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Baybay City, Leyte, Philippines Lemuel S Journal of Economics, Management & Agricultural Development Vol. 6 No. 1 Factors Influencing Consumption Behavior of Choco-Carabao Milk in Visayas State University (VSU), Baybay City, Leyte, Philippines Lemuel S. Preciados1 and Fatima C. Catchero2 ABSTRACT This study assessed the factors influencing the consumption behavior of Philippine Carabao Center's (PCC) choco-carabao milk at Visayas State University (VSU), Baybay CityLeyte. Using proportionate random sampling, the study surveyed a total of 630 respondents. Consumption behavior was measured through the frequency of purchase, the number of bottles purchased per week, and the estimated weekly budget and expenditure for choco-carabao milk. These behaviors were analyzed using three different regression models. Results showed that different variables affected these measures of consumption behavior. The frequency of purchasing was mostly influenced by parental influence and the level of education of faculty and staff. On the other hand, the number of bottles purchased per week was negatively affected by the level of education, the distance of the shop, and the friendliness of store staff. Finally, the weekly budget for choco-carabao milk was negatively affected by the distance to the store and the price of the product. Keywords: market study, consumption behavior, choco-carabao milk, Philippine Carabao Center Introduction Milk is essential in the nutritional It is well-established in the literature diet of vulnerable groups such as infants, that the availability of flavored milk in stores children, and adults. Nutritionists especially chocolate milk products has recommend that milk and other dairy increased the purchase and consumption of products be consumed daily as part of a milk among children (Li, Lopetcharat, and balanced diet. The Philippine carabao Drake 2014). Like fresh milk, it provides (Bubalus bubalis L.) is a good source of milk essential nutrients which also resulted in for household consumption as well as a good increased consumption among adults source of indigenous products such as white (Murphy et al. 2008). However, other studies cheese or kesong puti and milk bar or pastillas noted that the high sugar content of flavored de leche. milk also raises concerns as it is often associated with obesity among most children The Philippine Carabao Center and adults (Berkey et al. 2004, Malik, Schulze, (PCC), an attached agency of the and Hu 2006). Department of Agriculture (DA), is responsible for the development of the Author’s Information carabao industry. It assists dairy cooperatives 1Assistant Professor, Department of Economics to boost their capability towards more Visayas State University (VSU), Baybay City, successful and independent carabao-based Leyte [email protected] enterprises. The PCC at the Visayas State University (VSU), Baybay, City, Leyte 2 Research Assistant, Department of Economics VSU, Baybay City, Leyte produces buffalo milk products such as [email protected] choco-carabao milk. Copyright © 2020, the Authors. This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareALike 4.0 License (https://creativecommons.org /licenses/by-nc-sa/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed. 72 Preciados and Catchero In contrast, other studies revealed that most parents have reported that flavored milk with reduced fat and sugar is much preferred than full fat or skim milk as it is better tasting and has added vitamin, minerals, and protein for their children’s nutritional diet. These considerations in turn affect their purchase decisions (Li, Lopetcharat, and Drake 2014). Compared to other milk drinks, the dairy buffalo’s choco-milk is highly nutritious and is also considered as a complete food containing fat, lactose, vitamins and minerals, and water (Tacio 2010). Carabao’s milk in the Philippines contains lower cholesterol content (0.65 mg/g) as compared with cattle's milk (3.14 mg/g) (Del Rosario 2010). Recently, the PCC provided various training and capacity building activities to farming families and dairy cooperatives to add more value to their milk products. The PCC's choco-carabao milk is already available to various consumers that suit even the taste of picky buyers. PCC in Baybay, Leyte firmly believes that choco-carabao milk can be of great help in eradicating malnutrition in the Region as it is healthier than other commercial drinks in the market. Moreover, most of the parents who visited the PCC stores have reported that their children prefer choco-carabao milk to plain fresh milk because of its color and taste. In general, however, the total market demand and intake of buffalo milk are low relative to its total domestic supply. In 2015, the net domestic dairy milk supply per capita in the country is only about 16.20 liters. However, only 1.12% of the total milk supply is produced domestically, while 98.88% are imported and are mostly sourced from New Zealand and the USA. Furthermore, of the total 12.93 million liters of milk produced in the country, only 34.93% were carabao's milk while the majority (63.42%) were cow's milk and 1.65% were goat's milk (Philippine Statistics Authority [PSA] Dairy Industry Performance Report 2015). There is, therefore, a strong need to increase the demand for buffalo’s milk in the country if we are to tap its full potential to improve nutritional outcomes. This could be supported by research that aims to understand the current market situation for PCC milk products to implement more efficient marketing strategies. Thus, consumer satisfaction should be measured and translated into several measurable parameters. Along this line, this study examined and identified the factors that may affect consumer behavior related to the frequency of purchase, number of bottles purchased per week, and the estimated weekly budget and expenditure for PCC's choco-carabao milk. Factors that were considered were consumer-related, product-related, social-influence, and store-related factors. Results implied the need for developing niche markets and establishing better relationships with PCC’s consumers and other stakeholders. These issues are relevant to the PCC’s thematic areas for Research for Development (R4D), particularly on market studies and capability development. Furthermore, consumer behavior research may provide a baseline standard of performance and a possible standard of excellence for PCC in terms of providing high quality and competitive products in the market while at the same time contributing to programs addressing malnutrition. Analytical Framework As defined by Burrow (2012), marketing represents "an organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders." This definition emphasized the crucial role of the customers. Therefore, marketing in an organization aims to create value for consumers that is embodied in their produced goods and services, through which consumers will meet their needs and reach desired satisfaction (Barmola and Srivastava 2010). This study focused on studying various factors influencing the consumption and satisfaction of consumers when purchasing specific products, specifically the PCC’s choco-carabao milk. Many researchers identified various factors behind the low consumption of milk and milk products. Kumar and Babu (2014) reported that advertisement, brand preference, product availability, product pricing, product quality, and product variety influence consumer’s Journal of Economics, Management & Agricultural Development Vol. 6 No. 1 73 purchase behavior for milk. Using the weighted average method, product quality (i.e., freshness, taste, and texture), availability (i.e., variety), and the price was considered as the three major factors driving the purchase of dairy products. Some factors that are consumer, product and environment-related also influence the consumption of dairy products. Boniface and Umberger (2012) studied specifically the demand for fresh fluid milk, powdered milk, butter, cheese, yoghurts, and ice cream. Through face-to-face interviews and statistical analysis, they identified a group of most significant factors influencing Malaysian consumer's dairy consumption. The research showed that age, ethnicity, nutritional benefits, and social groups were the factors with a significant and positive impact on the consumption of dairy products among Malaysian consumers. The most significant factors identified for consumers' dairy consumption were label information, perceived health benefits, and the presence of the Halal logo. Cleanliness and accessibility of the store and availability of quality products were also identified as factors influencing consumers’ purchase of dairy products. Other findings related to this study were researched by Kresic et al. (2010). They focused on reviewing purchase habits, behavior, and motives in selecting dairy beverages by consumers of Kvarner, Croatia. The study showed that gender and education were significant explanatory variables of purchase and consumption patterns. Results also showed that women have a higher demand than men for dairy beverages, including low-fat variants. On the other hand, men’s purchases exhibited more brand loyalty than women. Consumers who attained a higher level of education prefer whey-based
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