Impact of customer retention strategies on profitability of pawnshops in Calapan city

Customer retention strategies are essential for improving the financial performance of pawnshops in Calapan City. Although building strong customer relationships is important, many pawnshop companies find it difficult to determine which specific factors lead to higher profits. This study examines how product quality, service quality, and pricing influence the profitability of pawnshops in Calapan City. Utilizing a descriptive-correlational research design, the study gathered data through a survey of 67 managers and employees from pawnshops in Calapan City, selected through random sampling. The research instruments were validated by the experts from Divine Word College of Calapan, to ensure its accuracy and academic validity. The findings reveal that while product and service quality have no significant impact on profitability, product pricing shows a positive and statistically significant relationship with financial performance. These results indicate that strategic pricing continues to be the main factor influencing the profitability of pawnshops within Calapan City, outweighing the influence of product features and customer service. Based on these findings, the study recommends a Service-Driven Customer Relationship Management (CRM) Framework to enhance the long-term sustainability and profitability of pawnshops in Calapan City.