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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