ADVANTAGES AND CHALLENGES TO ONLINE SELLER DURING THE

NEW NORMAL AMONG SELECTED STUDENTS

IN ST. CECILIA’S COLLEGE

A Business Research

Presented to the

Faculty of St. Cecilia’s College-Cebu, Inc.

Highway, Poblacion, Minglanilla, Cebu, Philippines

In Partial Fulfillment

of the Requirements for the Degree of

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN FINANCIAL MANAGEMENT

By:

Aliponga, Ralph Vincent Q.

Geonzon, Mery Rose F.

Geraldez, Marife A.

Sacares, Joshua E.

2022
 TABLE OF CONTENTS

Page

SECTION 1: INTRODUCTION TO THE STUDY

Introduction……………………………………………………………………....1

Statement of the Problem………………………………………………………...3

Significance of the Study………………………………………………………...4

Scope of the Study……………………………………………………………….5

Definition of Terms………………………………………………………………5

Review of Related Literature………………………………………………..…...6

Theoretical Background and Framework of the Study……………………….….9

Methods of the Study…………………………………………………………….14

Source of Data……………………………………………………………14

Sample Selection…………………………………………………………15

Statistical Methods……………………………………………………….17

Limitations of the Study………………………………………………………….18

References………………………………………………………………………..19
 INTRODUCTION

Now a days the life style of the people is different. People feel uncomfortable and

time consuming for going crowded markets. So, E-Shopping is a boon as it saves lot of

time. Online shopping is a process whereby consumers directly buy goods, services etc.

from a seller without an intermediary service over the Internet. Shoppers can visit web

stores from the comfort of their house and shop as by sitting in front of the computer.

Online stores are usually available 24 hours a day and many consumers have internet

access both at work and at home. So, it is very convenient for them to shop Online. One

of the most enticing factors about online shopping, particularly during holiday season is,

it alleviates the need to wait in long lines or search from a store for a particular item.

Variety of goods are available in online. So, the researcher wants to know the preference

of the consumers. So, one hundred respondents were met and data were collected

regarding their preference towards shopping online.

Online shopping has become a popular way of shopping for consumers. This new

innovation for shopping not only brings a great number and variety of merchandise to

potential consumers, but also offers a numerous business activities and huge market.

Social media is no longer known only as a media that facilitates its users to present

themselves on the internet but also as a media to sell some products to consumers known

as an online shop. Because of the numerous advantages and benefits, more people say

that they prefer online shopping over conventional shopping these days (Singh &

Kashyap, 2007). Online shopping or marketing via internet is the use of technology

(computer) for better marketing production.

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 Online shop on Instagram now develops its function along the updated and the

increase of people's needs. Companies that sell stuffs such as clothes, makeup, shoes have

learned to use the recent technologies like Instagram in order to be able to reach the

potential buyer since almost everyone uses social media these days. Over these past years

E-commerce has developed very fast because of many advantages related to buying on

internet because of easier transaction and lower cost as compared to other types of

shopping. Through online shopping everyone can buy faster, have more alternatives and

can order various product of services with lower price (Cuneyt Koyuncu; Gautum

Bhattacaharya, 2017).

The researchers are taking up Bachelor of Science in Business Administration,

online seller caught the interest of the researchers since online shopping is one of the

social realities in our country today. Researchers evaluated that pandemic brought

challenges in the midst of the pandemic. Government subsidies are beneficial to

strengthen economic recovery in this time of crisis. The researchers believe they would

be successful in conducting the study.

The researchers have found out through the study that economic recovery through

different initiatives that government provided gives importance to the well-being of the

people. That amidst the current covid 19 pandemic Filipino has that strong foundation to

live a life for their selves and their community.

2
 Statement of the Problem

This study aimed to assess the stand of 100 respondents on the beneficial part or

online selling to the lives of the students in St. Cecilia's College. Specifically, the

researchers sought answers to the following questions:

1. How may the profile of students be described in terms of:

1.1 age;

1.2 gender;

1.3 educational attainment;

2. Does selling using social media a way for a business to grow?

3. Does students happy when they shop online?

4. Does students have any challenges with the checkout method?

5. Does students always shop online?

6. How would you rate your overall online shopping experience?

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 Significance of the Study

The researchers believe that this study will not only yield data that will be helpful

to them, more so to the following groups of people:

To Online Sellers. This will teach them on how to inform the community about

the advantages and challenges with online selling. And provide them with immediate

solutions to this study.

To the Students. It may serve as a guide to those students that will undertake

similar studies. And it can be their source of information to come up with the idea of

entering this kind of firm of business.

To the Future Business Man/Business Women. They can have this study as the

basis if they want to build a business. And it will help them to become more

knowledgeable in this field of business.

To the Consumers. The result of this study will let them understand the different

benefits and disadvantages of online selling. To correct their perception about the online

sellers.

To Present Researchers. As ABM students, this study is beneficial to the present

researchers, as it helps them to practice their learnings that they gained on their course.

To Future Researchers. This study will help the future researchers as it will serve

as their secondary data for their studied related to this research.

4
 Scope of the Study

The study covers the selected students of St. Cecilia's College. The main objective

of this study is to determine the advantages and challenges to online seller during the new

normal among selected students in St. Cecilia's College.

Moreover, this study considered every respondent personal information and data.

Each respondent is given the same questionnaires. All the data gathered in this study are

all true followed the research code of ethics

Definition of Terms

The following terms are further defined either operationally or conceptually:

Students - Refers to the respondents of the study who were studying at St. Cecilia's

College, individual taking up their tertiary level.

Social Media - are websites, programs and applications that emphasizes on

communication, connection, and even content sharing.

Online Shopping - is a form of electronic business that allows consumers to purchase

products or services from a direct seller over the Internet.

Online - The device or system is linked to a particular or certain network.

St. Cecilia’s College- Cebu, Inc. - is a private educational institution in Minglanilla,

Cebu
 Review of Related Literature
5
Advantages

Internet makes life simple and innovative. People are doing business online and

trade has become easier and faster due to this. Internet provides new ways to promote

business. Website becomes the essence of online business as to show their services and

products. Internet gathers all competitors and consumers in one place. It brings new lane

to promote, advertise products and services in market (Barry Silverstein, 2002, p.3)

Because of the power of the internet, millennials or generation Z are the most

influential people in online selling. Some social media addicts have become online

sellers. They simply purchased the items wholesale, photographed them, and posted them

on social media with their contact information to sell. Being a seller is a simple; you

simply need to monitor your account and respond to inquiries. There is no need to rent a

space because it can be done at home. In this type of business, you do not need to issue

an official receipt or register your business name with DTI because there is no specific

regulation or protection in place at the moment. It is entirely based on trust. Make sure

that the online seller has various proof of shipment or transactions record of various

clients and it is posted at the seller's online page or personal account. Also it has lots of

positive comments and satisfied clients on the page/account and minimal complaints

(Motoomull, 2017). Online buying and selling has become an important part of many

people lives. Students and present rely on the internet to acquire and sell textbooks at

affordable prices, virtual stores allow people to shop from the comfort of their homes

6
without the pressure of a salesperson, an online marketplace provide a new and more

convenient venue for the exchange of virtually all types of goods and services

(Shahidan,2016). Online buying, the rate of diffusion and adoption of the online buying

amongst consumers is still relatively low in India. In view of above problem an empirical

study of online buying behavior was undertaken. Based on literature review, four

predominant psychographic parameters namely attitude, motivation, personality, and trust

were studied with respect to online buying. The online buying decision process models

based on all the four parameters were designed after statistical analysis. These models

were integrated with business intelligence, knowledge management and data mining to

design Behavioral Business Intelligence framework with a cohesive view of online buyer

behavior (Srivastava, Lanjewar 2011)

On the other hand, online buyers don't always need to go to the mall to get the

items they want. The product can be delivered via meet-ups or directly to your door

(Motoomull, 2017). Market access is simple. In many ways, entrepreneurs' access to the

market has never been easier. Online marketplaces like eBay and Amazon enable anyone

to set up a simple online shop and sell products in minutes (Nibusinessinfo.com). There is

no time limit for opening. Up selling and cross selling are two key sales strategies you

can use to increase your online sales. Offering products that are directly related to the

products that customer has just chosen to purchase is an example of up selling. Products

with a low cost so that the customer does not have to think about it, and they usually

complement the purchase they have already made, making it an easy buying decision.

You encourage the average basket value to rise by doing so. You can also employ a range

of powerful marketing initiatives on your website to encourage interest from new

customers such as call's to action and special, time sensitive offers. These encourage

prospects to take action whilst on your site and therefore increase your conversion rate

from visit or to sale (Williamson, 2013).

Challenges

Technical issues such as downtown internet websites of your outages are the

equivalent of losing power in a tradition e commerce site involves specialized technical

skills, but many of these and processing sales in a brick and mortar environment.

Nevertheless, expertise to overcome this potential problem area. As online security it’s

wants to maintain a positive online business reputation (Bush, 2017).

An e-commerce site will always have an impersonal quality to it, because a real

person is not able to provide a free sample or greet your customer walking through your

online door. Many sites have addressed this challenge by offering the ability to chat

online with a sales representative, video chats and yet another visual touch with an extra

element of personal service. Another promising approach is to provide a phone number to

facilitate a personalized conversation. (Bush, 2017).

Problem may encounter in online selling. Cybercrime online sellers try very hard

to be trustworthy. But the most online shoppers in the country all online retail entities are

seen as a whole. So, if one seller on a market place sells fake goods, the entire market

place becomes a trap in the eyes of online buyers. Upon closer inspection you will notice

cybercrime is not restricted to sellers (Browntape, 2016).

 Theoretical Background

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Maslow Hierarchy of Needs

This study is supported by the theory of Maslow's hierarchy of needs. In

discussing online selling theory, personal selling can involve an artificial intelligence

with content geared to solving the customer's problem. One of the foundational theories

related to online shopping comes from psychology circles, with the famous Maslow's

Hierarchy of Needs, as noted by Digital.com. Abraham Maslow introduced his five levels

of human needs in a 1943 paper. He indicated that people have five basic needs, which

they address in order of priority: (Physiological needs, Safety and security, Social needs,

Self-esteem and Self-actualization.).

Physiological Need

These are basic physical needs like drinking when thirsty or eating when hungry.

According to Maslow, some of these needs involve efforts to fulfill the body’s need for

homeostasis; which is maintaining consistent levels in several bodily systems (for

example, maintaining a body temperature of 98.6°). Maslow considered physiology to be

the foremost essential of needs. If someone is lacking in additional than one need, they

are likely to undertake to satisfy these physiological needs first. For instance, if someone

is extremely hungry, it is hard to specialize in anything besides food. Another example of

a physiological need would be the necessity for adequate sleep.

Safety & Security

Safety and security need our about keeping us from harm. These needs include

shelter, job security, health and safety environments. If a person does not feel safe in an

environment, they will seek to find safety before they attempt to meet any higher-level
9
needs. This security needs are 11 important for survival, but they are not as important as

the basic physiological needs. For example, in the midst of Covid-19 pandemic online

seller are safe because they can work at home without interacting to other people

physically.

Social needs

Social needs advanced our tribal nature. These are the needs for belonging, love,

affection as well as for relationships with family and friends and companionship. This

need is met through pleasing and fulfilling relationships with others. A pleasing and

fulfilling relationship would imply acceptance by others. Having satisfied their basic

physiological and security needs, people can seek relationships from which the need for

love and belonging can be met. Online sellers interact with many different types of

customers that’s why social needs is about their social relationship to them.

Esteem needs

After the more basic needs have been satisfied, esteem needs become important to

an individual. Once an individual has satisfactory met their need for love and belonging,

they can begin to develop positive feelings of self-worth and self-esteem. Esteem needs

are for a higher position within a group and act to foster pride in their work and in
themselves as individuals. These needs include self-esteem, respect, achievement,

confidence, recognition and accomplishment.

Self-actualization Needs
10

Self-Actualization is the highest level of Maslow’s hierarchy. This level of need

pertains to what a person’s full potential is and realizing that potential. “What a man can

be, he must be” is the basis of the perceived need for self-actualization. Maslow describes

this as the desire to become everything that one is capable of becoming.

Demand Theory

The Demand Theory, authored by Alfred Marshall (1890), is a study of an

economic principle regarding the connection between consumer demand for goods and

services and prices in the market. Demand theory forms the basis for the demand curve,

which relates consumers' wants to the number of goods available. As more of a good or

service is on the market, demand drops then does the equilibrium price. To put it simply,

the price and output of a good are determined by supply and demand, which act like

“blades of the scissors” in determining the price.

It is a theory that explains the interaction between the sellers of a resource and the

buyers of that resource. The theory defines what results in the relationship between the

availability of a certain product and the demand for that product. The law of demand says

that at a higher price, consumers will demand less of an economic good. The law of
supply says that at a higher price, traders will supply more of an economic good. Unlike

the law of demand, Time is important to supply because suppliers must, but cannot

always, react quickly to a change in demand or price. So, it is a must to try and decide

whether a price change that is caused by demand will be temporary or permanent.

This theory can be summarized into four key points:

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● It describes the way that changes in the quantity of a good or service demanded by

consumers affects its price in the market,

● It states that the higher the price of a product is, all else equal, the less of it will be

demanded, inferring a downward sloping demand curve.

●Likewise, the higher demand that occurs, the higher the price will be for a given supply.

●Demand theory places a priority on the demand side of the supply-demand relationship.

Opportunity–Based Entrepreneurship Theory

The opportunity-based theory is anchored by names such as Peter Drucker and

Howard Stevenson. An opportunity-based approach provides a wide-ranging conceptual

framework for entrepreneurship research (Fiet, 2002; Shane, 2000). Entrepreneurs do not

cause change (as claimed by the Schumpeterian or Austrian school) but exploit the

opportunities that change (in technology, consumer preferences etc.) creates (Drucker,

1985). He further says, “This defines entrepreneur and entrepreneurship, the entrepreneur

always searches for change, responds to it, and exploits it as an opportunity”. What is

apparent in Drucker’s opportunity construct is that entrepreneurs have an eye more for
possibilities created by change than the problems. Stevenson (1990) extends Drucker’s

opportunity-based construct to include resourcefulness. This is based on research to

determine the differences between entrepreneurial management and administrative

management. He concludes that the hub of entrepreneurial management is the “pursuit of

opportunity without regard to resources currently controlled.

 Online Seller

Demand Theory Maslow's hierarchy of needs Opportunity–Based Theory

(Consumer Demand) (Seller’s Opportunity)

Physiological needs Safety and security Sociall needs Esteem needs Self-actualization needs

Figure 1: Theoretical Framework of Online Seller

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 Methods of the Study

Research design

This study will use the descriptive-analytical method which is designed for the

researcher to collect and gather information about the pre-existing situations in a midst of

pandemics. This method enables the researcher to interpret the theoretical meaning of the

findings.

According to (Glass & Hopkins, 1984), descriptive research involves gathering

data that describe events and then organizes, tabulates, depicts, and describes the data

collection. Descriptive studies are aimed at finding out "what is," so observational and

survey methods are frequently used to collect descriptive data (Borg & Gall, 1989). Thus,

it is clearly stated above that this method enables the researcher to assess and gather

significant information about the beneficial impact and challenges of online selling on the

students in St. Cecilia’s College-Cebu, Inc.

Thus, the researcher provides a questionnaire that is divided into three pages.

Page one consisted of the demographic data for the respondent’s profile, including the

students’ age, gender, and educational attainment. Page two and three consist of 10

questions on each page where the respondents were asked to check the box about the

challenges in purchasing online, security of personal information, challenges in online

transactions, advantages in shopping online, and overall experience.

14
Research Environment

This study was conducted among the selected students in St. Cecilia’s College-

Cebu. Inc. located in Natalio B. Bacalso S National Hwy Minglanilla, Cebu.

Research Respondents

The respondents of this research will involve 100 selected students that engage in

online selling from different course attainment as samples from the whole population of

the College levels in St. Cecilia’s College- Cebu, Inc. The inclusion criteria will be male

and female college students from Business Administration, Criminology, Education,

Hospitality Management (HM), and Information Technology (IT).

15
Research Instrument

This study will utilize an online survey questionnaire. The survey questionnaire is

divided into three parts that consist of close-ended questions. The first page concentrated

on the personal profile of the respondents such as age, gender, and educational

attainment. The second page uses the Dichonomous questions that the respondents were

given two choices to choose about the experiences of online selling. And the last page

uses the Likert Scale questionnaire which is very crucial in measuring the respondent's

opinion and attitudes if they strongly agree or disagree regarding the advantages and

challenges in online selling during the pandemic and how does it impact the growth of

the business and profitability.

Research Procedure

Data Collection

The data gathering was done through a survey questionnaire to answer the

research problems. Thus, the data will be collected using an online survey questionnaire

and the researchers will be responsible to distribute or send via messenger or email the

questionnaire to the selected respondents for confidentiality.

Treatment of Data

The primary data collected in this study are subjected to certain statistical

treatments and analyses. The data will be tallied and tabulated for the interpretation of

findings. The scale presentation, analysis, and interpersonal of the data will be based on

the weighted mean as shown by the scale ranges as follows, ( Calderon, 1993).

16
 The researcher will use mixed statistical techniques and the methods were used

are the following:

1. For percentage computation is:

% = f / n x 100

Where: % = percentage

f = numbers of respondents for every item

n = total number of students

2. For weighted mean:

WN = TWF / N

Where: WN = stands for weighted mean

F = stands for frequency

W = stands for weighted

TWF = stand for weighted frequency

N = total number of respondents

17
The table of equivalent which is the basis of the interpretation of the data will be: ( Tan

2006 )

Weight Scale Verbal Interpretation

4.50 above 5 Strongly agree

3.50 - 4.49 4 Agree

2.50 - 3.49 3 Moderately agree

1.50 - 2.49 2 Disagree

Below - 1.49 1 Strongly disagree

Limitations of the Study

The use of an online survey questionnaire as a data collection instrument may

have limited the scope of this study because the questions were brief and focused on the

benefits and challenges of online selling in the new normal. Furthermore, this study only

included students from St. Cecilia's College-Cebu, Inc. who were selling online during

the new normal. Furthermore, due to the difficulty of selecting and identifying students

who were engaged in online selling during a pandemic, the sample population is

insufficient to generalize the results.

18
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19
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