CHAPTER I

INTRODUCTION

BACKGROUND OF THE STUDY

According to Comklin & Trudeau, (2000) Shopping is a process,

like the decision making model, comprising of a series of issues

typically linked together. There are a number of elements of the

shopping process which include: need, information gathering/receiving,

trial, evaluation, selection, transaction, delivery and return. An

individual’s choice of the mode of shopping plays a significant role

in each of the elements of the shopping process. Online shopping has

grown tremendously due to a number of benefits that users perceive the

mode of shopping to have. Among them is the flexibility of purchase

where the customer is able to find information as well as make a

purchase any time anywhere. Another benefit is the cost benefit and

this comes in because online products are perceived to be a lot

cheaper than physical store products (Forsythe et. al 2006).

In the typical way of online shopping when the consumer need some

product or service they go through the internet and browse or search

the things they need and their Information. The increase in technology

provides good opportunities to the seller to reach the customer in

much faster, easier and in economic way. Online shopping is emerging

very fast (Chiang et. al 2001). Many customers go for purchasing

offline so as to examine the product and hold the possession of the

product just after the payment for the product. In this contemporary

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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. (Lenvin et. al

2003) found that being able to personally encounter prior to purchase

is an underlying factor of the preference for an traditional shopping

method for products such as clothing. However, textile and clothing

have found the biggest acceptance in online retail and no branch of

the industry is affected by the internet as retail sales have.

(Heinemann et.al 2010). (Rick L. Andrews Ours et.al 2004), examined

behavioural differences between consumers attracted to online shopping

and traditional supermarket shopping using actual choice data from an

online supermarket and traditional scanner panel data.

The consumers in today’s era have not only many stores choice,

but they also have a wide variety of channels to choose from. With the

start of numerous channels and a continuous increase in the

competition among channels, the understanding of what incites

consumers to purchase from one channel rather than another becomes

progressively important channel design and management. In recent

years, studies distinguished another non store retail format Internet.

Recent studies investigated why consumers shop through stores,

catalogs, or the Internet (Black et al.2002). Many customers go for

purchasing offline so as 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

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offline shopping, some for online and many go for both kind of

shopping.

STATEMENT OF THE PROBLEM

The research aims to answer the following questions:

1. What is the preferred buying method of senior high school

students?

2. What are the advantages and disadvantages of online buying?

3. What are the advantages and disadvantages of traditional

buying?

SIGNIFICANCE OF THE STUDY

To the community, this study will also be beneficial to them just

like to the people. And after learning the difference between

traditional and online buying they will conduct and share their

thoughts and experience from one to another.

To the market, this study will also help to them to know those

preferences of the consumer and selling too much.

To the consumer, this study will be a great help to them in a way

that they can be aware in ordering or buying something because

nowadays there are a lot of scam online. And they will also learn the

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difference between traditional buying and online buying. They can be

more conscious and being a conscious buyer will be great because they

can be more censorious in buying.

To the future researchers, this study will help them to

understand the difference between the traditional and online buying

they can use this study as a reference for their research.

SCOPE AND DELIMITATIONS

The study only focuses on what they prefer. The study limits its

coverage on one hundred fifty (150) Senior high School students of

Philippine College of Criminology (PCCR) on the present school year,

2018-2019. The one hundred (100) respondents are grade 12 students,

fifty (50) students of HUMSS strand and another fifty (50) students

also for the ABM strand and the other 50 is for grade 11 students,

twenty-five (25) students of HUMSS strand and twenty-five (25)

students of ABM strand also. The study includes senior high school

student’s experiences and even their satisfaction. It also includes

their basic information. The researchers use purposive sampling as

their sampling technique and quantitative research.

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DEFINITION OF TERMS

The following terms are operational/ functional defined to the

understanding of the readers of the study.

Consumer’s Behavior- is the study of how individual customers,

groups or organizations select, buy, use, and dispose ideas, goods,

and services to satisfy their needs and wants. It refers to the

actions of the consumers in the marketplace and the underlying motives

for those actions.

Flexibility- the quality of bending easily without breaking.

Online Purchasing- is a form of electronic commerce which allows

consumers to directly buy goods or services from a seller over the

Internet using a web browser. ... Online stores typically enable

shoppers to use "search" features to find specific models, brands or

items.

Satisfaction- fulfillment of one's wishes, expectations, or needs,

or the pleasure derived from this.

Traditional Purchasing- considered to be a key strategic function

which is used to control costs and increase output.

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 CHAPTER II

REVIEW AND RELATED LITERATURE

According to the ABS-CBN news last (August 29, 2018), the

Online Selling business relies heavily on trust between the

buyer and the seller. There are times, however when a buyer

reserves certain item, and backs out the last minute. In the

worst cares, buyers might pull of the sale when just the seller

is ready on their way to agreed meeting place.

According to the article of Riley et.al (2009) addressed to

know why the people and from where they get influence to

purchase grocery from online shopping. This research aims to

know the role of all the factors which are situational in the

process of adaption of grocery shopping from online. Qualitative

research is carried out by the researcher which helps the

researcher to gain the knowledge about the depth of the consumer

of grocery product and their behavior. Researcher also includes

the quantitative method in his research to find the factors

which influence them to purchase grocery from online shopping.

By merging both the qualitative and quantitative study the

researchers find the importance of the specific type of

institution. Many shopper are found that they starts

discontinuing the online shopping of grocery once there initial

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point of shopping of grocery created a problem for them they

stop doing online shopping.

An article of Hahn and Kim (2009) examined the influence of

consumer trust and perceived internet confidence on consumer

apparel shopping intention through internet or the online

retailer operated by a multi channel retailer. A total of 261

students in a large US Midwestern University participated in the

paper based survey and provided usable responses. Structural

equation based modelling was used to test hypothesis. They found

that the consumer trust in an online retailer was a significant

predictor of perceived internet confidence and search intention

for product information through internet retailer. Search

intention for product information through the online store and

perceived internet confidence were significant and strong

predictors of consumer’s behavioural intention towards the

online shopping. The findings of this study suggest that

retailer of offers an internet channels as part of multi-

channels retail strategy and provide consistent service

throughout their various channels.

TRADITIONAL BUYING

According to the study of Arra Francia (2018) FILIPINO consumers

still prefer shopping in brick and mortar stores over online

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platforms, favoring the physical appeal of products despite the

convenience of online purchases, according to a study by digital

research and consulting firm, Research and Tech Lab (RTL). RTL

recorded the sentiments of online shoppers 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

favor traditional shopping. “The data revealed that although shoppers

are drawn to the appeal of purchasing online for reasons such as no

checkout queues, 24/7 access to stores, and available reviews for

products, many are still wary of site legitimacy,” RTL said in a

statement. 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. RTL noted that Filipinos

feel more assured when they examine the products before checkout,

while being able to take the item immediately after payment gives them

peace of mind. The research firm’s study also revealed that majority

of shoppers who use both online and traditional platforms are aged 18

to 31 years. While preferring to see the products for themselves,

shoppers were found to be searching for products online before buying

them in physical stores. “Nowadays technology has changed the

shopper’s journey by blurring lines and creating new stages where

buyers can easily switch channels from online to offline — searching

online to buy offline and vice versa. The use of more than one channel

has given Filipino buyers more opportunities that go beyond the

traditional,” RTL said.

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 According to the study of Li and Zhang (2002) examined the

representative existing literature on consumer online shopping

attitudes and behavior based on an analytical literature review. In

doing so, this study attempts to provide a comprehensive picture of

the status of this subfield and point out limitations and areas for

future research. They decided to restrict their search of research

articles to the period of January 1998 to February 2002. The other two

criteria for selection are the articles are empirical in nature, and

the articles measure at least one of the identified factors in our

taxonomy they searched three primary IS conference proceedings

volumes: International Conference on Information Systems (ICIS),

Americas Conference on Information Systems (AMCIS), and Hawaii

International Conference on Systems Science (HICSS). They also checked

the reference sections of the selected articles to identify and

include additional prominent articles in this area. Three out of the

five dependent variables (consumer attitudes, intentions, and

purchasing behavior) and three out of the five independent variables

(personal characteristics, vendor/service/product characteristics,

website quality) receive the most attention. This seems to constitute

the main stream of research in this area. It is found that personal

characteristics, vender/service/product characteristics, and website

quality significantly affect online shopping attitudes, intention, and

behavior. The direct implication of these findings is that targeting

more appropriate consumer groups, improving product and/or service

quality, and improving website quality can positively influence

consumer attitudes and behavior, possibly leading to increased 13

9
frequency of early purchase and replication purchases on the part of

customers. This methodological matter wants to be addressed in

upcoming research so that a validated instrument can be developed for

evaluating consumer online shopping approaches and behavior.

In the study of Chaing and Dholakia (2014) carried out a study in

which they examined the purpose the customer to purchase goods online

during their shopping. Mainly there are three variable in their study

those affects the consumer to purchase online or to go offline. Those

are the accessibility features of the shopping sites, the type of the

products and their characteristic, and the actual price of the

product. The study revealed that the accessibility and the convenience

of the shopping sites create the intention in the customer to purchase

or not. When there are difficulty faced by a consumer to purchase

online then the customer switch to the offline shopping for the

purchase behavior and the consumer face difficulty in offline

purchasing then they go to the online purchasing. After relating both

the medium of shopping the consumer said that the online shopping is

more convenient for them and gives more satisfaction which inspires

the consumer to purchase online in the internet.

According to Iyer and Eastmen (2014) found that the population of

senior who are more literate, more knowledgeable and who are more

aware of the technology and those who have a positive behavior towards

online shopping and internet are more into online shopping. But the

population of senior who are less aware of the internet and the

shopping sites are less involved in the shopping sites because they do

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not have a positive attitude towards online shopping rather they are

much more interested in offline shopping and the seniors who are more

involved in the internet uses more online sites for purchasing the

goods over the internet. The senior which have more knowledge about

the internet and the shopping sites they compares both the shopping

i.e. online and offline shopping for their purchasing of goods.

However their knowledge and the use of internet by them has no

connection with their age and their satisfaction level while

purchasing online.

According to Danaher et.al (2003) focused on the loyalty of the

100 brands over the online shopping and offline shopping of 19 product

of the grocery. They compared the grocery items of both the shopping

with starting model which is a new segmented of Dirichlet model, this

model has very dominant features which gives the exact classes for the

brand choice and also gives the 14 real model for the purchasing

behavior. The outcome of the study revealed that the reality of the

high brands by the high market shares bought the online shopping much

greater than the expected. But in case of the small share brand it is

just reversed. However in the traditional shopping the expectations

and the observations is not at all links to the brand share.

According to the study of Tabatabaei (2009) has explored the

opinion of the consumer who are purchasing online and the consumer who

are purchasing from offline market. The objective is to know why the

traditional customer chooses to shop online and what are the factors

is influence then to purchase online and what are the factor for them

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to not use the sites for shopping. He has done a survey of 264

respondents in a small mall and then those data were analyzed by him.

All the customer of this study is literate and has knowledge on

computer and internet. The survey consists some of the question like

demographic profile, computer knowledge and the knowledge over the

internet. The outcome of the study was that the consumers of online

shopping use to shop online more than one time in a month and the

consumer of offline shopping shop one to five times in a year from

shopping sites.

According to Andrew and Currim (2000) focused on expected

differences in choice, behavior of consumer for two products

categories, statistically significant difference are found between

consumers attracted to shopping online versus traditional super market

with regards to parameters describing the choice process. The study

found that correlated to traditional supermarket consumers, online

shopping are less price sensitive, prefer larger size to smaller

sizes, have stronger size faithfulness. The consumer does more

broadcasting choice set effects.

ONLINE BUYING

In the study of Chaing and Roy (2003) focused on the consumer

choice to shop on the internet and at the physical stores during the

information acquisition period. A convenience sample of 34 students

enrolled in undergraduate marketing class to select the product for

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testing, 56 products were developed based on the popularity of online

shopping. The result shows that the consumer perceives shopping

offline as inconvenient, online shopping intention was expected to be

greater for search products than experience product.

According to Soopramanien and Robertson (2007) conducted a study

in UK on acceptance and practice of online shopping. Their exploration

shows that the online consumers choose different course of action

based on the apparent beliefs. They found that, how socio demographic

variables, attitude and beliefs towards internet shopping effect on

the both decision to practice and use of online shopping channels.

They categorized online buying behavior as the one who purchase from

online sites and the one who only browse online sites and purchase

from the store, and third those who do not buy online. The study do

not covered the buyers who choose products in stores and buy online.

In the study of Selvakumar (2014) concentrated on consumer’s

perception of the product sold online and the issues considered

important to online shopping. This study was conducted among the

online shoppers at Coimbatore which is in Tamil Nadu state. It is to

analyze the impact of consumer opinion and the attitude. Questionnaire

was made to collect the data from the population; these questionnaires

were given to college going students. The total sample size is 150

respondents. The finding of this study shows that improvement and

accessibility influence the customer’s intention to shop online.

According to Hausman and Siekpe (2009) analyzed an practical

study in US regarding the e effect of web interface features on

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consumer online purchase intention. E-commerce system is different

from traditional information system. It has both features of

information system and marketing channels. It contains machine and

human element. An empirica l finding shows that to know the motivation

factors for online shopper, cognitive and psychological factors do

have meanings. The study finds both human and computer factors are

necessary for antecedent for online shopping.

In the study of Johnson et.al (1999) discussed to identify the

factors influencing online shopping. This paper seeks to identify web

consumer’s demographic attitude toward shopping and reasons of online

buying behavior. This survey asked member of WVTM (Wharton virtual

test market) whether they have purchased anything online. This study

conclude that the consumer shop online or use online facilities to

save time. The result of these study suggest several suggestions for

the design of online shopping environment such as shopping site should

make it more suitable to buy standard to repeat purchase items , they

should provide the information needed to make a purchase decision and

purchasing process should be easy for the consumer. This paper

conclude that the consumer appears to value the web time saving over

its cost saving. The consumer attitude may change over time,

accessibility rather than cost saving. The results show that the

people who spend more money online have a weirder 16 lifestyle are on

the net more and receives more emails compared to the other email

users and internet users.

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 CHAPTER III

METHODOLOGY

RESEARCH DESIGN

The researcher used Quantitative Research Design which is having

or conducting a survey, its focuses on experience and insights of

every online and offline shopper in collecting statistically accrued

data. The primary aim of the survey is to know and determine the

satisfaction and experience on Online Shopping. Under the Quantitative

research we also use Descriptive Research. Descriptive Research

studies are those, which are concerned with describing the

characteristics of particular individual or group. The studies

concerned with specific prediction with the narration of facts and

characteristics concerning individual group or situation are example

of descriptive research sampling.

SAMPLE AND SAMPLING TECHNIQUE

In the study, the sampling technique that the researcher used was

purposive sampling. The researchers selected their sample from the

population of Philippine College of Criminology Senior High School.

The location was chosen because this is the easiest school to get

permission for the survey process and this is the nearest school from

the researcher. The participants are limited according to the need and

purpose of the study. The researchers’ purpose to know the reasons and

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satisfaction in online shopping, therefore the researchers chose the

user of online shopping as the participants.

RESEARCH LOCALE

The researcher choose Philippine College of Criminology because

there are student who experience through buying online and offline

and it will easy to conduct a survey because it's near to them.

RESEARCH INSTRUMENTS

Questionnaire was used as the main instrument of the study to

determine the satisfaction of every student to online shopping. The

questionnaire was prepared by the researchers themselves after

intensive reading from the internet.

The questionnaire has 2 parts. Part 1 contained the profile of

the respondents in terms of ages, gender and name. Part 2 focused on

what online sites they use for online shopping, what are the common

products they usually purchase, how long does it take before receiving

the product, how much do they spend on online shopping, how satisfied

are they how often they use online shopping and the reasons why they

shop online.

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