ABSTRACT

This research paper aims to obtain an understanding into the level of promotion strategy towards

customers purchasing decision in Rollerstar Company in Davao City. A quantitative and descriptive

research design was applied to measure customers' purchasing decision towards a promotion

strategy of Rollerstar Company. Moreover, the research also contributes to the literature of Marketing

Management which were important in identifying and understanding promotion strategy and

purchasing decisions of the customer. The study gained the vital data by giving a questionnaire,

administered by the researcher among 50 customers of Rollerstar Company in Davao City. The

samples were identified using a purposive sampling to qualify as respondents. The main finding of the

research shows that overall, the customers perceived attractiveness on promotion strategy in

purchasing decision in Rollerstar company is generally High which means oftentimes manifested.

Furthermore, among nine identified promotion strategies, customer graded ' free tutorials' as the most

attractive. This was closely followed by 'discount coupons', 'free trial' and 'brochures and mailing. The

study shows that discount', 'membership promotion', 'buy-five-free promotion', 'price-off promotion',

'cash-back promotion's, and 'sweepstakes' were rated the lowest in promotion strategy. The outcome

of the study which highlighted the overall level of the promotion strategy as very high which means

manifested all the time and the level of promotional strategy against purchasing decision as high

which means oftentimes manifested.

 Chapter I

Introduction

RATIONALE

It is the newest family and friends bonding spot where you can break your sweat, socialize and

enjoy authentic Korean food all in one roof, the Rollerstar, the first indoor roller skating in Mindanao.

In almost 8 months of running the business, Rollerstar experienced major problem on their business,

thus, this research is undertaken to know why they only have few customers especially weekdays.

According to Harroch (2017), it is a hard task in starting a new business and the entrepreneur will

experience many issues such as: Legal issues, Financing, Marketing, Product development,

intellectual property, human resources and many more. Speaking of marketing, which is one of the

issues that an entrepreneur will experience, Brenner (2019) observes that, the marketing is a

conversation between the entrepreneur and the customer where, they don’t know each other well.

Intensive conversation is a guide to understand the needs. Also, marketing is series of action of

injecting knowledge to consumers on why they should choose your business rather than your

competitor (Lake, L, 2019)

Product promotion is a fundamental component of a business marketing plan. Consider the

sales venue and the demographic when choosing which type of promotional strategy will be most

effective (Leonard, K., 2019).

Marketing experts agree that the San Francisco Eatery, Casa Sanchez would have lost millions of

dollars had they not capped off the craziness surroundings their 1999 tattoos promotion. (Thomas, C.,

2018). Similarly, the Dove's Commercial receives backlash from group of women and anchored that,

they've got displeased and strained. Dove apologizes and removes their advertisement (Egan, K.,

2018).

Influencing public opinion and behavior is a complicated art and hitting all the right notes in your

advertising and marketing is rarely an easy task. That’s why the researcher conducts a study about

the level of promotion strategy of the Rollerstar Company towards the people of Davao City. Because,

Kylie Whaley (2015) notes that, business cannot run a promotion without setting targets even if a
promotion is launched without a particular aim, the business person will never know how successful

promotion is.

STATEMENT OF THE PROBLEM

1. What is the level of promotion strategy of Rollerstar Company towards the people of Davao City?

In terms of:

A.) coupon

B.) free sample

C.) buy one get one free

D.) price discounts

E.) sweepstakes

OBJECTIVE

The main purpose of this study is to increase the number of customers at least fifteen percent

(15%) every month and to increase the profit at least five percent (5%) every month.

REVIEW OF LITERATURE

Brassington & Pettitt (2000) states that, sales promotion is different tactical marketing techniques

with mostly short-term incentives, which are designed to add value to the product or service, in order

to achieve specific sales or marketing objectives. Again, sales promotion is an initiative undertaken by

organizations to promote increase in sales, usage or trial of a product or services (i.e. initiations that

are not covered by other elements of the marketing communication/promotional mix). Also, Achumba

(2002) defined sales promotion as those marketing activities, other than personal selling, advertising

and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows

and expositions, demonstration etc. Sales promotion has been defined as a direct inducement that

offers an extra value or incentive for the product to the sales force, distributors or the ultimate

consumer with the primary objective of creating an immediate sale. Sales promotions is media & non

media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial
& impulse purchases, increase consumer demand or improve product quality. Similarly, According to

kotler (2003), Sales Promotion is a key ingredient in marketing campaigns and consists of a diverse

collection of incentive tools, mostly short term designed to stimulate quicker or greater purchase

particular products or services by consumers.Sales promotion is an important component of an

organizations overall marketing strategy along with advertising, public relations, and personal selling.

Also, Sale promotion acts as a competitive weapon by providing an extra incentive for the target

audience to purchase or support one brand over another. It is particularly effective in spurring product

trial and unplanned purchases (Aderemi, 2003). Also, Sales promotion has become an integral part of

the promotion schemes of both manufactures and retailers of durable as well as non-durable

consumer goods. It consumes a very significant portion of the promotional expenses of marketers. In

some of the developed countries allocation of promotion budget to sales promotion has far exceeded

spending on advertisement. Many studies have been conducted on the planning, implementation and

evaluation aspect of sales promotion worldwide. These studies are reviewed and presented briefly

under suitable heads like studies on Consumer Promotion, Studies on Sales Force Promotion, and

Studies on Trade Promotion and Other Studies on Promotion (Majeed, A., 2007). (American

Marketing Association) According to Council of Sales Promotion Agencies (2011), sales promotion is a

marketing discipline that utilizes a variety of incentives techniques to structure sales related programs

targeted to consumers/trade/ and or sales level, that generate a specific measurable action or

response for a product/service.

Most marketers believe that a given product or service has an established perceived price or

value, and they use sales promotion to change this price value relationship by increasing the value

and/or lowering the price compared with other components of the marketing mix (advertising,

publicity, personal selling). In determining the relative importance to place sales promotion in the

overall marketing mix, an organization should consider its marketing budget, the stage of the product

in the life cycle, the nature of competition in the market, the target of the promotion, and the nature of

the product. For example, sales promotion is particularly attractive alternative when the budget is

limited (Kelvin, 2012).

BUY ONE GET ONE FREE

“Buy one get one free” is one of promotion method of sales promotion in which an extra product is

offered to the customers at normal price but with greater improve in package. The customer could

easily influence to purchase he produce because there is no condition of any additional price and it

should be more valued by the customer to perceived (Sinha & Smith, 2000).Technology promotion

"buy one get one free" is one of the types of bonus packages in which consumers are offered the

additional product at the normal price, but it was found in an improved package. Consumer would be

easily convinced to buy products that do not require additional fees and higher perceived by

consumers value (Sinha and Smith, 2000). Also, the bonus 3package inspires the consumers to

purchase the produce (Percy, Rossiter, and Elliiott, 2001). The bonus packs liked by producers or

manufacturers because it should increase the product trial, switching a product and forcing stores to

stock product. According to Li, Sun & Wang (2007), this technique of promotion would be very useful

to manufacturer because it should help the retailers to clear the stock more hastily as contrast price

promotion.

Buy-one-get-one-free has positive relationship towards consumer buying behavior In terms of

buying behavior, consumers often endless search to meet your needs and satisfaction of finding

something new or better, as each own behavior, attitude and thinking, while the selection of products,

services and make purchase decisions. As a result, there is a wealth of literature that has examined

the behavior of consumers to buy and studies have reported that many factors that may affect the

conduct or to buy or not to buy a consumer product. According to Smelser and Baltes (2001), the

majority of the activities of daily life are dominated by the conduct of the purchase and the knowledge

acquired from such malls, downtown, shopping, recreation, amusement, cars and some other

institution where sexual stimulation can be. William (2002) found that social class has a significant

commitment on the evaluation criteria of purchase. The formation of attitudes and motivations of

position value, income, and the public at the time of childhood and education levels contribute to the

social class itself. According to Yip (2003), the social class of the person indirectly shows that low-
income behind the choice limited when making purchasing decisions.

PRICE DISCOUNTS

It is indicated that a huge discounted price for any product which happened to be in sales

seasons would exercise by dealers because of consumer’s price awareness (Smith and Sinha, 2000).

Also, according to Percy (2001) consumers are more to be attracted to price discount promotions.

Also, Fill (2002) anchored that, price reduction is a valuation approach where goods or products are

offered in a good discounted buying price and it seems to be a reduced cost to the consumers, mostly

applied in hypermarkets and point of purchase displays.Others stated that price reduction has a

relationship with different promotion tools in a way that they are affecting each other and pushing the

customers to buy the product, such as coupons and samples (Gilbert and Jackaria, 2002)

Other studies found that price discounts (cut off prices) playing an important role in stimulating

new customers’ behaviors to try the offered products (Blackwell, Miniard and Engel, 2001; Fill, 2002;

Shimp, 2003). Ndubisi and Chiew (2006) claimed that product trail has a relationship with price

discount, in a sense that the first can be increased by price reduction for any product.

ADVERTISING

Brassington & pettitt (2000) defines advertising as “any paid form of non-personal

communication directed toward target audiences and transmitted through various mass median in

order to promote and present a product, service or idea. The key difference between advertising and

the other promotional tools is that it impersonal and communicates with large numbers of people

through paid media channel. Also, according to William J. Stanton (2002) Advertising consists of all

the activities involved in presenting to an audience a non-personal, sponsor-identified, paid-for

message about a product or organization. American Marketing Association has defined advertising as

“any paid form of non -personal presentation of ideas, goods and services by an identified sponsor”.

Wroe Alderson (2010), notes that, the word advertising comes from the Latin word "advertere”

means to turn the minds of towards". Advertising consists of all the activities involved in presenting to

an audience a non-personal, sponsor-identified, paid-for message about a product or organization.

Advertising is used for communicating business information to the present and prospective
customers. It usually provides information about the advertising firm, its product qualities, place of

availability of its products, etc.

Ifezue, A.N (2005) anchored that, advertisement is indispensable for both the sellers and the

buyers. However, it is more important for the sellers. In the modern age of large scale production,

producers cannot think of pushing sale of their products without advertising them. Advertisement

supplements personal selling to a great extent. Advertising has acquired great important in the

modern world where tough competition in the market and fast changes in technology, we find fashion

and taste in the customers.

SWEEPTAKES

Contests and sweepstakes have the aim of collecting consumer participation as well as

generating widespread interest in a product. In contests and sweepstakes, potential customers are

encouraged to either compete for prizes or try their luck in submissions for prizes in drawings. Due to

the lack of skill required for entering most sweepstakes, sweepstakes are an effective way to increase

short term sales or market share (Ferrell & Hartline, 2008)

Establish an action plan for the Inbound Marketing strategy that you have planned, and don’t

forget to include contests, sweepstakes or polls as these are highly effective ways for brands to

attract clients while giving their followers something fun to do online. If there are prizes at stake in

your contest then the users’ interest is almost guaranteed. In addition, you can focus part of these

contests or promotions on taking care of those who are already your customers, rewarding their

loyalty. You’ll be able to achieve multiple goals:

 Engagement with the community.

 Capturing new leads.

 Building loyalty to current customers who will speak well of the brand.

 Good brand positioning, attracting new clients. (Jensen, R., 2017)

COUPONS

Coupons are defined as vouchers or certificates, which help consumers to a price reduction on a

specific product (Fill, 2002).Wayne (2002) in a new consumer research on three recent coupon

programs showed that the promoted brands gained incremental sales through enlarged trial and

succeeding non-coupon purchases. The value of discount or price cut is set and the coupon must be

presented when customer purchases product. According to Cook (2003), coupons are easily

understood by the customer and can be extremely useful for trial purchase. Coupon is a confirmed

method by which producers can communicate with customers and it can be used as a strong brand-

switching tool. They also wrote that coupon advertising was between the least used and not accepted

marketing tools by customers. Attitude towards Coupons the word of coupon advertising is related to

those customers who gained vouchers are eligible to get allowance on the products at its usual price

(Ndubisi& Chew, 2006).

Some researchers indicated that consumers are influenced by the price reduction in the given

coupons, so coupons used to be as a smart sales tool (Dark, 2000). Coupons considered as one of

the most used tools by marketers to stimulate consumers by giving them a voucher or certificate that

save some money when they want to purchase any type of products later on or in the future, such as

25% reduction from the main price or a fixed discounted amount like 5$ per piece (Fill, 2002; Harmon

and Hill, 2003; Ndubisi and Chew, 2006). According to Cook (2003) customers can easily be

convinced with the coupons technique since it is very useful tool for trial buying, and it considered as

a good way to be used to induce customers brand switching. Nudubisi and Tung (2005) states that,

coupons have many benefits and trends towards the marketers in a way that they can boom the sales

in a short period of time and they can stimulate customers to switch to other brands or products.

Kotler and Armstrong (2006) examined the electronic coupon machines as a good tool to save

customers purchasing history, and based on that, voucher will be offered depends on customer

current bill and on the pervious purchased amount.

On the other hand, according to Gilbert and Jackaria’s, (2002) they found that coupon promotions

have no significant effect on volume of product purchased by a consumer. Also, some researchers
showed that coupon is ineffective tool to be used as sales promotion; these studies examined

customers behavior towards the huge price reduction offered by coupons; since it can affect the value

of any product negatively, and that can lead to an influence on product trial (Silva-Risso and Bucklin,

2004; Gilbert and Jackaria, 2002).

FREE SAMPLE

The word “free” is regularly used in offerings and promotions, particularly in product trials and

in advertising claims. Nonetheless, evidence suggests that marketers’ ubiquitous use of “free” may

cause consumers problems in estimating the value of the offer (Munger and Grewal, 2001). They

evaluate consumers about free service trial offers through research

This is despite the tactic being widely employed by a large number of service providers around

the world, such as McAfee's anti-virus services (Clancy, 2002), Deluxe Online Billing Services (Foster,

2002) and cable companies temporarily providing premium channels for free. In its heyday, AOL

offered hundreds of millions of free internet hours to potential subscribers (Conley, 2002) . Deluxe

Online Billing Services and cable companies’ temporarily providing premium channels for free(Foster,

2002). In its heyday, AOL offered hundreds of millions of free internet hours to potential subscribers

(Conley, 2002).

Sampling is a smart way to present fewer amounts of products to the customers with no cost,

and it can be sent directly to the customer by mail or attach the sample to another type of products, so

they can able to test or try the product rather than just hear about it, which it can affect their behavior

to purchase it in the near future (Pramataris, 2001; Pride and Ferrel, 2008). Other researchers agreed

that free sampling method has a positive effect on consumer buying behavior (Parmataris, 2001; Fill,

2002; Shimp, 2003). Also, Clow and Baack (2007) defined the free sample method as a technique to

induce customers to try new lunched products. Jackaria and Gilbert (2002) did not agree with this

positive relationship between free samples and consumer buying behavior, which it can be varied

from product to another and from specific time to another. Later on, Ndubisi and Chiew(2006)

admitted that free samples technique has a significant relationship on consumer buying behavior.

This typology can be used to classify the way experience-based and credence-based service
firms design or offer a free trial to their prospective clients in order to generate new sales. It is

plausible to suggest that firms which offer services which are largely experience-based are more likely

to offer full or partial core service trials, as the firms attempt to allow the consumers to use their

personal judgment to evaluate service performance (Mittal, 2004). Product “samples stimulate trial of

a product, increase volume in the early stages of the product's life cycle, and encourage consumers

to actively search for a product” (Ferrell & Hartline, 2008). One of the draws of loyalty programs

versus other promotion methods for firms is the possibility of dramatically increasing profits over the

long term due to the repeat purchases of loyal customers (Ferrell & Hartline, 2008).

CUSTOMER PURCHASING DECISION

Consumer behavior is related to a consumer's physical action, which can be directly measured. It

is possible to measure the number of visits to shops or malls. It is very difficult to choose and analyze

directly to choose a particular store and then go there. Where, various types of actions can be

measured, including a pattern of shopping in stores. This type of measurement is very difficult.

Through offering lower prices, better service and good performance, behavior can be evaluated in

different ways (Papanastassiu and Rouhani, 2006)

This opinion suggests that the quality of service is an important result of comparing the

preferences of consumers before and after their service experience, when, consumers find that their

standards for service performance correspond to their perceptions of service, this may lead to the

notion of service quality being induced (Gronroos, 2007).Good service value will allow consumers to

repeat service order. It shows the behavior of customers towards the service provider. Customer

loyalty would benefit the quality of service that meets customer expectations. This intention will make

the favorable inclination of customers a service compared to other companies that offer the same

service [Kaura, Prasad & Sharma 2015].

Companies that use product line pricing set price steps between different products in a product

line usually based on cost differences between products, consumer evaluations of different

characteristics and competitor prices (Kotler et al 2001). Pricing a product or service is one of the vital
decisions that management makes, according to Munroe (2003).Price serves as a metric from the

consumer's point of view to assess consumer experience with goods or services (Mattila & O'Neill,

2003). Pricing was seen as the major point of pressure for managerial decision-making, hence its

importance. This is a pricing policy in which a company deliberately charges lower prices in order to

drive competitors out of the market while remaining the dominant or even the monopoly company in

that industry after which it will launch the actions characteristic of a monopoly. (Lamb, McDaniel and

Hair 2004; Brassington and Pettit 2006).Prices are sometimes lower than the cost of production. The

goal is to bankrupt the competition in order to allow the new entrant to take over fully (Blythe 2005).

This is seen mostly in sectors with a market leader and regular variations in prices. "Price leadership

does not necessarily imply that the stability objective is achieved by charging all companies in the

industry the same price as the leader set (Stanton, 1981). It only means that there are some normal

relationships between the price of the leader and those paid by other firms (Sean, 2005).Pricing,

according to Han (2009), It is one of the most important components for rapid improvement it is the

value attached to an item. In addition, the price is the amount of money that a product or service is

charged. It is the sum of all the qualities that consumers give up to the benefit of having an item or

using it. (Kotleret al, 2010). Value Price plays an important role in choosing a commodity. Price is a

price or benefit offered to the company in return for the fulfillment of the need. Price should be

consistent with perceived customer wishes. Pricing for a product or service is not easy to decide

because the core values of the available goods are used to evaluate prices that are crucial to

consumer satisfaction because the price is the most prominent factor in helping customers estimates

the value of the good or service. Price also decides whether or not to make a purchase for a customer

Therefore; consumers are more likely than anything else to base their purchase decision on price

factor (Khan, 2011).

Need Recognition & Problem Awareness

The buying process starts with need recognition which the buyer recognizes a problem or need.

The need can be triggered by internal stimuli when one of the person’s normal needs, for example,

hunger or thirst was rises to a level high enough to become a drive. A need can also be triggered by
external stimuli (Kottler, 2011) For example; an advertisement or a discussion with a friend might get

you thinking about buying soft drinks like Coca-Cola. At this stage, the marketer should research

consumers to find out what kinds of needs or problems arise, what brought them about, and how they

led the consumer to this particular product.

Information Search

An interested consumer may or may not search for more information. If the consumer’s drive is

strong and a satisfying product is near at hand, he or she is likely to buy it then. If not, the consumer

may store the need in memory or undertake an information search related to the need. Consumers

can obtain information from any of several sources. These include personal sources (family, friends,

neighbors, acquaintances), commercial sources (advertising, salespeople, dealer Web sites,

packaging, displays), public sources (mass media, consumer rating organizations, Internet searches),

and experiential sources (handling, examining, using the product). The relative influence of these

information sources varies with the product and the buyer. Generally, the consumer receives the most

information about a product from commercial sources those controlled by the marketer. (Kottler,

2011)The most effective sources, however, tend to be personal. Commercial sources normally inform

the buyer, but personal sources legitimize or evaluate products for the buyer.

Evaluation of Alternatives

The stage of the buyer decision process in which the consumer uses information to evaluate

alternative brands in the choice set. The information evaluated will be used in different consumer to

choose what they think its best, in order to do so, he will evaluate attributes on two aspects such as

objective characteristics(features and functionality of the product) but also subjective (perception and

perceived value of the brand by the consumer or its reputation) (kottler,2011).

Purchase

In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally,

the consumer’s purchase decision will be to buy the most preferred brand, but two factors can come

between the purchase intention and the purchase decision. The first factor is the attitudes of others

and another is unexpected situation factors (Kottler 2011).

Group of Purchasing Decision

Complicated Decision Decisions that are adopted to solve the complex problems are consistent

with traditional decision making. Decision-making processes for solving complex problems, usually

start with motivated to achieve a good. Decisions made are along with a lot of risk. The consumer

tries to collect available information as possible, including its memory (local search) also external

sources (external search). Each product base on importance of decision, carefully evaluated and

between assessments the choice is made according to features of a particular brand.

Limited Decision Making

Limited decision making is usually easier and more intelligible. Buyers have little incentive to

collect information and are not strict evaluate the options. They use simple rules to select one of the

options such cognitive causes the consumer instead of restarting making decision in future, to be able

to a general guideline for this purpose.

Regular Decision Making

Complex and time-limited decision making some measurements and data collection provided.

Many purchase decisions are made when the goods seen within the store shelf. Selection of such

goods, with minimum effort and without prior knowledge of product features usually takes place

automatically. Purchase based on habit and repeat purchase behavior allows consumers to spend

less energy to decision of buying this product. Decision making to purchase goods and services in

these three categories can be better examined by five factors:

▪ Level of consumer involvement

▪ Time of the cost of a good or service

Post-Purchase

The marketer’s job does not end when the product is bought. After purchasing the product, the

consumer will either be satisfied or dissatisfied and will engage in post 18 purchase behavior of

interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a

purchase? The answer lies in the relationship between the consumer’s expectations and the product’s
perceived performance.

Need Recognition &

Problem Awareness

Information Search

Evaluation of
Alternatives

Purchase

Post-Purchase
Evaluation

Figure 2.1: Concept of Purchasing Decision Source: Purchasing Decision Process (Kotler, 2012)

Figure 2.1 above explains purchasing decisions process that consumer they are used. Several

models are developed with a view to provide explanations for the purchasing decisions of the

consumer. Although they vary in form of presentation, most of them are composed of stages such as

pre-purchase, purchase and post-purchase (Hoyer, 2001; Jaworski, 2003). Based on this loophole,

Jaworski, (2003) further propose the circle of consumption that recognize purchasing processes as a

loop, comprising acquisition of goods and services, consumption, as well as disposal of used goods.

Stage one is need recognition which occurs when a customer is aware of a difference goods between

their perception and the actual satisfaction level (Solomon et al., 2006). And it’s divided into two kinds
of needs such as functional needs and psychological needs. Functional needs are related to the

performance of the product whereas psychological needs. Stage two is the search of information. The

length and depth of search vary for different customers.

Theoretical framework

This study was anchored on the pronouncement of Kotler (2003) stated that the sales promotion

is a key ingredient in marketing campaigns and consist of a diverse collection of incentives tools.

Examined the electronic coupon machines as a good tool to save customer purchasing history and

voucher will be offered depends on a customer current bill and on the previous purchased amount.

CONCEPTUAL FRAMEWORK
DEPENDENT
INDEPENDENT VARIABLES VARIABLES

PROMOTION

STRATEGY
(INDICATORS) CUSTOMERS
 Buy one get one PURCHASING
free DECISION
 Coupons
 Free sample
 Sweepstakes
 Price discounts
 Advertising

The independent variable is promotion strategy measured by: buy-one-get-one- free, coupons,

free sample, sweepstakes, price discounts and advertising based on the work of (Zhanting, Y.,

2009).“Buy one get one free” is one of promotion method of sales promotion in which an extra product

is offered to the customers at normal price but with greater improve in package(Sinha & Smith, 2000),

While, Coupons are defined as vouchers or certificates, which help consumers to a price reduction on

a specific product (Fill, 2002), also, The word “free” is regularly used in offerings and promotions,

particularly in product trials and in advertising claims (Munger and Grewal, 2001), then, Contests and

sweepstakes have the aim of collecting consumer participation as well as generating widespread

interest in a product(Ferrell & Hartline, 2008).It is indicated that a huge discounted price for any
product which happened to be in sales seasons would exercise by dealers because of consumer’s

price awareness (Smith and Sinha, 2000). And lastly,Brassington & pettitt (2000) defines advertising

as “any paid form of non-personal communication directed toward target audiences and transmitted

through various mass median in order to promote and present a product, service or idea. However,

the dependent variable is customers purchasing decision in Davao City. Consumer behavior is related

to a consumer's physical action, which can be directly measured (Papanastassiu and Rouhani, 2006)

Significance of the study

This study will be a great benefit to many businesses that shows poor of promotion that result to

lack of customers patronizes. This will make a contribution to the knowledge of an entrepreneur on

the customers' purchasing decision towards promotion strategy.

Also, this study could provide useful information they could use as reference in conducting their

Research about the effects of Promotion strategy on customers' purchasing decision.

Therefore, this study will aid the entrepreneur, students and even the professor in giving a

standard and synchronized way of making strategies, studies and discussions.

Definition of terms

Promotion Strategy- is designed to inform, persuade, or remind target audiences about those

products.

Purchasing Decision- is the thought process that leads a consumer from identifying a need,

generating options, and choosing a specific product and brand.

Consumer Promotion-Actions intended to convince individuals to purchase a good or service.

Marketing mix- A combination of factors that a business should control while buying its products to

influence consumers.
 CHAPTER II

METHODOLOGY

The research methodology is used to give rise to diversities of perception, interception,

description, conception and even misconception of possible and probable relevancy, validity and

significance toward researchers and readers alike (Shafiee, 2017). Also, Ness, L. (2020) stated that,

the academic significance of the research method is that: this how the research questions are

answered via data collection and analysis, to achieve the research purpose, based on the problem to

be addressed and gap to be filled.

Research Design

There are many definitions available for quantitative research given by different authors. Aliaga

and Gunderson (2002) have described the quantitative research methods very well. According to

them " Quantitative research is an inquiry into a social problem, explain phenomena by gathering

numerical data that are analyzed using mathematically based method, e.g. in particular statistics.

Studies aimed at quantifying relationships are of two types: descriptive and experimental. In a

descriptive study, no attempt is made to change behavior or conditions, you measure things as they

are, while, in an experimental study you take measurements, try some sort of intervention, then take

measurements again to see what happened (Hopkins,2008). The proponents used the descriptive

statistics, a design method which involved statistics.

Research Locale

This study will be conducted in SM LANANG Rollerstar Company. Located at J.P. Laurel Ave,

Agdao, Davao City. This place was selected to know the level of promotion strategy towards

purchasing decision of Rollerstar Company. This research study was implemented to helped the

researchers found out how effective the promotional strategy toward purchasing decision of the said

company.

The research locale is vital in this process because you need to make decisions on what

specific subject you are researching and what location you are going to be conducting it in. Before

you undertake any form of research you need to ensure that you have all the knowledge of the area

you are studying available to you (Joynson, 2014).

Population and Sample

After it has been decided to sample, the target population must be identified. The target

population is defined as the specific, complete group relevant to the research project” (Zikmund,

2003). Although not difficult to define in many cases, it is important to be specific in defining the

population so that an appropriate sample group may be identified. Khan (2015) proposed the rule

soft , such as that sample size larger than 30 and less than 500 are appropriate and the sample size

should be several times as large as the number of variables. Therefore, the proponents choose to

have 50 sample size. The populations for this research study will consist of adults who perform

skating at Rollerstar. For this research study, members of the sample will be selected via purposive

sampling. In purposive sampling, the items are selected in such manner that each of them are rich in

information about the parameters that we are trying to study in the population (Devkota, 2020) . To

collect survey questionnaire responses via survey questionnaires will be distributed to Rollerstar

customers. For assurance that all respondents have been to Rollerstar, before being ask to complete

a survey, each potential respondent will be ask if they have been to Rollerstar and took the service.
Research Instrument

The questionnaire is the commonly used instrument for collecting research data from the

participants of a study. “It basically seeks the opinions of individuals in a sample or a population on

issues directly related to the objectives of the research study (Japheth, 2014). It is the major tool used

by the researcher in gathering the significant data from the respondents. The instrument was design

in a simple and clear manner. The questionnaire was divided by three parts. First is the demographic

data, second are the promotional strategies and third is the purchasing decision.

To implement the respondents of the participants the scale below was implemented:

Range of Descriptive Level Interpretation

Means
4.20 - 5.00 Very high This means the level of promotion strategy is
manifested all the time

3.40 - 4.19 High This means that the level of promotion

strategy is oftentimes manifested

2.60 - 3.39 Moderate This means that the level promotion strategy
is sometimes manifested.
1.80 - 2.59 Low This means that the level of promotion
strategy is seldom manifested
1.00 - 1.79 Very low This means that the level of destination
attractiveness is never manifested

Data Collection

The collection of data is an important part of any research activity. This is because; the

conclusions of the study are based on what the data reveals. Hence, no research is greater than his

data. Basically, data can be obtained from two major resources; primary and secondary sources

(Japheth, 2014). Proponents collecting data from primary sources in which primary data reflects the

information the researcher gathers through the use of questionnaire or the process of personal

interview or observation. According to Japheth, 2014) Researchers can collect the following types of

data from respondents: Demographic information or data e.g. age, sex, gender, educational

background, etc.
Statistical Tool

Statistical knowledge helps you use the proper methods to collect the data, employ the correct

analyses, and effectively present the results, Statistics Uses Numerical Evidence to Draw Valid

Conclusions (Frost, 2020). In accordance with the objectives of the study and the statement of the

problem, the data that the researcher will gather be subjected to tabulation, statistical analysis and

interpretation. The data that will be obtain will be computed and analyze using the Descriptive

statistics (Donges, 2018).

Mean

The mathematical mean is an essential statistical concept and is taken into consideration to be a

core subject matter in introductory facts courses (Landrum 2005). However, an intuitive expertise to

the implyregularly escapes college students (Watson 2006). For example, college students are able

to defining the mean algorithmically, but they're unable to offer any conceptual insight (Matthews and

Clarke 2007). Like other essentialstatistical concepts (e.g. the overall linear model, see Chartier and

Faulkner 2008), the imply canbe conceptualized in plenty of ways. Consequently, it'd be beneficial for

college students if data educators: (a) have at their disposal lots of feasible conceptualizations of the

mean; and (b) increase hypotheses concerning how a scholar might conceptualize the mean. This

would resource educators in growing an eclectic variety of possibilities to give to students so that

college students can assemble their own information of the imply in preference to parrot the formula.

Standard Deviation- This will be used to develop a statistical measure of the mean variance.The

standard deviation, which is often represented by the Greek letter sigma, is the indicator of data

distributed around mean.A high standard deviation means that data is more widely distributed from

the mean where a low standard deviation shows that more data aligns with the mean (Begum and

Ahmed, 2015).

Percentage- This will be used to explain the ratio of the respondents based on their demographic

profile.

Frequency- This will be used to explain the actual number of the respondents.
 CHAPTER III

RESULTS
Presented in this chapter are the interpretation, analysis, findings, and results regarding the
promotion strategy towards customers purchasing decision in Rollerstar Company in Davao City. The
information was organized, interpreted and analysed to construct a better understanding that will
benefit the reader of this research paper.

Demographic profile of the respondents

Table 1
Summary on Socio-Demographic profile of the Respondents in terms of Sex
Profile Frequency Percentage
(n=50) (%)
Gender
Male 20 40%
Female 30 60%
Total 50 100%

Of the total number of respondents, table two shows that the majorities are female which
consist of 30 or 60% and the other 20 and 40% are male.
Table 2
Summary on Socio-Demographic Profile of the Respondents in terms of Age
Profile Frequency Percentage
(n=50) (%)
Age
15-20 years old 11 22%
21-25 years old 13 26%
26-30 years old 6 12%
31 above 20 40%
Total 50 100%

Presented in table one is the result of the socio-demographic profile of the 50 respondents
residing in Davao city. The age groups of respondents range from 15 years to 31 years above, with
the largest group in the age range 31 above (40%). The cohort of 21-25 years (26%), 15-20 years
(22%), and 26-30 years(12%) as the smallest group in range.

Table 3
Summary on Socio-Demographic Profile of the Respondents in terms of Education level
Profile Frequency Percentage
(n=50) (%)
Education level
High School 8 16%
Senior high 6 12%
College level 36 72%
Total 50 100%
Of the total number of respondents indicated in table three (72%) are college level, followed by
high school (16%), and senior high school (12%)

Table 4
Summary on Socio-Demographic Profile of the Respondents in terms of Occupation
Profile Frequency Percentage
(n=50) (%)
Occupation
Student 14 28%
Employed 30 60%
Unemployed 6 12%
Total 50 100%
Of the total number of respondents indicated in table 4 60% are employed, followed by students
(28%), and unemployed (12%).

Level of Promotion Strategy towards Purchasing Decision

Table 5
Summary on the level of the over-all Promotional strategy towards Purchasing Decision
 Shown in table 5 was the summary of the level of over-all promotional strategy towards
purchasing decision in residing Davao city. It range from 4.09 to 4.32 with an over-all mean (x¯) of
Attribute Standard Deviation Mean Descriptive
(SD) (X) Equivalent

Promotional 0.95 4.32 Very High

Strategies

Purchasing 0.98 4.09 High

Decisions

Overall 0.97 4.21 Very High

4.21 or qualitatively describes as very high with a standard deviation (SD) of 0.97 which gives an
implication that the level of promotion strategy towards purchasing decision. The details of the table
are organized from the highest to lowest mean rating. The attribute promotional strategy’ scored ‘4.32’
ranked first, followed by ‘purchasing decision’ scored ‘4.09’

Table 6
Level of the Promotion Strategy towards Purchasing Decision in terms of Promotional Strategies
 Items (SD) Mean Descriptive
equivalent
Brochures and mailings which show the 0.74 4.50 Very High
discount
Sweepstakes 1.01 3.80 High

Buy- five-free promotions 0.90 4.34 Very High

Discount coupons 0.89 4.54 Very High

Price-off promotions 1.00 4.30 Very High

Membership promotions 0.97 4.38 Very High

Cash-back promotions 0.97 4.14 High
Free tutorials 0.95 4.58 Very High
Free trial 0.97 4.53 Very High
Overall 0.93 4.35 Very High

In the identified nine promotional strategy, as the most attractive with the mean 4.35 means very
high, and standard deviation (SD) 0.93 which means oftentimes manifested. This implied that
respondents ascertain the importance of indicator as very attractive.

Table 7
Level of the promotion strategy towards purchasing decision in terms of purchasing decision
Items (SD) Mean Descriptive
equivalent
Product promoters at a Rollerstar have 1.13 4.02 High
influenced my purchase of a product.
I want to buy more than usual when there 0.76 4.30 Very High
is a promotion to win something.
I am more likely to buy two or three of a 0.86 4.22 Very High
product if I will receive a free gift.
I am more willing to buy two or three of a 0.86 4.10 High
product if I will receive a free gift
I am more likely to shop at a Rollerstar if I 0.90 4.14 High
have a credit card for the store that will
give me a percentage of my purchase
back.
I go to the Rollerstar more often when I 0.80 4.34 Very High
know there are promotions in which I am
interested.
The board at the front of the Rollerstar 1.03 4.04 High
displaying the weekly and daily
promotions affects what I buy.
I am more inclined to buy a product when 1.04 3.90 High
there is a sweepstakes or contest I can
enter.
I am more likely to purchase a product if 0.91 4.30 Very High
there is a “buy one get one free”
promotion.
If there is a price off promotion, I will buy 0.90 4.20 Very High
more of the product to save for a later
date.
If a price off promotion requires buying 1.01 3.92 High
more than one product, I still like to
participate in the promotion.
I am more likely to buy a product a 0.87 4.06 High
product after I try it at Rollerstar.
I am more likely to buy a product after 0.83 4.20 Very High
seeing a demonstration of the product
being used.
I often purchase products displayed near 1.20 3.56 High
the checkout counter.
I try to spend enough to get cash back 1.16 3.82 High
coupons.
I am more likely to buy a product if I have 1.03 4.08 High
a coupon for it.
After buying a product on promotion, I 1.10 3.94 High
usually buy the product again after the
promotion is over.
I am more likely to purchase a product if I 0.94 4.36 Very High
can earn extra rewards point for my
membership program.
Overall 0.96 4.08 High

The table 7 present the summary of level of promotion strategy towards purchasing decision in
terms of purchasing decision with overall mean of 4.08 or qualitatively describe as high, and standard
deviation (SD) 0.96 which means oftentimes manifested. This implied that respondents ascertain the
importance of indicator as very attractive.

Table 8
Promotional strategies
Items (SD) Mean Descriptive
Equivalent

Sweepstakes 0.90 3.80 Low

Cash-back 0.97 4.14 Low
promotions

Price-off promotions 1.00 4.30 Low

Presented in table 8, it revealed the lowest mean in terms of promotion strategy. Buy five free
promotions with the mean 4.30 means low, and the standard deviation 1.00 which oftentimes
manifested. The second is the Cash- back promotions with the mean 4.14 means low, and the
standard deviation 0.97 which oftentimes manifested. The last one is the sweepstakes promotion as
not the most attractive with the mean 3.80 means very low, and standard deviation (SD) 0.90 which
means oftentimes manifested. This implied that respondents ascertain the importance of indicator as
not very attractive.

Table 9
Items (SD) Mean Descriptive
Equivalent
Free tutorials 0.95 4.58 High
Free trial 0.97 4.53 High
Discount coupons 0.98 4.54 High

Presented in the table 9, it revealed the highest of the promotion activities on table 6. Free trial
promotion with the mean 4.53 means high, and the standard deviation (SD) which manifested all the
time. The second is the Discount coupons promotions with the mean 4.54 means high, and the
standard deviation (SD) 0.98 which means manifested all the time. The most attractive with the mean
4.58 means very high and the standard deviation (SD) 0.95 which means manifested all the time. This
implied that respondents ascertain the importance of indicator as very attractive among in the
promotion strategy.

Table 10
Purchasing Decision
Items (SD) Mean Descriptive
equivalent
I often purchase products displayed 1.20 3.56 Low
near the checkout counter.
I try to spend enough to get cash 1.16 3.82 Low
coupons.
I am more inclined to buy a product 1.04 3.90 Low
when there is a sweepstakes or contest
I can enter.

Presented in table 10 it revealed the lowest mean in terms of purchasing decision. One of the
lowest is the respondents not the purchase products displayed near the checkout counter with the
mean 3.56 means low, and the standard deviation (SD) 1.20 which means oftentimes manifested. The
second is the respondents not to spend enough to get cash coupons with the mean 3.82 means low,
and the standard deviation (SD) 1.16 which means oftentimes manifested. The last one the
respondents not inclined to buy a product when there is a sweepstakes or contest with the mean 3.90
means low, and the standard deviation (SD) 1.04 which means oftentimes manifested. This implied
the respondents ascertain the importance of indicator as not attractive to purchasing decision.

Table 11

Purchasing decision
Items (SD) Mean Descriptive
 Equivalent
I am more likely to purchase a product if I can 0.94 4.36 High
earn extra rewards points for my membership
program
I go to Rollerstar more often when I know there 0.80 4.34 High
are promotions in which I am interested.
I want to buy more than usual when there is a 0.76 4.30 High
promotion to win something

Presented in table 11, it revealed the highest means in terms of purchasing decision. One of
the highest mean is the respondents like to purchase a product if there are extra rewards points for
the membership program with the mean 4.36 means high, and the standard deviation (SD) 0.96 which
means manifested all the time. The second with the mean 4.34 means high, and the standard
deviation (SD) 0.80 which means manifested all the time. The last is the respondents want to buy
more when there is a promotion to win something with the mean 4.30 which means high, and the
standard deviation (SD) 0.76 which means manifested all the time. This implied the respondents
ascertain the importance of indicator as the most attractive to purchasing decision.

Chapter 4

DISCUSSION

The content of this chapter is an outline according to the presentation of analysis and

interpretation of the data found in Chapter 3. Presently, the conclusions and recommendations are

also the study of concerning Level of Promotion Strategy towards Customers Purchasing Decision in

Rollerstar Company in Davao City.

Socio-demographic Profile of Respondents

Based on the findings, the majority of the respondents were female, the Level of Promotion

Strategy towards Customers Purchasing Decision in Rollerstar Company in Davao City, shows that

15-31 years of age is the most costumer age group of recent months, with a sex ratio of 30:50 (or
40% male, and 60% female) which shows that most of them are female roller skater costumers.

Level of Promotion Strategy towards Customers Purchasing Decision

The findings of the research in the Level of Promotion Strategy towards Customers Purchasing

Decision had an overall descriptive equivalent of very high. The collected data shows that generally

the variable is oftentimes manifested on the customers purchasing decision. (Kuara, Prasad and

Sharma 2015) predicted and found that good service value will allow customers to repeat service

order. It shows the behavior of customers towards the service provider. Customer loyalty would

benefit the quality of service that meets costumer expectations. This intention will make the favorable

inclination of costumers a service compared to other companies that offer the same service.

Among the two level of promotion strategy towards purchasing decision, customers find the

“Promotional Strategy” as the most attractive attribute. This implicates the importance of these

services such as Free Tutorial (#1), Discount Coupon (#2), and Free Tutorial (#3). This is in support of

the study of Leonard, K. (2019) that product promotion is a fundamental component of a business

marketing plan. Consider the sales venue and the demographic when choosing which type of

promotional strategy will be most effective.

In addition, (Kotler, 2003) explored sales promotion activities are impersonal and usually non-

recurring and are directed to ultimate consumers, industrial users and middlemen, particularly current

and prospective customers. Its primarily purpose is to increase profit by increasing sales volume.

On the other hand, promotion achieves its target by directly impacting buying behavior and

attitude (Alvarez and Casielles, 2005).

In regards with the attribute Purchasing Decisions, replicates from the study of Hawkins, Best and

Coney (2001:504) that continuum suggests that decision making becomes more complex as

consumers move from a very low level of involvement with a purchase situation to a high level of

involvement.

Engel Et al. (1995:156) summaries extended decision-making by stating that “though and

evaluation precede the act of purchase and use because of the importance of making the right

choice.”
 Furthermore, ILYOOB (2015) explicated that it is very important for the enterprises to understand

the cycle of buying process, because only through the buying process models companies can

understand their customer needs.

Conclusion
The key objective of this research is to point out the overall level of promotion strategy towards

purchasing decision. Free tutorials are the most attractive promotional strategies and discount

coupons ranks second. Moreover, free-tutorials are an important factor or strategy to succeed their

purchasing decision. Whereas, the following strategies such as free-trial, discount coupons,

brochures and mailing which shows the discount also detected very high rating in its level of

attractiveness. Furthermore, the sweepstakes, cash-back, and buy-five-free promotions, although

they got the lowest rating, were also stratified with high levels of attractiveness. It is also shown that

among the nine promotions, sweepstakes, cash-back and buy-five-free promotion got the lowest

mean. This means that the most of the customers don't like this kind of promotions.

Recommendation

The outcome of the study which highlighted the overall level of the promotion strategy as very

high which means manifested all the time and the level of promotional strategy against purchasing

decision as high which means oftentimes manifested. This implied that respondents ascertain the

importance of indicator as very attractive. It signifies that there are still opportunities for the Rollerstar

Company to formulate a plan in order to improve the level of promotion strategy towards purchasing

strategy. Based on the results of the following recommendation were given: In Promotional strategies

Sweepstakes, Cash-back promotions, Buy-five-free promotions shown Low for all items. as the three

strategies are not suitable for the service offered by the Rollerstar Company. To improve this

promotion strategy like contests can be great tools for engaging a local audience and be creative with
contests and offer prizes that the ideal customer would want. It pushes people to interact with your

company because they are anticipate fun and gain that chance to win and also promote multiply user-

generated content that gets customers more involved and makes your brand more memorable to

them and people who are there. The use of promotion strategy (free tutorials, free trials, discount

coupons) must be stepped up as customers have shown great interest and are heavily affected by

promotion strategy. It’s because customers are more prefer with free tutorials, trial and discount

coupons as it is fit with these service offered. To maintain these strategies, be consistent and

persistent and put a strong and sustained effort. Promotion strategy has short term effect, as a result

a company needs to do a continuous follow up to establish long term relationship with new customers

acquired during promotional period.

APPENDICES
 Appendix A
ADOPTED DURVEY QUESTIONNAIRE
 APPENDIX B

SURVEY QUESTIONNAIRE
 I. Demographic Data

1. What is your gender? 

Male    Female 
2. What`s your age? 

15 - 20     21 – 25       26 – 30 31 above
3. What`s your educational level?

High school     Senior high     College level

4. What`s your occupation?

Student      Employed   Unemployed

II. Promotional Strategies

Directions: Please mark ( ) and rate appropriate the promotional strategies that Rollerstar
Company should undertake.
Strongly agree = 5 Agree = 4 Neutral = 3 Disagree = 2 Strongly Disagree = 1
No. Statement 5 4 3 2 1

1. Brochures and mailings which show the discount

products.
2. Sweepstakes

3. Buy - five – free promotions

4. Discount Coupons

5. Price- off promotions

6. Membership promotions

7. Cash - back promotions

8. Free tutorials

9. Free trial ( 5 minutes)

III. Purchasing Decisions
Direction: Please Mark () and rate yourself honestly based on what you actually do giventhe
statements using the following scales:

Strongly Agree = 5 Agree = 4 Neutral = 3 Disagree = 2 Strongly Disagree = 1

No. Statement 5 4 3 2 1
1. Product promoters at Rollerstar have influenced
my purchase of a product.
2. I want to buy more than usual when there is a
promotion to win something.
3. I am more likely to buy two or three of a product if I
will receive a free gift.
4. I am more willing to buy two or three of a product if
I will receive a free gift
5. I am more likely to shop at Rollerstar if I have a
credit card for the store that will give me a
percentage of my purchase back.
6. I go to the Rollerstar more often when I know there
are promotions in which I am interested.
7. The board at the front of the store displaying the
weekly and daily promotions affects what I buy.
8. I am more inclined to buy a product when there is
a sweepstakes or contest I can enter.
9. I am more likely to purchase a product if there is a
“buy one get one free” promotion.
10. If there is a price off promotion, I will buy more of
the product to save for a later date.
11. If a price off promotion requires buying more than
one product, I still like to participate in the
promotion.
12 I am more likely to buy a product a product after I
try it at Rollerstar
13. I am more likely to buy a product after seeing a
demonstration of the product being used.
14. I often purchase products displayed near the
checkout counter.
15. I try to spend enough to get cash back coupons.

16 I am more likely to buy a product if I have a

coupon for it.
17. After buying a product on promotion, I usually buy
the product again after the promotion is over.
18. I am more likely to purchase a product if I can earn
extra rewards point for my membership program.
Thank You!
 APPENDIX C
SUMMARY OF THE SOCIO- DEMOGRAPHIC PROFILE
 Profile Frequency Percentage
(n=50) (%)
Gender
Male 20 40%
Female 30 60%
Total 50 100%
Profile Frequency Percentage
(n=50) (%)
Age
15-20 years old 11 22%
21-25 years old 13 26%
26-30 years old 6 12%
31 above 20 40%
Total 50 100%
Profile Frequency Percentage
(n=50) (%)
Education level
High School 8 16%
Senior high 6 12%
College level 36 72%
Total 50 100%
Profile Frequency Percentage
(n=50) (%)
Occupation
Student 14 28%
Employed 30 60%
Unemployed 6 12%
Total 50 100%
 APPENDIX D
SUMMARY OF THE INDICATORS OF THE LEVEL OF PROMOTION STRATEGY
 SUMMARY OF THE INDICATORS OF THE LEVEL OF PROMOTION STRATEGY
Promotion Strategy (SD) Mean Descriptive
Items
equivalent
Brochures and mailings which show 0.74 4.50 Very High Product pro
the discount influenced
Sweepstakes 1.01 3.80 High I want to bu
there is a p
something.
Buy- five-free promotions 0.90 4.34 Very High I am more
of a produc
Discount coupons 0.89 4.54 Very High gift.
I am more
of a produc
Price-off promotions 1.00 4.30 Very High I am more
if I have a c
Membership promotions 0.97 4.38 Very High that will giv
purchase b
Cash-back promotions 0.97 4.14 High
I go to the
Free tutorials 0.95 4.58 Very High when I kno
Free trial 0.97 4.53 Very High which I am
The board
Overall 0.93 4.35 Very High
Rollerstar d
daily promo
I am more
when there
contest I ca
I am more
product if t
free” promo
If there is a
buy more o
later date.
If a price o
buying mor
like to parti
I am more
product aft
I am more
after seein
product be
I often purc
near the ch
I try to spe
back coupo
I am more
have a cou
After buyin
I usually bu
the promot
I am more
product if I
point for my membership program.
Overall 0.96 4.08 High
APPENDIX E
 APPENDIX E
DOCUMENTATION