Factors Affecting Millennial Customers' Purchasing Decision on Fast-Food Chains in SM Manila / Almendras, Shane Angelo B., Briones, Clarice L., Ilagan, Lettice Margaret A., Manto, Maureen Edith R., Sasil, Joyce Ann A., Sumpay, Moreen P. 6

Research Paper: (BSBA major in Financial management) - Pamantasan ng Lungsod ng Maynila, 2023. 56

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Abstract Customer behavior is constantly changing and evolving, resulting to a change in their purchasing decisions. This study focused on the factors affecting the purchasing decisions of the millennial customers of fast-food chains. This study is relevant as food is non-negotiable. People always end up looking for places to eat. Every business, specifically fast-food chains, needs to consistently adjust marketing strategies to satisfy their customers and generate revenue. This study aimed to determine the following: demographic profile of the respondents in terms of age, sex, income, employment status, and frequency of purchasing fast-food products; level of the factors affecting the millennial customers' purchasing decisions in terms of location, quality of products, customer service, price, and promotions; and the significant relationship between the factors affecting the millennial customers' purchasing decision when grouped according to their demographic profile. The demographic profiles were classified as the independent variable of the study, while the customers' purchasing decision were the dependent variable. The independent variable is intervened by the factors affecting customers' purchasing decision. The hypothesis of this study indicates that the independent variable has no significant relationship with the dependent variable. This study adapted two (2) theories which are the (1) Engel Kollat Blackwell (EKD) Model, also known as Consumer Decision Model, by Engel, Kollat, and Blackwell and the (2) Marketing Mix by Jerome McCarthy. According to the EKD Model, there are five stages for customers to decide when buying what they want or need. The five (5) stages are: need recognition, information search, evaluation of alternative, purchase decision, and post purchase behavior. Moreover, according to the marketing mix, the combination of marketing elements such as place, products, price, and promotion helps businesses to make strategic decisions on their products. This study utilized these elements and included these as factors affecting the millennial customers' purchasing decisions. This study used the correlational method as its research design to assess the relationship between the variables. Furthermore, this study was conducted in SM Manila. The total population of the study is one hundred three (103) millennial customers of the fast-food chains of SM Manila. The researchers used a purposive sampling technique as the choice of respondents was subjective. The researchers formulated a survey questionnaire which consisted of two (2) sections, which was congruent to the two (2) statements of the problem of this research. The questionnaire used a four-point Likert scale that ranged from 1 for Strongly Disagree, 2 for Disagree, 3 for Agree, and 4 for Strongly Agree. As for the statistical treatment, the research contained frequency and ranking for the demographic profile of the respondent while for the factors affecting the customers' purchasing decision, the researcher used mean for interpretation. The researchers also used Pearson's correlation coefficient to determine if the independent variable has a significant relationship with the dependent variable. The findings of the study revealed that factors such as location, quality of products, customer service, price, and promotions all play a significant role in the decision-making processes of customers. Findings showed that age and income both exhibit a tendency to positively influence customers' purchasing decisions. This implies that when developing marketing strategies and tailoring their offerings to the preferences and behaviors of their target audience, businesses should pay special attention to the demographic factors of age and income. Overall, fast-food chains should prioritize maintaining high standards of flavor, freshness, and presentation, and must also invest in training their employees to provide superior customer service. Furthermore, fast-food chains must also pay attention to offering competitive prices that reflect the quality and quantity of their products and employ advertising campaigns for their targeted customers.

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