The Problem and Its Scope

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CHAPTER 1

THE PROBLEM AND ITS SCOPE

Introduction

Online shopping is a form of electronic commerce which allow consumers to

directly buy goods or services from a seller over the internet using web browser. It is the

way through which consumer can purchase goods or services directly by sitting at home.

Earlier to shop online consumers generally visit shopping website by sitting in front of

the desktop is not a full day connectivity. Nowadays, smartphones play a dynamic role to

connect to internet. Now either at office, travelling, home anywhere consumer can be in

touch with online shopping sites. It is just because ease of use through internet, whenever

he feels free time he can order.

But there is not always an easy accession to internet. Slow internet connections can

cause difficulties. If the companies build too complex or too large websites, it will take

too long for users to check them or download them and they will get bored eventually.

Other factor is the payment which many users still do not trust in the electronic methods

of paying and give up buying online because of this. One of the major disadvantages may

be the lack of trust of the users because of the constant virtual promotions that appear to

be frauds. This is an aspect that deteriorates the image and reputation of quality and

honest companies. Other disadvantage is the cash on delivery system, since it does not

guarantee the hundred percent purchase of the product. This is also the case of thousands

of users that dedicate themselves to daily mock big companies by ordering on the internet

using false identities.

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According to Smriti Chand, consumer behavior is the study how individual

customers, groups or organizations select, buy, use, and dispose ideas, goods, and

services to satisfy their needs and wants. It refers to the actions of the consumers in the

marketplace and the underlying motives for those actions. Marketers expect that by

understanding what causes the consumers to buy particular goods and services, they will

be able to determine- which products are needed in the marketplace, which are obsolete,

and how best to present the goods to the consumers.

The study of consumer behavior assumes that the consumers are actors in the

marketplace. The perspective of role theory assumes that consumers play various roles in

the marketplace. Starting from the information provider, from the user to the payer and to

the disposer, consumers play these roles in the decision process.

The objective of this research paper is to determine the impact of the buyer’s

behavior during online purchase at any online businesses.

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Conceptual Framework

Chang, Cheung, and Lai (2005) studied categories of variables , which drive online

shopping activity. In their study, they divided the features into three broad categories.

Perceived characteristics of the web sale channel are the first one which includes risk,

online shopping experiences, advantage, service quality, and trust. The second category is

a website and product features which are risk reduction measures, site features and

product characteristics. Various types of features, demographic variables, consumer

shopping orientations, consumer innovativeness and psychological variables, computer,

internet knowledge, and usages drive consumer characteristics.

Independent variable Dependent variable

Age The extent effect of factors


influencing consumer behavior
Sex
towards online shopping in terms
Daily allowance of:

Grade level • Product preferences


• Activities when shopping
Number of hours spent on social
online
media in a day
• Perception on online
Average amount spent in peso on a shopping
single purchase
When to purchased product
Figure 1. Schematic Diagram

Age was considered as variables in this study. According to Sorce (2005), while

older online shoppers search for significantly fewer products than their younger

counterparts, they actually purchase as much as younger consumers. Attitudinal factors

explained more variance in online searching behavior. Age explained more variance in

online searching behavior if the consumer had first searched for the product online.

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Sex was another independent variable. Thomas (2018) stated that women are

increasingly more reliant on the internet to make purchases, while men still prefer bricks

and mortar, according to a new survey from First Insight. The survey found that men are

less likely to use Amazon to shop for the best price. Fewer men also subscribe to

Amazon Prime, and fewer embrace mobile shopping, according to the study. He also

added that men are destination drivers. They go in stores to touch and feel. Men like to

execute deal at stores and then bring items home with them. While, female shoppers, he

said, do not necessarily feel the need to go to stores in the same way. With a gender gap

driving a wedge between how women and men make purchases, retailers should take

notice.

Daily allowance was also considered since the buying capacity of students were

based on their financial capability.

Number of hours spent on social media may also affect the consumer behavior

towards online shopping. According to the contradictory research of IBM (2012) and

(2013), social media has little impact on online shopping, with only 0.34 percent of sales

referred by social media sites. This makes sense. When individuals only have so many

hours in the day, any time spent on social media will detract from time spent on online

shopping activity. However, social media is often used for consumption-related activity,

such as sharing recent purchases or advertising products for sale. When individuals

interact with their social networks, they are exposed to consumption-related information.

Such exposure not only increases the number of products the individual is exposed to, but

also decreases the online research time they might need to make a purchase.

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Average amount spent in a Peso on a single purchase was also considered. Valdez

(2014) stated that when people go shopping, they shop for a particular thing. As it would

with regular shopping, online shopping comes with more distractions causing you to

spend more money. Sometimes for shipping to be free, you have to spend a certain

amount of money. This causes the buyer to look for more items just so they do not spend

their money on shipping.

Grade level was taken into consideration. This may have the same effect with the

age of the respondents towards online shopping.

Statement of the Problem

This study determined the factors influencing consumer behavior towards online

shopping among the senior high school in Kibungsod National High School. Specifically,

the study aimed to answer the following questions.

1.What is the profile of the respondent in terms of age, sex, daily allowance/income,

average amount spent in Peso on a single purchase, grade level, and number of hours

spent in social media in one day, and when to purchase product ?

2. What is the extent effect of factors influencing consumer behavior towards online

shopping in terms of product preferences, activities when shopping online, and

perception on online shopping?

3. Is there a significant difference on the factors influencing consumer behavior towards

online shopping among the senior high school students in terms of product preferences,

activities when shopping online, and perception on online shopping when grouped

according to demographic profile?

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4.Is there a significant relationship between the product preferences and respondents’

daily allowance, product preferences and respondents’ grade level, activities when

shopping online and respondents’ sex, and perception on online shopping and

respondents’ number of hours spent on social media in a day?

Null Hypotheses

On the basis of the preceding problem, the null hypothesis would be tested at 0.05 level

of significance.

1.There is no significant difference on the factors influencing consumer behavior towards

online shopping among the senior high school students in terms of product preferences,

activities when shopping online, and perception on online shopping when grouped

according to demographic profile.

2. There is no significant relationship between the factors influencing consumer behavior

and the average amount spent when shopping.

Significance of the Study

This study explored the factors that influenced consumer behavior towards online

shopping. This study will help the online retailers, online customers, and future

researchers.

To the online retailers. It will help them to improve their strategic marketing plan

according to the factors that influence the buying decision of customers. It will also give

them better strategies to make the marketing plan effective.

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To the online customers. It will help them to be wiser enough to purchase more

secured products from trusted online retailers. Also, this will help them to take precaution

on the factors that influence their buying decision.

To the future researchers. It will give them information and understandings. It will

stand as their guide and reference in making their study.

Scope and Delimitation

Although the research purpose is believed to be achievable, here are reasons that

should be taken in consideration as a delimitation of the study.

The study was limited to the factors influencing consumer behavior towards

online shopping in Kibungsod National High School for school year 2019-2020. The data

will be gathered from senior high school students of Kibungsod National High School.

The independent variables were limited to the age, sex, grade level, daily

allowance, number of hours spent on social media in a day, average amount spent in Peso

in a single purchase, and the time on when to purchase product.

The dependent variable was limited to the factors influencing consumer behavior

towards online shopping in terms of product preferences, activities when shopping

online, and perception online shopping.

Definition of Terms

To better understand this study, the following terms are defined as they are used
in the study.
1. Consumer Behavior. This is the action and decision of the people who purchase
goods and services.

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2.Delivery System. This is the procedure for providing a product from online shop.
3.Internet. This is a place online where online customers are connected to online

retailers the buying process.

4.Online Customer. This is a person who shop online.

5. Online Retailer. This is a person who sells online.

6. Online Shopping. This is a kind of business which allows consumers to directly buy

goods or services from a seller over the internet.

7.Payment. Particularly, this is the money that is used to pay someone in exchange for

the product.

8. Perception on online shopping. This refers to the way consumers think about online

shopping.

9. Product Preferences. These are opportunities for the consumers to choose what

product they are going to buy.

10.Purchases. This is a product that is bought by the online customer from the online

retailer.

11. Shopping Website. This is a site which allows everyone to explore and to shop

online.

12.When do purchased product. This refers to the time that the consumer will purchase

product online.

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