ESTABLISHING INEXPENSIVE BEVERAGES IN ONLINE SELLING PLATFORM IN
TANZA CAVITE
Cavite State University – Tanza Campus
Tanza, Cavite
In fulfilment to the requirements in
Marketing Research
Alconera, Jane Clarisse C.
Caballero, Riel Jhon B.
Dionaldo, Jethro James T.
Garcia, Rex C.
Pepino, Gerald
Researcher
Mr. Prince Isaiah Jacob
Research Adviser
December 8, 2022
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TABLE OF CONTENTS
Front page ............................................................ 1
Table of contents .................................................. 2
Introduction ...……................................................. 3-4
Significance of the study ........................................... 5
Objectives of the study ……………......................... 6
Time and place of the study …...........................7
Scope and limitations of the study ..........................8
Research Question ……………………………… 9
Theoretical/Conceptual Framework...................................................... 10-12
Review of Related Literature .....................................................13-20
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INTRODUCTION
In today’s digital era, the first things that come to mind when considering an online selling
platform are those that only the wealthy or middle class can buy in online selling platform. Many
individuals use online selling platforms for their purchases due to their convenience and less
effort. The beverage industry is a huge and continuously expanding market, with consumers
constantly seeking out new and refreshing beverages. However, not everyone has access to a
wide variety of beverages, especially those living in inaccessible areas. Popular online selling
platforms like Food panda and Grab are known for their expensive products, further limiting the
choices available to consumers.
The main problem addressed in this study is the limited availability of inexpensive
beverages in online selling platform. This problem is caused by a number of factors, including
The cost of packaging can be a significant expense for beverage sellers, especially when
catering to remote areas where transportation costs are higher. There is a risk of scams and
fraud in online selling, which can make consumers hesitant to purchase beverages from
unknown sellers. limited access areas, some areas are difficult or impossible to reach by
traditional delivery methods which reduce potential sales and revenue. Online selling platforms
like Food panda and Grab are known for their expensive products, which can make beverages
unaffordable for many consumers.
These problems may affects in online selling platforms, like Grab and Foodpanda, can
provide valuable insights and benefits. It can help develop strategies to protect consumers from
scams and fraud, inform business strategies, identify opportunities for market expansion.
Inaccessible areas often present logistical challenges, which can be optimized pricing
strategies, and logistics optimization. Understanding the specific needs and preferences of
consumers in these regions can enable online platforms to address the problem accordingly.
Building trust is essential for the long-term success and sustainability of online selling platforms.
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Knowledge of these challenges can help online platforms comply with local laws and
regulations, ensuring fair pricing, preventing fraudulent activities, and adhering to consumer
protection regulations.
Establishing an online platform for selling inexpensive beverages can have both positive
and challenging effects. It requires effective marketing strategies, efficient logistics, reliable
internet connectivity, regulatory compliance, customer trust, understanding local preferences,
and excellent customer service. To succeed, businesses must focus on product quality, pricing
strategy, marketing efforts, and customer service. Conducting thorough market research and
adapting to the dynamic online business environment is crucial for success. Investing in a user-
friendly platform, ensuring regulatory compliance, and providing transparent information about
products are also essential.
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SIGNIFICANCE OF THE STUDY
This study helps to understand and address the problem of limited availability of
inexpensive beverages in online selling. By understanding the logistical challenges of delivering
beverages, sellers can develop more efficient and cost-effective distribution methods.
Additionally, by determining the most suitable packaging for beverages, sellers can reduce the
risk of damage during transportation. Furthermore, by staying up-to-date on technological
advancements, sellers can access new markets and reach consumers in remote or inaccessible
areas. In conclusion, this study is crucial for understanding the challenges and opportunities of
selling beverages online. By addressing the problem of limited availability of inexpensive
beverages, sellers can expand their market reach, increase their sales, and better serve the
needs of their customers.
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OBJECTIVES OF THE STUDY
The primary objective of this research is to identify effective strategies for establishing a
inexpensive beverage on online selling platform.
Specifically, this study aims to
1. to determine customer preferences for beverages in online selling platforms:
2. to study the impact of information legitimacy on online beverage purchases.
3. to identify the most affordable beverages available on online selling platforms.
4. to understand customer demographics for online beverage purchases.
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TIME AND PLACE OF THE STUDY
In order to properly assess the possibility and practicability of establishing an inexpensive
beverage on platform in Tanza, a detailed online survey will be carried out over the course of
one or two months, starting in December 2023 and ending in January 2024. A detailed
examination of consumer preferences, market dynamics, and change in beverage consumption
patterns will be possible thanks to this extended timeframe. If participants have an internet
connection, they can access the survey from any location in Tanza. By using an online
approach, researchers will be able to collect data from a larger group of Tanza residents,
increasing the study's representativeness and generalizability.
The online survey will be carefully constructed to gather as much information as possible
about Tanza's consumer preferences, purchasing habits, and attitudes toward beverage
consumption. The most preferred beverage types among consumers, preferred packaging
options, pricing considerations, and online purchasing behaviors will all be included in the a
survey. In addition, demographic data like age, gender, income level, and location will be
gathered through the survey in order to discover possible consumer groups and adjust
marketing strategies effectively.
In order to maximize participation and guarantee the accuracy of the gathered data, the
online survey will be deliberately built with its simple use and accessibility in mind. Additionally,
the survey will be accessible throughout different devices, such as PCs, tablets, and
smartphones, to guarantee that every resident can take part.
The study aims to obtain important insights into the beverage consumption preferences and
habits of Tanza residents using a well-designed online survey. This will set foundations for the
establishment of an inexpensive beverage on platform that is both successful and sustainable in
the region.
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SCOPE AND LIMITATIONS OF THE STUDY
The scope of this study includes exploring effective strategies for establishing an
inexpensive beverage on online platform in Tanza, a city in the Philippines. This study will delve
into various aspects of online beverage sales, including consumer preferences, product
information legitimacy, customer demographics, and pricing strategies. The focus will be on
Tanza and its surrounding areas to provide a contextualized understanding of the local
beverage market and consumer behavior.
While this study aims to provide a comprehensive understanding of the factors influencing
the establishment of an affordable beverage platform in Tanza, it is important to acknowledge
potential limitations that may impact the scope and outcomes of the research. These limitations
include:Data Availability, Consumer Participation, Market Conditions, Geographic Scope,
Unforeseen challenges. Despite these limitations, the study aims to provide valuable insights
and recommendations for establishing an affordable beverage platform in Tanza, contributing to
the expansion of access to beverages and the growth of the online beverage market in the
region.
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STATEMENT OF THE PROBLEM
The researchers aim to explore the current state of online beverage sales, examining
customer preferences, product information legitimacy, and customer demographics. We will also
identify the most affordable beverages available on online selling platform
This research sought to answer the crucial questions as follows:
1. What is the situation of online selling platform in terms of customer preferences and
product information legitimacy?
2. What is the most affordable beverages in online selling?
3. What are the customer demographic?
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THEORETICAL/CONCEPTUAL FRAMEWORK
The theoretical framework for establishing inexpensive beverages in an online selling
platform in Tanza is grounded in a combination of marketing, consumer behavior, and e-
commerce theories. These theories provide a foundation for understanding the factors that
influence consumer preferences, purchasing decisions, and online shopping behavior.
1. Consumer Behavior Theory:
a. Theory of Planned Behavior (TPB) (Ajzen, 1991):This theory suggests that consumer
behavior is influenced by three factors: attitudes, subjective norms, and perceived behavioral
control. Understanding these factors can help tailor marketing messages and product offerings
to specific consumer segments.
2. Marketing Theory:
a. Marketing Mix (McCarthy, 1960): The marketing mix, comprising product, price, place,
and promotion, provides a framework for developing a comprehensive marketing strategy for
inexpensive beverages.
3. E-commerce Theory:
a. Technology Acceptance Model (TAM) (Davis, 1986): This theory explains the factors
that influence an individual's acceptance of new technology, such as an online selling platform.
Understanding these factors can help promote the adoption of the platform among potential
customers.
The conceptual framework for establishing inexpensive beverages in an online selling
platform in Tanza is represented by the following diagram:
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Key Relationships and Empirical Findings
The key relationships in the conceptual framework are further supported by empirical
findings from the literature:
1. Consumer Preferences and Pricing Strategy:Studies have shown that price is a
significant factor influencing consumer beverage choices. However, other factors, such
as brand, taste, and packaging, also play a role. (Vijayasarathy, 2003)
2. Information Legitimacy and Consumer Demographics: Consumers are more likely
to purchase beverages from online sellers they perceive as trustworthy and transparent.
This is particularly true for health-conscious consumers who are more discerning about
product ingredients. (Gehan & Hassan, 2015)
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3. Pricing Strategy and Logistical Considerations:Cost-effective pricing strategies
may require optimizing delivery routes, utilizing minimal packaging, and negotiating with
delivery partners to reduce transportation expenses. (Singh & Das, 2020)
4. Customer Demographics and Marketing Efforts: Understanding the
characteristics of online beverage purchasers, such as age, gender, income level, and
location, can help tailor marketing campaigns to specific customer segments. This can
lead to more effective marketing spending and increased sales. (Stone, 1950)
5. Logistical Considerations and Customer Satisfaction: Efficient and timely delivery
services are essential for ensuring customer satisfaction and repeat purchases. Studies
have shown that delivery delays and damaged products can negatively impact customer
satisfaction. (Afacan & Demirkan, 2011)
Establishing inexpensive beverages in an online selling platform in Tanza requires a
strategic approach that considers the interplay between consumer behavior, marketing
principles, e-commerce adoption, and logistical efficiency. By understanding and addressing
these factors, businesses can successfully cater to the needs of Tanza residents and expand
access to affordable beverages.
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REVIEW OF RELATED LITERATURE
BEVERAGES WORLD SUPPLY
According to Food and Agriculture Organization of the United Nations (FAO) the availability
of beverages has grown more than 20% in the last 40 years (see Fig. 3). Over that same time
period, the population of the world has doubled, indicating that the volume of beverages
produced worldwide has grown 140%. That growth does not include soda or juice, although
Coca-Cola products alone are consumed at a rate in excess of one billion drinks per day . The
greatest increase has been in beer consumption, which has risen almost 5 gallons per person
per year. That is followed by tea, which increased a little more than 4 gallons per capita per
year. Wine and milk consumptions have both fallen worldwide, by three-quarters and 1.5 gallons
per year respectively. Tea remains the world’s most popular beverage (consumed at a rate of
more than 12 gallons per person) followed by milk and beer (at 11 and 8 gallons per capita per
year respectively). Together, those three beverages make up more than three-quarters of the
total of the beverages that FAO monitors. An increase in milk consumption in southern
hemisphere nations has contributed to a shift in the types of milk produced.
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EVOLUTION OF ONLINE SELLING
According to Ferrera, Cécile; Kessedjian, Eowyne (2019), E-commerce is composed of
transactions that crosses firm boundaries. It involves application of digital technologies to
business processes within the firm. E-commerce is buying and selling using digital media. The
development of new software and other technologies during the early 1990s turned the Internet
into a commercial medium that has transformed businesses worldwide. The development of e-
commerce changed businesses all over the world. Nowadays, more and more people want to
simplify their lives and e-commerce is the solution. Indeed, e-commerce saves time and
facilitate transportation of goods. E-commerce made the world interconnected. Leclerc a famous
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supermarket in France was pioneer in France in enabling consumers to do their errands on the
internet. E-commerce changes the marketing mix for businesses. These changes impacted
international marketing. Most companies today have an online presence at the very least to hold
information about themselves, raising their company awareness if they are not using it to trade.
The concept of electronic commerce also has changed over time. At first, it was referred to as
the facility to do electronic transactions for example, sending documents when we ordered
something. Subsequently activities termed as “web commerce” were included, with the
purchase of services and goods over the internet.
STATUS OF BEVERAGE IN PHILIPPINES
According to De Jesus, F. S., & Buenaventura, B. P. (2021), the owners of the milk tea
stores change the way they manage their business due to pandemics. Based on their studies
accordingly to the respondents, this pandemic is very different from the normal way of their
business operation. As added, because of the pandemic, they have put different considerations
for their staff, especially in terms of going to their store. They have adjusted the time in of the
staff because of the limited transportation vehicle.Leading a business in the post-pandemic
world means shifting not only your management methods but your mindset about what it means
to be a collective business team.Another result pointed out that due to age restrictions, only a
few customers are coming to their store. The respondents mentioned that the local government
unit was strictly monitoring the people who stay outside their houses, if the person whose age is
restricted, they will be caught and be punished. This creates a limited opportunity for
businesses.
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E-COMMERCE IN THE PHILIPPINES
Education can be more expensive than it is, and many of the students ought to help their
families even in the simplest way they can. According to Ferreira (2019), a small business such
as e-commerce could be a good start for students for it does not need a large amount of money
unlike any other businesses. Though some students may afford to build a business, they must
always take their steps little by little because learning is a process. It may take a longer time to
wait but as per philosopher Lao Tzu, “The journey of a thousand miles begins with one step”.
Since the world is now full of technology, it is much easier for individuals, especially students to
be creative and resourceful. It could also be a sort of entertainment to others but not only it
entertains people, but it could also be their own source of income. In this time of generation, the
widespread online selling became popular due to this pandemic. According to Markus (2019),
electronic commerce or in its simplest form e-commerce, refers to any form of business
transaction conducted online. It all started 40 years ago and to this day, it continues to grow with
new technologies, innovations, and thousands of businesses entering the online market and
some of the businesses became more and more popular each year. It plays a very important
role in the economic growth and development of a nation. This activity is included in planning,
controlling, promotion and also 5 distribution of various goods and services through the use of
technology. Virtual social networking is part of social media and one of the gadgets that we can
use in this type of business is our smartphones. By using smartphones users can connect
together away from the limitations of time and place, culture, and social class. Also, they can
even communicate with other people or scroll endlessly by the help of our modern technology.
According to the International Telecommunications
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IMPACT OF LEGITIMACY
The concept of legitimacy, with its roots in institutional theory and political economy,
constitutes a prominent theoretical perspective in corporate environmental disclosure research.
As an institutional intermediary, focusing on dissemination and evaluation of corporate
information, public media play an important role in such legitimation processes (Fombrun, 1996;
Rao, 1998).A company's legitimacy originates from its stakeholders' acknowledgment and
approval of it. Stakeholders include the general public, investors, employees, and customers.
For businesses to last and grow over time, they must be legitimate.Public media are closely
followed because of their perceived superiority in accessing and evaluating firms (Fanelli and
Misangyi, 2006). Legitimacy is determined in majority by public media. This is so because
people frequently perceive the public media as a reliable source of information. The information
and evaluations provided by public media tend to be distributed more broadly than the opinions
of the average stakeholder. Accordingly, they are likely to have a high degree of influence on
which organizations and organizational properties become prominent in the minds of
stakeholders (Fanelli and Misangyi, 2006). Positive coverage of a company's environmental
performance by the public media can contribute to the company's increased
legitimacy.Furthermore, for the manager, media evaluations may be the only persistent and
long-term proxy for collective legitimacy impressions on which it can benchmark and model its
environmental communication strategy. In this vein, Neu et al. (1998) argue that environmental
disclosures focus on relevant publics that are dominant rather than peripheral and ‘critical’
ones.Businesses can control their legitimacy by using the public media. This can be achieved
by interacting with public media outlets and sharing information about their environmental
performance.
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SHOPPING ORIENTATION
Many research studies attempted to identify consumers' shopping orientations in order to
understand their preferences for shopping from retail outlets, home, catalog or mail orders, or
the Internet. Among the earlier shopping orientation studies, Stone (1950) offered the first taxon
of shoppers identifying them as economic, personalizing, ethical. and apathetic shoppers based
on varying orientations toward shopping in general. More specifically, Stone explained that an
economic shopper typically pays more attention to merchandise assortment, price and . A
personalizing shopper seeks personal relationships with sales people. An ethical shopper
believes in supporting local stores rather than chain stores even if it means higher prices and
less variety of goods Lastly, an apathetic shopper is one that is not interested in shopping but
does shopping because of necessity. Alternatively, Stephenson and Willet (1969) classifed
shoppers based on the degree of patronage concentration across retailers as store- Royal high
concentration (low search), convenience oriented dow concentration (low search), compulsive
and recreational high concentration (high search), and price-bargain shopper dow concentration
(high search). Mchie (1976) studied shopping orientations of cosmetic buyers using life-style
variables Activities, Interests and Opinions and classified shoppers as store loyal, brand loyal,
paychosocializing, name conscious and problem-living shoppers. His findings suggested that
shoppers with different shopping orientations display different communication behaviors or
therefore, they have different needs and preferences. for Sam Williams, Paloter and Nichols
1970 identified shoppers as low-price motivated, ovuled, and apathetic shoppers based on their
pored attributes of predorned grocery stores.
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APPROACH TO DEVELOP AFFORDABLE PRODUCTS
Universal design and frugal innovation both are equally important to fulfill the needs of the
people in resource limited civilization. Frugal innovation has been increasingly highlighted as an
important element in improving the quality of life economically as well as socially. Many design
researchers and engineers now dedicate time and knowledge to producing practical solutions to
enhance the quality of life of low and middle-income groups. In recent years, many design
research, frameworks, and methods have been carried out in the context of Universal Design
(UD) and Sustainable Design (SD). It is essential that the design of any product, environment,
and service is usable by all user set to the greatest extent possible, without the need for
adaptation or specialized design. Curb cuts and ramps are the prime examples of universal
design as shown in Figure 1. Elevators, ramps, curb cuts, etc. have become very accustomed to
diverse user groups (with and without disability or special needs). Although, the majority of the
population benefits from these products, only a few Fully Abled People (FAP) can appreciate its
universal value . One of the reasons could be that acknowledging a serious necessity for such a
product is perceived by the majority as an act of labeling themselves as differently-abled. A
universally designed product can be described as a product or environment used by a majority
of the population, say, for example, Differently Abled People, Specially Abled People, Fully
Abled People, etc. The main focus of the universal design is not to make people fit to the
product, system, and/or environment but to make a product or environment fit to the people. In
order to attain a true universal product, considering the needs of different user groups, the
product efficiency should be increased, and essential cautions must be taken to make a
product, system, and environment usable and accessible for all set of the users (Afacan &
Demirkan, 2011). The concept of universal design is not limited to catering problems or issues
related to only disability. It also extends its spectrum in providing equal benefits by bridging
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universal design and frugality. To expand the capacity of universal design and remove the
barricades introduced by current design practices, it is advisable to include frugal innovation in
it. Affordability is one of the trade-offs encountered in the universal design. Many universally
designed products being quite costly, due to expensive design adaptations, may not be
considered as truly universal due to their lack of affordability. We realized that design facilitated
by frugality actuates and contributes towards economical designs which can cater user at the
base of the pyramid. Frugal Innovation is positioned in the low and mid-end segment of
emerging market, i.e. more extensive and diverse user sets.Frugal innovation and Universal
Design (UD) are two essential tactics for developing goods and services that are inexpensive
and available to all. UD deals with designing goods and services that are usable by everyone,
regardless of their abilities or disabilities. Frugal Innovation focuses on developing goods and
services that are inexpensive and useful for consumers in environments with limited resources.
This involves creating products that are simple to use, understand, and navigate, as well as
ones that can be customized to meet the needs of specific users. This involves using
inexpensive materials and technologies and coming up with creative approaches to issues when
resources are limited. UD and Frugal Innovation can be combined to produce goods and
services that are both reasonably priced and easily accessible. This is crucial for individuals
living in underdeveloped countries, where access to basic products and services is often limited.
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