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CHAPTER 1

Introduction

This study includes the research background, a review of relevant

literature and studies, the theoretical and conceptual frameworks, the

problem statement, the hypothesis, the scope and limitations, the

significance of the study, and the definitions of key terms.

Background of the Study

Coffee cafes are popular worldwide. Kiva Han is the first coffee

shop in the world, established in Constantinople (now Istanbul) and

opened in 1475. People typically drank coffee at home and served it to

guests as a sign of hospitality. Coffee shops gained popularity throughout

the world and became known as "Schools of the Wise," where individuals

gathered to converse, share information, and engage in discussions on

certain topics. Anna Kireev (2024) states that there are already six types

of coffee shops, including coffee carts or mobile coffee shops. She

highlights that the coffee cart, or mobile coffee shop, can be adopted in

various circumstances, as it enables them to tailor the customer

experience. Additionally, it enables them to test various markets and

move between different locations.

Even though mobile coffee shops are suitable for inspiring

business owners who want to invest in a coffee business, they still need
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to consider some external factors. This study focuses on the limitations of

the customer base and the location constraints faced by mobile coffee

shops in Don Antonio, Barangay Holy Spirit. Customer base limitation

refers to having fewer or less engaged customers, which affects revenue.

Factors contributing to such limitations may include low customer loyalty,

high customer turnover, limited brand awareness, a limited product

variety, and products offered that do not align with customer preferences.

Intense competition in the industry affects customer retention, particularly

when low brand awareness enables customers to switch to competitors.

Such limitations can prevent them from fully understanding their

customers' needs and behaviors (Chibuzor et al., 2018).

On the other hand, location constraints involve challenges related

to accessibility, visibility, regulatory compliance, environmental factors,

and competition. These challenges influence the selection of potential

locations for new coffee shops, directly impacting how well a location

meets consumer demands and business objectives (Ko et al., 2006).

Limited space availability and strict permit requirements in certain areas

are some of the problems faced by mobile coffee shops, which can lead

these businesses to either close or relocate to another location to

increase their profits.

By addressing these limitations, this study aims to uncover

strategies that could redefine success for mobile coffee entrepreneurs.

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The study's findings can provide a basis for improving overall production

by recommending a marketing plan. This marketing plan aims to address

the limitations of the customer base and the constraints of location.

Additionally, the proposed solution can help the owner of a mobile coffee

shop improve customer satisfaction, particularly in relation to area

restrictions, market competition, customer loyalty, and retention, as well

as enhance brand awareness among mobile coffee shop respondents.

Through these proposed measures, the research aims to identify

opportunities that will add value for the owner of the mobile coffee shop,

enabling them to remain competitive in the industry and potentially

expand their operations.

Related Literature and Studies

To further understand the study, the relevant literature has been

reviewed to analyze the data and outcomes that support it. This literature

provides a foundation for understanding the limitations of the customer

base and the location constraints of the mobile coffee shop. Additionally,

the relevant studies serve as a guideline for creating a marketing plan to

enhance business operations, including promotional strategies.

Customer Base Limitations

Customer base limitations refer to challenges encountered by the

business, such as low customer loyalty, customer retention, and limited

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brand awareness. A study by Junaedi, M. S., et al. (2022) indicates that

customer base limitations may worsen if a business’s marketing

strategies fail to effectively promote brand awareness. This is often the

result of poor planning.

Aside from brand awareness, other factors that affect customer

base limitations include service and product quality, the physical

environment, customer satisfaction, and customer habits (Lee, H.-J., et

al., 2022). This is further supported by the study of Putri, D. A. (2025),

who notes that design and ambiance, promotions, pricing, service quality

and facilities, location and accessibility, and product variety also influence

customer base limitations.

The findings of the study by Chiang, W.-Y., et al. (2021) suggest

that to avoid customer base limitations, businesses must focus on the

quality of service and products provided. Their study shows that

customers continue to patronize coffee shops even during peak hours,

demonstrating loyalty. However, it also mentions that customers who buy

often are more likely to return if promotions are offered.

To address these concerns, Jaeroni, A., and Ferrer, C. N. (2023)

recommend proper staff training, the application of the 7P marketing mix,

and the enhancement of loyalty programs for repeat customers. These

programs can be used to track customer preferences, and the data

collected can further improve overall service quality.

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Customer Loyalty and Retention

Businesses need to consider customer retention and loyalty as

crucial factors that affect the business's production. Both are critical for

the success and sustainability of any business. By giving value to the

customer, you can boost revenue by 4–8% compared to other

competitors (RWRD, 2024). Additionally, 93% of customers are more

likely to return to the business since they experience excellent customer

service. However, RWRD (2024) states that 2% of retention in the

company can be lost for a 10% cut, and it needs to acquire a new

customer 16 times, since it's pricier than keeping an existing customer.

According to Dhisasmito, P. P., et al. (2020), the ambiance of the

store had no significant impact on customer loyalty. They also said that

while the store's ambiance may draw in new customers, there's no

assurance they'll return. However, the study by Bognot, A. G., et al.

(2021) contradicts the result of Dhisasmito, P. P., et al. (2020). The study

states that personalized service, consistent product quality, and a

pleasant ambiance have a significant effect on influencing customer

retention. Both studies agreed that businesses need to focus on training

staff for better customer interaction and fair pricing, which can help build

customer loyalty.
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Customer satisfaction and building trust have an impact on the

customer; it needs continuous improvement in service, improved pricing,

and service quality (Pesoa, J. A., et al., 2020). The study of Hussain, M.,

et al. (2025) supported the study of Pesoa, J. A., et al. (2020) by

strengthening the relationship with the customer through personalized

engagement, making the customer feel valued, enhancing customer

satisfaction, and keeping the customer updated on available promotions,

changes, and services.

Brand awareness

Brand awareness plays a vital role in consumer decision-making. It

helps the consumer remember the brand and its features, and it is the

basis of the brand's identity (Anand, A., et al., 2025). Zulfikar, I. (2023)

highlighted that developing a brand identity needs to emphasize values,

aesthetics, or experiences. Zulfikar, I. (2023) added that logos, slogans,

and packaging need to reflect your brand's personality and resonate with

your target market.

According to Novilia, E., et al. (2025), brand awareness is how well

a customer knows and remembers a brand. It influences purchasing

decisions by shaping perceptions, building trust, and creating emotional

connections. Daengs, A. G. S., et al. (2023) said that brand awareness

and social media marketing both have a positive significant effect on

customer purchase intention in buying coffee in a coffee shop. Daengs, A.

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G. S., et al. (2023) elaborated that offering promotions and discounts and

creating more engaging content on social media can boost brand

awareness. Additionally, discounts, seasonal offers, and social media

engagement are effective ways to attract customers and boost brand

awareness (Bognot, A. G., 2021).

Product Variety

Product variety is a range of product options offered to the

customer. In terms of the coffee shop, this includes flavor, brewing

method, and menu (Putra, A. P., et al., 2024). It also plays a vital role in

shaping consumer preferences and purchasing decisions toward coffee

shops. The product variety of the coffee shop is valued by the

adventurous consumer, who loves exploring coffee shops. In addition,

adventurous consumers love to seek different options and explore more

coffee experiences (Zamborita, Z., et al., 2024).

Vandhega, B. G. R., et al. (2025) mentioned that product variety

has a positive significant effect on customer satisfaction. This can be

impactful in competitive markets where product variety is crucial. Offering

a wide range of menu options can help coffee shop businesses attract

and retain customers by catering different products to fit their

preferences. This was supported in the study of Madani Tirus, H., et al.

(2025); customers are more likely to return to the coffee shop if it offers

different or diverse products. Additionally, coffee shops need to regularly

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introduce new items, seasonal specials, and limited-time offers to attract

more customers, improve customer satisfaction, and boost revenue.

Consumer Preference

Consumer preferences are vital for business success and are

growing more crucial in the current omnichannel digital environment,

characterized by frequent changes (Dutta, 2023). This is also affected by

the message relayed by the product. According to Fuller, K. et al. (2023),

a customer that was informed was more likely to pay more since clear

communication was labeled or they were well informed.

Consumer preference refers to how individuals make purchasing

decisions; those decisions can be the result of specific tastes, desires,

and choices. Zamborita, Z. (2024) states that customer preferences

include taste, product variety, and offerings from the store, such as live

music and ambiance, which are particularly appealing to Millennials and

Zoomers. The argument is also supported by Dellyana, D. (2023), who

mentioned that the taste and quality of the coffee, the different options in

the menu, authenticity, and consistency can affect consumer preferences.

Dellyana, D. (2023) and Hadayanti, D. (2024) figured out that limited

segmentation, limited innovation, failure to adapt, overemphasis on

ambiance or service, inconsistent quality, and generic product strategies

can affect consumer preference.

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Such factors can reduce customer satisfaction and customer

loyalty; the sale will decline and the rate of customer retention will be

high. In order to overcome the problem identified, investing in product

quality, using customer feedback to guide improvements in service,

improving the product's uniqueness, and ensuring quality control can help

to increase the sale and be competitive in the market (Dellyana, D. 2023).

Location Limitations

Location limitations pertain to the issue of a business encountering

physical or environmental constraints, such as those faced by a mobile

coffee shop. These limits restrict customer access to the business. A

company with high accessibility is favorable to the business since it has

high visibility and high foot traffic, which is an advantage over other

businesses (Basuki, A. et al., 2024). It has an edge over its competitor,

and all it needs to do is improve the area's visibility to attract more

customers.

Additionally, businesses in road buffer zones (areas near the

roadmap) have an advantage in overcoming limitations related to their

location-based customer base (Wu, L. et al., 2023). This finding is also

supported by the study of Fauzi, A., Indriyani, N., et al. (2021): locations

that are near offices, have accessibility, and have good internet networks

are favorable for building a business.

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A business owner also needs to consider regulatory restrictions

and permits. Regulatory restrictions and permits refer to obtaining permits

from the local government and complying with sanitation and food safety

regulations (Abulencia, A. J. A. et al., 2025). These restrictions can lead

to operational delays, risk of fines, and a limited area to sell. In addition,

sanitation and food security compliance are among the things that need

to be considered by the owner; failure to comply can result in a fine or

being forced to close the business or relocate (Abulencia, A. J. A. et al.,

2024).

The impact of local regulations on street food vendors can be

crucial; they need to protect public health (Brinkley, C. et al., 2020). In the

Philippines, there are laws that protect vendors and consumers. The

Food Safety Act (RA 10611) ensures hygiene and food safety at the

location, the Barangay Micro-Business Enterprises Act (RA 9178) offers

tax exemptions for vendors, and the Local Government Code (RA 7160)

allows LGUs to set permit fees and designate vendors in specific

locations where they can sell. For noncompliance, vendors can be fined

₱500–₱5,000, face confiscation or demolition, and be entitled to notice,

hearing, and retrieval of confiscated items (Respicio & Co., 2025).

Accessibility and Visibility

Urban life is deeply influenced by both the car industry and the

developing service sectors; this can affect a person's accessibility to

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travel from one place to another. Xu et al. (2020) state that accessibility

refers to how easily people can reach the destination, the travel time, the

cost of transportation, and the convenience of the location.

According to Moseley, M. J. (2023), mapping service catchments

based on travel time and available transport is important so that it can

identify if your customer is willing to go to your location and how willing

they are to travel to access your product and service. The importance of

the location of the coffee shop is emphasized in the research conducted

by Anggiani, M. (2025); he emphasized that the coffee shop must be

situated in a strategic location and be easily accessible, particularly for

individuals who have disabilities (Anggiani, M., 2025).

On the other hand, visibility is a marketing tool that can assist in

attracting the attention of customers, signaling the values of the brand,

and sharing the social perception. According to Barber, L. B. (2025),

visibility is not only about the architecture; it also plays a role in the

differentiation of the brand, creativity, and inclusivity. This can be done by

improving the music and the lighting to attract attention and create a

memorable experience. This is also supported by the study of Vorobeva

(2022); he states that clear signage and brand identity make the mobile

coffee shop easy to recognize by using the appropriate colors in logos

and the store.

Environmental Factors
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Environmental factors significantly influence the location and

success of a coffee shop. Key elements such as cleanliness, ambiance,

noise levels, the surrounding area, and air quality play a crucial role in

shaping customer experience. According to Handayani, P. T. et al. (2022),

the quality of the physical environment has a notable impact on customer

satisfaction and their intention to revisit. They emphasize that compliance

with health and safety standards is essential for maintaining a positive

atmosphere.

Supporting this view, Gullu, E. et al. (2024) highlight the

importance of adhering to sanitation protocols and ensuring that spaces

are designed with safety in mind. Their study underscores the need for

healthy and safe practices to protect both customers and staff.

Beyond environmental quality, many businesses are now

innovating toward eco-friendly operations. Ahmad, H. et al. (2024)

advocate for sustainable practices such as using biodegradable

packaging, energy-efficient equipment, and locally sourced ingredients to

minimize environmental impact. Given that most coffee shops operate

between 7 to 12 hours daily, their contribution to electricity and water

consumption is substantial.

Anggraeni, R. D. et al. (2022) support Ahmad’s findings by noting

that coffee shops in Malang City have already implemented eco-friendly

measures. These include using steel straws, reusing cup lids, and
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reducing plastic waste. To further enhance sustainability, Anggraeni

stresses the need for stricter regulations from local governments to

ensure proper waste management and environmental compliance.

Competition Density

The coffee shop sector is expanding rapidly, prompting businesses

to work harder to remain competitive. Eze et al. (2024) found that the

growing variety of coffee shops benefits customers by offering more

choices for coffee and beverages. However, this increased competition

poses challenges for coffee shop owners, especially small café

businesses, who must exert greater effort to stay relevant in the market.

Ali, M. J. et al. (2023) emphasize the importance of monitoring

competitor behavior to adapt and maintain competitiveness. They suggest

that businesses should develop unique value propositions—such as

specialty brews, cultural themes, or loyalty programs—to differentiate

themselves in saturated markets.

In Bogor, Indonesia, the rapid proliferation of coffee shops has led

to issues of market concentration. Najib & Fahma (2023) report that many

small businesses have gone bankrupt due to their inability to sustain

operations in a highly competitive environment. To stay ahead, pricing

and service quality are critical strategies. Value-based pricing enhances

customer satisfaction, boosts loyalty, and improves profitability.

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Wu, X. et al. (2023) support this by noting that in dense markets,

prices tend to drop. Strategic pricing can help balance competitiveness

with perceived value. Furthermore, service quality plays a vital role in

business survival. Villanueva et al. (2025) highlight five key dimensions—

tangibility, reliability, responsiveness, assurance, and empathy—as

essential components for achieving customer satisfaction and long-term

success.

Significant Relationship Between the Customer Base Limitations

and Location Constraints

The customer base limitations and location constraints are

managerial and operational problems that directly affect the business,

such as marketing, sales, and sustainability. Sangalang, G. M., & Fampo,

J. C. (2024) mentioned that customer base limitations and location

constraints have a significant effect on Micro-, Small-, and Medium

Enterprises (MSMEs) businesses due to intense competition, consumer

preference, limited marketing reach, short business lifespan, accessibility

and visibility, and regulatory issues. Jin, G., Jiang, Q., & Liu, X. (2022)

mentioned that businesses with customer base limitations face

performance risks because they depend too much on a few customers.

Businesses that rely on a few customers are more likely to be affected

when there are sudden changes in demand and price competition (Singh,

R., & Al-Mansoori, H., 2023). Singh and Al-Mansoori (2023) also added
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that when businesses are located in areas where location constraints are

an issue, they face additional challenges with transportation, supply

chains, and increased operational risk.

In order to address these concerns, the study of Aurelio Jr., F. et al.

(2024) highlighted the importance of location selection and understanding

consumer behavior. The study found that through proper financial

planning, understanding regulatory requirements, and choosing locations

with good customer traffic, businesses can survive. This is also supported

by Kim, J.-I., & Ju, S.-W. (2022), who mentioned that analyzing customer

behavior helps optimize store layout and signage and tailor promotions to

customers. They also added that business coffee shops should prioritize

visibility and accessibility over rental cost alone.

Challenges Faced by Mobile Coffee shop Towards Customer Base

Limitation and Location Constraints

Mobile coffee shops face significant challenges, including

customer base limitations and location constraints. These issues critically

affect business performance, as they directly influence the ability to

attract and retain customers. Customer base limitations such as low

loyalty and brand awareness are often the result of ineffective marketing

and poor service quality (Junaedi et al., 2022). Putri (2025) mentioned

that factors like a store's physical environment, product variety, and

promotions also influence customer loyalty and retention. Jaeroni &

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Ferrer (2023) stated that continuous staff training and loyalty programs

can help build trust and track customer preferences. Lastly, the study by

Novilia et al. (2025) added that brand awareness is a critical component

of attracting customers and can be improved through engaging social

media content, creative branding, and promotions.

Location constraints are another issue that mobile coffee shops

encounter, particularly in terms of visibility and accessibility. A strategic

location with high foot traffic is an advantage over competitors (Basuki et

al., 2024). This is supported by the study of Wu et al. (2023), which

highlighted that locations near offices or in road buffer zones are

favorable for business. However, mobile vendors must also consider

regulatory concerns, including permits and sanitation requirements, which

can cause delays and financial penalties (Abulencia et al., 2025). Failure

to comply with regulations, such as the Food Safety Act in the Philippines,

can lead to fines or even business closure (Abulencia et al., 2024).

Aside from location constraints and regulatory issues, mobile

coffee shops must also consider the market competition and consumer

preferences. Eze et al. (2024) highlighted that the rapid growth of the

coffee shop sector requires businesses to differentiate themselves

through unique offerings, such as specialty brews or loyalty programs, to

avoid bankruptcy in saturated markets. Furthermore, Zamborita (2024)

added that consumer preferences are shaped by factors like taste,

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ambiance, and product variety. Businesses that fail to improve their menu

or have inconsistent quality risk losing customer loyalty and sales. To

overcome these challenges, mobile coffee shops must prioritize

customer-centric strategies, ensuring product quality and responsiveness

to feedback in order to stay competitive and sustainable (Dellyana, 2023).

Relevance or Justification of the Reviewed Literature and Studies to

the Present Study

The literature reviewed has highlighted that customer base

limitations and location constraints have a major impact on marketing,

sales, and long-term survival. This is directly connected to the present

research, which examines customer base limitations and location

constraints in mobile coffee shops and suggests a marketing plan.

The findings from Junaedi et al. (2022) and Lee et al. (2022)

highlight the importance of effective marketing and factors such as

product quality, service, and ambiance in building a loyal customer base,

which are relevant to the present study on customer base limitations and

location constraints in Don Antonio, Barangay Holy Spirit. However, the

findings of Dhisasmito et al. (2020) and Bognot et al. (2021) contradict

those of Junaedi et al. (2022) and Lee et al. (2022). Dhisasmito et al.

(2020) and Bognot et al. (2021) mention that the influence of ambiance

on loyalty is especially insightful, prompting the present study to

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investigate how the unique ambiance of a mobile vehicle—its design,

visibility, and the personal interaction with staff—can influence customer

retention. The literature on brand awareness (Anand et al., 2025; Zulfikar,

2023) is also critical, as a mobile business must rely heavily on a strong

and memorable brand identity to attract and retain customers across

different locations, which also affects the present study.

Putra et al. (2024) and Zamborita et al. (2024) suggest that offering

a diverse menu is vital for attracting different types of customers,

especially the adventurous consumer, which is directly connected to the

study and tests the product variety and consumer preferences of

customers in Don Antonio, Barangay Holy Spirit. Additionally, the studies

of Dutta (2023) and Dellyana (2023) on consumer preferences

underscore the need to adapt to local tastes and trends, which is a key

component of the proposed marketing plan for mobile coffee shops in

Don Antonio, Barangay Holy Spirit. Understanding whether customers

value taste, price, or atmosphere—and recognizing that all three have a

significant effect on business success—addresses the specific and

interconnected challenges faced by a mobile coffee shop in its given

location.

The research by Basuki et al. (2024) and Wu et al. (2023)

highlights the importance of accessibility and visibility, which are key

concerns in mobile coffee shop businesses. Since mobile coffee shops

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must adapt to constantly changing environments, these factors are

critical. Additionally, regulatory issues (Abulencia et al., 2025) and the

need to comply with specific local laws (Respicio & Co., 2025) pose

significant challenges for mobile vendors in the Philippines. These issues

are relevant to the present study as they link theoretical concepts with

practical problems, justifying the need for a marketing plan to address

customer base limitations and location constraints.

The reviewed studies on competition density and environmental

factors provide a clear understanding of the challenges faced by mobile

coffee shops. The research by Eze et al. (2024) and Ali et al. (2023)

states that mobile coffee shops operating in areas with higher competition

density must establish a value proposition and strategic pricing. The

studies on environmental factors (Handayani et al., 2022; Gullu et al.,

2024) are also crucial, as they justify the importance of hygiene and

safety, which are primary concerns for food service businesses—

particularly mobile coffee shops in Don Antonio, Barangay Holy Spirit.

Theoretical Framework

This chapter presents the theoretical foundations relevant to the

study, which serve to clarify the underlying concepts and establish the

connection between the research objectives and its findings. Two key

theories were employed to analyze the limitations in customer base and

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location constraints of mobile coffee shops operating in Don Antonio,

Barangay Holy Spirit. The Theory of Planned Behavior (TPB) and Central

Place Theory.

The Theory of Planned Behavior (TPB) provides insight into

consumer decision-making by examining attitudes, subjective norms, and

perceived behavioral control, which collectively influence purchasing

behavior. Meanwhile, Central Place Theory offers a spatial perspective,

helping to evaluate the strategic placement of mobile coffee shops in

relation to consumer accessibility and service distribution.

By integrating these theories, the study aims to assess the

interaction between consumer behavior and business location dynamics.

The resulting data will serve as a foundation for developing a targeted

marketing plan tailored to the unique context of mobile coffee shops in the

area.

Theory of Planned Behavior (TPB)

The Theory of Planned Behavior (TPB), created by Icek Ajzen in

1985, will be used to justify and test the variables of the study. The theory

will help the study explain why consumers choose to engage or not to

engage with a product. Additionally, Icek Ajzen states that the TPB has

three important aspects that determine behavioral intentions, which are

the best indicators of actual behavior: (1) Attitude toward the behavior, (2)

Subjective norms, and (3) Perceived behavioral control.

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Figure 1.1: Theory of Planned Behavior (TBP)

Attitude Toward the Subjective Perceived

Behavior Norms Behavioral Control

Behavioral Intention

The Theory of Planned

Actual
Behavior
Behavior
(TPB) will measure consumer

intentions to patronize the mobile coffee shop, despite some limitations. It

also explains how the location affects perceived control, which influences

customer loyalty and preference among the respondents. Attitude toward

the behavior refers to how consumers evaluate the mobile coffee shop

based on their product preferences and brand awareness. On the other

hand, the behavior is influenced by social peers (e.g., friends, family,

community) regarding loyalty and retention. External factors such as

location, visibility, and environmental conditions influence consumers'

ability to visit—a phenomenon known as perceived behavioral control. In

addition, the behavioral intention represents how the consumer will

patronize the product that is sold in the mobile coffee shop. Lastly, the

actual behavior refers to how often the consumer consistently visits the

mobile coffee shop, which reflects their real-world actions.

Central Place Theory

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Central Place Theory, developed by Walter Christaller in 1933, will

be used to justify the location constraint variables. The theory will help the

study of the spatial distribution of settlement and the provision of goods

and services in an urban area. It also explains the arrangement, the size,

and the number of settlements. In correlation to the study, this directly

explains how the coffee shop business chooses the location to maximize

the accessibility and the visibility of the customer.

Central Place Theory

Competition Environmental Accessibility &

Density Factors Visibility

Figure 1.2: Central Place Theory

In the context of a mobile coffee shop in Don Antonio, Barangay

Holy Spirit, the proposed theory above will help the proponents test the

different factors that affect location viability. Accessibility and visibility are

crucial for mobile coffee shops that rely on consumer traffic. On the other

hand, regulatory restrictions, permits, and the environment are

intertwined; they play a significant role in determining whether the

business can legally operate. One thing that needs to be considered is

the environmental factors, such as noise traffic, the area where the

business was established, and air quality. Lastly, competition density—if

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the location has a high competition density—can lead to market

saturation, which may affect the profitability of the business.

The Theory of Planned Behavior (TPB) and Central Place Theory

provide a strategic foundation for developing a proposed marketing plan

for a mobile coffee shop in Don Antonio, Barangay Holy Spirit. The TPB

focuses on consumer motivations and behavioral patterns. It helps to

understand consumer behavior and provides insight into customer loyalty

and retention, brand awareness, product variety, and consumer

preference. Meanwhile, Central Place Theory guides location-based

decisions by identifying optimal areas for visibility while considering

regulatory, environmental, and competitive density.

Conceptual Framework
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This study shows the schematic diagram that shows how this

research works by using INPUT-PROCESS-OUTPUT.

Figure 1.3: Conceptual Model of the Study

Figure 3 presents the inputs of the study on customer-based

limitations and location constraints affecting mobile coffee shops in Don

Antonio, Barangay Holy Spirit. The primary research tool utilized in this

study was a questionnaire, supported by a review of relevant literature

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and studies connected to the research topic, including the Theory of

Planned Behavior (TPB) and Central Place Theory. This also involves the

respondents evaluating how they perceive customer-based limitations in

terms of customer loyalty and retention, brand awareness, product

variety, and product preference, and assessing location constraints in

terms of accessibility and visibility, regulatory restrictions, environmental

factors, and competition density. It also investigates whether there is a

significant relationship between customer base limitations and location

constraints on mobile coffee shops. The outcome of the study is a

research-based

foundation for proposing a marketing plan.

Statement of the Problem

This study assesses the customer base limitations and location

constraints on mobile coffee shops in Don Antonio, Barangay Holy Spirit

as a basis in proposing marketing plan.

Specifically, this study seeks to answer the following questions:

1. How do the respondents assess the customer base limitations on

mobile coffee shops in terms of:

1.1. customer loyalty and retention

1.2. brand awareness

1.3. product variety

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1.4. customer preference

2. How do the respondents assess the location constraints on mobile

coffee shops in terms of:

2.1. accessibility and visibility

2.2. regulatory restrictions and permits

2.3. environmental factors

2.4. competition density

3. Is there a significant relationship between the customer base limitations

and location constraints on mobile coffee shops?

4. What are the challenges encountered by mobile coffee shop owners in

maintaining profitability and customer engagement under such limitations

and constraints?

5. Based on the results of the study, what marketing plan can be

proposed?

Hypothesis

This study hypothesized that there is no significant relationship

between the customer base limitations and location constraints on mobile

coffee shops.
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Scope and Delimitation of the Study

This study addressed the customer base limitations and location

constraints of mobile coffee shops in Don Antonio, Barangay Holy Spirit.

The researcher will use the consumer base theory and location theory to

evaluate the study's variables and understand how they work within such

limitations. The study is limited to customers of the three (3) mobile coffee

shops established in Don Antonio, Barangay Holy Spirit. The researcher

will conduct the study on 150 respondents (customers): fifty for Ca Phe

3838, fifty for Business 2, and fifty for Business 3. The proponents of the

study will gather statistical information and use a questionnaire to collect

data needed to create a proposed marketing plan to improve the

business.

Significance of the Study

This study will be valuable to the following group of people:

Mobile Coffee Shop Owners. This study provides mobile coffee

shop owners with a suggested marketing plan that they can use as a

guide to improve or develop their advertising and promotional strategies.

This approach aims to attract potential customers, establish a strong

connection with the target audience, and maintain industry

competitiveness.
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Consumers. This study will benefit consumers by enhancing their

satisfaction, increasing the available options, and allowing them to enjoy

quality coffee that satisfies their cravings with less effort.

Entrepreneurs. The study's findings will help entrepreneurs

overcome external factors. The results can assist them in overcoming

location constraints and customer base limitations, allowing them to

optimize location choices, attract diverse customer segments, and

maintain profitability.

Marketing Practitioners. The study's results can serve as a basis

for valuable insights into the unique challenges and opportunities faced

by mobile coffee shops. In addition, they can use the results to improve

different fields of business that encounter customer base limitations and

location constraints.

Local Government Units (LGUs). This research may assist

barangay-level policies in supporting small businesses, such as mobile

coffee shops. This can be achieved by offering spaces where they can

sell, granting flexible permits, and fostering economic growth.

Researchers. This study serves as a foundation for researchers,

particularly those aspiring to become business owners in the coffee

industry. It provides insight into how location constraints and customer

base limitations can affect the entire production process; this information

can be used for future research and practical applications.

 29

Future researchers. This study aims to clarify research

methodologies, which they may utilize as related literature.

Definition of Terms

To ensure clarity, the terminologies used in this study are defined

as follows.

Accessibility. Refers to how easily customers can reach mobile

coffee shops in Don Antonio, Barangay Holy Spirit, considering factors

such as road accessibility, walkability, and nearby public transportation

options.

Brand awareness. Refers to the extent to which consumers are

familiar with the mobile coffee shop. This includes their ability to

recognize the brand's logo, name, and products.

Competition density. Refers to the total number of other coffee

vendors, whether mobile or fixed, located near the mobile coffee shops in

Don Antonio.

Customer base limitations. Refers to the variables of the study

and one challenge that some businesses, especially coffee shops,

encounter, such as low customer loyalty, customer retention, and limited

brand awareness.
 30

Customer loyalty. Residents of Don Antonio, Barangay Holy Spirit

frequently choose the same brand, particularly the mobile coffee shop,

over others because they are satisfied with the service.

Customer retention. Refers to a coffee shop owner's ability to

maintain a loyal customer base and prevent customers from switching to

competing coffee shops.

Environmental factors. Refer to the physical conditions

surrounding the mobile coffee shops, including aspects such as

cleanliness, safety, weather exposure, and noise levels.

Location constraints. This pertains to the issue of a business

encountering physical or environmental constraints, such as those faced

by a mobile coffee shop. These limits restrict customer access to the

business, which is also part of the study.

Marketing plan. This document serves as a strategic guide

designed to assist mobile coffee business owners in developing their

advertising and promotional strategies. In addition, it can help attract

potential customers and effectively connect with the target audience.

Mobile coffee shops. Refers to a business that operates on

wheels and offers hot or cold coffee in Don Antonio, Barangay Holy Spirit.

They operate in areas such as schools, offices, or public venues.

Product preference. Refers to the products offered by mobile

coffee shops in Don Antonio, Barangay Holy Spirit, such as a variety of

 31

coffee drinks, brewing methods, and add-on options to cater to the

diverse preferences of their customers.

Product variety. Refers to the products offered by mobile coffee

shops in Don Antonio, Barangay Holy Spirit, such as a variety of coffee

drinks, brewing methods, and add-on options to cater to the diverse

preferences of their customers.

Visibility. Pertains to the extent to which the mobile coffee shops

are noticeable in Don Antonio; this encompasses their location and

signage designed to attract customers.

 32

Chapter 2

METHODS

This chapter contains the research design, respondents of the

study, sampling method, instrument used, construction and validation of

the instrument, data administration and retrieval, and statistical treatment

of data

Research Design

This study will use a descriptive-correlational research design,

aimed at providing a systematic description of a population and analyzing

interrelationships between variables without establishing any causal

relationship. Clarete et al. (2023) state that this approach describes the

characteristics of a specific population and examines the relationships

between variables without manipulating them. In this study, the research

design used will help to understand the significant relationship between

the customer base limitations and location constraints on mobile coffee

shops in Don Antonio, Barangay Holy Spirit. Additionally, it will help to

examine how the customer base limitations and location constraints are

interrelated, which can assist in creating a roadmap for a strategic

marketing plan.

Respondents of the Study

 33

This research was conducted in Don Antonio, Barangay Holy Spirit, an

area characterized by high population density within Quezon City. The study

centers on three mobile coffee shops operating in the vicinity: Caphe3838,

Tipanan Kopi, and My Escafe. As urban consumers increasingly seek

convenience and accessibility, the mobile coffee industry has seen notable

growth. Each of these businesses serves over 50 customers daily, yet their

performance is often affected by limitations in customer reach and location-

related challenges. To investigate these concerns, the study surveyed 150

respondents, 50 from each of the three coffee shops, to examine how these

limitations affect consumer behavior and purchasing decisions. The findings

from this research will be used as a roadmap for the proposed marketing plan

aimed at boosting customer engagement, enhancing mobility, and improving the

visibility of mobile coffee businesses in the area.

Sampling Technique

This study used convenience sampling, also known as accidental

sampling, a non-probability sampling approach in which respondents are

selected for participation since they are the most convenient for the

researcher to reach. According to Gonzar et al. (2022), this technique

allows researchers to select participants who are readily available and

willing to engage, making it strategically aligned with the research

objectives. In this study, a total of one hundred fifty (150) respondents

were selected. This group consisted of fifty (50) consumers from each of

three (3) mobile coffee shops located in Don Antonio, Barangay Holy
 34

Spirit: Tipanan Kopi, My Escafe, and Càfé 3838. The participants were

not preselected. Instead, data collection was conducted on-site during the

researcher’s visits to gather data at each coffee shop. Individuals who

were present at the time and demonstrated willingness to participate were

selected to answer the survey questionnaire.

Instrument Used

The researchers used a survey questionnaire as the main

instrument to gather data.

Construction of the Instrument

The researchers perform the following steps to obtain the necessary data

and information:

Part 1 includes the assessment of customer base limitations and

location constraints in terms of customer loyalty and retention, brand

awareness, consumer preference, product variety, accessibility and

visibility, regulatory restrictions, environmental factors, and competition

density. Responses are measured using a 4-point Likert scale ranging

from strongly disagree to strongly agree. Part 2 includes questions about

the challenges faced by mobile coffee shop proprietors regarding

customer base limitations and location constraints. This part attempts to

gather information insights that can be used as a roadmap to create a

proposed marketing plan, as well as address operational concerns within

 35

the customer base limitation and location constraints of the mobile coffee

shop in Don Antonio, Barangay Holy Spirit.

Validation of the Instrument

The instrument used in this study was reviewed and validated by

six research experts, including four research advisers, a statistician, and

a grammarian. Following this, the researchers will conduct a pilot testing,

in which the questionnaire will be distributed to five non-participants of the

study who love coffee or visit coffee shops. Once the pilot testing is

completed, the researchers will proceed to gather data from the actual

respondents in Don Antonio, Barangay Holy Spirit. The data gathered

from the survey will then be analyzed to draw conclusions and provide a

roadmap for the proposed marketing plan aimed at boosting customer

engagement, enhancing mobility, and improving the visibility of mobile

coffee businesses in the area.

Administration and Retrieval of the Instrument

The researchers brainstormed and carefully designed the questionnaire

to gather data and information. After the questionnaire was completed, it

received approval from the research adviser to ensure that the study adhered to

ethical standards and academic guidelines. Once it was approved, it was

distributed to 150 respondents. The next step is that the researchers will ask for

approval from the owner to conduct the survey. They will provide a formal letter

of request with the approval and signatures of the researchers, research adviser,
 36

research coordinator, and program head. The survey will be conducted every

Saturday and Sunday or during the availability of the proponents, in which the

researchers personally distributed the questionnaires to the 150 customers. To

answer the questionnaire, each respondent took approximately 10 to 20

minutes. After the respondents completed the questionnaires, the researchers

expressed their gratitude to both the respondents and the owner. They assured

that all data collected would remain confidential and be used solely for academic

purposes. Finally, the data collected will be analyzed to come up with a

marketing plan aimed at boosting customer engagement, enhancing mobility,

and improving the visibility of mobile coffee businesses in the area.

Statistical Treatment of Data

The following statistical tools will be utilized in the study the

weighted mean, the ranking, and the Pearson product–moment

correlation. These methods will be used to analyze the survey data that

will be measured on a Likert scale and to identify the relationships of the

variables.

1. Weighted Mean. The weighted mean will be applied to determine the

overall level of responses of the participants for each construct in the

study. This method summarizes the central tendency of responses from

the Likert-scale questionnaire items (Alnakhi et al., 2023; Ganti, 2024).

This study determines the respondents assess on customer base

limitation and location constraints of mobile coffee shop.

 37

𝑤𝑚 =
∑𝑤𝑥
Formula: ________
∑𝑤
Where: wx = weighted mean
∑wx = summation of weight and data

∑w = summation of weight

Ratin Verbal
Mean Scale Description
g Interpretation
Customer base limitations

and location constraints

have strongly affected the

Strongly Agree overall production of the

4 3.26 – 4.00
(SA)
mobile coffee shop in Don

Antonio, Barangay Holy

Spirit.

Customer base limitations

and location constraints

have slightly affected the

overall production of the

3 2.51 – 3.25 Agree (A)
mobile coffee shop in Don

Antonio, Barangay Holy

Spirit.

2 1.76 – 2.50 Disagree (DA) Customer base limitations

and location constraints

 38

have minimally affected

the overall production of

the mobile coffee shop in

Don Antonio, Barangay

Holy Spirit.

Customer base limitations

and location constraints

have not affected the

Strongly overall production of the

1 1.00 – 1.75
Disagree (SD)
mobile coffee shop in Don

Antonio, Barangay Holy

Spirit.

2. Ranking. A method in which the variable with the highest weighted

mean will be ranked first. In case of ties, the average rank will be

assigned. This allows the identification of which factors require urgent

strategic attention (Kumar, 2024). In the study, the ranking will be

employed to determine the influence of the customer base limitation and

location constraints of mobile coffee shops by arranging the weighted

mean scores from highest to lowest.

3. Pearson Product–Moment Correlation. A widely used statistical tool

for assessing the linear relationship between two variables. Its value
 39

ranges from –1 to +1, indicating both the strength and direction of the

association. A positive value suggests a direct relationship, while a

negative value reflects an inverse one. The coefficient is determined by

analyzing the placement of variables based on their mean scores (Turney,

2022). It is used to determine the correlation relationship between the

customer base limitations and location constraints of the mobile coffee

shop in Don Antonio, Barangay Holy Spirit.

Formula:

Where: r= correlation coefficient

x i= values of the x-variable in a sample

x = mean of the values of the x-variable

y i= values of the y-variable in a sample

y = mean of the values of the y-variable

Size of Correlation Interpretation

.90 to 1.00 ( -. 90 to - Very high positive (negative)

1.00) correlation
 40

.70 to .90 ( -. 90 to -. High positive (negative) correlation

90)

.50 to -. 70 (- 50 to -. Moderate positive (negative)

70) correlation

.30 to .50 ( -. 30 to Low positive (negative) correlation

- .50)

.00 to .30 ( -. 00 to -. Negligible correlation

30)