Online Shopping Popularity Effect on Traditional Retail Industry in the

Province of Palawan

Statement of the Problem

The study aims to understand the effect of online shopping popularity to the

traditional retail industry.

Specifically, it aims to answer the following questions.

1. What is the profile of the respondents in terms of:

1.1 Gender

1.2 Age

1.3 Social Class

1.4 Civil Status

2. How may the shoppers/consumers described online shopping in terms of:

2.1 Accessibility

2.2 Convenience

2.3 Better Prices

2.4 Variety

3. How may the shoppers/consumers described traditional shopping or in-

store in terms of:

 3.1 Accessibility

3.2 Convenience

3.3 Better Prices

3.4 Variety

4. Is their any significant effect between the online shopping popularity on

traditional retail industry?

Literatures and Studies

Online Shopping

According to news written by Gregory Karp (2009), online shopping could

be a best friend of a smart consumer, for its feature like easy comparison,

search for discounts and make purchase through clicks.

‘In a statistics exposed in Newsbytes Philippines (2015), six out ten of

Filipinos purchase a service or a product online. There has been an increase in

the result from 2014 which only has 46% in result.

Behavior of internet shoppers towards purchasing goods or services in

the internet is affected by the three main factors: the age, the social status, and

the experience of Internet Shopping. It is more advisable for the e-commerce

retailer to target younger customer especially ages 14-24 because they are the

type of market that are most exposed on the changes in technology.

 Secondly, e-commerce retailers can target those markets coming from

the middle up to the above classes of the society because they are the usual

type of people who have an access to the internet. Lastly, the past experience of

the consumer in purchasing product or services to internet stores is affecting

their behavior on their next transaction on the said type of stores because this

past transaction can give them already a hint on what an e-commerce stores

can give to them. In addition, the researcher also concluded that the gender

and the internet exposure even a significant one cannot affect the internet

shoppers behaviors towards internet shopping (Bigne, Ruiz & Sanz, 2015).

There are different factors affecting the online and in-store shoppers

purchasing decision because of the big differences of both online and in-store

enterprises in terms of the price, place, product and process. Online shoppers

are sensitive enough in the price of the products of a particular e-commerce

store because they are expected to have a much lower price compared to in-

store enterprises; lower price is caused by fewer expenses. Second, online

shoppers are giving intention to the past customers feedback as a reference for

the performance of that particular online store. Lastly is on the place factor,

online shoppers prefer to patronized online store that is accessible to them.

(Liu, Burns, & Hou, 2013).

 Conceptual Framework
Input Process
 Profile  Survey Questionnaire

 Gender  Data Gathering

 Age  Analysis and

 Civil Status Interpretation

 Social Status

 Shoppers/consumers

description towards
Output
online shopping and
Recommendation
traditional/ in-store.
towards Traditional
 Accessibility
Retail Industry or In-
 Convenience
store Development
 Better Prices
and Growth
 Variety

The figure above shows the variables researchers consider to further

explain and enhance the evaluation of the online shopping effect. The input

was divided into three: the profile of respondents, shoppers/consumers

description towards online shopping and traditional store. On the other hand,

researchers also measure the customer experience and customer relationship

for the affective element. In order to gain information within these variables,

researchers will disseminate questionnaires consists of specific questions

under the three elements.

Statistical Analysis

In order to interpret and come up with a reasonable result, the

researchers used statistical treatment to evaluate the gathered data. Since the

objective of this research study is to compare or get the effect of two buying

processes which are online and in-store shopping, statistical treatment that

measures differences was used.

Moreover, the researchers used Microsoft Excel and Statistical Package

for Social Sciences (SPSS) for the treatment of the gathered data.

The first statistical treatment that was used is the Z- test. It is use in the

analysis of two different populations mean which variances are unknown.

The formula for Z-test is:

 On the other hand, ANOVA or Analysis of Variance is a statistical test

used to determine if there is a significant difference among three or more set of

variables or groups.

Two-way ANOVA (Analysis of Variance) measures significant differences

between variables of a certain set of data. It will determine if two different

factors will have an effect in the dependent or measured variable (Chesnutt,

n.d). In this case, it was used to know of there were significant differences

between demographics (age, gender, social status, and civil status) and the

satisfaction considering the three elements (cognitive, affective and

behavioural).

The formula for Two-way ANOVA is:

Proposed Output of the Research

 The consumers- It recommends the customers of both online and instore

shop to be smart enough when choosing the right shopping environment in

buying products that they perceive to have. Because even though this

research concluded that in-store shopping is more satisfying compared to

online shopping, there is always a variance in terms of the experience of one

person to another depending on the environment they belong. So, there is

no assurance that the result of this research is applicable to all locales

 especially that it was only focused on the Province of Palawan and nearby

towns in Palawan. They also recommend to the customers to use the

findings of this research as a guide in choosing for the right or applicable

shopping environment for them but then a again use it as a guide that can

only influence one‘s decision and not a reference for a decision.

 To the aspiring sellers/ entrepreneurs- It recommends strategies and tactics

on which distribution process would be better. The researchers recommend

the entrepreneurs to use social media as an avenue for promotion and

advertisement but never forget that having a physical store is a lot more

satisfying for the customers.

 To the administration/ government- To be open to the changing trend of the

society. May this research be an eye opener to them in the current situation

of the business industry. The researchers recommend them to conduct

business related seminars to encourage potential entrepreneurs to establish

a business. With these, it will also have an impact in the country‘s economy.

 To the online sellers- Cognitively, the features, durability, and appearance

ranked at bottom 3 respectively. Compared to the features and appearance

which ranked as the top 2 in the in-store shopping. Therefore, the

researchers recommend to the businesses engaged online to value the

different aspects a consumer is looking for in purchasing a product. Virtual

shops are intangible and so they must established tangible benefits to the

customers. They should build trust to every consumer and make sure of the

sustainability of the different aspects of their product. On the other hand,

 online shops should still give satisfaction affectively through having strong

relationship to the customer. It is a good foundation to establish trust and

loyalty which can lead the customer to repeat purchase and recommend

also the products they are selling to their folks.

 To the in-store sellers- The researchers highly recommend to the managers

and sellers of in-store shops that they should lower the price of their

products or increase the benefits for the customers to continuously

outperformed online shops through finding new sources of raw materials

that can give them a low product manufacturing cost and formulating

promos that eventually can help them to have a chance in lowering their

product prices.

In addition to the improvement of products, the researchers recommend

to in-store sellers that they must improve their product line because the

variety factor under the cognitive element is the only one factor wherein the

online shops beat the in-store shops. Relevantly, in-store can widen their

product line by finding and encouraging different entrepreneur or suppliers

to supply product to their establishment.

Consequently, the researchers recommend to in-store shops managers

and sellers that they should continuously improve their personnel and

product. They must improve their personnel in terms of: competency,

courtesy, reliability, responsiveness, credibility, and communication. On the

other side, the product of in-store must improve their: features, durability,

and conformance quality. Through those factors on both product and

personnel, the in-store can maintain its high performance and it can also

prevent the possible effects of the threats that online shops can cause to

them.