CHAPTER 1

THE PROBLEM AND ITS SETTING

INTRODUCTION

Worldwide, the number of people buying online has been

increasing as they feel it is easy to do online shopping

compared to traditional way of doing it. Online shopping is a

form of e-commerce in which a consumer can purchase goods or

services directly from the virtual stores through the

Internet. Attracting the customers by lucrative offer is a

temporary phase. By providing better services and satisfying

the customers, a company can earn a customer for forever

(Souca, 2015).

With the growing speed of the World Wide Web, online

shopping is becoming popular among the youth. The younger

generation entirely depends on the internet as they are

accustomed to using the internet for everything. El Khatib and

Khan (2017) confirmed that the younger generation is more

interested in browsing anything and everything online.

In online shopping, the customers need not run up and

down to buy a specific product from a specific store, and the

shopping becomes easier. There are many online shopping

Shopee, Shein, Zalora, etc. Al-Jahwari and Khan (2018) stated

that the online marketers, not only trying to bring lots of

customers into their manifold but also trying to serve and

enrich the entire community with the online experience. The

factors enriching the customer satisfaction on the mindset of

the youth need to be analyzed and aligned to that of the

reliability of the product information, service assurance, the

responsiveness through customer queries, personal information

will be treated with utmost confidentiality and best offers

available without compromising the product quality. There is

no doubt that the online shoppers are paying attention to

these factors but the customers still have the following

questions:

1. How far is the information advertised through these

online websites reliable?

2. How well are the systems and the safety measures of the

transactions held?

3. What is the assurance that their personal information

will not be susceptible to hacking?

4. What is the guarantee of the intact delivery of the

product ordered?
These questions were backed up by the past events such as

follows:

a. A customer ordered a product which was totally

different from what he received as a door delivery

b. Due to hacking, some of the customers lost their

entire money in their bank accounts after online

shopping

c. Few of the customers, who ordered goods online

received empty boxes containing just papers.

Thus, the bitter experiences had made the youth customers

feel traditional shopping is safer compared to other modes of

shopping, especially online shopping. Though the trend

appeals to change, the fear remains, and the causes of such

issues remain unsolved. Thus there is a need for the study to

find out the essential elements and the perceived expectation

of the online customers.

In this research study titled, “Factors Influencing

Customer Satisfaction of Online Shopping in Brgy. Santo Niño,

Cabanatuan City, Nueva Ecija – Youth Perspective”, the

researchers aim to identify the factors influencing customer

satisfaction of online shopping in the said specific location.

In addressing this problem, the researchers occur for having a

consumers.

Statement of the Problem

This study aims to determine the factors influencing

customer satisfaction of online shopping in Brgy. Santo Niño,

Cabanatuan City, Nueva Ecija – Youth Perspective.

Specifically, it sought to answer the following questions:

1. How may the profile of the respondents be described in

terms of:

1.1 Age;

1.2 Gender;

1.3 Civil Status?

2. How may the factors influencing consumer satisfaction of

online shopping in Brgy. Santo Niño, Cabanatuan City,

Nueva Ecija – Youth Perspective be described in terms of:

2.1 Product Quality;

2.2 Application Safety;

2.4 Delivery Guarantee;

2.4 Offers?

3. How may the purchase experience be described in terms of:

3.2 Which website or virtual store do you prefer to

shop;

3.3 How frequent was your online shopping;

3.4 Which time do you prefer to shop;

3.5 When do you usually purchase a specific item on

virtual stores?
Scope and Delimitation of the Study

This study is an attempt to evaluate the factors

influencing customer satisfaction of online shopping. The

respondents of this research were the youth residing at Brgy.

Santo Niño, Cabanatuan City, Nueva Ecija who had online

transactions from which 110 questionnaires were distributed

following the guidelines and safety protocols of the said

community.
Significance of the Study

The researchers hoped that this study may greatly help

the consumers, sellers, teachers, readers, and the future

researchers.

To the consumers, the result of this study may help them

to attain certain level of satisfaction and contentment prior

to their purchase experience.

To the sellers, this study may help them to identify the

factors influencing customer satisfaction that will enable

them to reach more prospective customers, increase their

market share and obtain customer’s loyalty.

To the teachers, this may benefit as a good source of

accurate and useful information for relevant study.

To the readers, this study may help them to have an idea

about e-commerce and the factors influencing consumer

satisfaction. It may also help them to enhance their knowledge

about customer satisfaction and its effectiveness to e-

commerce.
 To the future researchers, this may serve as their guide,

reference and basis for relatively similar studies. This will

also motivate themselves to perform well in order to achieve

their goals in life.

CONCEPTUAL FRAMEWORK

Figure 1. Quality Safety Assurance Model (QSA Model) by Omani youth

Conceptual Framework of the Factors Influencing Customer

Satisfaction of Online Shopping

In this study, the researchers adapted the QSA Model by Omani

youth to identify connected variables that are needed in the study.

The QSA Model has confirmed that Product Quality, Application

customer satisfaction. It was reflected on the research study

conducted by Noura et al. (2018), lecturers from Sohar University.

The factors influencing customer satisfaction along with its

associated variables, without compromising the product quality,

variety of products should be made available online. The information

should be made highly reliable as the customers repeatedly visit the

website. Customer Relationship Management (CRM) should be smooth, no

delay in attending to customers’ inquiry and delivery quality must

be ensured. Utmost confidentiality must be maintained and best-buy

offers must be made available on a regular basis. These factors

influencing customer satisfaction of online shopping are essential

considerations for tending to purchase goods and services.

RESEARCH PARADIGM
 FIGURE 2

Research Paradigm of the Factors Influencing Customer

Satisfaction of Online Shopping

The input-output (IPO) model is functional graph that

identifies the inputs, outputs, and required processing tasks

required to transform inputs into outputs. As shown on Figure

2, the input which represent the data and materials needed for

the study are consist of the demographic profile of the

respondents, factors influencing customers satisfaction of

online shopping and the purchase experience of the customers.

The processing step which include all the task required to

transform inputs into outputs are done by conducting a survey

questionnaire from specific respondents and analysing all the

statistical data that will be gathered. The final step of the

IPO Model is the output which is the conclusion or outcome for

the subject matter of this research study which is to know and

determine factors influencing customer satisfaction of online

shopping in Barangay Santo Nino, Cabanatuan City, Nueva Ecija

– Youth Perspective and it also identifies the profile of the

respondents and the purchase experience of the customers.

For better understanding, the following terms are

defined.

E-Commerce – It refers to any form of business transaction

conducted online.

Customer satisfaction – It is a measure of how products and

services supplied by a company meet or surpass customer

expectation.

Online selling – Selling online is more than setting up a

website and uploading product images; it requires passion,

expertise, and marketing chops to succeed.

Virtual store – It is an online store that displays

merchandise and an order form. A live text chat may be

offered, in which the customer interacts in real time with a

company representative.

Purchase experience – It includes the entire process that the

buyer engages in as they move from status quo to purchase.

enacted in 1995 established the National Youth Commission and

the National Comprehensive and Coordinated Program on Youth

Development. This act defined the Filipino youth as those with

ages 15-30. Currently, the Philippines have a projected 85.2

million population.