Group 8:

Cariño, Lia Andrea

Dela Cruz, Jerald
Layones, Eloisa
Lichangco, Ace Russel
Teologo, Krystel

Chapter 1: Introduction

Research Title: The Budgeting Behavior of E-Commerce Users Within the Vicinity of
Polytechnic University of the Philippines Sta. Mesa Campus Before, During, and After the
Pandemic

On the 28th day of January 2020, the Philippine government imposed travel
restrictions before the first case was reported on the 30th day of January. The number of
confirmed cases increased, and quarantine protocols were made to delay and lessen the spread of
the said virus. Enhanced Community Quarantine (ECQ) was implemented by the government in
Metro Manila first, then subsequently extended to all areas in Luzon. The quarantine includes
strict home quarantine in all households, physical distancing, class suspension, work-from-home
setup emerged, temporary closure of public transportation and non-essential businesses,
prohibition of mass gatherings, and regulation of the provision of food and essential health
services. Because of the restrictions, people started maximizing the use of digital technology.
Electronic commerce or “E-commerce” is an act of purchasing and selling goods and services
through the use of electronic networks. A surge of online shops emerged, and almost everything
is now offered and done online, starting from food and clothing deliveries to online seminars and
consultations. Filipino consumers started patronizing e-commerce platforms to appease their
needs. Online shops like Lazada and Shopee had a field day during the pandemic. Business
owners of physical stores switch to online retailing to keep up with the sudden shift in commerce
and to satisfy the demand of customers purchasing goods and services online. The Philippines
has the highest online shopping growth in Southeast Asia (SEA) over the pandemic; 54% of
consumers made their first online purchase during the pandemic, and 73% of new online
shoppers plan to continue buying online after the restrictions are lifted (Chan, 2023). This
resulted in rapid growth in the E-commerce industry during the pandemic and is highly evident
compared to its pre-pandemic status.

The onset of the pandemic significantly affects consumer spending, which is

connected to their budgeting habits. Almost all Filipino households are on a tight budget, so they
started looking for products and services where they can get more value for their money. This
health crisis made Filipinos more aware and conscious of their health and financial wellness. The
unemployment caused by the numerous lockdowns made people financially unprepared.
Nowadays, people have started to properly allocate a portion of their budget for savings, health
and life insurance plans, and making smart investments. Understanding how individuals handle
their finances is crucial, considering the constant and sudden changes in the economy. In a
continuously evolving e-commerce environment, this research aims to reveal the changes and
differences in spending habits and budgeting behavior of e-commerce users before, during, and
after the pandemic.