SATISFACTION ON ONLINE SHOPPING TRANSACTION AMONG CITIZENS

IN DAVAO CITY

Fatima Jean Bueno, Axl Mie Campomanes, Patricia Diaz, Carla May Dodo,
Diane Miedes, Guilia Hanella Minoza, Rhiz Shanen Navacilla,
Dasshelle Omas-as, Charlyn Pasoluhan, Eliza Jackiellyne Sagpang,
Alyssa Samosino and Mary Angel Serna

INTRODUCTION
Background of the Study

Coping in a fast-paced society in the aspect of technological advancement

requires online shopping sites to utilize various marketing strategies. The online
marketplace continues to develop through employing flash deals, vouchers, and
promo codes to entice consumers to avail. However, it has is observed that the
online revolution has overlooked instances on the different aspects that may
affect customer satisfaction. Consumers found that frequently, products availed
do not meet their expectations set from the description and prices. More often
than not, the stance of the users draws that the quality of the transaction is
deficient if it encounters a delay in delivery or defects in product quality. This
discrepancy might dismay clients and result in consumer dissatisfaction. With
these observations, the researchers see a research gap as to what aspects of an
online shopping site will focus on improvement in customer satisfaction.

Reported in India, Vishnoi (2019) argues that the absurd rate of constant
growth in e-commerce emerged market crowds of small and big competitors in
Asian countries, and necessitated these online marketplaces to eradicate
circumstances that decline the buyers’ motivation. Ismail (2015) mentioned that
Singapore experienced growth in e-commerce for the past four years, but still
conclude that customers still demand flexibility shopping experience. Some online
shoppers say that free shipping is critical to make the purchase, and it is more
convenient for them to discover products based on their preferences. As reported
by Valdez (2018), the expanding industry of e-commerce has ignored these
minimal aspects of issues that impact customers’ product reviews such as
damaged products, and security. These are few of the problems emphasized by
the article that commonly result in consumers not recommending the site.

Moreover, Desiderio (2019) reported the recent controversy of an online

shopping site in Manila about a company who allegedly violated the Consumer
Act of the Philippines. The complaints and aggrieved parties ensued
disappointment and distress to the users, resulting these users to take a hiatus
from online shopping in the company after the dispute. More so, Rivera (2019)
argued that Filipino customers still insist on buying items online with cash on
delivery, because there is a little chance of being scammed such as buying
expensive products online and getting rocks or crumpled newspapers inside.
 Furthermore, a concern raised from the local area of Davao City
customers indicated that courier did not follow the said remarks, and the seller did
not write the additional notes on the parcel having the outcome of the seller,
courier, and the customer conflict. This communication mishap proves that the
other parties relevant to the services given by the company can impact customer
satisfaction and online marketplace review (Serebo, 2018). According to Larotsap
and Remoto (2018), the courier tapped by the seller and the buyer, approved by
the online company, plays a vital role in meeting the clients’ expectations in terms
of speedy transactions. More of the problems of online shopping that occur within
local areas involve the courier not adhering to the schedule of sending or
shipping.

Statement of the Problem

1. What is the demographic profile of the respondents in terms of age,

sex, achieved status, and monthly allowance or salary?
2. What is the level of satisfaction on online shopping transaction in terms
of product quality, delivery and logistics, modes of payment, return and
guarantee policies, and security?
3. Is there a significant difference in the level of satisfaction on online
shopping transactions when grouped according to age, sex achieved
status and monthly allowance or salary?
Conceptual Framework

Independent Variable Dependent Variable

Level of Customers’
Satisfaction on Online
Profile of the Respondents: Shopping Transaction:

Product Quality
Age Delivery and Logistics
Sex Modes of Payment
Return and Guarantee Policies
Achieved Status
Security

Figure 1. Conceptual Framework of the Study

Business organizations are operating with technological change. Online

shopping is a tactic for better marketing performance, and retailers are using
strategies in this platform to meet the demands of the online shoppers through
studying online consumer's behavior and attitude(Essays,2018). Consequently,
this research follows a structure governed by the cause and effect variables.

The relationship between variables is indirect. Therefore, the respondents

who are the citizens is the cause since they are the one who consumes the
product. The demographic profile of the respondents is age, sex and achieved
status will be the basis of the identity of each citizen, and the researchers cannot
manipulate this. Due to the exertion of purchasing, citizens would generate such
behavior if they are satisfied with the product quality, delivery and logistics,
modes of payment, return and guarantee policies, and security.

The online clients consider several factors, precisely product quality,

delivery and logistics, modes of payment, return and guarantee policies and
security factors are considered (Mittal,2017). These influences are the
determined indicators used in this research in the costumer's satisfaction in online
shopping. Product quality is concerning about the totality of the item's packaging
and durability itself. Delivery and logistics refer to how fast or slow is the shipping
service. Mode of payments denotes the methods of how a customer can pay the
product purchased. Also, return and guarantee policies concerns the process of
returning the product in an online shopping company if it encounters defects or
issues. Security is on how they protect their customer's data.
 Theoretical Framework

This research used the Theory of Buyer Behaviour by Howard and Sheth
(1969), which explains the buying behavior of individuals over some time, and an
attempt to explain the brand choice decisions of the buyer. They suggested that
consumers' decision making varies according to the strength of the attitude
towards the brands. If consumers do not have strong attitudes, they will be
engaged in Extended Problem Solving and actively seek a piece of information to
maximize brand obscurity. In such an instance, consumers will undertake
prolonged deliberation before deciding which product to purchase or to make any
purchase. As the product becomes more familiar to the consumer, the processes
will be undertaken less conscientiously as the consumer undertakes.
 
The theory of Buyer Behavior inclines with the conducted study because
the research is concerned about the customers' satisfaction with the product. The
same way it was expressed in the theory that online shoppers have certain factors
to consider especially when buying a product online. This theory also explains
how a strong attitude towards the brands affect the buyer’s decision in shopping
online and how they are going to decide what to buy if they do not have strong
knowledge about the product. Hence, the attitude and norms are the factors that
may be the reason for an increase of satisfied online shoppers on the products
that they receive.        
 METHODS

Research Design

The type of research to be used in this study is Quantitative Research.

The goal of quantitative research is to determine the relationship between one
issue and another in a population (Hopkins, 2008). The objective of this study will
be achieved with the use of descriptive – comparative research design. As
defined by Leedy and Ormrod (2001), descriptive research entails the
characteristics of an observed phenomenon. Gay (1987) further discussed that a
descriptive research design includes gathering data through information reviews,
observation, or surveys. Richardson (2018) stated that comparative research
compares two groups in an aim to formulate a conclusion and is used to attempt
to distinguish similarities and differences between groups; and these studies are
often cross-national, comparing two separate groups. According to Zikmund
(2003), the method of descriptive – comparative research design can help to
obtain the precise information and could provide an opportunity for gathering
feedback on the respondents’ satisfaction on online shopping transactions.

The purpose of descriptive - comparative research design in this study is

to collect data related to the answers of the citizens in Davao City on their
satisfaction in online shopping transactions. This research design is appropriate
since there will be a comparison between the variables which are the profile of
the respondents and the level of customers’ satisfaction on online shopping
transaction as per product quality, delivery and logistics, modes of payment,
return and guarantee policies, and security. Comparisons between the
independent variable and dependent variable are made, and the results will be
analyzed and describe to accomplish the study.

In general, the collection of data needed is through questionnaires and

surveys. The main goal of the descriptive – comparative research design aims to
measure whether there is a significant difference between the profile of
respondents and the level of customers’ satisfaction on online shopping
transactions.
Research Locale

Davao City is a highly urbanized city in the southeastern Mindanao island

in the Philippines. The city is the third-largest city in the Philippines in terms of
the land area having 943.48 square miles. It is also one of the populous cities in
the country, and the most populous in Mindanao (The Editors of Encyclopaedia
Britannica, 2013).

Location A is located on the downtown area of Davao City Philippines. It

has 247,060 square meters and a total area of 300,000 square meters. It is a
strolling place for people since it has shopping, dining, and entertainment areas.

Consequently, Location B is located in District 2, Davao City, which

opened on October 19, 2018. People usually drop by this place, because it
includes a wide array of choices in concept stores, consumables, and service
areas.

Finally, Location C is located in J.P. Laurel Avenue, Bajada, Davao City. It

is a catholic school in Davao City composed of Kinder, Grade School, Junior
High School, and Senior High School students, staff and administrators.

Urban areas fit the location for the data gathering since it has better
access to the internet. The scope of this research is within Davao City only,
specifically in places that are usually people drop by for personal purposes and
belonged to an institution. These places have many people that can be possible
respondents in this research.

Figure 2. Map of the Philippines

Research Respondents

This study focuses on a population of 400 citizens that are living in Davao
City, Philippines. The choosing of the respondents is through Random sampling.
The researchers’ target respondents in conducting the survey are the citizens
who live in the area of Davao City, Philippines, and the citizens who are using an
e-commerce online shopping platform between the ages of 16 to 20 years old
and without the limitation of choosing whether they are students, workers,
unemployed or employed citizens. Furthermore, the exclusion of this research is
those people who do not have an online shopping application, or those who do
not engage in online shopping. The citizens in Davao City, Philippines who are
using the online shopping sites are capable to be the respondents, since they are
the primary subject in this study by having a background in using the said sites,
and being knowledgeable enough in terms of answering the survey questions.

Research Instrument

This study utilized two adapted research questionnaires having two parts.
The first part measures the profile section of the respondents which includes age,
sex, achieved status and monthly allowance. The second part is the
questionnaire from Sarkar, A. (2018) on Consumer Satisfaction on Amazon
Online Shopping and from the questionnaire of Online Shopping Habits among
Students and Teachers of St. Thomas College Palai. The survey is a seventeen
(17) item instrument that consists of four (4) measures for product quality, three
(3) for delivery and logistics, three (3) for modes of payment, two (2) for return
and guarantee policies, and five (5) for security. These items will be answered
using 5-point Likert scale. For the interpreted result, the subject used will be the
range interval for computation after the analysis and interpretation of the
gathered data.

Customers’ Satisfaction on Online Shopping Transactions

among Citizens in Davao City

Rating Range Interval Rating Description Interpretation

The situation is consistently

5 4.20 – 5.00 Very High
experienced by the citizens.
The situation is frequently
4 3.40 – 4.19 High
experienced by the citizens.
The situation is occasionally
3 2.60 – 3.39 Moderately High
experienced by the citizens.
The situation is rarely
2 1.80 – 2.59 Low
experienced by the citizens.
The situation is
1 1.00 – 1.79 Very Low inexperienced by the
citizens
 Overall, the survey instrument to be utilized in this study has two parts.
The first part is the item which measures the profile of the respondents, and the
second part contains items for customers’ satisfaction in online shopping.
Moreover, the two instruments will be validated by experts, and will be pilot
tested by researchers to ensure the high internal consistency of each item on the
questionnaire.

Data Gathering Procedure

As quantitative data is in the form of numbers, mathematical and statistical

analysis of these numbers can lead to establishing some conclusive results. The
quantitative data gathering method that will be used is through assorting survey
questionnaires. A comprehensive survey will be distributed to the respondents
that will be chosen by the researchers and agreed to participate in the study. The
chosen respondents who will be given the surveys should already have the
experience of purchasing goods from different online shopping. Respondents
were voluntary and uncoerced. Therefore, they are not obtained, compelled, and
achieved by threat or force. Respondents were assured that their individual
responses would be treated as confidential. In this data gathering procedure,
there are several steps that will be an attempt in collecting the data to provide an
answer to the query of this study. The researchers have designed the following
steps, which are chronologically arranged to ensure a proper and systematic
manner of collecting data.

Asking for Approval. The researchers will be writing a requisition letter that
will be addressed to the Basic Education Department (BED) Principal, asking for
authorization that their study will be approved for its conduct within the city.

Formulating Survey Questions. The researchers will contrive relevant

questions for every determined indicator which will assist them in affirming the
results of the study.

Validating Survey Questions. The researchers will cast about clarification

and consultation with their research teacher with regards to their formulated
questions for verification purposes. After, the researchers will finalize their survey
questionnaire which will be subjected to printing for the reliability or pilot testing.
The reliability or pilot testing will involve the giving of the 30 questionnaires to the
respondents not coming from the total number of respondents required for this
study.

Distribution of Consent and Survey Forms. To formally ask permission to

the respondents, the researchers shall give the respondents the consent assent,
consent and informed consent forms. The papers shall inform the respondents of
their involvement in this research. On the other hand, the survey forms will be
distributed to the chosen respondents in the location. Before performing the
survey, the researchers will ask first permission to a person that will be chosen
as the respondent of the study.

Gathering of Data. The researchers will then collect the survey forms after
the respondents answer the given questionnaire.

Analysis of Data. The researchers will analyze the findings, based on the
results of the collected data coming from the survey.

Drawing Out Conclusions. The researchers will come up with conclusions

based on the created proposition of the study.

Statistical Tools

In this study, the following statistical tools are utilized to interpret and
analyze the data gathered:

Mean. The researchers will use the mean score to describe the
satisfaction on online shopping transactions in terms of product quality, delivery
and logistics, modes of payment, return and guarantee policies, and security.

The study will employ T-test and Analysis of Variance (ANOVA). The
researchers will use this statistical tool to determine whether there is a significant
difference in the level of satisfaction on online shopping transactions when
grouped according to age and sex. Moreover, the researchers will utilize ANOVA
to measure several levels of variables and compare each result. In this research,
the variables to be measured through ANOVA are achieved status and monthly
allowance or salary.

Ethical Consideration

In this study, the researchers followed the ethical consideration to prevent

any damage that may affect the respondents’ physical, social, psychological and
economic risk. Through the given guidelines the researchers would explain the
following:

Informed Consent. Research ethics foundation is composed with the idea

of informed consent it means that the respondents should know that they are part
of the research and that the research demands to the respondents. Along with
the given information the purpose of the research, the methods, and the possible
outcomes may be included as well as the inconveniences that the respondents
may face the researchers will ensure them to be informed for the process to
provide necessary data (Nijhawan et. al., 2013). From the research process,
when a respondent decides to draw, they may not be stressed or required in any
way to attempt and stop them from withdrawal. The researchers shall notify
respondents that they have the right to cancel the collection of data at any time
(Tektai, 2019). Aside from informing the respondents formally, the researchers
will also be distributing consent from, assent form and informed consent forms to
the respondents for them to be fully aware of their role as sources of data in this
research. Also, the institution will be informed that we will be going to conduct our
study inside and outside the campus.

The Vulnerability of the Respondents. Thoroughly justified and procedures

in the study to protect participants. Once the study is completed, it helps the
participants to obtain unbiased information and helps them to cope with any
distress or discomfort felt during the research. Deception in the research is not
appropriate and takes advantage of the trust and implicit obedience given by the
participants to the researcher (Go, 2010). When participants volunteer to
participate, their dignity must be maintained and should not be taken for granted.

Privacy and Confidentiality of Information. Privacy and Confidentiality are

also the foundations in conducting research, in gathering the required data the
researchers will maintain its confidentiality in the conducted research. With this, it
could ensure the safety of our respondents that may help them to provide the
needed data without thinking of any harm (Crow and Wiles, 2008).

Risks, Benefits, and Safety. As the field of research establishes a

community that is sensitive to the human subject, a specific aspect of concern
has been the potential harm in asking individuals regarding the matter. Other
psychological risks are considered such as guilt, frustration, embarrassment, and
inconvenience. Consecutively, the researchers assure the respondents that they
can benefit from the survey research when addressed and recommended with
solutions. These benefits include the chances of discoursing the problem,
feelings of well-being and potential of helping the subject (Sieber, 2000).
     
Qualification of the Researcher. The researchers should be responsible
for ensuring that the respondent's identity is anonymous and assuring that the
data is well used in the study. Safety and respect are included in the qualities
that the researchers possess. The researchers should also consider the values
and appreciate the efforts of the respondents in answering the questionnaire, and
also guarantee that the data will not harm the respondents and the questions are
all related to the study that the researcher conducted (National Research Council
and Institute of Medicine, 2005) 
 
 
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 University of the Immaculate Conception
Basic Education Department
SENIOR HIGH SCHOOL UNIT
J. P. Laurel Avenue, Bajada, Davao City, Philippines

August 7, 2019

S. MARIA MERLITA B. SABATE, RVM

Basic Education Principal
University of the Immaculate Conception
J. P. Laurel Avenue, Bajada, Davao City

Dear Sister Sabate;

Praised be Jesus and Mary!

We, the Grade 12 Senior High School students of the University of the Immaculate Conception,
are currently writing our research as one of the performance tasks for the first semester in the
subject Practical Research 2: Quantitative. With that, we are working on a study entitled
“Satisfaction on Online Shopping in Davao City.” This study will determine the level of customer
satisfaction among the citizens of Davao City. Moreover, it attempted to measure whether there is
a significant difference in the level of customer satisfaction among the citizens when grouped
according to age, sex, achieved status, and monthly income/allowance.

In line with this, we would like to ask for the permission of your office for us to conduct the study.
For the completion of this research, we are going to conduct a survey through giving
questionnaires to our respondents about the level of their satisfaction on Online Shopping in
terms of product quality, delivery and logistics, modes of payments, return and guarantee policy,
and security. Results of the study will benefit the respondents when their concerns are addressed
to the different Online shopping entities. Specifically, we will administer the collection of the data
in Davao City on August 2019. We, as a research team, will be accompanied by Mr. Francis
Kenneth D. Canono. Rest assured that the information will be at utmost confidentiality, and we
assure you of our compliance to the rules that the school has set before us.

We are hoping for your positive response regarding this request.

Respectfully yours,

ALYSSA C. SAMOSINO
Research Representative

Noted by:

MR. FRANCIS KENNETH D. CANONO

Practical Research 2 Teacher

Approved by:

S. MARIA MERLITA B. SABATE, RVM

BED Principal
SURVEY QUESTIONNAIRE FOR RESPONDENTS

To the respondents,

This study entitled, “Customer Satisfaction on Online Shopping

Transaction in Davao City”. This study will determine the level of customer
satisfaction among the citizens of Davao City. Moreover, it attempted to measure
whether there is a significant difference in the level of customer satisfaction
among the citizens when grouped according to age, sex, achieved status, and
monthly income/allowance.
Respectfully yours,
The researchers
General Instructions: Kindly fill in the blanks with the necessary information
needed. On the statements below, check the appropriate box that corresponds to
your answer on the given rating below.
Age: __ Sex: __ Achieved Status: ______ Monthly Income/Allowance: _______
Rating:
4 – Strongly Agree 3 – Agree 2 – Disagree 1 – Strongly Disagree

Statements:
4 3 2 1
I. Product Quality
1. I am very satisfied with the quality of the products I
purchased.
2. The information obtained through online shopping
is consistent with the quality of the product.
3. The quality of the product was ensured while
purchased online.
4. I believe that the products I purchased was made
of high quality materials
5. The products I received were what I expected.
6. I would recommend this product to someone else.

II. Delivery and Logistics

1. I am satisfied with the delivery and logistic services
of the online shopping entity.
2. The entity resolves complaints within 24 hours.
3. The delivery crew is friendly.
4. The goods arrived were not damaged.
5. The speed of the delivery is commendable.
6. The courier will be recommended to someone
else.
III. Modes of Payments 4 3 2 1
1. The quality of the modes of payment is reasonable
for the amount price.
2. I am well introduced of card payment features.
3. I am well oriented of the cash-on-delivery
payment.
4. The procedure for the transaction is simple and
easy to manipulate.
5. Different payment options are stated clearly.
6. I am satisfied of the different modes of payment
offered by the online shopping entity.

IV. Return and Guarantee Policy

1. The Online Shopping entities keep their promised
return conditions.
2. The Online shop provide a trustworthy return
information.
3. I am fully aware of the return and guarantee policy
held by the company.
4. There is a fast delivery in returning or refunding
the items or products.
5. The return policy is reasonable.
6. I am satisfied of the Return and Guarantee Policy
implemented by the online shopping entity.

V. Security
1. Registration process details are retained securely.
2. The privacy policy is accessible to every
consumer.
3. The online shopping entity guarantees about the
privacy of personal information.
4. My account information is always kept confidential.
5. External validation of trust worthiness is applied.
6. I am satisfied with the security guidelines
implemented by the online shopping entity.