Consumer Online or Traditional Buying
Consumer Online or Traditional Buying
This chapter includes the ideas. The main purpose of this paper is to investigate
shoppers’ experience with traditional and online shopping. Other objectives of this paper
are to find out the kind of goods that shoppers purchase most online and to ascertain
Online shopping indicates electronic commerce to buy products or services directly from
the seller through the Internet. Internet-based or Click and Order business model has
replaced the traditional Brick and Mortar business model. More people than before are
using the web to shop for a wide variety of items, from house to shoes to airplane
tickets. Now people have multiple options to choose their products and services while
So far, online shopping has its downside also. It makes the buyers away from the
shopping experience since they are only at home. Lack of shopping experience is also
Products online are only displayed through pictures and so buyers do not have the
chance to touch and examine it in person. Another disadvantage is the time a customer
is waiting to receive the product in hand. Since it is an online shop, one has to wait
when it will be delivered. Refunding and returning of the product is a long process also
in online shopping a physical store, Clients can see the products, which assists in
facilitating purchasing decisions. Further, a physical store offers a sense of security to
the clients. Hence, when they visit your website, they can make online sales
comfortably. Clients will trust you more when they are aware you operate from a
physical place they can access. If you have an online presence, a physical store will
RELATED LITERATURE
Local literature
According to the article “What Makes E-commerce Click?” (2017) , eleven years ago RJ
David made his bedroom turned into a boardroom while he was setting up the most
successful buying and selling sites in the Philippines. He did state that he knew that the
main hindrance of e-commerce would be the trust of the consumer because Filipinos
would not be comfortable to the thought of paying someone through online and waiting
According to Svonavec (September, 2017), online shopping has proved to have many
positive advantages for consumers. Online stores are open 24 hours a day, so the issue
of a store closing before the consumer can make it on time exceptionally efficient during
the holidays; shoppers do not have to bother with the long, exasperating lines. Due to
lack of operating costs, online retailers can sell goods at lower prices so that this makes
the experience of online shopping not only faster and convenient, but it is also for
cheaper than going to the physical store. Although online shopping has advantages,
there are many downsides to doing online business. Back order goods can be prove to
be exceeding trying for shoppers, especially during the holidays, shoppers also lose the
person to person communication that online retailer cannot provide. As said by Francia
(October, 2018), Filipino shoppers also prefer inspecting the products themselves
before making a purchase, while others factored in the cost of shipping and the length
of delivery time. Research Tech Lab (RTL) noted that Filipinos more assured when they
examine the products before checkout, while being able to take the item immediately
after payment gives them peace of mind. It also recorded the enticements of online
shopping from July to September, which coincided with the sale promo of leading e-
commerce sites Lazada and Shopee. Here, the company found that 68. 61% of Filipinos
Still favour traditional shopping. The market has rapidly grown since then. According to
Eshopworld.com, there are at least 37.7 million e-commerce users in the country in
2018 from the 30. 2 million estimated in 2016. The number is expected to rise to 53.8
million by 2020. A report published in May 2018 found that despite its growing
popularity, the Philippines lags in terms of e-commerce sales in the Southeast Asian
region (Eshopworld.com).
According to Willy Kruh, he said that today’s consumer no longer goes shopping, but
shopping all the time and everywhere. In a truly global online marketplace, competition
is no longer limited to local shops during regular business hours. Consumers can easily
buy from retailer and manufactures located anywhere in the world or from those with no
Philippines” the reason why most of the people prefer shopping online especially during
consumers likes to shop through the internet. It is also stated that online shopping has
been growing for the past years, as early as the year 2015 were revealed that 9 out 10
Filipinos would prefer online shopping than actual shopping since people can save a lot
due to certain online shops who offer special deals or discounts for consumers rather
Drive More Brick-and-Mortar Business to the Philippines”, states that more global stores
would set foot on the Philippines shores as a brick-and-mortar stores in more advanced
due to its fast growing e-commerce. Because of the fast growing of e-commerce here in
the Philippines a lot of foreign countries has been seeing the Philippines as a great
option in doing brick-and-mortar business since foreign brands are positive that their
Foreign Literature
According to Vijay et.al (2017) suggests that both internal and external elements have
direct influence on website satisfaction. They highlights on why and how satisfaction
with website matters in the contribution of shopping values and website atmospherics to
behavioral outcomes by presenting its mediating role. The U.S. has the highest total
revenue from online shopping out of every country in the world. However, the United
Kingdom has the highest ecommerce spend per capita. Chinese citizens spend a higher
percentage of their salaries online than any other country. (Ecommerce Wiki, World
Atlas)
According to the article Asean Up (2018) “Insights and Trends of E-commerce” the
Philippines is a country of a large and rapidly growing market for e-commerce. With the
through internet connectivity with the use of mobile phones this would be one of the
main factors that will make the Philippines, sooner or later, the major player of e-
e-commerce that may affect the students is it delays good due to delay of shipping
dates of the seller. Second is it does not allow the consumer to experience the product
before purchasing it, this might be one of the risk factors that you might experience
because cannot test the quality of the product which makes it as a waste of time and
money. Third, anyone can set-up a store online. If anyone can easily just set-up a store
through online how would a consumer know if the store they are purchasing from is
genuine or legitimate? Lastly, the security. When purchasing online people must provide
the details of the credit card that they would be using for the transaction without being a
hundred percent sure if their credit card is safe and won’t be hacked.
RELATED STUDIES
Local Studies
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
consider the fact that students spend more time on the internet and that this factor will
likely increase the students online shopping behaviour. 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 and shoppee is one of the largest online shopping
website in Southeast Asia. It announced that it has raised $ 250 million from a group of
Verlinvest.
Endel Mata stated that Department stores and shopping malls were also affected by the
growing market share of online retailers. Since the main selling point of department
stores is their in-store experience, they are yet to fully respond to the increasing
demand for online shopping. Since a physical store exposes customers to a wide range
According to Manuel Berto the offline stores will still be the bread and butter. I think for
the most part, the experience of shopping, touching the merchandise and interacting is
still going to be the bread and butter of our business. With a retail store, the potential
customer base is limited to the surrounding area. Online, the customer base is huge.
Once you open up a retail store, your options for attracting new customers are limited.
You are confined to the retail space that you chose and changing logos, signs, shelving
In a study by Khan, A.G. (2016), it is stated that the benefit that consumer can get from
e-commerce is its convenience. Due to a consumer can just place a purchase anytime
and anywhere without the hassle of leaving one place just to go to its physical store.
But, while e-commerce is giving benefit to a lot of people, it also gives a challenge to
traditional businesses. Developing countries face many obstacles that affect the
country. When the internet cost will be low then the e-commerce will flourish easily and
will make many of the traditional business to run out of their business.
Nowadays, online shopping holds the attention of the retail market as millions of people
shop online (Sivanesan, Monisha, Babisha & Abisha, 2017). The boosts in Internet
technology allow for the expansion of shopping options beyond the traditional
methods that may be more time consuming (Akinbode, Ekpudu, Ojo & Are, 2016).
Issues with having to physically gather information with traditional shopping methods
are alleviated, and shoppers are better able to efficiently use their time (Ekwueme &
Akagwu, 2017). For instance, instead of having to physically visit different stores to
and use needed information through the Internet. Current retailing trends show a shift
from traditional store-based retailing to an increased use of the Internet (Keen, Wetzels,
Ruyter& Feinberg, 2002; Skiver & Godfrey, 2017). However, in a country like Nigeria,
shoppers still buy a lot from shops and malls thereby still making the traditional
shopping very relevant (Falode, Amubode, Adegunwa & Ogunduyile, 2016).This
modern means of shopping and the traditional method are different in terms of
opportunity, merits and demerits for buyers and sellers respectively. Shopping
today is much more than just buying, it is an experience itself. Shoppers now value
convenience and choice as well as getting value for their hard-earned money
Today’s shoppers have, not only many store choices, but they also have a wide variety
of channels to choose from (e.g. E-commerce, traditional method and so on). With the
motivates shoppers to purchase from one channel rather than another becomes
In a study by Sarkar, R. & Dr. Das, S. (2017), it is stated that there is a difference
India. Even though e-commerce is growing rapidly across the world and the projection
of further rise in this medium of shopping, it is still proven based on research conducted
in India that the majority of the consumers in their country still prefers the actual
shopping of brick and mortar shops. In the different studies, it shows that most of the
online shoppers or users of e-commerce are mostly youngsters who are fueling the
rapid growth of e-commerce in India. The advent of online shops or e-commerce has
impacted so much to the offline stores or actual shops of certain products since online
shops are offering enormous discounts to consumers that would make the actual shop
suffer and it puts a lot of pressure to the brick and mortar business. Moreover, the
Indian real estate sector is doubting the development of brick and mortar business. On
another note, even though online stores’ are rapidly growing, none of the brick and
The statistical results revealed that online customers monthly spending amount as well.
There was a statistically significant positive relationship between the amount of time and
money spent on the internet. The three most popular online shopping sites were
determined as trendyol, hepsiburada and alibaba. The products must online customers
bought were clothing, stationery products, online tickets, and electronic devices (Kilic,
Traditional shopping
Imagine going to a store, think of your favorite store in the nearest mall to where
youlive. You get into the store, slowly walking from rack to rack, checking out the
display, putting a dress over your body and trying to check out your reflection on one of
thenearby full-view mirrors that are placed all around the store. You move on to the
nextdisplay rack, and probably make another selection and do the same thing you did
earlier.This is what traditional shopping is about. Having the ability to physically choose
andcheck out what an item or product is like, would look like, and what its features are.
Thisis why some consumers still prefer the traditional type of shopping over online
shopping because for one, it allows them to meticulously check out an item. ome
consumers arenot !uite certain with their own si"e, sometimes fitting a si"e that would
normally be bigger or smaller than their actual si"e. o in retrospect, while online
shopping has not #ust numerous benefits and advantages as explained by many online
consumers as well asstudies and surveys, there are still conventional shoppers who like
Online shopping
thecustomer in much faster, easier and in economic way. Online shopping is emerging
very fast in recent years. Now a day the internet holds the attention of retail market.
Millions and millions of people shop online. 3n the other hand the purchasing of product
offline soas to examine the product and hold the possession of the product just after the
payment for the product. In this contemporary world customer's loyalty depends upon
the consistent ability to deliver quality, value and satisfaction. Some go for offline
shopping, some for online and many go for both kind of shopping. The focus of the
study is on the consumer's choice to shop on internet and at the traditional stores at the
information gaining period. However online shopping is easier for the people and less
price than the offline shopping. While making any purchase decision consumer should
know the medium to purchase whether online shopping or the offline shopping.
Consumer should decide the channel for them which can best suit to their need and
wants and which cansatisfy them. In this competitive world how consumer can decide
the particular medium for their purchase of goods is very important to understand in a
decision for goods and services. A study by investigated the criteria that Romanians
consider when choosing to place a product in the shopping cart. The results found the
following factors that influence the purchasing decision, presented in order of their
importance: the price - 80% of the Romanians choose the products according to the
price. Romanians tend to choose the cheapest products: "the lower the price of a food,
the greater the chances that the product will reach the shopping cart" (Spiridon, 2017).
We also explore if there is any difference between attributes used to evaluate product
quality in a physical store and attributes used to evaluate product quality in an online
store. The interest for the online environment is motivated by its evolution experienced
in recent years. In Romania the value of the e-commerce market in the total retail
online stores can be remarked, with 7,000 relevant online shops in terms of traffic and
orders in 2017, compared to 5000 online stores in 2016. Out of the 5,000 active online
stores in the Romanian e-commerce landscape in 2016 “approximately 200 are big and
Price
Retailers do not always offer the same deals in brick-and-mortar stores as at their online
greater than for an online store. Factors such as rent, electricity, payroll, fixtures and
shrinkage loss all contribute to the gross margin and overhead of doing business in a
State of Omnichannel Retail study, the price of a product is the most influential factor
when shoppers are determining whether or not they should head to checkout. Of the
shoppers surveyed, 87 percent indicated that the numbers after the dollar sign were
either "very" or "extremely" influential in the decision to shop and buy. Close behind
price in terms of buying influence was the cost of shipping and speed options offered
(80 percent), with discount offers (71 percent) rounding out the three most influential
Marital Status
They found that customer satisfaction differs across individuals on the basis of their
gender, marital status, age, occupancy and frequency of visiting the bank. For example,
they found that female customers tend to be less delighted and satisfied with the bank
than their male peers. In addition, the married individuals are more likely to be satisfied
factors and word of mouth communications in the banking industry. Using a mixed
method, they found that customer satisfaction towards service quality depends on
satisfaction with various banking services which tends to create positive word of mouth
during this process. Under the existing mixed findings regarding the effects of marital
current research which aims to explore the real effects of marital status (i.e., single or
Benefit
People decide to do shopping online or offline due to several reasons. When shopping
online, there are several benefits you will enjoy. Online shopping allows you to save
time and money. You can relax in your home and use your laptop to access several
shopping sites online. The ability to compare several shopping sites online make it easy
to save money. You can always locate the best deals easily when shopping online.
Here are some of the benefits you will enjoy when shopping online and offline
Conclusion
is a better buying process. Online shopping is the latest way of buying products wherein
customers do not need to go in the store to shop. One just need a technological device
like cell phone, tablet or iPad, or laptop and make some tap and click to purchase a
certain service or product. This way or buying a product is beneficial to the customers
as they said it saves time and effort. Some products in online shop are cheaper
compared to actual store in malls. Another factor being considered is that there are
more available products online unlike in stores. Due to easy access in all online shops,
Temporarily, even though online shopping is paving the way, traditional shopping is still
in the business process. As the traditional way of acquiring products, it is still patronized
Traditional shopping provides the customers the shopping ambiance. Through going
directly to store, potential buyer really experience the presence of sales staff, the
In addition, through in-store shopping, he or she can examine and test the product they
are planning to purchase. Touching the product personally is essential to the buyer to
know and try the features of a certain product. Also, customer can easily communicate
with the seller or sales agent at the store rather than online. With these, customer
relationship is enhanced.