THE EFFECT OF E-COMMERCE TO CUSTOMERS OF FOOD

ESTABLISHMENTS IN DIPOLOG CITY AMIDST

THE COVID-19 PANDEMIC: A SURVEY

A Thesis Proposal Presented to

The Faculty of the Graduate School

Medina College

Ozamiz City

In Partial Fulfillment

Of the Requirements for the

Degree of Master in Business Administration

MARY ROSE BARRIOS-TOLENTIN

November 2021
 Chapter 1
INTRODUCTION

Background of the Study

The outbreak of COVID-19, labelled as a black swan event, causes significant

damage globally due to its fatality. The COVID-19 pandemic has expanded across the

world by creating shocks in almost all the industries due to the restrictions, curfews, stay-

home and work-from-home policies, and quarantines. As a result of the health and

economic crisis with the COVID-19 pandemic, the tourism sector got severely affected

(Kumudumali, 2020). The current coronavirus pandemic (COVID-19) has led the world

toward severe socioeconomic crisis and psychological distress. It has severely hit the

economy; but the service sector, particularly the hospitality industry, is hard hit by it. It

increases the sense of insecurity among the employees and their perception of being

unemployed, adversely affecting their mental health (Khan, Niazi, Nasir, Hussain &

Khan, 2021).

The restaurant business sector plays an essential role in the economy of a country

even though many of them were small and medium-sized restaurants. However, the

recent health crisis caused by COVID-19 quickly turned into a financial downturn due to

the restrictions imposed by most countries to control the expansion of this pandemic. This

unexpected crisis has particularly affected the restaurant business. Restaurants were

forced to either close or operate with many limitations and most often only takeaway and

delivery services were allowed. Although many restaurateurs have experienced and

survived many crises in recent decades, this new pandemic has devastating effects on the

world economy and was never before experienced in modern times. For the first time in

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history, the world is facing a crisis that has suspended the future of all types of

restaurants, with an extraordinarily important weight on the world economy and

especially on destinations with a greater tourist and gastronomic vocation, as well as the

thousands of people who work in and depend on this industry to survive (Madeira, Palrao

& Mendes, 2021).

In order for the any business to survive, it must learn to adapt in the present

situation. As an onset of the pandemic, restaurants had to adapt e-commerce and digital

solutions. The pandemic has accentuated the trend towards greater adoption of e-

commerce and e-marking using primarily the social media and the birth of different e-

commerce companies offering food delivery services (United Nations Conference on

Trade and Development, 2020). E-marketing becomes prominent and an instant solution

for the restaurant to survive and for the customer to avail its food and services. E-

marketing has become a new phenomenon that has started to spread quickly and grow

with the development of information and communication technology (ICT) amidst the

pandemic. Accordingly, e-marketing is defined as a process through which the firm uses

internet and other reactive technologies in order to interact with its customers (Qashu &

Saley, 2018).

The pandemic also paved the way for the on-line to offline (020) e-commerce

model. It is a uniquely combines the benefits of both online and offline modes to help

businesses achieve enhanced customer reach, larger market share and extended marketing

capabilities, among other improvements (Shang & Yang, 2015). This e-commerce model

was mostly used by Small-Micro Enterprises (SMEs) such as restaurants and other

establishments nationwide as well as in our locality.

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 In Dipolog City, still with the looming threat of the pandemic, restaurant/food

establishment owners inclined heavily on the use of the internet and technology for

marketing. The internet becomes the venue for e-commerce. Social media becomes the

avenue for e-marketing and food delivery services applications becomes the new means

for restaurant owners to deliver their food services to their customers. Thus, it is for this

purpose that the researcher aims to investigate the effect of e-commerce to customers of

food establishments in Dipolog City amidst the pandemic brought upon by CoVid19, this

academic year 2021-2022.

Theoretical Framework

This study shall be primarily anchored on Uses and Gratification Theory (UGT)

as postulated by Levy & Windahl (1989) in relation to Expectancy Confirmation-

Disconfirmation Theory on Consumer’s Satisfaction postulated by R. Oliver (1980).

UGT is an influential sociological paradigm that explains which social and psychology

needs motivate consumers to select particular platforms. The advances in internet

technologies have enabled e-commerce platforms to transform retail and logistics

operations that create more economic benefits as reductions of costs and delays,

triggering the roles of UGT in explaining usage motivation (Li, Yang, Chen & Yao,

2018).

UGT is an approach to understanding why and how people actively seek out

specific media to satisfy specific needs. UGT is an audience-centered approach to

understanding mass communication. It postulates that media is a highly available product

and the audiences are the consumers of the same product. Furthermore, It assumes that

3
audience members are not passive consumers of media. Rather, the audience has power

over their media consumption and assumes an active role in interpreting and integrating

media into their own lives (Menon & Meghana, 2021). Also, UGT was used to clarify the

causes why people choose a specific type of medium with a view to improving the

understanding of social and individual gratifications and also to explain users’ motives

when interacting with a media (Hossain, 2019).

During the pandemic, most of the consumers use e-commerce platforms to

interact and purchase products from retailers while retailers can provide consumers with

various online shopping opportunities. In this regard, UGT fundamentally helps to

examine what role consumer behavior and motivation plays in consumers' online

interactions with firms. If firms can effectively fulfill consumer needs with products via

online platforms, consumers will be more willing to continue to interact with firms

(Wagner, Schramm-Klein& Steinmann, 2020).

Further, UGT discusses the effects of the media on people. It explains how people

use the media for their own need and get satisfied when their needs are fulfilled. In other

words, it can be said that the theory argues what people do with media rather than what

media does to people. Also, this theory has a user/audience-centered approach. Even for

communication, say – interpersonal, people refer to the media for the topic to discuss

among themselves. By referring the media, they gain more knowledge and exposure to

the world beyond their limited eyesight (Wagner et al., 2020).

Stafford, Stafford & Schakade (2014) pointed out that understanding UGT in

application to E-commerce connotes three main categories, as follows; content, process

and social. Content refers to the need for specific information and being gratified by it.

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This precludes the used of e-marketing in the social media as an integral part of e-

commerce. On the other hand, process connotes that users gain gratification from the

experience of purposeful navigating or random browsing the internet in its functional

process. This precludes the used food delivery applications as an integral part of e-

commerce in online to offline model. Finally, social encompasses a wide range of

forming and deepening social ties. This embraces feedback mechanisms, like comments

and suggestions as well as recommendations through the internet. Transcending UGT as

a theory in the precept of E-Commerce, Sushmita (2020) contend that E-commerce

component were E-Marketing (Kaur, Pathak & Kaur, 2015), E-commerce

platforms/applications (Khan, 2016) and E-Commerce Customers Feedback ((Dhahak &

Huyseynov, 2020).

It is also important to averse that user or audience plays an important role in UGT.

The challenges related to user acquisition as well as retention point to the exigency of

looking into the drivers of adoption behavior along with continuation intention plays a

pivotal role in the over-all users or audiences’ gratification (Ashraf, Hou & Ahmad,

2018). User’s demographical profile are essential in understanding consumers’ behavior

in relation to gratification and continuation intentions (Kaur, Dhir, Chen & Rajala, 2019).

Thus, demographical profile of the user such as age, sex, educational attainment, civil

status and occupation are essential in determining gratification.

On the other hand, the Confirmation-Disconfirmation Theory on Consumer’s

Satisfaction is a cognitive theory which seeks to explain post-purchase or post-

adoption satisfaction as a function of expectations, perceived performance, and

disconfirmation of beliefs (Mills, 2018).

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 Expectations, according to Mills (2018), refer to the attributes or characteristics

that a person anticipates or predicts will be associated with an entity such as a product,

service, or technology artifact. Expectations are posited to directly influence both

perceptions of performance and disconfirmation of beliefs, and are posited to indirectly

influence post-purchase or post-adoption satisfaction by way of a mediational

relationship through the disconfirmation construct. Pre-purchase or pre-adoption

expectations form the basis of comparison against which the product, service, or

technology artifact is ultimately judged.

Perceived performance refers to a person’s perceptions of the actual performance

of a product, service, or technology artifact. According to expectation confirmation

theory, perceptions of performance are directly influenced by pre-purchase or pre-

adoption expectations, and in turn directly influence disconfirmation of beliefs and post-

purchase or post-adoption satisfaction. Perceived performance is also posited to indirectly

influence post-purchase or post-adoption satisfaction by way of a mediational

relationship through the disconfirmation (Mills, 2018).

Disconfirmation refers to the judgments or evaluations that a person makes with

respect to a product, service, or technology artifact. These evaluations or judgments are

made in comparison to the person’s original expectations. When a product, service, or

technology artifact outperforms the person’s original expectations, the disconfirmation is

positive, which is posited to increase post-purchase or post-adoption satisfaction. When a

product, service, or technology artifact underperforms the person’s original expectations,

the disconfirmation is negative, which is posited to decrease post-purchase or post-

adoption satisfaction (i.e., to increase dissatisfaction) (Mills, 2018).

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 Post-purchase or post-adoption satisfaction refers to the extent to which a person

is pleased or contented with a product, service, or technology artifact after having gained

direct experience with the product, service, or artifact. Expectation confirmation theory

posits that satisfaction is directly influenced by disconfirmation of beliefs and perceived

performance, and is indirectly influenced by both expectations and perceived

performance by means of a mediational relationship which passes through the

disconfirmation construct (Mills, 2018).

Said theory indicates that customers compare a new service experience with a

standard they have developed. Their belief about the service is determined by how well it

measures up to this standard. The theory presumes that customers make purchases based

on their expectations, attitudes, and intentions. Later, during or after consumption, a

perception of performance occurs as customers evaluate the experience. The process is

completed when customers compare the actual service performance with their pre-

experience standard or expectation. The result is confirmation, satisfaction, or

dissatisfaction. The level of expectations represents pre-consumption expectation.

Performance refers to the customer’s perception of service. Disconfirmation results if

there is a discrepancy between expectations and performance. Finally, satisfaction is

determined by combining the satisfaction outcomes for the various attributes of the

service. The first three components affect satisfaction but it is not determined whether or

not these lead to satisfaction or dissatisfaction (Mills, 2018).

The foundation for satisfaction lies in “mankind’s ability to learn” from previous

experiences. Likewise, user’s preferences are constantly being updated by way of the

learning process. Satisfaction as a process of evaluation between what was received and

7
what was expected, which is the most widely adopted description of satisfaction in most

current literature. Satisfaction can be viewed as an outcome of a consumption activity or

experience; which is also refers to as a process. Expectancy disconfirmation theory

pointed out proposed that a user’s satisfaction level is a result of the difference “between

expected and perceived product performance, and expectations as predictions of future

performance”. The inclusion of expectations proposes that products satisfying high

expectations are predicted to generate greater customer satisfaction than products that

meet low expectations. Some other researchers employ perceived performance as an

additional predictor of satisfaction (Aigbavboa & Thwala, 2013).

Satisfaction (positive disconfirmation) is known to occur when product or service

is better than expected. On the other hand, a performance worse than the expected results

is dissatisfaction (negative disconfirmation). In this theory, expectations originate from

beliefs about the level of performance that a product/service will provide, which is the

predictive meaning of the expectations concept. It is a person’s feeling of pleasure or

disappointment resulting from comparing a product’s perceived performance (or

outcome) in relation to his or her expectations ((Aigbavboa & Thwala, 2013). Further,

satisfaction led to repeat purchase and loyalty (Andreson & Srinivasan, 2018).

Figure 1 shows the theoretical and conceptual paradigm of the present

investigation.

Conceptual Framework

Figure 2 shows the schematic diagram of the present investigation. The

independent variable shows the E-commerce in food establishments in Dipolog City

8
during the CoVid19 pandemic. The intervening variable shows the profile of the

respondents-customers in terms of age, sex, education attainment, civil status and

occupation and the type of gadget used (Ashraf et al., 2018; Kaur et al., 2019). The

dependent variable shows the extend effect of e-commerce (Sushimita, 2020) to customer

in terms of E-Marketing (Kaur, Pathak & Kaur, 2015), E-commerce

platforms/applications (Khan, 2016) and E-Commerce Customers Feedback ((Dhahak &

Huyseynov, 2020).

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 Uses and Gratification Theory
 Content
 Process
 Social
(Levy & Windahl, 1989)

E-Commerce Component
(Sushmita, 2020)
E-Commerce
 E-Marketing (Kaur, Pathak &
Kaur, 2015) Online to Offline Model
 Platforms and Applications (Ping, Lin & Huang,
(Khan, 2016) 2018).
 Customer’s Feedback
(Dhahak & Huyseynov, 2020)

E-Commerce in Food
Establishment Amidst CoVid19
Pandemic
(Sardjono, Selviyanti, Mukhli & Tohir,
2020; Qashu & Saley, 2018)

Expectancy Confirmation-
Disconfirmation Theory on
Consumer’s Satisfaction
(Oliver, 1980)

E-Loyalty
Customer’s Expectation
(Andreson & Srinivasan,
2018; Oliver, 1980)

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 Confirmation
E-Satisfaction
Disconfirmation (Serenko & Statch, 2019;
Oliver, 1980)

Dissatisfaction

Figure 1. Theoretical and Conceptual Paradigm of the Study

Independent Variable Dependent Variable

Effect to Customer

E-Commerce in Food  E-Marketing

Establishments in  E-Commerce
Dipolog City Platforms and
Applications
 E-Commerce
Customer’s
Feedback

Profile of the
Respondents
 Age;
 Sex;
 Educational
Attainment;
 Civil Status;
 Occupation;
 Type of Gadget
Used

Intervening Variable
11
 Figure 2. The Schematic Diagram of the Study

Review of Related Literature

Hospitality Industry Amidst the CoVid19 Pandemic

In the global economy, hospitality industry plays a prominent role in economic

development, and the increase in the hospitality industry may positively influence

economic growth. A significant number of previous scholars have considered the

considerable task of the hospitality industry in economic development. Accordingly,

hospitality industry is considered one of the driving forces for economic development.

The benefits of hospitality industry to economic growth are creating the highest foreign

exchange, employment opportunities, and revenue for a country. hospitality industry is

the fastest growing industry in developed and developing economies, and it is considered

the largest source of employment opportunities with the highest revenue creator in an

economy (Gamage, Illangarathne, Kumudumali, & Nedelea, 2020).

The COVID-19 pandemic situation badly hit on the economic development of

almost all countries in the world. It caused the largest downfall of the economy in history.

More advanced economies like the USA, UK, Japan, and Europe are also experiencing

the downfall of their economies due to the spread of COVID-19. The World Trade

Organization forecasts that trade activities may drop by 32% in 2020. The poor economic

performance occurs due to the weak demand, supply chain disruptions, travel restrictions,

and the Lockdown policy, which are preventive actions for further spread of the virus.

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Those restrictions may pose pressure on the economic growth of the world. The

International Labor Organization (ILO) estimates the impact of the COVID-19 pandemic

to increase global unemployment between 5.3 million to 24.7 million (ILO, 2020). This

leads to the loss of economic activities with loss of jobs. The COVID19 outbreak impacts

all sectors of the economy, such as manufacturing, tourism, financial, service, trade,

transport, and people in every field in every country with more significant economic

shocks. Due to the uncertainty and fear of the pandemic, most firms are more likely to

have low profits as people are advised to stay at home, with travel bans and cancellation

of events, and the prohibition of mass gatherings (Horowit, 2020; Elliot, 2020). The

COVID-19 outbreak causes sudden economic disruptions with demand and supply

shocks in almost every sector of the economy (El-Erian, 2020).

The business sector, families and the masses are not excluded in the effect of the

Pandemic. Luzon in the Philippines imposes extreme community quarantine all over the

area that creates huge adjustments to the constituents of the country. While the cure in the

virus is not yet available, slowing down the virus is the intervention that the government

is doing. The effects of the disease have been felt all over the world. The challenging

times have left most of the family to suffer due to no work, no pay policy that is imposed

by some small companies. In the Philippines, the country leader has extended the

lockdown of the country’s main island of Luzon, including Manila, until the end of April

which was supposed to due in the Mid of April, while it is uncertain that the lockdown

could be extended, the effects still continuous. There is no known effect of the

coronavirus in any factor, but the decision which is based on slowing the transmission

may have a positive effect. While there is a favorable situation happening in the world, it

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should not be credited to the deadly coronavirus but should be credited to the decision by

the authorities. Pre-prints and research publications regarding coronavirus also increase.

There is also skyrocketed used of Video Conferencing application that helps others to

learn about the new trends in technology. Zoom, Google Meet, are just a few of the

video-conferencing app that has seen a massive rise in downloads since quarantines were

imposed around the world, which is now being used by millions for work and social

gatherings (Pastor, 2020).

The Rise of E-Commerce Amidst Pandemic

Covid-19 spread can occur through direct physical contact, so that precautions are

taken through social distancing. Social distancing needs to be done to provide physical

space between people to avoid disease. One way to do social distancing according to

WHO's recommendations is to do all activities from home. Which causes educational

institutions to conduct online education, companies make work from home policies, as

well as various other policies. Almost all activities were affected by covid-19, including

economic activities. Demand for basic needs and health goods has increased while other

goods have decreased. In this case, almost all requests for goods are carried out at home,

which must then be sent via expedition service. Demand for goods is done online by

utilizing e-commerce and mobile commerce. In addition to ecommerce and mobile

commerce that have existed since before covid-19, several large companies have also

begun implementing sales systems that utilize e-commerce as well mobile commerce.

This needs to be done because offline sales are likely to decline, so as long as the

activities carried out at home product sales do not decline (Sardjono, Selviyanti, Mukhli

& Tohir, 2020).

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 The development of technology has a great impact on human life, including in

business matters. Currently, almost all business activities have been carried out by

utilizing technology, both in whole and in part. Businesses cannot leave technology in

developing business, inevitably businesses must utilize technology. This development

then gave rise to a term called e-business in which businesses not only used technology

as a tool but also used the internet as a means. The internet is used in every business

transaction, from making business strategies to buying and selling products. In its

development the emergence of e-business then gave rise to various other facilities that

facilitate business with the use of the internet (Sardjono et al., 2020).

E-commerce is one of the impacts that occur due to the development of the world

of technology, in this case business transactions. Initially it must be done face to face

between the seller and the buyer, through e-commerce can be done by utilizing computers

and the internet. The development of technology then also made this form of e-commerce

develop into mobile commerce. That is a simpler form of e-commerce, because through

mobile commerce business transactions can be accessed through mobile devices which

are now always an inseparable part of humans. Consumers spend more time online

purchasing via mobile devices than computers. This is due to the use of the internet today

which can be accessed through mobile devices not just computers. Because of practical

reasons humans more often access cellular devices than computers (Sardjono et al.,

2020).

The use of e-commerce and mobile commerce is considered to have various

conveniences that make consumers comfortable doing transactions online. Consumers are

given various alternative choices according to their needs, then can do a comparison in a

15
short time. This results in convenience to foster customer confidence. Besides the

development of technology makes the development of e-commerce and mobile

commerce even higher. Currently, the use of e-commerce and mobile commerce is

considered to be able to provide comfort and convenience in transactions carried out by

consumers. Ease of transaction provides a pleasant experience for consumers which is

then used as an excuse to become a new shopping habit. This shopping experience then

becomes a trend that continues, even in covid-19 conditions this trend becomes the first

and only choice that can be done from inside the house (Sardjono et al., 2020).

E-Commerce: Its Concept and Definition

E-Commerce is most considered and chosen way of purchasing different types of

products and services. Nowadays E-commerce has to be replaced with traditional

purchasing. The only reason behind is a lot of variety is available to customers to choose

their own product in fingertips from all over world. Due to this covid19 pandemic, E-

Commerce business also facing some challenges which are not expected before

(Sushmita, 2020).

Also, Electronic commerce, or e-commerce, is the buying and selling of goods

and services on the Internet. Other than buying and selling, many people use Internet as a

source of information to compare prices or look at the latest products on offer before

making a purchase online or at a traditional store. EBusiness is sometimes used as

another term for the same process. More often, though, it is used to define a broader

process of how the Internet is changing the way companies do business, of the way they

relate to their customers and suppliers, and of the way they think about such functions as

marketing and logistics (Khan, 2016).

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 Modern communication and information technologies can enable change in

organization structures and business processes, and they influence the competitive

advantage of firms. Under their influence’s markets gain increasing importance as a

coordination form. But also, events within the market and market structures are

experiencing changes due to the increasing utilization of modern telecommunication

media. The drivers, nature, and magnitudes of these changes are the focal points and

enablers of electronic commerce and are addressed in this contribution. Information

technology is vital for a modern firm’s optimal performance today, as it augments the

firm’ s capability to coordinate business transactions within the firm, but also among

firms such as between buyers and supplier (Wigand, 2017).

Within our economic system, electronic commerce must be seen in the context of

markets. Markets are places of exchange. It is here where supply and demand meet. A

market is conceived to consist of all goal-seeking firms, government agencies, or

individuals producing some commodity, as well as all firms, government agencies, and

individuals purchasing the commodity. Within this market, the exchange of goods and

services takes place. When the market is competitive, it is characterized by (1) many

buyers and sellers, (2) homogeneous products, (3) easy entrance to and departure from

the market, (4) low switching costs for consumers who wish to choose among suitable

goods from competing firms, and (5) the availability of perfect information. Information

is an essential ingredient for the functioning of any market and is exchanged frequently

between buyer and seller, such as when price information is exchanged. Perfect

information denotes that consumers will have all the information (e.g., through

17
advertising, news media) they need to make informed, rational decisions about which

goods or services to purchase in the marketplace (Wigand, 2017).

Thus, electronic commerce is a concept that is gaining acceptance in businesses.

Hence, it is defined as the conduct of commerce in goods and services, with the

assistance of telecommunication and telecommunication-based tools such as the Internet.

E-commerce is often used in a much broader sense, to mean essentially the same as

“electronic business” (e-business) but the reality is e-commerce is a sub component in e-

business .Where e-business refers to company operations conducted with the help of

Internet and on-line technologies, this includes for example, buying and selling products

with digital cash via Electronic Data Interchange (EDI) (Kabugumila, Lushakuzi & Mtui,

2016).

It is noted that e-business is made up of information exchanges that are

electronically affected, that is either within an organization or with external stakeholders

supporting the range of business processes, since businesses undertakings are very

heterogeneous groups having various patterns of activities which range from engaging in

producing agricultural products to the very sophisticated engineering ventures in inside

and outside the country’s markets. These Businesses may be small, medium or large scale

(Cudjoe, 2014).

Components of E-Commerce

E-commerce (electronic commerce) is the buying and selling of goods and

services, or the transmitting of funds or data, over an electronic network, primarily the

internet. Accordingly, e-commerce works when it had the three (3) essential component,

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as follows; e-marketing, e-commerce platforms/applications and e-commerce customers’

feedback.

E-Marketing

It was underscored that E-commerce provides the capability of buying and selling

products, information and services on the Internet and other online environment while E-

marketing is “moving elements of marketing strategies and activities to a computerized,

networked environment such as the Internet. Internet marketing as “the process of

building and maintaining customer relationships through online activities to facilitate the

exchange of ideas, products and services that satisfy the goals of both parties. E-

Marketing is a mixture of all the activities of advertising, promotion publicity deciding

the look and feel of the product, how it will be sold and sent to the customer (Kaur,

Pathak & Kaur, 2015).

These technologies include the Internet media and other digital media such as

wireless mobile media, cable and satellite. They have defined service quality as the

ability of the organization to meet or exceed customer expectations. Internet marketing

will include the use of a company web site in conjunction with online promotional

techniques such as search engines, banner advertising, direct e-mail and links or services

from other web sites (Kaur et al., 2015).

Within the precepts of e-marketing, the internet can be used as identifying,

anticipating and satisfying to its customers. Identifying precludes that he Internet be used

for marketing research to find out customers’ needs and wants. Anticipating precludes

that the Internet provides an additional channel by which customers can access

information and make purchases – understanding this demand is key to governing

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resource allocation to e-marketing as explained while Satisfying connotes as a key

success factor in e-marketing is achieving customer satisfaction through the electronic

channel, this raises issues such as is the site easy to use, does it adequately (Kaur,

Kalyanam & McIntyre, 2017).

E-Marketing can be done using the following methods, vis-à-vis;

 Search Engine Market (SEM) which allows firms to target consumers by placing

ads on search engines, has proven to be an effective audience acquisition strategy.

Unlike traditional online advertising, advertisers pay only when users actually

click on an ad. When successfully implemented. Most online advertising

campaigns have two main objectives, brand development and direct response

(Kaur et al., 2015);

 Online Public Relations is managing publicity about an organization and its

brands, products or web sites through its online presence and third-party web sites

and other digital media. It includes providing press releases via email or on

website and submitting them to online news feeds (Tung, 2018);

 E-Mail Marketing is a method of distributing information about product or

service or for soliciting feedback from customer about a product or service

through Email. Email addresses of customers and prospective customer may be

collected or purchased. Email marketing is a form of direct marketing. Special

deals and postcard by email marketing Increase profit and sales, promote products

and services, last minute special offer (Tung, 2018).

 Banner is a placement of ads on website for a fee. The offline equivalent of this

form of online marketing would be traditional ads on newspaper or magazines.

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 Banner service is relatively expensive. Banner ads are graphical presentations

placed on web pages with the purpose of attracting visitors to click on the ad and

visit the advertised website (Smith & Chaffey, 2017);

 Viral marketing uses email to transmit a promotional message to another

potential customer. It is very useful in reaching a large number of people rapidly

like a computer virus. The contents of email can be a video clip, a TV ad, a

cartoon, a funny picture, a poem, a song, a political message or a news item which

must be so interesting and amazing that makes people pass it on. In comparison to

the traditional marketing, viral marketing equals that of a "word of-mouth" (Smith

& Chaffey, 2017); and

 Blog marketing is the process of reaching a business prospects through the use of

a blog. Blog market is an act of positioning comments, expressing opinions or

making announcement in a discussion forum and can be accomplished either by

hosting your own blog or by posting comments and URL in other blogs related to

your product or service online. Blog marketing may also help improve a Website's

rankings in search results and is often used for search engine optimization (SEO)

purposes (Kaur et al., 2017).

E-Commerce Platforms/Applications

Internet and e-commerce are closely wrapped towards developed countries. But

they can achieve tremendous benefits to developing countries if it is applicable as an

ideal business purpose. Ecommerce is a revolution in business practices (Khan, 2016). It

is important to underscore that e-commerce evolves within the bounds of the internet

embracing all applications or programs created and devoted to such used.

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 E-commerce application can be classified as follows;

 Electronic Markets. It is an application where buyer is presented a range of

product and services available in a market so that they can compare prices and

make the purchase (Khan, 2016);

 Electronic Data Interchange. It is a standardized system where computers

communicate with one another without printed documents like order forms or

invoices. It eliminates delay and errors otherwise seen when paper handling is

involved (Khan, 2016); and

 Internet Commerce. It is an application which is most familiar with; the medium

used to advertise, and sell innumerable products and services; the purchase of

goods is then shipped to the buyer (Khan, 2016).

E-Commerce Customer’s Feedback or Online Consumer Review

E-Commerce Customer’s Feedback also known as online consumer reviews

(OCRs) have become an important topic on various types of e-commerce platforms. A

great deal of online business owners provides a functionality on their online platforms to

enable their customers to leave comments about their products and services. Consumers

who buy online lean strongly on other users' reviews to evaluate the quality of the

product. Unlike traditional channels, where customers can see the products directly,

online channels do not provide customers with the opportunity to look directly at the

product. Instead, customers get product information in two ways: Information that sellers

describe (images, sizes, etc.) and online reviews that other customers provide. Online

consumer review plays an important role as an influencer factor, with the fast

22
proliferation of the Internet, consumers share and publish their post-purchase experiences

through online communications. The information search from personal sources has been

the main subject of numerous studies of consumer behavior and it has been broadly

reported that personal information sources apply an interpersonal influence on the

consumer, especially when their arguments or characteristics can persuade the consumer.

Additionally, OCRs are considered to be very important in helping consumers' purchase

decisions (Dhahak & Huyseynov, 2020).

Nowadays online shopping becomes more and more popular among social media

and e-commerce. More customer is purchasing online and sharing their opinions and

comments in the online reviews providing much information and experience about

products and services to other customers. The OCRs might be helpful to develop a highly

effective marketing strategy for businesses so that customers can write reviews to help

future customers get their products and many businesses have already started adopting

the strategy of an online consumer review. However, with all the benefits that online

consumer reviews offer, some companies are still not aware of how important and serious

it is and how it can influence their customers' purchase decisions (Dhahak & Huyseynov,

2020).

E-Commerce Model/Categories

E-Commerce had different models/categories because it is used on various field

of business, to wit;

 Business to Business (B2B). It is e-commerce representing electronic exchange

of products, services and information between businesses. Noted, that some of

the B2B e-commerce applications are product and supply exchange

23
 websites, online directories, that feature an option to search for

particular products and services and thus initiate payment transactions

within (Khan, 2016);

 Business to Consumer (B2C). It is the retail part of e-commerce where business

sell products, services and information directly to its customers online. B2C

market comprises all sorts of consumers goods including many virtual stores and

online shopping platform (Khan, 2016);

 Consumer to Consumer (C2C). It is a type of e-commerce where consumers

could trade their product or services with each other online. The transactions

are carried out through third party online platforms. C2C e commerce

consists of classified advertisements and online auctions. These types

of businesses are also known as C2B2C or consumer-to-business-to-

consumer (Khan, 2016);

 Consumer to Business (C2B). C2B is that type of e-commerce in which the

consumer builds their products and services, making it available for business to

bid on and purchase. C2B e-commerce is moreover said to be an opposite kind of

traditional commerce B2C model (Khan, 2016);

 Business to Administration (B2A). This kind of e-commerce platform enable

online payment transaction between companies and administration or government

bodies. Many government authorities depend on e services or products directly or

indirectly. Businesses offer supply of e documents, registers, security, etc.

electronically which has a tremendous growth in the recent years (Khan, 2016);

24
  Consumer to Administration (C2A). C2A e-commerce refers to transactions

conducted between individual customers and public administration or government

authorities. Unlike government authorities, consumers make use of e-commerce

and methods to make transactions for various industries including educational,

health, retail industries Khan, 2016);

 Online to Offline (O2O). It is also known as the online and offline integration

model. It considers the availability of product information and find that amount

of useful information influences consumers when choosing the most appropriate

product to purchase. Information availability is a reason for consumers to use

online channels for searching goods. The payment and delivery of purchase

goods will be done offline (Ping, Lin & Huang, 2018).

Measurement of the Extend of the Effect of E-Commerce

The development of the internet has altered the way individuals shop and buy

products/services. In order to reduce costs incurred in marketing, firms are increasingly

using e-commerce. Businesses are using the internet to connect, communicate and

disseminate information to the present and potential customers, besides receiving

feedback about the satisfaction/dissatisfaction with their products and services. With

rapid and continuous advancements in technology, the number of people using the

internet for carrying out business transactions has resulted in the exponential growth of e-

commerce. Shoppers use e-commerce not only for buying products online, but also for

comparing prices, features, benefits and the after-sales services that the firms are

offering. The internet has also improved an organization’s ability to cater to their

25
consumers’ needs and to develop one to one relationship with them (Vijay, Prashar &

Sahay, 2019).

Satisfaction-Dissatisfaction Paradigm

Satisfaction-Dissatisfaction Paradigm as postulated by Oliver connotes that

individuals anticipate a specific level of service when they are about to engage in a

purchase transaction. When they utilize the actual service, they form valid perceptions of

service performance. The degree of positive or negative disconfirmation is developed

when pre-and post-purchase expectations are compared that in turn influences overall

satisfaction. A positive disconfirmation occurs when service performance exceeds initial

expectations, which leads to higher satisfaction. In contrast, a negative disconfirmation

takes place when service performance falls short of what was originally expected, which

causes lower satisfaction (Serenko & Statch, 2019).

E-Satisfaction

A psychological mind state that is an outcome in reaction to a positive experience

is defined as satisfaction. The most essential and major objective of any organization is

the fulfilment of consumers’ needs and wants leading to their satisfaction. It is noted that

a business organization must have one to one straight-forward interaction with their

clients and should constantly evaluate their intents. E-satisfaction is defined as the

contentment of the customer with respect to his or her prior purchasing experience with a

given electronic commerce firm. The authors observed that satisfaction with a specific e-

retailer’s portal results in favorable response (purchase as well as repurchase). This

further leads to customer loyalty towards the internet platform (Vijay et al, 2019). The

fact that customer satisfaction is one of the most critical factors for online service

26
providers is unarguable. However, businesses are more interested in the outcomes of

customer satisfaction. The extant literature advocates that those are loyalty and service

promotion through the word-of-mouth (Serenko & Statch, 2019)

E-Loyalty

The concept of loyalty has been studied in the business literature for decades.

Loyalty is a commitment by an existing customer to a particular store, brand or service

provider when other comparative options are accessible. It creates favorable attitudes

resulting in repeat purchasing behavior over time. There is a strong link between the

creation of value for customers, loyalty and firm’s profits. In other words, a business

system works through a cycle that is fostered by customer loyalty. Market share and

revenues increase as a result of the retention of loyal customers who make repeat

purchases and referrals. The company’s costs also decrease because less money is spent

trying to lure in new customers. This may lead to increased retention of employees as a

result of positive gains in job satisfaction and productivity that in turn adds to the

retention of current customers who are better served by more experienced company

representatives (Reichheld, Markey & Hopton, 2018).

The introduction of electronic commerce has extended this concept to the

phenomenon of e-loyalty. E-loyalty is a customer’s perceived loyalty and favorable

attitude towards an online business that results in site revisits and/or repeat purchasing

behavior]. The economic principles that apply to the traditional concept of loyalty also

extend to e-loyalty. While the cost of attaining new customers remains high, often

leading to a financial deficit in a company’s early years, the cost of doing business with

27
loyal customers decreases significantly as a result of the increased Volume of their future

purchases (Andreson & Srinivasan, 2018).

Statement of the Problem

This study will aim to investigate the effect of e-commerce to customers of food

establishments in Dipolog City amidst the pandemic brought upon by CoVid19, this

academic year 2021-2022.

Specifically, this study will answer the following:

1. What is the profile of the respondents in terms of:

1.1. Age;

1.2. Sex;

1.3. Educational Attainment;

1.4. Civil Status;

1.5. Occupation; and

1.6. Type of Gadget Used?

28
 2. What are the extend of the effect to the respondents on the use of e-commerce

in the different food establishments in Dipolog City amidst the Covid19

pandemic in terms of:

2.1. E-Marketing;

2.2. E-Commerce Platforms/Applications; and

2.3. E-Commerce Customers’ Feedback?

3. Is there a significant difference on the extend of the effect to the respondents

on the use of e-commerce in the different food establishments in Dipolog City

amidst Covid19 pandemic when analyzed according to their profile?

Hypothesis

This hypothesis will be tested at 0.05 probability level.

Ho1: There is no significant difference on the extend of the effect to the

respondents on the use of e-commerce in the different food establishments in Dipolog

City amidst Covid19 pandemic when analyzed according to their profile.

Significance of the Study

It is believed that this study will have significant contributions to the following:

Community. The topic is significant as this will have impact on the consumers in

the community as using e-commerce for food delivery is an important strategy that

individuals can use to reduce their likelihood of exposure to COVID-19. The

community may also be aware of the effectiveness of existing e-commerce platforms

29
which they could use to order online as well as the food establishments that cater to the

use of online platforms for food order and delivery.

Government Agencies. The results and implications of the study will serve as

their benchmark in policy making. These will serve as guide in revising and developing

policies to regulate e-commerce, security policies as well as safety and health for food

establishments.

Future researches. The study will make an important contribution to the literature

on the impact of COVID-19 on consumers’ use of e-commerce for food shopping.

Scope and Limitations of the Study

This study will aim to investigate the effect of e-commerce to customers of food

establishments in Dipolog City amidst the pandemic brought upon by CoVid19, this

academic year 2021-2022. The extent of the effect to the respondents on the use of e-

commerce in the different food establishments in Dipolog City amidst the Covid19

pandemic will be evaluated in terms of: E-Marketing; E-Commerce

Platforms/Applications; and E-Commerce Customers’ Feedback. Test for significant

difference on the extent of the effect to the respondents on the use of e-commerce in the

different food establishments when analyzed according to their profile will also be

determined in the study. The profile of the respondents include their age; sex;

educational attainment; civil status; occupation; and type of gadget used.

30
 This study will use descriptive quantitative correlational method of research

utilizing questionnaire as its principal tool of gathering data. The study will be

conducted among 200 residents of different barangays in Dipolog City who will be

chosen by quota sampling. A self-formulated questionnaire will serve as the data

gathering tool. The questionnaire will be subjected for content and construct validity by

the panel of experts as well as Cronbach’s Alpha test prior distributing the same to the

respondents of this study.

In treating the descriptive statistical data, the frequency counting and percentage

distribution, weighted mean and standard deviation will be employed. Tests of inference

will be done using the Mann-Whitney Test, and Kruskall-Wallis Test with the SPSS.

Chapter 2

METHODS

Research Design

This study will use descriptive quantitative correlational method of research

utilizing questionnaire as its principal tool of gathering data. It is descriptive because the

study described the following concerns: describe the profile of the respondents, determine

the effect to the respondents on the use of e-commerce in the different restaurants in

Dipolog City amidst the Covid19 pandemic. It is correlational because it tries to describe

the difference on the extend of the effect to the respondents on the use of e-commerce in

31
the different restaurants in Dipolog City amidst Covid19 pandemic when analyzed

according to their profile.

Research Setting

The study will be conducted among residents of different barangays in Dipolog

City. Dipolog City becomes the ideal setting of this research due to the fact that had been

observed increased of the use of e-commerce in the locality particularly on restaurants

amidst the CoVid19 pandemic. Evident to the same is the increase presence of different

food delivery services in the locality that utilizes different online applications as well as

the social media for food delivery services as well as the increased number of restaurants

availing such online food delivery services.

Research Respondents

This study will have two hundred (200) respondents as quota sample. Quota

sampling is a non-probability method in which researchers create a sample involving

individuals that represent a population. Researchers choose these individuals according

to specific traits or qualities. Also, it is often used in surveys and opinion polls, where

the total number of people to be surveyed is typically decided in advance (Sedgwick,

2012). Further, the use of quota sampling is due also to the restriction imposed in line

with the CoVid19 pandemic. Furthermore, the following conditions must be considered

in the selection of respondents, to wit; the respondents must be a resident of Dipolog

City, submitted himself/herself freely as respondent of this study and an active user of

online platform of e-commerce in availing food services from restaurants situated in the

locality.

32
Research Instrument

The instrument to be used by the researcher will be the self-formulated

questionnaire. The statement on every item was based on the literature being reviewed in

the previous chapter. The questionnaire shall consist of two (2) parts, the first part will

be the demographical profile of the respondents in terms of age, sex, educational

attainment, civil status, occupation and type of gadget used. The second part will be the

extend of the effect to the respondents on the use of e-commerce in the different

restaurants in Dipolog City amidst Covid19 pandemic when analyzed according to their

profile.

The questionnaire will be subjected for content and construct validity by the panel

of experts as well as Cronbach’s Alpha test prior distributing the same to the respondents

of this study. Content validity refers to how well the questionnaire measures the behavior

of the individuals for which it is intended while construct validity used to determine how

well the questionnaire measures what it is supposed to measure. Cronbach’s Alpha test to

measure the internal consistency of the questionnaire.

Also, to draw out the respondent’s responses on the level of satisfaction among

customers, the four-point Likert scale will be employed, as follows: 4, Very Much

Satisfied; 3, Very Satisfied; 2, Partly Satisfied; 1, Not Satisfied.

Weight Range of Values Description

4 3.25- 4.00 Very Much Satisfied

3 2.55- 3.24 Very Satisfied

2 1.75 – 2.49 Partly Satisfied

33
 1 1.00 – 1.74 Not Satisfied

Very Much Satisfied (4). This is a rating given to a particular descriptor that is

manifested at all times without any single lapse.

Very Satisfied (3). This is a rating given to a particular descriptor that is

manifested most of the times with very few lapses.

Partly Satisfied (2). This is a rating given to a particular descriptor that is

manifested of having greater lapses.

Not Satisfied (1). This a rating given to a particular descriptor that is manifested

having lapses all the times.

Data Gathering Procedure

After validation through Cronbach’s Alpha test of the questionnaire and upon

approval to conduct data collection, the researcher will commence the data gathering.  It

is important to underscore that in the conduct of data collection, the researcher will at all

times observe the health protocol against CoVid19 such as the wearing of face mask and

face shield, the use of alcohol and social distancing considering that the researcher will

personally distribute the questionnaire to the respondents. After the respondents have

completed the questionnaire, the researcher will retrieve the completed questionnaire and

hand it over to the statistician so that the data gathered can be analyzed and interpreted to

answer the statement of the problem of this study.

Ethical Considerations

34
 The researcher during the conduct of this research shall ensure that the research

respondents will not be subjected to harm or intimidated in any way whatsoever. Full

consent among the respondents shall be obtained prior to the distribution of the

questionnaires. Likewise, the researcher should ensure the protection and privacy of the

research respondents and an adequate level of confidentiality of research data. Individuals

participating in the study's anonymity will also be taken into account. Finally, after the

study is completed, the questionnaires that will be used for data collection must be

destroyed.

Data Analysis

Frequency Counting and Percent. These tools will be used to determine the

respondents’ profile in terms of age, sex, educational attainment, civil status, occupation

and type of gadget used. Percent was calculated by getting the frequency of each

category divided by the total number of respondents.

Weighted Mean. It will be used to quantify the ratings of the respondents extend

of the effect to the respondents on the use of e-commerce in the different restaurants in

Dipolog City amidst Covid19 pandemic.

Mann-Whitney Test. It will be utilized to test the difference of the respondents’

level of satisfaction when analyzed as to sex.

Kruskal-Wallis Test. It will be utilized to test the difference of the respondents’

level of satisfaction when analyzed as to age, educational attainment, civil status,

occupation and type of gadget used.

35
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Appendix A
The Questionnaire

PART I. DEMOGRAPHIC PROFILE

Directions: Please check (/) and fill in the blanks some items seeking for pertinent
information.

1. Name: (Optional) ___________________________________

2. Age ( ) Below 18 years old

( ) 18 – 22 years old
( ) 23 – 27 years old
( ) 28 - 32 years old
( ) 33 – 47 years old
( ) 48 – 52 years old
( ) 53 years old and above.

40
 3. Sex ( ) Male
( ) Female

4. Educational Attainment ( ) Elementary Level/Graduate

( ) High School Level/Graduate
( ) Post-Secondary Level/Graduate
( ) College Level
( ) Bachelor’s Degree Holder
( ) Masterand/Master’s Degree
( ) Doctorand/Doctor’s Degree

5. Civil Status ( ) Single

( ) Married
( ) Separated
( ) Widow/er

6. Occupation ( ) Working in the Government

( ) Working in Private Company
( ) Engage in Business
( ) Professing Profession Privately
( ) Driver/Farmer/Fisher etc
( ) Unemployed
( ) Student
( ) Others, please specify __________

7. Type of Gadget Used ( ) Cellular Phone

( ) Tablet
( ) Laptap/Notebook
( ) Desktop
( ) Others, please specify.

PART II. Extend of the Effect of E-Commerce. Below are items which will describe
your level of satisfaction on the different component of E-Commerce as used by
restaurants in Dipolog City. Kindly check the check the information corresponding to
your responses. Please rate their leadership and management competencies using the
following scale below.

Weight Range of Values Verbal Description

4 3.25 – 4.00 Very Much Satisfied
3 2.55 – 3.24 Very Satisfied
2 1.75 – 2.49 Partly Satisfied
1 1.00 – 1.74 Not Satisfied

41
 A. E-Marketing 4 3 2 1
1. Information about the menu are clear and ( ) ( ) ( ) ( )
unambiguous.
2. Variety of menu with vivid pictures were ( ) ( ) ( ) ( )
presented in the social media/application
platform.
3. Food establishment/Restaurants ( ) ( ) ( ) ( )
information were clearly listed in the
social media/application platform.
4. Promos were clearly detailed in the social ( ) ( ) ( ) ( )
media/application platform.
5. The menu is attractive and reflects the ( ) ( ) ( ) ( )
image of the food establishment.

B. E-Commerce Platforms/Applications
1. Delivery were prompt and on-time. ( ) ( ) ( ) ( )
2. Payment is flexible, which can be made ( ) ( ) ( ) ( )
offline (COD) or online (G-Cash etc.)
3. Food were delivered in the appropriate ( ) ( ) ( ) ( )
temperature.
4. Food were delivered paramountly ( ) ( ) ( ) ( )
observing sanitary practices.
5. Food were delivered in appropriate ( ) ( ) ( ) ( )
packaging.

C. E-Commerce Customers’ Feedback

1. The food establishment/restaurant ( ) ( ) ( ) ( )
values customers’ feedback online.
2. The food establishment/restaurant ( ) ( ) ( ) ( )
owners find time to give attention to
their customers’ online or even offline.
3. Service quality was paramountly ( ) ( ) ( ) ( )
observed by the food
establishment/restaurant even online.
4. The food establishment/restaurant has ( ) ( ) ( ) ( )
the customers’ best interests at heart
5. Complaint were dealt with swiftly. ( ) ( ) ( ) ( )

42
 APPROVAL SHEET

This thesis entitled “THE EFFECT OF E-COMMERCE TO CUSTOMERS

OF FOOD ESTABLISHMENTS IN DIPOLOG CITY AMIDST THE COVID-19
PANDEMIC: A SURVEY” prepared and submitted by Mary Rose Barrios-
TOLENTIN in partial fulfillment of the requirements for the degree Master in Public
Administration has been examined and is recommended for acceptance and approval for
Pre-Oral Examination.

BEVERLY B. SAMOSA, Ph.D.

Adviser
__________________________________________________________________

Panel of Examiners

43
 Approved by the Committee on Oral Examination with a grade of_____________.

DANILO S. YOLIM, Ed.D.

Chairman

JANET D. BARRERA, Ed.D ALFREDO D. BISCOCHO, Ph.D

Member Member

MARTE M. EMPERIO, D.M.

Member
__________________________________________________________________

Accepted and approved in partial fulfillment of the requirements for the degree
Master in Public Administration.

DANILO S. YOLIM, Ed.D.

Dean – Graduate School

Comprehensive Examination:
Final Oral Defense:

44