Assessment of Consumer's Buying Behavior On Product Packaging of Coffee Shops, in Tanauan City

Republic of the Philippines i
BATANGAS STATE UNIVERSITY

The National Engineering University
JPLPC-Malvar Campus
G. Leviste St., Poblacion, Malvar, Batangas, Philippines 4233
Tel Nos.: (+63 43) 416-0350 local 206; (+63 43) 416-0068
E-mail Address: cabeihm.malvar@g.batstate-u.edu.ph
Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
Assessment of Consumer’s Buying Behavior on Product Packaging of

Coffee Shops, in Tanauan City
A Thesis
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University TNEU JPLPC-Malvar
Malvar, Batangas
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Hospitality Management
By:
Biscocho, Jerico F.
Molina, Aldren Glen S.
Osano, Jay-R M.
Rafols, Juanito Jr M.
Valencia, Ailyn May B.
December 2022
Leading Innovations, Transforming Lives, Building the Nation
i
Republic of the Philippines 1
JPLPC-Malvar Campus
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Chapter I
THE PROBLEM AND ITS BACKGROUND
This chapter includes primary information about the research topic. This
includes the introduction, the background of the study, the statement of the
problem, the theoretical framework, the conceptual framework, the hypothesis of
the study, the scope and limitations of the study, the significance of the study, and
the definition of terms.
Introduction
The irony of packaging is that it can communicate silently. Product
packaging is what people see first and it can attract and catch the attention of the
consumer. This doesn’t necessarily need to be bright and loud, but its uniqueness
makes it more distinctive and through the packaging, the business shows its
product value without verbal communication. One of the five components of the
marketing mix is the packaging. Every industry uses a marketing mix. This is a
collection of marketing tools that companies use to pursue their marketing
objectives in the target market. The American Marketing Association's president,
Neil Borden, created the marketing mix in the middle of the 20th century which
includes the four key elements: price, product, promotion, and place. As time goes
by and the world is constantly changing, packaging has become a vital part of the

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marketing mix according to Kumar (2015). Flexible retail packaging has seen a
significant transformation in industries, corporations, and companies because of
its ability to create brands and attract loyal customers.
In early times, nomadic hunters gathered their food by using animals’ skins
and leaves to use as their containers. When ores, metals, and pottery were
developed, it led to the early form of packaging according to Heimlich and Hook
(2017). As time went on, humans discovered and put innovation to technology,
and packaging quality also increased, from animal skins and leaves as a
receptacle for their food to metal, plastics, and paper that our today’s era usually
used.
To start a day, coffee is one of the beverages that most people around the
world usually seek in the morning because it wakes you up due to a particular
reason that coffee consists of caffeine. Laurico et. al. (2021) stated that coffee is
the second most consumed beverage next to water. Each individual consumes
roughly 3.05 kilos of coffee each day, or 2.5 cups, on average. As of the year
2020–2021, the Philippines used a total of around 3.3 million 60–kg bags. This
shows a steady rise in coffee consumption throughout time according to Statista
(2022). The increase in demand and popularity of coffee in the Philippines makes
business competition also increase. The coffee industry nowadays dominates the

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business industry and one of the widely known coffee shops in the Philippines was
Starbucks.
This study aims to know the assessment of consumer buying behavior on
the product packaging of coffee shops, in Tanauan city.
Background of the Study
In reality, customers are unlikely to have prior knowledge of a product
before entering a store. Hence, the desire to purchase will be impacted most by
what is communicated at the time of purchase. With this, the packaging becomes
an important consideration in such a customer's selection. The increasing level of
competition among businesses has undoubtedly increased the marketability of
products to fulfill the needs and wants of consumers. Packaging has become a key
component in the way business organizations implement sales promotion in order
to attract and sustain customers' buying intentions. The strategic use of packaging
may boost a product's sales and market share while also helping reduce the
company's market and promotional expenditures as more individuals are drawn to
their products.
According to Lockshin (2012), people should never underestimate the
power of purchasing. Marketing experts frequently measure consumer perceptions

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of brands while disregarding packaging. However, based on how consumers react
to locally produced items, consumers know that packaging plays an important role
in influencing consumers’ perceptions. Customers' perceptions of a product are
influenced by its packaging. Despite this, consumers pay little attention to the
relationship between both packaging and the actual product experience. According
to Mooney (2019), the packaging is the consumer's first impression of the product.
It is one of the most powerful factors influencing their purchasing behavior.
Researchers conducted this study to determine whether product packaging
influences consumers' buying behavior when purchasing at a coffee shop. If
consumers like the packaging of the coffee product, it may influence their
purchasing decision and help the business to be more focused on highlighting the
attributes of their product packaging.
The researchers of this study want to know if the packaging has an effect
on how people choose coffee products. If the packaging of a product has a link
with patronage, the issue is to what level could size, color, shape, packaging
material, and the quality of product content, which are packaging attributes,
influence customers to purchase a certain product? This is the question that this
study seeks to answer.

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Statement of the Problem
The study wants to know the assessment of consumer buying behavior on
the product packaging of coffee shops, in Tanauan City. The researchers seek
answers to the following questions:
1. What is the profile of the respondents in terms of:
1.1 Age and;
1.2 Sex?
2. How did the respondents evaluate the product packaging in terms of:
2.1 Packaging color;
2.2 Product material;
2.3 Packaging design and font style;
2.4 Printed information;
2.5 Consumer buying behavior?
3. Is there a significant relationship between on the consumer's buying behavior
on product packaging and the age of the respondents?
4. Is there a significant relationship between on the consumer's buying behavior
on product packaging and the sex of the respondents?

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5. Based on the findings, what courses of action may be proposed for coffee
shops' product packaging?
Theoretical Framework
Dependent Variable
Figure 1. Product Packaging Factors by Waheed et al., (2018)
This portion contains the theories cited by the expert that provides support
to the present investigation. The figure above shows the packaging elements and
consumer purchasing decisions about the packaging used by the coffee shop.
This framework was created using Waheed, Khan, and Ahmad's product
packaging factor (2018). This framework is utilized by researchers to provide
support to the researcher’s claims that can be used as a potential course of outline

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or the recommended way to be used for the research topic. Packaging
components, according to Kuvykaite et al. (2012), could be viewed as a collection
of numerous parts conveying various meanings to a consumer. Deliya and Parmar
(2012) stated that packaging will influence consumers and thus change their
purchasing behavior towards that brand, assisting the company in generating
revenue. When people are drawn to a product, it is likely that they will purchase it,
increasing sales and revenue for the company. This can only be accomplished by
attracting consumers to a product at first sight, and the first impression is usually
the last impression, leading to an increase in existing sales performance.
Therefore, it is necessary to examine the package and its components in further
detail to determine which of these components is most crucial for a consumer's
decision to purchase.
The factors for this study are customer purchasing behavior and product
packaging, which includes aspects like packaging color, packaging material,
packaging design, packaging font, and printed information. Each of these was
examined to see how it communicated consumers’ buying behavior. This study will
tackle the assessment of respondents towards the coffee shops’ in Tanauan City
product packaging.

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Conceptual Framework
INPUT PROCESS OUTPUT

Tanauan Citizen
based on:
• Age,
• sex
Analysis of data • Purchase
Variables: Behavior of
through: selected
• Packaging respondents
Color,
• Questionnaires from
• Product Design Tanauan city
using Google
and Font Style,
Forms
• Printed
• SPSS
Information,
o Frequency
• Product and
Material percentage
• Consumer o Mean
Buying o Pearson’s
behavior Correlation
Figure 2. Research Conceptual Framework
The study will be based on the input-process-output model (IPO), wherein
the researchers will use packaging color, product design and font style, printed
information, product material, and consumer buying behavior, while the
respondents will be profiled based on their age and sex. The input of every
respondent will be processed using questionnaires from a Google Form. And also,

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we use the SPSS to get the frequency, percentage, mean, and Pearson
correlation. Then all the collected data will be used to determine if there is any
significant relationship between the above-mentioned independent variables and
the purchasing behavior of the chosen population.
Hypothesis of the Study
H0: There was no significant difference on the coffee shops’ product
packaging and the buying behavior of the selected respondents from Tanauan
City.
Scope and Limitations of the Study
This study’s objective was to know the effectiveness of coffee shops’
product packaging in Tanauan City, Batangas. An assessment will be done from
a few chosen respondents from Barangay 1 to 7. This research will assess the
citizens’ familiarity with Tanauan City coffee shops' product packaging as well.
There are limitations in the proposed research because the researchers chose the
citizens from Barangay 1-7 of Tanauan City Batangas, as the research
respondents who will be engaged in this study, and the results will be entirely
focused on the answers provided by the selected respondents. Researchers have
chosen the citizens in a certain city because considering the volume of coffee
shops in Tanauan makes them ideal respondents for this study as it suggests that

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the citizens of Tanauan like coffee. The researchers will select a total of Three
hundred eighty-four (384) respondents as a sample size out of 193,936 using
Raosoft to compute with a 5% margin of error and 95% level of significance. The
snowball sampling method will be used by the researchers to get their responses.
Significance of the Study
This study entitled “Assessment of Consumer’s Buying Behavior on Product
Packaging of Coffee Shops, in Tanauan City” will be conducted to benefit the
following:
To Business Owners. This study is significant, particularly for coffee shop owners,
because it seeks to determine the effectiveness of product packaging and its
relationship to consumer purchasing behavior. This can give them a good
recommendation and can improve their way of producing product packaging based
on the result of this study.
To Educational Institutions. This study will serve as a valuable source of
information and the basis for formulating innovative research. This will be very
useful for those who want to learn more about customer purchasing behavior and
the effectiveness of product packaging.
To Future Researchers. This study will serve as a guide for future researchers in
conducting their research. The research paper will provide foundational material

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for future researchers and certain studies that are about the topic discussed. The
findings presented in this study could be used as reference data in future research
to test the validity of these findings.
To the Researchers. This study will serve as additional knowledge for the
researchers that they can use in the future when they start a business. They can
apply the learning and information of this study someday when they become
business owners in the near future.
Definition of Terms
The terms here are lexical and operationally defined for a better
understanding of the readers:
Age. Age is a term that describes an individual's age at a specific period
(Australian Bureau of Statistics). In this study, it refers to a range of numbers
between 7-22 and 23-38 which represents the age of the respondents that would
participate in the study.
Consumer Behavior. Consumer behavior is the study of how individual
customers, groups, or organizations select, buy, use, and dispose of ideas, goods,
and services to satisfy their needs and wants (Your Article Library, 2014). This
study refers to how customers fulfill their goals and requirements

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Consumer. The Consumers. Consumers are the individuals or groups who
purchase goods and services (Market Business News, 2019). In this study, the
consumer refers to the target correspondents of the research.
Packaging Color. It reflects the product's dependability and effectiveness when
applied to your packaging colors (Johnsbryne, 2020). This study indicates the
impact of the packaging design on consumers’ perceptions.
Packaging Design and Font Style. The font is the main component of packaging
design that conveys to the customer the brand name, item description, functions,
and benefits. Each brand has a distinct personality that it conveys through a certain
font style (DesignerPeople, 2022). In this study, it relates to the font style you
choose when determining how effectively and creatively you can deliver your
message.
Packaging. Packaging is the act of covering a product with a protective and
instructive surface so that it preserves the product’s material handling, storage,
and movement and also provides useful information to all the concerned parties
about the content of the package (GeekTonight, 2021). In line with this study, it
refers to the focus of the research made by the Marketing students.

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Printed Information. Product information is provided by printed materials (or
product labels) (Silayoi et al., 2004). In this study, it refers to how well a product's
appearance, quality, and information are conveyed.
Product Material. Product Material refers to every intermediate or part of the
product, such as the medication product, filler or finish, and any accompanying
packaging. (Law Insider). This study refers to one of the values the respondents
need to assess as part of the product packaging.
Product. A product is any item or service you sell to serve a customer’s needs or
wants (Aha!, 2022). In this study, it refers to the item sold by business owners
which in this research is coffee.
Quality. Quality is an ongoing process of establishing and maintaining connections
by determining, foreseeing, and meeting both explicit and implicit demands
(Quality Digest, 2020). This study refers to how the product packaging is presented
and how it meets consumer satisfaction.
Sex. Sex is the classification of an organism into males, females, or intersex
individuals, particularly as it relates to the reproductive processes
(Dictionary.com). This study refers to the distinction of each respondent specifically
gender.

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Chapter III
RESEARCH METHODS AND PROCEDURES
This chapter will include the research methodologies. It discusses and
defines the research environment, research design and gathering procedure,
respondents, and also the treatment of data.
Research Environment
The location of the study is at City of Tanauan and it is a 2nd class
component city in the province of Batangas, Philippines.
Proponents will be using Google Forms as a medium to conduct a survey
of respondents who are Marketing students of BSU Malvar Campus. Google Form
is a survey administration software offered by Google. Through this, researchers
can keep and protect the confidentiality of the result of the survey.
Research Design
Quantitative research is the process of collecting and analyzing numerical
data. It can be used to find patterns and averages, make predictions, test causal
relationships, and generalize results to wider populations. Quantitative research is
the opposite of qualitative research, which involves collecting and analyzing non-
numerical data (e.g., text, video, or audio). Quantitative research is widely used in
the natural and social sciences: biology, chemistry, psychology, economics,
sociology, marketing, etc. (Bhandari, P. 2022). The frameworks used in

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quantitative research are comprehensive, detailed, and frequently even
investigative. This study methodology produced impartial, statistical, and logical
results. Larger samples that reflect the total population was used in the structured
method of data collecting. In quantitative research, researchers question people
for their thoughts in a structured method that produces factual data and figures
that will serve as your guidelines. It's important to conduct surveys of a substantial
sample of your target market in order to generate statistical findings that can be
accepted.
Respondents of the Study

The researchers of this study will be using selected citizens from Barangay
1-7 of Tanauan City, Batangas as the respondents of the study. The researchers
will be using the Raosoft calculator to measure the sample size. Out of the 193,936
population, 384 respondents were selected to partake in this study using the
Raosoft to compute with a 5% margin of error and 95% level of significance. The
researchers will be using snowball sampling to find suitable respondents that are
regular customers of coffee shops.
Snowball sampling is a non-probability sampling method that the
researchers will use to find suitable respondents where the currently chosen
respondents help the researchers to find or recruit more subjects for the study.

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According to Simkus (2022), this technique is a non-random sampling where not
everyone in the population has an equal probability of getting chosen for the
research.
Data Gathering Instrument

In this research, a survey questionnaire will be used by the researchers to
obtain data. The questionnaire is a checklist questionnaire that will be conducted
through online software with the use of Google Forms. This platform has become
one of the most resourceful tools found on the internet as it allows people to be
able to have various information simply and efficiently (Guay, 2016). Before the
actual data gathering, the researchers will first validate the Google Forms by
conducting a dry run to test their reliability.
The survey questionnaire used a 4-point Likert scale which allowed the
researchers to have four extreme options without a neutral choice. It represents
the different degrees of significance; namely, the Strongly Agree, Agree, Disagree,
and Strongly Disagree options where the respondents can choose their answers.
This is a close-ended survey questionnaire that asks respondents to select from a
limited range of options. The researchers provide the respondents with options to
choose from.

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The scoring and interpretation used for the questionnaire are displayed in
the table below.
Table 1
Scoring and Interpretation
Response Scale Mean Score Interpretation
4 3.50 – 4.00 Strongly Agree
3 2.50 – 3.49 Agree
2 1.50 – 2.49 Disagree
1 1.00 – 1.49 Strongly Disagree
Data Gathering Procedure

Before gathering data, the researchers will write a letter to the city officials
requesting to run a survey test on them. This letter will serve as proof to the group
that they can conduct the survey test freely. The researchers will spend
approximately more than a week on the collection of the data through Google
Forms and considering the availability of the respondents. The questionnaire was
divided into two major parts which are the demographic profile of the respondents
and the product packaging that respondents assessed in buying.

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Statistical Treatment of Data

The Statistical Package for Social Sciences or SPSS is a software that the
researchers will use to provide data analysis for descriptive and numerical output.
The following statistical tools were used in the study.
Frequency and Percentage. This will be used to represent the
respondents' demographic data at the age, sex, and address.
Mean. This was used to get the general value or the overall idea of a set.
This will be used to determine the average value of the outcome of the research
data.
Pearson’s Correlation. The researchers will be using the Pearson
correlation to know the relationship between two quantitative variables. In this
study, the two variables are the product packaging of coffee shops in Tanauan city
and the consumer buying behavior toward the product.

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Republic of the Philippines i

BATANGAS STATE UNIVERSITY

College of Accountancy, Business, Economics and International Hospitality Management