Introduction 1

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CHAPTER 1: The Problem and its Setting

INTRODUCTION

In the last years, online shopping has significantly


become active. Due to COVID-19 many people prefer to shop
online over going to physical stores and choose to buy their
daily commodities online. Online shopping is a cheap
convenient alternative however, this convenience has its own
cost. It increases pollution and waste along with the
destruction of small businesses. It created a sense of
concern among customers like online fraud, inconsistency
between the ordered product and the desired product quality,
shipping issues and lack of interaction in online shopping.
According to a study, 78.8 percent of consumers victims of
online purchase scams worldwide lost money in 2020 (Daniela
Coppela,2022). In case of online shipping, there is
possibility for the items to get lost or damage (Alan
Behrens,2019). Inability to touch, feel and try goods create
concern related to its product quality. This can result in a
regretful purchase and can cause a lot of hassle later (Alan
Behrens, 2019). By the presence of online shopping many
small businesses are being affected, which means less money
comes to local business makes fewer hires and less money
flowing into the economy.

In the Philippines online selling is very rampant.


Sellers are prepared to sell their products using their
internet connection and their mobile phones only. On the
other hand, online buying has been grown very fast due to
pandemic which affects the lives of people in their everyday
routine. They can buy products anytime or anywhere they
want. According to (Statista Research Department,2021) in
the Philippines, about 52 percent of the online shoppers
belonged to the age group between to 25 to 34 years old in
2018. Online shopping is one of the most popular online
activities that Filipinos do next to playing games or video
games. On the contrary, purchasing goods and services online
has become a common practice in many people around the
world. Costumers are always to choose to purchase online
with their most convenient time. According to (Daniela
Coppela,2021) PayPal is the preferred payment method amongst
online shoppers worldwide as more than 40 percent of online
shoppers affirmed using this method. The traditional credit
ranks second with a 31 percent usage rate, followed by debit
cards.

Technology is one of the most widely used innovations


by every grade 12 students around the school whether it be
for work, school or business. It also plays a very important
role in easing the online shopping experience in an online
shopping because of its platform’s accessibility. The
researchers investigate the effect of purchasing products in
an online shop in grade 12 students and how they affect
consumers characteristics towards online shopping. This aims
to asses the effect of online shopping to senior high school
students who frequently engage themselves to such activity.
The researcher would also like to learn the factors of
internet buying.

The researchers wants to find out the characteristics


of costumers towards purchasing products which further
examines various factors limiting costumers for online
shopping behavior. Characteristics such as quality standard,
which is the good quality can increase the chances of online
sellers to attract more online buyers to purchased their
products, while the other characteristics like the costumer
communication, in this variable it affects costumers by the
lack of information by the seller to costumers.
STATEMENT OF THE PROBLEM

Specifically, this research aims to find out the


characteristics of online buyers and its effect to the
purchased products of Grade 12 students of Fe Del Mundo
National High School.

This study seeks to answer the following questions:

1. What are the characteristics of online buyers of Grade


12 students of Fe Del Mundo National High School in
terms of:
1.1 Quality Standard
1.2 Customer Communication
1.3 Transaction Cost

2. What are the characteristics of online buyers and its


effect to the purchased product of Grade 12 students of
Fe Del Mundo National High School in terms of:
2.1 Durability
2.2 Online Reviews of the Product
2.3 Number of Vouchers

3. What are the implications of the finding of the study?


3.1
CONCEPTUAL FRAMEWORK

Base from the foregoing theories the conceptual


framework of the proposed study is here by presented.

Independent Variable Dependent Variable

1.What are the


1.What are the
characteristics of
characteristics of
online buyers and its
online buyers of grade
effect to the purchased
12 students of Fe Del
products of grade 12
Mundo National High
students in Fe Del Mundo
School in terms of:
National high School in
1.1 Quality Standard
terms of:
1.2 Customer
2.1 Durability
Communication
2.2 Online Reviews of
1.3 Transaction Cost
the Product
2.3 Number of Vouchers

Implication
This study has two variables: the independent and
dependent variables. The independent variables are the
characteristics of online of grade 12 students of Fe Del
Mundo National High School in terms of: Quality Standard,
Customer Communication, and Transaction Cost. While the
dependent variables are the characteristics of online buyers
and its effect to the purchased products of grade 12
students of Fe Del Mundo National High School in terms of:
Durability, Online reviews of the product and number of
vouchers.

The implication of the findings of the study is shown


by the arrow that connects to the given variables.
THEORETICAL FRAMEWORK

Theory of Planned Behavior

Female online shoppers in the Indian e-commerce


industry are growing day by day and the online vendors need
to understand their shopping habits to approach them in a
better way. A conceptual model is proposed that extends the
Theory of Planned Behavior (TBH) model with three additional
constructs namely, trust, convenience, and customer service.
The proposed model is examined by means of questionnaire
responses collected from around 529 online shoppers. The
study reveals that customer service has the major influence
on the female’s attitude to shop online and perceived
behavioral control acts as the most influencing factor in
female shoppers’ willingness to buy online. The overall
descriptive power of the proposed model has a 52% for
female’s willingness to use online shopping and 46% for
attitude towards online shopping. Since it is difficult to
attract new shoppers and retain existing customers,
excellent customer service can be the answer to the problems
related to the customer retention and customer loyalty in
the online context (Prashant Raman, 2020).

Theory on Time Saving in Online Shopping

Time savings is one of most influencing factors of


online shopping. Browse or search an online catalogue can
save time and patience. People can save time and reduce
effort by shopping online. According to (Rohm and
Swaminathan, 2004), one possible explanation that online
shopping saves time during the purchasing goods and it can
eliminate the traveling time required to go to the
traditional store. On the other side, some respondent think
that it is also time taken for delivery of goods or services
over online shopping.
SIGNIFICANCE OF THE STUDY

The researcher believes that this study is important


due to the following reason.

Students

The importance of this to the students is to have more


knowledge about the different behaviors of each buyer and
also for them to be aware when they are the one to build a
business so that they do not become a victim of “bogus”
buyers or anything that can damage the business.

Teachers

The importance of this to teacher is to teach students


the different behaviors or the characteristics that everyone
has when it comes to shopping for the things they need every
day or wants.

School Administrator

It will help the School Administration to inform or


teach every student or teacher every behavior or
characteristics that a consumer has when they are the one
that will buy.

Future Researchers

They will be able to use it in the future, especially


since the purchasing of items from online stores is becoming
more convenience store.

Parents

They can teach their children to be wise when it comes


to buying or choosing products that they don’t know if it is
or not especially now that young people love buying what
they want in online stores.

SCOPE AND DELIMITATION OF THE STUDY

The general intent of the study is to know the


Characteristics of Online Buyers and its Effect to the
Purchased Product of Grade 12 students of Fe Del Mundo
National High School.

This is conducted during the current year of 2022 from


August to December.
DEFINITION OF TERMS

In order to have a better understanding of the study


the following terms are hereby defined operationally.

1. Customers - a person or organization that buy goods or


services from store or business.
2. Customer Communication – a way of exchanging
information between a brand/business and a client.
3. Durability – the ability of the material to remain
serviceable in the surrounding environment during the
useful life without damage or unexpected maintenance.
4. Number of Voucher – a discount code or voucher code is
simply a combination of numbers and letters, which
usually partially describe the offer or discount in
some way.
5. Online Buyers – consumers who directly buy goods or
services from a seller over the internet using the web
browser.
6. Online Reviews of the Product – defined as a kind of
electronic word-of-mouth written and release by the
consumers on the internet, which enables people to
easily obtain the opinions and personal experiences of
different products from unknown individuals.
7. Online Shopping – the action or activity of buying
goods or services via the internet.
8. Purchased Products – the product requested in a
customer order.
9. Quality Standard – set of goods management practices,
method, systems, requirements, and/or specification
establish by industry advisory groups to help
manufactures achieve and demonstrate consistent
production and product quality.
10. Transaction Cost – expenses incurred when buying
or selling a good or service.

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