Emilio Aguinaldo College -Manila

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Ermita, Manila

A Comparative Analysis Between E-Commerce and Physical Store as an

Effective Buying Platform for School Supplies

Abdul, Halem

Adia, Maxine M.

Chua, Lovely Jaye

Isip, Job Ivan G.

.
12 ABM 1

School Year 2022-2023

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APPROVAL SHEET

In partial fulfillment of the requirements for the Research Project, this research study title

“A COMPARATIVE ANALYSIS BETWEEN E-COMMERCE AND PHYSICAL STORE

AS AN EFFECTIVE BUYING PLATFORM FOR SCHOOL SUPPLIES” prepared and

submitted by ABDUL, HALEM, ADIA, MAXINE M., CHUA, LOVELY JAYE and ISIP,

JOB IVAN G. from 12 ABM 1 is hereby approved and accepted.

Ms. Mikaela Anne R. Laxa, LPT

Instructor – Research Project

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CERTIFICATE OF ORIGINALITY

We hereby declare that the research study titled “A COMPARATIVE ANALYSIS

BETWEEN E-COMMERCE AND PHYSICAL STORE AS AN EFFECTIVE BUYING

PLATFORM FOR SCHOOL SUPPLIES” is our own work and that to the best of our

knowledge and belief, does not contain materials previously published or written by another

person nor material to which a substantial extent has been accepted for award of any degree,

accept where due acknowledgment is made in the text.

We also believe that the intellectual content of this thesis is the product of our work, even

though we may have received some assistance from others on style, presentation and language of

expression.

Abdul, Halem

Adia, Maxine M.

Chua, Lovely Jaye

Isip, Job Ivan G.

Researchers

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Table of Contents

Approval Sheet………………………………………………………………………………….2
Certificate of Originality……………………………………………………………………….3
Table of Contents……………………………………………………………………………….4
I. Introduction
A. Background of the Study…………………………………………………………………..5
B. Statement of the Problem…………………………………………………………………..8
C. Scope and Delimitation of the Study………………………………………………………9
D. Significance of the Study…………………………………………………………………..9
E. Review of Related Literature and Related Studies………………………………………..10
F. Conceptual Framework……………………………………………………………………15
G. Hypothesis of the Study…………………………………………………………………..16
H. Definition of Terms………………………………………………………………………16
I. References…………………………………………………………………………………17

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Introduction

1.1. Background of the Study

According to Sarkar and Dr. Das (2017), physical stores are one of the fastest growing

sectors in India. It is one of the backbones of the economy and accounts for about 10% of the

country's GDP. The Indian retail market is valued at US$600 billion and is one of the top five

retail markets in the world in terms of economic value. India's physical stores growth is one of

the fastest in the world. Indian consumers give great importance to their products. Consumer

choice depends on whether they prefer to buy from online or physical stores. The researchers

stated that both physical stores and e-commerce have advantages and disadvantages for

customers. E-commerce or online shopping is accessible anytime, anywhere, offers more variety,

and most importantly, continues to operate 24/7, offer deep discounts, and expand the potential

for customer reviews. On the other hand, physical stores allow customers to see products in

person that online shopping does not have. Consumers may use both online and physical stores at

any given time, depending on their preferences, and the behavior of the two shopping modes or

platforms is fundamentally different.

According to Rosenlund & Berg (2020), COVID-19 was the global phenomenon of 2020.

The new restrictions have resulted in changes in individual and customer shopping behavior. Due

to COVID-19, many consumers are buying groceries online instead of in physical stores.

Historically, the 19th century saw several pandemics, and all of these pandemic crises have

influenced consumer behavior. During the period of this study, restrictions were lifted and new

restrictions were applied, resulting in further changes in consumer behavior. Various

characteristics influence customer shopping behavior, including economic, psychological and

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environmental. Income and savings of individuals and household members are economic

characteristics that influence consumption patterns. With products to carry and purchases without

time limits, this psychological attribute contributes to greater accessibility, convenience, and

time savings. Regarding the environment, it was asked whether e-commerce would have a

positive or negative impact (Rosenlund and Berg, 2020). Consumer behavior is also influenced

by demographic factors such as age, gender, education, marital status and living environment.

Everyone changes their buying behavior in their life. Restrictions during this pandemic crisis

have forced many to further adjust their behavior.

According to a study by Kaur (2018), shopping is probably one of the oldest terms for

what customers have been doing over the years. Since the Internet was declared, online shopping

has become a popular shopping method. Advances in technology allow sellers to reach

customers faster, easier, and cheaper. Online shopping has developed rapidly in recent years.

Many studies focus on high-touch products that consumers feel when they touch, smell, or try

the product. Offline or Physical store shopping is required at the shopping stage as online

shopping cannot. Online shopping is probably more risky than physical stores due to price

differences. As the way of thinking of customers is different, the convenience is also different.

Pricing can also play a role, as online shopping prices are lower than the physical store shopping

(Sowmya, n.d.). Additionally, online shopping is becoming more and more popular in

purchasing products and services and becoming a popular mode in the Internet world. As the

Internet develops, it began to provide a variety of information to consumers and compare

products, functions, and prices. It also provides several options to obtain the target product from

various suppliers (Mican & Sitar-Taut, 2020);.

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A previous study (Floyd et al., 2014) more than 70% of consumers said they trust online

product reviews more than physical stores, increasing their use of online recommendations in

decision making. Opinions posted online influence consumer decisions in a surprising variety of

contexts, including airlines, books, tourism, movies, restaurants, grocery orders, and even school

supplies. Although with this high percentage of consumers buying from online, physical stores

are able to maintain their show by excelling in their unique areas such as good personal customer

relationship, physical touch of the product, visual impact, bargaining, and installment facilities.

(Rajalakshmi, 2021). According to Clark (2020), the experience a buyer has in a physical store

cannot be replicated in an online store. Many customers want to visit stores and discover new

things. As customers walk around the store and like the items on display, they learn about new

products on the market. In addition, retail stores allow customers to shop in groups. For example,

customers can go shopping with their family and have fun. Being able to shop together in a

physical store offers an experience that cannot be offered when buying products online. Physical

stores can also serve as a meeting point, turning customers into fans or it builds customer loyalty.

Individuals can get together and shop at the same time. This increases loyalty to the business and

increases sales. These shopping platforms are a process in which consumers can purchase goods

or services directly from sellers through physical stores or e-commerce. Analyzing these changes

of modes of customers when buying school supplies, either buying from online stores or physical

stores. Both physical stores and e-commerce provide satisfaction to the customers. It allows

customers to make decisions when buying school supplies through online or physical stores.

Whereas buying through different platforms and how it is effective for them.

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Therefore, this study and the researchers will focus on analyzing the differences between

e-commerce and physical store customers when buying school supplies, in terms of participants’

demographics, product usage, effectiveness, and mode of platform for buying school supplies.

1.2. Statement of the Problem

This study aims to identify the difference between online and physical stores as an

effective buying platform. Specifically, this study aims to answer the following questions:

1. What is the demographic profile of the consumer-respondents in terms of:

1.1 Name

1.2 Age

1.3 Gender

2. What are the factors that affect the consumer-respondents in choosing an e-commerce

store as a buying platform for school supplies?

2.1 Convenience

2.2 Price

2.3 Physical Appearance

3. What are the factors that affect the consumer-respondents in choosing a physical store

as a buying platform for school supplies?

3.1 Convenience

3.2 Price

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3.3 Physical Appearance

4. What is the most preferred buying platform for school supplies of the consumer-

respondents?

5. Is there a significant difference between online and physical stores as an effective

buying platform if they are grouped according to the demographic profile?

1.3. Scope and Delimitation

This study aims to identify how effective the e-commerce and physical store are as a

buying platform. The respondents of this study are students who buy products whether online or

offline.

The researchers will gather relevant information that will help further develop this study

using in-person surveying consisting of questions that concern the respondent's demographic,

name, age, and gender. The data this research will undertake will be obtained by surveying the

respondents. The researchers will use a probability sampling which is the simple random

sampling. Data will be gathered in schools around United Nations Avenue, Manila as it has all

sorts of products, particularly school supplies, consumers that buy in either e-commerce or

physical stores. Furthermore, the results of the study will be confidential and will be solely used

only for this study as the results will be evaluated by the researchers of this study. The time

allotted to conduct this study will be from February to May 2023.

1.4. Significance of the Study

In conducting this study, there are several factors that the researchers must consider. Not

only the way it can affect others but also how it can benefit them. This research study focuses on

identifying what buying platform the respondents use in buying school supplies. Therefore, the

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researchers will better understand the factors that affect the respondents in choosing the platform

that they use and how they can get conclusions from it. The results of this study will give

awareness to everyone. Specifically, this research study benefits the following the most:

E-commerce and Physical Store Owners. This study will help the business owners in

coming up with plausible answers and strategies on how to effectively sell their products to the

public in times of the emerging changes in trends. Moreover, this will provide them insights on

how they will make the most out of their advantage in the present time and how they can use

their advantage for the betterment of their business.

School Supplies Customers. This research will help the customers have a better

understanding and awareness on which buying platform is the most relevant in the present time

as well as how effective the buying platforms are.

Future Researchers. For the future students of the business area, this research will give

them knowledge about the difference between buying in e-commerce and physical stores in the

present time. Additionally, the students can use this study as their reference when they want to

conduct a study similar to the study being conducted. This research can be used as an addition to

their related local studies.

1.5. Review of Related Literature and Related Studies

E-Commerce Store
According to Statistics, as stated by Berlo (2023), because of the rise of e-commerce, the

number of online shopping users has widely increased too. From having 2.37 Billion e-

commerce shoppers in 2020, it became 2.64 Billion in the year 2023. It rose with almost 300

Million online shoppers. It is expected and estimated that the online users will increase by 2.71

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Billion. From the above-mentioned datas, it is really evident that there is a rise in the e-

commerce industry. According to Kaur (2018), nowadays, a growing number of individuals

choose to "go shopping" online, thanks to the widespread use of computers. Thousands of items

will appear on the screen after one word is clicked, depending on the selection. There's no need

to push through bustling crowds and traverse a wide street to buy a pair of expensive shoes. Just

choose your option and click on the keyboard, and the items will be delivered immediately. The

21st century has seen an increase in the prevalence of online buying. Convenience is widely

regarded in our society today, which is why it has gained popularity. Online shopping allows you

to get everything and everything you require with a low amount of effort.

Shopping through e-commerce or online stores are widely relevant in the world today.

The evidence of the growth and the increase of stores that are operating in the present times are

much larger than the past. One of the factors that boosted the relevancy and popularity of

shopping through the web is the covid-19 pandemic. Because of the pandemic, everything

changed online. Some businesses have been forced to close their physical stores resulting in

them focusing their selling strategies in different types of e-commerce platforms. According to

Katawetawaraks and Wang (2011), as cited by Mican and Taut (2020), the internet has started to

offer customers a variety of information and options for contrasting goods, features, and prices.

Also, it provides a variety of ways to buy the needed goods from various sellers. Modern

consumers that seek ease and quickness are satisfied by online buying. Since the rise of the e-

commerce stores, many people are interchanging from buying from physical stores to online

stores. There are many factors affecting the consumers in buying online such as; convenience,

the product’s price, the time of delivery, and etc. Though some of the consumers are thinking

about one hundred times before ordering online because of the possible risk and problems that

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they might encounter. For instance, there are several cases where there will be information fraud

that will make the personal information of the buyers be leaked and used for bad deeds. In

addition, the perceived value or the value proposition of the product is one of the things that

consumers consider when buying online. In order to buy the product they want, they first

discover the perceived value or the things and benefits that they will get when purchasing the

product. Moreover, the previous experience of the consumer drives whether or not they will

order and buy their products online. There are two (2) experiences, the first one is good and the

second one is bad. When the experience of the consumer is good, they are more likely to order

again on the e-commerce shops and give good feedback to the shop. However when their

experience is bad, they provide bad feedback at the same time the bad experience gives them

trauma that results in them never ordering online again, and if not never, the times they order

online has decreased drastically. In addition to the above-mentioned factors, consumers also

consider the amount of time the product will be delivered to them. When a consumer orders a

product online, it typically takes six to seven days for the product to reach the customer. But,

while purchasing offline, the buyer immediately takes control of the purchased items. So, this is

a significant aspect that influences online shopping. Consumers want to receive a product at a

specific moment or within a short period of time, thus they want a good delivery time. The

second most important factor influencing product demand is duration. (Gupta, 2015). Lastly,

there are a variety of products available on the e-commerce market. Consumers can easily find

the product that they need and want by just using the search engine of the website.

Physical Store

Due to its comparison, the use of customers increased in using online or e-commerce.

Floyd et al., (2014) stated that more than 70% of consumers said they trust online product

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reviews more than physical stores, increasing their use of online recommendations in decision

making. Opinions posted online influence consumer decisions in a surprising variety of contexts,

including airlines, books, tourism, movies, restaurants, grocery orders, and even school supplies.

Although with this high percentage of consumers buying from online, physical stores are able to

maintain their show by excelling in their unique areas such as good personal customer

relationship, physical touch of the product, visual impact, bargaining, and installment facilities.

(Rajalakshmi, 2021). As stated by the researchers, E-commerce is going to be a huge factor to

affect the physical stores.

The growth of e-commerce is affecting physical stores, but Clark (2020) stated that the

experiences customers have in buying from physical stores cannot be replicated in online stores.

Many customers want to visit physical stores and discover new things. As customers walk

through the store and like the items on display, they learn about new products on the market. In

addition, retail stores allow customers to shop in groups. For example, customers can go

shopping with their family and have fun. Being able to shop together in a physical store provides

an experience that online purchases simply cannot. Brick-and-mortar stores also act as meeting

points to convert customers into fans and build customer loyalty. Individuals can get together

and shop at the same time. This increases loyalty to the company and increases sales. A study by

Muntaqheem & Raiker (2017) found that physical stores are far more beneficial than waiting for

products purchased online to be delivered. In this study, they believe the benefits of e-commerce

can save time and space on deliveries. On the other hand, physical stores may be beneficial for

some customers in terms of visual evidence and physical contact to the specific product.

Researchers stated that these modes can be cross-checked with the offsetting factors each mode

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has. Consumers' choice depends on whether they prefer to shop online or in a physical store and

its effectiveness for buying products like school supplies or any necessities.

According to Gupta (2015), many studies have focused on the need for high-touch

products that consumers feel when touching, smelling, or trying the product. Offline shopping is

required at the shopping stage because online shopping cannot. They also realized that with the

rise of online shopping, online shopping is likely to put pressure on offline or physical stores.

Having the ability to physically select and examine what an item or product looks like and its

characteristics is a perk of physical store. They tend to like to buy. Because e-shopping is not

where buyers and sellers meet, product awareness is low, Lack of trust, lack of physical touch,

and security issues are some of the reasons why customers visit online shopping sites but are not

interested in purchasing products (Kaur, S & Kaur, V., 2018)

A study by Gupta (2015) stated that many customers choose to purchase through offline

or physical stores, to review products, and own products immediately after paying for them. In

this modern world, customer loyalty depends on the consistent ability to deliver quality, value

and satisfaction. Some shop offline, some shop online, and some shop both. In that statement,

Gupta said customers chose the convenience and benefits of the services they received from the

company or products.

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1.6. Conceptual Framework

Figure 1: Conceptual Framework of the Study

The figure above shows the conceptual framework of the study. The independent variable

is the E-commerce and physical store while the dependent variable is the effective buying

platform. Through the conceptual framework of the study, the researchers will determine the

concept between the two (2) variables.

In the 21st Century, more than half of the population of the world goes shopping, may it

be online or offline shopping. Some say that physical shopping is better than shopping in e-

commerce websites but some say otherwise. According to Katawetawaraks and Wang (2011), as

cited by Mican and Taut (2020), the internet has started to offer customers a variety of

information and options for contrasting goods, features, and prices. On the other hand, according

to Gupta (2015), many studies have focused on the need for high-touch products that consumers

feel when touching, smelling, or trying the product. Offline shopping is required at the shopping

stage because online shopping cannot. In order to really know and understand what buying

platform is better when shopping for school supplies, this conceptual framework was created.

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1.7. Hypothesis

From the statement of the problem, the hypothesis was formulated.

Null(H0) : There is no significant difference between e-commerce and physical stores as a

buying platform for school supplies.

1.8. Definition of Terms

Buying Platform. It is a medium where the consumer usually buys their product whether

it be through e-commerce or physical store.

E-Commerce. An ecommerce platform is a website's content management system (CMS)

and commerce engine that allows users to manage classified products, register purchases, and

manage their connection with an online shop. (Optimizely, n.d.)

Physical Stores. Refer to physical commercial facilities, such as retail stores, where sales

are conducted within the actual premises of a real estate facility owned or leased by the relevant

firm. (Law Insider, n.d.)

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References
Clark, T. (2020, March 23). Benefits of Physical Store vs Online Shop - Retail Focus - Retail

Design. Retail Focus - Retail Design.

https://retail-focus.co.uk/benefits-of-physical-store-vs-online-shop/

Muntaqheem, & Reiker. (2019, October). A Study on Consumer Behavior towards Online and

Offline Shopping. ICONIC RESEARCH AND ENGINEERING JOURNALS. Retrieved

March 3, 2023, from https://www.irejournals.com/formatedpaper/1701666.pdf

Rosenlund, A., & Berg, A. L. (2022, June 21). E-commerce or physical store: Factors and

characteristics affecting consumer behavior during a pandemic crisis. E-commerce or

Physical Store : Factors and Characteristics Affecting Consumer Behavior During a

Pandemic Crisis. http://urn.kb.se/resolve?urn=urn:nbn:se:kau:diva-89281

Mican, & Sitar-Taut. (2020, April). Analysis of the Factors Impacting the Online Shopping

Decision-Making Process. Research Gate. Retrieved March 3, 2023, from

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“COMPARATIVE STUDY BETWEEN ONLINE AND OFFLINE PURCHASE OF CONSUMER.

(n.d.). The Seybold Report. Retrieved March 3, 2023, from

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Tupe. (2018, March). Comparison Between Online & Offline Shopping. Scribd.

Retrieved March 3, 2023, from

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https://www.scribd.com/document/402525025/Comparision-Between-Online-Offline-

Shopping#

Rajalakshmi, & Faiz jahan.A. (2021, March). A Comparative Analysis Between Online and

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INNOVATIVE RESEARCH IN TECHNOLOGY. Retrieved March 3, 2023, from

https://www.ijirt.org/master/publishedpaper/IJIRT150800_PAPER.pdf

Gupta. (2015, May). Comparative Study of Online and Offline Shopping: A Case Study of

Rourkela in Odisha. Retrieved March 3, 2023, from

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from https://ijcrt.org/papers/IJCRT1705208.pdf

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