EFFECTS OF ONLINE SHOPPING ON

CUSTOMERS ONLINE BUYING BEHAVIOR

A Thesis

Presented to

MRS.LUCY LISAY

Pasay City East High School

Pasay City

Zoe itchiko mirando

Researcher
 Table of Contents

Chapter I: THE PROBLEM AND ITS BACKGROUND

Rationale 1
Conceptual Framework 3
Statement of the Problem 4
Scope and Delimitation 5
Significance of the Study 5
Definiton of Terms 6

Chapter II: REVIEW OF RELATED LITERATURE AND STUDIES

Conceptual Framework 8
Research literature 15

Chapter III: RESEARCH DESIGN

Research Method Used 23

Locale of the Study 24
Research instrument 24
Data Gathering Procedure 25
Statistical Treatment of Data 26

Chapter IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Table
 1: Demographic Summary of survey participants 29

2: Customer’s preference in buying online 30

3: Calculation of the weighted mean of the factors affecting 31

the customer’s online buying behavior
4: Calculated weighted mean for the effects of Online 32
Shopping to Customers Online Buying Behavior

Chapter V: SUMMARY, RECOMMENDATIONS, AND CONCLUSIONS

Summary of Findings 33
Conclusions 34
Recommendation 34

BIBLIOGRAPHY

Appendices
A (Letter of Permit to Conduct Study) 36
B (Sample Questionnaires) 37
C (Field Work Documentation) 39

Curriculum Vitae 42
 Chapter I

THE PROBLEM AND ITS BACKGROUND

Rationale

The internet is the world’s most popular computer network. It began as

an academic research project in 1969 and became a global commercial network

in the 1990s. Today it is used by more than 2 billion people around the world.

(Timothy B. Lee, 2015)

The invention of internet is one of the biggest technological

advancements of the twentieth century. Today, people have begun using social

media platforms such as Twitter, Facebook, Instagram, Carousel and many

more not only for communicating purposes, entertainment and social

awareness but also for business transactions or e-commerce.

Electronic commerce or e-commerce is where business or commercial

transactions happens, it is the buying and selling of goods/products online

using different websites. It abolishes the barrier of distance because of the easy

transaction worldwide. For our research, we decided to study about the effects

of online shopping in the customers behavior. But what is online shopping?

Online shopping is a form of e-commerce where customers purchases

goods online directly to the seller. Most of the people prefer to buy online

because of a wide range of choices and it is easier because you don’t have to

deal with traffic, falling in line, the heat of the sun etc.
 Online shopping influences consumer behavior and that is what we are

going to find out. Consumer behavior is the action and decision that affects or

influences the purchasing behavior of a customer.

The main purpose of this study is to find out the different effects of

online shopping to the customers online buying behavior and what are the

factors that affects them.

Theoretical Framework

Sajjad Nazir, Arsalan Tayyab, Aziz Sajid, Haroon ur Rashid, Irum Javed’s

research study about how online shopping affects the consumers buying

behavior in Pakistan is the basis of this study. The study ought to identify

what are the different factors that affecting the consumers directly for online

shopping. The purpose of this study is to review the factors felt reservation of

consumers in online shopping.

Through the use of descriptive-survey method of data gathering in a form

of survey questionnaires, the framework of the concept of this study revolves

on, is presented on the diagram below.

 INPUT PROCESS OUTPUT
1. Profile of the
students in terms
of:
 Age
 Sex
 Strand
2. Customer’s Understanding the
preference in buying Analysis of input different factors and
online variables through effects of online
3. Factors that descriptive – shopping to the
affects consumers
survey research customers online
buying behavior
online buying behavior.
4. Effects of online
shopping in the
customer behavior
when it comes to
purchasing
customer when
purchasing online

Figure 1 - Paradigm of the Study

Statement of the Problem

This study is focused on determining the effects of online shopping to the

customers online buying behavior. This research sought to answer the

following questions:

1. The characteristics profile of the students in terms of:

a. Age

b. Sex

c. Strand

2. Do customers prefer buying online products?

3. What are the factors that affects consumers buying behavior online?

4. What are the effects of online shopping in the customer behavior when it

comes to purchasing?

Scope and Delimitation

This study will focus on the effects of online shopping to the customer

online buying behavior and will be conducted at Perez, Blvd. Dagupan City.

The target respondents are the Grade 12 students (STEM, ABM, GAS) at the

University of Luzon. There will be 10 respondents per strand and it will be

randomly selected.
Significance of The Study

This study tends to know the effect of the online shopping on the

customer’s buying behavior. This study also aims to know the different factors

that may affect the customer’s behavior because of the online shopping. This

will help us to enlightened about the crucial effects of online shopping

regarding to the customer’s behavior. The result of this research will be useful

for the following group as follow:

The online buyers. This study will benefit the buyer itself by knowing the

crucial effects of buying online. This study will also serve as a guideline to the

buyer to have some knowledge regarding the bad and good effects of buying

through online sellers.

The online sellers. This study will benefit the sellers through gaining some

knowledge on they become more productive and knowledgeable about the

customers behavior throughout the process of paying.

To the future researchers. This study will benefit the future researchers that

have the same study as this; it could use it as a reference; this will help them

to get more information about the different effects of online shopping regarding

the customer’s behavior and lastly, they can gain more knowledge and ideas

about this study.

Definition of terms

Online Shopping- The act of purchasing products of services over the

internet. It is a type of electronic commerce which allow the customers to

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

Online Customer- a person or party that receives or consumes

products such as goods or services and has the ability to choose between

different products and suppliers.

Online Behavior- The way in which someone conducts oneself or

behaves. It is a range of actions and mannerisms made by individuals in

conjunction with themselves or their environment.

 Chapter II

REVIEW OF RELATED LITERATURE

ABSTRACT

Related literature:

This part of the study contains associated researches about the effects of

online shopping to the customer’s buying behavior that is found in the

internet. It includes ideas, finished thesis and conclusions. This section could

improve our knowledge about the said topic.

According to the authors of the study “How Online Shopping Is Affecting the

Consumers Buying Behavior in Pakistan?” internet has developed in new delivery

channels electronic transactions are increasing rapidly. This need has arisen to

understand how they perceive directly to buy consumers. Most of the people who use

the internet to purchase goods online, but that there are still some reasons for which

consumers are reluctant to buy online.

The researcher’s purpose in conducting such study is to review the factors felt

reservation of consumers in online shopping. The main objective of this research is to

study what are factors affecting the consumers directly for online shopping.

The research was done by distributing 120 questionnaires among students of

different universities and the public in Pakistan. The researchers used frequency

distribution, average and charts analysis to analyze the replies of their respondents.
 For their conclusion and analysis, most of the people prefer to make their

purchases online. And factors such as psychological factors, social factors emotional

factors, and the privacy factors which affect the buyer attitudes of online purchases.
Review of Related Literature
This review consists of books, articles, documents that focus on the same subject matter or other
concepts of the study.

Foreign

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 have
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,
2004). 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 (2005), 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 doesn’t ensure
the success of the website. To be effective, the Website must be designed with the target audience as
foremost consideration. Website designers must balance design considerations and capabilities with
client objectives and the consumer’s level of understanding in the modern technology (Geissler, 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, 2009).
Local

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, 2006). This
just shows that Filipino businesses 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 e-commerce, 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-commerce—including
those on workers’ welfare—have focused on the U.S. and Europe, who are considered to be the leaders
in e-commerce. (Roberto, 2002) 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 there’s 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, 2004).

One indisputable benefit of e-commerce is its ability to reduce transaction costs. For consumers or
buyers, this is most likely to take the form of lower search costs and better information on products and
prices. There could be drastic savings in production and delivery costs of electronic or digital goods as
well. (Lee, 2006)

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.
 Chapter III

RESEARCH DESIGN

This chapter presents the research method used in the study. This part

of the study consists the procedures used by the researcher in collecting and

analyzing the data that will be gathered.

Research Method

In this research, the method used is Descriptive-Survey Research. This

method is also called Normative survey. Descriptive-survey summarizes their

responses with percentages, frequency, counts or more sophisticated statistical

indexes; and then draws inferences about a particular population from the

responses of the sample

Locale of the Study

Site Map of University of Luzon

 The location of the study will be conducted at the BARANGAY 182 PASAY

CITY, The respondents will be randomly selected by my neighbors. The

researchers will use questionnaire to gather the data needed for the study.

Research Instrument

Survey- questionnaire is the instrument will be used in this study. This

instrument consists of series of questions for gathering information. The

advantage of questionnaire is, the results are easy to analyze without a

background in statistics or scientific research and it also allows you to gather

information from a large audience. Survey- questionnaire has some of unique

merits about validity of information and it puts less pressure on the

respondents for immediate response. This research instrument ensures

anonymity to its respondents. The respondents have a greater confidence that

they will not be identified by anybody for giving a view or opinion. In that way

they feel more comfortable and freer to express their view in this method.

Data Gathering Procedures

The research instrument that we used to collect data in this study is

questionnaires. The researcher had spent vigorous time, effort and cooperation

for the developing of the questionnaires so as served to its respondents. They

discussed and explain the significance /importance of the study and

accomplished the questionnaires properly. The survey was related to the

participants perception regarding to the impacts or effects of online shopping to

the consumer’s buying behavior.

The respondents were given 5 minutes to finish the form given to them.

The researchers went from one respondent to another on collecting the

accomplished questionnaires.

With the approval of the research by MRS LUCY LISAY for the validity and

approval of the questionnaires that we developed. Participants were given a

time to respond and accomplished the given questionnaires to prevent rush

respond. In supervising the survey forms, the researchers use the time allotted

for vacant time of student to avoid the destruction of class discussions.

The data that we collected will be tallied, analyzed and interpreted

according to the specific problems set forth.

Statistical Treatment of Data

After gathering the data, the following statistical tools will be used in

interpreting the results of the study.

Frequency Distribution

It is presented in tables or charts that show how many of your evaluation

participants fall into various categories of interest.

Percentage

It simply means “per hundred” and the symbol used to express percentage is

%.

𝑓
𝑃% = 𝑥 100
𝑁

Where: f= Frequency

N= total number of respondents

P= percentage

Weighted Mean

It is a kind of average. Instead of each data point contributing equally to

the final mean. If all the weights are equal the weighted mean equals to the

arithmetic mean.

(3𝑓 + 2𝑓 + 1𝑓)
𝑊𝑀 =
𝑁
Where:

WM= is the weighted mean

3f= number of respondents who responses are very satisfied

2f= number of respondents who responses are least satisfied

3f= number of respondents who responses are not satisfied.

The weighted points of each scale come into by multiplying the

frequency points given for each scale. The total weighted mean may be come

into summing up all the weighted points while in the pooled mean, total

weighted mean is divided by the frequency. The following are the rating skills

applied to interpret the weighted mean:

ADJECTIVAL DESCRIPTION STATISTICAL LIMITS

Always Affected 2.34- 3.0

Often Affected 1.68-2.33

Seldom Affected 1.0-1.67

 Chapter IV:

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter consists of the presentation, analysis and interpretation of

data gathered by the researchers for the evaluation of the Effects of Online

Shopping to the Customer Buying Behavior.

Table 1: Demographic Summary of survey participants

Gender F %

Female 10 50%

Male 10 50%

Total 20 100%

Age F %

17 years old 14 42%

18 years old 16 48%

Total 30 100%
 Table 1 illustrates the survey results, 42% of female and 48% of male

respondents participated in the online shopping survey. At the same time as

42% of the respondents in the survey is 17 years old and 48% of the

participants are 18 years old. And lastly, the researchers equally selected the

number of students who will participate the survey per strand.

Table 2: Customer’s preference in buying online

LEVEL OF INFLUENCE
DESCRIPTIVE
WEIGHTED EQUIVALENT
Always Often Seldom MEAN
Preference of
customer in 9 44 5 1.93 Often Affected
buying online

Table 2 illustrates that the selected neighbors prefer buying online often

with a weighted mean of 1.93.

Table 3: Calculation of the weighted mean of the factors affecting the

customer’s online buying behavior

LEVEL OF INFLUENCE
DESCRIPTIVE
Factor WEIGHTED EQUIVALENT
3 2 1 MEAN

On Time of Delivery 33 34 2 2.3 Often Affected

Good Quality of Product 39 30 2 2.37 Always Affected

Low Price of Product 36 32 2 2.33 Often Affected

 Label of Product 15 42 4 2.03 Often Affected

Popularity of Product 27 40 1 2.27 Often Affected

Trust in the Website 18 38 5 2.03 Often Affected

Security from the Website 21 44 1 2.2 Often Affected

Good Online Advertising 18 28 5 2.03 Often Affected

Table 3 shows the different factors that affects the behavior of the

customers in buying online. Good quality of product has the highest weighted

mean which is 2.37 and this indicates that the good quality of product factor

always affects the customers online buying behavior. And the remaining 7

factors that has a range of 1.68-2.33 indicates that the factors often affect the

customers online buying behavior.

Table 4: Calculated weighted mean for the effects of Online Shopping to

Customers Online Buying Behavior

LEVEL OF INFLUENCE
DESCRIPTIVE
WEIGHTED EQUIVALENT
Always Often Seldom MEAN
Effects of Online
Shopping to the 15 46 2 2.1 Often Affected
customers
buying behavior
 Table 4 shows the weighted mean of the effects of online shopping to

customers online buying behavior which is 2.1. This result indicates that the

respondents are often affected or they will purchase online products often.
 Chapter V

SUMMARY, CONCLUSION AND RECOMMENDATION

This chapter shows the summary of significant findings, conclusion and

recommendation as the result of the finding revealed by the study:

Summary of Findings

All the respondents are at age 17-18 years old, most of them are male

and prefer buying online often with the percentage of 76.67%, 16.67% seldom

prefer online shopping, and 6.67% of the respondents always prefer to buy

online

As the researchers analyzed the results from the survey, before a

customer purchase online, there are multiple factors affecting them.

For the factors affecting the customers buying behavior, the good quality

of product factor has the highest weighted mean which is 2.37, indicating that

the online behavior of the customer is always affected by that factor.

Based from the results in the factors affecting the customers online

buying behavior, the factors that has the least weighted mean are the label of

the product, trust in the website and good online advertising which means it

has lowest influence in the customers purchasing behavior.

For the effects of online shopping to the customers buying behavior, the

weighted mean is 2.1, that means most of the respondents will still purchase

online products often.

Conclusion
 The researchers therefore conclude that this study help to

understand the effect of online shopping to customers online buying

behavior. Most of the online shoppers prefer buying online rather than

actual store to lessen the time and inconvenience. Online shopping is a

new experience and has greatly impacted the life of consumers in its

short time of existence. Online shopping has made consumers more

effective and efficient on their shopping behavior. Technology has made

significant progress over the years to provide consumers a better online

shopping experience. With the rapid growth of products and brands

people have speculated that online shopping will overtake in-store

shopping. Based on the information that the researcher gathered most of

the online costumers seems to focus on the good quality of products, low

price, on time of delivery and popularity of the product rather than the

label of the products, trusted shopping websites and good advertising.

Recommendation

The results from table 2 shows that the customers prefer to buy online more

often rather than going on a conventional store. This indicates that the

students, the respondents of this research do purchase online occasionally.

Moreover, further research is required because the study is delimited to the

students only.

As for the results from table 3, since the good quality of the product is

always affecting the customers buying behavior, seller should make sure that
the product they produce is worth of the price their customers pay. Label of the

product, trust in the website, and good online advertising is the least factor

that affects the customer. But even though it is the lowest among the different

factors that affects the buyer, they should be smart in picking the website, the

product and critique the advertisement very well.

 APPENDIX A
LETTER OF PERMIT TO CONDUCT STUDY

October 17, 2018

MRS.EVELYN ALEGRE MAMADOD
OIC,ENGLISH DEPARTMENT
Pasay City East High School

Dear Mrs,Mamadod

The student of PASAY CITY EAST HIGH SCHOOL strand are currently
conducting a study entitled “The Effects of Online Shopping to Customer’s
Online Buying Behavior”.

In this regard, may I ask your approval to allow me to conduct survey to

some selected persons to our community BRGY 182 PASAY CITY

We assure that the data we will gather will remain confidential and to be
used on research purposes only. Your approval on this request is greatly
appreciated.

Thank you very much and God Bless!

Respectfully yours,
ZOE ITCHIKO MIRANDO
Researcher

Noted by: Approved by:

MRS.LUCY LISAY EVELYN ALEGRE MAMADOD
Research Adviser OIC,EGLISH DEPARTMENT
 APPENDIX B
SAMPLE QUESTIONNAIRES

“Effects of Online Shopping to the Customer’s Online Buying Behavior”

Name (Optional): ____________________________________ Age: __________

Strand and Section: _________________ Sex: __________

Read the following questions carefully and check the corresponding box of your
answer.

3- Always
2- Often
1- Seldom

1. Preference in buying online

3 2 1

Preference

2. The different factors affecting consumer’s online buying behavior are

stated below. Check the box whether the factors stated are always, often,
seldom effective to the customer’s buying behavior.
 FACTORS 3 2 1

On Time of Delivery

Good Quality of Product

Low Price of Product

Label of Product

Popularity of Product

Trust in the website

Security from the website

Good Online Advertising

3. What do you think will be the effect of online shopping to the customer’s
online buying behavior?

3 2 1

Purchasing of
products online
 Appendix C

Curriculum Vitae

PERSONAL INFORMATION

NAME : zoe itchiko b mirando

GENDER : Male

AGE : 15 Years old

BIRTHDAY : November 5,2004

BIRTHPLACE : pasay city

FATHER’S NAME : Jesus Angelo Mirando

MOTHER’S NAME : Gina Mirando

ADDRESS : 172 acacia street Maricaban pasay city

NATIONALITY : FILIPINO

CIVILSTATUS : SINGLE

EMAIL ADDRESS : ITCHIKOMIRANDOGMAIL.COM

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