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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND


Introduction
English entrepreneur Michael Aldrich invented online shopping in 1979. His system
connected a modified domestic TV to a real-time transaction processing computer via a domestic
telephone line. He believed that videotext, the modified domestic TV technology with a simple
menu-driven human computer interface, was a 'new, universally applicable, participative
communication medium the first since the invention of the telephone.' This enabled 'closed'
corporate information systems to be opened to 'outside' correspondents not just for transaction
processing but also for e-messaging and information retrieval and dissemination, later known
as e-business.
The Internet has experienced an exponential growth in the number of users and has
created enormous increases in its marketing and communication applications during a
considerably short period of time. Although both scholars and practitioners have jointly
acknowledged the capabilities of the Internet as a marketing tool that offers great potentials and
advantages, there remains a scarcity of knowledge pertaining to the motivations for using the
Internet and associated online consumer behaviours in more web-specific scenarios. The uses
and gratifications theory (U&G) provides a theoretical grounding and an avenue to further
understand consumers attitude and intention of using the Internet as a shopping channel from a
media perspective.
More specifically, this study attempts to shed some light on how consumers form their
attitude and online shopping intention based on the uses and gratifications structure to the

existing literature and managerial implications for entrepreneurs and marketers of electronic
businesses on how best to serve and attract consumers to shop online via the management of
online shopping technologies.
All of the business today as we see is done over the internet and anything which is not
there is meant to be wiped off. Ecommerce, the online shopping system has brought down
political and physical barriers giving everyone in the world an equal playing ground for their
market, everyone can put their products on sale through the e-stores. Speaking about the last
decade we saw a great market, rise over the internet, online shopping was introduced wherein
firstly computer scientists got interested in then it came to general public and gradually became a
substitute for the real market place.
Background of the Study
We all know that most of the teenagers today has addiction to of using internet and by
that companies are also focusing through advertising their products and services in online
advertising because of heavy online users. Online advertising is a marketing strategy that
involves the use of the Internet as a medium to obtain website traffic and target and deliver
marketing messages to the right customers. Online advertising is geared toward defining markets
through unique and useful applications.

Since the early 1990s there has been an exponential increase in the growth of online
advertising, which has evolved into a standard for small and large organizations. Online
advertising is also known as Internet advertising. Online shopping is the process consumers go

through to purchase products or services over the Internet. An online shop, e-shop, e-store,
internet shop, web shop, web store, online store, or virtual store cause the physical analogy of
buying products or services at a bricks-and-mortar retailer or in a shopping mall. The metaphor
of an online catalog is also used, by analogy with mail order catalogs. All types of stores have
retail web sites, including those that do and do not also have physical store fronts and paper
catalogs. Online shopping is a type of electronic commerce used for business-to-business and
business-to-consumer transactions. Commonly, the teenager are more interest to shopping
through the online, because they have more time sit in front of their computers and surfing
internet. Customers make purchases in order to satisfy needs. The wealth of products and
services produced in a country make our economy go through the flow of the technology because
instead of going to the product and services outlets we can know enjoy the convenience of the
internet advertising.

Statement of the Problem


This study aims to identify the assessment of Internet advertising through online
shopping specifically the research seeks to answer the following:

1.) What is the demographic profile of the respondents in terms of the following:
1.1 Gender
1.2 Age
1.3 Program
1.4 Year Level
1.5 Family Income
1.6 Internet Connection
2.) What is the assessment of internet advertising of online shopping site?
2.1 Effectiveness
2.2 Convenience
2.3 Reliability
2.4 Interaction
2.5 Catchy
2.6 Clarity

Hypothesis
1. There is no significant relationship of the respondents profile like gender, age, program, year
level, family income and their internet connection when it comes to the effectiveness of internet
advertising of online shopping sites.
2. There is no significant relationship of the respondents profile like gender, age, program, year
level, family income and their internet connection when it comes to the convenience of internet
advertising of online shopping sites.
3. There is no significant relationship of the respondents profile like gender, age, program, year
level, family income and their internet connection when it comes to the reliability of internet
advertising of online shopping sites.

4. There is no significant relationship of the respondents profile like gender, age, program, year
level, family income and their internet connection when it comes to the security of internet
advertising of online shopping sites.
Significance of the Study
The researchers believe that the result of this study will be a great help to the
following:
To other JRU Students
Through this study, respondents will become more aware about the effects of online
advertising. It will also give them idea about the impact of online advertising.

To the JRU Students


This study aims to provide an opportunity for the TIP community by starting to promote
the school itself.
To the Advertisers and Ad Agencies
The result of the study will contribute in advertising goods and services through social
networking sit, specifically pop-ups which have reached the business world. Sharing information
about products and services would be an easy way to communicate to customers.
To the Fellow Students

For the students in making thesis, it will be a big help for them to guide in creating a
research in which regards to the online site. This research could help students in the field of
marketing management and other related courses.
To the Future Researcher
This study will be an effective tool and reference for the researcher who would intend to
make any further relevant study particularly the standards underlying the online site.
Scope and Delimitation of the Study
This study focuses in evaluating the College of Business and Economics of Jose Rizal
University, during first semester 2016-2017. This is to know and examine the significance of the
e-commerce to the students using of online shopping sites.
This study involves 187 sample sizes of CBE students from the total population of 354
students that is enrolled in JRU during first semester class 2016-2017.
The researchers consider the time constraint which is inclusive of the following:
completion of the study should be within first semester class only (SY 2016-2017) and other
consideration is budgetary constraints.
Conceptual Framework
The investigation of the European Commission on Google is focusing a lot of attention
on the market for search advertising, whose particular structure has attracted recent attention of
the theoretical and empirical economic research on multisided markets. Understanding this
special market, its borders, its structure and the role of its leader is crucial for antitrust analysis.

As of now, we lack a theory of leadership in multisided markets (most theory in the field is about
symmetric competition), which is essential to evaluate abuse of dominance in online advertising
in a rigorous way. Below we analyze what we believe to be the main aspects of the structure of
the market for online advertising, which would deserve a formal analysis in leader-followers
models.
The main aspect of search is the pervasive role of network externalities: the more Internet
users reach a search platform, the more effective is an advertising campaign on the same
platform. Since Internet users often join the platform with a commercial purpose in mind and use
it to find information on products, advertising can be tailored on them in a much more effective
way than with other means.
Moreover, continuous technological innovations open new ways for advertisers to be
always more effective on a platform online. This generates a very limited substitutability
between online and traditional advertising.
In spite of this, some researchers (Ratliff and Rubinfield, 2010) have advanced the
hypothesis that some substitutability between online and traditional advertising could exist
because they both serve broad advertising goals. However, this neglects a key difference:
traditional advertising is aimed at building a general brand-awareness usually without a specific
target audience, while search advertising is largely aimed at generating market transactions
online. From this perspective, traditional and online advertising are almost always complements
rather than substitutes - Analogously, Amazon may compete with traditional bookstores, but does
not compete with traditional advertisers of books (whose services actually promote the business
of Amazon rather than being substitutes for it). Empirical evidence on the subject, however, is
still too limited.

Having defined search advertising as a reasonably separate market, we can move to


analyze its structure. Search advertising is aimed at direct demand fulfillment, as witnessed by
the "text-only" composition and the payments on a cost per click basis; moreover, platforms
compete to conquer the largest number of visitors, that is they compete in quantities, and charge
advertisers for the clicks they receive on their ads. All the search engine platforms choose a
quantity of advertisements to be made available in a specific order for any search query. Given
the space allocated to these sponsored links, an auction pins down the market clearing price for
these advertisements.
The highest bid for each keyword association wins, with the price given by the second
highest bid: this tends to force bidders to reveal their true evaluation of the click, which allows
the auctioneer to choose the profit maximizing auction mechanism. Contrary what is usually
claimed, these auctions do not necessarily add a competitive element to online advertising, but
allow a dominant firm to adopt complex forms of price discrimination aimed at excluding
competitors in search advertising or at extracting all the surplus from the bidders. Moreover, the
auction process is made more complex by the different places where the ad can appear on the
search page, and remains largely obscure to advertisers and competitors. Finally, most platforms
have recently introduced forms of click-weighted auctions that weight bids according to secret
algorithms to give priority to advertisements with a larger chance to be clicked on: this
mechanism is aimed at increasing the effective willingness to pay.
The structure of the market for search advertising depends on a particular form of
network externality which is quite different from the one emerging in other markets of the New
Economy. This is due to two main reasons, one related to technological issues and one to the role
of multi-homing. Let us start from the first. Network effects in search are combined with a form

of learning by doing: search engines find more relevant results for each query when there are
more queries and the subsequent clicks of the users provide information on what are the most
relevant websites associated with keywords. Through this feedback, users improve the
algorithms that govern the search engine (with a larger impact on tail queries compared to
common queries on which all search engines reach a relatively large feedback). Therefore, not
only more search generates more demand for advertising (as in any market with network effects),
but more search generates also the scale needed to improve the search technology and provide
more relevant results and ads, which in turn generates more search.
This is a key difference compared to other markets with network externalities, as those of
other software platforms: on one side, in traditional platforms the number of consumers
determines the demand of application developers but does not affect the quality of the software
platform for a given number of applications, on the other side, in search platforms the number of
visitors determines the demand of advertisers and also the (future) quality of the search engine.
This combination of network effects and learning by doing induces initial increasing returns to
scale in this market, that are reflected in the pattern of the "revenue per search", which has a
typical S shape in the size of the web visitors.
As a consequence, for a platform to enter the search advertising market (or increase its
market share) it is crucial to rapidly gain scale and close the gap on the search queries. At the
same time, for a leading platform to maintain its dominance it is crucial to protect the
information gained through search and limit the scale of the rivals. Any exclusivity agreement
between the dominant firm and hardware or software distributors to install only its search-related
products and services or between the dominant firm and advertisers to rely only on its platform
may jeopardize the hopes of the competitors to gain scale and compete on the merit. This may be

the case of the exclusivity agreements on the Google toolbar or on the search default settings
between Google and software vendors as Adobe, hardware vendors as Apple or browser
distributors as Firefox, Safari and Opera. Moreover, scale requires that any search engine must
be able to access all websites and "crawl" them to find new information. Clearly, if the dominant
platform obtains a privileged access to some relevant websites and limits the access of
competitors, competition is penalized: such a strategy of raising rivals' costs may exclude some
competitors (or accommodate market outcomes with high prices that are detrimental to
advertisers).
In this case, innovation by the followers is penalized as well. This is what may have
happened since the acquisition by Google of YouTube, the main website for video contents,
whose access for competing search engines, does not appear to be as direct and immediate as for
Google.
The other reason for which network effects in search are different from those of other
markets is that multi-homing on both sides (by web visitors and advertisers) can easily spread
benefits between different providers. Of course, multi-homing by consumers is the key to drive
the accumulation of information needed to build scale for a minor search engine. The fact that
search engines are free and, most of all, are always "one click away" on the Internet plays a
double role in this context. On one side, it allows consumers starting from the dominant search
engine to easily try alternatives to test their capabilities, which enhances the chances for minor
search engines to take off. On the other side, multi-homing by consumers allows those who are
experimenting a minor search engine to quickly return to the dominant one jeopardizing the
chances of the former to develop and protecting the advantage of the latter.

Equally important is multi-homing on the advertisers' side. Since advertisers are uniquely
interested in the effectiveness of their spending, they have good reasons to diversify their
investments between alternative platforms in such a way that the marginal returns are equalized.
Multi-homing guarantees that different Internet users can be reached with different search
engines, typically with a higher budget destined to the leading channel (currently Google Ad
Word) and a smaller budget shared across the others (as Yahoo! Panama or Microsoft Ad Center).
Moreover, data analysis can easily allow for a comparison of the return on investment in each
channel to optimize spending. It is clear that multi-homing by advertisers would contribute to the
development of scale and efficiency for minor search platforms. Notice that this is quite different
from what emerges in some of the other software platforms where multi-homing on both sides is
often not necessary (think of the market for videogames, where consumers choose a single
platform, but multi-homing by game developers guarantees network effects for all the platforms).
As a consequence, any policy aimed at limiting multi-homing creates obstacles to network
effects. This may be the case for the contracts with which Google prohibits advertisers from
using competing platforms, and for the exclusive use by Google of the data on its clients which
prevents them from performing data analysis to compare the return on investment of different
advertising channels.
Conceptual Framework
The current study uses a survey research in order to examine the influence of the uses and
gratifications structure on the formation of consumer attitudes and online shopping intentions.
The first three boxes represents the online users first is the Entertainment gratification they are
the one who uses internet for entertainment, second is the Information gratification which is

more on information that they receive from single person or a group of people, third is the Web
irritation these are people who is irritated by the online ads and these three comes into the
attitude of towards the online shopping and comes up for the intention to shop online.

Figure 1.1 Research Paradigm

Definition of terms
Accessibility - refers to the design of products, devices, services, or environments for people
with disabilities.
Convenience - the state of being able to proceed with something with little effort or difficulty.
Customer Satisfaction - it measure of how products and services supplied by a company meet
or surpass customer expectation.
E-commerce- Business conducted through the use of computers, telephones,
fax machines, barcode readers, credit cards, automated teller machines (ATM) or
other electronic appliances (whether or not using the internet) without the exchange of paperbased documents.
E-mail marketing - directly marketing a commercial message to a group of people using email.
Internet advertising - is a form of marketing and advertising which uses the Internet to
deliver promotional marketing messages to consumers.
Internet- an electronic communications network that connects computer networks and
organizational computer facilities around the world
Online Advertising - is a form of marketing and advertising which uses the Internet to
deliver promotional marketing messages to consumers.

Online shopping - The act of purchasing products or services over the Internet. Online shopping
has grown in popularity over the years, mainly because people find it convenient and easy to
bargain shop from the comfort of their home or office.

Search engine optimization (SEO)- is the process of affecting the visibility of a website or
a web page in a search engine's unpaid results - often referred to as "natural," "organic," or
"earned" results. In general, the earlier (or higher ranked on the search results page), and more
frequently a site appears in the search results list, the more visitors it will receive from the search
engine's users.
Software Platform- a major piece of software, as an operating system, an operating
environment, or a database, under which various smaller application programs can be designed
to run.

CHAPTER 2
REVIEW OF RELATED LITERATURE
Review of Related Literature
The researchers made use of different reading materials related to the online system.
These materials such as books, journals, thesis, and other web articles are essential in broadening
the knowledge of the researchers. These will also guide the researchers on how the online
advertisements will delineate its significance to the students by getting ideas on other related
studies and make improvements as possible.
The information gathered by the researchers focuses on the significance of online
advertisements and its effectiveness to the CBE students.
Foreign Literature
The web has become an opportunity for the marketers to add value to products and
services. The phenomenal growth and rising of the popularity of the internet and the World Wide
Web has become a key to attract more consumers and businesses to engage the benefits of
Electronic Commerce (E-commerce). This E-commerce is sited as any form of business
transaction in which the parties interact electronically rather than by physical exchanges or direct
physical contact (Aldin, Brehmer & Johansson 2011). This has transformed the traditional
commerce and enhanced sales and exchanges of merchandise and information. It is not just
considered as single entity of technology but a combination of technologies where applications,
processes, business strategies are necessary to do business electronically. The availability of
goods and services with the click of a mouse is changing the global setting.

Consideration of the websites design and operations are dependent upon the nature of
business activities and target consumers. According to Burleson (2010), a website must be simple
and focused site to succeed. One that is easy to build, maintenance-free, low cost, trustworthy,
and a powerful traffic-builder and customer-converter. Having the right tool and the right product
alone doesnt ensure the success of the website. To be effective, the website must be design
considerations and capabilities with client objectives and the consumers level of understanding
in the modern technology (Geissler 2011).
It is critical for companies to know how do they attract customers to their website, engage
them to turn into paying customers and also retain them in returning to your website. Online
communications techniques used to achieve goals of brand awareness, familiarity and
favorability and to influence purchase intent by encouraging users of digital media to visit a web
site to engage with the brand or product and ultimately to purchase online or offline through
traditional media channels such as by phone or in-store (Chaffey, 2011).
Local Literature
In the Philippines, e-commerce is mostly being implemented by major retailers and
multinational corporations for bank-to-bank exchange. A number of Business-to-consumer
transactions have emerged through the years such as auctions, online shopping, and online
banking (Lacson, Pasadilla, 2012). This just shows that Filipino business welcome this new
opportunity in selling goods since 16% of the population is using internet. This new marketing
strategy will not only benefit those big companies but also the small businesses who cannot
afford to advertise their products. Just by creating a website in a very affordable cost would make
the business grow in terms of sales and enhance the company image as well.

Philippine firms have yet to fully tap the potentials of e-commerce that will help them to
compete in domestic and global markets. In the process of preparing themselves to conduct ecommerce, these firms will be changing the way they do business. These changes are expected
to have an impact on the welfare of Philippine workers. Most efforts to measure the economic
effects of e-commerceincluding those on workers welfarehave focused on the U.S. and
Europe, who are considered to be the leaders in e-commerce. (Roberto, 2012) In general, it
discuss the changes in the nature of work from the front to back office is likely within the sectors
performing services Employment demand for these industry, they may be focused away from
agents and blue collared workers, toward higher management and executive staff.
As Filipinos entered the 21st century, local e-commerce transaction reached Php 1
billiion. It shows that theres at least one billion transaction sales growth annually. If this trend
continues, figures can reach up to Php 20 billion as more businesses conduct online transactions.
If significant economic growth takes place in the next 10 years, these estimates may even double
or triple (Toral, 2011).
Information and Communication Technology (ICT) has become and will continue to be
an integral part of the day-to-day life of every Filipino across all levels of our society. The
occurrence of communication technology around the world necessitates that government get on a
cohesive and coordinated strategy on how to prepare its citizens to survive, live and thrive in a
digital world. (The Philippine Digital Strategy Transformation 2.0: Digital Empowered Nation
2011) The main objective of the paper is to have a competitive society where everyone has a
reliable, affordable and secure information access in the Philippines.

Foreign
E-commerce has become a standard method of providing distributed information to many
different platforms. It is being implemented by a growing number of companies to be more
completive in corporate world. All companies need to make a step forward towards a new
technology. To be able to compete with the global market, e-commerce was a good answer
(Lanvin and Maggarqul, 2012).
The companys websites seem to have significant influence on sales and corporate image,
and are expected to contribute to overall customer satisfaction (Hossain, 2007). The easiest way
to be reliable to the customer is to maintain an easy and simple image in the companys website,
which created positive web experience to the customer. This can be done by having transparent
interface, rich content, easily accessible information and having a design that facilitates multiple
audiences. This is simply emphasizing the importance of knowing the target visitors as they have
different tastes in terms of color and design as a whole. Also, a good design is not enough to
make your customers stay in the website; it must be informative as well especially on the product
details. As what Efendioglu and Igna stated that companies may have great content, dynamic and
attractive design on their website, but the customer may not be aware of that website because of
wrong

or

inadequate

online

marketing.

(Retrieved

on

Aug.

14

2012

from

https://pure.ltu.se/ws/files/33033408/LTU-EX-2011-32955905.pdf)
Website security also refers to the protection of confidential information of the
consumers. This is one way of gaining the customers trust because customers want to believe
that the information they provide will be protected and used only in appropriate ways
(Mansoorian, 2012). Some of the important details to be protected are Address and Contact

Number which has to keep in private. Passwords must also be encrypted to protect the
consumers account from hackers.
Apart from the content of website and design of the pages, security must also take into
consideration most importantly on the payment transactions. Authentication and payment
systems must provide a high level of security due to the sensitive functions they perform. In
order to achieve a strong authentication method, it is necessary to identify and understand what
needs to be protected, possible attacks, how to protect vulnerable points and a ways to detect
attacks. These methods can also be made more resilient to attacks by incorporating multiple
authentication factors and communication channels. Most importantly, the limitations of the
authentication method used must be clearly understood. (Retrieved on Aug 14, 2012 from
http://publications.lib.chalmers.se /records/fulltext/146815.pdf). This why most E-commerce
prefers payment gateways such as Paypal, PayZa, Google Checkout etc. to ensure a fast and
secure transaction between the client and the company.
Several criteria must also be considered to create a successful e-commerce. Search
Engine Optimization (SEO) is a specialized research-driven process of analyzing and editing
your web site in order to increase the rankings of your site pages for specific search terms in
search engines. By targeting strategic key phrases that appeal to your target audiences, SEO
allows you to be found by global or regional markets of individuals who are seeking precisely
whatever it is that you offer. Whether it is a product, a service, a mission or a message that you
want to promote, search engine optimization provides benefits for just about any type of
organization that wants to reach people. (Jaffray, 2014).

Local
Businesses who engaged into Electronic Commerce (e-Commerce) have been observed to
gain a competitive edge in the field of Marketing in terms of accessibility, convenience and
availability. Since the internet is accessible by people globally, the customers are no longer
limited within the vicinity of the store. Anyone can visit the store anywhere, anytime without
hassle. Just by navigating the store, the customer can choose the products and purchase it without
going to the store directly .E-commerce proves to enhance the way usual business transactions
occur and helps lessen the time and effort consumed by the company and customers as well
(Deanna and Fritz,2011). With these, a good relationship with their consumers will be
established and their objective of increasing their sales will be achieved (Kim and Katherine,
2014).
Through internet, E-commerce offers a simplified approach in business deals and gives a
new option for selling and buying the companys products and at the same time not only selling
and buying of products but also advertising the site. (Roso and Navarro 2011). Since the products
are available in the web, the more chances of gaining exposure to target customers and can
eventually encourage them to purchase an item. Its the most affordable way of advertising
compared to some paid commercials that even small businesses can easily implement.
Since most of the companies employ websites as one of their marketing strategies,
competitors are also spreading. The company must take into considerations the key factors in
order to have a successful online marketing system starting from the target audience, web design,
interface, security in terms of payment and customer information, content and even the smallest
details of a website.

Foreign
Internet users will be unlikely to use the Internet on a routine basis for commerce unless
they have confidence that their communications and data are safe from unauthorized access or
modification. Confidence in the system itself depends on the availability of effective means both
for protecting information systems attached to telecommunications networks and for
authenticating and ensuring confidentiality of electronic information to protect data from
unauthorized use.

It also requires well educated users who understand how to protect their

systems and their data. Unfortunately, as noted in the US Framework document, there is no
single "magic" technology or technique that can ensure either security or reliability. Instead this
requires the use of a range of technologies including encryption, authentication, password
controls and firewalls as well as a trustworthy key and security management infrastructures.
(Patterson, 2011).
The number of small- and medium-size retailers selling online has swelled in the last two
years, from 21 percent to 32 percent, according to a survey by IDC, a consulting firm. Aided by
less expensive and more sophisticated technology are competing with retailers as well as bigger
sites like Amazon. These businesses lack the huge marketing budgets of their bigger peers, of
course, but they are unearthing cheap advertising methods that, in some cases, help them
compete with million-dollar promotions. (Retrieved on August 18, 2012 from http://
www.nytimes.com/ 2007/12 /03/technology/ 03ecom . html?ref= ecommerce). This just proves
that even small businesses can compete with the other companies through web just by providing
an interface that promotes simplicity, security and reliability.

Automated transaction means a transaction conducted or performed, in whole or in part,


by electronic means or electronic records, in which the acts or records of one or both parties are
not reviewed by an individual in the ordinary course in forming a contract, performing under an
existing contract, or fulfilling an obligation required by the transaction (Uniform Electronic
Transactions Act, Section 2, 1999). This Act informs the parties that they have both an obligation
when it comes in transaction especially in terms of electronic transaction.
A contract may be formed by the interaction of an electronic agent and an individual,
acting on the individual's own behalf or for another person, including by an interaction in which
the individual performs actions that the individual is free to refuse to perform and which the
individual knows or has reason to know will cause the electronic agent to complete the
transaction or performance (Uniform Electronic Transactions Act, Section 14, 1999). This article
discuss about when getting into electronic transaction, parties can both agree to the terms and
condition to make the process of transaction much reliable.
Local
Developing a technology for the companies/countries productivity should be the main
concern of the developer. As stated, the state shall give priority to research and development,
invention, innovation, and their utilization; and to science and technology education, training,
and services. It shall support indigenous, appropriate, and self-reliant scientific and technological
capabilities, and their application to the country's productive systems and national life. (Article
XIV Section 10, Science and Technology ,1986)

Innovation of technologies to all potential sources must benefit not only the company but
also the country. According to Article XIV Section 12, Science and Technologys, (1986), The
State shall regulate the transfer and promote the adaptation of technology from all sources for the
national benefit. It shall encourage the widest participation of private groups, local governments,
and community-based organizations in the generation and utilization of skill and expertise.
Just like another law, Online Law should concerns on those businesses which are given to
companies the right to choose the type and level of security methods that suit their needs. To
facilitate domestic and international dealings, transactions, arrangements agreements, contracts
and exchanges and storage of information through the utilization of electronic, optical and
similar medium, mode instrumentality and technology to recognize the authenticity and
reliability of electronic data messages or electronic documents related to such activities and to
promote the universal use of electronic transactions in the government and by the general public
(REPUBLIC ACT NO. 8792 June 14, Electronic Commerce Act, 2000)
Online Marketing helps company reach their target customer thru the use of Internet.
Internet marketing help the company to put up a better communication and improved
relationships between customers and the company. As stated on the Manila Bulletin (2011), The
Internet provides endless opportunities for your businesses to market your company and your
product at the comfort of your homes and offices. Internet marketing may be described and
defined in many ways, depending on how you make use of the Internet to help your business
grow.

Online Marketing can generate much revenue not only in the Company but also the other
country. According to Emmie Manila Bulleting (2012), the company expects its overall business
in the region to grow 100 percent year-on-year and up to infinity in the Philippines, which at
this point, has only 10 percent of its travel market online, as opposed to neighbors like
Singapore, with 35 percent CEO Dan Lynn Explained.
Local Journals
In article Business environment in Philippine. Philippines is a growing country and
people are adapting the social life with technology. Technology is controlling the total business
environment. Customer support is improving every day in the Philippines business. Today 1/3 of
the population is using Internet. Filipinos are already trusting online transaction and deals to
purchase online every day. Internet banking is growing significantly. ATM card provider is online
transaction ready since few years.
In article Internet Marketing in the Philippines posted Dec. 07, 2007 retrieve from November
28, 2012 at articlesbase.com
Internet marketing, also referred to as online marketing or E-marketing, is the marketing
of products or services over the internet. Because of the internet, many unique benefits on
marketing, has been added such as low cost in distributing information and media to a global
audience. Internet marketing ties together creative and technical aspects of the internet, including
design, development, advertising and sales.

In the article about Advantages of starting online store retrieve from Oct. 21, 2012 at
pinoybisnes.com
Consumers can easily shop from any place in the world and through many items and
categories without leaving their house. It also allows consumer to compare between a numbers
of varieties in any aspect they want. Customer has the freedom to read reviews of other
customers if the product is suited to their taste. They can also easily search for those hard to find
gadgets, products or items. Furthermore, the Internet is available round the clock and year, so the
consumer is welcomed whenever they want to visit the online store.
In the article about Socio economic benefits of being online retrieve from October 21, 2012 at
articlebase.com
For many businesses, the internet has become a springboard to phenomenal success in
terms of profit. Traditional commerce may be headed to its twilight years as more and more
people are beginning to embrace the enticing allure of online shopping for goods and services.
Almost all trade transactions have online features which enables clients and consumers to satisfy
their needs without leaving the comfort of their homes.
In the article about What are the advantages of online transaction? posted on Feb. 27, 2011
retrieve from October 21, 2012 by Dexter Panganiban at techathand.net
One of us the most important tools in buying online is the credit card. Although there are
other third party site that could process payment it still end up on using credit card on adding
funds to those sites. He also include advantages of online transaction like; you dont have to
fall in line in paying; you dont have to exert an effort in getting the product you want; it saves
times on purchasing you can do other things without living your work place.

Synthesis
Based on the information gathered by the researchers, company who engages into online
marketing are more likely to be more competitive in the business field. The company will have a
good image, thus attracting more customers. According to the related literature and studies
collected, e-commerce also promotes convenience to both consumers and company. Yet, to have
a successful online marketing, there are several criteria to be considered first before developing
website. These are the target visitors, the web design, security, maintainability, reliability,
handiness, quality and ease of use.
The researchers aim is not just build a website but a customer-converter online marketing
by providing adequate details of the products, user-friendly interface, secured payment
transaction and easy-to-maintain environment. The proposed system will not just build to
advertise all over the web but to provide good services to the target visitors. These considerations
will help the company in gaining a good image and eventually attracting more customers to buy
their items.

CHAPTER 3
OPERATIONAL FRAMEWORK
This chapter deals with the utilization of research method, population sampling,
description of respondents, description of instruments used in the collection of data, validation of
the instruments, how the data were collected and how data were treated and organized.
Research Design
The method of research employed in the study is descriptive-research. Among the other
methods of the study the researchers found out that the method mentioned was the most
appropriate.
On the basis of the objectives of the study, the researchers utilized descriptive method to
answer the questions concerning the current status of the subject of the study. It helps to portray
the probable conditions of a particular situation and assists the researcher in knowing how to
accomplish the desired purposes in the shortest available time.
Sources of Data
The data gathered were primary and secondary in nature. The primary data were sourced
from face to face or personal communications and results gathered from survey questionnaires.
Secondary data were used to supplement the primary data that will be becoming from journals,
books, magazines and information from the internet.

Procedures
The researchers utilized the probability sampling techniques in the chosen respondents of
the research. For the probability sampling technique, the population is categorized based on sex,
age, program, and year level. The study will cover the assessment of internet advertising of
online shopping sites to CBE students.
The researchers prepared the draft of the questionnaire with the guidance of our adviser.
The advisers and statisticians comments and suggestions were incorporated in the
questionnaire, and a final draft was prepared.
Questionnaires were distributed randomly to CBE students for two days and retrieval of
the instrument was supplemented by unstructured interview with the respondents to validate
some information.
The subject of this study was the students of College of Business

and

Economics

in

Jose Rizal University Mandaluyong City namely Accountancy, Accounting Technology,


Entrepreneurship, Financial Management Accounting, Human Resources Development
Management, Logistics and Supply Chain Management, and Marketing Management. The
respondents were both male and female. Since the population is large, the researchers used a
technique in order to determine a sample from its population.

To estimate the sample sizes from the total population of the CBE students in Technological
Institute of the Philippines, the Slovins Formula was used:

n=

N
1+ N e 2

Where:
n = number of samples
N = total population
e = margin of error

Computation:
n=

354
1+[ ( 354 ) ( 0.052 ) ]

n=

354
1+[( 354 )( 0.0025 ) ]

n=

354
1+[37.5]

n=

354
1.885

n=187

Thus, by using the formula the appropriate sample size is 187 at 5% margin of error.
The stratified random sampling was used by the researchers to draw the sample size of
187 respondents in CBE-JRU out of 354 students. From 187 sample size, a proportional
allocation was taken to represent the sample size of each programs. Table 1 shows the
proportionate number of respondents according to the respective programs. The procedure were

as follows: first, determine the sample size using Slovins Formula, divide the population of the
stratums to the total number of population and multiply to the sample size.
Table 3.1
Distribution of Respondents by Program in CBE-TIP-QC
and its sample size

CBE PROGRAM
Accountancy
Accounting
Technology
Entrepreneurship
Human Resources
Development
Management
Logistics
Management
Financial
Management
Accounting
Marketing
Management
Total

Number of
Students

PERCENTAGE

SAMPLE

24

6.78

15

13

3.67

10

0.28

23

6.50

12

27

7.63

18

93

26.27

54

155

43.79

78

354

100

187

Research Instruments Used in the Study


In a research study, results would never be realized without the use of data gathering
instrument(s)
Survey Questionnaire: This is very essential tool in data gathering to seek important
facts about the study. This was self constructed by the researchers, reviewed by the adviser and
consulted to statistician. The questionnaire consisted of the following parts:

Unstructured Interview: is an interview without any set format but in which the
interview may have some key questions formulated in advance. The researchers will resort to
unstructured interview just in case the respondents will need additional instructions in the
accomplishment of the questionnaire or to better understand the factors affecting the respondents
or their perception about the questionnaires given to them which will be helpful for further
understanding of the study.
Likert Scale: is a method of ascribing quantitative value to qualitative data to make it
amenable to statistical analysis. A numerical value is assigned to each potential choice and a
mean figure for all responses is computed at the end of the evaluation or survey.
Part I: Respondents Profile
Part II: Perceived Level of Assessment
The questionnaire used the Likert scale to describe and interpret perceptions of
respondents in terms of assessment.
Statistical Treatment of Data
The statistical tools used and employed in the study were important to analyzed and
interpret the data collected. The following statistical tools were:
Frequency/Percentage
This tool will be used to determine the profile of the respondents.
The formula is:
% = (n/N) x 100

Where:
% = percentage
n = observed frequency or number of respondents
N = total number of subjects/respondents
To be able to interpret the individual evaluation of the respondents of the study the following
scales was used:
Mean
This tool used to determine the level of agreement of the respondents with regards of the
assessment of internet advertising of online shopping sites.

x =

x
n

Where:
x

= mean

n = total number of respondents


Table 3.2
Rating Scales
Scale Value
5

Range of Weighted Mean


4.51 5.00

Verbal Interpretation
Strongly Agree

3.51 4.50

Agree

3
2
1

2.51 3.50
1.51 2.50
1.00 1.50

Somewhat Agree
Disagree
Strongly Disagree