Professional Documents
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Group 6 - Research
Group 6 - Research
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FUNDAMENTAL DETERMINANTS INFLUENCING BUSINESS
PURCHASING BEHAVIOR
CJ Marie C. Cadenas
Chapter 1
This chapter presents the overview of the study and consists of five parts,
namely: Background and Theoretical Framework of the Study, Statement of the Problem
and Hypotheses, Significance of the Study, Definition of Terms, and Delimitation of the
Study.
Part One, Background and Theoretical Framework of the Study, presents a brief
rationale for the underlying reasons for conducting this study, as well as the theories
Part Two, Statement of the Problem and Hypotheses, states the general
statement of the problem, the specific questions of the study, and the hypotheses.
Part Three, Significance of the Study, identifies who will benefit from the study
and the manner by which they may be able to benefit from the findings.
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
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Part Four, Definition of Terms, defines conceptually and operationally the
Part Five, Delimitation of the Study, presents the scope and delimitation of the
study.
Coffee is one of the most widely consumed beverages in the world. In 2021 and
2022, nearly 176 million 60-kilogram bags of coffee were consumed worldwide, a slight
increase from almost 167 million bags in the previous year. The coffee industry is
regularly coming up with innovative new methods for brewing coffee and serving it.
(Statista, 2023).
Coffee is also fast becoming the beverage of choice among Filipinos. The
Philippines, in fact, is reported to be the second largest consumer of coffee in Asia (next
only to Japan), with 80 percent of Filipinos drinking an average of 2.5 cups per day. The
total coffee consumed in the Philippines in 2020 and 2021 was about 3.3 million 60-
kilogram bags. This reflects a long-term increase in coffee consumption over the years
(Statista, 2023).
Due to the growing demand and consumption of coffee in the Philippines, the
number of coffee shops built in cities and towns has grown rapidly offering various
flavors of coffee from hot to iced coffee. Coffee is becoming a popular drink not just for
adults but most especially for students. According to a study published by the National
Library of Medicine as cited by MacDonell (2024), it was found that 92% of college
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Coffee shops in university campuses are often popular gathering spots for
relaxing, and enjoying a variety of beverages and snacks. In the Philippines, institutions
like West Visayas State University offer a range of coffee options, from traditional
Filipino brews like barako to international favorites such as espresso, latte, and
cappuccino. They also provide light snacks to cater different tastes and preferences that
are compatible with coffee. Coffee shops in universities also often serve as venues for
the businesses sector. Previous research has explored various factors that influence
found that price, product, service quality, brand image, product quality, and physical
hand, according to Himawan and Rahadi (2020), the significant factors affecting
consumers' coffee purchasing behavior include taste, product design, ambiance, brand
Administration students. This study aims to address this gap by exploring the
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purchasing behavior based on the five identified factors such as taste, price, ambiance,
students provides valuable insights into consumer behavior within this specific
influencing their purchasing behavior, businesses can tailor their marketing efforts,
product offerings, and store experiences to better meet the needs and preferences of
customers.
The study draws upon the Theory of Planned Behavior (TPB) by Ajzen (1991).
and place. It posits that individual behavior is driven by behavior intentions, where
behavior, subjective norms, and perceived behavioral control. Attitude toward behavior
refers to the degree to which a person has positive or negative feelings of the behavior
Subjective Norm refers to the belief about whether significant others think he or she will
the study. It shows the relationship among the antecedent, independent, and dependent
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
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variables. The antecedent variables, including personal factors such as sex, age, year
level, course major, and monthly family income, serve as personal indicators that may
the coffee purchasing decisions, such as taste, product design, ambiance, location
accessibility, and price, which are expected to impact consumers' decisions. The
behavior, is the main focus of the study, which may be influenced by the antecedent
VARIABLE
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
Fundamental
Personal Factors:
Determinants:
Sex Business Administration
Taste
Students’
Age Coffee Purchasing
Product
Behavior
Year Level design
Ambiance
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group and classified according to sex, age, year level, course major, and family
income?
Behavior when classified according to sex, age, year level, course major, and
family income?
Behavior when classified according to sex, age, year level, course major, and
family income?
based on the five identified factors: taste, price, ambiance, location accessibility, and
product design.
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Coffee Shop Owners. The study findings can provide coffee shop owners a
valuable insight into the preferences and motivations driving coffee purchasing decisions
among students. Adjust menu offerings, pricing strategies, and store atmospheres to
Potential Coffee Shop Owners. This study offers insights into the preferences
and behaviors of potential customers, helping aspiring coffee shop owners tailor their
business plans to meet the needs of their target market. By understanding the factors
influencing coffee purchasing behavior among students, future café proprietors can
make informed decisions regarding menu offerings, pricing strategies, and store
WVSU COOP. The findings of the study may benefit the WVSU Cooperative (WVSU
Administration students regarding coffee purchasing. This information can inform the
cooperative's decisions regarding their pricing strategies, and marketing efforts targeted
at this student demographic. Understanding the factors that influence students' coffee
purchasing behaviors can help WVSU COOP create a more appealing and competitive
Students. This study will give individuals a deeper understanding of the factors
influencing their own purchasing behaviors as well as those of their peers, which can be
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Future Researchers. The study may pave the way for further research on
consumer behavior within the coffee industry or other consumer contexts. Provide a
basis for exploring additional factors, expanding the scope of analysis, or conducting
Definition of Terms
administration. Students who would like to learn the day-to-day operations of running a
University and who will serve as the target respondents of the study.
and households who buy coffee products for personal consumption that align to their
As used in this study, the term coffee purchasing behavior refers to the process
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Fundamental Determinants. This refers to the core factors or variables that
determinants are considered fundamental because they have a profound and direct
studied. Fundamental determinants can vary depending on the context, but they often
represent the underlying principles or key drivers that play a crucial role in
As used in this study, fundamental determinants are the key factors among taste
preferences, pricing, location accessibility, ambiance, and product design that have the
behaviors.
behaviors.
The study aims to determine which of the five identified factors has the most
accessibility, and product design; the dependent variables are coffee purchasing
decisions. In addition to this, the participants will be grouped according to their personal
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
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factors specifically sex, year level, monthly family income. The respondents of the study
were the Business Administration students enrolled at West Visayas State University.
The sample size of the participants was determined using the Slovin’s formula and
This study will adapt a survey research design, a quantitative type of research
standard deviation, rank, t-test, and ANOVA will be used to statistically analyze the
collected data.
Chapter 2
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This chapter primarily outlines various studies and other researches from both
local and foreign literatures which have significant bearings on the variables included in
this study. This chapter contains the following topics: coffee purchasing behavior, taste,
marketing and behavioral science. Noted scholars such as Solomon (2006) and Blackwell
et al. (2001) have emphasized the complexity of customer purchase behavior, making it
behavior involves the examination of the psychological, social, and physical actions
individuals undertake when they engage in buying, using, and disposing of products,
According to Solomon (2006) and Blackwell et al. (2001), various factors shape
and influence consumer behavior. One such factor is the role of family, where
individuals tend to seek the input and influence of family members on their purchasing
decisions. Additionally, friends, reference groups, and wider societal influences also play
a significant role in shaping consumer behavior. These external influences can impact an
Moreover, consumer behavior theory seeks to explore and identify the different
explain the intricate relationships between these variables and their impact on consumer
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behavior theory aims to specify cause-and-effect outcomes, shedding light on why
consumers make certain choices and how they are influenced by different variables
Taste
Taste is crucial for the sensory evaluation of food. This sense allows the
detection of essential nutrients and toxic compounds. Human beings are able to
discriminate five primary different taste qualities: sweet, umami (the taste of amino
acids), bitter, salty, and sour. Tasting compounds are remarkably diverse chemically.
They activate specialized detectors expressed in the oral cavity (Briand & Salles, 2016).
Sensory pleasures from the taste of foods is a major determinant of food intake:
Foods that satisfy the taste (via flavor, texture, mouth feel, sensory perception) may
contribute not only to greater eating experience, but also to a sense of satiation and
satiety. The sense of taste is one of the most important human senses. Senses of taste
allow us to separate undesirable foods from those that are nutritious. It is also strongly
tied to primitive emotional and behavioral functions of our nervous system. Taste
defines our ingestion of foods, beverages and medications. Additionally, taste preference
refers to whether a person will choose a certain type of food in preference to others,
and he/she uses this to help control the type of diet eaten. (The Science of Taste &
Nutrition, 2022).
According to a study by Gaspar et al (2016), the most cited reasons for not
consuming coffee were that consumers ‘not liking’ the taste and/or aroma of the coffee.
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
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Customers will be willing to purchase the product that tasted better according to their
perception.
Price
offering that would serve to satisfy their needs and wants. In simple terms, a price is
the measure of the value a customer exchanges to purchase an offering. Prices serve as
the marketplace. They also act as indicators of the extent to which an offering is
demanded and also the extent to which it is supplied or available. The price of a product
is the overall value of the offering, including the value of all raw materials and service
Price has been considered as one of the foremost essential factors that influence
the behavior of both companies and customers. Himawan and Rahadi (2020), reported
that consumers' perceived fairness of price has the primary effect on their purchasing
choices. It is revealed that customers always had their budgets in mind before making a
Ambiance
encompasses various elements such as services, music, uniforms, and product care,
among others. These elements are strategically designed to attract consumers and
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environment, businesses can shape customer perceptions and influence their buying
behavior. Further emphasizing the importance of store atmosphere, Kotler & Armstrong
(2017) state that it is an essential aspect of a store's product arsenal. Each store
possesses a physical layout that is carefully planned to facilitate smooth and effortless
movement for customers. The layout contributes to the overall convenience and comfort
which encompasses both the interior layout (in-store) and outdoor space (out-store),
plays a crucial role in enhancing the convenience and satisfaction of customers (Paila,
According to Levi & Weitz (2012), there are several indicators used to measure
composed of internal layout, sound, odor, indoor texture, and interior design. Internal
layout consists of the layout of the visitor table, cashier table, lights, air conditioning,
and sound. Sound is presented in the room to create a relaxing impression, which
consists of a sound system. Odors are odors emitted by air fresheners. The texture is
the physical appearance used for tables and chairs. And design the interior arrangement
of the room, following the space for visitors and roads that provide comfort. On the
other hand, outdoor setting, it is composed of external layouts, outdoor texture and
exterior design. External layouts arrangement of the layout of various facilities which
include the location of visitor parking, the layout of the signboard, and the location.
Textures include outdoor building wall textures and outdoor signboard textures. And the
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
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exterior design includes the design of outdoor signboards, the placement of entrances,
the shape of the building seen from the outside, and the outdoor lighting system.
Location Accessibility
operations and overall success. As stated by Admadanu (2017), location refers to the
physical space where a company operates or carries out its activities to produce
economically important goods and services. This holds true for various industries,
patterns in a particular area. In the context of a coffee shop, the location's accessibility
To ensure that coffee shops are located in good areas, it is important to consider
geographic, demographic, and psychographic factors. These factors may change over
time, and it is important for businesses to stay aware of those changes as they may
influence the location attractiveness. According to past studies, the choice of location
has a positive impact on brand equity, which refers to the value of a brand in the
the location of the restaurant or coffee shop. In the study by Wang, Tran, and Nguyen
(2014), the researchers found that the location of a restaurant or coffee shop has a
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
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positive effect on brand loyalty. This implies that consumers are more likely to be loyal
Product Design
encompasses the process of generating and refining ideas to create innovative and
appealing products. In the context of a coffee shop, product design involves how the
coffee is conceptualized and prepared by the coffee maker, such as the skilled barista,
color, components, texture, shape, and arrangement, must work harmoniously to create
that visually appeals to the customer. A well-designed product enhances the overall
intense competition, it becomes crucial for them to differentiate their products and
services from others (Lee & Yeu, 2010). By focusing on product design, coffee shops
can develop unique offerings that stand out and attract customers. Creating distinctive
and visually appealing products helps to capture attention, create a positive impression,
and set the coffee shop apart from its competitors. It allows the coffee shop to establish
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Chapter 3
Chapter Three contains three parts: Purpose of the study and Research Design,
Part One, Purpose of the study and Research Design, narrates the purpose of the
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Part Two, Method, narrates how the participants will be selected, describes the
research instrument that will be utilized in gathering of data, the validity of the
Part Three, Data Analysis Procedure, presents the statistical tools that will be
students.
research is the process of collecting and analyzing numerical data to describe, predict,
or control variables of interest. This type of research helps in testing the causal
understanding data sets over time to identify patterns (Sreekumar, 2024). According to
Jose (2021), the quantitative approach to research ensures that the data gathered is
accurate and reliable because it is in numerical form. This characteristic also provides a
The study will utilize a survey method to gather data. A survey is the most
popular kind of quantitative research to gather data from a wider audience across
WEST VISAYAS STATE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT
Iloilo City
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multiple sources. It is versatile in nature, allowing it to evaluate and gather data for
various objectives across multiple industries. This quantitative research design provides
2021). This approach allows for the systematic collection of data from Business
purchasing behaviors.
Research Method
Administration Students enrolled at West Visayas State University. The target population
includes students from various academic years and program concentrations within the
The researchers will utilize the slovin’s formula, with five percent (5%) as margin
of error in determining the sample size of the participants, whereas, stratified random
sampling will be applied in selecting the sample. This sampling method ensures that
participants are selected from different strata or subgroups within the population of
Business Administration students, such as different academic years and course majors .
By using stratified random sampling, the researchers can ensure that each subgroup is
adequately represented in the sample, allowing for more accurate analysis and
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The solution below shows how the researchers will come up with sample size:
❑
n = N /1 + Ne2
Where:
N = total population
e = allowable error
Table 1
Distribution of Participants
Category f %
A. Entire Group
B. Sex
Female
Male
C. Age
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19 to 21 years old
20 to 24 years old
D. Year Level
First Year
Second Year
Third Year
E. Course Major
Financial Management
Operations Management
F. Monthly Family
Income
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Data gathering instrument. The primary data gathering instrument to be used for
behaviors and preferences related to the identified factors such as taste, price,
The survey-questionnaire will consist of two parts. Part one contains the
demographic profile that the respondents are required to fill in their personal
information, including their name, which is optional, age, sex, year level, course major
and monthly family income. Part two will consist of items to identify and rate the
to gain a better understanding of their attitudes and perceptions towards the problem of
the study.
This study will employ a five-point Likert Scale to measure and rate the
respondent’s level of agreement towards the items in Part two. The five categories of
Scale Interpretations
5 Very important
4 Fairly Important
3 Important
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2 Slightly important
To interpret the respondent’s scores, the researchers will utilize the following
validation by three persons: two (2) research advisers from the College of Business and
Management and one (1) research adviser outside of the UNiversity. They will evaluate
the items and check whether they were relevant or irrelevant to the study, and if the
Procedure. First, the researcher will structure a survey-questionnaire and let the
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Next, a letter to conduct the study, signed by the researchers and the research
adviser, will be prepared and addressed to the Dean of the College of Business and
Management. Once the letter is approved, the researchers will obtain permission from
the participants to conduct the study. Participants will be briefed about the purpose of
the study and provided with information about their rights and confidentiality. The
physically, ensuring the confidentiality of responses. The researchers will also check if all
the data collected were answered completely and therefore, eligible to be used in the
study.
Finally, the collected data will be tallied, encoded and prepared for statistical
analysis. It will be sent to the statistician for further analysis. The results will be
The data gathered will be analyzed through the following descriptive and
inferential statistical tools. The descriptive statistical tools will be utilized to analyze,
summarize, and describe the demographic profile of the respondents and the results of
the study. On the other hand, inferential statistical tools will be employed to analyze,
test the differences and relationship among variables, interpret, and draw inferences
WEST VISAYAS STATE UNIVERSITY
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and conclusions from the results. These analyses will help identify significant predictors
Mean. The mean is the most common measure of central tendency. It is the
average level observed in the collected data. This will be used to calculate the average
rating or score for each factor among the survey respondents. This will help to
understand the central tendency or typical value of each factor. A higher mean score
indicates that the factor is considered more important in coffee purchasing behaviors,
of the data points around the mean. The standard deviation will indicate the variability
in responses for each factor among Business Administration students. A larger standard
deviation implies greater variability, indicating that opinions on a particular factor vary
widely among students and a smaller standard deviation suggests more consistent
Rank. Ranking is a statistical technique used to order or rank data points based
on their value or score. Ranking will be used to determine the relative importance of
students.
significant difference between the means of two groups. A t-test may be utilized to
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demographic groups of Business Administration. This analysis can help identify whether
differences in the means of multiple groups. ANOVA will be used to determine whether
Administration students based on the five factors: taste, price, ambiance, location
accessibility, and product design. This will also help to assess whether there are
statistically significant differences in mean ratings for each factor across different groups
of students (e.g., age, sex, different year levels, course major or income brackets).
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References
Albrecht, M. G., Green, M., & Hoffman, L. (2023, January 25). 3.1 Understanding
https://openstax.org/books/principles-marketing/pages/3-1-understanding-
consumer-markets-and-buying-behavior#:~:text=Consumer%20buying
%20behavior%20refers%20to,many%20factors%20influence%20that
%20behavior.
https://www.researchgate.net/publication/353480417_FACTORS_INFLUENCING_
CUSTOMER_BEHAVIORS_TO_PURCHASE_COFFEE_AT_CAFE_AMAZON_IN_PHNO
M_PENH
Godsen, A. (2022, November 7). A Deeper Look at Caffeine Consumption Among College
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News at IUPUI.Retrievedfrom
https://www.thecampuscitizen.com/article/2022/11/craze-for-caffeine
http://www.aijbes.com/PDF/AIJBES-2020-03-03-03.pdf
Jose, J. (2021, July 15). Exploring Types of Quantitative Research Methodology - Voxco.
research/
Ltd, T. (2023, October 23). Why coffee is popular among students | TUCO Ltd posted on
ltd_coffee-coffeedrink-socialdrink-activity-7122165363483496448-nhEi
MacDonnell, K. (2024, March 1). College Students and Coffee: 13 Statistics to Know in
students-and-coffee-statistics/
https://www.statista.com/statistics/314989/philippines-total-coffee-
consumption/#:~:text=Total%20coffee%20consumption%20Philippines
%202014%2F15%2D2020%2F21&text=The%20total%20coffee%20consumed
%20in,coffee%20consumption%20over%20the%20years
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https://researcher.life/blog/article/what-is-quantitative-research-types-and-
examples/
https://ascnhighered.org/ASCN/change_theories/collection/planned_behavior.ht
ml#:~:text=The%20Theory%20of%20Planned%20Behavior%20assumes
%20that%20individuals%20act%20rationally,for%20the%20decision
%2Dmaking%20process
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%20administration%20is%20a%20broad,of%20running%20a%20business
%20efficiently.
influencing/
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SURVEY QUESTIONNAIRE
To the Respondents:
Greetings!
honestly as possible. Rest assured that the information gathered will be treated with
utmost confidentiality and will be used solely for the purpose of the study. Thank you
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Sincerely yours,
Researchers
Noted by:
Adviser
I. Personal Information
Name (Optional):
Sex:
● Male
● Female
Age:
● 19 to 21 years old
● 20 to 24 years old
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Year Level:
● First Year
● Second Year
● Third Year
Course Major
● Financial Management
● Operations Management
Direction: Read and assess the following items, then place a check ( ✔ ) on the box
under the following factors based on their level of importance in your coffee purchasing
decisions. Please refer to the scale below and their corresponding numbers and
INDICATORS 1 2 3 4 5
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Taste
3. Smoothness of texture
Price 1 2 3 4 5
Ambiance 1 2 3 4 5
Location Accessibility 1 2 3 4 5
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1. Proximity to campus
Product Design 1 2 3 4 5