CHAPTER 4

PRESENTATION AND ANALYSIS OF DATA

Next from being a source of communication, information and entertainment, the Internet

is increasingly seen as a vehicle for commercial transactions. A number of recent studies proved

that consumers have increasingly favorable attitudes toward online shopping. However, a major

impediment to the growth of e-commerce on the Internet is the lack of consumer trust in the

provider of the e-service. Consumer trust in the Internet vendor is an issue of major concern.

Since the transactions take place without personal contact, consumers are generally concerned of

the legitimacy of the vendor and authenticity of the product.

The primary objective of this study then, as stated earlier, is to determine the relationship

between consumer trust and e-commerce. By trying to explore the role of trust in consumer

online purchase behavior, this study undertook an ample survey of online customers in UST

College of Accountancy that have online shopping experiences. The empirical results indicated

that perceived ease of use and convenience does really have a significant impact on trust in

online shopping. This study tries to evaluate as well the consumer value perceptions of using the

Internet (online) versus the traditional/physical (offline) channel in purchasing. Moreover, this

study tries to determine the factors that encourage or prevent consumers to engage in online

shopping.

In order for us to have a better comparison of observed data with the data that we would

expect to obtain according to our hypothesis, our Statistical advisor advised us to use Pearson’s

Chi-Square Test as our statistical tool. The chi-square test is a good way of testing the null

hypothesis, which states that there is no significant difference between the expected and
observed result. The results of our study would then be presented through different figures and

graphs that would be soon presented in the later parts of this paper.

Figure 4.1 (Pie Chart)

21

Yes
No
125

Online Shopping Purchasing Experience

When the 146 Female Third year SBMA Respondents were asked if they had purchased anything

online; 21 students or 14.38% of them confirmed that they had already purchased goods over the

internet. 125 students or 85.62% of them answered that they haven’t experienced purchasing

goods online. This data shows that only few female respondents purchase products online and

that larger percentage of the respondents still prefer to purchase products offline or personally.

Figure 4.2
 Frequencies of respondents according to the benefits that online shopping provide

14
14

12 11

10 9 9
8 8
8 7 Time Saving
Lower Price
Accessibility
6 5
Effortless
4 4
4 3
2
2
0 0 0 0
0
Very Influential Influential Less Influential Not Influential

This graph shows that majority of the respondents consider effortless as the best benefit that

online shopping provide. Following that is time saving. Lower price is the second to the last

benefit that the respondents think as the most important among the choice, and lastly,

accessibility is the one who had the lowest number of respondents.

Also, in this question chi square is utilized to reject or accept the null hypotheses declared in the

first part of the research. The first table shows the factors that normally encourage the

respondents to purchase online with its corresponding consumer’s evaluation.

Time Saving Lower Price Accessibility Effortless

 Very Influential 7 0 9 14 30
Influential 11 9 8 5 33
Less Influential 3 8 4 2 17
Not Influential 0 4 0 0 4
21 21 21 21 84

In the next table, the formula X2 (df)= ∑ (Observed frequency- Expected frequency) 2 is used.
Expected frequency

Time Saving Lower Price Accessibility Effortless

Very Influential 0.033 7.5 0.3 5.633 13.47
Influential 0.917 0.068 0.007 1.28 2.27
Less Influential 0.368 3.309 0.015 1.191 4.88
Not Influential 1 9 1 1 12
21 21 21 21 32.62

Degree of freedom – 9

Critical value – 0.05

X2 – 32.62

Tabular value – 16.91900

Decision – Reject null hypotheses

Figure 4.3

Frequency of Female Respondents according to the Significance of Seller’s Reputation

 3

Yes
No
18

When the Respondents who already have experienced online purchasing were asked if they

consider the reputation of the seller before they purchase the products and/or goods; 3 out of 21

respondents or 14.29% of them answered that they do consider their seller’s reputation. This data

shows that the majority of the respondents who had purchased online first do background check

on the profile of the seller before they actually purchase the product(s).

Figure 4.4
 Yes
No

21

Frequency of Female respondents according to Significance of previous customers’ feedbacks

When the Respondents who already have experienced online purchasing, were asked if they

consider the previous customers’ feedbacks and/or comments written on the page of the seller

before they actually purchase products/goods; 21 respondents or 100% of them answered that

they do consider the feedbacks and/or comments of previous customers when purchasing through

online channel. This data shows that all the respondents do take the time to deliberate and

browse the previous transactions engaged in by the sellers.

Figure 4.5

Frequency of Female Respondents according to Experience on purchasing Cosmetics online

 5

Yes
No
16

When the Respondents who already have experienced online purchasing were asked if they had

purchased cosmetic products; 5 out of 21 respondents or the 23.81% of them answered that they

had bought such products online. This data shows that only minority of those people that had

purchased online bought cosmetic products via the internet. The majority bought products or

commodities other than cosmetic products.

Figure 4.6

Frequency of Female Respondents who haven’t purchased anything online according to the risks

that hinder them from buying online

113 125
80 90
120
80
40
0
on ct er
y ct
ati o du le iv o du
rm P r P r
fo he o fD e
lIn f t ce f th
na o an yo
r so city ur lit
Pe nti ss a
f he
A Qu
cyo Au
t
cte
d
iva pe
Pr Ex
When the female respondents who answered that they haven’t purchased anything online yet

were asked on the risks that hinder them from buying online; 80 or 64% of 125 respondents

answered that the fear that the privacy of their personal information will be invaded. 90 or 72%

of 125 respondents answered that they doubt the authenticity of the product they would want to

purchase; 113 or 90.4% of the 125 respondents answered that they doubt the assurance of the

delivery of their ordered product; Last but not the least, 125 or 100% of the 125 respondents

answered that they doubt the quality of the product itself- that the product might be of low

quality. This data shows that the respondents or the consumers still have doubts on online

purchasing. The reason might be because they still prefer the traditional way of purchasing

goods, wherein they can actually see and check the products themselves, and that they still do not

have developed enough trust on online marketing.