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An Undergraduate Thesis
Presented to the
Faculty of the School of Business and Economics
University of San Carlos
Cebu City, Philippines
In Partial Fulfilment
Of the Requirements for the Degree
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
MAJOR IN MARKETING MANAGEMENT
By
DONALDO, CHRISTIAN PAUL
LLANTO, BELINDA
VILLACERAN, MARIBETH
March 2016
APPROVAL SHEET
1
Accepted and approved in partial fulfilment of the requirement for the degree of
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION MAJOR IN
MARKETING MANAGEMENT.
JOYCE NATALIE U. YANG, MBEcon
Chair of Business Administration Department
ACKNOWLEDGEMENT
2
The researchers would like to thank Mrs. Ninette Nicetas who from day one has
been very supportive of this activity and understood the needs of the study and as well as
the researchers. The researchers would also like to thank the customers of Lavada Queen
Laundry Shop who were of utmost significance in this study for without their cooperation
the completion of this study wouldnt be possible.
The researchers would like to thank and acknowledge Roberto Visitacion, DBA
who served as the researchers adviser during this research study and Joyce Natalie Yang,
MBEcon who has also been of great assistance to the researchers in the absence of the
aforementioned.
The researchers also would like to express a deepest appreciation to the panelists
members and chair, Ana Liza Tan, DBA, Ma. Angelita Ramona L. Valles, EXMBA and
Pepito Echavez, PH D-TM who examined this study and without their guidance this
thesis would not have been possible.
Lastly, to the families of the researchers who have always been present and have
shown full support in every educational endeavor encountered and aided assistance when
obstacles were occurred. Most importantly the researchers would like to praise and are
forever grateful to the Lord Almighty for giving them the strength and guidance needed
and for being the unseen and unnoticed group member who assisted in the completion of
this study.
ABSTRACT
3
Lavada Queen Laundry shop have high overall service quality expectations and expect
responsive and reliable service. Each customer has high overall service quality
expectations and expects empathy and assurance from the service provider. Lavada
Queen Laundry shop has a lot to improve in terms of their facilities, staffs, service
quality, location and other factors that affected the expected service quality of each
customer with the use of 7Ps of the marketing mix decision. Other negativity exists as
the results also presented in the presentation, analysis and interpretation of data and as
conclusion. The benefits of this study would be gained by the company to improve the
service quality.
TABLE OF CONTENTS
Page
5
COVER PAGE
APPROVAL SHEET
ii
ACKNOWLEDGEMENT
iii
ABSTRACT
iv
TABLE OF CONTENTS
vi
LIST OF TABLES
viii
LIST OF FIGURES
ix
Chapter
1
INTRODUCTION
Rationale of the Study
THE PROBLEM
1
3
DEFINITION OF TERMS
THEORETICAL BACKGROUND
Theoretical Framework
32
Conceptual Framework
33
RESEARCH METHODOLOGY
35
Research Environment
35
Research Respondents
36
Research Instruments
38
Research Procedures
6
Gathering of Data
39
Treatment of Data
39
42
42
Company Profile
50
Service Offered
50
51
54
Proposed Recommendations
61
68
Findings
70
Conclusion
76
Recommendation
77
BIBLIOGRAPHY
79
APPENDICES
A
Transmittal Letter
82
Research Instrument
83
Timetable of Activities
91
D
Program Budget
CURRICULUM VITAE
92
93
7
LIST OF TABLES
Table
Title
Page
42
43
44
44
45
46
47
47
48
10
49
11
49
12
50
13
Tangibility Dimension
54
14
Reliability Dimension
54
15
Reliability Dimension
56
16
Assurance Dimension
57
17
Empathy Dimension
59
60
18
LIST OF FIGURES
Figure
Description
Page
32
Conceptual Framework
33
35
Chapter 1
INTRODUCTION
Rationale of the Study
Laundry Shops nowadays are frequented by many individuals due to the increase
of work or study loads of the customers. It is much simpler and less time consuming to go
to a laundry shop then to wash their laundries themselves.
It allows individuals to focus on important task such as Studying or working, it
also allows the individual to relax a bit. Customers would most often be students and or
the working class and sometimes the older or retired individuals. At one point there were
some problems to their customer service techniques. There were arguments between
customers and the employees on the cost and improper handling of their laundry.
The purpose of this research is to assist future marketing researchers in studying
the different marketing strategies being used by businessmen in the laundry shop, and to
learn the current problems being faced by the laundry business namely the different
issues that customers usually complain about, such as customer services and the products.
These problems will be discussed later on within this research thesis.
It is a highly profitable laundry shop, this is due to the distance between the
laundry shop and its customers, and another is that they have multiple branches in
different areas of Cebu. Namely: F. Sotto Drive, Cebu City 6000, Philippines (Main
Branch), Ayala Center Branch Basement.
Starting a laundry business requires some knowledge of this industry and
attending a laundry business seminar is a good start. The Business is an effective business
that can gain more money because this business is an affordable business. It is important
to consider aspects like how it is able to operate in the market, how it differs from other
laundry shops inside the subdivision and how long it stays in spite of the competition.
This study signifies the relevance to build this simple yet suitable business that
we can normally afford in each individual. Its an advantage to manage this business due
to its simplicity and to the growing need of necessary laundry services. Laundry shop
business in the Philippines is a type of business which accepts service for washing,
pressing, and dry cleaning of clothes and other household items. Laundry business
nowadays are an easy and convenient business to start and is one of the simplest
businesses that you can think of since it doesnt require a lot of skill to operate and
manage. A simple individual can be one of your staff and anyone can manage this
business because it is not too complicated. Because it is a simple business it is highly
profitable, so if you are looking for a simple business that you can start easily whenever
you want, then laundry business is the one for you. It is not capital or management
intensive. You can start this business anywhere and grow from there. It is a very lucrative
business, as not everyone that puts on clothes has the time to do the laundry.
THE PROBLEM
Statement of the Problem
3
This study aims to assess the service quality of Lavada Queen Laundry shop in
order to improve its services. Specifically, to address the following research objectives:
1. Identify the profile of the target market in terms of:
1.1 Demographics
1.1.1 Age
1.1.2 Gender
1.1.3 Civil Status
1.1.4 Occupation
1.1.5 Income
1.1.6 Educational attainment
1.2 Psychographic
1.2.1 Lifestyle
1.2.2 Social class
1.3 Behavioral
1.3.1
Buying behavior
4. What are the service quality perceptions of their customers in terms with the
five dimensions?
3.1 Tangibility
3.5 Reliability
3.2 Responsiveness
4
3.3 Assurance
3.4 Empathy
5. What are the recommendations of the researchers that can improve the
service quality of Lavada Queen Laundry shop?
laundry shops can also make use of the marketing strategies that will be recommended by
the researchers.
Future researchers future researchers can benefit from this study by using this as
reference for their thesis. Future researchers can also apply the data gathered from this
study.
DEFINITION OF TERMS
Chapter 2
THEORETICAL BACKGROUND
Review on Related Literature
Nowadays Individuals are usually too occupied in focusing on work, study or
almost any other task. Sometimes or almost all of the time individuals really have no time
for household chores because they are most likely tired after working and they just want a
rest for their remaining hour. Washing clothes is one of the hardest things to do inside our
homes today. Even with technological advancements such as washing machines and
dryers and etc. This is a common statement for almost all individuals nowadays, many
would try to avoid the need to wash their own laundry, they would rather have others do
it for them, and it is a strenuous and time consuming activity even with the aid of modern
equipment.
8
With time being the most valuable resource in this world, individuals no longer
have the time to wash their own laundry. Thats why nowadays people would simple pay
somebody else to do the laundry work for them (Golden Fiber Chem Solutions Co.2011).
There are over 36,000 commercial dry-cleaning shops in the United States. Most
of these shops are just small businesses with less than ten employees. And the industry is
estimated to an $8 billion annual opportunity (Samuel Madden.2014).
The automated home laundry is a great boon to comfort and happiness. Laundry
Shop Business consultants provide management in consulting to help Laundry Shop
Businesses improve performance, customer satisfactions and efficiency. A Laundry Shop
Business owner does not worry about the need to construct a Laundry Shop Business
Plan thus it needs to have the importance of a profit and is somebody who has an optimist
mind to move forward to have a successful business (Cheryl Mendelson. 2006).
Everyone has clutter in their home - old magazines, clothes that don't fit, kitchen
utensils never used thus laundry shop is one of an effective business that youll start. To
make the business success, put the strategies more effective and wise. Your Laundry
Shop Business sets out in some details on how you will control and give importance your
company, and should incorporate everything and observe carefully of what will you do
from how you will be promoting your goods and services, through how you intend and
manage the finance purposes on your venture and who your likely buyers will be, and
lastly your business will reach and then sell to them (Dawna Walter. 2012).
In a market study of a laundry business by Laundry Business industry in
Philippine. It stated that there is a lot of potential market for a laundry shop. Some of the
major sectors in which a laundry shop owner can consider a big market are students,
9
Service
10
the
time
of sale
which
increases value to
service
and
make
Service Quality
This concept is commonly used as it would help to describe, explain, anticipate
and resolve some issues to the different degrees of commitment or of the withdrawal on
behalf of the owner and / or clients. (Ghylin et al., (2008, p.76) pointed out that, through
defining service quality, business would be able to deliver a higher quality of services
that would increase customer satisfaction.
11
service
standard.
Gap
is
the
gap
among
service
delivery
and
13
14
Jones &Suh, (2000) believes that the overall satisfaction can be based either on a
few service encounters or many service encounters. After updating each transactionspecific encounter the consumer has with the organization it was observed that there may
not a correlation between transaction-specific satisfaction and overall satisfaction as
service quality vary from encounter to encounter; which caused fluctuations in
transaction-specific satisfaction levels (Jones &Suh, 2000) .
The five dimensions used in SERVQUAL model include:
Tangibility- The physical facilities, equipment, appearance of personnel and
communication materials or physical representations or images of your service
Reliability - The ability to perform the promised service accurately and dependably
Responsiveness - The willingness to help and provide prompt service to customers
Assurance - The knowledge and courtesy of staff and their ability to inspire trust and
confidence.
Empathy -The caring individualized attention the business provides to its customers
To further elaborate the Five Dimensions of Service Quality model:
Tangibility
This dimension is defined as the physical appearance of facilities, equipment,
staff, and communication materials. Tangibles are used by firms to convey image and
signal quality, for example the laundry shops interiors, the appearance and condition of
machines and uniform of the staff (Zeithaml et al., 2006).
Reliability
This dimension is defined as the ability to perform the promised service
dependably and accurately or delivering on its promises (Zeithaml et al., 2006, p.
15
117).This is considered critical as all customers want to deal with services that keep their
promises and this is generally implicitly communicated to the service customers.
Responsiveness
This dimension is defined as the willingness of the staff to help customers and
provide prompt service and for the company to succeed they need to look at
responsiveness from the viewpoint of the customer rather than the companys perspective
(Zeithaml et al., 2006, p. 117). Its primary concerned is dealing with the customers
requests, questions and complaints promptly and attentively. Every business should be
responsive when it communicates to its customers, in able for them to know how long it
would take to get answers or have their problems dealt with.
Assurance
This dimension is defined by Zeithaml et al., (2006) as the employees
knowledge and courtesy and the service providers ability to inspire trust and
confidence. Trust and confidence may be represented in the staff who links the customer
to the organization (Zeithaml et al., 2006).
Empathy
This dimension is defined by Zeithaml et al., (2006) as the caring, individualized
attention the business provides its customer. Every customer should be treated as if he is
unique and special. The several ways that empathy can be provided is through knowing
the customers name, his preferences and his needs. (Zeithaml et al., 2006). This is also
suitable in industries where building relationships with customers to ensures the business
survival as opposed to transaction marketing (Andaleeb& Conway, 2006).
16
Marketing strategies
Marketing strategy is classifying who your customers are and finding out what
has meaning for them. In his article entitled what is marketing strategy, questions like
what do the customers care about and how does this relate to your offer should be ask in
order to formulate a proper marketing strategy in order for the strategy to be heard.
Utilizing these questions can help business owners see their business in the eyes of their
customers. How satisfying the needs of the customers can greatly increase the sales of
ones business (James Heaton 2010).
Segmentation is often the key to a sustainable competitive advantage. It basically
means the identification of customer groups that reacts differently from other groups.
Questions like who are the biggest customers are raised to identify the customers groups
in order to maximize profit. These questions along with other variables such as customer
motivation and many more would most likely help in narrowing the goal in determining
the target market (Aaker. D.A.,&Mcloughlin D. 2010).
The growth of population is one of the key factors being monitored by marketers
because it represents the potential growth of demand. As the population grows so does
the number of customers, as customer grows so does the wants, needs and demands of the
customers. The age mix of the population is also taken into account as the need and wants
of a person change throughout his or her lifetime. These are two of the demographic
factors that can be of great advantage in a business. Utilizing these factors in assessing
the market can make or break a business (KEH N.T., Chinng J. 2004).
17
chance of succeeding in the business. Flyering is one the most commonly used strategy
that has greatly impacted the sales of most if not all companies (Brian Hill 2005).
Today franchising enterprises nationwide have far better chance than ever before.
In the article taking the laundry shop business to the next level, it stated that as the
industry is now booming, laundry and cleaning services are the kind of enterprise sought
out by franchise holders. Franchising nowadays has become a great strategy in
maximizing profit and reaching out more to the target market. It would be a great
opportunity for companies to take advantage of franchising given that the company
already has a system on how they do things and can easily be incorporated by franchisers
in the future (Kotik, 2014).
Cited in the Sales & Advertising Ideas for Coin Laundry, people tend to use
laundry services closest to their homes. Hitting apartment building in your immediate
area with flier, door hangers and other advertising methods will get a big bang for your
laundry service. Also making connections with other local stores for cross-referrals is
good business sense. Best example for excellent targets would be nearby restaurants and
thrifts shops. Utilizing nearby shops and establishments can and will be of great benefit
to a business (Jake Wayne 2015).
Cited in a research on a Feasibility study-Laundry Services, good quality services
really matters in a laundry shops business. Utilizing quality equipments and machineries
that could greatly help and make the business exist. Offering of affordable cleaning
services and making sure that the output will reach its quality standard will help attract
loyal customers. Professionalism towards customers is a must. Personnel of the shop
must build professional employee-customer relationship. Great customer service is the
19
most common reason as to why laundry services are becoming such a booming industry.
Loyal customers are the life blood of a service company. Being Professional is important
in entertaining the customers, since it is one of the ways to attain loyal customers in
almost any service company (Cadorna V. 2014).
Washing clothes is probably one the most hated household chores. But, for
Koramangala-headquartered My Washin, this is good business. An on-demand dry
cleaning & laundry start-up founded this year by trio Silus Reddy, Raghu, and Balaji, the
service makes it even easier with a mobile tap and pick-and-drop scheduling.
Koramangala's location offers logistic benefits (R Chandra 2014).
Studying the demographics of population density, population mix, and population
income are very important in entering laundry business. All these factors have great effect
on the industry itself. The more the density of the area the more the demand for laundry
services. Renters are the primary users of coin laundry services. It is the fastest growing
segment in the nation occupying a third of the nation's population (American Dryer Corp
2014)
The population age and employment profile are also factors an investor in laundry
shop need to take into consideration. Typically the younger the population, the more
laundry shop customers one will likely attract. Blue-collar workers tend to great coin
laundry customers. Knowing that the marketplace has also a strong percentage of white
collar workers can help the management in offering additional amenities, such as washdry-fold and dry cleaning, which would normally cost more than usual.Service offerings
that may not typically appeal to blue-collar workers, but would be of great value to many
white-collar workers. Traffic patterns or frequency and gender are also factor that needs
20
to be considered. The volume of traffic that past your store is paramount. The higher the
traffic the better. In recent years, there are more women patronizing coin laundries than
men. Families with female heads of households have proven to be great laundry service
customers.
think that the laundry business have 2 purposes, it is to save time and give them
convenience. There are so skills that the human hand cannot apply in hand washing but it
could be done in laundry machines (R Chandra 2013).
Price
The demand for laundry services are increasing yearly with having difficulty in
having employees in this business. Most people want their laundries to be done by others,
that is where the laundry shops come in to its purpose and it is where that is business has
the bright potential to sustain. It is very hard nowadays to find labanderas and there is
no other person that could do it but them, because of this inconvenience, many would
turn their clothes over to the laundry shops.
In laundry service, looking for the right customers for this business as the price is
less for the company to market. Targeting your marking is the way to get the best
outcomes for the least expenses. Promotions should be done through the clients
themselves so that they would avail to your service and get the ideal or target income.
Place
Once it is determine if the laundry to put up is either a commercial laundry which
caters to establishments or home laundry which is for personal households it needs to be
in a good location. The nearest to the target market in usually the best location, for a
location to be ideal it must also have a good and strong water source which should be in
sufficient volume to support the need of the business (Anlacan 2013).
In deciding to invest in Laundromats, an investor must consider several decisions,
with the location of the store being the most important. The location of the store can
significantly impact the success or failure of a Laundromat. Also in deciding on a
22
location, household size and income level of customers are things that need
consideration. Laundromats should be place in areas where demand potential is high. It
is best that Laundromat be located in areas that share a population of renters with at least
30%. The average household size should be at least 2-3 people with an income level of
$35,000 per year. It is also best to place a Laundromat near other establishments as well
because a normal waiting time for a Landry service is 90 minutes, this will help
customers do other task other than doing waiting for their clothes (Bowe Dan 2013).
A niche laundry service is applied in laundry businesses and planning to target the
hotel industries. The laundry service in India is behind against an unorganized sector.
This service focuses in cleaning clothes that means that this laundry shop will have a
better service that common people washing clothes (Wendel Clark 2005).
In the article location is vital by HK laundry. It stated one of the prime
importances in a laundry service is having the proper location. The wrong location is a
great factor in succeeding or failing in a laundry service. The best sites for a laundry
business are in busy, well-frequented shopping centers. Ideally it also should be close to
other businesses that are frequently visited. A great area to target would be the working
class area because it has proven extremely good markets for laundry services. Apartment
buildings offer the potential of large concentrated populations (Ke Wen 2013). Location,
specifically the proximity between the Laundry shop are the possible customers, most
often regular customers of the laundry shop are usually within walking distance of the
home of the customer.
Promotion
23
The best thing to do is to hire experienced staff, those who already have background in
well-run laundry. It is good to find staff who already done the laundry process hundred
times because skills in laundry could only be completely absorbed through actual handson experience (Anlacan Jr. 2013).
Businesses that require average skills levels and have long-term potential markets
are particularly attractive to entrepreneurs seeking to profit from tested business models.
Customers will save time, and experience quality clothes washing at a reasonable cost.
The young professionals, students, busy parents are most likely to buy the idea faster than
the other general population (2014). Since the psychographic profile of customers has a
big factor in strategy a company should consider. Through psychographic segmentation
customers are divided into different group in the basis of their personality and lifestyle.
Customers mostly define their lifestyles through their consumption choices they make
when variety of products/services categories present which is therefore defined
quantitatively and used as a group identity for segmentation. Identifying segmentation
variable are based on demographics, lifestyles, and values. Values of customers differ due
to age, income, gender, education and social class.
In the journal of Goldsmith (2002), he considered customers bought more apparel
from markets; it is through positive effects they wanted to achieve their desire. Customers
revealed special traits as their personality and social identities and also fulfilled social
status by reviewing internal and external status of self-concept and want to how appeared
among their friends. They might act in different ways as specific clothes, thing and etc.,
gave them specific values that is used by their cognitive and affective system. These
variables were due to their attitudes and personalities. Demographics would not be
25
desires and specific needs which might influence a consumers buying decisions.
Furthermore, the economic level at which people live is also considered as a part of their
lifestyle.
Customer lifestyle group is divided in nine groups in the article NINE
CONSUMPTION LIFESTYLES by Fournier (1992), the nine groups are Functionalists,
Nurturers, Aspirers, Experientials, Succeeders, The Moral Minority, The Golden Years,
Sustainers, and Sub sisters. Through this article which pointed a very particular sample,
the researcher's findings of the surveys in terms of group of lifestyle more specifically on
succeeders group would be supported. In the article it is identified that middle-aged
members of this group (59% are 35/54) possess by far the highest educational attainment
in the sample (66% graduated college). The tendency toward dual-earner status in white
collar jobs (56%) that made them the highest household income levels of any group in the
sample which also matches the result of Lavada Queens survey.
This will also create a meaningful employment for the people currently depending
on washing clothes manually in that we will be working on hundreds of customers
weekly and in return paying the employees a little more than what they get at the moment
( Lisa Napol 2014).
These people know laundry and theyll educate you until you know it too.
Washing clothes a necessary duty but very tiring, time consume and boring. It also leaves
you with major backaches if you have to wash a lot of them. This service will save people
time and effort, giving people more time to rest and spend time with their family/friends
during the weekends (KaitKucy 2014).
27
Clothing is a basic need. It is really important in our life. And I guess, if people
dont have any time to wash their clothes, laundry shop is very relevant if you have
money. People nowadays are very busy facing the real world on the other way
(2011).Consumers within the same demographic or geographic category may display
different lifestyles. Lifestyle segmentation (Psychographics) is helpful in providing a
better understanding of consumer thoughts and behaviours (Kennedy Mc-Coll 2005).
Web Advertising has a potential for informing more consumers to their businesses
and to increase the popularity and ease of access to the business and to inform customers
on the methods and services provided by the business (Berkowitz E, Kerin R, Hartley S,
Rudelius W).
Physical Evidence
Physical evidence in the marketing mix for service is about the atmosphere or
surroundings which the service makes, starting from an employee with interaction
between the customers that is joined by a tangible products or service. Physical evidence
consists of an illustration of a service like for example, the company stationery, company
website, reports, business cards, brochures and others. An example is the laundry shop,
the furnishing, design of shop and decoration even the lighting is considered as well as
the employees attitudes have a certain effect on the customer experience and the quality
of the service.
The service scope or the surroundings in which service occur is significant
especially in terms of communicating on the service and making positive customer
28
experience. According to Vliet, the service scope comprises three physical environment
dimensions which characterize the relative among services and environment, these
dimensions are the environmental conditions like the sound, temperature and smell.
Functions and space like the map, decoration and equipment, decoration and lastly is the
symbols, signs and artifacts such as decoration style, signature and personal touch.
Since services are intangible so continuously, customers are seeing for real
evidences to assistance them to appreciate the environment of the company service.
Physical evidence functions as the visual representation of what represents the company,
it facilitates and the relationships among employees and customers. A satisfied customer
is another vital point to consider because satisfied customers are the greatest promotional
for the services. Therefore the marketing strategy needs to be operative so that
satisfaction of present customers can be connected to possible consumers.
In business like laundry services it is easier to keep customers coming back than
having new ones, that why the loyalty to customer service is of extremely importance.
For a business like laundry shop, honesty is considered as something that the customers
greatly appreciate. It can be done by making sure that all the customers clothes which
were endorse will be returned complete. The idea that your customer will just leave their
laundry for you to take care of it is the level of trust you would want to establish (Mallo
2012).
Process
According to Vincent Vliet, process of the service marketing mix signifies the
procedures, activities, protocols and other in which service is finally distributed to the
consumer. The component process of the service marketing mix is important component
29
tin the whole marketing mix strategy in service and this component comprises everything
services and activities in which the people have an important role. Process includes a
classification of stages and actions since services are outcomes of activities with
customers.
For marketers it is essential to upkeep the communication on potential distribution
periods and performance of the management to customer expectations because as a
service is shaped of a chain of activities and it is essential to make the potential waiting
time concerning the activities into deliberation. Making and working operative service
processes are for the survival of service companies so it is significant that the service
companies achieve demand.
Additional distinctive representative of a process in connection to a service are the
indications to deliver and offers to the customer that frequently standardized or
customized approach established on the consumers wants and expectations. Feedback
from the consumer determines the essential constriction in the process by the purpose to
come across the consumers requirements. The distribution system and the elasticity of
the personnel are two additional important elements in the effective distribution of a
service. Companies offering service moreover practice a blue print method called
Service Blue Printing as services are dynamic and experiential. Service Blue Printing is
a process-based technique that delivers a superior management of the service in the part
of interior and exterior interface that is transparent and ultimately implemented in
practice (Vliet2013).
It is best not just for the staff to know the process in the laundry service but
mostly to its owner. One thing that a laundry shop owner must deal with every day is
30
plugging the holes in leaking pipe, which does not refer only to actual pipe, but also the
other holes in the processes of the laundry shop which might lead to wastage or pilferage
of products. It is very important for the owner to see all the procedures which he/she
might see places where one can improve the efficiency of their service or at least he/she
can spot where there might be the pilferage is happening (Mallo 2012).
One of the best ways to make the process of a business easy is to understand its
operation. Everyone on the business should know the standard procedures and workflow
of a laundry shop. Some of the things they should be knowledgeable about laundry
operations are, learning ways on how to remove different types of stains, and making sure
not to damage clothing to return it to its rightful owner with satisfaction (Anlacan Jr.
2013).
With the distinct growth in the industry of laundry shops and how the demand
from people is gradually increasing companies may want to take advantage of the
situation and widen their reach towards the customer. Especially now that other business
enthusiasts have started their own laundry shop business. Laundry businesses nowadays
are sprouting like mushrooms catering to the demands of the public. Companies must
now have a certain differentiation in their type of service in order to capture more
customers and have an edge against their competitors. The researchers conclude that for
companies to have a certain edge against their competitors, they must use strategies that
can cater the needs of their customers. Strategies like the 7ps of marketing can help
laundry businesses take advantage of the growing industry. Also utilizing inexpensive
marketing strategies like flyers can greatly increase the reach on the customers. Having a
strategic location in building a laundry shop business is the key to succeeding in the
31
Theoretical Framework
32
The
researchers would be focusing mainly on the customer gap since this would be an
accumulation of all gaps and represents the difference between expectations and
perceived service.
Conceptual Framework
Customers Profile
Demographics
Psychographic
Behavioral
Company profile
Type of ownership
Industry size
Number of Employees
Asset size Strategy
Marketing
Annual revenue
Product
Year Established
Price
Place
Promotion
People
Physical Evidence
Process
Segmentation, Targeting
and Positioning
Tangibility
Empathy
Responsiveness
Proposed Marketing
Strategies
7Ps in Marketing
Product
Price
Place
Promotion
People
Physical Evidence
Process
33
34
Chapter 3
Research Methodology
The researchers conducted a descriptive and quantitative type of research on
Lavada Queen Laundry shop where the respondents are the customers of the laundry
shop. Respondents are given questionnaires, which the researchers will ask them to
answer truthfully and with utmost respect. The researchers also conducted a one on one
interview with the customers to have a more accurate response. The data gathered will be
analyzed and from the findings of the data, conclusion and recommendations will be
formed.
All information gathered from the customers will remain confidential. The source
of any data that was used and incorporated in the study will be acknowledged according
as to add credibility and reliability in drawing conclusion and recommendations.
35
Research Environment
due to the location of the company which is very strategic mainly because of location of
their establishment, their quality of service and the convenience they give to their
customers. Their strategic location limits the customers preferences and alternatives.
Different types of vehicles are always taking route and passing by their location making it
a perfect location.
Research Respondents
In deciding the approximate number of respondents, the researchers of this study
measured the response rate related to the objectives of the chapter 2 related review of
literature. The researchers selected 125 customers of Lavada Queen Laundry Shop with
ages from 18 to 65 and 1 guide questionnaire for the owner. In determining this number
of customers, the researchers used the Slovins Formula in calculating the approximate
amount.
Below is the Slovins formula:
Where:
n = sample size
N = population size
e = margin of error that denotes the allowed probability of committing an error in
choosing small representative of the population.
February = 60
37
March = 60
April = 60
This gives us a total of 180 customers
Equation: 180 / (1 + 180 x 0.05)
n = 125
Sample Size = 125 respondents
From 125 respondents only 121 survey questionnaires are answered.
Replacing the N and e with the approximate population size of 180 and the margin error
of 0.05 will result to the number 125.
There by, the total population size that will be used in this study would be 125. The
researchers will let the customers evaluate their customers satisfaction in Lavada
Queens shop.
The researchers were only able to gather data from 121 respondents. The reason being is
that some of the respondents chose not to answer the survey questionnaire.
Research Instruments
The researchers will do a survey questionnaire with the customers using the 20
item SERVQUAL questionnaire for the respondents and a self-administered interview
questions for the company:
1. Service Quality Survey Questionnaire for Lavada laundry shop the
researchers adopted SERVQUAL questionnaire which was divided into two
parts:
38
shop.
2. Interview Guide the researchers had an interview with the owner in order to
determine the business profile of Lavada Queen Laundry shop in terms of
years of operation, ownership, annualincomeand capital size, number of
employees, target market, and target market. The interview question was also
used to determine the current marketing strategies being used by the store.
Research Procedures
Gathering of Data
The Main sources of information that was being used in the gathering of data
were both the internet and online journals. The primary data derived from the answers of
the respondents and answers from the interview questions prepared by the researcher.
The secondary data are the datas that supported the primary data derived the findings
stated in the published documents and literatures related to the research problem.
Treatment of Data
The researchers used statistical methods in formulation of the data findings, these
methods are the following:
1. Frequency and Percentage
The percentage and frequency distribution was used to categorize the respondents
profile. The frequency was used to determine the response of the respondents.
The formula used in this technique was:
39
%= (f/n) x 100
Where:
F= frequency
N = total sample size
% = percentage
2. Mean scores
Another method used in this research was the mean scores. It was used to
determine the average response of the various options provided in different parts of the
questionnaires. The formula used was:
Mean score = Sn* FN/N
Where:
Sn = score award to a particular point of the scale (1to 5)
FN = the sum of all the products of f and x, f being the frequency of each
weight and x as the weight of each
N = number of respondents.
3. Likert scale
Using the SERVQUAL questionnaire with 5 point Likert scale, it could examine
the five dimensions of service quality which are reliability responsiveness, assurance,
empathy and tangibility. The tool was used to measure both the expectations and
perceptions of service quality on a scale of 1to 5. The Gap score for each dimension was
calculated by subtracting the expectations from perception score. A negative gap means
that the actual service was less than expected.
40
P E = GS
Where:
P = perception
E = Expectation
GS = Gap score
Interpretation
0 1.4
Very Dissatisfied
1.5 2.4
Dissatisfied
2.5 3.4
Neutral
3.5 4.4
Satisfied
4.5 5.0
Very Satisfied
41
Chapter 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
On this chapter are the researchers results from the survey questionnaires in
tabulate form. The results of each question were also presented in different tables.
Analyses on the data presented are also included in each of the corresponding tables.
Customer Profile
The customer profile shows the profile of the target market of Lavada Queen in
terms of demographics such as age, gender, civil status, occupation and income. In terms
of psychographic profile which includes social class and lifestyle of respondents. Lastly
is the behavioral profile of the respondent which is the buying behavior.
Demographic Profile
The demographic profile of each respondent was asked to provide the necessary
information which includes age, gender, civil status, occupation and income.
Table 1 is the presentation of age of the respondents in range.
Table 1: Age of the Respondents
Age
16-20
21-30
f
10
59
%
8
49
42
31-40
41-50
50-62
Total
32
16
4
121
27
13
3
100
Table 1 shows the demographic profile of the respondents according to age. From
the data illustrated above, out of one hundred twenty one respondents, 49 percent of those
who answered the survey were aged 21-30 years old while 27 percent are those aged 3140 years old who stands the second to use the services rendered by Lavada Queen and
only 3 percent of the respondents are 50- 62 years old.
The table 2 below is the presentation of the gender of the respondents and below
the table is the analysis and interpretation of the data.
Table 2: Gender of the Respondents
Gender
Female
57
47
Male
64
53
Total
121
100
Table 2 illustrates the percentage of male and female respondents and 53 percent
of the respondents were males and 47 percent were females since females are more likely
to do their own laundry than men which explains the difference of male and female
respondents in this study.
43
Single
73
61
Married
34
28
Widowed
Separated
Divorced
Total
2
120
2
100
Table 3 shows that most respondents are single with a percentage of 61 percent
while only 28 percent are married. One percent of the total respondents left the question
blank and only 120 respondents answered the question.
Table 4 is the presentation of the occupation of the respondents gathered.
Table 4: Occupation of the Respondents
Occupation
Medical profession
Students
Professionals
Sales/Marketing
Self-employed/Business owner
Retired
Govt employee
Delivery man
Maid
14
20
54
9
13
1
1
1
1
12
18
47
8
11
1
1
1
1
Total
114
100
44
f
1
8
8
27
46
89
%
1
9
9
30
51
100
Table 5 shows that a total of 51 percent of respondents earns more than Php
20,000 since most of the respondents are professionals and are the most suitable market
for the price range of the laundry shop. Followed by 26 percent of the respondents had no
answer or not applicable since some of the respondents are students who are still not
earning income. Lastly 7 percent of the respondents earn less than Php5, 000 since some
45
of the customers would just ask their maids to deliver their clothes to the shop. From 121
respondents only 89 of them give and answered their income.
f
1
16
82
5
14
118
%
1
14
69
4
12
100
Table 6 shows that a total of 68 percent of the respondents are college graduate
because most of them are business professionals. Followed by 13 percent and 11 percent
of the respondents are high school graduate and college level respectively since some of
them are students and are currently at the college level. 3 percent of the total respondent
left the question unanswered.
Psychographic
The psychographic of the respondents was asked to provide the lifestyle of the
respondents and the social class which the respondents belong.
The table 7 is the presentation of the lifestyle of the respondents which
respondents are allowed to answer more than one kind of lifestyle.
Table 7: Lifestyle of the Respondents
Lifestyle
Resigned
Struggler
Mainstreamer
Aspirer
f
14
12
22
13
46
Succeeder
Explorer
28
26
13
128
Reformer
Total
The table shows that most of the respondents have a succeeder type of lifestyle
since most of the respondents are professionals who have a strong goal orientation and
have great work ethics. Followed by the explorer type of lifestyle with 26 answers from
the respondents this is because some of the respondents are young and still have lots of
energy to spend and are looking for great adventures.
f
15
85
17
1
119
%
13
71
14
1
100
Table 8 shows that a total 70 percent of the respondents belong in the middle
class. Followed by a total of 14 percent of the respondents who belongs in the working
class since some the respondents are security minded. 2 percent of the respondents left
the question unanswered.
Buying Behavior
Buying behavior of the customers profile is asked to provide the frequency of
visit of the respondents to the laundry shop, the money spent of the respondents and the
consideration in choosing Lavada Queen.
47
Once a month
17
15
Twice a month
34
29
Thrice a month
10
51
44
First time
whenever in Cebu
Total:
117
100
Table 9 shows that a total of 42 percent of the respondents visit more than thrice a
month in Lavada Queen Laundry. One of the respondents only visits the Lavada Queen
whenever in Cebu because of its availability and the services offered by Lavada Queen. 3
percent of the respondents didnt answer the question.
Php 50 -100
11
24
21
48
42
28
25
Total:
114
100
Table 10 shows that a total of 40 percent of the respondents spend Php 300-400
on Lavada Queen Laundry. Followed by 23 percent of the respondents who spends more
48
than Php 400 on Lavada Queen while 5 percent of the respondents didnt answer the
question.
f
43
Brand Popularity
Quality of Service
Availability
47
93
45
The table shows that the respondents would take more into consideration in
choosing a laundry shop the quality of service they can offer since most of the
respondents are professionals and would care more about the quality of service rather
than the price since they can afford to pay more. The next consideration is the brand
popularity and the availability of Lavada Queen with the frequency of 47 and 45
respectively.
Company Profile
The owner of Lavada Queen Laundry shop was asked of the shop's business
profile in terms of business ownership, services offered, year established, and number of
employees, annual revenue, and capital size. The researchers also asked about the current
marketing strategies of the company in terms of STP, services, price, place, promotion,
people, physical evidence, and process. The data below shows the business profile of
Lavada Queen Laundry shop.
1. Business ownership
Lavada queen laundry shop is a corporation type of ownership.
3. Services offered
49
Prices
Php 80/kg
Php 100/kg
Php 75/kg
Php 70/3.5kg
Php 7-/3.5kg
Php 90/kg
Php 125/kg
X2 of Php 135
Php 395
Php 400 min charge
Php 600 min charge
Cebu. They asked international companies on creating a laundry shop business. They also
made tours in other countries to look at other laundry shop for references.
Targeting
The company is targeting the demographics, psychographics, geographic and
behavioral of the customers. The considerations they made in coming up with their
segmented market are the income of the customers, their availability, and their choice for
superior quality service.
Positioning
Lavada queen laundry shop differentiates their product from other competitors
with high quality work and great customer service. They position their service with
superior quality against their competitors.
machine. They also offer after purchase services by offering five times the payment of the
service for every lost shirt.
Price
The owner believes she is offering a reasonable price with regards to their cost of
service offered. They are using the cost base pricing strategy for their service offered.
They came up with their pricing strategy mainly because of their costing and plus profit.
They firmly believe in doing thing right with their services that is why their prices are
high because of the quality of service they are providing.
Place
The company is not easily accessible because of low traffic activity in their area.
The marketing channels they are currently using are advertising, social media, catalogs
and brochures. They chose the marketing channel mainly because they taught it would
work in providing accessibility for their customers.
The company currently has 2 branches. They also offer discounts to customers
who avail their services in great volume. The considerations they took in choosing the
location of the company is the building itself with marbled floor, the comfortability of
their employees and the security it would instill not only for the customers but the
employees as well.
The company has their own website but is no longer updated. They decided to
create a website because of the exposure it can bring for their company. It can give great
exposure to people and more accessibility for customers to reach them. They offer
seminars to students and other people seminars about the proper way in doing laundry.
52
Promotion
The company's promotional methods are leaflets/brochures, social media, TV
advertising, business cards, newspapers and magazines, and word of mouth. The
considerations they took in choosing the promotional methods are the target audience and
the cost it would take.
People
The consideration they took in employing new personnel for their company are creativity,
happy personality, education, and doesn't mind doing this type of job. The owners pre
evaluate the applicants of their company. The owner believes that the overall
management of the company is well managed because she manages the company herself.
Physical Evidence
The main reason why they chose to have a fine ambiance and well decorated place
for their company is their personality. They like nice things, and want to have a great
environment for themselves, their employees and especially their customers. They choose
to have a parking lot for their company because of their orientation on customer delight.
The considerations they took in choosing the equipments for their services offered are
durability and quality of work and the convenience to operate for their customers.
Process
The companys store hours is convenient for their customers because they open at 7
in the morning and closes at 8 in the evening. They chose the opening and closing time
for their shop because they want to accommodate later and early hours. The owner
believes that the overall customer satisfaction in the experience at the shop is 9/10.
53
Mean
Expectation
4.51
Mean
Perception
4.56
Gap
4.23
-0.26
4.55
0.04
4.60
-0.13
0.05
Likert Scale
Interpretation
Very
Dissatisfied
Very
Dissatisfied
Very
Dissatisfied
Very
Dissatisfied
Most of the respondents agree that a laundry shop should have a great equipment
and most of them agree that Lavada queen has great equipment which resulted into a
positive gap score of 0.05 which means Lavadas was able to met their customers
expectation.In-terms of physical facilities and office appeal most of the customers agree
that those facilities and offices should be virtually appealing and most of the customer
also agree that Lavada has virtually appealing offices and facilities while the gap shows
that Lavada didnt met their customers expectation as the gap score resulted into
-0.26.Most of the customers agree that employees of a laundry should be well dressed
and they also agree that Lavadas employee are well dressed which resulted into positive
gap score of 0.04.The customers also believed that physical environment should be clean
and agree that Lavadas physical environment is clean but still they didnt met their
customers expectation as it resulted with a gap score of -0.13.
Mean
Mean
Gap
Likert Scale
54
Expectation
4.66
4.69
Perception
4.42
4.35
-0.24
Interpretation
Very
-0.34
Dissatisfied
Very
4.67
4.53
-0.14
Dissatisfied
Very
4.53
-0.15
Dissatisfied
Very
Dissatisfied
With a gap score of -0.24 Lavada Queen has not met customers expectation with
their perception. Respondents has experienced that Lavada Queen arent perform their
services right at the first time and this gap signifies that Lavada Queen failed to achieve
customer satisfaction in terms of performing the service. With the gap score of -0.34,
Lavada Queen isnt dependable in their service offered. Lavada Queen fails to
dependable to their services offered to the customers and the discrepancy shows how
customers are handled by the lavada in term of the services that customers need and
unfortunately the Lavada Queen has not given the customers what they want.With the
gap score of -0.14, Lavada Queen isnt show sincere interest in solving problems. Lavada
Queen misses to give sincere interest in solving problem when there are comes in and in
this inconsistence they fails to give the sincerity of solving problem all the time.With a
gap score of -0.15 Lavada Queen has not meet the customers expectations with their
perception in promises to something by a certain time. Lavada Queen failed to achieve
customers expectations since the customers expected more for the company as Lavada
Queen rendered their services to the customers.
55
Mean
Expectation
4.68
Mean
Perception
4.40
Gap
4.64
4.35
-0.29
4.59
4.32
-0.27
4.66
4.40
-0.26
-0.28
Likert Scale
Interpretation
Very
Dissatisfied
Very
Dissatisfied
Very
Dissatisfied
Very
Dissatisfied
With a gap score of -0.28, respondents fail to see and feel the willingness of
Lavada Queens employees to help the customers. Lavada Queen shown a negative
output according to the ratings that the respondents have set in terms of
theiremployeeswillingness to help.With a gap score of -0.29,Lavada Queen has not
prioritized in readiness to respond to the customers request. With the Dilemma, Lavada
Queen fails to provide prompt service. With a gap score of -0.27, Lavada Queen
Employees has not met the customers expectation with their perception in making
information easily obtainable by customers. This signifies that Lavada Queen Employees
fails to deliver or make the informations easy to understand for customers to be satisfied
andget what they want.With a gap score of -0.26, respondents not met promptly services
for the Lavada Queen employees which explain the gap. This shows that Lavada Queen
has not given the customers what they want.
Mean
Expectation
4.75
Mean
Perception
4.59
Gap
4.64
4.37
-0.27
-0.16
Likert Scale
Interpretation
Very
Dissatisfied
Very
Dissatisfied
56
4.64
4.38
-0.26
4.70
4.28
-0.42
Very
Dissatisfied
Very
Dissatisfied
The respondents strongly agreed that they should feel safe in their transactions
with the employees of Lavada Queen. While the perception side of the respondents
agreed that they feel safe in their transactions of the employees of Lavada Queen. This is
because that the management takes good care of their employees and gives them more
than the minimum wage thus encouraging their employees to work with integrity. The
gap result is -0.16 which means that Lavada Queen failed to meet the expectations of
their customers. The respondents strongly agreed that employees of Lavada Queen should
be consistently courteous with their customers. While the perception of the respondents
agreed that employees of Lavada Queen are consistently courteous to their customers.
Since the management takes good care of their employees. Employees also take good
care of their customers in return. The gap result is -0.27 which means that Lavada Queen
failed to meet the expectations of their customers. The respondents strongly agreed that
the behavior of employees in Lavada Queen should instill confidence in them. While the
perception of the respondents also agreed that the behavior of employees in Lavada
Queen instills confidence in their customers. The gap result is -0.26 which shows that
Lavada Queen failed to meet the expectation of their customers.Most of the respondents
strongly agreed that employees should be knowledgeable about answering the customers
queries. While the perception of the respondents also agreed that employees of Lavada
Queen are knowledgeable about answering their queries. This is because the management
gives a yearly training to their employees and sends them to seminars on laundry
57
services. The gap result is -0.42 which shows that Lavada Queen failed to meet the
expectations of their customers.
Mean
Mean
Expectation
4.70
Perception
4.54
Gap
Likert Scale
-0.16
Interpretation
Very
convenient to customers
Lavada Queen have their customers
4.72
4.47
-0.25
Dissatisfied
Very
interest at heart
Employees of Lavada Queen give
4.61
4.32
-0.29
Dissatisfied
Very
0.9
Dissatisfied
Very
4.60
4.69
Dissatisfied
Most of the respondents agree that Lavada Queens operating hours are
convenient to customers. With a gap score of -0.16, Lavada Queen has not met
customers expectation with their perception. The reason being is that most of the
respondents are professionals and have a very busy lifestyle and still would prefer an
earlier or later operating hours in doing laundry. Most of the respondents agree that
Lavada Queen should have their customers interest at heart. While the perception side of
the customers also agreed that Lavada Queen have their customers interest at heart
because the management of Lavada Queen makes sure to put the interests of the
customers first. The gap result is -0.25 showing that the customers perception wasnt able
58
to meet their expectations. The respondents agree that the employees should give
customers personal service especially in catering their needs. The respondents also agree
that Lavada Queens employees give their customers personal service based on their
perception and the gap score result is -0.29 showing that Lavada Queen failed to meet the
customers expectations. The respondents strongly agreed that Lavada
Queen should understand the specific needs of their customers. While the perception of
the customers also agreed that Lavada Queen understands the specific needs of their
customers. The reason for this is because of the knowledge that the management has with
regards to giving laundry service to their customers.
Table 18: Lavada Queens customers expectation and perception with service
provider gap
Dimension
Tangibility
Reliability
Responsiveness
Assurance
Empathy
Expectation
4.56
4.65
4.60
4.65
4.57
Perception
Service
Likert Scale
4.43
4.42
4.33
4.37
4.48
Provider Gap
-0.13
-0.23
-0.27
-0.28
-0.09
Interpretation
Very Dissatisfied
Very Dissatisfied
Very Dissatisfied
Very Dissatisfied
Very Dissatisfied
the highest gap score of -0.28, followed by responsiveness with -0.27 and empathy with
the least gap score of -0.09. This means that assurance was the most lacking dimension
performed by Lavada Queen Laundry shop. Using the mean score analysis, it meant that
customers of Lavada Queen were very dissatisfied with the all the dimensions of service
quality.
Proposed Recommendations
Segmentation and Targeting
The management should take into account to possibility of catering their services
to other target markets. Segmenting new markets that are more prices oriented than
quality oriented. A great example would be segmenting low income earners and students
who would normally go for lower prices especially in laundry services.
Positioning
The positioning of Lavada Queen's current offers is already sufficient in capturing
their current target market. The superior quality of Lavada Queen is greatly attracting
professionals. But in order for them to be more profitable, the management should
position themselves to new markets, lowering their current prices, lower the costs in
doing the service, and using normal detergents for their services offered but still having
superior quality against their competitors. Lavada Queen should also identify themselves
as a company that cares and shows love for their customers and who puts their customers
first all the time.
The 7Ps are used in bridging the gap of the service quality provided by Lavada
Queen. It is also used to continually evaluate business activities. The service quality
dimensions are analyzed and evaluated with the use of the 7Ps which are product or
service, price, promotion, place, physical evidence, people, and process. This helps in
generating a recommendation of Lavada Queen Laundry shop in their service quality.
Service
Lavada Queen Laundry shop can look into creating value for its customers by
simply meeting the expectation of their customers. Even though the laundry shop is
already giving much value for their customers to the point of even sacrificing profit in
order to achieve customer delight, Lavada Queen still needs improvements in the service
they are offering. Lavada Queen already has a variety of services offerings that are
suitable for its target marketmaking a one stop shop for its customers. But Lavada Queen
has only a few number of customers compared to its competitors. The reason being is that
their competition has different target markets. The competitive edge for other competitors
is their pricing strategy which Lavada Queen cannot really compete because the
management does not want to sacrifice their superior quality for profit. The researchers
highly recommend that the management should take into considerations offering new
services in order to hit a new target market. Lowering the cost for their services can really
decrease the price in their Lavada. Instead of using high grade imported ingredients, the
management should try using local ingredients for people who thinks that price is the
thing that most matters in availing a laundry service. Cheaper services but still with
superior quality against other competitors and offering water for the customers can
greatly increase the satisfactory level of the customers especially for customer who would
61
prefer their self-service laundry. The packaging of their finished service should contain
their brand so as to provide brand identity in the perception of the customers. The staffs
should be able to deliver on time their newly washed clothes so as to avoid any
inconvenience for the customers. In order to provide assurance to the customers, the staff
should be knowledgeable about the services offered by the company to provide answers
immediately for the customers.
Price
Lavada Queen Laundry shop should consider displaying their prices of their
services visibly for customers to see clearly. The management should also consider
pricing strategies that would be beneficial not only for the customers but to the company
as well. One pricing strategy that is very popular and is overly used nowadays is
psychological pricing, wherein the price of a service is set slight lower than rounded
numbers, in the belief that customers do not round up prices, and so will treat them as
lower prices than the really are. An example for this would be instead of offering
Php70/kilo, the management can offer Php68/kilo. This in turn would attract more
customers and at the same time increase overall customer satisfaction but without
sacrificing much profit. The management should also be transparent with their costs of
services and should have no hidden charges in availing the other services offered by
Lavada Queen. It is highly recommended that the management should consider
penetrating another target market by lowering their prices so as to compete with other
competitors. Cutting the cost of their services and offering lower prices for penetration of
a new market will greatly attract new customers and increase profit for Lavada Queen
Laundry shop. Also to improve the overall quality of service for their shop, the
62
management should encourage the staffs to have the best interest of their customers at
heart especially in dealing a mistake with regards to money. The staffs should have an
error free transaction in dealing with their customers. The staffs should convey to their
customers the value they are getting in availing the services offered by Lavada Queen.
They should let the customers know and feel that they are getting what their money is
worth in availing the services of Lavada Queen laudry shop.
Place
The accessibility of Lavada Queen Laundry shop is really low because of its
location and poor exposure of their location. Even though the road access has quite few
traffic in the area, the shop still isn't quite noticeable for people.The other branch of
Lavada Queen Laundry shop should also have the same standards as their main branch.
The management should consider using marketing channels that can help them gain
exposure for their company. Advertising their company is one way to gain exposure for
their company and hitting their target market. Another way for the company to provide
ease of access for their customers is having a website. Lavada Queen already has a
website but is not up to date and doesn't have much exposure. The reason for this is that
the website they are using is just a free to make website and has very poor exposure. The
management should update their website and make another one in another site that offers
much exposure. One website would be blogger.com; they offer a free to make website
and also a paid website that can provide great accessibility for Lavada Queen Customers.
The management should also use facebook as a marketing tool and pair it with their
website. This will help bridge the gap for customers wanting to know more about Lavada
Queen. The location is the greatest factor in the success of not only in laundry shop but
63
other businesses as well. The management should consider penetrating locations with
high population area. Since Lavada Queen offers high price with superior quality service,
the management should consider opening a shop in an area with a high percentage of
renters in the population. The management should consider opening a store near
condominiums and apartments since these are the type of people who would normally
avail a laundry service.
Promotion
The management should be more aggressive in their promotional methods. They
should again use leaflets or brochures that can gain attraction to their company. The most
cost effective way of gaining exposure and attracting customers nowadays is social
media. Using Facebook is a marketing tool can provide great exposure for their company.
Paying only a small amount for paid advertising in Facebook can give the page a number
of viewers. The management should also offer volume discounts to customers and should
also have loyalty discounts or offer coupons to customers. This in turn will not only
attract more customers but also increase the customers overall satisfaction. The
management should continue doing their seminars for students about doing laundry to not
only provide more exposure but to help other people as well.
People
The employees play a huge part in the providing service for their customers.One
of the most important considerations a business should look at first especially in service
is their peoples personality and capabilities in doing well with their jobs. The
management already are taking great care of their employees especially that they are
giving them more than the minimum wage. The management should have a regular
64
assessment for their employees quality of work and also continue the regular trainings
for their employees. In laundry business it is also advisable for the management to always
consider what their staffs wear as they are the one who represents the business. Aside
from what their staff wear, their attitude on how they treat their customers is also
important, being polite to them makes them feel comfortable which keeps them coming
back to Lavada Queen. In hiring new staff experiences in laundry field would always be
the best qualification. It is important for each staff to have knowledge on every detail of
their service offered, through trainings and orientation they can enhance their staff. Top
management should also interact with their staff to build good working relationship
which would help them to easily communicate and also understands their need. Their
willingness to give their best in their jobs would always affect their customers views and
judgement on their service quality. In every company their people are the one who bring
success, if they feel good inside it would be easy for them to do their job.
Physical Evidence
The environment of Lavada Queen Laundry shop is clean, and has a very fine
ambiance not only compared to other laundry shop companies but also to indirect
competitors as well. It would be beneficial for the part of the customers in providing
shade in the waiting and provide a cooling system or an electric fan to boost overall
customer satisfaction. Since the self-service of their shop takes a great amount of time to
finish, it would be best if they were to provide some sort of entertainments for their
customers. Placing a television in their waiting area would cost much but will increase
customer satisfaction, also than management should offer free Wi-Fi for their customers
so that they will be more inclined in availing their self service offers. The management
65
shouldn't be very lenient for their employees and should regularly orient and include
them in the companys visions and overall goals. The management should also provide
rules and regulations inside the premises of their company.They should also consider
hiring a security guard in order for customers to feel safe in the vicinity of Lavada Queen.
Also, installing CCTV cameras in their shop should also be taken into account to instill
confidence in not only to the customers but to the employees as well.
Process
In serviceindustry, process is very important for the proper flow of service in order for the
customers to satisfy. Lavada Queen's operating hours are already catering to the needs of
most of their customers but still they were not able to meet the expectations of the
customers with regards to their operating hours. The management should consider
opening at a much earlier time and closing at a later time. Especially that most of their
customers are professionals and students who are really busy and would normally go to
work or class very early in the morning and get out of work late at night. The employees
should also be welcoming to customers; a simple greeting from the employees would
increase customer satisfaction.
66
Chapter 5
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
This chapter reports the summary, findings, conclusion and recommendations that
resulted from the study. This chapter would tackle on Lavada Queen overall service
quality with recommendations that can be implemented for improvement.
SUMMARY
The overriding purpose of this study was to determine the relative importance of
assessing the service quality of Lavada Queen Laundry shop. Since Lavada Queen is
known for its high in quality service and competitive one among laundry industry in
Cebu, this study serves as a primary data whether customers are affected by its
competitiveness.
Chapter one which is the introduction, includes the rationale of the study,
statement of the problem, significance of the study, scope and limitations,
and the definition of terms. The rationale of the study is to assist future
know the service offered and the segmentation, targeting and positioning (STP) of
67
Lavada Queen, the service quality perceptions of their customers in terms with the five
dimensions and the recommendations of the researchers that can improve the service
quality of Lavada Queen Laundry shop.
Chapter two is the theoretical background. It has the review on related literature
on the importance of the laundry shops industry as its demand has become bigger every
year. The studys aim to know the service quality, which concept is commonly used as it
would help to describe, explain, anticipate and resolve some issues to the different
degrees of commitment. Through defining service quality, business would be able to
deliver a higher quality of services that would increase customer satisfaction which is
supported by the gap model of service quality and its dimensions; Tangibility, reliability,
responsiveness, assurance and empathy. It also includes the strategy 7Ps of marketing.
The researchers are using the Gap model from The Gaps model of Service Quality
(Zeithaml et al, 2006) as their theoretical framework. The conceptual framework is
acquired from the consumer gap from the theoretical framework.
Chapter three which is the research methodology. The researchers conducted a
descriptive and quantitative type of research where the respondents are the customers of
the laundry shop. Respondents are given questionnaires and researchers will also conduct
a one on one interview with the customers to have a more accurate response. The data
gathered will be analyzed and from the findings of the data, conclusion and
recommendations will be formed. Research environment, respondents, instruments and
procedures are found in chapter three. Although the researchers selected 125 customers of
Lavada Queen Laundry Shop they were only able to gather data from 121 respondents.
The research instruments used is a SERVQUAL questionnaire for the respondents which
68
with 5 point Likert scale, it could examine the five dimensions of service quality which
are reliability responsiveness, assurance, empathy and tangibility, and a self-administered
interview questions for the company.
Chapter four contains presentation, analysis and interpretation of data. The
researchers presented results from the survey questionnaires in tabulate form. The results
of each question were also presented in different tables which analyses of the data
presented are also included in each of the corresponding tables. The chapter contains
seventeen tables including the customers profile, the services offered by Lavada Queen,
the 5 dimensions and the table of Lavada Queens customers expectation and perception
with service provider gap. Lavada Queens segmenting, targeting, and positioning (STP)
strategy and 7ps of marketing is also present. The researchers also included their
proposed recommendations for Lavada Queen.
Chapter five contains the summary, findings, conclusions and recommendations
that resulted from the study. This chapter tackled Lavada Queens overall service quality
with recommendations that can be implemented for improvement. The researchers based
their findings through the results of the customer and company survey. The researchers
recommended that the management should work on meeting the expectation of the
customers and focus on achieving customer delight. They above all should consider
implementing our proposed marketing strategies in order to attract customers and
increase overall customer satisfaction.
FINDINGS
Customer Profile
69
energy to spend and are looking for great adventures. The social class of the
customers where belong in the middle class since most of the respondents are
achieving professionals and career oriented.
More than thrice a month is the frequency of visits of the respondents in
Lavada Queen Laundry shop and they spend money around Php300-400 on
Lavada Queen since most of the respondents are earning high salaries and can
give more money in exchange for high quality service and respondents consumes
a lot of clothes since so they spend more. The respondents consideration in
choosing a laundry shop is the quality of service.
Company Profile
2. The findings of business profile of the study.
The owner of Lavada Queen Laundry shop says that Lavada queen laundry shop
is a corporation type of ownership. The services offered full service with include
wash & fold for Php 80/kg, wash & press for Php 100/kg and press for Php 75/kg
and in self-service, Lavada Queen offered wash for Php 70/3.5kg and dryer for
Php 7-/3.5kg. Full service comforter: comforter drying only for Php 90/kg and
comforter spin and dry only for Php 125/kg, fabric treatment: color
enhancement/piece for x2 of Php 135 and total color removal for Php 395 and in
laundry pick up around: block or closer Php 400 min charge and within 5 km
radius for Php 600 min charge.Lavada queen laundry shop was established on
1998 with 10-13 employees in their main shop alone and the annual revenue is
Php 1-2 million with initial capital size of Php 4-5 million.
71
For physical evidence, the main reason why they chose to have a fine
ambiance and well decorated place for their company is their personality. They
like nice things, and want to have a great environment for themselves, their
employees and especially their customers. They choose to have a parking lot for
their company because of their orientation on customer delight.
The considerations they took in choosing the equipments for their
services offered are durability and quality of work and the convenience to operate
for their customers. In process, the companys store hours is convenient for their
customers because they open at 7 in the morning and closes at 8 in the evening
and the owner believes that the overall customer satisfaction in the experience at
the shop is 9/10.
Segmenting, Targeting and Positioning (STP)
The target market of Lavada queen laundry shop are students who are
busy, professionals who are busy doing their laundry, people who like high quality
service. The company is targeting the demographics, psychographics, geographic
and behavioral of the customers. The considerations they made in coming up with
their segmented market are the income of the customers, their availability, and
their choice for superior quality service. Lavada queen laundry shop differentiates
their product from other competitors with high quality work and great customer
service. They position their service with superior quality against their competitors.
informations easy to understand for customers to be satisfied and get what they
want.
As assurance the respondents strongly agreed thatthey should feel safe in
their transactions with the employees of Lavada Queen and the respondents
strongly agreed that employees should be consistently courteous with their
customers. Respondents also strongly agreed that the behavior of employees
Queen should instill confidence in them and employees should be knowledgeable
about answering the customers queries.
Lastly, respondents agree that Lavada Queens operating hours are
convenient to customers since the respondents are professionals and have a very
74
busy lifestyle and still would prefer an earlier or later operating hours in doing
laundry. They also agree that Lavada Queen should have their customers interest
at heart and employees should give customers personal service especially in
catering their needs. The respondents strongly agreed that Lavada Queen should
understand the specific needs of their customers as their empathy.
The results of the mean of every service dimensions shows that the highest
dimension expectation is both reliability and assurance which means that the
customers expected the employees to be more customer oriented. The highest
dimension perception is empathy which means that the employees of Lavada
Queen are more inclined in giving the optimal service to their customers and have
the customers interest at heart. By using the mean score analysis, it meant that
customers of Lavada Queen were very dissatisfied with the all the dimensions of
service quality.
CONCLUSION
SERVQUAL method was used to assess the service quality of Lavada Queen
Laundry Shop. For the demographic profile of the customers, it is interpreted that there
are greater number of male respondents than female, as female more likely to do their
own laundry than male. Majority of the respondents ages 21-30 years old since most of
them are business professionals and students. Most of the respondents are single. It was
also shown that a high amount of the respondents earns more than Php 20,000 because
most of them are professionals and are most suitable market for the price range of Lavada
Queen. A total of 82 respondents are college graduate. Most of them have a succeeder
type of lifestyle since they are professionals who have a strong goal orientation and have
75
great work ethics. Considerable numbers of respondents belong to the middle class whom
are achieving professionals; career oriented and high paid blue collar workers. Most of
the respondents visit Lavada Queen more than thrice a month. Almost half of them spent
Php300-400 in their laundry. Quality of service is one of the top considerations of the
respondents, while the other 3 choices which are the price, the brand popularity and the
availability scored almost the same.
The dimensions of the customers expectations and perceptions regarding Lavada
Queen Laundry Shop service quality were surveyed empirically. The table shows that the
highest dimension expectation is both reliability and assurance which means that the
customers expected the employees to be more customer oriented. The highest dimension
perception is empathy which means that the employees of Lavada Queen are more
inclined in giving the optimal service to their customers and have the customers interest
at heart. Using the mean score analysis, it meant that customers of Lavada Queen were
very dissatisfied with the all the dimensions of service quality.
RECOMMENDATIONS
It is therefore recommended that the study should be presented to the management
of Lavada Queen Laundry shop for possible implementations of our proposed marketing
strategies. This study will not only be practical but is also necessary and highly beneficial
to the company and the industry as well.
Furthermore, given that this study may be implemented by the management of Lavada
Queen towards constant improvement of their service quality. The management should
76
BIBLIOGRAPHY
Books
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United Kingdom: John Wiley & Sons.
77
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Berry, Tim. (2013). Channel marketing moves goods from producers to consumers.
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Cidnee,
Stephen.
(2012).Plan
for
http://www.strategiesforsuccess.ca/
Success.
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from
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Jan. 2016fromhttp://www.djdimaliuat.com/2011/09/29/how-to-find-agoodlocation-for-your-laundry-shop/
Goldsmith, R. E. (2002). Some personality Traits of Frequent Clothing Buyers. Journal of
Fashion Marketing and Management, 6(3), 303-316.
Gonzalez, A. M. and Bello, L. (2002). The Construct Lifestyle in Market Segmentation
the Behavior of Tourist Consumers. European Journal of Marketing,
36(1/2), 51- 85.
Gronroos, C. (2000). Service Management and Marketing.John Wiley & Sons Ltd.
Jones, M., &Suh, J. (2000).Transaction-specific satisfaction and overall
satisfaction: an empirical analysis.Journal of Services Marketing, 147-69.
Huffaker, Richard. (2011). What You Need to Know About Email Delivery. Retrieved
21 Jan. 2016 from http://www.verticalresponse.com./
KeWen(2013).Cleaning up in the mainland laundry business.Retrieved21 Jan. 2016
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Mallo, Carlo P (2012). Things to consider before opening a laundry shop business.
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Napol L. (2014). A Growing Movement To Spread Faith, Love And Clean Laundry.
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Negi, R. (2009). Determining customer satisfaction through perceived service quality: A
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from
APPENDIX A
TRANSMITAL LETTER
Dear Ms.Ninette;
We are students from the University of San Carlos in Business Administration. We would
like to conduct a study on An Assessment of the Service Quality of Lavada Queen
Laundry Shop in Cebu City. Our purpose in conducting this interview is to gather data
or information that will be helpful to our research thesis.
We humbly ask for your permission to conduct an interview with your existing
customers. Rest assured all information gathered will remain confidential and for
educational purposes only.
We are hoping for your kind approval. Thank you and God Bless.
Sincerely yours;
APPENDIX B
RESEARCH INSTRUMENT
Good Morning!
81
We are students of the University of San Carlos major in Marketing under the Business
and Economics Administration currently conducting a study in our MARK 41 titled An
Assessment of the Service Quality of Lavada Queen Laundry shop in Cebu City
We would like to ask you to answer this formulated questionnaire as honestly as possible.
It will facilitate the researchers analysis on the study. Rest assured that the data gathered
will be utilized only for the development of this study and all information gathered shall
remain confidential. Thank you!
Please check and fill up the necessary information
Demographics
Age:
Sex:
Civil status:
Occupation:
Income:
o 5,000- 10,000
o 10,000- 15,000
o 15,001- 20,000
o others: specify ______
Educational attainment:
o Elementary graduate
o High school graduate
o College graduate
o Others: specify _____
Psychographic
Lifestyle:
o Resigned
o Succeeder
Behavioral
How often do you use the services offered by Lavada Queen Laundry Shop?
o once a month
o twice a month
o trice a month
o others: Specify_________
How much money do you spend on laundry service?
o Php 50 - 100
o Php 100 200
o Php 200 300
o Php 300 400
o Others : specify _______
When youre considering a new service in the area, what are the top 2 things you
generally consider? (check 2 circles)
o Price
o Brand popularity
o Quality of service
83
o Availability
Do you know about Lavada Queen Laundry shop in Cebu City? (if yes please proceed to
questions number 2 if not, you dont need to continue)
o Yes
o No
Instructions: please answer the following
questions by checking the number which
best indicates your opinion to what extent
you agree with each statement on a scale
from 1 to 5.
The scale means as follow;
1 = Strongly disagree
2 = Disagree
3 = Neither agree nor disagree
4 = Agree
5 = Strongly agree
I. Tangibles:
1
Expectation
How important
is this item to
you
Perception
Level of
satisfaction
with this item
1 2 3 4 5
1 2 3 4 5
III.Responsiveness
1
Employees in Lavada Queen are willing to
help
2
Employees are always ready to respond to
requests
3
Employees make information easily
obtainable by customers
84
V.Empathy
1
Operating hours of Lavada Queen are
convenient to customers
2
Lavada Queen have their customers
interest at heart
3
Employees of Lavada Queen give
customers personal service
4
Employess of Lavada Queen understands
your specific need
Thank you for your time in answering our survey. God bless you!
APPENDIX B
RESEARCH INSTRUMENT
Company profile
o Sole proprietorship
Business ownership
o Partnership
o Corporations
Services offered
Year established
Number of employees
Annual revenue
Capital size
Segmenting, Targeting, and Positioning
Who is your target market?
How did you identify your
target market?
What market segments are
you targeting?
86
o
o
o
o
o
o Yes
o No
Marketing Mix
I.
Services
o Yes
o No
o Yes
o No
o Premium pricing prices are higher than
competitors,
something unique about your
service.
o Penetration pricing low prices relative to
the competition to attract buyers.
o Economy pricing low cost approach to
marketing to keep prices low.
o Price skimming relatively high price at first
then lowers
prices over time.
Psychological pricing - setting prices slightly
lower than rounded numbers.
87
III.
Place
o
o
o
o
o
o
o
o
Yes
No
Advertising
Direct marketing
Public relations
Telemarketing
Catalogs
Others: Specify _____
o Yes
o No
Physical Evidence
Why did you choose to have a
fine ambiance and well
decorated place for your
company?
What are your
Why did you consider having
considerations in choosing
a parking lot for your
your promotional method
company?
for your company?
What considerations did you
take in choosing the
equipments you have for your
services?
III.
Process
II.
o
o
oo
oo
o
o
o
o
Leaflets/brochures
Radio
Yesadvertising
TV
No
Posters
Social media
Business card
Word of mouth
Others: specify ________
o
o
Yes
No
88
Thank you for your time in answering our survey. God bless you!
APPENDIX C
TIMETABLE OF ACTIVITIES
TIMETABLE OF ACTIVITIES
Activities
January
February
March
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
Consultation
of Proposal
Group
Meeting
Research
Content
Formulation
Consultation
Revision
Approval
for Data
Gathering
Interview
Data
Collection
Oral
Defense
89
APPENDIX D
PROGRAM BUDGET
Program Cost and Expenses (In Philippine Peso)
Research
Meals:
PHP 165.00
Transportation:
PHP 84.00
Internet Connectivity :
PHP 375.00
Total: PHP 624.00
Group Meetings
Meals:
PHP 750.00
Transportation:
PHP 252.00
Total: PHP 1,002.00
PHP 430.00
Book Binding:
PHP 500.00
Photocopy:
PHP 735.00
Total: PHP 1,665.00
90
CURRICULUM VITAE
PROFILE
Name: Christian Paul R. Donaldo
Birth Date: March 17, 1993
Address: 451- B. P Del Rosario Ext. Cebu City
Contact No. : 09422860976
Email: christiandonaldo@gmail.com
EDUCATIONAL BACKGROUND
Primary Level:
University of San Carlos BED South Campus
Secondary Level:
University of San Carlos BED South Campus
Tertiary Level:
University of San Carlos Downtown Campus (2013-present)
91
ORGANIZATION
SYBEE 2014-2015
SKILLS
Computer Literate
PROFILE
Name: Belinda T. Llanto
Birth Date: August 17, 1993
Address: 280-D Tupas St. SawangCalero Cebu City
Contact No. : 09434410097
Email: bllanto93@gmail.com
EDUCATIONAL BACKGROUND
Primary Level:
Cabul-an Elementary School SY: 2000-2006
Secondary Level:
Cabul-an High School SY: 2006-2009
Cebu City Don Carlos A. Gothong Memorial National High School
Tertiary Level:
Velez College SY: 2011-2013
92
ORGANIZATION
SYBEE 2014-2015
SKILLS
Computer Literate
PROFILE
Name: Maribeth A. Villaceran
Birth Date: October 16, 1995
Address: Liloan, Cebu
Contact No. : 09239447386
Email: maribeth.zhang@gmail.com
EDUCATIONAL BACKGROUND
Primary Level:
Jubay, Elementary School
Secondary Level:
La Consolacion College-Liloan
93
Tertiary Level:
University of San Carlos Downtown Campus
ORGANIZATION
SYBEE 2014-2015
SKILLS
Computer Literate
94