CHAPTER I

THE PROBLEM AND ITS BACKGROUND

This study shows the different factors that affects the level of satisfaction on how well the
expectations of a customer concerning a product or service provided by the store have been met.
This investigation can answer some related concept that involves in the customer satisfaction
level.
Furthermore, this study shows the importance of Ukay-Ukay business to know what their
customers satisfaction level ought to be and how to retain their patronage.
Equally important, this investigation only studied the factors affecting level of
satisfaction of Ukay-Ukay customer in Balanga City, Bataan. The respondents involved is from
the different customer of Ukay-ukay store.

Introduction
The secondhand industry is one of the leading businesses throughout the world. It is
never out of demands since it is one of the basic need of human beings. Due to this reason, the
competition in the industry is really stiff from brand name, quality and cost up to promotion.
Competitors never let themselves left out when it comes to innovation of their products. In so
doing, their product would end up attractive and saleable to consumers. But what do consumers
really look for and be satisfied when it comes to the secondhand products?

Economic difficulties pose challenges among consumer whose purchasing power is

becoming low. They have to recuperate with little money to provide or to fulfill their needs like
food, clothing and shelter. Hence, they tend to look for low-priced products that meet their
expectations and become satisfied. Apparently, products stores that sell affordable yet with highquality products grow almost anywhere like mushrooms in the market.
Typical of these secondhand products outlets are Ukay-ukay stalls which keeps even the
budget-challenged fashionistas. The term Ukay-ukay is derived from the Filipino hukay, which
means to dig up. Ukay-ukay, synonymous with wagwag, which is the act of dusting off a piece of
clothing by taking hold of one end and snapping it in the air. Wagwag is an Ilokano term
synonymous with the segunda mano or secondhand, which unwittingly gives the stuff of an air of
elegance because segunda mano stands for shoemart, the foremost Philippine retail chain.
Apparently, Ukay-ukay started as a popular trade at the turn of the century. The term became
vogue in Baguio City and later everywhere in the country and became a by-word even among
fashionistas. Rummaging when this kind of clothing store first appeared in the market, it was not
so much noticed by consumers and there were only a few numbers of this secondhand store. As
time went by, together with lifestyle of Filipinos, ukay-ukay became numerous anywhere in the
country. As a matter of fact, Bench, Bonjour de corps and a lot more are readily available in
ukay-ukay somehow meets the standards of Filipinos when it comes to secondhand products.
Furthermore, Ukay-ukay is very affordable source of fashionable yet durable clothing materials
for those with relatively low income. It is also ready to wear clothes, shoes, bags and accessories
at a much lower price compare to the brand new. The textile and garments are said to be 30
percent more expensive that their counterparts in the market, due partly to the unefficient local
production and technology processes as well as their relatively low productivity.

Moreover, people who patronize ukay-ukay have varied reasons and belong to various
social classes. Most patrons belong to the low and middle class whose reason is affordability.
Due to this reason, people become repeat purchase or repeat customer because they meet and
exceed their expectation regarding to the attributes in ukay-ukay products they want.

Statement of the Problem

This study aimed to determine the factors affecting the level of satisfaction of Ukay-ukay
customers. Specifically, it sought to answer the following question:

1. How is the level of satisfaction of Ukay-ukay customers be described in terms of:

1.1 Atmosphere
1.2 Quality
1.3 Price
1.4 Variety of items
1.5 Employees behavior
1.6 Brand
2. How do the following factors affect the level of satisfaction of Ukay-ukay customers?
2.1 Atmosphere
2.2 Quality
2.3 Price
2.4 Variety of items
2.5 Employees behavior
2.6 Brand
3. Which among the following factors is the most influential?

Scope and Delimitation

The study focuses on the factors affecting the level of satisfaction of Ukay-ukay
customers in Balanga, City. The study will be conducted in secondhand clothing stores or ukayukay store in Balanga City, Bataan.

The involved respondents are 50 customers of ukay-ukay stores, randomly selected by

Accidental Sampling Procedure in different location of Balanga.

Moreover, this investigation was made primarily to identify and explore those factors that
affects level of satisfaction of customers regarding to the secondhand clothing store.
Significance of the study
This study will be a significant in order to know people what is the influential factors that
affects the level of satisfaction of ukay-ukay customers.

For the customers. This study will help the customers to understand the
operation and enable them to evaluate or assess the level of satisfaction in Ukayukay business.

For the owners. The study will give them opportunity to give what they had
experienced in putting up the business so that others will be given opportunity to
study the consequences they are facing and avoid the possible problem it may
brought in the future.

For the future entrepreneurs. The findings of the study will help them a lot
in studying the possible consequences and factors in putting up ukay-ukay business
so that they can assess freely and when they decide to put up a business like ukayukay business they will exactly know what they should do.

For the future researchers. The ideas presented may be used as reference data in
conducting new researches or in testing the validity of other related f i n d i n g s . T h i s s t u d y
w i l l a l s o s e r v e a s t h e i r c r o s s - r e f e r e n c e t h a t w i l l g i v e them a background or
an overview on the level of satisfaction of ukay-ukay customers.
For the students. This study will give new ideas and information to them
specially to the marketing students in their future understanding.
For the professors. This study will help them to provide more knowledge to
the student through using it as an example in their discussion.

Chapter II
THEORETICAL FRAMEWORK

This chapter presents relevant theories, reviewed literature and study which were
gathered from books, journals, internet websites, and other unpublished thesis and references in
justifying the research study, and definition of terms in this study. Thus, this chapter serves more
than just enrichment for the researchers effort in acquiring a vivid background of the study.
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Related Literature
There are principal interpretations of satisfaction within the literature of satisfaction as a
process and satisfaction as an outcome (Parker and Matthews, 2001). Early concepts of
satisfaction research have typically defined satisfaction as a post choice evaluative judgement
concerning a specific purchase decision (Oliver, 1980); Churchill and Suprenant, 1992); Bearden
and Teel, 1983); Oliver and Desardo, 1988). (Swan and Combs, 1976) were among the first to
argue that satisfaction is associated with performance falls below expectations.
Customer satisfaction is defined as a customers overall evaluation of the performance of
an offering date. This overall satisfaction has a strong positive effect on customer loyalty
intentions across a wide range of product and service categories (Sustafsson,2005). The
satisfaction judgement is related to all experience made with a certain business concerning its
given products, sales process, and the after-sale service. Whether the customer is satisfied after
purchase also depends on the offers performance in relation to the customer expectation.
Customers from their expectation from past buying experience, friends and associates advice,
and marketers and competitors information and promises, Kotler, 2006.
According to Juran, 1988, in the business perspective state qualities are those features of
products which meet customers needs and thereby provide customer satisfaction. It is a degree of
satisfaction provided by the goods or services of a company as measured by the number of repeat
customers or how they meets the customers expectations, Rouse, 2008.

Accentuated that the level of customer satisfaction may be influenced by various and
external factors. Satisfaction of customers is so basic that it cannot be considered as separate
function. It is the way whole business from the point of view of its results such as from the
customers point of view. Satisfying the customers occupies a most important portion in the
business management. Generally, customer satisfaction plays a crucial role as it deals with
customers and their needs. It is the major task of any organization to satisfy customers by
meeting their needs and wants. Additionally, customer satisfaction is a collective outcome of
perception, evaluation and psychological reactions to the consumption experience with a product
or service (Abdullah and Rosario, 2009).
Atmosphere
Atmosphere refers to aesthetics and ambiance of the store. The atmosphere was such as
color, music, lighting, smell, windows display and store font reflect the store atmosphere and
play an important role in shoppers perception and evaluation of the store larger. Stores with
pleasant and moderately arousing atmospheres are likely to contribute to the overall
favorableness of the store and effect buyer behavior in a positive way (Chebat and Singy, 2010).
According to Milliman, 1986, atmosphere is a term that is used to explain our feelings
towards the shopping experience which cannot be seen. Kotler, 1973-1974, describes the
atmosphere as the design of the retail chain outlet that produces specific emotional effects on the
buyer that enhances his purchasing probability. When a consumer feels satisfied from the retail
environment of the store, they spend more time in a particular store and buys more because of
pleasant environment stimuli (Bohl, 2012). The impressive atmosphere of the store enhances the
customer satisfaction level and urcchase experience (Silva and Giraldi, 2010).

In the idea of Berman and Evans, 2013, define store atmosphere as physical
characteristics of the store including physical facilities, signs of information, music and scent. In
addition, physical shopping environments designed by stores influence all aspects of the retailing
business, includes aspects such as the customers decisions on where to go for shopping
consumers perceptions of the store image, quality of merchandise and service, buyers behaviors
of the amount of time and money spent at the store Nonetheless consumer satisfaction with the
retail store (Kotler, 1973, Bellizi, Crowley and Hasty, 1983; Eroglu and Machlelt, 1990).
Quality
Quality measure of excellence or a state of being free from defects deficiencies and
significant of variations. It is brought about the strict and consistent commitment to a certain
standard that achieve uniformity of a product in order to satisfy specific customer or user
requirements. According to ISO 8402-1986 standard, quality is the total of features and
characteristics of a product or service that bears its ability to satisfy stated or implied needs.
According to Juran, means that a product meets customer needs leading to customer
satisfaction, and quality also means all of the activities in which a business engages in, to ensure
that the product meets customer needs. Quality is based on ho efficient the management circle is
in planning, implementing and making improvement. It is defined by the satisfaction of the
customer. A product with good quality does not only satisfy the customers but also makes the
customers patronize the wherein the boast about the product and encourages their friends to try
(W. Edward Deming).

In the idea of Crosby and Juran cited in fox (1993:4), quality is defined conformance to
requirements on specifications and fitness for the purpose or use respectively. Quality is the
meeting the needs and the expectations of customers (Parasuraman et l.,1991).
Price
According to Dickson and Sawyer, 1990, price is one of the element in marketing mix it
is very plays a very heavy role because marketers, uses price as communication medium with
customer, where the message is being clearly perceived by customer as what it meant to the
marketers. Pricing is a process where by a business sets the price at which it will sell its products
and services, and be part of the businesses marketing plan.
According to Summerour, (2002); Patton (2002); Beck (2000), price is a main factor in
transaction relationship where it is one of the medium used by marketers to counter the market,
either in attracting or in retaining customer or as element in competing with competitiors.
Additionally, the excess of the price which a man would be willing to pay rather than go without
having a thing over what he actually does pay is the economic measure of his satisfaction surplus
(Marshall, 1890).
According to Herman et. al., (1992), price perception directly influence satisfaction
judgements, which concluded that customer satisfaction is directly influenced by price
perceptions, indirectly, through the perception of price fairness. The price fairness itself and the
way it is fixed and offered have great impact on satisfaction. Furthermore, price fairness refers to
consumers assessments of whether a sellers price is reasonable, acceptable or justifiable.
Charging a fair price helps to develop customer satisfaction and loyalty (Xia et. al., 2004).
Variety of product/ items
9

Variety of product affects consumer purchase behavior and consumer satisfaction. High
product variety allows for the satisfaction of the needs and desires of heterogeneously distributed
consumer. In addition, product variety allows consumers to enjoy a diversity of options through
variety seeking behavior, which satisfies intellectual curiosity (Kahn, 1998).
According to Ulrich and Randall (2011), variety is the number of different versions of a
product offered by firm at a single point in time. A company offers a variety of choices in a
single product category to the capture the surplus of consumers who may have heterogeneous
quality valuations, tastes or budgets constraints. They can also expand their brands by
introducing more products to compete for higher market share (Hui, 2003).
In the idea of Hach et al. (1991), retail stores high product variety and display in a manner
that allows consumers to perceive the variety of product can better satisfy their consumers.
Employees Behavior
Employees behavior are various sequences of actions carried out by employees within the
organization (Hannah et al., 2004). Some of these behaviors may be positive refer to the
constructive actions of employees on behalf of the organization, employee and customers
(Bowen and Shoemaker, 1998), while further behaviors may be negative and may be destroy a
productive work environment. According to King (2004), that negative behaviors has ruined
many businesses and costed millions every day.
Employees behavior are important in a company as they connect the organization with
its customers and they respect a critical factor in developing effective working relationships with
customer ( Gronroos, 1990; Gwinner et al., 1998). Kong and Jogaratman (2007) confirmed the

10

fact that employees personalization and courtesy were significant predictors of customer
satisfaction.
According to Dimistry and other authors (2007), customer satisfaction as a measure of
how product or service performs compared to customer expectations. The employee of the
organization are therefore vital for ensuring success in customers perception and satisfaction, as
they are persons ultimately responsible for providing a quality service that meet the expectations
of cusomers (Zeithamal et al., 1996).

Brand
According to American Marketing Association (AMA) brand is a name, term, sign,
symbol, or design or a combination of them, intended to identify the goods and services of one
seller or group and to differentiate them from those of competitors. Brand is both tangible and
intangible, practical and symbolic, visible and invisible under conditions that are economically
viable for the company (Kapreferer, 1896).
In idea of Achenaum (1993), brand distinguish from its unbranded commodity
counterparts and gives it equity with the sum total of consumers perceptions and feelings about
the products attributes and how they perform about the brand name and what it stands for, and
about company associated with the brand. It is also helps consumers to identify and locate a
product with less information processing and decision time because of the expected quality from
accumulated brand knowledge (Pelsmacker et. al., 2004).

11

Furthermore, according to the idea of Kotler 2004), brand is an important subject which
creates positive image in eyes of customers to make itself different from the competitors. The
name associated with one or more items in the product line, that is used to identify the source of
character of the item. Additionally, brands are considered as the more important assets of the
company helps customers in purchase decision making and it creates relationship with the
customers either the relations is positive by continuing the brand or negative by moving to the
other hand (Assael, 1998).

Related Studies
According to Lukoma, 2011, retailers have recognized this trend and are of the view that
customer satisfaction plays a role in the success of business strategies. It showed general trend
that people like to buy from the most convenient supermarket; location is the most important
factor for retailer business. In contrast, customers felt least satisfied with addition service.
Therefore, the implication on management was to pinpoint where they have strengths and
prioritize on excelling there while improving on their weaknesses. Thus critical factors of
customer satisfaction of selected supermarket were location, staff, reliability, product quality and
additional services. Supermarkets should provide additional services to their customers in order
to increase their satisfaction level.
According to Saeed and Baig, 2013, this study is to identify the perceptions of fashion
consumers and variables that have an impact on their satisfaction level. The study of
consciousness is rapidly increasing. A key factor behind the purchasing behaviour of people was
that they were not compromising on the comfort of shoes, but they want to differentiate
12

themselves from others. These results reveal that customer satisfaction was dependent on
education, age, working status, marital status, and income. Therefore, fashion consciousness was
influenced by the external environment and the inquiry of fashion consciousness in developing
countries should be conveyed with a careful understanding of the socioeconomic and cultural
environments of consumers.
Theory of the Study
Assimilation Theory
Assimilation theory is based on Festingers (1957) dissonance theory. Dissonance theory that
consumers make some kind of cognitive comparison between expectations about the product and
the perceived product performance. This view of the consumer post-usage evaluation was
introduced into the satisfaction literature in the form of assimilation theory. According to
Anderson (1973), consumer seek to avoid dissonance by adjusting perceptions about a given
product to bring it more in line with expectation. Consumers can also reduce the tension resulting
from a discrepancy between expectations and product performance either by distorting
expectations so that they coincide with perceived product performance or by raising the level of
satisfaction by minimizing the relative importance of the disconfirmation experienced.

Relevant Theory
Cue Utilization Theory
Cue utilization theory argues that products or services consist of several arrays of cues that
serves as surrogate indicators of product or service quality. There are both intrinsic and extrinsic
13

cues to help guests determine quality, where the intrinsic cues provide information on the
physical attributes of the product or service, whereas extrinsic cues are product related to provide
information such as brand and price.
Hypothesis Testing Theory
A two-step model for satisfaction generation was suggested by Deighton, 1983. First,
Deighton hypothesizes, pre-purchase information plays a substantial role in creating expectations
about the products customers will acquire and use. Customers use their experience with product
or service to test their expectation. Second, Deighton believes, customers will tend to attempt to
confirm rather than to disconfirm their expectations. Vavra, T. G. 1997, argues that his theory
suggest customers biased to positively confirm their products and services experiences, which is
an admittedly optimistic view of customers, but it makes the management of evidence an
extremely important marketing tool.

Disconfirmation Theory
Disconfirmation theory argues that satisfaction is related to the size and direction of the
disconfirmation experience that occurs as a result of comparing service performance against
expectations. Szymanski and Henard found in the analysis that the disconfirmation paradigm is
the best predictor of customer satisfaction. Ekinci et al 2004, cites Olivers updated definition on
the disconfirmation theory, which states Satisfaction is the guests fulfillment response. It is a
judgement that a product or service feature, or the product or service itself, provided (or is
providing) a pleasurable level of consumption-related fulfillment, including levels of under or
over-fulfillment.
14

1. Level of
satisfaction

Atmosphere
Quality
Price
Variety of
items
Emloyees
behavior
Brand

2. Factors of
satisfaction

3.

Atmosphere
Quality
Price
Variety of
items
Employees
behavior
Brand

Survey,
questionnair
e
Gathering of
information
Interpret and
analyze the
result

Most influential
factors

Price
Brand
Quality

15

Figure 1. Paradigm of the Study

Assumption of the Study
Based on the study of the researchers the following assumptions were made up about the
factors affecting the level of satisfaction of Ukay-ukay customers in Balanga City, Bataan. The

16

atmosphere, quality, price, variety of items, employees behavior and brand has an effect to the
level of satisfaction and buying behavior of the customers.

Definition of Terms
Coincide to happen at the same time as something else; to occupy the same place in space or
time
17

Consoling to lessen the grief, sorrow or disappointment of; give comfort

Crucial describes something that is important or essential to success
Cues a signal (as a word, phrase, or bit of stage business) to a performer to begin a specific
speech or action
Customer satisfaction it is a measure of how products and services supplied by a company
meet or surpass customer expectation
Deteriorate to make or become worse in character, quality, value
Discrepancy a difference especially between things that should be the same; the quality or
state of disagreeing or being at variance
Distorting to change the natural, normal, or original shape, appearance or sound of something
in a way that is, usually not attractive or pleasing
Explicit very clear and complete; fully revealed or expressed without vagueness, implications
or ambiguity
Extrinsic cues external to the product, such as price, store image, or brand image, which serve
to influence the consumers perception of a products quality
Induce succeed in persuading or influencing to do something
Intrinsic cues physical characteristics of the product, such as size, color, flavor, or aroma that
serve to influence the consumers perception or products quality

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Justifiable capable of being justified; that can be shown to be or can be defended as being just,
right, or warranted; defensible
Point-of-purchase the location or medium at which a product is purchased by an end-user
Surrogate to put in the place of another; a person or thing that takes the place or performs the
duties of someone or something else
Viable capable of working successfully

CHAPTER III
RESEARCH METHODOLOGY

This chapter of the research outlines the research design and methodology used in collecting
data for this study. The research instruments that were employed by the researcher in collecting
data are also clarified in this chapter. In this chapter the researcher looked at a number of
research variables such as research design, population, sample procedure, instruments used for
data collection, personal interviews, and data analysis. It is also the objective of this chapter to
make an outline of how the research instruments used were administered. The chapter describes
also the research population and how the sample for the study was drawn.

Research Design

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A research design provides the framework that defines the data collection and analysis
procedures, and it indicates who or what is involved, and where and when will the study takes
place. The purpose of a research design is to state what is to be achieved by the research and how
the results can be used.
The researcher used descriptive research design, which is done with a specific research
question in mind. It gave a set view of the subject, population, market segment or problem.
Descriptive research have their place in forming a better understanding of a problem or issue. It
aimed at providing answers to questions such as who, what and how part of the topic. This
research design was adopted because it enhanced the reliability, credibility and validity of the
research.
The researcher relied on collection of primary data through questionnaires. The use of
questionnaires enjoyed the benefit that each participant was asked to respond the same set of
questions in a predetermined order. The approach was deemed appropriate by the researcher
because it provided an efficient way of collecting responses. This method was done concurrently
with the use of in-depth interviews that were structured according to the questionnaire format.
Thus, these approaches enabled the researcher to assess the level of satisfaction of customer.

Research Locale
The study will be conducted within the area of Balanga City, Bataan. It is a first
class city and capital of the province of Bataan in the Central Luzon region of the Philippines.
And according to the 2010 census, it has a population of 87,920 people. During the past years,
the city saw a high record of residential growth. The consequent expansion of the physical limits
20

of the urban core as well as the expected large increases in population, and its attractiveness to
commercial and employment activities.

Location Map

Figure 2. Location Map of the Study

Respondents of the Study
There were consumers of Ukay-ukay store in Balanga City, Bataan. Those respondents were
given questionnaires by means of accidental sampling procedure whereby there is no limitation
has been set in the selection of respondents. The questionnaires will be prepared and the survey
ended after these questionnaires were filled up by the respondents; then collected, tallied,
analyzed and interpreted.

Population Sample and Sampling Techniques

21

Descriptive method is used in the study using accidental sampling. Accidental sampling,
sometimes known as grab, convenience sampling or opportunity sampling, is a type of nonprobability sampling that involves the sample being drawn from that part of the population that is
close to hand. That is, a sample population selected because it is readily available and
convenient, as researchers are drawing on relationships or networks to which they have easy
access.

Instrument of the Study

The questionnaire was the main tool used by this study in data gathering. A questionnaire is a
research instrument consisting of series of items and other prompts for the purpose of gathering
information from the respondents. Specifically, the researchers used the structured questionnaire.
Structured questionnaire is a questionnaire used in large surveys where specific answers are
anticipated. It includes the use of multiple choice and scaled questions. It generates quantitative
information or data, which can be analyzed statistically, and endeavors to remove any bias
potentially originating from either the researchers or the respondents (LLP, 2006).

Validity and Reliability of the Instrument

The questionnaires used by the researchers was developed by the research adviser. It was
initially drafted as a result of several readings and consultations. The draft was presented to the
researchers research adviser. Group sat together to improve and revise the questionnaire and
incorporated all suggestions that came out after the validation.

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Statistical Treatment
After collecting the data needed, the researchers tabulated and analyzed the gathered data
with the help of statistical tools. The following are the statistical tools used in this study together
with their corresponding formulas.
1. The profile of the respondents was determined by using and percentage, ranking and
weighted mean (Trochim, 2006).
Percentage
F
(P) % =

100

N
Where: F = frequency
N = total number of the respondents
P = Percentage

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