The impact of online platform to the flower vendors of Dangwa

Sampaloc Manila during pandemic

Presented By:

Bruno, Jeffrey

Castillo, April

Encela, Kevin M.

Siglos, Andrew

Signe Anna Mae

Introduction

This chapter introduce the impact of online platform to the flower vendors of Dangwa

Sampaloc Manila during pandemic. The businesses here in manila use the internet

in selling their product. To succeed at online selling, you'll need more than a website

and product images. You’ll need passion, skill, and marketing know-how. The best

part is that there are several tools available to assist you in making your online

business. This study is to discuss the effectiveness of online selling amidst covid 19

pandemic manila and also identify the main problem of this research. Social media

platform becomes center of marketing in this age.

Background of the study

The covid 19 pandemic is a huge problem here in manila because many businesses

was affected by the virus and many people used social media to sell or to promote

their product. Many establishments were force closed since the virus was very

contagious. Dangwa flower shop is located at Sampaloc manila, Dangwa Flower

Market, popularly known as the Bulaklakan ng Maynila and it is a fresh flower market

in Sampaloc area. The market is made up of a number of small, independently

owned shop and street sellers that sell flowers wholesale and retail at prices that are

50 to 90 percent lower than those found in Metro Manila's flower stores. The market

is focused on Dos Castillas Street near the intersection with Dimasalang Road, and

extends to other streets such as Lacson Avenue and Maria Clara Street. Every

valentines and all soul`s day people go there to buy flowers because it’s cheaper

and the quality of product is good.

Statement of the problem

This study is to determine the effectiveness of online platform by the flower vendors

of Dangwa Sampaloc manila during the pandemic.

Lack of proper platform between customer and the seller, since pandemic,

purchases from some businesses were made online. It became a problem because
 the customer has no certainty on buying good quality products without seeing the

products personally.

Products bought online should have warranty and/or refunds/return policy to the

customer to ensure the quality of their products.

Theoretical Framework

Theory of Buying

Customer Buying Formula

Satisfaction .

Social media
 Theory of buying - The central idea of consumer behavior theory is that purchasing

behavior is consistently repeated and likely to building a familiar purchase routine in

order to save time and simplify the decision-making process.

Buying formula - The theory is based on the fact that there is a need or a problem

that requires a solution, which leads to a buying choice.

Social media - A set of theories focusing on how socially important information

might be marketed is known as social marketing theory.

Customer satisfaction - Customer satisfaction is a factor that determines how

satisfied consumers are with a company's business, services, and skills.

Social Media

Conceptual Frame Work

Input Process Output

 Strategy  Questionnaire  Effectiveness of online

 Online payment  Survey selling

 Online advertisement
Research Objectives

This research is to describe the online platform used by the flower vendor in

Sampaloc manila

It aims to answer the following question:

1. what are the advantages and disadvantages of online selling?

2. what are the demographic profile of the respondents?

3. are the strategies used by the flower vendors is effective or not?

Hypothesis

The strategies used by flower vendors are effective to gain more customer using the

online platform.

Significance of the study

This study is to determine the effectiveness of online platform used by

Dangwa flower shop. this research could highly beneficial to the following

1. consumer – This study is useful for the consumer to buy wisely to the flower

vendors of Sampaloc manila.

2. seller – This study will help to gain more customer.

3. researcher – this study will help develop and analytical skills of the researchers it

also can build more knowledge in this study.

4. Future researcher – The result of this study will help the student to get more

idea.

Scope and limitation

This research to determine the effectiveness of online platform by the flower vendors

towards to Sampaloc manila. The aspects investigate the online platform used by

flower vendors.

This research covers only Sampaloc manila and the only respondents of this study

are both male and female.

Definition of terms
1. online selling - Selling or buying an item using the internet. E-commerce, on the

other hand, encompasses the selling and purchase of non-physical things including

services and digital goods.

2. flower vendor – a person who sell a product or goods

3. consumer – a person who buy the product and services

4. online platform – to define the as a digital service between seller and customer

using the internet

5. Seller – a person who sell the products or goods

Chapter 2

Review of related Literature

Literature:

Foreign:

IMPACT OF ONLINE SELLING ON PHYSICAL RETAIL IN INDIA

In developed nations, retail industry has shown a growing trend in online shopping.

Based on the statistics, the shoppers purchasing online has increased rapidly and as

well as the quality of their purchases has given an additional advantage (Monsuwé

et al., 2004). The change has started in 1990 when an internet and e-commerce

propelled up suddenly and transformed the environment of retail sector (Chen &

Chang, 2003). The online industry has complemented and substitute to online
shopping (Rezaei et al., 2014). The consumers are using internet for not only online

purchases of goods and services but also achieve knowledge for prospective buyers

https://d1wqtxts1xzle7.cloudfront.net/50305075/7IMOct-4135-with-cover-page-

v2.pdf?

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WFt-p9GYr~z4eX2JbwyLquTpo-ttWxkIh6bEfvQHNpi5J9-4XY-TlXD9YZ8-

Q4RwntbOHjBNnp5hcTBLF3J~XLdEmN9S3zV1bFfgOKDyERsmVu8pgFwdfRvJ3hT

QRu5dEpcmeLC66-mki1CKJDrX5N3iShle7O6X8R~xQFvtztdoaSHzxH3M9-

ksGT0aW1pdB3BqOr9KWpFR5S7ubYMC60hso7R~NR-

TZ12LJh~ioVsmHK0Eg__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA

Plane Ticket Price Dispersion in the Online Selling System in Poland

Many authors have studied the influence exerted by tourism on the economy. Today,

Information and Communication Technologies (ICT) are an important factor

influencing competitiveness in the tourism sector and consumers’ decision-making

concerning tourism purchases. Along with the expansion of the European Union, the

revolution in passenger air transportation has spread over new member states in

Central and Eastern Europe, including Poland. The authors of this study analyzed

ticket prices on Internet websites that aggregate offers from different carriers and on

the websites managed by the carriers themselves, specifically studying offers for the
most popular flight connections from F. Chopin airport in Warsaw to London,

Frankfurt, Munich, and Paris. For each connection, the study examined flights

operated by the Polish carrier, i.e., LOT Polish Airlines, and by a carrier originating

from a destination country. The analysis of the particular coefficients illustrating the

price dispersion for each flight operated by a foreign carrier in comparison to the

offer from LOT Polish Airlines points to the conclusion that the tickets offered by the

latter were marked by a much narrower price dispersion in contrast to the

connections offered by foreign carriers on the same route.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2464064

Sales Role Play: An Online Simulation

The online role play simulation as described in this article addresses critical skills as

identified by practitioners and includes background materials, buyer and seller

profiles, a sale/no-sale decision matrix, as well as a grading rubric, thereby

facilitating a variety of selling scenarios. Both the buyer and the seller have integral

roles in the outcome of the sales process in this role play, with as much emphasis

placed on either role, enabling a more in-depth learning opportunity for students to

clearly understand the buyer's motivations. This interactive pedagogical online tool

enables instructors to align their sales curriculum content and pedagogy with

practitioners' needs, while facilitating the learning experience for the professional
selling student by simulating the role stress and ambiguity of the sales profession

and to actually employ adaptive selling techniques.

Local:

Impact of Online Consumer on Sales: The Moderating Role of Product and

Consumer Characteristics

This article examines how product and consumer characteristics moderate the

influence of online consumer reviews on product sales using data from the video

game industry. The findings indicate that online reviews are more influential for less

popular games and games whose players have greater Internet experience. The

article shows differential impact of consumer reviews across products in the same

product category and suggests that firms’ online marketing strategies should be

contingent on product and consumer characteristics. The authors discuss the

implications of these results in light of the increased share of niche products in

recent years.

https://journals.sagepub.com/doi/abs/10.1509/jm.74.2.133

Aiken, Leona S. and West, Stephen G. (1991), Multiple Regression: Testing and Interpreting

Interactions. Thousand Oaks, CA: Sage Publications

Effect of online product reviews on third parties selling on retail

Online retailers open their platforms to invite third-party sellers to sell directly on their

platforms for commissions. Considering that most consumers make purchase

decisions using online product reviews (OPRs) as a reference, we develop a game-

theoretic model to explore how OPRs impact a third-party seller’s decision to sell on
an open retail platform and the platform retailer’s profit. Based on two product

attributes—quality and fit—we distinguish two cases; quality dominates fit and fit

dominates quality. We find that, under symmetric reviews (i.e., reviews favoring

neither the retailer’s nor the third party’s product), higher credibility reviews

homogenize (heterogenized) products, thus intensifying (relieving) competition

between the retailer and the third party in the quality-dominates-fit (fit-dominates-

quality) case. However, even under asymmetric reviews, the third party cannot be

induced to sell on the retail platform until considering the quality of the retailer’s

review systems, which may lead to a platform effect on OPRs. The platform effect

strengthens the importance of reviews, so it may enlarge the product differentiation

created by asymmetric reviews. Particularly, when the platform effect and the review

asymmetry are high enough, the retailer can not only induce the third party to sell on

its platform but also benefit in both the quality-dominates-fit and the fit-dominates-

quality cases.

https://www.sciencedirect.com/science/article/abs/pii/S1567422319300778

Designing online selling mechanism: Transparency level and prices

Sellers increasingly compete with innovative Internet-based selling

mechanisms, revealing or concealing market information. Transparency

strategy involves design choices by firms that influence the availability and

accessibility of information about products and prices. We develop decision

support models for suppliers to set prices for online mechanisms with

different transparency levels. We then empirically analyze the price levels

set by airlines across transparent and opaque online travel agencies. Our

results suggest that airlines can increase profit by increasing price

differentials or influencing OTA transparency differences. We also discuss

application generality and limitations of our results.

https://www.sciencedirect.com/science/article/abs/pii/S0167923607002205

Review of Related Studies

Foreign:

The Impact of Online Consumer Reviews on Online Sales: The Case-Based

Decision Theory Approach

In this paper, we conduct a two-stage study to examine whether and how

consumer reviews influence other consumers. In the first stage, we utilize a

difference-in-difference specification to identify the causal effect of online

reviews on sales and apply the proposed model to electronic appliances on

a large Chinese retail website. In the second stage, we design a

computational model with agents guided by case-based decision theory and

we calibrate the simulated market to the real data. The literature identifies

two channels for the effect of reviews on sales: the awareness effect and the

persuasive effect. We find evidence for both effects, but we find the

persuasive effect is slightly larger than the awareness effect. This suggests
that consumers who have had a bad experience should not hesitate to leave

bad reviews. We also find evidence that consumers are concerned whether

reviews are genuine, but that the method used by this website of tying a

“user grade” to volume of previous purchases may be an effective way of

communicating whether a reviewer is a genuine customer. We use the

computational model to predict unobserved consumer behavior:

consumers’ loyalty. We find the loyalty of artificial consumers is relatively

high but falls. We also believe the case-based decision theory simulation

approach may help estimate other unobserved consumer behaviors.

https://link.springer.com/article/10.1007/s10603-020-09464-y

Digitalization and International Online Sales: Antecedents of Purchase Intent

Online relationships between consumers and online retailers continue to

grow, along with marketers’ need for knowledge of the complexity

embedded within these relationships. While studies show that traditional

behavior such as trusting the counterpart (cf. Morgan and Hunt 1994) is as

important as ever, such behaviors often take new forms as information

comes from a multitude of sources (Jacobsen 2018; Lindh and Lisichkova

2017). Not only do consumers want to easily find trustworthy information

to evaluate products (Kostyk, Leonhardt, and Niculescu 2017), they also

want user-friendly stores and access to international products (Safari and

Thilenius 2013). These factors postulate a market of great opportunities,

but also pose intriguing challenges for companies that operate online,

especially because national borders appear to matter less for online

consumers (Cyr 2008).

https://www.tandfonline.com/doi/full/10.1080/08961530.2019.1707143

Online Buying, Selling, and Delivery in Phnom Penh

This paper describes a complex global sales and logistics network based in

Phnom Penh, Cambodia, which utilizes Internet tools (particularly Facebook) as

well as a suite of offline tools such as feature phones, paper receipts, and

motorcycles to facilitate the buying and selling of clothes and other commodities.

Against the gap or import models that sometimes limit HCI understandings of

computational change in non-Western environments, we argue that the

consumers, business owners, delivery drivers, and call center staff play active

and formative roles in producing this infrastructure, integrating new tools into

older cultural practices and determining how they work within the limits and

conventions of the environment. We argue that resourceful and imaginative

activities such as these constitute a form of creative infrastructural action and are
central to the ways that new tools circulate in the world, though they often go

unrecognized by HCI as innovation.

https://dl.acm.org/doi/abs/10.1145/3025453.3025889

Local:

Designing intelligent sales-agent for online selling

Online purchase from e-stores is getting popular as the prevalence of electronic

commerce. At current stage, most e-stores resemble vending machines rather than

real stores because they lack clerks to persuade prospects into buying products and

to bargain with the customers for making a good deal. This research designs an

easy-to-use and autonomous sales-agent to act as a virtual clerk in an e-store, and

then investigates whether an e-store with this virtual clerk could increase customers'

product evaluation and seller's surplus. This research starts with proposing a new

approach to enable the intelligent sales-agent, named Isa, to dynamically adopt

different persuasion and negotiation strategies according to different characteristics

of human buyers. Additionally, the agent can learn to execute beneficial strategies

by itself without seller's instructions. A field experiment was conducted to assess this

agent. The experimental results reveal that Isa can autonomously persuade buyers
into increasing their product evaluation and willingness to pay more money for

product. Isa can also improve sellers' surplus and buyers' satisfaction with e-store.

https://dl.acm.org/doi/abs/10.1145/1089551.1089605

Barto, A. G., Sutton, R. S., and Anderson, C. W. Neuronlike Elements That Can Solve Difficult Learning

Control Problems. IEEE Transactions on Systems, Man, and Cybernetics, 13 (1983), 835--846.]

Direct Selling, Reselling, or Agency Selling? Manufacturer’s Online

Distribution Strategies and Their Impact

We investigate a manufacturer’s three possible online strategies while the

manufacturer also distributes its product through an independent retailer in a

traditional channel. Under direct selling, the manufacturer sells its products to online

consumers directly. Under reselling, the manufacturer sells its product through an e-

tailer. Under agency selling, the manufacturer sells its products to consumers

through an online agent’s website and pays the agent a commission fee. We show

that it is optimal for the manufacturer to choose direct selling if the operating cost for

the online channel under direct selling is sufficiently low relative to that under

reselling as well as the online agent’s commission fee. Similarly, reselling through an

e-tailer is optimal to the manufacturer if the operating cost for the online channel

under reselling is sufficiently low. Furthermore, agency selling should be chosen if

the online agent’s commission fee is sufficiently low. However, a strategy with a low

online cost (including the operating costs under direct selling and reselling, and the
commission fee under agency selling) may lead to a low profit for the traditional

retailer, which eventually causes a low total profit for the supply chain. Nonetheless,

consumers generally benefit from the manufacturer’s optimal online distribution

strategy because of low prices and high quantities.

https://www.tandfonline.com/doi/abs/10.1080/10864415.2020.1715530

Customer Satisfaction its impact on the future costs of selling

Although scholars have established that customer satisfaction affects different

dimensions of firm financial performance, a managerially important but overlooked

aspect is its effect on a firm’s future cost of selling (COS), that is, expenditures

associated with persuading customers and providing convenience to them.

Accordingly, this study presents the first empirical and theoretical examination of the

impact of customer satisfaction on future COS. The authors propose that while

higher customer satisfaction can lower future COS, the degree to which a firm

realizes this benefit depends on its strategy and operating environment. Analyzing

almost two decades of data from 128 firms, the authors find that customer

satisfaction has a statistically and economically significant negative effect on future

COS. While the negative effect of customer satisfaction on future COS is weaker for

firms with higher capital intensity and financial leverage, this effect is stronger for

more diversified firms and for firms operating in industries with higher growth and

labor intensity. The authors also find that these effects may vary across two

components of COS, cost of persuasion and convenience.

https://journals.sagepub.com/doi/abs/10.1177/0022242920923307
Aaker, David A., Day, George S. (1986), “The Perils of High-Growth Markets,” Strategic

Management Journal, 7 (5), 409–21.

Chapter 3

Methodology

This chapter describes the methodology used for the study. The purpose of this

study is to determine the impact of online platform to the flower vendors towards

sampaloc Manila. The research design used will define the type of research locale,

description of the subject, population frame and sampling scheme, instrumentation,

data gathering procedure and statistical treatment of data.

Research design

A descriptive research method was used in this study. Descriptive research involves

observing and describing the behavior of a subject without influencing it in any way.

Descriptive research can be defined as a purposive process of gathering, analyzing,

classifying and tabulating data about prevailing conditions, practices, beliefs,

processes, trends and cause effect relationships and then making adequate and

accurate interpretation about such data with or without the aid of statistical methods.

The results from descriptive research can in no way be used as a definitive answer

or to disprove a hypothesis but, if the limitations are understood, they can still be a

useful tool in many areas of scientific research.

This study is about the impact of online platform to the flower vendors towards

Sampaloc manila. A descriptive, survey research design was chosen to investigate

the study. The term “survey” is commonly applied to a research methodology

designed to collect data from a specific population, or a sample from that population,

and typically utilizes a questionnaire or an interview as the survey instrument.

Selection of participants

This research will focus at Sampaloc manila area only. The respondents of the study

will be the both male and female of the flower vendors.

Sampling design

Ratings Frequency Percentage

Very Poor

Poor

Good

Very Good

Outstanding

Sampling type

Probability sampling is a sampling approach in which a researcher uses a method

based on probability theory to select samples from a larger population.

Simple Random Sampling

• Each and every element/respondent in the population is given equal chance of

selection.
Sampling size

In this study, we used Slovin’s Formula to compute for the sample size that will be

used in determining the number of respondents for the survey. Slovin’s Formula is a

random sampling technique formula to estimate sampling size.

n= N

1 + N (e) ² Where:

n = 2,305 n = no. of samples

1 + 2305 (.10) ² N = total population

e = error margin / margin of

error

n = 95.84

Data collection method

This study, the primary data from the survey questionnaire distributed to the

respondents. The researchers also visited actual to support the data gathered to

observe the flower vendors in dangwa Sampaloc manila.

Research instrument

The researchers used actual survey to the flower vendors in dangwa Sampaloc

manila. The rating scale survey questionnaire consists the demographic profile and

geographic of the respondents. Rating scale will be used to determine the age and

location of the respondents towards dangwa Sampaloc manila.

Statistical Treatment of Data

The following statistical procedures were used to interpret the data gathered from

the respondents of the study.

Simple Percentage

F
P= (100)
N

Where:

P= Percentage

F= Frequency for each category

N= Total Number of respondents

100= Constant multiplier

 Chapter 4

Analyzing and interpretation of data

This study is to analyze the result of our survey towards to flower vendors in

Sampaloc manila. These are the following table:

Ratings Frequency Percentage

Very Poor 8 8.43%

Poor 12 12.64%

Good 25 26.31%

Very Good 25 26.31%

Outstanding 25 26.31%

This table shows how the respondents feel about the services of the flower vendors

on online selling.

Table 2

Demographic profile

Respondents Frequency Percentage

 17-21 Years old 10 10.52%

22-27 Years old 32 33.69%

28-35 Years old 22 23.16%

36-40 Years old 15 15.78%

41 above 16 16.85%

Table 2 shows that ages 22-35 years old are the highest number of respondents

because this age group belongs to the working class which makes them the busiest

persons and mostly uses the internet as main platform in buying.

Table 3

Which is the best online platform used for selling?

Online platform Frequency Percentage

Facebook 47 49.47%

Instagram 21 22.11%

Youtube 10 10.52%

Twitter 11 11.58%

Tiktok 6 6.32%
Table 3 shows that Facebook is the most commonly used online platform for selling

products and services followed by Instagram, twitter, youtube and tiktok.

Chapter 5

Summary of Findings

The first table shows that people using the internet or online selling platforms are

satisfied of buying or acquiring flowers in the comfort of their own home. Our findings

also show in table 2 that ages 22 to 35 years old or those people that belongs to the

working class are the majority of users or buyers online. Social media apps are the

most used platforms in advertising and selling products and services which the likes

of Facebook tops the list.

Conclusion

Online platforms is the new trend in buying and selling products and services

nowadays. Due to the pandemic, online selling become popular for most people

because of the need to stay home and lockdown being implemented by the

government. Therefore, online selling is one of the top reason for the flower vendors

in the dangwa to survive the crisis brought by the pandemic. Flower vendors need to
learn how to tap in to the network of online platforms in order to market their

products.

Recommendation

For the future researchers, we recommend to conduct a research regarding a

product or service during or before a certain occasion takes place for them to know

more specifically how people buy. This research paper can be adopted by the future

researchers to use as a reference for their study. This study can be a guide for

sellers of products or services on what space or platforms they can sell effectively

and efficiently.