ARELLANO UNIVERSITY

PLARIDEL CAMPUS
SENIOR HIGH SCHOOL DEPARTMENT
ACCOUNTANCY, BUSINESS AND MANAGEMENT

CHAPTER 2

REVIEW OF RELATED LITERATURE

More Filipinos embrace online shopping

Consumer payment attitudes show that more Filipinos are using digital commerce

platforms to make cashless payments. For the first time, more Filipinos are making

purchases through e-commerce. This is, to be sure, a new habit for many Filipinos.

During the pandemic, 52 percent of Filipinos made their first online purchases through

apps and websites, and 43 percent made their first online purchases through social media

channels.

Prior to the pandemic, 7 out of 10 payments were made in cash by respondents;

now, only 5 out of 10 payments are made in cash. We believe that as more people begin

to use digital commerce and platforms, they will embrace the benefits of shopping online,

resulting in continued e-commerce growth (Guan Wolbert, 2020).

The Pros and Cons of Online Shopping

"Online Shopping is more popular today than ever before" (US CENSUS

BUREAU 2021). Due in part to new and growing technology, online shopping has

become incredibly easy and convenient. It also offers a greater selection than one store

front, opening the doors to products and services that may not be available at a nearby

brick - and - mortar store.

 ARELLANO UNIVERSITY
PLARIDEL CAMPUS
SENIOR HIGH SCHOOL DEPARTMENT
ACCOUNTANCY, BUSINESS AND MANAGEMENT

Using your computer or another digital device for shopping needs can be

convenient, have a greater selection, easy access to information, offer more option to

choose and provide you with insight you might not find in the person at the store, is a pro

of online shopping. Shopping for items online can also have its pitfalls, including hidden

price markups, an increased risk of fraud, and the inability to use or wear the item you

purchase right away is a con of online shopping.

The surprising reason Jeff Bezos loves bad reviews from divinely discontent

Amazon customers

To meet the high expectations of hundreds of millions of dissatisfied customers

around the world is to have a high standard. Their expectations never stay the same, they

constantly improve. Having the ability to whip out the smartphones to read the reviews,

compare the prices from multiple retailers, and find out how fast it will ship or be

available for pick up is one of the reasons that Amazon strives to meet those dissatisfied

customers' high standards.

Establishing a high standard is worth the effort, and there are numerous

advantages. There's no turning back once you've experienced high standards. (Jeff Bezos

2018)

The curious origins of online shopping

Groceries, books, beauty supplies, inflatable children’s pools as the pandemic

persists, we have relied on ecommerce to get things to our doors, contact-free and fast.

These things range from essentials to not-so-quite essentials: in Canada in April, online
 ARELLANO UNIVERSITY
PLARIDEL CAMPUS
SENIOR HIGH SCHOOL DEPARTMENT
ACCOUNTANCY, BUSINESS AND MANAGEMENT

shoppers trapped at home were scooping up canned quail eggs, sitar strings and

trampolines for the kids.

From panic buying and hoarding, we already know that the stress of the pandemic

can break our brains and morph our buying habits. However, even though online

shopping has been around for years – actually, decades – it’s only become truly

mainstream recently.

It began in 1984, a 72-year-old grandmother used her TV remote control to order

margarine, cornflakes, and eggs. Pizza Hut began selling pizzas online in 1994 via their

early 'Pizza Net' portal – an ancient-looking flat, grey website. Little did inventors

Michael Aldrich and Jane Snowball realize that their ingenious technological experiment

would lay the groundwork for a £186 billion industry in the United Kingdom. It was

dubbed a "new venture that is the cyberspace equivalent of a shopping mall," and it was

the first digitally secure transaction. Today, almost all major corporations are online, but

in the beginning, only a few committed to an ecommerce strategy – one of which was

Pizza Hut.

The mid-1990s globalization was also a major catalyst that made online shopping

a viable and highly profitable selling channel. The connected world enabled production to

scale up quickly and significantly for a wide range of products. Consumers were eager to

find the best or most acceptable quality product at the lowest possible price. They were

able to conduct extensive research before purchasing an item thanks to the internet. It also
 ARELLANO UNIVERSITY
PLARIDEL CAMPUS
SENIOR HIGH SCHOOL DEPARTMENT
ACCOUNTANCY, BUSINESS AND MANAGEMENT

taught them how to evaluate the price-to-value ratio and, finally, how to purchase.

(Thomas Serdari ,n.d)

PayMaya offers online shopping insurance at no additional cost

According to Shailesh Baidwan (2022), increasing consumer trust in digital

transactions is critical for us, and we want our customers to have greater peace of mind

when they use PayMaya for online shopping. Buyer Protect is particularly relevant at this

time, as more Filipinos embrace e-commerce at an increasing rate, with PayMaya at the

forefront of enabling end-to-end seamless digital payments.

As Gary Wong (2022) mentioned, AIG is pleased to collaborate with PayMaya.

Our collaboration exemplifies what can happen when two innovative companies

collaborate to meet the changing needs of today's online shoppers. Through Buyer

Protect, we are making online shopping safer, more convenient, and less stressful for all

Filipinos.

Synthesis

Online shopping is continuously increasing as time goes on. It has been used by a

lot of people locally and internationally because it makes our lives simple and easier.

Since the COVID-19 pandemic came, buying online has become the way to make people

have what they want and what they need. Shopping online allows consumers to browse

the finest quality products at the most affordable possible price.

 ARELLANO UNIVERSITY
PLARIDEL CAMPUS
SENIOR HIGH SCHOOL DEPARTMENT
ACCOUNTANCY, BUSINESS AND MANAGEMENT

Online shopping allows consumers to buy their necessities, such as clothes, food,

and other things, via the internet. It is one of the great inventions that helps people buy

things for their own homes. They no longer have to go to malls or leave the house to

hustle and line up in long lines. Nowadays, online shopping has become a habit for

people because it is easier to find the necessary equipment for consumers that they cannot

find in malls. It is very important to people because we can avoid leaving the house,

especially now that there is a pandemic, we can maintain social distance with people.

Today, many people do business online because it makes it easier to grow their business

and be instantly recognized and enjoyed by people. Online shopping also benefits people

who want to do business online by allowing more consumers to learn about and enjoy

their products.

On the other hand, shopping online brings consumers some cons. People can't

touch or see the things they wish to buy in person, so assessing the quality of these

products is difficult at first. As a result, they may opt for low-quality things. Furthermore,

because customers are dissatisfied with the products they purchased online, they are more

likely to abandon them.

The researchers' aim with this study was to determine and analyze the effects of

the use of online shopping. The researchers also aimed to know the preference and the

experiences of the Accountancy, Business and Management students in shopping online.

In addition, it aims to know the effectiveness of shopping online and the reasons why

shopping online is effective or not effective for them.