POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

INFLUENCE OF SERVICE PERFORMANCE TOWARDS

A Thesis
Presented to the Faculty of
Polytechnic University of the Philippines
San Pedro Campus

In Partial Fulfillment of the Requirements for the Degree

By
CONCHA, GEROME
GODILON, HANNAH PAULA
JAMANGAL, HANNAH JANE
MALAPIT, MARY JOY
MULINGTAPANG, ANGELICA
PANGANIBAN, PATRICIA
QUIATCHON, LIEROM
ZULUETA, JEAN ROSE

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Chapter 1

I. Company Name

Jollibee Foods Corporation

II. Mission

To spread the joy of the family by serving superior tasting food.

III. Vision

To be the dominant Number 1 in branded eat-out in the Philippines

IV. Core Values

 Customer Focus

 Excellence

 Respect for the individual

 Teamwork

 Spirit of family and fun

 Humility to listen and learn

 Honesty and integrity

 Frugality

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Chapter 2

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Chapter 4

THE PROBLEM AND ITS BACKGROUND

Introduction

Jollibee Food Corporation also called JFC which is also known as

Jollibee is a Filipino multinational chain of fast foods restaurant based in

Pasig, Philippines which is owned by Jollibee Food Corporation. JFC has

grown different brands that bring enjoyable dining experiences to its

customers not only in the Philippines but also in other countries, coinciding

with its company mission which is serving delicious food and spreading the

joy of eating to everyone.

The service performance is very important in terms of customer buying

decision. The quality of service provided by the crew determined the way

customers treat them to. It explains that those who are successful in

customer service rank their customers as top priority.

Pleasant attitude and personality must be needed in communicating to

customers, if a crew shows unpleasant personality it really affect the

consumer decisions of a customer.

People nowadays prefer eating in fast food restaurant. Kids, teenagers,

parents, grandparents patronize fast food chains that offers affordable food

that will satisfy them. customer have a different perspective in choosing

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fast food chains than any other restaurant, some customer are in favor with

it because it helps them to be more practical aside from it satisfy their

cravings.

In buying decision and buying behavior of customer, Price affordability

and Service performance has a big effect, it is a matter of satisfying a

costumer personally. Price affordability is important for the company

because through that, they will know if the costumer agrees with the price

of the product and service performance or personality has a big impact in a

buying decision and behavior of customer, they must treat them well and

be approachable, to connect, to communicate and to build relationship

towards to the customer.

As for this study the proponents came up to this topic to show the

comparison of service performance which affects the buying decision of

customers between Jollibee in El Vinda, San Pedro, Laguna and Carmona,

Cavite.

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Background of the study

The study is concerned in identifying what are the factors that affect the

consumer buying decisions what are the main problem when it comes to

service performance of the crew in Jollibee San Elvinda and Jollibee

Carmona, comparing the different buying behaviors of Filipino consumers

and the marketing practices adopted by the selected fast food company.

The fast food industry is a sub-sector of the larger restaurant industry.

There are 15,000 fast food restaurants operating in Metro Manila. The most

common tools adopted by the fast food companies in the Philippines are

window displays, free delivery, radio and TV advertising, and billboard

advertising.

The success of the fast food industry in the Philippines can be attributed

to the factors of standardized procedures, limited menus, placing emphasis

on value, speed and efficient service and franchising. The fast food

industry has changed the urban lifestyle because it developed well in cities

but fast food companies are reluctant to develop a market in the suburbs.

That is, the fast food market in the Philippines still has room for expansion

to those who want to invest.

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Theoretical Framework

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Conceptual Framework

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Statement of the Problem

In order to identify the influence of service performance towards

customer patronage between Jollibee Elvinda and Jollibee Carmona, the

researchers will use the queries to guide the research.

1. What is the demographic profile of the respondents in terms of the

following :

1.1 Age

1.2 Gender

1.3 Socio-Economic Status

2. What are the influences of service performance towards customer

patronage in terms of the following variables :

2.1 Attitude

2.2 Ambiance

2.3 Location

2.4 Cleanliness and Sanitation

3. What are the factors of service performance that can affect the buying

decision of every customer?

3.1 Service Quality

3.1.1 Reliability

3.1.2 Assurance

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3.1.3 Tangibles

3.1.4 Empathy

3.1.5 Responsiveness

4. Is there any significant influence on Jollibee Elvinda’s service

performance to customer patronage as perceived by the respondents?

5. Is there any significant influence on Jollibee Carmona’s service

performance to customer patronage as perceived by the respondents?

6. Is there any comparative differences on the influence of service

performance to customer patronage between Branch A and Branch B as

perceived by the respondents when grouped according to profile?

Hypotheses

There is a significant difference to the buying behavior of the customer

in Jollibee Elvinda and Jollibee Carmona towards to the service

performance.

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Scope and Limitations

This study aims to discern if service performance can really affect the

buying decision of the customers of Jollibee Elvinda San Pedro, Laguna

and Jollibee Carmona GMA Cavite. The study was limited only for 100

customers of the said branches. The study was conducted last August until

September 2019.

Significance of the study

The result of the study will benefit the following:

Students. This study will be a great help for them to realize the

importance of service performance of a company to the customer

patronage and to make known the solution to some sort of problems.

Company. This study will oversee the techniques and guidelines to

achieve more off what a company organizes, to improve what should be

improved and to be ready to face some issues that may come on their time

of service.

Future researchers. The results of this study will be beneficial to the

future researchers who wants to widen the topic more and to give

additional information about the service performance of Jollibee Foods

Corporation that affects the loyalty of a consumer.

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Chapter 5

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter provides an overview of the literature that informs the

research and that has implications for the findings.

Local Literature

Fast food establishment or Quick Service Restaurant consist of diverse

operation facilities who’s slogan is "Quick Food". Customer wait in the line

for access to a counter at which they order food from a very limited menu

such as hamburger, fries, hotdogs, chicken, spaghetti and other items

(Cariño , Beltran and De Ocampo2008)

Foreign Studies

According to Hogan and Busch (1984), service orientation can be

defined as “a set of attitudes and behaviors affecting the quality of

interaction between an organization’s employees and its customers.” In

other words, it is the disposition used when providing service to the

consumers. Liao and Chuang (2004) found empirical support for a positive

relationship between service orientation (e.g., service environment) and

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frontline employee service performance. Furthermore, Alge, Gresham,

Heneman, Fox, and McMaster (2002) indicated that customer service

oriented employees are a key factor of customer service. Service

organizations that emphasize service culture or service orientation can

enhance employees’ service behavior.

According to Kotler (2000), the idealistic state exists when there are

positive relationships between the service organization-service provider,

service organization-consumer, and service provider-consumer. It

represents a balanced triad and the optimal state in which the consumer

has no need cognitively to distort, reevaluate, or behaviorally withdraw from

the situation. When an organization maintains positive relationships with

both the provider and the consumer, several desirable outcomes are likely.

Employees will experience increased levels of motivation, satisfaction, and

commitment and decreased levels of intent to withdraw from the

organization (De Man, Gemmel, Vlerick, Rijk, and Dierckx, 2002).

According to Castro, Armario, and Del Río, (2005), there will be a

reduction in the gap between consumer expectations and actual service

quality, and consumers will be more loyal and will have higher repurchase

intentions, as compared to when positive relations do not exist among all

three parties.

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As a result, market orientation theory (Castro et al., 2005, Day 1994;

Jaworski and Kohli 1993; Slater and Narver 1994; Wright, Pearce, and

Busbin, 1997) indicates that firms with superior service strategy or

facilitation should have superior customer knowledge, excellent service

performance and should be able to develop offerings that better satisfy the

needs and wants of target customers.

Marketing literature indicates that an employees’ service performance (e.g.,

good interpersonal skills; employees’ credibility) positively impacts

customer satisfaction and loyalty (Alge et al., 2002; Hansen, Sandvik, and

Selnes, 2003).

According to Bowen and Schneider (1988) noted three defining

characteristics of service: intangibility, simultaneous production and

consumption, and customer co-production. Customer experience thus is an

important factor. Extant research (e.g., Castro et al., 2005; Hwang and Chi,

2005) suggests there are certain components of the service delivery

process for which the consumer holds the provider responsible.

Specifically, the consumer expects the provider to be reliable, responsive,

competent, courteous, credible, and understanding.

According to Zeithaml, Berry, and Parasuraman (1996), loyal customers

forge bonds with the company and behave differently from disloyal

customers. In this assumption, we can expect customer loyalty to impact

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behavioral outcomes and, finally, the profitability of a company. Srinivasan,

Anderson, and Ponnavolu (2002) indicated that customers with higher

loyalty can enhance the opportunity to provide positive word-of-mouth or

willingness to pay more.

According to Dick, Basu (1994), Hagel, and Amstrong (1997) noted that

loyal customers are more likely to promote a company with a positive

perspective. Thus we may subsequently recognize that the loyalty of

customers will positively relate to their word-of-mouth behavior.

According to Liao (2004) the findings they presented in this study have

important implications for employees from a solid service environment who

receive management support to provide better customer service. At the

same time, an employees’ service performance does have a positive

impact on consumer loyalty. Further, consumer loyalty having a positive

impact on positive word-of-mouth was confirmed.

Service orientation, however, has negative influences on consumer

loyalty. According to the balance theory (Carson, Carson, and Roe, 1997),

this situation is possible. This theory proposes three factors which shape

relationships for parties in the triad: sentiment (liking and disliking), attitude

(sharing of similar values and opinions about other persons or entities), and

unit relation (conditions under which entities belong together, such as

ownership). The idealistic state exists when there are positive relationships

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between the service organization-service provider, service organization-

consumer, and service provider-consumer. The service provider (e.g.,

frontline employee) and the service organization are not always equated in

the minds of the consumer (Carson et al., 1997). Thus, a relationship

system is called balanced if the two persons have the same attitude toward

an object; in an unbalanced, which is stated the two individual directions in

the attitudes toward the object. Therefore, when a consumer becomes loyal

to a service provider, the consumer may be willing to tolerate

organizational inefficiencies as long as the provider remains employed by

the enterprise.

According to Rong-Da Liang (2010), from a managerial perspective,

employees’ service performance can establish consumer loyalty based on

providing an excellent service environment. The service orientation,

however, has a negative influence on consumer loyalty, which means that

triad are in an unbalanced situation. Management needs to take

appropriate remedial action to change this situation to improve the

relationship between service organization and consumers. Moreover,

service orientation may negatively influence consumer loyalty needs to be

further tested and studied through different types of hypotheses.

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