Consumption Patterns and Buying Behavior for Fresh Goat's Milk of Lower Income Household in Alaminos, Laguna

Date

6-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jewel Joanna S. Cabardo

Committee Member

Normito R. Zapata, Jr., Glenn N. Baticados, Agnes T. Banzon

Abstract

Fresh goat's milk had been identified to play an important role in the food, nutritional security and economic growth of a country. This agricultural commodity is mostly sold to high-income consumers because of the low supply and high price of the commodity in the Philippines. It is also caused by being underdeveloped of the dairy industry in the country. Due to these major factors, retailers were not able to expand and introduce the product to low-income consumers, limiting their market and opportunities in the industry.

The study was conducted to assess and determine the potential market of fresh goat's milk for lower income class households. The study aims to aid the retailers to expand their market share by reaching these lower income households through this, which is almost the majority of the Philippine population. Retailers of fresh goat's milk can help address the rising concern regarding health and food security and nutritional requirement of low-income households.

Alaminos, Laguna was chosen to be the area of study because it was classified as a 3rd class municipality, where there is a high population of residence included in low-income households and have a high level of awareness and familiarity towards fresh goat's milk because of the presence of several retailers in the area.

Consumer survey, Non – consumer survey, and Key interviews along with Market Scanning were all conducted in Alaminos, Laguna. The consumer survey was conducted to determine the consumption pattern and buying behavior of the consumers of fresh goat's milk, analyze the attributes that are important for them in fresh goat's milk. On the other hand, Non – consumer survey was conducted to determine the buying and consumption behavior of consumers of fresh milk, analyze the attributes that are important for them in fresh milk, willingness to consume and purchase fresh goat's milk and willingness to pay. Both the surveys included questions that gathered the perception of the respondents towards fresh goat's milk. One hundred fifty consumers and one hundred ten non – consumers of fresh goat's milk were chosen among the resident households in Alaminos, Laguna.

The data gathered were analyzed through descriptive analysis. This analysis used frequencies, percentages, and averages to highlight the responses of the respondents. Non – consumer survey revealed that the respondents have a low consumption and buying behavior of fresh milk. Only 42% said they are buying fresh milk and 49% said they are consuming fresh milk. In terms of their frequency of buying and consumption, most of the respondents said that they are consuming and buying fresh milk once every month. Relative to that frequency, the respondents usually consume and purchase one liter of fresh milk. Important attributes of fresh milk based on their consumption and buying behavior were also gathered. The attribute that was most important for them is the taste for both buying and consumption. Only 58 of the 110 respondents said that they are willing to purchase and consume fresh goat's milk. Out of the 58 respondents, 38 said that they are willing to pay a liter of fresh goat's milk for 100 – 120 pesos.

As for the Consumer Survey, 61% of the respondents said that they were regular buyers and consumers of fresh goat's milk. 79% of the 150 respondents said that they purchase the product was at a dairy milk store. Moreover, 78 of the respondents said that they were buying and 42 of the respondents said they were consuming fresh goat's milk occasionally, though results also revealed that the occasional pattern was followed by buying and consuming fresh goat's milk on a regular monthly basis. In addition, the majority of the respondents identified that they were usually buying and consuming one liter of fresh goat's milk. As for the important attributes based on consumption and buying behavior, results revealed that nutritional content was the most important for the consumers.

The socio-demographic profile such as age levels, household size, educational attainment, and total monthly income, were cross-tabulated with their frequency of purchase and consumption to determine if they have a significant relationship. Chi-square independence was used to determine this significant relationship among the variables to be tested. The test revealed that total monthly income and age levels both have a significant relationship with the frequency of purchase and frequency of consumption of fresh goat's milk.

The perception of fresh goat's milk was gathered from both the consumers and non – consumers to be able to identify if there was a difference in their perception about fresh goat's milk. Among the non – consumers, the top statement that they strongly agree on was "Fresh goat's milk is good for the health especially for children and elderly" with a weighted mean of 3.62 for non – consumers and 3.76 for consumers of fresh goat's milk while they strongly disagree with the statement "Fresh goat's milk is for the high income/rich people only" with both a weighted mean of 1.28

The issues, problems, and barriers to entry for fresh goat's milk were determined through the interview with the retailers present in the area. In summary, the problems that were identified were low demand, lack of information disseminated regarding the product, expensive product, quality standardization.

After the results of the study, strategies were formulated on how to position fresh goat's milk in the market of low-income households. Matched with the results obtained recommendations were formulated for the study: (a) Product quality must be addressed since one of the identified issues was its quality standardization which affected the taste and the smell of the product. This also was seen in the results as one of the reasons why consumers are hindered from consuming fresh goat's milk. (b) Exploiting more accessible distribution channels was also recommended for the product to increase market range. (c) Increasing the awareness and familiarity of the product through media presence and advertising in the stores that are present in low-income communities to disseminate the necessary information regarding the product. (d) The low-cost high-quality strategy should be done as an introductory strategy for the product since one of the issues with fresh goat's milk was its high price. Retailers can start with the price within the range of 100-120 since that was the range that most of the respondents are willing to pay.

As for the positioning of the product in the market of lower income households, it should be position as a healthy beverage, since the respondents from both surveys highly perceived that fresh goat's milk was good for the health especially for children and elderly, which is mostly present in a household.

Language

English

LC Subject

Goat milk industry, Consupmption (Economics)--Social aspects

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 O76

Notes

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Document Type

Thesis

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