on Customer
Retention of Maunlad in Koronadal, South Cotabato." The research will focus
solely on the dimensions of product quality, including Objective, Perceived, and
Relative quality, as well as customer retention at Maunlad in Koronadal, South
Cotabato. The study will be limited to a sample size of 50 respondents,
consisting of customers of Maunlad in the specified location. The research will
provide insights into the relationship between product quality and customer
12
retention within the defined scope, enabling a focused examination of the subject
matter.
Significance of the Study
The significance of this study lies in its ability to provide valuable insights
into how operational services, particularly product quality, impact customer
retention. By understanding these dynamics, businesses can improve their
strategies to foster customer loyalty and long-term relationships. This study
contributes to marketing and consumer behavior knowledge, offering practical
implications for businesses aiming to enhance their customer retention efforts.
This study is also beneficial to the following:
1, Academe – This study enriches academic understanding by
contributing empirical evidence and insights into the relationship between product
quality and customer retention. It serves as a valuable resource for students and
researchers interested in marketing, consumer behavior, and business
management, providing a basis for further exploration and study in these areas.
2. Business Industry – The findings of this study offer practical
implications for businesses operating in various industries. By understanding the
impact of product quality on customer retention, companies can refine their
strategies to enhance customer satisfaction, loyalty, and overall business
13
performance. This knowledge enables businesses to adapt and thrive in
competitive markets.
3. Business Practitioners – For practitioners in the business field, this
study provides actionable insights that can inform decision-making and strategic
planning. By recognizing the importance of product quality in influencing
customer retention, practitioners can implement targeted initiatives to improve
product offerings, customer service, and overall customer experience, ultimately
driving business growth and profitability.
4. Consumers – Consumers benefit from this study as well, as
businesses that prioritize product quality are likely to deliver better products and
services. By understanding the significance of product quality in influencing
customer retention, consumers can make more informed purchasing decisions,
leading to higher levels of satisfaction and loyalty to brands that consistently
deliver quality offerings.
5. Future Researcher - Future researchers can build upon the findings of
this study to explore related topics or expand the scope of inquiry. This study
serves as a foundation for further research endeavors, providing a roadmap for
investigating the complex dynamics between product quality, customer retention,
and other relevant variables. It offers opportunities for future researchers to delve
deeper into specific aspects of this relationship and contribute to ongoing
scholarly discourse.
14
Scope and Delimitation of the Study
This study is carried out primarily for the purpose of determining “The
impact of Social Media to the purchase decision of the BSBA Marketing
Management Students of South East Asian Institute of Technology, Inc. This
study will only cover Social Media platforms such as Facebook, YouTube, TikTok
and the purchase decision of the BSBA Marketing Management Students. This
will be only limited to the 337 students from the BSBA Marketing Management
Students of SEAIT, Inc. coming from first year up to fourth year level and the
social media platforms being mentioned.
Chapter III
METHODOLOGY
This chapter will discuss the manner and procedures for conducting this
study. It includes the search method to be used, the comprehensive description
of research design, respondents to study and sample techniques, the instrument
15
and techniques to be used to verify instruments, data collection procedures and
statistical treatment applicable to the data collected.
Research Design
A survey was selected since the study is concerned about the student’s
perception of the social media regarding on their purchase decision to procure it.
This type of data collection method is more precise, and we have used it to be
able to study and analyze data collected with statistical tools. This has helped us
to reach conclusions based on data processing results.
This study use the quantitative research designs specifically a descriptive
research design in order to emphasize objective measurements. The statistical,
mathematical or numerical data were collected through questionnaires and
surveys. According to McCombes (2019) a descriptive research design can study
a wide variety of research methods to investigate one or more variables. None of
the variables are controlled or manipulated by the researcher; instead, they are
observed and measured.
The Impact of Social Media Marketing to the Purchase Decision of the BSBA
Marketing Management Students of South East Asian Institute of Technology, Inc.
Students’ Personal Profile Locale of the Study
SEAIT, INC. Tupi, South

Demographic Cotabato
Age Respondents
BSBA- Marketing
Management Students 16
Gender
Research Instrument
Factors
SOCIAL MEDIA Survey Questionnaire
 Facebook
 YouTube Data Gathering Procedure
 TikTok
Statistical Treatment
Purchase Decision
Weighted Mean
Frequency
Percentage
Multiple Regression
Analysis
Data Interpretation
Verbal Interpretation
5 point scale
Figure 2. Research Design
17
The social phenomena investigated in this research study that follows are
the elements purchase decision and the impact of social media to their purchase
decision. The research addresses the main purpose which is to examine the
purchase decision of the BSBA Marketing Management Students of South East
Asian Institute of Technology, Inc. more specifically the impact of social media as
a research tool during their purchase decision. Thus, the study does not imply
the introduction of external variables that may affect the relationship of the
variables in the study. The survey method used is through the questionnaire
method - using questionnaires to collect information from the sample.
Researchers used a questionnaire to enable them to collect data more accurately
at least time and quickly for subjects in order to maintain the relevance of
responses. The survey method was considered to be proportional to the
objectives of the survey because it sought to distinguish data within certain
criteria, thus creating a solid approach to collecting and collecting the necessary
data.
Locale of the Study
The study will be conducted at South East Asian Institute of Technology,
Inc. located in Tupi, South Cotabato. South East Asian Institute of Technology is
a private school in Tupi, South Cotabato that offers free college education
programs and supported by different government sectors together with NGOs.
18
Figure 3. Exact Location of SEAIT, INC. Tupi, South Cotabato, Philippines
19
Respondents of the Study
The respondents of the study were the BSBA Marketing Management
Students from first year up to fourth year level. The researchers only selected
BSBA Marketing Management Students as respondents of the study because
aside from the researchers also belongs to the same program, the researchers
want to know if they were engage in using social media platforms when making
or deciding their purchase decision. And since the population of the BSBA
Marketing Management students is over 2,125 students, the researchers garner
a total of three hundred thirty seven respondents from the BSBA Marketing
Management students. The researchers obtain data from the entire population of
the BSBA Marketing Management Students at SEAIT, Inc. registration office.
Figure 4
BSBA Total Population per Year Level
BSBA Total Population per Year Level

1000
800
600
400
Note. Number of 1st year is 1,105, number of 2nd year is 373, number of 3rd year is
200
339 and0 the number of 4th year is 308 with the overall total of 2,125.
1st year 2nd year 3rd year 4th year
New Old Returnee Transferee
20
Sampling Size and Sampling Design
The sample size will be 337 respondents from the population of the
BSBA Marketing Management Students of SEAIT, Inc. The sampling design that
the researchers will use for the study is the simple random sampling which
implies probability sampling. The researchers adopted this sampling method
since the population of the BSBA Marketing Management Students is known, so
the respondents will have an equal chance of being chosen (Frey, 2018). The
sampling method is unbiased and unaffected because the selection procedure
utilized provides every participant an equal chance. The purpose of this research
is to aggregate the results across the entire population.
The respondents of the study are chosen from the total population of the
BSBA Marketing Management Students of SEAIT, Inc. and determent using
Slovin’s formula.
Formula:
N/ (1+Ne2)
Where:
N = Population
n = Sample
1 = constant
e = at 5%
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Solution:
n = N/ (1+Ne2)
= 2,125 / (1+2,125×0.05^2)
= 336.63
n = 337
Data Gathering Tools
The study used both primary and secondary data to gather the information
needed for the study. In primary data, the data were collected using structured
questionnaire. The researchers utilized a self – administered questionnaire to
gather data that will be given to the three hundred thirty seven respondents in
total, coming from the BSBA Marketing Management Students. The
questionnaires were formulated based on the statement of the problem
proposed. On the first part of the questionnaire, the researchers want to
determine the demographic profile of the respondents in terms of their age and
sex. On the second part, they want to determine the impact of social media
marketing to the respondents purchase decision in terms of Facebook, Youtube
and TikTok. And on the last part of the questionnaire they want to determine how
social media marketing impacts the respondent’s purchase decision. Secondary
data were collected from articles, internet and journals related to the topic in
consumer purchase decision. The respondents were asked to rate the
statements with the use of Likert scale from 5 as the highest and 1 as the lowest.
22
To test the validity and reliability of the questionnaires, the researchers
used Cronbach’s Alpha Reliability Test. After analyzing 20 set of the
questionnaires, the result present Cronbach is equal to 0.89. Cronbach present
the validity by Cronbach alpha at 0.89 which is greater than the standard
deviation of 0.70, therefore the set of questionnaire is valid.
Data Gathering Procedure
The researchers primarily prepare a formal letter of request to seek
permission to conduct a survey to the BSBA Marketing Management Students of
South East Asian Institute of Technology, Inc. Upon the approval, a self-
administered questionnaire was distributed to the respondents through online
survey using Google form. The respondents were given enough time to finish the
questionnaire and answer any relative question of the respondents. Afterwards,
the researchers will gather all the answered data. Finally, the researchers will
analyze and tabulate the data gather from the respondents.
Statistical Treatment
The researcher use different statistical tools in providing a systematic way
of organizing the analyzed data used to gather in order to answer the questions
depicted in the study. The statistical tools to be use are the following:
1. Percentage. This is an expression of the proportion of the population
corresponding to a particular variable or items. This was used present the
profile of the respondents, and they possible problems that the
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respondents might encountered. Researchers used it to transform
proportion to a percent by multiplying by 100.
The formula would be: % = f/n x 100
Where:
% = Percentage
f = Frequency
n = Total number of respondents
2. Weighted Mean. The research used it to get the quantity to be averaged
in assigning weigh, using the frequency distribution and also to measure
the evaluation of the respondent in the questionnaire. This is adopted to
establish the weighted means of the values and attitudes of the
respondents.
∑ fx
The formula is: x̄ =
N
Where:
X = Weighted Mean
f = Frequency
x = Scale Rate
fx = Sum of all respondents
N = Total number of respondents
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3. Frequency. Frequency will be used to (a) organize and summarize the
survey data in a tabular format, (b) interpret the data, and (c) detect
outliers (extreme values) in the survey data set.
1
The formula is: f =
T
Where:
f = frequency
T = period
4. Multiple Regression Analysis. This will be used because it is the most
widely used statistical technique in predicting the relationship between the
dependent and two or more independent variable, which can further utilize
to predict the precise outcomes. It provides an opportunity to gauge the
influence of different independent variable on a dependent variable. More
specifically, to understand and assess the relationship between social
media platforms and purchase decision.
The formula is: y = a + b1x1 + b2x2 + b3x3
Where:
Y = dependent Variable
a = Y-intercept
b1 = slope of first independent variable
b2 = slope of second independent variable
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b3 = slope of third independent variable
x1 = first independent variable
x2 = second independent variable
x3 = third independent variable
Data Interpretation
Data gathered from the questionnaires will be analyze statically and
logically by thorough inspections and evaluations. Also, in order to widen the
interpretation, data that will be gathered will be interpreted using five-point scale
and verbal interpretation. Then it will be summarized through conclusions.
1. Five-point scale served as the basis of interpretation of the results that
were arbitrarily prepared. The weighted mean of the evaluation used to
interpret based on the five-point scale.
Table 1
Five Point Scale
Scale Value Mean Range Interpretation
5 4.21 – 5.00 Strongly Agree
4 3.41 – 4.20 Agree
3 2.61 – 3.40 Neutral
2 1.81 – 2.60 Disagree
1 1.00 – 1.80 Strongly Disagree
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Five (5) point scales can be assigned to each response in a point value,
from 1 to 5, based on the number of responses. Common values for the options
start with "strongly disagree" at 1 point and "strongly agree" at 5. The mode will
be the most common response to each statement while the mean will be the
overall average response.
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Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This section of the study is dedicated to the presenting of the
questionnaire's results. The graphical representations were crucial in the analysis
of the results because it allowed viewing and analyzing the data. In this section,
the researchers provide the findings of the quantitative analysis in the order in
which the questionnaire was completed.
A. Demographic Profile of the respondents
Age Distribution
Figure 6
Survey response on Age Distribution
56.80%
38.50% (130)
(191)
(14) 4.10% 0.60%
18-21 22-25 26-30 31-35
The data collected covers five different age groups: 18 –21 years old
(38.50%), 22 – 25 years old (56.80%), 26–30 years old (4.10%) and 30 – 35
years old (0.60%).
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Sex Distribution
Table 2
Survey response on Sex Distribution
Sex Frequency Percentage (%)
Male 94 27.89 %
Female 243 72.11 %
Total 337 100
The percentage distribution of the gender is shown in the table above; with
the total of 94 representing 27.89 (%) of the respondents are males and the total
of 243 representing 72.11 (%) are females who answered the questionnaire.
29
B. Impact of Social Media Marketing to the purchase decision (Facebook,
YouTube and TikTok).
Table 3
Impact of Facebook to the purchase decision (Mean)

Facebook Mean Verbal Interpretation
My decision to purchase a product or 4.21 Strongly Agree

service is influenced by Facebook
advertisements.
Facebook advertisement helps me 4.22 Strongly Agree

decide to make a purchase decision.
Information searching is easier via 4.23 Agree

Facebook regarding to my purchase
decision.
Facebook Influencers affect my decision 4.20

to purchase a product or service. Agree
Feedbacks/Comments/Posts on
Facebook encouraged me to make a 4.22
Strongly Agree
decision about a possible purchase.
Over-all Mean 4.22 Strongly Agree
Table 3 shows the impact of Facebook to the purchase decision and it
was shown that the respondents have strongly agreed that in terms of Facebook
it can impact their purchase decision. With the total average mean of 4.22 it can’t
be underestimated that Facebook can affect their purchase decision.
30
Table 4
Impact of YouTube to the purchase decision (Mean)
YouTube Mean Verbal Interpretation

service is influenced by YouTube
advertisements.
YouTube advertisement helps me decide

4.23 Strongly Agree
to make a purchase decision.
Information searching is easier via 4.21 Strongly Agree

YouTube regarding to my purchase
decision.
4.19 Agree
YouTube influencers affect my decision to
purchase a product or service.
Feedbacks/Comments/Posts on YouTube
encouraged me to make a decision about 4.20 Agree
a possible purchase.
Table 4 shows the impact of YouTube to the purchase decision and it was
shown that the respondents have strongly agreed that in terms of YouTube it can
impact their purchase decision. With the total average mean of 4.22 which has a
highest impact among the other two social media. It can’t be underestimated that
YouTube can greatly affect the purchase decision.
31
Table 5
Impact of Tiktok to the purchase decision (Mean)

TikTok Mean Verbal Interpretation

service is influenced by TikTok
advertisements.
TikTok advertisement helps me decide to

4.24 Strongly Agree
make a purchase decision.
Information searching is easier via TikTok 4.20 Strongly Agree

regarding to my purchase decision.
4.20 Agree
TikTok influencers affect my decision to
purchase a product or service.
Feedbacks/Comments/Posts on TikTok
encouraged me to make a decision about 4.22 Agree
a possible purchase.
Table 5 shows the impact of TikTok the purchase decision and it was
shown that the respondents have strongly agreed that in terms of TikTok it can
impact their purchase decision. With the total average mean of 4.22, the same
result with YoTtube which has also high impact towards the purchase decision. It
can’t be underestimated that TikTok can greatly affect the purchase decision.
C. Purchase decision of the respondent’s using Social Media Platforms.
32
Table 6
Purchase decision of the respondent’s using social media platforms (Mean and
interpretation).
Questions Mean Verbal Interpretation
Do you agree that Social media influences 4.24 Strongly Agree

your purchase decision?
Do you agree that Social media helps you 4.24 Strongly Agree
into making your purchase decision?
Do you agree that Social media helps you 4.21 Agree

to find new products or services you hadn’t
found on your own?
Do you think that social media affect your 4.20 Agree

purchase decision?
Do you feel encouraged to make a

purchase decision after watching some 4.21 Strongly Agree
sort of reviews using social media?
C. Regression Analysis
33
Table 7
Functional Relationship between Social Media and Purchase Decision of
Respondents
Source of Degrees Sum of Mean F F Decision Interpretation

Variation of Squares Squares Comp.
Freedo Tab
m a= 0.05
Due to 1 0.0013 0.0012
Regression
Reject
30.104 0.0119 Significant
Due to Ho
Deviations
from 3 0.0001 0.00004
Regression
Total 4 0.0014
Table 6 shows the relationship between Social Media and Purchase
Decision of Respondents. Since the F computed value of 30.104 is greater than
F tabular value of 0.0119 at (3,1) degrees of freedom at 5% level of significance,
the null hypothesis is rejected. Therefore, there is a significant relationship
between social media and purchase decision of respondents.
Chapter V
34
SUMMARY OF THE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This is the research report's concluding chapter. This chapter is organized
to describe the study's findings, conclusion and recommendations.
Findings
The following findings are presented as a result of the data gathered from the
respondents:
The majority of respondents were between the ages of 22 to 25. And the
majority of them that has responded were females.
According to the survey results, Facebook, YouTube and TikTok has
impact their purchase decisions and most of them base their purchase decisions
on these Social Media referrals.
According to the survey results, Facebook, YouTube and TikTok the same
overall weighted mean which signifies that has impacted to the respondents
purchase decision and affected their perception about products and services
before and after a purchase. Because most of them read reviews about the
products or services they are considering when purchasing, their perception of
those products and services may be influenced. And most of them look at online
reviews and comments about a product before deciding on the best brand and
price and it shows that these Social media affected while making their purchase
decision.
35
The study also found out that Facebook, YouTube and TikTok has
significant relationship towards the purchase decision of the respondents. In
determining the impact of social media to the purchase decisions of the BSBA
marketing management students, it was discovered that social media namely
Facebook, YouTube and TikTok has somewhat bring changes to their purchase
decision. It is no denying that social media is a useful tool for shopping and aids
in gathering enough information to make faster decisions in a variety of purchase
situations. The impact of social media on purchase decisions is already visible
and it is likely to grow in the future as new technology becomes available.
Conclusion
The amount of information available to people grows and as a result, we
are easily overwhelmed, prompting us to consider various aspects of the
information available on social media. Because the sharing of customer
experiences has become much faster and more available for all social media
users, brands have been compelled to become even more customer-centric in
order to prevent a negative reputation. To match today's consumer needs, social
media marketing should focus on producing high-quality and consumer-relevant
content (Kelly et al., 2020).
The purpose of this study was to determine if social media impacts the
respondents purchase decision. The findings of this study show that various
forms of social media marketing can influence customer purchasing decisions
and even create new demands by providing targeted advertising and simple
36
solutions to meet those requirements. However, rather of purchasing the goods
or service right away, the respondents are motivated to seek more accurate and
true information from social media once a purchase thought has been sparked.
To conclude, from the findings of this study, majority of the respondents
affected by social media on their purchase decision was aged 22 to 25 and
majority of them were female. The respondents are actively using social media
as a tool for validating purchase decisions and seeking relevant information.
Furthermore, social media marketing using Facebook, YouTube and TikTok has
significant relationship towards the respondents purchase decision.
According to Perumal (2018) in his study entitled the influence of social
media marketing on consumer buying decision making process. In this research
the Pearson,s Correlation analysis explores a positive significant relationship
between social media marketing and consumer buying decision making. It can be
seen how much it consumer buying decision is influenced and the real impact of
social media marketing reflected in the consumer in the consumer buying
decision making process.
Recommendations
The responses to the study and the interpretation of the data collected
have led to several recommendations and suggestions. With the assistance of
this study, the following recommendations and suggestions can be made:
37
 Since the world has become a global village, businesses and
entrepreneurs are advised to increase the usage of social media platforms
but choosing the best social media when reaching out to customers with
an ease and to improve customer feedback handling (Shankar et
al.,2011).
 Sorescue et al. (2011) suggested that businesses must go beyond the
advertising aspect of social media marketing such as Facebook, YouTube,
Instagram, Tiktok and Twitter. And find groundbreaking ways to use them
as a way to conduct conversations with consumers, instead of a one-way
communication network.
 Since social media sites can be exploited for the information it provides on
consumer behavior with regards to their purchasing intentions, research
further suggests that businesses should incorporate social networking
sites into their business model or promotional mix (Sorescue et al., 2011).
 This study also suggests on how businesses could initiate and maintain
social media marketing to improve relationships with their customer base.
To stay relevant businesses need to keep up with the changes to ensure
that they will be noticed by consumers, reinforcing the fact that more
research would be valuable to all parties involved: retailers, marketers,
and scholars (Gonzalez, 2018).
 Anyone who’s not engaged in some form of social media is a mistake in
today’s world given the volume of people have embraced and utilize social
media (Gonzalez, 2018).
38
 Social media opens up a whole new world for businesses by providing an
endless array of potential interactions with consumers, which is the main
reason why there is a need for an increase in studies examining the
impact of this new phenomenon on businesses (Curran et al., 2011).
 Customers should also be encouraged to visit the social networking sites
to get new information’s and to be abreast with the changes in the
operations of the businesses (Kelly et al., 2020).
39
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47
APPENDIX A
SURVEY QUESTIONNAIRE
Survey Questionnaire for the BSBA Marketing Management Students
of SEAIT, Inc.
This data collection tool has been designed to assist the researcher in
gathering information pertaining to “The Impact of Social Media Marketing to
the Purchase Decision of the BSBA Marketing Management Students of
South East Asian Institute of Technology, Inc.”. Kindly answer the following
questions as honestly and accurately as possible. You are guaranteed that any
information you provide is exclusively meant for the research and nothing else.
Your answer to the questions will be kept confidential.
√
Please complete this section by ticking the applicable box.
PART A. Demographic Profile
Name (Optional):
Age : 18-21 22-25 26-30 30-35 36-40
Sex: Male Female
48
PART B. Impact of social media marketing to the purchase decision (Facebook,
Youtube and Tiktok).
Direction: Please indicate your degree of agreement on the following
statements. Rate with the following scale: (5) Strongly Agree (4) Agree, (3)
Neutral, (2) Disagree, (1) Strongly Disagree.
Facebook Strongly Agree Neutral Disagre Strongly

Agree e Disagree
My decision to purchase a
product or service is
influenced by Facebook
advertisements.
Facebook advertisement
helps me decide to make a
purchase decision.
Information searching is
easier via Facebook
regarding to my purchase
decision.
Facebook influencers
affected my decision to
purchase a product or
services.
Feedbacks/comments/
posts on Facebook
encouraged me to make a
decision about a possible
purchase.
YouTube Strongly Agree Neutral Disagre Strongly

Agree e Disagree
influenced by YouTube
49
advertisement.
YouTube advertisement
helps me decide to make a
purchase decision.
easier via YouTube
regarding to my purchase
decision.
YouTube influencers
affected my decision to
purchase a product or
services.
Feedbacks/comments/posts
on YouTube encouraged me
to make a decision about a
possible purchase.
TikTok Strongly Agree Neutral Disagre Strongly

Agree e Disagree
influenced by TikTok
advertisement.
TIkTok advertisement helps
me decide to make a
purchase decision.
easier via TikTok regarding
to my purchase decision.
TikTok influencers affected
my decision to purchase a
product or services.
Feedbacks/comments/
posts on TikTok
encouraged me to make a
decision about a possible
purchase.
50
Part C. Purchase decision of the respondent’s using social media marketing.
Recent shopping trip Strongly Agree Neutral Disagre Strongly

based on using Social Agree e Disagree
Media:
Do you agree that Social

media influences your
purchase decision?

media helps you into making
your purchase decision?

media helps you to find new
products or services you
hadn’t found on your own?
Do you think that social

media affect your purchase
decision?
Do you feel encouraged to

make a purchase decision
after watching some sort of
reviews using social media?
Thank you for your time. GODBLESS !
51
APPENDIX B
LETTER TO THE DEAN
52
APPENDIX C
LETTER TO THE PRESIDENT
53
APPENDIX D
CRONBACH ALPHA
54
APPENDIX E
RESULTS OF SURVEY CONDUCTED
A. Demographic Profile of the respondents
Survey response on Gender
Survey response on Age
55
B. Impact of Social Media Marketing to the purchase decision of the
respondents (Facebook, YouTube and TikTok).
B.I Impact of Facebook to the respondents purchase decision.
56
B.2 Impact of YouTube to the respondents purchase decision.
57
B.3 Impact of TikTok to the respondents purchase decision.
58
59
C. Purchase decision of the respondents using social media platforms
60
61
62
APPENDIX F
COMPUTATION FOR MULTIPLE REGRESSION ANALYSIS
Facebook YouTube TikTok Average Purchase

x1 x2 x3 Social Media Decision
4.21 4.25 4.23 4.23 4.24
4.22 4.23 4.24 4.23 4.24
4.19 4.21 4.2 4.20 4.21
4.2 4.19 4.2 4.20 4.2
4.22 4.2 4.22 4.21 4.21
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.953612587
R Square 0.909376967
Adjusted R Square 0.879169289
Standard Error 0.006503134
Observations 5
63
ANOVA
df SS MS F Significance
F
Regression 1 0.001273128 0.001273312 30.10416667 0.11909374
Residual 3 0.000126872 8
Total 4 0.0014 4.22907E-05
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower Upper 95.0%
95.0 %
Intercept -0.513788546 0.862775923 -0.595506356 0.593438802 -3259526595 2.231949502 -3.259526595 2.231949502
Social Media 1.123348018 0.204739208 0.011909374 0.011909374 0.471776482 1.774919553 0.471776482 1.774919553
Chart Title
4.25
4.24
4.23
4.22
4.21
4.2
4.19
4.18
4.17
4.19 4.20 4.21 4.22 4.23 4.24
64
APPENDIX G
DOCUMENTATION
65
66
APPENDIX H
CURRICULUM VITAE
KATHLEEN C. GULMAYO
PurokSampaguita,Baranggay San Isidro,
StoNiño ,SouthCotabato
Contact: 09073707374
Kcgulmayo2019@gmail.com
Personal Background
Gender : Female
Date of Birth : January 11, 1999
Place of Birth : San Isidro Sto. South Cotabato
Civil Status : Single
Citizenship : Filipino
Religion : Roman Catholic
Language : Ilonggo
Father’s Name: Ireneo Gulmayo
Mother’s Name: Meriam Gulmayo
Educational Background
Tertiary South East Asian Institute of Technology, Inc.
BSBA-Marketing Management
At present
Senior High School Sto Niño National High School
67
Sto Niño South Cotabato

Accountancy, Business and Management
(ABM)
Year Graduated: 2017-2018
Junior High School Sto Niño National School of Arts and Trade
San Isidro, Sto Niño, South Cotabato
Elementary San Isidro Elementary School

San Isidro, Sto Niño, South Cotabato
Employment/Working Experience
 SPES at LGU Sto Niño

 RESCUER at MORROW Sto Niño
 OJT
68
JAN JOVEL A. LAÑOHAN

Sitio Valencia, San Vicente, Banga, South Cotabato
Contact: 09305636553
lanohanjanjovel@gmail.com
Personal Background
Gender : Female
Date of Birth : January 13, 2000
Place of Birth : Marikina, Maternity Clinic
Language : Ilonggo, Tagalog
Father’s Name: Jose Joel P. Lañohan
Mother’s Name: Violeta E. Antequera
At present
Senior High School San Vicente, Senior High School

San Vicente, Banga, South Cotabato
General Academic Strand (GAS)
69
Junior High School San Vicente National High School

San Vicente, Banga, South Cotabato
Elementary San Vicente, Elementary School
San Vicente Banga, South Cotabato
 Job Immersion at LGU Banga
70
MARITESS T. LEPITEN
Prk. Kawit, Brgy.Maligo,Polomolok, South Cotabato
Contact: 09777008633
maritesslepiten5777@gmail.com
Personal Background
Gender : Female
Date of Birth : March 16, 1999
Place of Birth : Kawit, Maligo, Polomolok, South Cotabato
Religion : Seventh Day Adventist
Language : Cebuana
Father’s Name: Eleuterio S. Lepiten
Mother’s Name: Geraldine T. Lepiten
At present
Senior High School Polomolok National High School

Octavio Village, Cannery Site, Polomolok,
South Cot.
71
Accountancy, Business and Management

(ABM)
Junior High School Polomolok National High School

Octavio Village, Cannery Site, Polomolok,
South Cot.
Elementary Kawit Elementary School

Kawit, Maligo, Polomolok, South Cotabato
 Job Immersion at LGU Polomolok
72
PRECIOUS JAYLAH T. LUMA-AS

Prk. Bumanaag,Bgry. Zone III,Koronadal City, South Cotabato
Contact: 091039150
lumaas24@gmail.com
Personal Background
Gender : Female
Date of Birth : November 25, 1999
Place of Birth : Koronadal City
Religion : Born Again
Language : Ilonggo, Bisaya, Tagalog
Father’s Name : Rev. Jojo E. Luma-as
Mother’s Name: Ptra. Chona T. Luma-as
At present
Senior High School ACLC COLLEGE OF MARBEL

TVL- Programming
2017-2018
Junior High School PHILIPPINE COLLEGES OF THE SOUTH INC.
73
2015-2016
Elementary KORONADAL CENTRAL ELEMENTARY SCHOOL2

2011-2012
 Helper at Binaryokambingan
 OJT in DTI Koronadal City
74
MARY JOY F. MEJARES

Purok Magsaysay, BaranggayPuti, Norala, South Cotabato
Contact: 09559126787
maryjoymejares0818@gmail.com
Personal Background
Gender : Female
Date of Birth : August 18, 1999
Place of Birth : Surallah, South Cotabato
Language : Ilonggo
Father’s Name: Romy L. Mejares
Mother’s Name: Elnora F. Mejares
At present
Senior High School Koronadal National Comprehensive HS

Koronadal City, South Cotabato
Information Communication Technology (ICT)
75
Junior High School BaiSaripinangNational High School

BaiSaripinang, Bagumbayan, Sultan Kudarat
Elementary B. Venus Elementary School

BaiSaripinang, Bagumbayan, Sultan Kudarat
 Job Immersion at Marbel Computer Center ( MCC)
76
EDZEL MAE P. PATRIARCA

PUROK ROSAS, DAJAY, SURALLAH, SOUTH COTABATO
Contact: 09753325230
patriarcaedzelmae@gmail.com
Personal Background
Gender : Female
Date of Birth : June 19, 1999
Place of Birth : Antipas, North Cotabato
Language : Ilonggo
Father’s Name: Eduardo Patriarca Jr.
Mother’s Name: Wanna Patriarca
At present
Senior High School Surallah National High School

Surallah South Cotabato
77
Junior High School Surallah National High School

Surallah South Cotabato
Elementary Shri- Bisaya Elementary School

 SPES at Municipality of Surallah
78

The Impact of Product Quality On Customer Retention

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The Impact of Product Quality On Customer Retention

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Business Administration Department

South East Asian Institute of Technology, Inc.

THE IMPACT OF SOCIAL MEDIA MARKETING TO THE PURCHASE

LIST OF APPENDICES vii

Statement of the Problem 2

Significance of the Study 3

Scope and Delimitation of the Study 5

II CONCEPTUAL FRAMEWORK AND REVIEW OF RELATED

LITERATURE AND STUDIES

Review of Related Literature and Studies 7

Locale of the Study 21

Respondents of the Study 22

Sampling Size and Sampling Design 23

Data Gathering Tools 25

Data Gathering Procedure 26

IV PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Demographic Profile of the Respondents 31

Impact of Social media platforms to the purchase decision 33

Purchase decision of the respondents using social media 36

V SUMMARY OF THE FINDINGS, CONCLUSIONS AND

In today’s time, social media has become an important platform in

The purpose of this study is to determine if social media marketing

impacts the purchase decision of the BSBA Marketing Management of SEAIT,

The researchers used quantitative research design specifically a

descriptive research design in order to emphasize objective requirements. The

statistical, mathematical or numerical data were collected through questionnaires

and surveys. The researchers adopted simple random sampling so the

respondents will be chosen fairly since they are already known.

marketing such as Facebook, YouTube and TikTok can influence customer

relevant information when making a purchase decision.

Table Title Page

1 Five Point Scale 29

2 Survey response on Sex Distribution 32

3 Impact of Social media platforms to the Purchase

Decision (Mean and interpretation) 32

4 Purchase decision of the respondent’s using social

5 Purchase decision of the respondent’s using social

media platforms (Mean and interpretation) 35

6 Functional Relationship between Social Media and

Purchase Decision of Respondents 37

Figure Title Page

1 Conceptual Framework of the Study 7

3 Exact Location of SEAIT, INC. So. Cot. 22

4 BSBA Total Population per Year Level 23

5 Data Gathering Procedure 25

6 Survey response on Age Distribution 31

Appendices Title Page

Appendix A Survey Questionnaire 50

Appendix B Letter to the Dean 56

Appendix C Letter to the President 57

Appendix D Cronbach Alpha 58

There is no doubt that in the current global market, where competition

continuously change, the meaning of the quality of a product is not to be

overlooked. The product can be offered to the market to be noticed, used,

owned, or consumed to satisfy a want or need (Firmansyah, 2019). It is, indeed,

in the Philippines, the city of Koronadal, South Cotabato.

Everywhere in the globe, companies are having a hard time in terms of

staying on top of the game in a competitive economic environment that changes