ACKNOWLEDGEMENT

The researchers have gone a long way and a very tough road in the conduct of the study. But somehow, there are people who have helped them to make that road easier and also, fun.

First and foremost, to the Almighty God, for giving the researchers, strength, understanding, knowledge, and patience needed to accomplish this study.

To the researchers parents, for showing them the continuous guidance needed, as well as the financial support to pursue this research.

To Ms. Ivy Jumao-as, the instructor for this study, for her encouragement, advices, and for guiding the researcher to come up with a better study.

To the respondents, for sharing their time and cooperation in answering the survey questionnaires.

Finally, to everyone although not mentioned but is a big part of the success of the study, a heartfelt thanks and appreciation for giving them their support throughout this study.

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ABSTRACT Coffee and Milktea Industry is one of the fastest growing industries in the Philippines now days. There are different marketing strategies that are used by these coffee and milktea shops basically to attract the market. However, there are still factors and dimensions that are less tackled on the impact of customer satisfaction. The researchers think that comparing the difference of the level of satisfaction between coffee and milktea drinkers is still open for further research especially in the areas of SM, Ayala and I.T. Park where there is a huge market and where the centre for business in Cebu City is located. Thus, the researchers could create recommendation that would be helpful for the coffee and milktea shops with regards to customer satisfaction. The study determined the comparison of the levels of satisfaction between coffee and milktea drinkers through the survey that has been conducted. It also determined the frequency and the possible reasons why these people drink coffee or milktea. After gathering the data from the questionnaires that has been answered by the 224 respondents randomly selected from the three areas focused in this study, it was then tabulated, analysed and determined the differences between the levels of satisfaction among coffee and milktea drinkers. Figures and tables were made to present the male and female drinkers, to know how frequent these people drink coffee or milktea, the most and least probable reason why they drink coffee and milktea, and the factors or dimension that played a role on how they are satisfied with what they drink. The researchers also determined the numbers in comparison with the results per percentage basis as to the respondents in the study.

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The results show that there are more coffee drinkers than milktea drinkers and most of these drinkers are male. It was also determined that taste is the biggest factor for customer satisfaction both for coffee and milktea.

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TABLE OF CONTENTS Acknowledgement Abstract Table of Contents Figures and Tables i ii iv v

INTRODUCTION Rationale of the Study THE PROBLEM Statement of the Problem Significance of the Study Scope and Limitation DEEFINITION OF TERMS 4 5 5 6 1

THEORETICAL BACKGROUND Review of Related Literature Theoretical Framework Conceptual Framework 8 15 16

RESEARCH METHODOLOGY Research Environment Research Respondents Research Instruments Research Procedures 17 17 18 18 19 27 30

4 5

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA SUMMARY, CONCLUSION AND RECOMMENDATION BIBLIOGRAPHY APPENDIX Research Questionnaire Curriculum Vitae

32 34

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Figures and Tables

Figures Figure 1: Theoretical Framework - ............................................................................................................. 15 Figure 2: Conceptual Framework ................................................................................................................ 16 Figure 3: Percentage of Coffee and Milk Tea Drinkers ............................................................................... 19 Figure 4 : Frequency of Drinking ................................................................................................................ 20 Figure 5: Reasons for drinking Coffee or Milktea ....................................................................................... 22 Figure 6: Overall Level of Customer Satisfaction (Coffee and Milk tea) ................................................... 23 Tables Table 1: Frequency of Drinking .................................................................................................................. 20 Table 2.1: Reasons for Drinking Coffee ..................................................................................................... 21 Table 2.2: Reasons for Drinking Milk Tea .................................................................................................. 21 Table 3:Total average Satisfaction between Coffee and Milktea drinkers .................................................. 24 Table 4.1: Customer Satisfaction Dimension of Coffee Drinkers ............................................................... 25 Table 4.2: Customer Satisfaction Dimensions of Milktea Drinkers ............................................................ 25

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