THESIS (Chapter 1 Full)

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 Philippines

Santa Rosa, Laguna

In Partial Fulfillment of the Requirements for the Degree Bachelor in Business Administration

Major in Marketing Management

ByFevelyn D. Bucio

Jessica Lorraine D. De BorjaMariel Danica M. Galasao

Ressie S. OrzoMark Anthony P. Tambor

Angelita E. Nocon, MSubject Facilitator

April 2015

1

Chapter ITHE PROBLEM AND ITS BACKGROUND

Introduction

Beverages and drinks are liquids specifically prepared for human consumption. In

addition to basic needs, beverages form part of the culture of 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

2

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.

According 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.

3

Background of the Study

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 11 th 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.

4

Theoretical Framework

Theory of Consumer Preference

In microeconomics, the theory of consumer preference relates choices (for the

consumption of both goods and services) to consumption expenditures; ultimately, this

relationship between preferences and consumption expenditures is used to relate

preferences to consumer demand curves. The link between personal preferences,

consumption, and the demand curve is one of the most closely studied relations in

economics. Consumer choice theory is a way of analyzing how consumers may

achieve equilibrium between preferences and expenditures by maximizing utility as

subject to consumer budget constraints.

Preferences are the desires by each individual for the consumption of goods and

services that translate into choices based on income or wealth for 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. The models that make up consumer

theory are used to represent prospectively observable demand patterns for an individual

buyer on the hypothesis of 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.

http://en.wikipedia.org/wiki/Hypothesis

http://en.wikipedia.org/wiki/Mathematical_problem

http://en.wikipedia.org/wiki/Model_(economics)

http://en.wikipedia.org/wiki/Economic_wealth

http://en.wikipedia.org/wiki/Budget_constraint

http://en.wikipedia.org/wiki/Utility

http://en.wikipedia.org/wiki/Equilibrium_(economics)

http://en.wikipedia.org/wiki/Demand_curve

http://en.wikipedia.org/wiki/Supply_and_demand

http://en.wikipedia.org/wiki/Preference_(economics)

http://en.wikipedia.org/wiki/Preference_(economics)

http://en.wikipedia.org/wiki/Good_(economics)

http://en.wikipedia.org/wiki/Microeconomics

5

The 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 Consumer’s Preference by Herbert Scarf

Theory of Consumer’s 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

http://en.wikipedia.org/wiki/Income%E2%80%93consumption_curve

http://en.wikipedia.org/wiki/Income%E2%80%93consumption_curve

http://en.wikipedia.org/wiki/Substitute_good

6

interest rate, which predicts a decreasing ratio of expenditure to wealth for all market

interest rates.

Jonathan Levin and Paul Milgrom Consumer Theory

Consumer 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 consumer’s choice sets

sets are assumed to be defined by certain prices and the consumer’s income or wealth.

7

Conceptual Framework

Fig. 1 Paradigm of the Study

This 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, color, and promotion. 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 as

perceived by households of Barangay Macabling in the City of Santa Rosa, Laguna.

INPUT

Preferred drinks of the respondents in terms of:

1. Carbonated Drinks

2. Health Drinks

Factors that affect buying behavior of consumers between carbonated drinks and health drinks

2.1 Price2.2 Taste2.3 Color2.4 Promotion

PROCESS

Assessment of Factors of Consumer Preferences through

1.1 Survey Questionnaires

1.2 Interview

1.3 Observation

OUTPUT

Significant relationship between the two different beverages to the consumer preference

FEEDBACK LOOP

8

Statement of the Problem

This study aims to determine the relationship between carbonated drinks and

health drinks to the consumer preference as perceived by 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:


2. Health Drinks

2. What factors do respondents consider in buying their preferred drinks in terms of:

2.1 Price

2.2 Taste

2.3 Color

2.4 Promotion

3. Is there any significant relationship between the two different beverages?

Hypothesis

There is no significant relationship between the carbonated drinks and health

drinks to the consumer preference as perceived by selected households of Barangay

Macabling in the City of Santa Rosa, Laguna.

9

Significance of the Study

Other Researchers

The study will benefit the other researchers that will add to the growing body of

information in 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 Distributors

The study will help the beverage companies and distributors to improve and to

think of new innovations in their products to increase customer satisfaction.

Beverage patrons

The 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 Limitations

This research study focus on the relationship between carbonated drinks and

health drinks to the consumer preference as perceived by households of Barangay

Macabling in the City of Santa Rosa, Laguna in terms of price, taste, color, and

promotion.

The samples were taken from the households with a total of 3920, but only 363

individuals were selected for the study.

10

Definition of Terms

Terms 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.

Carbonated drink is a beverage that has had carbon dioxide dissolved 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.

11

Outlet is a brick and mortar or online retail store in which manufacturers sell their stock

directly to the public.

Product Development is a system of defined steps and tasks such as strategy,

organization, concept generation, marketing plan creation, evaluation, and

commercialization of a new product.

Purchase Behavior is the decision processes and acts of people involved in buying and using

products.

Vast is of very great extent or quantity, immense.

12

Chapter II

THE REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature

(De Mooij, p. 20-21) In his book, he defined Consumer Behavior as the study of

the processes involved when people select, purchase, use, or dispose of products,

services, ideas, or experiences to satisfy needs and desires.

The components of human behavior can be summarized as what people are

(“Who am I?”), the self and personality, defined by people’s attributes and traits (“What

sort of person am I?”), how people feel, how people think and learn, and what people do.

The terms of the social sciences for feelings, learning and doing are affect, cognition, and

behavior. These elements are included in the definition of consumer behavior of the

American Marketing Association as “the dynamic interaction of affect and cognition,

behavior, and the environment by which human beings conduct exchange aspects of their

lives.”

Hawkins and Mothersbaugh (2010) discussed that it is not possible to select target

markets without simultaneously formulating a general marketing strategy for each

segment. Since customer value is delivered by the marketing strategy, the firm must

develop its general marketing strategy as it evaluates potential target markets. It is the

formulation of a consistent marketing mix. The marketing mix is the product, price,

communications, distribution, and services provided to the target market. It is the

combination of these elements that meets customer needs and provides customer value.

13

Product - is anything a consumer acquires or might acquire to meet a

perceived need. Consumers are generally buying need satisfaction, not

physical product attributes.

Communications – Marketing Communications include advertising, the

sales force, public relations, packaging, and any other signal that the firm

provides about itself and its products. An effective communications

strategy requires answers to the following questions:

1. With whom, exactly, do we want to communicate?

2. What effect do we want our communication to have on the target

audience?

3. What message will achieve the desired effect on our audience?

4. What means and media should we use to reach the target audience?

5. When should we communicate with the target audience?

Price – is the amount of money one must pay to obtain the right to use the

product. One can buy ownership of a product or, for many products, limited usage

rights. Economists often assume that lower prices for the same product will result

in more sales than higher prices. However, price sometimes serves as a signal of

quality. A product priced “too low” might be perceived as having low quality.

Owning expensive items also provides information about the owner. If nothing

else, it indicates that the owner can afford the expensive item. This is a desirable

feature to some consumers.

14

It is important to note that the price of a product is not the same as the

cost of the product to the customer. Consumer cost is everything the consumer

must surrender in order to receive the benefits of owning/using the product.

Distribution – having the product available where the target customers can buy

it, is essential to success. Only in rare cases will customers go to much trouble to

secure a particular brand. Obviously, good channel decisions require a sound

knowledge of where target customers shop for the product.

Service – refers to auxiliary or peripheral activities that are performed to enhance

the primary product or primary service. Auxiliary services cost money to provide.

Therefore, it is essential that the firm furnish only those services that provide

value to the the target customers. Providing services that customers do not value

can result in high cost and high prices without a corresponding increase in

customer value.

(Hawkins and Mothersbaugh, p. 23) said that the consumer decision process

intervenes between the marketing strategy and the outcomes. That is, the outcomes of the

firm’s marketing strategy are determined by its interaction with the consumer decision

process. The firm can succeed only if consumers see a need that its product can solve,

become aware of the product and its capabilities, decide that it is the best available

solution, proceed to buy it, and become satisfied with the results of the purchase.

Rowlands (2013) said that Economic Adversity has intensified price sensitivity

and reduced brand loyalty. More and more consumers are making buying decisions based

purely on value for money. As a result, carbonated drink brand owners are being forced

15

into a situation where price deals and discounts are becoming the norm, rather than

occasional devices to heighten consumer awareness and raise product loyalty. In respect

of producers, besides reducing prices, another recession-busting strategy has been to

downsize, introducing slightly smaller sized packs to keep prices low without relying on

discounts.

(Oliver, p. 8) defined satisfaction as the consumer’s fulfillment response. It is a

judgement that a product/ service feature, or the product or service itself, provided (or is

providing) a pleasurable level of consumption-related fulfillment, including levels of

under- or overfulfillment.

Foreign Studies

In 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.

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,

16

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".

Vijay (2010) revealed that it is inferred that consumption of carbonated drinks

rank first, second is the Attractive package enhancing the consumer to buy and the third,

carbonated drinks really give lift to the consumers. It can be observed that the

respondent’s preferences on the likeliness of carbonated drinks varied significantly based

on Age. As the age of the consumers ascends, the preferences over the carbonated drinks

come down.

Abarajithan 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 P’s. The four P’s are product, price, place and promotion

(Kotler, Armstrong; 2010). The study showed that of these dimensions, the marketer’s

product mix, promotional mix and distributional strategies have a high influence on the

switching decision, whereas price strategy plays a moderate role.

Another study compared the results of brand loyalty among soft-drink consumers

in Kenya and India (Mise, Nair, Odera, Ogutu, 2013). The findings reveal that the

majority of Indian soft-drink consumers were truly loyal and not brand switchers.

17

Therefore, Kenyan soft-drink consumers are indifferent buyers compared to Indian

consumers who are mostly truly loyal.

Local Literature

Euromonitor 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.

18

Young 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 Studies

Rowland (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.

19

The 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 company’s growing

profit in the country.

20

Chapter III

METHODOLOGY 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 Method

Descriptive 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 Size

The 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.

21

To determine the sample size of the total population the researcher used:

Sloven’s Formula

Nn =

1 + Ne2

Where:

n = number of sample

N = total population

1 = constant

e = 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

22

The researchers have three hundred sixty-three (363) respondents from the

selected households of Barangay Macabling in the City of Santa Rosa, Laguna.

Instrumentation

The 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 as perceived by selected households of Barangay Macabling in the City of

Santa Rosa, Laguna.

WEIGHTED MEAN VERBAL INTERPRETATION

4.50 – 5.00 Highly Preferred

3.40 – 4.49 Preferred

2.60 – 3.39 Slightly Preferred

1.80 – 2.59 Less Preferred

1.00 – 1.79 Not Preferred

Data Gathering Procedure

The researcher will use the following data gathering procedure for the study. First,

the researchers will observe the consumers of the two beverages in Barangay Tagapo

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

23

books and published materials related to the study. The researcher of the study has

chosen the random sampling.

Statistical Treatment of Data

The 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 Sloven’s

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.

Sloven’s Formula:

Nn =

1 + Ne2

Where:

n = Number of sample

N = Total population

1 = Constant

e = Margin of error (5%)

24

Frequency and Percentage Formula:

% = f/n (100)

Where:

% = Percentage

f = Frequency

n = Number of total respondents

Weighted Mean Formula:

WM = Ʃfiwi

Ʃwi

Where:

f = Frequency

n = Number of samples

w = Weight factor

Chi-square Test Formula:

X2 = Ʃ (o−e )2

e

Where:

O = Observed frequency

E = Expected frequency

∑ = Summation

X2 = Chi Square value

25

Chapter IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This 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 1

PREFERRED DRINKS OF THE RESPONDENTS

Drinks Frequency Percentage

Carbonated Drinks 243 67%

Health Drinks 120 33%

Total 363 100%

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.

26

Table 2

Factors that Affect the Consumers’ Preferences in Buying Carbonated

Drinks in terms of Price

Level Q1 Q2 Q3 Q4 Q5 f % F % F % F % f %

5180 50 99 27

143 39

132 36

145 40

4101 28

188 52

112 31

157 43

140 39

3 67 18 52 14 95 26 46 13 51 142 12 3 21 6 4 1 10 3 15 41 3 1 3 1 9 2 18 5 12 3

Total363 100

363 100

363 100

363 100

363 100

The table shows the factors that affect the consumers’ preferences in buying carbonated

drinks in terms of price. In Question 1, out of three hundred sixty three (363)

respondents, one hundred eighty (180) or fifty percent (50%) are highly preferred; and

three (3) or one percent (1%) is not preferred. In Question 2, one hundred eighty eight

(188) or fifty two percent (52%) are preferred; and three (3) or one percent (1%) is not

preferred. In Question 3, one hundred forty three (143) or thirty nine percent (39%) are

highly preferred; and four (4) or 1 percent is less preferred. In Question 4, one hundred

fifty seven (157) or forty three percent (43%) are preferred; and ten (10) or three percent

(3%) are less preferred. And in Question 5, one hundred forty five (145) or forty (40%)

are highly preferred; and twelve (12) or three percent (3%) are not preferred.

27

Table 3


Drinks in terms of Taste

Level Q1 Q2 Q3 Q4 Q5 f % F % F % F % F %

5182 50

124 34

134 37

142 39

108 30

4123 34

157 43

153 42

149 41

108 30

3 52 14 64 18 61 17 57 16 98 272 3 1 12 3 12 3 9 2 31 91 3 1 6 2 3 1 6 2 18 5

Total363 100

363 100

363 100

363 100

363 100


drinks in terms of taste. In Question 1, out of three hundred sixty three (363) respondents,

one hundred eighty two (182) or fifty percent (50%) are highly preferred; and three (3) or

one percent (1%) is not preferred. In Question 2, one hundred twenty four (124) or thirty

four percent (34%) are highly preferred; and six (6) or two percent (2%) are not

preferred. In Question 3, one hundred thirty four (134) or thirty seven percent (37%) are

highly preferred; and three (3) or one percent (1) is less preferred. In Question 4, one

hundred forty two (142) or thirty nine percent (39%) are preferred; and six (6) or two

percent (2%) are less preferred. And in Question 5, one hundred eight (108) or thirty

(30%) are highly preferred; and eighteen (18) or five percent (5%) are not preferred.

28

Table 4

Factors that Affect the Co nsumers’ Preferences in Buying Carbonated

Drinks in terms of Color

Level Q1 Q2 Q3 Q4 Q5 F % F % F % F % f %

5102 28 83 23

101 28

117 32 77 21

4167 46

124 34

158 44

128 35

134 37

3 65 18107 29 76 21 72 20

109 30

2 15 4 37 10 16 4 22 6 28 81 14 4 12 3 12 3 24 7 15 4

Total363 100

363 100

363 100

363 100

363 100


drinks in terms of color. In Question 1, out of three hundred sixty three (363)

respondents, one hundred two (102) or fifty percent (28%) are highly preferred; and

fourteen (14) or four percent (4%) are not preferred. In Question 2, eighty three (83) or

twenty three percent (23%) are highly preferred; and twelve (12) or three percent (3%)

are not preferred. In Question 3, one hundred one (101) or twenty eight percent (28%) are

highly preferred; and twelve (12) or three percent (3) are less preferred. In Question 4,

one hundred seventeen (117) or thirty two (32%) are preferred; and twenty four (24) or

29

seven percent (7%) are less preferred. And in Question 5, seventy seven (77) or twenty

one (21%) are highly preferred; and fifteen (15) or four percent (4%) are not preferred.

Table 5


Drinks in terms of Promotion

Level Q1 Q2 Q3 Q4 Q5 f % F % F % F % f %

5133 37 91 25

112 30

114 31

106 29

4107 29

146 40

129 36

143 39

123 34

3 82 23 90 25 81 22 81 22 98 272 20 6 24 7 25 7 19 5 22 61 21 6 12 3 16 4 6 2 14 4

Total363 100

363 100

363 100

363 100

363 100


drinks in terms of promotion. In Question 1, out of three hundred sixty three (363)

respondents, one hundred thirty three (133) or thirty seven percent (37%) are highly

preferred; and twenty one (21) or six percent (6%) are not preferred. In Question 2,

ninety one (91) or twenty five percent (25%) are highly preferred; and twelve (12) three

percent (3%) are not preferred. In Question 3, one hundred twelve (112) or thirty percent

(30%) are highly preferred; and sixteen (16) or four percent (4) are less preferred. In

30

Question 4, one hundred fourteen (114) or thirty one percent (31%) are preferred; and six

(6) or two percent (2%) are less preferred. And in Question 5, one hundred six (106) or

twenty nine (29%) are highly preferred; and fourteen (14) or four percent (4%) are not

preferred.

Table 6

Factors that Affect the Consumers’ Preferences in Buying Health Drinks in

terms of Price

Level Q1 Q2 Q3 Q4 Q5 f % F % F % F % F %

5119 33 99 27

115 32

137 38

101 28

4152 42

176 48

106 29

134 37

155 43

3 71 20 67 18106 29 59 16 74 20

2 18 5 12 3 24 7 15 4 24 71 3 1 9 2 12 3 18 5 9 2

Total363 100

363 100

363 100

363 100

363 100

The table shows the factors that affect the consumers’ preferences in buying health drinks

in terms of price. In Question 1, out of three hundred sixty three (363) respondents, one

hundred nineteen (119) or thirty three percent (33%) are highly preferred; and three (3) or

one percent (1%) is not preferred. In Question 2, ninety nine (99) or twenty seven percent

31

(27%) are highly preferred; and nine (9) or two percent (2%) are not preferred. In

Question 3, one hundred fifteen (115) or thirty two percent (32%) are highly preferred;

and twelve (12) or three percent (3) are less preferred. In Question 4, one hundred thirty

seven (137) or thirty nine percent (38%) are preferred; and eighteen (18) or five percent

(5%) are less preferred. And in Question 5, one hundred one (101) or twenty eight (28%)

are highly preferred; and nine (9) or two percent (2%) are not preferred.

Table 7


terms of Taste

Level Q1 Q2 Q3 Q4 Q5 F % F % F % f % f %

5144 40 93 26

134 37 94 26

176 48

4144 40

190 53

136 37

179 49

120 33

3 63 17 53 15 90 25 69 19 45 122 12 3 12 3 3 1 15 4 10 31 0 0 15 4 0 0 6 2 12 3

Total363 100

363 100

363 100

363 100

363 100


in terms of taste. In Question 1, out of three hundred sixty three (363) respondents, one

hundred forty four (144) or forty percent (40%) are highly preferred; and zero (0) or zero

32

percent (0%) is not preferred. In Question 2, ninety three (93) or twenty six percent

(26%) are highly preferred; and fifteen (15) or four percent (4%) are not preferred. In

Question 3, one hundred thirty four (134) or thirty seven percent (37%) are highly

preferred; and zero (0) or zero percent (0) is less preferred. In Question 4, one hundred

thirty seven (137) or twenty six percent (26%) are preferred; and six (6) or two percent

(2%) are less preferred. And in Question 5, one hundred seventy six (176) or forty eight

(48%) are highly preferred; and twelve (12) or three percent (3%) are not preferred.

Table 8


terms of Color

Level Q1 Q2 Q3 Q4 Q5 F % F % F % f % F %5 99 27 85 23 77 21 68 19 80 22

4160 44

143 39

151 42

146 40

170 47

3 74 20 88 24108 30

109 30 78 21

2 24 7 25 7 12 3 27 7 26 71 6 2 22 6 15 4 13 4 9 2

Total363 100

363 100

363 100

363 100

363 100


in terms of color. In Question 1, out of three hundred sixty three (363) respondents,

33

ninety nine (99) or twenty seven percent (27%) are highly preferred; and six (6) or two

percent (2%) are not preferred. In Question 2, eighty five (85) or twenty three percent

(23%) are highly preferred; and twenty two (22) or six percent (6%) are not preferred. In

Question 3, seventy seven (77) or twenty one percent (21%) are highly preferred; and

fifteen (15) or four percent (4) are less preferred. In Question 4, sixty eight (68) or

nineteen percent (19%) are preferred; and thirteen (13) or four percent (4%) are less

preferred. And in Question 5, eighty (80) or twenty two (22%) are highly preferred; and

nine (9) or two percent (2%) are not preferred.

Table 9


terms of Promotion

Level Q1 Q2 Q3 Q4 Q5 f % F % F % f % F %

5115 32 87 24 77 21

103 28 76 21

4113 31

154 42

144 40

143 39

139 38

3 86 24 86 24100 28 67 18 96 26

2 34 9 21 6 33 9 32 9 32 91 15 4 15 4 9 2 18 5 20 6

Total363 100

363 100

363 100

363 100

363 100

34


in terms of promotion. In Question 1, out of three hundred sixty three (363) respondents,

one hundred fifteen (115) or thirty two percent (32%) are highly preferred; and fifteen

(15) or four percent (4%) are not preferred. In Question 2, eighty seven (87) or twenty

four percent (24%) are highly preferred; and fifteen (15) or four percent (4%) are not

preferred. In Question 3, seventy seven (77) or twenty one percent (21%) are highly

preferred; and nine (9) or two percent (2) are less preferred. In Question 4, one hundred

three (103) or twenty eight percent (28%) are preferred; and eighteen (18) or five percent

(5%) are less preferred. And in Question 5, seventy six (76) or twenty one (21%) are

highly preferred; and twenty (20) or six percent (6%) are not preferred.

Table 10

Factors that Affect the Consumers’ Preference in Buying Carbonated Drinks in Terms of Price

I. PriceWeighted

MeanRank

Verbal Interpretation

a. I buy this drink because it is affordable.

4.22 1 Preferred

b. I buy this drink because it suits my allowance.

3.99 5 Preferred

c. I buy this drink because I can buy a bulk of it with lower price.

4.04 3 Preferred

d. I buy this drink because of promos and discounts.

4.03 4 Preferred

35

e. I buy this drink because it is worth the price I pay for it.

4.08 2 Preferred

General Weighted Mean 4.07 Preferred

Table 1 shows that the consumer preference in buying carbonated drinks of the

respondents in terms of price is preferred with a general weighted mean of 4.07. The

statement “I buy this drink because it is affordable” ranked 1st (WM= 4.22 and VI=

Preferred); “I buy this drink because it is worth the price I pay for it” ranked 2 nd (WM=

4.08 and VI= Preferred); “I buy this drink because I can buy a bulk of it with lower price”

ranked 3rd (WM= 4.04 and VI= Preferred); “I buy this drink because of promos and

discounts” ranked 4th (WM= 4.03 and VI= Preferred); “I buy this drink because it suits

my allowance” ranked last (WM= 3.99 and VI= Preferred).

Table 11

Factors that Affect the Consumers’ Preference in Buying Carbonated Drinks in Terms of Taste

II. TasteWeighted

MeanRank


a. I enjoy this drink because of its sweet taste.

4.32 1 Preferred

b. I enjoy this drink because of its delicious taste.

4.05 4 Preferred

c. I enjoy this drink because of my favorite flavor.

4.11 2 Preferred

d. I enjoy this drink because it meets the taste I want.

4.13 3 Preferred

e. I enjoy this drink because it suits to my diet.

3.71 5 Preferred

36



respondents in terms of taste is preferred with a general weighted mean of 4.06. the

statement “I enjoy this drink because of its sweet taste” ranked 1st (WM= 4.32 and VI=

Preferred); “ I enjoy this drink because of my favorite flavor” ranked 2nd (WM= 4.11 and

VI= Preferred); “I enjoy this drink because it meets the taste I want” ranked 3 rd (WM=

4.13 and VI= Preferred); “I enjoy this drink because of its delicious taste” ranked 4 th

(WM= 4.05 and VI= Preferred); and “I enjoy this drink because it suits to my diet”

ranked last (WM= 3.71 and VI= Preferred).

Table 12

Factors that Affect the Consumers’ Preference in Buying Carbonated Drinks in Terms of Color

III. ColorWeighted

MeanRank


a. I like this drink because of its attractive color.

3.90 1 Preferred

b. I like this drink because it is colorless.

3.47 5 Preferred

c. I like this drink because it is my favorite color.

3.88 2 Preferred

d. I like this drink because of its dark color.

3.80 3 Preferred

e. I like this drink because 3.63 4 Preferred

37

of its mild color.



respondents in terms of color is preferred with a general weighted mean of 3.74. The

statement “I like this drink because of its attractive color” ranked 1 st (WM= 3.90 and VI=

Preferred); “I like this drink because it is my favorite color” ranked 2nd (WM= 3.88 and

VI= Preferred); “I like this drink because of its dark color” ranked 3rd (WM= 3.80 and

VI= Preferred); “I like this drink because of its mild color” ranked 4 th (WM= 3.63 and

VI= Preferred); and “I like this drink because it is colorless” ranked last (WM= 3.47 and

VI= Preferred).

Table 13

Factors that Affect the Consumers’ Preference in Buying Carbonated Drinks in Terms of Promotion

IV. PromotionWeighted

MeanRank


a. I am encouraged to buy this drink based on the artist they used as their endorser.

3.86 2 Preferred

b. I am encouraged to buy this drink because of their advertisement.

3.77 4 Preferred

c. I am encouraged to buy this drink because of its popular advertisement.

3.72 5 Preferred

38

d. I am encouraged to buy this drink because it is my favorite brand.

3.94 1 Preferred

e. I am encouraged to buy this drink based on what is being advertised in television and other forms of media.

3.79 3 Preferred



respondents in terms of promotion is preferred with a general weighted mean of 3.81. The

statement “I am encouraged to buy this drink because it is my favorite brand” ranked 1st

(WM= 3.94 and VI= Preferred); “I am encouraged to buy this drink based on the artist

they used as their endorser” ranked 2nd (WM= 3.86 and VI= Preferred); “I am encouraged

to buy this drink based on what is being advertised in television and other forms of

media” ranked 3rd (WM= 3.79 and VI= Preferred); “I am encouraged to buy this drink

because of their advertisement” ranked 4th (WM= 3.77 and VI= Preferred); and “I am

encouraged to buy this drink because of its popular advertisement” ranked last (WM=

3.72 and VI= Preferred).

Table 14

Factors that Affect Consumers’ Preference in Buying Health Drinks in Terms of Price

I. PriceWeighted

MeanRank


a. I buy this drink because it is affordable.

4.01 1 Preferred

b. I buy this drink because it suits my allowance.

3.95 3 Preferred

39

c. I buy this drink because I can buy a bulk of it with lower price.

3.12 5 Slightly Preferred

d. I buy this drink because of promos and discounts.

3.98 2 Preferred

e. I buy this drink because it is worth the price I pay for it.

3.87 4 Preferred


Table 5 shows that the consumer preference in buying health drinks of the

respondents in terms of price is preferred with a general weighted mean of 3.78. the

statement “I buy this drink because it is affordable” ranked 1st (WM= 4.01 and VI=

Preferred); “I buy this drink because of promos and discounts” ranked 2nd (WM= 3.98

and VI= Preferred); “I buy this drink because it suits my allowance” ranked 3rd (WM=

3.95 and VI= Preferred); “I buy this drink because it is worth the price I pay for it”

ranked 4th (WM= 3.87 and VI= Preferred); and “I buy this drink because I can buy a bulk

of it with lower price” ranked last (WM= 3.12 and VI= Slightly Preferred).

Table 15

Factors that Affect Consumers’ Preference in Buying Health Drinks in Terms of Taste

II. TasteWeighted

MeanRank


a. I enjoy this drink because of its sweet taste.

4.16 2 Preferred

b. I enjoy this drink because of its delicious taste.

3.92 5 Preferred

c. I enjoy this drink because of my favorite flavor.

4.10 3 Preferred

d. I enjoy this drink because it meets the taste I want.

3.94 4 Preferred

e. I enjoy this drink because it suits to my diet.

4.21 1 Preferred

40



respondents in terms of taste is preferred with a general weighted mean of 4.07. The

statement “I enjoy this drink because it suits to my diet” ranked 1 st (WM= 4.21 and VI=

Preferred); “I enjoy this drink because of its sweet taste” ranked 2nd (WM= 4.16 and VI=

Preferred); “I enjoy this drink because of my favorite flavor” ranked 3rd (WM= 4.10 and

VI= Preferred); “I enjoy this drink because it meets the taste I want” ranked 4 th (WM=

3.94 and VI= Preferred); and “I enjoy this drink because of its delicious taste” ranked last

(WM= 3.92 and VI= Preferred).

Table 16

Factors that Affect Consumers’ Preference in Buying Health Drinks in Terms of Color

III. ColorWeighted

MeanRank


a. I like this drink because of its attractive color.

3.89 1 Preferred

b. I like this drink because it is colorless.

3.67 4 Preferred

c. I like this drink because it is my favorite color.

3.72 3 Preferred

d. I like this drink because of its dark color.

3.63 5 Preferred

e. I like this drink because 3.79 2 Preferred

41

of its mild color.


Table 7 shows that the consumer preference in buying health drinks of the respondents

in terms of color is preferred with a general weighted mean of 3.74. The statement “I like

this drink because of its attractive color” ranked 1st (WM= 3.89 and VI= Preferred); “I

like this drink because of its mild color” ranked 2nd (WM= 3.79 and VI= Preferred); “I

like this drink because it is my favorite color” ranked 3rd (WM= 3.72 and VI= Preferred);

“I like this drink because it is colorless” ranked 4th (WM= 3.67 and VI= Preferred); and “I

like this drink because of its dark color” ranked last (WM= 3.63 and VI= Preferred).

Table 17

Factors that Affect Consumers’ Preference in Buying Health Drinks in Terms of Promotion

IV. PromotionWeighted

MeanRank


a. I am encouraged to buy this drink based on the artist they used as their endorser.

3.77 1 Preferred

b. I am encouraged to buy this drink because of their advertisement.

3.76 3 Preferred

c. I am encouraged to buy this drink because of its popular advertisement.

3.68 4 Preferred

42

d. I am encouraged to buy this drink because it is my favorite brand.

3.77 2 Preferred

e. I am encouraged to buy this drink based on what is being advertised in television and other forms of media.

3.60 5 Preferred



respondents in terms of promotion is preferred with a general weighted mean of 3.72. the

statement “I am encouraged to buy this drink based on the artist they used as their

endorser” ranked first (WM= 3.77 and VI= Preferred); “I am encouraged to buy this

drink because it is my favorite brand” ranked 2nd (WM= 3.77 and VI= Preferred); “I am

encouraged to buy this drink because of their advertisement” ranked 3 rd (WM= 3.76 and

VI= Preferred); “I am encouraged to buy this drink because of its popular advertisement”

ranked 4th (WM= 3.68 and VI= Preferred); and “I am encouraged to buy this drink based

on what is being advertised in television and other forms of media” ranked last (WM=

3.60 and VI= Preferred).

Table 18

CHI-SQUARE

df = 3; Tabular Value = 7.81

Drinks Price Taste Color Promotion Total(O-E)^2/E (O-E)^2/E (O-E)^2/E (O-E)^2/E

Carbonated Drinks

0.002035176

0.000390244 0.000659631 0.000000000

0.003085050

43

Health Drinks

0.002093023

0.0004 0 0.000000000

0.002493023

Total 0.005578074

Table 19

DEGREE OF FREEDOM

Test Degree of

Freedom

A X2 Hypothesis Interpretation

Is there any significant relationship between the different beverages?

3 0.07 0.0056 Accepted Accept the Null

Hypothesis

The table shows the degree of freedom with the computed chi-square of 0.0056

with the tabular value of 7.81. This means that the computed chi-square is less than the

tabular value which makes the null hypothesis accepted.

Chapter 5

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This 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 as perceived by the selected households of


44

Specifically, the study sought to answer the following questions:

1. Which of the two drinks the respondents preferred?


2. Health Drinks

2. What factors do respondents consider in buying their preferred drinks in terms of:

2.1 Price

2.2 Taste

2.3 Color

2.4 Promotion

3. 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


Findings

Based 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.

45

2. Factors that affect the consumers’ preferences in buying their preferred drinks in

terms of:

a) Price. It was found out that respondents highly preferred carbonated drinks than

health drinks in terms of price.

b) Taste. It was discovered that respondents highly preferred health drinks than

carbonated drinks in terms of taste.

c) Color. It was revealed that respondents highly preferred both the carbonated

drinks and health drinks in terms of color.

d) Promotion. It was found out that carbonated drinks are highly preferred by the

respondents than health drinks in terms of promotion.

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).

3. 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.

Conclusions

Preferred Drinks of the Respondents

46

The study shows that 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.

Meaning, in the said research conducted; there are more consumers who preferred

carbonated drinks in the survey than the health drinks.

Factors that Affect the Consumer’s Preferences in Buying Carbonated Drinks and Health

Drinks in Terms of Price

In Question 1, the sum of the weighted mean of both carbonated drinks and health

drinks is 8.23, having a weighted mean of 4.07 and interpreted as preferred. While in

Question 2, the sum of the weighted mean of both carbonated drinks and health drinks is

7.94, having a weighted mean of 3.99 and interpreted as preferred. In Question 3, the sum

of the weighted mean of both carbonated drinks and health drinks is 7.16, having a

weighted mean of 4.04 and interpreted as preferred. While in Question 4, the sum of the

weighted mean of both carbonated drinks and health drinks is 8.01, having a weighted

mean of 4.03 and interpreted as preferred. Lastly, in Question 5, the sum of the weighted

mean of both carbonated drinks and health drinks is 7.95, having a weighted mean of

4.08 and interpreted as preferred.

This aspect shows that almost all of the participants mostly preferred carbonated

drinks than health drinks in terms of price.


Drinks in Terms of Taste

47

In Question 1, the sum of the weighted mean of both carbonated drinks

and health drinks is 8.48, having a weighted mean of 4.32 and interpreted as preferred.

While in Question 2, the sum of the weighted mean of both carbonated drinks and health

drinks is 7.97, having a weighted mean of 4.05 and interpreted as preferred. In Question

3, the sum of the weighted mean of both carbonated drinks and health drinks is 8.21,

having a weighted mean of 4.11 and interpreted as preferred. While in Question 4, the

sum of the weighted mean of both carbonated drinks and health drinks is 8.07, having a

weighted mean of 4.13 and interpreted as preferred. Lastly, in Question 5, the sum of the


mean of 4.21 and interpreted as preferred.

This aspect shows that almost all of the participants mostly preferred health drinks

than carbonated drinks in terms of taste.


Drinks in Terms of Color









48



This aspect shows that almost all of the participants both preferred carbonated

drinks and health drinks in terms of color.


Drinks in Terms of Promotion











This aspect shows that almost all of the participants mostly preferred carbonated

drinks than health drinks in terms of promotion.

Recommendations

In view of the findings and conclusions thereof, the following are recommended:

49

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, color and promotion 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.

Documents

THESIS (Chapter 1 Full)