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

W hy are people fond of drinking teas with different varieties of flavors and
combinations? Nowadays, people are more adventurous and love to try new taste
and experiment on new flavors. They adore everything that is new, exciting and beneficial
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 flavorful variations.
Like wines, each tea takes its name from the district in which it is grown, and each district
produces tea with unique flavor 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 benefits. It contains flavonoids,
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-inflammatory and germicidal of the marketers is the satisfy consumers to have a repeat business, thus having regular
properties. patrons and creating customer loyalty. To attain this, companies must take into account
There are lots different kinds of teas, but the most popular are Green tea the different buying behavior of the consumers.
and Black tea since both are known to lower the risk of cancer. Tea contains potent Consumer buying behavior is the conduct of individuals regarding on the decisions
antioxidants called polyphenols. And studies have shown that catechins, the polyphenols they have in mind on spending their resources for goods and services. These behaviors
most prevalent in green and black tea, are great in suppressing free radicals, even better are usually uncontrollable by the marketers since it is very versatile and changes rapidly in
than vitamins C or E. Also, the catechins are found to prevent tooth decay. Tea also has a short period of time. Buyer characteristics include four major factors: cultural, social,
antibacterial properties that help strengthen the immune system. Many point to Taiwan personal, and psychological factors. Cultural factors contain the culture and subculture
as the source for the very popular Milk tea. Eventually it gained its popularity after it was where the consumers are from. It includes the basic values, perceptions, preferences
featured in a Japanese show. With new stores coming up every now and then, the milk tea and behaviors that a person learns from family and other key institutions. Social factors
industry in the country will most likely linger and continue to be a favorite. also influence a buyer’s behavior. A person’s reference groups – family, friends, social
A versatile drink, milk tea comes in many variations of flavor and color (the most organizations, and professional associations strongly affect product and brand choices.
common of which is served cold rather than hot). Due to its flexibility, it is fast becoming Also, psychological factors like motivation, perception, learning, and beliefs and attitudes
one of the most popular tea drinks in the world. As the tea industry develops, there is an that provide a different insight to understand the buyer’s mind. And lastly, the buyer’s
increase in the number of milk tea stores all over the world and among any other milk tea age, life-cycle stage, occupation, education and economic circumstances are personal
stores, ZEN TEA is the only one who provides flavored iced green teas and can serve factors which influence his or her buying decisions. Understanding consumer behavior is
specialize mixes of milk tea drinks. ZEN TEA creates its personalized milk tea the way to intricate, thus, marketers must understand such differences and adjust their products and
wants it to be and also provide different combinations to their traditional milk tea drinks marketing programs accordingly to what the consumer demands to attain sustainability
that suit every taste of customers. Determining the buying behaviors and preferences of because sustainable success is achieved by generating satisfactions through recognizing
consumers between two different milk teas stores will aid in developing strategies, which and understanding the needs and wants of the consumers.
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 Conceptual Framework
to attract customers.
The researchers have chosen to conduct this study because of their curiosity INPUT PROCESS OUTPUT
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 Factors affecting Evaluation of Perceived Quality • Sustainability of the
consumer’s buying • Survey through questionnaires products are recognized
not only to the selected establishments but as well as to the professionals, investors and behavior of selected • Interview the manager of Cha • Consumer’s buying
restaurateurs who are engaged in this kind of business or in other food and beverage milk tea stores Time store concerning their behavior and preferences
related industry. •
Personal Influences marketing strategy, product is identified
• Cultural Influences strategy, and pricing • Product profile that
• Social Influences • Give questionnaires to 100 would best capture the
Synthesis of Reviewed Literasture • Psychological respondents of each selected needs of the customer is
Consumer taste and preferences have become complex nowadays. A lot of Influences establishment determined
companies are focusing on the improvement and perfection of the product because of • Analyze and interpret the • Suggestions/
questionnaire based on how the Recommendations for the
the notion that if the company can provide a product that will completely suite the profile customers see Zen Tea and Cha improvement of products
of the customers, patrons will buy it. However, there are lots of other factors that can Time is realized
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
126 SPUQC Student Journal
The researchers’ purpose in this investigation is to discover the factors that affect
consumer’s buying behavior in terms of the customer’s personal influences, cultural
influences, social influences, and psychological influences.
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 influences, cultural influences, social influences, and
psychological influences.
Thus, the study aims to seek and answer the following:
1. The personal profile of the customer in terms of:
1.1 Age
1.2 Gender
1.3 Occupation
1.4 Income
1.5 Education
2. The cultural profile 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 profile 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 profile of the customer in terms of:
4.1 Regularity of visit
4.2 Amount of money willing to spend on milk tea
Lee & Vega 127
4.3 Reasons that influence 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 influences, cultural influences, social influences,
and psychological influences of each consumer. This study was limited to discuss the
beverage products specifically on the tea concoctions of the selected milk tea stores. It did
not include the profitability, financial 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
128 SPUQC Student Journal Lee & Vega 129

Where:
specifically during Saturdays. The researchers conducted an interview with the manager ∑= summation
of CHA TIME store regarding their marketing strategy, product strategy, and pricing of f=frequency
their products. x= weight of the response
n=Total number of respondents
Research Instrument
The following instruments were used in gathering data: Likert scale was used for verbal interpretation of the mean value.
• The researchers made an observation for the reason of knowing the volume of
customers within a day of operation. Mean value Weighted Mean Verbal Interpretation
• Survey questionnaires were given to 100 customers of each selected milk tea store. 3.25-4.00 4 Strongly Agree/ Very Important/ Very Satisfied
• The researchers conducted an interview with the manager of CHA TIME store for 2.50-3.24 3 Agree/ Important/ Satisfied
further information needed about the store. 1.75-2.49 2 Disagree/ No Influence/ Least Satisfied
1.00-1.74 1 Strongly Disagree/ Not Important/ Not Satisfied
Data Analysis
The data was analyzed through the application of descriptive statistics using The researchers used convenient random sampling in selecting the respondents
percentage, weighted mean, and Likert scale. The researchers used the following in order of ZEN TEA and CHA TIME milk tea stores.
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 first, Results and Discussions
second, third, fourth (4.1 and 4.2), fifth part of the questionnaire concerning the personal,
cultural, social and psychological profile of the customer. Table 1. Personal Profile of the Respondents

The Formula is: %= ∑ f/n X 100 Table 1.1 Age Profile of the Respondents

Where: CHA TIME n= 100 ZEN TEA n=100

%= Percentage
∑= Summation Age Response Percentage Age Response Percentage
f= Frequency
n= Total number of respondents 13-18 23 23 13-18 43 43
19-24 44 44 19-24 40 40
Weighted Mean is computed by multiplying each value of the group by the 25-30 15 15 25-30 11 11
appropriate weight factors and will be divided by the total number of respondents. 31-36 7 7 31-36 2 2
37-42 4 4 37-42 0 0
The Formula is: 43-50 3 3 43-50 3 3
Weighted mean= ∑fx/ n 50 and above 4 4 50 and above 1 1
Total 100 100 Total 100 100
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Table 1.2 Gender Profile of the Respondents
CHA TIME n= 100 ZEN TEA n=100
Gender Response Percentage Gender Response Percentage
Male 43 43 Male 51 51
Female 57 57 Female 49 49
Total 100 100 Total 100 100
Table 1.3 Occupation Profile of the Respondents
CHA TIME ZEN TEA College 36 36 College 48 48
Occupation Response Percentage Occupation Response Percentage
Student 44 44 Student 66 66
Employee 19 19 Employee 17 17
Entrepreneur 9 9 Entrepreneur 6 6
Professional
(Teacher, Chef,
Engineer, etc.) 25 25 Professional 10 10
(Teacher, Chef,
Engineer, etc.)
Others 3 3 Others 1 1
Total 100 100 Total 100 100
Table 1.4 Income Profile of the Respondents
CHA TIME ZEN TEA Time Response Percentage Time Response Percentage
Income Response Percentage Income Response Percentage
No Income / No Income /
Allowance 38 38 Allowance 54 54
P10,000 and
below 10 10 P10,000 and below 16 16
Lee & Vega 131
P10,000-P15,000 19 19 P10,000-P15,000 3 3
P15,000-P20,000 10 10 P15,000-P20,000 10 10
P20,000 & above 23 23 P20,000 & above 17 17
Total 100 100 Total 100 100
Table 1.5 Education Profile of the Respondents
CHA TIME ZEN TEA
Education Response Percentage Education Response Percentage
High School 14 14 High School 20 20
Postgraduate 10 10 Postgraduate 5 5
Graduate 30 30 Graduate 22 22
Undergraduate 10 10 Undergraduate 5 5
Total 100 100 Total 100 100
Table 1.5 clearly shows that when it comes to the education profile, 36% of the
respondents who go to CHA TIME are mostly college students. With the supporting
results of the age profile 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 2. Cultural Profile of the Respondents
Table 2.1 Time of Drinking Milk Tea
CHA TIME ZEN TEA
Breakfast 4 4 Breakfast 1 1
Lunch 9 9 Lunch 7 7
Snack 66 66 Snack 77 77
Dinner 21 21 Dinner 15 15
Total 100 100 Total 100 100
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Table 2.2 Way of Drinking Milk Tea
CHA TIME ZEN TEA Others 1 1 Others 1 1
Temperature Response Percentage Temperature Response Percentage
Hot 18 18 Hot 11 11
Cold 82 82 Cold 89 89
Total 100 100 Total 100 100
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 2.3 Preference of the Kind of Tea
CHA TIME ZEN TEA CHA TIME ZEN TEA
Kind of Tea Response Percentage Kind of Tea Response Percentage
Black Tea 21 21 Black Tea 27 27
Oolong Tea 24 24 Oolong Tea 12 12
Green Tea 36 36 Green Tea 37 37
White Tea 12 12 White Tea 9 9
Others 7 7 Others 15 15
Total 100 100 Total 100 100
Table 2.3 signifies 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 Profile of the Respondents
Table 3.1 Reference Group on Milk Tea
CHA TIME ZEN TEA
Reference Response Percentage Reference Response Percentage
Friends / Peers 61 61 Friends / Peers 84 84
Family 23 23 Family 7 7
Lee & Vega 133
Advertisements 10 10 Advertisements 5 5
Colleagues 5 5 Colleagues 3 3
Total 100 100 Total 100 100
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
figured it out in Taiwan.
Table 3.2 Marketing Form of Advertisement on Milk Tea
Form of Advertisement Response Percentage Form of Advertisement Response Percentage
Banners 4 4 Banners 15 15
Newspaper /
Magazines 2 2 Newspaper /
Magazines 3 3
Internet / blogs 22 22 Internet / blogs 20 20
TV / Radio 10 10 TV / Radio 6 6
Word of Mouth 56 56 Word of Mouth 53 53
Others 6 6 Others 3 3
Total 100 100 Total 100 100
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 3.3 Companion When Drinking Milk Tea
CHA TIME ZEN TEA
Companion Response Percentage Companion Response Percentage
Friends / Peers 64 64 Friends / Peers 86 86
Officemates 4 4 Officemates 1 1
Family 23 23 Family 6 6
Schoolmates 6 6 Schoolmates 5 5
Neighbors 1 1 Neighbors 0 0
Others 2 2 Others 2 2
Total 100 100 Total 100 100
Table 4. Psychological Profile of the Respondents
Table 4.1 Regularity of Visit
CHA TIME ZEN TEA Table 4.3 Reasons that Influenced in the Consumption of Milk Tea
Regularity of Visit Response Percentage Regularity of Visit Response Percentage
Rarely 14 14 Rarely 12 12
Once or Twice
a Week 54 54 Once or Twice a Week 62 62
Once a Day 13 13 Once a Day 10 10
Once or Twice a
Month 15 15 Once or Twice a
Month 13 13
More than Once a Day 2 2 More than Once a Day 2 2
Others 2 2 Others 1 1
Total 100 100 Total 100 100
Table 4.1 indicates the regularity of visit of the respondents. The respondents
mostly answered that they go to CHA TIME once or twice a week. This is 54% of the
total response. With regards to ZEN TEA, 62% of the respondents state that they drink
tea once or twice a week as well.
Table 4.2 Amount of Money Willing to Spend on Milk Tea
CHA TIME ZEN TEA love to drink it on social occasion/entertainment.
Amount of Money Response Percentage Amount of Money Response Percentage
P50 and below 12 12 P50 and below 3 3
P50-P100 44 44 P50-P100 49 49
P100-P150 34 34 P100-P150 37 37
P150 and above 10 10 P150 and above 11 11
Others 0 0 Others 0 0
Total 100 100 Total 100 100
Table 4.2 states that 44% of the respondents of CHA TIME are willing to spend
P50.00 - P100.00 on milk tea in view of the fact that majority of the customers of CHA
TIME are students and that their source of money comes only from their allowance. Same
goes with ZEN TEA, most of the respondents also answered P50.00 - P100.00 with 49%.
CHA TIME ZEN TEA
Reasons Mean Verbal Interpretation Reasons Mean Verbal Interpretation
For social occasion / Agree For social occasion /
entertainment 2.97 entertainment 3.15 Agree
It acts as a It acts as a
refreshment 3.52 Strongly Agree refreshment 3.46 Strongly Agree
It tastes good 3.52 Strongly Agree It tastes good 3.52 Strongly Agree
It satisfies basic It satisfies basic
thirst & is filling 3.26 Strongly Agree thirst & is filling 3.21 Agree
Bandwagon state Bandwagon state
of mind 2.11 Disagree of mind 2.2 Disagree
Table 4.3 shows the data of the reasons that influence the respondents in drinking
milk tea. The respondents from CHA TIME strongly agree on milk tea’s good taste, ability
to satisfy thirst, as a refresher as reasons for their consumption. Similarly, the respondents
at ZEN TEA drink milk tea because it acts as refreshment and it tastes good. Also, they
136 SPUQC Student Journal
Table 4.4 Importance of the Following Factors in Purchasing Milk Tea
CHA TIME n= 100 ZEN TEA n=100
Factors Mean Verbal Factors Mean Verbal
Interpretation Interpretation
Flavor / Taste 3.83 Very Important Flavor / Taste 3.84 Very Important
Varieties 3.29 Very Important Varieties 3.47 Very Important
Availability 3.42 Very Important Availability 3.54 Very Important
Price 3.55 Very Important Price 3.47 Very Important
Nutritional Value 3.36 Very Important Nutritional Value 3.31 Very Important
Visual Packaging 2.9 No Influence Visual Packaging 2.92 Important
Advertisement / Advertisement /
Promotion Promotion
Schemes 2.83 No Influence Schemes 2.88 Important
Serving Size 3.44 Very Important Serving Size 3.47 Very Important
Shelf Life 3.03 Important Shelf Life 3.22 Important
Overall Quality 3.79 Very Important Overall Quality 3.73 Very Important
Table 4.5 Satisfaction with the Following Factors in the Preferred Milk Tea
CHA TIME ZEN TEA Others 1 1 Others 1 1
Factors Mean Verbal Factors Mean Verbal
Interpretation Interpretation
Flavor / Taste 3.58 Very Satisfied Flavor / Taste 3.69 Very Satisfied
Varieties 3.4 Very Satisfied Varieties 3.44 Very Satisfied
Availability 3.36 Very Satisfied Availability 3.48 Very Satisfied
Price 3.26 Very Satisfied Price 3.45 Very Satisfied
Nutritional Value 3.16 Satisfied Nutritional Value 3.3 Very Satisfied
Visual Packaging 3.09 Satisfied Visual Packaging 3.29 Very Satisfied
Advertisement / Advertisement /
Promotion Promotion
Schemes 2.94 Satisfied Schemes 3.2 Satisfied age group of 19-24 years old. On the other hand, ZEN TEA respondents are mostly males
Serving Size 3.33 Very Satisfied Serving Size 3.45 Very Satisfied
Shelf Life 3.09 Satisfied Shelf Life 3.32 Very Satisfied
Overall Quality 3.54 Very Satisfied Overall Quality 3.57 Very Satisfied
Lee & Vega 137
Table 5. Suggestions and Recommendations
CHA TIME n= 100 ZEN TEA n=100
Suggestions and Response Percentage Suggestions and Response Percentage
Recommendations Recommendations
Improve the Quality
of Products 49 49 Improve the Quality
of Products 40 40
Make Price More Make Price More
Affordable & Reasonable 74 74 Affordable & Reasonable 49 49
Improve the Presentation / Improve the Presentation /
Appearance of Products 32 32 Appearance of Products 35 35
Always Make Products Always Make Products
Available 58 58 Available 44 44
Innovate New Varieties 63 63 Innovate New Varieties 52 52
Increase the Serving Size 46 46 Increase the Serving Size 48 48
Improve Shelf Life 29 29 Improve Shelf Life 16 16
Wider Audience Reach 35 35 Wider Audience Reach 42 42
Healthy Alternative Healthy Alternative
Ingredient Option 67 67 Ingredient Option 58 58
Table 5 shows that with regards to the suggestions and recommendations for
the improvement of the product/s, the majority of the respondents (74%) at CHA
TIME suggest to make the price more reasonable and affordable. In addition, one of the
respondents suggested that milk tea stores should indicate the nutritional value of the
drink in the packaging for awareness. Likewise, majority of the respondents (58%)at ZEN
TEA suggested for the establishment to include healthy alternative ingredients options.
Discussion
1. Customer’s Personal Profile Regarding to Age, Gender, Occupation, Income and Education.
It discusses that majority of the respondents at CHA TIME are females under the
under 13-18 years old. Result shows that the primary market of both ZEN TEA and CHA
TIME establishment are college students because the location of the establishment is
near to several schools specifically Lourdes School, Siena College, Saint Theresa’s College,
Angelicum College and Grace Christian College. In addition, these milk tea stores are a
good place for students to study because it is free from noise and it has a cozy ambiance
that is perfect for studying. Since the mainstream of the respondents are students in both
establishments, the source of their income comes from their allowances.
According to Trehan (2009), age is an important factor affecting needs for the
products. The need for products varies with age. If the product is purchased by young
persons, it appeals to their feeling of love, comfort, affection, etc.
Armstrong (2010) stated, “A buyer’s decision are also influenced by his or her
personal characteristics, notably the buyer’s age and life-cycle stage, occupation, economic
circumstances, lifestyle and personality, and self-concept”.
2. Cultural profile of the customers regarding the time of drinking milk tea, ways of drinking tea, and
the kind of tea the customers preferred most. motive when it is aroused to a sufficient level of intensity. A motive (or drive) is a need
It shows that the majority of the respondents both in CHA TIME and ZEN
TEA enjoy drinking tea during snack time since most people are more likely to have
time during their snack period. In addition, most of the respondents prefer their tea cold
because of the hot weather.
Furthermore, the respondents most likely prefer green tea mainly because of the
health benefits it provides. Research shows that Green Tea and Black Tea are both known
to lower the risk of cancer.
3. Social profile of the customers in terms of the reference group on milk tea, marketing form of
advertisement on milk tea, and the companion when drinking milk tea.
Findings show that most of the customers both in CHA TIME and ZEN TEA
are composed of groups or partners since they engage more into social interactions.
Also, consumers recognize milk tea through word of mouth given that these
people love to hangout and bond together.
According to Tyagi (2006), marketers often target their promotional efforts to
reach reference groups and through them reach their followers by words of mouth or
other subtle influences extended by the group.
As Lawfer (2006) stated, “Customers who refer their family and friends to your
business are your advocates and their recommendations are more valuable than any
advertisement you can buy”.
4. Customer’s Psychographic Profile in terms of frequency of visit, amount of money consumer’s are
willing to spend on milk tea, reasons that influence their consumption of milk tea, importance of factors
in purchasing milk tea, and the customer’s level of satisfaction of these factors in consumption of milk tea.
Results show that majority of both CHA TIME and ZEN TEA respondents are
regularly visiting the establishments once or twice a week for the reason that milk tea is
already part of their lifestyle. People keep on coming back because are satisfied with the
products and services of these milk tea stores. Most of the respondents answered that
they are willing to spend P50.00 - P100.00 worth on milk tea. Since the primary market are
students, they only have a minimum budget from their allowances.
Kotler (2008) mentioned that a person has many needs at any point in time. Some
needs are biogenic. They arise from physiological states of tension, such as hunger, thirst,
discomfort. Other needs are psychogenic. They arise from psychological states of tension,
such as the need for recognition, esteem, or belonging. Most of these needs will not be
intense enough to motivate the person to act at a given point in time. A need becomes a
that is sufficiently pressing to direct a person to seek satisfaction of the need.
Furthermore, the respondents patronize milk teas because of their taste and
refreshment value. As the importance of factors in purchasing milk tea, respondents
said that flavor/taste, varieties, availability, price and nutritional value, serving size and its
overall quality are very important factors for consumption.
Nutritional value is important because people nowadays are more conscious of
their health and want something that is beneficial to them. Moreover, the price and serving
size are important to the customers. Hence, its overall quality is very important in buying
milk tea.
According to Kotler (2010), manufacturers, of course, are very interested in the
beliefs that people carry in their head about specific products and services. These beliefs
make up product and brand images, and people act on their beliefs.
With regards to the level of satisfaction of the factors in milk tea consumption,
CHA TIME respondents are highly satisfied with the flavor / taste, varieties, availability,
price, serving size and also its overall quality. On the other hand, ZEN TEA respondents
said that they are very satisfied with factors such as flavor / taste, varieties, availability,
price, nutritional value, visual packaging, serving size, shelf life and its overall quality.
Hence, both respondents are pleased with what CHA TIME and ZEN TEA provides.
Rainey (2006) stated, “Sustainable success is achieved by creating outstanding
solutions and providing total satisfaction, and that such performance can be derived only
from a comprehensive understanding of the underlying needs, wants, and expectations of
all of the customers, stakeholders, constituents”.
140 SPUQC Student Journal
5. Customer’s suggestions and recommendation for the improvement of products offered.
Top (3) results shows that respondents of both CHA TIME and ZEN TEA
establishment suggested to make the price more affordable and reasonable, to innovate
and widen the varieties of milk tea offered, and make alternative ingredients option to
encourage a much healthier lifestyle because this will give them a chance to enjoy milk tea
without any worries with regards to their health.
According to Pavesic (2006), “The right price to charge is the one the customer
is willing to pay; this is largely a perception of price value. Price value perception does
not evolve solely from low price; it is a feeling that a customer has about receiving their
money’s worth when they pay their check”.
Conclusion
Based on the results of the data gathered by the researchers, the following
conclusions were drawn:
1. Personal Profile of the Customers
The researchers found out that students specifically high school and college
students are the primary customers of CHA TIME and ZEN TEA. This is so because
there are several schools nearby the establishment specifically Lourdes School, Siena
College, Saint Theresa’s College, Angelicum College, and Grace Christian College and
that the place is perfect for the students to go since it has a cozy ambiance and it is free
from disturbance and noise.
2. Cultural Profile of the Customers
The researchers’ findings show that students usually go to CHA TIME and ZEN
TEA during snack time because their class usually ends at around 4:00 PM. They prefer
cold milk tea rather than hot since it reduces the hot feeling thirst they have. Also, they
favor green tea for health benefits.
3. Social Profile of the Customers
Majority of the respondents are students particularly teenagers and they are most
likely to discover things through friends. They recognize milk tea through word of mouth
since they usually spend time with their friends and peers to study, chat and bond together.
Lee & Vega 141
4. Psychological Profile of the Customers
With regards to the reasons that influence people in buying milk tea, the
researchers found out that since Philippines is a tropical country and people experience
hot weather, milk tea acts as their refreshment.
5. Suggestions and Recommendations for Improvement of Products
To further grasp the concept of the study and to also collect valid and actual data,
the researchers prepared an interview for the CHA TIME manager, mostly focusing on
the store’s marketing strategy, product strategy and product pricing.
As a result, the researchers were able to get the information on how the company generates
marketing plans. All the items sold in every store have its one basis coming from the
mother company and would be disseminated for each and every store. The management
then evaluates the marketing plans through email.
CHA TIME specifically makes use of posters and also utilizes promotional
drinks as one of its most successful form of marketing strategy to get the attention of the
Filipino-Chinese community since this is the target market of the company. And because
CHA TIME is a milk tea place, it is the tapioca pearl itself that the company continually
develops for its customers, at the same time, the quality and taste of the product is also an
ongoing concern when it comes to product pricing. CHA TIME depends on the mother
company regarding the appropriate price that it will have and on how the price will remain
competitive.
Recommendations
1. The management may improve its products by creating and innovating healthy
alternative ingredients to entice other group of consumers besides teenagers. The
management may also put nutritional facts of the milk tea at the packaging to let the
customers be aware of the composition of their drinks.
2. The management may make the price more affordable and reasonable but still maintain
high quality products to achieve full customer satisfaction. This can be done maybe
in terms of cutting down the amount of ingredients specifically the amount of syrup,
and replace it with a simple syrup that is more cheaper.
3. The management may focus on innovating new unique products and provide more
varieties of tea to the customers for them to have a wider selection of choices. They
may also give attention on creating exceptional hot tea products for consumers to
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appreciate drinking hot tea besides cold. This will also help the store to maintain the
volume of their customers high even during breakfast.
4. The management may offer promotional drinks (e.g. buy 2 take 1 promo) during
breakfast and lunch as part of their marketing strategy to achieve a wider audience
reach and to maintain the volume of the customers high starting from the opening
of the store.
5. The management may offer foods that are compatible and goes well with the beverages
they are offering. Foods such as chicken popcorn, squid rings, and the like may do.
This study is made, not to criticize the establishments, but to enhance the quality of
their products to provide a greater satisfaction to the consumers.
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