Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Live selling is the future of sales for any company that wants to get their products on the

market. It is the process of showcasing products live by using the reach of the influencer on

social media platforms. According to SJ Petteruti, livestream shopping, which is also called

streaming e-commerce or live selling, is when brands or retailers leverage live video streaming

technology to sell products to viewers online. Livestream shopping can take place on social

media or using a third-party tool on a direct-to-consumer (D2C) site.

According to Jessica Fenol (sino si Jessica Fenol? Jessica Fenol of Wowowee in her

article…. ganto dapat), live selling is when business owners conduct an “auction style” approach,

showing customer the available items real time and it is an interactive way to sell items, connect

directly with the viewers, and gain potential customers, all in real time.

There may be a consequence and an increase of risks and uncertainty of online internet

shopping, further reducing trust, a kind of emotional bond between sellers and buyers. Current

online purchase intent studies show that trust between people and products, including customers

trust in the sellers, products and reputation can significantly affect intent to purchase. For this

reason, this study was wade. The researchers would like to determine the effects of live selling in

the buying behavior of the customer.

Background of the study

The target respondents of the study are the selected residents of Metro Poblacion in

Guinayangan, Quezon. In modern times, social media has become the main habit of the people of

Metro Poblacion to buy clothes and others goods at cheap prices, so they enjoy this method more

because they no longer have to go to huddle with other shoppers. But there are consequences

when you buy at online shopping, the consumer become addicted to buy anything in online and it

is maybe a cause for this to become a habit.

Current online purchase intent studies show that trust between people and products,

including customers trust in the sellers, products and reputation can significantly affect intent to

purchase. Unlike the traditional shopping environment, live selling cannot touch products before

they buy them, so they face higher risks in their buying habits. Studies show that the feeling of

ease is an important element for customers to increase trust and viscosity in the online selling.

Therefore, in this paper, based on the buyers results, efforts are being made to study the role

impact of video broadcast on the purchase objective of consumers in live selling.

Theoretical Framework

Unified Theory of Acceptance and Use of Technology (UTAUT)

For its framework, this study uses Unified Theory of Acceptance and Uses of Technology

(UTAUT), which identifies four direct determinants and four key moderators that influence

behavioral intention to use a technology. The following determinants are namely: performance

expectancy, effort expentancy, and social influence while the four key moderators are known as

age, gender, experience and voluntariness (Venkatesh, Morris, Davis, & Davis, 2003).
 Theoretical Framework

g
Performance
Expectancy
Effort
Expectancy
Behavioral Use Behavior
Social Intention
Influence

Facilitating
Condition

Gender Age Experience Voluntarines

of use

Performance expectancy is defined as the degree to which an individual believes that

using the system will help him or her to attain gains in job performance. The influence of

performance expectancy on behavioral intention will be moderated by gender and age, such that

the effect will be stronger for men and particularly for younger men (Venkatesh, Morris, Davis,

& Davis, 2003, pp. 447-450)

Conceptual Framework

System Model

INPUT PROCESS OUTPUT

 Profile of customer

 Buying Preferences  Data collection through  Identified effects of

survey questionnaire live selling in the
 Perception of the behavior of the
customers in live  Data Analysis customer
selling of products
This model is an effort to facilitate condition to define the degree which an individual believes

that a consumer buying behavior is of utmost important. We as persons take an action in

purchasing and using products and services and action are derived by mental and social process.

Behavioral science helps us to better understand why we go for a certain product and why not,

why we set priorities while making decision. (para saan ito?)

RESEARCH PARADIGM

Statement of the Problem

This study aims to identify the effects of live selling to the buying behavior of the

selected resident of Metro Poblacion in Guinayangan, Quezon.

Specifically, the researchers seek to answer the following question:

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

1.1. Sex

1.2. Age

1.3. Economics Status

2. What do the respondents prefer in buying some products?

3. What are the effects of live selling to the buying behavior of the respondents?

4. How does live selling affects the buying behavior of the respondents?
Hypothesis of the Study

Alternative Hypothesis:

There is a sigmificant effect in the buying behavior of the selected residents of Metro

Poblacion un Guinayangan Quezon.

Null Hypothesis:

There is no signifacant effect to the buying behavior of the selected residents of Metro

Poblacion in Guinayangan Quezon.

Significance of the Study

This study will determine the effects of live selling in the buying behavior of the

respondents. This will also talk about the reason are reason why people preferred to buy online

rather than buying in traditional way. The importance of this study is for marketers and

entrepreneurs who are catering livestream shopping. This study will also be beneficial for the

entrepreneurs who are planning to start an online business. It will be very useful for online

marketers to use the result of this study so that they will have a better knowledge about the

behavior of their potential customers. By knowing the effects of live selling in the consumer

buying behavior, some online sellers can come up with the idea of improving their services in

order to have more customers.

Scope and Limitation

This study was primarily conducted for the purpose of determining the effects of live

selling to the buying behavior of the selected residents of Barangay Poblacion, Guinayangan

Quezon. It aims to find out the main factors that motivate consumer to buy online and identifying

the consumers behavior towards online buying and how it affects them. It will only focus on the

effects of live selling to the consumer buying behavior. This study will not cover other effects

that are not related to the topic. Residents that are not selected and not watching love selling are

not within the scope of this study.

Definition of Terms

As used in this study, the following terms are hereby defined.

Advertisement. This term refers to the form of marketing and advertising which uses the

internet to promote products and services to audience and platform users.

Behavior. It is kind of individuals overall perception and evaluation for product or services

during buying online which could result in bar or good way.

Buying. The buying and selling of goods and services using the internet, when buying online.

Internet Sales. It is the advertisement, promotion and sale of products to individual consumer

who submit orders for such products directly through an E-commerce website consistent with the

terms of this agreement.

Online Selling. It is the act or process of selling goods, products or services via internet or

mobile app, online classified advertisement, online shop, social networking, social media or web

shop.

Platform. This term refers to the form of E-commerce sites that allow individuals and

companies to create profiles and publish their products online.

Reputation. It is a proactive and reactive business efforts to influence consumer perception of a

brand.

Risk. It is vulnerable to cyber-attacks and security breaches, such as online security may include

unprotected wed services and website hacking.

Social Media. This is a particular way of creating meaningful relationship with prospective

customers that uses social media platforms like Facebook and Twitter to connect and engage

directly with your target sales prospect.

 Chapter 2

REVIW OF RELATED LITERATURE & STUDIES

The related literature and studies here were selected on the basis of significance in

promoting direction for this study. To further understanding of this study, the researchers made

use of different reading materials related to selling through the use of live streaming. The

different literatures and studies are essential in broadening the knowledge of the researcher. This

will help in giving the reader a better understanding about the effect of live selling to the buying

behavior of a customer. Also, this will also guide the researchers to achieve their target

objectives by getting ideas on other related studies and literatures.

According to the 2014 study (what study), more individuals rely on mobile phones in

purchasing products online as it enables them to do it on the go. Ease (73.3 percent) and

convenience (71.9 percent) are cited the most out of the reason why Filipinos are satisfied to

shop online.

Foreign Literature

SERVCON measurement development develop in the context of offline shopping

does not apply unique aspect approach of online shopping comfort since the retailers utilize

internet as the shopping platform. Various previous literature have proven the online service

quality concept by identifying same dimension of service comfort like unique feature with
dimensions like facilitation in interactives usage, information browsing, information in dept and

richness, and security.

Vijay et. al (2017) suggest that both internal and external elements have direct influence

on website satisfaction. They highlight on why and how satisfaction with website matters in the

contribution of shopping values and website atmospherics to outcomes by presenting its

mediating role.

The U.S has the highest total revenue from online shopping out of every country in the

world. However, the United Kingdom has highest e-commerce spend per capital. Chinese citizen

spends a higher percentage of their salaries online the any other than any other country

(Ecommerce Wiki, World Atlas)

An article from Web Designer magazine dated 2013 by Steve Jenkins entitled “Pay As

You Go Advertising”. It shows that for most types of advertising, advertiser pay for people to see

the ad. With Google Adwords, the advertiser only pays when someone clicks on the ad and visit

the website of the business. The advertiser have complete control of adjusting or customizing the

ad campaign like how much to spend, who sees the ad, and where and when the customer see it.

It is related to the study because it tells about Google Adword which will be of much help to

advertiser and the business itself. It also shows that it is easy for advertiser to make an ad

campaign of the business because they have the complete control and also help the business to be

popular. (not related to the topic)

An article from HBS working knowledge dated August 17, 2009 by John Quelch entitled

“Quantifying the Economic Impact of the Internet have incredible multiplier effects throughout

the economy and society. Ironically, online advertising and the commercialization of the web
achieved important goals of the resisters mostly to preserve the web as a medium for free

publishing and communications. The advertising supported internet also helps the economy by

fostering innovation, entrepreneurship, and productivity. It is related to the study because it

represents the impact of advertising in the economy by stressing how effective is online

advertising and how online advertising helps the economy. Advertising through internet also has

given lots of benefits to businesses and also our country. (This is about online advertising, not

online selling)

Consumer behavior is gaining much importance for retailers, they are trying to

comprehend the behavior of shoppers what item the customers look for, why they need a specific

item, and when they need it how are they going to buy the item (Iram 2017). The term "impulse

buying" has had diverse implications in various hypothetical viewpoint. Prior studies on impulse

behavior have often times centered on the definitional components distinguishing impulse from

non-impulse buying and providing a theoretical framework for examining impulse buying.

Unsalan (2016), identified that the impulse buying behavior of a shoppers is influenced by

number of factors which could have been related to shopping environment, customer's personal

traits, products, characteristics, the diverse demographic and socio-cultural dimensions.

Electronic commerce (e-commerce) is the marketing, buying and selling of merchandise

or services over the Internet. It envelops the whole extent of online item and administration deals

all the way. Internet business devices incorporate PC stages, applications, arrangements, servers

and different programming positions produced by web-based business specialist co-ops and

obtained by shippers to increment online deal. Commerce facilitates the growth of online

business. It is categorized as follows, Online marketing, Online advertising, Online sales,

Product delivery, Product service, Online billing and Online payment. E-commerce is growing
popular in an emerging economy. E-commerce began in 1995. It requires the digital goods for

caring out their transactions. Digital goods are goods that can be delivered over a digital network

(Laudon and Laudon,2013).

E-commerce is rapidly transforming the way in which enterprises are interacting among

each other as well as with consumers and Governments. As a result of changes in the landscape

of ICTs, e-commerce is now growing rapidly in several emerging markets and developing

economies (UNCTAD/IER/2015). The technologies designed to improve commercial

transactions using the Internet have evolved as quickly. However, we have not yet achieved an

ideal world of painless and secure transactions utilizing the Internet, as unresolved privacy issues

of the purchaser have impeded the further development of the technologies (Alberto, Avila and

violeta-2007).

E-commerce has been hailed by many as an opportunity for developing countries to gain

a stronger foothold in the multilateral trading system. E-commerce has the ability to play an

instrumental role in helping developing economics benefit more from trade (WTO-2013). The

growing use of the Internet, tablet devices, and smart phones coupled with larger consumer

confidence will see that ecommerce will continue to evolve and expand. With social media

growing exponentially in recent years, the conversation between businesses and consumers has

become more engaging, making it easier for transactional exchanges to happen online. Internet

retailers continue to strive to create better content and a realistic shopping experience with

technologies like augmented reality. With mobile commerce gaining speed, more users are

purchasing from the palm of their hand (Miva 2011).

 Article about Online business advantages retrieved Oct. 21, 2012 by Zhenya Beck at

centauria. Advantages of going online is ppowerful, fast and efficient marketing and

communication tool and medium, telecommuting reduces the number of cars and car miles, Very

inexpensive way to reach new markets and interact with them, Office & transportation cost

savings, Unlimited possibilities for automation of your business, you can automate your order

and payment processes, your customer support tasks and more.

In today's time of internet popularity and globalization, a web page or website is a

dynamic tool in the market for you to both acquire and service your clients. It enables one to

make information easily available about themselves as well as the products and services they

plan to offer. Competition has never been fiercer and it has become necessary for every company

and business to fight tooth and nail for every inch of that customer share. Online presence has

lowered barriers to entry for smaller players and has provided an instant global reach at

practically zero cost, online a presence website that allows you to sell your products or services

to visitors paying through their credit card.

Article about using your website to advertise your business retrieved Oct. 21, 2012 by

April Dunca at advertising. You can't hide from it. Whether you're driving by a billboard,

listening to the radio or flipping through the TV channels, every advertisement. Even in a lean

economy, the evolution of the Internet has business taking a new direction. Now companies need

a Web site, even if they aren't involved in e-commerce. But this new wave of marketing still

takes some old-school advertising.

Article about importance of websites in the overall marketing mix retrieved Oct. 21, 2012

by Derek Stockley. Internet marketing is now a major, multi-billion-dollar industry. Despite

some concerns, many consumers now have the skills and the confidence to transact purchases

using the web. A modern, well-presented website is now expected for most businesses and

organizations. A website should explain the products and services offered. It should also provide

background and general contact information. A website can also allow online transactions, from

simple enquiry requests, through change of detail processing to advanced functions such as

supply change management.

The extension of technology that integrates the electronic media in the buying and the

selling process is known as the Ecommerce. Elton (2012) mentioned that the ecommerce website

has deflated the dissimilarity of the world. Marketing is an important organizational function in

today's age. It is the one path that a firm follows to create and deliver value to its customer and

itself. The internet has created a vast array of opportunities to deliver this value. According to

Brigita Go (2012), running an online business is much better than opening a store. Selling online

is indeed one of the great ways to make profits online. In fact, it is also a great way to widen

your target market and grow your business fast as well. Carolyn Anderson (2012) stated that by

putting your business online, you are also widening your reach worldwide. It is important to

check out some online selling tips that may help make selling successful. As more and more

businesses take the e-commerce journey to charm customers, it is enhancing more and more

necessary to build effective ecommerce marketing ideas. According to Sunny (2012) the primary

reasons for marketing your ecommerce business online is to remain fasten. Ian Ross Hollander

(2012) stated that there are three online marketing trends every successful entrepreneur must

adopt: communities are critical, dynamic browsing environments and control what you create.

According to Harris (2012) the online medium offers a big platform to promote your business as

compared to other medium available. Your products and services will reach to a large number of
potential buyers only if you choose the right marketing medium for your business. Today online

reservation system is even accessible to consumers through Internet Gateways and it allows the

users to book hotel rooms, rent cars as well as book online airline tickets, which is definitely a

more convenient way of making your travel plans. Andrew mentioned that, online reservation

systems are the future of the self-catering holiday provider as more and more people request

online or as a minimum live availability.

According to Margaret Jack, Jay Chen, Steven J Jackson, Proceedings of the 2017 CHI

Conference on Human Factors in Computing Systems. This paper describes a complex global

sales and logistics network based in Phnom Penh, Cambodia, which utilizes Internet tools

particularly Facebook as well as a suite of offline tools such as feature phones, paper receipts,

and motorcycles to facilitate the buying and selling of clothes and other commodities. Against

the gap or import models that sometimes limit HCI understandings of computational change in

non-Western environments, we argue that the consumers, business owners, delivery drivers, and

call center staff play active and formative roles in producing this infrastructure, integrating new

tools into older cultural practices and determining how they work within the limits and

conventions of the environment. We argue that resourceful and imaginative activities such as

these constitute a form of creative infrastructural action and are central to the ways that new tools

circulate in the world, though they often go unrecognized by HCI as innovation

According to Jean‐Francois Hennart, Global Strategy Journal. It assesses the theoretical

basis for the existence of a relationship between the size of a firm's foreign footprint and its

performance. Argued that multinationality results from a firm's choice between coordinating

internally the stages of its value chain and letting them be organized on the market and hence

that there are no reasons to expect net gains from an increase or a decrease in multinationality,
the only profitability impact coming from a firm having made the wrong choice and being over‐

or under‐integrated compared to the optimum. I then show that the way the literature has

operationalized multinationality does not match the theoretical arguments it has advanced. I

conclude that a reassessment of the literature is overdue and point to some new directions. (not

related)

According to Yu-Liang Feng, Chia-Hui Huan the Journal of Physics. With the

development of the Internet economy, live streaming sales have become a new marketing

method, which is popular among users. This paper explores quality attributes of live streaming

sales based on the experience of their users. In this study, 56 factors, including the original and

abstract reasons for and the specific item of user experience of live streaming sales, were first

obtained with the evaluation grid method according to the semi-structured interview of highly

involved people. Then, 5 experts formed a focus group for discussion and determined 11 key

factors influencing user experience as analysis factors of the ISM theoretical model. Results are

obtained through the statistical analysis of the ISM theoretical model, and four major dimensions

are defined, namely the first-level demand dimension, the second-level interaction dimension,

the third-level good quality dimension and the fourth-level extension dimension. Finally, the

relationship between attractive quality attributes in different dimensions and the Kano two-

dimensional quality classification and user satisfaction is analyzed based on the Kano two-

dimensional quality questionnaire. A satisfaction coefficient matrix diagram is drawn to analyze

the key quality attributes. Research conclusions and suggestions are made according to the

results of data analysis so as to provide reference value for subsequent improvement of related

designs and help designers improve user experience.

 According to Margaret Jack, Jay Chen, Steven J Jackson Proceedings of the 2017 CHI

Conference on Human Factors in Computing Systems. This paper describes a complex global

sales and logistics network based in Phnom Penh, Cambodia, which utilizes Internet tools

(particularly Facebook) as well as a suite of offline tools such as feature phones, paper receipts,

and motorcycles to facilitate the buying and selling of clothes and other commodities. Against

the gap or import models that sometimes limit HCI understandings of computational change in

non-Western environments, we argue that the consumers, business owners, delivery drivers, and

call center staff play active and formative roles in producing this infrastructure, integrating new

tools into older cultural practices and determining how they work within the limits and

conventions of the environment. We argue that resourceful and imaginative activities such as

these constitute a form of creative infrastructural action and are central to the ways that new tools

circulate in the world, though they often go unrecognized by HCI as innovationn. (not related)

Local Literature

Renz (2018) projected that web-based entrepreneurs will benefit mostly when

Facebook live was launched. According to her, live selling on Facebook is a huge success

because of its credibility of ownership and tangibility. Buyers get to see the actual product that

they are paying for. They also get to ask question about it and get real time answers. Most of all,

there’s accountability. Buyers in Facebook live selling have hundreds of witnesses backing them

up that they have bought an item. Also, she said that the sellers or retailers can easily sell a

product because they can demonstrate, showcase it, and explain its uses and answer question.

Then, there’s also scarcity for the consumers according to her. The sellers giving their buyers the

urgency to buy their product because of the live competitors they have. It gives the buyers a

feeling that they must buy it or else someone’s going to get it first. Renz said that if you’re an
entrepreneur, you need to be always evolving, adapting to new technologies that can boost your

business. You must keep on learning, keep trying and keep breaking boundaries. According To

Paurom (2018), the Philippines became part of 47 countries wherein Facebook’s marketplace

service is enabled. The Facebook director of product management Krandeep Annad said that

recently launched service is aimed at streaming that user experience of the people who use

Facebook as a platform to buy.

An article from the Philippine star dated August 7, 2012 by Louella D. Desiderio entitled

“Businesses urged to use internet to product”. It shows that business is advised to use the Internet

for promoting their product and services as more consumer are going online to research before

making purchases. Companies should consider using online advertisements for the product and

services they using the internet to research goods they plan to buy before making purchase.

It also states that in the Philippines, the study showed that around 70 percent of

consumers first make research of their purchases online even if they purchase of growing the

business by going online. It is related to the study because, they can easily have the benefits of

online advertisements of reaching users at a time of relevance anywhere local study.

The researchers conclude that online activity has reached an unprecedented rise owning

to the popularity of social networking sites and the easier accessibility to computers and the

internet for more people. As such, and with more methods of interactive and efficient advertising

available online.

The rising online presence causes advertising rather than newspaper advertising

and the dwindling of newspaper readship causes advertisers to invest than newspaper advertising
and the dwindling of newspaper readership causes advertisers to flee from the newspaper as

another advertising medium has taken place. (about advertising)

An article from Adobo Magazine dated February 3, 2013 by Sanserif, Inc. entitled

“Online Advertising to Surpass print and tv in 2013”. It shows that online advertising has

continued to grow, achieving 10% year on year growth recording $813.25 million for three

months ending September 2012. The results of the online advertising expenditure report (OAER)

by IAB Australia, compiled by price water house coopers (PWC), show that while general

advertising market is softening, online advertising is on track to surpass both newspaper and TV

advertising in 2013. It is related to the study because it shows how effective online advertising to

business that it became on track to surpass both newspaper and TV advertising in 2013. It also

shows that online advertising is continously growing and becoming more effective to advertiser

and business.

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 the issue of a store

closing before the consumer can make it on time exceptionally efficient during the holidays

shoppers do not have to bother with the long, exasperating lines. Due to lack of operating costs,

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 than going to the physical

store. Although online shopping has advantages, there are many downsides to doing online

business. Back order goods can be prove to be exceeding trying for shoppers, especially during

the holidays, shoppers also lose the person to person communication that online retailer cannot

provide.
 As said by Francia (October, 2018), Filipino shoppers also prefer inspecting the products

themselves before making a purchase, while others factored in the cost of shipping and the length

of delivery time. Research Tech Lab (RTL) noted that Filipinos more assured when they

examine the products before checkout, while being able to take the item immediately after

payment gives them peace of mind. It also recorded the enticements of online shopping from

July to September, which coincided with the sale promo of leading e-commerce sites Lazada and

Shopee. Here, the company found that 68. 61% of Filipinos Still favor traditional shopping.

The market has rapidly grown since then. According to Eshopworld.com, there are at

least37.7 million e-commerce users in the country in 2018 from the 30. 2 million estimated in

2016.The number is expected to rise to 53.8 million by 2020. A report published in May 2018

found that despite its growing popularity, the Philippines lags in terms of e-commerce sales in

the Southeast Asian region.(Eshopworld.com).

According to Willy Kruh, he said that today’s consumer no longer goes shopping, but

shopping all the time and everywhere. In a truly global online marketplace, competition is no

longer limited to local shops during regular business hours. Consumers can easily buy from

retailer and manufactures located anywhere in the world or from those with no physical retail

locations at all

According to the article “What Makes E-commerce Click?” (2017) , eleven years ago RJ

David made his bedroom turned into a boardroom while he was setting up the most successful

buying and selling sites in the Philippines. He did state that he knew that the main hindrance of

e-commerce would be the trust of the consumer because Filipinos would not be comfortable to

the thought of paying someone through online and waiting for their purchased product to arrive
 According to Manglinong, D. (2018) “Why Online Shopping is Booming in the

Philippines” the reason why most of the people prefer shopping online especially during the

Christmas season and special holidays as early as December is because convenience, cheaper

sales, and special prices.

In the article about What are the advantages of online transaction? posted on Feb. 27,

2011 retrieve from October 21, 2012 by Dexter Panganiban. Internet marketing, also referred to

as online marketing or E-marketing, is the marketing of products or services over the internet.

Because of the internet, many unique benefits on marketing, has been added such as low cost in

distributing information and media to a global audience. Internet marketing ties together creative

and technical aspects of the internet, including design, development, advertising and sales.

Article (what article, where did you see the article?) about Internet payment system

retrieved Oct. 21, 2012. Everyday business is becoming harder to hardest due to lot innovation

and entrepreneur creating in Philippines. Philippines is a growing country and people are

adapting the social life with technology. Technology is controlling the total business

environment. Customer support is improving every day in Philippines business. Today 1/3 of the

population is using Internet. Filipinos are already trusting online transaction and deals to

purchase online every day. Internet banking is growing significantly. ATM card provider is

online transaction ready since few years.

Article about Website (Who is website? What website?), It is importance for business

retrieved Oct. 21, 2012 by Peter Hearn at resources. One of the most important tools in buying

online is the Credit Card. Although there is other third-party site that could process payment it

still end up on using Credit Card on adding funds to those sites.” He also includes Advantages of
online transaction like, you don’t have to fall in line in paying, you don’t have to exert an effort

in getting the product you want, it saves time on purchasing you can do other things without

living your work place.

The low cost of entry has attracted hundreds of companies, large and small, to the level

playing field of cyberspace, Paul J. Dowling, Jr. noted in his book Web Advertising and

Marketing. On the Internet, a small, one-man operation can look as good or better than a large,

multinational corporation. But whether it's an individual working out of a virtual office, or a

CEO sitting in an expensive downtown office building, they're going online for one purpose to

sell. And they're leaving no stone unturned in their efforts to make it safe and easy for their

customers to buy.

In the article about ‘Advantages of starting online store” retrieve from October 21, 2012.

In the article about socio-economic benefits of being online consumers can easily shop from any

place in the world and through many items and categories without leaving their house. It also

allows consumer to compare between a number of varieties in any aspect they want. Costumer

has the freedom to read reviews of other customers if the product is suited to their taste. They

can also easily search for those hard-to-find gadgets, products or items. Furthermore, the Internet

is available round the clock and year, so the consumer is welcomed whenever they want to visit

the oonline store. For many businesses, the internet has become a springboard to phenomenal

success in terms of profit. Traditional commerce may be headed to its twilight years as more and

more people are beginning to embrace the enticing allure of online shopping for goods and

services. Almost all trade transactions have online features which enable clients and consumers

to satisfy their needs without leaving the comfort of their homes.

 According to Bo He, Varun Gupta, Prakash Mirchandani Omega. Local brick-and-mortar

(B&M) retail stores have traditionally served customers only in a proximal geographic area with

their existing operations from a physical store. Emerging online-to-offline (O2O) third-party

platforms allow the local B&M stores to increase their consumer base by offering online

ordering and delivery services which we refer to as platform mode. To implement online

retailing, a store can also choose to build all the online retail and delivery capabilities by itself, or

outsource order-taking to the third-party platform but provide self-built delivery service to

customers. We analytically investigate when a local B&M store should adopt an O2O strategy,

and the conditions under which each of the three modes is optimal. We show that a store should

implement the O2O strategy only when the market is partially covered, or when the market is

fully covered and the store's delivery cost is sufficiently low. We fully characterize the optimal

mode of operations based on the delivery cost threshold. Interestingly, we find that the self-

building and mixed modes dominate the platform mode when the store offers uniform pricing for

both online and B&M store customers. We also propose a novel cooperation mechanism that can

improve both the platforms and the local B&M store's profits. Additionally, with the proposed

cooperation mechanism, the platform mode dominates the mixed mode.

According to Susanne Royer Routledge, 2013. Focusing on Business to Customer (B2C)

internet business, and on firms that offer intangible products or services that can be directly

consumed via the world wide web, Strategic Management and Online Selling also covers

immaterial products and online news information or home banking. Considering how firms with

similar specific characteristics are able to realize competitive advantages, this topical book

discusses an area of particular contemporary importance and increasing academic study.

 According to Rachel Doern, Nick Williams, Tim Vorley Entrepreneurship & Regional

Development. This article reviews the literature on entrepreneurship and crises, capturing where

we have been and where we are now, and begins to discuss where we might go next. It centres

around how we have come to understand the relationship between entrepreneurship and crises

through the application of certain crisis definitions, concepts, typologies, the crisis event

sequence, methodologies and empirical settings. It also examines how crises affect

entrepreneurship and how entrepreneurship affects crises. The article then introduces in some

detail the five manuscripts selected for the special issue and the contributions they make towards

developing our understanding of the relationship between entrepreneurship and crises. It notes

the advances, gaps and opportunities that emerge from the literature review and special issue

papers, and concludes with a way forward for developing further our understanding in this area.

According to Guangliang Xi, Xinyu Cao, Feng Zhen a transportation Research. Policy

and practice Same Day Delivery (SDD) online shopping may generate different influences on

physical store shopping from conventional online shopping, but few studies have explored this

new and burgeoning channel and its impacts. Using retrospective survey data in Nanjing, this

study investigates the impacts of SDD online shopping on local store shopping. Quasi-

longitudinal analyses of the retrospective data show that SDD online shopping substitutes for

local store shopping, and that changes in local shopping are associated with SDD online

shopping frequency. These results suggest that SDD online shopping may change local shopping

travel and alter the distribution of commercial land uses over time. Moreover, a comparison

between quasi-longitudinal and cross-sectional analyses suggests that cross-sectional results are

not reliable. Future studies should move beyond cross-sectional design.

Foreign Studies

The statistical result revealed that online customer monthly spending amount as well.

There was a statistically significant positive relationship between the amount of time and money

spent on the internet. The three most popular online shopping sites were determined as trendyol,

hepsiburada and alibaba. The product must online customer bought were clothing, stationery

product, online tickets, and electronic devices (Kilic,Z.,Ates V. 2018).

Ayden and Demir (2011) pointed out that e-commerce consumer behaviors and

preferences that those who are 26-35 years of age and have a Bachelor’s Degree, whose income

is 1500 Turkish Liras and above are more likely to prefer e-commerce. In another study, they

have conducted research on the behavior of civil servants purchasing products from the internet.

As a result of the research, it has been found out those customers who have a high education

level and high-income level are shopping more on the internet. The study also pointed out that

the delay in the delivery of products and deceptive and misleading understanding were the major

hindering factors for online buying. (Ayden and Demir, 2011)

According to Choudhury (2014), the study highlighted that there is a significant

relationship of online shopping with gender, internet literacy and online product price. Similarly,

the study also highlighted that there is no significant relationship of online shopping with

education and website usability.

Mehboob examine the relationship between various factor that affect the consumer’s

behavior towards online shopping. He explained the influence of five major variables that were

derived from literature. These variables are trust, time, product variety, convenience and privacy

which determine how consumer buying behavior is reflecting online shopping trends. Based on
the result of the study by Mehboob, trust is been considered as the most relevant factor affecting

the customers buying behavior towards online shopping when it comes to younger generation.

A research study conducted by Shuai Yuan, Ahmad Zainal Abidin, Marc Sloan and Juan

Wang from Cornell University of Ithaca, New York on June 2012 entitled “An interplay among

advertisers, online publisher, ad exchanges and web users”. The researchers conclude that

internet advertising is a fast-growing business which has proved to be significantly important for

both web search engines and online content providers the with major source of revenue. Its

presence is increasingly important for the whole media industry due to influence of the web.

For advertisers, it is a smarter alternative to traditional marketing media such as TVs and

newspaper. As the web evolves and data collection continues, the design of methods for more

targeted, interactive, and friendly advertising may have a major impact on the way our digital

economy evolves, and to aid societal development. It is related to the study because google

online advertising which it helps lots of businesses. Since internet advertising is a fast-growing

business, it also helps economy.

A research study conducted by Matthew Duncan from Elon University in North Carolina,

United States on November 18 2011 entitled "Identifying different types of online selling and its

impact on consumer buying behavior”. The researcher concludes that since the explosion of

Internet, web companies have invested an abundant of money into online advertising. Other

forms of advertising such as in-store ads, print ads, and television and radio ads are still

important but online advertising is growing significantly. Even with this explosion of online

advertising, there are many different forms of advertising that is used on the Internet.
 Increasingly innovative types of advertising are coming into existence as the Web

matures. The major types of online advertising are banner ads, text ads, interstitials, pop-ups ads,

opt in mailing, HTML ads, and rich media ads. It is related to the study because it represents that

internet is rapidly growing instead of other forms of advertising Because of online advertising,

lots of companies or businesses have grown and became more popular since advertisements were

advertised globally and can be seen by lots of people because of the web.

A dissertation conducted by Bharat Vyas. Nanduru from University of Westminster in

London, United Kingdom on August 30, 2012 entitled“Measuring the Effectiveness of Online

Media Advertising”. The researcher concludes that Advertising resources assigned to internet

media have grown dramatically over the past few years. This growth is suggestively driven by

search and performance. Measuring online advertising effectiveness is a very intricate process

particularly in an ever changing environment where new resources are constantly developed

every passing day. It is related to the study because online advertising like Google Adword have

grown and help businesses to deliver more information to the potential customer at a relatively

low cost.

A research study conducted by Minchul Kim from University of Wisconsin-Milwaukee,

United States on August 2013 entitled "The Effects of Online Advertisements and News Images

on News Reception”. The researcher concludes that in recent years, a growing number of people

have considered the Internet to be their major source of news. In contrast, the number of

subscribers to traditional newspapers have decreased drastically so has the advertising revenue

for the newspaper industry.

The decrease in adverting revenue for the industry increases the dependency of online

news services on online advertising revenue which perpetuates the symbiotic relationship
between the newspaper and advertising industries for audiences’ eyeballs in the era of the

Internet. It is related to the study because online advertising is one way of attracting new

customers and to spread advertisements easily. Google Online Advertising and other online

advertising program became useful nowadays because a lot of people were using the internet.

According to Anthony R DiMaggio sunny Press, 2015. The Details how presidents utilize

mass media to justify foreign policy objectives in the aftermath of 9/11. Modern presidents have

considerable power in selling US foreign policy objectives to the public. In Selling War, Selling

Hope, Anthony R. DiMaggio documents how presidents often make use of the media to create a

positive informational environment that, at least in the short term, successfully builds public

support for policy proposals. Using timely case studies with a focus on the Arab Spring and the

US War on Terror in the Middle East and surrounding regions, DiMaggio explains how official

spin is employed to construct narratives that are sympathetic to US officialdom. The mass media,

rather than exhibiting independence when it comes to reporting foreign policy issues, is regularly

utilized as a political tool for selling official proposals. The marginalization of alternative,

critical viewpoints pose a significant obstacle to informed public deliberations on foreign policy

issues. In the long run, however, the packaging of official narrative and its delivery by the media

begins to unravel as citizens are able to make use of alternative sources of information and assert

their independence from official viewpoints. Selling War, Selling Hope is an innovative project

that pushes the fields of political science, political communication, public opinion, and

presidential rhetoric into new and exciting directions. This book is essential reading. Mark

Major, author of The Unilateral Presidency and the News Media. The Politics of Framing

Executive Power This eye-opening exposition offers a radical new conclusion to the debate over

why Americans oppose wars: Americans oppose particular wars for moral reasons. By capturing
the wide range of presidential rhetoric from fear to hope, DiMaggio documents the depths

plumbed by political and other elites to manipulate the American public to support the wars in

Afghanistan and Iraq. In order to counteract American citizens moral opposition to war, political

elites manipulate citizens fears into support for war by giving them hope, but the policies they

choose, more often than not, lead to more war and reason for fear which creates a vicious cycle:

fear hope war. The challenge we face is to break through the noise and the manipulation of

political, economic, and military elites. DiMaggio offers us a way to see clearly. Amentahru

Wahlrab, University of Texas at Tyler

According to Miao Wang, HongJian Qu as a International journal of trends in business

administration, 2017. Based on the relevant literature, this paper study the impact of online

shopping return policy on consumer purchase behavior from the dimension of return policy,

consumer perception, consumer purchase behavior and so on. In the online shopping

environment, the return problem between retailers and consumers is more obvious. Based on the

researching achievements of predecessors, return policy can be divided into three dimensions:

return cost, return time limit and efforts.

According to Thi Song Hanh Pham, Mohammad Faisal Ahammad. This paper examines

the determinants and consequences of online customer satisfaction by considering the entire

online shopping experience, based on data collected from our survey of UK consumers in 2016.

We found evidence that post online purchase experiences including experiences with order

fulfilment, ease of return and responsiveness of customer service are the most significant

contributors to online customer satisfaction. Security assurance, customisation, ease of use,

product information and ease of check-out, all have significant impact but at much lower levels.

The effect of website appearance on customer satisfaction is not significant. Our findings show
that online customer satisfaction leads to repurchase intention, and a likelihood of making

positive recommendations to others, but not willingness to pay more. We also found the effects

of product information, customisation, order fulfilment and responsiveness of customer service

on customer satisfaction are stronger for experience products than search products, while there is

no significant difference in the effects of other determinants for search products and experience

products. Several theoretical and managerial implications are provided, based on our findings.

Local Studies

The honest 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 is that mane online shopping malls are now expansion mode. Lazada is

one of the largest online shopping websites in Southeast Asia. It announced that is has 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 retailers online. Tesco, March 2014)

Based on the study conducted by Lucero, et.al (September 2016), he determined whether

there is a significance relationship between consumer perception and purchase behavior on

online shopping among students. It has been found out that the respondent perceptions and their

purchase behavior on online shopping are both high. To sustain their high perception on online

shopping, it is suggested that web developers should incorporate features on their websites
regarding convenience, security, benefits and leisure. It is important for online marketers,

entrepreneur, and business men to consider the fact that students spend more time on the internet

and that this factor will likely increase the students online shopping behavior.

According to Huyen TK Le, Andre L Carrel, Harsh Shah. The rise of e-commerce has led

to substantial changes in personal travel and activities. We systematically reviewed empirical

studies on the relationship between online shopping and personal travel behavior. We

synthesized and assessed the evidence for four types of effects on various travel outcomes,

including trip frequency, travel distance, trip chaining, mode choice, and time use. Most studies

to date have focused on trip frequency but neglected other travel outcomes. Very few studies

have considered the modification effect, which has significant implications for travel demand

management. In sum, previous studies have not reached a consensus on the dominant effect of

online shopping, in part due to the diversity in variable measurements, types of goods, study

areas, and analytic methods. A limitation of previous studies is the reliance on cross-sectional

surveys, which hinders the distinction between short- and long-term behaviors and between

modification, complementarity, and substitution effects. Our study provides an agenda for future

research on this topic and discusses policy implications related to land use, behavioral changes,

data collection, and modelling for practitioners who wish to incorporate e-commerce in planning

for sustainable urban systems.

According to Heleen Buldeo Rai as a Journal of Transport Geography. Internet,

digitalization and access to technology have transformed contemporary consumption patterns

and habits. Whether or not these changes hold beneficial or detrimental implications for society

is subject to ongoing debate. Specifically concerning the environmental impacts of online and

omnichannel retail, claims have been made on both sides that crediting the efficiency of home
deliveries versus individual shopping trips on the one hand and pointing out complex consumer

behavior on the other hand. Despite intensive research efforts, a solid consensus lack. The

disperse and contradicting scientific knowledge base that is currently available prevents

policymakers and practitioners from implementing sustainability improving measures and from

steering consumers towards sustainable practices. Supported by a systematic review of the

literature, this article presents a framework for understanding the net environmental

sustainability of shopping. The debate is broken down in three impact categories that need to be

considered simultaneously: individual purchases, consumer behavior and consumption

geography. The majority of research articles focus on the environmental impact of purchasing a

single item or a basket of items, in which in-store purchases are substituted by purchases online.

Such studies conclude in favor of e-commerce. The balance shifts when taking changes in

behavior and geography into consideration. While behavioral reflections are on the rise, hardly

any empirical work takes the spatial re-organization of businesses and consumers into account.

The article surpasses the case-study approach and in doing so comprises the body of literature in

a solid framework that is able to guide future discussions and research in more sustainable

directions.

According to Guangliang Xi, Xinyu Cao, Feng Zhen. The Same Day Delivery (SDD)

online shopping may generate different influences on physical store shopping from conventional

online shopping, but few studies have explored this new and burgeoning channel and its impacts.

This study investigates the impacts of SDD online shopping on local store shopping. Quasi-

longitudinal analyses of the retrospective data show that SDD online shopping substitutes for

local store shopping, and that changes in local shopping are associated with SDD online

shopping frequency. These results suggest that SDD online shopping may change local shopping
travel and alter the distribution of commercial land uses over time. Moreover, a comparison

between quasi-longitudinal and cross-sectional analyses suggests that cross-sectional results are

not reliable. Future studies should move beyond cross-sectional design.

According to Xina Yuan, Yi Xie, Shanshi Li, Yajun Shen as a International Journal of

Tourism Research. This study classified food souvenirs into four categories based on two

dimensions of product characteristics and investigated the differences in their online sales. We

also explored the role of online sales platforms and geographical distance in moderating the sales

differences among different categories of food souvenirs. Real sales data were collected from a

regional enterprise that sells food souvenirs on both local and national online shopping

platforms. The data include the sales volume of 606 types of food souvenirs from 2015 to 2018.

The results show that food souvenirs characterized by strong brand awareness and high local

relevance are the first choice of consumers. Interestingly, consumers value brand awareness

more than local relevance when purchasing food souvenirs. Furthermore, the sales platform and

geographical distance moderate the sales volume of different types of food souvenirs. Finally,

implications and recommendations for future research are provided.

According to Paul Freathy, Eric Calderwood as a Journal of Retailing and Consumer

Services. The despite numerous studies of on-line shopping behavior, the impact that the internet

has had upon island communities remains largely unexplored. This is despite previous research

highlighting the difficulties island residents encounter when attempting to access goods and

services. This qualitative, exploratory research study interviews individual and examines the

extent to which on-line provision has reconfigured the purchasing behavior of local residents.

The findings confirm that internet usage is widespread and that a broad range of products are

purchased on-line. However, the paper maintains that these findings underplay the significance
of e-retailing. The internet has had a much more profound impact upon island consumers and the

benefits that are derived from on-line availability extend beyond the reconfiguration of shopping

patterns. The findings illustrate that the benefits that have accrued from internet adoption have

fundamentally transformed the lives of many individuals. It has acted as a liberating mechanism

that has positively impacted upon domestic undertakings and socio-cultural activities.

According to Eric Calderwood, Paul Freathy. There have been numerous studies of on-

line shopping behavior, the impact of internet adoption upon island communities remains largely

unexplored. This is despite the identified difficulties that are encountered when attempting to

access goods and services in these peripheral economies. Limitations in the transport

infrastructure, inconsistent supply and restricted availability have all been acknowledged as

issues affecting local retail provision. Island residents have also traditionally been required to

travel to the main town or mainland in order to shop for key items. This research study examines

the extent to which on-line provision has reconfigured the mobility patterns of residents in the

Scottish isles and whether e-commerce has reduced the propensity of individuals to undertake

shopping related travel. The findings suggest that e-commerce has had only a modest impact

upon consumer travel patterns and that other situational factors moderate the identified benefits

that accrue from purchasing on-line.

According to Nidhi Vishnoi Sharma, Varsha Khattri as a Asian Journal of Management

Research. The marketplace is fast turning into e-marketplace. From needle to ship, everything is

being sold and bought on the internet. With new and new players coming in, it is but natural for

the existing players as well as new entrants to come up with innovative techniques to sell their

goods and services. Offering deals and lucrative discounts is one such glamorous trend. The

authors have tried to examine the factors which lead people to buy these discount coupons and
the consumer behavior towards them. A sample of respondents was administered an e-

questionnaire and their responses were evaluated using statistical tools and techniques. This

paper, thus, identifies typical buying behavior of a consumer while making an e-purchase of a

deal and discount coupon, their preferences towards mode of payment and tendency to

repurchase the same.

Chapter 3

METHODOLOGY

This chapter present the research methodology that will be used in this study. It consists

of a brief description of its basic methodology approach. The main source of data was through

interviews with 30 respondents. This was limited consumers who buy online, at the aged of 18 to

35 years old.

Research Design

This study is quantitative research about the effect of online selling to the buying

behavior of selected resident of Metro Poblacion in Guinayangan, Quezon. The researchers

utilize descriptive research design since its main purpose is to find the effect of online selling to

the buying behavior in different ages of various online shops and what are the key factors that

motivate them to shop online.

Description of Respondents and Sampling Technique

There were thirty selected respondents which are residents of Barangay Metro Poblacion

Guinayangan Quezon on this study, they are selected using random sampling. The researchers
used this sampling in order to easily distinguish the differences and similarities of response from

the subjects.

Research Instrument

The researchers used a self-devised survey questionnaire in the format of Likert Scale

with a five-degree scale (Strongly Agree, Agree, Neither, Disagree, Strongly Disagree) This is

primarily an evaluation instrument that measures. The first part consists of the demographic

profile of the selected respondents in Metro Poblacion in Guinayangan, Quezon. The second part

of the questionnaire is composed of ten statements. For each numbered item in the questionnaire,

each respondent was instructed to check of agreement or disagreement.

Data Gathering Procedures

Researchers used the survey questionnaire to gather data among the selected residents of

Barangay Metro Poblacion. With the use of the survey, researchers were able to gather responses

from the respondents. It was during the free time of the respondents that the researchers went to

their houses to conduct the survey. All the results were tallied, tabulated, analyzed and

interpreted using a statistical method.

Statistical Treatment of Data

Statistical treatment of data is essential to make use of the data in the right form. Raw

data collection is only one aspect of any experiment. The organization of data is equally

important so that appropriate conclusions can be drawn. (Siddhata Kalla, 2009). The following

statistical tools will be used to answer the specific problems in this study.
 1. Frequency and percentage. A frequency and percentage distribution is a display of data

that specifies the percentage of observation that exist for each data point or grouping of

the points.

The process of creating frequency is a display involves identifying the total number of

observations to be presented and counting the total number of observations within each data

point or grouping of data points.

FORMULA:

where:

P= percentage

F= frequency

N= number of respondents

Frequency and percentage were used to identified the data pertaining to the effects we

encountered, as well as to enhance the buying behavior of selected residents in Metro Poblacion

in Guinayangan, Quezon.

2. Weighted Mean. A weighted mean is a kind of average. Instead of each data point

contributing equally to the final mean, some data points contribute more weight than

others. (Andals, 2014)

Formula:
Where:

x = weighted mean

F = frequencies to the given

W = weights

N = total number of respondents