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An Analysis of Customer Satisfaction On Online Selling in Barangay Mactan: Basis For Online Shops and Service Providers
An Analysis of Customer Satisfaction On Online Selling in Barangay Mactan: Basis For Online Shops and Service Providers
An Analysis of Customer Satisfaction On Online Selling in Barangay Mactan: Basis For Online Shops and Service Providers
In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Business Administration
Major in Marketing Management
May 2021
APPROVAL SHEET
i
ACKNOWLEDGMENT
This study would not have been possible without the people's assistance
and guidance, who served as inspiration for this research. The researchers would
like to express their sincere gratitude to the following individuals:
To our Almighty God for keeping them all safe always, this study would
not be possible without His grace, wisdom, and blessings.
To Dr. Marlon F. Montecillo, the Research Adviser. The researchers were
fortunate enough to have him as the adviser, for the time he had spared, despite
his busy schedule, the pieces of advice, lessons, and guidance he bestowed upon
us. He encouraged us to work on this study efficiently.
To Dr. Ily E. Abella, the Dean of the College of Business and Accountancy,
for the approval and support in conducting the study, and serving as the
chairman of the oral defense.
To Mr. Jhun L. Veril and Mr. Edwin C. Compra, the Research Panel
Members, for their effort in giving us clear insights, suggestions, and
recommendations to improve the study.
To Dr. Winnie Marie T. Poliquit, the Research Instructor, for the guidance
in improving the study. Giving us all of her time to explain and share her
personal experiences as a researcher also motivated us to work harder in
accomplishing this study.
To the research respondents, who have shared their precious time despite
of their hectic schedule in answering the survey questionnaire and providing the
researchers all the needed information.
To their families, who extended their support emotionally and financially.
THE RESEARCHERS
ii
DEDICATION
And lastly, we dedicate this study to the future researchers wherein this
study would serve as their reference in the future.
iii
TABLE OF CONTENTS
Page
Acknowledgement i
Dedication ii
Table of Contents iii
List of Tables v
List of Figure vi
Abstract vii
Chapter
1 THE PROBLEM AND ITS SCOPE 1
INTRODUCTION 1
Rationale of the Study 1
Theoretical Background 3
THE PROBLEM 8
Statement of the Problem 8
Significance of the Study 10
RESEARCH METHODOLOGY 11
Research Design 11
Research Environment 12
Research Respondents 12
Research Instruments 13
Dry-run Procedures 14
Research Procedure 14
Ethical Considerations 15
Trustworthiness of the Research 15
DEFINITION OF TERMS 16
2 PRESENTATION, ANALYSIS AND 17
INTERPRETATION OF DATA
Profile of the Respondents 17
Data on the Level of Satisfaction on 18
Services Quality Dimensions as perceived
By the respondents
Findings 35
Conclusion
37
Recommendations 38
REFERENCES 40
CURRICULUM VITAE 43
APPENDICES 48
A Transmittal Letter 48
B Research Instrument 49
C Pilot Testing Result 60
D Statistical Results 63
E Grammarly Result 66
F Location Map 67
G Standard Form 10 – Adviser’s Acceptance 68
H Standard Form 11 – Statistician’s Acceptance 70
I Standard Form 1S - Title Approval 72
v
LIST OF TABLES
1 Research Respondents 12
LIST OF FIGURE
ABSTRACT
INTRODUCTION
Nowadays, several Local Online Sellers just started their online business
because they have seen business opportunities considering the technology,
innovation, and situation that the locals are going through each day. They
provide the needs and wants of the people. However, Local Online Sellers should
know whether their consumers are satisfied by the quality of products and
services rendered to understand how to strategize their target market.
Theoretical Background
in the customers' hands that reminds them of the firm (Moore, 2021). Therefore,
it is the physical image of the service that customers will use to assess quality.
Another theory that chains the study is the PRODQUAL (Product Quality
Dimension) of Garvin (1987), which utilizes a strategy to analyze quality
characteristics. The researchers believe that understanding the consumers'
satisfaction is not just about the quality of service but also the product.
According to Khadka and Maharjan (2017), Product quality is another
fundamental factor in customer loyalty and satisfaction. Product quality is a set
of features and distinct brand product characteristics which help to the ability to
fulfill specified demand. Garvin (1987) had identified different product quality
dimensions such as performance, features, reliability, conformance, durability,
serviceability, aesthetics, and perceived quality.
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THE PROBLEM
1.5 Durability
1.6 Serviceability
1.7 Aesthetics
1.8 Perceived Quality?
2. What are the advantages of purchasing in online shops than physical
stores that made customers choose to purchase online?
The study measured how products and services meet and surpass the
consumers' satisfaction and expectation. Therefore, the results of this study have
seen to be significant and beneficial to the following groups:
Local Online Sellers. Through this study, the local online sellers will
gain more support, sales, and profit by improving their quality of products and
services to meet the consumers' standards leading to satisfaction. Additionally, to
gain an advantage on how to strategize their target market.
Online Consumers. The study will help the consumers to meet their
satisfaction based on the different standards towards online shopping. Through
this, they might get much more convenience, access to a more extensive
selection of high-quality products, and more competitive prices.
Manufacturing and Courier Companies. The study's recommendation
serves as the basis for some manufacturing and delivery services companies to
provide good quality products and services that can attract more customers and
clients.
Researchers. This study will bring satisfaction to the researchers
because it helps address the consumers' criteria of standards to be satisfied and
give the local online sellers recommendations to gain more support, sales, and
profit.
Future Researchers. This research study serves as a reference to future
researchers who want to broaden the study of Online Selling.
11
RESEARCH METHODOLOGY
Research Design
The study applied the descriptive survey method, with the questionnaire
serving as the primary tool in data gathering. The researchers used Google
Forms to acquire information from the respondents. This method of sampling
would also help to minimize costs and consolidate data more efficiently.
Figure 1 shows the flow of the research study. It served as the model
for the whole research. The primary part was the respondents’ demographic
profile. The second part includes the process of developing a Descriptive
Methodology, Collecting Data, and analyzing and interpreting data. The
evaluated data and consumer reviews were the basis for developing Marketing
Strategies for Local Online Sellers to enhance the quality of products and
services.
Research Environment
The study was conducted in Sitio Isuya and Sitio Angasil of Barangay
Mactan (one of Lapu-Lapu City's most well-known barangays), with an estimated
combined population of 700 people.
Research Respondents
TABLE 1
Research Respondents
n= 100
Occupational Status n Percent
13
Student 59 59%
Self-employed 13 13%
Employed 23 23%
Unemployed 5 5%
Retired 0 0%
Total 100 100%
Research Instrument
The main instrument used to gather data needed in the study was
administered to the respondents using the google form. The first part of the
questionnaire is to determine the respondent’s profile regarding their age,
gender, occupational status, and monthly income. The second and third part
presents and summarizes the data on satisfaction on Services Quality
Dimensions. The fourth and fifth part presents and summarizes the data on the
level of satisfaction on Product Quality Dimensions, and the last section contains
the level of respondents’ perception of the advantages of purchasing online
shops over physical stores.
Dry-run Procedures
Research Procedure
Ethical Considerations
In one of the significant parts of the survey, ethical issues were addressed
during research. During the survey process, the researcher did require any
private information such as age, gender, occupational status, and monthly
income. Participating in the survey was entirely voluntary, and each individual
was fully introduced to the main objective of the research and was asked their
consent to participate and fill out the questionnaire. During the whole process of
filling out, respondents had the full right to stop at any point and had no
obligation to continue whatsoever if they were not willing to.
DEFINITION OF TERMS
Locals. These are the residents who lived in the particular area.
Product Marketing. This term refers to the process of promoting and selling a
product to a customer.
CHAPTER 2
This chapter represents the results of the data gathered. The first
part presents the profile of the respondents. The second and third part presents
and summarizes the data on satisfaction on Services Quality Dimensions. The
fourth and fifth part presents and summarizes the data on the level of
satisfaction on Product Quality Dimensions, and the last section contains the
level of respondents’ perception of the advantages of purchasing online shops
over physical stores.
Table 2 shows the profile of the Barangay Mactan residents based on age,
gender, occupational status, and monthly income. The result shows that
respondents aged in the range of 23-29 years old are equivalent to 49.00
percent. This data implies that this is the average age for online consumers since
the majority own a mobile phone device and spend an average of 10 hours a day
online (Sanchez, 2020).
18
As for the monthly income, 60.00 percent of the respondents were under
5,000, considering that majority of the respondents were students who rely on
their allowances from their parents and part-time jobs.
Table 2
Profile of the Respondents
n=100
Indicators Frequency Percentile
A. Age
16-22 48 48.00
23-29 49 49.00
30-36 3 3.00
Mean: 1.55
SD: 0.56
B. Gender
Male 61 61.00
Female 39 39.00
Mean: 1.39
SD: 0.49
C. Occupation Status
Student 59 59.00
Self-employed 13 13.00
Employed 23 23.00
Unemployed 5 5.00
Mean: 1.74
SD: 0.98
D. Monthly Income
Under 5,000 60 60.00
19
5,000-10,000 20 20.00
10,001-15,000 6 6.00
15,001- 20,000 6 6.00
20,001- 25,000 5 5.00
25,001 and above 3 3.00
Mean: 1.85
SD: 1.35
As for assurance, customers want to shop again when the online shop is
trustworthy was recorded as the highest mean at 4.58 and recorded as highly
satisfied. The second means was making the customers feel safe in their
transactions and the confidence to shop online when sellers have the knowledge
to answer questions both means respectively at 4.57 which is still recorded as
highly satisfied. Subsequently, the online shop's confidence must instill in
customers about personal information should be kept confidential was recorded
as the third mean at 4.54 and recorded as highly satisfied. When the online seller
20
is interacting with courtesy, the safety and security of customers is the lowest
mean at 4.51 and recorded as highly satisfied. According to Rahi et al., 2017,
assurance means security and confidentiality that an online shop provides to its
customers. Besides, customers want an online shop to have formal privacy, a
confidentiality policy, secure access, and certifications or assurance.
3D view of items on sale because they can quickly figure out the products they
are going to purchase.
Table 3
Level of Satisfaction on Services Quality Dimensions
as perceived by the Respondents
SERVICE QUALTY DIMENSIONS Mean Interpretation Rank
A. Reliability
Delivered parcels on time and at 4.56 Highly Satisfied 2
the right place.
Online shop’s commitment to fulfill 4.59 Highly Satisfied 1
services.
Exact specifications are followed. 4.55 Highly Satisfied 3
Consistency of the delivery service. 4.47 Highly Satisfied 4
Error-free records of online shops 4.35 Highly Satisfied 5
Aggregate Mean 4.50 Highly Satisfied
B. Assurance
Safety and security when the online 4.51 Highly Satisfied 4
seller is interacting with courtesy.
Sellers’ way of keeping confidential 4.54 Highly Satisfied 3
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personal information.
Trustworthiness of the Online Shop 4.58 Highly Satisfied 1
Safeness of transactions 4.57 Highly Satisfied 2
Knowledgeable sellers to answer 4.57 Highly Satisfied 2
customers’ concerns
Aggregate Mean 4.55 Highly Satisfied
C. Responsiveness
Seller’s updates and informs me 4.61 Highly Satisfied 2
about parcel’s status.
Importance of chat performance 4.61 Highly Satisfied 2
rate.
Online seller’s responds to 4.55 Highly Satisfied 4
customers’ request willingly.
Online seller’s quick action on 4.58 Highly Satisfied 3
resolving issues.
.Informing customer about the 4.62 Highly Satisfied 1
information/services the online
shop can provide.
Aggregate Mean 4.59 Highly Satisfied
D. Tangibility
The attractiveness of the 4.49 Highly Satisfied 3
app/website
Good product photography, proper 4.57 Highly Satisfied 1
size of picture matching the exact
product’s description.
I can mentally comprehend a 4.36 Highly Satisfied 5
product and can have a clear
mental representation of it.
Live and virtual online selling helps 4.56 Highly Satisfied 2
me see what I exactly wanted in
23
the product.
Having 360-degree viewing that 4.43 Highly Satisfied 4
can move around the picture of the
product and focus on exactly what I
wanted.
Aggregate Mean 4.48 Highly Satisfied
E. Empathy
Making the opinions of customers 4.58 Highly Satisfied 1
to be the first priority
Online sellers are expected to give 4.40 Highly Satisfied 4
customers personal attention
Making me feel heard by 4.52 Highly Satisfied 3
acknowledging my feelings
I easily get upset when online 4.35 Highly Satisfied 5
sellers are being rude to me.
Online sellers’ efforts to understand 4.53 Highly Satisfied 2
customers’ context and behavior.
Aggregate Mean 4.48 Highly Satisfied
Table 4
Summarized Data on the Level of Satisfaction
on Services Quality Dimensions
Variables Mean Interpretation Rank
SERVICE QUALTY DIMENSIONS
A. Reliability 4.50 Highly Satisfied 3
B. Assurance 4.55 Highly Satisfied 2
C. Responsiveness 4.59 Highly Satisfied 1
D. Tangibility 4.48 Highly Satisfied 4
E. Empathy 4.48 Highly Satisfied 4
Overall Aggregate Mean 4.52 Highly Satisfied
description of the texture, size, and appearance was recorded as the second
mean at 4.58, which is still recorded as highly satisfied —followed by the
expectation of delivered products based on measurable attributes as the third
mean at 4.57. Next was the satisfaction when the product gives comfort, which
was recorded as the fourth mean at 4.53, and the performance of a product
often influences the profitability or reputation of the customers as the lowest
mean at 4.49, which is recorded as highly satisfied.
The features, the online shop's easy access, and categorization were
recorded as the highest mean at 4.53 and recorded as highly satisfied. The
second means was Online shopping, where consumers can choose products with
the most detailed product description and provide good quality product photos
with image zoom and thumbnails both means respectively at 4.52, which is still
recorded as highly satisfied. Subsequently, the encouragement of online shop to
the consumers to buy the products through review box where they can learn
about the product by reading through reviews and comments was recorded as
the third mean at 4.50 and recorded as highly satisfied. The accurate photo of
the characteristics of the product that was shown as the lowest mean at 4.32
and recorded as highly satisfied.
As for reliability, the highest mean at 4.63 states that consumers felt
satisfied if the product that they purchase online comes with a warranty. The
various payment methods where the customers can pay that the online shop
provides are recorded as the second mean at 4.61 and are recorded as highly
satisfied. Subsequently, the refund that the online seller provides if a particular
problem exists recorded as the third mean at 4.56 and the sufficient contact
details, including the physical address and a telephone number that the online
shop provides, recorded as the fourth mean at 4.46, which both were recorded
as highly satisfied. The products designed for particular applications must be able
and expected to perform the said applications recorded as the lowest mean at
4.39 and recorded as highly satisfied.
26
As for conformance, the highest mean at 4.58 states that when the quality
of a product entirely conforms to the specification of a product (design) can
make customers satisfied. The conformance to product life span is specified as
the second mean at 4.54 and is recorded as highly satisfied. The third means
were conformance to product feature and standard packing of product especially
if the product is fragile both means at 4.52 and recorded as highly satisfied.
Conformance to a specified quantity of product if per pack as the lowest mean at
4.50 and recorded as highly satisfied.
As for durability, customers preferred products that are durable and long-
lasting, and they will surely take care of the product even if it is durable so that it
will surely last longer were both recorded as the highest means at 4.59, which is
recorded as highly satisfied. Subsequently, the consumer's willingness to pay for
the amount based on the quality and durability of the item was recorded as the
second mean at 4.53 and recorded as highly satisfied. The durability of the raw
materials to sustain in the market as the third mean at 4.52 and recorded as
highly satisfied is followed by the durability of the raw materials. The products'
longevity is the lowest mean at 4.49 and recorded as highly satisfied.
unique styles that suit their target customers' standard and must have its original
sense of style as the second and third means respectively at 4.56 and 4.55,
which is still recorded as highly satisfied. Followed by the style of the product
that identifies a company or branch as the fourth mean at 4.52, and the
customer's preference to an online shop that has its unique designs of products
as the lowest mean at 4.47, which both marked as highly satisfied.
Lastly, as for the perceived quality, the customer's happiness when the
look of the product that is very similar to the one showed in the picture recorded
as the highest mean at 4.67 and recorded as highly satisfied. The customer's
satisfaction when a product looks premium and brand new recorded as the
second mean at 4.59 and is recorded as highly satisfied. Subsequently, The
ordered product of the customer was the same as ordered recorded as the third
mean at 4.47 and the products must look, sound, touch and smells high quality
and newly recorded as the fourth mean at 4.43, which both were recorded as
highly satisfied. At first glance, the product must look original and high quality as
the lowest mean at 4.35 and is recorded as highly satisfied.
Table 5
Level of Satisfaction on Product Quality Dimensions
as perceived by the Respondents
PRODUCT QUALITY DIMENSION Mean Interpretation Rank
A. Performance
The product incorporates features that 4.61 Highly Satisfied 1
make them free from any deficiencies or
defect.
Comfortability of using the product. 4.53 Highly Satisfied 4
Delivery of products based on measurable 4.57 Highly Satisfied 3
attributes
The performance of a product influences 4.49 Highly Satisfied 5
the profitability or reputation of the
28
customers.
The product’s accurate description 4.58 Highly Satisfied 2
according to texture, size, and appearance
Aggregate Mean 4.56 Highly Satisfied
B. Features
Through online shopping, I can choose 4.52 Highly Satisfied 2
products with the most detailed product
description.
The online shop/website’s access and 4.53 Highly Satisfied 1
categorization of products
The online shop provides a good quality 4.52 Highly Satisfied 2
product photos with image zoom and
thumbnails.
The online shop’s encouragement to buy 4.50 Highly Satisfied 3
the product through review box where I
can learn about the products by reading
reviews and comments.
The accurate photo of the characteristics 4.32 Highly Satisfied 4
of the product that was shown
Aggregate Mean 4.48 Highly Satisfied
C. Reliability
The product I purchase online comes with 4.63 Highly Satisfied 1
warranty.
The online shop’s various payment 4.61 Highly Satisfied 2
methods where I can pay either through
Gcash, debit/credit card or even cash on
delivery (COD)
The online shop’s given sufficient contact 4.46 Highly Satisfied 4
29
last longer.
Product’s durability and longevity 4.59 Highly Satisfied 1
Aggregate Mean 4.54 Highly Satisfied
F. Serviceability
Repairing of the products at the right time 4.54 Highly Satisfied 5
and methods.
Seller’s replacement and service warranty 4.59 Highly Satisfied 4
offers.
Immediate restoration of the broken 4.65 Highly Satisfied 2
products.
Seller’s efficiency of repairing the item on 4.62 Highly Satisfied 3
time.
Genuine help of the service person 4.68 Highly Satisfied 1
Aggregate Mean 4.62 Highly Satisfied
G. Aesthetics
The style of the product identifies a 4.52 Highly Satisfied 4
company or a brand.
Sellers’ offered unique styles that suits the 4.61 Highly Satisfied 2
target customer’s standard.
The seller’s variety of unique 4.64 Highly Satisfied 1
designs/options to choose for the
customers.
Online shop’s uniqueness of designed 4.47 Highly Satisfied 5
products.
Online shop’s original sense of styles. 4.54 Highly Satisfied 3
Aggregate Mean 4.56 Highly Satisfied
H. Perceived Quality
The similarity of the product to the shown 4.67 Highly Satisfied 1
picture.
31
CHAPTER 3
SUMMARY
FINDINGS
CONCLUSION
RECOMMENDATIONS
REFERENCES
Internet Sources
Abdissa Gemechu Gobena (2019). The Impact of Service Quality on Customer
Satisfaction: A Case Study on Nekemte Municipality, Oromia Region,
Ethiopia. Retreived from https://bit.ly/2SAJ4Fq .
Ashok, M. (2014). Dimensions of Product & Service Quality. Retrieved from
https://bit.ly/3fpzsGr.
Arnaudovska, E. et al. (2010). University Student Shopping Patterns: Internet vs.
Brick And Mortar. The Journal of Applied Business Research Vol. 26,
no.1. Retrieved from https://bit.ly/3v5qG5c.
Birkett, A. (2020). Customer Satisfaction: The Ultimate Guide. Retrieved from
https://bit.ly/3mXcubU.
Burnap, A. et al. (2019). Design and Evaluation of Product Aesthetics: A Human-
Machine Hybrid Approach. Retrieved from https://bit.ly/3x4SZ5L.
Chambers, S. (2020). The Importance of Customer Satisfaction. Retrieved from
https://bit.ly/3sve0TQ.
Choi, T.M. et al. (2017). Service Quality of Online Shopping Platforms: A Case-
Based Empirical and Analytical Study. Journal of Mathematical
Problems in Engineering. Retrieved from https://bit.ly/2QFYwij.
Dorrington, P. (2020). How does empathy influence customer service - and what
is working well?. Retrieved from https://bit.ly/3aoZvup.
Ennew C. et al. (2018). Communicating value to enhance service visualization.
Retrived from https://bit.ly/2SuyTlE.
Fuller, D. (2016). Advantages of Shopping Online. Retrieved from
https://bit.ly/3go8IqO.
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CURRICULUM VITAE
Personal Data:
Educational Attainment:
CURRICULUM VITAE
Personal Data:
Educational Attainment:
CURRICULUM VITAE
46
Personal Data:
Educational Attainment:
CURRICULUM VITAE
47
ERECCA A. ENCIENZO
Rivera Street, Jugan, Consolacion, Cebu 6001
09510349140
ereccae@gmail.com
Personal Data:
Educational Attainment:
CURRICULUM VITAE
48
Personal Data:
Educational Attainment:
Good day!
The undersigned are the third year students of the College of Business and
Accountancy (CBA). We are currently enrolled at the University of Cebu Lapu-
Lapu and Mandaue taking up Bachelor of Science in Business and Accountancy
major in Marketing Management.
With this, we would humbly ask permission from your good office to conduct a
research study in this school pertaining on: “An analysis of Consumer Satisfaction
in Barangay Mactan on Online Selling: Basis for Marketing Strategy for Local
Online Shops”.
Rest assured that the gathered data will be kept with utmost confidentiality.
Respectfully:
Shela Mae B. Barro
Denise Khonamarie C. Apas
John Larry L. Cinco
Erecca E. Encienzo
Rea Mae N. Gimoros
Noted by:
DR. WINNIE MARIE T. POLIQUIT DR. MARLON F. MONTECILLO
Instructor Research Adviser
Approved by:
Before Spain colonized the place in the 16th century, it was a Muslim
community. A Portuguese explorer named Ferdinand Magellan arrived in the area
in 1521 and became embroiled in tribal strife among the island's tribes, only to
be killed in battle by the warriors of Datu Lapu-Lapu, one of the island's
chieftains.
The current name "Mactan" came from the earlier form of a name,
"Manctan." However, there was evidence that as early as the 17th century, the
69
place was already named "Mactan." However, Oral histories claiming that the
name "Mactan" developed from the name "Mangatang," which means "pirate."
\
APPENDIX J – Compliance Checklist
Standard Form 2S
75