TITLE:

Marketing Practices of street Food Vendors in

Roxas Avenue, Davao City
 Chapter 1

The Problem and Its Settings

The global market is becoming more competitive and small scale businessmen
seek efficient marketing practices that will produce profit. Street food business is one of
the most popular small scale businesses now a day. Urban population growth, a
trending situation is one factor that let street food vendors exist. Winarno, F.G. and
Allain (2013), A. stated that urban population growth has stimulated a rise in the number
of street food vendors in many cities throughout the world. Migration from rural areas to
urban centres has created a daily need among many working people to eat outside the
home. Demand for relatively inexpensive, ready-to-eat food has increased as people,
especially women, have less time to prepare meals. They also added that in some parts
of Europe and North America, street foods, which originated in Asia, Latin America and
Africa have become an integral part of the local food scene.

Street food in the Philippines is not a convenience for those who don’t have time
to cook, or an economic phenomena that flourishes during hard times. It’s already a
lifestyle (Fernandez, D., 1994). Street food micro-industries are vital for the economic
planning and development of many towns. But it seems that the contribution of street
food vendors to the economies of developing countries has been vastly underestimated
and neglected (Winarno, F.G. and Allain, A.). According to WEIGO (2015), economic
downturns have a big impact on vendors’ earnings. In 2009, an Inclusive Cities research
project found many street vendors reported a drop in consumer demand and an
increase in competition as the newly unemployed turned to vending for income.

In Davao City, there was an ordinance on street food was already passed to the
committee on health. The first idea was to ban street food vendors but the city
government realized that it is a part of our culture as Filipinos. If the ordinance is
approved, there will be a training center funded by the government for the street
vendors (Labrador, K., 2015). If that is the case, street food vendor’s population will
increase, and probably the number of street food consumers will be doubled.
Competitors will also develop. If things like this would happen, marketing practices
should also be develop to increase sale, to improve street food state, and to provide
adequate service to the consumer to satisfy their demands and needs.

Statement of the Problem

This study generally aimed to determine the marketing practices of street food
vendors in Roxas Avenue, Davao City dealing with different consumers or customers. In
particular, it aims to:

1. Determine the street food vendor’s quality of product services.

1.1 Product services
1.2 Price
1.3 Business location and environment
2. Provide efficient marketing practices that will improve or help to increase sales
and to provide adequate services.
3. Provide additional information about marketing practices of street food vendors in
our society. Specifically its impact to the society or to the consumers of their
products.

Hypothesis

The study tested the null hypothesis. It states that there are no factors that affect
the sales of street food vendors in Roxas Avenue. A range of marketing practices
identified doesn’t have any significant effect to improve the sale and services. The
identified marketing practices do not help the street food vendors to improve their sales
and services that will cater customers need.

Review of Related Literature

Review of related literature contains significant and related studies that have
contributed in conceptualizing and building of the present study.

Street Food

Oxford University Press (2015) defined street food as Prepared or cooked food
sold by vendors in a street or other public location for immediate consumption.
But according to Draper, A. (1996), street foods are an extremely heterogeneous food
category, encompassing meals, drinks, and snacks. They also show great variation in
terms of ingredients, methods of retail and processing, and consumption. Various
attempts have been made to define them, but the most widely cited definition is that of
FAO:

"Street foods are ready-to-eat foods and beverages prepared and/or sold by
vendors and hawkers especially in streets and other similar public places" (FAO 1989).

The central characteristic of street foods in this definition is their retail location,
that is "on the street." To differentiate street food vendors from formal sector food
establishments, such as restaurants, the Equity Policy Center (EPOC) adds the further
qualification that street foods are sold on the street from "pushcarts or baskets or
balance poles, or from stalls or shops having fewer than four permanent walls" (Tinker
1987). In terms of production, street foods may be centrally processed foods made by
the formal sector food industry, or they may be processed within the street food trade
either by the 4 vendor her/himself or another small-scale processor.

The Street Food Trade

The Nature of the Street Food Trade and its Economic Importance

Like other informal sector enterprises, street food enterprises are characterized
by the small scale of the operation, use of traditional food processing technologies, and
low capital costs that allow ease of entry into the sector (Tinker and Fruge 1982). Those
who participate in this sector are principally the urban poor and this has been seen by
some as an innovative response or coping strategy on their part when denied access to
more formal employment structures. As Atkinson (1992) points out, however, this view
originated in the 1970s against a backdrop of economic expansion; the macro-economic
context of the 1990s is very different and support of the informal sector should not be
seen as a panacea for the urban poor. Because of its very nature, the informal sector is
not enumerated by official data collecting agencies; thus official statistics on the street
food trade are virtually non-existent. The EPOC and Bogor projects and various FAO
studies, however, have shown that the street food trade generates a surprisingly large
volume of business, which involves large amounts of money and also provides a
competitive source of employment and income to millions of people. For instance, FAO
estimates that there are approximately 100,000 vendors in Malaysia whose collective
total annual sales amount to over $2 billion (Dawson and Canet 1991)! The EPOC
studies found that the annual volume of trade ranged from $67 million in Bogor, a city of
250,000 people, to $2 million in Manikganj, a small provincial town of 38,000 people.
The trade also provides an important source of employment and income; EPOC found
that the street food trade comprised from about 6 percent of the total labor force in
Zinguinchor, Senegal and Manikganj, Bangladesh to 15 percent and 25 percent in Iloilo
City, the Philippines, and Bogor, Indonesia, respectively (Cohen 1985). Although hard
work with long hours, the income derived is generally above earnings from alternative
sources of employment. The earnings of paid assistants, however, are often less. A
study in Uganda found that most vendors earned a favorable wage--the majority earned
more than the minimum government civil service wage (87 percent earned US $5-$20
per day) and none earned less than the minimum wage--but most assistants were paid
less than US $9 per month (Nasinyama 1992). 7 Despite the need for further
documentation, it can be seen that the street food trade makes substantial contributions
to these urban economies (Cohen, 1985). Street Food Enterprises Most street food
enterprises are single person or household-based. A study in Pune, India, for instance,
found that most vendors owned only one kiosk/stall or cart (only 12 per cent owned two
and very few more than two), and most received assistance, either from family
members (45 percent), paid workers (8 percent) or both (19 percent) (Bapat 1992).
Similarly, in Jamaica, 90 percent of vendors were single person enterprises and the
remaining 10 percent were joint ventures (Powell et al. 1990). A similar situation was
found in the EPOC and other studies; the one exception being a study of street food
vendors in Nigeria which found that, in addition to assistance from family members,
most vendors employed one or two paid assistants (FAO and Food Basket Foundation
International 1991). It is important to recognize that the street food trade is both a retail
and a productive activity: although the sale of street foods is the most visible part of the
trade, most street foods have been processed to some extent, much of which may have
occurred unseen off-street. The EPOC studies found that 75 per cent of vendors in the
Philippines, Indonesia, and Senegal and 42 per cent in Bangladesh had processed
some or all of the foods that they sold (Tinker and Cohen 1986). Because of this, the
trade should be seen as part of the whole food system, rather than just as a service or
retail activity (Cohen 1985; Weber 1987). The extent to which foods are processed, and
by whom, varies; some street food vendors also provide an outlet for foods processed
by others in the informal sector, and also, in some countries, for small- and large-scale
food processing industries in the formal sector (Barth 1983; Powell et al. 1990). More
information on these aspects of street foods is currently lacking, but, as discussed
further in the next section, it is vital to assess their suitability for fortification in specific
contexts.

Street Food Diversity

The diversity of street foods is extensive, as they vary widely not only from
country to country, but also from vendor to vendor. Street food ingredients are country
specific and mostly undocumented. There are so many varieties that it is impossible to
provide a menu of all the different street foods consumed around the world. The EPOC
studies found a vast range available in each location studied; a list of popular street
foods in Bogor alone contains nearly 300 items in total, including numerous varieties of
rice-based meals, fried snacks, traditional cakes, soups and porridges, drinks, and fruit
(Chapman 1984). The ingredients and means of preparation were equally diverse and
included meat, poultry, fish, seafood, eggs, cereal products, soya products, fruit, and
vegetables. They were fried, roasted, boiled, baked, steamed, or eaten raw. Street
foods can be grouped in various ways: by meal (meals, constituents of meals, snacks,
and drinks), by number and type of ingredients (simple and complex foods that contain
more than one main ingredient), and by level and type of processing (minimally
processed foods, such as fruit which may only have been peeled or sliced, traditionally
processed foods made by the vendor or another informal sector operative, and centrally
processed commercial foods). Although traditional foods form the bulk of items sold,
foods processed by larger-scale food manufacturers are an important category of foods
sold in some contexts (Powell et al. 1990; EPOC 1985). 12 The range of foods sold by
vendors in specific contexts varies. The EPOC studies and other studies in Jamaica and
Pune, India found that in most countries vendors sell more than one kind of product,
although many specialize in certain food types or product lines, such as rice- or noodle-
based dishes (Bapat 1992; Cohen 1985; Powell et al. 1990). Specialization in single
product lines was practiced only by a minority of vendors, except in Senegal where
there was some specialization by men and women in product lines (Posner 1983). This
gender specialization was not so pronounced in other countries, although in Indonesia
there was a trend for men to specialize in wheat-based noodle dishes and women in
rice dishes (EPOC 1985). In the EPOC studies, and in Jamaica and India, it was found
that the preparation and sale of traditional foods tended to be the preserve of women
(Bapat 1992; Cohen 1985; Powell et al. 1990). Cost and Availability One of the common
prejudices held against street foods is that they are less nutritious and more costly than
foods prepared at home. Although little quantitative information is currently available on
these aspects of street foods, the findings of the EPOC and other studies do not support
these assumptions. The cost of street foods is usually competitive compared with that of
foods purchased from larger food establishments, such as restaurants and fast food
outlets. Also, due to the sometimes high costs of fuel and ingredients in urban contexts,
economies of scale can create a street food cheaper than the same food prepared at
home (FAO 1989). Broader economic factors can also affect the cost of street foods
relative to home-prepared foods; the EPOC study in Nigeria noted that economic
recession led to an increased consumption of street foods because of the scarcity and
high cost of obtaining ingredients (Cohen 1985). Another study in Nigeria also noted a
rise in consumption of street foods following the implementation of structural adjustment
programs including currency devaluation (FAO and Food Basket Foundation
International 1991). The latter resulted in fewer meals being eaten at restaurants where
prices had risen. Competition between vendors may also keep prices low, although, as
FAO has pointed out, this can lead to purchasing of inferior raw materials that may have
implications for food safety (FAO 1989). Many vendors operate elaborate pricing
systems in which they may give regular customers or fellow traders a discount (Bueno
1988; Owens and Hussain 1984). Another factor that makes street foods a potentially
cost-effective food is time; EPOC has drawn attention to the fact that many traditional
foods involve lengthy preparation and the purchase of street foods allows women to
substitute time spent in food preparation for income-generating activities (Cohen 1985).
Street foods are an accessible source of food and vendors are a ubiquitous urban
phenomenon in most countries. Vendors choose their locations with care, concentrating
in a variety of strategic spots, which, contrary to expectation, are not in exclusively
commercial areas. EPOC found that, with the exception of Minia in Egypt, the number of
In Egypt, traditional food eaten at home took little time or effort to prepare, whereas the
1 preparation of the most popular street food sold was time-consuming. This
relationship between those foods eaten on the street and those eaten at home was
unlike any seen in the other countries studied. 13 vendors correlated closely with the
total urban population, which supports the assumption that there is a direct association
between the number of street food enterprises and increases in city size (Tinker 1987).
The highest density of vendors was found in Bogor where there were approximately
18,000 vendors in a city of about 250,000, which corresponded to 14 people per vendor.
In other countries the density ranged between 34 and 69 people per vendor, but in
Minia it was 255 people per vendor. It is suggested that latter figure might be due to the
atypical nature of the street foods sold there. 1 These studies point to the low cost,
accessibility and convenience of street foods as key factors explaining their growing
popularity, although these would need to be assessed in local contexts.

Marketing

A marketing concept at its beginning entered to the business sector

organizations and it is now increasingly attracting the interests of non-profit
organizations such as hospitals, libraries, health care services, and environmental and
charity services. Attempts have been made to apply marketing principles and theories to
service organizations, which are not aimed purely at obtaining a monetary profit, but the
achieving of customer satisfaction and the fulfillment of objectives of the organization
(Kotler Philip and Andreasen Alan R, 1991).
 On the other hand from the book of (Marketing Foundations) it defines marketing
as the process of creating, distributing, promoting, and pricing goods, services, and
ideas to facilitate satisfying exchange relationships with customers and develop and
maintain favorable relationships with stakeholders in a dynamic environment.

In consistent with the American Marketing Association (AMA), which defines

marketing as “the activity, set of institutions and processes for creating, communicating,
delivering and exchanging offerings that have value for customers, clients, partners, and
society at large.”

Blythe (2004) stated that marketing is the term given to those activities which
occur at the interface between the organization and its customers.it comes from the
original concept of marketplace where buyers and seller come together to conduct
transactions (or exchanges) for their mutual benefit.

While a Cole Ehmke, Joan Fulton, and Jayson Lusk state, that marketing your
business is about how you position it to satisfy your market’s needs. There are four
critical elements in marketing your products and business. There are the four P’s of
marketing.

Marketing Practices

In using marketing practices like the Pharmaceutical companies have come

under increasing scrutiny for their promotional practices (manner in which they market
and sell products to healthcare professionals and the general public) especially in light
of allegations of misleading advertisements on prescription drugs and improper gifts to
physicians. That gives a strict position on marketing practices so that the public can be
confident that the choices regarding their medicines are being made on the basis of the
merits of particular products and their needs as patients. (Novartis, 2014)
 According to Andreason (1995) referred marketing practices as “transactional by
nature and focus on price, product, place and promotion to determine what benefits and
costs they would consider acceptable to reach consumers effectively”.

In addition it is a method or technique that has consistently shown results

superior to those achieved with other means, and that is used as a benchmark
(WebFinance, Inc, 2015).

5 P’S of Marketing

Thinking about all the elements in your business, no matter how small they may
seem, can help you position your business and therefore your products and services in
the market.The 5 Ps are key marketing elements designed to help you think about your
business strategically. Put broadly, marketing is a mix of business activities that aims to
build your brand and business in a consistent way. If you want to grow your business,
the 5 Ps of marketing can help you think about the different areas of your business can
add value and offer a product or service different from your competitors. Working your
way through each of the Ps can help you think about which areas of your business you
can change or improve on, to help you meet the needs of your target market.

Product. According to Kotler Philip (1997) anything that can be offered to a

market to satisfy a need or want. Products, which can be marketed, include physical
goods, services, persons, places, organizations, and ideas. In the deeper sense, the
product is not a physical item but a perception of the consumer/user. Product means the
satisfaction of the customer rather than a physical good. Goods are ingredients of
customer satisfaction. Marketing mix is the process or devise that makes this customer
satisfaction. Product can be a physical object, service or a benefit offered by the
marketer. They have tangible as well as intangible attributes. Product can be
categorized as consumer products and ‘industrial products’.

In addition from Carl McDaniel (2012) the product includes not only the physical
unit but also its package, warranty, after-sale service, brand name, company image,
value, and many other factors. Product can be tangible good such as computers, ideas
like those offered by a consultant, or such as medical care. Products should also offer
customer value.

Also Lancaster Geoff and Reynolds Paul (1995) stated that consumer products
are finished products offered to the end-user while the industrial products are products
that are bought by other companies in order to make another product or sell them to
obtain a profit. Consumer goods can be identified in forms of convenience goods,
shopping goods, specialty goods, and unsought goods on the basis of their consuming
pattern, and frequency of buying. People purchase convenience goods in regularly and
frequently basis with a minimum effort of selecting. Customers evaluate suitability,
quality and price style characteristics when they buy shopping goods. Specialty goods
are those, which have a brand reputation, unique identification, and purchased
habitually requiring a special brand. There are some products which are not known to
buyers, or although, they are known, customers are not concern on them. Such
products like life-insurance, food processors, new machines, new books, magazines,
computer software etc. are identified as unsought goods.

Moreover the product variable also involves creating or modifying brand names
and packaging, and it may also include decisions regarding warrant and repairs
services. Decisions and related activities are important because they are directly
involved in creating products that address customers’ needs and wants.to maintain an
assortment of products, modify existing ones, and eliminate those that no longer satisfy
enough buyers or that yield unacceptable profits.

“Product” refers to the goods and services you offer to your customers. Apart
from the physical product itself, there are elements associated with your product that
customers may be attracted to, such as the way it is packaged. Other product attributes
include quality, features, options, services, warranties, and brand name. Thus, you
might think of what you offer as a bundle of goods and services. Your product’s
appearance, function, and support make up what the customer is actually buying.
Successful managers pay close attention to the needs their product bundles address for
customers. Your product bundle should meet the needs of a particular target market..
(Cole Ehmke, Joan Fulton, and et.al)

The product element refers to what you are offering as a whole - what exactly are
you selling to your customers. This includes the value added features, branding and
packaging as well as service and warranty terms.

With the foregoing statements, a product may now be defined more specifically
as follows: “A product is anything offered for sale by a firm to buyers to satisfy their
physical, social, symbolic, and psychological wants and needs.” Dr. Roberto Medina
(2008)

Price. According to Kotler Philip (1997) is a flexible and influential element, which
determines the revenue/profitability/ market share for the organization. On the
customer’s point price is a determinant factor because most customers depending on
their income level consider the price before they purchase the product. Price attributes
different names. “Price is all around us. You pay rent for your apartment, tuition for your
education and a fee to your physician or dentist. The airline, railway, taxi, and bus
companies charge you a fare; the local utilities call their price a rate; and the local bank
charges you interest for the money you borrow. The price for driving your car on
Florida's Sunshine parkway is a toll and the company that insures your car charges you
a premium…"The concept of price constitutes two different types: the monetary price,
and the social price. Monetary price implies the payment of certain sum by the
customer, and the social price refers to the additional effort that the customer must
make in order to obtain access to a product. Price for the product is set when the
organization introduces or acquires a new product. Price can be revised to match the
change of the product. Organizations have different objectives and offer various
products to different market segments. Their position of the market may be different
from each other. Strategies are defined to accord with these objectives. Therefore,
pricing as a mix is obviously based on the marketing objectives of the company. Some
organizations price their product mainly for the survival in the competition.

Of all the aspects of the marketing mix, price is the one, which creates sales
revenue - all the others are costs. The price of an item is clearly an important
determinant of the value of sales made. In theory, price is really determined by the
discovery of what customers perceive is the value of the item on sale. Researching
consumers' opinions about pricing is important as it indicates how they value what they
are looking for as well as what they want to pay. An organisation's pricing policy will
vary according to time and circumstances. Crudely speaking, the value of water in the
Lake District will be considerably different from the value of water in the desert.
(Business Case Studies LLP, 2015) Price

“Price” refers to how much you charge for your product or service. Determining
your product’s price can be tricky and even frightening. Many small business owners
feel they must absolutely have the lowest price around. So they begin their business by
creating an impression of bargain pricing. However, this may be a signal of low quality
and not part of the image you want to portray. Your pricing approach should reflect the
appropriate positioning of your product in the market and result in a price that covers
your cost per item and includes a profit margin. The result should neither be greedy nor
timid. The former will price you out of the market; pricing too low will make it impossible
to grow. As a manager, you can follow a number of alternative pricing strategies. In the
next column are eight common pricing strategies. Some price decisions may involve
complex calculation methods, while others are intuitive judgments. Your selection of a
pricing strategy should be based on your product, customer demand, the competitive
environment, and the other products you will offer. (Cole Ehmke, Joan Fulton, and et.al)

Carl McDaniel(2012) price is what a buyer must give up to obtain a product. It is

often the most flexible of the four marketing mix.

To make the product affordable to the target market and reflect the value of
benefits provided. Like David Salon have different pricing levels for haircut depending
on the Seniority (Suggesting skill) of the hairstylist chosen by the customer. Chiqui
Esrael- Go(2010)

The price element refers to the way you set prices for your products or services.
This includes discounts, sales, layby offers, advertised price and any price matching
services you may offer.

Your pricing will also depend on your business's position in the market. For
example, if you advertise your business as a budget car rental service, your pricing
should reflect that choice. If you're looking to grow your business you should consider if
your pricing reflects your business' positioning. MarketMyBiz (2014)

Promotion. According to J.J. Garusing Arachchige,(1994) it involves the function

that marketer communicates with customers in order to acknowledge the product.
Marketer needs to plan strategies to attract the present and potential customers to the
product. Product awareness with wholesalers, retailers, suppliers and others is made
through various communication tools. Usually, customer awareness is developed
through the company image and publicity. Simply the main objective of the marketing
communication is the persuasion of customers to purchase products of the company.
Marketer in the communication process identifies the target audience, set
communication objectives, and designs communication channels for the promotion of
the product. The message for the promotion is designed to get the attention, hold the
interest, arouse desires, and to perform action to buy. What to say, how to say, and
when to say' are answered by the format and the source of communication. Appropriate
tools must be decided for the promotion. Generally popular tools are advertising, sales
promotion, public relation and publicity, sales force and direct marketing.

In addition from (Cole Ehmke, Joan Fulton, and Jayson Lusk Department of
Agricultural Economics) “Promotion” refers to the advertising and selling part of
marketing. It is how you let people know what you’ve got for sale. The purpose of
promotion is to get people to understand what your product is, what they can use it for,
and why they should want it. You want the customers who are looking for a product to
know that your product satisfies their needs. To be effective, your promotional efforts
should contain a clear message targeted to a specific audience reached via an
appropriate channel. Your target audience will be the people who use or influence the
purchase of your product. You should focus your market research efforts on identifying
these individuals. Your message must be consistent with your overall marketing
image, get your target audience’s attention, and elicit the response you desire,
whether it is to purchase your product or to form an opinion. The channel you select
for your message will likely involve use of a few key marketing channels. Promotion
may involve advertising, public relations, personal selling, and sales promotions.

Promotion is the business of communicating with customers. It will provide

information that will assist them in making a decision to purchase a product or service.
The razzmatazz, pace and creativity of some promotional activities are almost alien to
normal business activities.

The cost associated with promotion or advertising goods and services often
represents a sizeable proportion of the overall cost of producing an item. However,
successful promotion increases sales so that advertising and other costs are spread
over a larger output. Though increased promotional activity is often a sign of a
response to a problem such as competitive activity, it enables an organisation to
develop and build up a succession of messages and can be extremely cost-effective.
(Business Case Studies LLP, 2015)

The promotion element refers to all the activities and methods you use to
promote your business and products. MarketMyBiz (2014)

To build and improve consumers demand using the 4 components called the
Promotion mix. Chiqui Escareal – Go (2010)

Promotion includes advertising, public relations, sales promotion, and personal

selling. Promotion’s role in the marketing mix is to bring about mutually satisfying
exchanges with target markets by informing, educating, persuading, and reminding
them of the benefits of an organization or a product. Carl McDaniel (2012)
 Place. Organizations provide their product to customers through an effective
position. Place mix represents the distribution channels that the organization utilizes to
convey their physical products or services to the end user. Distribution channel designer
must understand the service output levels that are expected by target customers. It is
necessary to have a clear understanding of what, how, why, where, and when
customers purchase, his waiting time for the purchase, the convenience that facilities
the customer when buying is completed, product variety for the choice and the service
backup which represents additional services associated with the product. Distribution
can be performed through single channel or multiplicity of channels. (Kotler Philip, 1997,
p.17):

According to (Cole Ehmke, Joan Fulton, and Jayson Lusk Department of

Agricultural Economics) “Place” refers to the distribution channels used to get your
product to your customers. What your product is will greatly influence how you distribute
it. If, for example, you own a small retail store or offer a service to your local community,
then you are at the end of the distribution chain, and so you will be supplying directly to
the customer. Businesses that create or assemble a product will have two options:
selling directly to consumers or selling to a vendor.

Although figures vary widely from product to product, roughly a fifth of the cost of
a product goes on getting it to the customer. 'Place' is concerned with various methods
of transporting and storing goods, and then making them available for the customer.
Getting the right product to the right place at the right time involves the distribution
system. The choice of distribution method will depend on a variety of circumstances. It
will be more convenient for some manufacturers to sell to wholesalers who then sell to
retailers, while others will prefer to sell directly to retailers or customers. (Business Case
Studies LLP, 2015)

While MarketMyBiz (2014) defines the place element refers to how you deliver
your product or service to your customers. This might include the physical location (e.g.
via a shopfront, online or a distributor), delivery methods as well as how you manage
your stock levels.

In line with the perception of Carl McDaniel (2012) place or distribution,

strategies are concerned with making products available when and where customers
want them.

Same with the idea of Chiqui Escareal-Go (2010) placement or distribution are
making the product conveniently available to the target market consistent with their
purchasing patterns.

People. According to MarketMyBiz (2014) the people element refers to yourself,

your staff and your customers. This covers customer service levels, as well as effective
communication and training for your staff. You'll need to consider both your staff and
customers if you're thinking of growing your business. For example, if you're thinking of
expanding your business online, you'll need to think about how your customers use the
internet, if they would feel comfortable purchasing your goods online and if they would
be willing to pay shipping costs for your products. You'll also need to consider staffing
elements. Like knowledgeable staffs or has a skills and a need to provide further
training for them.

Theoretical and Conceptual Framework

Significance of the Study

The study is conducted to benefit the following:

Street food vendors. The result of this study will improve the marketing
practices of street food vendors and will help them to identify the best way to
cater customer’s demands.

Researches. This research can provide existing data for improvement.

Assumption College of Davao. This research would be another

contribution to the collection of the Institution’s Research and Development
Department.

Businessman . the research will serve a basis in doing or conceptualizing

business that offers un common techniques or approach to the consumer or
target market.

Definition of Terms
 Key terms in this study are street food vendors and marketing practices.

Street Food - The term "street foods" describes a wide range of ready-to-eat
foods and beverages sold and sometimes prepared in public places, notably streets.
Like fast foods, the final preparation of street foods occurs when the customer orders
the meal which can be consumed where it is purchased or taken away. Street foods and
fast foods are low in cost compared with restaurant meals and offer an attractive
alternative to home-cooked food. In spite of these similarities, street food and fast food
enterprises differ in variety, environment, marketing techniques and ownership
(Winarno, F.G. and Allain, A.).

Marketing Practices- A method or technique that has consistently shown results

superior to those achieved with other means, and that is used as a benchmark
(WebFinance, Inc, 2015).

The requirements set out in the general clause entail a positive commitment on
the part of the business in that business and trade in the future must exercise good
marketing practice with reference to consumers, other businesses and public interests.
Independent Variable Dependent Variable

Marketing mix

o Product

services

Marketing Practices o Price

o Business

location and

environment

o people

Figure1. Conceptual Framework of the Study

Chapter 2
 METHODOLOGY

This chapter contains the discussion of research design, research subject,

research instrument, data gathering procedure and the statistical treatment of the data.

Research Design
This study made use of the descriptive survey method. The descriptive research
is devoted to the gathering of information about prevailing conditions or situations for
the purpose of description and interpretation. Aggarwal (2008) stated that this type of
research method is not simply gathering and tabulating facts but include proper
analysis, interpretation, comparisons, identification of trends and relationships. In this
view, the descriptive survey method was fit for the research design in order to know the
Marketing Practices of Street Food Vendors Perceived by Customers in Roxas Avenue
Davao City.

Research Subject
The respondents of this research study are the customers of Street Food
Vendors in Roxas Avenue Davao City. The researchers ask permission to street food
vendors customers through giving survey questionnaires.

The desired sample size was determined by using the maximum sample in
Slovin’s Formula. Presented in Table 1 are the respondents of the study. The 500
respondents for the marketing practices questionnaires are the customer of street food
vendors. A random sampling was used to determine the number of samples for each
barangay. According to the study of Harter (2008), random sampling referred to a
variety of selection techniques in which sample members are selected by chance, but
with a known probability of selection. However, Dasgupta et al., (2009) showed that with
proper sampling, the solution to the sub-sampled problem of a linear regression
problem is a good approximate solution to the original problem with some theoretical
guarantee.
Table 1
 Distribution of the respondents

Roxas Avenue No. of Respondents Percentage

Brgy. 32-D(Poblacion)

Brgy. 33-D(Poblacion)

Brgy. 34-D(Poblacion)

Total 500
 Research Instrument

To determine marketing practices of street food vendors perceived by customers

in Roxas Avenue Davao City, the researchers made a questionnaire which was used
during the interview with the respondents.

The following scales were used in determining the marketing practices of street
food vendors.

Range of Mean Descriptive Level Interpretation

4.50 – 5.00 Strongly Agree This means that the

respondents perceived the
item to be very satisfactory.

This means that the

3.50 – 4.43 Agree
respondents perceived the
item to be satisfactory.

This means that the

2.50 – 3.49 Neither Agree or
respondents perceived the
Disagree item to be fairly satisfactory.

This means that the

Disagree respondents perceived the
1.50 – 2.49
item to be least satisfactory.

.
This means that the
Strongly Disagree respondents perceived the
1.00 – 1.49
item to be very satisfactory.
Data Gathering Procedures

The researchers observed the following steps in data gathering.

Construction of questionnaires. The researchers then constructed the

questionnaires and were verified by the panel for its validation.

Statistical Treatment of the Data

This was used to determine the marketing practices of street food vendors in terms of
.