RELATIONSHIP BETWEEN CARBONATED DRINKS AND HEALTH DRINKS TO THE CONSUMER PREFERENCE BY THE SELECTED HOUSEHOLDS OF BARANGAY MACABLING IN THE CITY OF SANTA ROSA LAGUNA

An Undergraduate Thesis Proposal Presented to the Faculty of the Polytechnic University of the PhilippinesSanta Rosa, Laguna

In Partial Fulfillment of the Requirements for the Degree Bachelor in Business AdministrationMajor in Marketing Management

ByFevelyn D. BucioJessica Lorraine D. De BorjaMariel Danica M. GalasaoRessie S. OrzoMark Anthony P. Tambor

Angelita E. Nocon, MSubject Facilitator

April 2015

3Chapter ITHE PROBLEM AND ITS BACKGROUND

IntroductionBeverages and drinks areliquidsspecifically prepared forhumanconsumption. In addition to basic needs, beverages form part of the cultureof human society. Nowadays, drinks industry comprises companies that manufacture non-alcoholic beverages and carbonated mineral waters or concentrates and syrups for the manufacture of carbonated beverages. Euromonitor International defines carbonated drinks as non-alcoholic drinks into which carbon dioxide gas has been dissolved. Carbonating beverages, introducing CO2 into the drink mix under pressure, makes the drink slightly more acidic which serves to sharpen the flavor and produces a slight burning sensation.And, it also helps preserve the drink longer without going bad while Harvard School of Public Health Nutrition Source defines health drinks as beverages that are limited or consumed in moderation, including diet drinks, fruit juice and milk.Different beverages have been well accepted by consumers. In the midst of the rapidly growing beverage demand, the industry on the whole is encountering new opportunities and challenges. Changing consumer demands and preferences require new ways of maintaining current customers and attracting new ones. Along with ever increasing competition, beverage companies must intensely court customers, offer high quality products, efficiently distribute them, ensure safety and keep prices low all while staying nimble enough to exploit new markets by launching new products. Recent developments in beverage consumption and challenges in marketing have heightened the need for searching the consumers' needs and preferences.

4According to Kotler, the consumer market is very vast, and thus there is great demand for an enormous variety of goods and services, especially as consumers differ from one another in that of age, gender, income, education level, and tastes. Moreover, the relationships between different consumers, as well as their contact with other elements of the world surroundings, affect their choice of products, services, and companies.As a consumer, trends drive innovation and purchase behavior. New product innovation is driven by consumer demand for more unique and experimental flavor combinations. Over two thirds of consumers are willing to experiment with new foods and beverages, offering plenty of opportunity for product development.Consumer preferences is used primarily to mean to select an option that has the greatest anticipated value among a number of options by the consumer in order to satisfy his/her needs or desires. Preferences indicate choices among neutral or more valued options available. The preference of the consumer is the result of their behavior they show during searching, purchasing and disposing the products.Therefore, we came up to the problem of determining the relationship between the carbonated drinks and health drinks to the consumer preference.

Background of the Study

5 In 1767, carbonated water (also known as soda water) was invented and has become the main component of most soft drinks. Soft drinks date back to the mineral water found in natural springs. The earliest soft drinks were developed by Arabic chemists and were popular in the medieval Near East. The first marketed soft drinks reached the Western World in the 17th century.On the other hand, health drinks or juice is the liquid that is naturally contained in fruit or vegetable tissue. European was fermenting fruit juice into bjorr in 11th and 12th century in Scandinavia, Iceland, Greenland and England.The commercial modern juice industry dated from 1869, when the Welch Company of Vineland, New Jersey commenced bottling of unfermented grape juice. It was said that Dr. Thomas B. Welch and his son Charlie started fruit juice processing industry.Among the global profile that focuses on the industry trends in soft drinks, the carbonated drinks and health drinks or fruit/vegetable juice got the highest off-trade volume. (Euromonitor, 2013) That is why we came up to finding the relationship of these two beverages.However, it is somehow questionable why most of the consumers preferred one drink from the other. The researchers wonder what would be the reason behind this. Are the factors affects the buying behavior of the consumers? Hence, this study aims to address the issue.

6Theoretical FrameworkTheory of Consumer PreferenceInmicroeconomics, the theory ofconsumer preferencerelateschoices(for the consumption of bothgoodsand services) to consumption expenditures; ultimately, this relationship betweenpreferencesand consumption expenditures is used to relate preferencestoconsumer demand curves. The link between personal preferences, consumption, and thedemand curveis one of the most closely studied relations in economics. Consumer choice theory is a way of analyzing how consumers may achieveequilibrium between preferences and expenditures by maximizingutilityas subject to consumerbudget constraints.Preferences are the desires by each individual for the consumption of goods and services that translate into choices based on income orwealthfor purchases of goods and services to be combined with the consumer's time to define consumption activities. Consumption is separated from production, logically, because two different consumers are involved. In the first case consumption is by the primary individual; in the second case, a producer might make something that he would not consume himself. Therefore, different motivations and abilities are involved. Themodelsthat make up consumer theory are used torepresentprospectively observable demand patterns for an individual buyer on thehypothesisof constrained optimization. Prominent variables used to explain the rate at which the good is purchased (demanded) are the price per unit of that good, prices of related goods, and wealth of the consumer.

7The fundamental theorem of demand states that the rate of consumption falls as the price of the good rises; this is called the substitution effect. Clearly, if one does not have enough money to pay the price, then they cannot buy any of that item. As prices rise, consumers will substitute away from higher priced goods and services, choosing less costly alternatives. Subsequently, as the wealth of the individual rises, demand increases, shifting the demand curve higher at all rates of consumption; this is called theincome effect. As wealth rises, consumers will substitute away from less costly inferior goods and services, choosing higher priced alternatives.

A Dynamic Theory of Consumers Preference by Herbert ScarfTheory of Consumers Choice is based on idea of utility maximization, subject to constraints in expenditures. A description is given of those utility functions for which future tastes are independent of past consumption, and an even smaller class is described for which tastes are stationary in time. It is shown that the utility function will have these properties only of it is a discounted sum of functions pertaining to consumption in the separate periods. The discount factor leads to the notion of a personal interest rate, which may be constant, or a function of the consumption level. The question of whether a decreasing ratio of expenditure to total wealth is compatible with such a utility function is discussed. The case of constant personal interest is examined in detail and it is shown that no stationary utility function permits a decreasing ratio of expenditure to wealth for a sufficiently wide range of market interest rates. On the other hand, an example is given of utility indicator with a variable personal interest rate, which predicts a decreasing ratio of expenditure to wealth for all market interest rates.

8Jonathan Levin and Paul Milgrom Consumer TheoryConsumer theory is concerned with how a rational consumer would make consumption decisions. What makes this problem worthy of separate study, apart from the general problem of choice theory, is its particular structure that allows us to derive economically meaningful results. The structure arises because the consumers choice sets sets are assumed to be defined by certain prices and the consumers income or wealth.

9PROCESSAssessment of Factors of Consumer Preferences through1.1 Survey Questionnaires1.2 Interview 1.3 Observation OUTPUTSignificant relationship between the two different beverages to the consumer preferenceINPUTPreferred drinks of the respondents in terms of:Carbonated Drinks Health DrinksFactors that affect buying behavior of consumers between carbonated drinks and health drinks2.1 Price2.2 Taste2.3 AdvertisementConceptual Framework

FEEDBACK LOOP Fig. 1 Paradigm of the StudyThis study uses input, process, output model. Input includes the preferred drinks of the respondents and factors that affect the consumer preference of carbonated drinks and health drinks in terms of price, taste, and advertisement. Process intends to make the present study verifiable which includes survey questionnaires, interview and observation. Output aims to present the expected result of this study based on the relationship between the two beverages namely: carbonated drinks and health drinks by the selected households of Barangay Macabling in the City of Santa Rosa, Laguna.

10Statement of the ProblemThis study aims to determine the relationship between carbonated drinks and health drinks to the consumer preference by the selected households of Barangay Macabling in the City of Santa Rosa, Laguna.Specifically, the researchers intend to answer the following questions:1. Which of the two drinks the respondents preferred:0. Carbonated Drinks0. Health Drinks1. What factors do respondents consider in buying their preferred drinks in terms of:2.1Price2.2Taste2.3Advertisement3.Is there any significant relationship between the two different beverages?

HypothesisThere is no significant relationship between the carbonated drinks and health drinks to the consumer preference by the selected households of Barangay Macabling in the City of Santa Rosa, Laguna.

11Significance of the Study Other ResearchersThe study will benefit the other researchers that will add to the growing body of informationin the field of educational research. The result of the study will be serving as a guide and material to a better understanding of other researchers who would like to embark on a conduct of study of similar nature. Beverage Companies and DistributorsThe study will help the beverage companies and distributors to improve and to think of new innovations in their products to increase customer satisfaction. Beverage patronsThe study will help soft drink patrons in their decision making in choosing the best available options in order for them to be aware in fulfilling their needs.

Scope and LimitationsThis research study focus on the relationship between carbonated drinks and health drinks to the consumer preference by the households of Barangay Macabling in the City of Santa Rosa, Laguna in terms of price, taste, and advertisement. The samples were taken from the households with a total of 3920, but only 363 individuals were selected for the study.

Definition of Terms

12Terms here are conceptually and operationally defined for better understanding of the readers.Behavioral variables are the criteria or yardsticks for measuring and comparing among different individuals. Mainly observable and measurable characteristics including gender, income, education, social class, organizational productivity, task orientation, recall memory, recognition memory, and achievement (Kerlinger & Lee, 2001).Beverages are any one of various liquids for drinking, usually excluding water specifically prepared for human consumption.Consumer Preference is the study of how people buy, what they buy and when they buy. It involves how consumers select goods and services.Carbon Dioxide is a naturally occurring chemical compound composed of two oxygen atoms each covalently double bonded to a single carbon atom.Carbonateddrinkis a beverage that has hadcarbon dioxidedissolved into it for some reason, most often to improve the taste, texture, or both. It is cold drink that is usually sweet, does not contain alcohol, and is often sold in bottles or cans.Embark is to begin a course of action, especially one that is important or demanding.Enormous is very large in size, quantity, or extent.Health Drink is a beverage that claims to be beneficial to health.Outlet is abrick and mortaror onlineretail storein whichmanufacturerssell their stock directly to the public.

13Product Development is a system of defined steps and tasks such as strategy, organization, concept generation, marketing plan creation, evaluation, and commercialization of a newproduct.Purchase Behavior is the decision processes and acts of people involved inbuyingand using products.Vast is ofverygreatextentor quantity,immense.

14Chapter IITHE REVIEW OF RELATED LITERATURE AND STUDIESForeign LiteratureCambridge Dictionary defines Consumer Preference as the fact of people liking one thing over another. Also, as the subjective (individual) tastes, as measured by utility, of various bundles of goods according to the levels of utility they give the consumer. The preferences are independent of income and prices. Ability to purchase goods does not determine a consumers likes and dislikes. In other words, the consumer has different preferences over the different combinations of goods defined by the set of commodity bundles. (www.usi.edu/business)Another definition by Krisnawamy et al. (2006) of Consumer Preference is used primary to mean to select an option that has the greatest anticipated value among a number of options by the consumer in order to satisfy his/her needs or desires. Preferences indicate choices among neutral or more valued options available. The preference of the consumer is the result of their behavior they show during searching, purchasing and disposing the products.Similarly, Kotler (2008) stated that Consumer Preferences are measured in terms of the level of satisfaction the consumer obtains from consuming various combinations of bundles of goods. The consumers objective is to choose the bundle of goods which provides the greatest level of satisfaction as they the consumer define it. But consumers are very much constrained in their choices. These constraints are defined by the consumers income, and the prices the consumer pays for the goods. Consumer value is measured in terms of the relative utilities between goods and these reflect the consumer preferences.

15Furthermore, Professor Chen discussed about the Nature of Consumer Preferences. How consumers make choices is an important question. To answer this, theres a need to know the nature of consumer preferences. Suppose there are several market baskets (or commodity bundles), say A, B, C, etc., each of which consists of some combination of goods. A consumer should have some preferences over these baskets. HHHe also enumerated the three assumptions regarding preferences, namely: 1.) Completeness, for any two baskets, the consumer should be able to compare them. In other words, if A and B are any two baskets, the consumer should be able to say whether she likes A better, or B better, or she is indifferent between the two (she equally likes them) Then, 2.) Transitivity, if a consumer prefers A to B, and prefers B to C, then she should prefer A to C. Lastly, 3.) Nonsatiation, the consumer always prefers more to less of a commodity.The underlying foundation of demand, therefore, is a model of how consumers behave. The individual consumer has a set of preferences and values whose determination is outside the realm of economics. They are no doubt dependent upon culture, education, and individual tastes, among a plethora of other factors. In the article wrote by Flamberg (2014), he said that when consumers set preferences and brands execute on them, research suggests that engagement, purchases and customer satisfaction soar. The trick is incorporating preference as a highly desired element with CRM architecture or environment. A brand without a preference center is partially faking CRM.

16Accordingly, Carpenter and Nakamoto (2013) reflected on Consumer Preferences Formation and Pioneering Advantage that Consumer Preferences are, at least in part, the outcome of competition. Lacking fixed, exogenous preferences, buyers learn their preferences through trial and error on the basis of the available alternatives, prices, and positions making inferences about what attributes they do and do not like. Thus, preferences for attributes evolve with consumer experience. Competition, therefore, can be viewed in part as a race to shape the nature of Consumer Preferences.Foreign StudiesIn their perceptual study on the Consumer Preference towards Carbonated Drinks, Ubeja and Patel (March, 2014) identified many factors related to consumer preferences and with the help of their method of analyzing the factors, they have found six new factors, namely: Mental Relaxation, Price, Refreshment, Brand Name, Hygiene and Taste. These factors mainly affect the buying behavior of the consumers with respect to the saleability of carbonated drinks in the market. On the other hand, Mevlt Gl, (2012) posited that product types (orange, sour cherry, etc.) were determined as the most important factor on consumers fruit juice purchasing preferences with the rate of 28.34% other important factors were found as price level (16.83%), having an international quality and food safety certificates (16.14%), being organic or not (15.21%), production methods (13.06%) and containing sugar additive or not (10.43%). The quality set of fruit juice which maximizes consumer satisfaction was determined as, the orange juice which is 100% fruit juice, without sugar additive, organic and has international quality and food safety certificates and affordable price.

17Another study conducted by Redondo (2014) revealed that carbonated drinks are beverages composed of water and other ingredients that provide specific sensorial attributes. Carbonated drink consumption patterns have recently been changed partially influenced by an increased availability of different types of beverages during the last few years. Consumers' preferences to choose one drink over another are influenced, not only by genetic, psychological and environmental factors, but also by the beverage's specific attributes. In fact, beverage consumption is driven by the sensations it gives. Because the main component of carbonated drink is water, an increase in the intake might improve fluid intake and the levels of water in the body if it is regarded as an "essential nutrient".While Hutchings (2003), disclosed in his study that intensifying the fruit colors could strengthen expectation for the juice flavor. Consumers with high environmental interests were more likely to pay a premium for a fruit juice with organic ingredients and a nutritional index on the label. (Bonilla, 2010)Vijay (2010) revealed that itis inferredthat consumption of carbonated drinks rankfirst, second is the Attractive package enhancing the consumer tobuy and thethird, carbonated drinks really givelift to the consumers. It can be observed that the respondents preferences on the likeliness of carbonated drinks varied significantly based on Age. As the age of the consumers ascends, thepreferences over the carbonated drinks come down. In another study which was performed by using conjoint analysis, consumer behaviors and competition in meat and milk sector in Erzurum were evaluated (Topu, 2006). Besides this, fruit juice consumptions relationships with demographical variables such as age, race and diets, were evaluated in some studies in Germany and USA. (Lorinczi, 2009)

18Abarajithan and Ragel (2011) studied customer switching behavior toward the carbonated soft-drink market in Sri Lanka. They showed what factors determine switching behavior among carbonated soft-drink consumers in Sri Lanka. The authors proposed that the marketing mix influenced the switching behavior. The marketing mix is considered to consist out of four Ps. The four Ps are product, price, place and promotion (Kotler, Armstrong; 2010). The study showed that of these dimensions, the marketers product mix, promotional mix and distributional strategies have a high influence on the switching decision, whereas price strategy plays a moderate role. In contrast with, Luckow and Delahunty (2004) revealed their evaluations in their survey about the consumers preferences about orange juice containing functional components. Moreover, Gulla et al. (2012) provides a useful insight into production and marketing strategies for a new juice line for the early morning joggers that could be accompanied by the key massage, just fresh fruits. All the pleasure and nutritional intake of fruit in an appealing drink.In a study conducted by Gopi and Arasu (2012), they focused on factor analysis model and its application to identify consumer preferences for a popular soft drink product in Dharmapuri. The results depicted that the consumers preferences were characterized by four-factors: branding, validation and prices, packaging and taste, respectively. Rotational factors successfully extracted the factor of branding as the dominant factor. More recently, in the study of Dr. Shih et al. (March 2015), it is learned that younger female likes handmade drinks, older female likes self-prepared drinks, only younger male likes bottle drinks. This study also showed that the frequency of the major consumption is 3 to 4 times a week for handmade drinks; the less frequency is self-prepared drinks. In addition, this study also demonstrated that there are positive relationship and direct impact for consumer buying behavior and consumer satisfaction in beverage industry.

19Local LiteratureEuromonitor International (2014) revealed that local consumers continue to purchase soft drinks as beverages to drink during snack and meal times. But price still remains a key to consideration in purchasing decisions to most Philippine consumers who are price-conscious and choosing product that are more affordable. Also, the proximity which dictates the choice of distribution channel affects their buying behavior because most Filipino tends to buy from retailers that are closest to where they live. It is then presumed that the industry of soft drinks will continue to grow and gain more profits in the future. As a result, some governments abroad have banned or limited the sale of soft drinks in schools. Last May, for example, Peru approved a law designed to reduce child obesity by encouraging healthier eating habits in schools. It regulated advertising for fatty foods and fizzy soft drinks in schools, the first step in a plan to ban some junk food altogether. Some schools in the Philippines have also already taken out soda drinks from their cafeterias.Cabiao (2013) said that to understand a Filipino consumer, businesses should focus on 4 factors: beauty, hygiene, health and convenience. Over the 5 past years, growth of purchase in ready-to-drink choco drinks, ready-to-drink coffee and ready-to-drink energy/sports drinks have increased.

20Young and Pagoso (2008) defined Consumer Behavior as the behavior that consumers exhibit in looking, purchasing, using, evaluating, and disposing products and services that they expect to satisfy their needs. The study of consumer behavior focuses on how individuals make decisions to spend their available resources like money, time, and effort on consumption-related items.They have also listed the factors that influence consumer behavior, namely: Culture, Social, Psychological and Personal Factors. Local Studies All efforts have been made but no related local studies have been found.Synthesis of Related Literatures and StudiesRowland (2013) and the Euromonitor International (2014) revealed that it is the price that the majority of the consumers are concern. They prefer to buy beverages depending upon the affordability of the product. They make choices not just by determining the brand name but by satisfying oneself through the factors that affects the buying behavior of the consumers. On the other hand, the present study came out with significant findings that there are some factors that greatly affect the buying mechanism of consumers with regards to what kind of carbonated soft drinks to buy and to what extent it would bring the consumer to the satisfaction level.

21The same previously cited study recognized, to a certain level, the factors which contribute to the buying behavior of the consumers in choosing the kind of soft drinks especially for thirst-quencher regardless of the brand name. The present study recognizes the same condition particularly on the preferences of the consumers in their choices of soft drinks considering the factors that could adversely affect the companys growing profit in the country.

22Chapter IIIMETHODOLOGY OF RESEARCH

This chapter includes the methods of research, population, and sample size, descriptions of the respondents, instrumentation, data gathering procedure, and statistical treatment of data.

Research MethodDescriptive Research intends to describe and interpret what is. It reveals conditions or relationships that exist or do not exist, practices that prevail or do not prevail, beliefs of points of view or attitudes that are not held, processes that are going on or otherwise, effects that are being felt, or trends that are developing. It attempts to interpret the present. In business research, it may reveal status of old and new products, consumer product acceptance or preferences, advertising schemes, market trends and other studies pertinent to business operation.

Population and Sample SizeThe total household of the study is three thousand nine hundred twenty (3920) respondents in Barangay Macabling City of Santa Rosa, Laguna. The source of the information is from the Municipal Hall of Barangay Macabling in the City of Santa Rosa, Laguna.

23To determine the sample size of the total population the researcher used:Slovens Formula Nn = 1 + Ne2Where:n = number of sampleN = total population1 = constante = margin of error (5%) 3920N = 1 + 3920 (5%)2

3920 = 1 + 3920 (0.05)2

3920 = 1 + 3920 (0.0025)

3920 = 1 + 9.8

3920 = 10.8

n 362.96 or 363

Description of the Respondents

24The researchers have three hundred sixty-three (363) respondents from the selected households of Barangay Macabling in the City of Santa Rosa, Laguna.

InstrumentationThe survey questionnaire is use as a research instrument. The questionnaire will focus in the Relationship of Carbonated Drinks and Health Drinks to the consumer preference by the selected households of Barangay Macabling in the City of Santa Rosa, Laguna.WEIGHTED MEANVERBAL INTERPRETATION

4.50 5.00Highly Preferred

3.40 4.49Preferred

2.60 3.39Slightly Preferred

1.80 2.59Less Preferred

1.00 1.79Not Preferred

Data Gathering ProcedureThe researcher will use the following data gathering procedure for the study. First, the researchers will observe the consumers of the two beverages in Barangay Macabling City of Santa Rosa, Laguna. Then, the group will proceed in survey questionnaire that is focus on the Relationship of Carbonated Drinks and Health Drinks. The primary data will be gathering by means of visiting the barangay and conducting a survey questionnaire to the respondents. The researcher also need the secondary sources of data coming from books and published materials related to the study. The researcher of the study has chosen the random sampling.

25Statistical Treatment of DataThe researchers will use statistics as the basic tools of measurement research, in order to analyze the data gathering by the researchers. The researcher will use Slovens formula for the purpose of computing the sample size; Frequency and Percentage Formula for expressing the relative frequency of survey responses and other data; Likert Scale for verbal interpretation and to interpret the weighted mean and weighted mean which is useful indicator of finding the most and at the same time the least favored of the respondents in the group; and lastly, Chi-square Test Formula for testing goodness of fit is used to decide whether there is any difference between the observed (experimental) value and the expected (theoretical) value.

Slovens Formula: Nn = 1 + Ne2Where:n = Number of sampleN = Total population1 = Constante = Margin of error (5%)

Frequency and Percentage Formula:

26% = f/n (100) Where:% = Percentagef = Frequency n = Number of total respondents

Weighted Mean Formula:WM = fiwi wiWhere:f = Frequencyn = Number of samplesw = Weight factor

Chi-square Test Formula: X2 = Where:O = Observed frequencyE= Expected frequency= SummationX2= Chi Square value

27Chapter IVPRESENTATION, ANALYSIS AND INTERPRETATION OF DATAThis chapter shows the tabulated, analyzed and interpreted data on the questionnaires answered by the selected households of Barangay Macabling in the City of Santa Rosa, Laguna posited in the study.Table 1PREFERRED DRINKS OF THE RESPONDENTSDrinksFrequencyPercentage

Carbonated Drinks24367%

Health Drinks12033%

Total363100%

The table shows the preferred drinks of the respondents. Out of three hundred sixty three (363) respondents, two hundred forty three (243) or sixty seven percent (67%) preferred carbonated drinks; and one hundred twenty (120) or thirty three percent (33%) preferred health drinks.

28Table 2Factors that Affect the Consumers Preferences in Buying Carbonated Drinks and Health Drinks with their General Weighted Mean

CARBONATED DRINKSHEALTH DRINKS

fXInterpretationfXInterpretation

PRICE2434.06Preferred1204.14Preferred

TASTE2434.04Preferred1203.74Preferred

ADVERTISEMENT2433.81Preferred1203.61Preferred

GENERAL AVERAGE3.97Preferred3.83Preferred

The table shows the Factors that Affect the Consumers Preferences in Buying Carbonated Drinks and Health Drinks with their General Weighted Mean. With two hundred forty three (243) respondents that preferred carbonated drinks, in terms of Price, it gained a general weighted mean of 4.06; in terms of Taste, it gained a general weighted mean of 4.04; and in terms of Advertisement, it gained a general weighted mean of 3.81. It gained a general average of 3.97, and is interpreted as Preferred.With one hundred twenty (120) respondents that preferred carbonated drinks, in terms of Price, it gained a general weighted mean of 4.14; in terms of Taste, it gained a general weighted mean of 3.74; and in terms of Advertisement, it gained a general weighted mean of 3.61. It gained a general average of 3.83, and is interpreted as Preferred.

29Table 3Significant Relationship of the Factors that Affect the Consumers Preferences in Buying Carbonated Drinks and Health Drinks

PriceTasteAdvertisementTotal

OEOEOE

Carbonated Drinks4.064.104.044.103.813.7211.91

Health Drinks4.124.084.144.083.613.7011.87

Total8.188.187.4223.78

(4.06-4.10)2 + (4.04-4.10)2 + (3.81-3.72)2 + (4.12-4.08)2 + (4.14-4.08)2 + (3.61-3.70)2 4.10 4.10 3.72 4.08 4.08 3.70= 0.0003 + 0.001 + 0.002 + 0.0003 + 0.001 + 0.002 = 0.0066 or 0.01

Table 4

TestDegree of FreedomAX2HypothesisInterpretation

Is there any significant relationship between the different beverages?

20.050.01AcceptedAccept the Null Hypothesis

df= (r-1)(c-1) = (2-1)(3-1) = (1)(2) = 2

The table shows the degree of freedom with the computed chi-square of 0.01 with the tabular value of 5.99. This means that the computed chi-square is less than the tabular value which makes the null hypothesis accepted.

30Chapter 5SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONSThis chapter deals with the summary of the findings together with the conclusions and recommendations derived from the findings of the study.This study was conducted to identify the relationship between carbonated drinks and health drinks to the consumer preference by the the selected households of Barangay Macabling in the City of Santa Rosa, Laguna.Specifically, the study sought to answer the following questions:1. Which of the two drinks the respondents preferred?1. Carbonated Drinks1. Health Drinks2. What factors do respondents consider in buying their preferred drinks in terms of:2.1Price2.2Taste2.3Advertisement3. Is there any significant relationship between the two different beverages?This study made use of the descriptive method of research, the questionnaire as the primary data gathering instrument. Respondents were from the selected households of Barangay Macabling in the City of Santa Rosa, Laguna.

31FindingsBased on the data gathered in this study, the following findings were drawn up:1. The study revealed that sixty seven percent (67%) of the respondents preferred to buy carbonated drinks; and thirty three percent (33%) preferred to buy health drinks.2.Factors that affect the consumers preferences in buying their preferred drinks in terms of:a) Price. It was found out that respondents preferred carbonated drinks than health drinks in terms of price. b) Taste. It was discovered that respondents preferred health drinks than carbonated drinks in terms of taste.c) Advertisement. It was found out that carbonated drinks are preferred by the respondents than health drinks in terms of advertisement.To top it all, the first factor why respondents prefer to buy carbonated drinks was the price (4.07), followed closely by taste (4.06), then promotion (3.81), and the last factor they consider was the color (3.74).The first factor why respondents prefer to buy health drinks was the taste (4.07), next was the price (3.78), then the color (3.74), last factor they consider was promotion (3.72).

323. There is no significant relationship between the carbonated drinks and health drinks as to the consumer preference of the respondents. This showed that the relationship between carbonated drinks and health drinks did not affect their consumer preference.ConclusionsThe findings of the study revealed that households of Barangay Macabling in the City of Santa Rosa, Laguna highly preferred to buy Carbonated Drinks than Health Drinks.It was shown that they preferred buying carbonated drinks because of its price. It was followed by the taste and the least factor that affects their buying preference is the advertisement of the different beverages companies.When it comes to health drinks, price mostly affects the consumer preference in buying it. It was followed by the taste and lastly the advertisement of it.To top it all, this study shown that the households of Barangay Macabling mostly affects their consumer preference in buying both carbonated drinks and health drinks in terms of Price.RecommendationIn view of the findings and conclusions thereof, the following are recommended:Several recommendations can be made as a result for conducting this study. First, the companies must concentrate on creating more awareness level for health drinks although it is quite familiar to consumers but not quite as popular as carbonated drinks. Second, companies should focus in improving and using appropriate marketing techniques in terms of price, and taste thereby increasing the demand for health drinks. And lastly, in companies aspect, this study is worthy to use to determine and to develop the possible new marketing strategies and alternatives considering the factors of the two drinks, namely the carbonated drinks and health drinks.

33