Chapter 3: Methodology
This chapter presents the methods to be used in the study. It also describes the subjects of the
study, the instruments used, the procedure of data gathering, and the statistical treatment of the
data. This study will determine the business performance of milk tea industry to serve as basis
for strategic policy framework.
Chapter 3: Methodology
This chapter presents the research design used, the sampling design, the respondents of the study,
the instrument, the data gathering procedures, and the statistical treatment of collected data.
Research Design
The descriptive and survey methods of research will be used in this study. Descriptive research
because the researchers’ main goal is to explore and describe the demographics of the milk tea
industry across Metro Manila. The researchers will use surveys and questionnaires to gather data
in connection to type of ownership, issues in milk tea operations, and overall business
performance of the milk tea industry and its relation to business profitability.
Research Design
The researchers will use the descriptive research design wherein the subject will be observed in
order to describe its existing behavior in the industry. This research design will pave a way for
investigators to explore the basic profile and framework of the milk tea industry and its possible
attributions to its business performance.
As the descriptive research design aims to obtain accurate data to be used in the analysis, the
researchers will use surveys and questionnaires in gathering data for the study. These queries
will determine the samples’ type of ownership, business operations, product quality, longevity of
service, market industry and these factors relationship to respective business profitability.
Samples and Sampling Techniques
The researchers will use Simple random sampling to determine the registered milk tea businesses
across Metro Manila that will be in the study. There are more than 100 milk tea businesses
registered in the Philippines and most of them operating in Metro Manila, not yet including some
of its franchises. The researchers would like to get a random sample from businesses with no
bias in regards to its capital or popularity.
Samples and Sampling Techniques
There are more than 100 milk tea businesses registered in the Philippines, however most of them
are operating in Metro Manila. With this, the researchers will use the purposive sampling method
in determining the population sample in the National Capital Region. The researchers will
choose 30 different franchises/shops selected from different cities in the region and respondents
will provide the necessary data for the study. Five customers from each shop will be selected
upon visiting the milk tea shops totalling to 150 customer respondents.
Research Locale
The study will be conducted around Metro Manila. Milk tea businesses operating in the City of
Manila, Quezon City, Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Marikina,
Muntinlupa, Navotas, Parañaque, Pasay, Pasig, San Juan, Taguig, and Valenzuela, as well as the
municipality of Pateros will be chosen on random, at least 2 different milk tea shops per city.
Research Locale
The study will be conducted in selected milk tea shops in Metro Manila. There will be two
different shops to be chosen in the cities of Caloocan, Las Piñas, Makati, Malabon,
Mandaluyong, Manila, Navotas, Parañaque, Pasay, Pasig, Quezon, San Juan, Taguig and
Valenzuela while only one store is needed in Marikina and Muntinlupa.
Caloocan City 2 Navotas City 2
Las Piñas City 2 Parañaque City 2
Makati City 2 Pasay City 2
Malabon City 2 Pasig City 2
Mandaluyong City 2 Quezon City 2
Manila City 2 San Juan City 2
Marikina City 1 Taguig City 2
Muntinlupa City 1 Valenzuela 2
Total: 30
Research Instruments
Questionnaires
The researchers will use tailor-made questionnaires to address specific inquiries and gather the
needed data. Two sets of questionnaires will be prepared, one for the business owners/managers
and one for the customers. The questionnaire for owners/managers will comprise of the milk tea
business profile in Metro Manila that will answer their beginning capital, income tax paid,
number of years they are in operation, average income per year, and the issues in milk tea
operations. The questionnaire will also address the business performance of the milk tea industry
in terms of business obligations in their place of operation, quality of the product and services,
potential market that can be capitalized, and customer retention.
The questionnaire for the customers will give answers to customer satisfaction and consumer
profile and preferences and an overview of the overall milk tea market and its direct and indirect
competition.
The researchers will disseminate questionnaires to the population sample to gather information
regarding the milk tea businesses’ beginning capital, income tax, years in service, average
income per year and their respective operational issues. In addition, these surveys will also
collect the shops’ product offerings that are being offered to their current market. As a result,
these will pave a way for researchers to acquire the customer feedback of the milk tea owners
that can be considered as a factor for customer retention.
Questionnaire for Milk Tea Owners/Managers
Milk Tea Business Questionnaire
Please fill in the blanks or place an X or a check mark next to the word or phrase that best
matches your response.
Name of the shop: _____________________________
Place of operation: _____________________________
1. What type of milk tea shop do you own?
Franchise
Sole proprietorship
Partnership
Limited Liability Company
Corporation
2. How much is your starting capital? (Specific amount (Optional): ____________)
P50,000 or less
P50,000 – 100,000
P100,001 – 200,000
P200,001 – 300,000
P300,001 – 400,000
P400,001 – 500,000
P500, 001 – 1,000,000
P1,000,001 – 2,000,000
P2,000,001 or more
3. How long have you been in operation? (Specific time (Optional): ____________)
Less than 3 months
More than 3 months
More than 6 months
1 year or more
2 years or more
3 years or more
5 years or more
7 years or more
4. How much Income tax do you pay? (Specific amount (Optional): ____________)
Less than P1,000
P1,000 or more
P5,000 or more
P10,000 or more
P20,000 or more
P30,000 or more
P40,000 or more
P50,000 or more
5. Average Income per year (Specific amount (Optional): ____________)
Less than P10,000
P10,000 – 20,000
P20,001 – 50,000
P50,001 – 75, 000
P75,001 – 100,000
P100,001 – 200,000
P200,001 – 300,000
P300, 001 – 400,000
P400, 001 – 500,000
P500, 001 – 750,000
750,001 – 1,000,000
1,000,001 – 1,500,000
1,500,001 – 2,000,000
2,000,000 or more
6. What are the issues in milk tea operations? (check all that apply)
Location
Competition
Milk tea alternatives (coffee, soft drinks etc.)
Operating expenses
Employee recruitment and competency
Customer retention/preferences
Financial Management
Regulation and Compliance
Technology and Innovation
Others please specify: _____________________________________
7. Does your business meet these legal obligations? (check all that apply)
Legal requirements
Record keeping
Licenses, permits and regulatory requirements
Insurance
Taxation
Employee contracts and just compensation
Legal and ethical selling
8. What milk tea flavors/variants do you offer? (check all that apply)
Okinawa Milk Tea
Wintermelon Milk Tea
Hokkaido Milk Tea
Roasted Milk Tea
Cream Cheese Milk Tea
Matcha Boba Tea
Thai Bubble Tea
Taro milk tea
Honeydew Boba Tea
Coconut Bubble Tea
Brown Sugar Milk Tea
Earl Grey Milk Tea
Yakult + Popping Boba/Fruit
Fruit Milk Tea
Coffee Milk Tea
Chocolate/Mocha Milk Tea
Oolong Milk Tea
Others please specify: _____________________________________
9. What milk tea add-ons do you offer? (check all that apply)
Tapioca Pearls
Popping Boba
Coconut Jelly
Jam
Aloe Vera
Rock salt and cheese
Red Beans
Nata De Coco
Pudding
Chia seeds
Cream Cheese
Others please specify: _____________________________________
10. H
ow many customers/milk teas on average do you serve in a day?
0 – 10
11 – 20
21 – 30
31 – 40
41 – 50
51 – 60
61 – 70
71 – 80
81 – 90
91 – 100
101 – 125
126 – 150
151 – 175
176 – 200
201 – 250
251 – 300
301 – 400
401 – 500
501 – 750
751 – 1,000
1,001 or more
11. W
hat Milk tea flavors are your best sellers? ___________________________
_______________________________________________________________
12. W
hat actions are you doing to attract/retain customers? (check all that apply)
Promos/Freebies
Discounts
Buy one take one
Free add-ons
Loyalty card
Employee – customer interactions
Marketing (ads, social media presence)
Customer feedback and suggestions
Others please specify: _____________________________________
Milk Tea Customers Questionnaire
1. How much milk tea on average do you consume in a month?
1
2–3
4–5
6–7
8–9
10 – 12
13 – 15
16 – 20
21 – 25
26 – 30
2. What milk tea shop/s do you prefer?
________________________________________________________________
3. What milk tea flavors/variants do you prefer? (check all that applies)
Okinawa Milk Tea
Wintermelon Milk Tea
Hokkaido Milk Tea
Roasted Milk Tea
Cream Cheese Milk Tea
Matcha Boba Tea
Thai Bubble Tea
Taro milk tea
Honeydew Boba Tea
Coconut Bubble Tea
Brown Sugar Milk Tea
Earl Grey Milk Tea
Yakult + Popping Boba/Fruit
Fruit Milk Tea
Coffee Milk Tea
Chocolate/Mocha Milk Tea
Oolong Milk Tea
Others please specify: _____________________________________
4. What milk tea add-ons do you order? (check all that applies)
Tapioca Pearls
Popping Boba
Coconut Jelly
Jam
Aloe Vera
Rock salt and cheese
Red Beans
Nata De Coco
Pudding
Chia seeds
Cream Cheese
Others please specify: _____________________________________
5. What improvements/suggestions can milk tea shops do in terms of customer
retention/satisfaction?
Promos/Freebies
Discounts
Buy one take one
Free add-ons
Loyalty card
Customer service
Marketing (ads, social media presence)
New milk tea flavors
Others please specify: _____________________________________
Definition of Terms
Business. An organization or enterprising entity engaged in commercial, industrial, or
professional activities. It can be for-profit entities or non-profit organizations that operate
to fulfill a charitable mission or further a social cause.
Milk Tea. Refers to several forms of beverage found in many cultures, containing some
combination of tea and milk.
Capital. A term for financial assets, such as funds held in deposit accounts and/or funds
obtained from special financing sources. It can also be associated with capital assets of
a company that requires significant amounts of capital to finance or expand.
Income. Money that an individual or business receives in exchange for providing a
good or service or through investing capital. It is used to fund day-to-day expenditures.
Potential Market. The part of the total population that has shown some level of interest
in buying a particular product or service.
Operation. It is the work of managing the inner workings of your business so it runs as
efficiently as possible. Whether you make products, sell products, or provide services,
every small business owner has to oversee the design and management of
behind-the-scenes work.
Customer. An individual or business that purchases another company's goods or
services. Customers are important because they drive revenues; without them,
businesses have nothing to offer.
Satisfaction. The act of fulfilling a need, desire, or appetite, or the feeling gained from
such fulfillment.
Retention. The act of keeping something.
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