Professional Documents
Culture Documents
Amera Gumama
aig23079@imcc.edu.ph
Shairmaine Quiros
saq32667@imcc.edu.ph
October 2022
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CHAPTER 1
INTRODUCTION
This chapter includes the background of the study, statement of the problem, significance of
the study, theoretical and conceptual framework, the limitations of the study, and definition of
terms.
changes in the way people do certain things. One of them is being able to trade online.
businesses or individuals over the internet. Ever since the pandemic hit us in 2019, more and
more people are opting to shop online since there are a lot of restrictions and community
guidelines to follow when going to certain places. Online shopping is also more convenient
for those who live in far flung areas who don’t have the proper access to malls and stores that
diversification have gained importance. The constant change in trends in the global market
has made the corporate environment unpredictable and dynamic. The importance of
business. The development of numerous business platforms was made possible by the
internet's evolution. One of the most popular activities and profitable businesses has always
been shopping. Digitalization has facilitated more convenient and adaptable shopping
methods.
Owners must be aware of their customers' preferences for their business to succeed. It
will be easier for business owners to target customers who are willing to pay for their goods or
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services if they are aware of their preferences. This is a lot more efficient and cost-effective
method of reaching clients and bringing in revenue. Furthermore, people all over the world
are looking for the fastest, simplest, and least expensive way to complete a number of our
everyday duties as a result of their increasingly busy lifestyles. As a result of this situation,
some people no longer prefer using traditional stores to make a range of purchases. The
biggest advantage of online shopping is that consumers can make purchases from any location
without leaving their homes and can locate whatever they require by simply typing a few
phrases. Due to advancement in technology, the transactions through any digital media are
becoming a must for almost any company that provides a product or a service (Sun and
Finnie, 2004).
e-commerce in the Philippines grew by 11.8 percent from 2019 to 2020 and further increased
to 15.1 percent in 2021. Not only customers are shifting to the online market, but businesses
are also included. The Department of Trade and Industry (DTI) reported that the number of
online sellers increased from 1,700 in March 2020 to 93,318 in January 2021. Does this
impose a threat to the businesses in our locality? As stated in PSA’s Provincial Product
Accounts release in December of 2021 for Iligan City, there has been only 0.7% growth rate in
wholesale and retail trade in the year 2019-2020. This is significantly lower as compared to
However, as face to face classes commences, more and more businesses especially
restaurants and cafes are opening to cater their customer’s needs. Will this be a cause for
change in statistics? This study aims to determine what are the preferences of the respondents
This study will focus on determining the shopping preferences of the business
beverages. The researchers are dependent on the result of the survey that they will conduct.
The parameter of this research will only be in the Higher Education campus of Iligan Medical
Center College and will be conducted within the 1st semester of the academic year
Theoretical Framework
One of the underpinning of this study will be anchored on the Theory of Revealed
Preference by Paul Samuelson in 1938. According to the theory, customers' preferences can be
inferred from the things they buy when faced with various options, particularly when faced
with a range of price and income options. According to the theory, if a customer buys a
particular bundle of products, then, given constant income and price levels, that bundle is
"revealed preferred" to any other bundle that the consumer could afford. An observer can infer
The two most notable features of revealed preference theory are as follows: (1) it
offers a theoretical framework for explaining consumer behavior based on little more than the
assumption that consumers are rational and will make decisions that best further their own
goals; and (2) it stipulates necessary and sufficient conditions, which can be empirically
tested, for observed choices to be consistent with utility maximization. Three main
the revealed preference theory evolved. The weak axiom states that, for a given set of prices
and incomes, a buyer will always choose to buy one good over another (Zin, D. and Roper, E.,
2013).
Another theory that could be related to this study is Shopping Preference Theory of
Jagdish Sheth (1982). According to the theory, there are four fundamental concepts and
determinants that make up the shopping preference subsystem, which aims to incorporate a
is the term used to describe the relative shopping preferences of the evoked set of outlet
choices for a particular product class buying circumstance, such as shopping for food, apparel,
health care, insurance, etc. It can be used as the criterion construct by which we wish to
describe and forecast people's buying behavior because it is the output of the subsystem of the
shopping preferences. First, a buyer's preferences are only applied to stores that they consider
suitable for shopping for a specific category of goods. Second, as outlet preferences are
described as being relative, they should be assessed using constant sum approaches. Third,
based on unique sad market preference schedules, it is able to evaluate the strength of future
structures, ranging from dominance of a general outlet like the emerging one, depending on
the distribution of consumers' preference schedules for different outlets in different product
This theory was developed by Sheth and Frazier (1981) which consists of a vector of four
behavioral outcomes: planned buy, unplanned purchase, foregone purchase, and no purchase
behavior. It describes the purchasing behavior in relation to a certain product or service from
preferences. The first is socioeconomic setting, which relates to social circumstances like the
presence of family and friends when engaging in buying behavior as well as macroeconomic
variables like inflation, unemployment, and interest rates. The second factor is personal
setting, which pertains to the individual shopper's time, financial, and physical effort
considerations at the time of shopping activity. The third factor is product setting, which is the
marketing strategy used for the product category in the shop, including brand accessibility,
comparative pricing, unexpected sales promotions, and shelf placement of different product
possibilities. The fourth factor is in-store marketing, which describes unanticipated changes in
the store including the presence of a new brand, a change in where existing brands are located,
in-store promotions, and selective sales efforts by salesclerks that the customer could not have
foreseen. It must be emphasized that all four of these elements are unforeseen circumstances
that the buyer could not have foreseen while determining his buying preferences. They
therefore take place in the interval between the setting of buying preferences and intentions
Conceptual Framework
Figure 1.3 The Conceptual Framework of the study that will serve as the
The figure shows the relationship between the independent and dependent variables.
The independent variable includes the demographic profile of the respondents. The dependent
variable in the study is the shopping preference on food and beverages of the business
administration undergraduates of Iligan Medical Center College. The result of the dependent
variable of the study is determined by the demographic profile of the respondents that will be
Theory of Jagdish Sheth and Patronage Behavior Theory of Sheth and Frazier.
This study aims to determine the shopping preferences of the business administration
undergraduate students of Iligan Medical Center College on food and beverages. Specifically,
a. Age
b. Gender
c. Year Level
d. Course/Major
2. What is the preferred method of shopping for food and beverages of the
3. What are the factors that affect the shopping preferences of the business
beverages?
Center College with the food and beverages they bought on their shopping
a. Seller Service
b. Product Appearance
c. Product Quality
d. Product Suitability
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This study will focus on determining the shopping preferences of the business
beverages. The researchers are dependent on the result of the survey that they will conduct.
The parameter of this research will only be in the Higher Education campus of Iligan Medical
Center College and will be conducted within the 1st semester of the academic year
undergraduate students of Iligan Medical Center College who are officially enrolled in the 1st
The purpose of this study is to determine the shopping preferences of the business
beverages. The researchers will present the data and results of the study in order to benefit the
following;
The Microbusinesses. The findings of this study will benefit the local businesses near
the premises of Iligan Medical Center College as it will help them identify the
Center College on food and beverages; the result of the study will represent the
The Business Community. This study will contribute to the business sector of Iligan
City as it will be utilized as a reference for the consumer trends to effectively guide
businesses to plan out and evaluate how they can cater the needs of the consumers.
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The Future Researchers. The findings of this study may be used in conducting
beverages. Hence, it could serve as a reference for future related studies that share a
Definition of Terms
For a better understanding of the study, the terms listed below are defined in the context of
this research.
GDP. Quantifies the monetary worth of finished products, those used by consumers
Preferences. Choosing or special liking for one subject or thing rather than another or
others.
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Purchasing. The act of buying goods and services from a company or businesses.
Shopping. An act in which a consumer looks through the products or services offered
CHAPTER 2
This chapter presents the local and foreign review of related literature and studies on
traditional and online commerce that will help in the understanding of this study that are
sourced from different books, journals, articles and other existing dissertations that can be
Related Literatures
Commerce
In the traditional way of doing commerce, most businesses had to compete within a
single industry and often within a specific limited geographical area, but the internet is
breaking all these boundaries such as Amazon.com. The company began as an online
bookstore but quickly expanded into new products and markets such as music, videos, home
improvement supplies (Kaur, 2011). Simpler definitions of e-commerce include the use of
electronic communications and digital. Information technology used to generate, modify, and
aimed at generating value. It can be discussed further. For easier understanding, think of it as
the expansion of existing corporate processes into new ones. digital airspace It can be
considered the most optimistic use of information technology because businesses have been
able to increase internal efficiency thanks to it, and the result has been the expansion of their
E-Commerce
acquire and dispense goods and services. Since information is at the core of every economic
activity, it enables traditional business to be done more effectively through new means of
transmitting and processing information. The phrase "web-based business" refers to the
electronic conveyance of business information without the need of paper, such as through
EDI, email, E-Bulletin sheets, electronic cash transfers, and other organizational
developments. It not only automates time-consuming procedures and paper exchanges, but
also helps businesses transform their conventional business model and make the move to a
totally electronic environment (Bajaj and Nag, 2000). According to Tetelman (Na),
organizations use vital apps like email to communicate more effectively with their customers
and suppliers. The internet has evolved since the late 1990s into a significant influence in
changing how businesses operate (Wang, 2022). The exchange of information, goods, and
services over computer networks known as electronic commerce (e-commerce), has been
increased by 24.6 percent between 2016 and 2017, and it is anticipated to increase by 141.0
percent between 2016 and 2021 (International Post Corporation, 2017). Recognizing
e-potential commerce to help Philippine firms grow. The Philippine E-Commerce Roadmap,
developed by the Department of Trade and Industry (DTI), aims to increase the e-commerce
sector's contribution to GDP from 10.0 percent in 2015 to 25.0 percent in 2020 (Department
People all over the world are looking for the quickest, simplest, and least expensive
approach to finish a number of our everyday duties as a result of their increasingly busy
lifestyles. As a result of this situation, some people no longer prefer using traditional stores to
make a range of purchases. The biggest advantage of online shopping is that consumers can
make purchases from any location without leaving their homes and can locate whatever they
require by simply typing a few phrases. The significance of e-commerce in peoples' daily lives
is examined in this essay. In order to accomplish this, the article looked at secondary data
sources and performed a sample survey. It should be noted that the survey respondents are
from a variety of nations in Europe, the Americas, and Asia, and that the research is being
conducted in a global setting. The results of this study reveal that customers are still dubious
about the reliability of online purchases, the acceptability of payment options, and the use of
(2019).
A new method of marketing and selling numerous things, including books, has been
made possible by the development of the Internet and e-commerce. It is still unknown how
this change in retailing will affect costs and the environment as a whole. The energy and
packaging materials consumed by the logistics networks for product fulfillment and delivery
are some major problems of the new e-commerce business models, even while reductions in
stocks and returns generate significant environmental benefits. This study evaluates the costs
and environmental impacts of various delivery strategies while analyzing various logistical
networks. The analysis system boundaries are what define the overall evaluation of the
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E-commerce logistics are less expensive and have less of an impact on the environment,
especially when private automobile trips for shopping are taken into account. For best-selling
books, the return (remainder) rate is 35%. Costs and environmental impacts of the two
distribution options are equivalent when the need to return books is excluded (Scott
Related Studies
E-commerce in India
Rashmi Bansal (2013) examined the various sociocultural elements that influence the
customs, the rural-urban divide, regional languages, transportation, and logistics are among
the topics discussed. Time Savings, the convenience of buying at home, the availability of a
wide range of products online, and the sheer volume of consumers were some of the
numerous factors highlighted as supporting e-commerce. In the last several years, B2C
e-commerce in India has grown astronomically. The ability to offer a secure environment for
online purchasing and transactions is one of the primary factors contributing to ecommerce's
rising prominence (Grewal, Himani & Shivani, 2012). The Growing B2C online purchasing
popularity has created a number of new obstacles for e-commerce firms. Studying consumer
behavior toward online buying in a B2C setting is crucial to better understanding the
prospects of the B2C e-commerce business. The framework that encourages a client's
intention to make an online purchase is known as the online buy intention of the customer
(Salisbury et al., 2001). The factors that influence a customer's decision to make a purchase
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were divided into three categories: those of the product, those of the website as a sales
Product Categories
According to Tulay Girard et al., (2002) products are divided into four categories
based on a survey of the literature on product classification: search products, two different
information from adult Internet users was gathered in two stages. The results of their study are
consistent with the hypothesis that consumers' preferences for online purchases are
crucial as well. The results also show that consumers' preference for particular product
categories in online purchases is greatly influenced by how much weight they give to Internet
store qualities.
Influence of COVID-19
In the study conducted by Matz (2021), their study aimed to Identify the influence of
Covid-19 on the retail industry's digitalization process as well as how it affected the
consumers' decision to shop online versus offline. Furthermore, their research identifies key
drivers that motivate customers to shop online as opposed to offline. Convenience seems to be
the main driving force behind online shopping. The data also includes elements that influence
consumers' decisions to shop in brick and mortar businesses, such as physically inspecting the
desired goods.
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Dang et al., (2018) study aims to examine how the Internet has changed consumers'
food-buying behavior and identify its associated factors; consumers’ concern about food
safety information of online food products. Their data revealed Convenience and price were
the two main factors affecting food purchases made online (69.1% and 59.3%, respectively).
just a third of participants made their product selections based on reliable information on food
safety certification or country of origin. The expiration date (51.6%) was a worry for the
majority of participants, whereas brand Information on food licensing (9.8%) was frequently
overlooked (11.3%). People who were (1) feminine, (2) heavily impacted by online
relationships, and (3) had trouble performing daily tasks more inclined to look for food
products online. These findings result in useful recommendations for customers buying their
chosen food goods online, for online food retailers, and for the Vietnam's government to enact
Consumer decision-making
A study conducted by Moutusy Maity and Mayukh Dass (2013) examines how
consumer decision-making and channel selection are impacted by media richness, and it bases
its findings on the media richness theory, task-media fit theories, and cognitive cost
(behavioral decision theory). Three tests' results show that customers like medium- and
results also show that the influence of media richness on perceived channel-task fit,
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post-purchase appraisal, and channel choice is moderated by product type. Managers should
E-Commerce Evaluation
According to the study conducted by Chung-Shing Lee (2001), the use of the internet
for business or commerce goes beyond simply sustaining or improving current company
that is fundamentally altering the way that business has always been done. Because of the
completely different operating principles and procedures that apply in the digital economy, the
business is growing so quickly. A common rule in e-commerce is that there is almost no such
thing as a simple prescription or a proven business or revenue model for businesses even in
strategic managers and planners for e-commerce in identifying the crucial success criteria
when developing e-commerce business models and plans. The theories of transaction costs
and switching costs serve as the foundation for the analytical approach used in this study. The
creation of this framework also makes use of economies of magnitude and scope on both the
supply and demand sides. Additionally, strategies and models for generating revenue from
online sales are covered. This paper addresses the five crucial steps for success in e-commerce
based on the analytical framework created by this research. They are: redefining competitive
models; redesigning the company and website; and reinventing customer service. The
framework can be used by strategic managers and e-commerce planners to assess and analyze
According to the study conducted by Kevin Zhu and Kenneth L. Kraemer (2002), the four
and supplier connection. For reliability, substance, and construct validity, these measurements
have undergone empirical validation. Using information from 260 manufacturing companies
split into high IT-intensity and low IT-intensity sectors, we next looked at the nomological
validity of these e-commerce indicators in terms of their links to firm performance. A number
of hypotheses were established and were based on the dynamic capabilities perspective and
relationship between e-commerce capability and some measures of firm performance (such as
inventory turnover) after adjusting for variations in industry effects and firm size. This finding
suggests that the proposed metrics have been shown to be useful for capturing e-commerce
effects. However, our data revealed that while there is an opposing association for
technological companies, e-commerce tends to be linked to rising cost of items sold for
resource complementarity for the economic value of e-commerce; for traditional enterprises to
In the study of Golicic, S.LDavis, D.F McCarthy, T.M. and Mentzer, J.T. (2002), A
qualitative study was conducted with eight e‐commerce companies in order to construct
perceived as highly uncertain, stemming from increased information visibility and dynamic
does not decrease the perception of uncertainty, but creates more uncertainty. As logistics is
the function often involved with both information and relationship management within the
supply chain, it may prove to be invaluable in helping firms succeed in this dynamic
environment.
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CHAPTER 3
This chapter describes the research design and methodology utilized in the study, such
as the research locale, sampling procedure, instrument used, data gathering procedure,
Research Design
descriptive-correlational. This method is efficient in determining the needed data in the study
time and will facilitate developing predictions and testing for predicted relationships between
and among the variables in which we can evaluate these relationships in situations from daily
life.
Research Locale
The study will be conducted in Iligan City Medical College located which is situated
along the Rotonda of San Miguel Village, Palao, Iligan City which is just a few hundred
meters away from City Hall. Iligan Medical Center College is a private, non-sectarian and
non-political learning institution in Iligan City, Philippines. Figure 2 shows the satellite image
of the study area. The photo was taken using Google Maps Satellite.
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Figure 2. Map Location of Iligan City Medical College via Google Map
Research Participants
The respondents of this study consists of first year to fourth year business
administration students from Iligan Medical Center College who are officially enrolled in the
first semester of the Academic Year 2022-2023. In this study, stratified random sampling will
dividing the population elements into groups of sample units called strata (Ahmed, 2009). The
majorial category of the business administration undergraduate students will serve as its
particular strata within the population can be improved, as well as ensuring that these strata
After acquiring all the required formal permissions, the researchers will then begin the
collection of data using survey methods by gathering all of the names of the students that are
part of the population. A random set of names will be selected from the list. Due to the
limitations brought about by the current pandemic, data gathering will be done online. Hence,
after gathering the list of names comes distribution of the online questionnaires (via Google
forms) that will be done through Facebook Messenger. The researchers will be allotting one
month to compile and gather all the data needed. Participants who will complete the
questionnaire and all data valid are to be summarized, analyzed and interpreted in this study.
Research Instrument
questionnaire. The first part of the questionnaire will contain the demographic information of
the respondents which will include the age, sex and year level. The second, third and fourth
part of the questionnaire will contain questions that will assess the respondent’s shopping
the professor in-charge for approval of each question’s validity and reliability. Then, a pilot
test of the questionnaire will be conducted among random 10 respondents from the business
Statistical Tool
To achieve the objectives of the study, the statistical tools that will be used are both
The researcher will use descriptive statistics, which is the organizing and summarizing
of collected data into graphs and numbers, to analyze the data gathered and provide basic
information and relationships between the variables. The researcher will use the following
statistical tools: Mean, Frequency, Percentage Distribution, and Standard Deviation. This will
be utilized to present the data in order to answer the first, second, third and fifth problem
statements.
Inferential statistics, on the other hand, uses data from a sample to draw conclusions or
make generalizations about a population. This will be needed to process the data in order to
answer the fourth problem statement. The data will be evaluated to determine if there is a
relationship between the independent variables (demographic profile of the respondents) and
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2. In a week, how often do you physically visit restaurants and shop for your food and
beverages physically?
Always
Often
Sometimes
Rarely
Never
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3. In a week, how much do you spend (on average) shopping for food and beverages in
physical stores?
Less than 200 pesos
200 to 400 pesos
500 to 700 pesos
800 to 1000 pesos
Above 1000 pesos
4. In a week, how often do you use online applications to shop for your food and
beverages?
Always
Often
Sometimes
Rarely
Never
5. In a week, how much do you spend (on average) shopping for food and beverages in
online stores?
Less than 200 pesos
200 to 400 pesos
500 to 700 pesos
800 to 1000 pesos
Above 1000 pesos
1. Select one advantage that you like most about the physical shopping
You can take a closer look of the product
You get the product immediately
You can test the product before before purchase
You can ask questions to the seller
You will know where does the product comes from
2. Select one disadvantage that you dislike most about the physical shopping
You have to travel to the physical store
You will lose a lot of time when shopping
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3. Select one advantage that you like most about the online shopping
You can easily compare the prices of the products
You can choose from many varieties of the products
You can buy the product whenever you want
You can avail discounts and e-vouchers
4. Select one disadvantage that you dislike most about the online shopping
You can’t see the product physically
You must wait for the product to arrive
You will experience high possibility of inconvenience in receiving orders
You will need to pay higher prices for delivery fees
You will be at risk of online fraud
1. How satisfied are you with the food and beverages that you have bought on your
shopping preference in terms of;