1

CHAPTER 1

Background of the Study

In a business, a company in the same industry will naturally became a rival to

each other. Competitions would always occur once you enter the business world.

Competition requires your business to be more efficient so that your company will be

able to maintain its profitability.

In China according to, Parmjit and Dhaliwal (2012) spotted the growing trend of

Chinese buffets around the world and at the same time the customers demand that is

continuously increasing. So, they decided to improve the design, quality and freshness

of their buffet food so that it met a la carte standards. As the economy gets tougher, the

people have less disposable income and become very cautious about where their

money is spent.

In Metro Manila, a researcher had a great review about Chef Robert Spakowski

of Tapella that is located in Metro Manila. This business has its flows when it comes to

their service and quality of the food. Chef Spakowski remains firm on his standards

when preparing a food. He said that working or traveling aborad could help you discover

more knowledge and ideas about the different cuisines that you can made. (Simisim,

2015)

In Davao, Davao Foodie Online Food and Restaurant Review (2015) conducts a

research about Rekado Davao. Rekado is not a classy but instead it is a pocket friendly

restaurant. It has a lot of facilities that you can embrace such as spacious dining area

and long tables that can accommodate larger group of people. They also have these

kinds of food that anyone could love.

 2

A business should have a marketing status for it to become more aware of their

status. It must be also evaluated so that they will become aware on their strategies in

sustaining the life of their business. This study could also be able to help any pioneering

business right now. No business should put away this kind of responsibility in their

business. A business can either grow or die depending on how efficient the strategies

that the business is taking Aremu and Lawal (2012)

Significance of the Study

The findings of this study will help the businessman or entrepreneur to increase

the rate of their knowledge on how to deal with their competitors and how to adequately

gain profit in their company. This will help the businessman to be more effective on their

field and to help their business succeed. Thus, the company that applied the effective

strategies in building their business will be much more compelling. And by these

actions, the business itself will continue to grow in the following years. Thus, a new

theory on how to effectively deal with your business strategies and business

competitors may be arrived at.

Purpose of the Study

The purpose of this study is to determine, inform, identify the effect of marketing

strategies on the performance of restaurant in Davao City. Determine the different

marketing strategies that a restaurant used in business and how it helps to improve the

employees performance with regard in communication, personal as well as professional

and the customer preference in terms of price, quality and service. In addition, this study

also inform and helps businesses to improve and create an effective marketing
 3

strategies to deal with different competitors. Lastly, this study also identify the different

marketing strategies that has been established in businesses in advertisement, product

and location where being used to start in taking into business.

Statement of the Problem

The main objective of this research is to determine the effect of the different

types of marketing strategies on the performance of restaurant in Davao City.

Specifically, it sought to answer the following questions:

1. What are the effect of Marketing Strategies in terms of:

1.1. Advertisement

1.2. Product

1.3. Location

2. What are the effect of Employee Performance in terms of:

1.1. Communication

1.2. Personal

1.3. Professional

3. What are the effect of Customer Preference in terms of:

3.1. Price

3.2. Quality

3.3. Service

4. Is there a mediating effect of Marketing Strategies to Employee Performance and

Customer Preference in restaurant on Davao City.

 4

5. There is no mediating effect of Marketing Strategies to Employee Performance

and Customer Preference in restaurant on Davao City.

Theoretical Framework

Selznick P. (1960) proposed a study that will help us to understand why

restaurant businesses stands out despite of having various big-time competitors. The

Theory of SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) in

1960' states that to evaluate the strengths, weaknesses, opportunities, and threats that

is involved in a marketing or business project. The entrepreneur needs to specify the

objective for the project and then identify the internal and external factors that will have

a positive as well as negative impact on the objective. This statement helps us to

understand that we must consider the capabilities, marketing strategies and finances of

the business. This theory has been applied to any marketing strategy relates to

identifying growth opportunities by utilizing SWOT Analysis. It is significant to our

study since strengths in SWOT Analysis represents a restaurant business edge in the

sense that their business remains stan0d out against to their business competitors.

In addition, once a business or company has identified the strengths,

weaknesses, opportunities and threats of any marketing scheme, it becomes simpler to

address those opportunities and consider what course of action should be taken to

mitigate any threats. It is equally important that boards remain engaged in the process

of delivering their chosen strategy over a prolonged period of time. Senior management

must ensure they stay informed and remain open to new ideas to further the company’s

brand.
 5

According to Richard Summerfield, for all firms, whether a modest start up or a

multinational giant, an effective marketing strategy can serve as a crucial road map for

the entire business. Marketing should be more customers oriented which is covered a

lot of things related to the customers such as advertising, pricing, promoting and many

else. Brandt (2011) in addition, marketing strategies often require company-wide

discipline and governance to ensure they are being implemented effectively and

efficiently. Summerfrield (2014)

Conceptual Framework

This study focuses on the effect of marketing strategy to employee performance

and customer preference. The researchers based on the assumption of Nashman

Mohammad Abdullah Saif (2015) that marketing strategies has been a focus of

organization and a tool for attaining overall firm performance.

Marketing strategies may be affected by employee performance (external factor)

while the customer preference may also be affected by the marketing strategies

(internal factor). These relationships are illustrated in Figure 1.

 6

Marketing Strategies Customer preference

 Advertisement  Price
 Product  Quality
 Place  Service

Employee performance

 Communication
 Personal
 Professional

Figure 1: It shows the mediating effect of the following variables.

Importance of the Study

We conduct this study to know the performance of an employees and how it

effects to the customers, to discover more knowledge and ideas about the different

cuisine that made up in restaurant of Davao City. And how to handle a big business

when it comes to a company and marketing and to manage the different types of a

restaurants here in Davao City. And to know the strategies of an employees and if it is

effect their performance, and how to build a marketing/company in a longer time of

period.

What the procurable of our study is to enhance our knowledge and skills and to

help business success specially when we our jobs yet.

 7

Scope and Delimitation

Since the study is only focusing in restaurants at Davao City, the researchers are

setting a limit to what extent the study can reach. The researcher conducts survey to the

said place in order to identify and know why the business stand stronger as well as the

researchers choose the said place for the convenience and accessibility of the

researchers and respondents. The management and staff from City Proper of Davao

City who are the employees of restaurant business were purposively selected to answer

the given structured questionnaire. The study delimited itself to the selected

management and staff of restaurant of Davao City only. Cite

Definition of Terms

Part of the objective for this study was to clarify the definition of terms in

feasibility quantitative research and adopt a common terminology. The terms used by

the researchers should give the definitions for the future researcher and understand by

the readers.

Review of Related Literature

There are a lot of strategies and action plan that an entrepreneur or business

man will do in order to maintain and achieve their company's goal and objective.

Businessman do these kinds of actions to stand out in the business world. All

businesses face competition. Even if they are the only restaurant in town they also

compete with cinemas, bars and other businesses where their customers will spend

their money. Their competitor could be a new business offering a substitute or similar

product that makes their own redundant. Competition is not just another business that
 8

might take money away from them. It can be another product or service that's being

developed and which they ought to be selling or looking to license before somebody

else takes it up (Canada Business Network, n.d.).

The researchers reviewed some studies that relates the researchers study.

There are studies in some other places in the world are so much the same with the

conducted study of the researchers. It shows the relativity of our following variables.

Restaurant.

For many years, people start to curious on what makes the old lasting business

stand stronger for all of these years despite of having a lot of big-time competitors. This

controversy has been dominated discussions to the entrepreneurs not only here in

Davao but also in the world. This can specifically help them to understand and to have

the idea on how to make their business lasts longer. The La Degustation in Czech

Republic is one of the old restaurants in the world it is run by OldřichSahajdák. It was

selected as the best restaurant in the Czech Republic because aside from its seven-

course tasting menus their amenities are also good and their staff is accommodating. In

the Philippines, the New Toho Food Center is the oldest restaurant in Manila. According

to one of New Toho’s owners, Kathleen Wong, the restaurant’s secret to longevity is

their food’s consistency. People who have eaten in Toho are guaranteed the same taste

even after decades. (Go C.,2014). Having a long-lasting business depends on the

performance of a company. Thus, Evaluating the performance of a certain company

helps a company to achieve its goals. According to Logan D., (2017) Performance

evaluation is integral for a business as it allows assessing which areas needs

 9

improvement and then make necessary strategies to overcome those highlighted

issues.

Employee Preference

The concept of behavioral intentions is still based on Ajzen’s TPB.

Ajzen (1985) maintains that TPB can effectively interpret and predict intention or

behavior. Ajzen hypothesized that three predictive variables: attitude, subjective norms,

and perceived behavioral control will mutually affect each other. Intention is affected by

different levels of attitude, subjective norms, and perceived behavioral control. In other

words, TPB consideration dimensions do not only involve individual internal factors, but

also external affecting factors. When measuring the concept, Ajzen (1991) believes that

attitude is formed by behavioral belief caused by an individual’s engagement behavior

multiplied by the individual’s evaluation of these results. Subjective norms are formed by

an individual’s conviction stemming from behavior that the individual thinks he/she

should not be engaged in, based on an important reference subject multiplied by the

individual’s motivation based on the important reference subject. Perceived behavioral

control is formed by an individual’s belief in the control he/she has over possessed

resources or obstacles faced in the behavior the individual is engaged in multiplied by

the in dividual’s perceived ability to control these resources or obstacles.

Customer Satisfaction

According to Click (2015) only 50% of many businesses can reach the first 5

years and one-third make it past the 10-year mark. Standing out among the competitors

is one of the critical to the company’s success. One strategy to make the business
 10

stands out is specialization. To specialize means it is focusing on one particular area of

practice. In addition, click stated the ten ways to stand out from the competition such as

deliver extraordinary service, address customer pain points, do business differently than

your competitors, focus on a narrow niche, create a powerful offer or guarantee, create

a memorable-culture, create a cause marketing effort, become a social business, be

quirky and weird and surprise and delight your customers. There are many ways that a

company stand out; deliver extreme value, give something valuable away for free,

create unique partnership or build powerful communities.

This proves that even a small kind of business must have the qualities above and

comprises of strong marketing strategy in order to see the growth in the company. For

this reason, a challenging environment causes start-ups to be tightly focused on

satisfying customer needs along with lowering and containing costs. Managers

understand that the benefits of early competition can work to create conditions that will

heighten its effect. Smart managers of young businesses will bear in mind the

advantages of exposure to their business and will be generate a long-lasting positive

effect on efficiency and survival. Burke A. & Hussels S., (2013) Furthermore, according

to Edwards T., (2013) there are 5 simple ways to stand out among the business

competitors. First, create evangelists, this will help you to gain customers within your

demographic. Second expand your network. Third, Pursue an awesome personal life.

Fourth, Be a problem solver. And lastly, Own your value. A variety of research shows

that today’s customers place a priority on receiving great service. A 2011 report

published by American express revealed that 3 out of 5 customers were willing to give

up a former favorite brand in order to have a better service experience (Citi G., n.d.).
 11

Thus, customer loyalty is one of the competitive advantages in the business. The above

affirmation can also be proven by the statement of Forleo M “Caring is the most

powerful marketing strategy there is.”

In summary, having a lot of competitors is not the main problem. According to the

theory of Competitive Analysis, the performance of a company within a market is

directly related to the possession of key assets and skills. Therefore, an analysis of

strong performers should reveal the causes behind such a successful and long-lasting

company. This analysis, is given to prove that the business man, entrepreneur or the

young people who want to enter the business world need to establish this competitive

advantage clearly so that they can understand on how to achieve and what they are

going to do to make their strategies effective.

 12

CHAPTER 2

Research Design

This research employed a quantitative design which is more appropriate

approach because it focuses on gathering numerical data and generalizing it across

groups of people which is to be used to explain the particular phenomenon. This help to

evaluate the performance of restaurant and to know their marketing strategies.

Lohrey J., 2018 expound that evaluating the performance of a certain company is

a must because, it provides an objective method for testing the efficiency and

effectiveness of a business strategies. It also helps to outline their strategic plans for

achieving their marketing business goals. The detailed descriptions or interpretations

brought by the respondents in the survey should be as representative of experienced

reality as possible. In addition, this study is important in explanatory studies conducted

for a problem that has not been studied more clearly, demand priorities, generates

operational definitions and provides a better-researched model. Yousaf M., (n.d)

The data obtained through a quantitative research is important because it uses

numeric and unchanging data and detailed, convergent reasoning rather than divergent

reasoning. Babbie, E. (2007)

Research Participants

This study purposively selected the restaurants staff, management and

customers. The questionnaire was administered to these respondents because they are

the ones who are knowledgeable to answer the problem in the present study. They

were asked to rate each statement in the questionnaire and supply the other information
 13

needed. Among the 10 respondents there were 4 staffs 4 customers and 2 persons in

the management who participated in the survey. The age of the respondents ranges

from 18 to 40 years old.

Data Sources

Data Collection

The researchers asked permission from the respondents or management

and staff of the restaurants business through a consent letter requesting them to
participate in the study by asking them if what are their marketing strategies / strategies
which makes their business stands out against their business competitors, and by
clearly explaining the research study to them as well as for ensuring that the qualified
respondents or management and staff of restaurants business clearly understand what
it means to participate in a particular research study.

It should be noted further that during the actual data gathering, the researchers
properly instructed the respondents by separately in the proper way of answering the
questionnaire in such a way that the goals of the study would be met. During the
conduct of the study, they answered the structured questionnaire, and any clarifications
and doubts must be answered directly to promote data correctness and truthfulness.
Ethical guidelines in the conduct of research were ensured such as informed consent
and confidentiality.

The responses of the respondents or management and staff of restaurants

business were analyzed and interpreted using the appropriate statistical tools.
Thereafter, conclusions and recommendations were formulated after the data were
analyzed
 14

Data Analysis

The analysis of qualitative research involves aiming to uncover and / or

understand the big picture - by separating the data of the participants like gathering all

the similarities and differences that will be recognized the problem. According to Waters

J. (2017), The first principle of analysis of phenomenological data is to use an emergent

strategy, to allow the method of analysis to follow the nature of the data itself which may

emerge or change in the course of the performance of the analysis.

As much as possible, this analysis will figure out how doeas the marketing

strategies affect into the performance of the said business. The data that was gathered

were systematically right and evaluated. In addition, data should also be concluded and

be drawn in order to identify the specific problem and answer. To form a result, this

should be concluded by the researcher that will analyze the findings and establish if any

valuable new information has been uncovered. The conclusions from this kind of

research may have the development of a new hypothesis for further studies.
 15

REFERENCE

Lohrey, J. (2018). Importance of Strategic Evaluation. Retrieved on July 23, 2018 from

https://yourbusiness.azcentral.com/importance-strategic-evaluation-25658.html?

Yousaf, M. (n.d) Explanatory Research Definition, Types, Comparison, Advantages and

Disadvantages. Retrieved on September 07, 2018 from

https://scholarshipfellow.com/explanatory-research-definition-types-comparison-

advantages-disadvantages/