CHAPTER IV

METHODOLOGY

This chapter focused on expounding the research design that corresponds to the

research locale and participants, the research instrument that was used to gather data and

information, data gathering procedure, its ethical considerations and the data analysis of

the research.

Research Design

This study made use of the descriptive research method and inferential statistics.

This is a descriptive analysis of the results that evaluates effects of difference in business

profile to the business. It also determines the effects of the factors in the level of

profitability of carinderias along Peñafrancia Avenue, Naga City.

This method intends to describe the respondents’ business profile in terms of term

of operation, daily capital, daily gross sales, daily labor expenses, daily revenue, products

offered and annual net income.

Research Locale and Participants

The researchers chose Peñafrancia Avenue as the whole locale of the study. The

respondents of the study are the carinderias along Peñafrancia Avenue, Naga City. Based

on the list of registered carinderias given by the secretary of Peñafrancia Barangay Hall,

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there are 76 eateries in the said barangay. The researchers chose to conduct the study to

the 20 carinderias along the Peñafrancia Avenue only.

The direct respondent of the study is the owners or any qualified representative of

carinderia and the customers of Peñafrancia Avenue carinderias. The researchers will

randomly select 100 customers as respondents.

Data Gathering Procedure

In conducting this study, the researchers first constructed survey questionnaires as

source of information. Then it was distributed to the twenty 20 carinderias that the

researchers have chosen as respondents.

The survey questionnaire for the owner of the carinderias contained inquiries

related on business profile and factors affecting the profitability of their business. After

which, personal interview with the owners or any representative is conducted to ask

additional questions which can help gather more precise data. Next, the researchers

distributed survey questionnaires for customers related on what factors they consider in

choosing a place to eat. Any confusion by the carinderia owners or any representative and

customers regarding the questionnaire is settled by the researchers.

The response was recorded and encoded to sustain the authenticity given by the

respondents. The information gathered is examined by the researchers to come up with

the conclusion.

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Research Instruments

Questionnaires and interviews are the instruments used in gathering data as the

basis of the researchers for making conclusions.

1. Questionnaire - The provided questionnaire for owners was given to the 20

respondents and data was collected thereafter. The survey questionnaire

comprises 2 main parts: Business Profile and Factors of Profitability. The

provided questionnaire for customers was given to 100 respondents who are

regular customers of Peñafrancia Avenue carinderias.

2. Personal Interview - The personal interview is conducted after answering the

survey questionnaire. It is the opportunity of the researchers to ask additional

questions regarding profitability of business.

Ethical Considerations

The data that were gathered and discussed in the study considered ethical standard

for the use of a research only. All respondents reported their written acceptance regarding

their participation in the research, through a signed consent and briefing letter.

Respondents were fully informed regarding the objectives of the study, while they were

reassured that their answers were treated as confidential and used only for academic

purposes only and for the purposes of the particular research. Researchers respected the

information and the data that were provided by the respondents.

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Data Analysis

The researchers used tabulation and frequency count/percentage in the study to

evaluate the business profiles in terms of term of operation, daily capital, daily gross

sales, daily labor expense, daily revenue, products offered and annual net income.

Σr
𝑃= × 100%
𝑟

Figure 3 Percentage Distribution Formula

Where; P = percentage

r = respondents

The researchers used Likert Scale and Weighted Mean for the extraction of data

for the factors of profitability in the research instrument. Likert scale were used in the

survey questionnaire for the respondents and its customers and weighted mean were used

in order to see the overall picture of the entire data gathered in the personal interview and

survey questionnaires.

Σwx
𝑊=
Σw

Figure 4 Weighted Mean Formula

Where; w = weights

x = value

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Table 1 Adjectival Interpretation of the Likert Scale (Average Weighted Mean)

Rating Range Interpretation

5 4.20 – 5.00 VERY HIGH – almost all indicators were practiced

4 3.40 – 4.19 HIGH – 75% of the indicators were practiced

3 2.60 – 3.39 MODERATE – 50% of the indicators were practiced

2 1.80 – 2.59 LOW – 25% of the indicators were practiced

1 1.00 – 1.79 VERY LOW – almost none of the indicators were practiced

Table 2 Adjectival Interpretation of the Likert Scale (Per Item)

Rating Range Interpretation

VERY HIGH – almost all respondents practice the said

4 3.40 – 4.19 HIGH – 75% of the respondents practice the said indicator

MODERATE – 50% of the respondents practice the said

2 1.80 – 2.59 LOW – 25% of the respondents practice the said indicator

VERY LOW – almost none of the respondents practice the

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 The Pearson’s correlation coefficient was used to show the relationship of the

independent variables (location, customer loyalty, pricing decision, quality of food and

quality of service) with the dependent variable (profitability) of this study.

n(Σxy) − (Σx)(Σy)
𝑟=
√[𝑛Σx2 − (Σ𝑥)2 ][𝑛Σy2 − (Σy2 )

Figure 5 Pearson Correlation Formula

Where;

r = Relationship of 2 variables

n = Number of respondents

Σxy = sum of the products of the paired scores

Σx = sum of x scores

Σy = sum of the y scores

Σx 2 = sum of squared x scores

Σy 2 = sum of squared y scores

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Table 3 Degree of Association or Relationship

NO. SCALE DECISION

1 1.00 Perfect relationship

2 0.80 – 0.99 Very strong relationship

3 0.60 – 0.79 Strong Relationship

4 0.40 – 0.59 Moderate Relationship

5 0.20 – 0.39 Weak Relationship

6 0.01 – 0.19 Very Weak Relationship

7 0.00 No Relationship

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