Competency Level of Milk Tea Shops in San Nicolas, Pangasinan:

An Analysis

By

KERR JAYE D. DELA PAZ

July 2024
 DECLARATION OF ORIGINALITY, CONFLICT OF INTEREST AND

FUNDING

This research is original and has not been submitted for another degree.

All sources used in this research have been properly acknowledged or

properly cited.

The authors declare that there is no conflict of interest in this research.

The authors have not received any funding from any source in the course of

completing this research.

KERR JAYE D. DELA PAZ

 ACKNOWLEDGEMENT

The researcher extends his heartfelt thanks and deepest gratitude to

everyone who contributed to this research. It is an honor to have your efforts

and knowledge make this work a reality.

To the parents, family, and friends, thank you for the support, motivation,

and patience, and for the prayers which helped the researcher to complete this

research. Lastly, thank you LORD ALMIGHTY for providing the researchers with

the power, strength, determination, and guidance to overcome all the

challenges in this work.

K.J.D.D
 Competency Level of Milk Tea Shops in San Nicolas, Pangasinan: An
Analysis

Kerr Jaye D. Dela Paz

Purok Pablo, Brgy. Dalumpinas, San Nicolas, Pangasinan
#505 J. Valen St. Brgy. Alac San Quintin, Pangasinan
[email protected]
09151316172/09150684195

ABSTRACT

This study aims to determine the Competency Level of Milk Tea shops in San Nicolas,
Pangasinan mediating the marketing mix 4P’s in terms of Product, Promotion, Place,
and Price. This study is a descriptive method type and a quantitative style of research
and the researcher used a convenience sampling technique. In conclusion, the
Competency assessment reveals milk tea shops in San Nicolas excel across
dimensions, ensuring exceptional experiences. Customers perceive high competency
but note areas for improvement. The discrepancy between management and customer
perceptions underscores the need for alignment to enhance competitiveness and
satisfaction. Thus, Milk tea shops in San Nicolas excel in customer satisfaction and
value delivery. To sustain success, they should prioritize feedback, staff training,
product diversification, promotions, place enhancement, pricing optimization, and
community engagement. Customers seek improvements in product variety and
bundled deals. Bridging the gap between management and customer perceptions
requires enhanced communication and performance reviews to align assessments
with experiences, ultimately improving competitiveness and satisfaction.
Keywords: Competency Level, Milk Tea shops, Marketing Mix, 4P’s, Product, Promotion, Place,
and Price, Customer, Management
 INTRODUCTION

Background of the Study

Creating a new business is a process troubled with difficulty and failure

and many businesses fail to survive. Some fail because of the rapid growth of

similar industries which is a very big challenge to business, especially to new

entrants in the business world. In tough rivalry in the market, the only truly

sustainable advantage comes from out-innovating the competition (Moore,

2019).

Out-innovating the competition means having to think out of the box or

thinking ahead of the competitors. There are several factors contributing to the

competition of similar businesses, prices, services, places especially the

quality of products. Businesses must continuously innovate to survive the

competition.

As stated by Wong in the year 2020, competency is a set of interrelated

knowledge, skills, and attitudes that represent a key component of a person’s

job role and responsibility, that is associated with performance in a job, that

can be measured against well-established standards, and that can be

reinforced through training and development. Thus, to measure the

competency of a business, the researchers want to mediate the marketing mix.

Therefore, Marketing mix is the set of controllable marketing variables that the

firm blends to produce the response, Ali (2020) states that, in essence,

marketing mix are variable that the organization controls to influence its
customers to Achieve its objective and the researcher wants to focus on the 4Ps

of marketing mix which are product, price, place, and promotion.

Based on the milk tea shop owner, the popularity of milk tea shops in San

Nicolas, Pangasinan, reflects a larger trend in the food and beverage industry.

These shops offer more than just quality milk tea; they provide a cozy

atmosphere, locally delicious snacks, and unique drink options. This

combination appeals to consumers seeking a personalized and comfortable

experience, especially among students and young people.

Furthermore, according to the milk tea shop owners in San Nicolas,

Pangasinan has transformed into a versatile social hub, surpassing its initial role

as a mere beverage outlet. These establishments now cater to a variety of

activities such as relaxation, socializing, studying, and remote work. This

multifaceted nature has significantly bolstered their appeal and popularity,

particularly among younger demographics like students. This versatility stands

out as a key competitive advantage for milk tea shops in the area.

The study by Dhisasmito and Kumar (2020) likely sheds light on the

evolving role of coffee shops as social and workspaces, not just places to get

caffeinated beverages. This aligns with the broader trend of coffee shops

becoming integral parts of communities, offering more than just a caffeine fix

but also providing a conducive environment for various activities and

interactions.

Milk tea has gained worldwide popularity in recent years as insight by

Wu in 2020. Thus, it refers to an umbrella term encompassing all beverages

sold in milk tea shops, such as milk tea, fruit tea, floral tea, bubble tea, and

others. Furthermore, the study of Shi et al. in 2021 states that the inclusive

definition is based on the emerging trend of combining ‘milk tea and other tea

drinks’ in the present Chinese milk tea market, gradually becoming

mainstream

People are more adventurous and love to try new tastes and experiment

with new flavors. They love everything fresh, exciting, and beneficial to them.

There is a continuous demand for Milk Tea Shops since it was on trend and new

in the market. Business competence is a cornerstone for small businesses,

especially in industries of food and beverages where marketing, innovation,

and competence are the key. Without the ability to innovate, market effectively,

and drive growth, businesses may struggle to compete. In the food and

beverages sector, the competence of entrepreneurs directly impacts

marketing performance and overall business development.

Therefore, a lack of management skills can hinder the ability to

understand customer needs, promote products effectively, and adapt to market

changes. Thus, investing in competency among business owners is essential for

achieving sustained success and competitive advantage in this industry

(Sya’roni, 2019). These demands encouraged entrepreneurs to build these

shops. Consequently, the height of competition became very high which

challenges every business to be innovative to sustain their competency in the

market.
 Milk Tea Stores are one of the most popular businesses nowadays. Milk

tea shops became prevalent, not just among upper- and middle-class

professionals, but also among high school, and college students, and even

individuals who simply look for a good ambiance, a cool place to hang around

while enjoying a sip of their favorite milk tea product. Zhao et al., in 2021

supplement with the statement that people patronize this product mainly

because it brings different kinds of sensations causing them to feel refreshed

and relaxed aside from satisfying their taste buds.

Literature comprises the famous tea-based drink that originated in

Taiwan and Taichung, Taiwan, in the 1980s. It was invented by a Taiwanese tea

shop owner, Liu Han-chieh, and his product development manager, Lin Hsiu

Hui. The milk tea that we know today was discovered by adding different

ingredients such as fruits, syrups, and tapioca pearls into different teas with

milk beverages (Ong et al., 2021).

The innovation of tea-based drinks comes even by adding fruit-flavored

powders, fruit juice or pulp, serving beverages that are hot or cold, using

different types of teas, like black, Thai, and even the classic tea we loved as

stated by Zetz in 2019 also there’s the change of milk powder to milk, likewise,

the way drinks were sweetened.

Milk tea was first introduced to the Philippines by Juliet D. Herrera-Chen

and Peter L. Chen in December of 2008 with the hope that Filipinos would

appreciate it. In 2009, milk tea made its way into universities, kicking off a

thriving market. It started competing with other market trends such as cafés
and coffee shops. Local milk tea shops such as “I Love Milk Tea” entered the

country in 2011 and quickly rose as one of the top milk tea shops in the industry

(Regiena Sy, 2021).

However, according to Bermejo et al. in 2019 remarked that the milk tea

market reached its pinnacle in 2013. While the country has long been known

for its instant coffee, there is still an increasing number of cafes and a rising

interest in specialty and brewed coffee. The growing appreciation and

purchase of coffee kiosks boomed in 2020 and are about to surge further by

2025 as projected by MacDonnell in 2022.

Thus, different milk tea brands have their specialty; however, they offer

different levels of attributes. These attributes may include brands, price range,

size of tapioca pearls, sugar level, the amount of ice, cream cheese inclusion,

and the type of milk tea. Milk tea attributes are consumers’ preferred set of

combinations on their ordered milk tea. For instance, when someone buys a

milk tea, they ask about the type of milk tea, sugar level, size of the pearls, and

level of ice. Thus, Ong et. al., in 2021 indicate that it is very important to analyze

these attributes, particularly for the marketing strategy.

The study of Juguilon et al., in 2022 was conducted to identify the

marketing mix effect on increasing the competitiveness and adaptability in the

market of RJM Milk Tea Supplies in Calamba, Laguna. The results of this study

indicate that the marketing mix 4Ps have a significant relationship between

customer perception and the marketing mix toward business competency.

Therefore, results show that there are no significant differences in customer

perceptions of the elements of the marketing mix, or 4Ps between the

management perception of business competency. Similarly, Khanna in 2021

utilized conjoint analysis to understand the factors impacting consumer

preferences and their evolving purchase intention for numerous products

available in highly dynamic beverage industries. The results showed that

branding, health benefits, price, and calories are the various factors that

determine the major change in the focus of consumers toward milk and fruit-

based drinks.

It seems like Lee and Vega's study in 2021 highlights the importance of

sustainability factors for selected milk tea shops. They suggest that focusing on

providing healthy alternatives and innovating exceptional tea products that are

both affordable and high quality can contribute to achieving full customer

satisfaction and business competency. This suggests that for milk tea shops to

thrive, they need to consider not only the quality and affordability of their

products but also their impact on health and the environment. This approach

aligns with the growing consumer demand for more sustainable and health-

conscious options in the food and beverage industry.

As specified by Bastasa et. al., in 2022 milk tea was a fast-growing

business during that year. As the demand for milk tea increased the number of

competitors also started to multiply. Thus, milk tea shop owners started to

market their products for the longevity and sustainability of their business.

Moreover, In the study conducted by Bañez et al., in the year 2022, with the

continuous growth of the Milk tea industry, new competitors appear every time.
La Teacia Artisan Milktea offers various Milktea flavors and additional menus

that attract customers. Therefore, offering a variety and unique milk tea flavors

is indeed one of the competitive advantages in the market.

The study conducted by De Jesus (2020) focuses on understanding the

rising popularity of the milk tea industry. Its primary objective is to examine

the profile of respondents and evaluate the 4Ps of marketing: product, price,

promotion, and place. The assessment reveals that respondents prioritize

factors such as convenience, fast service, quality ingredients, and building

customer loyalty in their businesses. Regardless of demographic or business

profile, all milk tea shop owners in Bongabon place significant importance on

marketing strategies for their businesses. Each owner adopts unique strategies

tailored to their specific needs and objectives.

The study conducted by Zhang et al. (2020) aims to emphasize the

significance of the marketing mix elements (product, price, place, and

promotion) in gaining a competitive edge within the small and medium

enterprise (SME) sector in the Addis Ababa City Administration, Ethiopia.

Using a descriptive analysis approach, the research scrutinizes the collected

data to assess the impact of the marketing mix components (product, price,

place, and promotion) on enhancing the competitive advantage of SMEs in

Addis Ababa.

The findings of the data analysis revealed that all aspects of the

marketing mix (product, price, place, and promotion) exert a considerable

influence on achieving competitive advantage within the SMEs of Addis Ababa

City. Particularly, price emerges as the most critical component for attaining

competitive advantage. To effectively compete with both local and

international rivals, the SME sector in Addis Ababa should focus on enhancing

the quality of its products, optimizing distribution channels, and refining

promotion strategies. The integration of the marketing mix and competitive

advantage represents a novel approach within the SME sector of Addis Ababa

City.

Thus, few of them used direct advertising and discount promo as a tool

in promoting their business. The taste of their products is what attracted the

customers most. Results of the study also showed the continuous effort of the

owners in making strategies that can help and improve their business like

making the image of their products more appealing and healthier to their

customers. Current challenges faced by the respondents are: there was a fast

entry of competitors; the scandal issue directly affected the business as well the

behavior of the consumers. But despite that, the management of different Milk

Tea Stores always remains positive, confident, and ready to devise ways to

resolve problems.

The researcher wanted to promote sustainable development goals

wherein, SDG 8: Decent Work and Economic Growth – Competency level can

stimulate economic activity by encouraging repeat business, leading to

increased sales and revenue for businesses. This, in turn, can create more job

opportunities and promote sustainable economic growth. SDG 9: Industry,

Innovation, and Infrastructure – competency level can drive innovation within

the milk tea industry by encouraging businesses to develop creative strategies

for competency and engagement. SDG 12: Responsible Consumption and

Production – competency level can encourage customers to patronize

businesses that prioritize sustainable and ethical practices, such as

environmentally friendly packaging, fair trade sourcing, and waste reduction

initiatives.

Conceptual Framework

In relation to the study and its goal to obtain a deep understanding of the

competency level of milk tea shops mediating the marketing mix, the

researchers want to adopt this research model and integrate it to examine the

competency level of businesses specifically for milk tea shops. It was

developed and validated by Zhang, You Tang, and Hagos Mesfin in 2020 and is

the most used model for adoption in the business and tourism industry

according to Barakat & Wada in 2021.

Figure 1. Framework of the Study

 The marketing mix is a set of marketing tools used to achieve the

company's marketing goals in the target market, and the four variables (4P) in

the marketing mix must support each other to achieve the goals set according

to (Fadhilah et al., 2022). Marketing strategy tools consisting of product, price,

location, and promotion, known as the marketing mix, have an important role

in achieving success in a company's marketing activities (Aulia et al., 2022).

According to Christopher and Peck in 2022, the marketing mix is an initial

concept for developing marketing strategies that are still relevant and need to

be considered in marketing activities, even though marketing has shifted to a

consumer-oriented concept.

According to Armstrong (2022), Products are an important element in

marketing that involves planning, developing, and modifying products or

services that affect various types of products or services. A product is a

collection of attributes that include features, functions, benefits and uses that

aim to fulfill consumer satisfaction according to Keller in 2020. Products have a

big influence and as a basis that impacts consumption according to (Chotima,

2022). Product indicators according to Keller in 2020 namely start from form,

features, customization, performance quality, conformance quality, durability,

reliability, repairability, style, and design. Products have an important role in

influencing competency, both in the internal and external factors (Schiffman et

al., 2020).
 Price is the amount of money charged for a particular product and

companies set prices in various ways. Pricing is very important in the face of

increasing competency and limited demand. Factors that influence pricing

include estimating product demand, competitor reactions, and other marketing

mixes according to Sunyoto in 2022. Price is measured through price levels,

competitor product prices, purchase discounts, payment periods, and payment

system variations. Indicators of price are customer demand, costs, profit

orientation, and competitor prices (Nasution et al., 2022). The price perspective

for consumers is the costs that must be incurred by consumers to own and

utilize the products and services offered, and price can also be used as a

differentiation between the company's products and competitors' products

(Chotima, 2022).

Place is an important factor in ensuring the availability of production

goods in sufficient quantities, and companies must consider the right location

and time for product distribution according to Kotler and Armstrong in 2022.

Indicators of distribution channels or places are needed by every company to

provide the form, time, place, and ownership of products to consumers, also

showing that distribution can be measured through product location, product

availability, competitor distribution, sales areas, and variations in delivery

tools. according to Assauri in 2022, The location of the service chosen is an

important decision because it influences how and where the service is

delivered to consumers, as well as providing the value and benefits of the

service (M. Dayat, 2019).

 Promotion is used as a marketing communication medium to introduce,

invite, persuade, and influence consumers to consider, buy, and consume

products offered by companies or marketers according to Keller in 2022. Using

internet media as a marketing tool allows products to be known globally and

become a consideration for global coverage companies (Sayahbani et al.,

2021). Promotional media via internet platforms can connect communication

between marketers or companies and consumers, and one example of effective

online promotional media is online social media. Promotional factors can also

be used as a medium for educating consumers about the prices they have to

pay (Chitomah, 2022). A marketing program will not be successful without an

effective communication program that provides promotions and education to

target customers. The indicators of this promotional component have three

important roles, namely providing the required information and media

suggestions, as well as persuading customers about the advantages of a

product or service (M. Dayat, 2019). According to Tjiptono in 2023, Promotion

is an important element in the marketing mix which aims to provide

information, influence, and remind consumers about the company's brand and

products.

Paradigm of the Study

The input indicates the requirements needed for the collection of data.

This implies the status of the Competency Level of Milk Tea Shops in San

Nicolas, Pangasinan as perceived by the management in terms of product,

price, place, and promotion. Likewise, identify the Competency Level of Milk
Tea Shops in San Nicolas, Pangasinan as perceived by the customers to the pre-

determined marketing mix. Moreover, if there is a significant difference in the

competency level of the milk tea shops as perceived by the respondents.

Meanwhile, the processes are the procedures needed to be done by the

researchers to determine the Competency Level of Milk Tea Shops in San

Nicolas, Pangasinan as perceived by the management in terms of product,

price, place, and promotion. the Competency Level of Milk Tea Shops in San

Nicolas, Pangasinan as perceived by the customers to the pre-determined

marketing mix. Nevertheless, determining the significant difference in the

competency level of the milk tea shops as perceived by the respondents.

The output portrays the output of the study where the researchers

propose a measure to increase the Competency Level of Milk Tea Shops in San

Nicolas, Pangasinan.
 INPUT PROCESS OUTPUT
1. Competency
Level of Milk 1. Determining the
Tea Shops in Competency Level
San Nicolas,
of Milk Tea Shops
Pangasinan as
perceived by in San Nicolas,
management Pangasinan as
in terms of: Proposed
perceived by the
management in marketing
a) Product
b) Price terms of product, strategies to
c) Place price, place, and
d) Promotion improve their
promotion
2. Competency 2. Determining the strategies and to
Level of Milk Competency Level increase the
Tea Shops in
of Milk Tea Shops
San Nicolas, Competency Level
Pangasinan as in San Nicolas,
perceived by Pangasinan as of Milk Tea Shops in
customers in
perceived by the San Nicolas,
terms of:
customers in terms
Pangasinan as their
a) Product of product, price,
b) Price place, and source of
c) Place
promotion competitive
d) Promotion
3. Determining the
advantage.
3. Significant significant
difference on
difference on the
the
competency competency level
level of milk of milk tea shops as
tea shops as
perceived by the
perceived by
respondents respondents

Figure 2. Paradigm of the Study

Statement of the Problem

This study aimed to determine the Competency Level of Milk Tea Shops in

San Nicolas, Pangasinan.

Specially, it sought to answer the following questions:

1. What is the Competency Level of Milk Tea shops as perceived by the

management in terms of:

a) Product

b) Price

c) Place

d) Promotion

2. What is the Competency Level of Milk Tea shops as perceived by the

customers in terms of:

a) Product

b) Price

c) Place

d) Promotion

3. Is there a significant difference in the competency level of Milk Tea

Shops as perceived by the management and customers?

4. What marketing strategy can be proposed to increase the level of

competency of Milk Tea shops in San Nicolas, Pangasinan?

Null Hypothesis

There is no significant difference in the competency level of Milk Tea

Shops as perceived by the management and customers.

Objective of the Study

This study aimed to determine the competency level of Milk Tea Shops

in San Nicolas, Pangasinan. Specially, it seeks:

1. To determine the Competency Level of Milk Tea shops as perceived by

the management in terms of product, price, place, and promotion.

2. To also determine the Competency Level of Milk Tea shops as perceived

by the customers in terms of product, price, place, and promotion.

3. To determine the significant difference in the competency level of Milk

Tea Shops as perceived by the management and customers.

4. To propose measures or action plans to improve their strategies and to

increase the competency level of Milk Tea Shops as a source of their

competitive advantage.

Scope and Delimitation

The researchers delimited the study on the customers of milk tea shops

in San Nicolas, Pangasinan. The respondents will be either residents of San

Nicolas, Pangasinan, or any potential customers buying their products. The

study focuses on the Competency Level of Milk Tea Shops in terms of product,

price, place, and promotion.

Significance of the study

This study sought to assess the Competency Level of Milk Tea Shops in

San Nicolas, Pangasinan. Hence, the study is considered important to the

following:
 To Milk Tea Shop Owners. This study might provide information about

the perception of the customers on how they see milk tea shop's competencies

for others. This study will enlighten the owners on what they need to do to

strengthen and improve their strategies to be a source of competitive

advantage.

To Customers. This study gave information about what competencies

milk tea shops have. This manifests the goods and services that milk tea shops

can offer to them. Also, to impart information on what they need to know about

the products they avail about the ingredients, services, and how milk tea shops

handle their orders.

To Future Researchers. The ideas presented might be used as

reference data in conducting new research or studies. This study will benefit

conducted.

Definition of Terms

Milk Tea shops: also known as tea houses or bubble tea shops, offer a variety

of tea-based beverages, often flavored with toppings like pearls or boba.

Competency Level: refers to an individual’s proficiency or ability in particular

skills.

Marketing Mix: The marketing mix is a set of marketing tools used to achieve

the company's marketing goals in the target market.

Product: means products offered to the market by service providers to meet

the main needs of the target customers of the bubble tea business. Products
include tangible and intangible things such as packaging, quality, branding,

and service and provider reputation.

Price: refers to the amount that consumers of bubble tea have to pay to obtain

goods and services from a business. Customers will have a comparison

between the value of the product and the price paid, such as the cost of milk

tea, pearls, etc.

Place: refers to activities related to the distribution of goods and services of

the bubble tea business. It affects the perception of the value of bubble tea

presented to consumers by considering the location of the shop (Location) and

channels in which products and services are presented (Channels).

Promotion: means communicating and influencing customers to increase the

consumption of bubble tea by using various incentive methods such as

advertising, promotion, and public relations.

 METHODOLOGY

This chapter shows the research design, locale and population of the

research, respondents of the study, data gathering tool, data gathering

procedure, and the statistical treatment of the data.

Research Design

This study is a quantitative style of research because the researcher

gathered the data using a survey questionnaire to easily interpret the data

needed as it has a descriptive equivalent represented by a four (4) Likert scale

to rate each indicator by numerical data. Also, the researcher used

Convenience sampling a non-probability sampling method where units are

selected for inclusion in the sample because they are the easiest for the

researcher to access.

This study used descriptive research method to determine the

competency level of Milk Tea shops as perceived by the management in terms

of product, price, place, and promotion, it will also be used to determine the

competency level of Milk Tea shops as to the pre-determined factors perceived

by the customers, and lastly, it will be used to determine the significant

difference in the competency level of Milk Tea Shops as perceived by the

management and customers.

According to Creswell (2023), the descriptive research design is a study

that describes the characteristics of a population or phenomenon being

studied. Primarily used to gain an understanding of a group or phenomenon.

This involves collecting data through surveys, interviews, or observation.

Locale and Population of the Study

This study aimed to determine the status and number of operating Milk

Tea Shops in San Nicolas, Pangasinan, and how they complied with and coped

with the competency level in the tough competition in the market.

The population of the study is in San Nicolas, Pangasinan which had a

39,778-population based on the latest PSA census, and the researchers decided

that 396 were selected as respondents and 10 came from the milk tea shop

management as it is a convenience sampling and by the computation of Slovin’s

formula and 10 of them are from milk tea management. Likewise, research

conducted in 2021, in Bangkok, Thailand wherein approximately fifty thousand

population and based on Slovin's formula, the researchers used this formula to

determine the sample size and 396 were selected as respondents (Romyanan,

2021)

Convenience sampling is a non-probability sampling method where

units were selected for inclusion in the sample because they were the easiest

for the researcher to access. Slovin’s Formula was developed by Robert Slovin.

It is used to determine the appropriate number of participants/samples in a

survey. This determination of sample size is based on the availability of the

number of populations (Kassiani Nikolopoulou, 2023).

Data Gathering Instrument

The data-gathering instruments to be used were the researcher's

adapted questionnaire from the study of Gerald E. Umeze and Susan B. Ohen

(2015) entitled “Marketing Mix Strategies and Entrepreneurial Competence:

Evidence from Micro Restaurant in Calabar Metropolis, Cross River State,

Nigeria. The participants are informed as to the type of research, the objective,

and the significance of the study, as well as the structure of the questionnaire.

The instruments were composed of two sets. The first set is the survey

questionnaire for Management and the second set of questionnaires is for

customers to determine the competency level of milk tea shops and their

significant differences. The questionnaire is composed of statements

determining the competency level of milk tea shops wherein respondents

answer each given question based on the 4-point rating scale with its

corresponding descriptive equivalent and verbal interpretation wherein (4)

means strongly agree, (3) agree, (2) disagree, and (1) strongly disagree.

Data Gathering Procedure

After validating and pretesting the questionnaire's reliability, a letter was

addressed to the Dean of Panpacific School of Business Dr. Marjorie S.

Fernandez to ask permission to conduct the study with the respective areas of

San Nicolas, Pangasinan. Also, a letter to the respondents is indicated in the

survey questionnaires.

Questionnaires were made by adapting questionnaires from other

research that is related to competency to formulate questions per factors. The

questionnaire was validated in the given validation tool serves as the rubrics

for validating the questionnaire by the 3 experts: Shawn Michael C. Dela Rosa,

Monique Justin Dingal, and Ananias Ianne Rave Verzosa, after the evaluators

have validated the survey questionnaire, the researchers upon approval,

copies of the questionnaire were personally distributed to the chosen

respondents after talking with them. The respondents were able to answer the

questionnaire with ample time given to them. The questionnaires were

gathered, tabulated, and analyzed with the use of both descriptive and

inferential statistics.

Ethical Consideration

The researchers sought permission from customers and the owners of

Milk Tea Shops. The participants were informed as to the type of research, the

objective, and the significance of the study, as well as the structure of the

questionnaire and the letter intended for them. The letter for the respondents

indicates the currently enrolled students with their title as the subject for the

conduct of the study and to ask permission to participate in the survey by

answering the given questionnaire.

Furthermore, the said participants were adequately briefed as to their

right to dismiss their participation anytime they want. Respect for their privacy

and the privilege not to disclose any intimate information about their business

operations is respected throughout the interview and rest assured that the

information revealed is to be kept with strictest confidentiality and will be used

for academic purposes only.

Treatment of Data
 Research questions were rated according to the scales that they believed

were suitable to their answers to the questions given.

The statements of problem one and problem two were interpreted by

using the Average weighted mean (AWM) in which each observation in the data

set is assigned or multiplied by a weight before summing to a single average

value. In this process, each quantity to be averaged is assigned a weight that

determines the relative importance of each quantity. The average weighted

mean involves multiplying each data point by its weight and summing those

products. Then sum the weights for all data points. Finally, divide the weight

value of products by the sum of the weights.

To determine the Competency level of Milk Tea shops in San Nicolas,

Pangasinan, the researchers used Average Weighted Mean (AWM), which was

interpreted by the following criteria:

Table 1. Pre-set Criteria to Determine the Competency Level

of Milk Tea Shops in San Nicolas, Pangasinan
Scale Range/Limits Verbal Interpretation
4 3.25 – 4.00 Highly Competent
3 2.50 – 3.24 Competent
2 1.75 – 2.49 Moderately Competent
1 1.00 – 1.74 Incompetent

Statement of problem three dealt with the significant difference the

researchers utilized T-test. A t-test is an inferential statistic used to determine

if there is a statistically significant difference between the means of two

variables (RR Wadhwa, 2023).

 RESULTS AND DISCUSSIONS

This chapter discussed the results gathered from the data to determine

the competency level of milk tea shops in San Nicolas, Pangasinan in terms of

product, promotion, place, and price. Also, it discussed how the management

and customers perceived the competency level of milk tea shops in San

Nicolas, Pangasinan to determine its significant difference.

The Table 1. A shows the results of the weighted mean together with the

descriptive equivalent as perceived by the management for the factor product.

Same through with Table 1. B as it shows the results of the promotion.

Meanwhile, in Table 1. C are the results in the factor place. Lastly, the results

for the factor price are shown in Table 1.D.

On the other hand, in the proceeding tables are the weighted mean

together with the descriptive equivalent as perceived by the customers for the

factor product as per Table 2.A. Table 2. B shows the results in the factor

promotion. Meanwhile, in Table 2. C are the results in the factor place. Lastly,

the results for the factor price are shown in Table 2.D.

Furthermore, 3. A, 3. B, 3. C, and 3.D shows the results for the significant

difference in the Competency Level of Milk Tea Shops in San Nicolas,

Pangasinan as perceived by the Milk Tea Shops Management and Customers

of Milk Tea Shops in San Nicolas, Pangasinan in terms of product, promotion,

place, and price.

 Table 1. A; Competency Level of Milk Tea Shops in San Nicolas,
Pangasinan in terms of Product as perceived by Management

Product Mean Interpretation

Packaging used by the Milk Tea shops (e.g.
cup, straw, cup handler) 4.00 Highly Competent

Powdered Flavor used by Milk Tea shop Highly Competent

4.00
Different Milk tea flavors offered by Milk Tea
shops 4.00 Highly Competent

Add-ons or toppings offered by Milk tea shops

(e.g. Tapioca pearls, Pudding, Jelly, whipped Highly Competent
4.00
cream, Sprinkles, and mallows)

Tea bags in making milk tea used by Milk tea Highly Competent
3.60
shops
Overall Weighted Mean 3.92 Highly Competent

Table 1. A; shows the competency level of milk tea shops in San Nicolas,

Pangasinan in terms of Products as answered by the management. The

indicators being analyzed and tabulated under the factor product; imply that

the milk tea shops in San Nicolas embarked on a Highly Competent impression

towards management.

The indicator that got the highest weighted mean of µ=4.00 Is the

Packaging used by the Milk Tea shops (e.g. cup, straw, cup handler), and it has

a descriptive equivalent of “Highly Competent”. Milk tea shop packaging, like

cups, straws, and cup handlers, is highly competent due to its functionality,

durability, and eco-friendliness. Benefits of using a reusable cup More and

more bubble tea shops now are starting to offer the option of using a reusable
cup. This is a great way to cut down on waste and do your part for the

environment (Shristy G., 2023).

Furthermore, as perceived by the management the Powdered Flavor

used by the Milk Tea shop as interpreted by the computed average weighted

mean of µ=4.00 has the descriptive equivalent of “Highly Competent”. Milk tea

shop management finds powdered flavor highly competent due to its

convenience, consistency, and cost-effectiveness. Powdered Flavor used by

Milk tea shop Management includes cost-effectiveness, ease of storage, and

consistent flavor. Powdered flavoring is generally more affordable than liquid

flavorings, helping to reduce operational costs. It also requires less storage

space and has a longer shelf life, minimizing wastage and ensuring freshness.

Additionally, powdered flavoring allows for precise portion control, resulting

in a consistent taste experience for customers (Choi, 2019).

Moreover, with the average weighted mean of µ=4.00 with the

descriptive equivalent of “Highly Competent”, the Different Milk tea flavors

offered by Milk Tea shops. Milk tea shop management sees the diverse array

of milk tea flavors as highly competent because it caters to varied tastes, boosts

customer satisfaction, and drives sales. According to Jones and Smith (2022),

offering different flavors allows businesses to appeal to a wider audience and

keep up with changing consumer tastes. This strategy not only attracts new

customers but also encourages existing ones to explore different options,

leading to increased sales and customer satisfaction.

 Thus, Add-ons or toppings are offered by Milk tea shops (e.g. Tapioca

pearls, Pudding, Jelly, whipped cream, Sprinkles, and mallows). This indicator

got the weighted mean of µ=4.00 with an equivalent of “Highly Competent”.

Milk tea shop management finds toppings like tapioca pearls, pudding, jelly,

whipped cream, sprinkles, and mallows highly competent because they

enhance drink quality, boost customer satisfaction, and drive sales through

customization. The research indicates that add-ons provide a means for

diversification, catering to individual tastes and preferences, thereby

enhancing customer satisfaction and loyalty. This strategy not only increases

revenue but also fosters a positive brand image, leading to sustained success

in the competitive milk tea market (Kim, 2019).

Nevertheless, Tea bags in making milk tea used by Milk tea shops are

being implemented, and the computed weighted mean shows it has µ=3.60 and

with an equivalent of “Strongly Agree” with an interpretation of Highly

Incompetent. Milk tea shop management considers tea bags highly competent

due to their consistent quality, convenience, and cost-effectiveness in

preparing milk tea. By using a natural tea powder extract, we can provide a

more authentic and satisfying taste experience for our customers. This sets our

milk tea powders apart from others on the market and makes them a top choice

for those looking for a high-quality, naturally flavored milk tea option (Benitez,

2023).
 Table 1. b; Competency Level of Milk Tea Shops in San Nicolas,
Pangasinan in terms of Promotion as Perceived by Management

Promotion Mean Interpretation

Promotion on various social media platforms
(e.g. Facebook, Instagram, and Tiktok) used 4.00 Highly Competent
by Milk tea shops
Customer loyalty programs (e.g. discounts,
coupons, loyalty cards, vouchers, point system Highly Competent
3.70
rewards) offers by Milk Tea shops

Print media promotions (e.g. Fliers, Pamphlets,

Posters, Cards) used by Milk tea shops 3.60 Highly Competent

Sponsorship/Partnership of community events

for brand visibility (e.g. Pageants award,
Sports award, Donation for a cause, outreached 3.40 Highly Competent
program) of Milk tea shop

Participation of Milk tea shops in trade expos

(e.g. Fiestas, School fairs, Bazaar, and other 3.30 Highly Competent
events in town)
Overall Weighted Mean 3.60 Highly Competent

Table 1. B shows the weighted mean of the Competency Level of Milk

Tea Shops for the factor promotion. With a descriptive equivalent of “Highly

Competent” and with an average weighted mean of µ=4.00, Promotion on

various social media platforms (e.g. Facebook, Instagram, and TikTok) was

used by Milk tea shops. Thus, Milk Tea Shop management finds social media

promotions highly competent due to their broad reach, targeted marketing,

and engagement potential. Everywhere, not only physical shops are being

talked about, but even online presence. Social media quickly chimed into the

beverage’s popularity. Soon enough, acquiring the beverage via online

platforms became more prevalent (Chemag, 2022).

 Aside from the promotion on various social media, Customer loyalty

programs (e.g. discounts, coupons, loyalty cards, vouchers, and point system

rewards) are offered by Milk Tea shops. This statement was perceived by the

management and got µ=3.70 weighted mean with a descriptive equivalent of

“Highly Competent”. Milk tea shop management sees customer loyalty

programs, like discounts, coupons, loyalty cards, vouchers, and point rewards,

as highly effective for retaining customers, boosting sales, and fostering brand

loyalty. Customer Loyalty attracts customers back. Milk tea shops are best

known for their bubble tea and milk tea loyalty cards. Something as simple as

a stamp card, where they collect stamps for every drink purchased and redeem

a free drink or free merchandise after a certain number of stamps (Natalie,

2023).

Thus, Print media promotions (e.g. Fliers, Pamphlets, Posters, Cards)

used by Milk tea shops got µ=3.60 average weighted mean with the descriptive

equivalent of “Highly Competent”. Milk tea shop management finds print

media promotions highly effective due to their targeted local outreach,

tangible visibility, and lasting impression on potential customers. One of the

best benefits of print media is that it has a higher frequency opportunity of

viewing than online ads. Flyers, brochures, and other physical pieces are often

reviewed multiple times and shared with other prospects. Unlike digital

messaging, print media does not disappear after generating an impression

(Spink, 2019).
 Sponsorship/Partnership of community events for brand visibility (e.g.

Pageants award, Sports award, Donation for a cause, outreach program) of Milk

tea shop. This indicator got µ=3.40 weighted mean with a descriptive

equivalent of “Highly Competent”. Milk tea shop management finds community

event sponsorship highly effective for brand visibility, community

engagement, and positive brand associations. Event sponsorship is when

businesses provide financial support, resources, or services to help make your

event a success. In return, they receive promotional benefits and exposure to

your event's audience. It's like forming a partnership (McCann, 2023).

The statement Participation of Milk tea shops in trade expo (e.g. Fiestas,

School fairs, Bazaar, and other events in town) weighted µ=3.30 mean and

described by the customers as “Highly Competent”. Milk tea shop

management sees participation in trade expos as highly effective for brand

exposure, accessing targeted audiences, and promoting the brand within the

local community. Trade fairs are always the most effective way to promote

products to brands. When participating in trade fairs, businesses will bring

product and service information directly to customers and also receive quick

feedback (Vinh Tan, 2021).

Table 1. C; Competency Level of Milk Tea Shops in San Nicolas,

Pangasinan in terms of Place as perceived by Management

Place Mean Interpretation

Waiting area intended for customers of Milk
Tea shop 4.00 Highly Competent
 The physical location of Milk tea shops Highly Competent
3.90
Parking space intended for customers of Milk
Tea shop physical store 3.90 Highly Competent

Online platform used by milk tea shops in

taking orders 3.90 Highly Competent

Delivery service for orders from Milk tea

shops intended for customers Online/Take- 3.90 Highly Competent
out
Overall Weighted Mean 3.92 Highly Competent

Table 1. C shows the Weighted Mean of the Competency Level of milk

tea shops for the factor Place. The statement Waiting area is intended for

customers of Milk tea shop. Milk tea shop management finds the presence of a

waiting area highly competent as it enhances customer comfort, encourages

longer stays, and contributes to overall satisfaction. This indicator got a

weighted mean of µ=4.00 respectively with a descriptive equivalent of “Highly

Competent”. In the context of a milk tea shop, incorporating a waiting area can

enhance the overall customer experience by providing a comfortable space for

patrons to wait for their orders (Ismail, 2019).

Moreover, The physical location of Milk tea shops for it got a µ=3.90

average weighted mean with a descriptive equivalent of “Highly Competent”.

Milk tea shop management finds the physical location highly competent due to

its impact on accessibility, visibility, and customer engagement, ultimately

influencing sales and brand perception. According to Cong Yan (2023), milk

tea shop owners focus on quality products, convenient services, and effective

marketing strategies, contributing to the competence in managing physical

locations. Thus, Identifying relevant location determinants is a good starting

point for shop operators, helping to increase profitability and, thus, avoiding

business failure (Sheng-Hau Lin, 2021).

Furthermore, the statement Parking space intended for customers of

Milk Tea shop physical store with the descriptive equivalent of “Highly

Competent” and an average weighted mean of µ=3.90. Milk tea shop

management finds customer parking highly competent as it enhances

convenience, attracts more visitors, and improves the overall customer

experience. A convenient location with insufficient or overcrowded parking

makes it difficult for customers to visit. In contrast, a good location with a large,

accessible parking area can often generate more revenue than the former

(Tucci, 2020).

Moreover, the indicator Online platform used by milk tea shops in taking

orders is being observed by the management. This statement got the weighted

mean of µ=3.90 with a descriptive equivalent of “Highly Competent”. Milk tea

shop management finds online ordering highly competent due to its

convenience, expanded reach, and streamlined operations According to

Pomelo (2020), Implementing an online ordering system - sometimes called

virtual ordering or contactless table ordering - is one of the best ways to turn a

website into a customer acquisition channel. By setting up your e-commerce

shop, you can start taking online orders.

 Lastly, the statement Delivery service for orders from Milk tea shops

intended for customers Online/Take-out with an average weighted mean of

µ=3.90 and has a descriptive equivalent of “Highly Competent”. Management

sees offering delivery services for online or take-out orders as highly

competent because it enhances convenience, expands customer accessibility,

and boosts sales. Timely and reliable delivery of products or services is a

fundamental aspect of customer experience. Customers expect efficient and

seamless delivery, which contributes to their satisfaction and loyalty (Holliday,

2023).

Table 1.D; Competency Level of Milk Tea Shops in San Nicolas,

Pangasinan in terms of Price as perceived by Management

Price Mean Interpretation

Bundled or combo deal discounts prices
offers (e.g. Milk tea combo with Fries, 4.00 Highly Competent
burgers, nuggets, or hotdogs)
Price offers for different products of milk
3.90
tea shops Highly Competent
Additional fees for add-ons and delivery
3.90
services. Highly Competent
Different modes of payment offered by
Milk tea shops (e.g. cash, Gcash, and other 3.90 Highly Competent
e-payment)
Special events price discounts (e.g. Happy Highly Competent
3.90
hour, Valentine's, and Anniversary)
Overall Weighted Mean 3.92 Highly Competent

Table 1.D shows the Weighted Mean of the Competency Level of Milk

Tea Shops for the factor price. Bundled or combo deal discounts prices offers

(e.g. Milk tea combo with Fries, burgers, nuggets, or hotdogs), this indicator

got a weighted mean of µ=4.00 with a descriptive equivalent of “Highly

Competent”. Management finds bundled or combo deal discounts highly

competent as they increase customer value perception, encourage larger

purchases, and drive sales. Advantages of price bundling Encourages

customers to spend more: Consumers often prefer package deals because

these cost less than the total price of the bundle items (Garcia, 2022).

Furthermore, the statement, Price offers for different products of milk tea

shops. This indicator got µ=3.90 weighted mean with a descriptive equivalent

of “Highly Competent”. Management sees price offers for different products as

highly effective in attracting customers, boosting sales, and creating value

perception. This perception is rooted in the belief that businesses would not

charge a higher price if the product or service did not possess greater value.

As a result, consumers often use price as a quick gauge to assess the quality

and value proposition of a product (Novkovic, 2023).

Moreover, the statement Additional fees for add-ons and delivery

services got the weighted mean of µ=3.90 with a descriptive equivalent of

“Highly Competent”. Management perceives additional fees for add-ons and

delivery services as effective for increasing revenue, covering operational

costs, and maintaining profitability. Add-on sales can help a seller establish a

rapport with a customer, which equates to planting a seed for future business.

It is not a dirty tactic if it focuses on helping customers "win" with add-ons that

will enhance their experience with the primary item (Kenton, 2023).
 Furthermore, the Different modes of payment offered by Milk tea shops

(e.g. cash, Gcash, and other e-payment). This indicator got an average

weighted mean of µ=3.90 with a descriptive equivalent of “Highly Competent”.

Management finds offering different payment modes highly competent as it

enhances convenience, expands accessibility, and increases sales. This is

because you want your customers to have a great experience and keep coming

back to do business with you. However, processing the customer payments can

become an arduous and time-consuming process. In most cases, this is because

the payment options you’ve offered are more convenient for you than your

customers (Ashika, 2019).

Nevertheless, Special events price discounts (e.g. Happy hour,

Valentine's, and Anniversary). This statement got the computed mean of µ=3.90

with a descriptive equivalent of “Highly Competent”. Management finds

special events price discounts highly effective as they attract customers, drive

sales, and create a sense of urgency, ultimately boosting revenue and

enhancing customer experience. Special event pricing is a great way to attract

customers and increase sales. It can be used for special occasions, such as

holidays or anniversaries, or simply to draw attention to a particular product or

service. With the right approach, these discounts can be extremely beneficial

for businesses (Ledesma, 2024).

Table 2. A; Competency Level of Milk Tea Shops in San Nicolas,

Pangasinan in terms of Product as perceived by Customers

Product Mean Interpretation

Packaging used by the Milk Tea shops (e.g.
3.92
cup, straw, cup handler) Highly Competent
Powdered Flavor used by Milk Tea shop 3.74
Highly Competent
Add-ons or toppings offered by Milk tea shops
(e.g. Tapioca pearls, Pudding, Jelly, whipped
3.54
cream, Sprinkles, and mallows) Highly Competent

Different Milk tea flavors offered by Milk Tea

shops 3.12 Competent

Tea bags in making milk tea used by Milk tea

2.24
shops Incompetent
Overall Weighted Mean 3.31 Highly Competent

Table 2. A shows the computed weighted mean of the Competency Level

of milk tea shops as perceived by the customers for the factor product. The

statement Packaging used by the Milk Tea shops (e.g. cup, straw, cup handler)

got a weighted mean of µ=3.92 with a descriptive equivalent of “Highly

Competent”. Plastic cups are durable and offer excellent clarity, allowing

customers to see and appreciate the vibrant colors of their milk tea creations.

Paper cups, on the other hand, provide a more eco-friendly option and can be

customized with appealing designs (Shirsty, 2023). Customers see the

packaging used by milk tea shops as highly competent because it enhances the

customer experience, ensures product quality, and reinforces brand identity.

The indicator Powdered Flavor used by Milk Tea shop as perceived by

the customers implies that the Customers find powdered flavor in milk tea

highly competent due to its consistent taste, wide variety, and convenience.

This statement got a descriptive equivalent of “Highly Competent” and an

average weighted mean of µ=3.74. Powdered milk tea beverage refers to a

type of tea-based drink that is prepared by mixing powdered milk with tea

extracts or tea powders. The beverage offers convenience as it can be easily

prepared by simply adding water, making it a popular choice for those who

prefer quick and easy tea-based drinks (Shin Chen, 2023).

Add-ons or toppings offered by Milk tea shops (e.g. Tapioca pearls,

Pudding, Jelly, whipped cream, Sprinkles, and mallows) as perceived by the

Customers that the Customers find toppings like tapioca pearls, pudding, jelly,

whipped cream, sprinkles, and mallows highly competent as they enhance

flavor, texture, and customization options in their milk tea drinks. This indicator

got the weighted mean of µ=3.54 with a descriptive equivalent of “Highly

Competent”. The Milk Tea Add-ons Market refers to the diverse array of

supplementary ingredients and accompaniments that enhance the overall

sensory experience of consuming milk tea. These add-ons encompass a wide

spectrum, ranging from flavored syrups, tapioca pearls, fruit jellies, and

assorted toppings, all designed to elevate the taste and visual appeal of the

traditional beverage (Bossen, 2024).

Different Milk tea flavors offered by Milk Tea shops as perceived by

customers imply that this indicator got µ=3.12 average weighted mean with a

descriptive equivalent of “Competent”. Customers perceive the variety of milk

tea flavors offered by milk tea shops as competent because it provides them

with diverse options to suit their preferences and offers unique experiences

with each visit. Milk tea is popular not just because of its health benefits, but
also because of its unique blend and taste, no wonder why a lot of customers

are addicted to it. It is a combination of milk and tea, which also comes with

different flavors and ingredients. There are variants that customers can choose

from (Tolentino, 2021).

Lastly, the statement Tea bags in making milk tea used by Milk tea shops

got an average weighted mean of µ=2.24 and a descriptive equivalent of

“Incompetent”. Customers may perceive the use of tea bags in making milk tea

as incompetent because it can result in a less authentic or flavorful beverage

compared to using loose-leaf tea Customers often dislike the taste of tea bags

in milk tea for several reasons primarily related to the quality and composition

of the tea in the bags. Some customers also perceive tea bags as lower quality

compared to loose-leaf tea, impacting their overall satisfaction (Goodwin,

2020).

Table 2. B; Competency Level of Milk Tea Shops in San Nicolas,

Pangasinan in terms of Promotion as perceived by Customers

Promotion Mean Interpretation

Promotion on various social media platforms (e.g.
Facebook, Instagram, and Tiktok) used by Milk Highly Competent
3.77
tea shops

Participation of Milk tea shops in trade expos (e.g.

Fiestas, School fairs, Bazaar, and other events in Highly Competent
3.38
town)

Print media promotions (e.g. Fliers, Pamphlets,

Posters, Cards) used by Milk tea shops 2.78 Competent

Customer loyalty programs (e.g. discounts,

coupons, loyalty cards, vouchers, point system 2.57 Competent
rewards) offers by Milk Tea shops
 Sponsorship/Partnership of community events for
brand visibility (e.g. Pageants award, Sports Moderately Competent
2.38
award, Donation for a cause, outreached
program) of Milk tea shop
Overall Weighted Mean 2.97 Competent

Table 2. B shows the weighted mean of the Competency Level as

perceived by the customers in the factor Promotion. The statement that

Promotion on various social media platforms (e.g. Facebook, Instagram, and

TikTok) used by Milk tea shops. This indicator got µ=3.77 average weighted

mean and a descriptive equivalent of “Highly Competent”. Customers find

social media promotions highly competent because they increase accessibility,

engagement, and awareness, fostering a sense of community and excitement

around milk tea shops. Describes itself as the perfect marketing tool because

its developers have created an advertising system that allows businesses to use

the information of each social media user for targeted advertising. These sites

provide the ideal platform for direct communication between organizations and

customers. This paper investigates the impact that, social media marketing

makes on persuading consumer behavior, especially their intention to

purchase (Rijitha, 2021).

Furthermore, the Participation of Milk tea shops in trade expos (e.g.

Fiestas, School fairs, Bazaar, and other events in town) as perceived by the

customers implies that These indicators got an average weighted mean of

µ=3.38 with a descriptive equivalent of “Highly Competent”. Customers find

the participation of milk tea shops in trade expos and events highly competent
because it increases accessibility, fosters engagement, and offers

opportunities for discovery in a fun and festive atmosphere. Customers love

buying milk tea at trade expos or participating stalls because it offers them a

chance to try unique and innovative flavors, experience the latest trends in milk

tea, and sometimes even interact with the creators or owners, which adds a

personal touch to the experience (Guzman, 2022).

Customers notice that Print media promotions (e.g. Fliers, Pamphlets,

Posters, Cards) used by Milk tea shops and Customer loyalty programs (e.g.

discounts, coupons, loyalty cards, vouchers, point system rewards) offers by

Milk Tea shops it implies that Customers see print media promotions and

loyalty programs as competent because they increase awareness, offer

incentives, and foster repeat business, enhancing the overall customer

experience. An average weighted mean of µ=2.78 and µ=2.57 with a

descriptive equivalent of “Competent” respectively. The main reason your

business should have print media among its marketing mix is for quick

encounters and promotions. Always be prepared so you don’t miss out on a

networking opportunity or the chance for your brand to create a positive

impression (Kim, 2021).

Thus, the statement Sponsorship/Partnership of community events for

brand visibility (e.g. Pageants award, Sports award, Donation for a cause,

outreached program) of Milk tea shop got an average weighted mean of µ=2.38

and has descriptive equivalent of “Moderately Competent”. Customers see

sponsorship or partnership of community events by milk tea shops as

moderately competent because while it enhances brand visibility and shows

corporate social responsibility, it may not directly impact their purchasing

decisions or overall experience. We all know that securing multiple sponsors

can be quite challenging, but it's definitely worth the effort. Still, if you have the

right benefits to offer to sponsors and lay down the advantages for their brand,

you will surely get the opportunity to build a long-term relationship that will

benefit (Khan, 2024).

Table 2.C; Competency Level of Milk Tea Shops in San Nicolas,

Pangasinan in terms of Place as perceived by Customers

Place Mean Interpretation

The physical location of Milk tea shops 3.90 Highly Competent

Waiting area intended for customers of Milk tea Highly Competent

3.55
shop
Online platform used by milk tea shops in taking Highly Competent
3.47
orders
Delivery service for orders from Milk tea shops Highly Competent
3.46
intended for customers Online/Take-out
Parking space intended for customers of Milk Highly Competent
3.38
Tea shop physical store
Overall Weighted Mean 3.55 Highly Competent

Table 2.C shows the Weighted Mean of the Competency Level of milk

tea shops for the factor Place. The statement, The physical location of Milk tea

shops. Customers find the physical location of milk tea shops highly competent

because it influences accessibility, convenience, and ambiance, enhancing

their overall experience. This indicator got a weighted mean of µ=3.90 with a

descriptive equivalent of “Highly Competent”. The physical location of milk tea

shops is highly competent due to strategic considerations such as convenience,

fast service, and customer loyalty (De Jesus, 2020).

Thus, the Waiting area intended for customers of Milk tea shop as

perceived by the customers implies that A milk tea shop's waiting area is

perceived as highly competent when it efficiently processes orders, maintains

a clean and organized space, offers comfortable seating, and communicates

clearly with customers. Consistent quality and attentive staff further contribute

to this positive perception, ensuring customers feel valued and satisfied with

their experience. This statement got an average weighted mean of µ=3.55 with

a descriptive equivalent of “Highly Competent”. The waiting area intended for

customers of a Milk tea shop is highly competent due to various factors such as

implementing priority-based buffer strategies, waiting areas can significantly

improve operational efficiency and customer satisfaction levels (Sultana, et al.,

2019).

Moreover, Online platform used by milk tea shops in taking orders and

Delivery service for orders from Milk tea shops intended for customers

Online/Take-out respectively as perceived by the management implies that,

Customers view milk tea shops' online platforms for ordering and delivery as

highly competent when they're user-friendly, efficient, and reliable. Seamless

navigation, easy customization, secure payments, timely delivery, and accurate

order fulfillment, along with clear communication and responsive customer

support, contribute to this perception. This indicator has a descriptive

equivalent of “Highly Competent” and an average weighted mean of µ=3.47

and µ=3.46 respectively. Online platforms are highly competent for milk tea

shops in processing orders due to their ability to reach more customers and

adapt to changing circumstances (Muelle, 2022).

Furthermore, the statement Parking space intended for customers of

Milk Tea shop physical store got an average weighted mean of µ=3.38 and has

a descriptive equivalent of “Highly Competent” imply that Customers see a

milk tea shop's parking space as highly competent when it's convenient, well-

maintained, and easily accessible, with ample spots, clear signage, safety

measures, and accommodations for all customers' needs. Convenient parking

enhances customer experience and encourages store visits Adequate parking

reduces customer frustration and improves overall satisfaction (Houyi, 2023).

Table 2.D; Competency Level of Milk Tea Shops in San Nicolas,

Pangasinan in terms of Price as perceived by Customers

Price Mean Interpretation

Additional fees for add-ons and delivery
3.66 Highly Competent
services.
Special events price discounts (e.g. Happy Highly Competent
3.61
hour, Valentine's, and Anniversary)
Different modes of payment offered by Milk tea Highly Competent
3.56
shops (e.g. cash, Gcash, and other e-payment)
Price offers for different products of milk tea Highly Competent
3.51
shops
Bundled or combo deal discounts prices offers Competent
(e.g. Milk tea combo with Fries, burgers, 3.18
nuggets, or hotdogs)
Overall Weighted Mean 3.50 Highly Competent
 Table 2.D shows the weighted mean of the Competency Level as

perceived by the customers in the factor Price. The statement that Additional

fees for add-ons and delivery services implies that, Customers see additional

fees for add-ons and delivery services as highly competent when they're

transparent, reasonable, and add value to their experience. This indicator got

µ=3.66 average weighted mean and a descriptive equivalent of “Highly

Competent”. Thus, it provides insights into the effects of add-on pricing

strategies in various industries. When firms offer add-ons, it can impact

baseline prices. Additionally, the presence of boundedly rational consumers

can lead to penalties for informed consumers due to add-on fees (Savioli, 2019).

Furthermore, there are Special events price discounts (e.g. Happy hour,

Valentine's, and Anniversary) and Different modes of payment offered by Milk

tea shops (e.g. cash, Gcash, and other e-payment) as perceived by the

customers implying that, Customers perceive special event discounts and

diverse payment options at milk tea shops as highly competent because they

enhance affordability and convenience, fostering customer loyalty and

satisfaction. These indicators got an average weighted mean of µ=3.61 and

µ=3.56 with a descriptive equivalent of “Highly Competent” correspondingly.

These special event promotions have been shown to increase consumers'

propensity to spend, reduce perceived purchase risk, and enhance

expectations of service quality, particularly for personal special events

(Chatratichrat, 2020).
 As to customers notice that Price offers for different products of milk tea

shops, it implies that. An average weighted mean of µ=3.51 with a descriptive

equivalent of “Highly Competent”. Stated that the consumers would choose the

milk tea shops that offers the most affordable price since most of them are

students who are still receiving allowances from their parents and the milk tea

shops should offers affordable and reasonable prices for milk tea but should

not compromise on quality (Lee and Vega, 2021).

Lastly, the statement Bundled or combo deal discounts prices offers (e.g.

Milk tea combo with Fries, burgers, nuggets, or hotdogs) got an average

weighted mean of µ=3.18 and has a descriptive equivalent of “Competent”

imply that Customers perceive bundled or combo deal discounts at milk tea

shops as competent because they offer convenience and value through

combining popular items at a discounted price, enhancing satisfaction and

loyalty. Bundled or combo deal discounts, like a milk tea combo with fries,

burgers, nuggets, or hotdogs, are considered competitive due to their ability

to influence consumer behavior and perception of value. Research suggests

that bundled discounts can impact consumers' willingness to pay and their

assessment of the bundled products (Guoquan Zhang, 2022).

Table 3.A; Significant difference in the competency level of Milk Tea

Shops in terms of Product as perceived by the management and
customers

Respondent Mean P-value Decision Remarks

Customer 3.31
0.00 Reject Ho Significant
Management 3.92
 Table 3.A, shows the results of a study in the significant difference of

competency level of milk tea shops as perceived by customers and

management based on Product. The 'P-value' tells if there's a significant

difference between the customer and management's perceived competency

level on product. If it's less than 0.05, there's a difference. In this study, the

computed P-values are less than 0.05, meaning there is a significant difference.

So, they concluded that customer and management have no similar perceived

competency level for the factor product.

The significant difference in perception between customers and

management regarding milk tea shop competency, especially in product

quality, could be due to various factors. Customers may care more about taste

and presentation, while management focuses on operational standards and

costs. Differences in expectations, experiences, and roles, as well as

communication gaps, could contribute to this divide.

Table 3.B; Significant difference in the competency level of Milk Tea

Shops in terms of Promotion as perceived by the management and
customers

Respondent Mean P-value Decision Remarks

Customer 2.97
0.00 Reject Ho Significant
Management 3.60

Table 3.B, shows the results of a study in the significant difference of

competency level of milk tea shops as perceived by customers and

management based on Promotion. The 'P-value' tells if there's a significant

difference between the customer and management's perceived competency

level on promotion. If it's less than 0.05, there's a difference. In this study, the

computed P-values are less than 0.05, meaning there is a significant difference.

So, they concluded that customers and management have no similar perceived

competency level for the factor promotion.

The significant difference in perception between customers and

management regarding milk tea shop competency in promotion might be due

to differing priorities and perspectives. Customers may focus on advertising

effectiveness or special offers, while management may prioritize strategic

planning and budgeting. Differences in roles, experiences, and communication

may also contribute to this contrast.

Table 3.C; Significant difference in the competency level of Milk Tea

Shops in terms of Place as perceived by the management and customers

Respondent Mean P-value Decision Remarks

Customer 3.56
0.00 Reject Ho Significant
Management 3.92

Table 3.C, shows the results of a study in the significant difference of

competency level of milk tea shops as perceived by customers and

management based on Place. The 'P-value' tells if there's a significant difference

between the customer and management's perceived competency level on lace.

If it's less than 0.05, there's a difference. In this study, the computed P-values

are less than 0.05, meaning there is a significant difference. So, they concluded

that customers and management have no similar perceived competency level

for the factor place.

 Table 3.D; Significant difference in the competency level of Milk Tea
Shops in terms of Price as perceived by the management and customers

Respondent Mean P-value Decision Remarks

Customer 3.50
0.00 Reject Ho Significant
Management 3.92

Table 3.d, shows the results of a study in the significant difference of

competency level of milk tea shops as perceived by customers and

management based on price. The 'P-value' tells if there's a significant difference

between the customer and management's perceived competency level on lace.

If it's less than 0.05, there's a difference. In this study, the computed P-values

are less than 0.05, meaning there is a significant difference. So, they concluded

that customers and management have no similar perceived competency level

for the factor price.

The significant difference in perception between customers and

management regarding milk tea shop competency in terms of "Place" might

stem from differing priorities and viewpoints. Customers may care more about

convenience and atmosphere, while management may focus on location

selection and store management. These differences in perspectives and roles

could lead to contrasting views on the physical aspects of milk tea shops.

Proposed Marketing Strategy

Component Steps Action Marketing Strategy

Initiative
Product - Source high- - Conduct taste tests - Emphasize
Enhancement quality tea bags and promotions to the freshness
to improve the introduce new and quality of
tea flavor flavors and gather ingredients used
perception feedback.
 among - Enhance in milk tea
customers. packaging design to preparation.
- Introduce make it more - Continuously
new and visually appealing innovate and
innovative milk and Instagram- rotate flavors to
tea flavors to worthy. keep customers
cater to diverse engaged and
preferences. interested.
Promotion - Increase - Launch customer - Use targeted
Strategy engagement on loyalty programs advertising on
social media with enticing social media
platforms by rewards to platforms to
posting encourage repeat reach potential
regularly and purchases. customers in the
interacting with - Sponsor or local area.
followers. participate in - Leverage
- Collaborate community events to user-generated
with local increase brand content by
influencers or visibility and reach encouraging
bloggers to new customers. customers to
promote the share their milk
brand and its tea experiences
offerings. online.
Place - Improve the - Offer convenient - Invest in
Enhancement physical store delivery options and customer service
Strategy layout and ensure timely training to
ambiance to fulfillment of orders. ensure staff
create a - Implement a provide friendly
welcoming reservation system and efficient
environment for for customers to service both in-
customers. book tables in store and online.
- Optimize the advance during - Utilize
online ordering peak hours. customer
platform for a feedback to
seamless user identify areas for
experience. improvement in
. the store
environment and
service
offerings.
Price - Review - Highlight value- - Monitor
Optimization pricing for-money competitors'
Strategy strategies and propositions through pricing and
adjust prices for marketing materials promotions to
bundled deals and signage in-store. remain
 and add-ons to - Communicate competitive
maximize transparently about while
profitability. pricing and any maintaining
- Offer additional fees for profitability.
seasonal add-ons or delivery - Use pricing
promotions and services. analytics to
discounts to identify pricing
drive sales strategies that
during off-peak resonate best
hours. with customers
and drive sales.
Continuous - Implement a - Conduct - Use
Improvement feedback system customer surveys or customer
and to collect feedback campaigns feedback to
Feedback customer to gather insights drive product
Strategy opinions and into customer and service
suggestions for preferences and improvements,
improvement. satisfaction levels. demonstrating a
- Regularly - Reward commitment to
review and customers for customer
analyze providing feedback satisfaction.
customer with discounts or -
feedback to special offers. Communicate
identify trends changes and
and areas for improvements to
enhancement. customers to
show
responsiveness
to their needs
and preferences.

By implementing these strategies, the Milk Tea shop can further enhance

its competitiveness and meet the evolving needs and preferences of its target

market in San Nicolas, Pangasinan.

 CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the conclusions drawn from these findings and

recommendations offered by the researchers in the light of the findings and

conclusions.

Conclusions

1. The competency assessment reveals that milk tea shops in San Nicolas,

Pangasinan, excel across various dimensions of their operations. From

product quality to promotion strategies, place amenities, and pricing

tactics, the shops are highly competent. This indicates a strong

commitment to customer satisfaction, convenience, and value delivery,

ensuring exceptional experiences for patrons.

2. Customers perceive milk tea shops in San Nicolas, Pangasinan, as highly

competent in product quality, promotion strategies, place amenities, and

pricing tactics. While there's room for improvement in areas like product

variety and bundled deals, the overall perception indicates a strong

foundation for customer satisfaction and success.

3. The analysis reveals significant differences between management and

customer perceptions of milk tea shops' competency levels across

product, promotion, place, and price dimensions. Customers rate these

aspects lower than management, indicating a discrepancy in

understanding and meeting customer expectations. Aligning

 management assessments with customer experiences is crucial for

improving competitiveness and satisfaction.

Recommendations

1. Milk tea shops in San Nicolas, Pangasinan, excel across various

dimensions, showcasing a strong dedication to customer satisfaction and

value delivery. To build on this success, they should prioritize

continuous feedback, staff training, product diversification, innovative

promotions, place enhancement, pricing optimization, and community

engagement. These efforts will further elevate their competency levels

and ensure sustained exceptional experiences for patrons.

2. Customers in San Nicolas, Pangasinan, perceive milk tea shops as highly

competent overall, with room for improvement in product variety and

bundled deals. To maximize customer satisfaction and success, the

shops should focus on expanding product variety, enhancing bundled

deals, and effectively promoting specials.

3. To bridge the gap between management and customer perceptions,

milk tea shops should prioritize customer feedback, enhance staff

training, and improve communication. Regular performance reviews

and benchmarking against industry standards can guide decision-

making. Implementing these strategies will align management

assessments with customer experiences, ultimately improving

competitiveness and customer satisfaction.

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