The Increasing Use of Digital Shopping: Assessing The Factors of ABM Students Preference for

E-Commerce

Chapter II

LITERATUR REVIEW

Foreign Literature

Since the 1990s, online shopping has witnessed a significant surge in popularity, with an
increasing number of consumers turning to the Internet to purchase various products Zhou et al.,
(2017). Researchers like Rohm and Swaminathan (2014) highlight that online shopping has
become an infrastructure that simplifies the process of searching, comparing, and accessing
relevant information, making it an integral part of people's daily lives (Noort, et al., 2014).

Past studies have underscored the importance of "Convenience" as a crucial variable in

online shopping (Clemes et al., 2014). Burke (2015) emphasized the significance of convenience,
citing it as the most frequently cited reason for online shopping. Delafrooz, et al., (2010) affirmed
that convenience greatly influences a customer's ability to shop online, with ease of use being a
major motivator for online purchases, surpassing traditional in-store shopping (Delafrooz et al.,
2019). Consumer perceptions of interest encompass convenience, brand recognition, choice
flexibility, information enrichment, and familiar website design, all of which significantly
influence attitudes toward online shopping Shwu-Ing (2013). The consensus from Clemes et al.
(2014), Burke (2015), Delafrooz et al. (2010, 2019), and Shwu-Ing (2013) suggests that
convenience is a key factor influencing consumers' decisions to shop online. The studies highlight
various aspects of convenience, such as ease of use, choice flexibility, information enrichment,
and familiar website design, all of which contribute to positive attitudes toward online shopping.
The findings align with broader trends in e-commerce, where companies strive to enhance user
experiences by prioritizing convenience in their online platforms. The idea that convenience
surpasses traditional in-store shopping as a motivator for online purchases reflects the evolving
consumer preferences in the digital age. As a researcher, one might consider further investigating
how specific elements of convenience, such as website design, information accessibility, or
transaction simplicity, impact consumer behavior in online shopping. Additionally, exploring
potential changes in consumer perceptions over time or in different cultural contexts could provide
valuable insights for businesses aiming to optimize their online shopping platforms.

Furthermore, "Ease of use" as our second variable, according to Davis (2019) and Bagozzi
(2020), represents the extent to which consumers find the utilization of a new technology to be
effortless. When applied to online shopping, ease of use signifies consumers' perceptions of
spending minimal money and effort while shopping online. Perceived ease of use denotes the ease
with which users can access information using technology or systems without encountering any
difficulties (Davis, 2019). It is separate from perceived usefulness, which relates to users'
perceptions of the outcomes of their online shopping experiences (Monsuwe, et al., 2014).
Consumers prefer simpler and more user-friendly systems when shopping online (Selamat, et al.,
2016). As a researcher, it aligns with established concepts in technology acceptance and user
experience research. The definitions and perspectives presented by Davis (2019), Bagozzi (2020),
and Monsuwe et al. (2014) regarding ease of use in the context of online shopping are consistent
with the broader literature. The notion that ease of use in online shopping refers to consumers'
perceptions of spending minimal money and effort resonates with the idea that user interfaces and
interaction with technology should be intuitive and straightforward. Davis (2019) highlights the
importance of users finding the utilization of a new technology effortless, which is particularly
relevant in the context of online shopping platforms. Differentiation of perceive ease of use from
perceived usefulness is an established concept in TAM and related models. The perception of users
about user-friendliness has significant implications for adoption and continued use of a system.
According to Selamat et al., 2016, consumers’ preference for simple and less complicated systems
in online shopping emphasizes the importance of ensuring satisfaction through an easy navigation
system that encourages repeat use.

Oentario et al. (2017) demonstrated that ease of use has a significant direct impact on
consumers' attitudes, and researchers have consistently found a positive relationship between
perceived ease of use and the willingness to make online purchases. Technology ease of use and
satisfaction with the online shopping experience are pivotal in predicting online user behavior
(Ramayah and Ignatius, 2015). The study findings carried out by Oentario et al., 2017 and the
connection with convenience and consumer attitudes toward electronic shopping coupled with the
affirmative association between perceived ease of use and intention to purchase items through
electronic shopping system is consistent with technology acceptance theory and theory of planned
behavior. In addition to this, the fact that there is a correlation between the convenience of using
e-commerce and one’s intention to purchase products through internet strengthens the idea that
providing easy access to online stores increases the likelihood that customers will take a particular
decision. This is consistent with the general view that if a user’s experience is friendly and
convenient, the customers will be satisfied and loyal towards them. Such research may be done for
selective attributes relating to ease of use, including design aspects, navigational features, or
transaction related parameters that positively impact on customers’ feelings regarding the same.
Additionally, examining how these factors vary across different demographic groups or cultural
contexts could provide further insights into the nuances of online consumer behavior.

Teck (2012) asserted that "Usefulness" is a primary factor in online shopping. Davis (2019)
compared the relative strengths of the usefulness-to-usage relationship and the ease of use-to-usage
relationship, finding that usefulness surpasses ease of use in significance, potentially influencing
consumer behaviors and attitudes. "Usefulness" is perceived as the individual's belief that using
new technologies will enhance their performance (Davis, 2013). In the context of online shopping,
the Internet can enhance customers' performance and productivity, especially in their shopping
experiences (Monsuwe, et al., (2012). "Usefulness" perception is linked to the outcome of the
shopping experience (Monsuwe et al., 2014). Shadkam, Kavianpour, Honarbakhsh, and Wan
(2013) reinforced the notion that "Usefulness" plays a more significant role in shopping
willingness than "Ease of use."

"Security and privacy" are other important considerations that impact internet purchasing.
According to Ramayah et al. (2010), consumer perceptions of security and privacy issues pose
major obstacles to e-commerce adoption. Consumers exhibit reluctance to conduct online
transactions due to concerns about security and privacy (Grandinetti, 2000; Udo, 2001). Internet
users are highly concerned about their privacy and security, seeking reassurance that their personal
information is secure (Guo Xiaoying, et al., (2012). Privacy concerns extend beyond a company's
data processing decisions, encompassing third-party data misuse, identity theft, and hacking risks.
Hackers can originate from external or untraceable sources (Salim, 2009), making it essential to
address security and privacy concerns to maintain consumers' trust in online transactions
(Chellappa, 2011). The government also plays a role in ensuring consumer security in online
shopping (Yu and Abdulai, 2010).

The final factor, "Saves money, time, and effort," distinguishes online shopping from
traditional in-store purchases. Online shopping is often perceived as a time-saving and cost-
effective alternative to traditional shopping, which typically consumes more time (Alreck and
Settle, 2012). Malaysian Internet users who engage in online shopping are driven by opportunities
for cost savings, convenience, easy access to information, and 24-hour service (Zuriahti Azura,
2010). Online shopping allows users to access information conveniently and quickly, saving both
time and effort (Muda, Mohd, and Hassan, 2016). Convenience, easy access to information, time
savings, and cost advantages are commonly cited benefits of online shopping (Shwu-Ing, 2013).
Consumers often highlight saving money and time as key advantages of online shopping
(Horrigan, 2018).

Pawar (2014) concludes that consumers rely upon more than one medium in order to
enhance their brand related knowledge. It means that they use the combination of various sources
for making final purchase decision. They have identified that internet is truly advantageous
through which they can serve their various purposes mainly social networking, online shopping &
media sharing (photo, music, video). This efficacy of internet has intensified their tendency of
being online. Due to the convenience and the accessibility of online platforms, buyers prefer
shopping online. They can browse much more variety of products and they can compare the prices
from different shops. With the wide utilities that the online shopping websites gives, people on the
current generation choose this according to the study. For all we know that convenience and
portability is the main selling point of online shopping that's why it is the next big trend in selling
products.

Also, Thomas (2008) talks about the consumer behavior in online shopping. This study
said that it started as an exploratory study and by gaining knowledge about consumer behavior to
further being able to gain knowledge about online consumer behavior. This research conducted by
considering the research approaches- inductive and deductive approaches, also the research
philosophy and research strategy. This research attempts to find the main factors that influence the
consumers when buying through online. It says also that questionnaire is most appropriate
approach to fill out of their respondents. The result of this research is when a consumer purchase
through online, they will be affected by various factors. And the main influencing factors are Price,
Trust and Convenience. Jaryani et al. (2012) claims that online marketing is much more
reasonable, less expensive and allows easier access to customers. Online marketing provides much
more convenience because shopping and selling is much faster to conduct especially on shopping
websites. They also can pull more customers because internet is common nowadays which ensures
more potential customer to come in.

In addition, Das & Lall (2016) states that having a website for any business organization
is a "must do" because most people have access to the internet nowadays. In order to acquire more
customers, they recommend to start a website wherein product information and product selling
could be done. By using this, business can capitalize to the growing world of internet. Moreover,
Ethan Lieber and Chad Sybverson (2011) states that the emergence of online channels in the
market can bring changes especially to the outcomes and to the both market level for the individual
firms. As the online marketing grows faster it gives more potential especially to those business
like retail and services sectors, where in the online sales appears is still substantial room for growth
and online marketing approach is effective than any approach to the available business.

Moreover, from the research study of Qiqei Wang et. Al (May,2023) This study proposed
a theoretical framework to explore and define the influencing factors of online consumer
purchasing behavior (OCPB) based on electronic word-of-mouth (e-WOM) data mining and
analysis. Based on the K-means analysis, this section presents the influencing factors identified in
the data from Jingdong and Taobao, which indicate the influencing factors influencing OCPB. The
comprises the perceived emergency context attribute, such as logistics, expressage, delivery,
customer service, promotion, and reputation. The research study resulted that the smartphone
attributed based on online reviews. Also other scholars have explained the relationship between
feature preferences and customer satisfaction usage behavior and purchase, importance and costs
of smartphones’ features and services, brand effects, and purchase behavior of people of different
ages and gender groups. Thus, H1, H2 and H3 are supported, while H4 is not supported according
to the results of the K-means analysis.

According to Maryia Fokina (Aug, 2023) states that the number and value of online sales
are on an upward trajectory. In fact, in 2024 global ecommerce sales will likely surpass $7 trillion
in value. The growth is fueled by a numerous factor such as rise of mobile shopping, the growth
of the social media, and the increasing subscription services of applications. The number of online
store owners is relatively low today at the moment of business owners’ side. However, this is not
accompanied by a substantial surge of interest currently. You still get a chance in 2023 to board
the wagon and surf on e-revenue wave in 2023.

Foreign Studies

According to the study of Devkota et. Al (2021) which aims to understand Nepalese
consumers' perception of online shopping in Kathmandu, Nepal. A respondents were interviewed
and the results showed that 66.0% of people face challenges while shopping online, with 41.6%)
feeling products don't match the website, 32.12% choosing poor quality products, 10.95%
receiving timely delivery, 8.755% having hidden costs, and 6.57% having long procedures.
However, 86.05% believe these problems can be managed by selling high-quality products,
implementing a safe payment system, strict rules, and promoting a positive online shopping
environment.
 From the study of Batara et. al (2018) participants were recruited online and randomly
assigned into one of the sixteen treatment conditions with the presence and/or absence of the four
variables being investigated. Results of two-way analysis of variance showed that, in an online
selling platform, the presence of consumer innovativeness and perceived benefit, the presence of
perceived benefit and perceived risk, and brand image had significant influence in one’s decision
to buy online. Findings provide implications towards improving an online website’s shopping
platform which may motivate the consumer to buy.

The popularity of e-commerce has rapidly increased because of internet usage accessibility
and relevant tools to deliver information easily to users (Ahmad, Bashir, Farah, Muqarrab & Turi,
2018). Accessibility on the internet has driven customers to purchase online. There are 627 million
people globally who use online shopping, making it the third most used activity on the internet
(Udin & Sultan, 2011). The rapid increase shows the high number of internet users and the change
in consumer attitudes and behavior. Online shopping is described as a way of purchasing and
acquiring products and services. The trend of online shopping keeps increasing as businesses use
it as a sales channel to reach customers. Through innovation, it is easier and more convenient for
customers to shop online in various shops (Boerwinkel, 2016).

Li and Zhang (2012) delved into the prevailing state of research concerning online
shopping attitudes and behaviors.

Wang et al. (2015) conducted a comprehensive analysis of factors influencing consumer

buying behavior within both traditional and modern contexts. They elucidated the factors
influencing and cautionary considerations for online shopping in China.

Javadi et al. (2012) undertook an analysis of the factors influencing consumer behavior
toward online shopping. The results indicated that financial risks and non-delivery risks hurt
consumer attitudes toward online shopping. Conversely, domain-specific innovativeness and
subjective norms exhibited a positive influence on online shopping behavior. The findings
presented by Javadi et al. (2012) provide valuable insights into the factors influencing consumer
behavior toward online shopping. The identification of financial risks and non-delivery risks as
negatively impacting consumer attitudes toward online shopping aligns with concerns commonly
associated with e-commerce. Consumers may be wary of potential financial losses or uncertainties
related to the delivery process, and these concerns can indeed affect their overall attitudes toward
online shopping. This could involve exploring factors such as secure payment options, transparent
shipping processes, and effective communication about potential risks to alleviate consumer
concerns. Additionally, investigating the factors that contribute to domain-specific innovativeness
and how subjective norms are formed in the context of online shopping could offer further insights.
This could include studying the role of social influence, marketing strategies, and peer
recommendations in shaping consumers' positive attitudes and behaviors toward online shopping.

Sinha and Kim (2012) explored factors influencing Indian consumers' perceptions of risk
in online shopping. Their research included previously identified factors as well as Indian-specific
elements. Key factors encompassed product delivery, social factors, and perceived behavioral
control. The study also highlighted gender-specific distinctions, with perceived risks and
technology-specific innovativeness being significant for males, while convenience risks and
attitudes toward online shopping were significant for females. It provides valuable insights into
the factors influencing Indian consumers' perceptions of risk in online shopping. By incorporating
both previously identified factors and elements specific to the Indian context, the study recognizes
the importance of considering cultural nuances in understanding online consumer behavior.

A study by Nazir et al. (2012) identified various factors directly affecting consumer
behavior in online shopping. The findings revealed that psychological, social, emotional, and
privacy factors impacted consumers' attitudes toward online purchases. Factors such as pricing and
insecurity during online payment acted as barriers to online purchasing.
 Cheema et al. (2013) developed a model of technology acceptance to uncover additional
factors influencing online shopping intentions.

Popli and Mishra (2015) examined the variables influencing purchase decisions during
online shopping. They identified an array of factors, including financial, privacy, time,
performance, product, online transaction, health, quality, delivery, after-sale, and social risks,
which played a role in consumers' decision-making processes.\

In a related Vein, Ray and Chaudhary (2015) explored both external and internal influences
on customers' decision-making processes. The findings highlighted psychographics as the most
significant market segmentation factor, with factors such as occupation, lifestyle, and values
forming the critical combination behind people's buying intentions.

With the advent of technology and the shift toward online business trends, studying
consumer behavior has gained prominence. In the era of information technology, the internet has
opened new opportunities for people worldwide to engage in online product purchasing, where
physical presence is no longer a necessity. Nazir et al. (2012) emphasized the need to analyze and
comprehend consumer behaviors. The connection between the online sale of products and
marketing strategies is tightly interwoven, as demonstrated by numerous previous research studies

Local Literature

Arnould and Thompson (2015) highlight the significance of applying the theoretical
framework of consumer behavior to the online environment. The dimensions of the online
shopping experience provide us with insights into the overall online shopping journey undertaken
by consumers and those accompanying them. Within the physical realm of the online shopping
experience, this dimension is a social and collaborative journey, starting from the search for
information to the final purchase. Notably, respondents assert that they engage in online shopping
with companions, though not necessarily with peers or family members. This indicates that online
shopping is not always a solitary experience; individuals may have company, whether it's a
comparison companion or someone with whom they converse or share their experiences, someone
nearby. However, the presence of a family member, such as parents for a student or a husband for
a woman, may enhance the experience, while the presence of a peer does not.

According to De Leon and Santos (2022), consumers are prone to making rash purchases
as a result of their stress. According to their survey, majority of their respondents agree that
shopping improves their mood. They shop online to save time and gain access to a wider variety
of products and services. They find it as an escape from their problems and they have become
addicted to the point where they cannot control themselves. Only purchase intention and product
promotion have a significant impact on the participants’ impulse buying behavior. In which it is
contrary with the expectations when in the atmoshphere of in store browsing.

Sanchez et al. (2023), according to their gathered data, the results indicated that most of
their respondents prefer buying online shopping in terms of its broad range of choices of products
available, safety, convenience, prices, and promotions rather than the traditional shopping or in
physical store. Their study shows that no significant association between the age, and gender of
respondents and their shopping preferences.

From the study of Abella, Rabe, and Almaden (2021), examined the impact of the
coronavirus pandemic on Metropolitan Cebu residents' online shopping behavior. Using
descriptive methods and convenience sampling, the study found that 21.1% of respondents did not
change their online shopping habits, while 59.5 percent increased their spending. Despite the
pandemic, 20.4% decreased their online spending. As the city transitions to the MGCQ phase,
71.3% of respondents are expected to continue sustainable online shopping.

Barrera, Samosa, and Barrios (2022) on customers using e-commerce, it surveyed residents
and the majority of respondents were highly satisfied with the use of applications and platforms,
as they led to prompt and on-time food delivery. Nevertheless, the level of satisfaction did not
differ due to the age, sex, education, marital status, type of work or the kind of gadget used.
Therefore, the study indicates that e-commerce might not necessarily be the leading cause of
consumers’ dissatisfaction. Future studies should consider alternative predictors of customers’
satisfaction with their experience in the food market.

According to Mahinay et. al (2016) their study examines the relationship between
consumer perception and online shopping behavior among Mindanao University of Science and
Technology students. The research involved respondents from colleges, focusing on convenience,
benefits, leisure, and security. It has been found out that the respondents’ perceptions and their
purchase behavior on online shopping are both high.

Local Studies

In the Philippines, the Shopee PH: Sell & Shop Online app stands out as one of the most
popular platforms for online shopping. Shopee is a prominent online shopping hub in Southeast
Asia and Taiwan, providing users with a convenient and seamless shopping experience that can be
accessed at any time and from any location. With robust payment and logistical support, Shopee
ensures a straightforward, secure, and rapid online shopping experience for all users
(Chukwuemeka, 2021).

Diverse service industries, including retail, manufacturing, finance, trade, marketing,

healthcare, and even education, have embraced e-commerce as an integral part of their operations.
Virtually anything can be found on the internet, a testament to the evolution of information
technology that has facilitated this digital landscape (Atienza & Tabuena, 2021; Chukwuemeka,
2021).

According to Creencia (2022), found out that a variety of factors influence people's
decision to shop online, and that there are several benefits and drawbacks to e-commerce for
Filipino customers. The study also found that even if internet shopping has drawbacks, Filipino
customers should keep using it because it offers them many benefits.
 People's consumption patterns have changed substantially. The demand for physical
interaction services has decreased sharply, while online consumption and services are continuously
increasing (Watanabe & Omori, 2020). Moreover, the transition from physical stores to an online
store is one of the covid-19 effects. Consequently, many sellers are emerging in the market hence
an increase in competition. The first six months of the current financial year witnessed a surge of
57 percent in Filippino’s online buying over the same period in 2019 as per a release by One News
and hence, regarded to be the largest in Southeast Asia region.

Shopping has become a part of the normal Filipino's daily routine, as they explore for new
products to try. Such purchasing habits have been ingrained in their daily lives (Castillo, 2016).
The Filipino consumer behavior is one of the most important and valuable today. To satisfy them,
their needs, wants, wishes, and desires must always be addressed and understood. Filipinos are
becoming more involved in social media and have been subjected to multiple social interactions
that occur in the cyber world. The E-Word of Mouth has the potential to influence both purchasing
intentions and post-purchase habits. More specifically, the findings of one study indicate that only
positive valence E-Word of Mouth consumer purchases has a significant impact on consumer
intentions to purchase product in a social commerce environment. (Catedrilla, 2017)
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