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The Impact of Train Law On Beverages
The Impact of Train Law On Beverages
IN POTRERO, MALABON
A Thesis Study
Presented to the Faculty of the College of Business
DE LA SALLE ARANETA UNIVERSITY
Victoneta Ave., Malabon City, Metro Manila
By
ISAGUIRRE, RODEL P.
MEDINA, DARLENE C.
March 5, 2018
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Approval Sheet
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Acknowledgements
The Acknowledgements page is optional and limited to four pages. It follows the
Approval page. Heading is bold. It is in the same font size and style as text, and the
vertical spacing, paragraph style margins and justified alignment are the same as used in
(Sample Wording)
members, Dr. Reyes, Dr. Dela Cruz, Dr. Martinez, and Prof. Santos, for their guidance
Thanks also go to my friends and colleagues and the department faculty and staff
for making my time at De La Salle Araneta University a great experience. I also want to
extend my gratitude to the National Science Foundation, which provided the survey
instrument, and to all the Malabon elementary teachers and students who were willing to
Finally, thanks to my mother and father for their encouragement and to my wife
Table of Contents
Page
ACKNOWLEDGEMENT .............................................................................................#
ABSTRACT ...................................................................................................................#
Introduction ........................................................................................................#
Theoretical Framework
Conceptual Framework
Hypothesis
Significance of Study
Limitations
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Definition of Terms............................................................................................#
2 Methods
Research Design.................................................................................................#
Summary ............................................................................................................#
Conclusion .........................................................................................................#
Recommendation ...............................................................................................#
REFERENCES ..............................................................................................................#
APPENDICES ...............................................................................................................#
List of Tables
Table Page
List of Figures
Figure Page
List of Appendices
Appendix Page
Abstract
(September 2018)
RODEL P. ISAGUIRRE
Marketing Management
TRAIN law on consumer’s buying decision of Coke in Potrero, Malabon. This study
tested by using four factors of consumer’s buying decision such as economic impact
(positive and negative), price increase, health aspect and income. The main objective was
to evaluate the impact of consumer’s buying decision of Coke when faced with such a tax
under Republic Act 10963 also known as TRAIN law. Data were gathered by a self-
administered questionnaire. This survey has been explored the level of influence of
consumer’s buying decision which consists of gender, age, civil status, occupation, and
monthly family income and also through research information which includes the
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Chapter 1
The Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion
also known as TRAIN Law is the first package of the comprehensive tax reform program
December 19, 2017, which reduced personal income taxes but increased those on cars,
country’s new TRAIN law, which includes introduction of excise tax for Sweetened
Beverages starting from January 1, 2018. The legislation imposes new tax rates on
sweetened beverages, as well as new VAT rates for these and for other products. The
guidelines explain that SSBs products currently in the market will be initially classified
according to the Inventory List price as of December 31, 2017 on or before January 31,
2018 conducted by the BIR, with items introduced since then classified using the
Consumers will start to feel the impact of the tax reform law on sweetened
beverages two weeks after January 1, 2018 when the new excise tax rates took effect
(Cordero,2018).Under Package 1 of the Tax Reform, drinks using sugar and artificial
sweeteners will have an excise tax of Php6.00 per liter (approximately 14% increase in
price) while it is Php12.00 per liter (approximately 24% increase) for drinks that use high
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fructose corn syrup. For instance, the retail price of a one-liter bottle of Coke is projected
to increase to P43.00 from the current P31.00 due to an increase of P12.00. It will be
further increased by four percent (4%) each year thereafter. Exempted, however, from
this law are all kinds of milk, 3-in-1 coffee products, natural fruit and vegetable juices,
Department of Budget and Management Secretary Benjamin Diokno said the new
TRAIN law is expected to yield Php130 billion revenues from its first year of
implementation. It will steadily rise to as much as Php220 billion annually and will
generate close to Php1 trillion in revenues over a five-year period from 2018 to 2022
(PTV News-CD, 2018). On the other hand, expected tax will be collected from excise tax
coffers this year alone, and gradually increasing over the coming years. Department of
Finance (DOF) showed that based on the medium-term revenue program, excise tax from
SSBs is the fourth largest revenue contributor among excise taxes in the country. The
taxes that will be collected will fund the government’s projects on infrastructure and
SSBs “will help promote a healthier Philippines” since it discourages the public from
consuming sugar-sweetened beverages that boost their chances of being obese or have
diabetes or worsens the situation of those who already have the disease. “This is a
awareness of the harms of SSBs, and to help incentivize the industry to develop healthier
incidences of overweight, obesity, and diabetes worldwide, including in low and middle
increasing trend of overweight or obese Filipinos through the years and across age
Diabetes Foundation, there are around 3.5 million cases of diabetes in the Philippines. In
According to World Health Organization (WHO), evidence has shown that SSB
tax can reduce consumption of sugars and help prevent overweight, obesity and non-
Philippines, overweight and obesity rates have been steadily increasing and diabetes and
cardiovascular disease now cause 4 out every 10 deaths among Filipinos. With 87% of
Filipinos suffering from tooth decay, the reduction of sugars intake will also reduce the
risk. The revenue to be generated from the new tax reform also has the potential to be
Taxation of SSBs under TRAIN is a great step forward in protecting the health of
Filipinos. However, experience in other countries had shown biggest impact on the
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one (1) Mexican peso per liter (approximately 10% price increase based on 2013 prices in
Mexico) excise tax on non-alcoholic beverages with added sugar. It is observed that the
purchases of sugary drinks in Mexico dropped by 5.5% in the first year after the tax was
introduced and was followed by a 9.7% decline in the second year. In the short term, the
results for Mexico show that the tax on SSBs is generally passed on through increased
newly Tax Reform is to create an affirmative way of service for the benefit of its people,
it is inevitable that the buying decision of the consumers will be affected. The
implementation of the excise taxes under RA 10963 will apparently dissuade consumers
Law on consumers’ buying decision of Coke in Potrero, Malabon. The Act has just been
implemented and the response of consumers in buying behavior of coke are not yet clear
and know this is the main reason why the researchers chose the study.
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Preliminaries on taxation
Taxes are the lifeblood of government, these are funds used by the government to
finance basic social services that are vital to the lives of citizens and economic growth
such as education, healthcare as well as infrastructure. According to the book of
Philippine Laws on Transfer and Business Taxes edition 2013-2014 by Virgilio G
Litonjua, CPA and Lilian M. Litonjua, CPA , the two (2) out of nine (9) essential
characteristics of tax is to imposed to raise government revenues and for public purpose.
To characterize an effective tax system, a good tax system should meet five basic
conditions: fairness, adequacy, simplicity, transparency and administrative ease.
Although opinions about what makes a good tax system will vary, there is general
consensus that these five basic conditions should be maximized to the greatest extent
possible.
The governments collect taxes to support its objectives such as building roads,
schools, and better government salaries and improve government services. These factors
can help attracting more investors and jobs in the Philippines (Yanuaria, CPA, RFP,
2013).
The TRAIN law aims to make the current tax system simpler, fairer, and more
Package 1A of TRAIN
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Package 1 of the CTRP under TRAIN Act, was signed into law on December 19, 2017. It
reduced the personal income tax rates, but increased those on cars, tobacco, fuel and
sugar-sweetened beverages.
Thru Department of Finance, TRAIN repeals Section 35 of the National Internal Revenue
married, head of the family, with or without dependents, the taxpayer is exempted from
paying personal income tax (PIT) as long as he /she is earning less than P21,000 a month.
But because the individual income tax reform will lead to substantial revenue losses,
The reduction of individual income taxes must go hand in hand with increasing
the excise taxes on petroleum products, automobiles, tobacco, and alcohol as well as the
single, married, head of the family, with or without dependents, the taxpayer is exempted
from paying personal income tax (PIT) as long as he /she is earning less than P21,000 a
month.
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Consumers must brace for higher tax rates following the passage of the first tax-
reform package into law. On December 19, President Duterte signed into law the Tax
Reform for Acceleration and Inclusion (TRAIN) Law. The TRAIN law, or Republic Act
Seventy percent of the revenues will finance the administration’s “Build, Build,
Build” infrastructure program, while the remaining 30 percent will fund socio-economic
programs. Moreover, the law is expected to reduce personal income tax. However,
Payroll managers start adjusting their systems to reflect the new withholding tax
rates. Supermarkets, oil retailers, convenience stores, and even sidewalk vendors begin
drinks that took effect on January 1 this year, with the twin aims of raising revenue and
fighting obesity.
As cited in Department of Finance, the SSB excise tax will help promote a
healthier Philippines. Along with the Department of Health (DOH), DOF supports this as
part of a comprehensive health measure aimed to curb the consumption of SSBs and
address the worsening number of diabetes and obesity cases in the country, while raising
revenue for complementary health programs that address these problems. This is a
awareness of the harms of SSBs, and to help incentivize the industry to develop healthier
The World Health Organization says fiscal policies that cause the price of sugary
On the other hand, the Export Development Council (EDC) expresses its
reservation to the TRAIN Law and recognizes that the objective of this act is to promote
a healthy lifestyle among Filipinos. However, the implementation of the law might
hamper the growth of the beverage industry, local sugar farmers as well as fruit farmers
since it will experience a decline caused by lower demand of fruit juices and sugar. It is
noted that beverage is one of the key export sectors cited in the Philippine Export
Beverage firms, such as Coca-Cola FEMSA, the world's largest franchise bottler
of Coke products, have warned that taxing sweetened drinks could stoke inflation and
choices, habits, and attitudes. Accordingly, SSBs do not pose a health concern when
consumed normally.
According to a study, a tax of 1 centavo per ounce of beverage would increase the
cost of a 20-oz soft drink by 15% to 20%. The effect on consumption can be estimated
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through a price elasticity study (i.e., consumption shifts produced by the price). The price
elasticity for all soft drinks is in the range of −0.8 to −1.0. (Elasticity of −0.8 suggests
that for every 10% increase in price, there would be a decrease in consumption of 8%,
whereas elasticity of −1.0 suggests that for every 10% increase in price, there would be a
2009).
Package 1B of TRAIN
investors were the highlights of the second proposed package of the Comprehensive Tax
Reform Program (CTRP) that the Department of Finance (DOF) submitted to the House
proposes to gradually lower the income tax (CIT) rate from 30 to 25 percent, while
bound and transparent.“Through this tax reform package, the government would be able
to ensure that incentives granted to businesses generate jobs, stimulate the economy in
the countryside and promote research and development; contain sunset provisions so that
tax perks do not last forever and are reported, so the government can determine the
magnitude of their costs and benefits to the economy,” Chua said (Dalangin-Fernandez,
He said incentives enjoyed mostly by big businesses such as income tax holidays and
other perks with no time limits need to be corrected as it is costing the government over
Association of Southeast Asian Nations (ASEAN), the Philippines imposes the highest
CIT rate but is among those at the bottom in terms of collection efficiency, resulting in a
The Philippines currently imposes a CIT rate of 30 percent but with a tax collection
efficiency rate of only 12.3 percent, while Thailand’s CIT rate is only 20 percent but it
collects almost triple–a 30.5 percent efficiency–that represents 6.1 percent of its GDP.
Vietnam’s CIT rate is 25 percent but it collects even more with a 29.2 percent tax
efficiency rate representing 7.3 percent of GDP. Malaysia’s 24 percent CIT generates a
27.1 percent efficiency rate in terms of collecting taxes, which is 6.5 percent of GDP.
Chua pointed to the “flawed and outdated system” that provides tax incentives to
companies under 123 investment laws and 192 non-investment laws as the reasons for the
Under the Philippine tax code, all corporations, unless receiving fiscal incentives,
have to pay a regular CIT rate of 30 percent or a minimum CIT rate of 2 percent of gross
income beginning the fourth taxable year immediately following the year in which a
corporation commenced its business operations, when the minimum income tax is greater
than the regular tax. The optional standard deduction for corporations is 40 percent of
With respect to corporate income tax, the tax will be reduced from the current rate of
30% to 25%. This intends to make our corporate tax regime competitive vis-à-vis
revenues. Hence, the reduction of corporate income tax must be paired with the
Fiscal incentive rationalization is overdue. This reform will subject fiscal incentives
It has to be stressed though that increase in excise taxes and the rationalization of
fiscal incentives are not just about offsetting the losses arising from the individual and
corporate income tax reforms. The objective is not revenue neutrality but a significant
increase in tax effort so the government can have the resources to accelerate spending for
infrastructure and logistics, improve the quality of education, expand the coverage and
benefits of universal health care, and strengthen the systems to satisfy the requirements
arising from climate change and natural disasters. The government estimates that P600
billion, equivalent to three percent of gross domestic product (GDP), must be raised for
The TRAIN raises significant revenues to support the President’s priority social and
infrastructure programs, which will help realize his administration’s goal of reducing the
poverty rate from 21.6 to 14 percent by 2022. Some 70 percent of the incremental
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revenues will help fund the government’s infrastructure modernization program, while
Starting this year, the government expects to raise funds equivalent to about two-
thirds of the incremental revenues targeted under this tax reform law. The Congress has
committed to pass the rest of the TRAIN’s provisions representing the remaining one-
third of the targeted revenues in early 2018 to help us achieve our revenue and deficit
targets.
With the people’s support and understanding, all this reforms will result in more and
better jobs, lower prices, and a brighter future for every Filipino.
organizations select, buy, use and dispose of goods, services, ideas or experiences to
by 1929.Now people in more than 200 countries drink 1.9 billion servings every
day, according to The Coca-Cola Company. Having a product people enjoy is far from
the only thing needed to become one of the world's most valuable companies. Coca-Cola
used marketing strategies well, which made it as recognizable throughout the world
The international brand Coca-Cola, the biggest soft drinks and beverage company
one of the most valuable and well-known brand in the world. Although the company is a
manufacture of beverage, it business has penetrated in every walk of life. The brand of
and its business has covered more than 200 countries in the world, there are still lots of
famous brand Coca-Cola has built, the company has continued to deliver its brand value
to customers in many factors. Before customers make their purchase decision, they
collect and identify information they needed. Senses delivered by enterprises result in the
smell, touch of a product, and then choose their preferring one. These senses and
information finally create sensation and perception in the mind of customers. Sensation
and perception create basic acceptation of a brand, and learning and memory enhanced
the acceptance. That how the psychological influences a brand, or a product, create to
customers. Thoughts and decisions of customers may be affected and changed by the
psychological factors and finally the whole customer behaviors are different (Iacobucci,
2014).
While customers decide whether to buy a brand, or a product, and whether the
brand worth a repeatedly purchase, their attitudes and decision making is very important.
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Attitudes toward a brand are the results of psychological perception and memory. A
differences between the brand and preferences of customers. For example, carbonated
drinks of Coca-Cola may be well welcomed by the young aged from 16 to 28, for
children, middle age and old people, the carbonated drinks are less attractive (Coca-
A consumer is a person who spots a need or desire, and then looks for the best
way to satisfy his or her need either by purchase or acquisition (Solomon et al, 2010).
experiences to satisfy needs or desires". Customer retention is vital these days and
organizations are looking for the best way to please and satisfy the interest of their
consumers.
Theoretical Framework
To identify the impact of TRAIN Law on consumers buying decision we use the
framework below:
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The factors that will affect the consumers’ buying decision for sweet sweetened
beverages are the economic factors, personal factors, cultural factors, psychological,
and social factors. (Introduction to Marketing Kathmandu: Asmita Books Publishers and
personal and psychological factors. Consumer behavior studies individuals and groups
when they select, purchase, use and dispose products, ideas, services or experiences.
Consumers seek items to satisfy their basic needs and desires. Consumer behavior is
much more than studying what consumers buy. It attempts to understand how the
decision-making process goes and how it affects consumer’s buying behavior. (Solomon
2004, pp. 6-8.) Marketers study consumers buying patterns to solve where they buy, what
they buy and why they buy. However, why consumers buy a specific product is not easy
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to solve because the answer is locked deep within the consumer’s mind. (Kardes et al.
individual and organizational consumers. Individual consumers try to satisfy their own
needs and wants by purchasing for themselves or satisfy the need of others by buying for
them. These individual consumers can come from different backgrounds, ages and life
personal and psychological factors. Consumer behavior is a part of human behavior and
by studying previous buying decision, marketers can estimate how consumers might
160.) The following chapters focus on the social, personal, psychological and economic
Economic Impact:
Economic factors play an important role in consumer buying decision. It also directly
they cannot make decision to buy goods or services even if they like very much. But, if
they have purchasing power, they can take prompt decision to buy goods or services they
like. Income level and spending attitude etc. are the economic factors to determine
Mexico is the world’s leading consumer of soft drinks at 163 liters per capita per year. A
study conducted by the United Nations Food and Agriculture Organization (FAO) in July
2013 revealed that Mexico has the highest adult obesity rate among the member countries
with added sugar.15 It is observed that the purchases of sugary drinks in Mexico dropped
by 5.5% in the first year after the tax was introduced and was followed by a 9.7% decline
in the second year. In the short term, the results for Mexico show that the tax on SSBs is
generally passed on through increased prices to consumers, which reduced the purchase
Additional take-home pay, compared to the previous Tax policies. The Package 1 of the
CTRP under TRAIN Act, was signed into law on December 19, 2017. It reduced the
Thru Department of Finance, TRAIN repeals Section 35 of the National Internal Revenue
married, head of the family, with or without dependents, the taxpayer is exempted from
paying personal income tax (PIT) as long as he /she is earning less than P21,000 a month.
The additional take-home pay will help many Filipinos to re-budget their daily expenses.
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Personal Factor:
When the income of the consumer increases the buying capacity of the consumer also
increases. In such stage, the consumer will give priority to the luxurious goods and
services. But if the income of the consumer is lower than the consumer will give priority
Income of all consumers’ cannot be same. Some have more and others have low income
level. If the income of consumers is high, purchasing power and readiness become high,
otherwise their purchasing power and readiness become low. TRAIN law is not focused
on the possible downfall of SSB’s industries that also affect the possible labor
unemployment to those who employed in SSBs companies that the labors are also
consumers. The studies conducted in UK pertaining to the impact of the softdrinks levy
on the industry’s regional employment. London is likely to experience the largest fall in
soft drinks related employment, with over 300 jobs lost in the on-trade element alone.
Similarly, Scotland’s soft drinks manufacturing base could lose almost 130 jobs (Oxford
Economics 2016).
occupation, and lifestyle. Consumer’s change during their life and buying of products
alter depending on age and stage of life. Age related factors are such as taste in food,
clothing, recreation and furniture. Moreover, environment, values, lifestyle, hobbies and
consumer habits evolve during lifetime. Family life stages change purchasing behavior
and productselection. Traditionally a family life cycle included only young singles and
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nontraditional stages such as unmarried couples, childless couples, same sex couples,
single parents and singles marrying later in life. (Kotler&Armstrong 2010, p. 170.) It can
be assumed that consumer’s taste can change during lifetime and has influence on buying
buying behavior. The income level affects what consumers can afford and the perspective
towards money. People, who share similar occupations, tend to have similar taste in
music, clothing and leisure activities. They usually socialize with each other, and share
the same kind of values and ideas. (Solomon 2004, p. 12.) Individuals from lower income
groups are probably more interested in buying products that are necessary for survival
Consumer’s life style tells how the person lives and spends money. It is combined from
earlier experiences, current situation and congenital characteristics. The product choices
that consumers make are related to their lifestyle. An individual’s lifestyle consists of
different life style dimensions. (Khan 2006, p. 18.) These dimensions are:
1. Activities describe how consumers spends their time, e.g. work, hobbies or
vacations.
2. Interests are consumers’ preferences and priorities e.g. family, home or food.
3. Opinions tell how consumers feel about different issues, e.g. themselves,
These life style dimensions express a person’s pattern of living. Lifestyle will influence
Psychological factors:
A buyer’s choices are also influenced by four psychological factors, i.e. motivation,
A consumer is an individual who has different kind of needs. These needs can be
biological like thirst or psychological arising from the need of recognition or belonging.
A need can be aroused to a sufficient level of intensity when it alters a motive. A motive
is basically a need that drives a person to seek satisfaction. Abraham Maslow is probably
the most know psychologist who has examined these human needs. He sought to explain
why humans are driven by different needs at different times. (Kotler&Armstrong 2010, p.
173.) Figure 3 shows Maslow’s hierarchy of needs from the most pressing at the bottom
and the least pressing at the top. The basic rule is to satisfy first the basic need before
proceeding up the ladder. When that need has been fulfilled, it stops being a motivator
and a person focuses on the next most important need. Maslow’s needs are:
A person acts according to his or her perception of the situation. Each person receives
thousands of sensory stimuli like light, color, sound, smell, taste and texture per day.
Perception is the process through which these sensations are selected, organized and
interpret to form meaningful picture of the world. People have a possibility to form
different perceptions of the same stimuli due to three perceptual processes: selective
attention, selective distortion and selective retention. At the selective attention process an
individual focuses only on a few stimulus that he is exposed. Consumers might neglect
many stimuli in the environment and only focus on those related to their current need. For
example, a consumer feels thirsty and he/she is looking for some soft drink. The
marketing team of Coca-Cola is very efficient in recognizing the needs of the consumers.
33
So, in their marketing activities, this team try to presents the solutions of the desired
Selective distortion describes how people will interpret information in the way that it
supports what they already believe. Every individual have different perception based on
own experience, beliefs and attitudes. Selective distortion leads people to situations that
are compatible with their beliefs and values. For example for brands, the message that
brands communicate will never be the same among different consumers. When people
are exposed to a huge amount of information and stimuli, they are not able to retain all of
it. Selective retention means what person will retain from particular stimuli or situation.
This can be seen when consumers remember good points about brand they favor and
This is known as incidental learning. People can learn all the time.
new stimuli and situations. They can receive feedback that allows them to alter
behavior when finding themselves in the same kind of situation than before.
individual has someone around influencing their buying decisions. The important
social factors are: reference groups, family, role and status. (Perreau, 2014.)
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Every consumer is an individual, but still belong to a group. The group to which a
classification. The second group type is a reference group. The reference group
influences the self-image of consumers and consumer’s behavior. The reference group
habits. Usually there are many smaller reference groups, which are formed by family,
close friends, neighbors, work group or other people that consumers associate with. The
groups to which a consumer does not belong yet can also influence. These aspirational
groups are groups where a consumer aspires to belong and wants to be part in the future.
forms the environment for an individual to acquire values, develop and shape personality.
This environment offers the possibility to develop attitudes and opinions towards several
subjects such as social relations, society etc. A family creates first perceptions about
brands or products and consumer habits. (Kotler&Armstrong 2010, p. 169; Khan 2006, p.
68.) For example, the consumers who have created brand perceptions when they were
young, can carry out these same brand selections in the adult life without even
Individuals play many different roles in their lives. Each role consists of activities and
attitudes that are expected from an individual to perform according to the persons around
35
him. (Kotler&Armstrong 2010, p. 170.) Social status reflects the position that individuals
have in social groups based on such things as money and wealth, education or
occupation. In many societies status is important and people want the admiration of
others. Social status can be acquired by being successful in life or being born into money.
Product and brand selection often reflects the social role and status. (Wright 200, p. 360.)
Conceptual Framework
As shown in the initial discussion above, the flow of the research process began
Assessment and
Survey and Gather Data Analysis of Results of Interpretation of result, to
on the Impact of TRAIN Evaluation and Factors have conclusion about the
Law on Consumers’ Determining consumers’ buying decision
Buying Decision Consumers’ Buying of SSBs
Decision
This study aimed to determine the impact of TRAIN law on consumer’s buying
behavior of Coke in Potrero, Malabon after facing with such a tax. Specifically, this
a.) Age
b.) Gender
d.) Occupation
b.) Do you drink coke products BEFORE and AFTER implementation of TRAIN
Law?
3. How the TRAIN Law implementations affect the consumer buying behavior of
Coke in PotreroMalabon?
a.) Are you still buying Coke AFTER implementation of TRAIN Law?
carbonated drinks?
c.) Why do you still buy Coke despite the implementation of TRAIN Law?
Null Hypotheses:
The objective of this study was to explore the impact of newly-implemented TRAIN Law
using scripts guided by the Factors Determining Consumer Buying Decision as well as to
explore the role that habit plays in Coke consumption. This study examined the potential
impact of the TRAIN in consumer’s buying Decision of Coke that may occur when the
The scope of the study is limited only on the impact of consumers’ buying
decision of carbonated drink Coke when faced with taxes. This is to know the buying
decision of the consumers towards the tax increase under newly-implemented TRAIN
Law.
This research will be held only at Potrero, Malabon and three hundred ninety-six
(396) different respondents will be choose to participate in terms of answering the set of
The study is very important because consumers were know a lot about purchasing
consumers as well as factors affecting the consumers buying behavior, after knowing
these consumers were able to control consumers’ purchasing decision behavior especially
in their business, not only this but also business owners were know the needs and wants
Definitions of Terms
Attitudes: a person’s feelings, both positive and negative, about the behavior in question
(Ajzen, 2006)
Webster, 1828)
Consumer: a person who purchases goods and services for personal use.
39
Consumer Buying Decision: is the study of individuals, groups, or organizations and all
the activities associated with the purchase, use and disposal of goods and services,
including the consumer's emotional, mental and behavioural responses that precede or
Economic factors: are the fundamental data about the market and economy taken into
https://www.myaccountingcourse.com/accounting-dictionary/economic-factors)
Excise Tax: a tax on goods or services that occurs before the time of sale (Internal
Sugar Sweetened Beverage: “any beverage with added sugar or other caloric sweeteners
such as high fructose corn syrup. Examples include soda, sports drinks, fruit drinks, teas,
flavored/enhanced waters, and energy drinks” (Friedman & Brownell, 2012, p.2)
Tax reform: is the process of changing the way taxes are collected or managed by the
Chapter 2
40
Method
This chapter presents the method that will be used in the study together with the
Research Locale
This study will be held only at Brgy. Potrero, Malabon City and three hundred
the set of questionnaire for gathering information purposes. Taken from the PSA Census
The distribution of the questionnaires was based on the proportion of the sample
Research Procedures
This is to study the different research instrument that will be used to be successful
this study. By this method we can assure that we produce a significantly useful data to
N = ___ N ______
1+ Ne
e =error margin of 5%
41
N= 42,768
1+42,768(.05)2
= 42,768
107.92
N = 396
To obtain necessary information regarding the study, the researchers did the
following methods:
1. Internet Research Method. The researchers utilized the use of the internet to
the study.
gathering important information from one or more persons. These were given
to the individuals who had a direct bearing on the study in order to satisfy the
researchers’ goals, and that was to get and measure the opinions of the
Data was subjected to statistical treatment using T-test is used to compare two
different set of values. It is generally performed on a small set of data. T-test is generally
applied to normal distribution which has a small set of values. This test compares the
mean of two samples. T-test uses means and standard deviations of two samples to make
where:
where:
x = Values given
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x = Mean
The researchers also used F-test wherein it is a method to compare variance of two
different sets of values. F-test is applied on the F distribution. For calculating F-values,
first find the mean of two given observations and then calculate their variance. F-test
value is expressed as the ratio of variances of two observations. The comparison between
the variances of two sets of data can lead to many predictions. The formula for F-test is
given below:
where:
σ2 = Variance
3.51-4.50 A Agree
44
2.51-3.50 N Neutral
1.51-2.50 D Disagree
Appendix A
Survey Questionnaire
Dear Respondent:
Thank you for taking part in this survey. It is understood that you BUY the carbonated
drink Coke. Rest assured that data obtained will be kept strictly confidential and will be used
only for academic purposes. You may, however, choose to withdraw from the study anytime
without penalty.
RESPONDENT’S PROFILE
Direction: Put a check to indicate the level of agreement and disagreement you have with
each of these statements using this scale:
References
GENERAL FORM:
Sugovic, M. (2014). Tax framing and consumer behavior: The case of the soda
tax (Order No. 3645907). Available from ProQuest Dissertations & Theses A&I;
47
Fantuzzi, K. (2008). Carbonated soft drink consumption: Implications for obesity policy
(Order No. 3313272). Available from ProQuest Dissertations & Theses A&I; ProQuest
Dissertations & Theses Global. (304631028). Retrieved from
https://search.proquest.com/docview/304631028?accountid=28547
2
Imamura, F., O’Connor, L., Ye, Z., Mursu, J., Hayashino, Y., Bhupathiraju, S., and N.
Forouhi (2015). Consumption of sugar sweetened beverages, artificially sweetened
beverages, and fruit juice and incidence of type 2 diabetes: systematic review, meta-
analysis, and estimation of population attributable fraction. BMJ 2015; 351 :h3576.
Dr. Herbosa, T. (2017). Is tax on volume-based, sugar-sweetened drinks good for our
nutrition?
https://www.rappler.com/thought-leaders/181632-volume-based-sugar-sweetened-
beverage-tax-good-nutrition
http://analysisproject.blogspot.com/2014/01/factors-determining-consumer-
buying.htmlRetrieved by:Lira Dalangin-Fernandez, InterAksyon (2018). DOF submits to
House 2nd tax reform package seeking to lower corporate income tax
http://www.interaksyon.com/dof-submits-to-house-2nd-tax-reform-package-seeking-to-
lower-corporate-income-tax/
https://www.kullabs.com/classes/subjects/units/lessons/notes/note-detail/5965