2021 RES214 Baiwas Balacuit Balicolon Butalon Dizon Fontanilla Munoz Navales Pascua Poculan Consolidated-Chapter-1-3

i
Father Saturnino Urios University
Bp. Pueblos Senior High School

Butuan City
Establishing Online Business on Facebook Amidst COVID-19

Pandemic: Identifying Influencing Factors Affecting People’s
Decisions
A Research Paper
Presented to the
Faculty of Bp. Pueblos Senior High School
In Partial Fulfillment of the Requirements for

Practical Research 1
By:
Baiwas, Michelle M.
Balacuit, Ritchie Poul B.
Balicolon, Bridget Monique P.
Butalon, Rhean E.
Dizon, Cymer Romeo M.
Fontanilla, Beverly T.
Munoz, Camille Chris Ann A.
Navales, William R.
Pascua, Rhenzo John A.
Poculan, Treshia Marie T.
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CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
1.1 BACKGROUND OF THE STUDY
Online selling first started back in the 1990s and became
possible when internet was developed and was open for commercial
use. However, only a decent number of individuals and businesses
took interest in this. Many businesses have opted to sell their
products physically to have a direct contact with their
environment and interact with their customers. They establish
shops for their businesses for it to become accessible to those
who do not have or are not familiar with the internet.
In March 2020, a deadly virus sprawled its way to various
countries, terrorizing the homes of individuals, deteriorating
their health, causing a turbulence to the economy, and overall,
disturbed the peace of many countries. Many have lost their jobs
because of the pandemic. As a result, they seek for others means
of income.
Social media is widely used especially by younger
generations who actively participates in social media activities.
They are highly dependent on different media platforms for their

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entertainment and for updates. As the pandemic continues,
individuals have turned to social media to gain profit and
endorse their products. Seeing social media as a potential market
medium, numerous people have utilized their platforms to start a
business and engage in online selling. This became their means of
income and have become a popular profit generator in this time of
pandemic.
The researchers’ purpose of coming up with this study is to
identify factors that influence people’s decisions in
establishing an online business with the use Facebook as its
primary market outlet and how their decisions affect their
overall life. The researchers will be conducting an online
interview to effectively obtain information from Butuan City
online sellers. The researchers aim to provide data and
information and determine its significant influence in opening
new business opportunities for Filipinos quarantined by COVID-19.
1.2 PROBLEM STATEMENT
To get a better understanding on what it is like to start a
business on social media, this study aims to identify the

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influencing factors that affect people’s decisions in
establishing an online business using the Facebook platform as
their primary marketing outlet. This research intends to provide
answers and contribute to the additional knowledge apropos to the
following:
1.) What drives sellers to initiate and engage in an online
business?
2.) What are the struggles that they have encountered in building
their business in this platform?
3.) How does establishing an online business relatively affect
the overall life of the sellers?
1.3 SIGNIFICANCE OF THE STUDY
The findings, which this study will reveal, may benefit
certain groups and the benefits they may be able to gain are as
follows:
 Filipinos. To gain knowledge on the widespread of online
selling community and how this provides employment and
income to Filipinos who either have lost their jobs or are

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in need of money to support the needs of their household.
This research will allow them to gain insight as to why
people make use of their platforms for business and profit
purposes.
 Aspiring Online sellers. The information and data of the
research will provide them an idea on whether to pursue an
online business and understand the factors that
contributes to the formation of their idea and highly
influence their decisions. This is also to determine why
online sellers resort to using Facebook as their primary
marketing medium.
 Other Researches. The conclusion of this thesis will
contribute to synthesizing the literature in online
selling which can aid other researches that have similar
topic to the researchers.
1.4 SCOPE AND LIMITATION OF THE STUDY
This study will focus solely on the online sellers in Butuan
City, albeit the topic per se can be used on a broader research
on online selling. The analysis of the thesis will predominantly
prioritize the responses of the Butuanon online sellers on what

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influenced them into joining the e-commerce and establishing a
business in this time of pandemic as well as how their decisions
affected them. This research will only report the factors
affecting the decisions of the online sellers in starting a
business on social media platforms, specifically Facebook, using
the responses of the Butuanon online sellers as basis and its
overall effect to the sellers.
1.5 RESEARCH PARADIGM
INTERVIEW
Online Sellers of Factors affecting
Butuan City their decisions
A
N
A
L
Y
S
I
S
Its influence and

effect on sellers
INDEPENDENT VARIABLE
DEPENDENT VARIABLE
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1.6 THEORITICAL FRAMEWORK
It is crucial for one to determine a person’s intent and
perspective in running a certain business, especially during
difficult and critical times. The main objective of this current
study is to obtain qualitative indication pertaining to the
reasons why people pursue online business amidst pandemic. In
analyzing the factors obtained, The Diffusion of Innovations
(DOI) model can serve as a useful theoretical framework. Rogers
(2003) defined an innovation as an idea, practice or object that
is perceived as new by an individual or other unit of adoption,
and diffusion as “the process during which an innovation is
communicated through certain channels over time among members of
a social system”. The DOI model is a theory that seeks to explain
how, why, and at what rate new ideas and technology spread. It
has been generally used to explain the adoption of various
innovations, especially those involving technology. This model
can elucidate why e-commerce flourishes during COVID-19 Pandemic.

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The DOI model sees the innovation diffusion process as
involving four main elements that influence the spread of a new
idea: the innovation, communication channels, time, and a social
system. (Rogers, 2003). The innovation being the idea, practice,
or object that is perceived as new by an individual which in this
study can be determined as online selling/e-commerce.
Communication channels being the medium that allows the transfer
of information from one unit to the other permitting the exchange
of goods and services which can also be seen in Facebook. The
passage of time is necessary for innovations to be adopted,
especially during definite instances that requires the need for
it. Time dictates the unfolding of current events that lead to
the exigency of the implementation of the said innovation.
Finally, social system refers to the combination of external
influences (mass media, governmental mandates) and internal
influences (household, community, societal relationships). There
are many roles in a social system, and their combination
represents the total influences on a potential online seller.
Through investigating the presence of these following elements,
we can determine the factors that influence people’s decision in
starting business in Facebook with regards to the status quo.

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1.7 CONCEPTUAL FRAMEWORK
The participants of the research will be determined by how
accessible they are. They must be within the locality of Butuan
City and should be a legitimate online seller on Facebook. There
should be at most 10-15 participants, disregarding their age,
educational attainment and sexual orientation, who are certified
online sellers and actively engage in online selling through the
Facebook platform.
An online interview will be utilized as means for collecting
data and gathering information from the
interviewees/participants. The interview that will be used as a
data collection method will be thoroughly examined by the
researchers with the help of qualified individuals and credible
sites. Professionalism must be observed by the researchers and
must be heedful during the online interview. The results will
individually be judged by the researchers and will be converted
into data that will then be recorded.
The researchers propose to identify the factors that
influence the online sellers to participate and venture an online

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business amidst COVID-19 pandemic and how their decisions affect
their overall life and wellbeing. The results of the study, as
the researchers suggest, will contribute in synthesizing the
literature in online selling as well as determine whether the
matter has a significant influence in the opening of new business
opportunities for Filipinos quarantined by COVID-19.
1.8 DEFINITION OF TERMS
E-commerce. Buying and selling of goods and services using the
internet, and the transfer of money and data to execute these
transactions.
Social media. Computer-based technology that facilitates the
sharing of ideas, thoughts, and information through the building
of virtual networks and communities.
Online Selling. Act or process of selling goods or services via
an internet or mobile app, auction site, online classified
advertisement, online shop, social networking, social media, or
web shop.
COVID-19 Pandemic. An ongoing pandemic of Coronavirus disease

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2019 caused by the transmission of severe acute respiratory
syndrome Coronavirus 2.
Marketing outlet. A shop that sells products of manufacturers or
suppliers.
Facebook. An online social networking website where people can
create profiles, share information such as photos and quotes
about themselves, and respond or link to the information posted
by others.
Influencing factors. Factors that can affect some features of
target object. It can be used as control variables to determine
the key influencing factors of an object.
Online business. Any kind of business or commercial transaction
that includes sharing information across the internet.

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CHAPTER 2
REVIEW OF RELATED LITERATURE
Melao (2009) suggested that via the discovery and usage of
internet, e-business has emerged as a core feature of many
organizations and was not known until only in the 1990s. He
further stated that the hope was that e-business would carve a
path for the revolutionizing of the ways in which organization
interact with their suppliers, partners, employees, and most
importantly, their customers. E-business was perceived as part of
a recipe to stay competitive in the global economy.
As e-business continues to grow and influence how many
businesses opt to thrive, its meaning becomes different and
depends on how people define it to be. According to Melao (2009),
others see e-business as the transformation of e-commerce from
the occurrence of transaction, otherwise known as buying and

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selling, in the internet and argues that the former is the
superset of the latter (e.g., Turban et al.,2006). Others uphold
that they are distinct concept although they may have a relation
with each other (e.g., Laudon and Traver, 2008). While some
authors interchangeably use both terms, an indication that they
view them to be the same and are likely of the same meaning
(e.g., Schneider, 2002).
According to AlGhamdi et al. (2012), there had been a
noticeable increase in the online retailing systems in the USA as
well as the start-ups of their e-commerce dated back in the
period of 1995-2000. Since then, e-commerce activities have
continued to proliferate and has been made obvious to the ever-
changing world. The discovery of e-commerce has led to the
industrialization and modernization of numerous countries. In the
paper of Kshetri (2001), it attempted to identify and provide a
synthesis in the available evidence on predictors of magnitude,
global distribution, and forms of e-commerce. His analysis
created a conclusion and indicated that the twin forces of the
major revolutions of ICT and globalization are the source of fuel
for the continuous and rapid growth of global e-commerce.

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The study of Makame, Kang, and Park (2014) indicated that
there are implications for system or service developers stemming
from the effect of technology infrastructure. Their results show
that national policy initiatives play a vital. role in the growth
of technology infrastructure for developing countries. Technology
infrastructure includes the internet, personal computers, world
wide web, fiber optic switches, client/ server computing, cloud
computing, and hand held cellphones/ computers (Laudon and
Traver, 2010). As e-commerce involves online commercial
transactions, this would lead to a variety of activities from
product and service display and browsing for information online
to providing personal information to online payments. The study
pointed out that accountability, reliability and security of
technology, knowing what people online would tend to, insurance,
and performance history and reputation are some of the
characteristics that might affect online trust as online trust,
defined by Corritore, Kracher, and Wiedenbeck (2003), is the
trust of an individual to online website transactions or
informational website. As a response to this concern, their study
further stated that initiating national policy that promotes and
encourage the presence of good technology infrastructure to
support e-commerce would boost economic growth and the support of

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the government for this would build a sense of trust in online
transactions and online commerce in general.
A recent and deadly virus outbreak known to be as the COVID-
19 has terrorized the world since the beginning of the year 2020.
This virus has not only disrupted the homes of individuals but it
also posed a threat to the health of the majority while at the
same time caused an alarming decline to the economy. The
particular disease gradually evolved into a pandemic as it
continues to extensively spread on a number of nations and
threaten public health. It has forced many businesses to stop
with their operation which contributed in the increase of
unemployment and hampers the economy as a whole. According to
Hasanat et al. (2020), the pandemic has a wide-reaching effect on
technology, business travel, e-commerce and especially on the
economy. It has cut the supply chain of many business and may
continue to hinder its operations. They further stated in their
paper that as per research studies, the proliferating online
retail applications and e-commerce mobile apps can be observed as
well as the rise in number of online audience due to the pandemic
crisis. Furthermore, it has been anticipated by Hasanat et al.
(2020) that the proportion of active audiences in online

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platforms would significantly increase. The majority of new and
active mobile application users would lean on the usage of the
applications concerning food delivery services and facilities.
According to Addo et al. (2020), the contributions to
provide online buying and selling of goods and services by
stakeholders and the likelihood of social interaction through the
support and means of e-commerce is stirred by the fear of the
COVID-19 pandemic. Albeit depression, anxiety, and stress in
society which is produced by the pandemic can be clearly
observed, it is also worth taking note of the increase in
purchasing good and services through the use of online platforms
as customers take into account the safety offered by the internet
and online technologies (Pantano et al., 2020). The economic
benefits which can possibly be derived from e-commerce platform
can create positive emotional responses, which could lead to
online purchase intention as indicated by Liu et al. (2020). In
line with this idea, Wang and Herrando (2019) proposed that the
enhancement of interaction among sellers and buyers can stem from
e-commerce platforms as the aforementioned impact can contribute
to the increasing online shopping behavior and would most likely
generate economic benefits.

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As online selling continues to trend in this time of
pandemic, many people see this as a window of opportunity and opt
to become online sellers in order to meet their day-to-day needs
and to continuously provide for financial support to their
respective households. According to Bandyopadhyay, Barron, and
Chaturvedi (2005), the number of sellers who can qualify and who
actively participates in online selling has escalated. This is
due to the fact that the requirements of minimal information
technology of a trading partner to join an exchange as well as
with the advent of technology. Using social media, specifically
Facebook, as a medium for online selling has become popular
nowadays. Derham et al. (2011) states that Facebook has become an
increasingly popular choice in regards to promoting business for
the fact that it allows communication to go beyond a private one-
to-one conversation and now has significantly becomes a
conversation of many-to-many. Business owners or people in
general who are interested in starting a business can fully
utilize the Facebook in order to promote, sell, and market their
products to a larger audience. They can use Facebook to promote
their goods, services, or brands by simply mentioning, sharing,
messaging, notifying and commenting (Ainin et al., 2014).

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According to the studies of Bonson and Ratkai (2013), Sarosa
(2012), and Wong (2012), they have analyzed the use of Facebook
in business and concluded that it is good for business to embrace
the said platform. Even small medium enterprises (SMEs) can
utilize it for their transactions as it is proven that it does
not necessarily require a high level of IT skills and is also
found to have a minimal cost (Derham et al., 2011).
As individual sellers are still trying to establish a
business of their own through online means, they tend to be very
keen on the cost and like any other sellers, may it be in any
form, ensure that their cost is not greater than the profit that
they will be gaining from selling online. Cost-effectiveness have
been found to be a vital variable towards the adaption of new
technologies (Chong and Chan, 2012). It has been identified to
have a significant and direct relationship towards each other
(Alam and Noor, 2009). In the study of Dixon et al. (2002), they
argued that if the initial set-up cost is of high level, then it
would be less likely for the SMEs to adopt ICT. In relation to
this, the study of Derham et al. (2011) states that the usage of
social media requires low level of IT skills, low barriers to
participation and most importantly, of low cost which is why it

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is shown to be suitable for SMEs as well as individual or new
sellers.
Online sellers also take into account the number of
potential customers which can be made easy in using social media
platforms as a primary outlet for online marketing. Aside from
having a bigger number of potential customers, selling in
Facebook can relatively form an interaction between sellers and
buyers more efficiently especially in this time of pandemic. As
social media, Facebook for example, is considered to be an
interactive media (Ainin et al., 2014), rather than creating a
one-dimensional distribution or transmission of information to
audience, it enables a two-way communication (Mayfield, 2008). In
the study of Handayani and Lisdianingrum (2012) which is about
the investigation on the adoption and use of Facebook in two
Indonesian SMEs, it proposes that Facebook can be seen and used
as an effective online marketing tool that is free, that is, if
it can be well managed. Interactivity stands out as a key factor
as well as a distinguished one that relatively affect the user’s
response adopting new websites and new technologies in general
(Agarwal and Venkatesh, 2002).

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Sellers see to it that trust can be established between them
and their customers in their online transaction and that the
social media they are using as their primary marketing tool can
also be trusted and can ensure security for both the seller and
the buyer. Cho, Kwon, and Lee (2007) have noticed the importance
of trust and how it can be considered as a complicated aspect in
an environment such as the environment of e-commerce as compared
to the conventional business transaction. Compatibility is also a
factor that they take into consideration. How their goods or
services is compatible to this time and day and how it can
possibly entice online customers to buy. They take into account
the compatibility of utilizing their social media, specifically
Facebook, to generate income amidst the COVID-19 pandemic. The
compatibility of innovation which has an idea beforehand can
either speed the rate of adoption in the organization or the
other way around (Alam, Ali, and Jani, 2011). According to Derham
et al. (2011), implanting social media on business would be a
best-fit concept as it helps to effectively niche the targeted
customers and businesses would be able to instantly promote and
share their products to a wider audience.

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The usage of Facebook platform for financial purposes or in
order to generate income is much resorted by people regardless of
age and sexuality as it is shown to be more efficient and easier
to use as well as accessible and is widely known and utilized.
Sellers analyze and try any means to ensure that it is easy to
use which could also eventually affect their customers’
purchasing decisions (Muhaini and Ahmad, 2018). Furthermore,
information systems that sellers perceive to be less complex and
is relatively much easier for their business increase the
likelihood of their adoption to this (Lee et al., 2001) and would
more likely be accepted by others if appropriate skills and
understanding of technology are in place (Alam, Ali, and Jani,
2011).
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CHAPTER 3
RESEARCH METHOD
3.1 Research Design
Phenomenology will be utilized as the type of research
design in this study. A phenomenology is a research method of a
qualitative research that describes the significance of a lived
experience of a phenomenon for several individuals, which in our
study’s case is the experiences or factors that influence an
individual’s decisions towards starting an online business on
Facebook amidst this pandemic. The goal of this approach is to

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describe the commonalities of their experiences and perspectives.
It is imperative that we provide analysis on the different
perspectives of online sellers and their motives towards running
their establishments during this time of quarantine.
3.2 Setting of the Study
This study will be conducted within the vicinity of Butuan
City, Philippines. Due to the constraints brought about by
community quarantine, the researchers will use online data
collection methods to gather data from their participants.
Butuan City is a 1st class highly urbanized city and
regional capital of Region 13 Caraga. On April 6, 2020, Butuan
City became the city with the first COVID-19 confirmed case in
the Caraga region. Due to this, the whole region was placed under
enhanced community quarantine within the same day. It affected
the jobs and livelihood of many Butuanons. In light of this, many
individuals resorted to online business amid pandemic
restrictions.
3.3 Participants of the Study
Purposive Sampling will be used by the researchers for their
data collection. This sampling procedure is chosen as it is both

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time and cost efficient whilst will still contribute in providing
sufficient and accurate data. This would also help in selecting
suitable samples for the said study by narrowing down the choices
of participants through the criteria established by the
researchers and their judgement. Moreover, this type of sampling
is pertinent to the study and thus would ensue a worthwhile data.
Grade 12 Online Seller Students. Students from BP. Pueblos and
are part of the academic track of ABM who actively participate in
online selling and utilize their respective Facebook platforms as
their online market outlet.
Online Sellers. Sellers who are living in the City of Butuan and
employ their social media platform, specifically Facebook, to
market and sell their products and are active online sellers as
well.
3.4 Research Instrument
The researchers will make us of semi-structured interview to
ensure consistency in question and accuracy in information. Open-
ended questions will be utilized in order to attain purposeful
data and gather ample amount of data from the sample that is with
relevance to the study using the same question. The questions

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will be formulated prior to the intended day of interview and the
researchers will conduct the interview via google meet in order
to execute the structural interview. The questions will solely
focus on the purpose of the research and would effectively cover
the research questions by aiming to provide answers as to what
factors influence the decision-making of online sellers as to the
establishment of an online business and how these relatively
affect their overall life. Integrity should heedfully be observed
by the researchers in decoding the results and should exclusively
be based on the data collected. Validity of the results will be
through producing documentations and copy of the recorded online
interview that will be conducted as well as accumulating correct
and impartial data.
3.5 Data Gathering Procedure
The researchers will recruit their participants through
conducting a research on Facebook on who are the online sellers
in Butuan City and identifying them in order for the researchers
to contact the chosen online sellers. They will be constructing
and submitting a letter of approval to the principal of Bishop
Pueblos Senior High School Father Saturnino Urios University to
select students from Grade 12 ABM who are online sellers to take
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part in the interview. A letter would also be handed to the
online sellers of Butuan to ask for their consent to voluntarily
partake in the said interview. Furthermore, the researchers will
schedule an interview day for the participants that will be
chosen and the time will depend on the participants’
availability. After the interview, the researchers will analyze
the information provided by the participants and convert and
saturate them into the intended data provided that the analysis
and sorting out of information will not be tainted with bias and
will purely be from the collected information.
3.6 Data Analysis
Recorder from cellular phones or laptops will be used to
record the entire interview and provide a recorded copy of the
interview thereafter. The researchers will also personally take
note of relevant answers that could potentially respond to the
formulated research questions. The researchers will then analyze
the data by compiling the data, synthesizing them, and choosing
the important and recurrent answers and information provided.
They will also summarize each interview and validate them, taking
into account the important factors mentioned through data
reduction. The researchers will be impartial and would record

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necessary and purposeful data precisely.
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Father Saturnino Urios University

Bp. Pueblos Senior High School

Establishing Online Business on Facebook Amidst COVID-19

In Partial Fulfillment of the Requirements for

Bp. Pueblos Senior High School

1.1 BACKGROUND OF THE STUDY

Online selling first started back in the 1990s and became

use. However, only a decent number of individuals and businesses

took interest in this. Many businesses have opted to sell their

products physically to have a direct contact with their

environment and interact with their customers. They establish

shops for their businesses for it to become accessible to those

who do not have or are not familiar with the internet.

In March 2020, a deadly virus sprawled its way to various

countries, terrorizing the homes of individuals, deteriorating

their health, causing a turbulence to the economy, and overall,

because of the pandemic. As a result, they seek for others means

Social media is widely used especially by younger

generations who actively participates in social media activities.

They are highly dependent on different media platforms for their

Bp. Pueblos Senior High School

entertainment and for updates. As the pandemic continues,

individuals have turned to social media to gain profit and

endorse their products. Seeing social media as a potential market

medium, numerous people have utilized their platforms to start a

business and engage in online selling. This became their means of

income and have become a popular profit generator in this time of

The researchers’ purpose of coming up with this study is to

identify factors that influence people’s decisions in

establishing an online business with the use Facebook as its

primary market outlet and how their decisions affect their

overall life. The researchers will be conducting an online

interview to effectively obtain information from Butuan City

online sellers. The researchers aim to provide data and

information and determine its significant influence in opening

new business opportunities for Filipinos quarantined by COVID-19.

1.2 PROBLEM STATEMENT

To get a better understanding on what it is like to start a

business on social media, this study aims to identify the

Bp. Pueblos Senior High School

influencing factors that affect people’s decisions in

establishing an online business using the Facebook platform as

their primary marketing outlet. This research intends to provide

answers and contribute to the additional knowledge apropos to the

1.) What drives sellers to initiate and engage in an online

their business in this platform?

3.) How does establishing an online business relatively affect

the overall life of the sellers?

1.3 SIGNIFICANCE OF THE STUDY

The findings, which this study will reveal, may benefit

 Filipinos. To gain knowledge on the widespread of online

selling community and how this provides employment and

income to Filipinos who either have lost their jobs or are

Bp. Pueblos Senior High School

in need of money to support the needs of their household.

This research will allow them to gain insight as to why

people make use of their platforms for business and profit

 Aspiring Online sellers. The information and data of the

research will provide them an idea on whether to pursue an

online business and understand the factors that

contributes to the formation of their idea and highly