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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

In the Philippines, many businesses are being established to provide products and

services which aims to meet the needs or wants of the Filipino citizens. According to all

Filipinos, food business is one of the classifications of business that can be found in the

Philippines and is considered the most popular type. Ashfield District Council defined

food business as a form of a retail shop that sells different kinds of products specialized

by a specific place. Moreover, this kind of business thrives to gain the attention of many

customers and satisfy the demands, such as the different spices, seasonal trends, or a

certain combination of foods into one. Focusing on food combinations or trends, there is

often misconception between the terms used to specify “where to eat?”. As such, eatery

and restaurant are the two common terms that are being used, identified, and had given

wrong connotation by most of the people. As per English Language Learners (2014),

eatery is believed to be a less formal term of restaurant. Clique Hospitality (2017)

claimed that eatery is like “restaurant version 2.0” wherein it immediately enters and

appeals in the mindset of an individual as it creates experiential effect through the various

dishes present in the place. On the other hand, Mealey (2018) defined and classified

restaurant as a place wherein food choices are expensive and of high quality as it

comprises unique ingredients.

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JuandefulPinoy blog (2012) stated that Filipinos enjoy and love to eat cheap and

traditional cuisines because of its uniqueness in taste and as part of the Philippine

tradition. Fitzsimons (2019) claimed that Filipinos are also fond of goods that are at

reasonable prices, especially when it comes to food, thus became one of the reasons why

Filipinos patronized local eateries. Escalona (2017) presented karinderya and lugaw

businesses as well-established local eateries in the Philippines. Focusing on lugaw

business, Villanueva (2009) asserted that it commonly serves products that are being

offered or cooked in households such as lugaw, goto, tapsi, etc. These meals are often at

a low cost since Filipinos tend to buy a product when it sounds inexpensive.

Customer’s preference in local eateries has distinct components that are being

considered which influences their capability to decide. One of the key elements of their

decision-making is the factors such as menu variety, food quality, price, environment,

and location that affect their selection in a place where to eat. These factors which

influenced a Filipino citizen’s decision on choosing a certain eatery has been taken into

consideration as it can further lead to their better buying motives and decision-making in

selecting a local eatery. According to Kafel and Sikora (2013), there were seven factors

found that influenced consumer eatery selection, namely food quality, menu variety,

cleanliness, service, value, convenience, and atmosphere. Another study by Mhlanga and

Tichaawa (2016) showed similar factors of customer eatery selection such as quality of

service, food quality, ambiance, recommendations, and frequency of the customer. These

factors build up the perception that customers consider upon selecting their preferred

local eatery.
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Food quality and menu variety are one of the factors a customer considers when

choosing a place where to eat and is believed to be an important attribute that influence

restaurant decision. Cullen (2004) has recognized food quality and menu of a restaurant

as the key variables in customers’ decision- making process. Josiam and Monteiro (2004)

concur that unique food taste and ingredients play an important role for customers when

selecting a restaurant. Mhlanga, Hattingh, and Moolman (2014) stated that restaurants

frequently develop new menus and offer a selection of different menu items in order to

increase customer frequency. Furthermore, Kaura (2011) found out that customers over

60 years of age indicate food quality as the most important attribute in determining their

experience in a restaurant. Therefore, it is crucial to understand the influence of food

quality and menus on restaurant selection criteria as this can guide restaurants in their

target market, marketing strategies and customer frequency according to Ryu, Lee, and

Kim (2012).

Affordability is one of the customer’s factors in selecting a restaurant. Haghighi et

al. (2012) found and stated that price has a positive impact on customer satisfaction.

Kafel and Sikora (2013) assert that restaurant consumers use price as a measure for the

quality of the restaurant. Thus, the importance of the restaurant choice factor differs

considerably by its price (Massawe, 2013).

One of a food business’ top priorities is acquiring good location. A good location

is where it is easily accessible and is essential in a certain area based on Sean Kennedy’s

Location analysis for restaurant industry. Customers tend to choose accessible eateries for

more convenience. Another reason of having good location is high foot traffic, meaning

many people pass through the area and are attracted to the business. Furthermore, the
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more populated an area is, the more profitable the business, based on the article The

Balance Small Business. In addition, highly populated areas enable the business to

become popular and grow exponentially.

Appearance and ambiance are two other factors in consumer eatery selection

according to Mhlanga and Tichaawa (2016). Appearance or physical environment of an

eatery consists of decoration, furniture and facilities used. Mostly, customers obtain their

first impressions by paying attention to and evaluating the business surroundings

(Blackman, 2005). Whether it presents a clean and hygienic place or is rundown and

unsanitary, the customer also selects an eatery according to how comfortable they are

eating there as stated by Stan Mack. It is for their comfortability and safety when eating

at a local place. It also shows that a business considers the welfare of their customers if

their facilities and furniture are well treated. It shows that they care for the health and

safety of their customers when serving their dishes (Marriott & Gravani, 2013) Moreover,

ambiance gives a comfortable and enjoyable atmosphere for the customers to experience

stated from an article in Sign. Customers’ claims that ambiance and style suit their

esteem need (Akbar & Alaudeen, 2012). It makes customers gain more experiences and

can generate the word of mouth according from the article of Sign. Therefore, the

appearance and ambiance can gain customer satisfaction about the eatery (Kivela, 2000).

Such factors affect the way a business profit and how the customers decide when

selecting out an eatery. Nevertheless, the researchers’ intentions are to further expand the

knowledge in the food industry. The foremost objective of this study is to know and

analyze the impact of the prevailing factors of customers in local eatery selection.

Following objective is to know the relationship between customers’ decision making and
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the prevailing factors in correlation with the growth of the local eatery business. Last

objective of the researchers is to find out the relationship between the prevailing factors

and the sales and ratings of the local eatery. As these objectives of the study are expected

to be seen in the results and would develop and help following businesses for greater

success.

The purpose of this study is to know the most prevailing factors of why a

consumer prefer Goto Bob, that customers of Goto Bob choose when deciding on a local

eatery. Likewise, those factors can be used to improve a business’ welfare and state

especially local eateries. Moreover, it can be used as marketing strategy and input what a

business is lacking. Not only can it be applied to current local eateries or businesses, but

also future businesses and entrepreneurs. This is for them to be aware and plan out what

is best before establishing their business. Another reason also is to gain more profit by

satisfying the needs and wants of the customers. Last purpose is to determine the factors

that needs further improvements.

Background of the Study

The researchers are motivated to do this study for the following reasons: The

researchers’ attention were captured with the vast growth of Goto Bob as it became one

of the well-known gotohan in Marikina; The researchers also wanted to know the process

behind the acquired success of Goto Bob; To acquire knowledge regarding the factors

affecting its success in terms of its prominence to other ‘lugawan’ stores; To determine

the prevailing factor that influence the customer to its decision making among the

following: food quality, menu variety, affordability, location, appearance and ambiance,

on what the customers look through an eatery or restaurants.

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Statement of the Problem

The study focused on knowing the upmost factors of customers in selecting a

local eatery. Specifically, it aims to answer the following questions:

1. What are the prevailing factors that customers choose to eat at Goto Bob Parang?

2. What are the suggestions of improvements from the Goto Bob customers?

Significance of the Study

The findings of the study will be useful to the following beneficiaries:

Goto bob owner/s will know their customers’ perspectives on to the necessary needs and

wants about their business. From there they can formulate and devise a plan on further

improvements on their operations and products. They will be able to strategize a

competitive advantage for the business among its competitors. This is to provide

Owners of related local eatery as they would expect what prevailing factors that

customers decide when selecting a local eatery. Those prevailing factors can inform the

businesses. Additionally, assess what operations can they do enhance those following

factors.

Customers, this study would reinforce the customers’ suggestions and preferences on the

wants and needs they want to see on a local eatery. Likewise, they will be aware of the

other significant factors when selecting a local eatery

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Entrepreneurs will have the advantage by knowing the prevailing factors. They can

apply such developments on the business that they will establish in the future.

Future researchers would be able to continue the study, from the recommendations of

the current researchers. They can further expand the knowledge of the marketing or

business field. Moreover, some researchers can use this as a basis for their thesis or

market research.

Scope and Delimitation

This study focused on the Factors Affecting the Decision-making of Goto-Bob

Parang’s Customers in Relation with Local Eatery Selection during the first semester of

the Academic Year 2019-2020 with the intention to identify the utmost factors that

customers consider. The factors that the researchers would only dwell on are Food

quality, Menu variety, Affordability, Ambiance and Appearance, and Location. Desired

and suggested improvements of the customers to the local eatery will only be related to

the prevailing factors.

The research will only be conducted in Goto Bob at their branch at Parang,

Marikina City. The respondents of the study were composed of sixty (60) conveniently

selected customers from Goto Bob Parang. The results of this study is only applicable to

its respondents and should not be used as a measure of knowing the prevailing factors of

other local eateries as they are not included in the study.

Definition of Terms

Affordability- reasonable cost of the dishes particularly of its serving size and portion.
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Appearance and ambiance- the physical environment and atmosphere of the eatery

Food Quality- it is the quality of the food. In terms of its ingredients used, taste, and

presentation of the food.

Location- the convenience and availability of the place to the customers

Menu variety- the variety of dishes offered in an eatery.

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REFERENCES

 Sahni, S. & Mohsin, F. (2017). Factors Influencing the Selection of Fine Dining

Restaurant in Delhi & NCR: An Empirical Study [PDF file]. Retrieved from

https://www.academia.edu/35983070/Factors_Influencing_the_Selection_of_Fine

_Dining_Restaurant_in_Delhi_and_NCR_An_Empirical_Study

 Mhlanga, O. & Tichaawa, T.M. (2016). What are the current factors affecting

consumer selection criteria in formal full-service restaurants in Port Elizabeth,

South Africa? [PDF file]. Retrieved from

http://www.ajhtl.com/uploads/7/1/6/3/7163688/2016_article_10_vol_5__2_.pdf

 Philippine Primer. (2017). Expat’s Guide to Karinderya: PH’s local eatery.

Retrieved from https://primer.com.ph/tips-guides/2017/08/12/expats-guide-to-

karinderya-phs-local-eatery/

 The National Academies Press. (2007). Balancing Choices: Supporting

Consumer Seafood Consumption Decisions. Retrieved from

https://www.nap.edu/read/11762/chapter/9

 Juanderful Pinoy blog. (2012). Filipinos Love to Eat. Retrieved form

https://www.juanderfulpinoy.com/filipinos-love-to-eat/

 Villanueva, M. (2009). ‘Tubong Lugaw’. Retrieved from

https://www.philstar.com/lifestyle/business-life/2006/05/30/339394/145tubong-

lugaw146-my-business-heroes

 Escalona, K. (2017). How to Eat Like a True Filipino. Retrieved from

https://theculturetrip.com/asia/philippines/articles/how-to-eat-like-a-true-filipino/
 10

 Fitzsimons, J. (2019). Food in the Philippines. Retrieved from

https://indianajo.com/food-in-the-philippines.html

 Clique Hospitality. (2017). What is a Concept Eatery? Retrieved from

https://cliquehospitality.com/what-is-a-concept-eatery/

 Mealey, L. (2018). Restaurant Concept. Retrieved from

https://www.thebalancesmb.com/different-types-of-restaurant-concepts-2888698
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CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

Consumer Behavior and Decision Making

Consumers are considered one of the key factors of success of any businesses. An

article about “Consumer Behavior” made by Solomon in 2009 claimed that marketers

rely heavily on consumer behavior as they consider the wants, needs, and satisfaction of

customers that they can provide goods and services that are in lined with the consumers.

A claim by Dr. Trittipo in 2012 of University of Virginia states that understanding the

behavior of consumer through buying power can make a huge difference between a

company’s failure or success. In accordance to Solomon’s claim, consumer behavior is

complex because everyone has different perception and attitude towards purchasing,

consumption, and disposing a product. A book entitled “Consumer Behavior in the 21 st

Century” written by Hoyer and Maclnnis in 2010 contradicted the statement by asserting

that consumers in today’s generation face variety of options better than before. The

widely available options are being taken into consideration by consumers in deciding

whether the option suits their standards. “Consumer Behavior in the 21 st Century” book

made by Hoyer and Maclnnis in 2010 also asserted that consumers often set criteria as a

guide in making decisions and setting standards. Only relevant criteria are being accepted

and considered by consumers since they are assessing its importance for the future

outcomes. As a result, the book “Understanding consumer decision making” made by

Olson and Reynolds in 2009 stated that choice decision and criteria always involve the

selection of one possible behavior or action of a consumer towards the product.

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Factors Affecting the Decision-Making of Customers on Restaurant Selection

Customers’ decision making is influenced by different factors upon selection of

eatery. There are variations of factors to consider as it depends on different individual

studies. Accordance to Kafel and Sikora (2013) there are seven factors which are food

quality, menu variety, cleanliness, service, value, convenience and atmosphere. As stated

by Akbar and Alaudeen (2012) there are five significant factors, which are food quality,

service quality, price, location, environment, and trustworthiness. Another research by

Mhlanga and Tichaawa (2016) observed the current factors of eatery selection are

convenience, relaxation, experience, celebration, business need, social occasion, quality

food, good service, ambience, and recommendations on selection of formal full-service

restaurants. The three main factors from the results are mainly food quality, service, and

ambiance. Common among the studies showed that there are five factors that the

researchers focused on. Particularly those are food quality, menu variety, affordability,

location, appearance and ambiance. Most of the result from studies of Kaura (2011) and

Mhangla and Tichaawa (2016) have shown that the most prevailing factor is food quality.

Another study from Kaura (2011) indicated that food quality is the most important

attribute in determining their experience in a restaurant. Mhlanga, Hattingh, and

Moolman (2014) stated that food variety increases customer frequency. According to

Akbar and Alaudeen (2012), price serves as an important role to the business, as

consumer are much in favor with lower price. In looking at location, convenience and

accessibility is needed for the customers as mentioned by Kennedy. Finally, Heap (2014)

concluded that appearance and ambiance make a customer satisfied from what they

experience from the eatery.

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Synthesis

The researchers wanted to know the factors of how Goto Bob was a go to eatery

for the people around it. One of it is to be considered is the preferences of each customer

for the business to satisfy which will be in the factor in the decision-making regarding the

selection of the local eatery the customers' wanted. There are five factors that may

surround the decision-making of the customers’ of Goto Bob. These factors are

ambiance, food quality, food variety, affordability and location. These factors overlook

ones’ decision making when it comes to a place that you want to eat. A study in the year

2013 claims that there were seven factors which were food quality, menu variety,

cleanliness, service, value, convenience and atmosphere, it shows that many studies are

coming up with different learning about eateries or restaurants. Furthermore, the latest

study in the year 2016 revealed that the current factors are convenience, to relax, been

there before, celebration, business need, social occasion, quality food, good service, good

ambiance, quietness and recommendations on selection of formal full-service restaurants.

In commonalities, there were five factors that the researchers focuses on which are food

quality which is the most attribute in determining the experience in the restaurant,

food/menu variety which increases customer frequency, affordability/price that entices

the customer since they are much favor in lower price, location/convenience and

accessibility are needs of a customer, appearance and ambiance which makes a customer

satisfied from what they experience from the eatery.

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Reference List
Akbar, Y.A.A. &Alaudeen, M.S.S. (2012). Determinant of factors that influence
consumer in choosing normal full-service restaurants: Case in Seri Iskandar, Perak.
South East Asian Journal of Contemporary Business, Economics and Law [Pdf file]
Retrieved from http://www.academia.edu/download/32131294/DETERMINANT-OF-
FACTORS-THAT-INFLUENCE-CONSUMER-IN-CHOOSING-NORMAL-FULL-
SERVICE-RESTAURANT-CASE-IN-SERI-ISKANDAR-PERAK.pdf
Heap, D. (2014, January 16). Restaurant Ambiance & How It Impacts Profitablity.
Retrieved from https://www.signs.com/blog/how-restaurant-ambiance-affects-the-
bottom-line/

Hoyer, W.D. and Maclnnis, D.J. (2010). Consumer Behavior in the 21st Century.
Singapore: Cengage Learning Asia.
Kafel, P. & Sikora, T. (2013). The usage of quality management methods and tools in
food sector organizations. Food Science Technology Quality retrieved from
https://www.researchgate.net/publication/258844825_UTILISATION_OF_QUALITY_
MANAGEMENT_METHODS_AND_TOOLS_IN_FOOD_SECTOR_ORGANIZATIO
NS
Kennedy, S. (n.d.). Location Analysis for the Restaurant Industry. Retrieved from
https://study.com/academy/lesson/location-analysis-for-the-restaurant-industry.html

Longart, P. (2015). Consumer decision making in restaurant selection. Conventry

University.

Mhlanga, O., Hattingh, Z. & Moolman, H. J. (2014). The effect of restaurant attributes
on customers’ expectations and experiences in formal full-service restaurants in Port
Elizabeth, South Africa. African Journal of Hospitality, Tourism and Leisure Retrieved
from http://www.ajhtl.com/uploads/7/1/6/3/7163688/article_24_vol_2_3.pdf
Mhlanga, O. &Tichaawa, T.M. (2016). What are the current factors affecting consumer
selection criteria in formal full-service restaurants in Port Elizabeth, South Africa? [PDF
file]. Retrieved from
http://www.ajhtl.com/uploads/7/1/6/3/7163688/2016_article_10_vol_5__2_.pdf
Olson, J.C. and Reynolds, T.J. (2009). Understanding consumer decision
making.Mahwah, NJ: Lawrence Erlbaum Associates, Inc., Publishers.
Sahni, S. & Mohsin, F. (2017). Factors influencing the selection of fine dining restaurant
in Delhi & NCR: An Empirical Study [PDF file]. Retrieved from
https://www.academia.edu/35983070/Factors_Influencing_the_Selection_of_Fine_Dinin
g_Restaurant_in_Delhi_and_NCR_An_Empirical_Study
Solomon, M. (2019). Consumer Behavior. Retrieved from
https://www.michaelsolomon.com/consumer-insights/consumer-behavior/
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Trittipo, T. (2015). Consumer Behavior. University of Virginia. Retrieved from

http://www.semesteratsea.org/wp-content/uploads/2015/03/Trittipo_SEMS-
3500_Consumer-Behavior3.pdf
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Theoretical/Conceptual Framework

EKB MODEL (Theory of

Reasoned Action)
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Prevailing factors of Goto

Bob Clients

FACTORS

Food Quality Location

Menu Variety
Environment

Price

Goto Bob Parang

Figure 1: Conceptual Framework showing the factors of Goto Bob Parang’s customers

in selecting a local eatery

Theoretical Framework

The EKB Model would be the foundation of the study. Engel, Kollat, and

Blackwell Model, also known as EKB Model concerns about the sequential process of a

consumer behavior undergoing decision making. Within the process, it talks about certain

factors that influence a consumer’s decision. Those factors are also the main focus of the

study. External factors comprise alternatives of a product and independent inquiries of

the consumer. Under external factors are the quality, variety, price, availability, and

environment. Decision making takes place by evaluating the product to fit a consumer’s
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evaluation criteria. A consumer’s decision would result in actions such as searching for

other alternatives, make purchase to satisfy the needs or solved the problem.

Conceptual Framework

The main point and concern of this study is to know the prevailing factors of Goto

Bob Parang’s clients in relation with their selection of local eatery. The conceptual

paradigm shows the five different factors that the researchers will use for the entire study

and how it affects the preference of Goto Bob Parang’s clients using and in lined with the

EKB model. As the factors are the ones who influence the decision making of a

consumer. It is where they would assess the product and business by the factors and

fitting it to their evaluation criteria leading to its buying approach. The five factors that

will be used in the study are inspired from the external factor information under the EKB

Model.
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CHAPTER III

METHODOLOGY

The study about the “Factors affecting the decision-making of Goto Bob’s

customers in relation with local eatery selection” used a quantitative-descriptive research

design, approach, and method that enables the researchers to interpret the findings and

behavioral development of the respondents by investigating and describing the utmost

factors in lined with the decision-making of customers that is anchored with the study.

Descriptive research, as defined by Glass and Hopkins (1980) and Sanchez (1980), is a

tool that involves gathering necessary data that describes the events related to the field of

study and a process of gathering mere information that involves interpreting the

significance of what is described in the study.

Locale of the Study

The study will be conducted at Goto Bob. The specific place would be at its Goto

Bob Parang branch located at Marikina City. The Goto Bob started from a small

“lugawan” place within Marikina City. While Goto Bob is famous for their goto and

lugaw they have a menu if you want to eat “lutong bahay”. From a small business it

turned into an eatery which the customers have a variety of different foods. Its popularity

is known by everyone who has low budget when it comes to eating for an affordable

price. Over the years Goto Bob branched out to further serve many people. It is also

convenient for PUV drivers, students, construction workers and truck drivers who are

always on the go and want a hassle-free food service that they can access. Also, food that

is convenient from break times, like for lunch or dinner.

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Participants of the Study

The respondents would be the customers of Goto Bob Parang Marikina City and

it is also considered as the population of the study. This research used convenience

sampling, as selected respondents would be chosen for taking impart of answering the

survey. The criteria for the respondents would be those who have already purchased and

is currently consuming it at Goto Bob. Also, since convenience sampling will be used,

those who are willing to answer the survey are the respondents of the research.

Research Instrument

The researchers will use a self-made survey consisting of 21 items by its decision

factors. It would be tested by reliability and be validated to statistics teachers. This survey

is created to find out what Goto Bob Parang customers’ most prevailing factor of

selecting Goto Bob as a local eatery. The survey consists of the following parts using

closed-ended questions. First part contains three questions relating to the background of

the customer with Goto Bob. Second part incorporates the main reason of the customer in

selecting Goto Bob as their local eatery. Third part would be divided by the following

factors to search through more data. Each factor would have two to three closed-ended

questions. Those factors are food quality, menu variety, affordability, location, ambiance

and appearance.

Data Gathering Procedure

A letter for approval would be given to Goto Bob Parang owner. Its content is

seeking approval for conducting data gathering at Goto Bob Parang. After confirmation

the researchers will start collecting data. Data collection of the researchers would be
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undergoing daily for two to three hours. The aim is to distribute a total of 60 surveys to

60 respondents A respondent would be given a 20-item close-ended survey with 10/20-

minute time limit for completion. Each survey that has been distributed must be retrieved

within 10/20 minutes of answering.

Treatment of Data

The data gathered would be analyzed, interpreted and presented using the

statistical formula Mean

Mean of Grouped Data

Σ fx
x́=
n

Where:

x́ = mean

f = frequency of each class

x = mid-interval value of each class

n = total frequency

Σ fx = sum of the products of mid-interval values and their corresponding frequency