SOCIAL MEDIA MARKETING: ITS EFFECTS ON THE INCOME OF MILKTEA

BUSINESSES

A Research Paper Presented to the

Accountancy, Business, and Management Strand

Oton National High School

Mrs. Janet Equibal

Practical Research II Teacher

Members:

Dimamay, Denisse Marie M.

Engana, Reymart

Montefrio, Joy-Ann

Tumambo, Viktoria Krystin M.

 Chapter 1

Introduction to the Study

Chapter One is composed of seven parts: (1) Background and Rationale of the Study,

(2) Theoretical and Conceptual Framework of the Study, (3) Statement of the Problem, (4)

Hypothesis, (5) Significance of the Study (6) Definition of Terms, and (7) Scope and

Delimitations of the Study.

Part One, Background and Rationale of the Study, explains the rationale of the study,

and discusses the necessity and practical importance to the persons and institutions involved. It

also presents the conceptual framework of the study.

Part Two, Theoretical and Conceptual Framework of the Study, discusses the theories

which this study is grounded upon. It also presents the paradigm of this study.

Part Three, Statement of the Problem, cites the study’s general and specific problems or

questions to be addressed or answered.

Part Four, Hypothesis, states the tentative answers to the research questions prior to

the results.

Part Five, Significance of the Study, justifies the importance of the study and the

benefits it may offer to individuals and institutions by providing information about the factors

behind the mismatch of students towards their strand.

Part Six, Definition of Terms, enumerates the conceptual and operational definitions of

some important terms used in the study.

Part Seven, Scope and Delimitation, specifies the scope and coverage of the study.
Background of the Study

Social Media has been considered one of the most useful tool in today’s society. It has

been serving as one of the biggest medium for communication since it is very efficient and the

amount of information disseminated can be limitless. It has rapidly impacted different aspects

of our lives and has continuously branched out to different bracket such as entertainment,

education, to promotion, brand awareness, and marketing. Presently, the most influential kind

of marketing is social media marketing. Social Media Marketing (SMM) is the use of social media

or social networks to promote goods or services, engage with existing clients, and attract new

ones (Hayes, 2023). In recent years, social media marketing has became a pivotal component

of every business strategy. It is essential for businesses that are growing or are looking to

widen their customer base (Bappa, 2023).

There are over 4.62 billion people that are using social media worldwide on a daily

basis. It is really difficult to grab attention when there is no social media presence. Alternatives

for social media advertising such as print and electronic media can be very costly in comparison

to social media marketing. These alternatives can also be very time consuming as you will need

to devote a huge amount of time learning the process. Without the use of social media, the

business will have to share a huge number of credentials and data, unnecessarily putting the

company in danger. In addition, it would also be very difficult to gain a strong customer

relationship when a company uses a non-social media marketing as customer will only be able

to interact with the business face-to-face (Hore, 2022). It is very important to invest on social

media in times where internet connectivity and social networking is thriving the most. Many

local businesses have difficulties to stay updated about the happenings in the market and what

is the current trend that their competitors have catched up to which does not allow them to
accept the changes in the market which they do not have knowledge of and cutomers slowly

lose interest in their business (“6 Biggest Marketing Problems for Small Business Owners for

Growing,” n.d.)

Knowing the effects of social media marketing on the income of small business like

milktea businesses can gradually provide additional knowledge whether social media marketing

is really effective for small businesses. Since social media is very essential today and social

media marketing is also an essential part of the online marketing aspect, it has the ability to

greatly ameliorate the brand of the business. It will also be able to help in its reputation

management, and relationship with the customers. These factors have specific impact on a

business’ overall welfare, under this, the company’s sales and income.

Statement of the Problem

This study aims to evaluate the effects of social media marketing on the income
of milktea businesses in Oton, Iloilo.
Specifically, this study aims to answer the following questions:
1. What is the degree of the effects of social media marketing on the income of
milktea businesses in Oton, Iloilo when taken as a whole and when grouped according
to the measure of social media engagements?
2. What is the level of the effects of social media marketing on the income of
milktea businesses in Oton when taken as a whole and when grouped according to the
number of followers?
3. Is there a significant difference on the effects of social media marketing on the
income of milktea businesses in Oton, Iloilo when grouped according to social media
engagements?

Hypothesis
There is no significant difference on the effects of social media marketing on the
income of milktea businesses in Oton, Iloilo when grouped according to social media
engagements.

Theoretical Framework

This study centered on Chaffey’s theory of Social Media Marketing where he defined it

as monitoring and supporting customer participation, conversation, and sharing on social media

to promote good brand engagement and boost sales. Interactions may take place on a business

website, social media platforms, and other outside websites (Chaffey, 2002). He described

digital business as how businesses use digital technology and media to enhance their

organization's competitiveness by streamlining internal operations and utilizing both online and

conventional channels for marketing and supply (Balan, 2014). Chaffey's theory emphasizes the

importance of using social media not just to promote products or services, but also to listen to

and engage with customers. He also argues that social media marketing is most effective when

it is part of a larger customer experience, where it is used to enhance or extend the overall

customer journey. This means that companies should use social media to improve the overall

customer experience, for as by giving customized recommendations, offering real-time

customer assistance, or giving devoted customers access to special prizes or promotions. This
strategy not only improves the customer experience and makes it more meaningful, but it also

motivates users to interact with the company more frequently and consistently.

By using Chaffey’s theory, the study can examine how social media marketing efforts of

small businesses affect their sales, as well as their customer relationship, and reputation.

Conceptual Framework

Independent Variable Dependent Variable

Social Media Marketing Income

Figure 1. A Diagram showing the Dependent and the Independent Variables of the Study.

Significance of the Study

This study will be undertaken to contribute to the existing knowledge by providing

insights into how social media marketing strategies can influence the success of milktea

businesses. The results of this study will benefit the following:

Local Government and Policy Makers. The findings of this study can be used by local

government and policymakers in Oton to understand the impact of social media marketing on

Milktea businesses and potentially develop policies or initiatives to support and promote the

growth of such businesses in the area.

Milktea Businesses’ Owners. This study can help milktea businesses’ owners to understand

the impact of their social media efforts on their business’ success and make informed decisions

about their marketing strategies.

Consumers. Through the help of this study, consumers will become more aware of the

different milktea brands available in the area and various promotional activities they undertake

on social media platforms. As a result, consumers will have a better understanding of the

milktea options they have and can make more informed choices.

Researchers. This study will help researchers to gain a deeper understanding of the impact of

social media marketing on milktea businesses in Oton. It will provide researchers with practical

insights into the strategies, techniques, and tools that milktea businesses in Oton are using to

promote their products and services on social media platforms.

Future Researchers. Through the help of this study, future researchers can build upon this

study by conducting further research to explore specific aspects or variables not covered in the

initial study. The study may uncover unanswered questions that future researchers can explore.
Scope and Limitations of the Study

This study dealt mainly with the evaluation of the effects of social media marketing on

the income of milktea businesses in Oton, Iloilo. It seeks to know the effects of milktea

businesses utilizing social media marketing to their income.

The researchers focused on milktea businesses in Oton, Iloilo as the subjects of the

study. Moreover, the milktea business owners in Oton, Iloilo were chosen by the researchers as

respondents in the set of questionnaires. The researchers then proceeded with the assessment

process subsequently where the data gathered by the questionnaires would be evaluated.

Despite the fact that the study has reached its goals, it has been subject to some unpreventable

constrains such as unwillingness of the respondents to participate, availability of the

respondents in the agreed schedule, and lack of time.

Definition of Terms

The following are the list of operational and conceptual definitions used for the purpose

of clarity and understanding of the study.

Social Media Marketing. It is the use of social media, the platforms on which users

build social networks and share information, to build a company’s brand, increase sales, and

drive website traffic (Hayes, 2023).

In this study, social media marketing is used as a marketing strategy by milktea

businesses in Oton to promote their products.

 Income. This refers to the money that a person or entity receives in exchange for their

labor or products (Scott, 2023).

In this study, income refers to the total amount of money generated by milktea

businesses in Oton as result of their social media marketing efforts.

Social Media. This refers to a variety of technology that facilitate the sharing of ideas

and information among their users (Dollarhide, 2023).

In this study, social media refers to the online platforms that enable businesses and

individuals to promote and boost their milktea businesses in Oton.

Social Media Engagement. It is the measure of how your audience interacts with

your content, reflecting their level of involvement and interest (Christison, 2023).

In this study, this refers to the interactions of the general public and consumers to the

social media pages and content of the milktea businesses.

Milktea. This are tea drinks that composes of black tapioca “boba” balls, which are

usually made from cassava starch, sweet potato, and brown sugar (Min, et al., 2016).

In this study, milk tea are the type of businesses which the study will be focused on.

References
Hayes, A. 2023. Social Media Marketing (SMM): What It Is, How It Works, Pros and Cons.

Retrieved from https://www.investopedia.com/terms/s/social-media-marketing-smm.asp.

Scott, M. 2023. Income Definition: Types, Examples, and Taxes. Retrieved from

https://www.investopedia.com/terms/i/income.asp.

Dollarhide M. 2023. Social Media: Definition, Impotance, Top Websites & Apps. Retrieved from

https://www.investopedia.com/terms/s/social-media.asp.

Christison C. 2023. How to Increase Social Media Engagement [Free Calculator]. Retrieved from

https://blog.hootsuite.com/social-media-engagement/.

Min J., Green D., Kim L. 2016. Calories and sugars in boba milk tea: implications for obesity risk

in Asian Pacific Islanders. Retrieved from

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5217910/#:~:text=Results%20indicate%20a

%2016%20ounce,and%2038%20grams%20of%20sugar.

Chapter 2

Review of Related Literature

Local

Among the many businesses and companies that use digital marketing nowadays, it is
undoubtedly one of the most effective marketing techniques. Due of its cross-border reach, this
strategy provides them with tools to market their products to a far wider audience. Better
customer relationships can also result from the content being tailored to the individual's
preferences (Astoriano et al., 2022). Digital marketing forms, especially social media marketing,
have been proven to build up consumer purchase intentions. It is of much use to small
businesses as they get to target a wider scope of consumers and would grant them the
opportunity to promote and connect with customer using the most widely-used communication
channel.

Hernandez et al. (2022) stated that the use of social media to facilitate company
operations for small and medium-sized businesses is becoming more popular. However, studies
on social media use and its effects on sustainability and organizational performance are still
lacking in the Philippines. The use of social media will improve brand visibility, productivity,
income generation, and sustainability. The type of social media platform may also vary the
effectiveness of the impact of social media. According to Hernandez et al (2022), the type of
social media platforms business owners should consider are the platforms that help improve
identity, interaction, conversion, customer service and insights reporting.

Moreover, Belga et al. (2019) implied that businesses are using social media more and
more as a low-cost and efficient marketing tool to advertise their goods and services. In
addition, a lot of consumers use social media these days to research the things they want to
buy. Companies interact with their customers on social media sites like Facebook, Instagram,
Twitter, Pinterest, and Snapchat in order to take advantage of this chance to increase revenue.
Their study aimed to identify the effectiveness of using social media for the interaction of young
consumers and local businesses. They have used a questionnaire by Bitner and Albinsson
(2016) in their study entitled “Targeting Young Adults: The Effectiveness of Social Media Use
for Local Businesses. Astoriano et al. (2022), however, made use of an online survey to 334
respondents to identify the impact of digital marketing on the buying intentions of consumersin
the Philippines. Dalangin et al. (2021) adopted a questionnaire developed by Xin Jean Lim. The
questionnaire was organized to analyze the effectiveness of social media influencers on the
buying intention of customers. This has relative relationship with the performance of the income
of the business.

Foreign

In the field of sales, technological research has a rich and lengthy history. Sales research
is being thrust into a new technology standard, starting with the role of computers and laptops,
progressing to the effect of the Internet, customer relationship management, and sales force
automation technologies, and finally arriving at the function of social media (Andzulis, et al.,
2013). In addition, Hasnain & Mujahid (2016) have stated that social media is crucial to an
organization's expansion as the business sector grow worldwide and to spreading awareness of
the goods and services offered by the targeted company to a growing number of people.

According to Marshall et al.(2013), numerous papers have chronicled the effects of

technology on several facets of the sales sector over the years. Nevertheless, the literature has
mostly ignored the introduction of social media and its associated technologies. Technology is
evolving in the sales environment, and social media has emerged as a key new selling tool as a
result. The results on their study have demonstrated that there is a revolution in the buyer-
seller relationship, with some unforeseen repercussions for the effectiveness of sales
organization and the needed additional research.

In a world where almost everyone uses internet, businesses have paved a way for
business owners and entrepreneurs to utilize this tool for their businesses. Existing studies have
stated their conclusions of the impact social media marketing has brought to businesses. This
includes brand relevancy, customer-seller relationship, interaction, and credibility. The impact
brought by SMM to these factors can also be related to the income of the businesses. Moreover,
the study conducted by Hasnain & Mujahid (2016) has disclosed that these platforms play a
significant role in businesses and consumer preference are dynamic. As a result people are now
more aware about the products and services and prefer online shopping, which boosts
companies’ profitability and sales.

References

Dalangin J., et al. (2021). The impact of social media influencers purchase intention in
the Philippines. Retrieved from
https://ejournal.unitomo.ac.id/index.php/jsk/article/view/4399
Astoriano L., et al. (2022). The Impact of Digital Marketing on Customer Buying
Intention of Customers in the Philippines. Retrieved from
https://al-kindipublisher.com/index.php/jbms/article/view/3313
Hernandez A., et al. (2022). Social Media Use, Organizational Performance and
Sustainability: Insights from Small and Medium Enterprises in the Philippines . Retrieved
from https://ieeexplore.ieee.org/abstract/document/9786462
Belga N., et al. (2019). Effectiveness of Social Media Use Towards the Interaction of
Young Adults to Local Businesses. Retrieved from
http://ijariie.com/AdminUploadPdf/Effectiveness_of_Social_Media_Use_Towards_the_In
teraction_of_Young_Adults_to_Local_Businesses_ijariie10968.pdf

Marshall G., et al. (2013). Revolution in Sales: The Impact of Social Media and Related
Technology on the Selling Environment. Retrieved from
https://www.tandfonline.com/doi/abs/10.2753/PSS0885-3134320305?src=recsys

Hasnain & Mujahid. (2016). The Impact of Social Media on Company’sGrowth: A case
study of Smart eye AB. Retrieved from
https://www.diva-portal.org/smash/get/diva2:1063587/FULLTEXT01.pdf
Andzulis J., et al. (2013). Social media technology usage and customer relationship
performance: A capabilities-based examination of social CRM. Retrieved from
https://www.sciencedirect.com/science/article/abs/pii/S0148296313001720
 Chapter 3

Research Methodology

This chapter consists of six parts; (1) Research Design, (2) Locale of the Study,

(3) Respondents of the Study, (4) Sampling Technique, (5) Research Instrument, (6) Data-

Gathering Procedure

Research Design

The type of quantitative research design that will be used in this study is the quasi-

experimental design. According to Thomas (2023), a quasi-experimental design aims to

establish a cause-and-effect relationship between an independent and dependent variable.

Quasi-experimental design can still be valuable in research contexts where random assignment

is not possible and can often be undertaken on a much larger scale than experimental research,

thus increasing the statistical power of the results.

Since this study aims to provide valuable insights and determine the effects of social

media marketing to the income of milktea businesses, the quasi-experimental research design

will be considered appropriate.

Locale of the Study

 This study will be conducted in Oton, Iloilo, Philippines. Oton is a municipality located in

the province of Iloilo. It is known for its vibrant local economy and bustling business district.

The town is home to several milk tea businesses that have become popular among both the

local population and tourists.

This locale was chosen for the study due to its significant presence of milk tea businesses and

the growing trend of using social media platforms for marketing purposes. Oton provides a

suitable environment to examine the effects of social media marketing on the income of milk

tea businesses.

Respondents of the Study

This study will involve 5 owners of milktea businesses in Oton of which have smaller

relevancy than other milktea shops in Oton who will randomly selected based on convenience

or availability.
Sampling Technique

The respondents of the study will be selected using the availability sampling method in

which they will be chosen in terms of convenience and the state of being readily available as

there is no access to the full target population.

Research Instrument

This study will be using the Research-made questionnaire.

The questionnaire is divided into two parts. The first part of the questionnaire will be containing

the personal information of the respondents.

The second part of the questionnaire will make use of specific statements to determine

the usage of social media marketing of the small milktea businesses, and their income. There

are 20 statements that can be answered by checking the column that corresponds to the

answer of the respondent. Each question can be rated from 4 – strongly agree, 3 – somewhat

agree, 2 – neither agree nor disagree, 1 – strongly disagree.

The researcher asked the experts to validate the instrument. Comments and

suggestions were noted and integrated for the final draft of the survey.
Data Collection Procedure

Identify the Research Validate the Research Inrtument

Identify the Respondents
Instrument through an expert

Conduct the survey and let the Give instructions to the Send a request letter or obtain
participants answer the participants and information permission from the School
questionnaire regarding the procedure on how Principal to conduct the survey
the data will be collected

Collect the data