SOCIAL NETWORK MARKETING OF MICRO, SMALL AND MEDIUM-

ENTERPRISES IN THE PROVINCE OF TARLAC

WINSTON F. ABALOS
Tarlac State University
[email protected]

Presented at: SIBR 2019 (Osaka) Conference on Interdisciplinary

Business and Economics Research, 4th - 5th July 2019, Osaka, Japan.

ABSTRACT
The study aimed to determine the profile of Micro, Small, and Medium Enterprises
(MSMEs); the participation of owners and consumers in social networking site (SNS); its role in
representation, customer engagement, and lead conversion; and the challenges encountered by
owners in using SNS. A self-made questionnaire was administered to 268 randomly selected
MSME owners and 405 consumers. Results showed that the MSME owners in Tarlac sold items
like shirts and bags with an initial investment of P10, 001-P 50, 000, with most respondents
operating for 6 months to less than two years. Both consumers and owners prefer Facebook as
their SNS as they have been using it for one to three years. Significantly, both show agreement
with security concerns posed by the use of SNS. The consumers reported that they mainly visit
sites to inquire prices and to shop online while the owners used it to improve marketing. The
owners reported that they agree on its benefits on improving social media representation, customer
engagement and lead conversion. Despite these benefits, the MSME identified problems in their
use of SNS mostly, the amount of time needed in managing the pages and the risk of inappropriate
behavior such as harassment.

Keywords: Social Networking Sites, Micro, Small, and Medium Enterprises, Marketing

BACKGROUND OF THE STUDY

The rapid development of technology through the years has brought major changes and
advancement in the society. One of these great advancements includes the development of the
internet or the World Wide Web. With the connectivity brought by the internet, the world became
a global community bound by the instantaneous connections with different places in the world.
This caused better inclusion and diversity among people and cultures in the world. Moreover, the
most striking effect of globalization fueled by the internet is the development of marketing for
different businesses around the world. The emergence of a wider social platform enabled the
improvement of business marketing without the need for costly set-up costs and transaction costs.
With its intrusion into the business sphere, it is expected to become a powerful tool for any
businesses to increase their marketing capacity by reaching a potentially large number of
customers.

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 The rise of various social networking sites or SNS has achieved greater exposure and
influence among buyers or consumers. Social networking sites are websites intended for uploading
and downloading content meant for socialization or mingling with online or virtual friends
(http://www.bbc.co.uk/webwise/guides/about-social-networking). Among the countless examples
of SNS, Forbes cites Facebook as the most commonly used social networking site used by
Americans followed by Youtube, Snapchat, Twitter, and Instragram (Murnane 2018). In
comparison, Filipinos commonly use Facebook, Instagram, Twitter, and Snapchat as means to
socialize with people all over the world (Camus, 2018). One of the benefits of these sites is the
online membership that came indefinitely for the users who wish to be members of their chosen
community. Along with the option of free membership, a bigger and wider social platform grants
the users’ connection and exposure to the whole world, an advantage that common businesses
capitalized on in the current market (Bodnar and Cohen 2011). Compared with traditional
marketing that includes newspaper ads, radio broadcasts, and television, the rise of various social
networking sites has enabled wider, personalized, and relatively cheaper marketing cost for Micro,
Small, and Medium Enterprises or MSMEs.
There are many reasons that points out why a web-based life is considered an effective
marketing tool. These main reasons revolve around improving representation, customer
engagement, and lead conversion for the businesses that use social networking sites.
Representation refers to the branding and image of the business that is being promoted (Bodnar
and Cohen, 2011). In terms of this particular factor, social media marketing can be effective as
social media forwards better business representation as it showcases the business brand where it
offers another marketing channel, like business websites and email marketing, to name a few.
These develop brand awareness and relationship building among customers. Moreover, SNS
increases digital exposure. The utilization of different social network accounts boosts social media
presence to different potential consumers. Compared with the traditional marketing that rely on
expensive flyers, billboards, or TV ads, the reach given by different social networking sites is
much wider than the aforementioned marketing strategies.
Another important factor in marketing is customer engagement; a business process
commonly used to describe the interaction between business owners and consumers, which also
includes word of mouth and other forms of feedback that owners gain from their consumers. With
the connectivity brought by the internet, the business owners can develop a loyal community for
its consumers. Nowadays, customers want to be part of a business that is proactive in building
different online communities. That is fundamental to the long-haul accomplishment of a business.
The bridged gap between the distance of each customer to one another and the business owners
create better reception and communication regarding the products. By being part of an online
community that provides immediate and comprehensive feedback, business owners can now build
trust and loyalty among their consumers, thus increasing the business’ patronage and earnings.
Moreover, social media stands as a great source of information and enables its customers and
businesses to communicate freely and increases the business brand’s trustworthiness. Lead
conversion happens when an advertisement generates increased attention and inquiries from the
customers regarding a posted product. Social media can expand sales and audiences because
businesses can directly interact with its customers and their specific queries, which can in turn,
boost the sales and expand the business customer base. Social networking allows the business
owners to advertise their products not only to their target audiences, but also for consumers that
may be convinced or interested once they see the offered products or services.

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 With social media’s impact on representation, customer engagement, and lead conversion,
it is necessary to picture the current statistics related to technology usage in order. Presently, there
are 1.28 billion active users on Facebook alone, not so surprising as it is the world's most common
interpersonal interaction site to date. Twitter, Instagram, YouTube and various other social media
sites have hundreds of millions of active users as well (Chedda, 2014). Out of this data, the
Philippines is reported to be the leader in social media usage with internet users counting to as
many as 67 million in Facebook and 10 million in Instagram which is owned by Facebook with
statistics of 63% out of the total 105.7 million population of the country (Camus, 2018). This will
be a striking feature of a business environment that would be able not only to thrive on the social
media marketing but also to expand its reach overseas potentially. The Filipino citizen’s inclination
towards using the said social networking sites is a beneficial instance for businesses who has
started or planned to start their online marketing strategies.
Hence, the availability of the social media gave an opportunity to MSMEs or micro, small,
and medium enterprises. As an overview, MSMEs, or micro, small and medium-sized enterprises,
are considered as the backbone of the Philippine economy. As of the 2016 summary of the
Department of Trade and Industry, MSMEs occupy 99.57% (911, 768) of the 915,726 business
establishments in the Philippines that are registered in the Department of Trade and Industry (DTI).
Specifically, the percentage is broken down into 89.63% (820,795) microenterprises, 9.50%
(86,955) small enterprises, and 0.44% (4,018) medium enterprises. Only 0.43% (3,958) is made
up of large enterprises. These MSMEs include restaurants, canteen, groceries, stores, clinics,
schools or products centers, market vendors, repair shops, internet café, and much more. Earning
the majority of the country’s profit, MSME uses social media marketing to expand business
opportunities and engagement with customers and clients. Individually, they earn 3,000,000 pesos,
almost, annually. Since the MSME group occupies 99.6% of the economy, it contributes 95-98%
to the Philippines Gross National Product (GNP).
In line with the locale reports, a recent survey from the Department of Trade and Industry
of the MSMEs in the Province of Tarlac stated that there is a total of 6170 MSMEs registered as
of 2017. The data summarized states that January had 1286, February had 701, March had 545,
April had 435, May had 576, June had 467, July had 482, August had 501, September had 364,
October had 341, November had 262, December had 210. Of these, the month of January with
1286 registrants record the highest number of registrations.

RATIONALE
As 2018 unfolds, more and more small business units will take hold of social media to
market their products and services. Social media marketing will save time and money for the
meeting of the minds between customers, and businessmen as it will not require physical
interaction.
The continuous growth of MSMEs in the Philippines is a necessary event in the economy
as it forwards progress for the country as a whole. The increasing number of business in the
Philippines is projected to greatly add to the revenue of many Filipinos in the coming years. This
growth can be further catalyzed by the developments of technology, especially the presence of
social networking sites which increase representation of the business, customer engagement, and
lead conversion of advertisements—all of which are necessary to establishing a stable and

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successful business. The use of social media, marketing a brand to raise its popularity, word-of-
mouth, sales, and social support from consumers, will be some of the best focal points to create a
research study. Hence, the researcher will investigate the role of social network marketing in small
and medium-sized enterprises.
OBJECTIVES OF THE STUDY
With the said effects of various social networking sites and tools to MSMEs, the researcher
aimed to identify the social network marketing usage by MSMEs in the Province of Tarlac, a city
undergoing substantial business developments. This study aimed to identify the different
information on MSMEs, social media, and consumers in order to present a clear picture of the
MSME owners and their use of social media marketing, particularly:
1. to identify the business profile of MSMEs in terms of merchandise, initial investment,
and years in operation,
2. to determine the consumer and the MSMEs’ participation in social network sites such
as:
2.1. social network sites used;
2.2. log in on social network sites;
2.3. length of use in social network sites;
2.4. security and privacy concerns; and
2.5. purpose of using social networking sites.
3. to evaluate the role of social network sites to MSMEs in terms of:
3.1 representation,
3.2 customer engagement/networking; and
3.3 lead conversion.
4. to categorize challenges encountered by owners of MSMEs using social networking
sites.

Consequently, the researcher proposed an action plan that may be used by the MSME
owners to improve their social media marketing. The results of this study would be of value to the
MSME owners to increase their awareness of the issues and strategies that they may use to flourish
their business. Moreover, this may also benefit local government units in planning strategies to
help small firms and business progress.

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METHODOLOGY
This study utilized a descriptive cross-sectional survey using a structured questionnaire
developed by the researcher with the help of three experts in language and business management.
In this study, the researcher investigated on the role of social network marketing and on how it is
being utilized in the day to day operations among MSME’s on clothing and apparel stores in the
Province of Tarlac. In the same way, the researcher also aimed to determine the role of social
media marketing on the day to day life of consumers of the said businesses.
Respondents
The study utilized MSMEs as primary respondents. The sample frame provided by
Department of Trade and Industry (DTI) Tarlac included 886 MSMEs that focused on clothing
and apparel as of December 2017. These entities are the primary unit of analysis to be represented
by the either the owner or manager. The second set of respondents were consumers of this MSME’s
on clothing and apparel that uses social networking marketing to further understand the its role on
the said entities
Sampling Design
Out of 886 of these MSME’s in the DTI’s list, 268 of them were chosen as representative
through a convenience sampling while the researcher also performed a convenience sampling on
405 respondents from the consumer side. The required numbers to be sampled are based on the
following formula for infinite and finite population:

Z 2 ( p )(1 − p )
SS =
where, e2

SS=sample size for infinite population

Z=z value (e.g. 1.96 for 95% confidence interval)
P=percentage of population
e=margin of error; and

SS
NewSS =
SS − 1
(1 + )
Pop
where,
NewSS=sample size for finite population
Pop= population size

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 For a more efficient way in gathering the most optimum data from the owners using social
networking sites on their marketing, the researcher distributed the 268 questionnaires to the entire
Province of Tarlac using convenience sampling method due to non-participative population since
not all of them utilizes social networking sites as a marketing tool.
On the other hand, 405 consumer-respondents were conveniently taken with no specific
location since the researcher deemed that distance is no longer a consideration as along as internet
is available.
Instrumentation and Data Gathering
The questionnaire used for this study was made by the researcher since there is no available
instrument that can be adopted that is suited for the collection of the needed data. To further create
valid queries, the researcher sought the help of experts in language and business and marketing.
The items placed in the instrument were also based on the review of related literature and previous
studies especially those of Lofjiks (2017) which gave the bases for fields related to the
measurement of the role of MSMEs using social network sites in terms of representation, customer
engagement and lead conversion. Other significant concepts from other studies include those of
Palma, Arthelo (2016), Carma et al. (2017), Assimakopoulos (2017) and Sajjad Husain et al.
(2016) were also integrated.
The questionnaire for the owner-respondents is primarily divided into four major sections
as follows: (1) Business profile; (2) MSME’s Participation in Social Networking Sites; (3) Role
of Social networking sites in MSME’s which was subdivided into 3 parts which are representation,
customer engagement and lead conversion; (4) Problem encountered. Part 1, 2 and 4 were in
checklist form and part 3 included a 5-point Likert Scale as follows (1) Strongly disagree, (2)
Disagree, (3) Neither agree or disagree, (4) Agree, and (5) Strongly agree.
The questionnaire for the customer-respondents on the other hand contained only two
sections which were (1) Consumer Profile and (2) Consumer Participation in Social Networking
Sites. In order to achieve the required number of respondents for both owners and consumers,
direct distribution using printed copies to locations of MSME’s and potential consumers was
implemented. Online distribution through emails and social networking sites was also utilized to
speed up the data collection.

Validation of the Instrument

The instruments used in this study underwent content validity. Experts coming from several
areas looked into this aspect to obtain the best insight to determine its validity. These included a
professional marketing specialist, an owner-practitioner and an academician. The instruments were
considered valid with some suggestions which were considered and integrated for further
improvisation of the instrument.
A pilot study was also conducted on both questionnaires to further check its
understandability and acceptability on prospective respondents. 30 respondents each on both
MSME owners’ and customers’ feedback were considered for the appropriateness of each item in
the questionnaire to be included and its ability to measure the desired information.

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 Reliability of the questionnaire was also utilized to determine internal consistency on its
items containing Likert scales using Cronbach Alpha which resulted to a 0.837 reliability index.
Note that a reliability coefficient of .70 or higher is considered “acceptable” in most social science
research situations.
Statistical Treatment
For the analysis on the quantitative aspect of the study, the data was analyzed using the
following statistical tools:
1. Frequency and percentage were utilized on the parts of checklists and multiple response
part of the data collected which is mainly on the respondents’ and business profile and
consumer and SMSE’s participation and utilization of social networking sites.

2. Mean scores were determined for representation, customer engagement and lead
conversion, and a grand mean was also determined to indicate the overall response on a
particular aspect in the use of social networking site. The computed means were converted
to verbal descriptions using the following Limits of index:
Table 1
Limits of Index and Value

Limits of Index Equivalent Value Verbal Description

4.50-5.00 5 Strongly Agree

3.50-4.49 4 Agree

2.50-3.49 3 Neutral

1.50-2.49 2 Disagree

1.00-1.49 1 Strongly Disagree

All of these were processed using the software using SPSS (Statistical Package for Social
Sciences) for the assurance that all calculations are true and correct.

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RESULTS AND DISCUSSION
1. Business Profile of Micro, Small, and Medium Enterprises
1.1. Type of Merchandise
Among all of the products included in this data gathered, shirts and tops are the
most frequently bought items, implying that it has the greatest demand compared to the
rest. Its mean frequency is relatively higher compared to the rest of the other 10
observations. As shown in Table 2, polo shirts, bags, and pants come close with 57%, 55%,
52% frequency respectively. This particular result shows that the top results concentrate on
basic clothing more than the accessories.
Table 2
Type of Products in MSME Clothing Stores in the Province of Tarlac

Products Frequency Percent

Bags 228 85%
Footwear 150 56%
Jeans 148 55%
Office Uniforms 142 53%
Sports Uniforms 140 52%
Pants 124 46%
Polo Shirts 113 42%
School Uniforms 51 19%
Shirts and Tops 37 14%
Shorts 36 13%
Others: 3 1%

1.2. Amount of Initial Investment of MSMEs in the Province of Tarlac

Majority (45%) of MSME owners started on an initial investment of P10,001-
P50,000. Under this category of initial investment, it can be concluded that the MSMEs in
Tarlac belong under the Micro enterprises as determined by the Department of Trade and
Industry in their guidelines.

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 Table 3
Initial Investment of MSME owners in the Province of Tarlac

Initial Investment Frequency Percent

P 1000- P10,000 49 18.23%
P10,001-P50,000 131 48.8%
P50,001-P150,000 70 26.1%
P150,001-P400,000 16 5.9%
P400,000-P500,00 2 0.7%
Total 268 100%

The results as summarized in Table 3 above imply that small business owners always
start with a small initial investment, which may seem to be a very common practice, given
that most likely, these small business owners’ capitals are small savings or maybe even
small bank loans (Dua, 2017). The Department of Trade and Industry further supports this
in their government report by claiming that MSMEs do not have access to venture capital
funds. Furthermore, Mendoza (2015) cites that MSMEs thrive on the problem of starting
with a modest capital as compared with big multinational companies. This particular
practice is evident in the presence of sari-sari or retail stores in the country where the
owners would start with a minimum budget of P10,000 and then would start to develop
through the years.
Taking these numbers into account, the researcher can conclude that the respondents
from the MSME clothing establishments lean towards the middle ground of having an
initial investment that could start from P50,000 up to P100, 001.

1.3. Years of Operation

The length of operation of the selected MSMEs was also taken into consideration
as this would be necessary in establishing the credibility and the quality of each enterprise.
As Palma (2017) mentioned, the length of the MSME business owners would be a
necessary variable in determining the strength and progress of the advertising that they put
forward.

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 Table 4
Years in Operation of MSMEs

Years in Operation Frequency Percent

Less than 6 Months 49 18%
6 Months to less than 1 year 59 22%
1 year and 1 day to less than 2 years 83 31%
2 years and 1 day to less than 3 years 50 19%
3 years above 27 10%
Total 268 100%

Data in Table 4 shows that among all of the businesses considered within this study,
most of them (31%) have been operating for around 1 to less than 2 years, and 6 months to
less than year (22%) of operation, with which only 22% that have been operating for more
less than 6 months or half a year. This might imply that there has been a drastic increase of
operational small business in the province at a particular point in time a year or two ago.
Majority of MSME owners under this study operate their business at a span of 1 to
less than 2 years (31%) while others have been operating for 6 months to less than year
(23%) of operation, with which only 12% that have been operating for more less than 6
months or half a year (12%).

2. Consumers and the MSMEs’ participation in social network sites

2.1. Social Networking Site Used

Table 5 shows the three major social networking sites commonly used by Filipinos.
As seen in the table below, Facebook is one of the highly preferred and used social media
networks for the consumers as it gained 100% of responses. Similarly, 98% of the MSME
owners chose Facebook in the provided checklist. Instagram is the second option for both
the consumers and owners as it garnered 34% and 55% respectively in the provided
checklist. Finally, Twitter is the least used SNS for them.

Table 5
Commonly Used Social Networking Sites by MSME Owners and Consumers
SOCIAL MEDIA NETWORK OWNERS OF MSMES CONSUMERS
Frequency Percent Frequency Percent
FACEBOOK 268 100% 394 97%
INSTAGRAM 57 21% 109 27%
TWITTER 9 3% 209 52%
Others 0 0% 14 3%

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2.2. Log-in on SNS
This reveals the average amount of time that the MSME owners spend within their
login on a daily basis. This will be then compared with the amount of time that the
consumers spend on social networking sites within a day. The duration of time spent online
is a determining factor in this particular study because time spent online is necessary in
conducting digital transactions and advertisements.
Table 6
Log-in on SNS for MSME Owners and Consumers

Duration of Log Within the Day OWNERS OF MSMES CONSUMERS

Frequency Percent Frequency Percent
Always 68 25% 170 42%
Most of the time 159 59% 103 25%
Sometimes 30 11% 92 23%
Seldom 11 5% 6 2%
Logged at least once within the week 0 0% 34 8%
TOTAL 268 100% 405 100%

In terms of the time spent per log-in for the MSME owners, it is revealed that 75%
of them spend most of the time in visiting their social network page or accounts. In relation
with the owners, the consumers spend more time than the owners as 61% of them said that
they always log-in on their SNS on an average day. This goes to show that consumers spend
more time that the MSME owners. This is consistent with We Are Social’s Digital 2018
report which states that that Filipinos spent an average of 3 hours and 57 minutes daily on
social media sites, particularly on Facebook. Consequently, understanding these specific
statistics can be used as tool to help businesses create effective techniques in
communicating with their consumers (Whitings & Williams 2013).
2.3. Length of Use in Social Networking Sites
Ople (2017) states that posting business and sales on social media accounts requires
time and knowledgeable effort. In relation with the time that the consumers and MSME
owners spend in each visit daily, the third question aimed to gauge the length of time that
the respondents have been using their social networking accounts.

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 Table 7
MSME Owners and Consumers’ Length of Use in Social Networking Sites

Length of Use in Social Networking OWNERS OF MSMES CONSUMERS

Sites Frequency Percent Frequency Percent
Less than 1 month 3 1.1% 23 6%
1 month to less than 6 months 40 14.9% 9 2%
6months to less than 1 year 65 24.3% 16 4%
1 year and 1 day to less than 2 years 38 14.2% 34 8%
2 years and 1 day to less than 3 years 41 15.3% 28 7%
3 years and above 81 30.2% 295 73%
Total 268 100% 405 100%

As shown from the summary of data in Table 7, the MSME owners responded that
34% of them have been using SNS for three years and more, while consumers reported that
83% of them have been members in various social networking sites for three years and
more. Collectively, 53% of MSME owners are exposed to the usage of social media
networks for around one year to more than 3 years compared to the accumulated percent
of consumers (95%) who have experiences for around one year to more than 3 years.
Significantly, the results suggest that most of the MSME owners have less exposure
in social media sites, whereas a lot of consumers have spent more time using social media
sites. The results generated by these two sets of data shows a small difference on the
concentration of frequencies when it comes to the experience and length of time spent using
social media.
2.4. Security and Privacy Concerns of Respondents
Philippine E-Commerce (2017) states that there are certain hindrances that prevent
users of social networking sites from negotiating and transacting their business online. One
of the main reasons that they have cited is still the prevalent cases of hacking, identity theft,
and phishing.
These particular instances endanger the security of the individual. Once privacy is
violated, users tend to withdraw from future online transactions. Table 8 shows the
concerns and perceptions of both the consumers and the MSME owners about their
personal privacy and business security.

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 Table 8
Security and Privacy Concerns of MSME Owners and Consumers

STATEMENTS MSME Owners Consumers

Mean Description Mean Description
I am very much concerned with 4.45 Strongly Agree 4.38 Strongly Agree
account hacking and
impersonation in social
networking sites
I feel that I would be very 4.25 Strongly Agree 3.62 Agree
vulnerable from stalking and
harassment on my social network
account
There are social network users 3.93 Agree 3.65 Agree
who always blackmail other users
to compel them to turn over
passwords
There are other social network 3.70 Agree 3.99 Agree
users who just copy and repost
my advertisements for their own
benefits.
Sub Mean 4.08 Agree 3.91 Agree

Both MSME owners and consumers share the same concern of the violation of social
media privacy such as hacking and impersonation, stalking, harassment, blackmailing, and
plagiarism. In terms of their perceived level of concern for their security, the consumers
averaged a 3.91 mean which signifies that they strongly agree on the threats posed by their
online activities. On the other hand, the MSME owners scored a 4.08 mean which signifies
that they agree that they have certain privacy concerns for their interactions online.

2.5. Purpose of Social Media Engagement

This aimed to gather the consumers and sellers’ own purpose in using the said social
media accounts. The result for both was compared in order to align the interests and purposes
and consumers to see where they are similar and in terms of motivation in using social media.

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 Table 9

Purpose of MSME Owners in Using Social Networking Sites

Purpose of MSME Owners in Using SNS Frequency Ranking

Increase brand awareness & loyalty 224 1
Connect with Your Target Audience. 175 2
It improves networking opportunities with customers and 158 3
other businesses.
To participate on your business customer service. 145 4.5
Opportunity to conduct market research about your business. 145 4.5
To inform news to customers about what’s new about your 120 6
business.
Keep an eye on the competition. 116 7
To promote new gimmicks or deals according to the season of 114 8
the year.
Monitor conversations that are relevant to your brand. 113 9
To stay on top of industry news. 111 10
Others e.g. increase likers/followers, respond to inquiries 7 11
Total (n) = 1,428

Table 9 illustrates the main purpose of engagement that the MSME owners feel as
priority over other motivations. According to the results, the top three respectively are; 1)
to increase brand awareness and loyalty, 2) to connect with the target audience. and, 3) to
improve networking opportunities with customers and other businesses. Based from these
top 3 results, it can be inferred that the MSME owners maximize the use of social media in
increasing their target audience through more aggressive advertisements, strengthened
customer service with their convenient connection with their target audience. One MSME
owner who sell trendy shirts said: “it is easier post photos and share them on Facebook
(mas madaling mag-post ng pictures sa Facebook at mabilis ma-share)” while another one
who sells dresses, pants and cosmetics expressed the same saying: “I can quickly reply and
provide price points for my customers (yu’ng mga nag-iinquire mabilis ako
nakakapagreply, nabibigay ko ‘rin mga price points para sa kanila)” lastly, a boutique
owner said: “many customers visit our shops because they get updated with or new stocks
(marami’ng customers ang nakakita sa mga new stocks kaya dumadalaw sila sa shop)”.
These responses gave a general impression that the MSME owners see social
networking sites as a tool for them to increase their connection and advertising towards
their customers. Simply said, the MSME owners see the social networking sites as
opportunities to create new connections among their audience and to strengthen patronage
and loyalty among their long-standing customers. Significantly, the existence of social
media and internet-based connections allow the owners and consumers to contribute to
online discussions, reviews, conversations in communities and groups in the Philippines
(Camara, Lim, Natanuan, and Pascual 2017).

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 Table 10
Purpose of MSME Consumers in Using Social Networking Sites

Purpose of MSME Consumers in Using SNS Frequency Ranking

Shop online. 358 1
Visit many sellers for price canvassing. 259 2
Review other buyers’ comments about clothes / apparels 256 3
quality.
Place an order. 229 4
For online offers and discounts on clothes / apparels and 223 5
other services.
Inquire for the availability of the products and pricing. 219 6
Ask for clothes / apparels information. 213 7
Refer some of my friends to the trusted social network 189 8
seller/s.
Exchange views about the clothes / apparels and their seller 177 9
services.
Meet new social network buyers and get some referrals from 157 10
them.
Others e.g. socialize, add friends, share posts 19 11
Total (n) = 2,239

For Table 10, the consumers’ purpose in using the social media listed the top 3 as 1)
Shop online 2) visit many sellers for price canvassing, and 3) place an order. These top three
responses speak for the tasks that motivates the consumers in using social media. Ultimately,
the shoppers or consumers of the products chose “shopping online” as their priority aside from
socialization. This could mean that majority of the consumers come to the social platforms
with the goal of buying a product.
In addition to that, it can also be noted that the second top purpose is to visit many sellers
for price canvassing and the third one is to place an order, leans forward to the purpose of
observing and researching about the product that the consumers wanted to buy or to order
from different stores.
Whiting and Williams in a 2013 study cites the major purpose of the social media users
in visiting the site with mainly 88% of the respondents saying that they use it for social
purposes and for entertainment such as online games, music. With social media, browsing for
the best find in the market today is as easy as watching a commercial on TV., only this time,
it’s at the fingertips of the consumers.
The main purpose of the consumers in using social media platforms is the convenience
it offers, which entails that the social media engagement of the respondents is to shop online.
This view consumers’ engagement to social media as a necessary observation because it is a
good way to find out and even set the latest trends in the market, which can be taken advantage
of by the MSME owners to boost their sales.

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3. Role of MSMEs in Social Network Sites
This is to determine the utilization and the perceived level of benefits that the MSME
owners reap from the use of social networking sites in digital marketing. The data was divided into
three namely 1) Representation, 2) Customer Engagement, and 3) Lead Conversion. Each part was
composed of statements that the respondents need to rate in a five-point scale with Strongly
Disagree as the lowest and the Strongly Agree as the highest.
3.1. Social Media Representation
The MSME owners scored an overall mean of 4.11 which signifies that they agree
with the questions that asked whether they feel that social networking sites improved their
representation in terms of saving money, increasing target audience, improving site
professionalism, and editing of ads. Overall, the owners agreed on all the statements
except for the maximized advertising which gained a response saying that they strongly
agree with SNS’ benefits on the efficiency of using social networking sites in terms of
cost.
Table 11
Representation of MSME in Social Media Marketing

REPRESENTATION Mean Description

1. I can save more money in advertising by using 4.46 Strongly Agree

social network rather than traditional way.
2. I can easily reach larger amount of social media 4.13 Agree
users by easily increasing my target market.
3. My business looks professional by just marketing 3.92 Agree
my products on my different social network
accounts
4. It takes a few clicks to post my business. 4.17 Agree

5. I can edit any time my posted ads and also post 3.86 Agree
new ads for my business.
Sub Mean 4.11 Agree

3.2. Customer Engagement/Networking

Businesses use social networking sites in many ways to monitor conversations
about their product, provide feedback, customer service, promotions, and build
followers among others (Business.com, 2010).

16
 Table 12
Customer Engagement of MSMEs using Social Media

CUSTOMER ENGAGEMENT / NETWORKING Mean Description

1. My clients can easily contact me anytime they 4.41 Strongly Agree
want and can easily get customer’s feedback
about my business
2. I can easily target the right group of people for 4.12 Agree
my business by the increase of inquiries of my
posted my ads.
3. I can easily give additional information to those 4.20 Strongly Agree
who need more details and easily answer
inquiries.
4. My number of friends and followers can 3.99 Agree
increase immediately when they like my ads.
5. I can easily build trust on my brand faster by 4.10 Agree
seeing consumers who likes my business.
Sub Mean 4.16 Agree

Table 12 shows that the MSME owners generally agree with the statements that
characterize the benefits of social networking sites in engaging with consumers. With
a mean of 4.16, the MSME owners generally agreed on the benefits brought by social
media in terms of customer engagement/networking such as increasing response rate
or contact, targeting the right group of people, providing comprehensive answers to
inquiries, and building trust between consumers and owners.
As seen in Table 12, most responses are given to customer connection and
communication. Generally, the MSME owners show positive feedback with the
benefits of social media in establishing connections among their customers. In a recent
study by Parminder et. al (2015), the results suggest that press releases in websites
including social networking sites not only increase the publicity of the firm and the
brand, but it also increases online presence in third party websites which in turn
provides for better communication between consumer and the seller. This shows that
social media marketing with the convenience brought wireless connection yield
connections that are beneficial for both the consumers and the sellers. Since customers
are the most important aspect of any business big or small, customer feedback and
well-established communication between the MSME Owners and customers is a must.

17
3.3 Lead Conversion
Consumers in this particular study are all prospects, they are potential buyers
that may make decisions that will affect the revenue of the enterprise. Lead conversion
is the process of turning a lead into an opportunity/deal, as the process would aim to
convert prospects into customers (Bodnar & Cohen, 2011). This determined the
perceived level of conversion experienced by the owners of MSMEs in Tarlac.
Table 13
Lead Conversion of MSMEs using Social Media

LEAD CONVERSION Mean Description

1. My customers are willing to order to me directly. 4.44 Strongly Agree

2. I get more sales from social media than other 4.12 Agree
traditional ads
3. I earn better profit when I started to use social 3.69 Agree
media.
4. I got more visitors in my physical store after 3.65 Agree
using my different social network sites.
5. More and more customers are referring me to 3.80 Agree
their friends.
Sub Mean 3.94 Agree

Table 13 shows that in terms of lead conversion, the MSME owners generally
agreed with a mean of 3.94, that the use of social networking sites improved their rate
of lead conversion in terms of increasing the number of orders, earning more profit,
gaining more visitors and referrals for their business.
In terms of profit, the owners of MSMEs agree that they earned more profit once
they started using social media probably because the transactions became more
convenient and the consumers increased in number as brought about by social media.
As a one shop owner put it, “We have observed that even people from Angeles City likes
our posts and pictures (nakikita naming kahit mga taga-Angeles naglike ng posts and
pictures namin.)” Because of their increased social media and online presence, the
respondents generally agreed to the fourth and fifth statements saying that their accounts
made the number of visitors in their physical stores and customer referral increase
overtime.

18
 Table 14
Role of MSMEs in Social Network Sites

ROLE SUB MEAN DESCRIPTION

1. Representation 4.11 Strongly Agree
2. Customer 4.16 Strongly Agree
Engagement/Networking
3. Lead Conversion 3.94 Agree
Grand Mean 4.07 Strongly Agree

Table 14 above shows the summary of the role of MSMEs is in social networking
sites. This role is gauged through three factors namely: 1) representation, 2) customer
engagement/networking, and 3) lead conversion. The three factors’ averaged mean shows
that the owners strongly agreed that they have enhanced representation and customer
engagement or networking in their use of SNS. On the other hand, the MSME owners
agreed that they have increased lead conversion with their use of social media. Overall, the
MSME owners deemed that they strongly agree that they have improved role in terms of
representation, customer engagement, and lead conversion through their use of social
networking sites.
4. Problems Encountered by MSME Owners
There are challenges and hindrances that are encountered by business owners in every
venture. In this part of the study, the researcher opted to contextualize these problems to the
challenges that owners encounter in managing their social media accounts in marketing their
products.
Table 15
Problems Encountered by MSME Owners in Social Media Marketing

PROBLEMS ENCOUNTERED Frequency Ranking

Too much time required to maintain the page / ads. 220 1
Risk of inappropriate behaviour on social networking site, 141 2
including bullying and harassment.
It takes a lot of work to maintain my different accounts. 118 3
Not having a humanistic relationship with your audience. 101 4
Not actively managing social network presence, thus there are 70 5
no real benefits.
Lack of expertise to use social networking sites. 55 6
Plans to use social media/networking sites in the future. 52 7
My customers are not familiar with social networking sites. 50 8
Not aware of social networking sites. 44 9
I don’t think marketing on social networking sites work. 30 10
Social media/networking is not effective for the type of 34 11
business I run.

19
 The ranking of the problems commonly encountered by the MSME owners in Tarlac are
shown in Table 15. The top three in the list are: 1) Too much time required to maintain page/ads,
2) Risk of unwanted or inappropriate behavior in the social networking site, including bullying
and harassment, and 3) It takes a lot of work to maintain my different accounts. Primarily, the most
commonly encountered problems by the MSME Owners on the use of social media networks is
the demand for time of maintaining the businesses’ homepage for various updates on the
advertisement and product availability.
In support of that, the third common problem states that it takes a lot of work to maintain
the site, meaning, aside from time, they also find it much of a problem the idea of maintaining
different accounts as high costing, time-wise and energy-wise. MSME owners generally express
their common problem saying: “We need to check our phones and desktops in order to reply to
our customers quickly (kailangan palaging i-check yung phone namin or desktop para maka-sagot
kami agad sa inquiries)”, another added: “Customers do not usually reply when we do not reply
immediately to their inquiries (kapag hindi kami nakasagot agad, hindi na commonly nagrereply
yung iba),” another interviewee expressed his opinion on the effort SNS takes saying: “We need
to exert more effort in replying, posting, or commenting but it is worth it once we convince the
customers to buy the products (madaming kailangang reply-an, ipost, or i-comment back, pero
worth it naman kasi madami sa kanila bumibili once na makita nila yun products)”. Despite the
fact that using the social media in marketing is free, recent studies reveal that it requires time and
knowledgeable effort (Ople 2017). This goes to show that despite the benefits that being online
grants the business owners, they still need to sacrifice their time, and in business, time is a valuable
asset in itself, and some owners deem it necessary to sacrifice it in order for their earning to
improve.
The second most common problem that the respondents encounter is the risk of having any
negative encounter in the social networking site such as harassments, bullying and others that may
include fraud and phishing. Respondents of the study claims that they have heard of stories that
include cases of bullying and identify fraud, moreover, one respondent summed this up with his
response: “We have already experienced ‘fake accounts’ or ‘joy reservers’ who ask questions or
order but would not visit the shop (naka-experience na kami nung mga fake accounts na
nagtatanong, minsan mga ‘fake buyers’ or ‘joy reservers’ na magtatanong, magre-reserve pero
hindi naman dadating sa shop) ” when asked of harassment, the owner said that they have observed
nothing yet, but are generally wary of these situations because they have friends who have
experienced harassment and bullying in social networking sites. This goes to show that the
respondents feel a certain sense of liability of security in terms of the social networking sites that
they use, but nevertheless engage in the social networking sites. These particular issues are
revealed by a recent study as security breach examples that may destroy the reputation and the
earnings of the business. Moreover, the study suggests different ways to combat these problems
such as excluding and blocking harmful users in website, balancing freedom of speech and
censorship in Facebook (Leitch & Warren, 2009).
5. Action Plan to Address the Challenges encountered by MSME owners in Using Social
Networking Sites
The following action plan is conceptualized and written for the respondents of the study
namely the owners of Micro, Small, and Medium Enterprises in Tarlac. The objectives stemmed
from the identified issues and challenges from the fourth part survey. Moreover, the strategies and
activities include the steps in solving these particular issues as suggested by the different literature

20
in the previous chapters from Chaubey, Husain, & Ghufran’s 2016 study, Dua (2017), and Camara,
Lim, Natanuan, & Pascual (2017).

Action Plan to Address the Challenges encountered by MSME owners in Using

Social Networking Sites

PROBLEMS OBJEC- PROGRAMS STRATEGIES PERSONS MEASURE

AND TIVES /ACTIVITIES RESPONSIBLE OF
ISSUES SUCCESS

Too much 1. To Routine Log- a. To establish Business owner The

time required increase ins and Interval routine and or employees who achievement
to maintain time and Checking of interval logging in manage the page of this plan
the page/ads. work Notifications and checking of can be
efficiency notifications on measured
of the Facebook. In order through the
online to avoid lesser, but
page of inefficiency in productive
the logging in, the use of time
business page manager can and effort of
implement a time the page
Time- interval in managers in
Scheduling checking or managing
answering queries. their social
The page manager networking
can log in every accounts.
2. To
two or three hours
schedule a
to check page.
definite
time for
answering
queries b. If interval
and logging in cannot
interacting be done, then the
with page manager can
consumers schedule a definite
time for responses
for example, in the
afternoon. He or

21
 she can post this
detail on the page
3. To regarding his/her
provide scheduled
complete response time so
and interested
informa- consumers can ask
tive their queries
answers during that time.

c. In order to save
time and effort, the
page manager
should answer
each query with
direct and
complete details
for the consumer’s
satisfaction.

It takes a lot 1. To link a. To manage Business owner The

of work to all multiple pages, the or page manager achievement
maintain my accounts page manager of this plan
different for easier should install can be
accounts. manage- mobile measured
ment applications for through the
easier and lesser, but
convenient productive
checking. use of time
and effort of
the page
b. In order to save managers in
work, the page managing
manager can their social
integrate all the networking
applications and accounts.
link them with
each other through
a uniform email
address, page

22
 name, and page
contact number.

c. Providing links
that can direct the
consumers to the
main social
networking
account should
also be posted so
as the potential
buyers will not be
confused with
what site they will
visit or message.

Risk of 1. to Securing a. Maintain

inappropriate secure private minimal and
behaviour on online information by necessary
social transactio keeping it information in the
networking ns with private in page by revealing
site, including customers online only basic
bullying and accounts information such
harassment. as name of the
store, its location,
the active contact
number or public
number of the
store. It is
important that the
page manager
should not reveal
any personal
information that
people can use to
blackmail or
harass the seller of
the page.

23
b. Curate posts in
order to maintain
professionalism
and to edit out any
personal
information about
the owner of the
store or any
revealing personal
information that
the page manager
unintentionally
gave.

c. Keep track of
dummy accounts
and avoid
transactions with
unreliable-looking
consumers through
seeking out the
accounts and
quickly
investigating on
the veracity of
account through
pictures uploaded
and online
interactions.

d. Avoid bogus
buyers and block
rude users from
the website page.

24
Conclusion
Owners of Micro, Small, and Medium Enterprises in Tarlac City generally agreed that
social network marketing has greatly helped the development of their business. Although
challenges and problems such as privacy concerns, and time and resource management problems
brought by the use of these various social networking sites, the MSME owners still acknowledge
the benefits that the innovation has brought and is continuously working on improving their overall
performance.

25
 Appendix A
The Survey Questionnaire

QUESTIONNAIRE FOR CONSUMER

* Purpose of the Study: This study in social network marketing, conducted by Mr. Winston F.
Abalos of Tarlac State University, aims to analyze the participation of social network sites
utilization of the customers.

* Contact Information: If you have concerns or questions about this study, please contact Mr.
Winston F. Abalos at [email protected] or (+63) 927-755-0050

Name (Optional): ________________________________________________________

Address: ________________________________________________________________

Part I. Consumer’s Profile.

1. Sex.
_____ Male _____ Female

2. Year Born.
_____ 1940 to 1949 _____ 1970 to 1979
_____ 1950 to 1959 _____ 1980 to 1989
_____ 1960 to 1969 _____ 1990 to 1999

3. Highest Educational Attainment.

_____ No schooling completed _____ Elementary Graduate
_____ High school graduate _____ Bachelor’s degree
_____ Master’s degree _____ Doctorate degree
_____ Trade/technical/vocational training

4. Marital Status.

_____ Single _____ Married _____ Widowed _____ Separated

5. Employment Status.

26
 _____ Employed for wages _____ Self-employed
_____ Stay at home parent _____ Retired
_____ Student _____ Unable to work
_____ Out of work but not currently looking for work
_____ Out of work and looking for work

Part II. Consumer’s participation in social network sites utilization.

1. Which social network sites do you explore? (Select as many as applicable)
_____ Facebook _____ Instagram _____ Twitter
_____ Others: Pls. Specify: _________________

2. How would you describe your log in duration on social network sites within the day?
(Pls. encircle the number of your choice)
0 1 2 3 4 5 6 7 8 9 10

Never Sometimes Always

Connected Connected Connected
If not applicable please check:
______ Once a week ______ Once a month ______ Once a year

3. For how long have you been using social media sites?
_____ Less than 1 month _____ 1 – 6 months
_____ 6 months – 1 year _____ 1 – 2 years
_____ 2 – 3 years _____ More than 3 years

4. Do you experience concern regarding the security and privacy of your personal
information?
5 4 3 2 1
Items Strongly Agree Neutral Disagree Strongly
Agree Disagree

I am concerned with account

hacking and impersonation in social
networking sites (phishing or
spamming).

27
I feel that I would be exposed to
stalking and harassment on my
social network account.

There are social network users who

always blackmail other users to
force them to turn over passwords.

There are other social network

users who just copy and repost
advertisements of official
businesses for their own benefits
for scamming and other illegal
online activities.

2. What is your purpose in using social network sites? (select as many as applicable)
_____ I use social network sites to shop online.
_____ I use social network sites to review other buyers’ comments about the clothes / apparels
quality.
_____ I use social network sites to exchange views about the clothes / apparels and their seller’s
services.
_____ I use social network sites for online offers and discounts on clothes / apparels and other
services.
_____ I use social network sites to inquire for the availability of the products and the
pricing.
_____ I use social network sites to ask for clothes / apparels’ information.
_____ I use social network sites to visit many sellers for price canvassing.
_____ I use social network sites to place an order.
_____ I use social network sites to meet new social network buyers and get recommendations
from them.
_____ I use social network sites to refer some of my friends to the trusted social network
seller/s.
_____ Others; Pls. Specify: __________________________________

28
 QUESTIONNAIRE FOR MSME OWNER

* Purpose of the Study: This is a study in social network marketing that is being conducted by
Mr. Winston F. Abalos, at Tarlac State University. The purpose of this study the utilization of
social network marketing practices of MSMEs in the Province of Tarlac

* Contact Information: If you have concerns or questions about this study, please contact Mr.
Winston F. Abalos at [email protected] or (+63) 927-755-0050

Business Name (Optional): ________________________________________________

Address: ________________________________________________________________

Part I. Business Profile of MSMEs.

1. Please indicate the type of your product/s. (Select as many as applicable)
_____ Shirts and Tops _____ Pants
_____ Polo Shirts _____ Jeans
_____ Sports Uniforms _____ Office Uniforms
_____ School Uniforms _____ Shorts
_____ Footwear (shoes and sandals) _____ Bags
_____ Others: Pls. Specify: ___________________

2. Please indicate the initial investment done in the business.

_____ Php 1,000 – Php 10,000
_____ Php 10,001 – Php 50,000
_____ Php 50,001 – Php 150,000
_____ Php 150,001 – Php 400,000
_____ Php 400,001 – Php 500,000
_____ Php 501,000 Up

3. Years in Operation.
_____ less than 6 months
_____ 7 months - 1 year

29
 _____ 1 year and 1 day - 2 years
_____ 2 and 1 day years - 3 years
_____ more than 3 years and 1 day

Part II. MSMEs participation in social network sites utilization.

1. What social networking sites do you use for marketing/promoting your merchandise?
(Select as many as applicable)
_____ Facebook
_____ Instagram
_____ Twitter
_____ Others: Pls. Specify: ___________________

5. How would you describe your log in duration on social network sites within the day?
(Pls. encircle the number of your choice)

0 1 2 3 4 5 6 7 8 9 10

Never Sometimes Always

Connected Connected Connected
If not applicable, please check:
______ Once a week ______ Once a month ______ Once a year

6. For how long have you been using social media sites?
_____ Less than 1 month _____ 1 – 6 months
_____ 6 months – 1 year _____ 1 – 2 years
_____ 2 – 3 years _____ More than 3 years

7. Do you experience concern regarding the security and privacy of your personal
information?

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

I am concerned with account

hacking and impersonation in
social networking sites (phishing
or spamming).

30
 I feel that I would be exposed to
stalking and harassment on my
social network account.

There are social network users

who always blackmail other users
to force them to turn over
passwords.

There are other social network

users who just copy and repost my
advertisements for their own
benefit.

8. What is the purpose of your social network site engagement? (Select as many as
applicable)

_____ To increase brand awareness & loyalty.

_____ To gather information about target customers.
_____ To participate on your business customer service.
_____ To connect with your target audience.
_____ To advertise product.
_____ To spread news to consumers about what’s new in your business.
_____ To promote new gimmicks or deals according to the season of the year.
_____ To observe conversations that are connected to your brand.
_____ To learn more about your customers.
_____ To keep an eye on the competition.
_____ To stay on top of industry news.
_____ To improve networking opportunities with customers and other businesses.
_____ Others: Pls. Specify ______________

Part III. Performance of MSMEs using social network sites

Direction: The items on the performance of MSMEs using social network sites. Please show
your rating by putting a check mark on the number.

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

REPRESENTATION

31
I can save more money in
advertising by using social network
rather than traditional way.
I can easily reach larger amount of
social media users by increasing my
target market.
My business looks professional by
just marketing my products on
different social network accounts.
It takes a few clicks to post my
business.
I can edit my posted ads anytime
and also post new ads for my
business.
5 4 3 2 1
CUSTOMER ENGAGEMENT / Strongly Agree Neutral Disagree Strongly
NETWORKING Agree Disagree

My clients can easily contact me

anytime they want and I can easily
get customer’s feedback about my
business.
I can easily target the right group of
people for my business by the
increase of inquiries of my posted
my ads.
I can easily give additional
information to those who inquire
for details.
My number of friends and
followers can increase immediately
when they like my ads.
I can easily build trust on my brand
faster by seeing consumers who
likes my business.
5 4 3 2 1
LEAD CONVERSION Strongly Agree Neutral Disagree Strongly
Agree Disagree

My customers are willing to order

to me directly.
I get more sales from social media
than other traditional ads.
I earn better profit when I started to
use social media.
I got more visitors in my physical
store after using my different social
network sites.

32
 More and more customers are
referring me to their friends.

Part IV. Challenges encountered by owners of MSMEs.

1. What challenges do you encounter in using social network sites? (Select as many as
possible)
_____ Not aware of social networking sites.
_____ It takes a lot of work to maintain my different accounts.
_____ Not actively managing social network presence, thus there is no real benefits.
_____ Too much time required to maintain the page/ads.
_____ I don't think marketing on social networking sites work.
_____ Lack of expertise to use social networking sites.
_____ Plans to use social media/networking sites in the future.
_____ Social media/networking is not effective for the type of business I run.
_____ My customers are not familiar with social networking sites.
_____ Not having a humanistic relationship with your audience.
_____ Risk of inappropriate behaviour on social networking site, including bullying and
harassment.
_____ Others: Pls. Specify: ______________________

33
 Appendix B
Letter of Request for DTI’s List of
MSME Owners Clothing and Apparel

34
 Appendix C
Cronbach’s Alpha and Reliability Statistics
Survey Questionnaire
[DataSet4]

Scale: ALL VARIABLES

Case Processing Summary
N %
Cases Valid 30 100.0
Excludeda 0 .0
Total 30 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.837 15

Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
VAR00001 56.5000 32.328 .164 .841
VAR00002 57.0000 28.621 .581 .820
VAR00003 57.2333 28.599 .592 .820
VAR00004 57.1000 28.783 .565 .822
VAR00005 57.3000 30.217 .370 .833
VAR00006 56.6667 29.540 .576 .823
VAR00007 57.0000 29.448 .426 .830
VAR00008 56.9333 30.271 .364 .833
VAR00009 57.3333 28.644 .578 .821
VAR00010 57.1667 28.489 .482 .827
VAR00011 56.5333 31.154 .321 .835
VAR00012 57.3000 29.528 .428 .830
VAR00013 57.3333 27.126 .692 .812
VAR00014 57.5667 29.151 .446 .829
VAR00015 57.3667 30.309 .306 .838

35
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