CHAPTER
THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
(RATIONALE)
Globally, the emergence of internet purchasing platforms has completely changed customer behavior.
However, businesses and educational institutions need to know the unique buying patterns of certain demographic
groups, like students. Students are increasingly likely to shop online, thus it is important to investigate their
preferences and purchasing habits to inform marketing plans and instructional activities.
(SETTING)
The target audience for this study is students enrolled in the College of Business Administration (CBA) at
City of Malabon University (CMU). CMU serves as a microcosm for broader trends in Philippine college students'
purchasing habits. Gaining insight into the subtle differences in the shopping behaviors of CBA students can benefit
academic institutions as well as local businesses.
(BASIC LITERATURE)
Marketing studies have always relied heavily on consumer behavior research, and Internet shopping platforms
have created new opportunities for this type of study. Convenience, price sensitivity, and brand loyalty are a few
examples of elements that have been shown to have an impact on purchasing decisions in studies on student consumer
behavior (Kotler & Armstrong, 2016). Furthermore, consumer behavior has been further impacted by the everyday
integration of social media and technology, especially among younger populations (Mangold & Faulds, 2009).
(SERIOUSNESS OF THE PROBLEM)
It is not just an academic activity to comprehend the consumer spending behaviors of CBA students;
businesses and educational institutions can benefit from this knowledge as well. Companies can become more
competitive in the internet economy by customizing their marketing strategy better to meet the demands and tastes of
this group. In a similar vein, educational institutions can use the knowledge gathered from this study to create
curricular additions or support services that encourage students to act responsibly as consumers.
(GENERAL OBJECTIVE)
This study aims to investigate the purchasing habits of CMU CBA students concerning internet shopping
platforms. In an attempt to provide a complete picture of how students engage with e-commerce, the study examines
factors such as online shopping platform preferences, frequency of purchases, and decision-making processes.
(OVERALL PURPOSE)
The data and results that will be gathered in this study will provide information to companies in the online
retail sector about the unique requirements and preferences of CBA students, allowing them to adjust their marketing
plans appropriately. To create a more knowledgeable and responsible customer base, educational institutions can also
use the data to improve student support services or incorporate pertinent themes into the curriculum. In the end, this
research adds to the conversation on consumer behavior in the digital era, which has consequences for industry and
academia alike.
SIGNIFICANCE OF THE STUDY
This study will be beneficial to the following:
Public servants. Knowing what customers buy can help us understand how customer behavior affects the economy.
These insights can help public servants make more informed decisions about policies and regulations by helping them
understand the larger economic landscape.
Educational Institutions. Organizations like CMU stand to gain from knowing what their students are buying. This
information can help with the creation of curricula, possibly incorporating useful information about consumer
behavior into business programs.
Online Retailers and Marketers. Understanding customer buying patterns is essential for companies that operate on
e-commerce platforms to create efficient marketing plans and enhance user experience. They can modify their
offerings to better suit the requirements and preferences of CBA students by using the insights from this study as a
guide.
Future Researchers. Additional research on customer behavior within particular demographic groups or educational
institutions can be built upon the findings of this study. Researchers can expand upon the results to investigate more
aspects of customer preferences and decision-making processes.
Overall, this study is significant beyond its immediate boundaries and provides insightful information to a range of
stakeholders in business, governance, and academia.
REVIEW OF RELATED LITERATURE
This chapter contains the published and unpublished thesis and dissertations, both foreign and local, ideas,
articles, and others. The ones included in this chapter help familiarize information similar and relevant to the
Customer Purchasing Habits of CBA Students of the City of Malabon University in Online Shopping Platforms.
FOREIGN LITERATURE AND STUDIES
Perceived Behavioral Control
Studies accomplished by Noor et al. al., (2020) claimed that purchase intention can be strongly and favorably
impacted by perceived behavioral control. According to authors Barnes et al. (2007) and Haider & Nasir (2016), those
who choose to shop online encounter great financial risk when determining whether or not to proceed with the
transaction. This is because of threats that can result in negative feedback and influence customer behavior. Concerns
over the privacy and safety of using credit cards online and sharing personal information may arise among customers.
Consequently, when customers place an order online, they would rather not use credit cards to make payments;
instead, they prefer to use alternate methods including cash on delivery, online and offline bank transfers, and third-
party secured payment methods like PayPal.
Based on research by Nayyar and Gupta (2011), found that customers' first impressions are mostly influenced
by their perception of behavioral control. A strong impression of behavioral control gives customers the impression
that there is a trustworthy business operating behind the scenes. Online shops that are easy to use and browse are
crucial. There should be simplicity in the processes and procedures. Reduce the amount of extremely complex needs
and processes. The number of customers who will make purchases on an online store is influenced by how easy they
are perceived to be and how easy they are to use.
According to Rahman & Islam (2018), Bangladeshi internet users place their orders online because it allows
them to save time, permits home delivery, easier shopping, and offers a greater selection of goods such as clothing,
jewelry, and tickets than those available in physical establishments.
Perceived risk can be described as the discomfort felt by customers through the impersonal interaction and
intangible impacts that arise from working online. For example, it seems that the biggest barrier preventing customers
from making online purchases is a lack of trust. Before making a purchase, customers might also need to examine and
feel the items, meet with friends, and get further input on them. Online shopping is discouraged by numerous serious
problems, as stated by the authors Chen and Mort (2007); Pavlou&Gefen (2004); Warkentin et al., (2002). In line with
this research, a previous study indicates that the main reasons customers choose not to participate in online
marketplaces are fear of fraud, lack of standard technology for safe payment, privacy concerns, and a general lack of
trust in e-commerce. Chen and Tan (2004); Hoffman et al., (1999); Lee and Turban (2001); Olivero and Lunt (2004);
Ranganathan and Jha (2009); Riegelsberger et al., (2005).
Attitude
As per research conducted by Ayden and Demir (2011), e-commerce customer tastes and behaviors suggest
that those between the ages of 26 and 35 who earn 1500 Turkish Liras or more and have a bachelor's degree are more
likely to favor e-commerce. The things that are most frequently purchased on Turkish e-commerce sites include
apparel, stationery, online ticketing, and electronics. Additionally, trendyol, HepsiBurada, and Alibaba are the most
favored online retailers. They also watched how public personnel used the internet to make purchases. Customers with
higher incomes and levels of education have been observed to make more online purchases.
Nagadeepa et al. (2015) claim that sales promotions have a big impact on how customers behave. Promotion
directly affects consumers' behavior by encouraging them to make purchases. This leads to larger sales of the product
because of their encouraged impulsive buying traits, which may lead to brand switching.
According to Crespo et al. (2009), product risks may also involve financial loss since they give customers the
impression that there might be fraudulent activity on the Internet that results in their money being lost. In line with this
study, product risk was brought about by how the product's quality was described and presented since this greatly
affected the consumer's ability to comprehend the product. The inability to examine the goods and a poor presentation
of product details may increase consumer fear (Dastane, et al., 2018; Wong, et al., 2019).
Intention
Consumers in industrialized nations are used to using the internet, and e-commerce has improved their quality
of life, claim Uwemi and Fournier-Bonilla (2016). On the other hand, customers in developing countries are used to
in-person interactions, do not trust technical processes, and cannot afford the related risks. This situation highlights the
need for research into the crucial components that could encourage consumers in developing countries to embrace e-
commerce so they can benefit from the same social and economic benefits that developed countries already enjoy.
Subjective Norms
According to Hasbullah et al. (2015), there was a strong positive correlation between the intention to purchase
online and subjective standards. People may provide biased information, therefore consumers will look to their
reliable referents such as peers, friends, and family for advice. It demonstrates how positive suggestions from groups
of people have a significant impact on the acceptance of those who are closest to customers.
According to Ramaya and Ali (2016), customers consider product pricing while making judgments and
deciding whether or not to consume a particular product. Sometimes it's required to persuade customers to prefer
buying a particular product over a competitor's and to buy more rather than less to convince them to favor buying now
over waiting till later.
LOCAL LITERATURE AND STUDIES
Attitude
As stated by Eunyu Nis (2014) since internet shopping offers so many advantages to both customers and
sellers, it has become a popular trend among today's youth. When customers conduct internet research before making
a purchase, their confidence in the product increases.
Behavior
Based on the research of Chen and Mort (2007); Pavlou&Gefen (2004); and Warkentin et al., (2002), it seems
that the biggest barrier preventing customers from making online purchases is a lack of trust. Before making a
purchase, customers might also need to examine and feel the items, meet with friends, and get further input on them.
According to a different study by Crosta et al. (2021), psychological variables related to the pandemic of
consumer behavior have an impact on consumers. The pandemic has altered consumers' entire way of life and is not
simply a health tragedy. Due to this, two new aspects have emerged: utilitarian shopping, which deals with
requirements like food, clothing, medicine, and healthcare, and hedonistic shopping, which deals with non-necessities
like non-food items. The study claims that because of the negative emotions—tension, worry, and depression—caused
by the COVID-19 virus, consumers will buy both necessities and non-necessities impulsively.
While there are advantages to making purchases online, conducting business online has several disadvantages.
According to Svonavec (2017), customers may find backorder items to be quite difficult, particularly around the
holidays. They also miss the face-to-face interaction that online businesses are unable to offer.
Intention
According to Macarayo (2017), prominent merchants would use these conditions as a chance to ship their
merchandise effectively and generate more income. Customers are drawn to online shopping because it is convenient,
cost-effective, and provides a wide variety of products on a single website. Customers can purchase products from
online stores with less effort by using internet-connected devices including smartphones, desktop computers, laptops,
and mobile phones. One of the site's attractions is the offer offered in the form of savings and discounts, which may
tempt and provide the customer the advantage over choosing to purchase in person rather than online.
According to Eunyu Nis (2014), Michael Aldrich, an English entrepreneur, founded online commerce in 1979.
His device linked a real-time transaction processing computer to a modified home TV through a domestic phone line.
Because Internet shopping offers so many advantages to both customers and sellers, it has become a popular trend
among today's youth. When customers conduct internet research before making a purchase, their confidence in the
product increases. There are many advantages for customers who shop online. Since online retailers are always open,
customers do not have to deal with frustrating long lineups over the holidays, and the problem of a store closing
before they can arrive on time is greatly reduced.
Subjective Norms
The study conducted by Hasbullah et al. (2015) is consistent with the study done by Kardes, Cronley, and
Cline (2012), customers are still likely to encounter marketing material in the shape of commercials, product details
on packaging, referrals from friends and family, and brand trademarks on nearly everything, even if they decide not to
make a purchase.
SYNTHESIS
The Internet is rapidly becoming a global phenomenon and is changing the way people buy goods and
services. With many arguing that the internet has a bigger influence on people's daily lives than it did a generation
before, the internet has emerged as the center of contentious issues. Business-to-business dealings have changed as a
result. Online shopping has become the new norm in Southeast Asia. The most popular Internet activity these days is
shopping, surpassing even email and site surfing. The majority of people choose to make purchases online using their
gadgets, most of which are mobile devices, but some of which are laptops and desktop computers. It follows that a rise
in mobile commerce will be seen soon. The main reason why clients shop online is convenience. Online shopping is
also more popular because it's more convenient and less expensive. The firm's attitude and behavior about online
purchases are the primary factors determining e-buying potential. Their purchasing habits are influenced by the
growing popularity of online shopping and the rapid improvement of technology.
To gain a competitive edge in the market, it is preferable to comprehend consumer behavior in the context of
online purchases. Consequently, to satisfy customer preferences, it is required to evaluate and identify the factors that
encourage individuals to make online purchases. In addition to the factors that drive consumers to make purchases
online, the age, gender, income, and employment demographics of these shoppers are important to discover the
strategies they employ. Since online shopping is a relatively new medium, consumer behavior in this area differs
significantly from traditional consumer behavior. For this reason, it is equally important to identify the factors that
motivate people to make purchases online. It consists of many components that encourage consumers to make an
online purchase to make a decision. For stores to stay competitive and improve the compatibility of their items, these
components are essential.
THEORETICAL FRAMEWORK
According to the theory of planned behavior, a person's purpose influences their actions. The theory describes
how someone perceives their ability to carry out a task or conduct. The theory of planned behavior evolved from the
reasoned action theory, presented in 1975 by Martin Fishbein and Icek Ajzen.
Perceived behavioral control, or the motivational variables influencing behavior, is the first part of the theory
(Ajzen, 1991). A behavior is more likely to be carried out when there is a greater willingness to engage in it. The
second component is an individual's attitude toward the action, or how much they think positively or negatively about
a certain activity. Behavioral beliefs and outcome judgments combine to form attitudes. The third idea is the
subjective norm, which is a societal pressure to engage in or refrain from engaging in a particular behavior. Ajzen
(1985, 1991) established the concept of planned behavior to describe behavior under human control. This point of
view centers on an individual's intentions. As per Ajzen, our intention to act in a particular manner may lead to the
expectation of our behavior.
This theory attempts to investigate how the impulse to make an online purchase is influenced by subjective
norms, attitudes, and perceived behavioral control, as well as how these factors affect customer online purchasing
behavior and intention.
CONCEPTUAL FRAMEWORK
To further the objectives of the study, Figure 1 presents a conceptual framework that offers an orderly way to
evaluate the variables that influence respondents' purchasing habits and to assess those behaviors. The framework will
aid readers in comprehending the current research process by offering a graphical depiction of the entire investigation
procedure.
This conceptual framework will be examined from top to bottom, beginning with the customer purchasing
habits of CBA students at the City of Malabon University. The previously mentioned purchasing habits are described,
together with the variables depicted in a pentagon-shaped figure.
Figure 1. Paradigm of the Study
The research components' information and data are essential for understanding the theories provided in this
work. The respondents' profile is the first part of the input (figure 1), which assists the researchers in identifying the
respondents. It contains information on the respondents' purchasing habits. This purchasing habit was described using
the five variables in the middle part of the framework: perceived control behavior, attitude, behavior intention, and
subjective norms. Survey questionnaires are used to acquire information from respondents. To develop efficient
recommendations for influencing respondents' online purchasing habits, researchers need to identify which habits are
most efficient based on the relevant variables.
STATEMENT OF THE PROBLEM
This study aims to determine the Customer Purchasing Habits of CBA Students of the City of Malabon
University in Online Shopping Platforms. The following are the problems of the study that researchers aim to find
answers to;
1. What is the profile of the respondents among online shoppers with regard to;
1.1 Age,
1.2 Sex,
1.3 Course,
1.4 Allowance,
1.5 Online Shopping Platform
2. How can the purchasing habits of the respondents be described along with the following variable:
2.1 Perceived Behavioral Control
2.2 Attitude
2.3 Behavior
2.4 Intention
2.5 Subjective Norm
3. Is there a significant difference in the purchasing habits when the profile of the respondents is considered?
4. Based on the result of the study, what efficient habits can be recommended and/or considered to influence customer
purchasing habits in using an online shopping platform?
HYPOTHESIS
H○. There is no significant difference in the purchasing habits when the profile of respondents is considered.
SCOPE AND DELIMITATION
The main focus of this study was to analyze the purchasing habits of College of Business Administration
students of the City of Malabon University. The study will include an analysis of factors impacting their buying
choices, including product preferences, consistency of online shopping, preferred online marketplaces, and
justifications for selecting online shopping over traditional methods.
The study will focus on the College of Business and Accountancy students of the City of Malabon University,
minimizing the significance of findings to various student populations or academic institutions. However, this study
will not be generalizable to other college departments.
DEFINITION OF TERMS
Attitude - a feeling or opinion about something or someone, or a way of behaving caused by this.
Behavior - how one acts or conducts oneself, especially toward others.
Intention - a thing intended; an aim or plan.
Online Shopping - a form of electronic commerce that allows consumers to directly buy goods or services from a
seller over the Internet using a web browser or a mobile app.
Perceived Behavioral Control - refers to a person's perception of the ease or difficulty of performing the behavior of
interest.
Purchasing Habits - the products that particular customers usually buy and the places where they buy them.
Subjective Norm - a person's perception of the social expectations to adopt a particular behavior.
CHAPTER 2
METHODOLOGY
This chapter goes into the research methodology, discussing the research design, participants and sampling
procedure, instrument of the study, data gathering procedure, and analysis methods used to acquire a better
understanding and critically analyze the research conducted.
RESEARCH DESIGN
This study employs a descriptive research design and a quantitative approach to examine the
purchasing habits of CBA students at the City of Malabon University across various online shopping
platforms. Researchers will explain these patterns and potentially study the underlying causes of their online
buying behaviors by gathering numerical data using survey questionnaires. The primary objective is to
provide a clear and thorough picture of how this particular customer demographic conducts online
purchases.
According to Bhandari (2020), The process of gathering and evaluating numerical data is known as
quantitative research. It can be used to test causal relationships, identify patterns and averages, create
predictions, and extrapolate findings to wider populations.
PARTICIPANTS AND SAMPLING PROCEDURE
The respondents of this research are a total of a hundred (100) selected undergraduate students
enrolled in the College of Business Administration (CBA) at the City of Malabon University. They
participate actively in academic activities and are probably very interested and engaged with business
administration-related topics. Their perspectives as well as their experiences as CBA students provide
insightful information about the subject of the study.
The researchers chose to employ stratified sampling in this study. Stratified sampling is used to
guarantee that every subgroup within a population is represented by sampling proportionately from each of
the strata that are created. By facilitating subgroup comparison and pattern identification within the
population, this method improves the precision, accuracy, and generalizability of conclusions.
INSTRUMENT OF THE STUDY
This study's research instrument is a survey questionnaire which is adapted from recent, related studies. The
researcher meticulously modified these instruments to align with the study's context. Following these modifications,
the researcher established the validity and appropriateness of the questionnaires for this specific study. The survey
questionnaire is divided into two sets. The first set collected the respondent’s demographic information such as age,
gender, course, allowance, and online shopping platforms.
The second set of the questionnaire will be administered using a Likert Scale and will focus on topics relevant
to this research. The questionnaire includes the following variables: (a) Perceived Behavioral Control: This section
offers questions to determine how easy or difficult respondents find it to purchase online. It assesses their perceived
competence to navigate the online purchasing procedure; (b) Behavior: This section consists of questions about the
online shoppers’ acts or conducts themselves towards online shopping; (c) Attitudes: The questions here analyze
respondents' overall feelings about online shopping. Its goal is to determine how likely or eager the respondents are to
make online purchases; (d) Intention: It delves deeper into the motivations behind online purchases. The questions
attempt to determine the key motivators for purchasing online; (e) Subjective Norms: This section focuses on external
influences. The questions are designed to determine how much other people's online shopping practices influence
respondents' buying intentions.
DATA GATHERING PROCEDURE
Before conducting the survey, the researchers secured permission from the City of Malabon University
authorities. A letter of request was sent to the Dean of the College of Business Administration which the research
adviser and the Dean in charge of the College of Business Administration noted. The researchers then asked for the
participants’ permission and disseminated the survey questionnaires to the respondents who are the CBA students of
the City of Malabon University. The respondents were well-informed about the directions for answering the survey.
Questionnaires are retrieved by the researchers to be tabulated and processed manually into a Microsoft Excel file.
The data collected were used for further understanding of the study and interpretation.
DATA ANALYSIS AND STATISTICAL TREATMENT
The survey was conducted in person, with researchers administering questionnaires directly to
participants. To summarize the data, a manual approach will be used. This involves tallying the responses
for each question. The results will be presented in two ways:
Frequencies: The number of times each answer choice was selected will be manually counted and recorded.
Percentages: The proportion of respondents who chose each option will be calculated by dividing the
frequency for that choice by the total number of participants and multiplying by 100.
For the demographic profile section, a more in-depth analysis will be conducted. Researchers will
employ percentages to show the distribution across categories like age groups or preferred stores.
Additionally, for numerical variables like allowance amount, a weighted mean will be calculated manually.
This will involve multiplying each allowance value by its corresponding frequency, summing those
products, and then dividing by the total number of participants.
The formula for calculating the Percentage and frequency of the results can be expressed as follows:
P=(f/n)*100
Where:
P= Percentage
f= Frequency
n= number of respondents
Weighted Mean
The weighted mean is a type of mean calculated by multiplying the weight (or probability) associated with a
certain event or outcome by its quantitative outcome and then summing the results. The data will be examined with
the weighted mean. The data to be examined will be obtained from SOP 2 and evaluated using a rating scale. The
weighted mean is calculated using the following formula:
Where:
W = weighted average
n = number of terms to be average
Wi = weights applied to x values
Xi = data values to be averaged
Null Hypothesis Statistical Testing
The null hypothesis is a statement concerning the value of a parameter (population),such as the myu
or population mean (µ)) or population percentage (p). It consists of the equality condition and is indicated as
H0, often known as H-naught.
Analysis of Variance (ANOVA)
Analysis of Variance (ANOVA) will be used to assess the different variables that are included in the
study. As a result of this test, the degree of variation or difference between the variables will be discussed.
To answer the inferential question posed by SOP 3, the ANOVA test focused on SOP1 and SOP2.
ETHICAL CONSIDERATION
This study holds significance for maintaining scientific integrity, and human rights and creating a partnership
between science and society. These ethical considerations ensure that research participants participate willingly,
completely understand, and in a safe environment.
Informed Consent. The questionnaire includes a consent form wherein participants are asked if they have given their
approval to participate in the study.
Voluntary Participation. It was made apparent to the participants that their involvement was entirely voluntary and
that they may withdraw their consent at any moment. For the respondents to understand the advantages and
disadvantages of taking part in the study, the researcher also clarified the investigation's purpose and objectives.
Anonymity and confidentiality. The researcher makes sure that no one not directly participating in the study will
receive access to the participant's demographic profile or personal data. Data collection is subject to the Data Privacy
Act of 2021, also known as RA 10173. This act promises to protect each student's privacy while ensuring that it can
fulfill its duty and responsibilities to the fullest extent possible. Furthermore, to guarantee that participants' responses
would not reveal their identity in the research article, the survey questionnaires were kept anonymous.
Honesty, sympathy, and respect. The researcher is committed to respecting the participants' rights and giving proper
credit to the original author throughout the study process. It is imperative to recognize participants as individuals
deserving of respect and meaningful consideration. The respondents were treated with honesty, sympathy, and respect.
Data Access and Security. Only the researchers, professors, respondents, beneficiaries, and other study participants
have permission to view the data.