RELATIONSHIP BETWEEN CARBONATED DRINKS AND HEALTH DRINKS

TO THE CONSUMER PREFERENCE BY THE SELECTED

HOUSEHOLDS OF BARANGAY MACABLING
IN THE CITY OF SANTA ROSA LAGUNA

An Undergraduate Thesis Proposal Presented to the Faculty of the

Polytechnic University of the Philippines
Santa Rosa, Laguna

In Partial Fulfillment of the Requirements for the

Degree Bachelor in Business Administration
Major in Marketing Management

By
Fevelyn D. Bucio
Jessica Lorraine D. De Borja
Mariel Danica M. Galasao
Ressie S. Orzo
Mark Anthony P. Tambor

Angelita E. Nocon, M
Subject Facilitator

April 2015

Chapter I
THE PROBLEM AND ITS BACKGROUND

Introduction
Beverages and drinks are liquids specifically prepared for human consumption. In
addition to basic needs, beverages form part of the culture of human society. Nowadays,
drinks industry comprises companies that manufacture non-alcoholic beverages and
carbonated mineral waters or concentrates and syrups for the manufacture of carbonated
beverages.
Euromonitor International defines carbonated drinks as non-alcoholic drinks into
which carbon dioxide gas has been dissolved. Carbonating beverages, introducing CO2
into the drink mix under pressure, makes the drink slightly more acidic which serves to
sharpen the flavor and produces a slight burning sensation. And, it also helps preserve the
drink longer without going bad while Harvard School of Public Health Nutrition Source
defines health drinks as beverages that are limited or consumed in moderation, including
diet drinks, fruit juice and milk.
Different beverages have been well accepted by consumers. In the midst of the
rapidly growing beverage demand, the industry on the whole is encountering new
opportunities and challenges. Changing consumer demands and preferences require new
ways of maintaining current customers and attracting new ones. Along with ever
increasing competition, beverage companies must intensely court customers, offer high
quality products, efficiently distribute them, ensure safety and keep prices low all while
staying nimble enough to exploit new markets by launching new products. Recent

developments in beverage consumption and challenges in marketing have heightened the

need for searching the consumers' needs and preferences.
According to Kotler, the consumer market is very vast, and thus there is great
demand for an enormous variety of goods and services, especially as consumers differ
from one another in that of age, gender, income, education level, and tastes. Moreover,
the relationships between different consumers, as well as their contact with other
elements of the world surroundings, affect their choice of products, services, and
companies.
As a consumer, trends drive innovation and purchase behavior. New product
innovation is driven by consumer demand for more unique and experimental flavor
combinations. Over two thirds of consumers are willing to experiment with new foods
and beverages, offering plenty of opportunity for product development.
Consumer preferences is used primarily to mean to select an option that has the
greatest anticipated value among a number of options by the consumer in order to satisfy
his/her needs or desires. Preferences indicate choices among neutral or more valued
options available. The preference of the consumer is the result of their behavior they
show during searching, purchasing and disposing the products.
Therefore, we came up to the problem of determining the relationship between the
carbonated drinks and health drinks to the consumer preference.

Background of the Study

In 1767, carbonated water (also known as soda water) was invented and has
become the main component of most soft drinks. Soft drinks date back to the mineral
water found in natural springs. The earliest soft drinks were developed by Arabic
chemists and were popular in the medieval Near East. The first marketed soft drinks
reached the Western World in the 17th century.
On the other hand, health drinks or juice is the liquid that is naturally contained in
fruit or vegetable tissue. European was fermenting fruit juice into bjorr in 11 th and 12th
century in Scandinavia, Iceland, Greenland and England.
The commercial modern juice industry dated from 1869, when the Welch
Company of Vineland, New Jersey commenced bottling of unfermented grape juice. It
was said that Dr. Thomas B. Welch and his son Charlie started fruit juice processing
industry.
Among the global profile that focuses on the industry trends in soft drinks, the
carbonated drinks and health drinks or fruit/vegetable juice got the highest off-trade
volume. (Euromonitor, 2013) That is why we came up to finding the relationship of these
two beverages.
However, it is somehow questionable why most of the consumers preferred one
drink from the other. The researchers wonder what would be the reason behind this. Are
the factors affects the buying behavior of the consumers? Hence, this study aims to
address the issue.

Theoretical Framework
Theory of Consumer Preference
In microeconomics, the theory of consumer preference relates choices (for the
consumption of both goods and services) to consumption expenditures; ultimately, this
relationship between preferences and consumption expenditures is used to relate
preferences to consumer demand curves. The link between personal preferences,
consumption, and the demand curve is one of the most closely studied relations in
economics. Consumer choice theory is a way of analyzing how consumers may
achieve equilibrium between preferences and expenditures by maximizing utility as
subject to consumer budget constraints.
Preferences are the desires by each individual for the consumption of goods and
services that translate into choices based on income or wealth for purchases of goods and
services to be combined with the consumer's time to define consumption activities.
Consumption is separated from production, logically, because two different consumers
are involved. In the first case consumption is by the primary individual; in the second
case, a producer might make something that he would not consume himself. Therefore,
different motivations and abilities are involved. The models that make up consumer
theory are used to represent prospectively observable demand patterns for an individual
buyer on the hypothesis of constrained optimization. Prominent variables used to explain
the rate at which the good is purchased (demanded) are the price per unit of that good,
prices of related goods, and wealth of the consumer.

The fundamental theorem of demand states that the rate of consumption falls as the price
of the good rises; this is called the substitution effect. Clearly, if one does not have
enough money to pay the price, then they cannot buy any of that item. As prices rise,
consumers will substitute away from higher priced goods and services, choosing less
costly alternatives. Subsequently, as the wealth of the individual rises, demand increases,
shifting the demand curve higher at all rates of consumption; this is called theincome
effect. As wealth rises, consumers will substitute away from less costly inferior goods and
services, choosing higher priced alternatives.

A Dynamic Theory of Consumers Preference by Herbert Scarf

Theory of Consumers Choice is based on idea of utility maximization, subject to
constraints in expenditures. A description is given of those utility functions for which
future tastes are independent of past consumption, and an even smaller class is described
for which tastes are stationary in time. It is shown that the utility function will have these
properties only of it is a discounted sum of functions pertaining to consumption in the
separate periods. The discount factor leads to the notion of a personal interest rate, which
may be constant, or a function of the consumption level.
The question of whether a decreasing ratio of expenditure to total wealth is
compatible with such a utility function is discussed. The case of constant personal
interest is examined in detail and it is shown that no stationary utility function permits a
decreasing ratio of expenditure to wealth for a sufficiently wide range of market interest
rates. On the other hand, an example is given of utility indicator with a variable personal

interest rate, which predicts a decreasing ratio of expenditure to wealth for all market
interest rates.
Jonathan Levin and Paul Milgrom Consumer Theory
Consumer theory is concerned with how a rational consumer would make
consumption decisions. What makes this problem worthy of separate study, apart from
the general problem of choice theory, is its particular structure that allows us to derive
economically meaningful results. The structure arises because the consumers choice sets
sets are assumed to be defined by certain prices and the consumers income or wealth.

Conceptual Framework
INPUT

PROCESS

OUTPUT

Preferred drinks of the

respondents in terms
of:

Assessment of
Factors of
Consumer
Preferences through

Significant
relationship between
the two different
beverages to the
consumer
preference

Carbonated Drinks
Health Drinks
Factors that affect
buying behavior of
consumers between
carbonated drinks and
health drinks

1.1

Survey
Questionnaires

1.2

Interview

1.3 Observation

2.1 Price
2.2 Taste
2.3 Advertisement

FEEDBACK LOOP
Fig. 1 Paradigm of the Study
This study uses input, process, output model. Input includes the preferred drinks
of the respondents and factors that affect the consumer preference of carbonated drinks
and health drinks in terms of price, taste, and advertisement. Process intends to make the
present study verifiable which includes survey questionnaires, interview and observation.
Output aims to present the expected result of this study based on the relationship between
the two beverages namely: carbonated drinks and health drinks by the selected
households of Barangay Macabling in the City of Santa Rosa, Laguna.

10

Statement of the Problem

This study aims to determine the relationship between carbonated drinks and
health drinks to the consumer preference by the selected households of Barangay
Macabling in the City of Santa Rosa, Laguna.
Specifically, the researchers intend to answer the following questions:
1

Which of the two drinks the respondents preferred:

1

Carbonated Drinks

Health Drinks

What factors do respondents consider in buying their preferred drinks in terms of:
2.1 Price
2.2 Taste
2.3 Advertisement

3.

Is there any significant relationship between the two different beverages?

Hypothesis
There is no significant relationship between the carbonated drinks and health
drinks to the consumer preference by the selected households of Barangay Macabling in
the City of Santa Rosa, Laguna.

11

Significance of the Study

Other Researchers
The study will benefit the other researchers that will add to the growing body of

information in the field of educational research. The result of the study will be serving as
a guide and material to a better understanding of other researchers who would like to
embark on a conduct of study of similar nature.

Beverage Companies and Distributors

The study will help the beverage companies and distributors to improve and to

think of new innovations in their products to increase customer satisfaction.

Beverage patrons
The study will help soft drink patrons in their decision making in choosing the

best available options in order for them to be aware in fulfilling their needs.

Scope and Limitations

This research study focus on the relationship between carbonated drinks and
health drinks to the consumer preference by the households of Barangay Macabling in the
City of Santa Rosa, Laguna in terms of price, taste, and advertisement.
The samples were taken from the households with a total of 3920, but only 363
individuals were selected for the study.

12

Definition of Terms
Terms here are conceptually and operationally defined for better understanding of the
readers.
Behavioral variables are the criteria or yardsticks for measuring and comparing among
different individuals.

Mainly observable and measurable characteristics including

gender, income, education, social class, organizational productivity, task orientation,

recall memory, recognition memory, and achievement (Kerlinger & Lee, 2001).
Beverages are any one of various liquids for drinking, usually excluding water
specifically prepared for human consumption.
Consumer Preference is the study of how people buy, what they buy and when they buy.
It involves how consumers select goods and services.
Carbon Dioxide is a naturally occurring chemical compound composed of two oxygen
atoms each covalently double bonded to a single carbon atom.
Carbonated drink is a beverage that has had carbon dioxide dissolved into it for some
reason, most often to improve the taste, texture, or both. It is cold drink that is usually
sweet, does not contain alcohol, and is often sold in bottles or cans.
Embark is to begin a course of action, especially one that is important or demanding.
Enormous is very large in size, quantity, or extent.
Health Drink is a beverage that claims to be beneficial to health.

13

Outlet is a brick and mortar or online retail store in which manufacturers sell their stock
directly to the public.
Product Development is a system of defined steps and tasks such as strategy,
organization,

concept

generation,

marketing

plan

creation,

evaluation,

and

commercialization of a new product.

Purchase Behavior is the decision processes and acts of people involved in buying and using
products.

Vast is of very great extent or quantity, immense.

14

Chapter II
THE REVIEW OF RELATED LITERATURE AND STUDIES
Foreign Literature
Cambridge Dictionary defines Consumer Preference as the fact of people liking
one thing over another. Also, as the subjective (individual) tastes, as measured by utility,
of various bundles of goods according to the levels of utility they give the consumer. The
preferences are independent of income and prices. Ability to purchase goods does not
determine a consumers likes and dislikes. In other words, the consumer has different
preferences over the different combinations of goods defined by the set of commodity
bundles. (www.usi.edu/business)
Another definition by Krisnawamy et al. (2006) of Consumer Preference is used
primary to mean to select an option that has the greatest anticipated value among a
number of options by the consumer in order to satisfy his/her needs or desires.
Preferences indicate choices among neutral or more valued options available. The
preference of the consumer is the result of their behavior they show during searching,
purchasing and disposing the products.
Similarly, Kotler (2008) stated that Consumer Preferences are measured in terms
of the level of satisfaction the consumer obtains from consuming various combinations of
bundles of goods. The consumers objective is to choose the bundle of goods which
provides the greatest level of satisfaction as they the consumer define it. But consumers
are very much constrained in their choices. These constraints are defined by the
consumers income, and the prices the consumer pays for the goods. Consumer value is

15

measured in terms of the relative utilities between goods and these reflect the consumer
preferences.
Furthermore, Professor Chen discussed about the Nature of Consumer
Preferences. How consumers make choices is an important question. To answer this,
theres a need to know the nature of consumer preferences. Suppose there are several
market baskets (or commodity bundles), say A, B, C, etc., each of which consists of some
combination of goods. A consumer should have some preferences over these baskets. He
also enumerated the three assumptions regarding preferences, namely: 1.) Completeness,
for any two baskets, the consumer should be able to compare them. In other words, if A
and B are any two baskets, the consumer should be able to say whether she likes A better,
or B better, or she is indifferent between the two (she equally likes them) Then, 2.)
Transitivity, if a consumer prefers A to B, and prefers B to C, then she should prefer A to
C. Lastly, 3.) Nonsatiation, the consumer always prefers more to less of a commodity.
The underlying foundation of demand, therefore, is a model of how consumers
behave. The individual consumer has a set of preferences and values whose determination
is outside the realm of economics. They are no doubt dependent upon culture, education,
and individual tastes, among a plethora of other factors. In the article wrote by Flamberg
(2014), he said that when consumers set preferences and brands execute on them,
research suggests that engagement, purchases and customer satisfaction soar. The trick is
incorporating preference as a highly desired element with CRM architecture or
environment. A brand without a preference center is partially faking CRM.

16

Accordingly, Carpenter and Nakamoto (2013) reflected on Consumer

Preferences Formation and Pioneering Advantage that Consumer Preferences are, at
least in part, the outcome of competition. Lacking fixed, exogenous preferences, buyers
learn their preferences through trial and error on the basis of the available alternatives,
prices, and positions making inferences about what attributes they do and do not like.
Thus, preferences for attributes evolve with consumer experience. Competition,
therefore, can be viewed in part as a race to shape the nature of Consumer Preferences.
Foreign Studies
In their perceptual study on the Consumer Preference towards Carbonated Drinks,
Ubeja and Patel (March, 2014) identified many factors related to consumer preferences
and with the help of their method of analyzing the factors, they have found six new
factors, namely: Mental Relaxation, Price, Refreshment, Brand Name, Hygiene and
Taste. These factors mainly affect the buying behavior of the consumers with respect to
the saleability of carbonated drinks in the market. On the other hand, Mevlt Gl, (2012)
posited that product types (orange, sour cherry, etc.) were determined as the most
important factor on consumers fruit juice purchasing preferences with the rate of 28.34%
other important factors were found as price level (16.83%), having an international
quality and food safety certificates (16.14%), being organic or not (15.21%), production
methods (13.06%) and containing sugar additive or not (10.43%). The quality set of fruit
juice which maximizes consumer satisfaction was determined as, the orange juice which
is 100% fruit juice, without sugar additive, organic and has international quality and food
safety certificates and affordable price.

17

Another study conducted by Redondo (2014) revealed that carbonated drinks are
beverages composed of water and other ingredients that provide specific sensorial
attributes. Carbonated drink consumption patterns have recently been changed partially
influenced by an increased availability of different types of beverages during the last few
years. Consumers' preferences to choose one drink over another are influenced, not only
by genetic, psychological and environmental factors, but also by the beverage's specific
attributes. In fact, beverage consumption is driven by the sensations it gives. Because the
main component of carbonated drink is water, an increase in the intake might improve
fluid intake and the levels of water in the body if it is regarded as an "essential
nutrient". While Hutchings (2003), disclosed in his study that intensifying the fruit colors
could strengthen expectation for the juice flavor. Consumers with high environmental
interests were more likely to pay a premium for a fruit juice with organic ingredients and
a nutritional index on the label. (Bonilla, 2010)
Vijay (2010) revealed that it is inferred that consumption of carbonated drinks
rank first, second is the Attractive package enhancing the consumer to buy and the third,
carbonated drinks really give lift to the consumers. It can be observed that the
respondents preferences on the likeliness of carbonated drinks varied significantly based
on Age. As the age of the consumers ascends, the preferences over the carbonated drinks
come down. In another study which was performed by using conjoint analysis, consumer
behaviors and competition in meat and milk sector in Erzurum were evaluated (Topu,
2006). Besides this, fruit juice consumptions relationships with demographical variables
such as age, race and diets, were evaluated in some studies in Germany and USA.
(Lorinczi, 2009)

18

Abarajithan and Ragel (2011) studied customer switching behavior toward the
carbonated soft-drink market in Sri Lanka. They showed what factors determine
switching behavior among carbonated soft-drink consumers in Sri Lanka. The authors
proposed that the marketing mix influenced the switching behavior. The marketing mix is
considered to consist out of four Ps. The four Ps are product, price, place and promotion
(Kotler, Armstrong; 2010). The study showed that of these dimensions, the marketers
product mix, promotional mix and distributional strategies have a high influence on the
switching decision, whereas price strategy plays a moderate role. In contrast with,
Luckow and Delahunty (2004) revealed their evaluations in their survey about the
consumers preferences about orange juice containing functional components. Moreover,
Gulla et al. (2012) provides a useful insight into production and marketing strategies for a
new juice line for the early morning joggers that could be accompanied by the key
massage, just fresh fruits. All the pleasure and nutritional intake of fruit in an appealing
drink.
In a study conducted by Gopi and Arasu (2012), they focused on factor analysis
model and its application to identify consumer preferences for a popular soft drink
product in Dharmapuri. The results depicted that the consumers preferences were
characterized by four-factors: branding, validation and prices, packaging and taste,
respectively. Rotational factors successfully extracted the factor of branding as the
dominant factor. More recently, in the study of Dr. Shih et al. (March 2015), it is learned
that younger female likes handmade drinks, older female likes self-prepared drinks, only
younger male likes bottle drinks. This study also showed that the frequency of the major
consumption is 3 to 4 times a week for handmade drinks; the less frequency is self-

19

prepared drinks. In addition, this study also demonstrated that there are positive
relationship and direct impact for consumer buying behavior and consumer satisfaction in
beverage industry.
Local Literature
Euromonitor International (2014) revealed that local consumers continue to
purchase soft drinks as beverages to drink during snack and meal times. But price still
remains a key to consideration in purchasing decisions to most Philippine consumers who
are price-conscious and choosing product that are more affordable. Also, the proximity
which dictates the choice of distribution channel affects their buying behavior because
most Filipino tends to buy from retailers that are closest to where they live. It is then
presumed that the industry of soft drinks will continue to grow and gain more profits in
the future.
As a result, some governments abroad have banned or limited the sale of soft
drinks in schools. Last May, for example, Peru approved a law designed to reduce child
obesity by encouraging healthier eating habits in schools. It regulated advertising for
fatty foods and fizzy soft drinks in schools, the first step in a plan to ban some junk food
altogether. Some schools in the Philippines have also already taken out soda drinks from
their cafeterias.
Cabiao (2013) said that to understand a Filipino consumer, businesses should
focus on 4 factors: beauty, hygiene, health and convenience. Over the 5 past years,
growth of purchase in ready-to-drink choco drinks, ready-to-drink coffee and ready-todrink energy/sports drinks have increased.

20

Young and Pagoso (2008) defined Consumer Behavior as the behavior that
consumers exhibit in looking, purchasing, using, evaluating, and disposing products and
services that they expect to satisfy their needs. The study of consumer behavior focuses
on how individuals make decisions to spend their available resources like money, time,
and effort on consumption-related items.
They have also listed the factors that influence consumer behavior, namely:
Culture, Social, Psychological and Personal Factors.
Local Studies
All efforts have been made but no related local studies have been found.
Synthesis of Related Literatures and Studies
Rowland (2013) and the Euromonitor International (2014) revealed that it is the
price that the majority of the consumers are concern. They prefer to buy beverages
depending upon the affordability of the product. They make choices not just by
determining the brand name but by satisfying oneself through the factors that affects the
buying behavior of the consumers.
On the other hand, the present study came out with significant findings that there
are some factors that greatly affect the buying mechanism of consumers with regards to
what kind of carbonated soft drinks to buy and to what extent it would bring the
consumer to the satisfaction level.

22
21

The same previously cited study recognized, to a certain level, the factors which
contribute to the buying behavior of the consumers in choosing the kind of soft drinks
especially for thirst-quencher regardless of the brand name. The present study recognizes
the same condition particularly on the preferences of the consumers in their choices of
soft drinks considering the factors that could adversely affect the companys growing
profit in the country.

Chapter III
METHODOLOGY OF RESEARCH

23

This chapter includes the methods of research, population, and sample size,
descriptions of the respondents, instrumentation, data gathering procedure, and statistical
treatment of data.
Research Method
Descriptive Research intends to describe and interpret what is. It reveals
conditions or relationships that exist or do not exist, practices that prevail or do not
prevail, beliefs of points of view or attitudes that are not held, processes that are going
on or otherwise, effects that are being felt, or trends that are developing. It attempts to
interpret the present. In business research, it may reveal status of old and new products,
consumer product acceptance or preferences, advertising schemes, market trends and
other studies pertinent to business operation.

Population and Sample Size

The total household of the study is three thousand nine hundred twenty (3920)
respondents in Barangay Macabling City of Santa Rosa, Laguna. The source of the
information is from the Municipal Hall of Barangay Macabling in the City of Santa Rosa,
Laguna.
To determine the sample size of the total population the researcher used:
Slovens Formula
N
n=
1 + Ne2
Where:
n = number of sample
N = total population
1 = constant
e = margin of error (5%)

24

3920
N=
1 + 3920 (5%)2
3920
=
1 + 3920 (0.05)2
3920
=
1 + 3920 (0.0025)
3920
=
1 + 9.8
3920
=
10.8
n

362.96 or 363

Description of the Respondents

The researchers have three hundred sixty-three (363) respondents from the
selected households of Barangay Macabling in the City of Santa Rosa, Laguna.
Instrumentation
The survey questionnaire is use as a research instrument. The questionnaire will
focus in the Relationship of Carbonated Drinks and Health Drinks to the consumer
preference by the selected households of Barangay Macabling in the City of Santa Rosa,
Laguna.
WEIGHTED MEAN
4.50 5.00
3.40 4.49
2.60 3.39
1.80 2.59

VERBAL INTERPRETATION
Highly Preferred
Preferred
Slightly Preferred
Less Preferred

25

1.00 1.79

Not Preferred

Data Gathering Procedure

The researcher will use the following data gathering procedure for the study. First,
the researchers will observe the consumers of the two beverages in Barangay Macabling
City of Santa Rosa, Laguna. Then, the group will proceed in survey questionnaire that is
focus on the Relationship of Carbonated Drinks and Health Drinks. The primary data will
be gathering by means of visiting the barangay and conducting a survey questionnaire to
the respondents. The researcher also need the secondary sources of data coming from
books and published materials related to the study. The researcher of the study has chosen
the random sampling.
Statistical Treatment of Data
The researchers will use statistics as the basic tools of measurement research, in
order to analyze the data gathering by the researchers. The researcher will use Slovens
formula for the purpose of computing the sample size; Frequency and Percentage
Formula for expressing the relative frequency of survey responses and other data; Likert
Scale for verbal interpretation and to interpret the weighted mean and weighted mean
which is useful indicator of finding the most and at the same time the least favored of the
respondents in the group; and lastly, Chi-square Test Formula for testing goodness of fit
is used to decide whether there is any difference between the observed (experimental)
value and the expected (theoretical) value.
Slovens Formula:
N
n=
1 + Ne2
Where:
n = Number of sample
N = Total population

27
26

1 = Constant
e = Margin of error (5%)
Frequency and Percentage Formula:
% = f/n (100)
Where:
% = Percentage
f = Frequency
n = Number of total respondents
Weighted Mean Formula:
WM = fiwi
wi
Where:
f = Frequency
n = Number of samples
w = Weight factor
Chi-square Test Formula:
(oe)2
X2 =
e

Where:
O = Observed frequency
E = Expected frequency
= Summation
X2 = Chi Square value

Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

28

This chapter shows the tabulated, analyzed and interpreted data on the questionnaires
answered by the selected households of Barangay Macabling in the City of Santa Rosa,
Laguna posited in the study.
Table 1
PREFERRED DRINKS OF THE RESPONDENTS
Drinks

Frequency

Percentage

Carbonated Drinks

243

67%

Health Drinks

120

33%

Total

363

100%

The table shows the preferred drinks of the respondents. Out of three hundred sixty three
(363) respondents, two hundred forty three (243) or sixty seven percent (67%) preferred
carbonated drinks; and one hundred twenty (120) or thirty three percent (33%) preferred
health drinks.

Table 2
Factors that Affect the Consumers Preferences in Buying Carbonated Drinks and
Health Drinks with their General Weighted Mean

29

CARBONATED DRINKS
f
X
Interpretation

PRICE

243

4.06

Preferred

120

TASTE

243

4.04

Preferred

120

ADVERTISEMENT

243

3.81

Preferred

120

3.97

Preferred

GENERAL AVERAGE

HEALTH DRINKS
X
Interpretation
4.1
4
Preferred
3.7
4
Preferred
3.6
1
Preferred
3.8
3
Preferred

The table shows the Factors that Affect the Consumers Preferences in Buying
Carbonated Drinks and Health Drinks with their General Weighted Mean. With two
hundred forty three (243) respondents that preferred carbonated drinks, in terms of Price,
it gained a general weighted mean of 4.06; in terms of Taste, it gained a general weighted
mean of 4.04; and in terms of Advertisement, it gained a general weighted mean of 3.81.
It gained a general average of 3.97, and is interpreted as Preferred.
With one hundred twenty (120) respondents that preferred carbonated drinks, in
terms of Price, it gained a general weighted mean of 4.14; in terms of Taste, it gained a
general weighted mean of 3.74; and in terms of Advertisement, it gained a general
weighted mean of 3.61. It gained a general average of 3.83, and is interpreted as
Preferred.

Table 3
Significant Relationship of the Factors that Affect the Consumers Preferences in Buying
Carbonated Drinks and Health Drinks

Price
Carbonate
d Drinks
Health
Drinks
Total

Taste

Advertisement
O
E

Total

4.06

4.10

4.04

4.10

3.81

3.72

11.91

4.12
8.18

4.08

4.14
8.18

4.08

3.61
7.42

3.70

11.87
23.78

(4.06-4.10)2 + (4.04-4.10)2 + (3.81-3.72)2 + (4.12-4.08)2 + (4.14-4.08)2 + (3.61-3.70)2

4.10
4.10
3.72
4.08
4.08
3.70
= 0.0003 + 0.001 + 0.002 + 0.0003 + 0.001 + 0.002 = 0.0066 or 0.01

Table 4

Test
Is there any significant
relationship between the
different beverages?

Degree
of
Freedom

X2

Hypothesi
s

Interpretation

0.05

0.01

Accepted

Accept the
Null
Hypothesis

df= (r-1)(c-1)
= (2-1)(3-1)
= (1)(2)
=2
The table shows the degree of freedom with the computed chi-square of 0.01 with the
tabular value of 5.99. This means that the computed chi-square is less than the tabular
value which makes the null hypothesis accepted.

30
31

Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter deals with the summary of the findings together with the conclusions and
recommendations derived from the findings of the study.
This study was conducted to identify the relationship between carbonated drinks
and health drinks to the consumer preference by the the selected households of Barangay
Macabling in the City of Santa Rosa, Laguna.
Specifically, the study sought to answer the following questions:
1. Which of the two drinks the respondents preferred?
1

Carbonated Drinks

Health Drinks

2. What factors do respondents consider in buying their preferred drinks in terms of:
2.1
Price
2.2
Taste
2.3
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3. Is there any significant relationship between the two different beverages?
This study made use of the descriptive method of research, the questionnaire as
the primary data gathering instrument. Respondents were from the selected households of
Barangay Macabling in the City of Santa Rosa, Laguna.

Findings
Based on the data gathered in this study, the following findings were drawn up:

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1.

The study revealed that sixty seven percent (67%) of the respondents preferred to
buy carbonated drinks; and thirty three percent (33%) preferred to buy health
drinks.

2.

Factors that affect the consumers preferences in buying their preferred drinks in

terms of:
a) Price. It was found out that respondents preferred carbonated drinks than health
drinks in terms of price.
b) Taste. It was discovered that respondents preferred health drinks than carbonated
drinks in terms of taste.
c) Advertisement. It was found out that carbonated drinks are preferred by the
respondents than health drinks in terms of advertisement.
To top it all, the first factor why respondents prefer to buy carbonated drinks was
the price (4.07), followed closely by taste (4.06), then promotion (3.81), and the last
factor they consider was the color (3.74).
The first factor why respondents prefer to buy health drinks was the taste (4.07),
next was the price (3.78), then the color (3.74), last factor they consider was promotion
(3.72).
3. There is no significant relationship between the carbonated drinks and health drinks as
to the consumer preference of the respondents. This showed that the relationship between
carbonated drinks and health drinks did not affect their consumer preference.
Conclusions

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The findings of the study revealed that households of Barangay Macabling in the
City of Santa Rosa, Laguna highly preferred to buy Carbonated Drinks than Health
Drinks.
It was shown that they preferred buying carbonated drinks because of its price. It
was followed by the taste and the least factor that affects their buying preference is the
advertisement of the different beverages companies.
When it comes to health drinks, price mostly affects the consumer preference in
buying it. It was followed by the taste and lastly the advertisement of it.
To top it all, this study shown that the households of Barangay Macabling mostly
affects their consumer preference in buying both carbonated drinks and health drinks in
terms of Price
.
Recommendation
In view of the findings and conclusions thereof, the following are recommended:
Several recommendations can be made as a result for conducting this study. First, the
companies must concentrate on creating more awareness level for health drinks although
it is quite familiar to consumers but not quite as popular as carbonated drinks. Second,
companies should focus in improving and using appropriate marketing techniques in
terms of price, and taste thereby increasing the demand for health drinks. And lastly, in
companies aspect, this study is worthy to use to determine and to develop the possible
new marketing strategies and alternatives considering the factors of the two drinks,
namely the carbonated drinks and health drinks.