Research Take xxx2 Autosaved
Research Take xxx2 Autosaved
March 2017
Chapter 1
As the technology increases, the internet has also developed into a massive
global market place for the exchange of goods and services. Online shopping is
broadly defined, including finding online retailers and products, searching for product
a plan to purchase a particular goods or service in the future. On the other hand,
business. This has direct impact in attracting new customers and retaining good
perception of customers influence their intention to shop online plays a vital role to
succeed in the highly competitive e-commerce environment (Cai and Cube, 2008;
Bailey, 2017).
They purchase items online because of their perception that online shopping is
useful and easy to use. They perceive it as useful because of the of the product
alternatives that online sellers provide that makes shopping more effective and the
ability of online shopping to fulfill their needs faster. As people perceive that
technology is easy to use, they also perceive that online shopping is easy to access
as for comparing products, and prices and finding desired items. They perceive that
online shopping will free them from difficulties (Davis et al., 1989; Pavlou 2003;
Junati, 2014).
of consumers who are turning to the Internet to conduct product research and
guarantee that they are getting the best price or deal. According to Visa Research
3
(2015), Filipinos’ top reasons for doing their shopping online are convenience,
customers to buy online because of its amenity. Visa Research (2015) also said that,
adjusting or changing the price has a big impact on the marketing strategy of the
seller. Customers prefer to buy online if the price is affordable. Also, it eliminates the
When a buyer buys something through online for the first time, it is either they
continue to engage in acquiring products online or they stop. So, it is important that
sellers must know what their buyers and potential buyers perceive about the
business. It is significant that sellers identify their customers and potential customers’
perception that influences their intention to shop online to have insights on how to
further improve their service offered; thus there is a need to conduct this study.
Also this study will figure out the most important and relevant factors which
may highly influence the customers’ online shopping intention. This will inform online
sellers and those who are planning to engage in such business on how to further
improve their performance to draw new customers and retain current customers.
The purpose of this study was to find the consumer’s perception and online
City;
4
City;
2.1 convenience,
2.3 price?
shopping intention?
Hypothesis
shopping intention.
Customer’s Perception
purchase behavior, and it is the process by which an individual select, organizes and
interprets the information he or she receives from the environment (Sheth et al.,
2004). What consumer thinks will affect their action, buying habits, and so forth, thus,
decisions based on what they perceive rather than on the basic of objective reality
information products and services from anywhere in the world and from different
sources other than solely from the product seller. The combination of less time
5
amount of information on the web has, however, led customers to demand more
control, less effort and greater efficiency during shopping (Jarvenpaa and Todd,
1997). In order to respond to the customers’ desire for control and convenience, web
stores have to design an efficient system to enable consumers to easily find what
they need, learn more about it and quickly make a purchase decision (Baty and Lee,
1995).
According to Davis et al. (1989), perceived ease of use refers the degree to
which the system requires very less or minimal effort to use, the effort is meant to
contain both intellectual and physical effort, and how simple it is. Ease of use tells
that how simple it is to use the Internet as a shopping channel (Monsuwe et al.,
2004). Szymanski and Hise (2000) used focus groups of consumers which shop
online to identify the satisfaction related to online shopping and identified as the
Customers see the Internet as a way to shop effectively and efficiently. The
higher the website can provide comfort in searching and obtaining products online,
comparative shopping and search for the preferred products (Kwon and Lee, 2003
makes a technology easy to use. The work of Selamat et al. (2009) further added
that a technology which is perceived to be easier to use than another is more likely
the slower will be its rate of adoption. This is supported by Teo (2001) as the study
concluded that a system which is easy to use often requires less effort on the part of
users and thereby increases the likelihood of adoption and usage of a particular
technology.
Other scholars have also found that the perceived ease of use had a positive
influence on consumers’ attitude in using the Internet to shop online (Bisdee, 2007;
Yulihasri & Daud, 2011). This is consistent with the work of Childers et al. (2001)
which argued that online retailers which are able to provide online shopping sites
which are clear and understandable, with less mental effort requirement, and allow
consumers to shop the way they want to shop results in ease of use perceptions in
consumer minds with favorable attitudinal attachment to online retailers which are
able to do so.
Perceived Usefulness
This was defined by Fred Davis as "the degree to which a person believes
that using a specific system would improve his job performance (Davis 1989).
"utility" is the efficiency with which Internet shopping helps consumers to do their job.
According to (Barkhi and Wallace 2007), in addition to low prices, extensive variety
of merchandises and brands and minimal cost of finding facts that may contribute to
7
the opinion of consumers about the value of buying clothing items an online store,
the acceptance of the system information. Perceived usefulness signifies its estimate
of the user advantages of using the system utility, such as simplification of the
system's efficiency and effectiveness in carrying out a particular task. While on the
performance through the use of the system. Similarly, one could define online
shopping as client's subjective probability that the use of a virtual store would have
increased value and competency throughout the buying procedure (e.g., find
information, compare orders, prices and payments, package tracking and client
success. This is in line with the findings of Barkhi et al. (2008) as their study
suggests that consumers will develop favorable attitudes toward products and/or
services that they believe to provide sufficient benefits or attributes toward a solution
and negative attitudes toward those that are inadequate. Given this scenario, Kim et
al. (2003) argued that online shopping sites which provide functions which aid
The same logic was observed in the work of Bisdee (2007) as online shopping
sites which are able to provide useful services to consumers and services which are
glance) will be perceived as useful by consumers, and thus leads to the development
8
al. (2001) whereby their findings suggest that consumers which had favorable
attitudes toward online shopping were found to perceive online retailers as being
services directly from the seller using the internet as a medium. Online shopping is a
type of e-commerce where the customer buys goods without any intermediary
services. Online shopping is an innovative form of trade that takes place on the
internet. Where customers visit various websites offering different products for sale,
select the product, order the products make, makes payments via credit cards and
finally seller physically delivered the products. People are mostly more intend to
shop online as it saves their time and they can do the work of hours in minutes still
confined to the office or home (Umair, 2014). According to Magee (2003), the growth
in the number of online shoppers is greater than the growth in Internet users,
indicating that more internet users are becoming comfortable to shop online.
the definition that e-commerce is the activity where consumers get information and
purchase products using Internet technology. It can be stated that the scientific
Mohammed (2014) intended to explore the factors that affected the online
shopping intention among young consumers. The tested results confirmed that the
effect for perceived usefulness, perceived risk and trust influences an online
9
shopping intention. Surprisingly, the results could not reveal any statistically
significant effect for perceived ease of use and online experience, and it can be
assumed that those factors are not very important in shopping online. The findings of
another research reveal that young women prefer social e-shopping sites. However,
although many research participants found the social e-shopping site more difficult to
use, this was outweighed by their enjoyment of the site and its usefulness (Dennis et
al., 2015).
American internet users have embraced online shopping because they say it
is convenient and a time-saver. Two-thirds (66%) of online Americans say they have
purchased a product online, such as a book, toy, music, or clothing. Attitudes and
perceptions play a key role in whether online users choose to purchase products
online. 78% of internet users either agree (53%) or agree strongly (25%) with the
proposition that shopping online is convenient for them and 68% of internet users
either agree (47%) or agree strongly (21%) with the notion that online shopping
Convenience
findings about 'convenience and variety seeking' are major motivating factors of
online shopping and this study is consistent with Morganosky and Cude's (2000)
shopping. Through online purchase consumers can easily compare the price than
the traditional purchase (Webcheck's, 1999). Online shoppers try and adopt internet
shopping environment base on convenience of the website retailer (Lee et al., 2010).
They concluded convenience of online shopping include five main issues which are
10
time spent, flexibility, information opportunities and less effort of going to physical
shop.
convenience of the website retailer (Lee et al., 2010). They concluded convenience
of online shopping include five main issues which are time spent, flexibility,
Madleberger (2006) recent study has shown that convenience is the main
factor to influence shopper made online purchased. Therefore, consumer was asked
about why they purchased through the internet, and researchers found that
convenience was the key point of that problem statement (Madleberger, 2006; Chen
with product getting standardized, specifications getting fixed and the concept of
service getting eroded, the post-sale responsibility of the retailer has come down
drastically. Hence customers go to stores to explore the product physically detail but
Time-Saving
online shopping saves time during the purchasing of goods and it can eliminate the
attributes of online shopping are convenience and accessibility (Wol¬ nbarger and
Gilly, 2001): because consumers can shop on the Internet in the comfort of their
home environment, it saves time and effort, and they are able to shop any time of the
11
day or night. Especially for consumers that, owing to their extended working hours,
only have a small amount of free time, online shopping is an excellent opportunity.
Price
Price is the amount a customer pays for a product or the sum of the values
that consumers exchange for the benefits of having or using a product or service
decision, especially for frequently purchased products, affecting choices for store,
product and brand (Rondan, 2004). The new technologically advanced distribution
channels permit anyone to receive the most up-to-date multimedia information on the
One of the most important of the differences is the ease with which online
consumers and rival retailers may access comparative information about seller
characteristics and prices (Baye et al 2007). According to Agwu and Carter (2014),
the explosive growth of the internet promises a new age of perfectly competitive
markets, with perfect information about prices and products at their fingertips,
consumers can quickly and easily find the best deals. In this new world, retailer’s
profit margin will be competed away, as they are all forced to price at cost (The
Economist, 1999).
According to Xia and Monroe (2009), consumers will save in monetary when
there are price promotions on specific products. In an online context, consumers are
more likely to depend on the price cues to determine the quality of a product which
are presented in the web site because they cannot see or touch the actual product
shopping. This model is an evidence system concept that represents how the
broadly used to explain individual’s intention and real use of information technology.
The main edge for customers to buy products and services online is the network, a
Acceptance Model has been viewed the commonly used and the most prominent
model for understanding the electronic commerce from a customer oriented view
(Umair, 2014). From a study of Lim (2012) Technology Acceptance Model is based
on the theory of reasoned action (TRA), a psychological theory that seeks to explain
behavior (Fishbein & Ajzen, 1975), and involves two primary predictors - perceived
The TAM postulates that the perceptions or beliefs about the innovation are
utilization behavior (Davis, 1989). It also posits that the actual system use is
each user’s attitudes towards use. Finally, the attitude is directly affected by the
usefulness and ease of use of the system. Although Technology Acceptance Model
workplace (Davis, 1989), scholars in the area of consumer behavior have identified
two specific dimensions which are relevant to online shopping: perceived ease of
using a particular system would enhance his or her job performance. Consumers
13
time. Perceived ease of use represents the degree to which a Web site is perceived
interface, consumers are likely to believe that online shopping is free of effort (Lin,
2007).
Perceived ease of use is defined as the concentration of physical and mental efforts
that a user expects to receive when considering the use of technology i.e. the degree
to which a particular technological system would be free from effort (Davis, 1989).
as the degree to which the user believes that the technology will enhance the
In the context of online shopping, the website for an online retailer is the main
contact point by which the online retailer and consumers interface in the online
shopping process (Ahn, et al., 2004). Past scholars have emphasized the
understanding of user expectations and how they feel about the websites that they
factors that customers intended to shop online were convenience, and time saving.
Rosa et al (2011), the importance of price as a purchase stimulus has a key role in
price management since not only does it determine the way prices are perceived and
14
valued, but it also influences consumer purchase decisions (Rosa, 2001; Simon,
Convenience and saved time were offered by online shopping which were two
motivating factors for online purchases (Lee, 2002). The main reason that motivated
Convenient access to product information could facilitate and help shoppers’ making
an online purchases decision (Loshe & Spiller, 1999). Convenience has always been
a prime factor for consumers to shop online. Darian (1987) mentioned that online
Morganosky and Cude (2000) have concluded that time saving factor was
experienced the online grocery buying. So the importance of the time saving factor
time saving and accessible 24 hours a day, this becomes the main drive for online
shopping.
Price was a critical factor for customer on online shopping (Heim and Sinha,
2001). However, Li et al. (1999) argued that online shoppers were often not price-
on each product was time-consuming and the price difference was very small.
According to Barkhi and Wallace (2007), in addition to low prices, extensive variety
of merchandises and brands and minimal cost of finding facts that may contribute to
the opinion of consumers about the value of buying clothing items an online store,
products, affecting choices for store, product and brand (Rondan, 2004).
influence their intention to shop online. Specifically, this study will benefit to the
To the online shoppers, they will have an overview on the perceptions of their
co-buyers and they will be able to know the intentions of purchasing online products
or services. For the online sellers, they will have an insight on the online shopping
intentions of the customers and they will be able to know the perceptions of
Also, the aspiring sellers will know whether online shopping has the potential
of future growth and they will have an idea on what perception that a customer
intended to shop online. Lastly, the future researchers will have a general knowledge
about online shopping; they can get literatures from this study and will be used as
Definition of Terms
17
service
Chapter 2
METHOD
Presented in this chapter are the methods and procedures that the
researchers will use in gathering necessary data for the study. These methods and
Research Design
method. To define type of research, Gay (1998) stated that descriptive data are
descriptive research is to verify null hypothesis that refer to the present situation in
order to elucidate it. It is used to gather relevant data, ideas, information and facts to
find out the relationship between variables and determine the extent of relationship
by interpreting data, and looking for trends and patterns in data. Data, relationships,
and distribution of variables will be collected, observed, and analyzed only in their
natural setting.
Research Subject
The research will be conducted at Tagum City, Davao del Norte. The
respondents will be those individuals who had already purchased items online. There
will be a total of 100 individuals to respond in the research. This study will use the
convenience sampling method; subjects that are available will be used to participate
in the study. Although this sampling method adopted has limitation in terms of
population of online buyers in Tagum City. This is because the sampling procedure
19
that will be used in this study is also purposive sampling as this study will only
Research Instruments
In order to get the answers for research questions and objectives pertaining to
customer satisfaction towards online shopping, the researchers will have self-
et al., 2009). The questionnaire will be based from various reading of books, articles,
journals and internet website that are related to the study. The preliminary drafts will
be submitted to the thesis adviser for corrections and after, the panel of experts will
Independent Variable
Table 1. This table shows the hypothetical range of how customer’s perceptions
online.
4.19 – 3.40 High This means that customer’s
online.
3.39 – 2.60 Moderate This means that customer’s
perception is moderately to
20
online.
2.59 – 1.80 Low This means that customer’s
online.
1.79 – 1.00 Very Low This means that customer’s
online.
Dependent Variable
Table 2. This table shows the hypothetical range of customer’s online shopping
online.
2.59 – 1.80 Low This means that customers
To gather the data of the study, primary data collection method in the form of
Respondents are required to answer all the questions in the questionnaire. The
printed questionnaires are distributed to online shoppers to collect the data for
analysis. After gathering all the necessary information, the data gathered will
Average Weighted Mean. This will be used to determine which among the
factors most influence the customer’s satisfaction towards their shopping online.
whether the selected variables (factors) satisfy the online selling customers.
Chapter 3
This chapter presents the result of the study. The interpretations of data are
presented in both textual and tabular forms. The presentation is arranged according
Shown in table 2 are the data on the customer’s perception towards online
online. As shown in the table, the overall mean is 4.22 with a descriptive equivalent
of very high. This means that the customer’s perception is highly influential to
descriptive equivalent of very high. This means that the customer’s perception is
highly influential to customer’s intention to shop online and the customers perceived
Usefulness gets a weighted mean of 4.18 with a descriptive equivalent of high. This
shop online and the customers perceived online shopping products as useful.
Table 2
Legend:
Parameter Level
5.00 – 4.20 Very High
4.19 – 3.40 High
3.39 – 2.60 Moderate
2.59 – 1.80 Low
1.79 – 1.00 Very Low
the table, the overall mean is 4.18 with a descriptive equivalent of high. This means
equivalent of high. This means that the customers often intend to shop online and
the customers perceived that online shopping is accessible. Then, Time-Saving gets
a weighted mean of 4.26 with a descriptive equivalent of very high. This means that
the customers always intend to shop online because it saves time and the customers
perceived that online products are just one click away. Lastly, Price gets a weighted
mean of 4.13 with a descriptive equivalent of high. This means that the online
shoppers in Tagum City often intend to shop online because it is easier for them to
compare prices and the customers perceived that online products are affordable.
Table 3
Legend:
Parameter Level
5.00 – 4.20 Very High
4.19 – 3.40 High
3.39 – 2.60 Moderate
2.59 – 1.80 Low
1.79 – 1.00 Very Low
26
CHAPTER 4
This chapter summarizes the result of the findings and figure out conclusions
in view of the findings study. It also shows the recommendation based on the finding
Summary
influences their intention to shop online. The respondents of this study were the
online shoppers from Tagum City and a convenience sampling method was used.
information and facts to assess how the perception of customers influences their
intention to shop online. The results were collected and validated for the purpose of
After the researchers statistically checked the data, it was found out that for
the independent variable, the perceived ease of use got a higher weighted mean that
is 4.25 than the perceived usefulness that is 4.18. They got an overall mean of 4.13
with a descriptive equivalent of high and the overall standard deviation of 0.47.
For the dependent variable, the time-saving got the highest weighted mean of
4.26 and convenience got 4.14. Lastly, the price got the lowest weighted mean of
4.13. Their overall mean was 4.18 with a descriptive equivalent of high and an
and their online shopping intention, the data had shown a result of 0.70, which
Conclusions
(Davis et al., 1989; Pavlou 2003; Junati, 2014).”International Review of Management and Business
Research