Final Version MR Paper - Sanchez - Delos Santos - Rosales

A Marketing Research Paper
A Study of Brand Loyalty Toward the
Use of Shopee Application in BF Homes, Parañaque City
Presented to the Faculty of the College of
Business of Administration
In partial fulfillment of the requirements for the degree of
Bachelor of Science in Business Administration
Major in Marketing Management
by
DELOS SANTOS, BILLY B.
ROSALES, GRAHAM RUSSELL J.
SANCHEZ, MICHAEL C.
April 2022
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Table of Contents
Page
APPROVAL SHEET 6
ACKNOWLEDGEMENT 7
ABSTRACT 8
CHAPTER I. THE PROBLEM AND ITS BACKGROUND
Introduction 9
Theoretical Framework 12
Conceptual Framework 14
Statement of the Problem 17
Scope and Limitation 19
Significance of the Study 20
Definition of Terms 22
CHAPTER II. REVIEW OF RELATED LITERATURE AND STUDIES
Review of Related Literature and Studies 23
CHAPTER III. METHODOLOGY
Method of Research 30
Population, Sample Size and Sampling Technique 31
A Study of Brand Loyalty Toward the Use of

Shopee Application in BF Homes, Parañaque City 2
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Description of Respondents 33
Research Instrument 33
Data Gathering Procedure 34
Statistical Treatment of Data 35
CHAPTER IV. RESULTS AND DISCUSSION
Results and Discussion 38
CHAPTER V. SUMMARY, FINDONGS, CONCLUSIONS AND
RECOMMENDATION
Summary 53
Findings 54
Conclusions 58
Recommendations 60
BIBLIOGRAPHY
Bibliography 62
APPENDICES
Survey Questionnaire 67
Curriculum Vitae 69

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LIST OF PARADIGMS
Paradigm 1. Four Dimensional Loyalty (Oliver, 1999) 12
Paradigm 2: IPO Method 16
LIST OF TABLES
Table 1: Analysis of Relative Importance Index Values Adopted from Akadiri 37
Table 2: Frequency and Percentage Distribution of Respondents in terms of

38
Age
Table 3: Frequency and Percentage Distribution of the Respondents in

39
Terms of Data Privacy

39
Terms of Completeness and Accuracy of Information

40
Terms of Price Ceiling

40
Terms of Ease of Transactions

41
Terms of Courier Dependability

42
Terms of Payment Methods

42
Terms of Coin-Earning Games

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43
Terms of Flash Deals

44
Terms of Utility Payment

44
Terms of Discount Coupons and Free Vouchers

45
Terms of User-Friendly Interface

46
Terms of Attractiveness of App Design

46
Terms of Pixie - Shopee Virtual Assistant

47
Terms of Live Streams

48
Terms of Shopee Feed
Table 18: Relative Importance Index of Each Factor in Product Quality 49
Table 19: RII-Level of Each Factor in Product Quality Attributes 49
Table 20: Relative Importance Index of Each Factor in Product Features 50
Table 21: RII-Level of Each Factor in Product Feature Attributes 51
Table 22: Relative Importance Index of Each Factor in Product Design 51
Table 23: RII-Level of Each Factor in Product Design Attributes 52

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APPROVAL SHEET
This undergraduate research paper entitled “A STUDY OF BRAND LOYALTY TOWARD
THE USE OF SHOPEE APPLICATION IN BF HOMES, PARAÑAQUE CITY” prepared
and submitted by BILLY DELOS SANTOS, GRAHAM RUSSELL ROSALES, AND
MICHAEL SANCHEZ, in partial fulfillment of the requirements for the degree in
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION MAJOR IN MARKETING
MANAGEMENT has been examined and presented for Oral Examination with a passing
grade of _________%.
Ms. Jiebeth Bueno
Subject Adviser
PANEL OF EXAMINERS
Approved by the committee on Oral Examination
MS. DARLYN ALSOLA MS. MERCY EVANGELISTA
Panel Member Panel Member
DOC. ELEMELY PAULINE
Chairman Member
Accepted and Approved
Dean, College of Business Administration & Entrepreneurship

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ACKNOWLEDGEMENT
The continuous expansion and improvement of e-commerce, especially in this time
of pandemic, has piqued the interest of the researchers to conduct this study. In totality,
this study definitely helped the researchers in gaining more insightful understanding on
what drives brand loyalty from the consumers. Given the limited time to conduct this
thesis, the researchers would like to thank the people who have encouraged and helped
them in making this possible to complete.
The researchers are especially grateful for the guidance of Ms. Jiebeth Bueno
throughout the creation of this research. Without her knowledge and kindness, they would
not have been able to complete the most rewarding academic experience of their college
endeavors. Furthermore, the researchers would also like to thank Ms. Kim Manuel of
Parañaque City Planning and Development Coordinator's Office for helping them in
acquiring significant information about the population data of the city in question. The
researchers would also like to extend their gratitude to those people from barangay BF
Homes, Parañaque City who allotted their time and effort and gladly participated in the
survey. Without the help of these people, completing this most challenging academic
requirement would have been impossible.
Delos Santos, Rosales, Sanchez
Researchers

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ABSTRACT
This study aims to study the brand loyalty of the residents in Parañaque City,
specifically in barangay BF Homes, toward the use of the Shopee application by
measuring their product perception based on the three product attributes - product quality,
product features, and product design. The researchers conducted a survey with a total
sample of 398 respondents. Using the relative importance index analysis, the researchers
were able to identify the most important elements in every product attribute being tested
in this study.
The researchers found out that In terms of the product quality, Price Ceiling and
Ease of Transactions got the highest rank with a relative importance index of 0.8373 or
0.84, perceived with high importance level. As for the product features, Payment Methods
and Discount Coupons and Free Vouchers received the top rank with a relative
importance index of 0.8247 or 0.82, both are deemed with high importance level.
Concerning the product design, the User-Friendly Interface got the highest rank with a
relative importance index of 0.8624 or 0.86, and is given a high importance level.

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CHAPTER I
THE PROBLEM AND ITS BACKGROUND
I. Introduction
Globally, commerce has continued as a fundamental function of a thriving society.
Although its execution has changed drastically throughout different eras, it remains to be
a tool of development and progress.
In the Philippines, through years of exposure in both local and foreign trade, the
modern-day Filipino has an innate entrepreneurial spirit; according to research (Angeles-
Tan, 2017), millennial entrepreneurs have launched at least twice as many enterprises in
comparison to the older generation of entrepreneurs. Fortunately for this generation, they
are equipped with highly distinct tools that allow them to accomplish their entrepreneurial
aspirations. One such tool is the online selling platform Shopee.
According to the research conducted by iPrice in 2020 in partnership with App
Annie Intelligence and SimilarWeb about the top e-commerce platforms in the Philippines
for the third quarter of 2019, the top three firms in the country's e-commerce market have
constantly been Lazada, Shopee, and Zalora - with Shopee being the greatest rival.
Based on the said research, Shopee continues to top the list of Southeast Asia's most
downloaded e-commerce shopping apps.
Shopee is a multinational technology business based in Singapore that specializes
in e-commerce. It was launched in Singapore, Indonesia, Malaysia, Thailand, Taiwan,
Vietnam and the Philippines in the year 2015. This platform is tailored fit for each region,

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providing customers a wide selection of products with an easy, secured, and fast online
shopping experience through strong payment and fulfillment support.
However, according to the Philippine News Agency, thousands of complaints from
Shopee users are being investigated recently by the Department of Trade and Industry.
Most complaints are about violations that are associated with the Price Act, defective
products, deceptive and unconscionable sales practices. Ignoring this number of
complaints, regardless how small it may seem in comparison to the total population of
Shopee users in the Philippines, may still put the company at risk in the long run. This is
a sign for the company to reinforce their purpose of existence which is to provide an easy,
secured, and fast online shopping experience.
In 2018, Khamwon and Kamkliang argued that brand loyalty is something that
keeps customers from repurchasing and supporting the brand. Understanding how
customers perceive a brand is very critical for the company. Customers' satisfaction
influences their loyalty to the company (Wang et al., 2018). It is apparent that brand loyalty
is linked to repurchases made without hesitation. The attitude towards brand loyalty is
interconnected to preserving the credibility of the brand that is given to the customer
(Khamwon & Pattanajak, 2021). One direct way to to know how your customers perceive
your product is by allowing them to give their feedback. These reviews are important
information sources for companies analyzing users' demands (Guo et al., 2017).
A research from Ryantika and Hidayat (2021) in Indonesia, under the title
“Consumer Preference Analysis of Using Shopee Application with Conjoint Method”,
showed that the consumer preference at its peak point in terms of product features has

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something to do with the delivery charge subsidy, while ShopeePay Later feature being
the least preferred. As for the product quality, they found out that affordable price ceiling
got the highest preference while safety in transaction being the lowest. In addition to that,
they also found out that as for the product design, the Shopee application got the highest
preference in terms of its user-friendly interface while the visuals of the application got
the lowest-level perception.
By using three product attributes as independent variables in this research -
namely the product quality, product features, and product design, the researchers
attempted to measure the perception of Shopee users in barangay BF Homes towards
the app.
Using the relative importance index, the researchers were able to identify the most
important elements in the variables tested that may be considered as key players in
improving brand loyalty.
The information acquired in this study may not necessarily represent the entire
Shopee user base. However, this research may serve as an additional resource
especially that there are only few local studies pertaining to this topic.

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II. Theoretical Framework
A theoretical framework is a rationally established and interrelated set of concepts
and premises that a researcher develops to design a study (Varpio et al., 2020).
Paradigm 1. Four Dimensional Loyalty (Oliver, 1999)
Paradigm 1 illustrates the theoretical framework of this study which adapted the
theory proposed by Richard L. Oliver in 1999 - the Four-Dimensional Loyalty. Oliver was
a prominent researcher in the field of consumer psychology. In this field, he made
remarkable contributions specifically in the areas of customer satisfaction, customer
loyalty, and post-purchase processes. For the past decades, there have been several
approaches to study what customer loyalty really is. Some theorists even defined loyalty
as a buying frequency or buying pattern (Tucker, 1964; Sheth, 1968).
This theory of Four-Dimensional Loyalty was proposed after Dick and Basu
introduced the Three-Dimensional Loyalty in 1994. They presented three sequential
factors - namely the cognitive, affective, and conative, to make sense of what customer

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loyalty is. However, this was expanded by Oliver five years later. In his framework, Oliver
introduced four stages of customer loyalty - cognitive, affective, conative, and action
loyalty. This mainly suggests that cognitive loyalty is formed first, followed by affective,
then conative, until it reaches the action loyalty.
Cognitive loyalty forms when customers are able to perceive that the qualities and
features of a certain product/brand are more rewarding and expedient in comparison to
other available alternatives. This crucial stage can be achieved when the customer has
experienced the brand first-hand or has become aware through second-hand information.
When the customer has obtained a positive perception of the product/brand and finds it
copacetic, this takes the customer to the second stage.
Affective loyalty is the second stage towards brand loyalty. Oliver defines this stage
as the emotional attachment of the customer to the brand. This is basically due to the
formation of consciousness and affection in the customer's mind. According to Oliver,
cognition may be vulnerable to new alternatives available, however, he said that affection
is hard to change. Securing this stage of loyalty should be a top priority of the marketers.
Conative loyalty is the third stage. According to Oliver, this stage becomes more
possible to attain when a customer starts showing repeated formation of positive
perception toward a brand. This stage can be regarded as the point where the customer
has formed deep commitment or devotion in buying from a certain brand. However, Oliver
pointed out that this does not necessarily mean that this will automatically lead the
customer to the final stage of loyalty - the action. Still and all, this stage provides a higher
probability of leading the customer to the final stage.

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And lastly, action loyalty is the stage in which the intention formed in the conative
loyalty is finally put into action.
In a nutshell, cognitive loyalty is the stage in which perceived features of the brand
are formed; affective loyalty is stage in which the customer shows desirability on a certain
brand; conative loyalty is the stage in which the customer intends to purchase again; and
finally, action loyalty is shown when a deep commitment from the customer is formed to
engage in repurchase.
The reason why the researchers decided to use this theory proposed by Oliver is
because they want to observe this theory in assessing the brand loyalty of Shopee users
by testing three product attributes - namely the product quality, product features, and
product design. The researchers believe that by doing so, they would be able to
understand the proposed theory. Moreover, they believe that they will be able to construct
an insightful conclusion and helpful recommendation by integrating this theory with the
outcome of this study.
III. Conceptual Framework
In this study, the researchers used the Input-Process-Output (IPO) model to
conceptualize the entirety of the paper. This model is a useful graph that highlights the
inputs, outputs, and processing tasks that are necessary to convert inputs into outputs.
The model is sometimes set up to include any collection that occurs during the process.
The inputs basically represent the external into the mechanism. All tasks necessary to

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transform the inputs are included in the processing stage. The processed data/results
and other findings that flow out of the transformation process are referred to as the output.
The researchers chose this model due to its intelligibility and directness, thus, making it
easy to follow throughout the conduction of the study. In fact, this model is commonly
used by academics to illustrate the conceptual framework of an educational research
because it clearly represents the summary of several relevant studies that describes the
processes involved. This also instructs the researchers in devising a sequence of actions
that must be taken during the period of the educational research. Most importantly, it
takes into account possible academics' perspectives, observations, and findings that may
possibly arise (Canonizado, 2021)
The researchers used product attributes as the independent variables that will later
measure the customers' perception towards the use of Shopee application. Product
attributes play a huge role for both marketers and their customers. Marketers use these
attributes to determine their brand's competitiveness in several aspects. Careful and
effective use of product attributes may also give them a valuable basis in developing new
products, strategize the overall marketing, and provide what the market really demands.
Moreover, product attributes help customers develop a basis for evaluating their
perception towards a brand. As Oliver believed in his theory, cognitive loyalty is a crucial
stage and can only be achieved when the customer has experienced the brand first-hand
or has become aware through second-hand information and shows positive recognition.

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Paradigm 2: IPO Method
Paradigm 2 displays the direction of the study with necessary input, processes
involved, and the expected output. As shown in the model, the input contains one

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demographic indicator and the three product attributes that are subjects for observation -
the product quality, product features, and product design.
This study will process the input through collecting the data of the residents from
BF Homes, Parañaque City, administering a survey, tabulation of responses, presenting
and analyzing statistical data gathered. The output of this study will show the relative
importance in every data set through the application of weighted average.
Through feedback, the researchers will be able to determine what information is
deemed necessary and what information is still lacking. This will help the researchers in
formulating a conclusion and insightful recommendations.
IV. Statement of the Problem
This study aims to analyze the brand loyalty of some residents in Parañaque City,
specifically in barangay BF Homes, toward the use of the Shopee application.
Specifically, the study seeks answers to the following:
1. What is the profile of the respondents in terms of age?
2. To what extent the people in barangay BF Homes, Parañaque City perceive the
Shopee app in terms of the following?
2.1. Product Quality in the levels of:
2.1.1. Data Privacy

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2.1.2. Completeness and Accuracy of Information
2.1.3. Price Ceiling
2.1.4. Ease of Transactions
2.1.5. Courier Dependability
2.2. Product Features in the levels of:
2.2.1. Payment Methods
2.2.2. Coin-Earning Games
2.2.3. Flash Deals
2.2.4. Utility Payment
2.2.5. Discount Coupons and Free Vouchers
2.3. Product Design in the levels of:
2.3.1. User-Friendly Interface
2.3.2. Attractiveness of App Design
2.3.3. Pixie - Shopee Virtual Assistant
2.3.4. Live Streams
2.3.5. Shopee Feed
3. What is the relative importance of each level in all product attributes tested?

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V. Scope and Limitation
The goal of this research is to analyze the brand loyalty of customers to Shopee.
And as mentioned in the Four-Dimensional Theory proposed by Richard Oliver, cognitive
loyalty is the first stage of this theory wherein customers are able to perceive the value of
the product. For that reason, this research used product attributes to measure the
perception of customers towards the use of the Shopee application in terms of the product
quality, product features, and product design using a Likert-scale type of survey.
The product quality was measured using statements that are related to data
privacy, completeness and accuracy of information, price ceiling, ease of transactions,
and courier dependability. As for the product feature, it was tested based on the payment
methods, coin-earning games, flash deals, utility payment, and discount coupons and free
vouchers. And as for the product design, it was tested relative to the application’s user-
friendly interface, attractiveness of the app design, Pixie - Shopee virtual assistant, live
streams, and Shopee feed.
This research only covered a definite number of Shopee users in barangay BF
Homes, Parañaque City based on the calculated sample size and convenience sampling
technique.
The sample population of this research only covers three hundred ninety-eight
(398) Shopee app users who are residing in barangay BF Homes, Parañaque City and
are eighteen (18) years old or above. The sample population is computed using the
Slovin’s formula with a given of sixty thousand ninety-eight (60,098) total population and

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a five (5) percent margin of error. Those people residing in BF Homes who are seventeen
(17) years old and below and also those who are residing outside BF Homes, Parañaque
City are not considered in this study.
The findings are particular to a specific case, a specific place, and a certain time
period because the study solely focused on the selected group of people. Therefore, the
findings and interpretations may not be directly apt to other situations. The gathered
information in this research does not necessarily represent the general population of
Shopee users. However, the findings of this research could be of use when compared to
other related literature or scholarly works that could be tested by other researchers in
other locations and different points of time.
VI. Significance of the studies
In today's rapidly changing environment, businesses must safeguard their
customers' long-term interests in order to increase their profitability by building long-term
partnerships with them. This research is made with the goal to generate essential and
crucial information and knowledge towards the following individuals, who wish to learn
more about how certain product attributes heavily impact brand loyalty in a business,
especially in the field of e-commerce.
Benefiting in this study are the various sectors as follows:
The Students. This research will be a helpful reference for IT & Business
Administration students during their course. This study will help students to learn and

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have an in-depth understanding on how brand loyalty can be effective for e-commerce
businesses. The findings of this study will provide students a good head start to future
scholarly works on the relationship between brand loyalty and e-commerce. The students
will not only learn the topic and search the answer to their questions related to this
research, but it will also help them understand how the perception of product attributes
contribute in shaping brand loyalty.
The Future Researchers. The findings of this study will benefit the future
researchers by providing them with additional local reference to support the studies that
are related to brand loyalty and e-commerce. Currently, there are very few local
references that can be searched through the internet or even on other channels.
The Businesses. The output of this study could provoke insights on what to
consider in formulating digital marketing strategies that may contribute to the
development of brand loyalty by giving generous consideration to certain product
attributes. A study on brand loyalty for an e-commerce business is significant not only
because it is the current trend in the market but it also generates new sources or outlets
in which businesses can leverage to promote stable relationships with its customers and
sustainable growth in their business.

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VII. Definition of Terms
● Brand: In this study, the brand refers to Shopee, the company as a whole, since
the entirety of the study is focused on the customers’ perception towards the use
of the company’s application.
● Brand Loyalty: "Brand loyalty is something that holds customers with a brand
which they are satisfied with, causing repurchases and support of the same
brand’s products or services in the future", (Khamwon & Kamkliang, 2018).
● Cognitive Loyalty: According to Oliver (1999), it is the first stage in Four-
Dimensional Loyalty Theory that focuses on the brand's perceived characteristics.
● Affective Loyalty: The second stage in Four-Dimensional Loyalty Theory which
is directed toward the brand's likeability/desirability.
● Conative Loyalty: The third stage in Four-Dimensional Loyalty Theory that is
experienced when the consumer has an intention to re-buy the brand.
● Action Loyalty: The fourth stage in Four-Dimensional Loyalty Theory in which
there is already a deep commitment to the action of repurchasing.

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CHAPTER II
REVIEW OF LITERATURE AND STUDIES
VIII. Review of Related Literature and Studies
The world has now entered the digital era, in which the Internet has offered
customers convenience and efficiency in all aspects of their lives, resulting in a shift in
customer behavior over the last decade unlike before wherein customers used to rely
primarily on in-store services. In this current era of digitalization, the online store has
become a critical route for enterprises and marketplaces to reach out to customers' wants
and needs (Khamwon & Pattanajak, 2021).
Electronic commerce, often known as e-commerce or online trade, is the
purchasing and selling of goods and services through the Internet, as well as the
transmission of money and data (Ryantika & Hidayat, 2021). E-commerce is a broad term
that covers a wide range of economic activities (Pantelimon et al., 2020). The use of e-
commerce is steadily increasing, as most traditional firms have begun to widen their target
client base by going online. In addition, the Covid-19 epidemic was determined to have
influenced e-commerce in a positive way worldwide (Pantelimon et al., 2020). The spread
of the coronavirus illness (COVID-19) pandemic did not only have influence on
enterprises, but also on customer behavior in terms of meeting basic necessities. During
the first months of pandemic, everyone started to confine themselves in their houses and
kept themselves from going to public places, such as marketplaces and supermarkets.

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Through digital enterprises online, it has become possible to maintain and continue to
serve customers without requiring their direct visit (Kosasi, 2021).
In October 2020, Vince Nonato from One News Ph reported that due to the
coronavirus disease pandemic and the fact that Filipinos are forced to stay at home, there
has been a drastic increase in their online shopping by 57% in just the first half of 2020
in comparison to the same period in 2019. A noticeable huge increase of 50% more in
terms of shopping apps usage on Android phones has been reported as well in the second
quarter of 2020 compared to the previous quarter of the same year.
In the same year, Statista cited in We Are Social, that 38.88 million Filipinos
purchased through online, resulting in an increase of 42.5% in the value of e-commerce.
This shows that on average, Filipinos have spent Php 4,362.59 each. Ara Eugenio from
Reportr News even quoted that, “For Gen-Z, it was the year of ‘add-to-cart’.”
Reportr News even stressed that the reported data did not even include other types
of spending, such as business-to-business transactions. The data only covered purchase
transactions are from the e-commerce platforms specifically Shopee and Lazada.
Shopee is a Singapore-based electronic commerce platform owned by the SEA
Group, which was founded in 2009 by Forrest Li. Shopee began operations in Singapore
in 2015, and has since extended to Malaysia, Thailand, Taiwan, Indonesia, Vietnam, and
the Philippines. Shopee began as a market for customers (C2C), but since the launch of
Shopee Mall, an online retail platform for distribution of well-known store brands, it has
transitioned to a hybrid C2C and Business for Customers (B2B) model.

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Since then, Shopee has enlisted several big names of influence to be the Regional
Brand Ambassador. To name some, in 2018 they announced BLACKPINK as their
ambassador; Cristiano Ronaldo in 2019; and Jackie Chan in 2020. Here in the
Philippines, some of the Shopee ambassadors are Kris Aquino, Willie Revillame, and a
lot more.
Shopee conducts a monthly sale promotion to all its customers, and it is scheduled
every time the number of the month matches the date of the month, e.g., 1.1 (Jan 1); 2.2
(Feb 2); 3.3 (March 3) and so on. This scheduled promotion boosted Shopee’s sales and
excited its customers with recurring and dynamic promotion events. Aside from this,
Shopee initiated live selling and in-app games. And in 2019, it has accumulated a total of
500 Million views on Shopee Live and 1 Billion plays on Shopee In-App Games. Since
then, along with the improvement of e-commerce in the Philippines in general, Shopee
has established a strong brand loyalty in all the regions and significantly in the Philippines.
Customers' buying preferences are influenced by the convenience and variety of
products available in the e-commerce business operator. E-commerce portals are
preferred by a large percentage of customers due to the fact that they offer a broader
range of products and can be purchased at any time and from any location as long as
they have access to an internet connection (Ryantika & Hidayat, 2021).
The number of players in the field of e-commerce continues to grow making the
competition more challenging. Customers can quickly switch from one brand to another
due to the plethora of information readily available on the internet. Easy to move or lack
of loyalty from customers in the online world is a lethal problem that must be overseen to

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prevent as many negative impacts on the sustainability of a company (Iisnawati et al.,
2020). This is why developing brand loyalty of the customers plays a huge role in business
survival. Brand loyalty, according to Khamwon and Kamkliang (2018), is what keeps
customers loyal to a brand they like, leading to repurchases and future support of the
same brand's products or services. Paying no heed to continuous negative feedback from
the customers may put the business on the edge.
However, these gigantic e-commerce platforms are still prone to negative issues.
In fact, according to the Philippine News Agency (PNA) article published by Kris
Crismundo in November 2020, two of the biggest online shopping applications in the
Philippines have been reported for having the most number of transaction complaints with
the Department of Trade and Industry (DTI), namely the Shopee and Lazada. The DTI
Undersecretary for Consumer Protection Group, Ruth Castelo, raised this concern during
a virtual hearing of the Committee on Trade and Industry of the House of the
Representative. Also based on the report of Neil Arwin Mercado, published by Business
Inquirer, out of the 14,869 complaints DTI received, 3,432 of them are associated with
Shopee and 3,475 cases associated with Lazada. Castelo also pointed out that most of
the cases reported were related to the Price Act with a number of 7,539 cases, 3,157
cases regarding defective products, and a total of 2,641 cases related to unethical sales
acts or practices.
In order to build a stronger loyalty bond with the customers, Shopee needs to
improve their features - enough to challenge the customer to engage in creative thinking.
It also needs to develop features that transform the use of Shopee application into an

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integral part of a person’s lifestyle (Iisnawati et al., 2020). However that would be a
problem if there is a continuous ignorance of negative feedback and unresolved concerns
from the customers, thus, resulting in a negative product perception.
Customers that are loyal to a company stimulate enthusiasm in others by being
satisfied with the items and services they receive. When this occurs, it is difficult for them
to be drawn to similar products offered by other online shops. It can be seen once they
develop a pattern of making recurrent purchases. It becomes a way of gaining competitive
advantages. According to prior research, this loyalty is defined as a feeling of pleasure
and satisfaction with online items and services, resulting in a desire to purchase more
frequently (Kosasi, 2021).
Being able to maintain brand loyalty due to good product perception from the
customers may also result in customer retention. Customer loyalty, however, is
insufficient to ensure the firm's survival; actual action is required to ensure that customers
are truly loyal to the organization or company, which is vital for customer retention (Al-
Rabayah et al., 2017). Customer retention is basically a linkage between customer loyalty
and profitability, and it is a type of loyalty that is linked to customer purchasing behavior
(Muhammad et al., 2020).
This research focused on three product attributes - product quality, product
features, and product design, to measure the perception customers towards the use of
Shopee app. According to George Fripp (2022), when discussing the product mix in
marketing textbooks, a series of product attribute decisions are frequently outlined. The
numerous components that make up a product are referred to as attributes. Product

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attributes typically include actual features as well as uses and benefits. However, it is
perhaps easiest to conceive of attributes as the product's actual features (Fripp, 2022).
A company has three primary choice areas when it comes to product attribute
decisions - namely the product quality, product features, and product design (Fripp,
2022). A research from Ryantika and Hidayat (2021) in Indonesia, under the title
“Consumer Preference Analysis of Using Shopee Application with Conjoint Method”,
showed that the consumer preference at its peak point in terms of product features has
something to do with the delivery charge subsidy, while ShopeePay Later feature being
the least preferred. As for the product quality, they found out that affordable price ceiling
got the highest preference while safety in transaction being the lowest. In addition to that,
they also found out that as for the product design, the Shopee application got the highest
preference in terms of its user-friendly interface while the visuals of the application got
the lowest-level perception.
The findings of Ryantika and Hidayat in their research can be backed up by other
research conducted in the same country by the group of Givan. Based on their research,
Givan et al. (2021) concluded that the convenience and trust towards the use of e-
commerce platforms significantly influence the online shopping perception of the
customers. E-commerce platforms operators must simultaneously enhance the ease and
trustworthiness of e-commerce platforms, because by recognizing these variables that
affect shopping online can significantly increase sales turnover and marketing throughout
the world (Givan et al., 2021).

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Upon searching for other references pertaining to the research topic, the
researchers were not able to find some local scholarly works that study the Shopee users’
preference and perception towards the application. Those local studies that have been
found were mostly about the performance of Shopee and statistics about its users in
recent years. Moreover, most of the studies that have been found by the researchers are
coming from other countries, mainly from Indonesia and India.
With the help of scholarly works conducted by foreign researchers and personally
conducted study, this research aims to serve as an additional resource for local studies.
This may not cover a large population, however, this study can still act as a basis for other
local researchers who plan to tackle related areas.

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CHAPTER III
METHODOLOGY
This chapter contains the method of research, population, sample size, sampling
technique applied in this research. It also entails the description of respondents, the
instrument, and the procedure used by the researchers in obtaining necessary data and
information including all statistical treatments.
IX. Method of Research
The researchers used a descriptive approach in this study with the goal of drawing
a conclusion from a sample size alone by using quantitative analysis. The goal in this
research is to develop further studies about the topic and not to generalize the overall
population of the Shopee users worldwide. With the use of data and information gathered
from the respondents, the researchers were able to explore, probe, and expound on the
theory proposed by Oliver regarding the four-dimensional loyalty.
The goal of descriptive research is to describe people, events, or things in their
natural setting. Descriptive studies look at the characteristics of a population; identify
problems that exist within a unit, an organization, or a population; or look at variations in
characteristics or practices between institutions or even countries (Siedlecki, S.L., 2020).
Based on the said purpose of the descriptive approach, the researchers thought that this
would be appropriate to the study being conducted, especially that this approach helps

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the researchers assess the perception of the sample population towards the Shopee app
based on the given product attributes.
X. Population, Sample Size, and Sampling Technique
The study's target population, which the researchers want to examine or treat, is
referred to as the population of interest. It is important to note that the researchers need
to describe the demographic characteristics of the population of interest. Recruiting the
entire population is often not necessary or feasible, that is why having an appropriate
sample size is significant. A good sample is one that is statistically representative of the
target population and large enough to address the research question. As a result,
calculating the sample size becomes a crucial step in quantitative studies (Majid, U.,
2018).
The population of interest in this study comprised those who are eighteen (18)
years old and above residing in barangay BF Homes, Parañaque City. The researchers
have coordinated with the city of Parañaque City in order to obtain the necessary data
and calculate the needed sample size. According to the Research, Evaluation and
Statistics Division Office of the City Planning and Development Coordinator, as of 2021,
the barangay BF Homes has a population of 60,098 who are 18 years old and above.

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The researchers used the Slovin’s Formula to obtain the number of the sample
size needed. It can be calculated by:
Where:
n = sample size
N = total population
e = margin of error
After substituting the variables, the researchers got:
n = 397.355 or 398
From the total population of 60,098 and considering the 5% margin of error, the
sample size needed is 398. The researchers conducted the survey to 398 qualified
respondents under a convenience sampling technique.

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XI. Description of Respondents
The respondents were asked first about their age, specifically if they are eighteen
(18) years old or above, and if they are using the Shopee application. In this study, the
researchers based the selection of the respondents upon these two qualifying questions.
The specified allowable age is also the relevant “age of majority” in the Philippines,
according to the Family Code of the Philippines, and is technically written in the terms of
service of the Shopee app upon signing up for an account.
XII. Research Instrument
In order to obtain a reliable and feasible gathering of information, the researchers
used a survey. Survey method is indeed valuable in observing a wide range of
populations. According to Martin (2020), the researchers can gather the opinions,
attitudes, and observations of a small, representative subset of a community via a survey
in order to generalize a whole.
The survey questionnaire is divided into three main parts - perception towards the
product quality, product features, and product design. Since these product attributes are
deemed too general in their nature, the researchers specified five distinct degrees per
attribute.
The product quality was tested in terms of data privacy, completeness and
accuracy of information, price ceiling, ease of transactions, and courier dependability. As
for the product feature, it was tested based on the payment methods, coin-earning games,
flash deals, utility payment, and discount coupons and free vouchers. And as for the

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product design, it was tested relative to the application’s user-friendly interface,
attractiveness of the app design, Pixie - Shopee virtual assistant, live streams, and
Shopee feed.
Using a Likert-scale, the researchers were able to discern the extent to which the
respondents agree or disagree with every statement pertaining to the three product
attributes. The respondents were informed to respond whether they ‘Strongly Agree’ (4),
‘Agree’ (3), ‘Disagree’ (2), or ‘Strongly Disagree’ (1) to each statement.
XIII. Data Gathering Procedure
The survey was personally conducted in BF Homes, Parañaque for three days
using printed survey questionnaires for the reason that it was impossible for the
researchers to use digital platforms due to the lack of prospective respondents’ contact
information.
The researchers used the convenience sampling technique in a sense that the
starting point was the barangay hall of BF Homes, Parañaque. Then, they conducted the
survey independently as they spread out within the area. Subsequently, the information
obtained from the 398 respondents was tabulated and analyzed.

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XIV. Statistical Treatment of Data
The data collected in this study was structured and categorized by the researchers
in order to evaluate and formulate a quantitative analysis using descriptive statistical
measures. The researchers used the following statistical treatment:
1. Frequency Distribution. This refers to a graphical or tabular representation that
depicts the distribution of individual observations across the measuring scale. It
allows the researcher to read through all of the data easily. In this study, it was
used to efficiently show the distribution in terms of demographics and the number
of occurrences of the values in every variable present.
2. Percentage Distribution. A percentage distribution is a data graph in which the
number of observations for each data point is expressed as a percentage. Tables,
bar graphs, and pie charts are frequently used to illustrate percentage distributions.
Percentage distribution follows this formula:
Where:
% = the percentage
f = the frequency
100 = the constant value
n = the total number of respondents

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3. Relative Importance Index. A relative importance index analysis can be used to
identify the most important elements in a variable being tested. It is also an
appropriate technique in treating variables that are scored through Likert scales.
In this study, relative importance index was used to rank the criteria according to
their relative importance. Relative relevance index analysis enables the
identification of the most relevant criteria based on participant responses gotten
through the ranking indicators on Likert Type scales (Rooshdi et al., 2018). The
relative index is calculated using the formula below.
Where:
n4 = number of respondents who answered Strongly Agree
n3 = number of respondents who answered Agree
n2 = number of respondents who answered Disagree
n1 = number of respondents who answered Strongly Disagree
A = higher weight (4)
n = total number of respondents (398)

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Table 1: Analysis of Relative Importance Index Values Adopted from Akadiri
Table 1 signifies that if the relevant importance index (RII) is equal to 0.8 or 1 or in
between, the value is ‘High’. If the RII is equal to 0.6 or in between 0.6 and 0.8, the value
is ‘Medium - High’. If the RII is equal to 0.4 or in between 0.4 and 0.6, the value is
‘Medium’. If the RII is equal to 0.2 or in between 0.2 and 0.4, the value is ‘Low – Medium’.
Lastly, if the RII is equal to 0 or in between 0 and 0.2, the value is already considered
‘Low’.

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CHAPTER IV
RESULTS AND DISCUSSION
XV. Results and Discussion
This chapter provides and examines the data collected by analyzing and
interpreting it with the research instrument used in this study.
1. Profile of the Respondents
1.1. By Age
Table 2: Frequency and Percentage Distribution of Respondents in terms of Age
In terms of the age, the respondents mostly comprised people from the millennial
group with a total of 45%. Generation Z comes in second with a total of 30%, followed by
the Generation X group with a total of 15%. Boomers group comes at last with 10% in
total. For quick reference, the clustering of age groups is based on the study of Michael
Dimock from Pew Research Center in 2019.

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2. Customers’ Perception on the Shopee App
2.1. Product Quality in the levels of:
2.1.1. Data Privacy
Table 3: Frequency and Percentage Distribution of the Respondents in Terms of Data
Privacy
60% of respondents 'Agree' that supplying Personal Information requested by the
Shopee App is safe, while 35% 'Strongly Agree', and 5% 'Disagree.' There was no
respondent who said they 'Strongly Disagree.'
2.1.2. Completeness and Accuracy of Information
Table 4: Frequency and Percentage Distribution of the Respondents in Terms of
Completeness and Accuracy of Information

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50% of respondents 'Agree' that Shopee provides accurate and complete product
information, while 30% 'Strongly Agree' and 20% 'Disagree.' There were no 'Strongly
Disagree' responses.
2.1.3. Price Ceiling
Table 5: Frequency and Percentage Distribution of the Respondents in Terms of Price
Ceiling
Shopee's price ceiling on its products is affordable in comparison to its competitors,
according to 55% who answered ‘Agree’ and 40% who chose 'Strongly Agree', while 5%
say that they 'Disagree'. 'Strongly Disagree' was not selected by any of the respondents.
2.1.4. Ease of Transactions
Table 6: Frequency and Percentage Distribution of the Respondents in Terms of Ease
of Transactions

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65.08% of the respondents ‘Agree’ that it is easy to do transactions and place
orders using the Shopee App, supported by another 34.92% who said that they ‘Strongly
Agree’. No respondents who neither ‘Disagree’ nor ‘Strongly Disagree’.
2.1.5. Courier Dependability
Courier Dependability
65% of the respondents ‘Agree’ that they trust Shopee Integrated Couriers in
keeping their parcels secured and in good condition, supported by another 25% who
chose ‘Strongly Agree’, while 10% of the respondents said that they ‘Disagree’. No
respondents recorded saying that they ‘Strongly Disagree’.

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2.2. Product Features in the levels of:
2.2.1. Payment Methods
Payment Methods
60% of respondents 'Agree' that Shopee offers a variety of handy payment
alternatives, plus another 35% who said that they 'Strongly Agree'. However, 5% of these
respondents said that they 'Disagree.' No record saying that they 'Strongly Disagree.'
2.2.2. Coin-Earning Games
Table 9: Frequency and Percentage Distribution of the Respondents in Terms of Coin-
Earning Games

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50% of respondents 'Agree' that they enjoy playing Shopee games while earning
coins that can be used to purchase products, supported by another 20% who chose
'Strongly Agree', while 30% said that they 'Disagree'. No respondents said they 'Strongly
Disagree'.
2.2.3. Flash Deals
Table 10: Frequency and Percentage Distribution of the Respondents in Terms of Flash
Deals
60% of respondents 'Agree' that they take advantage of Shopee flash sales and
monthly sale promotions, with another 20% who chose 'Strongly Agree.' However the
remaining 20% 'Disagree'. There was no record of respondents saying that they 'Strongly
Disagree'.

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2.2.4. Utility Payment
Table 11: Frequency and Percentage Distribution of the Respondents in Terms of Utility
Payment
45% of respondents 'Agree' that they prefer to pay their bills via the Shopee App,
supported by another 5% who said that they 'Strongly Agree’. However, half of the
respondents say otherwise with 30% saying that they 'Disagree' and another 20% who
chose 'Strongly Disagree'.
2.2.5. Discount Coupons and Free Vouchers
Discount Coupons and Free Vouchers

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70% of respondents 'Agree' that obtaining and using Shopee discount coupons
and free vouchers is easy, supported by another 30% who chose 'Strongly Agree' with
100% in total. No respondents who neither ‘Disagree’ nor ‘Strongly Disagree’.
2.3. Product Design in the levels of:
2.3.1. User-Friendly Interface
Table 13: Frequency and Percentage Distribution of the Respondents in Terms of User-
Friendly Interface
Shopee App is user-friendly and easy to navigate, according to 55%, with another
45% saying that they “Strongly Agree". There were no 'Disagree' or 'Strongly Disagree'
responses obtained.

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2.3.2. Attractiveness of App Design
Attractiveness of App Design
60% of respondents 'Agree' that the Shopee App's design and layout are
satisfactory, with another 40% who chose 'Strongly Agree'. There were no 'Disagree' or
'Strongly Disagree' responses recorded.
2.3.3. Pixie - Shopee Virtual Assistant
Table 15: Frequency and Percentage Distribution of the Respondents in Terms of Pixie
- Shopee Virtual Assistant

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75% of the respondents 'Agree' that Shopee's Chatbot, Pixie, is a big assistance
in addressing their concerns, supported by another 10% who said that they 'Strongly
Agree', whereas 15% 'Disagree' with this statement. No 'Strongly Disagree' responses
were obtained.
2.3.4. Live Streams
Table 16: Frequency and Percentage Distribution of the Respondents in Terms of Live
Streams
55% of respondents 'Agree' that watching Shopee Live streamers influences them
to try the products being featured in the live streams, supported by another 10% who said
that they 'Strongly Agree'. However, a total of 35% said otherwise with 30% 'Disagree'
responses and another 5% 'Strongly Disagree' responses.

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2.3.5. Shopee Feed
Shopee Feed
Shopee Feed shows products that accurately match their interests according to
55% who chose 'Agree', supported by another 30% who said that they 'Strongly Agree'.
On the other hand, a total of 15% 'Disagree' with this statement. There were no 'Strongly
Disagree' responses obtained.

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3. Relative Importance of Each Level in All Product Attributes Tested
Table 18: Relative Importance Index of Each Factor in Product Quality
Table 18 reveals that under the category of product quality, Price Ceiling and Ease
of Transactions got the highest rank with a relative importance index of 0.8373 or 0.84,
followed by the Data Privacy with an RII of 0.8247 or 0.82. Courier Dependability comes
in third rank with an RII of 0.7871 or 0.79. Completeness and Accuracy of Information
comes at last or fourth rank with an RII of 0.7745 or 0.77.
Table 19: RII-Level of Each Factor in Product Quality Attributes

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Table 19 indicates the relative importance index levels of each factor under the
product quality attribute. Data Privacy, Price Ceiling, and Ease of Transactions are
perceived with high importance level. Next in order are Completeness and Accuracy of
Information and Courier Dependability which are perceived by the respondents with
medium to high importance level.
Table 20: Relative Importance Index of Each Factor in Product Features
Based on the Table 20, Payment Methods and Discount Coupons and Free
Vouchers received the top rank under the product feature attributes, with a relative
importance index of 0.8247 or 0.82, followed by Flash Deals with an RII of 0.7500 or 0.75.
With an RII of 0.7255 or 0.73, Coin-Earning Games feature is ranked third. Utility Payment
ranks last or fourth with an RII of 0.5873 or 0.59.

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Table 21: RII-Level of Each Factor in Product Feature Attributes
The relative importance index levels of each factor under the product feature
attributes are shown in Table 21. Payment Methods and Discount Coupons and Free
Vouchers are both deemed with high importance. Following that, respondents perceived
Coin-Earning Games and Flash Deals with medium to high importance level, while Utility
payment has only been perceived with medium importance level.
Table 22: Relative Importance Index of Each Factor in Product Design

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As shown on Table 22, User-Friendly Interface got the highest rank under the
product design attributes, with a relative importance index of 0.8624 or 0.86, followed by
the Attractiveness of App Design with an RII of 0.8499 or 0.85. With an RII of 0.7871 or
0.79, Shopee Feed comes in third rank. Pixie – Shopee Virtual Assistant comes in fourth
with an RII of 0.7374 or 0.74. With an RII of 0.6753 or 0.68, Live Stream comes at last.
Table 23: RII-Level of Each Factor in Product Design Attributes
Table 23 indicates the relative relevance index level of each component under the
product design attributes. User-Friendly Interface, as well as the Attractiveness of App
Design, are both given a high importance level. Following that, respondents have
perceived Pixie – Shopee Virtual Assistant, Live Streams, and Shopee Feed with medium
to high importance level.

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CHAPTER V
SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATION
This chapter entails the overview of the research work completed, the conclusions
reached, and the recommendations made in relation to brand loyalty of the chosen
Shopee users from barangay BF Homes, Parañaque City.
XVI. Summary
The focus of this thesis is to look into Shopee customers' brand loyalty. And, as
noted in Richard Oliver's Four-Dimensional Theory, cognitive loyalty is the initial stage of
this theory, in which clients are able to perceive the product's value. As a result, utilizing
a Likert-scale style of survey, this study used product attributes to gauge customers'
perceptions of the Shopee application in terms of product quality, product features, and
product design.
The researchers used a descriptive approach in this study with the goal of drawing
a conclusion from a sample size alone by using quantitative analysis. The population of
interest in this study comprised those who are eighteen (18) years old and above residing
in barangay BF Homes, Parañaque City.
The researchers used statistical approaches such as Frequency Distribution,
Percentage Distribution, and Relative Importance Index to arrive at their findings,
conclusions, and recommendations for this study.

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XVII. Findings
With the use of the obtained data and relevant information, the following findings
were drawn:
1. What is the profile of the respondents in terms of age?
In terms of age, Millennials made up the relative majority of the respondents,
accounting for 45%. The Generation Z group comes in second with a total of 30%,
followed by the Generation X group with 15%. With a total of 10%, the Boomers
group comes at last. For easy reference, the age group clustering is based on
the 2019 Pew Research Center study by Michael Dimock.
2. To what extent the people in barangay BF Homes, Parañaque City perceive
the Shopee app in terms of product quality, product features, and product
design?
A. Product Quality
 In terms of Data Privacy, a total of 95% respondents say that they
feel safe providing their personal information in the Shopee
application.
 In terms of Completeness and Accuracy of Information, 80% of the
respondents say that Shopee provides product information that is
accurate and complete at all times.

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 Concerning the Price Ceiling, 95% of the respondents say that
Shopee’s price ceiling on its products is affordable in comparison to
the competitors’.
 As to the Ease of Transactions, 100% of the respondents say that it
is easy to do transactions and place orders using the Shopee
application.
 In terms of Courier Dependability, 90% of the surveyed respondents
say that they trust Shopee Integrated Couriers in keeping their
parcels secured and in good condition.
B. Product Features
 As for the Payment Methods, 95% of the respondents say that
Shopee provides different payment options that they deem
convenient.
 As for the Coin-Earning Games, 70% of the surveyed respondents
say that they enjoy participating in Shopee games while earning
coins that they can use to purchase in Shopee.
 As regards to Flash Deals, 80% of the respondents declare that they
take advantage of Shopee flash deals and monthly sale promotion.
 In terms of Utility Payment, only half or 50% of the respondents say
that they prefer paying bills, such as electricity and water bills, using
the Shopee app.

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 As for the Discount Coupons and Free Vouchers, 100% of the
respondents say that they find it easy to obtain and use Shopee
coupons and Free Vouchers.
C. Product Design
 In terms of having a User-Friendly Interface, 100% of the
respondents say that the Shopee application is indeed user-friendly
or easy to navigate.
 In terms of the Attractiveness of App Design, all of the respondents
also say that they are satisfied with Shopee’s App layout or design.
 In connection with Pixie – Shopee Virtual Assistant, 85% of the
surveyed respondents say that Shopee’s chatbot is a huge help in
resolving their queries.
 With regard to Live Streams, 65% of the respondents declare that
watching Shopee Live Streamers influences them to try the products
being featured in live streams.
 As for the Shopee Feed, 85% of the surveyed respondents say that
Shopee Feed shows products that accurately fir their interests.
3. What is the relative importance of each level in all product attributes tested?
 In terms of the product quality, Price Ceiling and Ease of Transactions got
the highest rank with a relative importance index of 0.8373 or 0.84, followed
by the Data Privacy with an RII of 0.8247 or 0.82. Courier Dependability

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comes in third rank with an RII of 0.7871 or 0.79. Completeness and
Accuracy of Information comes at last or fourth rank with an RII of 0.7745
or 0.77. Data Privacy, Price Ceiling, and Ease of Transactions are perceived
with a high importance level. Next in order are Completeness and Accuracy
of Information and Courier Dependability which are perceived by the
respondents with medium to high importance level.
 In terms of the product features, Payment Methods and Discount Coupons
and Free Vouchers received the top rank under the product feature
attributes, with a relative importance index of 0.8247 or 0.82, followed by
Flash Deals with an RII of 0.7500 or 0.75. With an RII of 0.7255 or 0.73,
Coin-Earning Games feature is ranked third. Utility Payment ranks last or
fourth with an RII of 0.5873 or 0.59. Payment Methods and Discount
Coupons and Free Vouchers are both deemed with high importance.
Following that, respondents perceived Coin-Earning Games and Flash
Deals with medium to high importance level, while Utility payment has only
been perceived with medium importance level.
 Concerning the product design, User-Friendly Interface got the highest rank
with a relative importance index of 0.8624 or 0.86, followed by the
Attractiveness of App Design with an RII of 0.8499 or 0.85. With an RII of
0.7871 or 0.79, Shopee Feed comes in third rank. Pixie – Shopee Virtual
Assistant comes in fourth with an RII of 0.7374 or 0.74. With an RII of 0.6753
or 0.68, Live Stream comes at last. User-Friendly Interface, as well as the
Attractiveness of App Design, are both given a high importance level.

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Following that, respondents have perceived Pixie – Shopee Virtual
Assistant, Live Streams, and Shopee Feed with medium to high importance
level.
XVIII. Conclusions
The researchers have come at the following conclusion based on their findings:
1. The Millennial group, who accounted for 45% of the respondents, made up
the relative majority of those who responded from barangay BF Homes
Parañaque City. With a total of 30%, the Generation Z group comes in
second, followed by the Generation X group with 15% and Boomers being
the least with a total of 10% of the respondents.
2. In terms of product quality, the majority of the respondents have positive
perception towards the Shopee application. This covers the areas of data
privacy, completeness and accuracy of information, price ceiling, ease of
transactions, and courier dependability with 95%, 80%, 85%, 100%, and
90% respectively.
3. In terms of product features, the majority of respondents have a favorable
impression of the Shopee app. With 95%, 70%, 80%, 50%, and 100%, this
involves payment methods, coin-earning games, flash deals, utility
payment, and discount coupons and free vouchers, respectively.
4. In addition to that, the majority of respondents have a favorable impression
of the Shopee application in terms of product design. With 100%, 100%,

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85%, 65%, and 85%, respectively, this encompasses areas of user-friendly
interface, attractiveness of app design, Shopee virtual assistant, live
streams, and Shopee Feed.
5. In terms of the product quality, Price Ceiling and Ease of Transactions got
the highest rank with a relative importance index of 0.8373 or 0.84,
perceived with high importance level. Completeness and Accuracy of
Information got the lowest rank with an RII of 0.7745 or 0.77, and is
perceived with medium to high importance level. In comparison to the
research conducted by Ryantika and Hidayat from Indonesia in 2021, as for
the product quality, they found out that affordable price ceiling also got the
highest preference while safety in transaction got the lowest.
6. Ryantika and Hidayat found out that the customer preference at its peak
point in terms of product features has something to do with the delivery
charge subsidy, while ShopeePay Later feature being the least preferred.
However, when compared to the findings that this research obtained,
Payment Methods and Discount Coupons and Free Vouchers received the
top rank with a relative importance index of 0.8247 or 0.82, both are deemed
with high importance level. Utility Payment got the lowest rank with an RII
of 0.5873 or 0.59, and has only been perceived with medium importance
level.
7. As for the product design, Ryantika and Hidayat found out that the Shopee
application got the highest preference in terms of its user-friendly interface
while the visuals of the application got the lowest-level perception. However,

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based on this research, the User-Friendly Interface got the highest rank with
a relative importance index of 0.8624 or 0.86, and is given a high
importance level. With an RII of 0.6753 or 0.68, Live Stream comes the
lowest rank and is perceived with medium to high importance level.
8. Just by plainly looking at the results shown in the research conducted by
Ryantika and Hidayat in 2021, it can also be concluded that the customer
perception toward the Shopee app in Indonesia is somewhat similar to the
perception of the Shopee app in the Philippines when compared to the
results obtained in this research. However, this is only theoretical that is
based on a limited empirical evidence gathered from a single barangay in
Parañaque City.
XIX. Recommendation
Following an in-depth review of the data and based on the conclusions reached,
the researchers issued the following recommendations.
1. This entire thesis only focused on a single barangay in Parañaque City with
a total target population of 60,098 and a sample size of 398. Future
researchers who would like to tackle the same or similar study can include
the other 15 barangays within this city. Future researchers can also expand
their scope by including other cities, especially if they plan to conduct a
cross tabulation. Cross tabulation is an effective way to analyze and

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examine the relationships among clustered information coming from
different geographical areas.
2. This research is also limited in terms of the statistical tools applied. Future
researchers may try using other measurements apart from relative
importance index to further analyze more significant figures that can be
possibly obtained.
3. The use of e-commerce is steadily increasing, as most traditional firms have
begun to widen their target client base by going online. Taking other e-
commerce platforms into consideration and performing cross tabulation
between the Shopee app and other e-commerce platforms, such as Lazada,
can further improve the understanding about e-commerce in the
Philippines.

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 Dimock, M. (2019, January 17). Defining generations: Where millennials end and
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https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-
generation-z-begins/
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APPENDICES
 Survey Questionnaire

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LIST OF PARADIGMS
Paradigm 1. Four Dimensional Loyalty (Oliver, 1999)
Paradigm 2: IPO Method

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LIST OF TABLES
Table 1: Analysis of Relative Importance Index Values Adopted from Akadiri
Table 2: Frequency and Percentage Distribution of Respondents in terms of Age
Table 3: Frequency and Percentage Distribution of the Respondents in Terms of Data
Privacy

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Completeness and Accuracy of Information
Table 5: Frequency and Percentage Distribution of the Respondents in Terms of Price
Ceiling
Table 6: Frequency and Percentage Distribution of the Respondents in Terms of Ease
of Transactions

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Courier Dependability
Payment Methods
Table 9: Frequency and Percentage Distribution of the Respondents in Terms of Coin-
Earning Games

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Table 10: Frequency and Percentage Distribution of the Respondents in Terms of Flash
Deals
Table 11: Frequency and Percentage Distribution of the Respondents in Terms of Utility
Payment
Discount Coupons and Free Vouchers

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Table 13: Frequency and Percentage Distribution of the Respondents in Terms of User-
Friendly Interface
Attractiveness of App Design
Table 15: Frequency and Percentage Distribution of the Respondents in Terms of Pixie
- Shopee Virtual Assistant

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Table 16: Frequency and Percentage Distribution of the Respondents in Terms of Live
Streams
Shopee Feed
Table 18: Relative Importance Index of Each Factor in Product Quality

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Table 19: RII-Level of Each Factor in Product Quality Attributes
Table 20: Relative Importance Index of Each Factor in Product Features
Table 21: RII-Level of Each Factor in Product Feature Attributes

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Table 22: Relative Importance Index of Each Factor in Product Design
Table 23: RII-Level of Each Factor in Product Design Attributes


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A Marketing Research Paper

A Study of Brand Loyalty Toward the

Use of Shopee Application in BF Homes, Parañaque City

Presented to the Faculty of the College of

In partial fulfillment of the requirements for the degree of

Bachelor of Science in Business Administration

Major in Marketing Management

DELOS SANTOS, BILLY B.

ROSALES, GRAHAM RUSSELL J.

CHAPTER I. THE PROBLEM AND ITS BACKGROUND

Statement of the Problem 17

Scope and Limitation 19

Significance of the Study 20

CHAPTER II. REVIEW OF RELATED LITERATURE AND STUDIES

Review of Related Literature and Studies 23

CHAPTER III. METHODOLOGY

Population, Sample Size and Sampling Technique 31

A Study of Brand Loyalty Toward the Use of

Data Gathering Procedure 34

Statistical Treatment of Data 35

CHAPTER IV. RESULTS AND DISCUSSION

Results and Discussion 38

CHAPTER V. SUMMARY, FINDONGS, CONCLUSIONS AND

A Study of Brand Loyalty Toward the Use of

Paradigm 1. Four Dimensional Loyalty (Oliver, 1999) 12

Paradigm 2: IPO Method 16

Table 1: Analysis of Relative Importance Index Values Adopted from Akadiri 37

Table 2: Frequency and Percentage Distribution of Respondents in terms of

Table 3: Frequency and Percentage Distribution of the Respondents in

Table 4: Frequency and Percentage Distribution of the Respondents in

Table 5: Frequency and Percentage Distribution of the Respondents in

Table 6: Frequency and Percentage Distribution of the Respondents in

Table 7: Frequency and Percentage Distribution of the Respondents in

Table 8: Frequency and Percentage Distribution of the Respondents in

Table 9: Frequency and Percentage Distribution of the Respondents in

A Study of Brand Loyalty Toward the Use of

Table 10: Frequency and Percentage Distribution of the Respondents in

Table 11: Frequency and Percentage Distribution of the Respondents in

Table 12: Frequency and Percentage Distribution of the Respondents in

Table 13: Frequency and Percentage Distribution of the Respondents in

Table 14: Frequency and Percentage Distribution of the Respondents in

Table 15: Frequency and Percentage Distribution of the Respondents in

Table 16: Frequency and Percentage Distribution of the Respondents in

Table 17: Frequency and Percentage Distribution of the Respondents in

Table 18: Relative Importance Index of Each Factor in Product Quality 49

Table 19: RII-Level of Each Factor in Product Quality Attributes 49

Table 20: Relative Importance Index of Each Factor in Product Features 50

Table 21: RII-Level of Each Factor in Product Feature Attributes 51

Table 22: Relative Importance Index of Each Factor in Product Design 51

Table 23: RII-Level of Each Factor in Product Design Attributes 52

A Study of Brand Loyalty Toward the Use of

This undergraduate research paper entitled “A STUDY OF BRAND LOYALTY TOWARD

THE USE OF SHOPEE APPLICATION IN BF HOMES, PARAÑAQUE CITY” prepared

and submitted by BILLY DELOS SANTOS, GRAHAM RUSSELL ROSALES, AND

MICHAEL SANCHEZ, in partial fulfillment of the requirements for the degree in

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION MAJOR IN MARKETING

Ms. Jiebeth Bueno

Approved by the committee on Oral Examination

MS. DARLYN ALSOLA MS. MERCY EVANGELISTA

Panel Member Panel Member

DOC. ELEMELY PAULINE

Accepted and Approved