Immaculada Concepcion College

Soldiers Hills III Subdivision, Barangay 180,

North Caloocan City, Caloocan, Philippines

Factors Drive Consumers In Patronizing Online Shopping:

Basis for Consumer Satisfaction

By:

MARLON D. ANCHETA

JHONRED R. CALAUS

CHERRY LYN F. LAMPINES

JOSHUA MONARES

RENZ ALBERT L. RABANERA

CHRISTIAN PAUL N. TINDOC

 TABLE OF CONTENTS

1.Introduction……………………………………………………………………….........................
1.1 Background of the Study…………………………………………….….…………... ………
1.2 Statement of the Problem………………………………….………………………………….
1.3 Theoretical Framework…………………………………………….….…………. ………….
1.4 Conceptual Framework………………………………...……………………………………..
1.5 Scope and Delimitation……………………………………………………………………….
1.6 Significance of the Study………………………….….………………………… …………...

2.Review of Related Literature……………………………………………………………………..

2.1 Definition of Terms………………………………………………………………………….
2.2 Foreign Literature……………………………………………………………………….…
 Introduction

The Internet has gained popularity in the 21st century. The Internet provides access to the

digital world, where people can quickly connect, stay updated on news, and find entertainment.

Online buying has become a popular trend in this digital sphere, benefiting buyers and

merchants. While vendors may grow their businesses and boost revenues, consumers can quickly

make purchases. In our digital age, internet buying benefits from this reciprocal advantage.

Online shopping is the practice of buying products straight from a vendor, bypassing any

intermediaries. Customers can compare these discounts with those of other options and select

from a variety of goods and services. This gives customers the ability to make well-informed

choices and select the best offers that meet their requirements and interests.

Online shopping is a form of e-commerce that enables customers to use a web browser or

a mobile app to purchase goods or services directly from a vendor over the Internet. In this sense,

internet purchasing may offer consumers a better option to purchase from and discover the ideal

cost that fits their spending plan. Additionally, it helps vendors track market trends and match

customer demands to turn a profit. Customers can choose from a wide range of goods, services,

and payment methods when they shop online. To demonstrate its convenience, a customer can

choose from a variety of product brands, pay online or with cash on delivery, and much more.
 Online purchasing is going to become more and more popular. However, there are also

hazards and difficulties involved with internet purchasing, even with all of its advantages. When

consumers make purchases online, their perceived dangers significantly increase their

apprehension. Despite the generally low pricing found on online shopping platforms, consumers

still have concerns about the longevity and quality of the products they purchase. There have

been too many instances to list, including instances where the items they ordered arrived late and

instances where the packages they received were fake.

Background of the Study

The Internet is one of humanity's most significant inventions in the 21st century.

With just one tap of our thumb or a press of our finger, we will be updated on new trends

on social media like Facebook and Instagram, entertained by watching videos on

Youtube, or able to buy something in online stores like Shopee or Lazada. According to

Bae Young (2006), students tend to trust the Internet to access information and

entertainment. The rapid growth of internet usage affects the information and

entertainment sectors and boosts the market. The emergence of the Internet has

contributed to various mediums for business activities and consumer behaviors.

According to Khurana (2019), electronic commerce, or e-commerce, is the ability to

manage transactions involving exchanging services and goods between two or more

parties using electronic tools and techniques.

 Billions of people worldwide are using the Internet because of its effectiveness

and convenience, and many are also encouraged to try online shopping. The rise of

e-commerce as a technology created for selling and buying a product or a service online

makes online shopping well known today. E-commerce technology automates business

transactions and workflow (Kalakota & Whinston, 1997). Filipinos are known to be

among the most active online shoppers in the world. According to Gupta (2023), the

Philippines' e-commerce market is expected to reach 968.9 billion ($19.0 billion) in

2026. "The Philippines is one of the fastest-growing e-commerce markets in Southeast

Asia, supported by high internet and smartphone penetration. "Gupta (2023). Millennials

are the most active online shoppers in the Philippines. According to Statista (2023), the

da revealed that most Filipino online shoppers, or 35.6%, are in the 25–34 age range.

Moreover, 29.3% of online shoppers in the Philippines are in the 18–24 age range.

When combined, these younger generations make up 64.9% of all shoppers. The

relevance of e-commerce is rising as consumers tend to follow the trend of online

shopping. Businesses are significantly observing the demand to meet this new

phenomenon in the market. It is vital on their side to know the trend to create a profit.

According to Cudi and Cai (2008), online shopping facilitates purchasing products or

services, searching for retailers, determining product and service prices, communicating

with consumers and retailers, and selecting the payment method. According to PPRO

(2023) on the Statista website, e-wallets dominated online payments in the Philippines,

accounting for 31% of e-commerce transactions.

 The quantity and quality of products or services that a business delivers to

customers or uses utilizing online shopping can determine how competitive the

businesses are nowadays. One of the reasons why customers buy online is because the

products are usually cheaper or inexpensive. In addition, there are differences between

affordable and cheap goods. According to Salahuddin and Ali (2020), Affordable items

are what customers are more willing to pay for, given that they are fair and respectable.

However, despite the convenience of online shopping, there are still challenges and

disadvantages that need to be addressed, such as perceived risks and the quality of

products and services that can be bought online.

Statement of the problem

This study aims to determine the factors that affect the basis for consumers

satisfaction in patronizing online shopping. Specifically, it looked for the answers to the

following questions:

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

1.1 Age:

1.2 Sex:
 1.3 Status:

1.4 Student:

1.5 Employee:

1.6 Seller:

2. What are the Reasons of Respondents why do online Shopping?

3. Challenges / Problem:

4. What are the Factors Drive Consumers In Patronizing Online Shopping: Basis for

Consumer Satisfaction of the respondents to buy a product or a service online in

terms of the following:

4.1 Price

4.2 Promotions (Discount, Voucher)

4.3 Brand Image

4.4 Rating

4.5 Quality of Products

4.6 Customer Support

5. What are the level of satisfaction of the respondents with the products or services that they

bought online shopping in terms of the following:

5.1 Time of arrival of the product

5.2 Quality of the product

5.3 Affordable Price of the product

Theoretical Framework

This study was anchored on the theory of planned behavior. It was introduced as

a cognitive theory by Azjen(1985). It guides professionals and other researchers to study

the behavior of an individual or the masses by observing the intention of the subject to

engage in a specific Product. According to the theory of planned behavior, intentions are

determined by three variables.

Figure 1: Theory of Planned Behavior

 The first one is the behavior, the next is the Subjective norm, and the last is the

perceived behavioral control. Behavior is the favorable and unfavorable evaluation that

people think first when they consider the Product. Subjective norm considers the ideas,

approval, and disapproval of other people about a specific Product.

The researcher of this research suggests that when the customer intends to buy

online, his evaluation and experiences towards online shopping may greatly affect his

intention to shop online. The opinions of other people may also affect the Satisfaction of

customers towards online shopping. Taking these factors into action, one can better

understand their intention and potentially modify their Satisfaction.

Conceptual Framework

The conceptual framework will represent the study process, which comes from the input,

process, and output. The input contains variables that include the respondent's profile, Factors

Derive In Patronizing online shopping, and the satisfaction of the respondents. The process

represents the procedures and methods followed to gather information from the respondents.

The output contains the interpretation of the respondents' responses from the survey and the

researcher's recommendation for the study.

Figure 2: Conceptual Framework
 Scope and Delimitations

This research study is primarily focused on describing the factors Drive in patronizing

online shopping satisfaction of the respondents, which was determined by measuring their

responses. The total number of respondents are 50 respondents. This research study was limited

and conducted only for students, employees and Sellers who are buying in online shopping .

Through this study, the researchers identified satisfaction, and the amount online shoppers

usually spend when buying online. The method the researchers will use to collect information

will be based on the data from the survey that respondents answered. However, the study will

not find the specific product or the specific platform they used when the respondents bought

online.

Definition of Terms

For better understanding this research, the following terms were operationally

defined:

Attitude. A set of emotions, beliefs, and behaviors toward a particular object, person,

thing, or event. It can have a powerful influence over behavior and affect how people act

in various situations.
Behavior. The range of actions and mannerisms made by individuals, organisms, systems

or artificial entities in some environment. These systems can include other systems or

organisms as well as the inanimate physical environment.

Consumer Behavior. The actions and decisions that people or households make when

they choose, buy, use, and dispose of a product or service.

Cash on Delivery. Cash on delivery (COD) is a type of transaction where the recipient

pays for a good at the time of delivery rather than using credit.

Credit Card. A credit card is a payment card, usually issued by a bank, allowing its

users to purchase goods or services or withdraw cash on credit.

Customer. The recipient of a good, service, product or an idea, obtained from a seller,

vendor or supplier via a financial transaction or an exchange for money or some other

valuable consideration.

E-Commerce. The buying and selling of goods and services, or the transmitting of funds

or data, over an electronic network or tool, primarily the internet.

E-Wallet. An online payment tool or software application that serves as an electronic

version of a physical wallet. Also known as an electronic wallet, e-wallet or mobile

wallet, it enables users to securely store digital versions of payment methods.

Online Shopping. A form of electronic commerce which allows consumers to directly

buy goods or services from a seller over the Internet using a web browser or a mobile
app.

Perceived Risk. The customer’s perception of the risks associated with any purchase is

mostly associated with products that are expensive such as houses or cars or products

that are complex and have many features such as Computers or laptops.

Perceived Satisfaction Control. This refers to a person's perception of the ease or

difficulty of performing the satisfaction of interest. Perceived Product control varies

across situations and actions, which results in a person having varying perceptions of

product control depending on the situation.

Subjective Norm. A person's perception of the social expectations to adopt a particular

behavior. Subjective norms are influenced by a person's normative beliefs combined with

the person's motivation to comply.

Foreign Literature

Technology

Technology has become an increasingly used tool in society, impacting both

businesses and consumers by increasing their presence in online environments

(Davidaviciene et al., 2021). E-commerce technology helps in automating business

transactions and workflow (Kalakota & Whinston, 1997).

E-commerce

Electronic commerce or e-commerce is the ability to exchange goods and services

between two or more parties using electronic tools and techniques (Khurana, 2019).

According to Bucko and KakaLejcik (2018), optimizing e-commerce stores is crucial for

meeting customer expectations as online shopping becomes more common. According to

Run Srisawat et. Al (2019). The e-commerce industry has opened up vast opportunities

for young online shoppers. By analyzing the demographic characteristics, it is clear that

the highest number of people who shop online are between the ages of 18 and 30.

Therefore, online sellers should focus on this age group to ensure better growth

prospects in the future. According to Gupta(2023), the Philippines has one of the most

rapidly growing ecommerce markets in Southeast Asia, which is supported by high rates

of internet and smartphone usage.

Purchasing Product

According to Bucko and KakaLejcik (2018), the price is especially important for

university students, as they are usually not employed and have limited financial budgets.

Run Srisawat et. Al (2019) states that online purchasing Product is largely influenced by

two key factors: perceived benefits and psychological factors. If perceived benefits are

presented in favor of online purchasing, there is a high likelihood that the

consumers will opt for it. Similarly, psychological factors also play an important role in

determining the consumer's satisfaction towards online purchasing.

The present study offers valuable insights based on the results and findings on

online shopping Satisfaction. Firstly, retail businesses need to take measures to reduce

risk and increase customer confidence in online retail. Retail managers should use

various channels like social media, promotions, and online-only discounts to encourage

customers to make purchases (Pandey & Parmar, 2022).

The online shopping satisfaction of consumers is influenced by various factors

that include trust, attitude, shopping experiences, and shopping enjoyment. According to

a previous study, internal influences such as self-efficacy, perceived credibility, and

performance expectancy also play a significant role in shaping consumers' online

shopping satisfaction (Pandey & Parmar, 2022).

In the online world, things change rapidly, and companies are presented with a

wide range of products, making it difficult for customers to choose. Therefore, when

conducting business online, companies must consider consumer behavior, which has a

significant impact on store offerings, in addition to product quality and pricing

(Davidaviciene et al., 2021).

Risks of Online Shopping

In a conference paper about their research study on Alibaba.com, Yuan Xu et al.

(2015) suggested that business managers should pay attention to the perceived risk factor

when making pricing decisions. The study found that perceived risk is just as important

as price in determining the consumer's purchase intent. If the perceived risk of a product

is high, the purchase intent will be low and vice versa.

Ariffin et al. (2018) identified various types of perceived risk that consumers

associate with online purchases. These risks include financial risk, product risk, security

risk, time risk, social risk and psychological risk. Out of these, social risk was found to be

the most significant factor affecting consumers' purchase intention.

When shopping online, internet users need to be aware of potential risks such as

payment security, data protection, and validity of electronic contracts, product quality,

and enforcement of their rights. Compared to traditional transactions, online shopping

poses new challenges, such as concerns around product delivery and the security of

payments made with credit and debit cards. (Ariffin et al., 2018)

It is still uncertain how and when online reviews are taken into account by

consumers when they engage in risky online transactions. This knowledge can be

beneficial for online sellers to enhance their business strategies as consumers' perception

of risk can significantly influence their buying decisions (Ariffin et al., 2018).

According to Kumar (2016), Online shoppers often fear unsecured transactions

and misuse of personal information provided during online payments. To combat this,

online sellers strive to build trust and improve the overall online shopping experience.

Local Literature

According to Layante et al. (2022), public school teachers in Calapan city

frequently consider and use online shopping despite the associated risks. However, other

People still prefer physical stores. According to So (2019), Filipino consumers have a

unique way of buying products that are deeply ingrained in their daily lives. Various

factors, such as personal, social, cultural, and psychological, significantly influence their

purchasing behavior. According to Mina et al. (2021), the main reason why customers

buy online is convenience. According to Mina et al. (2021), the population of online

shoppers is dominated by females and is mostly made up of students.

According to Statista (2023) , millennials are the most active online shoppers in

the Philippines. The data shows that 35.6% of Filipino online shoppers are aged between

25-34, while 29.3% are aged between 18-24. When combined, these two age groups

make up 64.9% of all shoppers. According to PPRO (2023) reported on the Statista

website that e-wallets accounted for 31% of e-commerce transactions in the Philippines.