Online Purchasing Decisions of College Students in a Private Catholic School

A Quantitative Research presented to the

Faculty of Senior High School of
La Consolacion College - Bacolod

In Partial Fulfillment of the Requirements

in Practical Research 2

Jonota, Danica Beatrice A.

Lantacon, Elisa Kate
Marce, Keisha
Nofies, Edree Angela E.
Ramos, Xianna Ysabelle
Reyes, Roselyn C.
Salbibia, Krishel Mae
Susana, Cheassey Mish
Vargas, Vanessa G.
Vinson, Cassandra Louise C.

October 2022
 Chapter 1
INRODUCTION
Background of the Study
This study examines the result of buying, budget-planning, online shopping, decision
making, and service quality on Online Purchasing Decisions of College Students in a Private
Catholic School. This research uses a quantitative approach that uses a questionnaire for primary
data collection.
Online shopping is an electronic transaction activity carried out by consumers through
online stores directly through a device that is connected to the internet with various media such
as; computers, laptops, cellphones and more (Harahap & Amanah, 2018). Online shopping is a
process of transactions made through the media or an intermediary that is in the form of sites
selling and buying online or social networking that provides goods or services traded (Hassanein
& Head, 2005; Turban et al., 2018). In today’s generation, online shopping has become a trend;
benefiting the needs and wants of some people, especially amidst the pandemic. Moreover, the
public’s purchasing decision has affected their own lifestyle, the income of other people, and on
how they manage to get the discipline and limitation in choosing their desires or necessities.
Nowadays it is very easy to find an online store that offers its products through personal
sites, social networks like Facebook, Twitter, Instagram, Blogs, e-mail, mailing list, community
sites like Kaskus and through buying and selling sites like OLX. By typing certain keywords in
search engines, internet users can easily find product and price information from multiple sellers
at once (Jiang, 2002). Several products and services are seen and offered from different online
platforms, local billboards, and even with people that surround you; a personal recommendation.
The quality of service is being based within the demands of the target market that automatically
suggests the quality of the product itself.
According to Olshavsky & Granbois (1979) and Lee, Park, & Ha (2008), the consumer's
activity to purchase the product is called with a purchase decision. Thus, a purchasing decision is
a process that consumers make by choosing one of the various options and then ending with a
real purchase action. The next step is the consumer to evaluate the purchases and then show the
behavior of satisfied or not satisfied. Companies need to recognize that role because all roles
have implications for designing products, determining messages and allocating promotional
budget costs and creating marketing programs that suit buyers (Swastha & Handoko, 2008).
Purchasing decisions are very critical for it can be either impulsive or cautious.
Price can be an indicator of product quality (Erickson & Johansson, 1985; Dodds,
Monroe, & Grewal, 1991). With this, buyers and consumers need to have a proper budget
planning that can ensure them to have the best quality products and services according to its
price and cost. Online products are very risky in terms of durability and long lasting element, that
is why most of the people look over the feedback and reviews in order to make sure how credible
the items are.
Purchasing Decision is a process whereby the consumer knows the problem, searches for
information about a particular product or brand and evaluates how well each of these alternatives
can solve the problem, which then leads to a purchase decision (Tjiptono, 2008). According to
Kerin, Berkowitz, & Hartley (2005), he suggests that the process of making purchasing decisions
is the stage through which the buyer determines the choice of products and services to be
purchased. Setiadi (2003) states that the consumer's buying decision is an integration process that
combines knowledge to assess two or more options and choose one of them. In making a
purchase decision, everyone must have several options and must decide to choose one among the
options (Schiffman & Kanuk, 2004). Purchasing decisions are a problem-solving process that
consists of analyzing needs and wants, searching information, valuing sources of selection
against alternative purchases, purchasing decisions, and post-purchase behavior (Kotler &
Keller, 2007). It comes within the mind and heart of buyers, their will in purchasing something
that fulfills them. It depends on how they like the product that triggers their feeling on wanting to
have it. It is a process in which commands of mind are being followed.
The main subject or the important aspect of this study is all about how the public show
and tell their purchasing techniques and skills online in order to come up with a certain decision.
The customer does not necessarily need his or her physical presence to come in a physical store,
instead it will just be a quick click and tap in his or her newsfeed containing all the products and
services an online store sells. This can be local, national, or even international. Furthermore,
online shopping has been so popular among the people especially in college students that has
only a short period of time to go through physical store, boutiques, or shops. It is easier for them
to get and have the things they need, want, or even just desired. Online purchasing decisions are
done through gadgets such as cellphones, laptops, and other electronic devices that is capable in
giving internet. A purchasing decision will only be easier if it is done through online for it can be
thought for a while before clicking the item.
The purpose of this study is to identify the way, manner, conduct, behavior, and
management of college students’ decision-making in purchasing online. It is to figure out how
the payments are being handled; what are the techniques in giving and receiving payment or
compensation, how the products are being given by the seller and being received by the buyer,
and how online transactions are being worked out. It is to know what are the different styles of
college students and what are the things they consider in making up with their decisions, and on
to what intensity they have the guts to win an item with them.
The certain aspect of this research is that online stores are being recognized and known
with what they give and offer in the technology industry and on what are things that make
purchasing online easier to do. While the inconvenience of this study is knowing the
disadvantages of going through this thing. Thus, it will be eventually evaluated and can be
enhanced, upgraded, and lifted. These evaluations will be used in creating better marketing
strategies, changing ways, and complying for improvement. This study will certainly get online,
internet, web, and digital advertising and marketing influence college students more effectively
and abundantly motivated to purchase products and services offered and recommended by not
physical but online stores.

Statement of the Problem

This study will aim to determine the influences of the factors that affect online
purchasing decisions of College students in a Private Catholic School. 

Specifically, the research ought to answer the following questions:

1. What are the influences of the factors that affect online purchasing decisions of the
respondents in terms of online reviews, product interest, pricing, psychological purchase,
and product quality when they are grouped according to age, sex, and allowance?
2. Is there a significant difference in the influence of the factors that affects online
purchasing decisions of college students in terms of online reviews, product interest,
 pricing, psychological purchase, and product quality when they are grouped according to
age, sex, and allowance? 

Hypothesis

There is no significant difference in the influence of the factors that affect online
purchasing decisions of college students in terms of online reviews, product interest, pricing,
psychological purchase, and product quality when they are grouped according to age, sex, and
allowance? 

Framework

Purchasing decisions are a problem-solving approach to human activities to buy goods or

services in fulfilling their wants and needs which consist of recognition, needs and wants,
information search, evaluation of purchase alternatives, purchase decisions, and behavior after
purchase (Prasad & Jha, 2014). Purchasing a product or service, including purchase decisions
and consumer actions on a range of other alternatives, starts with the discovery of issues that can
be resolved by the purchase of certain goods (Brata et al., 2017). The study focuses on
determining the influence of online reviews, product interest, pricing, psychological purchase,
and product quality that would affect online purchasing decisions of College Students in a
Private Catholic School.  

In order to fulfill the objective, the research design incorporates exploratory and
descriptive analysis. The survey method was used, which was carried out via questionnaires.
Closed or Structured Questionnaires are a quantitative method of research, which was advocated
by Emile Durkheim (1858-1917). It is a positivist research method. It includes the low level of
the researcher and high number of respondents (the individuals who answer the questions).

Online shopping is a process of transactions made through the media or an intermediary

that is in the form of sites selling and buying online or social networking that provides goods or
services traded (Hassanein & Head, 2005; Turban et al., 2018). By typing certain keywords in
search engines, internet users can easily find product and price information from multiple sellers
at once (Jiang, 2002). According to Olshavsky & Granbois (1979) and Lee, Park, & Ha (2008),
the consumer's activity to purchase the product is called with a purchase decision. Thus, a
purchasing decision is a process that consumers make by choosing one of the various options and
then ending with a real purchase action. The next step is the consumer to evaluate the purchases
and then show the behavior of satisfied or not satisfied. As a result, buyers and consumers must
plan their budgets carefully to ensure that they receive the best quality products and services for
the price and cost. Online products are very risky in terms of durability and longevity, which is
why most people read the feedback and reviews to determine how credible the items are.

Many buyers would also prefer to purchase from Instagram as well due to less cluttered
page, straightforward interface and easier to read feedback from other buyers. Feedback or also
known as User – Generated Content (UGC) happens when previous buyers share their
experiences online, which allows others including the potential buyers to read. Based on an
extensive literature review, this paper proposes a framework to investigate the influence of UGC
on consumer's online product purchase intention. Findings from this study are expected to extend
the literature on UGC and give benefits to marketers and online business operators. (Bahtar &
Muda, 2016)

Online reviews are crucial in influencing how consumers know about products and make
purchases. It is regarded as a key factor and a significant source of reliable information regarding
the quality of products, particularly those that are difficult to recognize prior to use (Li et al.,
2018). According to the study of Helversena et al. (2018), the impact of consumer reviews on
online purchasing decisions is widely acknowledged. Numerous studies have demonstrated that
consumer feedback affects people's purchasing decisions and intentions, as well as their interests
toward brands and businesses. Prospective buyers would be able to seek numerous signals from
the product's reviews or rating prior to making purchasing decisions. (Li et al., 2018). If a
product has a high numerical rating, it can be taken as signals of high quality, allowing the
prospective buyer to be influenced in making a purchase. However, some studies have shown
that the effects of positive and negative reviews vary, even though both might influence
consumers' behavior (Helversena, et.al. 2018). According to Helversena et al. (2018), negative
reviews had the greatest influence on the decision and effectiveness, implying that negative
reviews may be more influential than positive ones – a conclusion that is consistent with research
in other areas of communication. However, as per other studies, he added that only hedonic
products are subject to a negative bias in consumer reviews. Furthermore, Helversena et al.
(2018) suggested that although consumers might not actually give negative reviews more value,
they do consider them to be more relevant because they are frequently rarer and of higher
quality.

Brata et al. (2017) indicate that one important factor in influencing consumers to
purchase a product is the pricing. The more a product's pricing is adjusted, the more likely
consumers are to buy it. The study by Brata et al. (2017) found that although pricing products too
high will result in a drop in sales, pricing products too low will lessen the benefits that the
business will receive. Additionally, he said that one component of the marketing mix—the
product price—generates sales income while the other component of the mix generates costs.
Brata et al. (2017) claimed in their study that it matches the suitability of the pricing of the
products it produces so that it would attract purchase decisions from consumers, and it also
provides discounts to further entice consumers to make purchasing decisions on the produced
product. 

Product quality refers to a product's ability to accomplish its purpose. (Brata et al., 2017)
According to the findings of the Brata et al. (2017), consumer purchasing decisions are higher
and more frequent when the quality of the final product is better.

The goal of this research is to identify the way, manner, conduct, behavior, and
management of college students' online purchasing decisions. It is to determine how payments
are handled;DEMOGRAPHIC
what techniques are used in giving and receiving payment or compensation, how
PROFILE
products are given by the seller and received by the buyer, and how online transactions are
 Age
handled.
 It
Sexis to learn about the various styles of college students, what factors they consider
when making
Allowance
decisions, and how serious they are about winning an item with them.

FACTORS THAT AFFECT ONLINE

PURCHASING DECISIONS

 Online reviews
 Product interest
 Pricing
ONLINE
 Psychological purchase PURCHASING
 Product quality DECISIONS
 FIGURE 1. SCHEMATIC DIAGRAM

The study will focus on consumer’s level of influence towards the factors that affect
online purchasing decision in consideration to their age, sex, and allowance.

Scope and Delimitations

The descriptive study mainly focuses on the online purchasing decision of college
students from the given aforementioned dimensions and how it influences their online
purchasing decisions with the use of adapted and modified survey questionnaires. The duration
of gathering data will cover the month of October 2022- December 2022. The primary subject of
this research study will cover College Students in Private Catholic Schools in the City of
Bacolod for the present academic year 2022-2023. This scope of the study will be limited to
College Students only who are currently enrolled in a Private Catholic school in the City of
Bacolod.

Significance of the Study

This study focuses on the influence of the factors that affects consumers' online
purchasing decisions. This study may be beneficial and may serve as a reference to the following
organizations or individuals.

         Business Owners. This study will enable business owners to launch cutting-edge
business ventures and take part in online transactions.

         Online Start-up Businesses. This study will help to encourage aspiring entrepreneurs to
take calculated risks and apply them in decision-making.

         Researchers. This study will allow Accountancy, Business, and Management (ABM)
students to obtain a deeper understanding of marketing strategies.
         Future Researchers. This study can also be utilized to assess the study in greater detail
and fill more gaps in the existing study.

Definition of Terms

Online Reviews refers to the reviews or product ratings of any online shopping
platforms.

Product Interest pertains to the customer’s preferences towards the product. It defines a
customer that has expressed an intention or interest in buying.

Pricing refers to how a consumer determines the value of a product or service.

Psychological Purchase refers to the consumer’s emotional reaction towards the product

that would lead them to purchase it.

Product Quality refers to a product or service's qualities that affect how well it can meet
consumer demands.
 Chapter 2
METHODOLOGY
Research Design

Kirumbi (2018) defines research design as a set of methodologies and processes for
collecting and assessing measures of the variables stated in the research problem. Therefore,
before starting to formulate hypotheses, a research design must be developed to be used for
collecting, evaluating, and interpreting observations and data.

In this study, the researchers used descriptive research design in order to determine the
influence from the factors that would affect online purchasing decisions of the aforementioned
variables and demographic profiles. According to Aggarwal (2008), descriptive research deals
with collecting information regarding current conditions or situations in order to describe and
interpret them. This technique of research entails more than just collecting and tabulating data; it
also requires correct analysis, interpretation, comparisons, and trend and relationship discovery.
Hence, the researchers used a descriptive research design considering that it addresses questions
regarding the subject of the study and collects quantifiable data, making it easier to statistically
analyze and develop strategies.

Respondents of the Study

The researchers will conduct a survey on College students here in Bacolod. The
respondents in this study were College Students in a Private Catholic School that were inclined
to complete the survey questionnaire.
Data Gathering Instrument

The adopted modified instrument from the published work of Cecilia Desvita Ratna
Elvandari1, Anggoro Cahyo Sukartiko, and Arita Dewi Nugrahini will be used in the study.  The
questionnaire will be divided into two (2) parts.  The first part of the survey will be the
demographic profile of the respondents, which directs the respondents to answer their details on
age, gender, and allowance. 

The second part will be the survey about the main topic of this study. The topic will be
focusing on the factors that influence consumer’s online purchasing decisions.  The instrument
will have a four-point Likert scale which will serve as the options for the answers of the
consumers in the aspects of the six dimensions reflecting online reviews, product interest,
pricing, psychological purchase and product quality. The following will be the scale:

                    CODE                    DESCRIPTION                        INTERPRETATION

      1                      Strongly Disagree                Very Low Level of Satisfaction

                        2                              Disagree                          Low Level of Satisfaction

                        3                                Agree                            High Level of Satisfaction

                        4                         Strongly Agree                 Very High Level of Satisfaction

Validity

A concept's validity is determined by how correctly it is measured in a quantitative

investigation (Heale & Twycross, 2015). The Adopted-Modified questionnaire will be validated
by (15) experts in research at La Consolacion College-Bacolod. Using the Content Validity Ratio
(CVR) developed by Lawshe (1962), the rating of 1-essential, 2-useful but not essential, 3-not
essential will be rated by the panel of experts. Each component of the research instrument must
pass the validation in the presence of experts in the field of research who were thought to be the
panel.
Reliability
According to Heale & Twycross (2015), reliability relates to the consistency of a
measure. When the answers of the survey generate a similar result, the finding is said to be
reliable. This established the validity of the instrument and allowed it to be used as instructed by
the panel members.

Data Gathering Procedure

This section narrates the steps taken by the researchers in order to collect the data needed
in this study. Bhandari (2020), defines data collection as a methodological process of compiling
observations or measures, that allows the researchers to gain original information regarding the
research problem. It encompasses the type of data collected, the source, and the means of gaining
data. This process is essential to ensure the integrity and validity of the research. In this study, in
order for the researchers to assess the hypothesis, they collected Quantitative data, which are
measurable by using statistical treatment. The college students of a Private Catholic School are
the source of data, and a survey was used as the means.

The researchers were trying to determine the factors that influence college students'
online purchasing decisions. To gather data, a survey was employed as the research instrument.
The researchers will provide the survey questionnaires to the respondents as soon as their
approval is received. The researchers will maintain confidentiality regarding the respondents'
answers, and will be used only for academic purposes.

Ethical Considerations

The researcher will personally meet the respondents in their designated classrooms and
explain the coverage or nature of the study and the need for their participation. The schedule of
the data collection with the respondents will be set at their most flexible and convenient time.
Conservative and respectful questions will be used in gathering data and information in order for
the respondents to feel comfortable and secured. The purpose, benefits, definition, and how the
study will be done will be informed towards the respondents. All the records will be assured that
it will remain within the researcher’s accessibility. The gained result from the conducted survey
will be emitted right after the approval and final discussion. These considerations will align with
the values and principles of the things and people involved in the study. 

Statistical Treatment

To interpret the data effectively, the researcher employed the following statistical
treatment with the help of a statistician.

For Objective 1, descriptive statistics, mean and standard deviation, will be used for the
college students level of influence towards the factors that affect online purchasing decision in
terms of online reviews, product interest, pricing, psychological purchase, and product quality
when taken collectively and when grouped according to age, sex, and allowance.

The information will be interpreted using the following description presented in the table below:

Interpretation Table for the Level of Influence in Online Purchasing Decision

Rating Scale Description Mean Score Range Interpretation

1 Not Effective 1.00 - 1.75 Not Satisfied

2 Minimally Effective 1.76 - 2.50 Slightly Satisfied

3 Effective 2.51 - 3.25 Satisfied

4 Highly Effective 3.26 - 4.00 Very Satisfied

For Objective 2, to test for the significant difference on the respondents’ level of
influence towards the factors that affect online purchasing decision online in terms of online
reviews, product interest, pricing, psychological purchase, and product quality when grouped
according to age, sex, and allowance. The data will first be tested for normality test using
Annova test if the results suggest a deviation from normality. When the result showed that it
cannot assume normality in the data set, non-parametric statistical test was utilized or Mann
Whitney U- test for sex and age variables and Kruskal-wallis test for allowance. 

References
 SAMPLE SURVEY QUESTIONNAIRE

Dear Respondents,
Good day! We are researchers from La Consolacion College – Bacolod and we are
currently conducting a descriptive research on the influence of the factors that affects online
purchasing decisions. We humbly ask for your cooperation and understanding in answering the
survey with all honesty. The information collected will be safeguarded by the researchers and
will only be used for the sole purpose of research.

Part I. Fill in the blank to answer your demographic profile.

Name (Optional): _______________________
Age: _____ Sex: 󠆶Male 󠆶Female
Average Weekly Allowance: _____

Part II. Instruments for Interpretation and Description

Please read the following and put a check on the numerical equivalent of your response with
the statements listed below.

CODE                    DESCRIPTION                        INTERPRETATION

1                      Strongly Disagree                Very Low Level of Satisfaction

 2                              Disagree                          Low Level of Satisfaction

3                                Agree                            High Level of Satisfaction

4                         Strongly Agree                 Very High Level of Satisfaction

Strongly Agree Disagree Strongly

Please take position in the following statements Agree Disagree
4 3 2 1
Online Reviews
1. Online reviews or product rating influence your purchasing decisions
2. Online reviews are trustworthy
3. Online reviews affects online purchasing decisions
4. Online reviews or feedbacks are credible
Product Interest
1. Assists you to communicate with the consumers interest
2. The product’s packaging attracts your desire to purchase
3. Imported products attracts your desire to purchase
4. A well-known product attracts your desire to purchase
Pricing
1. Cheaper prices influence online purchasing decisions
2. Discounts towards products or goods are highly recognized
3. The products are affordable despite its quality
4. Psychological pricing is a key deciding factor in purchasing a product
Psychological Purchase
1. You purchase products because it was influenced by other consumers
2. Word of mouth advertising affects your online purchasing decisions
3. Overrated products lets you purchase a product
4. Trending products allows you to purchase products
Product Quality
1. The products are high quality
2. The product quality is worthy despite of its price
3. The product quality is a key deciding factor in purchasing a product
4. The benefits of the product qualities influence online purchasing
decisions