CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents the related literature that in somehow or in some ways
tend to portray similarities and differences with the impact of digital shopping. It was
laid contemporaneously in two categories, the Foreign Related Literature and the Local
Related Literatures. As a rundown though, a synthesis was placed to end the chapter for
critical and in-depth analysis.

FOREIGN LITERATURE

buying goods and offerings

from dealers who promote
and sell their products and
services in
internet. Since the globe
Wide Web (WWW) emerged,
retailers have found the
simplest way to
sell their merchandise to
folks that surf the web.
Shoppers can visit internet
shops from the
convenience of their home
and relax as they shop
before of their computers.
Today, online
Another study by Vaghela
(2014), stated that online
shopping could be a method
of
buying goods and offerings
from dealers who promote
and sell their products and
services in
internet. Since the globe
Wide Web (WWW) emerged,
retailers have found the
simplest way to
sell their merchandise to
folks that surf the web.
Shoppers can visit internet
shops from the
convenience of their home
and relax as they shop
before of their computers.
Today, online
Another study by Vaghela
(2014), stated that online
shopping could be a method
of
buying goods and offerings
from dealers who promote
and sell their products and
services in
internet. Since the globe
Wide Web (WWW) emerged,
retailers have found the
simplest way to
sell their merchandise to
folks that surf the web.
Shoppers can visit internet
shops from the
convenience of their home
and relax as they shop
before of their computers.
Today, online
Another study by Vaghela
(2014), stated that online
shopping could be a method
of
buying goods and offerings
from dealers who promote
and sell their products and
services in
internet. Since the globe
Wide Web (WWW) emerged,
retailers have found the
simplest way to
sell their merchandise to
folks that surf the web.
Shoppers can visit internet
shops from the
convenience of their home
and relax as they shop
before of their computers.
Today, online
The study of Vaghela (2014), stated that online shopping could be a method of
buying goods and offerings from dealers who promote and sell their products and
services in internet. Since the globe Wide Web (WWW) emerged, retailers have found
the simplest way to sell their merchandise to folks that surf the web. Shoppers can visit
internet shops from the convenience of their home and relax as they shop before of
their computers. Today, online shopping has come to be popular among people; they
need been very cozy in using the web and clothed to be technology experts. The
increasing popularity of online shopping among the people prompted the researchers to
review the use of electronic commerce and also the perception of the people towards it.

The U.S. has the highest total revenue from online shopping out of every country
in the world. However, the United Kingdom has the highest e-commerce spend per
capital. Chinese citizens spend a higher percentage of their salaries online than any
other country. (Ecommerce Wiki, World Atlas)

SERVCON measurement developed in the context of offline shopping does not

apply unique aspect approach of online shopping comfort since the online retailers
utilize internet as the shopping platform. Various previous literature has proven the
online service quality concept by identifying same dimensions of service comfort like
unique feature with dimensions like facilitation in interactivities usage, information
browsing, information in depth and richness, and security

Vijay et al (2017) suggests that both internal and external elements have direct
influence on website satisfaction. They highlight on why and how satisfaction with
website matters in the contribution of shopping values and website atmospherics to
behavioral outcomes by presenting its mediating role.

The statistical results revealed that online customers monthly spending amount
as well. There was a statistically significant positive relationship between the amount of
time and money spent on the internet. The three most popular online shopping sites
were determined as trendyol, hepsiburada and alibaba. The products must online
customers bought were clothing, stationery products, online tickets, and electronic
devices (Kilic, Z., Ates V. 2018).

Ayden and Demir (2011) pointed out that e-commerce consumers behaviors and
preferences that those who are 26-35 years of age and have a Bachelor's Degree, whose
income is 1500 Turkish Liras and above are more likely to prefer e-commerce. In
another study, they have conducted research on the behavior of civil servants
purchasing products from the internet. As a result of the research, it has been found out
those customers who have a high education and high-income level are shopping more
on the internet. The study also pointed out that the delay in the delivery of products
and deceptive and misleading advertisements were the major hindering factors for
online buying (Ayden and Demir, 2011)

According to Choudhury (2014), the study highlighted that there is a significant

relationship of online shopping with gender, internet literacy and online product price.
Similarly. the study also highlighted that there is no significant relationship of online
shopping with education and website usability.

LOCAL LITERATURE

Online shopping started on 1979 by English Entrepreneur named Michael

Aldrich. His system connected a modified domestic TV to a true time transaction
processing computer via a domestic telephone line. Today the online shopping becomes
the new trend of today’s generation thanks to the various benefits that it gives through
the buyers and also the sellers. Consumers are more confident about purchasing a
product once they have done their own research online. (Eunyu Nis, March 2014).

The hottest e-commerce markets in Southeast Asia, and the Philippines comes
right at the top of the list. According to the study by Ken Research (2014), the
Philippines e commerce market can expect a stupendous compound annual growth rate
of 101.4 percent from 2013 until 2018, thanks to rising internet and social media
adoption. (Ken Research, 2014)

Southeast Asia, including the Philippines has become a virtual gold mine for
online shopping. Proof of that is that many online shopping malls are now on expansion
mode. Lazada is one of the largest online shopping websites in Southeast Asia. It
announced that it has raised $ 250 million from a group of investors including Tesco PLC,
Access Industries Investment AB Kinnevik and Verlinvest According to Tesco, as
Southeast Asia's 600 million consumers begin to use smart phone technology to access
retailers online. (Tesco, March 2014)

Based on the study conducted by Lucero, et.al (September 2016), he

determined whether there is a significant relationship between consumer perception
and purchase behaviour on online shopping among students. It has been found out that
the respondent perceptions and their purchase one of the largest online shopping
websites in Southeast Asia. It announced that it has raised $250 million from a group of
investors including Tesco PLC. Access Industries Investment AB Kinnevik and Verlinvest.
According to Tesco, as Southeast Asia's 600 million consumers begin to use smart phone
technology to access retailers online. Tesco, March 2014)

Based on the study conducted by Lucero, et.al (September 2016), he determined

whether there is a significant relationship between consumer perception and purchase
behavior on online shopping among students. It has been found out that the respondent
perceptions and their purchase behavior on online shopping are both high. To sustain
their high perception on online shopping, it is suggested that web developers should
incorporate features on their websites regarding convenience, security, benefits and
leisure. It is important for online marketers, entrepreneurs, and business men to
consider the fact that students spend more time on the internet and that this factor will
likely increase the students online shopping behavior.

According to Gomez (2016) almost like walking only some steps to achieve a sari-
sari store. e-shopping has given the Filipinos power to shop for anything, from
anywhere, at any time. While the closest mall may have already closed for the day,
you'll still flick through many items while lounging on your sofa or bed.

In the study of Tomlinson (2015) the e-commerce is becoming the new normal'
in Southeast Asia, as consumers in the region take to online shopping of the variety of
goods and services available, competitive pricing and improved delivery option make
the whole process much easier.
 According to Svonavec (September, 2017), online shopping has proved to have
many positive advantages for consumers. Online stores are open 24 hours a day, so the
issue of a store closing before the consumer can make it on time exceptionally efficient
during the holidays; shoppers do not have to bother with the long, exasperating lines.
Due to lack of operating costs, online retailers can sell goods at lower prices so that this
makes the experience of online shopping not only faster and convenient, but it is also
for cheaper than going to the physical store. Although online shopping has advantages,
there are many downsides to doing online business: Backorder goods can be proved to
be exceeding trying for shoppers, especially during the holidays, shoppers also lose the
person-to-person communication that online retailer cannot provide.

As said by Francia (October, 2018), Filipino shoppers also prefer inspecting the
products themselves before making a purchase, while others factored in the cost of
shipping and the length of delivery time. Research Tech Lab (RTI) noted that Filipinos
more assured when they examine the products before checkout, while being able to
take the item immediately after payment gives them peace of mind. It also recorded the
enticements of online shopping from July to September, which coincided with the sale
promo of leading e-commerce sites Lazada and Shopee. Here, the company found that
68 61% of Filipinos Still favor traditional shopping

The market has rapidly grown since then. According to Eshopworld.com, there
are at least 37.7 million e-commerce users in the country in 2018 from the 30. 2 million
estimated in 2016. The number is expected to rise to $3.8 million by 2020. A report
published in May 2018 found that despite its growing popularity, the Philippines lags in
terms of e-commerce sales in the Southeast Asian region (Eshopworld.com).

According to Willy Kruh, he said that today's consumer no longer goes shopping,
but shopping all the time and everywhere. In a truly global online marketplace,
competition is no longer limited to local shops during regular business hours. Consumers
can easily buy from retailer and manufactures located anywhere in the world or from
those with no physical retail locations at all.
 Online shopping is a new experience and has a great contribution in the lives of
consumers in its short time of existence. It is expected to radically grow in the years to
come considering the advancement in technology. Online shopping has made
consumers more effective and efficient in their shopping and has pushed businesses to a
new level, compelling many online sellers to make the needed adjustments and changes
to match the new market of educated consumers. (The Online Shopping Preferences of
the Bachelor of Science in Accounting Technology Students of the College of Business,
Entrepreneurship and Accountancy, April 2019)

Based on finding it is concluded that the respondents accessed the internet to

support their work on a daily basis but accessed the internet for online shopping
occasionally. The respondents were found to prefer online shopping to physical
shopping due to benefit such as saves time, comfortable/ relaxed shopping, detailed
product information, mode of payment and facility of easy price comparison impacting
consumer behavior towards online shopping. [ CITATION Agi14 \ 1033]