1

Chapter 1

THE PROBLEM: ITS BACKGROUND

Introduction

Online shopping is now being practiced normally by most of the internet citizens

or so called "netizens" as many of them believes and rely in a fast and an instant service

and product purchase that can easily be provided in almost all platform of the world wide

web. Many believes that only shopping brings unending possibilities for consumers.

A lot of online shopping website were already created to make it more easy and

convenient. These includes the famous Zalora, OLX, Lazada Ph, Shopee, and more.

Social media sites such as facebook, twitter, instagram and youtube were now being used

as great and expanded platform for online shopping as it connects concrete sellers to

interested online consumers. These make online shopping fast and more possible through

private messages and sharing of post about sale of certain items.

According to Zegras (2015), the second annual Pitney Bowes Global Online

Shopping study surveyed around 12,000 consumers in 12 countries – Australia, Brazil,

Canada, China, France, Germany, India, Japan, South Korea, Russia, the United

Kingdom and the United States – to provide retailers validated information on the buying

habits and preferences of online shoppers around the world. Most respondents (62

percent) said they rely on search engines to find goods, while 44 percent visit retailers’

websites directly and 16 percent use social media. Social networks are especially popular

among Indian Brazilian and Chinese customers.

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Consumers’ behaviour plays an important role in online shopping. The way

people think and act in a particular subject incorporates purchasing an item at any time.

On the other hand, online shopping attitude refers to consumers’ psychological state in

terms of making purchases on the Internet. There is a significant factor that affects

consumers in involving into online shopping, convenience, price, information, and trust

are the top leading factor where consumers think online shopping is easier than usual for

it doesn’t entails a face to face interaction like the traditional one, no time consuming for

long lines, and very accessible even in home or office (Ho and Wu, 1999).

Berthiaume (2015), a third of global online shoppers have purchased products

online from retailers in other countries. Australians continue to be the most likely to buy

products online from retailers outside their own country (63% in 2015 and 2014 studies)

followed by Canada (48% in 2015 versus 54% in 2014) and Russia (49% in 2015 versus

54%). In line with his study, Price is the top reason (61%) shoppers have purchased or

would consider purchasing a product from an online retailer outside of their own country,

followed by availability (40%), quality and better selection (both 30%). Product

authenticity was highest in India, (36%), China and South Korea (both 30%) and Russia

(22%).

Additionally, Reyes (2017) opined that for Filipinos, it was the website that

arguably brought e-commerce into the mainstream fore. Multiply shopping became such

a huge part of the site, with more than 90 thousand merchants in 2011, that it eventually

shifted to a fully e-commerce website. At that time, the Philippines was also said to be

the largest and fastest growing market for Multiply. Fast forward to the present, where e-
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commerce has grown and evolved in many ways. In 2015, there were already 44.2

million active Internet users and 47 million active Facebook accounts in the Philippines.

Moreover, Soriano (2008) revealed in his study that the most notable among the

problems in marketing management of the small and medium businesses in Western

Tarlac is low price, followed by unresponsiveness of the products to customer needs, no

customer, high promotional cost, stiff competition, and declining demand because of the

presence of many firms and continuous increase in prices of products. Also, he concluded

the retailing businesses in Tarlac are more of self organised and are not being controlled

by bigger organisation such as main branch or Mother Company. They have good

strategies when it comes to providing products to the customers. The businesses are also

more of “customers and business entered” because they purchase goods in large quantities

for their customers and for their concerned with inventory control because that is one of

the factors that determine their costs.

Thereby, online shopping in Tarlac seems to be booming because various online

shopping has been expanded in the province. Different websites have an impact to all

Tarlaquenos as they purchase most of their things online rather than the usual personal

transact.

The researchers are motivated to go on with this dissertation for many will be

benefited as the study goes further. The description of online shopping will be unveiled,

the different online shopping risks are into this study, the factors that influence shoppers

to buy online will be identified, and the attributes that impact consumers’ behaviour will

be listed.
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Statement of the Problem

The purpose of this study is to analyse the factors affecting consumers’ behaviour

of CARTHEL SCIENCE EDUCATIONAL FOUNDATIO N towards online shopping

in an academic year 2018-2019

Specifically, the researchers aim to answer the following questions.

1. How is online shopping described by shoppers?

2. How are online shopping risks described by shoppers in terms of:

financial;
2.1.

2.2. product;

2.3. convenience;

2.4. return policy; and

2.5. non-delivery.

3. What are the factors that influence shopper to shop online?

4. How does the attribute of online shopping impact consumers’ behaviour?

Significance of the Study

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This study can provide useful information concerning the consumers’ behaviour

of the CSEF students towards online shopping. The findings of the study are helpful to

the following:

To the CSEF Students, this study will help them to be aware about the

advantages and disadvantages of online shopping.

To the Online Shoppers, this study will be their guide in purchasing an online

item, thus, they will be gained enough knowledge in choosing the best quality. They may

be benefited through acquiring some risk problems in online shopping.

To the Online Shopping Owners, this study will also be beneficial to them by

having an awareness on how to run an online shopping business. They can obtain

relevant ideas and strategies in supervising their online businesses.

To the Researchers, they will be fully informed about the effects of online

shopping in other conventions especially to the CSEF students.

To the Future Researchers, this study can serve as their guide in providing

information regarding their future research. This will be their basis in conducting

research for a same topic.

Scope and Delimitation

The study is mainly concentrated on CSEF Students’ behaviour in purchasing

online shopping. As an evaluation, the study describes main points on the motivating

factors influencing the students in purchasing an online item.

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The researchers will only use CSEF Students of the academic year 2018-2019

respondents to gather information regarding the consumer’s behaviour towards online

shopping, so it means there are no other students who will be included. This will happen

around Carthel Science Educational Foundation Inc. only with the students who are

currently enrolled. There will be a structured questionnaires as means of collecting data

with only 100 random respondents who have experienced online shopping in different

Internet sites.

Definition of Terms

The following terms are hereby defined in the circumstances of their usage in this

study:

Behaviour. The way students act and conduct themselves in purchasing an online item.

Convenient.Well-timed and favourable feeling to the consumer as they purchase an

online item.

Convenience Risk. The risk of fulfilling the customer’s expectations in accessibility and

delivery period.

Electronic Commerce. The transaction of buying or selling of goods and services

through electronic network which is the Internet.

Financial Risk. The risk associated with financing, including financial transaction of

online shopping.

Internet.The medium where online shopping takes place.

Mall or Market Shopping.The act of purchasing an item over Malls or Markets.

Non-delivery. Failure to provide or deliver goods.

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Online Shoppers. A person who purchases goods and services in the Internet.

Online Shopping. The process of purchasing an item over the Internet.

Price.An amount of money that is needed to pay for an online item.

Product. An object that is being buy and sell in an online shopping.

Product Risk. The possibility that the system or software might fail to satisfy the

customer’s expectation in their purchased products.

Purchase. Getting an online item to pay for it.

Return Policy. The rule in online shopping that allows customers to return or exchange

unwanted or defective products that they have purchased.

Trust. The certainty or reliability of the products when purchasing an online shopping.
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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

For better understanding of the study, the researchers made use of different

reading materials to get more ideas and knowledge that will guide the researchers to

achieve the target objectives and to elaborate more the study. The researchers will make

improvements as possible.

In this chapter, the related literature and the studies both local and foreign sources

are presented.

Related Literature

Holdings (2012) found that among consumers who engaged in e-commerce

activities, 72 percent of online consumers in the Philippines indicated using the Internet

for grocery shopping research over the past month. When it comes to learning more about

what they need to buy, Filipinos are among the most active in the Asia-Pacific region in

using the Internet for product research and snaring online deals.
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Abrugar (2013) stated that the Philippines, businesses, whether micro, small,

medium or large enterprise, are already exploring and utilising the Internet to leverage it

for their benefits and advantages. Many companies are already hiring or getting the

services of SEO (search engine optimisers), social media marketers, bloggers, affiliate

marketers, PPC marketers and other Internet marketers to strengthen their online

marketing campaigns. Other business owners and entrepreneurs, particularly small

business owners, are already trying to learn and implement online marketing on their own

to stay in the business competition.

Pedroso (2015) mentioned that more Filipinos are using their mobile phones to

purchase items— from 21.4 percent in 2012 to 34 percent in 2014, with 94.2 percent of

participants able to access the Internet via smart phones, MasterCard noted, adding that

those who purchased via mobile phones did so because they were able to do it “on the

go.” Availability of apps that facilitate mobile shopping has also made it more

convenient. Among mobile shoppers, the top categories for purchases are phone apps

(24.7 percent), music downloads (22.7 percent) and clothing and accessories (20.7

percent).

Farber (2016) concluded that one of retail’s biggest game changers is Amazon,

which is killing its brick-and-mortar rivals. According to data released by eMarketer to

Fortune, Amazon’s e-commerce revenue rose 15.8% in the last 12 months, which is

roughly the same clip as Walmart. But Amazon posted $82.7 billion in sales, compared

with $12.5 billion for Walmart, and that chasm in dollars keeps getting wider.
 10

Pew Research Centre (2016) found out in a survey for U.S. adults that roughly

eight-in-ten Americans are now online shoppers: 79% have made an online purchase of

any type, while 51% have bought something using a cellphone and 15% have made

purchases by following a link from social media sites. When the Centre first asked about

online shopping in a June 2000 survey, just 22% of Americans had made a purchase

online. In other words, today nearly as many Americans have made purchases directly

through social media platforms as had engaged in any type of online purchasing

behaviour 16 years ago.

Related Studies

A. Foreign

Dejan (2007) explored the most relevant behavioural characteristics of online

consumers and examines the ways they find, compare and evaluate product information.

Comparison of the newly collected survey data with the existing consumer behaviour

theory resulted in detection of a number of issues related to a specific consumer group.

The purpose of this report was to translate findings into a set of implementation activities

on strategic and technological level. Execution of these recommendations would result in

better conversion of visitors into customers and encourage customer loyalty and referrals.

The focus group of study were young adults aged between eighteen and thirty-four

interested in buying a mobile phone or a related product.

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Mordani (2008) explored the study on investigation of consumer‘s perception

towards internet based e-shopping and the study involved an experiment in which the

respondents were asked to go through the online shopping process and relate their

experiences. The study found that the positive experience with a website plays a vital role

in forming consumers trust while shopping online and if consumers trust the website then

they will perceive ease of use, perceive enjoyment and perceive the website to be less

risky which would finally culminate into an intention to transact with the website.

Alam (2008) in the study revealed that young consumers are playing an important

role in online shopping. The increasing use of Internet by the younger generation in

Malaysia provides an emerging prospect for online retailers. It was discovered that

website design, website reliability, customer service and privacy are the four key factors

which influence young consumers‘ perceptions of online shopping.

Gong (2013) found out that Chinese consumers' age, income, education and

marital status, and their perceived usefulness are significant predictors of online shopping

intention. A nationwide online survey of 503 Chinese consumers was carried out to test

the proposed conceptual model of online shopping intention using hierarchical

regression. The results support most of the proposed hypotheses.

Sailadavi (2014) stated on his study that convenience during the online shopping,

wider alternatives for selection and low price significantly influence online customer

satisfaction in Indian context. The purpose of his study is to explore the influences of

online shopping perceived benefits namely convenience, pricing and wider selection

towards online customer satisfaction and word of mouth. The data has been collected on

convenience from 385 respondents who experienced at least one online shopping in the
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last year. Four hypotheses has been tested empirically with the help of Partial Least

Square Structural Equation Modelling (PLS-SEM) and the results are significant.

Lean & et. al (2015) concluded that subjective norm and perceived usefulness

significant positively influence online purchase intention but subjective norm

insignificant influence shopping behaviour in a negative way. It is interesting to note that

perceived usefulness also insignificantly influence online shopping behaviour. Finding

also revealed that purchase intention significant positively influence online shopping

behaviour. For future research, sample from working adults and other variables that

related to online shopping were to be included to minimise sampling bias.

Shahzad (2015) opined that online shopping is a very much developed

phenomena in Scandinavian countries. Different online factors impact online consumers’

behaviour differently depending on the environment of different regions. Sweden is one

of the developed and technologically advanced countries. To see the impact of different

factors on consumers’ online shopping behaviour, the purpose of this study is to analyse

the factors that influence consumers’ online shopping behaviour in Sweden’s context. The

findings of this research revealed that website design is the most influential and

significant factor. While product performance risk, and trust & security have a significant

impact to consumers’ online shopping behaviour, the study finds that the remaining

factors financial risk, and delivery risk have no significant impact on consumers’ online

shopping behaviour.
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Kruh (2017) investigated that the frequency of online purchases varies

considerably by geography. Consumers in Asia, North America and Western Europe are

most likely to shop online, while per capita online purchases in Eastern Europe and

Russia, Latin America, and the Middle East and Africa are less frequent. Additionally,

Among the different age groups, Generation X consumers (born between 1966 and 1981)

made more online purchases last year than any other age group, averaging nearly 19

transactions per year. Interestingly, despite the common belief that the upswing in online

shopping is largely driven by the younger and more ’tech-savvy‘ Millennials (born

between 1982 and 2001), Generation X consumers in fact made 20 percent more

purchases last year than their younger counterparts.

B. Local

Holdings (2012) noted a gradual evolution in the patterns of Filipino consumers’

behaviour as far as online product research was concerned. While non-consumer

packaged goods (CPG) such as electronics, clothing and travel reported the highest

penetration for digital shopping intentions, the level of influence for CPG-related

products was observed to be growing. In fact, Filipinos’ intentions to buy food and

beverages via online sources more than doubled from 15 percent to 32 percent in two

years, it showed.

Abrugar (2012) studied that many businesses in the Philippines, especially for

those whose target market are online users, are already using search engine marketing,
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like PPC marketing, which includes buying ads on Google AdWords for sponsored

listing on Search Engine Result Pages (SERPS). Search Engine Optimisation (SEO) is

already popular in the Philippines. And for bloggers and webmasters, SEO is already one

of the most important knowledge they must have to be successful online.

Cana (2013) investigated the fashion and lifestyle of “e-tailer” has posted double

digits growth for the last 36 months, basically since it launched in the Philippines in

2012. Zalora is very familiar to anyone who’s ever bought anything over the internet. The

brand is purportedly Asia’s biggest online shopping platforms with localised operations in

Indonesia, Singapore, Vietnam, Thailand, Brunei, and the Philippines. But Zalora is not

the only big name in the local online retail business. Sites like Lazada Philippines,

OLX/AyosDito, Keekay.ph, and Goods.ph are also doing well, while everyone from big

stores to small fashion and beauty entrepreneurs have their own online presence, offering

ways for customers to buy their products online through their sites and facebook.

Torres (2015) in his study 9 out of 10 Pinoys prefer online shopping, revealed that

those who prefer to do their shopping online spend an average 6.2 hours daily.Even

traditional Filipino shopping habits carry over in the digital world – the convenience of

online shopping allows 63 percent of Filipinos to compare prices of items without

needing to visit physical stores. Filipino consumers also favour e-commerce sites, which

store their payment details, citing faster checkouts for their orders (58 percent).While

Filipinos still predominantly use cash for everyday transactions, the study revealed that

65 percent of respondents prefer to use payment cards when shopping online, while 35
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percent still prefer cash on delivery and another 34 percent select bank transfers,

highlighting the strong confidence towards using payment cards.

MasterCard (2015) studied that three out of every five or 59% of the online

population in the Philippines access the internet to shop, according to a recent survey by

MasterCard. Showing a remarkable increase from the previous year’s figure of 40%, the

study points to the growing importance of online shopping to the Philippine market. The

MasterCard research, which also covers 13 other Asia Pacific countries, offers a glimpse

of consumers’ online shopping behaviour, including their attitudes to online shopping,

factors impacting their purchases, satisfaction with and future plans for online shopping,

categories of items purchased online, state of mobile shopping, and ethical spending.

These studies conducted over the years have shown that consumers’ behaviour

towards online shopping are caused by several factors. These factors may significantly

contribute to the consumer’ satisfaction in purchasing through online shopping.

Conceptual Framework
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The model which used in this study was developed to examine the online

shopping behaviours of TSU-CBA students. This model examines the relationship

between perceived risks, return policy, subjective norm and attitude toward online

shopping.

FIGURE 1

Paradigm Of The Study

ONLINE SHOPPERS

O
N
L
RISK FACTORS
I A
N
E T
FINANCIAL T
S
H
PRODUCT O R
P
CONVENIENCE
P I
I
N B
RETURN AND G
POLICY
U
B
E T
NON- H
DELIVERY
A E
V
I S
O
R

RECOMMENDATION

Chapter 3
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METHODS OF STUDY AND SOURCES OF DATA

This chapter presents the method of research, locale, population, methods of

gathering data, and the research instruments or tools that were used. The researcher used

appropriate research method and procedure in evaluating consumers’ behaviour of TSU-

CBA Students towards online shopping.

Method of Research

The researchers used the quantitative type of research. This design will be used to

attain the objective of the research. A quantitative research is defined as the type of

research that often uses deductive logic, in which researchers start with hypotheses and

then collect data which can be used to determine whether empirical evidence to support

that hypothesis exists.

The researchers used descriptive research. A descriptive research is used to

describe characteristics of a population or a phenomenon being studied. Additionally,

descriptive research is all about describing people who take part in the study.

Locale of the Study

The respondents will be the Tarlac State University College of Business and

Accountancy students of the academic year 2017 – 2018. The importance of this research

is to gather some views and perspective about students in purchasing an item in online
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shopping. There will be 100 respondents in total. These 100 CBA students will be used

for structured questionnaires that will be conducted around Tarlac State University.

Population of the Study

The researchers used the list of TSU-CBA students who are currently enrolled in

an academic year 2017-2018. The respondents of the study will be selected through

simple random sampling aided by initial survey. The total number of respondents are

composed of 100 students from different sections in CBA Departments such as

Accountancy Department, Accounting Technology Department, Entrepreneurship

Department, HRM Department, and Business Administration Major in Business

Economic, Financial Management, Marketing Management Department who are

identified to have been experiencing an online shopping in different Internet sites.

Research Instrument

The instrument will be structured questionnaires answered by 100 CBA Students

of Tarlac State University. The interview questionnaires are comprises of set of checklist

form in order that the respondents can identify their answers well. The purpose of this

questionnaire is to deeply understand the perception of shoppers towards online shopping

such as the description of online shopping, the different risks including product, financial,

convenience, non-delivery, and return policy risks, the factors that influence shoppers,

and the attributes that impact the consumers’ behaviour in online shopping. Their answer

will be kept highly confidential. These questionnaires will also help the researchers to
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gather some insights of the students who are purchasing an online item in various Internet

sites.

Data Gathering Procedure

Online sources are one of the strategies of the researchers to gather data

beforehand, thus, it provides reliable information that is relevant with the study.

In this study, the data gathering method used by the researchers was through the

structured questionnaires. The structured questionnaires were checked by the research

teacher and mistakes were corrected. After the checking, the questionnaire was validated.

After the validation of the questionnaire, it will be distributed to the respondents

that are knowledgeable in experiencing online shopping. Afterwards, the data gathered

were analysed and evaluated carefully by the researchers after on.

Statistical Treatment

The researchers used the Percentage Technique in treating the data that were

gathered to evaluate the attributes that impact the consumers’ behaviour of the online

shoppers.

The formula used was:

F/N x 100 = %

F= frequency

N= total number of respondents

%= percentage
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However, the data gathered in using the Liker scale were recorded, analysed and

interpreted using mean or the average. This was to measure the description of online

shopping, perception of the online shoppers with the risks such as product, financial,

convenience, return policy, and non-delivery risks, and the factors that influence online

shoppers.

The formula used in computing the mean or the average was:

∑x
x=
n

x = mean or average
∑x = summation of x (measures)
n= number of values (x)

Upon using these formulas, the researchers used the Microsoft Excel, a reliable

software installed on most of the computers run by Windows Operating System which

contains various mathematical functions suitable for computing and evaluating the data

gathered throughout the research.

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CHAPTER IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter describes the analysis of data followed by a discussion of the

research experienced findings. Data were analysed to identify, describe, and present the

factors affecting consumers’ behaviour of Tarlac State University College of Business

And Accountancy towards online shopping. Data were acquired from a well-structured

survey with series of checklists completed by the 100 CBA students of Tarlac State

University.

1. How is online shopping described by shoppers?

Table 1. Description of Online Shopping

Statements Mean

I shop online as I can shop with privacy at home 3.69

I shop online to get broader selection of products 3.60

Online shopping gives better control on expenses 3.54

As shown in Table 1, the mean of shopping online to have privacy at home is 3.69

With this, shopping online is very good in terms of shopping with privacy in home if the

shopper doesn’t want other people to see or know what is he/she will going to purchase.
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Likewise, the mean of shopping online for not leaving home is 3.68, this means that

shopping online is very good in terms of having the choice to stay and not to leave home

unlike when shopping in the department store or market. Thus, if the shopper wants to

guard his/her home but wants to buy or order goods or services, he/she can shop online.

Additionally, 3.90 is the mean of online shopping to save shoppers from market crowd.

With this, shopping online is very good if the shopper doesn’t want to be with a huge

number of a crowd in the grocery or in a mall. Thus, online shopping can secure the

consumer from communicable and unwanted illnesses and diseases that he/she may get

from the crowd. While the mean of shopping online to get broader selection of products

is 3.60 which is very good because sometimes, an establishment does offer the kind of

product the consumer wants but doesn’t offer a wide variety of its type and brands. Local

online store such as Lazada and Zalora Philippines are offering almost all products

available in the market. Moreover, 3.54 is the mean of online shopping gives better

control on expenses with very good rating. This means that online shopping gives better

control on expenses since the consumer can already compute or allot his/her budget for

his/her shopping since the size and quantity of the product are transparent and are

displayed easily unlike in some stores in which some products are not well labelled.

2. How are online shopping risks described by shoppers in terms of:

Table 2. Product Risks

Statements Mean
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Might not get the exact order 3.70

Might receive malfunctioning merchandises 3.80

It is hard to judge the quality of merchandise over

3.82
internet

GRAND MEAN 3.77

As shown in Table 2, the mean of shoppers might not get the exact order through

online shopping is 3.70. This means that online shopping is very risky in not being

assured of receiving the product. While 3.80 is the mean of receiving malfunctioning

merchandise over the internet. Thus, online shopping can be very risky because the

respondents have believed that they may get an item with low quality. However, the

mean of judging the quality of merchandise over internet is hard is 3.82. Accordingly,

online shopping can be very risky in knowing the quality of the product to be purchased

since the consumer cannot personally test it him/herself.

Table 3. Financial Risks

Statements Mean

Credit card details may be compromised and misused 3.58

Get overcharged if shop online because of hidden

3.56
charges

Sellers might fraud the payment of the shoppers 3.67

GRAND MEAN 3.60

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As shown in Table 3, the mean of credit card details may be compromised and

misused is 3.58. Thus, online shoppers believed that paying through credit card is very

risky in terms of finance since some information about the consumers can be stolen

through the hacking of their credit cards, debit cards, and even bank accounts. Moreover,

3.56 is the mean of getting overcharged because of hidden charges. Thereby, online

shopping can be very risky since the seller does have control to the financial charges of

the shoppers. Additionally, the mean of sellers might fraud the payment of the shoppers is

3.67. Online shopping can be very risky since the personal financial information of the

shoppers are expose to the shipping and cargo company who will be responsible in

delivering their purchases.

Table 4. Convenience Risks

Statements Mean

Finding right product is difficult 3.74

Late delivery of the products 3.55

Cannot get to examine the product when shop online 4.24

GRAND MEAN 3.84

As shown in Table 4, the mean of finding the right product is difficult is 3.74.

Online shopping can be very conveniently risky since the respondents believed that it

may consume a lot of time for them because of wide array of choices of products
 25

available. On the other hand, the mean of late delivery of the products is 3.55. Online

shopping can be very conveniently risky since the shoppers can have the tendency to

overthink or be anxious for the product to arrive late as they expect the target delivery

time. While the mean of can’t get to examine the product when shop online is 4.24.

Online shopping is severely conveniently risky as the shoppers can’t hold or see the

products personally because the items are just posted on the internet.

Table 5. Non-Delivery Risks

Statements Mean

Might not receive the product ordered online 3.85

Non-availability of reliable and well-equipped shipper 3.59

GRAND MEAN 3.72

As shown in Table 5, the mean of might not get the order through online shopping

is 3.85. With this, online shopping can be very risky as shoppers believed that they may

encounter bogus sellers that may fraud their payments. Likewise, the mean of the non-

availability of reliable and well-equipped shipper is 3.59. Thus, online shopping can be

very risky as shoppers believed that trust is a big issue with sellers nowadays.
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Table 6. Return Policy Risks

Statements Mean

Don’t shop online if there’s no free return shipment 3.81

service available

Shop online when the product can be returned without

4.31
any frills or strings attached

Strict cyber-laws in place to nab and punish frauds

3.08
and hackers

GRAND MEAN 3.73

As shown in Table 6, the mean of don’t shop online if there’s no free return

shipment service available is 3.81. Online shopping can be very risky since some of the

seller or online shopping site does have a very strict no return policy even when a

shopper can encounter a defective or malfunctioned merchandise. While the mean of

shoppers shop online when the product can be returned without any frills or strings

attached 4.31. Thereby, online shopping can be severely risky as the shoppers want to

rest assured that the products they are ordering are safe without any hidden charges.

Furthermore, the mean of strict cyber-laws in place to nab and punish frauds and hackers

is 3.08. Online shopping can be very risky as the shoppers do not want to be defrauded

with any dishonest scheme, conversely, the laws will punish the sellers if that happens.
 27

Table 7. Factors

Statements Mean

Usage of Internet 4.13

Influence of family or relatives 3.86

Past reviews given by the online shoppers 3.96

Bandwagon effect 3.45

Consultation of friends 3.48

As shown in Table 7, the mean of usage of internet is 4.13. This means that this

statement is extremely effective factor that influence shoppers to shop online. However,

the mean of the influence of family or relatives is 3.86. This means that people to whom

they are blood related are highly effective influence for the respondents to shop online.

While the mean of the past reviews given by the shoppers is 3.96. This means that the

feedbacks of past online shoppers on the products they have purchased is a highly

effective influencer for the respondents to also shop online. On the other hand, the mean

of bandwagon effect is 3.45. This means that if there is a high number of consumers or a

large part of the market were shopping online, the respondents are highly influenced to

shop online too. Moreover, the mean of the consultation of friends is 3.48. This means
 28

that the respondents can also have the tendency to shop online because of the consultation

of their friends to try something new in the internet since they know that a friend’s

recommendation can be trusted. This statement is a highly effective factor to influence

shoppers to buy online.

3. How does the attribute of online shopping impact customers’ behaviour?

Table 8. Usage of internet mostly for

Usage f %

Do not use 1 1

Blogging 2 2

Work 4 4

Banking 5 5

Product search 6 6

Information search 7 7

Emails 8 8

Entertainment 10 10

Buying 11 11

Chatting 12 12

Browsing 15 15

Social Networking 19 19

TOTAL 100 100

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With 100 respondents, 19% said that they were using internet mostly for social

networking, 15% for browsing, 12% for chatting with friends, and 11% on buying or

shopping online.

Table 9. Usage of internet mostly at

Place f %

Do not use 1 1

Work 4 4

Internet Café 10 10

School 26 26

Home 59 59

TOTAL 100 100

With 100 respondents, 59% said that they were using internet mostly at home, 26% at

school, 10% at internet café, and 4% at home. Thereby, the usage of internet at home is

dominant with the shoppers as they have full time to use it while they are at home.

Table 10. Duration of being active using internet

Duration f %

Do not use at all 1 1

 30

3-6 months 2 2

6-12 months 4 4

Less than 3 months 7 7

2-3 years 8 8

1-2 years 9 9

3-5 years 33 33

More than 5 years 36 36

TOTAL 100 100

As shown in Table 27, 36 out of 100 respondents are active using internet for

more than 5 years, 33 respondents are for 3-5 years, 9 for 1-2 years, 8 for 2-3 years, 7 for

less than 3 months, 4 for 6-12 months, 2 for 3-6 months, and 1 respondent for do not use

at all.

Table 11. Duration of being active using internet for shopping

Duration f %

More than 5 years 2 2

2-3 years 4 4

1-2 years 6 6

3-5 years 8 8

3-6 months 12 12
 31

Do not use at all 13 13

6-12 months 16 16

Less than 3 months 39 39

TOTAL 100 100

Table 28 shows that 39 respondents are active using internet for shopping for less

than 3 months, while 16 for 6-12 months, 13 for do not use at all, 12 for 3-6 months, 8 for

3-5 years, 6 for 1-2 years, 4 for 2-3 years, and 2 respondents for more than 5 years.

Table 12. Period of purchasing things on internet (for the past six months)

Period f %

Not sure 7 7

Never 10 10

11-20 times 10 10

21 times or more 10 10

6-10 times 12 12

3-5 times 22 22

1-2 times 29 29

TOTAL 100 100

With 100 respondents, 29 respondents purchase 1-2 times on internet for the past

six months, while 22 purchase 3-5 times, 12 purchase 6-10 times, 10 purchase 11-20
 32

times and 21 times or more. Additionally, 7 respondents are not sure if they have

purchased while 10 respondents never purchased in online shopping.

Table 13. Online shopping preference

Preferences f %

Financial services or banking 3 3

Book cinema/shows/movies 5 5

Do not buy online 11 11

Apparels 22 22

Anything 24 24

Shop things available only online 43 43

TOTAL 100 100

With 100 respondents, 43% said they prefer to shop things only available online, 24%

said they shop anything online 22% said they prefer to shop apparels online and 11% said

they do not shop online at all.

Table 14. Estimation of online expenditure (for the past six months)

Amount f %

50,001+ 2 2
 33

30,001-50,000 3 3

5,001-15,000 4 4

15,001-30,000 5 5

1,001-5,000 7 7

0-1,000 79 79

TOTAL 100 100

With 100 respondents, 79% said they had spent 0-1000 pesos I shopping online, 7%

said they spent almost 1001-5000 pesos online, and 5% said they had already spent

15001-30000 in online shopping for the past six months.

Table 15. Owning a computer

Item f %

NO 48 48

YES 52 52

TOTAL 100 100

With 100 respondents, 52% said they are currently owning a personal computer

while 48% said they do not own one.

Table 16. Having internet connection at home

 34

Item f %

NO 35 35

YES 65 65

TOTAL 100 100

With 100 respondents, 65% said they have an internet connection at home while 35%

do not have.

Table 17. Online shopping payment

Payment Method f %

Cheques 0 0

Wiretransfer 2 2

Debit card 4 4

Cash card 5 5

Credit card 7 7

Never bought online 15 15

Cash on delivery 67 67

TOTAL 100 100

With 100 respondents, 67% said they were paying cash on delivery, 7% said they

were using credit card, 5% said they were using cash card and 4% said they were using

debit card as their payment method when shopping online.

 35

CHAPTER V

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS

This chapter concludes the study. A summary of the research is presented, and

findings of the study are discussed and interpreted. Recommendations for further research

end the chapter.

Summary of Findings

1. How is online shopping described by the shoppers?

 Online shopping doesn’t require leaving home for shopping.

2. How are online shopping described by shoppers in terms of the following risks?

 Online shopping can be very risky in knowing the quality of the product to be

purchased since the consumer cannot personally test it him/herself.

 Online shopping can be very risky since the personal financial information of the

consumers are expose to the shipping and cargo company who will be responsible

in delivering their purchases.

 36

 Online shopping can be very risky since online shoppers can’t get to examine the

product when shop online because the products are only posted online without

having any idea of texture and mass.

 Online shopping can be very risky since shoppers may encounter bogus sellers

that would fraud their payment.

 Online shopping can be very risky since some of the seller or online shopping site

does have a very strict no return policy even when a consumer can encounter a

defective or malfunctioned merchandize.

3. What are the factors that influence shoppers to shop online?

 The usage of internet is a highly effective factor that influence shoppers to shop

online.

4. How does the attribute of online shopping impact customers’ behavior?

 Shoppers use internet mostly for social networking and mostly at home. Likewise,

shoppers prefer to shop online because of the variety it has compare to markets.

Additionally, shoppers prefer cash on delivery as means of payment method when

shopping online.

Conclusion
 37

This study aimed to evaluate factors affecting consumers’ behaviour of Tarlac

State University College of Business and Accountancy the towards online shopping. The

findings of this study revealed that the shoppers described online shopping as saving

shoppers from market crowd because they will not experience long lines and massive

amount of customers when they do shopping. Thus, online shopping can secure the

consumer from communicable and unwanted illnesses and diseases that he/she may get

from the crowd. It was also identified that product risks, financial risks, convenience

risks, non-delivery risks, and return policy risks were very risky by having a mean

ranging from 3.00-4.00 to have listed on the rating of very risky.

Moreover, findings revealed that convenience risks is the very risky among all the

risks that shoppers have encountered when shopping online as it got the highest scores

answered by the respondents. Along these convenience risks, the severely risky was

online shoppers cannot get to examine the product when shop online because they can’t

see it personally. This statement has resulted as the highest score among all the

convenience risks.

Furthermore, findings also revealed that majority have own computer at home and

an internet connection. It was also showed that shopping stuffs that are only available

online was the online shopping preference of the online shoppers. Cash on delivery was

the most favourable payment method of the shoppers.

Based on the analysis, findings revealed that the factors affecting the TSU-CBA

students towards online shopping is the usage of internet when shopping online with

highly effective factor to influence one’s self to purchase online. Thereby, shoppers are
 38

most influenced by the internet to shop online. With internet, they can search all the

products to order online in different online shopping sites. It was also perceived that the

usage of internet is mostly for social networking and mostly used at home.

Recommendations

For the CBA Students. They must cultivate their knowledge and skills especially

on their field to have appropriate application when there are risks on online shopping.

They must also build ideas that will enhance their possible professions as they are the

ones who will be possibly establish this kind of business.

For the Online Shoppers. They must be aware on giving their personal

information when shopping online because their identity might be misused and

compromised. They must also shop on the reliable online shopping sites. They must be

aware on the hidden charges of their ordered products.

For the Online Shopping Owners. They must build broader idea in expanding

their business by tracking trends and new fashion. They must also collaborate with new

life style that online shoppers can be fond of. They must think of great techniques that

would persuade people to shop online.

For the Future Researchers. Future studies might investigate the other benefits of

shopping online. Future researchers must create research about online shopping in other
 39

dimensions. It would be useful to conduct studies that would help people alleviate their

sufferings.

REFERENCES

Abadilla (2016). Philippine Daily Inquirer, Internet speed satisfaction in PH falls –

Deloitte survey. Retrieved from http://business.inquirer.net/207328/207328.

Abrugar (2013). Business tips ph, Internet Marketing for Businesses in the Philippines.

Retrieved from https://businesstips.ph/internet-marketing-for-businesses-in-the-

philippines/

Alam (2008). Reseach Gate, Young consumers online shopping: an empirical study.

Retrieved from

https://www.researchgate.net/publication/255584248_Young_consumers_online_shoppin

g_an_empirical_study
 40

Dejan (2007). Scribd, Analysis of Consumer Behaviour Online. Retrieved from

https://www.scribd.com/document/278289557/Analysis-of-Consumer-Behaviour-Online

Farber (2016). Fortune, Consumers Are Now Doing Most of Their Shopping Online.

Retrieved from http://fortune.com/2016/06/08/online-shopping-increases/.

Gong (2013). Journal Code, Factors influencing consumers' online shopping in China.

Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/JABS-02-2013-

0006?src=recsys&journalCode=jabs

Lucas (2012). Philippine Daily Inquirer, Filipinos top in online shopping research, but lag

in purchases. Retrieved from http://technology.inquirer.net/16152/filipinos-top-in-online-

shopping-research-but-lag-in-purchases

Mordani (2008). Elk journals, Customers perception towards online shopping. Retrieved

from

https://www.elkjournals.com/.../CUSTOMER%20PERCEPTION%20TOWARDS%20E..

Sailadavi (2014). Utas Epri, UNDERSTANDING CONSUMER ONLINE SHOPPING.

Retrieved from https://eprints.utas.edu.au/22877/1/Gao_whole_thesis.pdf.

Smith (2016). Pew Research Center, Online Shopping and E-Commerce. Retrieved from

http://www.pewinternet.org/2016/12/19/online-shopping-and-e-commerce/.

Torres (2015). Philippine Star Ngayon, 9 of 10 Pinoys prefer online shopping.

 41

Retrieved from

https://www.philstar.com/business/banking/2015/03/10/1431749/business.

APPENDICES
 42

Appendix A

Republic of the Philippines

Tarlac State University
COLLEGE OF BUSINESS AND ACCOUNTANCY
Department of Marketing Management
Tarlac City, Tarlac

SURVEY QUESTIONNAIRE

Dear Respondent,

The undersigned are conducting a study entitled “Factors Affecting

Consumers’ Behaviour of Tarlac State University - College of Business and

Accountancy towards Online Shopping” who humbly request you allow us

obtain data through this survey questionnaire.

 43

This is not a test; thus, there is no right or wrong answers. Please mark
the ones that best reflects your answers. Rest assured that all the data and
information gathered will be treated with full confidentiality and will be used for
academic purposes only.
Thank you very much for your cooperation.

Sincerely yours,

Guevarra, Justin C.

Llarves, Robert Henson S.

Manabat, Jinky D.

Saguid, Chistine Myriel G.

Name (optional):_______________________ Gender:_____

Age:_____

5. How is online shopping described byshoppers? (Please check)

Statements Strongly Agree Uncertain Disagree Strongly

Agree Disagree

1. I shop online as I can

shop with privacy at home

2. I shop online as I get

broader selection of
products online
 44

3. Online shopping gives

me better control on my
expenses

6. How are online shopping risks described by shoppers in terms of:

2.1. Product risks

Statements Strongly Agree Uncertain Disagree Strongly

Agree Disagree

1.Imight not get the exact

order

2. I might receive
malfunctioning
merchandises

3. It is hard to judge the

quality of merchandise
over internet

6.1. Financial risks

Statements Strongly Agree Uncertain Disagree Strongly

Agree Disagree

1. I feel that my credit

card details may be
compromised and misused

2. I might get overcharged

because of hidden charges

3. Sellers might fraud the

payment of the shoppers
 45

6.2. Convenience risks

Statements Strongly Agree Uncertain Disagree Strongly

Agree Disagree

1. Finding right product is

difficult

2. Late delivery of the

products

3. I cannot get to examine

the product when I shop
online

6.3. Non-delivery risks

Statements Strongly Agree Uncertain Disagree Strongly

Agree Disagree

1. I might not receive the

product ordered online

2. I do not shop online

because of non-availability
of reliable and well-
equipped shipper

6.4. Return policy risks

Statements Strongly Agree Uncertain Disagree Strongly

Agree Disagree

1. I do not purchase online

if there is no free return
shipment service available
 46

2. I purchase online only

when I can return the
product without any frills or
strings attached

3. I do not purchase online

without any fear if there are
strict cyber-laws in place to
nab and punish frauds and
hackers

7. What are the factors that influence shoppers to buy online?

Statements Strongly Agree Uncertain Disagree Strongly

Agree Disagree

Usage of Internet

Influence of family or
relatives

Past reviews given by the

online shoppers

Bandwagon effect

Consultation of friends

8. How does the attribute of online shopping impact consumers’ behaviour?

8.1. I use internet mostly for:

___ Browsing ___ Information Search ___ E-mails

___ Chatting ___ Work ___ Social Networking

 47

___ Blogging ___ Buying ___ Entertainment

___ Banking ___ Product Search ___ Do not use

___ Others (Please specify) ____________________________

8.2. I use internet mostly at:

___ Home ___ Work ___ School

___ Internet Cafe ___ Do not use

___ Others (Please specify) _____________________________

8.3. For how long you have been actively using the Internet:

___ Less than 3 months ___ 3-6 months ___ 6-12 months

___ 1-2 years ___ 2-3 years ___ 3-5 years

___ More than 5 years ___ Do not use at all

8.4. If you have been, then for how long you have been using Internet for shopping:

___ Less than 3 months ___ 3-6 months ___ 6-12 months

___ 1-2 years ___ 2-3 years ___ 3-5 years

___ More than 5 years ___ Do not use at all

If you have, then how many times have you bought things on Internet (during
8.5.

the past six months)

___ Never ___ 1-2 times ___ 3-5 times ___ 6-10 times

___ 11-20 times ___ 21 times or more ___ Not sure

8.6. What do you prefer buying from Internet?

___ Shops available only online ___ Book cinema/movies/shows

___ Financial services or banking ___ Apparels

___ Anything ___ Do not buy online

 48

8.7. In the past 6 months what would be your estimate of online expenditure?

___ 0-10,000 ___ 10,001-50,000 ___ 50,001-15,000

___ 15,001-30,000 ___ 30,001-50,000 ___ 50,001+

8.8. Do you currently own your own computer?

___ YES ___ NO

8.9. Do you have an Internet connection at home?

___ YES ___ NO

8.10. How do you pay for online shopping?

___ Credit card ___ Debit card ___ Cash card ___ Cheques

___ Cash on delivery ___Wiretransfer ___ Never bought online

Thank you for filling up these questionnaires

Appendix B

LIST OF TABLES

Table 1. Description of Online Shopping

Statements Mean

I shop online as I can shop with privacy at home 3.69

 49

I shop online to get broader selection of products 3.60

Online shopping gives better control on expenses 3.54

Table 2. Product Risks

Statements Mean

Might not get the exact order 3.70

Might receive malfunctioning merchandises 3.80

It is hard to judge the quality of merchandise over

3.82
internet

GRAND MEAN 3.77

Table 3. Financial Risks

Statements Mean

Credit card details may be compromised and misused 3.58

Get overcharged if shop online because of hidden

3.56
charges

Sellers might fraud the payment of the shoppers 3.67

GRAND MEAN 3.60

Table 4. Convenience Risks

Statements Mean
 50

Finding right product is difficult 3.74

Late delivery of the products 3.55

Cannot get to examine the product when shop online 4.24

GRAND MEAN 3.84

Table 5. Non-Delivery Risks

Statements Mean

Might not receive the product ordered online 3.85

Non-availability of reliable and well-equipped shipper 3.59

GRAND MEAN 3.72

Table 6. Return Policy Risks

Statements Mean

Don’t shop online if there’s no free return shipment 3.81

service available

Shop online when the product can be returned without

4.31
any frills or strings attached

Strict cyber-laws in place to nab and punish frauds

3.08
and hackers

GRAND MEAN 3.73

Table 7. Factors
 51

Statements Mean

Usage of Internet 4.13

Influence of family or relatives 3.86

Past reviews given by the online shoppers 3.96

Bandwagon effect 3.45

Consultation of friends 3.48

Table 8. Usage of internet mostly for

Usage f %

Do not use 1 1

Blogging 2 2

Work 4 4

Banking 5 5

Product search 6 6

Information search 7 7

Emails 8 8

Entertainment 10 10

Buying 11 11

Chatting 12 12

Browsing 15 15

Social Networking 19 19
 52

TOTAL 100 100

Table 9. Usage of internet mostly at

Place f %

Do not use 1 1

Work 4 4

Internet Café 10 10

School 26 26

Home 59 59

TOTAL 100 100

Table 10. Duration of being active using internet

Duration f %

Do not use at all 1 1

3-6 months 2 2

6-12 months 4 4

Less than 3 months 7 7

2-3 years 8 8
 53

1-2 years 9 9

3-5 years 33 33

More than 5 years 36 36

TOTAL 100 100

Table 11. Duration of being active using internet for shopping

Duration f %

More than 5 years 2 2

2-3 years 4 4

1-2 years 6 6

3-5 years 8 8

3-6 months 12 12

Do not use at all 13 13

6-12 months 16 16

Less than 3 months 39 39

TOTAL 100 100

Table 12. Period of purchasing things on internet (for the past six months)

Period f %

Not sure 7 7

Never 10 10
 54

11-20 times 10 10

21 times or more 10 10

6-10 times 12 12

3-5 times 22 22

1-2 times 29 29

TOTAL 100 100

Table 13. Online shopping preference

Preferences f %

Financial services or banking 3 3

Book cinema/shows/movies 5 5

Do not buy online 11 11

Apparels 22 22

Anything 24 24

Shop things available only online 43 43

TOTAL 100 100

Table 14. Estimation of online expenditure (for the past six months)

Amount f %

50,001+ 2 2

30,001-50,000 3 3

5,001-15,000 4 4
 55

15,001-30,000 5 5

1,001-5,000 7 7

0-1,000 79 79

TOTAL 100 100

Table 15. Owning a computer

Item f %

NO 48 48

YES 52 52

TOTAL 100 100

Table 16. Having internet connection at home

Item f %

NO 35 35

YES 65 65

TOTAL 100 100

Table 17. Online shopping payment

Payment Method f %

Cheques 0 0

Wiretransfer 2 2

Debit card 4 4
 56

Cash card 5 5

Credit card 7 7

Never bought online 15 15

Cash on delivery 67 67

TOTAL 100 100

JUSTIN C. GUEVARRA

09506678618

justin.06@yahoo.com

PERSONAL BACKGROUND
Date of Birth : December 6, 1997
Place of Birth : Capas, Tarlac
Civil Status : Single
Father's Name : Augusto Guevarra
 57

Mother's Name : Jovita Guevarra

ACADEMIC RECORDS

Tertiary School
Tarlac State University
San Vicente, Tarlac City
BSBA Marketing Management
2016 – 2018

High School
Cristo Rey High School
Cristo Rey, Capas, Tarlac
2007 – 2012
Grade School
Cristo Rey Elementary School
Cristo Rey, Capas, Tarlac
2001 – 2007

ROBERT HENZON S. LLARVES

09564071779

henzon_llarves5@yahoo.com

PERSONAL BACKGROUND

Date of Birth : February 8, 1999

Place of Birth : Concepcion, Tarlac
 58

Civil Status : Single

Father's Name : Bernardo Llarves
Mother's Name : Eloisa Llarves

ACADEMIC RECORDS

Tertiary School
Tarlac State University
San Vicente, Tarlac City
BSBA Marketing Management
2016 – 2018
High School
Benigno S. Aquino National High School
Concepcion, Tarlac
2012 – 2015
Grade School
Tibag Elementary School
Tibag Tarlac City
2007 – 2012

JINKY D. MANABAT

09204122864

jinkymanabat@gmail.com

PERSONAL BACKGROUND
Date of Birth : January 10, 1993
 59

Place of Birth : Concepcion, Tarlac

Civil Status : Single
Father's Name : Edgardo Manabat
Mother's Name : Aida Manabat

ACADEMIC RECORDS

Tertiary School
Tarlac State University
San Vicente, Tarlac City
BSBA Marketing Management
2016 – 2018
High School
Balutu National High School
Balutu, Concepcion, Tarlac
2006 – 2010
Grade School
Panalicsican Elementary School
Panaliciscan, Concepcion, Tarlac
2000 – 2006

CHRISTINE MYRHIEL G. SAGUID

09219299446

myrhielgravino@gmail.com

PERSONAL BACKGROUND
 60

Date of Birth : September 8, 1994

Place of Birth : Capas, Tarlac
Civil Status : Single
Father's Name : Walter Saguid
Mother's Name : Maria Fe Saguid

ACADEMIC RECORDS

Tertiary School
Tarlac State University
San Vicente, Tarlac City
BSBA Marketing Management
2016 – 2018
High School
Cristo Rey High School
Cristo Rey, Capas, Tarlac
2007 – 2012
Grade School
Cristo Rey Elementary School
Cristo Rey, Capas, Tarlac
2001 – 2007