CHAPTER I

INTRODUCTION AND BACKGROUND OF THE STUDY

INTRODUCTION

"We see our customers as invited guests to a party, and we are the hosts. It's our job every day to make every

important aspect of the customer experience a little bit better" - Jeff Bezos

For a business making their customer experienced the sense of satisfaction should be their goal not just to earn

profit. This quotation reflects as a reminder on how important customer is. In the business there are always

competitors and this will be the highlight, the competition. This study focuses on the competency based on

customer service and satisfaction of the two coffee shops namely Pet lovers cafe and Dinner Dogs.

Customers are one of the key for a business to success, different strategy, theory and studies are formulated as

a guideline for the business. One of the famous coffee shops in the Philippines namely the Honesty Coffee

Shop was started to operate on September 25 1995 at Island of Sabtang, the owner Elena Castao Gabilo a

teacher retired at 60 her spouse Jose build a make shift shelter as it started you would find a coffee, sugar and

hot water . There is also a stove where you can cook rice and heat water, the unique concept of the shop makes

it a tourist attraction at Batanes, the travelers are serving their own inside the shop and feel like home because

there is no personnel are with them and with their honesty they just leave their payment for the goods and the

owner of the shop will clean and just collecting whatever has left as payment after 5 pm.

The concept and the idea where the customers are being challenged to do what is right even no one sees them,

where you as a person being measured, that's the strategy for the customer feel the satisfaction even no one

serves them, the satisfaction that they get after leaving the Honesty coffee shop, the feeling of being a honest

person and feel of being trust.

As customers discovering new places, concepts and styles for them to relax and found the satisfaction they

longing for, the customer will response positively to the service of the business where resulting customer

loyalty and product repurchase. Every customer has his or her expectations as far as their dealing with the

business organizations are concerned. They therefore desire that their expectations are met by their service

provider or suppliers (Kotler, Armstrong and Saunders and Wong 2002) The customers is one of the most

important element in the business and it's satisfaction has a great impact. If the business specifically in the
coffee shop fails below the expectations then absolutely the customer will be dissatisfied, if the service

correspond to the expectations then it will be satisfied but if the service will be more than just what are the

customers expecting, they are creating a delighted customers that can be their assets.

This study is necessary in terms of; it will help the business most specially the coffee shop industry to be

ready, prepared and get an idea what strategies their going to use to catch the attention of their prospective

customers. The customers are the main benefactors of this study because if the business goal is to satisfy them,

then they are the one who receive the treatment. As for the researchers that are ABM students, it would help

them to enhance their knowledge and strategic capabilities especially in terms of marketing. This study aims to

compare the customer satisfaction of the two coffee shops and to analyze the factors and effect of it to the

business.

BACKGROUND OF THE STUDY

Customer Satisfaction is an overall psychological state that reflects of a relationship between the

Customer/customers and a company environment-product-service. Satisfactions have involve

three psychological element: Cognitive (think/evaluation) Affective (emotional/feeling) and

behavioral customer satisfaction is really important and can't be overstated because without

customers, the service firm has no reason to exist. So every service business needs to proactively

define and measure customer satisfaction (Hoffman and Bateson, 1997).

Customer satisfaction helps companies in many ways such as: Customer satisfaction information

helps companies to evaluate their ability in meeting customers' needs and expectations

effectively (Zeithaml et al, 2009).

It also helps companies to analyze the performance of an offering to customers in order to

identify areas for improvements as well as what areas customers consider to be very important to

them (Zeithaml et al, 2009).

The competency based on customer satisfaction indicates the following; price fairness, (Herman

et al., 2007 Kukar-Kinney Xia and Monroe, Martin consue gra,Molina and Esteban, 2007) price

fairness is a customers' assessment of whether a seller's price is reasonable ,acceptable or

justifiable. Taste and Quality of the product are important because the customer ate willing to

spent more for a product or service that is quality. Ambiance is essential in a business the

customers being satisfied not only on the goods or service but the cleanliness, safety and we'll

organized environment are expected too.

SIGNIFICANCE OF THE STUDY

The findings of this study will benefit the Business and customers considering the level of

competency based on customer satisfaction between pet Lovers cafe and Diner Dogs. The result

of this study would be great contribution to the following:

To the Business. This study will give them the idea on how they can meet the satisfaction of their

customers for their business.

To the Customers. The researcher can be their voice to help them to reach out their opinion to the

business and make their satisfaction reach.

Marketing Major. This study may serve as a reference and guideline to create a new strategy

were the satisfaction of their customers are on top.

Future Researchers. This research may serves as a reference and a good source that can help

them to achieve the specific goal to their study.

STATEMENT OF THE PROBLEM

Generally, this study aims to determine Level of Competency based on Customer Satisfaction

between the Pet Lover's Cafe and Diner Dogs in Pacita, San Pedro Laguna.

This research attempts to find specific answers to the following questions:

1. What is the demographic profile of the respondents?

1.1 Age;

1.2 Gender;

1.3 Civil status;

2. Is there significant relationship between customer satisfaction and price fairness?

3. Is there significant relationship between customer satisfaction and taste and quality of

product?

4. Is there significant relationship between customer satisfaction and ambiance of the shop?

Objectives

The objectives of this research paper are the following:

1. To know the level of competency based on customer satisfaction between pet lovers cafe and

Diner dogs.

2. To know if there is a significant relationship between customer satisfaction and price fairness.

3. To know if there is a significant relationship between customer satisfaction and taste and

quality of product.

4. To know if there is a significant relationship between customer satisfaction and ambiance of

the shop.
STATEMENT OF HYPOTHESIS

The Null Hypothesis (Ho):

1. There is no significant competency based on Customers Satisfaction between Pet Lover's Cafe

and Diner Dogs at Late Shift in Pacita, San Pedro Laguna.

2. There is no significant relationship between customer satisfaction and price fairness.

3. There is no significant relationship between customer satisfaction and taste and quality of

product.

4. There is no significant relationship between customer satisfaction and ambiance of the shop.

Alternative Hypothesis:

1. There is a significant competency based on Customers Satisfaction between Pet Lover's Cafe

and Diner Dogs at Late Shift in Pacita, San Pedro Laguna

2. There is a significant relationship between customer satisfaction and price fairness.

3. There is a significant relationship between customer satisfaction and taste and quality of

product.

4. There is a significant relationship between customer satisfaction and ambiance of the shop.
CONCEPTUAL FRAMEWORK

A conceptual framework is an analytical tool with several variations and context. It is used to

make conceptual distinctions and organize ideas. Strong conceptual frameworks capture

something real and do this in a way that is easy to remember and apply.

PRICE
FAIRNESS
(IV)

CUSTOMER TASTE AND

QUALITY OF
SATISFACTION PRODUCT

(DV) (IV)

AMBIANCE OF
THE SHOP
(IV)

The independent variables are the factors that cause an effect to the outcome which is the

dependent variable. The stated independent variables are three of the most important factor that

might have a great impact to the dependent variable of this study. As stated in this study the

dependent variable is the customers satisfaction and the independent variable are price fairness,

taste and quality of the product and ambiance of the shop.

THEORETICAL FRAMEWORK

The theoretical framework introduces and describes the theory that explains why the research

problem under study exists.

The confirmation model. Oliver and DeSarbo ideology (1988), states that satisfaction is linked to

customer expectations, the outcome is known as (dis)contentment. For example; we are happy

when the air-conditioner keeps the room cool. However this state of happiness becomes

discontentment if our expectations are not met (Kotler 2003), like it is the case when internet

buses are too noisy or uncomfortable seating and the use of unsatisfactory products such as

dripping taps or low life bulbs.

The disconfirmation model. Westbrook and Oliver, 1991) demonstrated that consumer

subdivided their (dis)satisfaction into three components; they separate negative emotions from

positive satisfaction, and further divide positive satisfaction into; one part linked to surprise and

another part based on interest. If this holds true, the questionnaire for customer satisfaction must

include items that that addresses these different items. Similarly, in the research and design of

products, you may need to take into account these different ways of reacting to them if you want

to give full satisfaction to your customers.

Taking into account the views of Oliver (1980) and Bitner (1990), there is now evidence to

suggest that it is satisfaction that drives service quality. Regardless of the school of thought

taken, it all leads to the conclusion that service quality and satisfaction have strong relationship.

In turn, both are vital in helping buyers develop their future purchase intention. But we must also

take into account the fact that, quality improvements that do not focus on customer needs, will

not lead to improved customer satisfaction.

Scope and limitation

This study focuses on the customers at Pet Lovers Cafe and Diner Dogs at Pacita , San Pedro

Laguna, regarding to the competency based on Customer satisfaction on the stated coffee shops

or cafe . The satisfaction of the respondents are measured by the price fairness ,taste and quality

of the product and ambiance of the shop. Due to time constraint and limit of people, this study is

limited to the location and customers that is present on the day that the researchers conducted the

survey.

DEFINITION OF TERMS

Terms here defined for the better understanding of the reader.

Accountancy Business Management (ABM).Strand of Academic Track for Senior High School

(SHS)

Affective. Relating to or influencing feelings editions of the costumers satisfaction to the

services

Ambiance. Essential in a business the costumers being satisfied not only on the goods or services

but cleanliness safety well organized environment are expected too

Behavioral. The way the costumers acts or Behaves to the quality services

Cognitive. Involving the understanding learning to the services that needed

Competency. A ability or skill of services

Confirmation - proof which shows the costumers is something true or correct

Dealing. A way of behaving or doing services

Delighted. Feeling or showing great pleasure or satisfaction of the costumer for the services

Dependent. The various benefits will be dependent on length services

Discontent. Not pleasure or satisfied to the services

Evidence. Services that shows by the costumers

Highlight. By being interesting, exciting of the costumers

Independent Variables .The factors that cause an effect to outcome which is the depenet variable

Justifiable. Capable of being justified of the costumers to meet their expectations

Overstated. Is a largest, greater that expectation of costumer to the services

Price Fairness. Customers assessment of whether a sellers price is reasonably, acceptable or

justifiable

Proactively. Controlling a situation for making strategies in the future

Prospective. Likely to be in the future that can be more prepare to gain more idea

Psychological. Related to the study of mind of the costumers or relating to the services

Quality. A high level of value satisfaction of the customer

Satisfaction. Fulfillment of ones wishes, expectations, needs or the pleasure derived from the

customers.

Shift. One of two or more recurring period in which different groups of workers do the same jobs

in relay

Unsatisfactory. For not good enough or not satisfied for the services

Variations. Something that is similar to the both coffee shop but different in someway

Vital. Extremely important is the prevention of the customers

Conceptual Framework

INPUT THROUGHOUT OUTPUT

Level of Competency Factors affecting Customer Implication to good quality of

I. Profile of the respondents in Satisfaction Customer Satisfaction in

terms of Survey Questionnaire Petlover's Cafe and Diner

1.1 Age Data Gathering Dogs in Pacita, San Pedro

1.2 Gender Laguna

1.3 Civil Status

1.4 Position

II. Customer Satisfaction

1.1 Price Fairness

1.2 Taste and Quality of

Product

1.3 Ambiance of the Shop

Input demonstrates as the problem of the study and gives information about the profile of the respondents

of this study and the factors that affect customer satisfaction. The throughout is the process of gathering

the information to conclude a result that is visible in the output.