CHRIST THE KING COLLEGE DE MARANDING, Inc.

Maranding, Lala, CHRIST THE KING COLLEGE DE MARANDING, Inc.

Maranding, Lala, Lanao del Norte
[email protected]
S.Y. 2021-2022

Consumer Buying Behavior

(Online Shopping Philippines)
An Research Paper presented to

Mr. Marjun Ligan MBA, Faculty of College of Business Administration

Christ the King College de Maranding, Inc.

As Partial Fulfillment of the Requirement for

 Second Year Business Administration Students

First Semester S.Y 2020-2021

Written by:
 Emeily C. Generalao

ABSTRACT
This paper discusses what are the Filipino consumers’ attitude towards online

shopping and seeks to understand the factors affecting the decisions of these

consumers on why they chose to shop online. It will also aim to delve into both the

benefits and the problems of using online shopping to the consumers. This paper will

recommend a course of action that can be taken to improve strategies in online

shopping. Thus, by following this plan of action, this would be a great help to the

marketers, entrepreneurs and businessmen to compete in the market and to make

their products more compatible to the consumers’ needs and wants.

 Chapter 1
Introduction
The idea of shopping from their own home has been around for ages, it could be from
commercials to catalogs. Since several technologies are becoming more advanced,
internet or online shopping is becoming a thing. Most people rely upon the accessibility
of the Internet which is an obvious phenomenon that is happening in the world
nowadays and because of the increasing use of Internet, Philippines provided an
emerging opportunity for online shopping. Online shopping has encountered a rapid
development during the recent years because of its many advantages for both the
consumers and the sellers, such as convenience for the consumers, saves their time and
effort rather than being dependent on store visits, increasing market area for the sellers
and there are a wide range variety of products to choose from. Because of these
advantages, an ever increasing number of individuals say that they chose online
shopping rather than physical shopping nowadays. But there are also risks associated
with online shopping. The consumes’ behavior towards online shopping alludes to their
psychological state when buying over the Internet. The purpose of this paper is to
understand behavior of Filipino consumers towards online shopping and the factors that
influence them to shop online. Whether or not those factors can also affect the
marketers, entrepreneurs and businessmen about their strategies towards online
marketing are also considered in this paper.

Discussion

According to the study of Kuester (2012), he considered the behavior of consumer as

the study of an individual or group and the procedures that they use to pick, secure and
discard commodities to fulfill needs and the influence these processes have on the
customers and the community. It balances the components from sociology, psychology,
management and economics. Likewise, Chisnall (1994) mentioned that the needs and
intentions of humans are inseparably connected and their connection is so extremely
close that it is difficult to determine their distinction. For instance, a person may buy
new garments to ensure them against the chilly climate yet the hidden need might be to
keep up with the most stylish trend pattern.
The Europeans, Americans and Asians’ consumer behavior have become global gauges
these days regarding its purchasing propensities and way of life. On the other hand, the
Filipinos really have a one of a kind purchasing propensities which has become a culture
that can be considered its own. Generally, products that are marked down or products
that have discounts are what Filipino consumers love to purchase. These buying habits
are common to Filipinos around the world. Filipino consumers are referred to for its one
of a kind purchasing routine. An unmistakable sign of that is the Filipino consumers'
sharp information on the commodities or services that are being offered (Castillo, 2018).

Different factors that influence the Filipino consumers to use online shopping.
According to Rani (2014), there are various procedures or processes that are associated
with buyers’ behavior. At the outset, the buyer or consumer attempts to discover what
products he might want to expend and at that point, he picks just those products that
has essential use to him. The consumer estimates his money which he can spend
choosing. Lastly, the consumer separates the general expenses of the items and takes
the choice about the items he should be buying. Meanwhile, cultural, personal, social
and psychological are four factors that influence buyers’ or consumers’ behavior.
First, cultural factor is important when trying to understanding the particular needs and
habits of a person. Basically, the part of every society and is the significant reason for
one’s needs and behavior is his/her culture. The culture’s impact on purchasing conduct
varies from every country. According to Rani (2014), all through an individual’s
existence, there are a lot of people who can influence him like his family, his friends, his
society who will teach him values and preferences in his life.
A person’s groups, family, status and role are examples of social factors. This clarifies
the outside impacts of others on one’s buying decisions either directly or indirectly. This
factor is among the most influencing factors affecting a consumers’ behavior essentially.
An example of this is reference groups which are characterized as those people that
might give direct advice to an individual about his behavior, way of life, or even his
disposition as a consumer. The impression that the individual has of himself as well as
his behavior also is an impact of reference groups (Rani, 2014).
Variables such as a person’s age, work, economic circumstances, identity, habits and
self-concept are part of personal factors. According to Kotler and Armstrong (2010),
consumers' behavior in purchasing of products change depending upon age or their
lifestyle. An example of age related variables are taste in food, preferences in clothing,
and leisure.
There are four classifications in psychological factors which are observation, learning,
motivation and beliefs and attitudes. So for instance, when a consumer who has
different sort of needs like hunger or thirst and that particular need can be aroused
when alters a motive and this motive is essentially a need that would cause an individual
to look for fulfillment (Rani, 2014).
Factors such as cultural, social, personal and psychological strongly influence
consumers’ behavior. These factors that influence consumers to buy online can cause to
build up product preferences. Understanding the impact of these factors is essential so
that strategies in marketing can be improved to appeal to the preferences of the
consumers.

Advantages of considering the different factors that influence Filipino

consumers to shop online to the marketers, entrepreneurs and businessmen.
Voicu (2013) stated in his research that information is one of the most significant
resources that an organization or business must have. Knowing and considering the
various components that impact buyers to shop online and their preferences can profit
a great deal to the online marketers, entrepreneurs and businessmen. Some
information is covered up in the brain of the consumer, as in the case of information
about buyer's behavior. In spite of the fact that it appears to be a concept difficult to
grasp, it was demonstrated that consumer behavior can be viably measured and their
research can give a more profound comprehension of the decisions that buyers make
when deciding to select a product against another and when choosing to proceed in
time the relationship with one supplier.
The elements that influence shopping behavior of buyers online is one of the factors
that should be considered when distinguishing the strong and weak points of the
competitors. By estimating these when completing a publicizing effort, the transmitter
may assess its success or failure. This may likewise establish the topic of a review
providing data which can be a significant method for expanding the sales volume up to
the maximum limits of market possibilities. Marketers, entrepreneurs, and businessmen
who continually improve techniques based on these factors accomplish an inevitable
increase in profitability and market share (Voicu, 2013).
 Chapter 2
Review of Related Literature
The hottest e- commerce markets in Southeast Asia, and the Philippines comes right at
the

top of the list. According to the study by Ken Research (2014), the Philippines’ e

commerce market can expect a stupendous compound annual growth rate of 101.4
percent from 2013 until2018, thanks to rising internet and social media adoption. (Ken
Research, 2014)Southeast Asia, including the Philippines has become a virtual gold mine
for online shopping. Proof of that is that many online shopping malls are now on
expansion mode. Lazada is one of the largest online shopping website in Southeast Asia.
It announced that it has raised $ 250million from a group of investors including Tesco
PLC, Access Industries Investment ABKinnevik and Verlinvest. According to Tesco, as
Southeast Asia’s 600 million consumers begin to use smart phone technology to access
retailers online. Tesco, March 2014)Based on the study conducted by Lucero, et.al
(September 2016), he determined whether there is a significant relationship between
consumer perception and purchase behavior on online shopping among students. It has
been found out that the respondent perceptions and their purchase behavior on online
shopping are both high. To sustain their high perception on online shopping, it is
suggested that web developers should incorporate features on their websites regarding
convenience, security, benefits and leisure. It is important for online marketers,
entrepreneurs, and business men to consider the fact that students spend more time on
the internet and that this factor will likely increase the students online shopping
behavior.

Factors Impacting Consumer Buyer Behavior

Filipino consumers behave in a certain manner when it comes to purchasing products in

the market. The top reasons that influence the purchases of Filipino consumers include
brand loyalty, media exposure, and the value of money.  Online shopping has also
emerged as a new trend among shoppers. Shopping enjoyment. The findings present
that shopping enjoyment has a significant influence to the consumers’ impulse buying
behavior. The result was somehow similar with the study of (Crawford & Melewar,
2003) which states that buyers who enjoy shopping engage more in impulsive
purchases. In-store atmosphere. The findings show that in-store atmosphere does not
significantly influence the consumers’ impulse buying behavior. Still, the study suggests
that store atmosphere somehow influences impulsive buying behavior in such way that
pleasant store atmosphere stimulates impulsive buying of consumers. In-store
browsing. The result regarding instore browsing indicated that this sub-factor has no
significant influence to the impulse buying behavior. Salesperson. The findings reveal
that salesperson has no significant influence to impulse buying behavior. This result is in
contrast with the findings of Bastin and Yu (2010), prompting that the friendliness and
dedicated service of staffs and salespersons may have positive effect on consumers’
emotion. Promotional approach. The findings show that promotional approach has a
significant influence to impulse buying behavior. The finding of this study regarding
promotional approach was supported by the study of Faber and Young (2000) which
revealed that people are buying more.

Marketing mix and consumer behavior

Consumer Behavior examines the relationship between consumers and culture, and the
impact of current trends on consumer behavior. It explores the different ways in which
consumers around the world respond to marketing strategies, examining the
interpretation of new stimuli using existing knowledge, and how both new and
remembered knowledge combine to influence purchasing behavior. Finally, there is a
detailed examination of the influence of ethnicity, religion, class, age and gender on
consumers' actions and the importance of understanding the challenges and diversity of
a global marketplace.
Factors Impacting Consumer Buyer Behavior

Filipino consumers behave in a certain manner when it comes to purchasing products in

the market. The top reasons that influence the purchases of Filipino consumers include
brand loyalty, media exposure, and the value of money.  Online shopping has also
emerged as a new trend among shoppers. Shopping enjoyment. The findings present
that shopping enjoyment has a significant influence to the consumers’ impulse buying
behavior. The result was somehow similar with the study of (Crawford & Melewar,
2003) which states that buyers who enjoy shopping engage more in impulsive
purchases. In-store atmosphere. The findings show that in-store atmosphere does not
significantly influence the consumers’ impulse buying behavior. Still, the study suggests
that store atmosphere somehow influences impulsive buying behavior in such way that
pleasant store atmosphere stimulates impulsive buying of consumers. In-store
browsing. The result regarding instore browsing indicated that this sub-factor has no
significant influence to the impulse buying behavior. Salesperson. The findings reveal
that salesperson has no significant influence to impulse buying behavior. This result is in
contrast with the findings of Bastin and Yu (2010), prompting that the friendliness and
dedicated service of staffs and salespersons may have positive effect on consumers’
emotion. Promotional approach. The findings show that promotional approach has a
significant influence to impulse buying behavior. The finding of this study regarding
promotional approach was supported by the study of Faber and Youn (2000) which
revealed that people are buying more.

Marketing mix and consumer behavior

Consumer Behavior examines the relationship between consumers and culture, and the
impact of current trends on consumer behavior. It explores the different ways in which
consumers around the world respond to marketing strategies, examining the
interpretation of new stimuli using existing knowledge, and how both new and
remembered knowledge combine to influence purchasing behavior. Finally, there is a
detailed examination of the influence of ethnicity, religion, class, age and gender on
consumers' actions and the importance of understanding the challenges and diversity of
a global marketplace.
 Chapter 3
CONCLUSION, FINDINGS AND
RECOMMENDATION

More and more people say that they prefer online shopping because of the

many advantages such as convenience, time-saving, and product variety. The behavior

of Filipino consumers towards online shopping and the factors that influence them to

shop online affects the marketers, entrepreneurs and businessmen about their

strategies towards online marketing. Filipino consumers have a unique buying routine

as a way of life. There are different factors such as personal, social, cultural and

psychological which can greatly affect a consumers’ behavior. These factors that greatly

influence consumers to buy online can cause to build up the product preferences of

consumers which can help the marketers, entrepreneurs and businessmen to lead to

an inevitable increase in market share and profitability. Therefore, having knowledge

about the consumers’ behavior and factors affecting them are beneficial to the

marketers, entrepreneurs and businessmen in the online shopping world.

References
Chisnall, Peter M. (1994), Consumer Behavior, 3rd ed., McGraw Hill Book Company:
London, pp
168-170.Retrieved from
https://www.mheducation.com/highered/category.10366.consumer-behavior.html?
page=1&sortby=relevance&order=desc&bu=he
Kotler, P. & Armstrong, G. 2009. Principles of Marketing. Pearson Education. Thirteenth
Edition.
New Jersey. Retrieved from https://www.pearson.com/us/higher-
education/product/Kotler-Principles-of-Marketing-13th-Edition/9780136079415.html
Kuester. (2012). Strategic Marketing & Marketing in Specific Industry Contexts,
University of
Mannheim,110. Retrived from http://www.sciepub.com/reference/205492

Articles
Castillo, F. G. (2018). Consumer Buying Behavior: The Multicultural Influence in the
Philippines.
The International Journal of Business Management and Technology, 2(2), 71–75.
Retrieved from http://www.theijbmt.com/archive/0920/844974745.pdf
Rani, P. (2014). “Factors influencing consumer behavior “ Institute of Law Kurukshetra ,
University Kurukshetra , India Int.J.Curr.Res.Aca.Rev.2014;2(9):52-61. Retrieved from
http://www.ijcrar.com/vol-2-9/Pinki%20Rani.pdf
Voicu, M. C. (2013). Characteristics of the Consumer Preferences Research Process.
Global
Economic Observer, 1(1), 126–1 Retrieved from
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