Consumer Preference and Purchase Intention on Frozen Yogurt Among College Students in Calamba, Laguna

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Remund Jordan D. Labios

Committee Member

Chris Edwin B. Bonalos, Jennica Amielle M. Mora, Melodee Marciana E. De Castro

Abstract

The global frozen yogurt market is forecasted to grow at a CAGR of 5.1% from 2022 to 2031, potentially reaching around USD 17 billion in revenue by 2031 (Market Square Insights, 2023). Over the past years, there has been a notable expansion in the frozen yogurt market and its awareness, fueled by shifting consumer preferences and lifestyle choices. Within the diverse consumer segments, college students stand out as a significant demographic, characterized by their unique tastes, preferences, and buying behaviors. This study aimed to investigate college students preference and purchase intentions for frozen yogurt in the context of Calamba City, Laguna, and identify factors that drive their consumption. By analyzing the factors that drive the preferences and purchase intentions, it enables businesses and marketers to better tailor their offerings for different consumer segments, especially for college student consumers. The significance of this study is enhancing the market strategies and product offerings accessibility for businesses in Calamba, Laguna. With limited frozen yogurt shops in the area, understanding consumer preferences can also reveal broader market trends, particularly among college students, who often drive consumer trends.

Fortune Business Insights (2020) reported that the Asia Pacific Region is witnessing growth driven by changing lifestyles and a rising of health-conscious consumers. Moreover, digital platforms increase positive awareness, with the frozen yogurt market growing due to increased online sales, improved logistics, simplified payment methods, and international market expansion opportunities, it is an opportunity for greater accessibility and consumer reach. However, these businesses encounter difficulty in differentiating their products in a competitive environment due to market saturation. The increasing availability of substitutes in the frozen yogurt market poses a potential obstacle to its growth (Chaudhary, 2023). Consumer behavior is a dynamic process, characterized by the interplay between preferences and purchase intentions, creating a feedback loop. The study was grounded in the conceptual framework from various studies. Different extrinsic and intrinsic factors can shape the preferences and purchase intentions of college students when it comes to frozen yogurt. From this, potential marketing strategies or insights mar emerge from studying consumer behavior.

The study used quantitative research design to efficiently observe a large portion of the population with convenience sampling methods to gather respondents. The primary data was obtained through surveys, particularly self-administered questionnaires. The study employed descriptive data analysis techniques to point out trends and relationships. Modified Kruskal Drivers Analysis identified the key factors that drive both consumers preference and purchase intentions while the Spearman Rank Correlation Coefficient assessed the likelihood of purchase on their preferences.

The study collected a total of 192 respondents, with 68.23% consumers and 31.77% non-consumers who are mostly consists of 18-25 year old student with an active lifestyle. Consumers had more product knowledge from media, specifically with its benefits, compared to non-consumers. The most famous frozen yogurt was ice cream although they see it as a less healthy compared to frozen yogurt. Among college students, the influence of their purchases was mostly from their friends and due to the good taste of the product. Many non-consumers were hesitant to consume frozen yogurt even though a sizeable portion of the respondents intent to buy frozen yogurt in the future. Their hesitations were rooted from not being a fan of the product, preference for other frozen desserts, and lack of access to frozen yogurt shops. Additionally, non-consumers perceive frozen yogurt as good and beneficial, but they see it as an overpriced dessert. Non-consumers will open to trying the product if it has good taste and smell, lower prices, and good reviews.

The main constructs of the study were derived from both the consumer and non-consumer respondents. Three factors were assessed, particularly intrinsic factors, and purchase considerations, to determine which affect their preferences and purchase intentions towards frozen yogurt. For both the consumers and non-consumers, the intrinsic factors that drive their preferences are pleasure, enjoyment, and satisfaction of consuming the product. Moreover, the store reputation and the services of salespeople are important extrinsic factors for consumers while convenience and ease of access to transportation were taken into account by non-consumers. Overall, the purchase considerations that drive preferences of both consumers and non-consumers are product availability and easy access to the store, they would prefer frozen yogurt and frozen desserts if it is readily available to them.

On the other hand, the purchase intentions of consumers were driven by intrinsic factors of satisfaction and enjoyment, which are in line with the intrinsic factors that drive their preferences. While non-consumers will intend to purchase frozen yogurt if it affects their well-being positively. For the extrinsic factors of consumers, it was again driven by the service of salespeople. Conversely, the intention to purchase of non-consumers was driven by extrinsic factors of convenience. Lastly, the most significant purchase consideration that drove the purchase intention of consumers was product availability, however, the creaminess and texture of the product were more important for non-consumers.

It can be said that a strong preference for the product increases the likelihood of purchasing it for consumers since there is a notable correlation of 0.301 between preference for frozen yogurt and purchase intention. If consumers strongly prefer frozen yogurt, it directly influences their purchasing decisions, leading to increase demand (Yong, 2021). On the contrary, non-consumers did not exhibit a direct link between the preference for frozen desserts and the intention to purchase. The accessibility and location of a product are key factors influencing consumer preferences for store selection, however, non-consumers are more inclined to consider purchasing products they perceive as high quality (Hakim et al., 2020).

Consumer preference and purchase intention are mainly on the positive side, even though there are few hesitations when consuming frozen yogurt, especially for non-consumers. These reservation are related to concerns or uncertainties about the product, such as being overpriced, tangy taste, and poor texture. The barrier should first be exceeded by leveraging the availability and ease of access to frozen yogurt shops. For both consumers and non-consumers, the insights and recommendations are centered on addressing consumer demands. Business would benefit from expanding their presence in areas such as malls. convenience stores, proximity to schools and universities, and tourist spots. Additionally, marketers can capitalize on promoting the health advantages of consuming frozen yogurt to the market, considering that both consumers and non-consumers view frozen yogurt as healthier option compared to other frozen desserts.

Language

English

LC Subject

Frozen yogurt industry

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 D43

Notes

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Document Type

Thesis

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