Significance of the Study

This study holds significant value for various stakeholders, particularly milk tea shop owners, marketers,
customers, and future researchers.

milk tea shop owners and local businesses in Virac, Catanduanes, the findings of this study provide
valuable insights into the effectiveness of social media marketing in promoting their businesses. By
identifying which platforms are most popular and engaging for customers, as well as understanding
customer preferences and interactions with online content, business owners can make informed
decisions to improve their social media strategies. This could lead to better customer engagement,
increased brand awareness, and ultimately, enhanced sales performance.

For marketing professionals and entrepreneurs, the study offers practical guidance on the types of
content and promotional strategies that resonate with customers. The insights can help refine
marketing campaigns and maximize the impact of online promotions. Additionally, this research
highlights the importance of understanding local market trends, customer behaviors, and preferences,
which are crucial for crafting tailored and effective marketing campaigns.

For customers, the study gives them a voice in shaping how milk tea shops interact with their audience
online. Understanding customer engagement patterns and preferences will allow milk tea shops to
create content that is more aligned with customer interests, enhancing the overall customer experience.

Finally, for future researchers, this study contributes to the existing body of knowledge on social media
marketing and consumer behavior in small-scale business settings. It serves as a reference for future
research on the role of digital platforms in local business marketing and provides a foundation for
comparative studies in other regions or industries.

Operational Definition of Terms

1. Social Media Marketing

For the purposes of this study, social media marketing is defined as the strategic use of platforms like
Facebook, Instagram, and TikTok by milk tea shops in Virac, Catanduanes, to create posts,
advertisements, and promotions aimed at engaging customers and increasing brand awareness.
2. Milk Tea Shops

In this study, milk tea shops are defined as businesses located in Virac, Catanduanes, that specialize in
selling milk tea beverages and related products. These businesses actively promote their services on
social media platforms to attract and retain customers.

3. Customer Engagement

Customer engagement is operationally defined as the frequency and nature of interactions between
customers and the social media content posted by milk tea shops. This includes measurable actions such
as liking, commenting, sharing posts, and participating in online promotions or events.

4. Social Media Platforms

For this study, social media platforms are defined as Facebook, Instagram, and TikTok. These platforms
are used by milk tea shops in Virac to reach their target audience through various types of content such
as images, videos, and promotional offers.

5. Brand Awareness

Brand awareness is operationally defined as the extent to which customers in Virac, Catanduanes
recognize or recall a milk tea shop based on their exposure to its social media content. This is measured
by respondents’ ability to name or recall specific milk tea shops they follow or have interacted with
online.

6. Promotion

In this study, promotion refers to any online activity organized by milk tea shops, such as discounts,
giveaways, or special offers, designed to encourage customer participation and increase sales. This study
will measure the frequency and effectiveness of these promotional activities based on customer
participation rates.
7. Customer Preferences

Customer preferences are defined as the specific types of social media content that customers find most
appealing and engaging, such as product images, customer testimonials, or promotional offers. This will
be assessed through a survey asking respondents to rate their preferred content types.

8. Social Media Content

Social media content is defined operationally as any visual (images, videos), textual (captions, posts), or
interactive media (polls, quizzes) shared by milk tea shops on their social media accounts. This content is
aimed at promoting products, engaging customers, or sharing information.

9. Demographic Profile

The demographic profile is operationally defined as the personal information of the survey respondents,
including their age, gender, and frequency of milk tea consumption, as well as their usage patterns of
social media platforms. This data will be collected through survey questions asking for these specific
details.

11. Followers

Followers are operationally defined as individuals who actively follow a milk tea shop’s social media
page (Facebook, Instagram, or TikTok), receiving updates, posts, and promotions shared by the business.
This will be determined by self-reports from respondents confirming they follow at least one milk tea
shop in Virac.
12. Likelihood of Interaction

The likelihood of interaction is defined operationally as the probability that customers will engage with
milk tea shop posts on social media. This will be measured using a Likert scale survey asking respondents
to indicate how likely they are to like, comment, share, or participate in promotions based on their
previous interactions.

Chapter 2: Review of Related Literature and Studies

This chapter presents a review of related literature and studies that provide insights into the research
topic and help in understanding the context and significance of the study. The literature and studies are
categorized into Local and International sources to highlight both the global and local perspectives on
the effectiveness of social media marketing for promoting milk tea shops.

---

Review of Related Literature (RRL)8

International Literature

Social media has become an integral part of businesses' marketing strategies worldwide, especially in
the food and beverage industry. A report by DataIntelo (2023) highlighted the projected growth of the
milk tea industry, stating that by 2023, it will reach USD 23 billion globally, largely driven by social media
promotions. The International Journal of Business and Marketing (2021) discusses how platforms like
Instagram and Facebook have reshaped customer interactions with brands, fostering engagement and
driving sales. Similarly, Chaffey (2022) emphasized the role of interactive content in influencing
consumer behavior, where user-generated content and reviews on platforms like Instagram lead to
increased trust and purchase intentions. Tuten and Solomon (2017) also underscored the importance of
creating authentic, engaging content on social media to build brand loyalty and long-term relationships
with customers.

Local Literature

In the Philippines, social media marketing has proven to be a powerful tool for local businesses,
including milk tea shops. Ramos and Limos-Galay (2023) discussed the role of social media in enhancing
customer loyalty for milk tea shops in San Jose, Occidental Mindoro, highlighting how platforms like
Facebook and Instagram helped increase brand visibility and customer retention. The Department of
Trade and Industry (DTI) (2022) reported that over 85 million Filipinos use social media, with small
businesses leveraging this platform for marketing and promotions. The study by MarkNtel Advisors
(2023) observed that Filipino businesses, particularly in the food and beverage sector, are significantly
benefitting from social media, with Facebook and Instagram as the top platforms for customer
engagement. Christison (2023) also showed that milk tea shops in smaller cities such as Tanauan, Leyte,
are using social media to reach a broader market, proving the platform's power in rural and less
urbanized areas.

---

Review of Related Studies (RRS)

International Studies

Globally, various studies have examined how milk tea brands utilize social media to increase their
market share. Mixue (2022) explored how the popular Chinese milk tea brand uses WeChat and TikTok
for customer acquisition, leading to significant brand growth in local and international markets. The
Journal of Interactive Marketing (2021) found that milk tea businesses that maintained an active and
interactive social media presence saw higher levels of customer engagement and repeated visits. In a
similar vein, Davis (2021) investigated how social media platforms contribute to customer purchasing
decisions in the global beverage market, highlighting the role of promotions and influencer
collaborations in attracting customers. According to Lu and Zhang (2020), social media interactions like
commenting and sharing posts create a sense of community, which significantly impacts the purchasing
behavior of customers, especially in the beverage industry.

Local Studies

Locally, studies focusing on the effectiveness of social media marketing in promoting milk tea shops
have emerged in recent years. Christison's (2023) research in Tanauan, Leyte, showed that milk tea
shops actively using Facebook and Instagram for promotions saw an increase in customer loyalty and
positive word-of-mouth marketing. Aguirre and Mallari (2022) examined how the use of hashtags and
influencer marketing on social media platforms increased foot traffic to milk tea shops in Manila.
Similarly, Bautista (2022) found that milk tea businesses in Cebu experienced higher engagement rates
through interactive content, including polls and giveaways on Facebook. A study by Santos (2022) found
that Facebook's targeted advertising features significantly impacted customer awareness and
engagement, contributing to the overall success of small and medium-sized milk tea shops in the
Philippines.

Synthesis of the State of the Art

Social media marketing has become a key tool for milk tea shops globally and locally. International
studies, such as those by Mixue (2022) and Tuten & Solomon (2017), highlight the effectiveness of
platforms like TikTok, Instagram, and Facebook in driving customer engagement and brand loyalty.
These studies emphasize the importance of interactive and authentic content in fostering customer
relationships. Locally, studies by Ramos & Limos-Galay (2023) and Aguirre & Mallari (2022) show that
Filipino milk tea shops also benefit from these platforms, with Facebook and Instagram playing a major
role in attracting and retaining customers.

However, there is limited research focused on smaller cities like Virac, Catanduanes, creating a gap in
understanding how social media strategies perform in less urbanized areas. While current studies
highlight the success of digital marketing, they lack in-depth analysis of how these shops balance online
strategies with offline efforts. This research aims to fill these gaps and provide localized insights for milk
tea businesses in Virac, Catanduanes.
Gaps bridged in the study

This study bridges several gaps in existing research, particularly by focusing on milk tea shops in Virac,
Catanduanes, a relatively underexplored area in social media marketing. While previous studies have
concentrated on urban areas or international markets, this research provides insights into how social
media marketing works in a rural context. It also addresses the gap in understanding customer
engagement on social media, particularly in terms of likes, comments, shares, and participation in
promotions for milk tea shops. Furthermore, the study explores how specific promotional strategies,
such as discounts and product showcases, affect customer behavior. By focusing on social media
followers who are also customers, it offers a unique perspective on how social media engagement can
directly impact purchasing decisions, filling an important gap in the literature.

Conceptual Framework

This study examines how Social Media Marketing Strategies (independent variable) influence Customer
Engagement and Customer Purchase Behavior (dependent variables) in milk tea shops in Virac,
Catanduanes. The goal is to explore how different social media marketing tactics, including content
types, promotional offers, and platform usage, affect customer engagement (likes, comments, shares,
and participation in promotions) and ultimately influence customer behavior, such as brand loyalty and
purchase decisions.

Independent Variable:

Social Media Marketing Strategies: This variable includes the different marketing tactics used by milk tea
shops on social media platforms like Facebook, Instagram, and TikTok. These strategies may include:

Content Types: Product posts, promotional offers, behind-the-scenes content, customer testimonials,
and engagement-driven content (e.g., polls, giveaways).

Promotions and Campaigns: Discounts, special offers, limited-time promotions, and contests that
encourage customer interaction and participation.
Dependent Variables:

Customer Engagement: This refers to how customers interact with the milk tea shop’s social media
posts. Key indicators of engagement include:

Likes: The number of users who engage with a post by liking it.

Comments: The level of interaction through written responses to posts.

Shares: When customers share the post with their network, extending reach.

Participation in Promotions: Responding to contests, giveaways, or special offers.

Customer Behavior: This focuses on how engagement leads to customer actions, such as:

Purchase Behavior: Whether customers are more likely to buy from the shop after engaging with its
social media content.

Brand Loyalty: The likelihood of customers returning to the milk tea shop, influenced by their social
media interactions.
The Independent Variable (Social Media Marketing Strategies) directly impacts the Dependent Variables
(Customer Engagement and Customer Behavior). By analyzing how social media marketing strategies,
such as specific content types and promotions, affect customer engagement (likes, shares, comments),
this study investigates whether such interactions lead to tangible outcomes like higher purchase
behavior and enhanced brand loyalty.