Research Group 4

1
NEW LUCENA NATIONAL COMPREHENSIVE HIGH SCHOOL

SENIOR HIGH SCHOOL DEPARTMENT
Brgy. Poblacion, New Lucena, Iloilo
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Online business gained popularity during the pandemic. As the world changes
because of Covid, online shopping makes it easier to market goods in a tap. Online
business is a modern marketing style that is adapted by the society. 86 percent of the
respondents in the Philippines stated that they shopped from e-commerce market places
in the last three months (Rakuten Insight, June 2022).
Online shopping has become a habit when it comes in buying necessities these
days. Applications like Shoppe, Lazada and Facebook markets allows entrepreneurs to
market their products in various ways. As the online market grows, The more individuals
grew interest in online business.
Because of the huge percentage of business owners using online platforms to

promote and sell their products, the researchers thought of correlating the relationship
between the income status of online sellers with regards to the marketing strategies to
use. This study aims to determine the best marketing strategy in terms of income
generation.
1.2 Statement of the Problem
The main purpose of the study is to determined the correlation between the
Income Status and Marketing Strategies of Online sellers in New Lucena, Iloilo,
Philippines for the year 2019-2022.
Specifically, The study seeks to answer the following research questions:
1. What is the demographic profile of online sellers?

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2. What are the Marketing Strategies and Income Status of Online sellers
in New Lucena, Iloilo?
3. Is there a significant difference with the income online sellers earned
when using varied methods: creating posters and leaflets, engaging
media, encouraging word of mouth and using special offers and
discounts in marketing their products?
4. What is the relationship between the income status and marketing
strategies of online sellers in New Lucena, Iloilo?
1.3 Hypotheses
Based on the foregoing research objectives, the researcher identified the following
null (H0) hypotheses:
1. There is a significant relationship between income status towards the

marketing strategies being used, and
2. There is no significant difference between online seller's income status when
classified according to sex and civil status.
1.4 Significance of the Study
The result of this study will be of prime importance to the following::
1. For the online seller: This study will provide information to the online
sellers on how they are dominating nowadays when it comes
to selling and what is their effect to the traditional way of selling.

(studocu.com,2022).
2. For the traditional sellers: this study will provide awareness and
knowledge to the traditional sellers on what is the impact of online selling
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to their business and their income so that they can think of a way to
maintain their sales and revenue.(stoduco.com2022).
3. For that consumers: they study will bring data to the consumer That's
provides information about buying online products that is less inequality
rather than buying installs that assure them with the quality
( studoco.com,2022).
1.5 Scope and Delimitations
The research study will focus on investigating the relationship between the
income status with regards to the marketing strategies of online sellers in New Lucena.
This study both investigate the income status and marketing strategies used by online
sellers to market their products. The respondents of the study will be online sellers that
start selling their products online from 2019-2022. The study will be conducted from
April 1, 2023 - April 31, 2023.
The data will be tabulated, statistically analyzed and interpreted with the use of
frequency count, percentage, mean, t-test, and the One Way Analysis of Variance
(ANOVA). All statistical data will be processed with the aid of Computer's Statistical
Package for Social Sciences Software (SPSS). The level of significance for inferential
statistics will be tested at 0.05 alpha.
1.6 Theoretical Framework
According to Digital.com, The well-known Maslow's Hierarchy of Needs is one

of the fundamental theories relating to online marketing. In a study published in 1943,
Abraham Maslow describe the five levels of human needs. He said that people's basic
requirements are met in their order of importance; psychological need, safety and
security, social (human) belonging, self-esteem, and self actualization.
A hierarchy of requirements drives human motivation. The order of needs is not

rigid but maybe flexible depending on external circumstances or individual
differences .Most behavior is multi-motivated ,that is simultaneously driven by more than
one basic need. Needs are arrange in hierarchy of prepotency, Where basic needs must be
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more or less met ( rather than or none) prior to higher needs.
This theory is adapted from Abraham Maslow. This is the theory relevant to our
study because better understanding of the hierarchy of needs is crucial for comprehending
the theoretical background of online selling methods. Sales persons get to know potential
customers and probe for information about their important needs before making a sale to
generate more income. Maslow's pyramid help sellers especially the one that is selling
online to understand their customers more.
Conceptual Framework
Sex
Civil Status
Income
Marketing
Figure 2.1.Status
The paradigm of variables of the relationship Strategies
between income status and
marketing strategies of online sellers in New Lucena, Iloilo.
1.8Definition of Terms
For purposes of clarification, the following key terms are hereby defined:
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1. Income Status refers to the position of a person or household income in relation to

a low income line.
As used in the study, it is the level of income online sellers earn in online
shopping platforms.
2. Marketing Strategies is a long-term plan for achieving a company's goal by

understanding the needs of customers and creating a distinct and sustainable
competitive advantage. It encompasses everything from determining your
customers as to deciding what channels you used to each of those customers.
As used in the study, it is the way how online sellers promote and sell their
products to their customers online.
3. Online selling is simply the buying and selling of woods and services using the
internet. However, The term is often used to describe all of a sellers when selling
products directly to customer.
As used in the study,online selling is the use of online apps to market products
and services.
4. Data can come in the form of text, observations, figures, images, numbers, graphs,
or symbols.
As used in the study, data are informations that the researcher collects from the
respondents.
CHAPTER 2
REVIEW OF RELATED LITERATURE
2.1 Related Literature
2.1.1 Online Selling
Online selling or E-commerce had been in trend in this generation that greatly
affects the satisfaction of consumers. There are influencing factors in order to measure
the consumer satisfaction, such as the pricing, the quality of products, security,
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availability, discount, shipping, and the accessibility of information. According to Neil

Patel, Customer satisfaction measures how your product, service, and overall experience
either falls short, meets, or exceeds customer expectations.It is said that customer
satisfaction has been identified as an important phenomenon in relation to online
shopping. The investigation of what cause customer satisfaction has become paramount
for online businesses.
Filipinos especially teenagers are known for being cautious in terms of

purchasing a product. They consider security, faster transaction or shipping, product
quality and availability, price and values, discount and the accessibility of information
(e.g using internet shops, website). Filipino consumers value online shopping because of
its convenience and accessibility. On the other hand, even if the online mechanisms may
provide easy to use and efficient methods of shopping (Momtaz, Islam, Ariffin, & Karim,
2011), the customers may not opt for them if those mechanisms do not meet their
expectations.
2.1.2 Marketing Strategies
Marketing is a dynamic and ever-changing field. The thought digital marketing

strategies change with the consumer and technology trends of the day. This is why every
business needs a good marketing strategy that will plan and has well-defined milestones
and adjectives. Once you have the right map, the chances you'll reach the goals you've set
your business, are much higher.
That means, that while most of us are eager to start lunching or marketing efforts
the minute after we decide to start a business, we actually need to invest in planning so
we won't waste our limited budget and energies on the wrong things.
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If you're a company/start up owner or marketer you need a good digital marketing

strategy to hit your goals.
Marketing strategy is a long-term, forward looking approach and the overall game
plan of any organization or any business with a fundamental goal of achieving a
sustainable competitive advantage by understanding the needs and wants of customers.
A marketing strategy is a broad strategy that in compasses everything from how

a company position itself, to the creative, the strategic partners, the media relations, the
marketing mix and the channels and tactics.
The broad marketing strategy is what used to fall under the term "branding"
back in the more ambiguous days of marketing. It's a practical summary of the key details
of the strategy and some of the broad goals and methods used to achieve them.
2.1.3 Consequences of income effect
The income effect may have positive or negative consequences on a small

business, depending on many factors. The income effect relates to how consumer spends
money based on an increase or decrease in their income. I'm increasing income results in
a demand for more services and goods. I decrease in income results in the exact opposite.
In general, when it income are lower, less spending occurs, and business are hurt by the
effect.
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If a small business specializes in woods or services that are brought when

incomes have decreased, it may see a boom in profits,. Examples of these types of
businesses include discount stores, stores that sell items in bulk, or are there inexpensive
retailers.
More than likely, for most businesses, when the income attack shows a decrease
in income, there will be less spending, and business will be affected negatively. Two
factors, The marginal propensity to spend and the marginal propensity to save, are not at
when the meaning the influences of the income effect (INVESTOPEDIA TEAM).
2.2 Related Studies
For further understanding of the study, the researchers made use of different
reading materials related to the online-selling and part-time jobs. These material such as
books, thesis and other web articles are essential in broadening the knowledge of the
researchers. These will also guide the researchers to achieve their target objectives by
getting ideas on other related literature and make improvement as possible.
The information gathered by the researchers focuses on the level of awareness on

the effects of online selling as part-time job among selected online-sellers of San
Ildefonso College.
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This review presents the materials used such as books, journals, internet, and
other thesis writing to support their relevance of the presented study.
Foreign Literature
According to Aldin et.al, (2014), the web has become an opportunity for the
marketers to add value to products and services. The phenomenal growth and rising of
the popularity of the internet and the World Wide Web has become a key to attract more
consumers and businesses to engage the benefits of Electronic Commerce (Ecommerce).
This event has transformed the traditional commerce and enhanced sales and exchanges
of merchandise and information. It is not just considered as a single entity of technology
but both technologies where applications, processes, business strategies are necessary to
do business electronically.
According to Brigita Go (2012), running an online business is much better than opening a
store. Selling online is indeed one of the great ways to make profits online. In fact, it is
also a great way to widen your target market and grow your business fast as well. It is
manageable and it will also not affect your studies while you are doing online selling.
2.3 Synthesis
This literature review and synthesis aims at developing a knowledge base to

inform the online sellers and how to develop, implement, and cultivate their marketing
strategy towards online selling, and how they can use online platforms to minimize their
time and maximize their profitability. It also provides an understanding of effective
practice on how to become an effective online seller. It assist with planning and
budgeting by identifying the relevant support needs and issues at different stages of an
online seller's lifecycle. It focuses primarily on the role of online sellers and how they use
marketing strategies to improve their income status.
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REFERENCES
Statista. (2022, August 11). Preferred online shopping channels Philippines 2022.
https://www.statista.com/statistics/1325691/philippines-online-shopping-modes-in-the-
past-three-months/
https://smallbusiness.chron.com/theories-selling-59532.html
Digital.com(n.d.).
https://www.studocu.com/ph/document/tomas-claudio-colleges/accountancy/
significance-of-the-study/12683936
Contributor, C. (2020, November 17). Theories of Selling. Small Business - Chron.com.

https://smallbusiness.chron.com/theories-selling-59532.html
Marketing Strategy: What It Is, How It Works, How To Create One. (2022, June 13).
Investopedia. https://www.investopedia.com/terms/m/marketing-strategy.asp
What Are the Consequences of Income Effect? (2022, December 29). Investopedia.
https://www.investopedia.com/ask/answers/041415/what-effect-does-income-effect-
have-my-business.asp
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CHAPTER 3
METHODOLOGY
3.1 Research Design
The data collection strategy that will be used for this study is a descriptive-
correlational study within the quantitative research tradition. A correlational research
design investigates relationships between variables without the researcher controlling or
manipulating any of them. A correlation reflects the strength and/or direction of the
relationship between two (or more) variables. The correlational design is employed to
describe the level of income status and marketing strategies on online sellers.
Correlational statistics will be employed in order to determine the correlation between the
online sellers level of Income and the Marketing Strategies that they have applied in
online selling in the municipality of New Lucena , Iloilo, Philippines. The study will be
conducted among the online sellers in New Lucena, Iloilo, Philippines from 15th April
till 1st May, 2023.
3.2 Population and Sample

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The researcher's target population is the range group of 18 to 45 years old

residents of New Lucena. In this study the population will be consisted of 30 online
sellers in the municipality of New Lucena, Iloilo, Philippines .
A purposive sampling will be used by the researchers .It is also known as

judgmental, selective, or subjective sampling, a form of non-probability sampling in
which researchers rely on their own judgment when choosing members of the population
to participate in their surveys.A purposive sample is the one whose characteristics are
defined for a purpose that is relevant to the study.
3.3 Instrument: Semi-structured Questionnaire
The semi-structured questionnaire is taken from the complete research of Unska

Binter that is published in 2019. The questions are author’s work since there is no similar
questionnaire available.The questions were, however, based on theory and research
presented in their Chapter 2.
The aim is to learn more about the subject and to see respondent’s perspective.
With successive investigative questions ambiguities can be clarified. Caeyers, Chalmers
and De Weerdt (2010) define many advantages of this instrument.
In the adopted semi-structured questionnaire format, closed ended questions were

used. The closed question should provide statistically more valid data that can be easily
aggregated. Closed-type questions were used with an increasing five-level Likert type
scale in order to rate the level of non-importance or importance (with marks from 1 to 5
(1 showing non-importance and 5 showing great importance).
Demographic Profile
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Part I, is consisted of some items that elicited information about the

demographic profile of the respondents including the civil status, gender, age, and
Income Status.
Proper Questions
Ten questions seeks to determine the rate of impact of the marketing activities to
the success of the business.
The survey process will be conducted from April 15 to May 1, 2023. The
researchers will orient respondents with an explanatory mail that included he background
for the survey. The researchers will arrange a face-to-face meeting to gather the
respondent's responses.
3.4 Validity and Reliability
Unska Binter have already carefully considered the validity, reliability and
credibility of the questionnaire instrument in her study about the Influence of Online
Marketing Strategies on the sales success of Business to Business (B2B) companies in
the geographical region of Slovenia and Australia in 2019 (Binter,2019).
3.5 Data Gathering Procedure
The researchers will request permission from the school authorities prior to the
conduct of the study. Permissions will be granted by Research subject teacher and the
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school principal of the New Lucena, National Comprehensive High School. Having
found the questionnaire valid and reliable, specific instructions will be given to the
respondents prior to answer the survey forms. Answered questionnaires will be collected
on the same day that questionnaires were administered.
3.6 Statistical Treatment
Spearman rank correlation: Spearman rank correlation is a non-parametric test that is

used to measure the degree of association between two variables. The Spearman rank
correlation test does not carry any assumptions about the distribution of the data and is
the appropriate correlation analysis when the variables are measured on a scale that is
at least ordinal.
The stronger the association of the two variables, the closer the Pearson
correlation coefficient, r, will be to either +1 or -1 depending on whether the relationship
is positive or negative, respectively. Achieving a value of +1 or -1 means that all your
data points are included on the line of best fit – there are no data points that show any
variation away from this line. Values for r between +1 and -1 (for example, r = 0.8 or -
0.4) indicate that there is variation around the line of best fit. The closer the value of r to
0 the greater the variation around the line of best fit.
Strength of association Positive Negative

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Small 0.1 to 0.3 -0.1 to -0.3
Medium O.3 to 0.5 -0.3 to -0.5
Large 0.5 to 1.0 -0.5 to -1.0
QUESTIONNAIRE
I. Personal ProfileName: (Optional)____________________________ Age: ______
Sex: Male { } Female { }
Marital Status: Single { } Married { }
How many customers can you reach with your previous marketing strategy?
{ } 1-15 customers/month
How many customers can you reach in your recent marketing strategy monthly?
How much income you can gain monthly?
{ } 10,000 pesos & below
{ } 10,001 php up to 20,000 php
{ } 20,001 php and up
What online/social media platform you are using in your business? ____________
II. Proper Questions

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Instructions. Read each question carefully and check (✓) the appropriate level based on your
preference by utilizing the Likert Scale.
1- Not important at all 2- Not important 3- Of medium importance 4- Important 5-Very

Important
Digital marketing affects the success of a company. Please share your views on these.
Marketing activities positively impact revenue. Please rate the impact of the activities.
Not Not Of medium Important Very

important important importance important
(4)
at all
(2) (3) (5)
(1)
Word of mouth/ referrals
Trade shows, in person

events
Calling prospective
clients via call centers
Customer visits
Search advertising
Content Marketing
Partner Marketing
Social Media
Sponsorship
Marketing Automation
Software
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1

NEW LUCENA NATIONAL COMPREHENSIVE HIGH SCHOOL

1.1 Background of the Study

Because of the huge percentage of business owners using online platforms to

1.2 Statement of the Problem

Specifically, The study seeks to answer the following research questions:

1. What is the demographic profile of online sellers?

1. There is a significant relationship between income status towards the

1.4 Significance of the Study

The result of this study will be of prime importance to the following::

to selling and what is their effect to the traditional way of selling.

1.5 Scope and Delimitations

1.6 Theoretical Framework

According to Digital.com, The well-known Maslow's Hierarchy of Needs is one

A hierarchy of requirements drives human motivation. The order of needs is not

more or less met ( rather than or none) prior to higher needs.

1. Income Status refers to the position of a person or household income in relation to

2. Marketing Strategies is a long-term plan for achieving a company's goal by

2.1 Related Literature

2.1.1 Online Selling

availability, discount, shipping, and the accessibility of information. According to Neil

Filipinos especially teenagers are known for being cautious in terms of

2.1.2 Marketing Strategies

Marketing is a dynamic and ever-changing field. The thought digital marketing

If you're a company/start up owner or marketer you need a good digital marketing

A marketing strategy is a broad strategy that in compasses everything from how

2.1.3 Consequences of income effect

The income effect may have positive or negative consequences on a small

If a small business specializes in woods or services that are brought when

2.2 Related Studies

The information gathered by the researchers focuses on the level of awareness on

This literature review and synthesis aims at developing a knowledge base to

Contributor, C. (2020, November 17). Theories of Selling. Small Business - Chron.com.

3.1 Research Design

3.2 Population and Sample

The researcher's target population is the range group of 18 to 45 years old

A purposive sampling will be used by the researchers .It is also known as

3.3 Instrument: Semi-structured Questionnaire

The semi-structured questionnaire is taken from the complete research of Unska

In the adopted semi-structured questionnaire format, closed ended questions were

Part I, is consisted of some items that elicited information about the

3.4 Validity and Reliability

3.5 Data Gathering Procedure

3.6 Statistical Treatment

Spearman rank correlation: Spearman rank correlation is a non-parametric test that is

Strength of association Positive Negative

Small 0.1 to 0.3 -0.1 to -0.3

Medium O.3 to 0.5 -0.3 to -0.5

Large 0.5 to 1.0 -0.5 to -1.0

Marital Status: Single { } Married { }

How much income you can gain monthly?

{ } 10,000 pesos & below

{ } 10,001 php up to 20,000 php

{ } 20,001 php and up

II. Proper Questions

1- Not important at all 2- Not important 3- Of medium importance 4- Important 5-Very

Not Not Of medium Important Very

Trade shows, in person

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