CHAPTER 3

METHODOLOGY
CHAPTER 3
RESEARCH FRAMEWORK

Abstract
This chapter presents the framework and methods that guides this study. In
relation to the Filipino consumer decision affecting the coffee consumption along
with the factors. These theoretical foundations are translated to a conceptual
framework that illustrates the research model of the study.

3.1 Research Design

After acquiring enough background knowledge and preliminary insights
on the factors influencing consumer buying decision and the different
segmentation variables, a descriptive research was carried out. Consumers
purchase decisions towards the food products are a complex phenomenon
influenced by a numerous factors classified as product-related (intrinsic and
extrinsic food attributes), consumer-related (demographic, personal,
psychological and physiological characteristics) and marketing environmental-
related (economic, cultural, natural, technological, political and social
environments) (REALINI et al., 2013; TOPCU and UZUNDUMLU, 2012;
TROY and KERRY, 2010; TOPCU et al., 2009). Providing an important
communication among the manufacturer, retailer and the consumers, and then
establishing a strong bridge between each group; the brands, one of the utmost
important pieces of the information read a foodstuff, play an important role on the
consumers’ purchase decision making processes (TOPCU et al., 2008; WULF et
al., 2005; GUERRERO et al., 2000).
A descriptive research seeks to describe and explain conditions of the
present and answers questions on who, what, when, where, and how (Burns &
Bush, 2004). The goal of a descriptive research is to study a phenomenon that is
happening at a particular time and place in the coffee industry, And it involves the
examination and observation of market conditions, business practices,
organizational structures, opinions and perceptions on factors internal to the
understanding of the consumer preference and processes that are going on or
trends that are evident.

3.1.1 Sampling Design

Average
Expenditure Total Family ex
Regions in Mindanao Ave. # of Household per Region
of Household per reg
per Region

1 BARMM 845,417.32 ₱148.22 ₱125

2 CARAGA 432,040.86 ₱717.01 ₱30

3 DAVAO 1,106,736.56 ₱918.77 ₱1,016

4 NORTHERN MINDANAO 619,776.79 ₱562.16 ₱348

5 SOCCSKSARGEN 1,146,181.93 ₱542.55 ₱621

6 ZAMBOANGA PENINSULA 737,539.26 ₱ 127.21 ₱93

Total 4,887,692.72 ₱2,516,01

Upon segregation of the target market, data from the latest release
of PSA on Total and Average Annual Family Income and Expenditure by Income
Class and by Region is used to identify households who belong to the target
market which belows to all income class that range under 40k to 250K and
above income category which according to the latest release of Philippines
Statistic Authority it comprises about 21.50% of the total population, The age
preference was also taken into consideration omitting those under the categories
of 0-18y.o, 75-79 y.o, 80-84 y.o, and 85 y.o and above which comprises about
13% of the total population, arriving at 4,887,692.722 households or a demand
value worth P 2,516,018,200.44 which is shown in table 1.
 Table 1. Sample size per Region

3.1.2 Description of Sample

The respondents of this study are household in the whole
Mindanao. It is from the 6 regions in Mindanao namely BARMM, CARAGA,
Davao, Northern Mindanao, SOCCSKARGEN and Zamboanga Peninsula. In
Mindanao, there are a total of 4,887,692,722 households which equivalent to
estimated 21,505,847,976 individuals living within the 6 regions having an
average household size of 4.4 and a growth rate of 1.68% annually as of the latest
trend release of QuickStat(2015) released by PSA. The tables 2-7 shows the
demand computation for each region in Mindanao. And Table 8 shows the profile
of respondents.
Table 1. Demand Computation

Demand Computation
annual base
Total consuming Population
of BARMM per household 845,417.32
Average Expenditure of
Household per Region ₱148.2
Total Family expenditure per
region ₱125,307,755.17

Per PSA average percentage Php 2,192,885.71

to total expenditure allocated Household
to coffee,cocoa and tea per belonging to 100k
region 1.75% UNDER BARMM and above income
 Table 2. Demand Computation

Demand Computation
annual base
Total consuming
Population of CARAGA
per household 432,040.86
Average Expenditure of
Household per Region ₱717.01
Total Family
expenditure per
region ₱309,777,00.40
Per PSA average
percentage to total
expenditure allocated Php 2,192,885.71
to coffee,cocoa and Household
tea per region 1.50% belonging to 100k
UNDER CARAGA and above income

Table 3. Demand Computation

Demand
Computation
annual base
Total consuming 1,106,736.56
Population of
DAVAO per
household
Average ₱918.77
Expenditure of
Household per
Region
Total Family ₱1,016,836,349.23
expenditure per
region
Per PSA average
percentage to total
expenditure
allocated to Php 15,252,545.23
coffee,cocoa and Household
tea per region belonging to 100k
1.50% UNDER and above income
DAVAO
 Table 4. Demand Computation

Demand Computation
annual base
Total consuming
Population of
NORTHERN
MINDANAO per
household 619,776.79
Average Expenditure of
Household per Region ₱562.16
Total Family
expenditure per ₱348,
region 413,720.26
Per PSA average
percentage to total
expenditure allocated Php
to coffee,cocoa and 5,226,205.80
tea per region 1.50% Household
UNDER NORTHERN belonging to 100k
MINDANAO and above income

Table 5. Demand Computation

Demand Computation
annual base
Total consuming
Population of
SOCCSKSARGEN per
household 1,146,181.93
Average Expenditure of
Household per Region ₱542.55
Total Family
expenditure per
region ₱621,861,006.12
Per PSA average
percentage to total
expenditure allocated
to coffee,cocoa and Php 8,70,054.08
tea per region 1.40% Household
UNDER belonging to 100k
SOCCSKSARGEN and above income
 Table 6. Demand Computation

Demand Computation
annual base
Total consuming
Population of
Zamboanga Peninsula
per household 737,539.26
Average Expenditure of
Household per Region ₱ 127.21
Total Family
expenditure per ₱93,822,
region 369.26
Per PSA average
percentage to total
expenditure allocated Php
to coffee,cocoa and 1,454,246.72
tea per region 1.55% Household
UNDER Zamboanga belonging to 100k
Peninsula and above income
Table 7. Demand Computation

Gender Male
Female
Total
Age 20 years old and below
21-30
31-40
41-50
51-60
Above 60 yeas old
Missing data
Total
Civil Status Single
Married
Widow/Widower
Total
Educational Attainment High School
College
Masters level
Doctorate level
 Total
Gross Household monthly
income Below Php 10,000
Php 10,000-19,999
Php 10,000-19,999
Php 20,000-29,999
Php 30,000-39,999
Php 40,000-49,999
Php 50,000-59,999
Php 60,000-69,999
Php 70,000-69,999
Php 70,000 and above
Total

Table 8. Profile of respondents

3.2 Data Sampling
The study aimed to investigate and determine the various segments of the
coffee product consumer in Mindanao. A convenience sampling method was used,
employing the snowball technique. With the individual coffee consumer as the
unit of analysis, those who will respond to the survey will be filtered, including
only those respondents who is considering buying cofee as a substitute for cacao
base or tea drink. Total of 1, 200 respondents will be used in this study. This
particular sampling method was used as this was the only feasible option given the
unique circumstances of the study. It must be noted, therefore, that results of the
study should be interpreted with caution due to the manner by which the
respondents were chosen.
The descriptive statistics of sample is presented in Table 1.
3.5. Data Collection
Data for the study will be collected during the 1st week of August 2020
second quarter of the year by using an online survey form and disseminated
through the referral as well as through posting in various e-groups in a popular
social networking site. This data collection method is particularly chosen to
minimize the use of paper and consequently contribute to the efforts of sustainable
practices and promotes cost effiency on the study.
3.5. Scale Development and Data Analysis
The survey questionnaire will consist of three parts. The first part
contained variables for geographic, demographic and psychographic criteria while
the second part contained the behavioural, expectations, resources and the third
part contained resources, environmental concern and preference criteria. The
instrument will be pretested with a convenience sample of 50 individuals
distributed through a popular social networking site. The reliability of the scales
will be determined using Cronbach‟s α. All values of Cronbach‟s α should be
above 0.60 signifying relatively high reliability and internal consistency.
Composite scores for every criterion will be computed by getting the average of
the respondents‟ answers across the items and will be used in the analysis. In
order to determine the various underlying segments in the sample, the criteria will
be subjected to cluster analysis. ANOVA will be utilized to ascertain each
criterion’s ability to significantly characterize the clusters that will be derived.

3.4 Statistical tool

3.4.1 Descriptive Statistics

Descriptive Statistics such as measures of central tendencies (e.g.,

mean and median) and measures of variability (e.g, standard deviation and
variance) are useful in getting an overall picture of all the variables used in
both the country-and organizational-level analyses. This study utilized
central tendencies of the variables in the study. The mean, median, and
mode were measures of the centre of a set data and theses were used to
identify the skewness of the distribution of the data.
 3.5.2 Hierarchical Cluster Analysis

Hierarchical cluster analysis, particularly the average linkage (between

groups) method, was specifically used to investigate the underlying factor
structure of coffee consumer. Additionally, this data analysis method will be used
to identify the number and composition of unique clusters within the coffee
consumer sample used in the study. In particular, the complete linkage method
was used in determining clusters.

3.6 References
Burns, A. C., & Bush, R. F. (2004). Marketing Research: Online research applications (4th
ed.). Phils: Pearson Education South Asia Pte Ltd.