ACADEMY OF ST.

JOSEPH SENIOR HIGH SCHOOL DEPARTMENT

CHAPTER I

A. INTRODUCTION

The Coronavirus disease of 2019 (COVID-19) pandemic forced vast amounts of

individuals all over the globe to stay indoors through the enforcement of lockdowns to

prevent further escalation of the virus. The approach of social isolation resulted to the

alteration of people’s everyday routine as well as their lifestyles. Hence, potently changing

the consumer behavior of many individuals.

The e-commerce industry is widely known for the efficient shopping experience it

provides its consumers. And although amidst crisis, the preference of shopping online has

been regarded way more during the course of the pandemic due to the uncertainty of

consumers to step outside their homes. A survey conducted by S&P global marketing

intelligence firm revealed that while consumers had expressed their intention to cut spending

amid the Covid-19 pandemic, they were open to digital offerings. In other words, consumer

demand has shifted to “online” (Bitter, 2020).

Aside from the convenience brought by deliveries, there are also other factors that

affect the current shopping preferences of individuals, such as time convenience, way wider

sets of options and variations to select from, conveniently comparable prices, relevant

reviews from other customers, comfortability, and having greater chances of obtaining sales

and shipping discounts. These perks lead the majority of these consumers to buy items online

instead of physically purchasing them from the shops.

The convenience of shopping online has been more widely used than ever as it caters

and satisfies the people’s needs and wants without the requirement for them to go out in order

to purchase the needed goods, effectively conforming to the implemented health protocols.

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B. BACKGROUND OF THE STUDY

Electronic shopping is a trendy way to shop online. It is regarded as one of the most

preferred platforms for shopping ever since community quarantines have been implemented

when the Covid-19 arose. Now a days, it is considered to be the most convenient way of

shopping to get away free from the widespread of virus and keeping consumers safe and

secure (Ranjan et al., 2021). For this particular reason, consumers dramatically shift from

traditional shopping to online shopping due to the closing down of such facilities. Moran

(2020) argued that consumer approaches to shopping for products and services changed when

they used online commerce since it has more control over the consumer shopping experience,

including accessibility to products given that we are in the middle of pandemic.

According to the study, customers are not fully satisfied due to delay in online

deliveries on account of lockdown. The researchers also noted that online purchasing is being

hampered due to the concern of delivery personnel becoming infected with the virus.

However, people are increasingly turning to internet platforms to meet their demands as a

result of the social distancing norm. (Sucharita, 2020; Salunke et al., 2020). In 2020, a

researcher conducted a study on the factors that have influenced consumers intention in

adapting online shopping. Among the major factors are, ease of use, usefulness, benefits, and

accessibility.

An article from manilastandard.net (2021) stated that, not many Filipinos were eager

to try shopping through online due to the fear of being scammed. However, the fear has faded

eventually since their option has been limited due to the pandemic. Online shopping became

a coping mechanism for others who find comfort through retail therapy. There has been a

significant rise in the number of e-commerce users i.e. Shopee, Lazada, Zalora, in the

Philippines considering the benefits that consumers from both ends of the platforms can

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enjoy. Online shopping benefits are evident in its accessibility and the opportunities it

presents to consumers and even its services amidst pandemic.

The COVID-19 pandemic has affected the lifestyles and motivations of many people

such as the minor and major changes of their purchasing behaviors. With the ongoing

pandemic happening around the globe, there might be a change in consumer preferences

when it comes to the mode of shopping— direct shopping or online shopping. Therefore, in

continuation of this research idea, this present study was conducted to identify consumers’

thoughts and views on whether to adapt or not adapt online shopping. This study is designed

to assess the benefits in adapting online shopping through out this pandemic.

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C. STATEMENT OF THE PROBLEM

Generally, this study aims to explore and determine the perception of the residents within

Claveria towards the use of e-commerce as the means of shopping in the midst of the COVID19

pandemic.

Specifically, it intends to answer the following questions:

1. What are the perceptions of consumers towards online shopping in terms of:

a) Price

b) Convenience

c) Product quality

d) Varieties

e) Accessibility

f) Sales and benefits

2. What are the experiences of Claverianos regarding online shopping or online products?

3. How does online shopping conform to the standards, rules, and regulations set during

the pandemic?

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D. SIGNIFICANCE OF THE STUDY

The results of this study will benefit the following:

To existing businesses, it will greatly benefit them, as this will help them view what factors

influence consumers’ purchasing decisions. evaluate their strong and weak points and make

room for improvement in order to suit their customers’ preferences.

To the aspiring entrepreneurs, this study will be a significant reference in regards to what

considerable factors and techniques they should apply on their businesses in order for them to

be liked by consumers, leading to greater potential for success.

To the online consumers, attaining the importance and benefits gained from the use of e-

commerce as the mode of purchasing products are indicated in this study. The consumers can

make this to their advantage.

To the future researchers, this study will help other researchers to execute parallel issues

which are still unstudied in the nearer future. This will be a useful reference to make any

related study.

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E. SCOPE AND DELIMINATION

The use of e-commerce has been widely adapted due to the outrage of the Covid-19

pandemic. This study is meant to identify the residents of Claveria’s perceptions on the use of

e-commerce, as the means of shopping in the midst of the COVID19 pandemic. The study

mainly focuses on the adaptation and the non-adaptation of online shopping, and the reasons

as to why they do or do not.

Phenomenology approach is to be used, as well as a structured questionnaire as the

instrument.

The researchers limit the study to either offline or online consumers in four barangays within

Claveria, Cagayan, which are Centro Siete, Centro Tres, Alimoan, and Culao.

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F. DEFINITION OF TERMS

E-commerce or electric commerce, refers to online financial transactions which enables

individuals can sell or purchase goods and/or services.

Pandemic refers to a widespread of a disease, making it a global concern.

Price refers to an amounted value of something.

Convenience refers to the ease of doing something, as there are no concerns of difficulties.

Product Quality refers to the satisfactory level the product brings to the consumers.

Variety refers to the range of selection provided for one to choose from.

Accessibility refers to the state of being able to reach (something) with ease.

Sales refers to deals where the seller reduces the value of their products or services.

Benefits refers to the advantages attained (from something).

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CHAPTER II

REVIEW OF RELATED LITERATURE

The outbreak of the corona virus disease 2019 (COVID19) pandemic rendered the

economy speechless. Cities and industries were immobilized causing a national economic

catastrophe that majorly affected people’s lives (Koh, 2020). The pandemic resulted to drastic

changes in global trends, particularly its occurrence in the business industry. It has changed

the behaviour of human, nature of trading, business, and even the way of life (Bhatti et al.,

2020). As explained by Dalgleish (2020), since many shops have now reopened, the shift

back to in store purchasing has begun but a far higher proportion remains online than before

the crisis.

According to Falzon and Bugeja (2020), the pandemic was a major influence in the

rapid development of the e-commerce industry, as the people are limited from their

movements due to the emergency health laws enacted to curb the spread of the Covid-19

pandemic. In consideration to this, these protocols led to the downfall of shops and markets

around the globe, which, in contrast, led to the rise of the demands in courier services.

Through this, the consumption of e-commerce portals through the internet had made a major

increase, and online shops have seen a tremendous business opportunity in it as it has become

the only option to acquire necessities for survival amid lockdowns (Secretaria et al., 2021;

Bansal, 2020).

Beck and Hensher (2020) observed that online grocery shopping has increased due to

the COVID-19 outbreak in Australia. People in Italy on the other hand, have altered their

mode of shopping, from direct shopping to shopping online of foods. Thus, people’s

frequency of trips to physical stores has been minimized (Alaimo et al., 2020). Consumers

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tend to stay at home and shop online, rather than shop at physical stores in fear of being

affected by the virus.

Cerezo (2020) has reported that 3,700 consumers in Brazil, China, Germany, Italy,

South Korea, Russian Federation, South Africa, Switzerland and Turkey that over half of the

participants from the survey conducted by United Nations Conference of Trade and

Development (UNCTAD), buy online more often after the pandemic broke out. The result

showed that online purchases surged by approximately 6 to 10 percent in most categories,

with ICT/electronics, gardening/do-it-yourself, pharmaceuticals, education,

furniture/household products and cosmetics/personal care benefiting the most.

According to Nachit & Belhcen (2020), the COVID-19 pandemic causes a dramatic

change in the behavior of consumers in Morocco. There, purchasing priorities shifted, tension

increased for the availability of certain necessity products on the market, especially the panic

buying of hygiene products, revealed that Moroccans are willing to spend more than before

for their hygiene purchases as well as for certain food products. On one hand, this behavior

can be perceived as new motivation that encourage purchasing. (Showrav et al., 2021)

Almost all states have closed or limited operations of bars, restaurants, theaters, gyms,

shopping malls, and other settings throughout the pandemic (Gostin and Wiley, 2020).

Hence, e-commerce platforms became a substitute for traditional shopping. To survive, one

factor that drew attention on a global scale was the shift from traditional shopping to digital.

Walmart reported a 74% rise in online sales in April 2020, despite a low customer walk-in

rate at stores (Nassauer, 2020; Redman, 2020).

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The Covid-19 pandemic crisis has created great impact to business firms through its

course, especially to the small and medium enterprises. Although there are much more

conducted studies on crisis management processes among large manufacturing enterprises,

several studies assume that micro-enterprises in the less developed areas are exposed to

greater challenges than larger enterprises or in urban areas, especially during a crisis, due to

their remoteness, especially in terms of infrastructure constraints, labour availability and

limited financial reserves (Fabeil et al., 2020; North & Smallbone, 2007).

In correlation to this, a study by Khan and Huremović (2019) examined the “the fear

of contagion”, which resulted to stigma throughout centuries, emerged, greatly influencing

the consumers’ spending and purchasing behaviors. Solomon (2017) harmonizes with this as

his study, the consumer behavior literature, indicates that fear refers to the negative

consequences of a specific event that can lead to changes in consumer behavior and attitude.

This fear of the vulnerability to contagion from the Covid-19 virus has become a personal

threat to many; their protection motivations will lower their frequency of outside activities,

such as using offline retail, and could impact the consumer’s online retail purchases,

significant driving factor of the extensive substitution of the traditional shopping to the use of

e-commerce (Moon et al., 2021).

Furthermore, online shopping has been also utilized in the Philippines. Like many

other countries, Philippines has enforced nearly draconian lockdowns that purposefully

prevent people from going outside. This policy had a significant impact on the lives of

millions of Filipinos, particularly those seeking access to basic and fundamental necessities

(Mendoza, 2020). Through the findings of the study is was concluded that the young

e-commerce industry in the Philippines enjoys relatively high trust and confidence on the part

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of the purchasing public (Secretaria et al., 2021). In fact, the Philippines recorded the highest

increase in web visits for digital stores selling electronic devices (Cerezo, 2020). Hence,

Filipinos shopped online for the convenience of not having to go to and line up at brick-and-

mortar stores, for better prices, and deals (Janio, 2020).

In accordance to studies made before the Covid-19 pandemic, many Filipinos

preferred off line shopping rather than on line. According to Nartea et al. (2019) it was also

perceived that there is a high percentage of Filipino buyers who are not a fan of Online

Shopping.

Past studies study indicate that the main factors influencing consumers to shop online

are convenience, simplicity and better price, and that the most beneficial factor of shopping

online was identified as a possibility to compare prices and buy at a lower price (Baubonienė

and Gulevičiūtė, 2015).

Another study suggests that the price, availability, scarcity, product details,

conditions, and social media affect buying decisions (Bucko et al., 2018).

Recent literature has shown that a perceived scarcity of products can significantly affect

consumer choices (Hamilton et al., 2019; Laato et al., 2020; Pantano et al., 2020;). A further

consequence of the lower accessibility of store premises, combined with consumers' greater

health concerns, has been an immediate increase in demand for alternative distribution

channels. Unexpected regulations imposing social distancing are further having a vast impact

on consumers’ favored channel for shopping. (Eger et al., 2021)

Recent studies have assessed the factors that influences consumers’ intention to adapt

online shopping during COVID-19. Among the 10 factors examined in this study were,

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perceived usefulness, perceived ease of use, subjective norms, perceived behavioral control,

perceived lack of alternatives, perceived risk, perceived punishable infractions, risk taking

propensity, perceived external pressure, and government support (K Sharma, 2020).

A study by Dones and Young (2020) evaluated and showed that the participants'

preferred courier service, participants' preferred delivery method and option, and the

frequency of items being delivered by a specific courier service.

Although, since the beginning of the pandemic, participants of the research conducted

by Dones and Young (2020) have used the courier service at least once, the most common

item the courier delivers was food. Since restaurants can not open, the new normal would be

to respond to the demand and deliver the essentials to the customers.

In a recent Edelman Trust Barometer special survey (2020) of 12,000 consumers

worldwide, two-thirds of consumers reported their future purchase decisions will be strongly

influenced by how brands respond to the pandemic. This research was carried out in March

during the first wave of the pandemic crisis. The findings show that one-third of respondents

have already actively switched from a brand based on what they perceived to be an

inappropriate response to the crisis. Additionally, previous research was conducted

by Accenture (2020) and McKinsey (2020) in spring 2020.

Accenture (2020) states that consumers are deeply concerned about the impact of

COVID-19, both from a health and an economic perspective. The findings of the mentioned

research showed that purchases were centred on the most basic needs, people shopped more

consciously, bought locally and were embracing digital commerce.

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The McKinsey (2020) survey reported that consumers around the world change

purchasing loyalty differently. (Eger et al., 2021)

Results from the survey of the study by Dones and Young (2020) suggest that

participants are most likely to pay via Cash-On-Delivery against online payment. Even

though there is a risk for virus transmission, participants have the trust issue to see the items

first before paying.

Courier services established a vital role in the supply chain during the pandemic,

effectively making itself a significant factor in the consumers’ current purchasing activities.

Several participants began to use courier services during the pandemic (16.7%). It has been

said that the coronavirus made an increasing demand for food and essential items delivery

(Writer, 2020).

In addition, consumers that are shopping through online channels is gaining

popularity due to the ability to save time and effort (Tarhini et al., 2021). Customer behavior

has been influenced by the pandemic which increase the tendency of e-shopping because of

the benefits of certain variables. Along with these beneficial variables are frequency,

necessity, payment method, price, and availability of product/service (Hashem, 2020).

In relation to this, Secretaria et al. (2021) stated that the major factors consumers

consider when purchasing are the product quality, the accuracy of labels, the accuracy of

sizes, the the trustworthiness of the product and its seller, the delivery and payment options,

among others.

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As to the purchase intentions based on different shop characteristics, it was concluded

that customers have higher purchase intention to shops that offers cash on delivery, fast

delivery time, responsive customer service, accessible to both web and apps, and sell cheap

products (Secretaria et al., 2021).

The result on a study on determinant factors affecting customer satisfaction among

Filipinos revealed that products/services, pricing, consumer, and technological were

significantly influenced the consumer buying decision which also affect customer satisfaction

(Prasetyo and Dela Fuente, 2020).

It is also revealed by Janio (2020) that Filipinos shopped online for the convenience

of not having to go to and line up at brick-and-mortar stores (58%), better prices (47%), and

deals (46%).

Another study was designed to identify the factors of customers acceptance of

technology in adoption of online grocery purchasing during the COVID-19 pandemic in

Indian society. The result shows that, facilitating conditions and social influence are

significant factors in acceptance of online grocery technology. As consumers can see a

variety of options, easily compare prices and offers, conveniently add or remove products

from a cart and get free home deliveries with discounts, online grocery shopping using

smartphone and websites are creating a feeling of excitement and fun.

Moreover, modern Indian consumers are well equipped with smartphones, internet

connections, which is timely, especially amid COVID-19 lockdown and curfews. These

facilitating conditions are motivating customers to use online grocery platforms for safe and

contactless shopping experiences. The role of family members, friends, peers and

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acquaintances are significant in the acceptance of new technology. These social factors also

motivate customers to accept online grocery shopping. Word of mouth communication is

commonly used among family, friends and co-workers in the Indian society (Habib and

Hamadneh, 2021).

From the research conducted by Showrav et al., (2021) regarding the factors that

affects the intention to use online shopping during pandemic, the findings of their study

shows that benefits of online shopping were found to have strongest impact on users’

intention towards using online shopping.

Another research study was conducted by Fatema and Siddiqui, 2021 regarding the

factors affecting customer’s online shopping behavior during COVID-19. This is is to

investigate the variables influencing consumers' online buying behavior in Bangladesh during

Covid-19. The result of the study reveals that features and quality, fair price, performance

and durability, trust and reliability, security, E-service quality, ease of use, and time are

positively and significantly affects customers' online buying behavior during the Covid-19 in

Bangladesh. In addition, other variables can be explored, such as unique services,

innovativeness, marketing strategies, etc.

Online, retaining, and satisfying consumers are the most vital factor that directly

affects the organization. When the retailer successfully fulfills its requirements, the consumer

gets delighted repeating his choice to repurchase. On the other hand, if the online retailer fails

to serve the consumer, the consumer regrets and, in extreme cases, becomes outraged about

his decision. (Rao et al., 2021). The negative emotions experienced by the consumers could

majorly affect the company’s operations.

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Conformation, regret, external information, alternative attractiveness, and loyalty are

the factors affecting online shoppers (Liao, Lin, Luo & Chea, 2017).

According to Liu et al. (2017), the most powerful core component influencing

customers' online purchasing behavior is the website's quality, which serves as a first

impression for customers considering making an online purchase. To Hossian, the most

crucial elements for customers' online buying decisions, mare security, trust, payment

method, acceptable price, privacy, and dependability. These characteristics have a big impact

on customers' online purchasing decisions. Consumers may be put off by a perceived lack of

security or a perceived lack of security while making an online purchase. (Fatema and

Siddiqui, 2021)

Moreover, studies concluded that motivation, environment, political factors,

accessibility, and communication have a substantial influence on the attitude of online

consumers to e-services. Additionally, tight quarantine restrictions prioritized the primary

benefits of e-commerce, such as contactless, better pricing, portability, and scalability. (Gu et

al., 2021). Relative advantage, electronic word of mouth (eWOM) and trust significantly

impact consumer attitudes toward online shopping (Chetioui et al., 2021).

Although they provide as much advantages to our expectations, there are factors of

uncertainty consumers encounter when shopping online. Despite the crisis people are

experiencing, some people can never be empathetic.

Reports have showed the issues and complains Filipino consumers have faced, and

that is falling victim to scammers (Atienza and Tabuena, 2021). It may be in different cases

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such as damaged products, incorrect orders, unarrived orders, inadequate counts of products,

and little to no consideration of refunding of goods (Secretaria et al., 2021).

The useful awareness and ease of utilization awareness play an active role and they

help customers realize the potential benefits they get when they decide to utilize online

shopping services. The authors further highlighted that the risk of awareness is the biggest

barrier to the intention of customers when choosing online to replace traditional shopping.

Their study adopted Technology Acceptance Model (TAM) because of the factors

related to security, usefulness and ease of use, which are the main factors influencing

customers’ online shopping decision (Do et al., 2019; Oki et al., 2021). Lim, et al., (2016)

suggested that subjective norm, perceived usefulness and purchase intention are basic issues

for online shopping.

In addition, Pantano et al. (2020) point out that consumers have reviewed their

shopping habits and at the same time have discovered benefits from services they had never

used before. For instance, some consumers are switching to online purchases, discovering the

safety and benefits of home deliveries, store pick-up, and cashless payment. Further, these

authors noted that unexpected regulations by government imposing social distancing are

further having a vast impact on consumers’ previously preferred channels for shopping. In

this context, it is also possible to consider that customers will change their shopping habits in

the long run. For example, Sheth (2020) claims that there are four major contexts which

govern or disrupt consumer habits. They are social context (e.g., changes in the workplace

and in interaction with neighbours and friends), the implementation of new technology

(including online shopping and delivery), the impact of consumption habits due to new rules

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(the COVID-19 pandemic regulations), and less predictable context (the development of the

global COVID-19 pandemic) (Eger et al., 2021)

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