Chapter II

Review of Related literature and Studies

This chapter concentrated on the review of foreign literature, foreign studies local
literature, and local studies from selected research materials, article and books that
aimed to support the findings and conclusions derived from the study.it focuses on
motivating factors of buying and selling in online shopping.

Foreign literature

(Author: Jodel Balastigue 2014)

The internet is a meeting place where shoppers and buyers conduct business the
number of shoppers and volume of business both continue to surge.

The Pros of online shopping

From the consumer’s view, three factors make online shopping attractive:
1) Choices Consumers in general enjoy having choices before they decide whether to
buy or what price they are willing to pay for a product.
2) Vast Selection Online, products can be displayed, reviewed, and compared at no
cost in time or funds. This feature makes online shopping much more efficient than
having to visit store after store.
3) Quick Comparison Consumers can quickly compare products in terms of price,
quality, shipping terms, etc. before making a final choice.
The Cons of Online Shopping
With all the good features of online shopping come a few drawbacks. Certain buying
decisions require information that can best be found in traditional stores. For example,
when buying personal items like perfume or clothing, the consumer needs to see, feel,
smell, or test. (Elias M. Award 2015)
According to the book of Kevin, Hartley, Rudelius,2013 “Marketing: The core 3/e.

The purchase decisions process consists of five stages.

The problem Information alternative purchase post purchase

recognition: search: evaluation decision: behavior:
Perceiving a Seeking Assessing buying value in consumption
Need value value value or use

Influence on the consumer purchase decision process come from both internal and
external sources.

Local literature

Online shopping started on 1979 by English entrepreneur named Michael Aldrich. His

system connected a modified domestic tv to a real time transactions processing via a

domestic telephone line. Today online shopping becomes the hot trend of today’s

generation because of the different benefits that it gives through the buyers and sellers.

Consumers are more confident about purchasing a product when they have done their

own research online (eunyunis march 2014).

According to svonavec (September 2017), online shopping has proved to have many

positive advantages for consumers. Online stores are open 24 hours a day, so that the

issue of a store closing before the consumer can make it on time exceptionally during
the holiday’s shoppers do not have to bother with the long exasperating lines. Due to

lack of operating cost. Online retailers can sell goods at lower prices so that this makes

the experience of online shopping not only faster and convenient, but it is also for

cheaper that going to the physical stores. Although online shopping has advantages,

there are many downsides to doing online business. Back order goods can be proved to

be exceeding trying for shoppers. Especially during holidays, shoppers also lose the

person-to-person communication that online retailer can provide.

Foreign Studies

Studies, like Bosnjak, Galesic, and Tuten (2011) and Chiou and Ting (2014),

have examined online purchase intention(s). Other related themes such as emotional

effect of online shopping (LaRose & Eastin, 2011), online shopping motivations (Lee,

Kim, & Fairhurst, 2014), and online WS (Anderson & Srinivasan, Bai, Law, & Wen,

2014) have been comprehensively deliberated and researched. Conclusively, it has

been shown that online shoppers’ complex buying behavior is influenced by internal

shopping values as well as external web atmospheric cues.

However, there is a vast gap in the existing literature on buying behavior and

consumption pattern in the Asia-Pacific region. The majority of studies have focused on

developed economies such as the United States or European countries (Ha & Stoel,

2012). Studies on Indian shoppers’ motives for buying—internal (shopping values) and

external cues (web atmospheric factors)—are far and few in the domain of marketing

and online merchandising.

Local studies

The hottest e-commerce markets in southeast Asia, and the Philippines comes right at

the top of the list. According to the study by ken research (2014), the Philippines’ e-

commerce market can expect a stupendous compound annual growth rate of 101.4

percent from 2013 until 2018, thanks to rising internet and social media adoption (ken

research 2014).

Southeast Asia, including the Philippines has become a virtual gold mine for online

shopping, Proof of that many online shopping malls are now open mode, Lazada is one

of the largest online shopping websites in southeast Asia. It announced that it raised

$250 million from a group of investors including Tesco PLC. Access industries

investment AB kinnevik and verlinvest. According to Tesco as Southeast Asia’s 600

million consumers begin to use smart phone technology to access of sellers online.

(Tesco, March 2014)