Olongapo City

Gordon College
College of Hospitality and Tourism Management
Bachelor of Science in Hotel and Restaurant
Management

In-partial Fulfillment of the Subject BSS 401

(Methods of Research)

“Influence of Consumer’s Buying Behavior in patronizing Milk Tea Shops of

the Olongapeño”

Chapter I & II

Submitted by:

Callanta, Raiza Joy

Gayacao, Joshua
Lacson, Constant
Sagum, Indira Franczesca

Submitted to:

Mr. Mark Alvin V. Lazaro

 Chapter 1

o Introduction

o Conceptual Framework

o Statement of the Problem

o Hypotheses

o Scope and Delimitation

o Significance of the Study

o Definition of terms

Chapter 2

o Research Design

o Populations and Sample

o Locale of the Study

o Research Instrument

o Gathering Data

o Validity of the Instrument

o Statistical Treatment of Data

 Chapter I

THE PROBLEM AND ITS BACKROUND

Introduction

Milk Tea were the most popular beverages for millennial not only to

them but also to the different bracket of age, gender and status in life.

Today, there are so many Milk Tea Shops that are keep on popping-up on

the market, they offer different varies of flavors and prices according on

what the customer’s prefer. Before this megatrend in Milk Tea or some

called it Boba Tea before it conquered the part of the world. According to

Hailey Willard of the food website The Daily Meal (est. 2013) it is originated

in Taichung, Taiwan in the 1980’s and a lot of companies claim to be the

creator of this drink but there is one Taiwanese man named Liu Han Chie of

the Chun Shui Tang Teahouse in Taichung, Taiwan, claims that in the early

1980’s he experimented with cold milk tea by adding fruit, syrup, candied

yams, and tapioca bubbles. When year 1990’s came the drink became

popular in the most parts of East and Southeast Asia and from then on it has

spread in all over the world.

According to Jasper Castro of the Yummy magazine (est. March

2012) it was 2008 when Milk Tea came to our shores and before this

beverage came to our country we, the Filipino knows what the taste of a

tea is and most of us brew our own salabat or ginger tea, in fact Milk Tea
has always been there even before the craze. Some food establishment

selling it already to the market. It was December 9, 2008 when Juliet D.

Herrera-Chen and Peter L. Chen when they establish one of the popular

Milk Tea Shop today, the “Serenitea”. Peter and Juliet who spent some time

in Taiwan, where milk tea was already trending full-swing, thought that

Filipino were going to want in on it too, they are right. Until then, so many

Milk tea shops are coming out on the market that offer their owned flavors

and best sellers that can compete to the growing invasion of Milk Tea shops

all over the country of the Philippines.

The consumer’s behavior studies how individuals, groups, and

organization select, buy, use and dispose goods, services, ideas, or

experienced to satisfy their needs and desires. They may respond to

influences that change their mind at the last minute. Nevertheless,

marketers must study their target customer’s wants, perceptions,

preferences and shopping and buying behavior. (Philip Kotler.et.1999).

Buyer characteristics include four major factors: cultural, social, personal,

and psychological factors. Cultural factor the broadest and deepest

influence on consumer behavior contained culture and subculture. It

includes set of values, perception, preferences and behaviors that a person

learns from family and other key institution. Social factors also influence the

consumer’s behavior. A persons reference group—family, friends, social

organizations, and professional associations strongly affect the product.

Also, psychological factors like motivation, perception, attribution, learning

and beliefs and attitudes that provide a different insight in understanding

buyer’s mind. Last, personal factor- age, occupation, education, income.

Thus, marketers must understand such different and adjust their product

accordingly to the demand of the customer so that they become a patron

in the business. ( Natasha Lee and Therese Vega.et.2011)

Philippines are very adoptive country for the foreign food from

different country all over the world it can easily adjust to the taste of the

foreign food to be a more Filipino taste like that will be enjoy by many fellow

countryman. The researchers of this study observe that even in Olongapo

City this popular beverage are all over the street. Every corner of the town

has a Milk Tea shop/s offering wide variety of flavors varied to the prices for

different type of person. This research aims to identify that consumer’s

buying behavior influences the Olongapeno to patronize Milk Tea Shops

that are all over corner of the city. When in fact there a lot of alleged issues

link towards to the beverage that they offer specifically Milk tea.
 Conceptual Framework

The researchers of this research study aims to discover that

consumer’s buying behavior can influence the Olongapeño to patronize

Milk Tea Shops in terms of the personal influences, cultural influences, and

social influences, psychological influences. The researchers used survey

questionnaire as the means of primary sources of gathering data and

facts about the topic of the study. The survey questionnaire were given to

100 person and measured by using statistic percentage and weighted

mean.

Input Process Output

1. What are the profile of

the Respondents in terms
of:
1.1 Age 1. Survey through
1.2 Sex questionnaires
1.3 Occupation
2. Distribute survey  To identify
2. What are the factors questionnaire to the customer’s
that influence the respondents. behavior can
consumer’s buying influences
behavior in terms: 3. Analyze and
2.1 Cultural influence Olongapeño to
interpret the given
2.2 Social influence patronize Milk
data on the answered
2.3 Psychological influence Tea shops.
questionnaire
3. Is there any significant
relationship between the
profile of the respondents
and the factors influence
consumer’s buying
behavior?

4. What are the

implication of the study to
the community of
Olongapo City?
Statement of the Problem

The researchers of this study aims to determine that consumer’s

buying behavior influences the people of the Olongapo to patronize the

Milk Tea Shops. Thus, the study aims to seek and answer the following:

1. What are the profile of the Respondents in terms of:

1.1 Age;

1.2 Sex; and

1.3 Occupation?

2. What are the factors that influence the consumer’s buying behavior in

terms of:

2.1 Cultural influence;

2.2 Social influence; and

2.3 Psychological influence?

3. Is there any significant relationship between the profile of the

respondents and the factors influence consumer’s buying behavior?

4. What are the implication of the study to the community of Olongapo

City?
Hypotheses

The hypotheses of this research is that there is a significant

relationship between the profiles of the respondents to the influence of

patronizing Milk Shops in Olongapo City.

Scope and Delimitation

The scope of this study is only focused on the factors influencing

consumer’s buying behavior in the trending beverage which is Milk tea. This

measured in terms of personal influence, social influence, and cultural

influence, psychological influence of the consumer. This study only

discussed patronizing Milk Tea Shops offering wide variety of Milk Tea.

The researchers limited the respondents to 100 person which they will

answer the given questionnaire that will be analyzing and interpret after

using statistic percentage and weighted mean.

Significance of the Study

This study will be essential and beneficial to the following:

Milk Tea Shop’s owner- this study can help them to select their target

market and where they can put their shop wherein their target market can

easily access their business or the product itself.

Young aspiring Entrepreneur- this study will help them on what are the

things that should be consider in putting up business. The four major factors

of customer’s behavior are applicable to any business.

Customer/ Consumer- this study will make them understand why they are

patronizing a certain product that are on the market.

Future Researcher- this research study can be their guide on their owned

research and they can help to improve this study.

Definition of Terms

For the better understanding of the word this can be help:

Adoptive- the act or process beginning to use something new or different.

Behavior- the response of an individual, group, or species to its environment

Customer Behavior- is the study of how individual customer, groups or

organization select, buy, use, and dispose ideas, goods, and services to

satisfy their needs and wants , It refers to the actions of the consumers in the

marketplace and the underlying motives for those action.

Customer- someone that purchase a commodity/goods and services

Cultural Influence- interact with other parameters of diversity such as race,

education, socioeconomics and gender to influence the risk of elderly

abuse.

Entrepreneur- a person who starts a business and is willing to risk loss in order

to make money.

Influence- the power to change or affect someone or something.

Milk Tea/ Boba Tea- is an iced, sweet, tea drink that contains tapioca pearl.

It comes in many flavor and is generally made in two form; a fruity and iced

tea but what really defines this drink is “bubbles” or the round chewy

marble-sized tapioca pearl.

Social Influence- refers to the way in which individuals change their

behavior to meet the demands of a social environment. Typically social

influence result from a specific action, command, or request, but people

also alter their attitudes and behaviors in response to what they perceive

other might do or think.

Patronize- to be a frequent or regular customer or user of a place, product

and/or services.

Personal Influence- greatly influenced by his age, i.e. the life cycle stage in

which he falls. The people buy different in different stages of the life cycle.

Consumer buying behavior id influenced by his lifestyle.

Psychological Influence- the level of motivation influences the buying

consumers and perception towards a particular product and the brand

also influences his buying decision

 Chapter II

RESEARCH METHODLOGY

Research Design

The researchers of this study used descriptive research. Define by Adi

Bhat a global-VP sales and marketing at QuestionPro. Descriptive research

describes the characteristics of the population or phenomenon that is

being studied. This methodology focuses more on the “what” of the

research subject. In other words, descriptive research primarily focuses on

describing the nature of a demographic segment without focusing on

“why” a certain phenomenon occurs. Descriptive research is a quantitative

research method that attempts to collect quantifiable information to be

used for statistical analysis of the population sample.

The researchers are going to distribute the survey within Olongapo

City premises particularly in schools, market, Milk Tea shops, etc. This will be

the way of the researchers to gather data and information of what are the

consumer’s buying behavior influencing the people of the Olongapo to

patronize Milk Tea Shop.

Locale of the Study

Olongapo, officially the City of Olongapo (Lungsod ng Olongapo)

or simply as Olongapo City, is a 1st class highly urbanized city in Central

Luzon (Region III) Philippines. Located in the province of Zambales but

governed independently from province it has a population of 233,040

people according to the 2015 census

Population and Sample

The researchers of this study selected convenient sampling with no

particular bracket of age occupation and life style, to answer the given

survey questionnaire. The researchers are going distribute the survey within

Olongapo City premises to be particular in the, schools, market, Milk Tea

Shops and etc. This will be the way of the researchers to gather data and

information of why the Olongapeño patronize Milk Tea and what are the

factors that can be influence to buy or purchase the said beverage.

Research Instrument

The researchers of the study used the quantitative research

instrument wherein they provided a survey questionnaire that are going to

answer by the respondents (convenient sampling). Instructions and

purpose of the study were part of the survey questionnaire to guide the

respondents. The first part of the survey questionnaire were the profile of

the respondents in terms of their age, sex, occupation. The second part of

the survey questionnaire were the corresponding verbal interpretation of

the number scale from 5- Strongly Agree, 4- Agree, 3- Undecided, 2-

Disagree, and 1- Strongly Disagree. The last part of the survey were the

influence of consumer’s behavior such as cultural influence, social

influence, psychological influence and their indicators.

Gathering Data

After selecting and finalizing the tools that going to use to gather

data and information by the researchers. They going to distribute it to the

respondents via convenient sampling, all the gathered data will be

tabulated and tallied the survey by researchers using a specific formula in

statistic (percentage and mean) that will be interpret in a more

understandable way.

The researchers made a letter of approval to conduct a research

study within the Olongapo City premises that will be shown on the

establishment that we will going distribute the survey questionnaire. The

assessment of the result of the given survey questionnaire will help the

researchers to identify what are the factors that influence a

consumer/customer to patronize the trend of drinking Milk Tea.

Statistical Treatment of Data

The data was analyzed through the application of descriptive

statistic using T-test. The researchers used this following statistical treatment

to come up with an organized result. This method applied to the first part of

the survey up to the last part of the survey questionnaire.

 Olongapo City
Gordon College
College of Hospitality and Tourism Management
Bachelor of Science in Hotel and Restaurant
Management

SURVEY QUESTIONNAIRE

Dear Respondents, We are students from Gordon College, Studying Bachelor of science in
Hotel and Restaurant Management (4th year student). The undersigned student of Gordon
college have chosen you as one of the respondents to their study entitled “Influence of
consumers buying behavior in patronizing Milk tea shop in Olongapo City” Rest assured that
all the gathered data will be strictly dealt with utmost confidentiality. Please answer this
questionnaire truthfully and objectively as possible. Thank you very much for your positive
response.

Part I. Profile of the Respondents

1.1 Age

1.2 Sex

1.3 Occupation

Part II. Your options are listed below with corresponding verbal

interpretation.

Number Scale Verbal Interpretation

5 ….. …… …... Strongly Agree

4 ….. …… …... Agree

3 ….. …… …... Undecided

2 ….. …… …... Disagree

1 ….. …… …... Strongly Disagree

Directions: Please rate the statement based on the influence and by using
a five point rating scale. Kindly check the box corresponding to the
number code found below.
1. Cultural influence:

1.1 Time in Drinking Milk tea 5 4 3 2 1

Breakfast

Lunch

Snack

Dinner

Late night snack

1.2 Kind of Preferred tea 5 4 3 2 1

Black tea

Red tea

Green tea

White tea

Yellow tea
2. Social influence:

2.1 Reference of group on Milk tea 5 4 3 2 1

Friends / Peers

Family

Co-worker

Schoolmates

Neighbors

2.2 Companion when drinking Milk tea 5 4 3 2 1

Friends / Peers

Officemates

Family

Schoolmates

Neighbors
3. Psychological Influence:

3.1 Reasons that influence drinking Milk tea 5 4 3 2 1

Social Occasion

For Refreshment

It taste good

Satisfies basic thirst and is filling

Trending beverage

3.2 Satisfaction with the patronized 5 4 3 2 1

preferred Milk tea

Flavor

Varieties

Price

Nutritional value

Visual Packaging

Serving size