CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

Rapid changes in technology, products, processes, employee and customer

needs, severe competition, and trends towards globalization, force organizations to do

business in new ways and think of new ideas in order to withstand and be successful.

E-commerce is one of these new trends. It is a form of entrepreneurial activity in

which firms function using the Internet. According to Starr (2003), “This introduction

of technology has been used mostly as a tool to deliver value to the customer as a way

to increase the core competencies.” E-commerce has altered the traditional ways of

business-to-customer (B2C) communication and business-to-business (B2B)

communication and increased information-sharing among its members.

Due to the continuous expansion and mobility of internet the nature of

business has also expanded. Online business is any kind of business activity that

happens over the internet. Running an online business can include buying and selling

online or providing an online service (Anonymous, 2017). It is changing rapidly

through the help of Facebook, Twitter, YouTube, Blogger and many more social

networking sites. Therefore, establishing an online presence for business is

increasingly easy and low cost.

The researchers want to know the factors that affect the purchase of online

products of Senior High School students in St. Joseph Academy of Sariaya, Quezon.

They also want to know the frequently purchased products through online businesses
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and to know if the percentage of students availing online products are enough to

encourage people to patronize online business. To know the relationship between the

factors and the product that they purchase. Lastly, the possible output that can be

derived in the study.

Statement of the Problem

This research, which focuses on the factors that affect the purchase of online

products of senior high school students of St. Joseph Academy of Sariaya, Quezon,

aims to achieve the following specific objectives:

1. What are the factors that affects the purchase of online products of Senior High

School students in St. Joseph Academy of Sariaya, Quezon.

1.1 Quality

1.2 Price

1.3 Demand

1.4 Appearance based on picture

1.5 Advertisement

1.6 Trustworthy

1.7 Convenience

2. What are the frequently purchased products through online business?

3. What is the percentage of the students in St. Joseph Academy of Sariaya, Quezon,

Senior High School Department who avail products through online transactions?
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4. Based on the research, what is the possible output that can be derived in the study?

Conceptual Framework

According to Thomassen (2003), customer satisfaction is “the perception of

the customer as a result of consciously or unconsciously comparing his experiences

with his expectations.” On the other hand, Kotler and Keller (2008), stated that

customer satisfaction is determined by “the degree to which someone is happy or

disappointed with the observed performance of a product in relation to his or her

expectations.” Performance that satisfies expectations creates satisfied customer,

while performance that is below expectations leads to dissatisfied customer.

The Theory of Reasoned Action (TRA) was first developed by Martin

Fishbein in the late 1960s and reviewed and expanded by Fishbein and Icek Azjen in

the decades that followed. TRA is a theory that concentrates on a person's intention to

act a certain way. An intention is a plan or a probability that someone will behave in

certain way in a specific situation — whether or not they actually do so. According to

TRA, a person’s behavior (i.e. online purchase, vote, etc.) is determined by his/her

intention to perform this behavior. Intention is the cognitive depiction of a person’s

willingness to perform a given behavior, and it is considered to be the instant

antecedent of behavior. So, the stronger the intention of an individual to perform a

particular behavior, the greater the most likely the particular behavior will be

performed.

The Unified Theory of Acceptance and Use of Technology Model was

developed and tested in 2003 based on social cognitive theory including a

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combination of eight prominent information technology (IT) acceptance research

models by Viswanath Venkatesh. UTAUT is a technology acceptance model within

“User acceptance of information technology: Toward a unified view”. It aims to

explain user intentions to use an information system and subsequent usage behavior

and was framed with four core factors of intention and usage: 1.) performance

expectancy, 2.) effort expectancy, 3.) social influence, and 4.) facilitating influences.

For each of the four determinants, there are four key moderators within the UTAUT

model that provide the theoretical justification for the hypothesis: gender, age,

voluntariness, and experience.

Conceptual Paradigm

The figure below shows the input-process-output (IPO) method used by the

researchers in this study wherein the input determines the factors that affect the

purchase of online products of senior high school students of St. Joseph Academy of

Sariaya, Quezon. It includes the process of conducting a survey and results to the

output of creation of an online business page.

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INPUT

Determine the factors that affect the purchase of online products of senior

high school students of St. Joseph Academy of Sariaya, Quezon.

PROCESS

Conducting a survey.

OUTPUT

Online business page.

Figure 1. Conceptual Paradigm of the factors that affects the purchase of online
products of Senior High School students in St. Joseph Academy of Sariaya,
Quezon

Scope and Limitation

Internet shopping is one of the types of electronic commerce that has

multiplied rapidly since the middle of 1990s whereas Web technologies have played a
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major role in this decade. Online shopping has become the new type of retail

shopping. This shopping method is still not well known or accepted as in many other

countries, and though the knowledge of online shopping in the Philippines is now

beginning to increase rapidly especially to teenagers.

This study covered the factors that affect the purchase of online products of

Senior High School students in St. Joseph Academy of Sariaya, Quezon. The research

is about the factors of online products such as quality, price, demand, advertisement,

and the appearance of it based on picture. It also covers frequently products

purchased through online business and the percentage of the students who avail

products through online transactions. Lastly, the relationship between the factors and

the product that they purchase and the possible output that can be developed from the

study. However, this study does not cover the perception of the Senior High School

students in St. Joseph Academy of Sariaya, Quezon regarding to the factors that affect

the purchase of online products. The respondents of this study are the Senior High

School students in St. Joseph Academy of Sariaya, Quezon. This research would only

last from July 2017 up to October 2017.

Significance of the Study

This study aims to know the factors that affect the purchase of online products

of senior high school students of St. Joseph Academy of Sariaya Quezon and will

benefit the following people:

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Online shop business industry. This study can help with the development

and the improvement of the business industry online by getting more ideas from the

factors that affect the purchase of online products of the senior high school students.

Businessmen, businesswomen, producers, and online sellers. This research

can provide information to business owners regarding how they can improve their

products that can be produced and sold to the market and help them improve their

online advertising.

Senior high school students. This research will help them be informed in

choosing wisely in buying online products and could also give students ideas on how

to avoid problems from shopping online. This will also give them the knowledge

about the factors that affect them in buying online products.

Future Researchers. This study can be a stepping stone for other researchers

when they want to improve the quality of online shopping experience both for the

consumer and the producer. This research can be their future reference for their

study.

Definition of Terms

For better understanding of this research, the researchers decided to give the

definition of the following terminologies conceptually:

Business usually complex enterprises involving major activities like

purchasing, manufacturing, marketing, advertising, selling, and accounting. (Racelis,

2017)
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Business-to-business (B2B) is the use of the internet for transactions and

communications between organizations. (Ferrell, 2008)

Business-to-consumer (B2C) means delivering products and services directly

to individual consumers through the internet. (Ferrell, 2008)

Electronic Commerce is the process by which the buyer and the marketers

conduct exchange of information, money and merchandise by electronic means

through the internet.” (Pereda et. al, 2015)

Home-Based Business is a business whose main office is in the owner’s

home. (Anonymous, 2017) 

Internet the large system of connected computers around the world which

people use to communicate with each other ( Cambridge Online Dictionary, n.d.)

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