ACKNOWLEDGEMENT

We would like to thank first our God for being our refuge in life, for the protection,

good health and peace of mind, knowledge and courage while we are having our research

paper.

Thanks to our parents and guardian, for their moral support, financially, spiritually,

guidance, and for unending love, encouragement and understanding.

We would like to thank our instructor Mr. Amiel Andias for providing us with the

opportunity to work on this research paper, for the time and efforts put in directing us on

what to do, and providing his guidance and constant supervision as well as necessary

information regarding the paper.

Thanks to our board mates, who kept us smiling during our research period? In all,

without the protection and direction of the most high, all other support are given wouldnt

have passed through. Thank you Lord.

Enter to his gates with thanks giving, and bless is courts with raise. Be thankful to

Him, and bless His name. For the Lord is good; His mercy is everlasting, and His truth

endures to all generations

Psalms 100:4-5

Researchers
 DEDICATION

This Marketing Research entitled Service Quality, Customer Satisfaction, and

Behavior Intention in Franchise Industry is dedicated to our parents, brothers, sisters,

aunties and uncles, friends, classmates and also to our dear mentor who gave us inspiration

in doing this research.

To the Almighty Father, The creator of heaven and earth and to His son, Jesus Christ,

our savior for sending the Holy Spirit who gave us knowledge and enlightened our minds

during the conduct of this research.

Researchers
INTRODUCTION

Most companies are adopting quality management programs which aim at improving
the quality of their products and marketing processes, because it has been proven that quality
has a direct impact on product performance and customer satisfaction. For this reason every
company works hard daily to win the hearts of customers by satisfying them in order that
they become loyal customers to their brands in order to increase sales and profit.
Client happiness is a sign of customer satisfaction, and has always been the most
essential thing for any organization. According to Schiffman and Karun (2004) customer
satisfaction is defined as the individuals perception of performance of the products or
service in relation to his or her expectations.
In order for a companies offer to reach the customers there is a need for services. The
services depend on the type of product and it differs in the various organizations. (Kolter &
Keller, 2009) defines service as any intangible act or performance that one party offers to
another that does not result in the ownership of anything. Quality is one of the things that
customers look for in an offer, which service happen to be one. Thus, service quality can
intend to be the way in which the customers are served in an organization which could be
good or poor.
Franchise business is character as a vertical channel between manufacturers and
retailers, between manufacturer and wholesalers, and between service supporting
companies and retailers. It is a business management system designed to create a framework
for franchisees to affectively sell products and services.
Jollibee, Mang Inasal, Jos Inato are franchise business in Dipolog City where we
can found products and services that attempt to satisfy the customers needs and wants. We
study about service quality, customer satisfaction and behavioral intention in franchise
industry to invest their relationship and also in developing and renewing and knowledge
base on that offers unique perspective and insight to our clients.
OBJECTIVE OF THE STUDY

This study look to the service quality, customer satisfaction, and behavioral
intention in franchise industry as the following question:

1. Describe quality of service of franchise industry

2. To identify the level of customer satisfaction of franchise industry
3. To describe the behavior intention of customer
4. To establish relationship between service quality and customer satisfaction on
franchise industry
5. To establish relationship between service quality and behavioral intention of the
franchise industry.

SIGNIFICANCE OF THE STUDY

This field of study is very important because service quality has a positive influence
on customer satisfaction. Thus satisfying customer needs through excellent service quality
provided by customer oriented sales people will increase the likelihood of customers, thus
following franchise business to compete effective in the marketplace. Thats why the
challenge which the franchise business is to build a good relationship with the customers by
providing to them as excellent service and makes customers satisfied and obtain customers
loyalty through great service delivering. Franchise business is important to every individual
that can help in our daily lives. As a franchisee, we have to become aware or conscious of
something in order to make a better and useful decision. This study helps us gain more
information and knowledge about the service quality, customer satisfaction, and behavioral
intention in franchise industry.

Customers and researchers can benefits of this study. For customer, they can buy
directly and choose properly without any hassle and to satisfy them. For researchers this
study would help them to get more information on how to get customers needs and wants
through sincere and for being trustworthy. It will also give inputs on what topics to explore
more about the service quality, customer satisfaction, and behavioral intention in franchise
industry based on the result of this research.
SCOPE AND DELIMITATION

This study is for marketing majors because this study would help them to gain and to
expand their knowledge about the service quality, customer satisfaction, and behavioral
intention in franchise business. This includes the evaluation within the area of Dipolog City
with the selected franchise business, Jollibee, Mang Inasal, Jos Inato. Each franchise
business mention will give their best to produce and market a good services according to
certain specification that will give satisfaction of the customers.

METHOD USED
THEORETICAL FRAMEWORK

This study is anchored by Zeithmal et al (2006) that this theory is presented, it seems
the idea of SERVQUAL dimension best fits the evaluation of service quality form the
customer perspective. Stated that service quality is a focused evaluation that reflects the
customers perception of reliability, assurance, responsiveness, empathy, and tangibles.

Reliability as the ability to perform the promised service dependably and accurately it
defines by Parasuraman, 1988. This dimension was viewed as Accurate service the
customer view the services provided reliable or perfect. Thus the franchise businesses have
some ability to perform the promised service dependably and accurately.

Assurance is knowledge and courtesy of employees and their ability to inspire trust and
confidence. Why I had to used this dimension is because franchise business has employees
well knowledgeable and follows strict regulations on to provide service to the customers that
the customers have some ways of evaluating the outcome of the services rendered to them.

Responsiveness is willingness to help customers and provide prompt service