De La Salle University - Dasmariñas

A STUDY OF THE SIGNIFICANCE OF PRICE AND NON-PRICE FACTORS

ON MILLENNIALS AND GENERATION Z’S SHOES DEMAND
ESTIMATION

A Group Project
Presented to the Subject in
B-ECON002 (Managerial Economics)
College of Business Administration and Accountancy
De La Salle University – Dasmariñas
Dasmariñas City, Cavite

Era, Angelo
Ignacio, Carlos
Noguera, Eron Rafael
Caparas, Karl
Lontoc, Karl Nathaniel

February 2022

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CHAPTER I

INTRODUCTION

Shoes are one of the essentials that we should have because it protects our feet

from infections, and it prevents us from walking barefooted which can cause pain

when walking longer distances. According to Healthline (2018), when walking

barefooted, you’ll need to consider the surface you are walking if it is rough, wet, has

sharp objects, and temperature because it can cause harm to your feet since additional

padding provided by a shoe can prevent these kinds of injury. Aside from protecting

our feet, shoes are very fashionable and even though each person just only needs one

pair of shoes, people nowadays buy many pairs so that they can have many options to

style with their different outfits. People are also influenced to buy shoes because of

their favorite athletes and celebrities like Michael Jordan and his famous Jordan

series and in fact according to an article of Arthur (2016), before the summer

Olympics in Rio De Janeiro, the marketing executives are in a search for big names

in the sports world because history proved that athletes can help promote products

really well and most importantly they can create the connections between the brand

and the consumers. Shoes have been a staple for the fashion industry for centuries

and that is why the market for shoes will always be available but during the

pandemic, people wanted something light and comfortable for the feet that is why

they preferred sandals and slippers than shoes. According to Euromonitor (2021), In
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2020 due to long lockdowns and quarantines, the Filipino consumers preferred lighter

products like slippers and sandals since during the pandemic they had spent more

time inside their homes than outdoors because of the health protocols given by the

government. Based on the research conducted by Euromonitor, the increase in

demand for flip flops and sandals has an effect on demand for shoes since it is an

alternative product and complementary products such as socks.

Objectives of the Study 

The study on the Demand Estimation for Shoes Among Millennials and Generation Z

aims to accomplish the following objectives:

1. To gather data from the specified population regarding the likelihood of

customers to purchase shoes of a specified amount.

2. To analyze the number of shoes the specified population purchases on an

annual and monthly basis.

3. To determine the significant factors related to the effects of the specified

population's allowance/income and the types of shoes they purchase.

 
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Significance of the Study 

The researchers aim to observe the different factors that affect the demand for

shoes. To help future researchers or entrepreneurs who want to enter the shoe market

understand how each factor affects demand on shoes.

The Customers. As the main respondents of the study, they will be aware of the

factors that affect the demand for shoes

The Manufacturers. They will be able to learn about the preferences of the

consumers when it comes to buying shoes which will help them develop new products

that may attract customers.

Future Researchers. Both current and future researchers will benefit from this

research. If they want to do more research on shoes demand estimation, this study will

be useful. This study can also be used to launch a new set of studies and conclusions.

There are more researchers, so there are more conclusive results.

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CHAPTER II

METHODOLOGY

Sampling Procedures 

The respondents of the research were chosen using “Convenience Sampling”,

According to Fleetwood, D. (2021) Convenience sampling is a method used by

researchers to collect or gather data from a convenient time of respondents.

The respondents in the study are 26 to 41 years old (Millennials) and 10 to 25 years

old (Gen Z). 

Methods of Data Collection 

An online survey was done to gather the data that would be used in this study.

The researchers aim to use primary data collection, which is a process of acquiring

data through the use of surveys, interviews, and experiments. It specifies the

researchers' aim of completing the survey in the time allocated, as well as the

participants' role in providing data to the researchers for the study's completion, with

the guarantee that the input will be considered confidential.

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Amidst the Pandemic, the researchers conducted surveys through an online survey

which is called “Google Forms”. It generates a survey that is evaluated automatically

and then saved to Microsoft Excel. The data will be evaluated using Regression

Analysis. The online surveys were distributed via a messaging app called Facebook

Messenger, which was used to distribute the questionnaires.

Data Analysis 

According to Johnson, D. (2022), Data analysis is a way of polishing,

evolving, and constructing data in order to identify information that may be used to

make better decisions. 

The researchers analyze the data using the Regression Analysis. According to

Corporate Finance Institute (2021), Regression analysis is a set of statistical tests for

assessing the relationship between a dependent variable and one or more independent

variables.  This can be used to assess the significance of the relationship between

variables and to identify how well they will interact in the future.
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CHAPTER III

RESULTS AND DISCUSSION

Results and Discussion

With the survey done and sent to 25 respondents the results are the following:

Figure 1.0: Age of respondents

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As the result of the survey, shown in Figure 1.0, distributed to our

respondents, the data shows that our respondents are commonly aged at 19 years old

and 20 years old with 5 votes each, and 20 years old being our least common age

with 1 vote.

Figure 1.1: Prices respondents would pay on a pair of shoes

As the result of the survey, shown in Figure 1.1, distributed to our

respondents, the data shows that our respondents are commonly paying for their

shoes with the amount of 1,000 to 3,000 pesos with a 36% response rate, and 10,000

pesos and above with the lowest rate of 12%. We can say that the average price a Gen

Z and Millennial will pay 1,000 pesos up to 3,000 pesos for a pair of shoes. 
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                                   Figure 1.2: Prices respondents would pay on a pair of

socks

As the result of the survey, shown in Figure 1.2, distributed to our respondents, the

data shows that our respondents are commonly paying for their socks with the

amount of 100 to 300 pesos with a 44% response rate, and 400 to 600 pesos and 700

to 1,000 pesos with a common rate of 28%. We can say that the average price a Gen

Z and Millennial will pay 100 pesos up to 300 pesos for a pair of socks. 
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Figure 1.3: Prices respondents would pay on a pair of slippers

As the result of the survey, shown in Figure 1.3, distributed to our

respondents, the data shows that our respondents are commonly paying for their

slippers with the amount of 300 to 500 pesos with a 32% response rate, and 600

pesos to 1,000 pesos with the lowest rate of 16%. We can say that the average price a

Gen Z and Millennial will pay 300 pesos up to 500 pesos for a pair of slippers. 

.
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Figure 1.4: Allowance or Income of the respondents

As the result of the survey, shown in Figure 1.4, distributed to our

respondents, the data shows that our respondents are common allowance or income

with the amount of 2,000 to 5,000 pesos with a 28% response rate, and 11,000 pesos

to 80,000 pesos with the lowest rate of 20%. We can say that the average allowance

and income a Gen Z and Millennial receives is amounting to 2,000 pesos up to 5,000

pesos. 
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Figure 1.5: Respondents units of pairs in a year

As the result of the survey, shown in Figure 1.5, distributed to our

respondents, the data shows that our respondents are commonly purchasing 0 to 1

pair per year with a 48% response rate, and 4 to 5 pairs a year with the lowest rate of

20%. We can say that the average amount of pairs Gen Z and Millennial purchases is

0 to 1 pair per year. 

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Figure 1.6: Respondents units of pairs in a month

As the result of the survey, shown in Figure 1.6, distributed to our

respondents, the data shows that our respondents are commonly purchasing 0 pairs

per month with a 68% response rate, and 2 pairs a month with the lowest rate of 4%.

We can say that the average amount of pairs Gen Z and Millennial purchases is 0

pairs per month. 

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Figure 1.7: Respondents preference on shoes

As the result of the survey, shown in Figure 1.7, distributed to our

respondents, the data shows that our respondents are commonly purchasing sneakers

as their preferred shoe with a 68% response rate, and heels and formal shoes as their

preferred shoe with the lowest rate of 4%. We can say that the preferred shoes of Gen

Z and Millennials are sneakers. 

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Table 1: Regression Coefficients in Determining the Demand of Generation Z and

Millennial        Individuals for Shoes

Coefficient Standard P-

  s Error t Stat value

Intercept 1.418 0.586 2.419 0.0258

Price 3.551 3.832 0.927 0.366

Price of Complements 0.001 0.000 2.048 0.055

Price of Substitutes 0.000 0.000 0.977 0.341

Income and Allowance 1.227 1.059 1.158 0.261

Taste and Preference -0.297 0.181 -1.641 0.117

R2 = 47.3%        

 
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Price. For the price factor, the coefficient was 3.551 which means that for every 1

unit increase in the price of shoes, quantity demand will rise by 3.551. There was

statistical significance since the p-value is 0.366 or 4%. It is less than the significance

level of 5% so there was an effect. Even if prices increase, the demand can also

increase. This is possible because there are some people who are still willing to buy

the product even if the price increases,

Price of Complements. For the complements, since the coefficient is 0.001, it means

that for every 1 unit increase of the price of complements of shoes, the quantity

demanded will rise by 0.001. There was also statistical significance because the p-

value was 0.055 and that is less than the significance level of 5% thus, there was an

effect. The demand will increase because complements like socks are necessities so

people will still buy them even if price increases.

Price of Substitutes. For the substitutes, the coefficient was 0.000 which means that

for every 1 unit increase of the price of the substitutes for shoes, the quantity

demanded will not change. The p-value was 0.341 which means that there is

statistical significance because it is less than 5%. 

Income and Allowance. As for the income and allowance, the coefficient was 1.227

which means that for every 1 unit increase in the income and allowances of the
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customers, quantity demand will rise by 1.227. It is also statistically significant since

the p-value is 0.261 or 3%.

Taste and Preference. Lastly, for the taste and preference, the coefficient was -0.297

which means there is a decrease because shoes are not often used nowadays because

some people prefer to not go out because of the pandemic, The p-value is 0.117 or

1% so there was statistical significance.

R-Square. The R-square was 47.3% which means that 47.3% of the variance of the

dependent variable was explained by the model.

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CHAPTER VI

SUMMARY AND CONCLUSIONS

Summary

As mentioned, the objective of this study is to determine the demand

estimation of Generation Z and Millennials in the province of Cavite for shoes. The

researchers are also to explain the significant factors that will affect the demand

estimation such as price and non-price determinants. The researchers aim to know the

number of shoes purchased by a specific population of consumers on an annual and

monthly basis.

The researchers were able to gather data by means of online questionnaires. The data

collected is presented using the descriptive research design to determine the

percentage of respondents who chose a specific answer to each question in the

survey. The researchers used the Regression Analysis model to determine the demand

estimation for shoes by the sample population of Generation Z and Millennials from

Cavite. 

Conclusions
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To conclude, The main objective of the study is to determine the demand for

shoes based on price and non-price factors. It seems that Generation Z and

millennials have a very high demand for shoes. According to the results of the study,

Millennials and Generation Z are still willing to buy the product even if its price

increases because it is something they are fond of. Shoes are a necessity so no matter

how much the price increases people would still purchase it. Also, all of the factors

were statistically significant.

The r-square was 0.473 or 47.3%. This reveals that 47.3% of the data fit the

regression model
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REFERENCES

 Corporate Finance Institute. (2021, July 28). Regression Analysis.

https://corporatefinanceinstitute.com/resources/knowledge/finance/regression-

analysis/

 Fleetwood, D. (2021, November 1). Convenience Sampling: Definition,

Advantages and Examples. QuestionPro.

https://www.questionpro.com/blog/convenience-sampling/ 

 Johnson, D. (2022, February 12). What is Data Analysis? Research | Types |

Methods | Techniques. Guru99. https://www.guru99.com/what-is-data-

analysis.html#:%7E:text=Data%20analysis%20is%20defined%20as,based

%20upon%20the%20data%20analysis. 

 Healthline. (2018). Does Walking Barefoot Have Health Benefits?

https://www.healthline.com/health/walking-barefoot

 Arthur, R. (2016). The Marketing Power of Sports’ Stars.

https://www.nytimes.com/2016/04/05/fashion/sports-athletes-marketing.html

 Euromonitor international (2021). Footwear in the Philippines.

https://www.marketresearch.com/Euromonitor-International-v746/Footwear-

Philippines-14197847/
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APPENDICES

Regression Analysis

Survey Questionnaire

Section 1: Respondent’s Consent

 I am willing to participate in this research. I understand that my participation
is completely voluntary, and that my personal information will be kept
confidential and used solely for educational purposes.

Section 2: Respondent’s Profile

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Name(optional):

Age:

Location:

Section 3: Survey Questionnaire

How much would you spend on a pair of shoes?:

How much would you spend on socks?:

How much is your monthly allowance or income?:

How many pairs of shoes do you buy in a year?:

How many pairs of shoes do you buy in a month?

 0
 1
 2
 3
 4
 Other

What type of shoes do you usually buy? 

 Boots
 Sneakers
 Running Shoes 
 Basketball Shoes
 Heels
 Other
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