Understanding the Customers’ Satisfaction and Demand for Carbonated Drinks as Basis for the

Establishment of a Manufacturing Soda Business at the Caloocan City

Theoretical Framework

The proposed study will be anchored on the theory of Kabu Khadka & Soniya Maharjan

entitled Customer Satisfaction and Customer Loyalty. It consists related concepts with its

corresponding definitions that will help and support the effectiveness of the proposed business.

Customer satisfaction is extremely important because it is the way of getting a feedback

from the customers in a way that they can use it to improve re-evaluate their business. It is the

best indicator of how the business looks like in the future. Customer satisfaction helps in doing

SWOT analysis that could help businesses to improve their strategy in an advance and in a

systematic way. Other than this, it will also help in making the right decision to use the

appropriate resources while manufacturing the products. Similarly, it maintains the relationship

with the existing customers and also creates the possibility to acquire others. When products are

bought, customers expect perfection instead of quantities. There are varieties of products that are

similar in the market and sometimes it is difficult to distinguish which one is qualitative and

durable. This is the great opportunity for the business organization doing marketing of their

products and services to understand what exactly customers are seeking for. Customer

satisfaction is a key indicator of the marketplace that evaluates the success of the organization.

People have varieties of tastes and choices and therefore, satisfaction also differs from one

person to another. It also may vary the expectation of the consumer depending on the option they
may have, such as the national and international market. In the process, granting the satisfaction

to the customer in both physical and technological aspects have changed drastically. There is still

no method of measuring customer satisfaction, but the feedback from the customer can be taken

as a crucial tool for measuring customer satisfaction, thus, it’s cheaper to retain customers than

acquire new ones. Customer satisfaction is the primary aim of most of the company. It ensures

that the customer wants to return to purchase the service. Satisfied customers are more likely to

recommend the product to their friends and families which will help the business to grow. A

totally dissatisfied customer decrease revenue, whereas satisfied customer has a positive effect

on profitability (Kabu Khadka & Soniya Maharjan (2017).

The researchers aim to be one of the most leading carbonated drink in the country. As

they thrive for the goal, they analyze how efficient and effective the study would be and

concluded to use the model created by Deep,2017 named the "Factors Influencing Consumer

Behavior”.
Figure 1. Factors Influencing Consumer Behavior (Deep,2017)

In the study presented by Kabu Khadka & Soniya Maharjan (2017) they said that the

consumer behavior refers to the selection, purchase, and consumption of goods and services for

the fulfillment of their basic and the fundamental needs. There are different phases involving the

consumer behavior. Typically, the consumer finds the needs and then goes for the selection and

budgets the commodities and take the decision to consume. Product quality, price, service,

consumer emotion, personal factors, situational factors, a perception of equity or fairness,

product features are some of the factors that influence the customer satisfaction.

Cultural Factors

Understanding a person’s needs and behaviors falls under knowing one’s culture and

norms. The behaviors, values, perceptions and even preferences are mainly the knowledge that

are being learned at the early stages of childhood of every individual which came from the

people that surrounds the person’s environment. The recognized values have been passed from

generation to generation which defines culture as a concept of factors that represents the instilled

learnings and values of an individual that further defines a consumer’s want and buying

behaviors. These said users or consumers are mainly influenced by a group they actually belong

to as well as by groups that they are willingly likely to join with (Kabu Khadka & Soniya

Maharjan 2017).

On a research conducted by Dr. Yakup Durmaz (2014) a culture is the essential character

of a society that differs it from another cultural groups. The underlying elements of every culture

are the values, language, myths, customs, rituals, laws, and the artifacts, or products that are
transmitted from one generation to the next generation. Culture is the most fundamental

determinant of a person’s wants and behavior. Whereas lower creatures are governed by instinct,

human behavior is largely learned. The child growing up in a society leans a basic set of values,

perceptions, preferences and behaviors through a process of socialization involving the family

and other key institution. Culture has several important characteristics: (1) Culture is

comprehensive-it means that all parts must fit together in some logical fashion. For example,

bowing and a strong desire to avoid the loss of face are unified in their manifestation of the

importance of respect. (2) Culture is learned rather than being something we are born with. (3)

Culture is manifested within boundaries of acceptable behavior, failure to behave within the

prescribed norms may lead to sanctions. (4) Conscious awareness of cultural standards is limited.

(5) Cultures falls between the static and dynamic depending on how quickly they accept change.

Social Factors

Kabu Khadka & Soniya Maharjan (2017) claims that a person is most likely to live in an

environment where one can socially interact with various people in which they differ in

characteristics and buying behavior. The small and private groups such as family, friends, social

connections and other networks are commonly the ones who can influence a person’s behavior.

Later on, these groups can further develop an environment wherein one can remodel and shape

its own personality. Thus, social factor greatly creates an impact to an individual’s buying

behavior.

According to Tanja Lautiainen (2015), social factors affect the consumer behavior

dramatically. Each individual has someone that surrounds and influences their buying decisions.

The important social factors are: reference groups, family, role and status. Every consumer is an

individual, but still belong to a group. The group to which a consumer belongs is called a
membership group. This is a direct and simple classification. The second group type is a

reference group. The reference group influences the self-image of consumers and consumers’

behavior. The reference group are the ones that provides some points of comparison to

consumers about their behavior, lifestyle or habits. Normally there are many smaller reference

groups, which are formed by family, close friends, neighbors, work group or other people that

consumers interact with. The groups to which a consumer does not belong yet can also influence.

These aspirational groups are groups where a consumer aspires to belong and wants to be part in

the future. Family members can easily influence individual consumers’ buying behavior. A

family forms the environment for an individual to acquire values, develop and shape personality.

This environment offers the possibility to develop attitudes and opinions towards several subjects

such as social relations, society and politics. A family creates first perceptions about brands or

products and consumer habits. Social status reflects the position that individuals have in social

groups based on such things as money and wealth, education or occupation. In some societies,

status is important and people want the admiration of others. Social status can be acquired by

being successful in life or being born into successful family. Product and brand selection often

reflect the social role and status of an individual.

Personal Factors

Above all things that can affect a consumer buying behavior comes the personal factors

which includes one’s age level, the kind of occupation, economic status as well as the lifestyle.

Eventually, an individual is just coping to its environment and its own personal aspect. Financial

stability is an aspect that impact to one’s buying behavior. A low paying salary results to

purchasing inexpensive products and on contrary, high paying salary would pretty much mean

availing luxurious products. Lifestyle as well influences a consumer’s behavior, an individual

2017).

On a study conducted by Tanja Lautiainen (2015), a person decision is influenced by

personal factors such as a buyer’s age and life cycle state, occupation, economic situation,

lifestyle, and personality and self-concept. Consumers’ change during their life and buying of

products alter depending on what age and stage of life they are in. Age related factors are such as

taste in food, clothing, recreation and furniture are also considered. Furthermore, environment,

values, lifestyle, hobbies and consumer habits evolve during lifetime. Family life stages change

purchasing behavior and brand selection. Traditionally a family life cycle included only young

singles and married couples with children. Nowadays marketers are focusing on alternative,

nontraditional stages such as unmarried couples, 8 childless couples, same sex couples, single

parents and singles marrying later in life. The consumer’s occupation, stability and purchasing

power influence purchasing decisions and buying behavior. Income level also affects what

consumers can afford and the perspective towards money. Those who share similar

characteristics, tend to have similar taste in music, clothing and leisure activities. They usually

interact with each other, and share the same kind of values and ideas. Those individuals who has

lower income are probably more interested in buying products that are necessary for survival

than spending on luxury brands or designer clothes.

Tanja Lautiainen (2015) also added that the personality distinguishes one person from

another by individual traits. The said personal traits can be self-confidence, adaptability,

sociability and dominance. Personality determines how we see ourselves and the world around us

as well as how other people see us. To put it in another way, it is the image that people hold

about their selves formed by attitudes and beliefs. Many brands have developed an image and
personality that correspond with consumers’ values and traits. It allows consumers to express

themselves through brand choices, thus being themselves.

Psychological Factor

(Kabu Khadka & Soniya Maharjan 2017) clearlystated that the psychological factors are

driven by motivation, perception, learning, beliefs and attitudes. The said factors play a vital role

to one’s buying behavior. Business owners should always encourage consumers and instill the

thought in the consumers’ mind that a product is a major need to them in which in the latter,

would further develop the customers’ interest in the said product. Additionally, a customer’s

attitude allows himself to create a coherent behavior aligned to their personality.

They also added that having all of these various factors that can affect a consumer’s

buying behavior, a consumer-oriented market service provider or any type of business that

strictly understands these concepts would have a great advantage on procuring customers.

Keeping all these factors in mind could greatly help a business venture to measure a customer’s

demands, expectations, wants and needs which then would further improve the business

operations of an organization and would soon result to achieving consumer satisfaction and

loyalty. The study of consumer buying behavior presents the image, health concern, quality,

value and price that directly impacts customer satisfaction (Kabu Khadka & Soniya Maharjan

2017).
 Additionally, Tanja Lautiainen (2015) also claims that a consumer is an individual who

has different kind of needs and wants. The said needs and wants can be biological like thirst or

psychological arising from the need of recognition or belonging. A need can be aroused to a

sufficient level of intensity when it alters a motive. A motive is basically a need that drives a

person in seek for satisfaction.