Research Paper
Research Paper
OF THE PHILIPPINES
A research paper
Judyne Laman
Arlene Puchero
Researchers
Research Teacher
Chapter I
Introduction
The internet has played a significant role in our daily life in that people can talk through
the internet to one who is actually on the other side of the Earth, can send email around the
clock, can search information, can play game with others, and even can buy things online.
Meanwhile, Internet shopping has been widely accepted as a way of purchasing products and
services It has become a more popular means in the Internet world ((Bourlakis et al., 2008)). It
also provides consumer more information and choices to compare product and price, more
choice, convenience, easier to find anything online ((Butler and Peppard, 1998)). Online
shopping has been shown to provide more satisfaction to modern consumers seeking
convenience and speed ((Yu and Wu, 2007)). On the other hand, some consumers still feel
uncomfortable to buy online. Lack of trust, for instance, seems to be the major reason that
impedes consumers to buy online. Also, consumers may have a need to exam and feel the
products and to meet friends and get some more comments about the products before purchasing.
Such factors may have negative influence on consumer decision to shop online.
allows for retailers to expand their market and reach out to consumers who may not otherwise
visit the physical store. The convenience of online shopping is the main attraction for the
consumers. Unique online payment systems offer easy and safe purchasing from other
individuals. Electronic consumers exhibit different buying behaviors such as; cart abandonment.
The benefits of shopping online also come with potential risks and dangers that consumers must
be aware of. In the future, we can expect online stores to improve their technology tremendously,
Consumers buy a variety of items from online stores. In fact, people can purchase just
about anything from companies that provide their products online. Books, clothing, household
appliances, toys, hardware, software, and health insurance are just some of the hundreds of
Many people choose to conduct shopping online because of the convenience. For
example, when a person shops at a brick-and-mortar store, she has to drive to the store, find a
parking place, and walk throughout the store until she locates the products she needs. After
finding the items she wants to purchase, she may often need to stand in long lines at the cash
register.
In contrast, online shopping helps consumers avoid these disadvantages. With online
shopping, a person logs onto the Internet, visits the store's website, and chooses the items she
desires. The items are held in a virtual shopping cart until she is ready to make her purchase. The
shopper can remain in her pajamas as she does her shopping, and the process can be conducted in
the wee hours of the morning or late into the night. Online stores never close - they're open 24
hours a day.
Despite the convenience of online shopping, not everyone chooses to purchase items and
services online. Some people like the idea of physically going to a store and experiencing the
shopping process. They like to touch the merchandise, try on clothing, and be around other
people. Online shopping doesn't permit shoppers to touch products or have any social interaction.
It also doesn't allow them to take the merchandise home the same day they buy it.
Other people may worry about shopping online because they fear their credit card
information will be compromised. Since it's necessary to provide credit card information when
purchasing products online, people worry they may become the victims of identity theft. This
Another reason some consumers avoid shopping online is the fact that they worry that the
products they purchase are not accurately portrayed in the website's picture. They worry that the
picture of the item may appear one way, but the actual item may look completely different -
perhaps of lesser quality. It's also impossible to try on apparel when conducting online shopping.
A consumer has to rely on body measurements in order to make sure the clothing will fit
properly. If the clothing arrives in the mail and it's too small, the consumer has to return the item.
This is a potential inconvenience that some shoppers may not wish to face.
Nowadays, the Internet is being widely used in daily life. The existence of the Internet
brought many advantages to individuals daily lives. With the help of the medium, people can
communicate, learn, entertain, buy products and get services. Of course the disadvantages of it
have long been discussed; as the virus threat, the risk of personal information theft, spamming
etc. However since the advantages outweigh the drawbacks, most of the people cannot resist
Since the beginning of the Internet, individuals have shown interest to the Internet.
According to Internet World Stats' statistics (2012) today more than two billion people linked to
the Internet. This number shows that 30 percent of the world population uses the Internet.
Consequently, the Internet can be used for the competitive advantage by organizations and
The Internet have been using for several different purposes. Besides that, it has also
brought a different dimension to commercial activities. The Internet has created a new market for
both customers and organizations, and has been an alternative market to the traditional market.
Web sites provide a chance to search information about products/services, place a comment or
give orders (Hoffman and Novak, 1996; 51). Therefore, the previous experiences of marketing
have turned into a different segment. Now organizations are taking consider to provide different
payment methods, different shipping alternatives and even different web interfaces for different
geographic.
Today, with the rise of the technology, significant portion of commercial activities take
place over the Internet. Since commercial activities' main goal is to sale, sale can be realized by
the purchase of a different party, as we know customers. Therefore, for electronic commercial
and apply effective marketing strategies the factors that affect consumer behaviors should be
investigated. Online retailers can better understand customer needs and wants by directly
analyzing the interaction between a customer and the online shop. Analyzing consumer behavior
is not a new phenomenon for scholars. Philip Cotler, marketing expert, have studied on this
topic. Theories about consumer behavior have been used to develop an effective marketing
strategy. Moreover, it is impossible to think marketing without the Internet in today's world.
Online marketing is the topic that have been researched and made applications many times by
researcher from past to nowadays. Studies on online shopping investigated the factors that
influence online shopping as well as motives for, value of and antecedents of online buying
behavior. As a result, the academic researchers and the business world started to focus on the
consumer side of the online purchasing behavior and a lot of researches and articles were
Theoretical Framework
The process of making decision are very similar whether the consumer is offline or
online. But one some major differences are shopping environment and marketing
typically starts with need awareness, then information search, alternative evaluations, deciding to
In terms of online communication, when customers see banner ads or online promotion,
these advertisements may attract customers attention and stimulate their interesting particular
products. Before they decide to purchase, they will need additional information to help them out.
If they do not have enough information, they will search through online channels, e.g., online
catalogs, websites, or search engines ((Laudon and Traver, 2009)). When customers have enough
information, they will need to compare those choices of products or services. In the search stage,
they might look for the product reviews or customer comments. They will find out which brand
or company offers them the best fit to their expectation. During this stage, well-organized web
site structure and the attractive design are important things to persuade consumers to be
interested in buying product and service ((Koo et al., 2008)). Moreover, the information sources
nature may influence buyer behavior ((Bign-Alcaiz et al., 2008)). The most useful
characteristic of internet is that it supports the pre-purchase stage ((Maignan and Lukas, 1997))
as it helps customers compare different options ((Dickson, 2000)). During the purchasing stage,
product assortment, sale services and information quality seem to be the most important point to
help consumers decide what product they should select, or what seller they should buy from
((Koo et al., 2008)). Post-purchase behavior will become more important after their online
purchase. Consumers sometimes have a problem or concern about the product, or they might
want to change or return the product that they have bought. Thus, return and exchange services
All five stages described above are affected by external factors of risks and trusts
(Comegys et al., 2009). The search process is a significant component of customers online
shopping behavior (Seock and Norton, 2007). The source risk comes in the stage of information
search and evaluation because the information in the web sites might contain some mistakes.
Some websites require customers to register before searching their website. As such, in addition
to product risk, consumers also face the risk of information security (Comegys et al., 2009; Wang
et al., 2005). Because of the nature of online purchasing, customers take the risk as they are not
able to examine the product before purchasing. They also take the risk in the payment process
because they may need to provide personal information including their credit card number.
Security problem does not stop at the purchase stage but continues to the post-purchase stage
Conceptual Framework
consist of quality, shipping charge, satisfaction and security which attributes to the
change in the dependent variable which is the students of Bachelor of Science Major in
Hypothesis
experience;
6. There is a relation between consumers satisfaction and their intentions to buy in the
future
7. Satisfaction of consumers is affected by convenience and quality offered.
students.
Specifically, the researchers seek to find the answers to the following question:
The study aims to know and ensure if the respondents, BSBA students, are affected by
what factors and what the respondents think may result to that as it affect the their perception
about online shopping. The researchers are trying to show what factor has the greatest
Definition of Terms
The following terms used in this study are defined theoretically and operationally.
Consumer - an individual who buys products or services for personal use and not for
manufacture or resale.
(www.investorwords.com/1055/consumer.html#ixzz4Y4OeYmUW)
Demand - an economic principle that describes a consumer's desire and willingness to
(http://www.dictionary.com/browse/merchandise)
Online shopping - The act of purchasing products or services over the Internet.
(www.businessdictionary.com/definition/online-shopping.html)
Chapter II
The review of the literature for this study focuses on procedures used to identify teaching
strategy and learning styles. The chapter begins with a definition of learning styles, teaching
strategy followed by the findings of researchers using various instruments to measure learning
style and teaching strategy. The research outcomes germane to learning styles and teaching
The typical Internet user of the twentieth century is young, professional, and affluent with
higher levels of income and higher education (Palumbo and Herbig, 1998). They value time
more than money which automatically makes the working population and dual-income or single-
parent households with time constraints better candidates to be targeted by non-store retailers
(Burke, 1997). Actually, both demographics and personality variables such as opinion leadership
or risk aversiveness are very important factors that are considered in studies trying to determine
the antecedents of Internet purchases (Kwak et al., 2002). Confirmatory work shows that income
and purchasing power have consistently been found to affect consumers propensity to shift from
Internet usage history and intensity also affect online shopping potential. Consumers with
longer histories of Internet usage, educated and equipped with better skills and perceptions of the
Web environment have significantly higher intensities of online shopping experiences and are
better candidates to be captured in the wellknown concept of flow in the cyber world (Sisk,
2000; Hoffman and Novak, 1996; Liao and Cheung, 2001). Those consumers using the Internet
for a longer time from various locations and for a higher variety of ser-vices are considered to be
online purchasing potential. Whether the consumer has a wired lifestyle and the time constraints
the person has are much more influential. Risk taking 14 propensity is also a powerful factor. E-
shoppers have higher risk taking tendencies. Consumers with high levels of privacy and security
concerns have lower purchasing rates in online markets but they balance this characteristic with
their quest for making use of the information advantage of the environment (Kwak et al., 2002;
Miyazaki and Fernandez, 2001). These educated individuals, as more confident decision makers,
are much more demanding and have greater control over the purchasing process from initiation
Related Studies
Many studies frequently mention that there is a vast amount of window shopping taking
place online but the number or the rate of surfers who turn into purchasers or regular buyers are
very low (Mayer, 2002; Betts, 2001; Oliver, 1999). This might happen because of the lack of
consumer intention to purchase an offering from the online environment at the outset. It might
also happen 15 because of various problems that arise during online shopping driving the
consumer to abandon the task in the middle. Therefore, while one stream of research should
identify the reasons behind the purchase reluctance of consumers, another area of concentration
should be why people abandon their shopping carts and stop the purchasing process in the
middle. Such attempts can help to understand how to turn surfers into interactors, purchasers,
and finally, repeat purchases by making them enter into continuous interaction with this
Common reasons for purchase reluctance are the difficulties and costs of distance
shipping, inadequate amount of purchase related information, troubles experienced after the
purchase such as delivery or refund problems, general security fear, and various perceived risks
such as financial, product-related or psychological risks (Mayer, 2002; Chen and He, 2003). On
the other hand, the reasons of abandoning purchases are much more technical such as unexpected
shipping costs or transaction complexity (Harvard Business Review, 2000). In other words, some
consumers accept to shop from the Internet in principle but technical complexities or ineffective
Regardless of the pessimistic state of events, marketers should not be hopeless about the
future. Once the risks consumers perceive about shopping through the Web are reduced, the
environment still promises a high potential for selected consumer segments. Studies show that
consumers who search for product related information through the Web have stronger intentions
to make purchases online (Shim et al., 2001). Therefore, building on the information advantage
can be expected to pay off in the future. Constructing effective decision support systems and
assisting consumers with interactive decision tools are also successful attempts that need to be
developed further (OKeefe and McEachern, 1998; Barber, 2001). However, investing on the
pre-purchase stages of the decision making process is not adequate. Developing and testing the
effectiveness of specific selling strategies and tactics for the cyber market are also crucial.
Studies that focus on currently unavailable but possible tools of cyber shopping in the future,
such as the use of artificial shopping agents that work on behalf of consumers in the online
market (Redmond, 2002), are also very valuable efforts enlightening the road for future studies.