A Comparative Study of Buying Behavior Patterns of

Generation X and Generation Y: Online Shops and

Physical Stores in Bacolod City

A Research Paper Presented to the

Faculty of Senior High School Department of
Riverside College, Inc.

In Partial Fulfillment
Of the Requirements for
Inquiries, Investigation, and Immersion

Acack, Shekaina Grace

Flores, Mary Fe
Guardiano, Decemae
Layon, Viah
Santillan, Jenny

February 2018
ABSTRACT

The study discussed the difference of Generation X and Generation Y in purchasing

items. The goal is to show the buying behavior patterns of the two generations through
online shops and physical stores. This has been done through surveying participants
living in Bacolod City. The research in consumer behavior lays on research to compare
the existing and new emerging patterns of the consumers. The study provides a
summary of existing literature to buying behavior patterns of consumers. Upon
completion of the study, the researchers found out the buying preference of Generation
X and Generation Y.
ACKNOWLEDGEMENT

we would like to thank God, for the blessing that he gave to us, and that is to finish our
research paper successfully. we would like to thank our Research Teacher Miss. Lex
Adizon of Riverside College Inc. that helps us to finish our research paper and for giving
us the opportunity to learn and for gaining more knowledge and for guiding us
throughout this research study. miss lex thought us on how to correct our wrong in
doing our research paper. we are thankful for her patience to teach us on our research
paper eventhough she has a lot of responsibilities to manage. we are also thankful for
her kindness. we are also thankful for the persons who help us to finish our research
paper by answering our surveys. we are also thankful to miss jairah and her friends who
validates our research questions. we are also thankful for our family who supports us on
doing our research paper, and also for the teachers that guides us for doing our
research paper. we are also thankful for each one of us in group b1 for helping one
another and for having a teamwork in doing the research paper. we the Group B1 are
thankful to God and for all
List of Tables
List of Figures
 Table of Contents

Page
Abstract
Acknowledgement
List of Tables
List of Figures

Introduction
Background of the Study
Statement of the Problem
Theoretical Framework
Conceptual Framework
Significance of the Study
Scope and Limitations
Definition of Terms
Literature Review

Methods
Research Design
Research Participants
Research Instrument
Data Collection Procedures
Data Analysis

Results and Discussion

Conclusion

Introduction
Background of the Study
The study is about comparing the buying behavior patterns of Generation X and
Generation Y in purchasing items through physical stores or online shops. The
researchers chose this topic because of the changes happening in terms of the buying
patterns of the adults, youth of today’s generation and other consumers. Also, the
researchers chose this topic because the changes in buying patterns of the customer
can cause a business competition between online shops and physical stores. This will
give knowledge to the business owners what medium, online or traditional, should they
use in reaching their customers through knowing the different buying behavior of the
different generations.
Balakrishman (2015) stated that the online shop appears to be more profitable
and successful than the physical stores, according to Sheridan of CNBC; people go
directly to e- commerce or online shopping and spend more money online once they
became the prime customer. The report of the online shop makes the bricks- and-
mortar or simply known as physical stores as non- profitable business and been
rejected by the customer these days causing the customer to shift their way of retailing.
The competition between the online shops and physical stores is not only the factor for
the customer to shift their buying patterns. Lack of new trends for physical stores is one
of the reasons why customers would choose to spend their money online than spending
in physical stores. Also, the customer would look for even best prices which can be
found through online shops. Traditional retailers of these days covers 20% of today’s
population while the rest are the fast- fashion like retailers. Still, Sheridan stated that the
online shops are still on their early days of profitability and still have something to prove
through the next days. The competition between online store and physical shops can be
triggered by the customer, because of the customers the competition between the two
stores has the possibility to rise up. Through continuously changing of buying patterns,
traditions, and preferences of the customer it can make the competition between the
online store and physical store rise. At the end, everything still depends on the
customer.
Statement of the Problem
This study aimed to determine the significant difference of buying preferences of
Generation X and Generation Y. Specifically, it aimed to answer the following questions:
1. What is the online shopping behavior of Generation X and Generation Y
respondents?
2. What mode of shopping (physical/traditional or online) is preferred by Generation
X and Generation Y respondents?
3. Is there a significant difference between the frequency of online shopping of
Generation X and Generation Y respondents? Is there a significant difference
between the frequency of traditional of Generation X and Generation Y?

Theoretical Framework
Identifying the preferences of the customer in terms of buying is important in
putting up a business. The customer is what a business man keeps in order to gain
value. Indeed, as time goes by the buying behavior of the customer changes. Studying
about the buying behavior of the customer is helpful for the company to make their profit
grow even bigger.
Applebaum (n.d.) an author who writes an article about customer’s buying
behavior in retail store. Applebaum explains that each customer has their own buying
behavior pattern. Buying behavior patterns of a customer is a design of the behavior of
the large number of customers. Customer buying behaviors are not permanently fixed.
Customer buying behavior patterns can be grouped in relation to place of purchase,
items purchased, time and frequency of purchase, method of purchase, and response
to sales promotion devices. Customers divide their purchase among number of stores.
They shop in more than one department store and other specialty stores. Customers
have their choices where store to buy which means their patronage and loyalty is not
permanent. Studies of customer behavior with respect to place of purchased shows that
it is useful in selecting store locations, choosing distributor, and also in merchandising.
In items purchased, the customers buy different kind of product thus; the store must
have different products with different variety. In time and frequency purchased, it is
necessarily to relate the seasons, weather and regional differences and frequency in
purchase depends upon the type of commodity involved. In methods of purchase, the
store must assure that the customers will have their product in a right way and must
serve the customers with good quality service. Lastly, the sales promotion devices can
be grouped under displays, pricing, demonstrations and sales talk. In conclusion buying
behavior patterns of the customer’s changes as time goes by. Keeping the customer
depends on how the store will keep their customers and make them satisfy with the
services they gave.

Conceptual Framework
In this part of the study, it shows the relationship of the variables of the study. The
internet an access can affect the buying behavior pattern of the consumers because
some factors.

Convenience Buying
Time Behavior
Satisfaction with Product Pattern

Internet access

Figure 1: Conceptual Framework Flowchart

Significance of the Study

ABM Students. This study can help the ABM students because the study is
inclined with their chosen course, and can have an idea on what kind of business to put
up in the future.
Business Owners. This study can be beneficial to the current business owners
by giving them an idea on what kind of business does the customers of today’s
generation would likely prefer in buying a certain item.
 Future Business Owner. This study aims to help those people who want to put
up a business in the near future in giving them knowledge which of the physical store
and online shops is much preferred by the customer to choose in buying what they need
and want.

Scope and Limitation

The study will focus on which of two businesses, the Online Shop and Physical
Stores, does the customer chooses to buy with. The study will contain questions about
how often do they shop either on physical store or online shop, what type of items do
they buy, and what medium do they prefer in buying an item. The researchers will use
survey questionnaires in gathering the data accurate to each other. The study will last
for five months. The participants of the study are the customers who buy through online
shops of physical store. The researchers will convey with the issues in continuously
rising of the business competition between the physical stores and online shops. Also,
the study will cover the issue about the changes of buying behavior of the young adults
specifically, Generation X and Generation Y.

Definition of Terms
The following terms shall be used in the study may help the researchers to define
meaning, to provide a clear direction, and to contextualize the meaning of such terms.
Each term is conceptually and operationally defined.

Survey- Survey is a method of gathering information from a sample of people,

traditionally with the intention of generalizing the results to a larger population
(Vannette, 2015). In the study, survey is gathering information from individuals by
answering questions or series of questions

Generation X- Generation X are those born roughly between 1963-1980 (now aged
early-30s to mid-40s.) often labeled the "slacker" generation (Holroyd, 2011). In the
study, Generation X is those adults’ ages between 41 years- 52 years.
Generation Y- Generation Y are those who born between 1981 and 1994. (Holroyd,
2011). In the study, Generation Y ages 23- 40 years.

Physical store- Physical Store refers to businesses that have physical (rather than
virtual or online) presences - in other words, stores (built of physical material such as
bricks and mortar) that you can drive to and enter physically to see, touch, and
purchase merchandise (Rouse, 2005). In the study, physical Store is an existing
building where products and services are offered to the customers.

Online Shop- Online Shop refers to the purchase and sale of goods and/or services via
electronic channels such as the internet (Andreas Rivera, 2017). In the study, online
Shop is a business through internet.

Review of Related Literature

In this chapter, the researchers will be presenting articles about how this study is
conveyed. Moreover, this chapter tells the buying behavior patterns of Generation X and
Generation Y.

Generation Y (1977-1994)
Generation Y (or the millennial) is one of the first generations to know technology
and the internet from a young age. They consider modern technologies as essential for
their life. Also, they use it in a daily basis. These people very often belong among
innovators or early adopters according to the Innovation Adaption Life Cycle Theory
(Mangold & Smith, 2012)
Generation Y is a strong determinant of online purchasing behavior and it
contributes to the highest percentage of online purchasing (Phanapal, Vasha, &
Subramarian, 2015). Generation Y individuals are highly exposed in technology or
impact of technology because of that they prefer buying in online shops in ease and
prefer online shopping rather than the traditional buying behavior.
Generation X (1945-1964)
Generation X still makes purchases based on traditional search and decision making
methods (Heaney, 2007). They want to hear the features of the products as well as an
explanation of why these features are necessary (Himmael, 2008).
Generation X individuals have many needs and have financial that needs to be in
control. They are not born in knowing the use of technology that is why they still
purchase products through traditional buying practices. They are vigilant when it comes
to buying that is why they keep an eye on the products that they’re going to purchase.

Buying Patterns
Generation X and Generation Y differ in their buying behavior that caused the
retailers to make extra efforts for them to reach out the markets. Companies are now
trying to understand the buyers and tried to be more flexible in their field. 21 st century is
now experiencing an inevitable change, the only way the company could achieve
success is to remain competitive. It is important to reach the customers both in
traditional and new ways. It is important to know the needs and wants of the consumers
to know how to work with them appropriately. To be successful in this globally
competitive market, one should not fail in satisfying the customers.
According to AmitSaha (n.d.), people find it more convenient to purchase
products and services over the internet. Online shopping is now prompting substantial
impact upon the retail stores from the customer satisfaction to the availability of
services. The advent of technology is now inevitable. The retailers should face the
competitive world of business.
Flores (2013) stated that online retailers have pushed the traditional bricks-and-
mortar to enter the e-commerce for them to provide customers online storefronts aside
from their physical stores. Adding an online channel has been their option to cope up
with the latest trends and to reach their customers better. Some of the consumers are
now checking the price and information online and buying the products in physical
stores.
Chang (n.d.) stated that the use of internet as a medium of shopping has
empowered the shoppers to get advantages or shopping benefits. He discussed
advantages in terms of convenience and time-saving, powerful research instrument,
lower search costs and better product selection, better price information and lower
prices. Due to this, the internet encourages other stores to compete with them.
Williams and Page (n.d.) discussed that each generation has unique
characteristics that influenced their buying behavior. Many companies are now reaching
out the multi-generational consumers and try to understand these diverse buyers.
This study focuses in the differences of Generation X and Generation Y buying
behavior patterns which has not yet been studied in Bacolod City. This will help other
studies to know the buying preferences, online shops or physical stores, of the multi-
generational consumers.

Research Methodology
 This chapter clearly defines the research methods used to conduct the study.
The researchers explain how the data and information was gathered and analysed.
Explanations for the research design, research instruments, participants of the study,
and the data collection procedures used are given.

Research Design
The research design for this study is Survey-comparative research. The design
of the study is a combination of Survey Research and Quasi-Experimental Research
Design. According to Kowaiczyk (2013) the Survey Research design is a brief interview
of discussions with the respondents with a specific topic. Survey is used to collect the
information. Kowaiczyk (2013) states that Quasi Experimental Research Design
demonstrates the cause and effect and not manipulating the independent variable. The
researchers are going to gather data through Google form. The research questions are
verified by the professionals in the field of our study. The researchers will be able to
compare the difference between the buying behavior patterns of Generation X and
Generation Y.

Respondents of the Study

Based on the study, a quota sampling method is a non-probability sampling
wherein can be defined as method of gathering representative data from a group
(Saunders, Lewis, and Thornhill, 2012) which will be used for our sampling technique in
choosing the respondents. Quota Sampling is much quicker and easier to carry out
because it does not require a sampling frame. It will ensure that the researchers will
have sufficient participants taking part in their study. The researchers are able to
choose their own respondents that suits in the study and it can easily choose the
respondents that are willing to participate. In this study, the respondents may be of any
sexual orientation who either buys in online shops and physical stores and the
researchers will choose the respondents based on the generation they are living. There
are 70 respondent from Generation X and 70 respondents from Generation Y living in
Bacolod City. Through this, the researchers will be able to compare the buying behavior
patterns of Generation X and Generation Y.
Research Instruments
The research instrument that will be used in the study is questionnaire. R.
Paulino, et.al (2004) stated that questionnaire constitute the basis of every survey-
based statistical measurement. It is the most used in conducting a survey. It is also the
instrument to measure numbers of data. It is used to understand the measured data.
The researchers will use questionnaires as an instrument for conducting a survey.
The research instrument carefully made and compiled the necessary
questions to answer the study’s objectives. The instrument consists of five parts with the
corresponding sections
Part 1 contains the shopping behavior of Generation X and Generation Y.
Part 2 contains the mode of shopping preferred by Generation X and
Generation Y
Part 3 is about the significant difference of online shopping and traditional of
Generation X and Generation Y.

Data Collection Procedures

The following procedures were observed in gathering the data.
Pre- Data Collection
1. The researchers will select their respondents through the use of quota
sampling, where the researchers will find 70 respondents from Generation X and 70
respondents from Generation Y to the questions in the survey questionnaire.
2. The researcher will make their research questions and use the survey
questionnaire as the instrument in conducting their study.
Data Collection
1. The questionnaires will be distributed in the use of Google Form. The
respondents will be given enough time for them to answer the following questions in the
questionnaire.
Post- Data Collection
1. The researcher will prepare their answered research instrument for the
data analysis and interpreting the results.
Statistical Tools
Responses from the questionnaire where statistically analysed with the data
requirements based on the research problems. The researchers will use the Student’s
T-test statistical tool for data analysis. The researchers will also use the frequency
counts, mean, and the average.
The T-Test will help the researchers to find the significant difference between the
frequency of online shopping of Generation X respondents and Generation Y
respondents.

Results and Discussion

 The study’s objective is to compare the buying preferences of Generation X and
Generation Y. This chapter present the results of the data collected and analyzed to
answer the research questions.

Online Shopping Behavior of Generation X and Generation Y Respondents

The respondents were asked to answer on where is the location of their internet
access. Most of the respondents from Generation X (52%) and Generation Y (68%)
have an internet access at their houses. The least location of internet access of
Generation X is in school (6%), Generation Y is in business establishments (5%). This
implies that most of the respondents have an internet access in their houses.

Figure 1. Location of Internet Access of Generation X and Generation Y

Location of Internet Access

80%

70%

60%

50%

40%

30%

20%

10%

0%
Business Establishment Home Office School

Gen X (N=66) Gen Y (N=65)

 As seen in Figures 2 and 3, most of the respondents from Generation X (61%)
and Generation Y (57%) had shopped online. The other respondents from Generation X
(39%) and Generation Y (43%) do not shop online. This implies that buying items from
online shops is prevalent among the respondents. However, some of the respondents
still prefer to buy items in traditional stores.

Figure 2: Generation X who shops online

Gen X Respondents Who Shop Online

No
39% Yes

61%

Figure 3: Generation Y who shops online

Gen Y Respondents Who Shop Online

No
43% Yes
57%
 The respondents were asked on which items they shop online. As seen in Figure
4, Most of the respondents from Generation X (38%) and Generation Y (47%) bought
clothing online. The least item that Generation X bought online is home ware (7%) and
for Generation Y is gadgets (15%) However, some respondents of Generation X (29%)
answered that they do not buy any items online.

Figure 4. Items bought online by Generation X

Items Bought Online by Gen X Respondents (N=72 Responses)

None

Clothing

Homeware

Gadgets

Accessories

0% 5% 10% 15% 20% 25% 30% 35% 40%

Table 5. Items bought online by Generation Y

 Items Bought Online by Gen Y Respondents (N=94 responses)

Homeware

Gadgets

Clothing

Accessories

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Mode of Shopping Preferred by Respondents

The respondents were asked to answer on which between online shops and
physical stores they prefer more. Generation X (71%) and Generation Y (85%) mostly
answered physical stores is what they prefer of mode of buying. Those respondents
from Generation X (29%) and Generation Y (15%) answered that they prefer online
shops as their mode of buying. This implies that most of the respondents still prefer to
buy items in physical stores.

Table 6. Generation X preference of mode of buying

Preference of Mode of Buying by Gen X Respondents (N=66)

29% Buying from Online Shops

Buying from Physical Stores

71%
Table 7. Generation X preference of mode of buying

Preference of Mode of Buying by Gen Y Respondents (N=66)

15%
Buying from Online Shops
Buying from Physical Stores

85%

The respondents were asked to answer the question indicating the reason
behind choosing physical or online store.
Most of the respondents from Generation X (73%) and Generation Y (83%)
choose physical stores because of the assurance of the quality of the product. Other
respondents from Generation X (27%) and Generation Y (17%) choose online store
because of the ease of access, fast transaction, and having cheaper price than items
from physical stores. This implies that most of the respondents still prefer to buy items
at the physical stores because of the quality satisfaction of the product that it can give to
the buyers.

Table 8. Generation X reason behind for choosing between physical or online store
 Reason for Choosing Physical or Online Store by Gen X
Respondents (N=66)
80%
70%
60%
50%
40%
30%
20%
10%
0%
Online Shop, because of the ease of Physical stores, because I have the
access, fast transaction, and its cheaper assurance on the quality of the product,
than buying from physical stores either I can test it or touch it

Table 9. Generation Y reason behind for choosing between physical or online store
 Reason for Choosing Physical or Online Store by Gen
Y Respondents (N=65)
80%
60%
40%
20%
0%
Online Shop, because of the ease of Physical stores, because I have the
access, fast transaction, and its cheaper assurance on the quality of the product,
than buying from physical stores either I can test it or touch it

Frequency of Traditional and Online Shopping of Generation X and Generation Y

Respondents
The respondents were asked to respond on how often do they shop online,
indicating the agreement of respondents on scale of 1(never) to 5 (daily). Higher mean
scores indicate the level of agreement.
According to Table 1, Generation X (M= 2.47) and Generation Y (M=2.46) buy
online when the need arises. The p-value between the two means of Generation X and
Generation Y is more than 0.05, which means that the null hypothesis is accepted; there
is no significant difference between the frequency of online shopping of Generation X
and Generation Y.

Table 1: Frequency of Online Shopping

Generation of Respondents Mean of Response P Value of One-Tail T-Test
Generation X (N=66) 2.47 0.49
Generation Y (N=65) 2.46 0.49

According to table 2, Generation X (M=3.39) and Generation Y (M=3.76) buy in

traditional stores monthly. The P-value of Generation X and Generation Y is more than
0.05, which means that the null hypothesis is accepted; there is no significant difference
between the frequency of traditional shopping of Generation X and Generation Y.

Table 2: Frequency of Traditional Shopping

Generation of Respondents Mean of Response P Value of One-Tail T-Test
Generation X (N=66) 3.39 0.085
Generation Y (N=65) 3.76 0.085

It is shown that respondents Generation X and Generation Y prefer to buy their

items in traditional stores because there is more assurance of the quality of the product
when it is a physical purchase.

CONCLUSION

Generation Y are the people who are more exposed to the technology. They use it
in their daily basis. Even though Generation X keep an eye on the products that they
want to purchase, some of them still had shopped online. Generation X and Generation
have different means of having an internet access. Due to this, the two generations
have a chance to purchase an item online. Some of them buy clothing, home ware,
gadgets and accessories. This shows that online shopping is prevalent to the
respondents.
Companies are now trying to understand the buyers and being more flexible in their
field. Yet, most the customers from Generation X and Generation Y prefer traditional
stores as their mode of buying. The reason behind this is that they can either touch or
feel the product which give an assurance of its quality.
In terms of the frequency of physical shopping of Generation X and Generation Y,
there is no significant difference as well as in the frequency of traditional shopping of
Generation X and Generation Y. Though the use of internet in purchasing had
empowered the customers, some still make purchases based on traditional search.
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Research Instrument Evaluation Form

Direction: Kindly select your answers and put a check on the following designated area

(checkbox).

Criteria for Evaluation

1. How often do you shop online?
Weekly Twice a week monthly Daily
2. For which items do you shop online?
Clothing Accessories Gadgets
Home ware
3. How often do you buy an item(s) from physical stores?
Weekly Twice a week monthly Daily
4. For which items do you shop from physical stores?
Clothing Accessories Gadgets Home ware
 5. Which do you prefer more, buying from?
Physical Stores Online shop
Directions: Select your reasons in buying an item from the type of business you prefer
I buy from physical stores because you have the assurance about the quality
of the product, either you can test or touch it.
I buy from online shops because of the easy access, and cheaper amount
than buying from physical stores.
Other reasons, please specify:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
________________________

Evaluator’s information
Name of the Evaluator:
Age: Generation X (41 yrs. – 52 yrs.) Millennial (23 yrs. -41 yrs. )
Internet access: Home School Office
Credit card holder: Yes No
Comments and Suggestions:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
________________________