CONCEPT

PAPER
“Factors Influencing Consumer Choice for Milk Tea”

Submitted by:

Jezel May Eduarte

James Ryan Sumampong
Marco Robert Gurne
Mizzy Kyla Lorejo
Sheila Marie Sixto
Title:
“Factors Influencing Consumer Choice for Milk Tea”

Rationale:

This research aims to explore factors influencing consumer choice for milk tea in
Medina, Misamis Oriental. Understanding consumer choices is crucial for businesses. The
study focuses consumers choice for milk tea. Through a survey of local consumers, the
research seeks to identify key influencers on purchasing decisions. Findings will help milk
tea establishment to improve consumer satisfaction and loyalty, leading to increased sales.
The investigation will also enhance understanding of consumer behavior in specialized
markets for future studies.

It is important to provide insight on how consumers make decisions when consuming

milk tea is the foundation of this study's rationale. The results of this study will be useful in
determining the internal and external variables that have a major impact on consumer choices
and how they affect recurring business and brand loyalty. In addition, the study aims to find
out how milk tea establishment might strategically place themselves to benefit from these
factors and maintain a profitable business in an extremely competitive marketplace.

Since it encompasses the constantly changing consumer behaviors in the post-

pandemic era, where health consciousness, internet involvement, and evolving social norms
are reshaping purchasing decisions, this research is particularly relevant and
contemporaneous. By focusing on the variables influencing Medina Mis. Or. consumers'
decisions, this study will provide valuable insights that can be leveraged by both local and
national milk tea brands seeking to optimize their market presence and consumer engagement
strategies.
Conceptual Framework:

This conceptual framework provides a comprehensive summary of the variables

influencing consumer decisions in the market for milk tea. It incorporates a number of
independent variables and dependent variables that influence consumer choices and
emphasizes how these elements interact to influence consumer behavior.

Key Components of the Framework:

1. Independent Variables

 Product Attributes

When choosing milk tea, consumers consider a number of important product qualities
before making their choice. Businesses must take these characteristics into account while
developing and promoting their products. The main characteristics of the product that affect
consumer choice are as follows:
Flavor and Taste
o Flavor Variety: Availability of diverse flavors, including traditional (e.g.,
classic milk tea, taro) and innovative or seasonal options (e.g., matcha, fruit-
infused).
o Taste Quality: Balance of sweetness, creaminess, and the overall flavor
profile that aligns with consumer preferences.
Customization Options
o Adjustable Sweetness Levels: Ability to customize the level of sweetness
(e.g., regular, less sweet, no sugar).
o Choice of Toppings: Availability of various toppings such as tapioca pearls,
jelly, pudding, and boba.
Ingredients and Quality
o Ingredient Quality: Use of high-quality, fresh ingredients, including
premium tea leaves and natural flavorings.
o Health-Conscious Options: Availability of healthier options, such as reduced
sugar, low-fat milk, or dairy-free alternatives (e.g., almond milk, oat milk).
Packaging and Presentation
o Packaging Design: Aesthetic and functional packaging that preserves
freshness and appeals to consumers (e.g., eco-friendly materials, visually
appealing cups).
o Presentation: Attractive and Instagrammable presentation of the drink,
including the use of vibrant colors and well-arranged toppings.
Pricing
o Affordability: Competitive pricing that aligns with perceived value, with
options for various budget levels.
o Value for Money: Perception of value based on portion size, ingredient
quality, and overall experience.
Brand Reputation
o Brand Trust: Consumer trust in the brand based on reputation, reliability, and
previous experiences.
o Brand Identity: The brand’s image, including its alignment with consumer
values (e.g., sustainability, ethical sourcing).
Convenience
o Availability: Accessibility of the product through various channels such as
physical stores, online ordering, and delivery services.
o Ease of Ordering: Convenience of ordering, including options for pre-
ordering and pick-up or delivery services.
Innovation
o New Flavors and Trends: Introduction of unique or trendy flavors and
combinations that attract adventurous consumers.
o Product Variations: Seasonal or limited-edition offerings that create a sense
of exclusivity and novelty.
Nutritional Information
o Transparency: Clear labeling of nutritional information, including calorie
count, sugar content, and allergen information.
o Health Benefits: Perceived health benefits or functional ingredients that
appeal to health-conscious consumers.
Customer Service
o Service Quality: Friendly, efficient, and knowledgeable staff that enhances
the overall consumer experience.
o Consistency: Consistent product quality and service standards that ensure a
reliable and satisfying experience.

Milk tea businesses can better satisfy customers, stand out in a crowded market, and
exceed expectations by concentrating on these product features. Comprehending and utilizing
these characteristics allows for the creation of items that attract target consumers and promote
brand loyalty.
.
 Marketing Factors

In the milk tea business, marketing factors play an important role in influencing consumer
preferences. Purchase decisions, brand loyalty, and consumer impressions can all be
influenced by smart marketing tactics. Key marketing components that influence consumers'
decisions about milk tea are as follows:

Advertising and Promotion

o Campaigns and Messaging: Impact of advertising campaigns, including TV,
radio, online ads, and print media, on consumer awareness and interest.
o Promotional Offers: Influence of discounts, limited-time offers, and buy-one-
get-one-free deals on attracting customers.
Social Media Presence
o Engagement and Content: Effectiveness of social media platforms (e.g.,
Instagram, Facebook, TikTok) in engaging consumers through posts, stories,
and interactive content.
o Influencer Partnerships: Role of influencers and bloggers in promoting milk
tea products and shaping consumer perceptions.
Brand Identity and Image
o Brand Positioning: How the brand is positioned in the market (e.g., premium,
affordable, trendy) and its alignment with consumer values and expectations.
o Visual Branding: Impact of logo design, color schemes, and overall aesthetic
on brand recognition and appeal.
Customer Reviews and Testimonials
o Online Reviews: Influence of customer reviews on platforms like Google,
Yelp, and TripAdvisor on potential buyers’ decisions.
o Word-of-Mouth: Effectiveness of positive word-of-mouth recommendations
from friends, family, and social circles.
Loyalty Programs
o Rewards and Incentives: Impact of loyalty programs, such as point systems,
discounts for repeat purchases, and exclusive offers, on encouraging repeat
business.
o Personalized Offers: Use of personalized promotions and rewards based on
customer purchase history and preferences.
Public Relations and Media Coverage
o Media Features: Influence of features and articles in magazines, newspapers,
and online publications on brand credibility and visibility.
o Event Sponsorships: Effectiveness of sponsoring events or participating in
community activities to build brand awareness and goodwill.
Sales Channels and Distribution
o Accessibility: Availability of the product through various sales channels,
including physical stores, online platforms, and delivery services.
o Partnerships and Collaborations: Impact of partnerships with other
businesses, such as cafes or food delivery apps, on reaching a broader
audience.
Product Placement and Visibility
o Store Layout: Importance of strategic placement and visibility of milk tea
products within stores or outlets to attract attention.
o Shelf Placement: Influence of product placement in high-traffic areas or
prominent spots in retail locations.
Seasonal and Limited-Time Offers
o Special Editions: Appeal of seasonal flavors, limited-edition products, and
holiday-themed offerings that create excitement and urgency.
o Promotional Events: Use of special events, such as product launches or
tasting events, to generate buzz and attract customers.
Brand Story and Messaging
o Narrative: Impact of the brand’s story, mission, and values on consumer
connection and loyalty.
o Authenticity: Role of genuine and transparent messaging in building trust and
resonating with consumers.
Pricing Strategy
 o Competitive Pricing: Influence of pricing strategies, including value-for-
money perceptions and comparisons with competitors.
o Tiered Pricing: Effectiveness of offering various pricing tiers for different
product options (e.g., regular vs. premium) to appeal to diverse consumer
segments.

Milk tea businesses may effectively impact consumer decisions, improve brand
visibility, and increase customer engagement by utilizing these marketing aspects. In a
competitive marketplace, a complete advertising strategy that takes these aspects into account
can assist companies in drawing in and keeping loyal customers.

 Consumer Experience

Purchasing choices for milk tea are greatly affected by the experiences of the
consumer. It includes the whole process, from first awareness to contentment after a
purchase. The following are the primary aspects of the consumer experience that affect
the decisions made by milk tea consumers: building and maintaining loyal customers in a
highly competitive sector.

Product Quality and Consistency

 Taste Consistency: Consumers expect consistent quality in taste, texture, and
presentation across multiple purchases. Inconsistencies can affect brand loyalty.
 Freshness of Ingredients: The use of fresh and high-quality ingredients, including
tea leaves, milk, and toppings, enhances consumer satisfaction and builds trust.
Customization and Personalization
 Customization Options: Consumers value the ability to tailor their drinks to their
preferences, including sweetness level, ice level, and choice of toppings.
 Personalized Recommendations: Offering recommendations based on a consumer’s
past preferences can enhance their experience and promote repeat purchases.
Service Quality
 Customer Service: Friendly, knowledgeable, and efficient staff play a significant role
in the overall consumer experience. Poor service can detract from the appeal of even
high-quality products.
 Speed of Service: Fast service, especially during peak hours, is essential for a
positive customer experience. Long wait times can deter consumers from returning.
Store Ambience and Environment
 Store Design and Atmosphere: A welcoming, comfortable, and aesthetically
pleasing environment enhances the overall consumer experience, encouraging
customers to stay longer and return.
 Cleanliness: The cleanliness of the store, including seating areas, counters, and
equipment, significantly affects consumer perception and satisfaction.
Convenience
 Location and Accessibility: The convenience of store locations (e.g., near
workplaces, schools, or malls) influences consumer choices. Easily accessible
locations encourage more frequent visits.
 Online Ordering and Delivery: Availability of online ordering, mobile apps, and
delivery services makes it easier for consumers to purchase milk tea, especially in
urban areas where convenience is a priority.
Brand Engagement and Loyalty Programs
  Loyalty Programs: Well-designed loyalty programs that reward repeat purchases
(e.g., point accumulation, discounts) encourage consumer retention and increase the
likelihood of return visits.
 Exclusive Offers: Special offers for loyal customers, such as exclusive flavors or
early access to new products, enhance the consumer experience by making them feel
valued.
Social Media and Digital Experience
 Social Media Interaction: Engaging with consumers through social media platforms
(e.g., responding to comments, hosting giveaways) fosters a sense of community and
strengthens brand loyalty.
 Mobile App Experience: A user-friendly app that allows consumers to browse the
menu, customize orders, and earn rewards adds convenience and enhances the overall
consumer experience.
Value for Money
 Price-Quality Ratio: Consumers assess whether the quality of the product justifies
the price. Offering generous portion sizes, premium ingredients, or unique flavors can
enhance the perceived value.
 Promotions and Discounts: Regular promotions, discounts, or bundle deals improve
the perceived value of the product and encourage more frequent purchases.
Social Influence and Peer Recommendations
 Word-of-Mouth: Positive reviews and recommendations from friends, family, or
online communities significantly influence consumer choice.
 Social Proof: Seeing others enjoy and share their experiences with a particular milk
tea brand on social media increases consumer interest and trust in the product.
Brand Experience
 Emotional Connection: Brands that create an emotional connection with consumers,
whether through their story, mission, or unique approach, can foster loyalty and repeat
purchases.
 Cultural Relevance: Brands that align with consumers' cultural values or trends (e.g.,
the growing popularity of bubble tea in certain regions) resonate more deeply and
enhance consumer experience.
Sustainability and Ethical Practices
 Eco-Friendly Packaging: The use of sustainable materials for cups, straws, and
packaging appeals to environmentally-conscious consumers.
 Ethical Sourcing: Transparency about sourcing practices (e.g., fair-trade tea or
organic ingredients) influences consumer choices, especially among socially-
conscious customers.
Post-Purchase Experience
 Satisfaction and Feedback: Gathering feedback after the purchase (e.g., through
surveys or customer reviews) helps businesses improve and enhances customer
loyalty by showing that they value their consumers' opinions.
 Customer Support: Effective resolution of complaints or issues (e.g., refunds,
product replacements) plays a significant role in retaining customers and encouraging
repeat purchases.

In the milk tea business, a satisfying customer experience encompasses not just
excellent goods but also simplicity of use, first-rate customer support, and a brand that
connects with consumers on a social and emotional level. Making sure each interaction in
the customer journey is optimized contributes to the development of sustainable customer
pleasure and loyalty.

2. Dependent Variables

 Preference for Purchasing Milk Tea

Consumers' preferences for purchasing milk tea are shaped by a variety of personal,
social, and market-driven factors. Here are the key elements that influence a consumer’s
decision to choose milk tea:

Flavor and Taste Preferences

 Flavor Variety: Consumers often prefer brands or stores that offer a wide range of
flavors, such as classic milk tea, fruit-based teas, matcha, taro, and more innovative
combinations.
 Sweetness Level: The ability to customize the sweetness of the drink to personal
preference (e.g., less sugar, regular, or no sugar) is highly valued by consumers.
 Tea Base Selection: Preference for the type of tea base, whether black tea, green tea,
oolong, or herbal infusions, can be a decisive factor in where consumers purchase
their milk tea.
Toppings and Add-ons
 Boba and Toppings Variety: Consumers often choose milk tea establishments based
on the availability and variety of toppings, such as tapioca pearls (boba), fruit jellies,
pudding, and popping boba.
 Personalization of Toppings: Preference for stores that allow for full customization
of toppings, including the amount and type, as well as innovative and seasonal
toppings.
Health and Dietary Considerations
 Dietary Preferences: Many consumers look for health-conscious options, such as
low-sugar, low-calorie, or dairy-free choices (e.g., almond milk, oat milk).
 Organic and Natural Ingredients: Consumers who prioritize health may prefer milk
tea establishments that use organic tea leaves, fresh fruit, and natural sweeteners.
Price Sensitivity
 Affordability: Consumers often choose milk tea outlets that offer drinks within their
budget or provide good value for money.
 Perceived Value: The balance between product quality, portion size, and price
influences preference. Premium milk tea shops may be chosen if consumers perceive
the higher cost to be worth it for better quality ingredients or a superior experience.
Brand Loyalty and Trust
 Brand Reputation: A well-known and trusted brand can influence consumer
preference, especially if the brand is known for consistent quality and customer
satisfaction.
 Positive Past Experiences: Repeat customers are more likely to purchase from milk
tea shops where they have had positive experiences in terms of taste, service, and
convenience.
Convenience and Accessibility
 Location Proximity: Consumers tend to prefer milk tea shops that are conveniently
located, either close to home, work, or easily accessible areas such as malls or
transport hubs.
 Online Ordering and Delivery Services: Preference for milk tea shops that offer
delivery or easy online ordering options, particularly in urban areas where
convenience is highly valued.
Ambience and In-Store Experience
 Atmosphere: Consumers who enjoy the milk tea experience often prefer shops with a
welcoming, trendy, and comfortable atmosphere. Café-style seating or visually
appealing store designs can be a draw for certain consumer segments.
 Service Quality: Polite, helpful, and efficient staff can significantly impact consumer
preference, particularly for repeat visits.
Social Influence and Peer Recommendations
 Word-of-Mouth: Recommendations from friends, family, or colleagues can heavily
influence consumer preference, especially if they trust the person providing the
recommendation.
 Social media Trends: Many consumers are influenced by what they see on social
media platforms like Instagram or TikTok, where milk tea brands or stores with
popular products may sway preferences.
Innovative Offerings
 Seasonal and Limited-Edition Products: Some consumers prefer milk tea shops
that frequently introduce new flavors or limited-time offerings, creating a sense of
novelty and excitement.
 Trendy Options: New trends like cheese foam, whipped cream toppings, or plant-
based milk options can attract consumers looking for unique products.
Sustainability and Ethical Practices
 Eco-Friendly Packaging: Increasingly, consumers prefer milk tea shops that use
sustainable and environmentally friendly packaging, such as biodegradable cups and
straws.
 Ethical Sourcing: Some consumers choose milk tea brands that emphasize fair-trade
practices or environmentally responsible sourcing of ingredients.
Promotions and Discounts
 Special Deals: Consumers may prefer shops that offer frequent discounts,
promotional offers (e.g., buy-one-get-one-free), or loyalty programs that reward
repeat purchases.
 Exclusive Offers: Preference for shops that provide exclusive offers to their loyalty
members or through special events and holiday promotions.
Nostalgia or Emotional Connection
 Cultural Significance: For some consumers, the act of purchasing milk tea may be
tied to cultural or emotional connections, such as childhood memories or shared
experiences with friends and family.
  Comfort and Familiarity: Consumers may prefer certain milk tea brands that evoke
comfort or familiarity, especially if they have been enjoying those brands for years.

A variety of product qualities, including flavor and customization, convenience, cost,

and social considerations, impact what customers choose when it comes to buying milk
tea. Profitable milk tea companies accommodate these varying tastes, making sure to
provide a unique and fulfilling experience that meets customer standards.

 Demographic Preference

When it comes to selecting milk tea, different demographic groups have distinct tastes
and behaviors. Numerous factors, including age, gender, money, education, and region,
influence these choices. The following are some significant demographic preferences that
affect users of milk tea:

Age
 Teens and Young Adults (Ages 15-24):
o Trendy Flavors and Toppings: Young consumers are more likely to be
drawn to trendy and innovative milk tea options, such as cheese foam, unique
flavors (e.g., taro, matcha), and fun toppings (e.g., popping boba, rainbow
jelly).
o Customization: This age group values customization and experimentation
with different flavors, sweetness levels, and toppings.
o Social Media Influence: They are highly influenced by social media trends
and are likely to choose brands with a strong online presence and visually
appealing products.
 Adults (Ages 25-40):
o Health-Conscious Options: As consumers in this age group become more
health-conscious, they may prefer low-sugar, dairy-free, or organic milk tea
options.
o Convenience and Quality: Busy professionals in this age range may
prioritize convenient options (e.g., mobile ordering and delivery) but still
expect high-quality products.
o Brand Loyalty: Adults are more likely to stick to brands they trust and have
had positive experiences with.
 Older Adults (Ages 40+):
o Traditional Flavors: Older consumers may prefer classic milk tea flavors,
such as black tea with pearls or jasmine milk tea, over more experimental or
trendy options.
o Health Concerns: They may prioritize health-focused options, such as
reduced sugar or dairy alternatives, and avoid overly sweet or artificial
products.
Gender
 Women:
o Health and Wellness: Female consumers may be more inclined to opt for
health-conscious choices, such as low-sugar, low-calorie, or organic
ingredients, as well as dairy-free alternatives.
o Presentation and Aesthetic Appeal: Women may be more attracted to
visually appealing milk tea drinks, especially those that are Instagrammable or
have aesthetically pleasing packaging.
 o Variety and Experimentation: Female consumers often enjoy exploring a
wider variety of flavors and toppings, making customization an important
factor in their purchasing decision.
 Men:
o Convenience and Efficiency: Male consumers may prioritize convenience
and quick service, opting for stores that offer fast ordering, delivery, and
minimal wait times.
o Simple, Classic Choices: Men may prefer classic flavors, such as regular
black milk tea, and fewer toppings compared to female counterparts who tend
to experiment more.
Income Level
 High-Income Consumers:
o Premium Options: Consumers with higher disposable incomes are more
likely to choose premium milk tea brands that emphasize high-quality
ingredients, unique flavors, and luxurious experiences.
o Health and Organic Products: They are also willing to pay more for organic,
fair-trade, or health-focused options.
o Brand Prestige: High-income consumers may prefer brands that are
perceived as trendy or prestigious.
 Middle-Income Consumers:
o Value for Money: Middle-income consumers seek a balance between
affordability and quality. They may choose mid-tier milk tea brands that offer
good value without compromising too much on taste or customization.
o Promotions and Discounts: This group is more likely to take advantage of
promotional deals, loyalty programs, and discounts to maximize their
purchasing power.
 Low-Income Consumers:
o Affordable Choices: Consumers with lower income are more price-sensitive
and prioritize affordability, choosing budget-friendly milk tea options.
o Smaller or Local Brands: They may opt for smaller or local milk tea brands
that offer lower prices while still providing a satisfying product.
Education Level
 Higher Education Levels:
o Health-Conscious Preferences: Educated consumers tend to be more
informed about health issues and may prefer healthier milk tea options, such
as those with natural sweeteners, organic ingredients, or dairy-free
alternatives.
o Ethical and Sustainable Choices: They may also prioritize brands that focus
on sustainability, ethical sourcing, and eco-friendly packaging.
 Lower Education Levels:
o Price Sensitivity: Consumers with lower education levels may be more price-
conscious and may focus more on affordability than on the ethical or health
aspects of their purchase.
o Familiar Flavors: They may prefer familiar, classic flavors and are less likely
to experiment with new or exotic options.
Geographic Location
 Urban Consumers:
o Trendy and Convenient: Consumers in urban areas tend to have more
exposure to trending milk tea shops and are more likely to prefer innovative
products and brands that offer delivery or mobile ordering.
 o Frequent Purchasers: Due to the accessibility and abundance of milk tea
shops in cities, urban consumers may purchase milk tea more frequently and
are more likely to experiment with new flavors and brands.
 Rural Consumers:
o Classic and Affordable Options: Consumers in rural areas may have fewer
milk tea options and tend to stick to more traditional flavors and budget-
friendly choices.
o Less Frequent Purchases: With fewer milk tea outlets available, rural
consumers may purchase milk tea less frequently compared to urban dwellers.
Cultural Background
 Cultural Preferences: Certain flavors, ingredients, and consumption habits may be
influenced by cultural background. For example, Asian consumers may have a
stronger affinity for traditional milk tea flavors (e.g., oolong, matcha, taro) compared
to Western consumers who may prefer more familiar options like chocolate or
caramel-based drinks.
 Cultural Identity: In some cultures, milk tea consumption is deeply integrated into
daily life, making it a more routine purchase. For others, it may be a trendy or
occasional treat.

Milk tea businesses can better satisfy the requirements and preferences of many consumer
groups by customizing their product offers, marketing plans, and service delivery methods
based on an understanding of these demographic preferences. This has the potential to draw
in more customers and improve client satisfaction in a variety of demographic areas.

Independent Variables Dependent Variables

Factors: Consumers Choice:

 Product Attributes  Preference for Purchasing Milk

 Marketing Factors Tea

 Consumer Experience  Demographic Preference

Figure 1. Schematic Diagram

The schematic diagram illustrated the relationship between independent variables,

such as factors that influence consumers choices for milk tea including product attribute,
marketing factors and consumer experience; and dependent variables on consumers choice
for milk tea, such as consumers purchasing preference for milk tea. Understanding this
relationship is essential to understand the quality of goods and services provided by milk tea
enterprises and how they affect customer satisfaction.
Significance Of the Study:
The significance of this study lies in its potential to provide valuable insights for:

 Businesses Establishments - This study offers helpful information that milk tea
businesses could utilize to better recognize and satisfy customer needs, improving
their position in the market, client happiness, and general success. Businesses can
make wise decisions that support long-term profitability and sustainable growth by
putting the research's insights to use.
 Consumers: This study is important for customers because it improves their
knowledge of the variables impacting their decisions and promotes improvements in
the goods and services that milk tea establishments provide. Consumers may now take
advantage of higher-quality, more customized, and value-matched alternatives in the
growing milk tea sector.

 Individual who wants to start milk tea business - This study is highly significant
because it gives those who want to launch a milk tea business the information and
understanding they need to make wise choices, develop winning business plans, and
eventually establish a profitable company in a competitive marketplace.

 For future researchers - Future researchers will find valuable information in this
study since it offers a strong basis, indicates possible research gaps, and offers
methodological and conceptual insights that might direct and stimulate additional
consumer behavior research, especially in the context of the milk tea market.
Statement of Problem:

This study seeks to address the problem of identifying the key factors that influence
customer preferences and purchase decisions for milk tea in Medina, Misamis Oriental.

1. What is the demographic profile of the respondent according to

1.1 Age
1.2 Sex
1.3 Income

2. What are the key product attributes that influence consumer choices for milk tea?

3. What role does consumer experience play in the decision to purchase milk tea?

4. Does marketing factors significantly impact consumer preference for milk tea?

5. Does demographic variables affect consumer preference for milk tea?

Research Design:

This study will employ a descriptive research design to explore the factors influencing
consumers choice for milk tea in Medina, Misamis Oriental. A mixed-methods, descriptive
approach and simple random sampling will be utilized, combining quantitative surveys with
qualitative interviews to gather comprehensive data. The quantitative component will involve
a Likert-scale and structured questionnaire distributed to a representative sample of local milk
tea consumers, aiming to quantify the importance of various factors and consumers choice for
milk tea. The qualitative aspect will include in-depth interviews with selected participants to
gain deeper insights into their motivations and preferences. Data will be analyzed using
statistical tools to identify trends and correlations, providing a well-rounded understanding of
the factors that drive consumer choice for milk tea in this market.
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