FACTORS AFFECTING MILKTEA CONSUMERS BUYING BEHAVIOR ON

SELECTED MILKTEA SHOPS IN SIGNAL VILLAGE, TAGUIG

TOWARDS OBTAINING SUSTAINABILITY

A Research Paper Presented to the

Faculty of Learn and Explore Montessori School

Senior High School Department

In partial fulfilment of the requirements in

Practical Research 2

Proponents

Florida, Ernesmarc

Abregana, Jasmine Grace

Abulok, Richelle Ann

Andres, Kristal Joy

Basanes, Kaye

Bautista, Mariel

Cardeno, Jessica Gem

OCTOBER 2019
 DEDICATION

“The price of success is hard work, dedication to the job at hand, and the determination

that whether we win or lose, we have applied the best of ourselves to the task at hand”.

The Researchers want to dedicate this Research Paper to our beloved parents, who have

been our source of inspiration and gave us strength when we thought of giving up, who

continually provide their moral, spiritual, emotional, and financial support.

To our brothers, sisters, relatives, mentor, friends, and classmates who shared their

words of advice and encouragement to finish this study.

And lastly, the researchers also want to dedicate this research to those milk tea

consumers to give them awareness and for them to have knowledge on their buying behavior in

purchasing milk tea. And to those manager and owner of this kind of business to give them idea

on improving their business so that customers will keep on patronizing their product.

Thank you!

THE RESEARCHERS
 ACKNOWLEDGEMENT

The researchers want to extend their sincerest gratitude and appreciation to all persons

who have helped them in whatever form.

First and foremost, to the Almighty God, that gives us strength, power of mind,

protection, skills, guidance, and for giving us a healthy life. All of these, we offer to him.

To our respondents who lend their precious time in sincerely answering our

questionnaire, for sharing and suggesting ideas to pursue this study for its completion.

To our mentor, Sir Jonathan Nonato, who guided us and corrected all the mistakes. He

gave his full support in this study, for his patience, motivation, enthusiasm, immense

knowledge, and for giving us feedbacks for the betterment of the study.

To our parents and relatives who always support us not just financially but also

spiritually throughout our life. For understanding our situation while making the study and for

encouraging us to give our full efforts just to pursue this study

Thank you so much to all of you. God Bless!

THE RESEARCHERS
 Table of Contents

DEDICATION………………………………………………………………………………………………………………………….ii

ACKNOWLEDGEMENT…………………………………………………………………………………………………………..iii

CHAPTER 1: THE PROBLEM AND ITS BACKGROUND

INTRODUCTION……………………………………………………………………………………………………………...1

BACKGROUND OF THE STUDY…………………………………………………………………………………………3

THEORETICAL FRAMEWORK……………………………………………………………………………………………4

CONCEPTUAL FRAMEWORK……………………………………………………………………………………………6

STATEMENT OF THE PROBLEM……………………………………………………………………………………….7

SCOPE AND LIMITATION…………………………………………………………………………………………………8

SIGNIFICANCE OF THE STUDY…………………………………………………………………………………………8

DEFINITION OF TERMS……………………………………………………………………………………………………9

CHAPTER 2: REVIEW OF RELATED LITERATURE AND STUDIES

FOREIGN LITERATURE…………………………………………………………………………………………………..10

FOREIGN STUDIES…………………………………………………………………………………………………………11

LOCAL LITERATURE……………………………………………………………………………………………………….12

LOCAL STUDIES…………………………………………………………………………………………………………….13

CHAPTER 3: RESEARCH METHODOLOGY

RESEARCH METHOD USED……………………………………………………………………………………………14

POPULATION AND SAMPLE SIZE……………………………………………………………………………………14

RESEARCH INSTRUMENT………………………………………………………………………………………………15

DATA GATHERING PROCEDURE…………………………………………………………………………………….15

STATISTICAL TREATMENT……………………………………………………………………………………………..15
BIBLIOGRAPHY…………………………………………………………………………………………………………………….17

APPENDICES…………………………………………………………………………………………………………………………18
 Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Milk tea is an extremely popular drink in most of Asian countries. It originally started

from Taiwan in 1988. Milk tea is simply what it sounds like-tea with milk added. It is made of

hot or cold tea, milk, sugar and pearl. Ice is then added and chewy balls or pearls are consumed

along with the beverage click to most teenagers and young professionals. A franchise for this

business venture is indeed promising as it strategically targets healthy conscious individuals as

well.

According to Vernie Cobreros-Farro co-founder and general manager of Tea Generation,

milk shops are currently among the most popular hang-out places in the Metro along with

cafes. Times are changing, so do people. They want to socialize more. A cozy chat over a milk

tea is just right for exchanging gossips, planning outings or simply relaxing and pampering one

self. As milk tea shop gives a certain fun and cool environment, it attracts group of students and

working group that are mostly under the age of 30. Many shops have been put up, so milk tea

isn’t as rare as it used to be.

However, the sheer number of milk tea fans keeps growing as milk tea shops keep

popping up with their extensive menus. Nowadays, it’s not surprising to see someone you know

drinking milk tea at least once a week, lining up for hours, or having it delivered to their

doorstep. Milk tea shops, after all, carried a similar ambience, a casual space that allowed

visitors to stay for long period of time. Perfect for the students with paper to finish or friends to

hang out with.

 A milk tea business is a great idea for some individuals who would like to venture in this

type of business opportunity as it does not follow the traditional setting of a café because it

even more cost effective as it offers a cheaper franchise package since it products also have

affordable rates. This kind of business also creates employment regardless on the educational

attainment of a person. As long as you can do the job properly, you can have the job already.

Additional to that, is the marketing strategy that milk tea owners usually use in running

this kind of business is the place itself. A cool and relaxing environment that satisfies the mood

of the customer. Some shops have air-conditioning and have free Wi-Fi so now they become

ideal rendezvous spaces. They are also using social media or pamphlets to promote their

business to everyone by putting information about their shop such as the location, opening,

and in what their shop can offer. In that way, it can help the shop to pull customers. There are

also shop that gives good experience to their customers especially the ‘regulars’ by educating

them about tea and tea brewing. And the most important thing is the customer service of the

employees. In order to achieve good flow of the business, even customers, whether on the first

visit or their hundredth, will be treated graciously and with respect.

Nevertheless, milk tea comes in many different delicious forms but there are also

positive health benefits in drinking it regularly. Milk tea is packed with powerful vitamins and

antioxidants, and studies have found that it helps control blood sugar levels, improve the

immune system, and even prevent heart disease.

Background of the Study

Many famous milk tea shops appear at Signal Village in recent years such as Boba Bears

and I Love Milk tea that offers different flavor and refreshing drinks such as coffee jelly,

chocolate, wintermelon, hazelnut, taro, Okinawa, hakaido, and matcha milk tea.

However, milk tea comes from different sizes, the small-12 oz ranges 45 pesos, medium-

16 oz ranges 55 pesos, and the large-24 oz ranges 65 pesos. Recently, there are shops that

introduce reusable cup wherein you’re just going to give additional payment to refill your cup

and no need to buy another drink with the same price.

Hence, as milk tea shops keep on getting trendier, competitors on this business are also

increasing. That’s why some shop is giving promo to their customers so that they can continue

gaining profit in their business. Some of the promo is the Buy 1 Take 1 wherein you can buy a

drink with an additional same drink for free, and the free taste that often happen in the

opening of the shop. Another is milk tea shops carry events such as birthday, baby shower and

so on. Since the place is good for celebration, this strategy will not just gain more profit but will

also promote the shop especially if customer will satisfy to their service.

A versatile drink, milk tea comes in many variations of flavor and color (the most

common of which is served cold rather than hot). Due to its flexibility, it is fast becoming one of

the most popular tea drinks in Signal Village. As the tea industry develops, there is an increase

in the number of milk tea shops and some of that are the Boba Bears and I Love Milk Tea which

recently opened another branch in Central Signal. Determining the buying behaviors and

preferences of consumers between two different milk tea shops will aid in developing

strategies, which in turn would lead in sustaining customer’s loyalty and sustainability in this
industry. So in order to be ahead of the others, one must have a unique concept and an

effective strategy to attract customers.

Theoretical Framework

The theoretical of the study was anchored in theories and assumptions of well-known

experts and specialists. Their writings, inputs and arguments provided the rational and

background for a better understanding of the study.

Martin Fishbein and Icek Ajzen in the late 1960, created the Theory of Reasoned Action

that centers its analysis on the importance of pre-existing attitudes in the decision-making

process. The core of the theory posits that consumers act on behavior based on their invention

to create or receive a particular outcome. In this analysis, consumers are rational actors who

choose to act in their best interests.

According to the theory, specificity is critical in the decision-making process. A consumer

only takes a specific action when there is an equally specific result expected from the time the

consumer decides to act to the time of the action is completed, the consumer retains the ability

to change his or her mind and decide on a different course of action.

Marketers can learn several lessons from the Theory of Reasoned Action. First, when

marketing a product to consumers, marketers, must associate a purchase with a positive result,

and that result must be specific. Second, the theory highlights the importance of moving

consumers through the sales pipeline. Marketers must understand that long lags between

initial intention and the completion of the action allows consumers plenty of time to talk

themselves out of a purchase or question the outcome of the purchase.

 In connection to that, the Engel, Kollet, Blackwell (EKB) Models expands on the Theory

of Reasoned Action, and lays out a five-step process that consumers use when making a

purchase. The first step, input, is where consumers absorb most of the marketing materials

they see on television, newspapers or online. Once the consumer collects the data, he or she

moves into information processing, where the consumer compares the input to past

experiences and expectations.

Consumers move to the decision-making stage after a period of thought, choosing to

make a purchase based on rational insights. Consumers are affected in the decision-making

phase by process variables and external influences, including how the consumer envisions his or

her self after making the purchase.

Under the EKB Model, marketers have two periods where their input is the most

valuable. During the initial information stage, marketers must provide consumers with enough

information about the product to drive the consumer to keep the company’s products under

consideration for purchase. Marketing becomes a factor again in the phase of external

influences. Lifestyle brads are very good at instilling a desire in the consumer to look or feel a

certain way with the product, even if the brand’s product is not fundamentally different from

the competition.

On the other hand, Abraham Maslow (1943), proposed the Motivation-Need Theory.

Under his theory, people act to fulfill their needs based on a five-part priority system. The

needs include, in order of importance: physiological (survival), safety, love, esteem, and self-

actualization.

Business schools and marketing classes adapted Maslow’s theories to explain the need

to tailor marketing messages to consumers in a particular way. Successful marketing campaigns

must not only bring awareness to the product but also establish its place somewhere on the

hierarchy of needs. Consumers are motivated to prioritize purchases toward the base of the

hierarchy, so it is vital that companies draft a message that instills a sense of need or urgency in

consumers.

While many of the theories of consumer behavior focus on rational action, Hawkins

Stern believed heavily in the idea of impulse behavior. Stern argued that sudden buying

impulses fit alongside rational purchasing decisions to paint a complete picture of the average

consumer. Impulse purchases are driven largely by external stimuli and have almost no

relationship to traditional decision-making.

Stern established four categories of impulse buying. First are the pure impulse

purchases, next is the consumers make reminded impulse buys, third are suggested impulse

purchases, and finally, consumers make planned impulse decisions.

Impulse buying theories present an ocean of opportunities for marketers. Every aspect

of a product, from the way the packaging catches the eye to the way the product is displayed in

the store, has an impact on a consumer’s impulse control. Marketers who can capture the

impulsive thought and close the sale will have the most success.

CONCEPTUAL FRAMEWORK

Knowing the fact that related studies are of great significance in making the study more

meaningful and letting the researchers to gain a deeper insight of the problem.

Data Gathering
Factors affecting
consumer’s buying
behavior on selected milk
tea shops
o Personal Influences
o Cultural Influences
o Social Influences
o Psychological
Influences
The result of the study is for
the milk tea consumers to
o Survey provide them information
o Questionnaire about the product they love
o Interview to buy and to their behavior
in buying the product. And
Data Analysis for the owners, to help them
improve their business and
o Statistical
to give them awareness at
Treatment
some instances that their
Interpretation of business may encounter.
Data

FEEDBACK

The researchers’ purpose in this investigation is to discover the factors that affect the

consumer’s buying behavior in terms of the customer’s personal influences, cultural influences,

social influences, and psychological influences.

To gather the data, survey, questionnaire, and interview will be designated as well as

the statistical treatment to interpret the data. In addition, the researchers intend to conduct an

interview with the owner of a shop regarding the marketing strategy, product strategy, and

pricing of the shop.

 The output will give an add knowledge to the consumers about the product and to their

behavior in buying the product. And also helpful information to the owners in improving their

business so they can maintain the good flow of their shop.

Statement of the Problem

This study aims to know the factors affecting milk tea consumers’ buying behavior on

selected shops toward sustaining sustainability in Signal Village, Taguig City. Specifically, it

attempts to answer the following questions:

1. What is the demographic profile of the respondent according to:

1.1 Age

1.2 Gender

1.3 Civil status

1.4 Employment

2. What are the strategies of the owners in sustaining the shop?

3. What is the cultural practice of the customers in terms of:

3.1 Frequency of drinking milk tea

3.2 Preferred milk tea flavor

4. What is the social preference of the customers in terms of:

4.1 Form of advertisement

4.2 Companion in buying milk tea

4.3 Popularity

5. What are the reasons of customers for drinking milk tea?

Scope and Limitation

This study will be conducted at Signal Village, Taguig City that is composed of three

villages: Central Signal, North Signal, and South Signal village that have different milk tea shops

put up around the area and are limited only to the milk tea consumers, employees, and owners.

This research is also limited since the objective of the research is to find out the factors

affecting milk tea consumers buying behavior on selected shops in Signal Village, Taguig City

towards obtaining sustainability. The attainment of this study is dependent to the response of

the respondents.

This will be conducted in this school year 2019-2020. Any changes or progress in details

and information will not be covered by this study.

Significance of the Study

The following will benefit out of this study:

MILK TEA CONSUMERS

To give them wide knowledge about the factors affecting their buying behavior in milk

tea. It will give them information about the product they are buying especially on the things

they don’t know yet about it.

MILK TEA OWNERS

To let them know what kind of improvement does their business need. They will also

have an idea on the consumers that may help them see the strength of their business so that

they can focus on it and as well as the threats the weaknesses of their business so that they can

avoid and take action of it.

OTHER CONSUMERS

To make them curious to the product due to the information they will get from this

research. When they already have an idea about the milk tea product, they will have the power

to decide if they will buy milk tea or not. With the help of this study, they will know what milk

tea brand they will go to buy.

Definition of Terms

The following terms were conceptually defined:

MILK TEA – is a combination of milk and tea with the chewy pearl mix on it. It can be serve in

hot or cold temperature

CONSUMER – a person who purchase goods and services such as milk tea

RENDEZVOUS – a place where many people go to spend time

AMBIENCE – a feeling or mood associated with a particular place, person or thing

EXTENSIVE MENUS – many different kind or flavors of dinks on it

SHEER NUMBER – a great number of

 Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This part of the study presents the review of related literature and studies that are

related to this study.

Foreign Literature

According to Trehan (2009), age is an important factor affecting needs for the products.

The need for products varies with age. If the product is purchased by young persons, it appeals

to their feeling of love, comfort, affection, etc.

Armstrong (2010) stated, a buyer’s decision are also influenced by his or her personal

characteristics, notably the buyer’s age and life-cycle stage, occupation, economic

circumstances, lifestyle and personality, and self-concept.

On the other hand, consumer searches information related to desired product or service

(Schiffman and Kanuk, 2007). Information search process can be internal and external. While

internal search refers to the process where consumers rely on their personal experiences and

believes, external search involves wide of information which includes addressing the media and

advertising of feedbacks from other people (Rose and Samuel, 2009).

Furthermore, Kottler and Keller (2005) consider the evaluation of alternatives as one of

the important stages as the consumer considers all the types and alternatives taking into

account the factors such as size, quality, and also price.

Foreign Studies

There is a wide range of factors that can affect consumer behavior in different ways.

These factors are divided by Hoyer et al (2012) into four broad categories: situational, personal,

social, and cultural factors.

Situational factors impacting consumer behavior may include location, environment,

timing and even weather conditions (Hoyer et al, 2012). In order to benefit from situational

factors major retailers attempt to construct environment and situations in stores that motivate

perspective customers to make purchase decision. Range of available tools to achieve such an

outcome include playing relaxing music in store and producing refreshing smells in store. The

temporary nature of situational factors is rightly stressed by Batra and Kazmi (2008).

Personal factors, on the other hand, include taste preferences, personal financial,

circumstances and related factors. The impact of personal factors on consumer decision making

is usually addressed by businesses during market segmentation, targeting, and positioning

practices by grouping individuals on the basis of their personal circumstances along with other

criteria, and developing products and services that accommodate these circumstances in the

most effective manner.

According to Hoyer et al (2012), social factors impacting consumer behavior arise as a

result of interaction of perspective consumers with others in various levels and circumstances.

Targeting members of society perceived as opinion leaders usually proves effective strategy

when marketing products and services due to the potential of opinion leaders to influence

behavior of other members of society as consumers.

Lastly, cultural factors affecting consumer behavior are related to cross-cultural

differences amongst consumers on local and global sales. Culture can be defined as the ideas,
customs, and social behavior of a particular people or society (Oxford Dictionaries, 2015) and

the tendency of globalization has made it compulsory for cross-cultural amongst consumers to

be taken into account when formulating and communicating marketing messages.

Local Literature

In the middle ages, resources from other countries were usually attended by the use of

swords of the more powerful countries. After the enlightment period, these power countries

realized that trading with resource-rich countries not only took less time, but less gold as well.

The past four centuries saw more and more countries open up their economies which resulted

in the rise of a new class form the bourgeoisie or middle class. The nouveau rich middle class,

which was mostly made up of traders and merchants, gained enough power in numbers to go

against the highly exclusive autocratic ruling and pushed for more rights that started the spark

of democracy (Acemoglu & Robinson, 2012). The rise of the bourgeoisie and democracy also

aided in a decline in violence since citizens were less interested in participating in was and

preferred to spend their time making money (Pinker, 2011).

That along with the industrial revolution has fast-forwarded us to the present where

swords and war ships have been replaced with individualism and hedonism. Society gained an

obsession driven by money as it permitted extravagances and signified prestige. Money, now

more available to be acquired by the masses, has made it easier to focus on one’s image and

social status by obtaining materialistic goods that would appeal to sensory and symbolic desires

instead of the usual basic necessities (Wang & Weller, 2006), now, instead of being influenced

by utilitarian and functional needs, people’s purchasing behavior is influenced by

advertisements that puts an emphasis on vanity and materialistic pleasure (Chang et al., 2011).
 However, Neal et al (2004) argues that post-purchase decision is perhaps one of the

most important stages in the consumer decision making process as it directly affects the

consumers’ purchase of the same product or service from the same supplier in the future.

Local Studies

Nielsen online survey on Global Consumers (2003) reported that 77% of Filipino

respondents said that they already have preferred brands and types of products before buying.

Consumers seldom switch to different brands and often remaining with their favorite shampoo

(63%), deodorant (56%), and coffee (53%). Even if they were presented with a promotional

offer from other brands. Filipinos usually stick to their preferred brand.

However, a report by Pancake House Incorporation states that Filipinos are open to new

brands, but they are also very fickle. Filipino consumers are not difficult when introducing a

new brand, but it is hard maintaining their interest with the product. In other words, the only

battle in introducing new brands to consumers is the constant “battle to sustain attention and

loyalty” (Bernadette Lee, COO of Pancake House).

According to Nielsen’s Philippine Shopper Trends Report (2013) revealed affordability as

the key driver of new product purchase for Filipino consumers, followed by convenience and

personal recommendation. Filipino shoppers have said that they like new products or emerging

products that are “centered on affordability, health and sustainability, and convenience as

important considerations”.
 Chapter 3

RESEARCH METHODOLOGY

This chapter presents a discussion of the research design, the instruments used for

gathering data, and the statistical treatment applied in analyzing the data.

Research Method Used

Researchers will use the descriptive method of research to collect and analyze the data

on the factors affecting milk tea consumers buying behavior on selected shops in Signal Village,

Taguig towards obtaining sustainability. The nature of this study will necessitate the utilization

of the descriptive survey.

According to Manuel and Madel (1976), descriptive research involves the description,

recording, analysis and interpretation of the present nature, composition, or process of

phenomena. The focus is on the prevailing conditions, on how a person, group or thing behaves

or functions at the time of the study.

This method is used to gather information in order to test hypothesis or to answer

questions concerning the current status of the object of the study.

Population and Sample Size

To gather the number of respondents in this study, the researchers will use the

probability sampling. There will be fifty (50) random customers of each selected milk tea shop

(with total of 100 respondents) in Signal Village, Taguig that will serve as the respondents. The

researchers will give questionnaire also to the manager or owner of selected shops answering

some information about their business such as their marketing strategy, product strategy, and

pricing of their products.

Research Instrument

The following instruments were used in gathering the data:

Survey questionnaires will be given to 50 customers of each selected milk tea shop.

In Part I we used the Recall Type kind of instrument where in their replies are recalled.

In Part II we used the Multiple Response which the choices given were more than two and can

choose more than one response from the respondents.

In Part III we used the Rank Order Scale that allows respondents to rank the row items. And the

Multiple Choice which the respondents were given more than two choices but can only choose

one response to the question.

In Part IV we used the Likert Scale which allow the respondents to express how much they

agree or disagree with the particular statement.

In Part V is the interview to the consumers to know their reasons in purchasing milk tea.

Data Gathering Procedure

This data will be gathered through the questionnaires that will be distributed by the

researchers to the respondents asking permission from the consumers of milk tea, owners of

the shop and lastly to the respondents themselves.

Statistical Treatment

The data will be obtained from the questionnaires will be selected and chosen to

statistical treatment in order to make the interpretation of the results liable and valid. The

following statistical tools and measures will be utilized in the analysis, description and

interpretation of computed results. The formula that will be used is:

Formula:

P = x/n (100)

Where: P = Percentage

X = Frequency

N = Population
 BIBLIOGRAPHY

https://opentoexport.com/article/capturing-filipino-consumers/

https://www.researchgate.net/publication/317357752_Consumer_Behavior_Among_Fil

ipino

https://research-methodology.net/a-brief-literature-review-on-consumer-buying-

behaviour/

https://research-methodology.net

https://www.eaglenews.ph

https://ejournals.ph
 APPENDICES

Research questionnaire made for the survey on the factors affecting milk tea consumers

buying behavior on selected shops in Signal Village, Taguig towards obtaining sustainability.

Name (Optional):______________________________

I. Respondent’s Profile

Direction: check the box that contains the answer that suits to the question.

Age: Gender: Civil Status: Employment:

Less than 18 Male Single Employed

18-24 Female Married Unemployed

25-30 Widowed

30 and above Separated

II. (For Manager or Owner only)

Direction: Put a check (/) on the line in lined with your answers. You can choose multiple

responses for this.

*what are the strategies used in sustaining your shop or business?

_social media _pamphlets _promos _posters _location of the shop

_product pricing _product sizes _ambience of the store _offers to customers

_offered flavors _aesthetic background

III. Respondent’s Cultural Practices

Direction: rank the following shows in order of preferences-5 being your most favorite and

1 being your least favorite.

I Love Milk Tea Boba Bears

Wintermelon Milo blast nutella

 Dark choco Wintermelon

Black forest Dark choco

Royal Black forest

Cookies and cream Royal

Direction: shade the circle that contains the answer that suits to the question.

*How frequently do you drink milk tea per week?

o Once a week

o 2-4 times

o 5-6 times

o Everyday

IV. Respondent’s Social Preferences

Direction: Check (/) and rate your self based on what you actually do in the given statement

using the following scale bellow.

5-Always 4-Often 3-Sometimes 2-Rarely 1-Never

Situations: 1 2 3 4 5

Milk tea satisfies my thirst.

I buy milk tea because of my friends

Every time I drink milk tea the taste seems like new to me

I’d rather drink milk tea rather than any kind of drinks

There’s milk tea wherever place I go

I am influenced by the current trends

I prefer drinking milk tea alone

I buy milk tea because of the friends I have

I am interested to read and listen to the feedback first

before buying it

I prefer drinking milk tea with my friends

I drink milk tea because of the influence of my family

Part V: (Interview)

*what are your reasons of buying milk tea?