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RELATIONSHIP BETWEEN CARBONATED DRINKS AND HEALTH DRINKS TO THE BUYING BEHAVIOR OF CONSUMERSAS PERCEIVED BY SELECTED HOUSEHOLDS OFBARANGAY MACABLING IN THE CITY OF SANTA ROSA LAGUNA

An Undergraduate 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

February 2015Chapter ITHE PROBLEM AND ITS BACKGROUND

IntroductionThe major constituent of the body is fluid, and it is an essential requirement that need to be fulfilled. In the present times, there many different kinds of soft drinks that is available in the market such as carbonated drinks and health drinks. Soft drinks products have been well accepted by consumers as the biggest beverage sector in the world. Today, soft drinks not only reduce the thirst but also have become style and fashion. Soft drinks appeal to customers looking for full taste but without calories and offers an exciting outlet to those not drinking alcohol.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. It also helps preserve the drink longer without going bad.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. 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.The objective and interest of this research activity is to know what consumers like most about soft drinks, what attracts them towards these products and to understand the relationship between the carbonated drinks and health drinks to the buying behavior of consumers.

PROCESSAssessment of Factors of Consumer Preferences through1.1 Survey Questionnaires1.2 Interview 1.3 Observation OUTPUTSignificant relationship between the two different beverages to the buying behavior of consumers INPUTPreferred 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 Color2.4 PromotionConceptual Framework

FEEDBACK LOOP Fig. 1 Paradigm of the StudyThis study uses input, process, output model. Input includes the preferred drinks of the respondents, and the factors that affect consumer preferences in buying soft drinks such as 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.Statement of the ProblemThis study aims to determine the consumer preference in buying soft drinks 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. What is the preferred drinks of the respondents in terms of:1.1 Carbonated Drinks1.2 Healthy Drinks2. What factors do respondents consider in buying their preferred drinks in terms of?2.1Price2.2Taste2.3Color2.4Promotion3.Is there any significant relationship between the two different beverages?HypothesisThere is no significant relationship between the carbonated drinks and fruit drinks to the buying behavior of the consumers as perceived by selected households of Barangay Macabling in the City of Santa Rosa, Laguna.

Significance of the StudyOther 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. Soft drink Companies and DistributorsThe study will help the soft drink companies and distributors to improve and to think of new innovations in their products to increase customer satisfaction.Soft drink 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 DelimitationsThis study focus on the relationship between carbonated drinks and health drinks to the buying behavior of the consumers as perceived by households of Barangay Tagapo in the City of Santa Rosa, Laguna in terms of price, taste, color, and promotion.

Definition of TermsTerms 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 is any one of various liquids for drinking, usually excluding water specifically prepared for human consumption.Buying Behavior is understanding the consumption process and consumers perceptions of product utility.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.Product Development is a system of defined steps and tasks such as strategy, organization, concept generation, marketing plan creation, evaluation, and commercialization of a newproduct.Soft Drinksis any of a class of nonalcoholic beverages, usually but not necessarily carbonated, normally containing a natural or artificial sweetening agent, edible acids, natural or artificial flavors, and sometimes juice.Vast is ofverygreatextentor quantity,immense.

Chapter 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.To 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 RespondentsThe researchers has 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 buying behavior of consumers as perceived by selected households of Barangay Macabling in the City of Santa Rosa, Laguna.

WEIGHTED MEANVERBAL INTERPRETATION

4.50 5.00HIGHLYLY 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 Tagapo City of Santa Rosa, Laguna. Then, the group will proceed in survey questionnaire that is focus on the Relationship of Carbonated Drinks and Healthy 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.

Statistical 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; 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, Pearson Correlation Formula to determine the significant relationship between two variables.

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

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

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

Pearson Correlation Formula:

Where:r = Pearson correlation coefficientx = Values in first set of datay = Values in second set of datan = Total number of values