1

CHAPTER 1
INTRODUCTION

Milk tea is now one of the most popular trends in the food and beverage

industry. People go crazy over milk tea because of its low price, refreshing taste,

health benefits and the store’s ambiance (Raymundo, 2012).With the increasing

demand of milk tea, lots of entrepreneurs put up tea house everywhere. Some

people fancy the fun way of preparation which takes some time, but some do not

because they might be in a hurry.

As the tea industry develops, there is an increase in the number of milk tea

stores all over the world and among any other milk tea stores; Dakasi is one of the

most popular especially among generation Z. It has been established in Taiwan

since 1990, serving fresh tea drinks. In 1999, it opened stores in Guangzhou, China

and eventually set up its main office there. After more than 10 years of endeavor,

outlets have spread throughout China and Southeast Asia. It’s now a tremendously

influential brand in China and has become the number one brand among its

counterparts.

Dakasi believes in the principle of “customer first” and “service first”. It

upholds the business concept of quality, constant improvement and innovation with

a goal to attain 100% customer satisfaction and increase the economic efficiency of

the business, in which, the company has achieved outstanding results, and has won

praise from all sectors of the society, making Dakasi a one-of-a-kind tea drink

enterprise.
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Pearl milk tea or bubble tea, and unique Taiwanese style fresh tea drinks

have been the favorite beverage of the Taiwanese people. These fresh, convenient

and tasty drinks have taken the world by storm. Mr. Luo, the brilliant and visionary

founder of Dakasi has devoted himself to leading the Dakasi Tea Drink Industry

towards this worldwide trend, developing its own unique products, providing

genuine and high-quality products and implementing a cooperative mode of

working.

Dakasi Philippines aims to develop a nationwide chain of gourmet drinks.

All drinks at Dakasi are made with fresh ingredients with no artificial flavoring and

little to no additives. We pride ourselves in our own recipes for cooking tea, pearls

and sugar, guaranteeing a taste that cannot be found anywhere else. With our fresh,

unique, and convenient drinks, we want to make milk teas an indispensable part of

the daily lives of Filipinos.

Background of the Study

Milk tea shops are currently among the most popular hang-out places in the

metro along with cafés. “Times are changing, so do people. They want to socialize

more. A milk tea shop is therefore a perfect place for them. It gives a certain fun

and cool environment, whereas coffee shops tend to be more formal and serious.”

Today’s generation also has a special craving for anything sweet. Given

that milk tea is relatively a milder beverage than coffee (not to mention sweeter), it

has an after taste is not as distinct as its counterpart – a quality that most teens and
 3

yuppies appreciate. Obviously, that is one the reasons why the industry continues

to prosper.

Moreover, milk tea, due to its flexibility, is fast becoming one of the most

popular tea drinks in the world and is gaining a lot of attention that leads to its high

demand. It has been suddenly patronized and many people go gaga on this kind of

beverage when in fact it already existed before. Acknowledging it, the researchers

were impelled to conduct an in-depth study of demographics and also how price,

price of related goods, income/allowance, taste, and future expectations affects the

demand of consumers for Dakasi milk tea to thoroughly understand the impact of

those determinants in the consumers while making a purchase.

Statement of the Problem

This study focused on the factors affecting the demand for Dakasi milk tea.

Specifically, this study seeks to answer the following questions:

1. What is the socio-demographic profile of the consumers/respondents in

terms of:

1.1 place of residence?

1.2 age?

1.3 gender? and

1.4 occupation?

2. What are the determinants of demand for Dakasi Milk tea in terms of:

3.1 price?
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3.2 price of related goods?

3.3 monthly income/allowance?

3.4 taste/preference? and

3.5 future expectations?

3. Is there any significant relationship between determinants of demand and

demand for Dakasi milk tea?

Objectives of the Study

The main objective of this research was to determine the factors affecting

the demand for Dakasi milk tea. Specifically the study was conducted for the

following purposes:

1. To describe the socio-demographic profile of the respondents in terms of

place of residence, age, gender, and occupation;

2. To describe the determinants of demand for Dakasi Milk tea in terms of

price, price of related goods, monthly income/allowance, taste/preference

and future expectations;

3. To estimate the effect of determinants of demand (price, price of related

goods, monthly income/allowance, taste/preference and future

expectations) on demand for Dakasi milk tea.

Hypotheses of the Study

Buyers are willing and able to purchase to a greater extent when the price

of a good is low and to a lesser degree when the price of a good is high. When the
 5

price of a good rises consumers tend to shift from that good to other relative good

that as a cheaper price, so as when the price of a good falls, consumers tend to buy

more from that good than the other relative good that has an expensive price. Price

is inversely proportional to Quantity demanded when all other factors are held

constant (Maurice & Thomas, 2016).

The findings of Grewal in 2015 revealed that the influence of price and

promotions can attract new customers has become important in modern retailing.

H1: There exists relationship between price factor and demand applied when

purchasing Dakasi milk tea.

Before consumers determine whether they will buy a product or goods or

how much will be the quantity they will buy they take into consideration the prices

of both substitute goods and complementary goods (Beggs, 2018).

Substitute goods are goods that can be used in place of one another (Gupta,

2017). An increase in the price of one of the goods will result to a rise in the

demand for the substitute good. Conversely, a fall in the price of one of the goods

will decrease the demand for the substitute good. A compatible example is an

increase in the price of Coke would cause a rise in the demand for Pepsi as several

consumers will shift from Coke to Pepsi (Beggs, 2018). It only shows that the

relation between substitute good and quantity demanded is directly proportional.

According to Pettinger (2017), Complementary goods are goods that are

used together. An increase in the price of one of the goods will result to a fall in the
 6

demand for the complementary good. It is also the case when a decrease in the

price of one of the goods will result to a rise in the demand for the complementary

good. For example, Tennis balls and tennis rackets.

H2: There exists relationship between price of related goods and demand applied

when purchasing Dakasi milk tea.

Income is superior determinant of purchasing behavior (Dorota, 2013). The

level of income affects the life style and attitude of a consumer. A person with high

income purchase expensive product and these with low income prefer to buy

product with lower price. Higher Income level’s purchasing behavior has a

negative relationship with PLBs.

H3: There exists relationship between income/allowance of consumers and demand

applied when purchasing Dakasi milk tea.

Individuals have different characteristics such as age, gender, family life-

cycle stage, lifestyle and self-concept and so on. These individual characteristics

bring about personal motivation, perception and preference (Brassington & Pettitt,

2000; Macdonald & Sharp, 2000). Naturally, individuals consume different

products and services which changes throughout their entire lifespan. Differences

and changes in their tastes of clothes, foods, furniture, refreshment products or

services vary among children, teenagers, adults, and old people.

H4: There exists relationship between taste or preference of consumers and demand
 7

applied when purchasing Dakasi milk tea.

A change in the buyers’ expectations in a certain product will affect the

quantity demanded for that product. If the consumers anticipate that the future

price for a product will decrease, the demand will fall because the consumers will

wait for an advantage from the lower future price. On the contrary, If the buyers

foresee that the future price for a product will increase, the demand will rise in

order for them to save money (Jan, 2018).

H5: There exists relationship between expectations of consumers and demand

applied when purchasing Dakasi milk tea.

Significance of the Study

First and foremost, this inquiry may immensely benefit the business

owners and managers for it serves as a way to better understand how some

factors affect the demand for milk tea they are selling. This may direct them into

improving their product and improving the way they run the business by helping

them in decision-making skills, in developing more effective strategies, and in

determining business opportunities through the result of this study.

This study could be a great help to people from the same or similar

industry because they would be able to gain insights and find recommendations

that may be applicable to their own organizations.

The outcome of this study may be helpful for businesses students for they
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can learn a competitive advantage through this study and it will also serve as a

future reference to inspire them to build their own business someday.

The result of this study could benefit the marketers for they will be able to

learn how different factors contribute greatly to the success of the organization.

They will learn the process of introducing and promoting the product or service

into the market and encourages sales from the buying public.

This research may also benefit the future researchers who wish to have

similar studies as they can get background information from the result of this study

which will serve as template to modify or improve their own research.

The totality of this research will bring growth to the abilities of the

researchers, especially in terms of their intellectual gains, moving insights and

character empowerment. The research process will widen their horizons,

strengthen their character, and test their perseverance. They may also develop their

writing, analytical, and interpretational skills needed to make a good thesis. This

may also serve as an accomplishment to the researchers for they may gain

knowledge in terms of impacts of digital marketing to consumer’s perspectives.

Moreover, they may also help people through sharing this study.

Scope and Limitations

This inquiry focused on the determinants of demand for Dakasi milk tea

among generation Z in Cavite. It did not include the profitability, financial aspect,

and salability of the establishment. 

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The survey was conducted on November 2018 and the researchers limited

the respondents to 75 people belonging to generation Z. The respondents came

from the province of Cavite where the researchers have an access as the

researchers used the convenient sampling method.

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CHAPTER II
REVIEW OF RELATED LITERATURE

This chapter reviews the related literature which supports and gives

credence to the details of this research. The researchers anchor this comprehensive

study to different viewpoints and perspectives to present a thorough treatment of

the problem. Concepts, findings, theories, and notions, from scholarly researches

and articles related to determinants of demand for Dakasi milk tea among

generation Z are presented to provide an extensive background of the study and to

justify the researchers’ objective in undertaking it. This review of related literature

may later on be confirmed, negated, or improved by the new knowledge that this

study provided.

MILK TEA

Milk  tea is tea with milk added. In some parts of the world (such as parts

of India), milk tea is the default type of tea, so 'tea' usually refers to milk team

while 'black tea' or 'tea without' refers to tea without milk (Raymundo, 2012)

GENERATION Z

Generation Z is an enormous, distinct generation with the rapid growing

group of employees, consumers, and voters. It is the generation born after

Millennials (Dorsey, 2018). According to the research of the Center for

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Generational Kinetics which is managed by Dorsey, the birth years of Gen Z are

roughly ranging from 1996 to 2015.

DETERMINANTS OF DEMAND

Price

Buyers are willing and able to purchase to a greater extent when the price

of a good is low and to a lesser degree when the price of a good is high. When the

price of a good rises consumers tend to shift from that good to other relative good

that as a cheaper price, so as when the price of a good falls, consumers tend to buy

more from that good than the other relative good that has an expensive price. Price

is inversely proportional to Quantity demanded when all other factors are held

constant (Maurice & Thomas, 2016).

The findings of Grewal in 2015 revealed that the influence of price and

promotions can attract new customers has become important in modern retailing.

Price of related goods

Before consumers determine whether they will buy a product or goods or

how much will be the quantity they will buy they take into consideration the prices

of both substitute goods and complementary goods (Beggs, 2018).

Substitute goods are goods that can be used in place of one another (Gupta,

2017). An increase in the price of one of the goods will result to a rise in the

demand for the substitute good. Conversely, a fall in the price of one of the goods

will decrease the demand for the substitute good. A compatible example is an
 12

increase in the price of Coke would cause a rise in the demand for Pepsi as several

consumers will shift from Coke to Pepsi (Beggs, 2018). It only shows that the

relation between substitute good and quantity demanded is directly proportional.

According to Pettinger (2017), complementary goods are goods that are

used together. An increase in the price of one of the goods will result to a fall in the

demand for the complementary good. It is also the case when a decrease in the

price of one of the goods will result to a rise in the demand for the complementary

good. For example, Tennis balls and tennis rackets.

Income

When the consumers’ income rises, it will result to an increase in demand

for goods and services, other things equal (Jusoh, 2018). Goods that increase in

demand as income escalates are normal goods while goods that decrease in

demand as income grows are inferior goods.

Taste/Preference

When the consumers’ desires, emotions, or preferences change in the side

of a certain product will also result to a change in the quantity demanded. In the

same way, when the tastes/preference is not met by a product, the demand for a

product will diminish (Amadeo, 2018).

Easterby-Smith et al. (2002) stressed that an individual’s personality is

considered to be a self-concept and self-perception which influences on his choice

to purchase an item. Attitudes, perceptions, beliefs, and self-evaluation define their

interests, activities, and opinions. The last factor is the psychological factor which
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is the perception, motivation learning, attitudes and beliefs. This factor is regarded

as an instrument for consumers to interact in the society. By recognizing their

feelings, scrutinizing the information and articulating their thoughts and

opinions, forms and marketers can take actions to satisfy the consumer’s intense

needs.

According to Lamb et al. (2004), individuals have different characteristics

such as age, gender, family life-cycle stage, lifestyle and self-concept and so on.

These individual characteristics bring about personal motivation, perception and

preference (Brassington & Pettitt, 2000; Macdonald & Sharp, 2000). Naturally,

individuals consume different products and services which changes throughout

their entire lifespan. Differences and changes in their tastes of clothes, foods,

furniture, refreshment products or services vary among children, teenagers, adults,

and old people.

Future Expectations

A change in the buyers’ expectations in a certain product will affect the

quantity demanded for that product. If the consumers anticipate that the future

price for a product will decrease, the demand will fall because the consumers will

wait for an advantage from the lower future price. On the contrary, If the buyers

foresee that the future price for a product will increase, the demand will rise in

order for them to save money (Jan, 2018).

SOCIO DEMOGRAPHIC CHARACTERISTICS

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The demographic characteristics, such as gender, age, income level,

educational level, etc. also play an important role in consumer’s purchase decision

process and can cause deviation from general patterns of consumer decision

making (Lee, 2005).

Lamb et al. (2004) stated that cultural factor such as the culture and

value, subculture and social class of the consumers influence consumer buying

behavior. Culture creates a basic value, perception, demands and behaviors

influenced by the consumer’s family, friends and the society. Different

countries have diverse cultural influences which take a crucial role whenever

people decide to purchase products. Hence, consumer buying decision differs

conspicuously from one city to another (Malhotra & Peterson, 2006; Qureshi et al.,

2015; Atilgan et al., 2005). Within a culture, there are subcultural groups or

entities that share the same customs, values, and norms. Subcultures can be divided

into nationalities, religious affiliations, geographical regions, and racial groups.

Consumer behavior change came from through ages (Dorota, 2013). The

older the person the more purchasing experience they have than the younger one.

Older people consider diversified option through the experience they have

developed while younger ones with less experience rely on brand and price. Thus

young generation is easily to be influenced by brand image.

Gender differentiates consumption behavior. According to Dorota (2013)

women and men perform different roles in every household; they have different

demands for certain products as well as they behave differently in the process of
 15

consumption. Marketing strategies differentiates gender buying behavior thus

female are more emotional and easily be attracted by advertisements compared to

male (Imam, 2013). Another study also shows female are the one who have more

Private Label Brands (PLBs) shopping experience than males (Irini, 2012).

Furthermore, man and women behave differently, they want different products and

they are likely to have different ways of liking and obtaining these. Gender has an

important role in consumer behaviors. Because, the differences between men and

women about expectation, want, need, life-style etc. reflect to their consumption

behaviors (Swarna, 2012). For instance, studies have revealed that gender,

education, income and age differentiate the consumers’ information search process.

Men are less likely than women to complain when they are dissatisfied with a good

or service in comparison to women they do not spread word of mouth and they are

significantly less likely than women going to use specialist magazines as a source

of information (Lee, 2005). Opposing this “Global PL-Trend” (2010) noted gender

has no influence on the buying behavior.

Income is superior determinant of purchasing behavior (Dorota, 2013). The

level of income affects the life style and attitude of a consumer. A person with high

income purchase expensive product and these with low income prefer to buy

product with lower price. Higher Income level’s purchasing behavior has a

negative relationship with PLBs.

Moreover, Cheung et al. (2005) said that apart from factors regarding the

selected services and the motivation, there is evidence in the literature that socio-
 16

demographic factors have impact on individuals’ attitudes. The results also rejects

the study of Beneke, Scheffer, and Du (2010) who concluded that demographic

variables such as income, education and age are likely to have a material effect on

purchase intention.

But in contrary, Miyazaki and Fernandez (2002) analyzed that

demographics are not important in determining online purchasing potential.

Whether the consumer has a wired lifestyle and the time constraints the person has

are much more influential. Consumers with high levels of privacy and security

concerns have lower purchasing rates in online markets but they balance this

characteristic with their quest for making use of the information advantage of the

environment.
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CHAPTER III
FRAMEWORKS OF THE STUDY

Theoretical Framework

Demand Theory is a principle of pertaining to the relationship between

buyers demand for goods and services and their respective prices. It builds the

basis for the demand curve, which relates consumer desire to the quantity of goods

available. Human beings demand goods and services to satisfy their needs and

wants, like, food, healthcare, clothing, shelter, entertainment, etc. The demand for

a good at a set price will mull over the satisfaction that a consumer expects from

consuming the product or service (Wrishnu, 2018).

This study merely relies on the law of demand. The law assumes a perfectly

competitive market wherein there are standardized products with many buyers and

sellers. The law states that ceteris paribus (assuming all other variables constant)

as price falls, the quantity demanded rises, and as price rises, the quantity

demanded falls. The other factors affecting demand are taste preference, number of

buyers, income, prices of related goods and consumer expectations (McConnell,

Brue, & Flynn, 2009). Taste and preference varies among individuals and is 7

commonly the basis for the willingness of an individual to buy a certain good. The

number of buyers, the income of consumers and prices of related goods are all

positively related to demand. Market demand is the sum of individual demands so

it is expected that when the number of buyers increases, the market demand also
 18

increase. Income, on the other hand, when increased, will increase the spending

capacity of an individual and will increase the demand. Prices of related goods

however have two different cases depending whether the good is a substitute or a

complement. When the price of a substitute increases, the demand for the other

good decreases and when the price of a complement good increases, the demand

increases too.

Conceptual Framework

DEMOGRAPHIC PROFILE OF DETERMINANTS OF

THE RESPONDENTS DEMAND
 Quantity of Milk tea per
month
PLACE OF RESIDENCE  Price
 Amadeo  Bacoor  Monthly
Income/Allowance
 Carmona  Novelata  Price of Related Goods
 Cavite City  Trece Martires  Taste
 Expectations
 Dasmariñas  Tanza

 General Trias  Silang

 GMA  Naic

 Imus  Indang DEMAND ESTIMATION

USING REGRESSION
 Kawit  Mendez ANALYSIS

GENDER

OCCUPATION
DEMAND FOR DAKASI MILK
TEA AMONG GENERATION Z
MONTHLY
INCOME/ALLOWANCE
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Figure 1. Research Paradigm The developed framework above is the

conceptual framework of the researchers to be used as a guide for the study. The

aim is to analyze and evaluate the five factors affecting the demand for Dakasi

milk tea.
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CHAPTER IV
METHODS

Research Design

The study utilized descriptive and causal/explanatory. Descriptive analysis

was used to describe the composition of workers under study. On the other hand,

causal/explanatory research was applied to explain the functional relationship

between the dependent variable, demand, and the main independent variables,

price, price of related goods, monthly income/allowance, taste/preference, and

future expectations.

Sources of Data

Majority of the data were accumulated from the answers and responses of

the 75 respondents of the survey questionnaire. Secondary sources of data include

books, periodicals and online journals cited as a review of related literature and

studies which provided an in-depth background and meaningful answers to the

research problems.

Respondents of the Study

The respondents of the study consisted of 75 people and were part of the

generation Z which ages from 3-22 years old (born on the year 1996 – 2015). The

respondents were selected using convenient sampling technique, a type of non-

probability sampling method that relies on data collection from population

members who are conveniently available to participate in study. It is a sampling

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where the first available primary data source will be used for the research without

additional requirements. In other words, this sampling method involves getting

participants wherever you can find them and typically wherever is convenient. In

convenience sampling no inclusion criteria identified prior to the selection of

subjects. All subjects are invited to participate. The researchers preferred this kind

of sampling strategy because it is inexpensive, easy, subjects are readily available

and fast as the data collection could be facilitated in short duration of time since

the researchers do not have lengthy time to conduct the study. Also, it allows the

researchers to obtain basic data and trends regarding the study without the

complications of using a randomized sample. The participants of filling in the

questionnaire were from various backgrounds such as different place of residence,

age, gender, and occupation.

Data Gathering Procedure

For the purpose of this research, quantitative data were gathered and

utilized using surveys since it provided an efficient way of collecting responses

from a large sample prior to quantitative analysis. The survey was carried out in

the form of questionnaires and it was composed of close-ended questions. Close-

ended questions have limited set of possible answers and can easily be analyzed

statistically. Through this type of question, the researchers were able to limit the

responses that are within the scope of this study. Since the researchers need to

identify the impact or simply determinants to the demand for Dakasi milk tea,
 22

therefore, the questions are subjected to the individuals’ experiences or insights.

For this purpose, a self-administered survey questionnaire in a four point scale

format was given to the respondents to answer. Furthermore, the researchers

conducted this survey to discover how the demographics and also the price, price

of related goods, income/allowance, taste/preference, and future expectations

contributes to the demand for the product. All of the questionnaires were

distributed through online survey. The answers and information of the respondents

were kept confidential.

Methods of Data Analysis

To systematically organize the data to be gathered from the study, it was

subjected to statistical treatments. To answer the first statement of the problem, the

frequency, percentage, and rank were utilized for the socio-demographic profile of

the respondents such as their place of residence, age, gender, occupation, and

monthly income/allowance.

In the second statement of the problem, the frequency, mean, and rank were

used to quantify the determinants of demand.

In the third statement of the problem, regression analysis is utilized to

determine the strength of relationship between the dependent variable (demand for

Dakasi milk tea) and a series of other changing or independent variables (price,

price of related goods, income/allowance, taste/preference, and future

expectations).
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CHAPTER 4
RESULTS

This chapter presents the data gathered in tabular forms. Each table is given

corresponding interpretation and analysis.

Table 1
Gender Rank
Age
Female Percentage Male Percentage Total Percentage

13 0 0 1 3 1 1 4
17 2 5 2 5 4 5 3
18 20 53 12 32 32 43 1
19 11 29 16 44 27 36 2
20 3 7 3 8 4 5 3
21 1 3 0 0 4 5 3
22 1 3 3 8 4 5 3
TOTAL 38 100 37 100 75 100
Age and Gender of the Respondents

Table 1 shows that the majority of the respondents are 18 years old which

compose of 43% of the total respondents. It was followed by 19 years old which

has 36%. Next in ranking are the 17, 20, 21 and 22 years old which represent 5%

of the total respondents 20%. Out of the total respondents, only 1% of the total

respondents are 13 years old.

The table also shows that female compose the majority of the respondents

which has a total of 38 out of 75 or 51% and 37 out of 75 or 49% of the

 24

respondents are male.

Table 2
Occupation

Occupation Frequency Percentage Ranking

Student 72 97 1
Call Center Agent 1 1 2
Factory Worker 1 1 2
Graphic Artist 1 1 2
TOTAL 75 100

Table 2 shows that the majority of the respondents’ occupation is students

since the respondents are selected in the generation z. While there are three

respondents that are already working such as a call center agent, a factory worker

and a graphic artist that represents 3% of the total respondents.

 25

Table 3
Place of Residence

PLACE OF RESIDENCE

Trece MartiresKawitCavite City Bacoor

7% 1% 3%
Tanza 1%
1%
Indang Imus
4% 7%

Amadeo
1%

General Trias
20% Dasmarinas
24%

GMA
11% Carmona
11%

Silang
11%
 26

Table 3 shows that the majority of the respondents came from Dasmarinas

which occupies the 24% of the respondents. Then 20% of the respondents are from

General Trias. Next are from Carmona, Silang, GMA which compose 11% each

with a total of 33% of the total percentage of respondents. Then Imus and Trece

Martirez has percentage of 7. Next is Indang which has 4% of the total

respondents. Lastly, respondents came from Kawit, Tanza, Amadeo and Bacoor

which has 1% each.

DETERMINANTS OF DEMAND FOR DAKASI MILK TEA

Table 4
Number of Dakasi milk tea purchased by the respondents in a month

Demand Frequency Percentage Ranking

1 2 3 5
2 25 33 1
3 23 31 2
4 11 15 3
5 9 12 4
6 1 1 6
7 1 1 6
8 1 1 6
10 2 3 5
Total 75 100
 27

Table 4 shows that out of 75 respondents, 33% purchased Dakasi milk tea

twice a month and the least number of purchased Dakasi milk tea every month is 6,

7 , and 8 which represents 1% of the total population respectively.

Table 5
Price

Price Frequency Percentage Ranking

100 4 5 7
110 15 20 2
120 20 27 1
130 5 7 6
140 4 5 7
150 7 9 4
160 8 11 3
170 6 8 5
180 6 8 5
Total 75 100

The price of Dakasi milk tea purchased by the respondents is seen on table

5 wherein majority of the respondents normally purchase Dakasi milk tea at a price

of 120 and at a price of 100 shows the least purchase of Dakasi milk tea.
 28

Table 6
Price of Related Goods

Price of related Frequency Percentage Ranking

goods

100 7 9 4
110 13 17 2
120 20 27 1
130 6 8 5
140 2 3 6
150 7 9 4
160 8 11 3
170 6 8 5
180 6 8 5
Total 75 100

Table 6 represents the price of related goods of Dakasi milk tea which

shows that most of the respondents answered 120 as the price they are willing and

able to pay to the related products of Dakasi milk tea while at a price of 140 shows

the least number of respondents who are willing and able to buy the related goods

of Dakasi milk tea.

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Table 7
Monthly Income/Allowance of the Respondents

Monthly
Income/Allowance Frequency Percentage Rank

1500 1 1 8
2000 2 3 7
2500 2 3 7
2800 1 1 8
3000 7 9 4
3500 3 4 6
4000 23 32 1
4200 1 1 8
4500 9 12 3
5000 13 18 2
6000 4 5 5
7000 1 1 8
8000 3 4 6
10000 2 3 7
12000 1 1 8
16000 1 1 8
18000 1 1 8
TOTAL 75 100
 30

Table 7 shows that the majority of the monthly income/allowance of the

respondents is ₱4000 which composes 32% of the total responses. It was followed

by 18% that has ₱5000 monthly income/allowance. Then 12% of the respondents

state that they have ₱4500 monthly income/allowance. Next is the ₱3000 which

has 9% over all the responses. It was followed by 5% of the total respondents that

indicates ₱6000 as their monthly income/allowance. Then 4% of the respondents

answered that they have ₱8000 monthly income/allowance. Next is the ₱10000

which has 3% over all the responses. Finally, the monthly income/allowance of

₱1500, ₱2800, ₱4200, ₱7000, ₱12000, ₱16000 and ₱18000 has the same

percentage of 1% of the total respondents.

Table 8
Taste/Preferences

Taste/Preferences Frequency Percentage Ranking

1 1 1 4
2 5 7 3
3 55 73 1
4 14 19 2
TOTAL 75 100
Question: I love buying at Dakasi among all milk tea shops because their milk tea really suits my
taste. (4-Strongly agree 3-Agree 2-Disagree 1-Strongly Disagree)

Table 8 represents the Taste/Preferences of the respondents wherein 73% of

the respondents Agree that they love to buy Dakasi milk tea among all milk tea

shops because it suits their taste while 1% of the total respondents Strongly
 31

Disagree that they love to buy at Dakasi milk tea because it suits their taste which

represents the lowest percentage of the total respondents.

Table 9
Future Expectations

Taste/Preferences Frequency Percentage Ranking

1 5 7 3
2 23 31 2
3 44 59 1
4 3 4 4
TOTAL 75 100
Question: I will buy Dakasi milk tea more today when I am expecting that there is price increase or
income/allowance increase in the future.

(4-Strongly agree 3-Agree 2-Disagree 1-Strongly Disagree)

Table 9 represents the Future Expectations of the respondents which shows

that majority of the respondents Agree that they will buy Dakasi milk tea more

today when they expect that the price or income/allowance will increase in the

future while 4% of the total respondents Strongly Disagree that they will buy more

of today when they expect that the price or income/allowance will increase in the

future which represents the lowest percentage of the total respondents.

 32

REGRESSION ANALYSIS

Standard
  Coefficients Error t Stat P-value
Intercept 0.356425732 0.545207246 0.653743571 0.515449863
MONTHLY
INCOME/ALLOWANCE 0.000496736 2.05858E-05 24.12999965 2.35E-35
PRICE -0.0076216 0.002292825 -3.324108497 0.001422605
TASTE 0.309978131 0.101334001 3.058974558 0.003160783
FUTURE EXPECTIONS -0.202314115 0.088698416 -2.280921388 0.02564489
PRICE OF RELATED GOODS 0.004606376 0.002270579 2.02872332 0.04634747

Demand Equation: QD = a + bP + cM + dPr + eT + fX

QD = 0.36 - 0.008P + 0.005Pr + 0.0005M + 0.31T -0.20X

where:

Qd = Quantity Demanded
P = Price
Pr = Price of Related Goods
M = Income
T = Taste
X = Future expectations

Remember that P, M, Pr, T, X are just some of the determinants. Other

determinants of demand may include number of consumers, advertisements,

climatic conditions, etc. In this study, price, price of related goods, income, taste

and future expectations are used as determinants for Dakasi milk tea among

generation Z.

Interpretation:

If the price of Dakasi milk tea will increase by 1 peso, then the quantity
 33

demanded will decrease by 0.008. Therefore Dakasi milk tea is elastic.

If the income will increase by 1 peso per hour, then the quantity demanded

for Dakasi milk tea will increase by 0.0005. Therefore, Dakasi milk tea is a normal

good.

If the price of related goods will increase by 1 peso, then the quantity

demanded for Dakasi milk tea will increase by 0.005. Therefore, Dakasi milk tea is

a substitute for other goods. Related goods in this are identified as other brand of

milk tea shop such as I love milk tea since it gained the highest percentage which

the consumers will purchase aside from Dakasi milk tea.

If the consumer's taste or preference is positive towards Dakasi milk tea

then it leads to increase in demand by 0.31.

If the consumers expect future price/income increase then it leads to

decrease in demand by 0.20.

P value

The P value of income of 2.35E-35 is not significant because it is higher

than the 0.05 level of significance.

The P value of price of 0.001422605 is very highly significant because it is

lower than the 0.05 level of significance.

The P value of taste of 0.003160783 is very highly significant because it is

lower than the 0.05 level of significance.

The P value of future expectations of 0.02564489 is very highly significant

 34

because it is lower than the 0.05 level of significance.

The P value of price of related goods of 0.04634747 is very highly

significant because it is lower than the 0.05 level of significance.

R²

90.71% of variation in y (Dakasi milk tea) can be explained by the variation in

x (price, income, and price of related goods, taste, and future expectations).

9.29% of variation cannot be described by the regression line.

 35

CHAPTER VI
SUMMARY, CONCLUSIONS, AND RECOMMENDATION

This chapter represents the summary of findings based on the data gathered

from the study, the conclusions drawn, and the future direction offered by the

researchers.

Summary

The entirety of this paper states that, Generation Z are most associated in

consuming Dakasi milk tea. With that, the researchers were able to come up with

the problem to emphasize what determinants affect the demand for Dakasi milk tea

among generation Z in the province of Cavite. The researchers include the

demographics such as age, gender, place of residents and occupation to categorize

and make profile about the respondents; and include the determinants such as

price, price of related goods, income, taste, and future expectations to identify the

impact of those determinants in the demand for the product.

The study was anchored in the demand theory which serves as a guide to

explain the effect of determinants in the demand and the researchers provided

reviews of related literature and studies to support the significance of the study in

the present time.

To effectively describe the theoretical framework, the researchers utilized

and modified a conceptual framework which is adapted to other related studies.

Taken as a whole, most of the respondents came from Dasmarinas, Cavite

 36

and were at age of 18. Next, there were more female respondents (38) than the

male respondents (37). Moreover, most of the respondents were students and have

the monthly allowance of 4000.

Furthermore, according to the statement of the problem, the researchers

come up with five alternative hypotheses on the significance of relationship

between demand for Dakasi milk tea among generation Z and all the determinants

of demand used in the study.

Conclusion

The result is there is a significant relationship between determinants of

demand such as price, price of related goods, taste and future expectations and

demand for Dakasi milk tea as interpreted by the p value which means those

mentioned above obtained a value lower than the significant level of 0.05 and with

that the alternative hypotheses are accepted. Only the income does obtain a value

higher than that of the significant level of 0.05 and that means that the alternative

hypothesis is rejected.

If the price of Dakasi milk tea will increase, then the quantity demanded

will decrease. Therefore it is elastic. Also, if the income/allowance of consumers

will increase, then the quantity demanded for Dakasi milk tea will increase.

Therefore, it is a normal good. Moreover, if the price of related goods will

increase, then the quantity demanded for Dakasi milk tea will increase also and

therefore, Dakasi milk tea is a substitute for other goods. Additionally, if the
 37

consumer's taste or preference is positive towards Dakasi milk tea then it leads to

increase in demand. Lastly, if the consumers expect future price/income increase

then it leads to decrease in demand.

Based on the results or findings of the study, the researchers infer that the

demand theory implies that the demand can be positively or negatively affected by

the determinants of demand.

Future Directions or Recommendations

Businessmen and businesswomen are enjoined to come up with a more

innovative product that will rise above their competitors.

Marketers through the help of this study will be able to know what

marketing strategies to use. Since generation z is the most consumers of milk tea,

Dakasi or other milk tea shop marketers are of advantage to enhance their product

that would suit the taste of target customers.

Entrepreneurs are advised to understand how determinants such as price,

price of related goods, income, taste, and future expectations affect the quantity

demanded of the product they are selling. With these, they will be able to come up

with different techniques to increase the demand for their product.

Future Researchers may conduct another inquiry on the topic considering

the profile of the respondents. They may also use a different sampling technique

and different business to study. Moreover, they are encouraged to include more

determinants to further expand the scope of their study. In that way, they can
 38

gather more information that may serve as a template to modify or improve their

own research with regards to this study.

 39

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 42

APPENDICES

SURVEY QUESTIONNAIRE

To the Respondent,

We are currently conducting our research entitled; “Determinants of

Demand for Dakasi Milk tea among Generation Z” as a partial fulfillment of our

course requirements for the subject Managerial Economics at De La Salle

University-Dasmariñas.

As part of our research, we need to gather data from several respondents in

Cavite. In this light, we are humbly requesting for your time and effort to go over

this questionnaire as your responses will be very much helpful in achieving the

purpose of our research. Rest assured that the information you will provide will be

kept confidential and will be used for research purposes only.

If you want to ask some details about the research that we are conducting, you can

contact us at cel. # 09559732924 or at e-mail address ferldiane@gmail.com.

Thank you!

Yours truly,

Ferl Diane S. Siño

John Anthony D. Camutin

Researchers
 43

DETERMINANTS OF DEMAND FOR DAKASI MILK TEA AMONG

GENERATION Z

SOCIO-DEMOGRAPHIC PROFILE OF CONSUMERS

Please supply the needed information. Do not leave any item unanswered.

Place of residence _____________

Age _______

Gender

o Female

o Male

Monthly Income/Allowance _______________

DETERMINANTS OF DEMAND FOR DAKASI MILK TEA

Directions: Below are statements to measure the buying behavior of consumers in

terms of price, price of related goods, income, taste/preferences, and expectations

that affects the demand for Dakasi milk tea significantly.

How many Dakasi milk tea do you purchase or consume in a month? ______

PRICE
 44

At what price do you normally purchase Dakasi milk tea? (e.g. 110) ______

PRICE OF RELATED GOODS

If you wish to purchase other milk tea, from which of the milk tea shops do you

prefer to buy?__________

At what price?_________

TASTE / PREFERENCE

I love buying at Dakasi among all milk tea shops because their milk tea really suits

my taste.

4- strongly agree

3- agree

2- disagree

1 strongly disagree

FUTURE EXPECTATIONS

I will buy Dakasi milk tea more today when I am expecting that there is price

increase or income/allowance increase in the future.

4- strongly agree

3- agree

2- disagree

1 strongly disagree
 45

REGRESSION

GRAPHS

PRICE Line Fit Plot

DEMAND FOR DAKASI MILK TEA

10
8 DEMAND FOR
6 DAKASI MILK TEA
4 Predicted DEMAND
FOR DAKASI MILK
2 TEA
0
80 100 120 140 160 180 200
PRICE

PRICE OF RELATED GOODS Line Fit

DEMAND FOR DAKASI MILK TEA

Plot
DEMAND FOR
10 DAKASI MILK TEA
Predicted DEMAND
5 FOR DAKASI MILK
TEA
0
80 100 120 140 160 180 200
PRICE OF RELATED GOODS
 46

MONTHLY INCOME/ALLOWANCE
DEMAND FOR DAKASI MILK TEA
Line Fit Plot
DEMAND FOR
10 DAKASI MILK TEA
Predicted DEMAND
5 FOR DAKASI MILK
TEA
0
0 5000 10000 15000 20000
MONTHLY INCOME/ALLOWANCE

TASTE Line Fit Plot

DEMAND FOR DAKASI MILK TEA

FUTURE EXPECTIONS Line Fit Plot

DEMAND FOR DAKASI MILK TEA

10
8 DEMAND
10 FOR
6 DAKASI
8 MILK TEA DEMAND FOR
4 Predicted
6 DEMAND DAKASI MILK TEA
FOR DAKASI MILK Predicted DEMAND
2 TEA 4
0 FOR DAKASI MILK
2 TEA
0.5 1 1.5 2 2.5 3 3.5 4 4.5 0
TASTE 0.5 1 1.5 2 2.5 3 3.5 4 4.5
FUTURE EXPECTIONS