Marketing-strategies-by-application-based-transportation-on-students-of-the-top-four-universities-in-the-philippines-final.pdf

MARKETING STRATEGIES BY APPLICATION-BASED TRANSPORTATION ON STUDENTS OF THE TOP FOUR UNIVERSITIES IN THE PHILIPPINES -------------

A Thesis Submitted to Faculty of Arts and Letters University of Santo Tomas

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In Partial Fulfillment Of the requirements for the degree, Bachelor of Arts in Legal Management

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By

OGAYON, JULIENNE CELINE G. SERVAN, ARWIN PAUL T. April 05, 2018

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ABSTRACT Transportation is a vital part in almost all human activities. People coming from different points on the route to their workplaces, homes, schools and to places of their desire. However, transportation system in Metro Manila excessively aggravated through the years, which made transportation relatively inconvenient. Introduction of new concepts of public transportation transpires in the hopes of a decrease in the inconveniences of prevailing transport systems in the Metro. UBER and Grab offers same services as an ordinary taxi, without the hassle of how commuters traditionally get taxis. It is a smartphone-based service, wherein a commuter can avail of their service through the UBER and Grab’s application. UBER and Grab offers services that are that safe, convenient, yet inexpensive service. UBER and Grab has also been known to use different marketing strategies to attract potential customers every day. Application-Based modes of transportation are a popular preference by students in their use of transportation. This study aims to show the different marketing strategies used by application-based modes of transportation and how it has an effect on the choices of the students in using these. This study aims to show the advantages of UBER and Grab services and to also propose that UBER and Grab as one of the top choices of students from the top four universities. Keywords: transportation, marketing strategies, application-based, choices, preference, effect

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TABLE OF CONTENTS ABSTRACT ........................................................................................................... 1 ACKNOWLEDGMENT ....................................................................................... 4 CHAPTER I ........................................................................................................... 5 INTRODUCTION ............................................................................................... 5 OBJECTIVES OF THE STUDY....................................................................... 11 THEORETICAL FRAMEWORK ..................................................................... 12 CONCEPTUAL FRAMEWORK ...................................................................... 15 STATEMENT OF THE PROBLEM ................................................................. 18 HYPOTHESIS ................................................................................................... 19 SIGNIFICANCE OF THE STUDY .................................................................. 20 SCOPE AND LIMITATIONS .......................................................................... 21 DEFINITION OF TERMS ................................................................................ 22 CHAPTER II ....................................................................................................... 24 CHAPTER III ...................................................................................................... 48 RESEARCH DESIGN ....................................................................................... 48 SAMPLE SIZE AND SAMPLING DESIGN ................................................... 49 DATA COLLECTING INSTRUMENT ........................................................... 52

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DATA GATHERING PROCEDURE ............................................................... 53 DATA ANALYSIS ........................................................................................... 54 CHAPTER IV ...................................................................................................... 57 DESCRIPTIVE STATISTICS........................................................................... 57 ANALYSIS AND DISCUSSION ..................................................................... 59 HYPOTHESIS TESTING ................................................................................. 72 CHAPTER V ....................................................................................................... 76 CONCLUSION.................................................................................................. 76 RECOMMENDATIONS ................................................................................... 79 APPENDICES ..................................................................................................... 80 REFERENCES .................................................................................................. 80 LIST OF FIGURES AND TABLES ................................................................. 82 APPENDIX I ..................................................................................................... 84 APPENDIX II .................................................................................................... 92 APPENDIX III................................................................................................... 93

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ACKNOWLEDGMENT

Above all, the researchers would like to thank our dear Lord for all the strength and guidance He has given that led to the ability of the researchers to conduct this study. The researchers would also like to give thanks to their parents, immediate family and relatives for the support and motivation in producing this research. To the researchers’ friends and blockmates who offered all the help that they could to help the researchers in making this study a success, the researchers are grateful to have you. To the thesis adviser of this study, Mr. Alain Jomarie Santos, CPA, MBA, who gave his time and effort in guiding the researchers in creating a study that would benefit the country especially business people. To the statistician of this study, Ms. Janet Gail Dimapilis for her aid with her knowledge in statistics having taken up Bachelor of Science in Statistics at the University of the Philippines-Diliman. Her expertise in this field was a huge assistance to the researchers for this study. To the significant others of the researchers, Laira Jannella Guinto and Lorenzo Miguel Samonte for being an inspiration to the researchers in accomplishing great things.

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CHAPTER I THE PROBLEM AND ITS BACKGROUND I. Introduction In the busiest days of Metro Manila, it is estimated that the density of the population reaches around 20 million people, coming from different points on the route to their workplaces, homes, schools and other endeavors that requires transportation. All this activity is burdened due to a transport system that is heavily flawed. The demands for a safe and convenient mode of transportation has rapidly grown. With the conditions of trains either stalling in between stations or suffering technical glitches; buses traveling unsafely due to overloading passengers; and regular taxis which impose unreasonable exorbitant fees to the commuting public. The available modes of transportation regulated by the government is not enough to meet the demands for sufficient transportation needs of all the commuter– a problem of the transport officials that up to now cannot be elucidated with a viable solution. In almost all human activities, transportation is very essential. yet, public transportation through the years and up until now is continuously aggravating. The irritating inconvenience of a Filipino’s daily travel by public transport in the Metro is vast. An apparent hassle of transferring from one transportation vehicle to another, not to mention the duration between the transfers and sometimes the

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queueing which can add up to the span of travel time that could cause delay to one’s essential time. The lack of transportation modes is not only the problem of commuters, most commuters are also stressed out about the city traffic in the Philippines, especially in Metro Manila. Traffic is inevitable especially in cities because, one of the reasons is the rise in the sales of vehicles effectively increasing the density of cars on the road. This causes a struggle in getting a ride in public transports especially on holidays, paydays, and weekends because these days are the days where people are going out and going home more. A large part of commuters are students which is why they are affected by the worsening traffic in the country or in the city. In addition, the heavy traffic in Metro Manila is also caused by unmaintained infrastructures or the lack thereof, ineffective traffic management, and ultimately, the existence of undisciplined motorists causing clogs or even accidents. Students, being a large part of these commuters, specifically those who are studying around the University Belt or popularly known as the U-belt must have experienced heavy traffic in España Boulevard. España Boulevard is a road in Manila City where students are mostly passing through to get to their university or school. It has been known that España Boulevard is busiest roads in the city because

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aside from it being a flood prone area, most cars and public utility vehicles pass through here in order to reach its destination. Regular taxicabs are chosen as an option for public transport considering its convenience and privacy that at least reduces the burden of commuting. Apparently, the reputation of this taxicabs is dubious. Older models of taxi cabs which are still prominent contradict its convenience. When its air conditioning is broken, and/or the suspension of the car is bumpy, it can be very frustrating. With numerous number of taxi cabs that has this reputation, it may not be worth the higher fare rate. Another problem is a usual scenario, is when passengers struggle to get a taxi cab and commuters have to endure the rejection of reluctant taxi drivers due to personal reasons. That being the case, a new means for transportation is inevitable to at least decrease the inconveniences of the prevailing transport systems in the Metro. By having a one tap booking system from your mobile phones which will provide a service of transport that is not only convenient but also efficient in dealing with traffic by using the mobile application Waze. According to Rappler Philippines, “In the last couple of years, the Philippines has seen the entry of app-based ride-hailing services that provide passengers with transport options at the touch of a button. UBER and Grab are the

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best-known names in the industry, providing passengers with their own cars simply by using their smartphones.” But criticisms cannot be avoided in this. Due to the happenings or incidents around, especially the crimes being committed by people, commuters are trying to find a safer, more convenient, yet inexpensive alternate modes of transportation. UBER and Grab aim for that safe, convenient, yet inexpensive service. This is also a reason why commuters in the country choose to book a private ride in their smartphones rather than waiting on the side of the road for hours to get a ride home. Grab and UBER are also called as TNVS or Transport Network Vehicle System. The TNVS is referred to owners of private vehicles who provides transportation services or who operates using the UBER and Grab applications. UBER is an international transportation service that operates in approximately 655 cities in 77 countries. UBER partners or drivers use their own private vehicle and uses the UBER application to pick-up riders and drop them off their preferred destinations. UBER, according to riders is a convenient and a safe mode of transportation compared to public transportations. UBER, for drivers, provides them work with exceptional pays, also it is a convenient, on-hand work especially for drivers who have their own private cars. GRAB on the other hand, is Southeast Asia’s leading transportation service application. Just like UBER, Grab provides users or riders a private vehicle

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operated by the car owner, in just a tap of a button. Private vehicle drivers pick-up their passengers, also through the application, and drop them off in their designated drop off area. UBER and Grab are not only the application-based modes of transportation in the Philippines. Angkas has also made its name known to different commuters. Angkas is a professional on-demand motorcycle taxi service that allows commuters to safely and conveniently beat the traffic. In the past years, UBER, Grab, and Angkas has been the option for application-based modes of transportation. However, these modes of transportation have experienced different struggles in the legality of their service. Conflicts rose with the way their following policy given from the Land Transportation Franchising and Regulatory Board (LTFRB). Usually regards with license of their business. Ride-hailing services Grab and UBER are also considered Transportation Network Companies (TNCs), based on new transport categories created by the government back in May 2015. Nevertheless, LTFRB released a Memorandum, which suspends the acceptance and processing of application for UBER, Grab, and other ride-sharing services. Both UBER and Grab experience suspension, which made them, pay fines that would let them continue their services. Meanwhile, Angkas was considered illegal as of November 11, 2017. Riding on the law based on Republic Act 4136 or the Land Transportation and

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Traffic code, which mandate all vehicles to be registered and classified as public or private. Angkas could have been recognized in a relatively new category for Transport Network Vehicle Service (TNVS) too, same as Grab and UBER. Unfortunately for motorcycle riders, the Department of Transportation order which recognized TNVS (2015-011) only covers Sedans, Asian utility vehicles, Sports utility vehicles, vans, and other four-wheelers. With the problem of regulation with these application-based mode of transportation, the researchers have only chosen Grab and UBER as it was the only company that have pushed through with their platforms. These TNCs has paid for their legal fines and their service is back to normal. On the other hand, the researchers excluded Angkas as part of Application-based transportation, as it was declared illegal and will only be available upon the revision R.A. 4136, The challenge for the researchers is to determine the marketing strategies of application-based modes of transportation and how it affects the undergraduate students of the top four universities in the Philippines. According to the QS World University Rankings, an annual publication of University rankings by Quacquarelli Symonds, University of the Philippines- Diliman (UPD), Ateneo de Manila University (ADMU), De La Salle University (DLSU), and University of Santo

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Tomas (UST) are considered the top four universities in the Philippines which made the researchers focus on these four as the target population of this study. II. `

Objectives of the Study One’s marketing strategy has a great impact on the success of the business.

While application-based modes of transportation are widely used nowadays, it has also been known to use different marketing strategies to attract potential customers every day. These application-based modes of transportation have been a popular preference by students in their daily use of transportation. Thus, these marketing strategies are of great influence on the preference of the students in using it as a mode of transportation. This study aims: ❏ To determine if the different marketing strategies have an effect to students of the top four universities in the Philippines ❏ To know the effects of the different marketing strategies of these applicationbased transportations. ❏ To know which of the different marketing strategies used by application-based transportation is the most effective. ❏ To analyze the advantages and disadvantages of such marketing strategies to the students of the top four universities in the Philippines

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Theoretical Framework Marketing strategy is one of the functional strategies of the company which

makes up the overall business strategy. The marketing strategy of a business is very important, and its organization is influenced by all the four elements of the marketing mix. The company must constantly analyze its environment, evaluate the strategies employed by their competitors and examine the marketing mix elements. A company can develop a marketing strategy only by knowing exactly what the customers want, how much are they willing to pay for the good or service, what distribution channels are most optimal and what support measures can give the best results.

Figure 1.1 – Marketing Mix 4 Ps

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Marketing Mix 4 Ps E. Jerome McCarthy, a marketing expert created the Marketing 4Ps in the 1960s and since then, this classification has been used in the whole world. The Marketing 4Ps are the foundation of the idea of marketing mix. This concept is used in teaching the basic marketing classes as by understanding its basic concept, one shall achieve business success. The first element of the marketing mix is Product. It is an item built or produced or the service a company offers which satisfies the needs of a consumer. The product may either be tangible or intangible. The next element is Price, which is basically the amount a customer pays to enjoy the product. It is an important element of the marketing mix as it determines the firm’s profit and survival. The third element is Place or Distribution, which is the positioning of the product in a place that is accessible to potential buyers. This element also comes with the importance of determining your target market. Lastly, the element of promotion is a component of the marketing mix which boosts brand recognition and sales. This element comprises different elements like Sales Organization, Public Relations, Advertising and Sales Promotion.

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Figure 1.2 – Theory of Routine Mode Choice Decisions Theory of Routine Mode Choice Decisions The Theory of Routine Mode Choice Decisions (Schneider, 2013) describes how people may choose a travel mode for routine, non-work or school activities, such as shopping and other errands. Schneider’s theory is also based on a number of psychological theories, including Triandis' (1977) Theory of Interpersonal Behaviour (TIB), Theory of Planned Behavior, The Transtheoretical Model of Behavioral Change, Naturalistic Decision-Making, and Comprehensive Action Determination Model.

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IV.

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Conceptual Framework or Research Paradigm

SURVEY QUESTIONNAIRE

SEMI-STRUCTURED INTERVIEW

Figure 1.3 Conceptual Framework of the Study Different marketing strategies are used by companies to gain profit. The relative role of integrated marketing mix (advertising, price, product, and place) is vital to the success of the organization that aims for growth, sustainability, and positive transformation. Thus, it involves several socio-economic factors that affects consumer behavior which leads to customer satisfaction and loyalty to the company. The brand awareness strategy used by application-based modes of transportation is based on the experience they give their customers and the value of what the customers is getting versus how much they pay, in comparison with the common cab company as well us public vehicles. The quality of experience from

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these application-based modes of transportation will stand out from the competitors, more personal, on demand, and efficient approach to the car service industry. In positioning application-based modes of transportation aim for a better overall experience for the consumer. This experience will be achieved by providing vehicles that are in good condition with no cosmetic damage and vehicle models from 2014 above only. The experience and convenience shall be possible thru the user – friendly application. A one tap booking system that gets you a ride in minutes. The application increases efficiency and eliminates the hassle of hailing a cab. Through the application, these application-based modes of transportation can provide consistent, high-quality service to their highly valued customers. The affordability of these application-based modes of transportation shall be consistent. To keep customers coming back and maintain customers’ level of satisfaction, the rate of transportation will do away with their surge pricing tactics and maintain a consistent rate depending on the location. Application-based modes of transportation will expand its operation in large cities. Increasing number of drivers will decrease the wait times and be even more efficient for meeting the customers’ needs. Reaching a larger number of consumers to satisfy the needs for transportation at any given time.

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Social media advertising, ads strategically placed on websites frequently visited and word of mouth will make up most of application-based modes of transportation’s marketing communication strategy. Facebook, Instagram, and Twitter will be the outlet on how they could reach their consumers. Doing appropriate advertisements based on the website will be an efficient advertising technique. These are the marketing strategy used by Transport network vehicle service companies. All these strategies shall adapt to the needs of the consumer to promote the effectiveness and efficiency of their services offered. Consumer decision is the process by which consumers classify their needs, gather information, analyze alternatives and make the purchase decision. The analysis of the results conducted by the researchers in the surveys showed that undergraduate students of the top four universities in the Philippines are offered alternative services by these application-based modes of transportation that are more accessible, safer, affordable and convenient than what is usually provided by other modes of transportation. The result of the interview done by the researchers was made to determine the consumer behavior towards the services of UBER and Grab. Once their services provide these factors it will lead to consumer satisfaction and eventually make consumer loyal to their service. The more people

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think of them as the modes of transportation that can promote these factors shall grant a popularity that will lead to how consumers behave. V.

Statement of the Problem This study is aimed to find out the effects of the different marketing

strategies of application-based modes of transportation on students. Especially, this study sought to answer the following questions: 1. Do the different marketing strategies of application-based transportation have an effect on students? •

Does the Price of application-based transportation have an effect on students?

•

Does the Product of application-based transportation have an effect on students?

•

Does the Promotion of application-based transportation have an effect on students?

•

Does the Place/Distribution of application-based transportation have an effect on students?

2. What are the effects of the different marketing strategies used by application-based transportation? 3. Which of the effects of the different marketing strategies of applicationbased transportation has the greatest effect on students?

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4. What are the advantages and disadvantages of application-based transportation to students of the top four universities in the Philippines? VI.

Hypothesis

Null Hypothesis: The different marketing strategies used by application-based transportation do not have an effect on students in choosing their mode of transportation. •

The Price of application-based transportation does not have an effect on students.

•

The Product of application-based transportation does not have an effect on students.

•

The Promotion of application-based transportation does not have an effect on students.

•

The Place/Distribution of application-based transportation does not have an effect on students.

Alternative Hypothesis: The different marketing strategies used by application-based transportation do have an effect on students in choosing their mode of transportation. •

The Price of application-based transportation does have an effect on students.

•

The Product of application-based transportation does have an effect on students.

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The Promotion of application-based transportation does not have an effect on students.

•

The Place/Distribution of application-based transportation does have an effect on students.

VII.

Significance of the Study Marketing strategies is very important not only for a business organization

to plan how to garner more sales, but it is also beneficial for the consumers to know how they are being affected by these different marketing strategies particularly the strategies being used by application-based modes of transportation to the students of the Top (4) Four Universities in the Philippines. This study shall be beneficial to the following: ● Parents Most students depend on their parents for allowances for their everyday necessities, thus, this study will able to help the parents of the millennials to better understand the preference of the youth today when it comes to modes of transportation. ● Researchers The researchers will be able to know and understand the different external factors that may be affecting their own classmates as they may be able to help them by understanding their behavior and give ways on how to be motivated in school.

● Application-Based Modes of Transportation Users

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Students not only the ones who are subjects of this study, but every consumer who use application-based modes of transportation may better understand their fellow consumer’s behavior towards these ● Application-Based Transportation Companies (UBER and Grab) Knowing how consumers are affected by the different marketing strategies they use will enable them to further create plans that will help their companies gain more profit and attract more consumers while making a stronger relationship with their existing consumers. This study shall give UBER and Grab the privilege to have an accessible study which is directly aimed at their consumers and their company’s behavior which came from a third-person surveyor. ● Future Application-Based Transportation Companies As marketing strategies are very much needed for a business to grow and succeed, future investors on application-based transportation may better grasp the marketing strategies which are more effective for their companies to gain more customer satisfaction. VIII. Scope and Limitations This study is will primarily cover the effect of the marketing strategies or the promotion of the application-based modes of transportation companies among the top 4 universities in the Philippines. According to the QS World University Ranking, the top 4 universities located in the Philippines are the University of the

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Philippines- Diliman (UPD), Ateneo de Manila University (ADMU), De La Salle University (DLSU), and University of Santo Tomas (UST). The researchers have limited the target population to undergraduate college students of the said top four universities above. The reason why the researchers limited the target population is that they have presumed that most students from the graduate school use privately owned vehicles for their convenience in transportation, while this study is limited to those students who use public transportation. Moreover, since the researchers chose undergraduate students from the top four universities, it is reasonable to limit the scope of location to Metro Manila. IX. ●

Definition of Terms Application-Based Transportation – an application-based transportation

is an application, or a program downloaded in the phones of the users for faster and more convenient booking services. ●

UBER – a location-based application where UBER partners or drivers use

their own private vehicle and uses the UBER application to pick-up riders and drop them off their preferred destinations ●

Grab - Southeast Asia’s leading transportation service application. Just like

UBER, Grab provides users or riders a private vehicle operated by the car owner, in just a tap of a button. Private vehicle drivers pick-up their passengers, also through the application, and drop them off in their designated drop off area.

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Marketing Strategy - is a business' overall game plan for reaching people

and turning them into customers of the product or service that the business provides. ●

Transport Network Vehicle System (TNVS) - The TNVS is referred to

owners of private vehicles who provides transportation services or who operates

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CHAPTER 2 Review of Related Literature This chapter is an effort to review academic books, articles, journals, and other studies that are related to our study on the effects of different marketing strategies that are being used by application-based modes of transportation on the students of the top four universities in the Philippines namely University of the Philippines- Diliman, Ateneo De Manila University, De La Salle University, and University of Santo Tomas, as we aim to see the underlying relationship between these marketing strategies used by application-based modes of transportation to the students of the top four universities. Marketing to Millennials Born into an era when smartphones are abundant, and texting is a figure in communication, Millennials fluently speak the digital language. Millennials seek out bands in social media and value a social presence. Millennials use social media for consumer research and purchasing decision. Marketing Marketing is managing profitable customer relationships. The two-fold goal of marketing is to attract new customers by promising superior value and keep and grow current customers by delivering satisfaction. Broadly defined, marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. In a

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narrower business context, marketing involves building profitable, value-laden exchange relationships with customers. Hence, we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. (Kotler, P., Armstrong, G., Cunningham, P.H. (2005)) Marketing is the process by which organizations anticipate and satisfy their customers to have mutual benefits. (Baines, Fill) Marketing Process

Figure 2.1 – Marketing Process In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity. (Kotler, Armstrong, Cunningham, 2005) Marketplace and Customer Needs The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation which includes the basic physical needs, social needs and individual needs. Physical needs include food, clothing, warmth, and safety. Social needs include belonging and affection. Lastly, individual needs

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include knowledge and self-expression. These needs are a basic part of the human makeup. Wants are the form human needs take as they are shaped by culture and individual personality. When backed by buying power, wants become demands. Given the wants and resources, people demand products with benefits that add up to the most value and satisfaction. Service Marketing Services marketing stresses the intangible nature of an offering, including the need to manage customer expectations levels of service quality and customer experience. (Baines, Fill) There are differences in the way that intangible aspects of a product need to be marketed, and there are different information needs on the part of the consumers. In addition, marketers of physical products have found that enhancing the services element of their products is a good way to add value for the consumer. (Blythe, 2006) Market Offerings Consumers’ needs and wants are fulfilled through what we call market offerings, these are some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. These market offerings are not only limited to physical products as it includes services, activities or benefits offered for sale that are essentially intangible and does not result in the ownership of anything.

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Markets A market is the set of actual and potential buyers of a product or service. These buyers share a need or want that can be satisfied through exchange relationships. Marketing means managing markets to bring about profitable customer relationships. Sellers must search for buyers, identify their needs, design good market offerings, set prices for them, promote them, and store and deliver them. Activities such as consumer research, product development, communication, distribution, pricing, and service are core marketing activities. Societal Marketing Concept Societal marketing concept questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare. The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being. Marketing Strategy Marketing strategies are decisions and actions about segmenting and targeting markets; launching products and positioning brands; pricing and distributing; and managing supplier, intermediary, and customer relationships. The strategies reflect the difficult choices that managers make about which markets to enter, which products to launch, which customers to serve, which distribution channel to select, what prices to charge, where to place the advertisements, and how

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to position the offerings. The goals of marketing strategy are to satisfy consumer needs and wants better than the competition and achieve and sustain a competitive advantage. Sustainable competitive advantage is achieved by building relationships with customers, partners, and channel members; offering appropriate products; identifying the timing for changes in relationships and product offerings; and deploying sufficient resources. (D. Sudharshan (1995), Marketing Strategy, Englewood Cliffs, NJ: Prentice Hall.) According to Cravens et al. (2009), the development of marketing strategy in the complex and challenging business environment requires forming a strategic vision and selecting the marketing targeting and positioning strategy for each marketing target. Customer Driven Marketing Strategy To succeed in today’s competitive marketplace, companies must be customer centered. They must win customers from competitors and then keep and grow them by delivering greater value. But before it can satisfy customers, a company must first understand customer needs and wants. Thus, sound marketing requires careful customer analysis. Companies know that they cannot profitably serve all consumers in each market— at least not all consumers in the same way. There are too many kinds of consumers with too many kinds of needs. Most companies can serve some segments better than others. Thus, each company must divide up the total market, choose the

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best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, market targeting, differentiation, and positioning.

Figure 2.2 - Marketing Strategies – Marketing Mix by E. J. McCarthy Marketing Mix 4 Ps "Marketing mix" is a general phrase used to describe the different kinds of choices organizations must make in the whole process of bringing a product or service to market. The 4Ps is one way – probably the best-known way – of defining the marketing mix and was first expressed in 1960 by E. J. McCarthy. The 4Ps are: •

Product

•

Price

•

People

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Promotion The 4Ps of marketing is a model for enhancing the components of your

‘marketing mix’ – the way in which you take a new product or service to market. It helps you to define your marketing options in terms of price, product, promotion, and place so that your offering meets a specific customer need or demand. As markets have become more competitive, the extent to which the marketing planner can differentiate purely based on the traditional 4ps has become increasingly more difficult and more questionable. (Gilligan and Wilson) Marketing Mix 7 Ps According to Booms and Bitner (1981). marketing management is the concept of the marketing mix. The marketing mix is not a theory of management that has been derived from scientific analysis, but a conceptual framework which highlights the principal decisions that marketing manager’s make in configuring their offerings to suit customers’ needs. (Palmer, 2004). Booms and Bitner (1981) defined 7Ps of the marketing mix as follows: i.

Product - It must provide value to a customer but does not have to be tangible at the same time. Basically, it involves introducing new products or improving the existing products.

ii.

Price - Pricing must be competitive and must entail profit. The pricing strategy can comprise discounts, offers, Lin 10635 and the like.

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Place - It refers to the place where the customers can buy the product and how the product reaches out to that place. This is done through different channels, like internet, wholesalers and retailers.

iv.

Promotion - It includes the various ways of communicating to the customers of what the company should offer. It is about communicating about the benefits of using a product or service rather than just talking about its features.

v.

People -This refers to the customers, employees, management and everybody else involved in it. It is essential for everyone to realize that the reputation of the brand that you are involved with is in the people's hands.

vi.

Process - It refers to the methods and process of providing a service and is hence essential to have a thorough knowledge on whether the services are helpful to the customers, if they are provided in time, if the customers are informed in hand about the services and many such things.

vii.

Physical (evidence) - It refers to the experience of using a product or service. When a service goes out to the customer, it is essential that you help them see what they are buying or not. For example- brochures, pamphlets, etc., serve this purpose.

Price Price, as defined by Boone and Kurtz, is the exchange value of a good and service. The term exchange value does not necessarily mean money, instead, it

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means anything of value that can be exchanged for a product in the marketplace. Another definition of price which was defined by Maria Victoria M. Ac-Ac, price is the amount of money charged for a product or service or the sum of the values that consumers exchange for the benefits of having or using the product or services. As price does not always denote money, in the earlier times, a product can be exchanged for another product with the same value. This kind of exchange is called barter. Also, throughout most of history, prices were set by negotiation between buyers and sellers. However, in the 21st century, price usually refers to the amount of funds required to purchase a product (Boone & Kurtz, 2013). In an economy, setting prices are both dynamic and difficult due to certain factors and variables. Price Strategies The specific strategies firms use to price goods and services grow out of the marketing strategies they formulate to accomplish overall organizational objectives. Several firm's marketers may set the price of their product to attract customers across a wide range. Another group of marketers may set prices to please to a small segment of a larger. Low price is an important and highly visible way of attracting customers. Also, another group of marketers may simply attempt to match competitors' pricing strategies. (Boone, Kurtz 2013) Competitive pricing strategy are relied by many organizations as their competitive weapon. Price Quotations

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Industry conditions, including competitive trends, cost structure, and traditional practices along with the policies of individual firms are the basis on the best method for quoting prices. A quotation is a fixed price offer that can't be changed once accepted by the customer. Pricing Policies The important information to buyers as they assess the firm’s total image is contributed by pricing policies. It provides an overall framework and consistency that guide day-to-day pricing decisions. Generally, it is the guideline that reflects marketing objectives and influences specific pricing decisions. Pricing policy also used to guide competitive efforts. It involves psychological pricing, price flexibility,

product-line

pricing,

promotional

pricing

and

price-quality

relationships. Psychological pricing is a pricing policy where it applies the belief that certain price ranges or prices make products or services more attractive to buyers or consumers. Price flexibility is to set one price that applies to customers or to permit variable prices to different customers. One price policies apply to mass-marketing programs, while variable pricing applies to larger and bulk purchases. Product-line pricing is the practice of setting limited number of prices for a selection of merchandise and marketing different product lines at each price levels.

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Promotional pricing uses a lower-than-normal price as a temporary ingredient in the firm’s marketing strategy. An example of promotional pricing is a buy one take one promo. Product A product is defined as a bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs, it can be a tangible or intangible item that satisfies needs. A market designs a product based on the people’s want satisfaction rather than the object. A product is a key element in the overall market offering which includes both tangible goods and services. Goods Goods are defined as tangible products that customers see, hear, touch, and smell. Goods are what people often see displayed in malls such as, shoes, clothes, etc.

Services Services are intangible tasks that satisfy the needs of consumer and business users. Unlike goods, services are intangible which means that services do not have physical features consumers can see nor touch prior to purchase. It is also inseparable from the service providers. This means that whatever services they avail is synonymous to the professionalism of the provider themselves. An example of this is a lawyer giving his/her client some advice about the client’s case. Also,

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buyers play an important role in the distribution of services. Services require interaction between the buyer and the seller in order for the seller to provide the service purchased. Quality as a product strategy Markets in a competing environment always make sure that the product they offer is of quality. Customers, on the other hand, also canvass products of high quality with a reasonable price. Quality is a key component to a firm’s success in a competitive marketplace, and to achieve quality products, the company efforts to create high-quality products and services which is referred to as Total Quality Management. Total Quality Management (TQM) expects all of a firm’s employees to continually improve products with the goal of achieving customer satisfaction. Quality products are what satisfy a customer’s needs and wants.

Product Mix Product mix is defined as the company’s assortment of product lines and individual product offerings. Product mix allows the firm’s sales opportunities to be maximized within the limitation of the firm’s resources. It is measured according to width, length, and depth. The product mix width is the number of product lines the firm offers. The product mix length refers to the number of different products a firm sells. The

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product mix depth refers to the variations in each product the firm markets in its mix. Product lifecycle Products pass through stages or cycles throughout its life. A product’s progression goes through four stages namely, introductory stage, growth stage, maturity stage, and growth stage. The first stage of a product’s lifecycle which is the introductory stage is where the firm works to stimulate sales of a new-market entry. In this stage, the firm use promotional campaigns in order to make its product known to the public consumers. Promotional campaigns acquaint the public to the firm’s new product and the public begins to accept the product. The second stage is the growth stage where the firm begins to realize extensive profits from the investment of its product. In this stage, sales volume rises rapidly because customers make initial purchases and repurchases of the product. The third stage is the maturity stage where industry sales level out. During the early part of this stage, sale of the product category continues to grow. However, in the later part, the sales might go down due to the entrance of new competitors in the market. The last stage is the decline stage where decline in the total industry sales occur due to the shift in consumer preferences. Place

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Place refers to the channel, or the route, through which goods move from the source to the final user. Place could be the intermediaries, distributors, wholesalers and retailers. Types of Markets Products are usually classified into two – consumer products and business products. Consumer products are bought by consumers for their personal use such as, necessities, clothing, cell phones, etc. Target Marketing Target markets which is a set of buyers sharing common needs or characteristics that the company decides to serve. Identifying them involves a 3step process 1. Segment the market 2. Evaluate segments 3. Choose one or more segments for targeting Segmentation and targeting provides numerous benefits, long familiar to corporate sector marketers who “know they cannot appeal to all buyers in their markets, or at least not all buyers in the same way.” Market segmentation distinguishes traits of a certain group of consumers and tries to isolate them from the overall market. In order to develop a successful marketing strategy, the firm must understand the group of consumers’ characteristics such as age, gender, location, income, and buying patterns. These

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characteristics plays a vital role in the development of a successful marketing strategy. Strategies for reaching target markets To match the firm’s product offerings to the needs of particular target markets, the firm spends a lot of time developing applicable strategies that is vital to the firm’s marketing success. There are four basic strategies for consumer satisfaction namely, undifferentiated marketing, differentiated marketing, concentrated marketing, and micromarketing. Undifferentiated marketing, also called mass marketing, the firm only produces one product with a single marketing mix and introduces the product to all its customers. Although it is more common in the past, this kind of strategy has its downfalls. One of it is where if a firm only satisfy its consumers with one product, the firm might lose its consumers to its competitors offering a more specialized product. Differentiated marketing, firms promote different kind of of products with different marketing mix to satisfy smaller groups of consumers. By following this strategy, a firm can produce more sales compared to undifferentiated marketing. Concentrated marketing, also known as niche marketing, the firm focuses its efforts on satisfying the needs of a single market segment. Micromarketing focuses on narrow and basic level of characteristics such as age, lifestyle, zip code, and even individual themselves.

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Promotion Promotion is done to introduce a product to the people and make them aware of the product to increase its popularity and sales. It is an incentive tool to increase short-term sales. Tools of Promotion The first tool of promotion is advertising. Advertising is a paid promotion used by the firm to introduce its products to the public. It may be in television commercials, billboards, radio broadcasts, etc. The second tool of promotion is direct marketing. Direct marketing is a tool where there are no other intermediaries used other than direct communication between the buyer and the seller. This kind of promotion reduces the costs of a company. The third tool of promotion is public relations. Companies need constant communication with its employees, customers, and different stakeholders. The company would not survive if there is no constant communication between them. This kind of service is done by the public relations. The major function of the public relation is to support product publicity, create and maintain the corporate image, and guide management with respect to public issues. The fourth and last tool of promotion is sales promotion. It is a marketing activity other than personal selling, advertising, and publicity that enhance consumer purchasing.

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Four Sales Channels The first channel is over-the-counter selling. This is the most frequently used sales channel. Over-the-counter sales is a personal selling in which customers and buyers meet at the buyer’s business place. The second channel is field selling. It involves making calls on existing customers at their businesses or homes and on a face-to-face basis. This type of selling is more expensive than other selling options mainly because it involves travelling. The third channel is telemarketing. It is a selling process where it is conducted through a phone call and serves two general purposes namely, sales and service, and two general markets, namely, business-to-business and business-tocustomer. The fourth and last channel is inside selling. Inside selling is done through phone, mails, and electronic commerce or e-commerce. Sales Tasks The first sales task is order processing. This task involves both field selling and telemarketing. It is selling mostly at the wholesale and retail levels and involves a process. The order process takes the following steps: (1) Identify consumer needs (2) Point out the need to the customer and (3) complete the orders. The second sales task is creative selling. It is a personal selling where the salespeople spend time planning new strategies to seek new customers by proposing

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innovative solutions to a customer’s needs. It is generally used to develop a new business unlike, order processing. The third and last sales task is missionary selling. It is an indirect selling method where the salespeople promote the firm’s goodwill by educating the customers and providing technical and operational assistance. Missionary sales often offer sales incentives. The Sales Process The personal sales process has seven sequences of activities: (1) Prospecting and Qualifying. Prospecting is the process of identifying potential customers. Prospecting is a long but necessary process. It comes from different sources such as the internet, previous customers, family and friends, etc. Qualifying, on the other hand, is the process of determining if the prospect is really a potential customer. A prospect may be able to like a firm’s product but may not have the means to buy its product. (2) Approach. It is the initial contact of the salesperson with the prospective customer. (3) Presentation. It is the conveyance of the firm’s marketing message to the potential customer through the salesperson. Presentation involves describing the firm’s product’s major features and relating it to the needs of the potential customer.

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(4) Demonstration. This process is one of the most important part of personal selling. Demonstration is where the buyer gets a chance to test or see how the product works before purchasing it. (5) Handling objections. Objections is the expression of resistance by the prospect for certain reasons and it is reasonable to expect objections. For a salesperson, use objection as an opportunity to reassure the buyer about the features of the product or suggest a product that better suits the customer’s needs. (6) Closing. This is the point where the salesperson asks the prospect to make a purchase decision. (7) Follow-up. It is the after-sale activities that determines if the individual who made the purchase will become a repeat customer. Sales Promotion Sales promotion is a marketing activity other than personal selling, advertising, and publicity that enhance consumer purchasing. Consumer-oriented sales promotions encourage repurchases by rewarding current users, boosting sales of complementary products, and increasing impulse purchases. Some examples of consumer-oriented sales promotions are coupons, refunds, samples, premiums, contests, etc. Social Media Marketing The Social Web is all about what your community of supporters can do to help you build your business. Social Media is a participatory online media where

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news, photos, videos and podcasts are made public via websites through submissions. Consumer Behavior Marketing management relies on an understanding of how customers make decision and their likely reaction to the different elements of the marketing mix. In this context, not only physical activity of purchasing but also to related prepurchase and post-purchase activities is included in consumer behavior. Consumer behavior is defined as ‘the decision process and physical activity of individuals engage in when evaluating, acquiring, using and disposing of goods and services. (Loudon and Della Bitta, 1993)

Figure 2.3 Engel, Kollat and Blackwell developed the EKB model of Consumer Behavior The above diagram shows different subjects which are concerned with consumer behavior. Engel, Kollat and Blackwell developed the EKB model of consumer

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behavior, which later renamed as CDP (Consumer Decision Process) model, and which follows seven stages. These are: 1. Need Recognition. The individual recognizes that something is missing from his or her life. 2. Search for information. This information search may be internal (remembering facts about products, or recalling experiences with them) or external (reading about possible products, visiting shops, etc.) 3. Pre-purchase evaluation of alternatives. The individual considers which of the possible alternatives might be best for fulfilling the need. 4. Purchase. The act of making the final selection and paying for it. 5. Consumption. Using the product for fulfilling the need. 6. Post-consumption evaluation. Considering whether the product actually satisfied the need or not, and whether there were any problems arising from its purchase and consumption. 7. Divestment. Disposing of the product, or its packaging, or any residue left from consuming the product. Theory of Routine Mode Choice Decisions

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Figure 2.4 Theory of Routine Mode Choice Decisions The theory of routine mode choice decisions (Schneider, 2013) describes how people may choose a travel mode for routine, non-work or school activities, such as shopping and other errands. Schneider’s theory is also based on a number of psychological theories, including Triandis' (1977) Theory of Interpersonal Behaviour (TIB), Theory of Planned Behavior, The Transtheoretical Model of Behavioral Change, Naturalistic Decision-Making, and Comprehensive Action Determination Model. UBER UBER is a convenient, inexpensive and safe taxi service. It lets you hire a private driver to pick you up and take you to your destination with the tap of a

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button on any smartphone device. A location-based app that makes hiring an ondemand private driver. A nearby driver often arrives to pick you up within minutes and you can even watch as your driver is en-route to pick you up. According to UBER’s official website, on a snowy Paris evening in 2008, Travis Kalanick and Garrett Camp had trouble hailing a cab, so they came up with a simple idea—tap a button, get a ride. What started as an app to request premium black cars in a few metropolitan areas is now changing the logistical fabric of cities around the world. UBER represents a flexible new way to earn money for the men and women who drive with them. UBER helps in strengthening local economies, improve access to transportation, and make streets safer. As of today, UBER is available in San Francisco and 632 other cities worldwide Grab Grab is a technology company that offers wide range of ride-hailing and logistics services through its app in Malaysia and neighboring Southeast Asian nations such as Singapore, Indonesia, Philippines, Vietnam, Thailand and Myanmar. According to Grab’s official website, it was 2012 and legend has it, a few friends were enjoying some tea together. As is common with Southeast Asians, they started ranting about how hard it was to get a taxi. But afterwards, they did something uncommon. They decided to solve the problem. They started us, Grab (then MyTeksi). Pretty soon, our simple goal had transformed into something

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bigger – to make Southeast Asia a better place. Today, Grab is present in six countries across the region. Grab implements these measures to assure the safety of their platform: ● Screening Every driver and vehicle are screened upon registration and must maintain a star rating above a set minimum. ● Training & Code of Conduct We continually improve our training system and Code of Conduct to ensure a high level of service. ● Safety Features We’re always innovating for your safety. In fact, we introduced the first “Share Your Ride” feature in the industry. ● Insurance & 24/7 Support We’ve got you covered with additional Personal Accident coverage, 24/7 call centers, and emergency response teams.

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CHAPTER 3 RESEARCH METHODS I.

Research Design This study aims to determine the effects of the different marketing strategies

of application-based modes of transportation to the students of the top four universities in the Philippines. The independent variable is the undergraduate students of the Top Four Universities in the Philippines namely, University of the Philippines- Diliman, Ateneo De Manila University, De La Salle University and University of Santo Tomas. While the dependent variable are the effects of different marketing strategies used by application-based modes of transportation. In gathering data, the researchers will make use of the two methods, the Quantitative method and Qualitative Method. For this study, the researchers will be using the Mixed Method which is a combination of the Quantitative method and the Qualitative method. Mixed methods research represents more of an approach to examining a research problem than a methodology. Mixed method is characterized by a focus on research problems that require, 1) an examination of real-life contextual understandings, multi-level perspectives, and cultural influences; 2) an intentional application of rigorous quantitative research assessing magnitude and frequency of constructs and rigorous qualitative research exploring the meaning and understanding of the constructs; and, 3) an objective of drawing on the strengths of

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quantitative and qualitative data gathering techniques to formulate a holistic interpretive framework for generating possible solutions or new understandings of the problem. and other proponents of mixed methods argue that the design encompasses more than simply combining qualitative and quantitative methods but, rather, reflects a new "third way" epistemological paradigm that occupies the conceptual space between positivism and interpretivism. (Tashakkori and Creswell, 2007) The Mixed Method will help the researchers to collect and analyze quantitative data using the survey research method while using interview research method for qualitative data. The researchers will make use of the qualitative results to assist in explaining and interpreting the findings of a quantitative study. To exhibit the abovementioned approach, questionnaires will be distributed among a specific number of undergraduate students per university. This would help in analyzing factors that affects the students’ preference in whether they would choose application-based modes of transportation than the other modes of transportation available to them. It is also an aid to determine if they are in favor of choosing the service of these companies versus the typical modes of transportation. II.

Sample Size and Sampling Design The estimated total number of undergraduate students of the top four

universities of the Philippines is 66,790. The University of the Philippines- Diliman has a total number of 13,322 undergraduate students as of August 18, 2017 as stated

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in the university website. Ateneo De Manila University has 7,739 undergraduate students as stated in their LinkedIn profile. According to De La Salle University’s official university website, they have a total number of 13,861 undergraduate students. The University of Santo Tomas has a total number of 31,868 undergraduate students as they released a publication material on the number of enrollees for the Academic Year 2017-2018 first semester. A total sample size of 398 undergraduate students from the top four universities of the Philippines will be used for this study. In determining the sample size, the researchers used Slovin’s Formula:

n = sample size N = Total Population e = Margin of Error (0.05) as the maximum The researchers also used the Stratified Random Sampling to determine the number of respondents from each University for the quantitative research questionnaires. Stratified Random Sampling is a technique of breaking the population of interest into groups and selecting a random sampling from each group. (Australian Bureau of Statistics, 2017) The formula in doing Stratified Random Sampling is:

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(Total # of Population/Total # of Population per Strata) x Sample size Number of Population per Percentage

respondents per

Strata Strata University of the 13322

20%

79

7739

11%

46

13861

21%

83

31868

48%

190

66790

100%

398

Philippines- Diliman Ateneo De Manila University De La Salle University Manila University of Santo Tomas Total

Table 3.1 Computation for the Number of Respondents For the interview, the researchers have decided to have a total of forty (40) interviewees from the top four universities. The number of interviewees were settled by calculating the ten percent (10%) of each population of each university. This resulted to having 8 students from the University of the Philippines- Diliman, 5 students from the Ateneo De Manila University, 8 students from the De La Salle University and 19 students from the University of Santo Tomas shall be part of the interview. Using criterion sampling to select the interviewee which looks all cases

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that meet some criterion yielded from the survey questionnaires. The researchers collected contact information from the survey questionnaires to be able to contact the selected respondents for the interview. III.

Data Collecting Instrument The general objective of this research is to identify the different effects of

the marketing strategies of application-based modes of transportation. Thus, the researchers chose the mixed-method research design which uses both quantitative and qualitative methods of research. Survey/Questionnaires will be used to collect data for the quantitative method, while the researchers will be conducting interviews, a qualitative research method, to gather data that are more specific. The researches will be using both the direct and indirect mode of collecting data. The indirect method or the paper and pencil method is a technique where the researchers prepare questions that are essential to the subject of the study and that will help in answering the research inquiries and problems. The questions are incorporated in a survey questionnaire which the researchers will disseminate using social networking sites and Google Forms, and through distributing it personally inside their university campuses. The researchers formulated questions that follow the format of Liker Scale questions, Close-ended questions, and Multiple-Choice questions. The survey questionnaire is composed of 25 questions. (22 Likert scale questions, 2 multiple choice questions, and 1 close-ended question).

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The direct method or the interview method of research involves presentation of oral-verbal stimuli and reply in terms of oral-verbal responses. The researchers will be interviewing respondents to ask questions which are aimed to get specific information for this study. As to the purpose of the study, the descriptive design was obtained since descriptive studies are aimed on finding out "what is," so observational and survey methods are frequently used to collect descriptive data (Borg & Gall, 1989). IV.

Data Gathering Procedure After the formulation of the sample size, sample design and the data

collecting instrument, the researchers shall move forward to the collection of data. The researchers will be distributing the computed questionnaires per university to the undergraduate students of the top four universities in the Philippines with no specific year level. The questionnaires and the questions for the interview were created by the researchers themselves to determine the effects of marketing strategies, to know which marketing strategy is the most effective, and how these marketing strategies of application-based modes of transportation affect the preference of the students of the top four universities in choosing their mode of transportation. Questionnaire is conducted to gather large size of information in a short period of time. The advantages of this research method are: Members of the sample group can remain anonymous, it is considerably cheaper than most of the other

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primary data collection methods, and there is a huge possibility of generating large amount of data. Interviewing is one of the most common methods of collecting information from individuals. It is conducted to reflect emotions and experiences and explore issues with a greater focus. The advantages of this research method are: there is a possibility to direct the process of data collection. The possibility to collect the specific type of information required, and there are various types of interviews that are used to collect data. The researchers will be conducting semi-structured interviews which has an approach of ensuring that each interview is presented with the same questions yet has more of open-ended questions. In this kind of interview, the interviewer asks important questions in the same way each time and is free to alter the sequence of the questions and to probe for more information that are within the boundaries of the topic. The respondents are free to answer the questions in any way they choose. V.

Data Analysis This research, as pointed out previously, followed a quantitative and

qualitative paradigm based on mixed method. Consequently, most of the quantitative data are gathered through extensive question with the use of experimental design through distribution of a survey question that exhibits question with Likert Scale, Multiple Choice, and a Close-ended Question.

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The data gathered using Likert scales tend to order or rank which distance is immeasurable, in other words the data are considered ordinal. The ordinal data which are treated as interval data without prior evaluation on the values and objectives of the analysis will be misleading and may falsify the findings of a survey. (Allan and Seaman, 2007) `

The researcher then in interpreting Likert scales, would be scored using 5

responses and are rated from 1-5. “5” is assigned to the “Strongly agree” response, “4” to “Agree”, “3” to “Neutral”, “2” to “Disagree”, and “1” to the “Strongly disagree” response. After assigning the scores, the scores on the individual responses will be computed in order to know the level of agreement or disagreement to the certain item.

Table 3.2: Interpretation of the 5-point Likert Scale Strongly Disagree

1 – 1.80

Disagree

1.81 – 2.61

Neutral

2.62 – 3.42

Agree

3.43 – 4.23

Strongly Agree

4.24 – 5.04

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Thus, the data gathered will be analyzed through Statistical Package for Social Sciences (SPSS) which is a software package used in statistical analysis that can perform highly complex data manipulation and analysis for a study uses quantitative approach. The researchers will be using Spearman Rho formula to be able to correlate the different marketing strategies that will either approve or reject the hypothesis of this study. Spearman's Rho is a non-parametric test used to measure the strength of association between two variables, where the value r = 1 means a perfect positive correlation and the value r = -1 means a perfect negative correlation. The researchers will be presenting the data gathered with the use of tables and graphs to be able to convey the information quickly and easier. Graphs can be a convenient way to show and compare different sets of data. While data obtained from the in-depth interviews will be analyzed and be summarized in an interpretation.

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CHAPTER 4 RESULTS, ANALYSIS AND DISCUSSION This chapter discusses the results, analysis and interpretation of the data gathered through survey questionnaires and in-depth interviews of the researchers. The researchers collected information from a total of 398 students who are asked to answer the survey questionnaires for the quantitative method. This chapter presents the distribution of survey questionnaires according to gender, the university that they are attending and how much does students spend money for transportation from their allowances. I. DESCRIPTIVE STATISTICS Gender Out of the 398 respondents, 175 are males, 216 are females and 7 prefer not to say. 2%

44% 54%

Male

Female

Prefer not to say

Figure 4.1 Gender of Respondents

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University attending On the chart below, the researchers were able to garner 398 respondents,79 from the University of the Philippines Diliman, 46 from the Ateneo De Manila University, 83 from the De La Salle University, and 190 from the University of Santo Tomas. Using the stratified random sampling, the researchers were able to give the whole population an equal chance of being selected to answer the survey questionnaires. 19.8%

47.7%

11.6%

20.9% University of the Philippines

Ateneo De Manila University

De La Salle University

University of Santo Tomas

Figure 4.2 Respondents of the Survey Questionnaire from each University For the qualitative method or the semi-structured interview, the researchers were able to gather 40 respondents from the top four universities in the Philippines. 8 from the University of the Philippines Diliman, 5 from the Ateneo De Manila University, 8 from the De La Salle University, 19 from the University of Santo Tomas.

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20.00%

47.50%

12.50%

20.00% University of the Philippines Diliman

Ateneo De Manila University

De La Salle University

University of Santo omas

Figure 4.3 Respondents of the interview from each university II. ANALYSIS AND INTERPRETATION

36, 9%

Yes No

362, 91%

Figure 4.4: Distribution of Respondents Using UBER or Grab Of the 398 students interviewed, only 9% are not using the services provided by the application-based modes of transportation. On the other hand, 91% of the respondents are aware and utilizing the services. This can infer that the

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students of the top four universities in the Philippines gives great consideration on choosing application-based modes of transportation (UBER and Grab). 22, 6%

13, 3%

38, 10% 44, 11%

92, 23%

189, 47% 1-499

500-999

1000-1999

2000-2999

3000-3999

Above 4000

Figure 4.5: Weekly Allowance 0,0% 0% 20, 5%2,

95, 24%

281, 71%

1-499

500-999

1000-1999

2000-2999

3000-3999

Above 4000

Figure 4.6: Expense on transportation on a weekly Basis Respondents were also asked on how much is their weekly allowance and the amount they are willing to spend on transportation on a weekly basis. The results

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show that 47% of the respondents are able to receive 1000-1999 pesos weekly as their allowance. With relation to the subsequent question, 71% of the respondents are willing to spend 1-499 pesos on transportation. This means to say that, students are willing to spend 25% of their weekly allowance on transportation means. Accessibility Travel Time Convenience Safety

Budget

ADMU 4.6739

4.1087

4.4348

4.2391

3.5870

DLSU

4.3373

4.1928

4.4578

4.4699

3.9639

UP

4.3544

3.9620

4.3924

3.9873

4.0633

UST

4.4105

4.1789

4.5579

4.4

4.0842

Table 4.1: Mean Scores of the 5 Factors by University From the table above, Accessibility is the most considered factor of students from Ateneo de Manila University while the De La Salle University students prioritize Safety. University of the Philippines- Diliman and University of Santo Tomas students first consider Convenience in choosing their mode of transportation. It is also noteworthy that for ADMU, DLSU and UST students least think of the budget while UP students are least affected by the travel time in considering the use of UBER and Grab.

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ADMU

Jeepney

Bus

Train

UV Expres s /FX

Tricycle /Pedicab

2.6957

1.6522

2.4565

1.9783

3.1522

Taxi

PAGE

UBER/ Grab

2 3.2609 2.204 DLSU 3.0602 2.1084 3.1807 2.5542 2.7831 8 3.8193 2.215 UP 4.1013 2.2405 2.2025 2.2785 2.6329 2 3.3028 2.357 UST 3.6737 2.4632 2.8053 3.4579 3.4368 9 3.7262 2.11607 2.56722 2.194 Mean 3.3827 5 2.66125 5 3.00125 475 3.5273 Table 4.2: Mean Scores on the Usage of Each Mode of Transportation The respondents were asked how often they utilize each of the mode of transportation where Very Frequently were coded as 5, Frequently as 4, Occasionally as 3, Rarely as 2 and Never as 1. Getting the means for each school resulted to the table above. Results show that for students from ADMU, DLSU and UST, the most utilized mode of transportation is the application-based transportation UBER or Grab. For UP students, they still use jeepney most often. Computing for the average of the mean scores for each mode of transportation, UBER or Grab has the highest score, thus is the most used often mode of transportation for students. Do you agree that among all the transportation services stated above, the Transportation Network

Do you believe that UBER and GRAB services has advantages

Do you include UBER and Grab services as one of your top choices

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Vehicle Service or TNVS and for public is the most favorable and disadvantages? transportation? the most convenient method of public transportation? ADMU 3.8696 4.6087 4.2609 DLSU 3.9398 4.6024 4.3373 UP 3.8608 4.5823 3.8987 UST 4.1316 4.5895 4.34211 Table 4.3: Mean Scores for the Perception on UBER and Grab For the question on the TNVS as the most convenient method of public transportation, responses from all schools are in the range of “Agree”. In the belief that UBER and Grab has both advantages and disadvantages, all schools said that they strongly agree with it since they are in the range 4.24-5. For the last question regarding perception on UBER and Grab, responses from UP has the lowest mean score falling in the range of “Agree” while all others are “Strongly Agree”. PROBLEM 1: Do the different marketing strategies of application-based transportation have an effect on students? •

Does the Price of application-based transportation have an effect on students?

UBER and Grab's price have a great effect on your preference towards their services.

UBER and Grab services are better than other modes of transportation even if it is more expensive

During peak hours/rush hours wherein UBER and Grab increases their prices, do you still choose their services over other modes of transportation?

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ADMU DLSU UP UST

PAGE

4.0652 3.9565 3.3913 4.0602 4.0241 3.2410 4.2152 3.7975 3.0633 4.1895 3.8947 3.2211 Table 4.4: Mean Scores for the Price Strategy

For the first 2 questions, 5 is used for “Strongly Agree”, 4 for “Agree”, 3 for “Neutral”, 2 for “Disagree” and 1 for “Strongly Disagree”. Results states that all schools agree that the pricing of UBER and Grab greatly affect their preference and they somewhat believe that their services are better than other modes of transportation even if it is expensive. For the last 2 questions, 5 is used for “Very Frequently”, 4 for “Frequently”, 3 for “Occasionally”. 2 for “Rarely” and 1 for “Never”. For the third question, all the students from the big schools will still choose their services even during peak hours only occasionally. •

Does the Product of application-based transportation have an effect on students?

ADMU DLSU UP

UBER and Grab's product/services UBER and have a great GRAB offers effect on your quality service preference over other towards their modes of services. transportation. 4.2826 4.2391 4.2771 4.2892 4.1013 4.0380

How often does UBER and Grab services satisfy your needs? 4.1087 4.1325 3.8228

Does the quality service of UBER and Grab influence your preference in choosing their services over other modes of transportation? 4.1522 4.0964 3.8861

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UST

PAGE

4.2526 4.2263 4.1579 4.1105 Table 4.5: Mean Scores for the Product/ Services Strategy Same scale and coding were used for the questions regarding product/

services. All schools strongly agree that UBER and Grab’s services have great effect on their preference except for UP students whose scores only fall on the “Agree” scale. With regards to the quality of service offered by UBER and Grab when compared to other modes of transportation, all schools agree that UBER and Grab offer better. DLSU students even strongly agree with it. Students from the big four schools were frequently satisfied with the needs of UBER and Grab services. Moreover, they agree that the quality service influence their choice of UBER and Grab over other modes of transportation. •

Does the Promotion of application-based transportation have an effect on students?

UBER and Grab's promotion has a great effect on your preference towards their services.

UBER and Grab's promotional materials are very enticing and are well thought of

Promotional Codes make you prefer using UBER and Grab's services.

Do you avail UBER and Grab’s services with the use of referral codes which entails to a discount?

With UBER and Grab’s Student Discount or PWD Discount, does it have an effect on your preference

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ADMU DLSU UP UST

3.4783 3.4783 3.4565 3.2826 3.8554 3.7349 3.8554 3.4217 3.5316 3.6329 3.7089 3.3671 3.8789 3.7053 4.9895 3.7158 Table 4.6: Mean Scores for the Promotion Strategy

PAGE

with their services? 3.8261 3.8072 3.6962 3.9526

The students from the top four universities agree that UBER and Grab promotion has a great effect on their preference and that the promotional materials are very enticing and well thought of. The promotional codes made students to frequently prefer using UBER and Grab’s services. Students from DLSU, UP and UST frequently avail UBER and Grab’s services through referral codes while students from ADMU occasionally use them. In terms of the discount given by UBER and Grab, students somewhat agree that it does have an effect on their preference with the services. •

Does the Place/Accessibility of application-based transportation have an effect on students?

ADMU DLSU

Since smart phones are now being widely used these days, do you prefer using your smartphone as a medium for getting a Place (Accessibility) has a great transportation service effect on your preference in at your own choosing UBER and Grab services. convenience? 4.4130 4.3478 4.3494 4.4096

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UP UST

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4.2278 4.0886 4.3368 4.4526 Table 4.7: Mean Scores for the Place Strategy With regards to the Accessibility strategy provided by UBER and Grab,

students from all big four schools agree that it has a great effect on their preference in choosing UBER and Grab Services. In addition, the average score for all the schools are in the “agree” range in terms of using smart phones as a medium for getting a transportation. PROBLEM 2: What are the effects of the different marketing strategies used by application-based transportation? INTERVIEW QUESTION NUMBER ONE: Between all the marketing strategies stated in the questionnaire you have answered earlier, what are the marketing strategies that has the most effect on you and how does this affect you? Student discounts and PWD discounts Promotional Codes 24% 37%

Advertisements

11%

1%

Reward System

7%

Safety Features 20% Accessibility

Figure 4.7 Expense on Transportation on a Weekly Basis

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Thirty of the respondents said that student discounts and PWD discounts has the most effect among all marketing strategies of UBER and Grab. According to students, it really helps especially that transportation costs come from their allowances. With the discounts, fare automatically recedes compared to ordinary trips. One respondent even stated that there are times for example that the amount that he is paying is very cheap and almost equal in price with other modes of transportation and yet delivers and provides more comfort than other modes of transportation. It also aids in saving money and allot it for other expenses. Accessibility is the second most effective marketing strategy as 19 respondents indicated it as part of their top three marketing strategies. One student said that the idea of a meet-up point is convenient as well as it being easily accessible through smart phones. Another considered UBER and Grab as userfriendly applications not only because they have an easy interface, but they also make sure that it is accessible to most riders. It is also appealing especially during hassle days where UBER and Grab are more accessible than taxi-hailing apps. Moreover, it saves time and comfortable riding. Closely related to student/PWD discount is the promotional codes offered by UBER and Grab which affects students in choosing their services. Most of the respondents are enticed with the promo codes because it gives them a sense of saving money and thus, using the application more.

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PROBLEM 3: Which of the different marketing strategies of applicationbased transportation has the greatest effect on students? Table 4.8: Specific Marketing Strategies Mean Scores Promotional AccessSafety AdvertiReward Student codes

ibility

Feature

sements

System

Discount

ADMU

3.4348

4.5652

4.1522

2.6304

2.9348

3.9565

DLSU

3.7952

4.4217

4.3976

2.8434

3.2530

4.1205

UP

3.9367

4.2532

4.1139

2.8481

3.4177

4.0886

UST

4.0632

4.3632

4.3421

3.0789

3.6316

4.2421

The respondents were asked to rate the following marketing strategies by how each factor affect their preference in choosing UBER and Grab. Still, Accessibility has the greatest effect on students from the big four schools followed by the Safety Feature offered by UBER and Grab. On the other hand, advertisements have the least effect in their preference. PROBLEM 4: What are the advantages and disadvantages of applicationbased transportation to students of the top four universities in the Philippines? INTERVIEW QUESTION NUMBER TWO: What do you think are the advantages and disadvantages of application-based modes of transportation to students of the top four universities of the Philippines? The common advantages of application-based of modes of transportation which students from the top four universities think are first, it is convenient as there

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is no longer a need to wait in long lines. One respondent said that “it gets you to places when you don’t know how to commute going there through other means”. Another major advantage is its accessibility, majority of the population of these universities have smart phones that have access to applications like UBER and Grab. Hence, there is ease in access and commuting itself. A student noted that “As long as they can find a connection stable enough to book a ride, they're good to go. It's easy, quick and efficient.” In addition to many advantages was the security/ safety it provides. According to one respondent UBER and Grab has already proven its safety to its clients. However, along with all these advantages are the disadvantages of using UBER and Grab. Despite providing discounts, it is still expensive for some students. Especially during peak hours, there have been surges in prices that students can no longer accommodate. Likewise, booking near universities is hard due to high demand which also leads to high fares. One respondent stressed “the disadvantage for these applications are the prices that tends to be exaggeratedly high in times of rush hours. Also, the times the drives have a bit freedom to cancel bookings that are very frustrating. "Another is its heavy reliance on internet connection. One cannot book a ride if there is no stable access to the internet. On another note, the students see that since majority of students use application-based modes of transportation, “We generate a lot of network traffic, and not all cars can

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constantly accommodate us. "Also, with the increase in the use of these apps, it also adds up to the existing traffic.” INTERVIEW QUESTION NUMBER THREE: Does these advantages and disadvantages have an effect on your preference in choosing UBER and Grab services? If yes, how does it influence you? Almost all respondents agreed that the advantages and disadvantages of Uber and Grab greatly affects their preference in choosing them as mode of transportation. Some said that it is the advantages that makes them choose Uber and Grab over other modes of transportation. One even noted that “Most of the time, using TNVs have more advantages than disadvantages so these encourage me to use them more than other forms of transport.” While others, given the disadvantages of these apps will still choose other modes of transportation. One student said, “despite the convenience given by these applications still prefer to do my commute using tradition public transportation to help ease the manila traffic.” INTERVIEW QUESTION NUMBER FOUR: If there are any, despite the disadvantages that you stated, would you continue to avail the services of UBER and Grab?

Almost all respondents answered yes but with reservations. As long as Uber and Grab still satisfies their needs and it is the best option there is, people will still continue to avail the services of Uber and Grab.

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III. HYPOTHESIS TESTING Correlation is significant at the 0.01 level (2-tailed). ** Correlations Price Product/Services Promoti Place on .435**

.160**

.360**

Sig. (2-tailed) .117

.000

.001

.000

N

398

398

398

Correlation Coefficient

.079

398

Table 4.9: Correlation of Each Factor and the Preference of Using UBER and Grab Statement of the Problem H0:

Hypothesis The different

marketing

strategies

used by applicationbased transportation Do the different marketing does not have an effect strategies of application- on students in choosing based transportation have

their

mode

of

transportation. an effect on students?

H1:

The

marketing

different strategies

used by applicationbased

transportation

does have an effect on students in choosing their

mode

transportation.

of

Correlation

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H0:

The

Price

PAGE

of

application-based •

transportation does not Does the Price of have

an

effect

on

application-based r = 0.117 (No

students. transportation have an

effect

on

students?

significant relationship) H1:

The

Price

of

Null Hypothesis is ACCEPTED

application-based transportation have

an

effect

does on

students. H0: •

Does

the

Product/Services of application-based transportation have an

effect

on

The

Product/Services

of

application-based transportation does not have

an

effect

on

r = 0.435 (Moderate relationship) Alternative Hypothesis

students.

is ACCEPTED

students? H1: Product/Services application-based

The of

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transportation have

an

effect

PAGE

does on

students. H0: The Promotion of application-based transportation does not •

Does the Promotion of

application-

have

an

effect

on

students.

r = 0.160 (Weak

based transportation

relationship)

have an effect on H1: The Promotion of students?

is ACCEPTED

application-based transportation have

an

effect

Alternative Hypothesis

does on

students.

•

the H0: The Promotion of

Does

Place/Distribution of

application-based

application- transportation does not

r = 0.360 (Moderate relationship)

based transportation have

an

have an effect on students. students?

effect

on

Alternative Hypothesis is ACCEPTED

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PAGE

H1: The Promotion of application-based transportation have

an

effect

does on

students.

Table 4.10: Hypothesis Testing At 5% level of significance, it can be concluded that the respondents’ perception to UBER and Grab as the most favorable and the most convenient method of public transportation is significantly correlated with the factors that affects them in choosing their mode of transportation such as; Product and Services (moderately correlated, r= 0.435), Promotion (weakly correlated, r= 0.160), and Accessibility (moderately correlated, r= 0.360). However, having a p-value of 0.117 states that there is not enough sample evidence to say that perception on UBER and Grab as the most convenient method of public transportation is correlated with the price factor.

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CHAPTER V CONCLUSION AND RECOMMENDATIONS I. Conclusion This study revolves around the marketing strategies used by applicationbased transportation on students of the top four universities in the Philippines. The researches’ objectives in the study is to determine if the different marketing strategies have an effect to those students and to know these effects. The study also aims to see which of the different marketing strategies used by application-based transportations is the most effective. The researchers also aimed to address the advantages and disadvantage of such marketing strategies. With the study conducted by the researchers, the following conclusions can be drawn from the different marketing strategies used by application-based transportation. First, the different marketing strategies have an effect on students based on their willingness to avail services rendered by application-based transportation. We can also conclude that place/accessibility is the most considered and effective marketing strategy. Lastly, the advantages and disadvantages of application-based transportation affects their preference in choosing them as mode of transportation. The results of the survey conducted indicate that most of the respondents have high consideration for accessibility in choosing application-based transportation. Since smart phones are now being widely used, students are tired of

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the conventional ways of obtaining a ride a home. Students take much into consideration the easiest way of getting a ride that is favorable not only to the them (riders) but the drivers as well. In their everyday commute, having an option that is given by application-based transportation greatly influence the student’s choice of transportation. Accessibility with regard to the place strategy, is the marketing strategy that has the greatest effect on the respondents. While advertisement with regard to promotion strategy has the least effect on their preference in choosing applicationbased transportation. The explanation to this is that, students have keen perception of not being persuaded by advertisements that are usually misleading. Knowing that the reality of having application-based transportation services is actually attainable. The respondents also agreed that there are in fact disadvantages with application-based transportation despite its numerous advantages. Transportation services in the Philippines in general has disadvantages, it is just that the services of application-based transportation outweigh the disadvantages through a better overall commuter satisfaction. On the result of the interview, student discounts and PWD discounts has the most effect among all marketing strategies, followed by accessibility. With the specific questions asked, the interviewees value their privilege of obtaining discounts as a student. Application-based transportations are fully aware that students are allocating their money wisely. Implementing in-app student and PWD

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discounts is an effective promotion strategy persuades students of availing application-based transportation. Accessibility, following the rank of student discounts and PWD discounts in the interview, is still the most effective marketing strategy as it yielded the highest vote in the survey while second from the interview. Therefore, it can be concluded reasonably that the different marketing strategies have an effect on students, most especially place and promotion strategies. Questions and answers regarding the factors that affect their preference in choosing their modes of transportation shows that the results still vary depending on the university they are currently studying. It can be inferred that location of the university still has a great consideration since some of these university has maintained the traditional modes of transportation as part of their culture. The result of this study suggests that the marketing strategies used by application-based transportation deliberately affects the students in the top four universities in the Philippines. Disregarding the price on which services can be avail, reveals the in dire need of commuters to have a better transportation experience. Students carrying burdens of commuting, the need for more application-based modes of transportation should be inevitable. The advancement of technology should cope with the society’s needs in their life. UBER and Grab services as one of the top choices for public transportation needs to be taken into much consideration for the benefit of the community.

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II. Recommendations •

With the upcoming acquisition of Grab’s competitor which is UBER in its operations in the Philippines as UBER sold its shares to Grab, the researchers would suggest that on future studies on this matter to be more specific on Grab and to how its marketing strategies may change as to having monopolized to the application-based transportation industry.

•

Future studies on marketing strategies of application-based transportation may expand on the marketing mix variables and may use the Marketing Mix 7 Ps to better explain and understand consumer behavior and loyalty and how marketing strategies create an impact to a consumer’s habits.

•

To narrow down into one university may create more specific results as to how a university can have diverse or similar behavior towards applicationbased transportation.

•

The researchers would like to commend application-based transportation (UBER and Grab) for being one of the top choices among students for a mode of transportation, however, it would be best for UBER and Grab to focus on how they could give reasonable prices for consumers to prefer their services.

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APPENDICES A. References Ac Ac, M. V. Principles of Marketing. Ang, S. H., Armstrong, G., Yao, O. H., Kotler, P., Leong, S. M., & Tan, C. T. Principles of Marketing: An Asian Perspective. Baines, P., & Fill, C. Marketing: Third Edition. Baker, M. (2000). Marketing Theory. p. 135 Blythe, J. Principles and Practice of Marketing. Boone, L., & Kurtz, D. Principles of Marketing. Cravens, D., &, Piercy, N. (2013). Strategic Marketing. De La Salle University. About DLSU. Quick Facts and Figures. Retrieved from: https://www.dlsu.edu.ph/inside/ Evans, D. Social Media Marketing: An Hour a Day. Ford, J., Ibrahim, E., & West, D. Strategic Marketing: Creating Competitive Advantage. Fromm, J., & Garton, C. (2013). Marketing to Millennials. Giligan, C., & Wilson, M. S. (2009). Strategic Marketing Planning. Kotler, P., Armstrong, G., Cunningham, P.H. (2005). Principles of Marketing. Toronto: Pearson Education Canada. pp. 33. Kotler, P., Lee, N., & Roberto, N. Social Marketing Improving the Quality of Life: Improving the Quality of Life. p. 116

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LinkedIn. Ateneo Students & Faculty. Retrieved from: https://ph.linkedin.com/edu/ateneo-de-manila-university-15635 MindTools.com. Retrieved from https://www.mindtools.com/php/Permissions.php?e=rdqpermissionshelpd esk Organizing Your Social Sciences Research Paper: Types of Research Designs Retrieved from: http://libguides.usc.edu/writingguide/researchdesigns Palmer, A. Principles of Marketing. pp. 14-15 Sudharshan, D. (1995). Marketing Strategy. Englewood Cliffs, N.J.: Prentice Hall. The Economic Times. Retrieved from http://economictimes.indiatimes.com/definition/place Tools of Promotion - Advertising, Sales Promotion, Public Relation & Direct Marketing. Retrieved from http://www.managementstudyguide.com/toolsof-promotion.htm University of the Philippines. Facts and Glance Retrieved from: https://upd.edu.ph/about/facts-at-a-glance/ What is Uber’s Marketing Strategy? Retrieved from https://www.quora.com/What-is-Ubers-marketing-strategy

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B. List of Figures and Tables Figures

Page #

1.1

Marketing Mix 4 Ps

12

1.2

Theory of Routine Mode Choice Decisions

14

1.3

Conceptual Framework of the Study

15

2.1

Marketing Process – Kotler, Armstrong, Cunningham

25

2.2

Marketing Strategies – Marketing Mix by E. J. McCarthy

29

2.3

Engel, Kollat and Blackwell developed the

44

EKB model of Consumer Behavior 2.4

Theory of Routine Mode Choice Decisions

45

4.1

Gender of Respondents

57

4.2

Respondents of the Survey Questionnaire from

58

each University 4.3

Respondents of the Interview from each University

59

4.4

Distribution of Respondents Using UBER or Grab

59

4.5

Weekly Allowance of Respondents

60

4.6

Expense on Transportation on a Weekly Basis

60

4.7

Most Effective Marketing Strategies selected

67

by the Respondents

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Tables

PAGE

Page 3.1

Computation for the Number of Respondents

51

3.2

Interpretation of the 5-point Likert Scale

55

4.1

Mean Scores of the 5 Factors by University

61

4.2

Mean Scores on the Usage of Each Mode of

62

Transportation 4.3

Mean Scores for the Perception on UBER and Grab

63

4.4

Mean Scores for the Price Strategy

64

4.5

Mean Scores for the Product/ Services Strategy

65

4.6

Mean Scores for the Promotion Strategy

66

4.7

Mean Scores for the Place Strategy

67

4.8

Specific Marketing Strategies Mean Scores

69

4.9

Correlation of Each Factor and the Preference

72

of Using UBER and Grab 4.10

Hypothesis Testing

72

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Appendix I. Data Collecting Instrument

A STUDY ON THE EFFECTS OF THE MARKETING STRATEGIES USED BY APPLICATION-BASED MODES OF TRANSPORTATION Good day! We are Julienne Celine G. Ogayon and Arwin Paul T. Servan from AB Legal Management of the University of Santo Tomas. We are conducting a study entitled "The Effects of the Different Marketing Strategies Used by ApplicationBased Modes of Transportation to the Students of the Top Four Universities in the Philippines. We would truly appreciate it if you would answer the questions honestly and we assure you that all information gathered from this questionnaire would be treated with utmost confidentiality. Email Address: __________________________________ Contact Number: _________________________________ Name (Optional): _________________________________ Gender:  Male  Female  Prefer not to say University Attending:  University of the Philippines

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 Ateneo De Manila University  De La Salle University  University of Santo Tomas 1. Do you use the services offered by application-based modes of transportation (UBER and Grab)? *  Yes  No 2. How much is your weekly allowance? * 

1 - 499



500 – 999



1000 – 1999



2000 – 2999



3000 – 3999



Above 4000.

3. How much do you allocate for your transportation on a weekly basis? *  1 - 499  500 – 999  1000 – 1999  2000 – 2999  3000 – 3999  Above 4000.

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4. How often do you use each of the mode of transportation listed below? * VF – Very Frequently F – Frequently O – Occasionally R- Rarely N – Never VF

F

O

R

N

Jeepney Bus Train UV Express/FX Tricycle/Pedicab Taxi/Ordinary Cab UBER / Grab

5. How often does these factors have an effect in choosing your mode of transportation from 1 to 5 with 5 being the highest. 5 Accessibility Convenience

4

3

2

1

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Safety Travel Time Budget

Perception on UBER and Grab. * SA – Strongly Agree A – Agree N – Neutral D – Disagree SD – Strongly Disagree SA 6. Do you agree that among all the transportation services stated above, the Transportation Network Vehicle Service or TNVS (like UBER and Grab) is the most favorable and the most convenient method of public transportation? * 7. Do you believe that UBER and Grab services have advantages and disadvantages? * 8. Do you include UBER and Grab services

A

N

D

SD

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as one of your

PAGE

top choices for public

transportation? * On the Aspect of Price: SA

A

N

D

SD

VF

F

O

R

N

SA

A

N

D

SD

9. UBER and Grab’s price have a great effect on your preference towards their services. * 10. UBER and Grab services are better than other modes of transportation even if it is more expensive. *

11. During peak hours/rush hours wherein UBER and Grab increases their prices, do you still choose their services over other modes of transportation? On the Aspect of Product/Services:

12. UBER and Grab's product/services have a great effect on your preference towards their services. 13. UBER and Grab offers quality service over other modes of transportation.

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VF

F

O

R

N

SA

A

N

D

SD

VF

F

O

R

N

14. How often does UBER and

Grab

services

satisfy your

needs? 15. Does the quality service of UBER and Grab influence your preference in choosing their services over other modes of transportation? On the Aspect of Promotion:

16. UBER and Grab's promotion has a great effect on your preference towards their services. 17. UBER and Grab’s promotional materials are very enticing and are well thought of. *

18. Promotional codes make you prefer using UBER and Grab’s services. * 19. Do you avail UBER and Grab’s services with the use of referral codes,

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which entails to a discount? * 20. With UBER and Grab’s Student Discount or PWD Discount, does it influence

your

preference

with

their

services? On the Aspect of Place: SA

A

N

D

SD

VF

F

O

R

N

21. Place (Accessibility) has a great effect on your preference in choosing UBER and Grab services. * 22. Since smart phones are now being used by most people, especially students nowadays, would you prefer using your smartphone as a medium for getting a transportation service at your own convenience? *

23. Do you agree that UBER and Grab, being a smartphone-based transportation

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service, would be the better alternative for a better transportation service? * 24. How often does the following marketing strategies have the most effect on your preference in choosing UBER and Grab services? * VF

F

O

R

N

Price* Product/Services* Promotion* Place (Accessibility) * 25. Rate the following Marketing Strategies on how much it affects you in choosing UBER and Grab services from 1 to 5 with 5 being the highest. * 5 Student

Discount/ PWD Discount

Promotional Codes Reward System Advertisements

(Social

Media,

Through Text Messages, E-mail and Application Notifications) Safety Features Accessibility

4

3

2

1

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Appendix II. Interview Questions INTERVIEW QUESTION NUMBER ONE: Between all the marketing strategies stated in the questionnaire you have answered earlier, what are the marketing strategies that has the most effect on you and how does this affect you? INTERVIEW QUESTION NUMBER FOUR: Does these advantages and disadvantages have an effect on your preference in choosing UBER and Grab services? If yes, how does it influence you INTERVIEW QUESTION NUMBER THREE: What do you think are the advantages and disadvantages of application-based modes of transportation to students of the top four universities of the Philippines? INTERVIEW QUESTION NUMBER FOUR: If there are any, despite the disadvantages that you stated, would you continue to avail the services of UBER and Grab?

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III. Curriculum Vitae

OGAYON, JULIENNE CELINE G.

Julienne is a fourth-year student taking up Bachelor of Arts in Legal Management at the University of Santo Tomas, Manila. She attended Angelicum College from preparatory school until her secondary education. She was awarded as the Most Outstanding Club Member of the Student Catholic Action being its President for three years in her high school years. For the school year 2017-2018, she was elected as the Vice President for External Relations of the Alliance of Legal Management Associations of the Philippines, Inc., the national organization of Legal Management students in the country. She was also awarded as part of the Glory and Pride 2017 and 2018 of the Faculty of Arts and Letters for having attended several national and international conferences and for being an academic achiever.

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SERVAN, ARWIN PAUL T.

Arwin is currently taking up his degree of Bachelor of Arts and Letters Major in Legal Management in the University of Santo Tomas. He finished his primary and secondary education at Colegio De San Lorenzo. He has been a member of Viva Voce, the official music guild of the University of Santo Tomas Legal Management Society, during his entire stay at the university. He won the Himigsikan 2016 and 2017, a yearly music competition the Faculty of Arts and Letters, twice as the bassist for the band Krispy Krewe and the vocalist for the band Tofi for his second year competing. He was also awarded as part of the Glory and Pride of the Faculty of Arts and Letters for two consecutive years (from 2014 to 2015) for being an academic achiever.

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