POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1

CONSUMERS’ BUYING BEHAVIOR ON ONLINE SHOPPING: AN UTAUT AND LUM

MODEL APPROACH

Research

Presented to the Faculty of

Senior High School

Polytechnic University of the Philippines

Quezon City

In Partial Fulfillment

Practical Research I

Research Adviser

Prof. John Robert F. Isip

Researchers

Legaspi, Angelo J. Delos Reyes, Miyaka Rhinoa

Binco, Marilyn Juan, Angela Marie

De Guzman, Jubelyn Rivera, Khrizsa Mhay

Decoy, Beverly

MARCH 2018

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CHAPTER I: THE PROBLEM AND ITS SETTING

Introduction

Online shopping began when Michael Aldrich „invented‟ it. Using videotex, a two way

message service, it revolutionized businesses. We now know this as e-commerce.

Electronic commerce, also known as e-commerce, is activities that relate to the buying and

selling of goods over the internet (Webster 1993). This field of e-commerce has a steady

fast pace growth in the Philippines.

The Electronic Commerce Act (ECA) or Republic Act No. 8792 was signed into law on

14 June 2000 by President Joseph Ejercito Estrada. The law gave legal recognition to

electronic forms of data messages, documents, signatures, transactions, storage of

information. It provided penalties for access of data without consent, piracy, hacking, and

other violation. Provisions on DTI‟s authority, under Section 29 of R.A. 8792, gave the DTI

the authority to direct and supervise the promotion and development of e-commerce in the

country with relevant government agencies. This field of commerce has a steady fast pace

growth in the Philippines (Department of Trade and Industry Philippines).

Lazada is a major ecommerce presence not just in the Philippines, but across

Southeast Asia. Backed by German startup machine Rocket Internet, the site offers a wide

range of items, including fashion apparel, electronics, car accessories, and home

appliances. Lazada has agreed to allow retail giant SM Investments, the company of the

Philippines‟ richest man Henry Sy, to use the store to sell its merchandise. Lazada also

operates in Indonesia, Singapore, Malaysia, Vietnam, and Thailand, and has raised a

whopping US$686 million in total disclosed funding so far.

There are different types of e commerce which are known as the following: Business to

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Consumer (B2C), Business to Business (B2B), Consumer to Consumer (C2C), Peer to Peer

(P2P), and Mobile Commerce. B2C is where the business sells goods or services directly to

the final costumer without going through any middleman. In B2B, both buyer and seller are

business while consumers conduct transactions with other consumer without any kind of

involvement from business in C2C. P2P is used by people who share computer content like

files and software with each other like the online torrent website, kat.cr. Meanwhile, mobile

commerce is a form of commerce that uses mobile devices to conduct transaction

(Slideshare and blue media).

This activity works when a customer orders products or services online and validates it

using online payment. Then, the e-merchant also validates it and transfers the order files to

the logistic platform. The logistic platform receives and processes the orders transferred by

the e-merchant. The logistics crew prepares the orders to be delivered to the costumer

(www.ca-logistics.com).

A customer has three different payment methods known as card payment, alternatives

payment, and digital wallets. Using the card less payment the shopper purchases goods or

services using their credit or debit credit online. Second, alternative payments method

simply do not rely on cards (e.g. online bank transfers, checks, direct debits, invoices mobile

carrier billings, offline cash payments (cash on delivery and cryptocurrencies)) Third, digital

wallets allow shoppers to associate their credit cards or other alternative payment methods

to a virtual wallet (ex. PayPal). Consumers can they pay using stored money in their wallet

or instantly pay with their virtual card or alternative method (www.about-payments.com)

This research aims to define Filipino consumers‟ buying behavior on online shopping

using the Unified Theory of Acceptance and Use of Technology (UTAUT), as well as the

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Lazy User Model (LUM) of Solution Selection. The focus of this paper is to identify what

affects the buyers‟ decision making in both technology usage and in user selection.

Background of the Study

Online shopping has thus far tended to be a niche business - highly successful in

selling digital products such as shares, software and, increasingly, music and films, it has

been less successful in persuading the purchasers of "traditional" goods such as cars,

clothes, toiletries, or household appliances to forsake their physical retailers and move into

cyberspace. (Swatman & Chin 2004).

According to Oxford Dictionary, online shopping is the action or activity of buying

goods or services over the Internet. This type of shopping is a continuous and growing trend

globally. By means of the term “globally”, the Philippines had no escape with it. Websites

like Lazada, Zalora, OLX, Shop This Easy, Ayos Dito, Widget City, Keekay.ph and

Goods.ph proves online shops‟ popularity in the country.

Recent statistics from Statista stated that the revenue of the Philippine‟s e-commerce

market amounted to US$ 1,237 M (Php 62,346,500) last year. The market penetration

reached 32.2 percent. An estimated total of 33.81 M users are recorded. Meanwhile,

electronics and media serve as the largest segment with a market volume of US$543 M

(Php 27,367,900,000).

This year, estimated revenue of the country‟s e-commerce will strike to US$ 1,491 M

(Php 75,148,500) with the same largest segment as last year. The number of users is

expected to hit 37.75 M with an increase of 1.42% market penetration. By 2022, it is

predicted to continuously grow with 53.8 M users with market penetration of 46.95% and

total revenue of US$ 2,169 M (Php 109,321,000).

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With the growth of e-commerce in the country, it is important to understand the

factors why people resort to online shopping than the traditional one. People relied on the

internet on a daily basis may it be on social media platforms or the gadget application. Many

studies were produced during the past years, some of which are pertaining to information

systems usage behavior (i.e. theory of reasoned action, technology acceptance model,

theory of planned behavior, and social cognitive theory). But not only the information

systems and technology itself should be given focus but the user himself.

Statement of the Problem

This study aims to find answers on how online shopping affect people's behavior in

terms of buying. Does he/she tend to be more sensitive when it comes to checking the

quality of products? What are the key factors that motivate consumers to buy online? How

does he/she build his/her trust with the online seller? Why people prefer buying online?

Despite of dangers in online shopping, why do most people nowadays choose online

shopping over the traditional way? How does an online shopper choose where to buy

online? What are the advantages of online shopping to shoppers? In what ways does

technology contributes to online shopping? How does it help in making online shopping

more popular worldwide?

Theoretical Framework

Unified Theory of Acceptance and Use of Technology (UTAUT)

For its framework, this study uses Unified Theory of Acceptance and Use of

Technology (UTAUT), which identifies four direct determinants and four key moderators that

influence behavioral intention to use a technology. The following determinants are namely:

performance expectancy, effort expectancy, and social influence while the four key

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moderators are known as age, gender, experience and voluntariness (Venkatesh, Morris,

Davis, & Davis, 2003).

Performance expectancy is defined as the degree to which an individual believes

that using the system will help him or her to attain gains in job performance. The influence

of performance expectancy on behavioral intention will be moderated by gender and age,

such that the effect will be stronger for men and particularly for younger men (Venkatesh,

Morris, Davis, & Davis, 2003, pp. 447-450).

Figure 1: UTAUT Model

This determinant tells that people are more likely to use and accept technology as he

believes it will help improve his performance.

Effort expectancy is defined as the degree of ease associated with the use of the

system. The influence of effort expectancy on behavioral intention will be moderated by

gender, age, and experience, such that the effect will be stronger for women, particularly

younger women, and particularly at early stages of experience (Venkatesh, Morris, Davis, &

Davis, 2003, p. 450). It implies that people will have the intention to adopt the technology

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due to the idea of having to require less effort and to encounter less difficulty.

Social influence is defined as the degree to which an individual perceives that

important others believe he or she should use the new system. The influence of social

influence on behavioral intention will be moderated by gender, age, voluntariness, and

experience, such that the effect will be stronger for women, particularly older women,

particularly in mandatory settings in the early stages of experience (Venkatesh, Morris,

Davis, & Davis, 2003, pp. 451-453). Since women are likely to treat others‟ opinion as

important, it was theorized that they are more affected by social influence.

Facilitating conditions are defined as the degree to which an individual believes that

an organizational and technical infrastructure exists to support use of the system. The

influence of facilitating conditions on usage will be moderated by age and experience, such

that the effect will be stronger for older workers, particularly with increasing experience

(Venkatesh, Morris, Davis, & Davis, 2003, pp. 453-454).

The three determinants of the intention to use a new information technology are

performance expectancy, effort expectancy and social influence. A fourth construct,

facilitating conditions, is a direct determinant of the actual use, but cannot be used to predict

behavioral intention (Vermaut, 2016-2017).

The model is an effort to consolidate and unify eight earlier models on technology

system usage (theory of reasoned action, technology acceptance model, motivational

model, theory of planned behavior, a model combining the technology acceptance model

and the theory of planned behavior, model of personal computer utilization, innovation

diffusion theory, and social cognitive theory) (Tétard & Collan, 2009).

Lazy User Model (LUM) of User Selection

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Aside from UTAUT, this study also make use of the Lazy User Model (LUM) of User

Selection which states that a user has a set of possible solutions to use in fulfilling his needs

(also known as user needs). The user‟s distinguished possible solutions are limited due to

his circumstances (user state). LUM enables the user to make a choice of solution that

requires the least effort (Tétard & Collan, 2009).

The effort mentioned in this model may be pertaining to energy, money and time

wasted in a possible solution. Each individual may also have different levels of effort on the

same solution selected.

Figure 2: LUM Model

For example, a worker plans to buy Christmas gifts for his family (user need) but he

does not have enough time since his schedule is occupied by work (user state). He has

three set of possible solutions. First, he may go with his free time or day-off. Second, he

may ask other people to buy the gifts for him. Third, he can purchase the gifts online.

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Figure 3: Example Situation

Before choosing the best solution, we should analyze the given possible answers.

The worker may go with his day-off but it will be a disadvantage for him. The time to be

spent on traffic and waiting on lines are definitely longer since there is a Christmas rush.

Another possible solution is to ask others in buying the gifts. There is a chance that what the

other person buys is not what the worker wanted or what he thinks is suited to the receiver

of the gift.

In this case, the last possible solution is to purchase online. The worker does not

need to go out to beat the Christmas rush traffic and the long lines at shopping malls. He

also does not need to ask others because purchasing online lets him choose the goods

himself. He will be able to check what he wanted to buy as a gift with the least effort and is

also convenient for him.

PROPOSED THEORY USING UTAUT AND LUM

We ought to relate the online shopping industry‟s consumer behavior in the

technological aspect using UTAUT while consider the consumers (user) in LUM. Both

theories focuses on different things but this research intends to point out their direct

connection by investigating each theory thoroughly with regards to Filipino online shoppers.

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Figure 4: Proposed Theory

The direct determinants (performance expectancy, effort expectancy, social influence

and facilitating conditions) and key factors (gender, age, experience, voluntariness of use)

which was stated on UTAUT help determine the best solution out of the set of possible

solutions defined by the user need and is limited by the user state mentioned on LUM. This

proposed theory states that a person will use and accept technology if it helps him choose

the solution that requires the least effort.

In the prior example, it is also possible to say that the worker‟s set of possible

solutions was filtered with the criteria that either: a) It will not harm his performance in his job

and maybe help him perform better; b) It will take him less time and effort to avoid conflict

with his work; or c) It is a solution that was influenced by other people‟s opinion; and d)

There are facilitating conditions supporting the solution.

Scope and Limitations

This study is conducted primarily for the purpose of identifying the consumers'

behavior towards online shopping and how it affects them. It seeks to know the key factors

that motivate consumers to buy online. The main source of data was through an interview

with 15 respondents. This study is limited only on the online consumers, ages 16-43 years

old that have experienced and tried shopping online. The location of who the interviewers

had interviewed is not exceeded in the borders of Luzon. The interviews were conducted

within three days and the information for the related literatures and studies were three

months. The limitations of this study are the interviewee have limited responses and did not

have brief explanations for their answer.

Significance of the Study

The study defines the consumer's buying behavior on online shopping. The study

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talks about, what are reasons why people preferred to buy online rather than buying in

traditional way.

The benefits of studying consumer's behavior have significant bearing on marketing

and public relations decisions. Studies focusing on consumer behaviors yield important

information and insight into what consumers are thinking. With these insights, marketing and

public relations firms may enhance their particular marketing campaigns to successfully

connect with consumers. This study will not only help to understand the past but even

predict the future.

The significance of this study is for the online marketers who are obligated in terms of

online buying and online consumers. Marketers should know the services that they can offer

to meet the satisfaction of a buyer. Marketers also should know what are the factors or the

things they need to make people pursue their products.

This study aims for the benefit of entrepreneurs who are planning to start online

business. It will be very beneficial for online marketers to use this study in order for them to

have better knowledge regarding the behavior of their potential customers. By means of

knowing the factors that affecting the consumer's buying behavior towards online shopping,

the online sellers may come up with the idea of improving their services, in order to have lots

of customers.

The findings of this study will be a great benefit to the online retailers considering that

its population is increasing as the online shopper increases. As this study aims to discover

the consumers' attitude and behavior towards online shopping, retailers would have

knowledge on what to improve regarding their service and products. Furthermore, this study

would be very beneficial to the researchers as this study would provide them information

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about the online shopping if it certainly convenient or not.

This study will help online shoppers to know if they really need to buy products

online, if they really have no time to buy products in traditional way. This study will open

each and everyone‟s mind to know the true reasons behind the growing population of online

shoppers.

Purpose of the Study

The focus of this research is mainly about the Filipino consumers' buying behavior

towards online shopping and how does the impact of using technology affects their

standards with regards in choosing what medium of acquiring goods and services they will

prefer to use. Having the Unified Theory of Acceptance and Use of Technology (UTAUT)

and the Lazy User Model (LUM) of Solution Selection, as reference, the focus of this paper

is to identify the key factors that motivate consumers to shop online.

Due to the immense growing population of online shoppers in the Philippines, this

study aims to determine the influence and contribution of technology to consumers‟ buying

behavior in terms of online shopping. For example, how much does traffic jam contributes as

to why Filipinos likes to shop online nowadays. We want to discover why Filipinos prefer to

shop online than do traditional shopping knowing that there are danger they might encounter

such as privacy invasion, fraud or scam.

Aside from identifying the key factors affecting Filipinos‟ buying behavior, this study

also aims to find and analyze the connection between the models of UTAUT and LUM in

order to create an idea which focuses on the user‟s perception in online shopping by means

of using technology.

The outcome of this study may help in providing better knowledge on how the wider

influence of technology affects the consumer's behavior specifically in terms on online

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shopping. Using this study, a reader will be able to comprehend why online shoppers take

risks in acquiring goods and services through using the Internet despite of its negative

feedbacks. Lastly, through reading this research, the reader especially those who doesn‟t

have proper knowledge about e-commerce, will be able to clearly understand the concept of

online shopping and why does it seem so beneficial or convenient to its customers.

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CHAPTER II: REVIEW OF RELATED STUDIES LITERATURE

Review of Related Literature

E-commerce is becoming the „new normal‟ in Southeast Asia, as consumers in the

region take to online shopping because of the variety of goods and services available,

competitive pricing and improved delivery options make the whole process much easier.

Mobile devices such as smartphones have also brought online shopping to the palm of our

hands (Tomlinson, 2015). Convenience garnered 52 percent as the top reason why Filipinos

love to shop online. Other reasons are door-to-door delivery, affordability, and accessibility.

The increasing engagement in online shopping, coupled with payment technologies

available in the market, ensure robust growth and steady development of local e-commerce

businesses. (Visa Consumer Payments Attitude Study 2015).

The Philippines‟ e-commerce industry has about 10 million customers every day. E-

commerce makes Filipinos more efficient, so they cannot lose time to traffic, they can work

more and generate more income for the country (Balci, 2017). He cited that heavy traffic is

one of the causes as to why people turn to online shopping.

Even though not a large number of Filipinos are active cardholders, it does not

hinder the growth of the e-commerce industry in the country. Most people prefer to shop

with their gadgets mostly of which are smartphones and others to be desktops and laptops.

Due to this preference, it was predicted that soon a rise of the m-commerce (mobile

commerce) will be observed.

MasterCard produces Online Shopping Survey annually. During the 2012 study, it

was found that local deals and promo websites took over the country‟s e-commerce caused

by cautiousness. Security topped the list of concerns from respondents. It was then followed

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by speed of transaction.

According to the 2014 study, more individuals rely on mobile phones in purchasing

products online as it enable them to do it on the go. Ease (73.3 percent) and convenience

(71.9 percent) are cited the most out of the reasons why Filipinos are satisfied to shop

online.

Marketing consumers provides a means for developing one-on-one relationships with

consumers and establishing consumer databases for conducting online research. Online

business-to-consumer marketing requires marketers to understand consumers and deliver

the products and services consumer want, need, just as traditional marketing does (Peter, J.

Paul; Olson, Jerry C., 2009)

The Philippines is a thriving market for investors as the country's economic situation is

growing: the majority of the population was young workers, fervent internet users. Inspired

by this vibrant market the Filipino e-commerce scene is bubbling as more young

entrepreneurs are launching their businesses. Most of these companies are specialized in

financial technology, new technologies, health care, social development, real estate,

tourism, education, services, or on device services. Front runners stand-out of this scene

such as Zip match (real estate), Pouch (technology), Lenddo (financial technology),

Paynamics (financial technology), and Carmudi (retail), according to Euroasia Research

Experts.

78% of e-commerce sales are made in products and services. In those 78%, the

majority of sales are leisure related (52% for travel and airlines, 18% for entertainment).

Only 3% are spent for food which is really low considering that foods is the largest section of

Filipino families‟ expenditures. This shows that online food e-commerce isn't yet a very

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challenge business and could be an opportunity in the Philippines

(DigitalMarketingPhilippines.com).

The figure below shows the strength, weakness, opportunity, and threats of the

online market in the Philippines. One of the strengths included is the high internet and

mobile penetration. In this country where there is an estimated 101.1 million people, 44.2

million are active users (44%), 42 million are active social media users (42%), 114.6 million

has mobile connection (113%) and 36 million are active mobile social users (36%). (We Are

Social, DigitalMarketingPhilippines.com)

Figure 5: Online Marketing in PH

Review of Related Studies

Internet is changing the way consumers shop for goods and services and has

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rapidly evolved into a global event. Rowley Jennifer, (1998) examined that internet is

becoming a hotbed of advertising, shopping and commercial activity. Buying online has

become the third most popular internet activity following the e-mail usage and web

browsing. This can be considered as an exchange of time, effort, and money for receiving

products or services. It is the process whereby SMEs directly buy goods or services from a

seller in real-time, without an intermediary service. It represents the automation of traditional

paper-based business processes.

"Today's consumer no longer goes shopping, but is shopping, all the time and

everywhere. And in a truly global online marketplace, competition is no longer limited to

local shops during regular business hours. Consumers can easily buy from retailers and

manufacturers located anywhere in the world-or from those with no physical retail locations

at all." (Willy Kruh, Global Chair, Consumer Markets, KPMG International).

Because of the internet, becoming the center of hot issues, Hsieh et al., (2013)

stated that internet is influencing people‟s daily life more so as compared to past. People‟s

daily activities have gradually shifted from physical conditions to virtual environment. The

shopping and payment surroundings have also changed from physical store into online

stores. And online shopping got out of the box and it is taking all over worldwide. Jush and

Ling, (2012) defined online shopping as the process a customer takes to purchase a service

or product over the internet . A consumer may at his or her leisure buy from the comfort of

their own home products from an online store.

Because of the fast pace of online shopping the incredible advances of information

technology have changed the face of the business-to-business- transactions. Business

buyers are purchasing all kinds of products and services electronically. Such cyber

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purchasing gives SMEs access to new suppliers, lowers purchasing costs, and hastens

order processing and delivery (Armstrong and Kotler, 2004). Merchants need to understand

the needs, interests and expectations of their potential customers. That means knowing not

only what they want to buy, but how and where they prefer to purchase. And most

importantly, be responsive to their biggest concerns: price, selection, shipping and security.

(Zegras, 2015) Merchants can also undergo change and going with the flow of this change

to meet their expectations as sellers.

Consumers have started gathering a great deal of product information online, and

to date, the most studied online behavior among TV viewers has been searching for

advertised brands and products using search engines (e.g., Joo et al. 2014). Because of

these, it is obvious that the consumers who buy online have a behavior of what and why

they shop online. The attitude and behavior of SMEs‟ towards online buying are two main

factors that affect e-buying potential. Based on several studies, the major reasons for buying

online seem to include convenience, flexibility of opening hours, and saving money.

Subsequently, firms buy online because they can get detailed product information, delivery,

convenience, product quality and lower prices (Durmuş, Y., et.al. 2011).

Weiber and Kollmann, (1998) investigated that online technologies provide many

competitive advantages like agility, selectivity, individuality and interactivity. However, in

order to enjoy all the benefits of buying online, it requires careful management to address

the legal, security and privacy issues (Awoyelu, I.O and Awoyelu, F. 2010).

The firms‟ attitude and behavior towards buying online are known as the main

factors that affect e-buying potential. Attitudinal issues play a significant role in online buying

adoption. Their buying choices are influenced by four major psychological factors such as

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motivation, perception, learning and beliefs and attitude. Attitudes serve as the bridge

between firms‟ characteristics and their business goals and objectives. This means that,

through motivation and perception, attitudes are formed and they make decisions. Business

buyers usually face more complex buying decisions because their purchases often involve

large sums of money, complex technical and economic considerations, and interactions

among the different levels of the organization

Online shopping has been shown to provide more satisfaction to modern consumers

seeking convenience and speed ((Yu and Wu, 2007)). According to Li and Zhang‟s (2002)

taxonomy that developed based on their analysis, there are ten impacts of relevant factors

on online consumer behaviors. These ten factors could be categorized into five independent

variables (external environment, demographics, personal characteristics,

vendor/service/product characteristics, and web site quality) and five dependent variables

(attitude toward online shopping, intention to shop online, decision making, online

purchasing, and consumer satisfaction). The five independent variables are identified as

antecedents, which directly determine attitudes towards online shopping.

The consumers‟ confidence in buying certain product through online shopping

are sometimes affected by social influence that they usually gather from reading the

comments or reviews of other previous buyers. Consumers tend to vote for reviews with

high varied uncertainty, while they continue to prefer to purchase product with less product

uncertainty from reviews ( Nan et. al, 2017). Reading product reviews has a big effect in

building the online shopper's trust regarding the products that they like to purchase. Such

factors may have negative influence on consumer decision to shop online. Security

perceptions are defined as “the subjective probability” with which consumers believe that

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their private information will not be viewed, stored and manipulated during transit and

storage by inappropriate parties in a manner consistent with their confident expectations

(Pavlou, 2001).

On the other hand, some consumers still feel uncomfortable to buy online.

There are still people who prefer to purchase products in the traditional way. Perceived risk

is identified by the discomfort from consumer through the impersonal interaction and

intangible effects that come from operating online (Chen and Mort, 2007; Pavlou, 2003;

Pavlou & Gefen, 2004;Warkentin et al., 2002). 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.

Most people still choose the traditional way of shopping because they are not

used to shopping online and not comfortable with how online shopping works. These are

just few of the reasons of slow e-commerce production, and it is because of culture.

Shopping malls has been a part of the culture of Southeast Asians. It is a hindrance to slow

E-commerce acceptance. Because most people would rather see the goods first before

buying to ensure that these products fit their own respective tastes and preferences such as

color and texture (Edralin Lim, 2014). However, E-commerce continues to be a promising

opportunity, and is only starting to boom (Fredrikson, 2013; Si, 2013; Fleenor and Raven,

2002). With the emergence of the internet, Internet-based electronic commerce developed

and this environment provide individuals to reach information about products and services

easily (Lakshimi. S, 2016).

Synthesis of the Reviewed Literature and Studies

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Internet is changing the way consumers shop for goods and services and has

rapidly evolved into a global event. Internet becomes the center of hot issues, stated that

internet is influencing people‟s daily life more so as compared to past. And because of this,

business-to-business transaction has changed. Online shopping has become new normal

habit in South East Asia. Shopping online has become the third most popular internet

activity following the e-mail usage and web browsing. Most people prefer to shop online

using their gadgets mostly of which are smartphones and others to be desktops and laptops.

Because of this, it was predicted that soon a rise of the m-commerce (mobile commerce) will

be observed.

Convenience is the major factor that motivates the consumers to shop online. The

other reasons why they shop through online is because of its affordability and accessibility.

The firms‟ attitude and behavior towards buying online are known as the main factors that

affect e-buying potential.

Because of the fast pace of technology, at the same time it goes with the rising

popularity of online shopping which influence their way of buying.

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CHAPTER III: METHODOLOGY

A. Research Design

This study is a qualitative research about consumer's buying behavior on online

shopping. The researchers utilize descriptive research design since its main purpose is to

find the consumers buying behavior of online shoppers in different ages of various online

shops and what are the key factors that motivate them to shop online.

B. Tradition of inquiry and Data Generation Method

The researchers conducted an indirect interview using purposive sampling technique

wherein the selected respondents are those who can only satisfy the given qualifications in

answering all the problems that was specially created for online shoppers. The researchers

interviewed 15 online shoppers of ages 16 to 43 by means of asking a free response type of

questionnaire which is based on the purpose and statement of the problem of this research.

The questions that the researchers provided are about the respondent's opinions and

experiences in online shopping.

C. Sources of data

Aside from using a primary source of data which is conducting an interview, this study

also uses some secondary sources of data such as internet and books. The researchers

gathered information through legitimate online journal websites and a few available books

on the library which is related to the topic of this research.

D. Instrumentation

The researchers used online free response type questionnaire as a measurement

device. This instrument was used to show the key factors which motivate a consumer to buy

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online.

KEY FACTORS
ONLINE REASON AS TO
THAT
NAME AGE SHOPS YOU HOW YOU START
MOTIVATE YOU
VISIT TO SHOP ONLINE
TO BUY
Low Price, Good
Julia Nikki Lazada,
16 Influence of family Quality,
Refamonte Zalora
Convenience
Dianne Quality and
16 Lazada Influence of friends
Guerrero Quantity
Ana Marie Rey 17 Shopee Influence of friends Convenience
Ma. Rosalinda To look for a Cash on delivery,
17 Lazada
Rogacion present Urgent need
Influence of
Anghelica Elizabeth
17 Influence of friends friends, sale
Eunice Moya accessories
promotions
Shopee, TC
Sunnies, Salt Friend Price, Feedbacks
Darenth Beran 17
and Light recommendations or reviews
Clothing
Advertisements,
John Robert Lazada and Availability of
17 Friend
Arevalo other deals product
recommendations
Mharjie
17 Lazada Sale promotions Hassle free
Caraveo
Lazada, Convenience,
Janine Cruz 23 Advertisement
Beauty MNL Cash on delivery
Sale promotions,
Regine Juan 25 Shopee Influence of friends
cheaper price
Convenience,
Lazada,
Maria Ceistine By visiting the More choice,
32 Carousel,
Indoy Legaspi website Effortless,
Groupon
Cheaper Price
Lazada, Cheaper price
Gladdy Celorico 36 Advertisements
Shopee compare to malls
Discounts,
Maria Sharon O-shopping,
37 TV Advertisements Hassle-free
Apostol Lazada
delivery
Zenaida Lazada, Price, Hassle
38 TV Advertisements
Sanmillan Metrodeal free
Pablo Jr Delos 43 Lazada, Cheaper prices Price

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Reyes souq.com,
Eastbay
CHAPTER IV: RESULTS AND DISCUSSIONS
Results from the questionnaires handed to 15 respondents showed that Lazada is

the most visited online shop by Filipinos ages 16-43. Out of all the respondents, 6 answered

social influence such as friend recommendations/suggestions/influence of friends or

influence of family as a reason on how they start to shop online. Four of them answered that

it was due to advertisements while the remaining people stated sale promotions and

cheaper prices.

Respondents whose ages range from 16-25 stated convenience, low price or sale

promotions, good quality, influence of friends, feedbacks and reviews, cash on delivery,

urgent need and availability of products as their motivations in buying online. The most

common motivations out of those stated above are convenience and price.

Meanwhile, respondents whose ages range from 32-43 has convenience, price, sale

promotions (discounts), and more choices that motivates them to shop online. Compared to

the results from the other respondents (ages 16-25), there is no difference with the common

motivations these customers have. Nonetheless, motivations such as convenience, price

and sale promotions are perceived to have an impact to an online consumer‟s behavior.

We, researchers, proved that social influence, as well as advertisements, plays a big role in

honing the buying decision of a person. In terms of our study, this influence paved the way

for a number of respondents to shop online rather than the traditional way.

CHAPTER V: SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMENDATION

Summary of findings

7 out of 15 or 46.67% of the respondent ages 16-43 years old says that they build

their trust to the online shops/sellers when there are positive feedbacks or reviews of the

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other customers. 11 out of 15 respondents uses Lazada as a medium of acquiring goods

and services that they needed and most of them started online shopping due to the

influence of friends while some are influenced by TV advertisements. According to

respondent convenience, cheaper price, more options of products, hassle free, and sale

promotions are the main factors why they prefer to buy online.

Conclusions

The study successfully accomplished to find the answers on how online shopping

affects people's behavior in terms of buying. Based from all the gathered information, it is

concluded that people's frequent usage of online shopping leads to the changes of its

standards in terms of acquiring goods and services that they needed. Consumers tend to be

wiser as they try to look first all the possible opportunity cost that they may encounter if they

shopped in a traditional way, such as time, effort, and productivity. The behavior of online

shoppers when it comes to building trust with the shop or seller is based on what they see

on the reviews. Even though there are issues about defects or failed products from online

shops, most shoppers prefer to buy online because of convenience, the key factor that has

the biggest impact to the consumers and next is the cheaper price compare to physical

stores. The advantages of online shopping to online shoppers are the time consumed in

shopping online is less than the time the shoppers shop in tradition. It is stated in the

interviews that online shopping is favorable to them because of the sale promotions and

cheaper prices than the original, it is said to be hassle free because of the Cash on Delivery

(COD) payment mode and the product or service will be delivered to the customer. Today‟s

technology contributes to online shopping in a way that technology is the medium of online

shopping from consumer to buyer. Technology is a choice for the most of the shoppers

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because it offers convenience in time and offers the desired place of the buyers.

Technology‟s fast pace and fast spreading throughout worldwide it helps online shopping

more popular. People are also encouraged to shop online because of the advertisement

popping in every side of the web. Technology helps online shopping more popular because

some are also encouraged to sell online.

Recommendation

The researchers recommend this study especially to the future researchers who

want to study more about the consumers' buying behavior on online shopping. The future

researchers can improve this study by gathering present information that can be used to

make new and more informative research about the said topic. Having a wider and more

informative research will help the readers gain deeper knowledge about online shopping and

to become open-minded when it comes to this topic. The researchers can discuss

supplementary factors affect the consumer‟s behavior for them to shop online. It would also

be better if they would hear the side of the online marketers regarding this topic for them to

gain more information for their study.

Researchers can also indicate to their future study, the latest situations that happen

to the online shopping industry or even to those consumers who shop online. The

researchers also recommend this study to all entrepreneurs who are planning to start online

business to read this study for further information about the consumers' behavior to be able

for them to know the services or products they can offer to meet the satisfaction of

customer. Because of this, their business may be the number one in the market in the near

future. The researcher also recommends to them to do some deeper research about online

shopping in order for them to know and learn more about this topic, since the researchers

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only cover about consumer‟s behavior towards online shopping. Entrepreneur should know

the circuitous system of online shopping to familiarize on it. Therefore, they can handle their

business much better and run it smoothly.

The researchers would also recommend this study to the online shoppers as it

would make them more knowledgeable and have an edge to those online shoppers who

only have little knowledge about this topic. Having this study would be a great advantage to

them for it would help them to know the things they should consider when buying products

online. Also, to help prevent themselves by the risks and dangers that it might bring to them

knowing that diving in online shopping can be dangerous at some point. By having the

people read this study, the researchers are expecting a more open-minded and

knowledgeable shoppers so that online shopping industry would develop faster in the future.

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DEFINITION OF TERMS
Cryptocurrency

a digital currency in which encryption techniques are used to regulate the generation
of units of currency and verify the transfer of funds, operating independently of a
central bank.
Demographics

statistical data relating to the population and particular groups within it.
E-commerce

E-commerce (electronic commerce or EC) is the buying and selling of goods and
services over the internet.
Effort expectancy

is defined as the degree of ease associated with the use of the system.
E- merchant

A company or individual who sells a service or goods. An ecommerce merchant is

someone who sells exclusively over the Internet.
Logistic crew

group of people who work on and operate complex operation involving many people,
facilities, or supplies.
Logistic platform

defined area within which all activities relating to transport, logistics and the
distribution of goods, both for national and international transit, are carried out by
various operators. It is run by a single body, either public or private.
M-commerce

M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless handheld devices such as cellular telephone and personal digital
assistants (PDAs).
Performance expectancy

defined as the degree to which an individual believes that using the system will help
him or her to attain gains in job performance.
Taxonomy

the branch of science concerned with classification, especially of organisms;

systematics.
Videotex

an electronic information system such as teletext or viewdata.

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