CONSUMERS PREFERENCES OF ONLINE SHOPPING IN DAVAO CITY

An Undergraduate Thesis Proposal

In Partial Fulfillment of Requirement on the Degree of Bachelor in

Jhaneca L. Alcayde
March, 2017
 CHAPTER 1

INTRODUCTION

Background of the study

Shopping is a form of electronic commerce which allows consumers to

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

An online shop evokes the physical analogy of buying products or services at a

bricks and motor retailer or shopping center; the process is called business-to-

consumer (B2C) online shopping. In the case where a business buys from

another business, the process is called business-to-business (B2C) online

shopping. This is evident because of the increase in retailers now offering online

store interfaces for consumers. With the growth of new market footprint coverage

opportunities for stores that can appropriately cater to offshore market demands

and service requirements.

Internet marketing is conceptually different from other marketing

channels and internet promotes a one to one communication between the seller

and the end user with round the clock customer service. Today, business

internet marketing is the fastest growing segment of online commerce. The major

difference between traditional and online selling is the extent of interaction

between the consumer and the seller. There is much more electronic interactivity

with the consumer in the form of emails and FAQs. Through FAQs, the
consumer’s questions on shipment, payment, product, policies and other

customer concerns can be addressed effectively (Pervaiz Ali, 2011).

In Australia, online shopping market can be challenging for the consumer

to navigate. This is a reflection of the growing number and variety of service

providers both in Australia and overseas, the range of goods and services on offer

for purchase online, and trust and security issues with transacting online.

Despite these issues, Australians have embraced online shopping, highlighting

the tangible benefits of the digital economy—convenience, time and cost savings,

and greater choice in service providers with no geographical constraints.

MANILA, Philippines—when it comes to learning more about what they

need to buy, Filipinos are among the most active in the Asia-Pacific region in

using the Internet for product research and snaring online deals. “E-commerce

is becoming the ‘new normal’ in Southeast Asia, as consumers in the region take

to online shopping because of the variety of goods and services available,

competitive pricing and improved delivery options make the whole process much

easier.
Objectives of the Study

This study aims to determine the following:

• To determine the consumers preferences of online shopping.

a. To determine the significant difference in the consumers preferences of online

shopping when respondents are grouped according to Socio-Demographic

Profile.

b. To know the consumers preferences and perception about the product and

services provided on the internet when respondents are grouped according to

Socio-Demographic Profile.

c. To discover the key factors that influence online buying behavior of consumers

when respondents are grouped according to Socio-Demographic Profile.

Importance of the study

This research is all about the Consumers Preferences of Online Shopping in

Davao City. The Result of this study will give valuable information and insight to

the following:

Traders. They could be provided information which could serve as guide for them

regarding the most preferred online shopping by the consumers to increase

volume of sales.
Consumers. They may gain information about what specific attributes are

considered important by other consumers of online shopping.

Online Markets. This study is very relevant because it can give a clear picture

of the future of online markets and the emerging trends in this particular field.

The various factors that influence online shopping habits and its merits and

demerits are also dealt with.

Future Researchers. The result of this study could serve as a reference and

could be cited in the review of the related literature for those who will conduct

related studies on consumer`s preferences of any online business.

Scope and Limitations of the Study

This study will be conducted from February to May 2017. Specifically, it focused

on the consumers’ preferences of online shopping in Davao City. Online shopping

includes such attributes as the quality of products, shipping fee and price. It will

be limited to 60 consumers who prefer to shop online. The 60 respondents are

randomly selected from the three barangay`s, namely; Talomo, Buhangin and

Tugbok Davao City.

The following terms are defined operationally as they used in the study:

Age refers to the profile of the respondents categorized as 20 years and

below, 21-30 years, 31-40 years, and 41-50 years.

Attributes refers to the characteristics of online shopping such as the

quality of the products, shipping fee and price.

Civil Status refers to the present marital position of respondents, whether

they are single or married.

Consumer refers to the users of products on online shopping.

Income refers to the money that is derived from the normal business

activity of an individual categorized as 5,000 and below, 5.001-10,000, and

10,000 above.

Preference refers to the choice of the consumers on what they want the

online shopping to be.

Online Shopping refers to the internet marketing used under this study.

Quality refers to the standard of the products categorized as beyond

expectation, satisfactory, good and fair.

Shipping fee refers to the payment of delivery categorized as very

expensive, expensive, moderate, and economical.

average and cheap.

Importance of the study

In recent years, online shopping has become very popular. The growth of

technology has made these a part and parcel of everyday lifestyle. The advent of

plastic money or the debit/credit card and the smooth access to the World Wide

Web has brought the shops from around the world to the desktop. We personally

have seen many of our friends surfing through various online shopping sites and

purchasing things. Student community has become so strong that even the

parents seek the help and advice of their children before conducting big
purchases. This is solely because of their exposure to web and social media.

Moreover, while it comes to personal purchases, students are very particular that

they get best products available in the market and seek all the possible ways to

secure the products. This is where the role of online shopping sites emerges.

Students who are well versed in the use of internet and active in social media,

know about online market and have tried at least some of them.

While coming to teacher`s community, they are a category who earn

handsome salary and have a pretty good amount at their disposal. They also

represents the generation previous to ICT revolution. Teachers can provide the

best attitude and perspectives of the grown up people to emerging trends in the

consumption style and their adaptability to such changes.

The study is very relevant because it can give a clear picture of the future

of online markets and the emerging trends in this particular field. The various

factors that influence online shopping habits and its merits and demerits are

also dealt with. The study also tries to have a comparison of online shopping

habits among different age groups as well as income groups.

References

Ali, Pervaiz; Sankaran, Sudha, “Online Shopping Customer Satisfaction

and Loyalty in Norway”, Published by LAP Lambert Academic Publishing (2011)

http://newsbytes.ph/2015/12/20/study-rise-in-online-shopping-in-ph-driven-by-mobile-devices/
http://technology.inquirer.net/16152/filipinos-top-in-online-shopping-research-but-

lag-in-purchases#ixzz4aMN8K1NQ

www.consumer.vic.gov.au/CA256EB5000644CE/page/Shopping+and+trading-Lay-bys+gift+cards+and+vouchers-
Group+buying+and+daily+deals?OpenDocument&1=920-Shopping+and+trading~&2=020-Lay-
bys+gift+cards+and+vouchers~&3=030-Group+buying+and+daily+deals~, accessed 19 October 2011.