Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter shows summaries, evaluations, and comparisons of literature and

studies related to the online shopping activity of students, its society, and how this could

affect them. These serve as a foundation of knowledge to evaluate the factors that

motivate the students of Cebu City National Science High School to shop online.

Students’ Attitude toward Online Shopping

A study was conducted regarding the factors affecting students’ attitude toward

online shopping. Consumers’ attitude towards online shopping affects their decisions on

buying. Attitude serves as the bridge between consumers’ background characteristics

and the consumption that satisfies their needs (Armstrong and Kotler, 2000). It is

influenced by shopping orientations (utilitarian and hedonic) and consumer perceived

benefits (convenience, homepage, price, wider selection, customer service and fun).

Three statements were hypothesized by the researchers. Their hypotheses state that

there is a positive relationship between the consumers’ attitude and the utilitarian

orientation, the buying of things for useful or practical reasons, as well as with hedonic

orientation, the buying of things for pleasure, and also with the perceived benefits.

The classic theory of reasoned action (TRA) and Technological Acceptance

Model TAM have been extensively adopted for explaining and predicting user

behavior in an online shopping environment. TAM is an adaption of the Theory

of Reasoned Action (TRA) and was used to assess user’s computer acceptance,

which is measured by the intention and the influence of attitude, perceived usefulness,

perceived ease of use toward the intention to use (Davis, Bagozzi, & Warshaw, 1989).
The researchers conducted the study by giving self-administered questionnaires to 500

randomly selected post-graduate students and 370 questionnaires returned were valid

for coding, analyzing and testing the hypothesis. Results show that there is a

positive relationship between the consumers’ attitude and utilitarian orientation, as well

as with attitude and perceived benefits, therefore accepting the first and third

hypotheses.

This study shows that this group of students do not buy because of hedonic

reasons or of impulsive buying. They have been planning on buying prior to the actual

day of purchase. This study also gives an idea of how to use the theoretical frameworks

TRA and TAM.

Perceived Risks

Despite the ongoing proliferation and expansions in e-commerce, there are still

drawbacks that prevent people from using this platform as a place to get their needs

and wants. The studies of the risks behind online shopping help in online shopping

awareness and also help online merchants improve their ways. Researchers

hypothesize that different buyers stop themselves from buying online due to common

risks.

Perceived risk is identified into six types namely, financial, functional, social,

psychological, physical, and time risk. Respondents’ perceived three types of risks

when shopping online, namely, personal risk, social risk and performance risk, as

opposed to the expected six types of perceived risks. (Gerber, Gerber, & Ward). Note

that these are not the only risks in shopping online. Dai, Forsythe, and Kwon proposed

a conceptual model to illustrate the relationships between online shopping experience

and how both experience and risk perceptions impact online purchase intentions.

Results showed inconsistencies, therefore stating that risks associated with online

shopping is multifaceted. Online shoppers may experience differents risks which can

make one less noticeable to the other.

There are a lot of risks one might face when shopping online. These prevents

shoppers from buying online. Studying about the risks entailed with online shopping

would also help in studying about the effects online shopping gives to students. Making

“risk” a variable to the study can give a wider scope, however the researchers will

include it as a general variable.

Online Shopping in the Philippines

E-commerce has been rapidly growing in the country. More Filipinos have mobile

phones and access to the internet, making them a step closer to shopping online.

Online shops are also multiplying while giving a large range of offers. Offline stores are

also switching from window shops to computer screens. These studies from various

articles show how much time and money Filipinos have spent through online shopping.

Filipinos buy online from shops that are domestic of across the borders.

According to the report, Filipino shoppers’ total online spend for 2017 was P92.5 billion

making the Philippines as the third highest among seven Asia Pacific countries

surveyed by PayPal in terms of making a purchases online. This number is expected to

grow in the next years. People who prefer to do their shopping online are also said to

spend an average 6.2 hours daily. Online shoppers buy online for the reasons of

convenience (58%), price (47%), and deals (46%). The leading products bought by
Filipinos online are in clothing/apparel, footwear, and accessories. However, some

Filipinos still prefer in-store shopping than doing it online. Some of the reasons are the

lack checkout queues, 24/7 access to stores, and the legitimacy of online reviews.

Studies show that Filipinos are fond of shopping online. Characteristics of the

respondents were not stated in these articles and having “the Filipinos” as the

respondent in general would be too broad and would take more time. Going into a

smaller group, such as students, would give a more specific study focusing a group of

people that would may or may not have the same characteristics.

Negative Effects of Online Shopping

This study is to examine the relationship between compulsive buying,

depression, and excessive internet use. The significance of this is to find out if

enthusiastic and compulsive buying can greatly affect one’s mental health, especially to

schooling teenagers. This study needs to be more examined since the results are

surprisingly, not the expected- materialism and depression jointly influence compulsive

buying.

Compulsive spending is not an official diagnosis but it resembles other

addictions. It is an obsession with shopping and buying behavior that causes grave

consequences, financially., sometimes called compulsive buying disorder or oniomania,

is spending far beyond what is necessary. Though it often causes financial harm,

people of means may engage in compulsive spending without suffering serious financial

disaster. In an increasingly materialistic society, it can be difficult to differentiate

compulsive spending from the overbuying in which most people engage. An online

survey of 387 consumers was conducted including questions about demographics and
shopping venues, the Compulsive Buying Scale, the Patient Health Questionnaire

Depression Scale, the Materialistic Values Scale, and questions concerning excessive

Internet use, 17 % of them reported Compulsive Buying Scale scores less than -1.34

and were considered to be having compulsive buying.

The study shows that materialism and depression are associated with

compulsive buying, whereas excessive Internet use was not. Further research is

needed to examine further. Therefore, compulsive buying is a variable to depression.