The Impacts of Implemented COVID Protocols to

Social Commerce E-Retailers of Santa Rosa,

Laguna

Group Members:

Balmes, Christine Nathalie M.

Bonita, Bea Aiziel C.

Dy, Abegail A.

Enciso, Zyra C.

Novesteras, Lenard O.

Ochigue, Ma. Edelisa A.

 CHAPTER 1: THE PROBLEM AND ITS SETTING

INTRODUCTION

The COVID-19 pandemic has brought risks and uncertainties in people’s daily

lives. Not only it has affected the health of millions of people but it also had a negative

impact to the global state of economies. To mitigate the number of cases, the

government had to implement non-health-related interventions to control the spread of

the disease. Measures such as lockdowns and mandatory closure of businesses and

schools have been effected (Ullah and Khan, 2020). This has caused losses to various

sectors, and brought the risk of not being able to reopen again due to extended

lockdowns. Moreover, workers and consumers experienced accessibility problems

because of the limited availability of public transportation and city-to-city travel

restrictions (Suman, Agarwal and Bolia, 2020). As an effect, business revenues and

personal income has significantly decreased. In the Philippines, due to these restrictions

that brought employee layoffs, unemployed individuals had a threefold increase with 2.3

million from April 2019 to 7.2 million on April 2020 with an equivalent unemployment rate

of 17.6% (Philippine Statistics Authority, 2020). Additionally, the National Disaster Risk

Reduction and Management Council had imposed a curfew and liquor ban in the

country, which may had affected sales of businesses with physical stores and those that

sell alcoholic beverages. Overall, the economy of the Philippines suffered a deep

recession in 2020 that caused the growth rate of gross domestic product (GDP) to

decrease to 9.5% (Philippine Statistics Authority, 2020).

iPriceGroup(2020), a Malaysia-based firm that examined the shopping behavior

of Southeast Asianshas determined that among the Southeast Asian countries, the

Philippines had the highest growth in the usage of online shopping applications with an
increase of 53% and an increase of 57% in online spending. It has been identified that

the implemented COVID-19 protocols have encouraged consumers to purchase online.

Moreover, another factor that has affected their behavior to shift to online shopping is

that it provides a large variety of goods which can reach other geographical areas as

well (Dinesh and MuniRaju, 2021). Some customers have also stated that they avoided

going to physical stores and switched to online markets due to the fear of being infected

with the virus (Sharma and Jhamb, 2020). Due to the behavior of people who has

switched to online shopping, people can initially assume that it has affected the

revenues of online retailing platforms and also of the online retailers themselves.

Some studies have discussed how the COVID-19 affected e-commerce. It is

derived that e-commerce companies are still operating and have not been forced to

close down their business. Most e-commerce firms have experienced an increase in

their sales, other firms have been impacted in other areas of their business, and the rest

are not affected at all. Some experienced disruption in the production of goods due to

problems with suppliers in which factories have been shut down (ÖvenandHicintuka,

2020) ordue to the paralysation of the shipping of supplies because of the travel ban

which included air and water shipments (Kim &Jeoung, 2020). Moreover, huge e-

commerce companies such as Jumia, Alibaba and Amazon also had difficulties in

meeting the customers’ demands for essentials and other services (Kim andJeoung,

2020). This implicates that COVID-19 has brought both advantages and disadvantages

to e-commerce firms.

According to Lin, Li and Wang (2017), social commerce is referred to as “any

commercial activities facilitated by or conducted through the broad social media and

Web 2.0 tools in consumers’ online shopping process or business’ interactions with their
customers”. It utilizes social media platforms in creating a local marketplace to be used

in the buying and selling of products. With the use of technologies, buyers can directly

engage with sellers without having to go into a physical store. According to a journalist

named Reynaldo Lugtu Jr. (2020), in his interview with Filipino online sellers in

Facebook Marketplace; these sellers had experienced a 50% to more than 100%

increase in sales during the pandemic.

The aforementioned studies have discussed the impact of the COVID-19

pandemic to e-commerce in general; however social commerce e-retailers are still not

studied in detail. While regarding to the interview of Lugtu, it stated an impact of the

pandemic to social commerce e-retailers’ sales but a formal and in-depth research of the

impacts of the implemented COVID-19 protocols and their responses to those effects

are yet to be conducted. With these research gaps, this study will focus on the social

commerce e-retailers based at Santa Rosa Laguna. This will investigate the various

protocols implemented in the chosen city, and how did it affected the businesses of

these sellers, both positively and otherwise. Lastly, the researchers will be able to

determine how these sellers utilize the benefits they have obtained how they manage

the risks and the obstacles they have encountered.

To fulfill the study, this research will be conducted using the qualitative research

method. The remainder of this study will be organized as follows. The rest of the chapter

will state the problem, frameworks, and limitations. The next chapter will mainly review

literatures relevant to the study. Afterwards, the methodology will be presented and

collected data from in-depth interviews will be analyzed and interpreted. Finally, the

conclusion and recommendations will be presented by the researchers. This research

aims to be used as a guide to other social commerce e-retailers, for them to be aware of

the certain situations and that they may obtain knowledge on how to deal with such
events. This research can also be a part of the significant literatures pertaining to the

COVID-19 pandemic and may be used for future reference in case a similar situation

happens in the future.

STATEMENT OF THE PROBLEM

The study aims to know the impact of implemented Covid-19 protocols to social

commerce e-retailers in the city of Santa Rosa, Laguna. Specifically, it sought answers

to questions that follow:

1. What are the COVID protocols that were implemented on various communities of

Santa Rosa, Laguna?

2. Do said protocols impact the social commerce e-retailers of Santa Rosa,

Laguna?

3. What are these impacts?

4. What impacts become advantageous to the social commerce e-retailers of Santa

Rosa, Laguna?

5. What impacts become disadvantageous social commerce e-retailers of Santa

Rosa, Laguna?

6. How did the social commerce e-retailers of Santa Rosa, Laguna maximize the

benefits of advantageous changes?

7. How did the social commerce e-retailers of Santa Rosa, Laguna manage the

disadvantageous changes?

THESIS ARGUMENT
 COVID-19 is not only a global pandemic and a public health crisis; it has also

severely affected the global economy and different business industries due to protocols'

enforcement. Hence, this study will aim to recognize and enumerate the impacts of the

implemented COVID-19 protocols specifically to the Social commerce E-retailers of

Sta.Rosa, Laguna.

THEORETICAL FRAMEWORK

E-commerce

Gupta (2014) defined e-commerce or electronic commerce as a wide range of

online business activities for products and services. The term also pertains to any form

of business transaction in which the parties interact electronically rather than by physical

exchanges or direct physical contact. Gupta asserted that although popular, the

aforesaid definition of e-commerce is not comprehensive enough to capture recent

developments in this new and revolutionary business phenomenon. A more complete

definition is “E-commerce is the use of electronic communications and digital information

processing technology in business transactions to create, transform, and redefine

relationships for value creation between or among organizations, and between

organizations and individuals.”

E-tailing

Hargrave (2021) referred electronic retailing or e-tailing as the sale of goods and

services through the Internet. This includes business-to-business (B2B) and business-to-

consumer (B2C) sales of products and services.

Difference of e-commerce and e-tailing

 While e-commerce and e-tailing may seem similar, Dili (2017) suggests that

these two concepts are different from each other. To quote, Dili stated “The key

difference between e-tailing and e-commerce is that e-tailing is the activity of selling of

retail goods on the Internet whereas e commerce is the commercial transactions

conducted by electronic means on the Internet. As such, there exists a relationship

between e-tailing and e-commerce since e-commerce is a broader concept compared to

e tailing; tailing is a subcategory of e commerce.” Furthermore Dili elaborated,

customers use e tailing to directly buy goods or services from a seller over the internet

using a web browser.

Social commerce E-tailing

Lin, Li and Wang (2017), defined social commerce as any commercial activities

facilitated by or conducted through the broad social media and Web 2.0 tools in

consumer’s online shopping process or business’ interactions with their customers.

Business-to-consumer (B2C) is the process of selling products and services

directly between a business and consumers who are the end-users of its products or

services. Online B2C is divided into 5 categories – direct sellers, online intermediaries,

advertising-based B2C, community-based, and fee-based Kenton (2021). It is essential

to note that this study is specifically catered to community-based e-tailing or social

commerce e-tailing as referred to in the study of Lin et al. This includes sites like

Facebook, which builds online communities based on shared interests, help marketers

and advertisers promote their products directly to consumers according to Kenton

(2021).

Choice Criteria
 There is a need for a deeper understanding of consumer behavior and

specifically choice criteria in terms of Technical, Economic, Social and Personal that fit

into the marketing mix in order to know what affects consumer’s choice. According to

May and Sundberg (2013), the following are the factors that may affect consumer choice

in terms of e-tail and retail. The technical criterion is used to look at terms of

convenience, delivery, style/looks, and performance. The technical environment is

important as the choice criteria between retail and e-tail involves differences between

matters of delivery and what method is more convenient for each individual. The

economic criteria can be explained in combination with price, value for money, and

costs. These factors influence what types of decisions consumers will make based on

actual or perceived differences in price and the possibility of items having attached

indirect costs. The social criteria are important as consumers can have certain images

they wish to hold, as well as a certain social belonging. Last is the personal choice

criteria consisting of factors such as risk reduction and morals that consumers use. For

example risk reduction might make the user choose the method they feel safest with.

Covid-19 pandemic poses a threat to the safety of people. In relation with the

above choice criterions, the personal choice criteria in terms of risk reduction may play a

role with regards to the impact of COVID-19 protocols or restrictions to social commerce

e-retailers.

Descriptive Choice Theory

According to the study by Koch, Frommeyer and Schewe (2020), descriptive

choice theory empirically examines how decisions are effectively made in reality.

Generally, these theories suggest that purchase decisions in a complex environment are

affected by a variety of external or psychological. Recent studies on consumer behavior

during the COVID-19 pandemic validate this approach and demonstrate that the

pandemic indeed alters consumers’ decision-making and behavior. Due to government

restrictions and fears of infection, consumers hesitate to purchase goods at stationary

retailers. Another study found a positive relation between the intention to self-isolate and

unusual buying behavior. Furthermore, a survey in the United States before and after the

COVID-19 pandemic revealed that the pandemic has had an impact on purchasing

behaviors; this can be seen through individuals that has significantly increased their

online shopping use.

Uses and Gratification Theory

In a study conducted by Li et al., (2018), Uses and Gratification theory (UGT) is defined

as an influential sociological paradigm that explains which social and psychology needs

motivate consumers to select particular platforms. Furthermore, as per Luo et al., (2011)

advances in Internet technologies have enabled e-commerce platforms to transform

retail and logistics operations that create more economic benefits as reductions of costs

and delays, triggering the roles of UGT in explaining usage motivations. For example,

consumers use e-commerce platforms to interact and purchase products. UGT

essentially helps to examine the role of consumer behavior and motivation in consumers’

online interactions with firms (Huang et al., 2014). Korhan and Ersoy (2018), states that

UGT helps to capture how consumers adopt and utilize e-commerce platforms to satisfy

their purchase needs. Moreover as far as usability and functionality is concerned, UGT

addresses the patterns and motivations of online platform’s application in seeking

information, interacting with contents and communities, and sustaining purchase

decisions for specific situations. For instance, due to the perceived health and safety

benefits of purchasing in e-commerce platforms, the Covid-19 pandemic increased

consumers purchase intention towards e-commerce in contrast to those of traditional

retailers. In light of pandemic fear, UGT helps to explain why there is an increase in

consumer’s engagement towards online platforms to make relevant purchase

considerations.

CONCEPTUAL FRAMEWORK

Figure 1 presents the conceptual framework of the study. It consists of two

variables, Implemented COVID Protocols and its “impact” on the Social Commerce E-

retailers, whether these impacts are advantageous or not.

The first variable, implemented Covid protocols pertains to the specific

community guidelines that were being observed by the city of Santa Rosa, while the

other one the social commerce e-retailers are those who are engaging into the online

retailing of products targeting an online community sites like Facebook, which builds

online communities based on shared interests, help marketers and advertisers promote

their products directly to consumers. The researchers will target to answer whether

these implemented covid protocols will have any changes or impacts to the social
commerce online retailers of Santa Rosa, Laguna. And whether these impacts are

advantage or disadvantage to their business and how the online retailers deal or

manage the impacts of these implemented covid protocols.

SCOPE AND DELIMITATIONS

The study aims to determine mainly the impacts of the COVID protocols to the social

commerce online retailers in Santa Rosa, Laguna. The researchers seek to determine

how the various protocols implemented on the communities of online retailers made

advantageous and disadvantageous changes to the business. Aside from that, the

researchers as well desire to know how these online retailers maximize the benefits of

the advantageous impacts and how they manage the disadvantageous ones.

Approximately, the whole research procedures will be completed for a whole

year. The first three chapters will be bounded on a time frame of six months or one

semester and the rest will be done subsequently on the second half.

The research is conducted through a phenomenological method of qualitative

approach. The researchers will focus on the social commerce retailers of Santa Rosa,

Laguna that were doing their business in an online platform, as the subject of the study.

Furthermore, the same will also be used by the researchers to be the respondents of the

online written interview. Afterwards, they will come up with the assessments and

procedures wherein the information gathered through the conducted interview will be

analyzed and evaluated.

SIGNIFICANCE OF THE STUDY

 The study is designed to determine the impacts of the COVID protocols to the

social commerce online retailers in Santa Rosa, Laguna. Vital results of this study could

be highly significant and beneficial specifically to the following:

1. Social commerce E-retailers – result of this study will serve as a guide for

social commerce e-retailers. This will make them become aware of potential

problems and may learn how to cope with them.

2. Government – this study will provide information that is beneficial to the local

and national Government. This will allow them to comprehend the challenge that

social commerce e retailers confront as a result of the COVID protocols, allowing

them to assess the situation. This can also serve as a reference for them when

considering whether or not to revise the protocols that they would implement.

3. The Researchers – this study will not only widen the knowledge and hone the

critical thinking skills of the researchers; it will also improve their interpersonal

skills, in communicating with their co-researchers and with the respondents in

conducting the survey. The researchers can also have an idea on how they can

cope up with the same problem that will arise in the future if they wish to

establish their own business.

4. The Future Researchers – findings of this research will serve as a reference

material and a guide for future researchers who wish to conduct the same study

or any study related to COVID or other pandemic protocols and its impact to

online businesses. It will provide insights for future researchers as they conduct

their studies. This will also give them instrument in finding more relevant results

in interpretation of data.
DEFINITION OF TERMS

E-commerce

 Electronic commerce is the use of electronic communications and digital

information processing technology in business transactions to create, transform,

and redefine relationships for value creation between or among organizations,

and between organizations and individuals.

Covid Protocols

 Specific community guidelines being observed as a result of the pandemic (Covid-19) in

the city of Santa Rosa

Social commerce

 Any commercial activities facilitated by or conducted through the broad social media and

Web 2.0 tools in consumers’ online shopping process or business’ interactions with their

customers.

Social Commerce E-retailers

 Pertains to those who are engaging into online retailing of products in online

community sites or the broad social media like Facebook market place.