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CHAPTER 1
1.1 Rationale
employs a small number of workers and does not have a high volume of sales. Such
enterprises are generally privately owned and operated sole proprietorships, corporations
interact with daily. It is a business that purchases finished product and resells them to
term that encompasses promotional activities run by the manufacturer in the form of
special presentations that take place within establishments, as well as initiatives run by
the retailer to make the product stand out. In any case, merchandising refers to
commercial actions at the point of sale aimed to stimulate customerś purchases as soon as
they enter the establishment. Traditionally, it was conceived as a way to motivate the
because they provide fast and convenient ways of transactions for business. These
security, taxes, various management reports and many more (Davis and Wang, 2015).
Therefore, with large volume of customers in supermarkets and the growing competitive
Janes (2011) stated that computers are extremely reliable device and very
powerful calculators with some great accessories applications like word processing
problem for all of business activities, regardless of size, computers have three advantages
over other type of office equipment that process information because computer are faster,
more accurate more economical. Reyes (2005) stated that a task would be time
consuming to accomplish manually and more practical with the aid of computers field in
cabinet.
Also known as the point of service or POS, the point of sale is the exact point in a
transaction when goods or services are provided to the customer and payment is rendered
for those products. While the specifics of a point of sale system will vary somewhat from
one situation to another, the final outcome is always the same (Tatum, 2010).
Point of sales (POS) software is a type of software that retail store use to calculate
their sales and operate the cash drawer; it is a computerized cash drawer. Point of sales
add up the sales total and calculate the change. When customer buy items from retail
store, point of sales will minus or debit the amount of item sold in the inventory system.
At minimum, POS should be able to handle sales and manage your inventory database
(Harmon, 2010).
POS system is the core for business analytics by providing management with
access to comprehensive historic sales information. POS software helps to identify "not
only daily and weekly POS performance, but also inventory levels by location, order
status, warehouse and store out of stocks and in stock percentage (in-stock in a store as a
Thus, the study aims to know the usability of point of sale system between small
scale businesses.
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1.2 Statement of the Problem
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This study will be conducted to determine the difference on the usability of Point
a) Profitability
b) Productivity
c) Sales
Fig. 1 Paradigm
The figure above shows the input-process-output flow of the study. The
researchers will identify the difference on the effectiveness of using point of sale and
Bayombong, Nueva Vizcaya and Solano, Nueva Vizcaya. The researchers will gather
data through evaluation surveys. It is expected that there will be a significant difference
on the effectiveness of using point of sale and inventory management system in selected
Vizcaya.
The researcher will focus only on the difference on the effectiveness of using
between Bayombong, Nueva Vizcaya and Solano, Nueva Vizcaya. A survey with the
The researcher will conduct this research to determine the difference on the
usability of point of sale system in selected small scale businesses in Solano, Nueva
Everyone, for them to know the significant difference on the usability of point of
Business Owners, for they will have an idea about the usability of point of sale
The people who plan to start a business, for them to know some points to
The people who plan to buy point of sale system or inventory system, for them
to know some points to consider in choosing the right point of sale system based on users
and professionals and if it will be effective in their business and to know the usability of
The producer, for them to know the standards of the user in purchasing point of
sale system system, to know what they are lacking and to gain ideas regarding the making
of point of sale system to add up some useful features and to know if it is effective or not
and to make adjustments on negative effects that the product might bring.
Definition of Terms
Respondents - Business owners and staffs in Nueva Vizcaya that use Point of Sale or
Inventory System.
CHAPTER 2
This section contains literature and studies on small scale business, merchandising
business, point of sales system. These materials were gathered from journals and other
periodicals, theses and dissertations, online sources, and other unpublished materials.
These material provided the researchers with an exhaustive review of the topic and the
Small scale businesses (SSBs) are sources for economic growth and development
for every country, because as they grow, their economy grows too. In this era
industrialization, where the development index of nations are measured basically on their
achievement in terms of provision of welfare to their populace, small scale business play
(Kuratko, 2005). Thus, Ayanda and Laraba (2011) described small businesses as "mighty
employs a small number of workers and does not have a high volume of sales. Such
enterprises are generally privately owned and operated sole proprietorships, corporations
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interact with daily. It is a business that purchases finished product and resells them to
term that encompasses promotional activities run by the manufacturer in the form of
special presentations that take place within establishments, as well as initiatives run by
the retailer to make the product stand out. In any case, merchandising refers to
commercial actions at the point of sale aimed to stimulate customerś purchases as soon as
they enter the establishment. Traditionally, it was conceived as a way to motivate the
because they provide fast and convenient ways of transactions for business. These
security, taxes, various management reports and many more (Davis and Wang, 2015).
Therefore, with large volume of customers in supermarkets and the growing competitive
Janes (2011) stated that computers are extremely reliable device and very
powerful calculators with some great accessories applications like word processing
problem for all of business activities, regardless of size, computers have three advantages
over other type of office equipment that process information because computer are faster,
more accurate more economical. Reyes (2005) stated that a task would be time
consuming to accomplish manually and more practical with the aid of computers field in)
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cabinet.
Also known as the point of service or POS, the point of sale is the exact point in a
transaction when goods or services are provided to the customer and payment is rendered
for those products. While the specifics of a point of sale system will vary somewhat from
one situation to another, the final outcome is always the same (Malcolm Tatum, 2010).
Point of sales (POS) software is a type of software that retail store use to calculate
their sales and operate the cash drawer; it is a computerized cash drawer. Point of sales
add up the sales total and calculate the change. When customer buy items from retail
store, point of sales will minus or debit the amount of item sold in the inventory system.
At minimum, POS should be able to handle sales and manage your inventory database
(Harmon, 2010).
A POS system is a means to aggregate and collect sales data automatically, which
can be used to produce a variety of sales reports including: six week history reports, top
selling categories, daily report with historical data, top selling items, and sales by time of
Weber (1999), “System, method and article of manufacture for remote virtual
that communicates with a client over a first communication link, over which service
requests flow to the server for one or more merchants and/or consumers is disclosed is
It result in merchant specific transactions that are transmitted to the gateway for further
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processing on existing host applications. The merchant could utilize any other computer
attached to the Internet utilizing a SSL or SET protocol to query the server remotely and
Bishop, and Saunders (2009), “Systems for Locating a Payment System Utilizing
a Point of Sale Device”. The researchers concluded that a point of sale (POS) device may
from a remote location to a payment system, through directly, or via a payment system
directory and/or a SSL Gateway. The invention also includes inserting third party account
information into an encrypted portion of the payment request. So that the payment
request appears as a normal request to the issuing bank. But the third party may use
account information to bill the customer. The payment system directory is further
authorization request, such that a single transaction may be allocated among multiple
payment processors for authorization. The payment system directory is able to format
alternative payment methods into a format that is able to be processed over existing
payment networks.
Sales and Profitability for Small to Mid-Sized Retailers”. Based on the data examined,
the deployment of technology leads to sales increases and expense reductions which
positively impact profitability. But how does technology accomplish all this? Technology
by itself does not cause sales increases or expense reductions, but rather the way the
information that technology provides is used causes the increased sales and reductions in
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expenses. The researcher also concluded that, not every retailer experiences sales
increases or cost savings on all the factors. Many are dependent on how the individual
retailer uses the technology. For example, a pure fashion retailer may not get relevant
benefits from automatic replenishment as fashion changes so often that most purchases
are not replenishment of existing product but rather new product. This hypothetical
fashion retailer however, would reap extensive benefits from fast/slow seller reporting as
well as a suggested item feature in the POS systems. The researcher also noted that in the
area of expense reductions, for some, the first six months expenses may actually increase.
Even though it is not universal. It is caused by the extra time required to learn the new
systems and to integrate them into the store. Often during this period, extra staff and
hours are used to fully implement the technology, but after six months most retailers find
that they are able to reduce at least one if not two full time clerical people and often they
The researcher’s report analyzes the benefits gained by small retailers that choose
electronic cash register (ECR) systems. In the study, primary reasons cited by small
retailers for using POS systems versus less expensive ECRs were inventory, customer
service, and cash management. It is important to understand that the term point of sale in
this context refers to more than just ringing up sales. It embraces the entire set of
applications used for merchandise, cashier, cash, and customer relationship management.
Allowing their POS systems to keep track of inventory-, customer-, and cashier-related
information frees small business owners to focus on their key differentiator which are the
descriptive research and a sample size of two hundred and forty eight (248)
respondents, they established that there is significant relationship between good inventory
that Inventory Management is very vital to the success and growth of organizations. The
entire profitability of an organization is tied to the volume of products sold which has a
2.3 Synthesis
business that employs a small number of workers and does not have a high volume of
while a service business is a business that delivers work or aid to the benefits of their
customers. The authors defined the Point of Sales system as a computerized cash drawer
while they defined the Inventory Management system as an active control management
system that manages the business’ inventories. The authors defined productivity as a
fairly specific concept which can be divided into two factors which are performance and
financial productivity, it was also said that it is most simply output divided by input, and
is seen typically in terms of profit or sales. The authors also defined profitability as the
ability to make profit or to get sufficient returns on the capital and employees used in the
operation and an index of efficiency. Also, the authors stated that profitability differs to
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the term efficiency. The author defined sales as the team whose job it is to sell the stocks.
Researchers on related studies presents that the point of sale system’s information
can be shared and transmitted to other computers. They also observed that it can also
locate a transaction. The researchers also found of that using a point of sale system has an
effect on the business’ sales, profitability, and productivity. The researchers also did an
analysis on the benefits gained by small retailers that choose computerized point-of-sale
(POS) and inventory management systems versus traditional electronic cash register
(ECR) systems and recommended that businesses that do not own a POS system should
consider on having one. The researchers also examined the effect of inventory
organizational effectiveness.
of this research results are the information it can contribute to this particular discipline, it
can also be an inspiration to innovate the system in order to improve it and to cater more
needs of the owner or user of the system in the future, lastly, it can be a basis for us to
CHAPTER 3
RESEARCH METHODOLOGY
The study is a comparative type of research. The study will be documented and
will gather answers through surveys. Also the study intends to know the significant
difference on the usability of point of sale system between small scale businesses in
The study will be conducted in Solano, Nueva Vizcaya. Solano is the main
commercial and financial centre of Nueva Vizcaya. Solano, being the premier town in
Nueva Vizcaya and the fastest-growing municipality in the region, is slated to become
Cagayan Valley Region’s fifth city after Tuguegarao, Santiago, Cauayan, and Ilagan. The
study will take place in Solano, Nueva Vizcaya. The site selection will be accounted to
the assumption that it has more merchandising business owners and point of sale and
inventory management system users because of being a first class in income class.
Northern Luzon.
asked to participate in the survey. These key informants will be selected with the
business;
system;
4. Have used the point of sale system or inventory system in more than 3 months
respondents to be asked through surveys. Five from Bayombong, Nueva Vizcaya and
another five from Solano, Nueva Vizcaya. The respondents are the business owners and
staffs in Bayombong, Nueva Vizcaya and Solano, Nueva Vizcaya that will be proven
qualified based on the criteria above. The respondents will serve as a primary source.
answers for the sake of streamlining the survey that the respondents will answer. The
questionnaire will consists of items that will evaluate the effects of using point of sale
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sales. It will consist of fifteen statements to be evaluated by the respondents per terms, in
answers for the sake of streamlining the survey that the respondents answered. Criterion
sampling will be used in selecting respondents. The respondents can be the business
owners and staffs of merchandising business in Bayombong, Nueva Vizcaya and Solano,
Nueva Vizcaya.
They will be asked vital information to evaluate the effectiveness of using point
The collected data will be sorted to classify the small scale business type. The
data will then be entered into the computer and analyzed by the use of Statistical Package
for Social Scientists (SPSS) program that will be used to develop frequency tables,
graphs and pie charts. Independent samples t-test will be used to determine the significant
differences of the usability of Point of sale system between small scale businesses in
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