THE POSITIVE CONSEQUENCES OF THE NEW

NORMAL TOWARDS ONLINE BUSINESS

______________________________________________________________________

Research Proposal
DEFINITION OF KEY TERMS

The terms stated below are defined to give a clearer vision on the things that are

reflected in this study.

New Normal. A previously unfamiliar or atypical situation that has become

standard, usual, or expected.

E-commerce. Or online business, is the process of buying and selling of goods

and services over the internet.

Commerce. Constitutes the exchange of products and services between

businesses, groups and individuals and can be seen as one of the essential activities of

any business.

Entrepreneurs. Is an individual who creates a new business, bearing most of the

risks and enjoying most of the rewards.

 Chapter I

INTRODUCTION

Rationale of The Study

The role of technology in business caused a tremendous growth in trade and

commerce. Business concepts and models were revolutionized as a result of the

introduction of technology. This is because technology gave a new and better approach

on how to go about with business. It provided a faster, more convenient, and more

efficient way of performing business transactions. Because of this the existence of

online businesses emerged. Online business is a business that conducts its entire or

partial operations and generates revenue from online sales. The business activity can

be buying handled through the internet, selling, or advertising. The internet acts as the

point of interaction between the customer and the business. Recently, because of the

Covid-19 pandemic, the number of online businesses had an enormous number of

growths. Due to the imposed lockdown limiting everyone to stay at home, consumers

have found it convenient to do their purchases online. Moreover, consumers tend to do

shopping online because of the availability of different online shopping platforms.

According to Arreola (2020), Social media and virtual meetings, domestically and

across the globe, have become the “new normal” as people strive to keep normalcy in

their lives amid pandemic restrictions. Here in the Philippines, 64% of Filipino internet

users are spending more time on social media, with 23% indicating an increased activity

in their online shopping activity. With consumers resorting more to online shopping amid

pandemic restrictions, entrepreneurs have embraced the digital phenomenon for online
shopping even more. E-commerce websites such as Lazada and Shopee are at the

forefront of these online shopping platforms with expected surges in sales revenues in

millions of pesos. Technology has already transformed online business transactions into

an infinite marketplace where conducting business has become more convenient and

efficient for both vendors and vendees. The Covid-19 pandemic has made this

marketplace a more obvious necessity.

Some researches had already recognized different factors that affects the online

business industry. However, this new normal has brought another set of factors that

might have a potential impact towards online businesses. Given the lack of this

knowledge the purpose of this study is to identify and quantify the impacts of the new

normal on online businesses. Assessment of these factors will give contribution and

answer to this knowledge gap. This requires information concerning the new normal and

how it affects this advanced industry of business and commerce.

This study will provide information towards the benefits of the new normal on

online businesses. This will foster new ways of enhancing online business performance,

knowledge, and strategies by raising awareness on the opportunities brought by this

pandemic era in their business operations. In addition, the conduct of this study also

gives knowledge not just to the sellers, entrepreneurs but also particularly to the

consumers who are spending their time engaging on online business transactions. Data

gathered will help the online business industry initiate collaboration among consumers

and help them plan the advancement of online business in relation to the new normal.
Statement of the Problem

This study was conducted in order to know the positive effects brought by the

new normal towards the online business industry.

Moreover, this study was expected to answer the following questions:

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

1.1 Age;

1.2 Sex; and

1.3 Civil status

2. What are the perceptions of the respondents towards the positive effects of the new

normal to online businesses in terms of:

2.1 Sales

2.2 Business growth

2.3 Customer Convenience

Research Objectives

At the end of this research proposal, the researcher:

1. Know the demographic profile of the respondents in terms of:

1.1 Age;

1.2 Sex; and

1.3 Civil status

2. Learn the different perceptions of the respondents towards the positive effects

of the new normal to online businesses in terms of:

2.1 Sales

2.2 Business growth

2.3 Customer Convenience

 Statement of The Null Hypothesis

What are the perceptions of the respondents towards the positive consequences of the

new normal to online businesses in terms of:

Sales? Business growth? Customer Convenience?

Ho: The perceptions of the respondents towards the positive consequences of the new

normal to online businesses are not identified in sales, business growth, and customer

convenience.

H1: The perceptions of the respondents towards the positive consequences of the new

normal to online businesses are identified in sales, business growth, and customer

convenience and it is very useful in terms of business.

Significance of the Study

The result of this study is expected to add more knowledge about the positive

effects of the new normal towards online businesses and will be of big help to the

following beneficiaries:

Business Industry. The outcome of this study can contribute ideas to increase

the sales given this time of pandemic and will give insights on how to improve the

business economy.

Online Sellers. The result of this study would give information to online sellers

as to how they will attract more customers.

Consumers. This study would provide consumers some knowledge on some

perceptions about online business that would guide them on their online shopping

transactions.

Future Researchers. This study can be utilized as a source or reference to

future researchers for them to conduct a research study as well.

Scope and Limitation of the Study

This study is aimed to determine the positive effects of the new normal towards

online business. The survey questionnaire will be given to the selected student. It is only

limited to those students who are currently enrolled in Surigao del Sur State University

(SDSSU) Main Campus. This study will be conducted this A.Y. 2021-2022.
 Conceptual Framework

Demographic profile of the Perceptions of the

respondents in terms of: respondents
Proposed
1. Age towards the
Intervention
2. Sex positive consequences

3. Civil status of the new normal

to online businesses

Figure 1. Schematic Diagram of the Study

Figure 1 shows the conceptual framework illustrating the variables involved in the

study and how the researchers gathered the needed data.

The first box shows the independent variable of the study which includes the

demographic profile of the participants namely the age, sex, civil status, and occupation.

These variables were manipulated to determine or interpret the value of the dependent

variable on the next box.

 The second box shows the dependent variable of the study which is the

perception of respondents towards the positive effects of the new normal to online

business. This variable varied depending upon the response of the respondents. It

served as the aim of this study.

Lastly, the third box shows the proposed intervention on how do the researcher

determine this prevailing problem because the purpose of this study is to explain and

elaborate the positive impacts of the new normal towards online business.
 Chapter II

REVIEW OF RELATED LITERATURE

This chapter presents the review of related literatures and studies from where the

study is anchored with. This provided references and background related to this

research study. It focuses on the theories regarding the effects of the new normal to

online businesses.

Related Literature

Foreign

According to Fox (2020), the impact of the coronavirus on online business is not

straightforward and continues to evolve. In recent years, we have seen massive growth

in online expenditure globally and in Ireland. Analysis by Statistical for 2020 valued the

Irish online market at over $3 billion with 70% of purchases from domestic businesses

and a penetration rate of 73.5% and rising. These figures suggest that Irish consumers

are embracing online commerce and supporting local enterprise.

But this was before we entered into the global pandemic we are currently

experiencing. Our government, rightly so, has been cautioning citizens about the

potential impacts of Covid-19 on all aspects of our economy in the months and years to

come. Jobs will be lost and many companies will close their doors, temporarily or

permanently. While it remains to be seen how this crisis will impact online business in

the long term, it is interesting to explore changes to online business so far.

 The current situation has altered many of our daily activities as consumers and

restricted how organizations do business. For individuals, the stay-at-home order

requires all but those in essential services to work from home. Social distancing and

limited trips outside the house only for essential groceries or health appointments have

altered our consumption behaviors. Social distancing has led to a massive surge in

consumer take up of online grocery shopping, with Tesco asking able consumers to

consider physically shopping in store to free up online delivery slots for older

consumers. Consumer buying behaviors are also likely impacted by panic buying trends

and changing perceptions of what purchases are necessary.

In accordance to Bonder (2020), COVID-19 crisis accelerated an expansion of e-

commerce towards new firms, customers and types of products. It has provided

customers with access to a significant variety of products from the convenience and

safety of their homes, and has enabled firms to continue operation in spite of contact

restrictions and other confinement measures.

Despite persistent cross-country differences, the COVID-19 crisis has enhanced

dynamism in the e-commerce landscape across countries and has expanded the scope

of e-commerce, including through new firms, consumer segments (e.g., elderly) and

products (e.g., groceries). Meanwhile, e-commerce transactions in many countries have

partly shifted from luxury goods and services towards everyday necessities, relevant to

a large number of individuals. Some of these changes in the e-commerce landscape will

likely be of a long-term nature, in light of the possibility of new waves of the epidemic,

the convenience of the new purchasing habits, learning costs and the incentive for firms

to capitalize on investments in new sales channels.

Local

Compared to other SEA countries, the Philippines had the highest web traffic

increase in electronics sites. In fact, e-sites in other countries, except Singapore, even

experienced a decrease in web traffic. Filipino consumers’ behavior has shifted due to

social distancing, the study noted, adding that in Southeast Asia, after comparing the

first and second quarter this year, the Philippines experienced the highest increase, 53

per cent, in the usage of shopping apps. Total sessions on shopping apps in the country

reached 4.9 billion.

“The Philippines is known to survive with cash-based transactions and brick-and-

mortar stores, but perhaps with the rising trend of online shopping in the country due to

Covid-19 will allow the country’s digital world to catch up to its more developed

Southeast Asian neighbors,” iPrice said. This trend will see e-commerce players to

continue to grow and present potential opportunities for emerging local merchants, the

company added. (Abaño, 2020)

According to Lunas (2020), online shopping and delivery of goods has surged to

record heights because of the COVID-19 pandemic and ensuing community quarantine.

“Because of the pandemic e-commerce has grown, we have seen a 376-percent growth

in total order in the first half of 2020,” said Prashant Kala, country manager of Shop

back Philippines, a cashback reward program that gives users a small percentage of

their purchases through the platform. According to the data gathered from transactions

through Shop back, Filipino consumers ordered 9.1 million valued at P5.6 billion in
January to June, nearly five times higher than the 2.1 million orders (P1.3 billion) in the

same period last year.

As consumers pivot toward online shopping, more merchants strengthen their

presence. For instance, Shop back reported that from 370 partner stores in 2019, 510

are currently on board. Categories include food and groceries, health and wellness,

digital goods, electronics, home essentials, fashion, travel, banks, and real estate.

Aside from necessity in time of limited movement, the growth, which Kala said

was the best they have recorded yet since coming to the country in 2015, was also

driven by consumers’ need for convenience. The behavior of the market has changed;

people have also realized that convenience is a big thing.

Related Studies

Foreign

In 2020, Vietnamese businesses have been facing challenges, like many other

countries, caused by Covid-19, which is an epidemic that spreads quickly through

normal human-to-human contact and occurred in Vietnam around the end of 2019. As a

result, COVID-19 impacts not only general behaviors but shopping and out-of-home

consumption. Vietnamese consumers start recognizing the benefits of online shopping,

especially during the pandemic period.

According to a survey on how Covid-19 has impacted on Vietnamese

consumers, 25% of respondents said that they have increased their online shopping
and have reduced their out-of-home consumption occasions. The Vietnamese

government has also taken strong solutions to prevent the disease, including social

isolation, encouraging online shopping to prevent crowds and social exposure. (Pham,

2020)

According to Hasanat et.al. (2020), in their study on the impact of coronavirus

(COVID-19) on e-business in Malaysia. Coronavirus, one of the deadly known viruses

has already taken the lives of many in almost half of the country. This means that the

country’s economic growth has lowered down. It has almost shaken up all types of

business including the e-commerce business on a massive scale. Major retailers have

temporarily shuttered their stores.

Apart from that, the medium and small-sized retailers are combating with the

situation due to low footfalls. Further, online businesses are also not out of the list. They

are also severely affected by Malaysia. Many e-commerce businesses rely upon China

for half of its merchandise products. Therefore, it is assumed that this deadly virus will

severely impact the Malaysian online business especially the Chinese products.

The COVID-19 pandemic is nowhere near over. Aside from the public health

impact, its damage on all industries and economies must be defeated as well.

Therefore, now is the perfect time to strategize on how to bring them all back up and

help reach recovery. When trying to think about what lies ahead, all we can do is

speculate on what rising up will look like. For businesses in the new normal, it is

important to gain that switch from surviving to thriving once this pandemic is over. We

had to switch to buying everything online – even our basic needs, because of the strict

quarantine protocols, especially when it all started. Everyone, including the aging
population, learned how to buy and sell online, making use of selling platforms, even

social media, to stimulate retail activity in their own localities and thrive even at this

trying time. (Dolojan, 2020)

Local

According to Mallorca (2020), the coronavirus disease 2019 (COVID-19)

pandemic has caused the rise and fall of several industries worldwide. Even though e-

commerce platforms have long been on the rise, the process was fast-tracked when

quarantine guidelines were put into place. With the absence of traditional shopping

channels, customers have flocked to e-commerce platforms to secure purchases and

transactions. Many stores and restaurants have also transitioned online to serve their

target market.

The new normal has also urged online sellers, e-commerce platforms and

restaurants to refine collaboration methods with its partner channels to ensure quality

service. The transition from traditional shopping methods into online has pushed e-

commerce platforms to sell more essential goods and daily needs. Even though various

e-commerce platforms were established pre-pandemic, its identity strengthened since

the start of quarantine.

In addition, e-commerce platforms and online sellers would continue to grow,

even in a post-pandemic society. In terms of the potential of people reaching success, I

would say that the sky is the limit because we see new millionaire sellers every time that

we run a campaign. I’m not saying that everyone who goes online will be successful, but

we see many cases that the potential is huge. Online selling platforms have witnessed
significant growth in customer behavior during the pandemic. With this, it’s up to

business sectors to improve its services to ensure loyalty among its target market

According to Barreiro (2020), with strict lockdowns and high unemployment

during the pandemic, Filipinos were forced to rely on e-commerce activities or online

shopping and selling to meet their needs. A research from consultancy Bain & Company

and Facebook stated that, the global crisis has accelerated e-commerce and other

digital trends across Southeast Asia. Facebook platforms that gather buyers and sellers

within specific localities and communities. A lot of them are housewives or small

business owners who cook and prepare dishes from their own homes and kitchens.

Eventually, some small restaurants joined, and that’s how the groups grew in size.

These Facebook communities are mostly filled with posts of food for sale.

Separate groups were then created to cater to transactions for general merchandise

and non-food items. Posts on the Facebook pages follow a format. Outlined in posts are

the seller’s name, the price of the items and the quantity, and the method of payment,

as well as any additional fees like delivery charges. Cashless or contactless systems via

bank transfer, PayMaya, or GCash are also the preferred mode of payment to minimize

risks.
 Chapter III

MATERIALS AND METHODS

This chapter presents the plan of the study. It presents and explains the

Research Design, Research Respondents, Research Instrumentation, Research

Locale, Data Gathering Procedure, and the Statistical treatment that were used in this

study.

Research Design

This study utilized quantitative research design through descriptive survey

method which is governed by ambition of objectivity and reduces ambiguity. It is

primarily concerned with describing and interpreting the data with regards to the effects

of the new normal towards online business.

Research Respondents
 The respondents of this study will be the selected student online sellers who are

currently enrolled at Surigao del Sur State University. They will answer the questions

using the researcher’-made questionnaire that is validated by the experts.

The researcher will be using non-probability sampling where the respondents will

be chosen based on the purpose of the study. Therefore, researcher will use purposive

sampling because the researcher wants to have the appropriate people who can

answer the questionnaires.

Research Instrumentation

The major tool for gathering the data in this research study was the research

questionnaire. Researcher’ made questionnaire was utilized consisting of two parts. The

first part contains the demographic profile of the respondents. This includes their name

which is optional, age, sex, and civil status. The second part consists of the perception

of the respondents towards the positive effects of the new normal to online businesses.

This division consists of questions answerable according to the Likert scale of 5.

Since the researcher used a Researcher’-made questionnaire under the

descriptive type of study, the face and content of the questionnaire was validated by

validators who are expert in this field. The face validation includes the physical

structure of the questionnaire while the content validation includes the grammar,

spelling, choice of words, and the thought of the statement. The recommendations and

suggestions of the validators will then be used to further improve the work.
Research Locale

The study will be conducted at Surigao Del Sur State University Main Campus,

as it is where the chosen respondents are enrolled. However due to health restrictions

that there should be no face-to-face set-up, the surveys will be conducted through

online platforms. SDSS Main is located at Barangay Rosario, Tandag City, Province of

Surigao del Sur.

 Figure 2. Map of SDSSU Main

Data Gathering Procedure

In gathering the data needed, the researcher first pursued approval from the

validators to conduct the study. The researcher then asked approval from the students

personally for them to respond to the questionnaire. Upon their agreement, distribution

of questionnaires with simple, correct, and exact directions to the respondents followed.

It was then collected afterwards and the results was tallied in order to interpret the data

and to give inference.

Statistical Treatment

To facilitate data analysis and interpretation, the following statistical treatments were

applied in this study.

Frequency Count and Percentage. This tool was used to display the data that

specifies the percentage of observations that exist for each data point or grouping of
data points. It also determines the demographic profile of the respondents in terms of

age, sex, and civil status.

Weighted mean. This was employed to determine the perception of the

respondents on the positive effects of the new normal towards online business.
References Cited

https://www.oksbdc.org

https://atty-arreolalawoffice.com

https://www.sdssu.edu.ph

Fox (2020)

Bonder (2020)