ESTABLISHING INEXPENSIVE BEVERAGES IN ONLINE SELLING PLATFORM

IN TANZA CAVITE

A Research Proposal Presented to the Faculty College of Education

Cavite State University – Tanza Campus

Tanza, Cavite

In fulfilment to the requirements in

Marketing Research

Alconera, Jane Clarisse C.

Caballero, Riel Jhon B.

Dionaldo, Jethro James T.

Garcia, Rex C.

Pepino, Gerald

Researchers

Mr. Prince Isaiah Jacob

Research Adviser

December 8, 2023
 INTRODUCTION

BACKGROUND OF THE STUDY

In today’s digital era, the first things that come to mind when considering an

online selling platform are those that only the wealthy or middle class can buy in

online selling platform. Many individuals use online selling platforms for their

purchases due to their convenience and less effort.The beverage industry is a huge

and continuously expanding market, with consumers constantly seeking out new and

refreshing beverages. However, not everyone has access to a wide variety of

beverages, especially those living in inaccessible areas. Popular online selling

platforms like Food panda and Grab are known for their expensive products, further

limiting the choices available to consumers.

The main problem addressed in this study is the limited availability of

inexpensive beverages in online selling platform. This problem is caused by a

number of factors, including The cost of packaging can be a significant expense for

beverage sellers, especially when catering to remote areas where transportation

costs are higher. There is a risk of scams and fraud in online selling, which can make

consumers hesitant to purchase beverages from unknown sellers. limited access

areas, some areas are difficult or impossible to reach by traditional delivery methods

which reduce potential sales and revenue. Online selling platforms like Food panda

and Grab are known for their expensive products, which can make beverages

unaffordable for many consumers.

These problems may affects in online selling platforms, like Grab and

Foodpanda, can provide valuable insights and benefits. It can help develop strategies

to protect consumers from scams and fraud, inform business strategies, identify

opportunities for market expansion. Inaccessible areas often present logistical

challenges, which can be optimized pricing strategies, and logistics optimization.

Understanding the specific needs and preferences of consumers in these regions

can enable online platforms to address the problem accordingly. Building trust is

essential for the long-term success and sustainability of online selling platforms.

Knowledge of these challenges can help online platforms comply with local laws and

regulations, ensuring fair pricing, preventing fraudulent activities, and adhering to

consumer protection regulations.

Establishing an online platform for selling inexpensive beverages can have

both positive and challenging effects. It requires effective marketing strategies,

efficient logistics, reliable internet connectivity, regulatory compliance, customer trust,

understanding local preferences, and excellent customer service. To succeed,

businesses must focus on product quality, pricing strategy, marketing efforts, and

customer service. Conducting thorough market research and adapting to the dynamic

online business environment is crucial for success. Investing in a user-friendly

platform, ensuring regulatory compliance, and providing transparent information

about products are also essential.

 Significance of the Study

This study helps to understand and address the problem of limited availability of

inexpensive beverages in online selling. By understanding the logistical challenges of

delivering beverages, sellers can develop more efficient and cost-effective

distribution methods. Additionally, by determining the most suitable packaging for

beverages, sellers can reduce the risk of damage during transportation. Furthermore,

by staying up-to-date on technological advancements, sellers can access new

markets and reach consumers in remote or inaccessible areas. In conclusion, this

study is crucial for understanding the challenges and opportunities of selling

beverages online. By addressing the problem of limited availability of inexpensive

beverages, sellers can expand their market reach, increase their sales, and better

serve the needs of their customers.

 Research Objectives

The primary objective of this research is to identify effective strategies for

establishing a inexpensive beverage on online selling platform.

Specifically, this study aims to:

1. determine customer preferences for beverages in online selling platforms:

2. study the impact of information legitimacy on online beverage purchases.

3. identify the most affordable beverages available on online selling platforms.

4. understand customer demographics for online beverage purchases.

 Research Question

The researchers aim to explore the current state of online beverage sales,

examining customer preferences, product information legitimacy, and customer

demographics. We will also identify the most affordable beverages available on

online selling platform

This research sought to answer the crucial questions as follows:

1) What is the situation of online selling platform in terms of:

a) Customers preferences

- Price

- Quality

b.) Information legitimacy of a product

2) What is the most affordable beverages in online selling?

3) What are the customer demographic in terms of:

a) Gender

b) Age

c) Status/Income
 Review Of Related Literature

Beverages World Supply

According to Food and Agriculture Organization of the United Nations (FAO)

the availability of beverages has grown more than 20% in the last 40 years (see Fig.

3). Over that same time period, the population of the world has doubled, indicating

that the volume of beverages produced worldwide has grown 140%. That growth

does not include soda or juice, although Coca-Cola products alone are consumed at

a rate in excess of one billion drinks per day. The greatest increase has been in beer

consumption, which has risen almost 5 gallons per person per year. That is followed

by tea, which increased a little more than 4 gallons per capital per year. Wine and

milk consumptions have both fallen worldwide, by three-quarters and 1.5 gallons per

year respectively. Tea remains the world’s most popular beverage (consumed at a

rate of more than 12 gallons per person) followed by milk and beer (at 11 and 8

gallons per capita per year respectively). Together, those three beverages make up

more than three-quarters of the total of the beverages that FAO monitors. An

increase in milk consumption in southern hemisphere nations has contributed to a

shift in the types of milk produced.

 E-Commerce of the Philippines

Education can be more expensive than it is, and many of the students ought

to help their families even in the simplest way they can. According to Ferreira (2019),

a small business such as e-commerce could be a good start for students for it does

not need a large amount of money unlike any other businesses. Though some

students may afford to build a business, they must always take their steps little by

little because learning is a process. It may take a longer time to wait but as per

philosopher Lao Tzu, “The journey of a thousand miles begins with one step”. Since

the world is now full of technology, it is much easier for individuals, especially

students to be creative and resourceful. It could also be a sort of entertainment to

others but not only it entertains people, but it could also be their own source of

income. In this time of generation, the widespread online selling became popular due

to this pandemic. According to Markus (2019), electronic commerce or in its simplest

form e-commerce, refers to any form of business transaction conducted online. It all

started 40 years ago and to this day, it continues to grow with new technologies,

innovations, and thousands of businesses entering the online market and some of

the businesses became more and more popular each year. It plays a very important

role in the economic growth and development of a nation. This activity is included in

planning, controlling, promotion and also 5 distribution of various goods and services

through the use of technology. Virtual social networking is part of social media and

one of the gadgets that we can use in this type of business is our smartphones. By

using smartphones users can connect together away from the limitations of time and

place, culture, and social class. Also, they can even communicate with other people

or scroll endlessly by the help of our modern technology. According to the

International Telecommunications
 Impact of Legitimacy

The concept of legitimacy, with its roots in institutional theory and political

economy, constitutes a prominent theoretical perspective in corporate environmental

disclosure research. As an institutional intermediary, focusing on dissemination and

evaluation of corporate information, public media play an important role in such

legitimation processes (Fombrun, 1996; Rao, 1998).A company's legitimacy

originates from its stakeholders' acknowledgment and approval of it. Stakeholders

include the general public, investors, employees, and customers. For businesses to

last and grow over time, they must be legitimate.Public media are closely followed

because of their perceived superiority in accessing and evaluating firms (Fanelli and

Misangyi, 2006). Legitimacy is determined in majority by public media. This is so

because people frequently perceive the public media as a reliable source of

information. The information and evaluations provided by public media tend to be

distributed more broadly than the opinions of the average stakeholder. Accordingly,

they are likely to have a high degree of influence on which organizations and

organizational properties become prominent in the minds of stakeholders (Fanelli and

Misangyi, 2006). Positive coverage of a company's environmental performance by

the public media can contribute to the company's increased legitimacy.Furthermore,

for the manager, media evaluations may be the only persistent and long-term proxy

for collective legitimacy impressions on which it can benchmark and model its

environmental communication strategy. In this vein, Neu et al. (1998) argue that

environmental disclosures focus on relevant publics that are dominant rather than

peripheral and ‘critical’ ones.Businesses can control their legitimacy by using the

public media. This can be achieved by interacting with public media outlets and

sharing information about their environmental performance.

 Shopping Orientation

Many research studies attempted to identify consumers' shopping

orientations in order to understand their preferences for shopping from retail outlets,

home, catalog or mail orders, or the Internet. Among the earlier shopping orientation

studies, Stone (1950) offered the first taxon of shoppers identifying them as

economic, personalizing, ethical. and apathetic shoppers based on varying

orientations toward shopping in general. More specifically, Stone explained that an

economic shopper typically pays more attention to merchandise assortment, price

and . A personalizing shopper seeks personal relationships with sales people. An

ethical shopper believes in supporting local stores rather than chain stores even if it

means higher prices and less variety of goods Lastly, an apathetic shopper is one

that is not interested in shopping but does shopping because of necessity.

Alternatively, Stephenson and Willet (1969) classifed shoppers based on the degree

of patronage concentration across retailers as store- Royal high concentration (low

search), convenience oriented dow concentration (low search), compulsive and

recreational high concentration (high search), and price-bargain shopper dow

concentration (high search). Mchie (1976) studied shopping orientations of cosmetic

buyers using life-style variables Activities, Interests and Opinions and classified

shoppers as store loyal, brand loyal, paychosocializing, name conscious and

problem-living shoppers. His findings suggested that shoppers with different

shopping orientations display different communication behaviors or therefore, they

have different needs and preferences. for Sam Williams, Paloter and Nichols 1970

identified shoppers as low-price motivated, ovuled, and apathetic shoppers based on

their pored attributes of predorned grocery stores.

 Approach to Develop Affordable Products

Universal design and frugal innovation both are equally important to fulfill the needs

of the people in resource limited civilization. Frugal innovation has been increasingly

highlighted as an important element in improving the quality of life economically as

well as socially. Many design researchers and engineers now dedicate time and

knowledge to producing practical solutions to enhance the quality of life of low and

middle-income groups. In recent years, many design research, frameworks, and

methods have been carried out in the context of Universal Design (UD) and

Sustainable Design (SD). It is essential that the design of any product, environment,

and service is usable by all user set to the greatest extent possible, without the need

for adaptation or specialized design. Curb cuts and ramps are the prime examples of

universal design as shown in Figure 1. Elevators, ramps, curb cuts, etc. have

become very accustomed to diverse user groups (with and without disability or

special needs). Although, the majority of the population benefits from these products,

only a few Fully Abled People (FAP) can appreciate its universal value . One of the

reasons could be that acknowledging a serious necessity for such a product is

perceived by the majority as an act of labeling themselves as differently-abled. A

universally designed product can be described as a product or environment used by

a majority of the population, say, for example, Differently Abled People, Specially

Abled People, Fully Abled People, etc. The main focus of the universal design is not

to make people fit to the product, system, and/or environment but to make a product

or environment fit to the people. In order to attain a true universal product,

considering the needs of different user groups, the product efficiency should be

increased, and essential cautions must be taken to make a product, system, and

environment usable and accessible for all set of the users (Afacan & Demirkan,

2011). The concept of universal design is not limited to catering problems or issues

related to only disability. It also extends its spectrum in providing equal benefits by
bridging universal design and frugality. To expand the capacity of universal design

and remove the barricades introduced by current design practices, it is advisable to

include frugal innovation in it. Affordability is one of the trade-offs encountered in the

universal design. Many universally designed products being quite costly, due to

expensive design adaptations, may not be considered as truly universal due to their

lack of affordability. We realized that design facilitated by frugality actuates and

contributes towards economical designs which can cater user at the base of the

pyramid. Frugal Innovation is positioned in the low and mid-end segment of emerging

market, i.e. more extensive and diverse user sets.

Frugal innovation and Universal Design (UD) are two essential tactics for developing

goods and services that are inexpensive and available to all. UD deals with designing

goods and services that are usable by everyone, regardless of their abilities or

disabilities. Frugal Innovation focuses on developing goods and services that are

inexpensive and useful for consumers in environments with limited resources. This

involves creating products that are simple to use, understand, and navigate, as well

as ones that can be customized to meet the needs of specific users. This involves

using inexpensive materials and technologies and coming up with creative

approaches to issues when resources are limited. UD and Frugal Innovation can be

combined to produce goods and services that are both reasonably priced and easily

accessible. This is crucial for individuals living in underdeveloped countries, where

access to basic products and services is often limited.

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