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The Perception of Consumers towards the Use of Social Media as a Primary Venue for
Business Transaction

In partial fulfillment of the requirements in

INQUIRIES, INVESTIGATION AND IMMERSION

Submitted by:

ABM 12 - 09
GROUP 8

Masicampo, Daina

Maypa, Daryl Joshua

Marron, Natalie Claire

Milagrosa, Ivan Khyle

Maristela, Janine
Manalo, John Myter

Submitted to:

Ms. Mylen C. Basco

Completion:

July 2017 – March 2018


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This thesis entitled

“The Perception of Consumers towards the Use of Social Media as a Primary Venue for
Business Transaction”

Prepared and submitted by Daryl Joshua Maypa, Daina Masicampo, Natalie Claire Marron,
Ivan Khyle Milagrosa, Janine Maristela, John Myter Manalo in partial fulfilment of the
requirements of Accountancy, Business Management in Inquiries, Investigation and
Immersion.

___________________________________________
Ms. Mylen C. Basco
ACADEMIC ADVISER

Approved by the committee on Final Defense with a grade of PASSED on February 13,
2018.

___________________________________________
Name of Chair of Panel
CHAIR

________________________________ _______________________________
Name of Panel Member 1 Name of Panel Member 2
MEMBER MEMBER

Accepted in partial fulfilment of the requirements of Accountancy, Business Management in


Inquiries, Investigation and Immersion

________________________________
Mr. Holden Kenneth G. Alcazaren
Research Coordinator, Basic Education Department
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First of all, we would like to express our special thanks of gratitude to our adviser Ms.

Mylen Basco as well as the other teachers who gave us the golden opportunity to do this

wonderful project on our topic “The Perception of Consumers towards The Use of Social

Media as a Primary Venue for Business Transaction”. Which also helped us in doing a lot of

research which is connected in our strand ABM or accountancy and business management

and we came to know about so many new things and we are really thankful to them.

Secondly, we would also like to thank our parents and friends who helped us in finalizing this

project within the limited time period. Lastly, we also would like to thank the participants of

these study especially God who made this all possible.


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ABSTRACT

The research study is intended to help sellers to know what are the insights of the

consumers in buying using social media. The study had different sources of information that

were stated in Review of Related Literature. This included online sources and studies. The

researchers used this information as references to make the research study more valid. The

study used the quantitative type of research that enables the researcher to investigate a larger

group of people and also to show the people's opinion, insights and preference on the usage

of social media as the venue for business transactions. Several hypothesis can only be proven

through the process of conducting a survey through a large scale of people. The respondents

of the research were sampled among the population of the students from the University of

Perpetual Helps System Dalta-Molino Campus. There were total of thirty (30) respondents

who answered our survey questions by simply answering agree and disagree. The researcher

also decided to use the questionnaires that consist of series of questions and other prompts

for the purpose of gathering information from the respondents. After gathering all the

feedback from the respondents, the researchers created a tally of results in a pie graph form

that is interpreted in the data presentation analysis and interpretation. At the end of the study,

the researchers proved that the perception of the consumers towards the use of social media

as a primary venue for business transaction is a very effective in terms of buying and selling

items. It is very efficient and can conserve a lot of time, energy and effort.
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TABLE OF CONTENTS

TITLE PAGE.........................................................................................................................................i
APPROVAL SHEET.............................................................................................................................ii
ACKNOWLEDGEMENT...................................................................................................................iii
ABSTRACT.........................................................................................................................................iv
TABLE OF CONTENTS......................................................................................................................v
LIST OF TABLES................................................................................................................................vi
LIST OF FIGURES.............................................................................................................................vii
DISCLAIMER...................................................................................................................................viii
CHAPTER 1: THE PROBLEM AND REVIEW OF RELATED LITERATURE
Background of the Study....................................................................................................................1-2
Review of Related Literature.............................................................................................................2-8
Theoretical Framework....................................................................................................................8-10
Conceptual Framework..................................................................................................................10-11
Research Questions.............................................................................................................................11
Significance of the Study...............................................................................................................11-12
Scope and Limitation..........................................................................................................................12
Definition of Terms.............................................................................................................................13
CHAPTER 2: METHODOLOGY
Research Design..................................................................................................................................14
Setting.................................................................................................................................................14
Participants..........................................................................................................................................15
Data Collection....................................................................................................................................15
Research Instrument............................................................................................................................15
Data Analysis......................................................................................................................................16
CHAPTER 3: RESULTS AND DISCUSSION...........................................................................17-21
CHAPTER 4: SUMMARY AND CONCLUSIONS AND RECOMMENDATIONS
Conclusion.................................................................................................................................... 22-24
Recommendation.................................................................................................................................24
References..................................................................................................................................... 25-28
Appendices.....................................................................................................................................29-32
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LIST OF TABLES

Table 1.................................................................................................................................................19
Table 2.................................................................................................................................................20
Table 3...........................................................................................................................................20-21
Table 4.................................................................................................................................................21
Table 5.................................................................................................................................................22
Table 6.................................................................................................................................................23
Table 7.................................................................................................................................................24
Table 8.................................................................................................................................................25
Table 9.................................................................................................................................................26
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LIST OF FIGURES

Figure 1...............................................................................................................................................19
Figure 2...............................................................................................................................................20
Figure 3...............................................................................................................................................21
Figure 4...............................................................................................................................................22
Figure 5...............................................................................................................................................23
Figure 6...............................................................................................................................................24
Figure 7...............................................................................................................................................25
Figure 8...............................................................................................................................................26
Figure 9...............................................................................................................................................27
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DISCLAIMER

The statement which is used in this research paper is solely for internal use, for

evaluation and research purposes only. This information shall not be disclosed, duplicated,

used in whole or in part, for any other reason what so ever. This study has been approved and

accepted by the panel of reviewers. It was also made by the product of hard work of the

researchers. Thus, every part of this paper has proper citation and approval from the authors.
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LITERATURE

A. Background of the Study

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. Increasing numbers of people are gravitating towards more intensive

use of the Internet as the accessibility of technology, the availability of information, and the

ability to interact through the Internet increase and evolve. Obvious capabilities of the

Internet include avenues for gathering information, purchasing a product, or rendering a

service. These advances in Internet technology allow for the expansion of shopping options

beyond traditional methods that may be more time consuming. Issues with having to

physically gather information with offline shopping methods are alleviated, and customers

are better able to efficiently use their time. For instance, instead of having to physically visit

different stores to compare prices or rely on circular pamphlets in newspapers, a consumer is

able to search and retrieve needed information through the Internet. The Internet explosion

has opened the doors to a new electronic world. Consumers are now able to use the Internet
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banking, and even shopping. With such advantages, the Internet is

rapidly becoming the main method of communication and of conducting business

conveniently. With a growing number of households turning towards the Internet and the

world of e-commerce to shop, invest, make payments, and do online banking, new

technological advancements will have to come about to make these transactions secure.

However, not all consumers are participating in online transactions as part of the Internet

boom. As more and more businesses continue to establish an online presence, they are

finding that some consumers are still reluctant to shift in that same direction. For various

consumers there are still concerns with security and passing personal data over the Internet.

B. Review of Related Literature

According to Palmer & Koenig-Lewis (2009), research by Forrester has indicated that

audience and attention is shifting to online channels as 52 percent of Europeans are generally

online at home. Around 36 percent of European internet users watch less TV, 28 percent have

reduced their newspaper reading and 17 percent have diminished listening to the radio since

going online.

According to Hanafizadeh & Behboudi (2012), as a result the conventional print and

broadcast media have faced major challenges in recent years, with many newspapers facing

closure and television channels suffering loss in revenue. An important effect of this

phenomena, is the migration of significant amounts of marketing and advertising activities to

online channels such as social networks.


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(2007), social networks have been considered as an important

enabler for facilitating knowledge sharing behavior among organizational members and

create learning opportunities contributes to building competitive advantage.

According to Kent & Taylor (2002), presented that public relations could enhance

dialogue by creating channels for dialogic communication to occur. They specifically

identified online communication as an ideal opportunity for promoting dialogue.

According to Blackshaw & Nazzaro (2004), have beautifully defined social media in the

beginning of the era of social media, as the new source of online information, where the

information itself is – created, initiated, circulated and used by consumers for the purpose of

educating each other about products, brands, services, personalities and issues.

According to Baruah (2012), the way of communication has changed with the evolution

of social media, and every business irrespective of its size has a presence on social media.

This review examines current literature on social media and social media marketing. Internet

has contributed 41.7% per year for the national economy and it will rise even further over the

next 3 years (Get Malaysian Online, 2015). Social media comes in many forms and the eight

most popular are, Blogs, Microblogs, Social Networks, Media-Sharing Sites, Social

Bookmarking and selection Sites, analysis Sites, forum and effective Worlds. Marketing

communication using social media such as Twitter, Facebook, and YouTube has already been

evaluated as business take-off tools for luxury fashion brands. Traditional designer houses

such as Louis Vuitton provide live broadcasting fashion shows on their blogs. Ralph Lauren,
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iPhone applications (Kim & Ko, 2012).

According to Weinberg (2009), social media turning into an influential marketing

channel is news to many companies and organizations. Hence, when social media developed

in accordance with a company’s overall strategic objectives, a smaller firm not only needs the

ability to communicate its message to its target audience, but also the ability to begin to

cultivate meaningful relationship with its consumers. Besides, importance of long-term

coordination of marketing communications in such a way that consistent message is

communicated at all points of contact between the marketers and the consumer (Castronovo

& Huang, 2012). In order to catch consumers’ attention in a cluttered advertising

environment, firms must begin to plan for synergy among various communication and media

outlet. Social media also gives important role for travelling firms.

According to Zheng Xianga (2010), due to the huge amount of information available,

searching has become an increasingly dominant mode in travelers’ use of the Internet. On one

hand, so-called social media Websites, representing various forms of consumer-generated

content (CGC) such as blogs, virtual communities, wikis, social networks, collaborative

tagging, and media files shared on sites like YouTube and Flickr, have gained substantial

popularity in online travelers’ use of the internet (Gretzel et al, 2006).


According to Shahriar Azizi & Masoud Javidani (2010). Measuring e-shopping intention:

An Iranian perspective. The results showed that Iranian users have not confronted any risky

situations while shopping online.


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According to Shergill & Chen (2005). Consumers Attitudes point. To place this text box
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towards Online Shopping In New Zealand. Stated that the research

found one of the major reasons of not shopping online is security issues. And the study

concluded that many online shoppers are less satisfied with website design.

According to Osman, Yin-Fan & Hooi-Choo (2010). Undergraduates and Online

Purchasing Behavior. Analyzed that writers have concluded that mostly students buy books,

cloths, travel bookings and computer hardware’s. Also the website quality and purchase

perception have significant relationship with online shopping.

According to Sami Alsmadi (2002). Consumer Attitudes Towards Online Shopping In

Jordan: Opportunities and Challenges. The Security of online users is important factor that

stops the willingness of online purchasers. And also the study concluded that the higher the

incomer the more attitude towards online shopping.

According to Sarigiannidis & Kesidou (2009). Consumer characteristics and their effect

on accepting online shopping, in context of different product types. The product involvement

positively affects consumers to shop online. And It is concluded that privacy have no effect

over consumers intentions towards online shopping.

C. Theoretical Framework

The theoretical framework that we used in our study is the Five Stage Model that was

initially proposed by Cox et al. (1983) and it is considered to be one of the most common

models of consumer decision making process and it involves five various stages. These

stages are: recognition of need or problem, information search, comparing the alternatives,
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purchase and post-purchase evaluation. This simple model clearly point. To place this text box
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illustrates and explains how the consumers make a purchasing

decision. The first stage is the problem recognition which starts with the perception of need

and moves towards information search where consumer uses internal and external sources to

analyze given information and use that information in the next step of evaluation of

alternatives. While evaluating alternatives one assessing values of the products by giving

weights. After evaluation of alternatives consumers move towards purchase decision where

they may encounter three possibilities, from whom to buy, when to buy and do not buy. Once

they have actually made the purchase now it comes to post purchase behavior, whether they

are satisfied or dissatisfied with the purchase.

D. Conceptual Framework

In our research, we studied about the relationship between consumer characteristics

and attitude towards online shopping in the University of Perpetual Help System Dalta-

Molino Campus located in Bacoor, Cavite.

E. Research Questions
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1.) What are the things that satisfies a consumer in using social point. To place this text box
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media as a venue for business transaction?

2.) What factors influence consumers to shop online?

3.) What are the efficiency of having social media in terms of business?

F. Significance of the Study

This study could help sellers to know the insights of the consumers in using the social

media as a venue for business transaction. It can also identify the advantages and

disadvantages to be gained by a seller or a business. It will show how consumers are

engaging with the social media as their venue for business transactions. And the goal of the

study is to show how big is the factor that social media could give to a seller that will use

social media for selling. Moreover this study will identify how many are the consumers who

prefer using this as a venue for business transactions.

G. Scope and Limitation

This study was conducted to identify the perception of consumers in the University of

Perpetual Help System Dalta-Molino Campus located in Bacoor, Cavite towards the use of

current social media as a primary venue for business transaction. The aspects were looked

into were the effectiveness of social media, the perception of consumers and the satisfaction

rate of it.
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 Consumers - is the one who pays something to consume goods and services

produced. As such, consumers play a vital role in the economic system of a nation.

 Sellers - is an individual or entity that exchanges any type of good or service in return

for payment.

 Perception - the state of being or process of becoming aware of something through

the senses.

 Social Media - websites and applications that enable users to create and share content

or to participate in social networking.

 Business - the practice of making one's living by engaging in commerce.

 Transaction - an instance of buying or selling something; a business deal.

 Venue - the place where something happens, especially an organized event such as a

concert, conference, or sports event.

CHAPTER 2: METHODOLOGY

A. Research Design
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The researchers will use quantitative research design. By point. To place this text box
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using this method researchers will be able to show the people's

opinion, insights and preference on the usage of social media as the venue for business

transactions. This research design is dealing with a numerical data and it will determine the

rate or the standings. To use this method, the researchers will conduct an interview or surveys

for some participants that will be going to cooperate for the research. And the results will be

the basis for the study.

B. Setting

The research will be conducted in our same exact location in the University of

Perpetual Help System Dalta-Molino Campus located in Bacoor, Cavite through online

survey because it is more convenient for the researchers and also an advantage for them

because they know more people who uses social media as a primary venue for business

transactions.

C. Participants

The target participants of our study are those people who use social media for

business transactions. There will be no age and gender requirements. Researchers will make

an online survey where some people will be asked online in order to know their perceptions

about the use of social media as a venue for business transactions.

D. Data Collection
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The researchers will use an online survey for the point. To place this text box
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participants as a method for collecting the data and information that

is needed. The survey questionnaire will consist some series of questions where participants

could answer accurately and by that, we could get the exact answer that we wanted to know.

Moreover, by the end of online survey, researchers will gather all the feedbacks and will use

it as a basis.

E. Research Instrument

The research instrument that we used is online survey questionnaire that has

dichotomous questions. It will become more convenient for the researchers to use this kind of

questionnaire, it will easily evaluate the data that is needed to be gathered. We used

dichotomous questions because we could get answers that is direct to the point.

F. Data Analysis

In our study, we used the measure of central tendency method in getting the average

rate and we also used pie graphs and tables in presenting the data that we gathered. We

noticed that all of the participants are in favor on the use of social media as a primary venue

for business transaction because buying online is faster, time consuming, and easier to find

the item that you want. In short it makes buying and selling items easier. Also the majority of

our respondents answered it is efficient and effective in a way that it consumes less time, also

it can save the consumers' energy. Because of its effect, consumers can communicate

multiple sellers at the same time to ensure that they find the highest quality of product the
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market can offer without consuming much of their time. Consumers point. To place this text box
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prefers this because they can buy without leaving his/her house.

With the help of social media, consumers can look for the product they desire while just lying

on the bed. How? Facebook's buy and sell groups, instagram posts, and etc. The thing that

satisfies the consumers the most is that social media was so efficient and effective that

consumers can't stop using it, especially in business transaction.

CHAPTER 3: RESULTS AND DISCUSSION

As we conducted our online survey in the University of Perpetual Help System Dalta-

Molino Campus we have accumulated n = 30 students bot having the participation of 20

female students and 10 male students.

Demographics
Female 20
Male 10
Total 30

1. The information given about the product on the site is sufficient.


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Scale Frequency point. To place this text box
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Agree 24
Percentage
80%

Disagree 6 20%

Total 30 100%

Out of 30 respondents, 80% of them agreed that the information given about the product

on the site is sufficient while the 20% of the respondents disagreed. So it’s safe to say that the

consumers are well-informed of their desired product on the site.

2. Shopping online through social media saves time.

Scale Frequency Percentage

Agree 28 93%

Disagree 2 7%

Total 30 100%
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Out of 30 respondents, 93% of them agreed that shopping online through social media

saves time while 7% of the respondents disagreed. Social media-based isn’t time consuming,

since 93% agreed that social media-based shopping saves time.

3. Social media persuades consumers to buy/shop online.

Scale Frequency Percentage

Agree 28 93%

Disagree 2 7%

Total 30 100%
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Out of 30 respondents, 93% of them agreed that social media persuades consumers to

buy/shop online while 7% of the respondents disagreed. Social media persuades consumers

in a way that almost all business transactions happen online.

4. Social media gives low value in a product that is a trend in the market.

Scale Frequency Percentage

Agree 18 60%

Disagree 12 40%

Total 30 100%
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Out of 30 respondents, 60% of them agreed that social media give low value in a product

that is a trend in the market while 40% of the respondents disagreed. This time around it’s

pretty balanced, it’s not one sided as the first 3 questions meaning that sometimes social

media really do give low value in a product that is a current trend in the market.

5. Social media is one of the easiest ways on making a business transaction.

Scale Frequency Percentage


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Agree 22

73%

Disagree 8 27%

Total 30 100%

Out of 30 respondents, 73% of them agreed that social media is one of the easiest ways

on making a business transaction while 27% of the respondents disagreed. Social media-

based business transaction is really convenient in a way that it i5s not difficult to interact

between the buyer/consumer and seller.

6. Social media is influential when it comes to buying and selling.

Scale Frequency Percentage

Agree 26 87%

Disagree 4 13%

Total 30 100%
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Out of 30 respondents, 87% of them agreed that social media is influential when it comes

to buying and selling while 13% of the respondents disagreed. Social media is so influential

in business that companies are using social media to promote their product.

7. Social media helps consumers to have a clear conversation with the sellers.

Scale Frequency Percentage

Agree 17 57%

Disagree 13 43%

Total 30 100%
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Out of 30 respondents, 57% of them agreed that social media helps consumers to have a

clear conversation with the sellers while 43% of the respondents disagreed. Since social

media-based transactions is easy, it also means that the two parties involved in the

transactions have a clear conversation and understood each other.

8. Social media can be a great way to advertise a business.

Scale Frequency Percentage

Agree 27 90%

Disagree 3 10%
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100%

Out of 30 respondents, 90% of them agreed that social media can be a great way to

advertise a business while 10% of the respondents disagreed. Since social media is so

influential, businesses also use social media in order for their product to gain popularity and

have the potential to be the new trend in the market.

CHAPTER 4: SUMMARY AND CONCLUSIONS AND RECOMMENDATIONS

So, therefore, we conclude that based on the consumers, social media-based business

transaction, is time-saving, easy, convenient and less-energy consuming. Social media also

gives the necessary product information that makes the consumers well-informed for their

desired product, heavily influences the market, persuades consumers to do online business

transaction, and advertise and promotes the product to boost its popularity. The consumer’s
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perception on online shopping varies from individual to individual point. To place this text box
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and the perception is limited to a certain extent with the availability

of the proper connectivity and the exposure to the online shopping. The study reveals that

mostly the youngsters are attached to the online shopping and hence the elder people don’t

use online shopping much as compared to the younger ones. The study also reveals that the

price of the products have the most influencing factor on online purchase. The study

highlights on the easy navigation and access on the internet with people liking for easy to

access the online shopping and to be more convenient. Transformation in the trends of

shopping is occurring because of the changing lifestyle of the consumers and expansion in

online activity. Understanding the online shoppers enable the online retailers to develop

suitable marketing strategy in order to attract and convert potential customer as an active

customers.

Based on the findings and conclusions presented, the following recommendations

on shopping online are suggested:

 The Reliability of the Website

It’s better to avoid making purchases on a recently created website. If you have any doubt

about the origin of the website, go to the "About Us" section or the imprint of the

website. Also search for the customer reviews about the service or website.

 Contact and Customer Service Department


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Check if it is possible to easily get in touch with Customer point. To place this text box
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Service in a contact email or hotlines. Don't forget to check the

terms and conditions that apply for the return, exchange or refund of a product.

 Shipping

The shipping conditions and delays must be clearly advertised on the product. Make sure

that the shipping address and billing address are indicated.

 The Product

If you need information on the characteristics of the product, visit the manufacturer’s

website to get all the necessary information.

 Compare prices

Some sites promise cheaper prices so do not hesitate to compare with other websites for

you to save money for your other needs.

 The Different Payment Methods

Make sure that the site provides a secure payment system whether it is on a credit card or

cash on delivery.
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anywhere on the page, just drag it.]

Appendices:

References:
Senior High School Department viii 18
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use this space to emphasize a key
Delafrooz, N., Paim L., Khatibi, H., Sidin, S. and Ali. (2009 April). point. To place this text box
anywhere on the page, just drag it.]
Factors affecting students' attitude toward online shopping.

Retrieved from

http://www.academicjournals.org/journal/AJBM/article-full-text-pdf/9C92C4B16304

Hanafizadeh, P., Ravasan, A.Z., Nabavi, A., Merabioun, M. (2012 February). A Literature

Review on the Business Impacts of Social Network Sites. Retrieved from

https://www.researchgate.net/publication/236152792_A_Literature_Review_on_the_Busines

s_Impacts_of_Social_Network_Sites

Khan, M., and Dr. Jan, A. (2015 November). Social Media and Social Media Marketing: A

Literature Review. Vol. 17, Issue: 11. Ver. 1, PP 12-15. Retrieved from

http://www.iosrjournals.org/iosr-jbm/papers/Vol17-issue11/Version-1/C0171111215.pdf

Musa, H., Azmi, F.R., Rahim, N.A., Shibghatulla, A.S., and Othman, N.A. (2016). Analyzing

the Effectiveness of Social Media Marketing. Retrieved from

http://www.futureacademy.org.uk/files/images/upload/ISSC%202016%201.pdf

Shwu-Ing Wu (2003). The relationship between consumer characteristic and attitude toward

online shopping. Marketing Intelligence and Planning, Vol. 21 Issue: 1, Pp 37-44. Retrieved

from

http://ir.lib.ncut.edu.tw/bitstream/987654321/1733/1/%C3%A5%20%C2%B3%C3%A6%C2

%B7%E2%80%98%C3%A9%C2%B6%C2%AF%20J7.pdf

Vinz, S. (2015 October 14). Sample Theoretical Framework of a dissertation. Retrieved from

https://www.scribbr.com/dissertation/sample-theoretical-framework-of-a-dissertation/
Senior High School Department viii 18
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Muhammad Umar Sultan and MD Nasir (2011). Consumers point. To place this text box
anywhere on the page, just drag it.]
Attitude towards Online Shopping. Retrieved from

https://uu.diva-portal.org/smash/get/diva2:420724/FULLTEXT01.pdf

Please take note of the following:


Senior High School Department viii 18
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use this space to emphasize a key
point. To place this text box
anywhere on the page, just drag it.]
Start of chapter 1:

When you start chapter 1, page number will start with 1

After chapter 4, references in APA format first then last is Appendices

Appendices only incudes:

1. Letter to do research (the one you submitted to R&DC and was given back to you)
2. Blank questionnaire
3. Proofs of validation
4. Copy of transcripts (for quali only)

PS: before printing, remove all the notes in red.

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