CHAPTER 1

INTRODUCTION

Background of the Study

Don Macchiatos is a popular coffee brand known for its unique blend of flavors and

its appeal to the younger generation. Understanding the factors that influence marketing

students' purchasing decisions can provide valuable insights into the coffee market and

consumer behavior.

Coffee has become a staple for marketing students, providing the much-needed fuel

to power through late-night study sessions and early morning classes. Among the many

options available, Don Macchiatos coffee has gained popularity among marketing

students. Understanding the preferences of marketing students in buying Don Macchiatos

coffee is essential for the brand to effectively cater to their target market. By analyzing

the factors that influence students' choices and exploring their preferences, this essay will

argue that a combination of taste, price, convenience, and brand loyalty shapes students'

preferences in buying Don Macchiatos coffee.

Consumer preference is defined as the subjective tastes of individual consumers,

measured by their satisfaction with those items after they have purchased them. This

satisfaction is often referred to as utility.

A set of assumptions that focuses on consumer choices that result in different

alternatives such as happiness, satisfaction, or utility. Consumer makes decisions by

allocating their scarce income across all possible goods to obtain the greatest satisfaction.

Formally, we say that consumers maximize their utility subject to budget constraint.
Utility is defined as the satisfaction that a consumer derives from the consumption of a

good. As noted above, utility’s determinants are decided by a host of non-economic

factors. Consumer value is measured in terms of the relative utilities between goods.

The entire process of consumer preference results in an optimal choice. Consumer

preference allows a consumer to rank different bundles of goods according to the

satisfaction levels or utility. Utility is nothing but the total satisfaction of consuming a

good or service.

This research aims to investigate the flavor preferences of marketing students in

relation to Don Macchiatos Coffee shop. This research expects to reveal valuable insights

into marketing student’s preferences for Don Macchiatos coffee flavor. It is anticipated

that the findings will highlight the favored coffee flavors among this demographic, shed

light on the factors influencing their choices and provides an understanding of how Don

Macchiatos coffee flavor compares to the other shop.

Statement of the Problem

The purpose of this study is to determine the preferences of marketing students on

Don Macchiatos Coffee flavor.

Specifically, the study aimed to provide the answer of this following questions:

1. What is the students profile in terms of Age, Sex, Year Level and Allowance?

2. What is the level of marketing students' preferences on Don Macchiatos coffee

flavor?
 3. What input to enhanced marketing scheme could be drawn from the results of the

study?

Hypothesis

There is no significant difference in the marketing student’s coffee flavor

preferences when grouped according to sex, age, year level, and allowance.

Theoretical Framework

A number of theoretical approaches have been utilized to explain the preference of

consumers. Many theories had been used to understand the process through which

customers form satisfaction judgments. This section also shows the theoretical model of

marketing mix.

Marketing expert named E. Jerome Mccarthy created the Marketing 4Ps (product,

price, place, and promotion) in the 1960s. Product is the actual offering by the company

to it is target costumer which include the value added stuff. Product may be tangible or

intangible.

Product also goods, ideas, methods, information, object or service created as a

result of a process and serves needs or satisfies a want. Product has combination of

tangible or intangible attributes (benefits, features, functions, uses) that a seller offers a

buyer for purchase. (Business Dichonary, 2018)

Price is a value that will purchase a finite quantity, weight or other measure of a

good or service. Price refers to the real amount the end user is expected. The price of a
product affects how it performs on the market. This is related to the products perceived

value to the customer as opposed to the product costing.

Flavor has been defined by Hall (1968) as follows: “Flavor is the sensation

produced by a material taken in the mouth, perceived principally by the senses of taste

and smell, and also by the general pain, tactile and temperature receptors in the mouth.

Flavor also denotes the sum of the characteristics of the material which produce that

sensation.

Conceptual Framework

The schematic diagram in Figure 1 is the schematic diagram! Showing the vet

variation in the variables covered by this study The independent variables were the

profile of the respondents, set age, Year Level and allowance. The dependent variables

were the students' coffee flavor preferences in terms of the 4Ps (product, price, place, and

promotion) of marketing mix.

The study hypothesized that there was no significant difference in the students'

coffee flavor preferences when. they are grouped according to profile.

 Independent Variable Dependent Variable Input to

Students Profile Students Coffee Flavor

Preferences in Terms of 4p’s

Age:

Product:
Sex: To Enhance Marketing

Prize: Scheme
Year Level:

Place:
Allowance:

Promotion:

Significance of the Study

The findings of the study would be significant to the following:

Don Macchiatos. This study will provide valuable insights for Don Macchiatos in

understanding the preferences of marketing students, a key target audience.

Researchers. The result of this study would give researches insights on marketing

student’s preferences on Don Macchiatos- coffee flavor.

 Future Researches. This study would provide coffee researcher to innovate coffee

ideas and creativity base on the displayed preference of a potential market.

Scope and Limitations of the Study

This study focused on the marketing student preferences on Don Macchiatos coffee

flavor. The respondents of this study is marketing students at Capiz State University-

Main Campus.

Definition of the Terms

In order for understanding the readers and the viewers to obtain and knowledge of

this study, the clear following key terms are defined.

Product. In this study product refers to coffee and coffee flavor preffered by marketing

students.

Price. In this study price refers to the amount paid by students in exchange for their

coffee. Place in this study place refers to intermediaries distributors such whole sales and

retailers.

Promotion. in this study promotion refers to information regarding to coffee that

convinced students to purchase a coffee.

Preferences. It refers to selecting of something over another or others; the right to make

a choice. In this study preferences refers to the selection of the coffee flavor of their

choice.
 CHAPTER 2

REVIEW OF RELATED LITERATURE

Local Studies

The Philippines belongs to this special are area and is one of only fifty-three

countries that produce coffee (pacita and regina). Several master’s theses and doctoral

dissertations focusing on the production and export of coffee was once a major industry

in the Philippines, which 200 years ago was the fourth largest coffee producing nation.

Today, however, the Philippines produce only. 012% of the world's coffee supply. Efforts

are being undertaken to revive the industry however, with the majority of coffee

produced in the mountain areas of Batangas, Bukidnon, Benguet, Cavite, Kalinga,

Apayao, Davao,and Claveria.

Local Related Literature

After the revolution in 1989, back when energy drinks and coffee were discovered,

the consumption of stimulants and alkaloids progressively increased as time passed by.

The demand for beverages and other alternative forms containing stimulants ran at a fast

rate. Rising consumption were driven by reasons varying from doing an all-nighter for

examinations, working over-time, and drinking routinely as beverages. Many people

drink caffeinated products for breakfast, lunch, and even night. Surprisingly, the intake of

these products goes nearly round-the-clock. According to the most recent data count

gathered by the research firm Euromonitor.com last 2013, the Philippines has a yearly

consumption of 1.2 kilograms of caffeine per capita. Build-up of intake is fast since
caffeine overload nowadays is rampant. Moreover, the dosage overload of caffeine that

could affect the cognitive processes and damage the health of the consumer is deemed to

not affect the progressively increasing consumption of caffeinated products.

Caffeine is important nowadays because of its stimulating properties physically and

mentally. The body absorbs it immediately within 30 minutes and its effects may last 2-5

hours. Among all the decaffeinated products, Coffee & tea and Energy drinks are the

most consumed caffeinated products in the Philippines. (Gubat, M., Magtibay E.,

Gironella G., Tajan M., Constantino A., 2015).

Energy drinks have been associated with adverse health effects. Studies indicate

that more research needs to be done on the effects of the ingredients on health and

especially excessive consumption of a combination of those ingredients as found in

energy drinks. Young people need to be educated on this. Digital storytelling is one

creative, art based method that can catch the attention of young people and thus achieve

the aim of health promotion. Health professionals and policy makers need to draw

attention to the caution that is to be exercised in the consumption of these drinks.

(Akinmolusun, Bezabih, Kaunissaari & Mugambi, 2012).

In 30 years, International Coffee Organization (ICO, 2020) presented the data of the

Philippine total coffee production in which by 1990, the country produced 974,000 of 60

kg bags which instantly decreased from 1992-1996. However, it recovered for only a year

to increase its production but through the years, coffee production in the Philippines has

been inconsistent since then. With four different coffee variants, the Philippine Statistics

Authority (PSA, 2018), stated that in 2013, the production of coffee declined from 78.63

thousand metric tons to 62.08 in 2017.

 In comparison, the coffee consumption in Indonesia continuously grows due to the

marketing strategies and brand awareness efforts. Furthermore, the consumption from the

said country is empowered by the coffee shops that are expanding that even includes

franchises and small businesses (Wang, 2017). The relevance of the aforementioned is

that the said strategies or efforts can be adapted in the Philippines since the consumption

of coffee is high. Data from the

International Coffee Organization (ICO, 2021), presented the domestic

consumption for coffee (in thousand 60kg bags) of the Philippines has steadily increased

from 1990 to present. The highest amount of domestic coffee consumption reached 3.3

million of 60kg bags from 2018 to 2019 compared in 1990 to 1991, which is just around

720,000 60kg bags.

Coffee consumption in Indonesia is still rising in which the country becomes the 8th

largest consumer in the world. Wang (2017) used a Grey system modelling to forecast

the real data gathered in which the results are seen to be accurate and that the

consumption of coffee in Indonesia will still increase in each year. Producing countries

do not preserve most of the profit brought about by the coffee production. The behaviour

of the demand of the consumers is inevitable to change and the market will most likely

stay adapting itself in order to suffice the changes. It is also stated in the study that richer

nations are usually related to higher coffee consumption as a portion of total world

production (De Lima, et al., 2020).

Total exports of coffee beans are declining rapidly, along with the total production

of coffee beans, despite the latter being able to stabilize around 2010 (ICO, 2021).
Enhanced policies helped to improve the development and quality of the coffee industry,

both the local consumption and market exportations. Given that Indonesia is one of the

major producers in the coffee industry, it mostly exports for the global market. So as to

improve the competitiveness and sustainability of the coffee industry, policies are

suggested to be able to increase the level of productivity and empower the smallholder

farmer’s performances (Arifin, 2013). The Philippines coffee exports in 2014 was

US$3.2 million. In addition, it contributes less than 0.009% of the global trade supply.

Instant coffees are the largest export in the Philippines with the value export of 82% in

the year of 2014, however, the extract plunged from US$6.2 million in 2005 to US$2.6

million in 2014. With the same period, the Philippines’ total exports of raw, semi-

processed and processed coffee also dropped by US$4 million, from US$7.2 million to

US$3.2 million (Bamber et al., 2017). Fair trade is welfare improvement, a policy to

address market failures present in coffee production, as seen in the short run, partial

equilibrium model that takes market failures into account (Tedeschi &Carlson, 2011).

Foreign Literature

Mention coffee, and caffeine is probably the first thing that comes to mind—the

indispensable morning jolt often viewed as a guilty pleasure. But research is turning that

notion on its head. A recent Harvard University report noted these coffee benefits: lower

blood pressure, a slower rate of weight gains with age, and reduced risks for type 2

diabetes and heart disease. An NIH-sponsored study of 400,000 men and women,

between the ages 50 and 71, found that those who drank three or more cups daily, with or
without caffeine, were less likely to die from heart disease, respiratory disease, stroke,

diabetes, and infections. Other studies have found that coffee reduces risk for various

cancers, liver damage from overindulging in alcohol and food, and depression

(caffeinated coffee specifically) among women. Why it’s good for you

“Coffee is the new red wine, without the hangover,” says Bob Arnot, MD, a TV

medical correspondent and health book author who has tested hundreds of coffees from

around the world. The health-boosting ingredients are antioxidants called chlorogenic

acids, a group of antioxidants in the polyphenol family of nutrients, found in plant foods.

“These powerful anti-inflammatory and antioxidant compounds are the most important

health components of coffee, just as they are in the freshest fruits and vegetables, fi ne

red wines, and premium green teas,” says Arnot. But given the way we eat, coffee is

typically the top source of these nutrients in the American diet.

Marketing mix which is known also as the 4Ps is a widely accepted theory in

marketing and sport marketing. According to Harvard Business Review, the widespread

use of the marketing mix (4Ps) concept led it to be integral in the organization of

marketing courses (Shapiro, 1985). The concept is utilized in both theory and practice, by

academicians and practitioners, since its origin is more than half a century ago. The

marketing mix has four elements that start with P. Product, Price, Place, and Promotion

Criticizing the marketing mix is not new to marketing research. Due to doubt caused by

emerging marketing trends such as marketing of services, relationship management, and

social media, new marketing models were needed to serve marketing practitioners (Dhas

2014).
 Sport marketing management utilizes the marketing mix. The marketing mix is

crucial in the marketing industry and most of any sport marketer's time should be spent

developing this cornerstone. The importance of marketing mix for a sport context is

caused by the fact that its elements define the sport business (Pitts, Stotlar, 2013). In the

world of sport marketing a decision cannot be made while ignoring any one of these

elements. Therefore, a discussion of the traditional marketing mix and possible revisions

is central to sport marketing, just as it is central to any other industry that uses marketing.

The acceptance of the marketing mix or 4Ps grew because of its simplicity, case of

adoption, and popularity in various business school curriculums. Kent (as cited by

Grönroos, 1994) refers to the 4P’s of the marketing mix as “the holy quadruple of the

marketing faith... written in tablets of stone." But while there is considerable support for

this historic understanding of the 4Ps, criticizing the marketing mix is not new to

marketing research. Harvard Business Review (2013) claimed the marketing mix served

marketers well for half a century, but it is increasingly at odds with business-to-business

marketing world (Entenson et al, 2013).

Philip Kotler (1992) argued that the 4Ps is good from a pedagogical perspective

because of its simplicity. However, there is a need for other marketing classification to be

born. Over the years, the profession of marketing has experienced major shifts and trends

that led many scholars to call for change. Kotler and Keller (2012) conclude the need to

11 of 153 update the 4Ps. since the traditional marketing mix/clearly [is] not the whole

story anymore" (pg. 47)

 Foreign Studies

Coffee consumption is a human tradition that goes back many hundreds of years,

perhaps thousands. Master Healer Dr. Pankaj Naram notes that research during the last

several decades has been conflicting about whether coffee is good for the human body.

Generally speaking, according to Dr. Naram, new research is showing that moderate

coffee consumption can be beneficial for most people. Dr. Naram points out that the

research is interesting for several reasons. First, it goes against the widely held notion that

coffee is universally bad for the health. Second, the latest studies agree with many other

research efforts that point to coffee as something that can actually be healthful in the long

run, provided people consume it in moderation and do not add unhealthy substances to

enhance its natural taste.

Recent studies show that moderate coffee consumption can help with overall energy

levels and the ability to learn and remember tasks. In other words, according to Dr.

Pankaj Naram, the research says that coffee increases both alertness and mental acuity.

Other studies show that coffee drinking on a regular basis can help increase the body's

natural ability to burn fat. It does this, according to researchers, by boosting the metabolic

rate by as much as 15 percent.

Further aiding coffee's nutritional "resume," according to Dr. Naram, is the fact that

studies point to beneficial levels of several B vitamins as well as potassium and

magnesium in coffee. This fact has been known for many years but is only recently being

discussed, according to Master Healer Dr. Pankaj Naram. Coffee has had a bad reputation

for at least three decades until new research has begun to shine a light on its many

benefits.
 Finally, new studies have shown that coffee drinking may be able to lower the risk

for contracting Type 2 diabetes, especially in those adults who are otherwise healthy. Dr.

Pankaj Naram notes that there are still many unanswered questions about the overall

advantages and disadvantages of coffee drinking. Consumers should pay attention to

findings of the latest research as they are reported in the mainstream press.

Dr. Pankaj Naram has worked with famous people as well as the destitute. His work with

Mother Teresa, the Dalai Lama and Nelson Mandela is well known, as is his loyalty to

the poorest people of India who usually have nowhere else to turn when they need

medical help. Master Healer Pankaj Naram is a recognized expert in pulse reading and

the treatment of dozens of physical and mental problems.

 CHAPTER 3

METHODOLOGY

This chapter discusses the method of the research, the collection, and the statistical

tools used in the study. respondents of this study, the instrument used, the data

Research Design

The study utilizes a descriptive research design in order to investigate what is the

most preferred flavor of marketing students on Don Macchiatios coffee.

According to Gay (1992: 217), descriptive research involves collecting data in order

to test hypotheses or to answer questions concerning the current status of the subject of

the study. A descriptive study determines and reports the way things are. Descriptive

research is scientific research that describes about event, phenomena or fact

systematically dealing with certain area or population.

Respondents of the Study

The respondents of the study are marketing students at Capiz State University -

Main Campus for the school year 2023-2024.

Sample Size

To determine the appropriate sample size, the researchers used Cochran’s formula.

Sampling Technique

The researchers utilized stratified sampling in choosing the respondents.

Research Instrument

Two (2) separate instruments will use in gathering the data. The first will be gather

the personal profiles of the respondents, and the second will gather information on the

Marketing Students Preferences on Don Macchaitos Coffee: Input to Enhanced

Marketing Scheme.

Demographic Profile Sheet (DPS). This will use to gather data on the respondent’s

personal data, such as their age, sex, year level and allowance. The questionnaire is

compose of questions that are answerable with "highly preferred” “preferred”,

“moderately preferred”, “less preferred”, and “least preferred”.

Scoring of Variables

To interpret the data from the questionnaire, the researchers utilize the following

scales of mean and the interpretation.

Scoring Range Verbal Interpretation Mean Scale Respond Category

5 Highly Preferred 4.21-5.00 Strongly Agree

4 Preferred 3.41-4.80 Agree

3 Moderately Preferred 2.61-3.40 Neither Agree nor Disagree

2 Less Preferred 1.81-2.60 Disagree

1 Least Preferred 1.00-1.80 Strongly Disagree

Locale of the Study

The study will be conduct at Capiz State University, Roxas City Main Campus,

specifically in the Department of the College of Management.

Statistical Analytical Tool

 The researchers will use descriptive statistical tools and analysis of variance

(ANOVA) and T-tests for independent variables as inferential statistical tools to

determine the significance of the difference.

MARKETING STUDENTS PREFERENCE ON DON MACCHIATOS COFFEE

FLAVOR: INPUT TO ENHANCE MARKETING SCHEME

CHRISTINE LAURENTE

APRIL JOY PATRICIO

MARY CHRIS PLAGA