1

Chapter I

THE PROBLEM AND REVIEW OF RELATED LITERATURE

Introduction

The rapid dissemination of information and communication

technologies (ICT) and particularly the massive adoption of

the Internet in the past decades have boosted the use of e-

commerce as a distribution channel. The major reorganization

in the way is that some products are manufactured, marketed

and purchased both commodity and convenience (Dutch-Brown,

Grzybowski, Romahn, and Verboven, 2017). Base on the mail

survey of upscale US households there are two main and leading

“selling format” strategy in our modern business society,

Online Selling and Direct selling, and the conducted

empirical study finds that they are clearly different from

each other in many terms (Dholakia and Uusitalo, 2000). A

unique characteristic of online shopping environments is that

they allow vendors to create retail interfaces with highly

interactive features. One desirable form of interactivity

from a consumer perspective is the implementation of

sophisticated tools to assist shoppers in their purchase

decisions by customizing the electronic shopping environment

 2
to their individual preferences (Häubl and Trifts 2000).

Online selling is over digital networks now. It involves in

finding the right online marketing mix of strategies that

appeal to your target market and will actually translate into

sales by satisfying the needs and wants of customer (Ward,

2016). On the other hand, according to “Direct Selling

Association”, Direct Selling is a method of marketing and

retailing goods and services directly to the consumers, in

their homes or in any other location even away from permanent

retail premises. It is usually conducted in a face-to-face

manner – either where products are demonstrated to an

individual, or to a group.

To date, numerous studies show the benefits and

advantages of each business strategy but there are no reported

cases that reveal neither the two exhibit more effective ways

in purchasing a product and services. In this aspect, this

study is considered as necessary one. With these means, we,

the researchers are motivated and encouraged to conduct a

research study regarding the effectiveness of Online selling

and Direct selling in purchasing a product and service

 3
Review of Related Literature

This part presents the previous studies and related

literature that support this study. It will offer the

researcher a broader knowledge and more understanding

regarding the variables under investigation.

Respondent’s profile

Respondent’s characteristic especially gender, age, year

level, place of residence and parent(s) monthly income range

and estimate number of hours spent using gadget may influence

the effectiveness of a certain selling format.

People have needs and to meet them, hence they need to

consume goods in order to survive. They shop for food,

clothes, home needs, school needs, etc. From articles of

little value to expensive ones, from platform to online

stores, shopping is every minute affair of people across the

world. And according to Aswegen in her (2015) article, one of

the major factors that influence customer’s in decision-

making is gender. Men and women approach shopping with

different motives, perspective, rationales, and

consideration. It is perceived by most that women usually

 4
spend longer time in shopping compared to men. Men prefer

less time consuming shopping and also they like better to

shop directly, stepping into any kinds of shops, search for

particular product they have in mind, purchases it as quickly

as possible and leaves immediately that may lead to a bit

more expensive cost of bought items. Women, on the other hand,

even online or direct they always search patiently for the

kinds of products in all available brands, compare the

designs, checking for any offers available, bargaining and

end up purchasing the product to the utmost satisfaction. In

an outcome they indulge long time in selecting a product of

their choice (Phrabu, 2015).

Moreover, depending on the age and year level can also

influence customer’s choice of patronizing different selling

formats. Millennia’s tend to shop more on online sites

compared to older and mid aged women. Millennia’s age 21-34

comprise at least half of all respondents who plan to make an

online purchase on every product category. But don’t count

older generations out. They also represent at least 40% share

of online purchasing, as can be expected they are more likely

to buy directly. 60 % of them rely on traditional methods

like purchasing in markets, shopping outlets or malls. Not

 5
being able to touch or feel a product is their biggest

consideration. It was measured in Nielsen’s Global Survey of

E-commerce (2014).

Place of residence has also significant effect on

percentage of customer patronizing Online and Direct selling

format. An urban person usually spends more time on gadgets

and internet compare to those who live in an rural place. In

urban areas, people can easily access technology unlike in

rural areas, some places are poor in signals and internet

connection. But we can’t just conclude that rural people has

no substantial percentage on online buyers. It just happened

that people in cities are more expected to engage at online

shopping and people in rural are more likely to attach on

some product when it was demonstrated by some legit seller,

or when they will be able to try it.

Furthermore, parent(s) monthly income range have also an

impact, buying online requires more money; shipping fees are

almost 10 percent of the product amount. 58% of the

respondents said that shipping fees are the biggest factors

that are stopping them from shopping online, survey results

from Big Commerce Blog, (2016). Teens having parent(s) with

income salary that satisfy more they need to support

 6
necessities tend to spend more amount of money on shopping,

supporting their obsession and passion, and having a

luxurious life. They would literally buy everything even

online or direct regardless of the cost. On the other hand,

teens from families with parent salaries that can only support

their daily life value the money they spend. Usually, they

spend their shopping hour on comparing products brands and

cost. Necessarily, quality and quantity mattered. Estimate

number of hours spent using gadget may also cost influence,

people who’s spent more time browsing and surfing in the

internet are more prone to online advertisement and promotion

that encourage them to buy on the particular site.

Effectiveness evaluation

Effectiveness is the capability of producing a desired

result or ability to produce desired output. Effectiveness

evaluation is measurinf the extent to which targets are being

met, and detecting the factors thaty hinder and facilitate

their realization. It is also an establisghed tool that uses

systematic research methods drwn from many different

disiplines to asses how well a program is achieving its

 7
objective, base on “2009 fall report of the auditor general

of Canada- chapter-1 evaluating effectivebnesss”

Online Selling

SELLER TECHNOLOGY CUSTOMER

Figure 1

Online selling flow

According to Wikipedia, Online selling is a form of

electronic commerce will allow consumer to buy goods and

services from all over the internet using any browser. In

other words, it is a business that electronically manage both

collection and payment (Doofinder blog). E-commerce (online

selling) are really powerful it promotes less cost capital

with bigger profit margin and no schedule that needed to

follow, website is open all day and client can but whatever

and whenever they want. But this does not come with only

advantages, lots of challenges are also showing up and one of

there is lack of trust of consumer of not being able to touch

 8
or feel the product and services being sell, “e-commerce

platform”.

Direct Selling

SELLER CUSTOMER

Figure 2

Direct selling flow

Direct selling refers to selling products directly to

the customer consumer in face to face manner. According to

FTC: Modern direct selling is a blanket term that encompasses

a variety of business from premised on person –to- person

selling in location other that retail establishment such as

commercial malls or the home of prospective customer. It is

consisting of two: Single marketing in which direct seller

makes money by buying product from parent organization and

selling them directly to customer, and multi-level marketing

in which doth direct seller may earn money from both direct

sales and by sponsoring new direct seller and potentially

earning a commission from their efforts.

 9
Product and Services

Product and Services is the things you are selling with

emphasis on the value you are providing to your customers or

client. Products are the items that are tangible like goods

and etc. Services are activities provided by your firm in

exchange of service fee. Taken together, it is the production,

distribution, and consumption of goods and services which

underpins all economic activity and trade. According to

economic theory, consumption of good and services is assumed

provide customer satisfaction.

Consumer Behavior

It is the study of individual, groups, or organization

and all activities associated with the purchase, use,

disposal of goods and services, including consumer’s

emotional, mental and behavioral response that precede or

follow these activities.

 10
Consumer patronization

Consumer patronization is a phenomenon in which

customers voluntary support, patronized and promote certain

company. Findings from the thesis entitled “Conceptualizing

customer-company patronizing behavior:” Customer or consumer

patronization can be conceptualized as being constructive

consumer that contribute to the patron’s senses of identifies

of who they are, who they aspire to be, and what they want to

have. As such, patronizing represent a behavior that function

as mechanics to construct one’s self-concept.

The Reviewed Literature and the Present Study

The variables cited and considered in this study focus

on evaluating the uses, process and development of Online

Shopping and Direct selling well trough out the different

countries. And as well as advantages and disadvantages of

particular selling format. It helps us, the researchers to

gain additional and broader knowledge that drive us, the

researchers to continue this present study.

 11
This study is somehow benefited from the information

from variables being stated above because it broader and wider

some points that serves as initial understanding. But it is

certainly different in many ways than one, the present study

assessed and calculated the capacity of effectiveness of both

selling format base on Demographic profile of respondents.

Conceptual Framework of the Study

Quantity of customer patronizing Online Selling and

Direct Selling plays an important role on the effectiveness

to both selling format in purchasing a product and services.

Customers nowadays are too busy enjoying shopping to

notice the effectiveness of the particular selling format

they’ve used. Quite few of them are wasting money to buy

expensive products just to get along with trends. Some are

under the influence of insecurity to someone. And lastly,

some of them are just carried away by sugar coated words and

flowery podium from the endorser or demonstrator of product

that encouraged them to purchase it. But whatever your

reason is, why are you shopping or why are you buying those

product, you are still costumer and consumer, you have to

 12
know what particular selling format suits your desired

product for you to get the full effectiveness of each business

strategy as a shopping format.

Figure 3 shows the paradigm of the study. It will

determine the demographic profile of respondent in terms of

age, gender, year level and gender, place of residence and

parent(s) monthly income. Here, also indicated the estimate

number of hour they spent using gadget and internet. The

relationship of respondent’s characteristics will assess base

(1)
on the following: Number of customer patronizing online
(2)
and direct selling and, Customer behavior towards buying a

product and services on online and direct selling. In

addition, based on the result of previous assessment (the

relationship of between respondent’s characteristics and

Number of customer patronizing online and direct selling and,

the relationship of between respondent’s characteristics and

Customer behavior towards buying a product and services on

online and direct selling) the effectiveness of the two

selling format was likewise ascertained.

 13

Independent Variable Dependent Variable

Respondent’s Profile
Number of customers
patronizing online
selling and direct
Age
selling
Gender

Year level
Consumer behavior
Place of Residence towards buying a
product and services
Parent(s) monthly on online selling and
income direct selling

Estimate number of
Effectiveness of
hour(s) spent using Online selling and
gadget and internet direct selling in
purchasing a product
and servises

Figure 3.

Paradigm of the Study

 14
Definition of Terms

To provide common reference and to ensure the

understanding of the contents of this study, the following

terms are hereby defined technically and operationally:

Advantages refer to a condition or circumstance that

puts one in a favorable or superior position.

Business refers to an organizational entity and legal

entity made up of an association of people, be

they natural, legal, or a mixture of both who share a common

purpose and unite in order to focus their various talents and

organize their collectively available skills or resources to

achieve specific declared goals and are involved in the

provision of goods and services to consumers

Consumer refers to a person or organization that

uses economic services or commodities. And also the one who

pays something to consume goods and services produced

Consumer Behavior it is often called psychological of

marketing because it analyzed how consumer selected products

and services base on how they think or feel environment

influence
 15
Direct Selling it includes sales made through the party

plan, one-on-one demonstrations, and other personal contact

arrangements as well as internet sales

Disadvantages refer to an unfavorable circumstance or

condition that reduces the chances of success or

effectiveness

Respondents refer to grade 11 or grade 12 senior high

school students that are currently enrolled in PHINMA-

Araullo University.

Demographic Profile is statistical data about the

characteristic of respondents based on age, grade, section,

gender, number of hours spent using gadgets.

Place of residence refers to the place where respondent

lives, whether rural or urban.

Respondents refer to the grade 11 and grade 12 students

of PHINMA- Araullo University who were chosen to answer the

following question related to this study. They were served as

the customer patronizing the two business study.

 16
Statement of the Problem

There are numerous studies that show the beneficial

effect of each business strategy. And aside the fact that

people traditionally visit malls and mostly engaged in direct

selling shops, millennia’s nowadays enjoy the easiness of

buying products without leaving the comfort of their homes.

The main objective of the study was to determine which among

the two business strategy encompass higher quantity of

effectiveness in terms of services for the customer.

Specifically, this study seeks to answer the following

question

1. How may the respondents be labeled in terms of:

a) Age

b) Gender,

c) Year Level,

d) Place of Residence,

e) Parent(s) monthly income

f) Estimate number of hour(s) spent using gadgets and

internet,
 17
2. Is there any significant difference between the number

of customers patronizing online selling and direct

selling, based on the respondent’s profile?

3. Is there any significant difference between the behavior

of customer towards buying a product and services on

buying directly and online, based on the respondent’s

profile?

4. Is there any significant difference between the

effectiveness of online selling and direct selling in

purchasing and product services?

Hypothesis of the study

This research will be guided by the following hypothesis:

1. Base on the respondent's characteristics, there is no

significant difference between the number of customers

patronizing online selling and direct selling;

2. Base on the respondent’s characteristics, there is no

significant difference between the behavior of customer

towards buying a product and services on buying directly

and online;
 18
3. There is no significant difference between the

effectiveness of online selling and direct selling in

purchasing and product services.

Significance of the Study

The Philippines is a busy country with different kinds

of people. Being a busy country, Filipino’s tend to order and

buy goods online because it’s much easier and faster. But a

lot of Filipino’s are convinced of the authenticity of the

products being sold at malls. With these promising results

from previous researchers, this study conducts the further

explanation and facts regarding of the Effectiveness of

Online Selling and Direct Selling in services and purchasing

a product.

The result of this study will be substantial to the following

sectors:

1. To the Teachers- This study may provide awareness and

understanding to the teacher especially to the ones

 19
under ABM curriculum. It may encourage them to conducts

programs and seminars related to business strategy that

will help those aspiring student under ABM or in other

curriculum to build their own business with strong

business strategy to promote their own product.

2. To the student- This might help the aspiring business

student to pick and choose a strong business strategy.

This would serve as an eye-opener to them on how to

promote their product when they decided to make their

own business.

3. To the future researchers- The results can provide them

new information about the effectiveness of a business

strategy and would serve them as a basis for future

studies.

4. To the business men- This study may be beneficial as a

source of information and basis to the business man who’s

having a trouble in their sales because of lack in

business strategy.

5. To the customer- This study may be helpful to, they will

be informed about which of the two can be more effective

when purchasing a particular product and services.

 20
Scope and the limitation

This study focused in determining the effectiveness of

direct selling and online selling in purchasing a product and

services. We, the researchers aimed to determine which of the

two business strategy is most likely to enjoy and be more

beneficial to the customer. The respondents are grade 11 ABM-

HT students of Phinma-AU (main). The respondents’ profile was

limited to age, gender, place of residence, parent(s)

occupation, estimated number of hour(s) spent using gadgets

and internet. The investigation was conducted at Phinma-

Araullo University, Maharlika Highway, Nueva Ecija from

December 2018 to 2019. The main source of data information

will come from structured questionnaire. Simple random

sampling was used in choosing the respondents and descriptive

research was utilized as research design. Microsoft excel

will also use to acquire statistical computation.

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Chapter II

RESEARCH METHODOLOGY

This portion presents the details of the research

methodology. Including, the research design, research

methods, sources of data, the participants, instrumentation

and data collection and, tools for data analysis.

Research Design

The researchers used the descriptive design in the

study. This method was used to determine the effectiveness of

direct selling and online selling in purchasing a product and

services. It also gave direct answers from the Senior High

School students of PHINMA-Araullo University. And showed what

selling format is more reliable and efficient when choosing

and buying a product.

It also tried to determine the relationship between the

variables and the factors that influence the number of

customer patronizing online selling and direct selling, and

the behavior of consumer when buying any particular products.

 22

Participants of the study

The participants of the study were the grade 11-12

students of PHINMA-Araullo University (main and south),

Cabanatuan City, Nueva Ecija. There were ____ respondents out

of ______ population of senior high school who participated

in this study.

The researchers were able to determine the appropriate

size of sample from a specific population using the Slovin’s

formula (Sevilla 2003). The formula is as follows:

Where:

n = sample size

N = population size

1 = constant

e = margin of error
 23
The selection of participants was done thru, the basic

type of sampling design. In which, each member of the subset

has an equal probability of being chosen. A full set of names

of grade 11 ABM-HT students was ensured. Each student has a

designated corresponding number. All the students’ numbers

were placed inside a box, and then the box was shaken

comprehensively until the numbers are jumbled. The number

chits were randomly drawn until the desired sample size is

met. The researchers used this kind of sampling technique

because it is known and considered as unbiased way of

selecting a sample from a given population, since each member

is given an equal chance of being selected.

Table 1 Distribution of Respondents

Year and section N n

Grade 11 ABMHT 141 104

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Materials and Instrumentation

These main data-gathering instruments were used to

gather and analyzed data relevant to the present study.

The following checklist will be used to obtain the needed

data:

Profile Checklist. The checklist was formulated to

outline information and gather data about the students of

PHINMA-Araullo University specifically on the following: age

gender, year level, place of residence, Parent(s) Occupation,

Number of hour(s) spent using gadgets and internet, number of

hour(s) spent when not using gadgets and internet.

Patronizing Checklist. The checklist was consisted of 10

statements where the respondents were asked to determine

which they mostly prefer when purchasing a product in terms

of online selling and direct selling.

Two options were provided to the respondents for their

responses.

1. Online Selling

2. Direct Selling
 25
Consumer Behavior Checklist. The checklist was consisted

of 5 statements where the respondents were asked to assess

their behavior in terms of choosing a product to buy.

Three options were provided to the respondents for their

responses:

1. Always

2. Sometimes

3. Never

Data Collection

The researcher’s permission was authorized from the

Senior High School principal of PHINMA-Araullo University

regarding the conduct of the study. A letter asking permission

was forwarded to the research adviser and to Senior High

School principal and secretary to know the total population

of Grade 11 students in PHINMA – Araullo University. The

complete list of the target respondents was selected

randomly. We researchers wanted permission from the research

adviser, principal and the advisers of the target class to

conduct the study. After asking for the permission, the

 26
researchers start to conduct the study by survey

questionnaires to the respondents. The researchers collected

the survey form, tallied the answers, and then examined the

results.

Data Analysis

After retrieving the questionnaires, analysis will be

done using Microsoft excel. Data were collected and subjected

to the following statistical measures:

Percentage. This was utilized to answer the first

problem. “How may the respondents be labeled in terms of

demographic profile?” Percentage of subject students’ answer

to specific questions provided in the questionnaire will be

computed from one variable to another. The results of the

computation gave the data regarding the relationship of the

PHINMA- Araullo University, Senior high school grade 11 and

student both main and south, as customer on both shopping

format. These methods also provide the appropriate number of

customer patronizing both ways of shopping in terms of

percentage.
 27
The following formula was used:

Where:

P = percentage

f = frequency (part)

N = total number of cases (whole population)

100 = given

ANOVA (Analysis of variance), this was utilized to the

second and fourth problem “Base on the respondent's

characteristics, is there any significant difference between

the number of customers patronizing online selling and direct

selling?” and “Is there any significant difference between

the effectiveness of online selling and direct selling in

purchasing and product services?” Specifically, one way

anova, A one way ANOVA is used to compare two means from two

independent (unrelated) groups using the F-distribution.

The null hypothesis for the test is that the two means are
 28
equal. Therefore, a significant result means that the two

means are unequal.

Where:

Weighted Mean. This tool used to answer the third

questions, “Base on the respondent’s characteristics, is

there any significant difference between the behavior of

customer towards buying a product and services on buying

directly and online?”

The formula of weighted mean is as follows

 29

Where:

WM = weighted mean

∑ = summation sign

w = weighting factor

X = observed phenomenon (number of check)

The weighted mean was verbally described using the scale

below.

Customer behavior when buying a product

Verbal Description Weighted Mean Scale Range

Always 3 2.51-3.00

Sometimes 2 1.76-2.50

Never 1 1.00-1.75
 30
Bibliography

A.BOOKS/JOURNALS/NEWS BOOK

Roberts, Calia (2018) The Advantages & Disadvantages of

Direct Marketing & Telemarketing

Muhammad Jehangir, P.D.D Dominic, Naseebullah, Alamgir Khan

(2011) Towards Digital Economy: The Development of ICT and E-

Commerce in Malaysia

Häubl Gerald, Trifts Valerie (2000) Consumer Decision Making

in Online Shopping Environments: The Effects of Interactive

Decision Aids

Filippovits, Diana: Jokela Iiris (2015) Conceptualizing

consumer-company patronizing behavior: Nostalgia-charged

experiences driving prosocial behavior and commitment

B.WEBSITES/WEB BLOG

Richards, Leigh (2018) Development of Business Strategies

Lilyquist, Mindy (2017) What is Direct Selling

Doofinder, what is e-commerce: business models

 31

C.WEB SOURCES

http://smallbusiness.chron.com/development-business-

strategies-4622.html

http://www.marketingpanel.info/cms/marketingpanel-

en?c=ga&gclid=EAIaIQobChMI6v79qbqa2AIVRWiWCh3amwSBEAEYASAAE

gJFWPD_BwE

https://www.thebalance.com/what-is-direct-selling-1794391

http://smallbusiness.chron.com/advantages-disadvantages-

direct-marketing-telemarketing-54933.html

http://www.businessdictionary.com/definition/online-

shopping.html

http://www.rehanstat.com/wp-

content/uploads/2017/08/2.towards-digital-economy.pdf

https://pubsonline.informs.org/doi/abs/10.1287/mksc.19.1.4.

15178?journalCode=mksc

https://doi.org/10.1287/mksc.19.1.4.15178

http://www.oagbvg.gc.ca/internet/english/parl_oag200911_01_

e_33202.html
 32
http://www.theblancesmb,com/what-is-direct-selling1794391

http://www.thebalancesmb.com/online-marketing-2948352

http://www.doofinder.com/en/blog/what-is-e-commerse

http://en.m.wikipedia.org/wiki/consumer_behavior

http://aaltodoc.aalto.fi/handle/123456789/21371
 33
STUDENT’S QUESTIONNAIRE

Title of the study: Effectiveness of Online Selling and Direct

Selling in purchasing a product and services

Invitation to participate: We sincerely request you to fill

in all questions given below. Please answer each, honest as

possible. Your answer will undergo in-depth analysis and will

serve as our basis and partial information for our said study.

Your answers are solely for education purposes and will remain

confidential. Thank you for your time and consideration.

PART I – DEMOGRAPHIC PROFILE OF THE RESPONDENT

Name of Respondent (Optional):_________________ Age:____

Place of Residence: □ Rural □ Urban (Put a check)

Parent(s) monthly income range:

□ 3-5 thousand □ 5-10 thousand □ 10 thousand and above

Estimate number of hour(s) spent using gadgets and internet:

per day

□ 3-5 hours □ 5-10 hours □ 10 hours and above

 34
Part II – NUMBER OF CUSTOMERS PATRONIZING ONLINE SELLING AND

DIRECT SELLING

Direction: Put a check on which “selling format” do you prefer

buying those specific products given below.

Check (1)

QUESTIONS ONLINE DIRECT

SELLING SELLING
I more likely choose this selling format
when I’m buying goods
I more likely choose this selling format
when I’m buying personal hygiene kit
I more likely choose this selling format
when I’m buying school supplies
I more likely choose this selling format
when I’m buying undergarment
I more likely choose this selling format
when I’m buying gadget
I more likely choose this selling format
when I’m buying clothes
I more likely choose this selling format
when I’m buying shoes
I more likely choose this selling format
when I’m buying home decoration
I more likely choose this selling format
when I’m buying beauty care product
I more likely choose this selling format
when I’m buying accessories
 35

PART III.A – BEHAVIOR WHEN BUYING A PRODUCT (ONLINE BUYING)

Direction: Put a check according to your level of

consideration

Always (3) Sometimes (2) Never (1)

QUESTIONS A S N

When I am purchasing a product online I

surely consider the price

When I am purchasing online I give time to

check the quality of the product

When I am purchasing online I patiently

compare the product brand that will satisfy

my needs and wants

When I am purchasing a product online I

check properly if its durable enough to

support my daily activities

When I am purchasing a product online I

consider the news and trends

 36

PART III.B – BEHAVIOR WHEN BUYING A PRODUCT (BUYING DIRECTLY)

Direction: Put a check according to your level of

consideration

Always (3) Sometimes (2) Never (1)

QUESTIONS A S N

When I am purchasing a product directly I

surely consider the price

When I am purchasing directly I give time

to check the quality of the product

When I am purchasing directly I patiently

compare the product brand that will satisfy

my needs and wants

When I am purchasing a product directly I

check properly if its durable enough to

support my daily activities

When I am purchasing a product directly I

consider the news and trends

 37
Chapter III

RESULTS AND DISCUSSION

This portion presents the results and analysis of

gathered data base on the respondents answers on the said

questionnaire. Collected statistics and information go

through in-depth analysis to formulate conclusion. This part

will serve as a basis to prove the point of our study.

Respondent’s characteristic analysis

Respondent’s characteristic especially gender, age, year

level, place of residence and parent(s) monthly income range

and estimate number of hours spent using gadget may influence

the effectiveness of a certain selling format. This part shows

the percentage of respondent base on their characteristics

and status that results to particular outcome and conclusion

of the said study.

 38

Table 1 shows the demographic profile of the respondents based

on frequency and percentage.

Demographic Profile

label Frequency Percentage(%)

(f)
16 YRS 45 43.27%
OLD
Age 17 YRS 45 43.24&
OLD
18 YEARS 14 13.16%
OLD
Place RURAL 54 51.92%
URBAN 50 48.1%
Parents’ 3-5K 27 25.96%
Monthly 5-10K 34 32.69%
Income 10K-ABOVE 43 41.35%
Hours spend 3-5HRS 30 28.85%
using 5-10HRS 26 25%
gadget and 10HRS- 48 46.15%
internet ABOVE

Patronization Analysis

Base on the mail survey of upscale US households there

are two main and leading “selling format” strategy in our

modern business society, Online Selling and Direct selling,

and the conducted empirical study finds that they are clearly

different from each other in many terms (Dholakia and

Uusitalo, 2000). This study intended to determine if there is

 39
significant difference between the numbers of customer

patronizing the two selling format base on particular

product. Figure 4 shows the exact number of customer in line

in both online and direct selling format. Patronization

analysis shows that 7 out of 10 products are mostly buy

directly to a store.

Number of customer patronizing

online selling and direct selling
base on particular product

77 79
74 72
58 60 61
54 50 53 51
46 44 43
30 32
25 27 25
2.4
persona
home beauty
l school underga accesso
goods gadget clothes shoes decorati care
hygiene supplies rment ries
on product
kit
ONLINE 25 27 30 25 32 58 54 44 53 43
DIRECT 2.4 77 74 79 72 46 50 60 51 61
ONLINE DIRECT

Figure 4. Data results base on the no. 2 question “Is there

any significant difference between the number of customers

patronizing online selling and direct selling, based on the

respondent’s characteristics?”
 40
Behavioral Analysis

Behavior plays major role in the level of consideration

of a customer. All activities associated with the purchase,

use, disposal of goods and services, including consumer’s

emotional, mental and behavioral response that precede or

follow these activities. As such, patronizing represent a

behavior that function as mechanics to construct one’s self-

concept. The major reorganization in the way is that some

products are manufactured, marketed and purchased that

results commodity and convenience are some factors that

influenced the behavior and consideration of customer towards

buying a product (Dutch-Brown, Grzybowski, Romahn, and

Verboven, 2017).

Table 2. Online and Direct selling weighting of mean.

Mean
Online Selling 2.153846b

Direct Selling 2.607692a

Note: Means with the superscript is “a” equivalent as always

and “b” stands for sometimes
 41
Customer's behaviour when buying a
product online
news &
trends
durability

brand always
sometimes
quality
never
price

0 10 20 30 40 50 60
Level of consideration

Figure 4. Customer’s behavior base on their level of

consideration when buying a product through online shops.

Customer's behaviour when buying a

product directly
news &
trends

durability
always
brand
sometime
s
quality never

price

0 10 20 30 40 50 60 70 80
Levels of consideration
Figure 5. Customer’s behavior base on their level of

consideration when buying a product directly to a store.

 42
Figure 4 and 5 shows the results of customer’s behavior

base on statements of 5 major things to consider when

purchasing some particular product. The results ruminate from

two factors, either the respondents have the chance to

consider those things or they didn’t consider that things at

all. Figure 4 displays that respondents answer are mostly

“sometimes” meaning customers level of consideration when

buying online are in mid-point. On the other hand, figure 5

shows that through and when they purchasing a product offline

they have the chance to consider all.