Factors Affecting Consumers’ Buying Behavior on Selected Milk Tea Stores Towards Obtaining Sustainability PDF

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Factors Affecting Consumers’ Buying Behavior on Selected Milk Tea Stores Towards Obtaining Sustainability Natasha Nicole Lee and April Therese Vega Student-Researchers Bachelor of Science in Hotel and Restaurant Management Dr. Jocelyn Sardena Thesis Adviser Abstract This study aims to determine the ...

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Factors Affecting Consumers’ Buying Behavior on Selected Milk Tea Stores Towards Obtaining Sustainability Nguyen Ho Thanh Truc

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Factors Affecting Consumers’ Buying Behavior on Selected Milk Tea Stores Towards Obtaining Sustainability Natasha Nicole Lee and April Therese Vega Student-Researchers Bachelor of Science in Hotel and Restaurant Management Dr. Jocelyn Sardena Thesis Adviser

Abstract This study aims to determine the factors affecting consumer’s buying behavior of selected milk tea stores towards obtaining sustainability. In this study, the researchers applied the descriptive type of research by using percentage, weighted mean and Likert scale to analyze the data. According to the gathered data, most of the respondents are high school and college students. Most of the respondents consider milk tea as a refreshment to quench their thirst. More importantly, the consumers want to have a wider selection of menu items that are both healthy and affordable. Based on the results, the researchers recommend that the management of milk tea outlets to focus on providing healthy alternative ingredients and include nutritional facts to inform the consumers of the contents of their drink. The management should innovate exceptional tea products that are affordable and reasonable yet high quality to achieve full customer satisfaction and loyalty.

Introduction hy are people fond of drinking teas with different varieties of lavors and combinations? Nowadays, people are more adventurous and love to try new taste and experiment on new lavors. They adore everything that is new, exciting and beneicial to them. When people hear about teas, most of them usually associate it to Chinese people, the founders of tea way back thousands of years ago. Tea grows in thousands of tea gardens and estates around the world, and produces thousands of lavorful variations. Like wines, each tea takes its name from the district in which it is grown, and each district produces tea with unique lavor and character (Weiner et. al., 2009). Tea is the second most consumed beverage in the world, ranking next to water. It provides a healthy alternative to soft drinks, coffee and smoothies. Jacobson et. al., (2009) discuss that tea also provides a number of health beneits. It contains lavonoids, which are naturally occurring compounds believed to have antioxidant properties. Tea

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also includes tannic acids, a chemical known for its anti-inlammatory and germicidal properties. There are lots different kinds of teas, but the most popular are Green tea and Black tea since both are known to lower the risk of cancer. Tea contains potent antioxidants called polyphenols. And studies have shown that catechins, the polyphenols most prevalent in green and black tea, are great in suppressing free radicals, even better than vitamins C or E. Also, the catechins are found to prevent tooth decay. Tea also has antibacterial properties that help strengthen the immune system. Many point to Taiwan as the source for the very popular Milk tea. Eventually it gained its popularity after it was featured in a Japanese show. With new stores coming up every now and then, the milk tea industry in the country will most likely linger and continue to be a favorite. A versatile drink, milk tea comes in many variations of lavor and color (the most common of which is served cold rather than hot). Due to its lexibility, it is fast becoming one of the most popular tea drinks in the world. As the tea industry develops, there is an increase in the number of milk tea stores all over the world and among any other milk tea stores, ZEN TEA is the only one who provides lavored iced green teas and can serve specialize mixes of milk tea drinks. ZEN TEA creates its personalized milk tea the way to wants it to be and also provide different combinations to their traditional milk tea drinks that suit every taste of customers. Determining the buying behaviors and preferences of consumers between two different milk teas stores will aid in developing strategies, which in turn would lead in obtaining customer’s loyalty and sustainability in this industry. So in order to be ahead of the others, one must have a unique concept and an effective strategy to attract customers. The researchers have chosen to conduct this study because of their curiosity as to why people suddenly patronize and go gaga on this kind of beverage when in fact it already existed before. Also, the researchers feel that it will have a great contribution not only to the selected establishments but as well as to the professionals, investors and restaurateurs who are engaged in this kind of business or in other food and beverage related industry. Synthesis of Reviewed Literasture Consumer taste and preferences have become complex nowadays. A lot of companies are focusing on the improvement and perfection of the product because of the notion that if the company can provide a product that will completely suite the proile of the customers, patrons will buy it. However, there are lots of other factors that can contribute to the success of the business. It is not the product alone that the company must take notice but also the kind of buying behavior consumers have. The ultimate goal

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of the marketers is the satisfy consumers to have a repeat business, thus having regular patrons and creating customer loyalty. To attain this, companies must take into account the different buying behavior of the consumers. Consumer buying behavior is the conduct of individuals regarding on the decisions they have in mind on spending their resources for goods and services. These behaviors are usually uncontrollable by the marketers since it is very versatile and changes rapidly in a short period of time. Buyer characteristics include four major factors: cultural, social, personal, and psychological factors. Cultural factors contain the culture and subculture where the consumers are from. It includes the basic values, perceptions, preferences and behaviors that a person learns from family and other key institutions. Social factors also inluence a buyer’s behavior. A person’s reference groups – family, friends, social organizations, and professional associations strongly affect product and brand choices. Also, psychological factors like motivation, perception, learning, and beliefs and attitudes that provide a different insight to understand the buyer’s mind. And lastly, the buyer’s age, life-cycle stage, occupation, education and economic circumstances are personal factors which inluence his or her buying decisions. Understanding consumer behavior is intricate, thus, marketers must understand such differences and adjust their products and marketing programs accordingly to what the consumer demands to attain sustainability because sustainable success is achieved by generating satisfactions through recognizing and understanding the needs and wants of the consumers. Conceptual Framework INPUT Factors affecting consumer’s buying behavior of selected milk tea stores • Personal Inluences • Cultural Inluences • Social Inluences • Psychological Inluences

PROCESS Evaluation of Perceived Quality • Survey through questionnaires • Interview the manager of Cha Time store concerning their marketing strategy, product strategy, and pricing • Give questionnaires to 100 respondents of each selected establishment • Analyze and interpret the questionnaire based on how the customers see Zen Tea and Cha Time

OUTPUT • • •

•

Sustainability of the products are recognized Consumer’s buying behavior and preferences is identiied Product proile that would best capture the needs of the customer is determined Suggestions/ Recommendations for the improvement of products is realized

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The researchers’ purpose in this investigation is to discover the factors that affect consumer’s buying behavior in terms of the customer’s personal inluences, cultural inluences, social inluences, and psychological inluences. The researchers used survey questionnaire as the primary source of information and data pertinent to the study since it is the most reliable and an accurate means of gathering facts about the study. The questionnaires were given to 100 customers (convenient sampling method) of each milk tea store. The measurement instruments that were used in the questionnaire are percentage, weighted mean and a four point Likert scale method. In addition, the researchers conducted an interview with the manager of CHA TIME store regarding the marketing strategy, product strategy, and pricing of the establishment. Statement of the Problem The researchers determine the factors that affect a consumer’s buying behavior in terms of the customer’s personal inluences, cultural inluences, social inluences, and psychological inluences. Thus, the study aims to seek and answer the following: 1. The personal proile of the customer in terms of: 1.1 Age 1.2 Gender 1.3 Occupation 1.4 Income 1.5 Education 2. The cultural proile of the customer in terms of: 2.1 Time of drinking milk tea 2.2 Ways of drinking tea 2.3 Kind of tea preferred 3. The social proile of the customer in terms of: 3.1 Reference group on milk tea 3.2 Marketing form of advertisement on milk tea 3.3 Companion when drinking milk tea 4. The psychological proile of the customer in terms of: 4.1 Regularity of visit 4.2 Amount of money willing to spend on milk tea

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4.3 Reasons that inluence drinking milk tea 4.4 Importance of factors in purchasing milk tea 4.5 Satisfaction of factors in purchasing milk tea 5. Suggestions and recommendations that a customer can give to improve the products that milk tea stores offer. Scope and Limitations This study only focused on the factors that affect consumer’s buying behavior. This was measured in terms of the personal inluences, cultural inluences, social inluences, and psychological inluences of each consumer. This study was limited to discuss the beverage products speciically on the tea concoctions of the selected milk tea stores. It did not include the proitability, inancial aspect, and saleability of the establishments. The researchers limited the respondents to 100 random customers of each establishment (with a total of 200 respondents) – ZEN TEA and CHA TIME milk tea place as the researchers used convenient sampling method, both stores are located at Banawe. The study was done during November 2011 to September 2012.

Method ResearchDesign The researchers used a descriptive method of research because it seeks to identify and determine the factors affecting and concerning a consumer’s buying behavior and preferences to attain sustainability of the product and the establishment itself. In this study, the researchers used books, articles, internet, and thesis compilations to gather secondary resources of information. The information that the researchers have gathered were used as a guide for the formulation of the survey questionnaire and additional information for the study itself. Participants of the Study In coordination with the manager, the survey questionnaires were circulated to 100 random customers of each selected milk tea store (with a total of 200 respondents) during a Saturday since the said volume of customers is high during that time with an average number of 100 customers. The respondents were selected through the use of convenient sampling method. Through observation, the researchers have determined that the peak hours of both establishments were during pm snack until midnight on weekends

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speciically during Saturdays. The researchers conducted an interview with the manager of CHA TIME store regarding their marketing strategy, product strategy, and pricing of their products. Research Instrument The following instruments were used in gathering data: • The researchers made an observation for the reason of knowing the volume of customers within a day of operation. • Survey questionnaires were given to 100 customers of each selected milk tea store. • The researchers conducted an interview with the manager of CHA TIME store for further information needed about the store. Data Analysis The data was analyzed through the application of descriptive statistics using percentage, weighted mean, and Likert scale. The researchers used the following in order to come up with an organized result. The percentage is calculated by dividing the frequencies of responses against the total number of responses and be multiplied by 100. This method was applied in the irst, second, third, fourth (4.1 and 4.2), ifth part of the questionnaire concerning the personal, cultural, social and psychological proile of the customer. The Formula is: Where:

%= ∑ f/n X 100 %= Percentage ∑= Summation f= Frequency n= Total number of respondents

Weighted Mean is computed by multiplying each value of the group by the appropriate weight factors and will be divided by the total number of respondents. The Formula is: Weighted mean= ∑fx/ n

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∑= summation f=frequency x= weight of the response n=Total number of respondents

Likert scale was used for verbal interpretation of the mean value. Mean value 3.25-4.00 2.50-3.24 1.75-2.49 1.00-1.74

Weighted Mean Verbal Interpretation 4 Strongly Agree/ Very Important/ Very Satisied 3 Agree/ Important/ Satisied 2 Disagree/ No Inluence/ Least Satisied 1 Strongly Disagree/ Not Important/ Not Satisied

The researchers used convenient random sampling in selecting the respondents of ZEN TEA and CHA TIME milk tea stores.

Results and Discussions Table 1. Personal Proile of the Respondents Table 1.1 Age Proile of the Respondents CHA TIME

n= 100

Age

Response

13-18 19-24 25-30 31-36 37-42 43-50 50 and above Total

23 44 15 7 4 3 4 100

ZEN TEA

Percentage 23 44 15 7 4 3 4 100

Age 13-18 19-24 25-30 31-36 37-42 43-50 50 and above Total

n=100 Response 43 40 11 2 0 3 1 100

Percentage 43 40 11 2 0 3 1 100

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Table 1.2 Gender Proile of the Respondents CHA TIME Gender Male Female Total

n= 100 Response 43 57 100

Percentage 43 57 100

ZEN TEA Gender Male Female Total

n=100

Response 51 49 100

Percentage 51 49 100

P10,000-P15,000 19 P15,000-P20,000 10 P20,000 & above 23 Total 100

19 10 23 100

P10,000-P15,000 P15,000-P20,000 P20,000 & above Total

CHA TIME Occupation

Response

ZEN TEA Percentage

Occupation

Response

Percentage

66 17 6

66 17 6

Student 44 Employee 19 Entrepreneur 9 Professional (Teacher, Chef, Engineer, etc.) 25

44 19 9

Student Employee Entrepreneur

25

Others Total

3 100

Professional 10 (Teacher, Chef, Engineer, etc.) Others 1 Total 100

3 100

10 1 100

Education Response High School 14 College 36 Postgraduate 10 Graduate 30 Undergraduate 10 Total 100

10

Percentage 14 36 10 30 10 100

Education Response High School 20 College 48 Postgraduate 5 Graduate 22 Undergraduate 5 Total 100

ZEN TEA Income Response Percentage No Income / Allowance 54 54

P10,000 and below

16

16

Percentage 20 48 5 22 5 100

Table 2. Cultural Proile of the Respondents Table 2.1 Time of Drinking Milk Tea CHA TIME

Percentage 38

ZEN TEA

Table 1.5 clearly shows that when it comes to the education proile, 36% of the respondents who go to CHA TIME are mostly college students. With the supporting results of the age proile of the respondents, ages 19-24 years old had the highest percentage. On the other hand, ZEN TEA’s report shows that 48% of the respondents are considered college students.

Table 1.4 Income Proile of the Respondents CHA TIME Income Response No Income / Allowance 38 P10,000 and below 10

3 10 17 100

Table 1.5 Education Proile of the Respondents CHA TIME

Table 1.3 Occupation Proile of the Respondents

3 10 17 100

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Time

Response

Breakfast Lunch Snack Dinner Total

4 9 66 21 100

ZEN TEA Percentage 4 9 66 21 100

Time

Response

Percentage

Breakfast Lunch Snack Dinner Total

1 7 77 15 100

1 7 77 15 100

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Response 18 82 100

Percentage 18 82 100

ZEN TEA Temperature Response Hot 11 Cold 89 Total 100

Percentage 11 89 100

Advertisements Colleagues Others Total

10 5 1 100

10 5 1 100

Advertisements 5 Colleagues 3 Others 1 Total 100

133 5 3 1 100

Table 2.2 illustrates that 82% of the total respondents at CHA TIME prefers drinking cold milk tea rather than hot. And with regards to ZEN TEA, 89% of the respondents also love to drink their tea cold.

Table 3.1 clearly states that friends / peers are mostly the answers of the respondents at CHA TIME with 61% of the total percentage. Also, there was one respondent who answered herself as her reference. In addition, there are 84% of the respondents of ZEN TEA who have discovered from their friends and peers. Only one percent 1% of the respondents answered “others” mainly for the reason that he has igured it out in Taiwan.

Table 2.3 Preference of the Kind of Tea

Table 3.2 Marketing Form of Advertisement on Milk Tea

CHA TIME Kind of Tea Response Black Tea 21 Oolong Tea 24 Green Tea 36 White Tea 12 Others 7 Total 100

Percentage 21 24 36 12 7 100

ZEN TEA Kind of Tea Response Black Tea 27 Oolong Tea 12 Green Tea 37 White Tea 9 Others 15 Total 100

Percentage 27 12 37 9 15 100

Table 2.3 signiies that 36% of the respondents at CHA TIME answered green tea as their most preferred kind of tea. Same as ZEN TEA, 37% of the respondents prefer green tea. Table 3. Social Proile of the Respondents

Reference Response Friends / Peers 61 Family 23

ZEN TEA Percentage 61 23

Form of Advertisement Banners Newspaper / Magazines

ZEN TEA Response 4

Internet / blogs TV / Radio Word of Mouth Others Total

2 22 10 56 6 100

Percentage 4 2 22 10 56 6 100

Form of Advertisement Response Banners 15 Newspaper / Magazines 3 Internet / blogs 20 TV / Radio 6 Word of Mouth 53 Others 3 Total 100

Percentage 15 3 20 6 53 3 100

Table 3.2 shows that the word of mouth is the most used marketing form of advertisement. 56% of the respondents at CHA TIME answered word of mouth. Similarly, ZEN TEA’s respondents also answered that it was also from word of mouth, comprising 53% of the total respondents.

Table 3.1 Reference Group on Milk Tea CHA TIME

CHA TIME

Reference Response Friends / Peers 84 Family 7

Percenta...