ACLAS

THE DISCOVERY OFONLINE

PURCHASE MOTIVATIONS

Marketing Research
Report
Motivational Factors of Consumers in Online Purchasing

CONCEPCION, ALDOUS JOSEPH

DIZON,CARL
IBARRA,AUDREY LY-AN
ORPIA, LOVELY JOY
ORPILLA,SENTILLY
 TABLE OF CONTENTS

PRELIMINARIES PAGE

List of Tables a

List of Figures b

List of Appendices c

Executive Summary i

INTRODUCTION 1

PROBLEM STATEMENT 2

RESEARCH OBJECTIVES 2

REVIEW OF RELATED LITERATURE 3

FRAMEWORK OF THE STUDY 7

RESEARCH METHODS 8

Research Locale 8

Research Design 8

Population Sampling or Respondents of the Study 8

Data Gathering Procedure 9

Research Instrument 9

Statistical Treatment of the Data 9

LIMITATIONS 10

ANALYSIS AND INTERPRETATION 10

CONCLUSIONS AND RECOMMENDATIONS 21

APPENDICES 23

REFERENCES 27
 i

Executive Summary

Technology is developing and Internet becomes one of choices for people to interact

with other,communicate with each other and can also make purchase. One of the famous online

contents is online shopping, this kind of channel distribution of products and services became

trend and takes over almost any kind of markets and businesses. The business sector take

advantage in the blooming era of technology and modernization especially the widening scope of

online stores, hence this study focus to understand the factors that influence the behaviour of

consumers that affect the decision making when they are shopping online. The Internet is being

developed rapidly since last two decades, and with relevant digital economy that is driven by

information technology also being developed worldwide. After a long term development of

Internet, which rapidly increased web users and highly speed Internet connection, and some new

technology also have been developed and used for web developing, those lead to firms can

promote and enhance images of product and services through web site.

The study examines demographic variables (gender, age, location, employment status,

and monthly income) and factors influencing online purchasing variables (perceived ease of use,

perceived time efficiency perceived security). A total of 56 usable responses were obtained using

an online, wherein almost 60.7 percent are females and 23 percent of the responses were male.

Moreover, the respondents age ranges from 18-24 are more likely engage in online purchasing

and 53.6 percent of them are full-time students thereof financial capacity in online purchasing

does not affect their decision making.

The study was also design to check what are the factors influencing consumers in online

shopping. After analyzing the answers provided by the respondents we have found out that on
 ii

time delivery, product's low- cost efficiency of time when shopping online impacted the

purchasing power of consumers, hence they are more engage to make online purchase based on

the perceived benefits they received. The study also showed that by the improvement of online

shopping features, consumers were slowly feel confident to shop without the worries of

confidentiality protections.
 1

INTRODUCTION

With the evolving modernization and technology advancement across countries and

regions, online shopping create a larger scope for marketing and selling a product or service.

People are mostly centered into carving success and going into market hassle their busy life.

Technology has already transformed online business transactions into an infinite marketplace

where conducting business has become more convenient and efficient for both vendors and

vendees. Consumers can shop from any place and need not physically visit the shops / outlets for

shopping purposes. Therefore, even if customer is staying in remote area, he / she can easily

shop through internet. However, here consumers can visit any number of sites to reach at final

choice. Hence, online shopping provides unlimited choices to the consumers in nut shell. The

customer can shop any day of the year on any time of the day. This also helps in consumers’ time

and energy saving. More over due to unlimited choice and less excess time, consumers can easily

search for the desired things and can easily compare the products/items.

Here in the Philippines, Digital 2020 April revealed that 64% of Filipino Internet Users

are spending more time on social media, with 23% indicating an increased activity in their online

shopping activity. In line with this, consumers resort more to online shopping amid pandemic

restrictions, causing the entrepreneurs to embrace digital phenomenon for online shopping.
 2

PROBLEM STATEMENT

In some area of central Luzon, however, most of the people are using online shopping to

purchase products. Yet, some are reluctant to buy via internet. Since, the consumer are

experiencing problems, this paper addresses the different factors that affects the behaviour of

consumers in purchasing online.

Previous studies shows that online shopping has been a growing craze in the Philippines

in the past few years. A study conducted as early as 2015 found that 9 out of 10 Filipinos

preferred online shopping. The market has rapidly grown since then. According to

Eshopworld.com, there are at least 37.7 million e-commerce users in the country in 2018 from

the 30.2 million estimated in 2016. The number is expected to rise to 53.8 million by 2022.

RESEARCH OBJECTIVES

This research aims to determine the factors that affects the behaviour of consumers in

purchasing online. Specifically, it aims to know the following questions:

1. Determine the demographic of online purchasers.

2. Determine the online purchasers’ behaviour in online purchasing by:

a.) Identifying how many times do they purchase online.

b.) Identifying the most used platforms do they usually use in purchasing online.
 3

REVIEW OF RELATED LITERATURE

Consumer Buying Behaviour

Consumer buying behaviour selection, purchase and consumption of goods and services

for the satisfaction of their wants (Ramya & Ali, 2016).

According to Engel, Blackwell and Mansar, consumer behaviour is the actions and the

decision processes of people who purchase goods and services for personal consumption.

Based on the previous studies, many factors are affecting and influences consumers to

purchase online and some of these factors are Financial and Product Risk, Perceived Economic

Benefit, Perceived Merchandise, Perceived Payment Benefits, Consumers Positive Attitude,

Price, Convenience, Affordability, Gratification.

Factors of Online Consumers in Purchasing Online

Financial and Product Risk

Financial risk is always the number one concern of individuals who are shopping online.

Financial risk is defined as the perception that a certain amount of money could be lost while

purchasing or making a product work properly from an online purchase. Certain age groups are

more concerned with their security and privacy of their bank account information. Millennials

are more likely to be less concerned than older generations who behave more sceptical in making

online purchases. Furthermore, the potential to have your personal financial information

disclosed from a transaction online is a very real concern. Shoppers are experiencing perceived
 4

risks for the potential loss they may experience while shopping online. The bonus of shopping in

a traditional brick and mortar store is being able to have the product in front of the customer.

This gives the opportunity to manage the expectations that a customer has when they are

purchasing a product. When an e-commerce business gives accurate descriptions of products and

the ability to zoom in on the product pictures to give the client an accurate expectation of the

product. Due to the limited information that is sometimes presented to consumers they lose the

inability to evaluate the quality of the product (Reile, 2017). Reducing the product risk and

financial risk will boost up the positive attitude into positive effect on online shopping. Online

shoppers have to use their credit / debit card to purchase online and they fear of security of

transaction online. As it is not possible to check the product physically, it may be a problem to

return/exchange, and it keeps them away from online shopping. This is in line with the previous

studies that have documented that financial risk and non-delivery risk (Javadi et al 2012).

Perceived Economic Benefit, Perceived Merchandise, Perceived Payment Benefits

The results suggest that Perceived of economic benefits (PEB), Perceived of merchandise

(PM), and Perceived payment benefits (PPB) have significant direct effects on consumer’s

behaviour adoption of online shopping. In Vietnam, the means to promote online shopping is to

increase the ability to recognize the benefits of trading products on the Internet, addition to that

the usefulness of online payment. Note minimize risks when buying and selling transactions on

internet. The fear of risk taking when dealing on the internet on the second aspect is the product /

service and the transaction (Tan et al 2014).

 5

Consumers Positive Attitude

Consumers with positive attitude prefer online purchase to traditional stores and prefer to

purchase if there is a discount or deal online. The “look” of online retailer web sites is appealing

to them and they spread positive information by word of mouth/mouse to other people. Their

positive attitude is seen as they consider Internet to be their first choice when in need of any

product or service. But this is not encouraging involvement in online shopping. Even though they

have positive attitude towards online shopping this is eclipsed by the product risk and financial

risk (Rajyalakshmi N.2015)

Price

Another important factor that has significant positive influence on online shopping

behaviour is price. The rapid growth of online coupon sites suggests that consumers in India are

looking for deals and this highlights the need for online retailers to adopt effective marketing and

pricing strategies for their goods (Singh 2011). When buying online, additional costs such as

shipping charges and waiting time for delivery will influence online shopping behaviour. Price is

considered to save money and price comparison. Low prices online resulted in savings will

definitely encourage online shopping. When these needs are satisfied, consumers prefer to

purchase. (Rajyalakshmi N.2015)

Convenience, Affordability, Gratification

Variety, value for money and delivery were important attributes for online shoppers. In-

store shoppers looked for social interaction and personalized attention. Convenience,
 6

affordability and gratification were unique online consequences, while nostalgia and loyalty

benefits were specific to in-store hedonic purchases. Self-confidence, availability of wider

choices and in-store shopping experience were the values sought for hedonic products. Control

of shopping experience was the desired value for utilitarian purchases irrespective of channels

(Haridasan and Fernando, 2018).

Platforms in Online Purchasing

In the Philippines, it has a young, tech-savvy population (the average age is 24.3 years)

that’s hungry for products and services. To purchase online, there are platforms that consumers

can use. iPrice’s Map of eCommerce shows that the top online shopping sites in the country are

dominated by foreign online marketplaces that are open to cross-border sellers. As of Q1 2019,

these are Lazada, Shopee, Zalora, Argomall, and eBay, all of which manage transactions

between shoppers and third-party sellers. (https://tribune.net.ph/index.php/2019/11/29/who-is-

the-filipino-online-shopper/)
 7

FRAMEWORK OF THE STUDY

Conceptual Framework

Factors that influences

consumers behaviour

Consumer Buying
Demographics of the Consumers
Behaviour

Platform Used by the

Consumers

Figure 1. Paradigm of the Conceptual Framework

In this study, the researchers determined the factors of the consumers to determine how

they respond in purchasing online in terms of the financial and product risk, their attitude, price,

conveniency, affordability, and gratification. The researchers also determine the demographics

of respondents such as age, gender, location, employment status and monthly income to know

the age segment and dominant sex who more purchases online, and the buying capability by

knowing the income bracket where they belong.

Furthermore, knowing the consumers mostly used platforms in online shopping will help

how to determine their buying behaviour in terms how the platforms are working.
 8

RESEARCH METHODS

Research Locale

The researchers focused on the factors influencing consumer behaviours in online

purchasing residing in Aurora, Nueva Ecija and Tarlac. Fifty-six (56) respondents in total were

obtained using convenience sampling.

Research Design

This study used a descriptive marketing research design that relies on a structured yes-no

set of questions. This also allows the researchers to identify, describe and understand how and

what factors influence the consumers’ behaviour in purchasing online.

Between quantitative and qualitative method, quantitative method will be used on this

research. Due to the limited time of conducting this research, we prefer to use quantitative

research as it can be faster as compare to qualitative as it is possible to forecast the time schedule,

whereas qualitative can be relatively long in duration.

Population Sampling/Respondents of the Study

The research sampling used in determining the respondents of the study is Convenience

Sampling. Convenience Sampling is defined as a method adopted by researchers where they

collect market research data from a conveniently available pool of respondents.

(https://www.questionpro.com/blog/convenience-sampling/)
 9

Data Gathering Procedures

The researchers used an online tool to collect data using Google Form to create online

survey questionnaire. An online data collection tool was used because of the convenience, speed

and the cost advantage of it. After finalizing the instrument used to gather data, the researchers

spread the link of the Google Form to their target respondents through online messaging. The

target respondents are mainly those who experienced purchasing online. After the data has been

tallied, it will also be analyzed and interpreted according to the method used by the researchers.

Research Data Instrument

In conducting this market research study, an online tool - google form was used as a

survey questionnaire which was composed of two sets of questionnaire. The first set of questions

pertains to the factors that influenced the consumers behaviours namely Financial Risk,

Consumer Attitude, Convenience, Affordability, Times they purchase online, and the Platforms

in Online Purchasing. The second set of questions pertains to the demographics of the

respondents namely age, gender, location, employment status, and monthly income.

Statistical Treatment of Data

The data were analyzed using descriptive statistics. Descriptive statistics help to describe

and understand the features of the specific data set by giving short summaries about the sample

and measures of the data. This was also used in analyzing and interpreting the data gathered

through an online questionnaire tool.

 10

LIMITATIONS

This study focused on factors influencing online shopping behaviour of customers such

as financial and product risk, consumer attitude, convenience, affordability. In addition, due to

the pandemic, while conducting the study, respondents were only limited to 50 respondents from

Aurora, Nueva Ecija, and Tarlac.

ANALYSIS AND INTERPRETATION

QUESTIONS

Financial Risk Yes No Maybe/Sometimes

Frequencyff

Does product's quality

equals the price of the
32 8 16
product when purchasing
online?

Are you comfortable

36 10 10
buying online?

Does product's quality

equals the price of the
23 19 14
product when purchasing
online?

Are you confident that

your payment
information is kept 27 16 13
secure when buying
products online?

Table 1. Frequency Distribution of Consumer Behaviour in terms of Financial Risk

 11

QUESTIONS

Yes No Maybe/Sometimes

Customer Attitude Frequency

Are you satisfied buying

38 1 17
products online

Do you recommend
purchasing online to 41 2 13
your friends/relatives?

Do you like to continue

purchasing product 45 3 8
online?

Table 2. Frequency Distribution of Consumer Behaviour in terms of Customer Attitude

QUESTIONS

Yes No Maybe/Sometimes

Convenience Frequency

Do you receive on-

time delivery when 22 7 27
purchasing online?

Do you find online

purchasing time 47 4 5
saving?

Table 3. Frequency Distribution of Consumer Behaviour in terms of Convenience

 12

QUESTIONS

Yes No Maybe/Sometimes

Affordability Frequency

Do you find online

purchasing cost 37 4 15
efficient?

Does online
purchasing provide 33 2 21
low-cost product?

Table 4. Frequency Distribution of Consumer Behaviour in terms of Affordability

Age Frequency
Age 18-24 year-old 45
Age 25-34 year-old 6
Age 35-45 year-old 4

Table 5. Frequency Distribution of Consumers in terms of Age

Gender Frequency
Male 33
Female 23

Table 6. Frequency Distribution of Consumers in terms of Gender

 13

Location Frequency

Aurora 27

Nueva Ecija 11

Tarlac 18

Table 7. Frequency Distribution of Consumers in terms of Location

Employment Status Frequency

Full time employed 7

Full time student 30

Not employed 7

Part-time employed 2

Working student 9

Table 8. Frequency Distribution of Consumers in terms of Employment Status

 14
Monthly Income Frequency
1,000 1
3,000 1
4,000 1
5,000-10,000 14
11,000-15,000 1
16,000-20,000 1
21,000-25,000 4
26,000-30,000 4
31,000-35,000 1
others 27

Table 9. Frequency Distribution of Consumers in terms of Monthly Income

Perceived Risk

Figure 2. Graphical representation of responses about financial and product perceived risk of

online purchasing.

There are 56.68 percent of the total respondents were confident to share personal information

and expectations on product's quality equal the value. Trustworthiness of E-commerce web site

is very relying on the how much privacy security can be provided (Singh and Sirdeshmukh,

2000). The result revoked the claim of Tan et al 2014 that the fear of risk taking when dealing
 15

on the internet on the second aspect is the product / service and the transactions was one of the

factors influencing the online behavior of consumers. A present research shows that online trust

is lower level than the face-to-face interactions in the physical store (Cassell and Bickmore,

2000), and the result from Cheung and Lee (2006) shows that trustworthiness of Internet

merchant (perceived integrity, perceived competence, and perceived security control) and

external environment (third-party recognition and legal framework) have considerable impact on

consumer trust in Internet shopping. The past studies showed that online shopping have high

perceived risk influencing the purchasing power of consumers but with the increase of database

protection legal fields, consumers slowly becoming confident in making transaction online.

Customers Attitude

Figure 3. Graphical representation of attitude of consumers toward online purchasing.

There are 79. 09 percent from the total responses who find online purchasing satisfying and

will enage to recommend online shopping to his/her friends and relative. This was relatively

similar with the previous study of (Kumay, 2012) that social stimuli include the influence of

family and other peer and reference groups. The influence of such stimuli is internalised by the
 16

consumer before they affect the decision process. The word of mouth was powerful influence, it

moved individual to make decision-making.

Convenience

Figure 4. Graphical representation of responses about the conveniency in online

shopping for the consumers.

There are 48. 2 percent of the total respondents who sometimes receive on-time delivery,

the result was supported by the study of (Javadi et al, 2012) , that the factors negatively

associated with online shopping are financial risks and non-delivery risk. On the other hand aside

from the non delivery on time negative factor, there are 68.49 percent of the total respondent find

online purchasing time saving, cost efficient and low-cost.

 17

Figure 5. Graphical Representation of the Frequency of the Consumers in purchasing

online.

Most of the respondents purchase online monthly with 41.10%, the least is purchasing

online weekly with 7.10%. The others are purchasing online when they have extra money and

when they buy only when they need it.

Figure 6. Graphical Presentation of the Most Used Platforms of the Consumers

 18

The data shows that the most used platform of the consumers in purchasing online

is Shopee with 71.40%,, next in Shopee is Lazada witth 23.20% while least is Zalora with

2%. Shopee and Facebook is the most used platform of one of the respondents, however,

in the other platforms, there are no respondents who are using the said platforms.

Demographics

Figure 7. Graphical representation of Consumers in terms of Gender

The data shows that female is purchasing more online with a percentage of 60.70%. This

means that females constitute the majority of the respondents in the study, and the males who

participated in this study is the minority as they represent a small number.

Figure 8. Graphical representation of consumers in terms of age

 19

The figure shows that the majority of the respondents are aged between 18-24 years old.

This age group represents 82.10% of the total of 56 respondents, while the age group of 25-35

years old represents 10.70%, and There is a clear trend that the number of respondents falls as

the age of the respondents increases, with 7.10% of the respondents representing the age group

of 36-45 years old.

Figure 9. Graphical Representation of Consumers in terms of Location

The figure shows that Aurora that the majority of the respondents are from Aurora which

represents 48.20%, while the least is Nueva Ecija which represents 19.60% of the respondents. It

means that consumers from Aurora responds more than the consumers from the other provinces.
 20

Figure 10. Graphical Representation of Consumers in terms of Employment Status

Figure 11. Graphical Representation of Consumers in terms of Monthly Income

The attributes of respondents were also collected, the respondents from Aurora which

provide most of the data were inclined to purchase on monthly or twice a month depending on

the preferred time they want. Whether similar situation applies to frequent purchasers and

occasional purchasers is also to be tested, However it debunked the claim of (Kumay 2012 that

for the demographic part, they tried to show that online purchasers are better educated and with
 21

higher income than non-purchasers. There are 53.6 percent of the total responses who are

currently studying and the 12.5 percent of full time employee have an income of 5,000 to 10,000

which falls under the bracket of low income earners.

CONCLUSIONS AND RECOMMENDATIONS

In this section, we present the conclusions and recommendations, based on the findings

on the report.

CONCLUSIONS

The positive attitude of consumers in online purchasing computed the highest responses

from this study, There are 79.09 percent from the total responses who find online purchasing

satisfying and will engage to recommend online shopping to his/her friends and relative. This

shows that consumers perceived positive engagement on online stores that they happened to

make free promotion on the store they like by giving reference to their social peers and relatives.

However, the result was opposite on the recent literature review of Rajyalakshmi (2015) that

even though they have positive attitude towards online shopping this is eclipsed by the product

risk and financial risk. The study showed that consumers were confident to share personal and

payment information with the web stores. Moreover, the hindrance factor that influence the

consumers behavior was the non-delivery of product on-time although these result collides with

the location of the respondents because mostly they reside in rural areas (Aurora, Nueva Ecija

and Tarlac are part of rural places in the Philippines). Lastly, financial capacity does not
 22

influence the online purchasing behavior of consumers, relatively 53.6 percent of the total

responses are full-time students meaning they do not have the means of financial resources and

simply relying on their allowances another thing was that 12.5 percent of the full time employee

respondents have an income of 5,000 to 10,000 which falls under the bracket of low income

earners.

RECOMMENDATIONS

For future researchers:

 Explore more factors to provide more data in influencing consumer behaviour.

 Allot more time on analysing and collecting data to provide more accurate data.
 23

APPENDICES

Survey Questionnaire

Direction: Choose answers according to your own preferences, put check on the space provided

that corresponds your anwers.

Financial Risk

1. Does product's quality equals the price of the product when purchasing online?

___Yes___No___ Maybe

2. Are you comfortable buying online?

___Yes___No___ Maybe

3. Are you confident that your personal information is kept confidential when buying products

online?

___Yes___No___ Maybe

4. Are you confident that your payment information is kept secure when buying products online?

___Yes___No___ Maybe
 24

Customers Attitude

1. Are you satisfied buying products online?

___Yes___No___ Maybe

2. Do you recommend purchasing online to your friends/relatives?

___Yes___No___ Maybe

3.Do you like to continue purchasing product online?

___Yes___No___ Maybe

Convenience

1. Do you received on- time delivery when purchasing online?

___Yes___No___ Sometimes

2. Do you find online purchasing time saving?

___Yes___No___Maybe

Affordability

1. Do you find online purchasing cost efficient?

___Yes___No___ Maybe
 25

2. Does online purchasing provide low-cost product?

___Yes___No___ Maybe

Demographics

1. Age

___18-24 _____25-34 ____35-45

2. Gender

____ Male _____ Female

3. Location

_____Aurora ______Nueva Ecija _____Tarlac

4. Employment Status

______ Full-time Student _____ Working Student _______ Full-time Employed

_______Part-time Employed _____Not Employed

5. Monthly Income

_____ 5,000-10,000 ______ 11,000-15,000 _____ 16,000-20,000 _____21,000-25,000 _____

26,000-30,000 _____31,000-35,000 ____ 35,000- above

6. Online Shopping Platforms

 26

____Lazada _____ Shoppe _____Ebay ____Facebook ____Zalora ______ Instagram

_____ Carousel ____ Shein _____Other

7. How many times you purchase in an online store?

_____ Everyday _____Weekly _____ Monthly _______ Twice a Month ______ Quarterly

______ Once a year _____ Twice a year _____ Other

 27

REFERENCES

Bray, J. (2013): Consumer Behaviour Theory: Approaches and Models

Kumar, Vinay & Dange, Ujwala. (2012). A Study of Factors Affecting Online Buying Behavior:

A Conceptual Model. SSRN Electronic Journal. 10.2139/ssrn.2285350.

Manglinong, D. (2018, November 7). Why online shopping is booming in the Philippines.

Interaksyon PhilStar. https://interaksyon.philstar.com/trends-

spotlights/2018/11/07/137579/why-online-shopping-is-booming-in-the-philippines/

Ngo Tan Vu Khanh et al (2014): Factors Affecting the Online Shopping Behavior: An Empirical

Investigation in Vietnam.

Rajyalakshmi, Nittala. (2015). Factors Influencing Online Shopping Behavior of Urban

Consumers in India. International Journal of Online Marketing. 5. 38-50.

10.4018/IJOM.2015010103.

Who is the filipino shopper. (2019, November 29). Daily Tribune.

https://tribune.net.ph/index.php/2019/11/29/who-is-the-filipino-online-shopper/

Yi Jin Lima, Abdullah Osmanb, Shahrul Nizam Salahuddinc*, Abdul Rahim Romled, Safizal

Abdullahe (2016). Factors Influencing Online Shopping Behavior: The Mediating Role of

Purchase Intention. Retrieved from www.sciencedirect.com

 28

CONVENIENCE SAMPLING: DEFINITION, APPLICATIONS, ADVANTAGES, METHOD,

AND EXAMPLES. (n.d.). QuestionPro. Retrieved December 15, 2020, from

https://www.questionpro.com/blog/convenience-sampling/