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The Effectiveness of Physical Stores and Online Shopping Platforms to

Consumers in the New Normal

Cherrylyn Almerol, Audrielle Austria, Sheila Bucaneg, Anjelykha Flores, and

Mark Louie Gallardo

Graduate School of Management, Pamantasan ng Lungsod ng Maynila

GSM-BA 107: Business Research

Mr. Kevin Jamir F. Pigao

29 January 2023
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TABLE OF CONTENTS

TABLE OF CONTENTS 2

LIST OF TABLES 4

LIST OF FIGURES 5

CHAPTER I 6

THE PROBLEM AND ITS BACKGROUND 6

Introduction 6
Background of the Study 8
Theoretical Framework 11
Statement of the Problem 12
Objectives of the Study 14
Hypotheses of the Study 15
Significance of the Study 15
Scope and Delimitations of the Study 16
Definition of Terms 17
CHAPTER II 18

REVIEW OF RELATED LITERATURE 18

CHAPTER III 29

METHODS AND PROCEDURE 29

Research Design 29
Sample and Sampling Technique 29
Research Instruments 31
Data Gathering Procedure 33
Data Analysis and Statistical Treatment 34
CHAPTER IV 36

PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA 36

CHAPTER V 46
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SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 46

Summary of Findings 46
Conclusion 46
Recommendation 48
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LIST OF TABLES

Table 1: Sample Size Computation 31

Table 2: Reliability Testing Using Cronbach Alpha for Test Questions per

Domain/Factor 33

Table 3: Demographic Profile of Respondents (n=400) 36

Table 4: Distribution of Respondents According to Frequency of Shopping in

Online and Physical Store in a Month 38

Table 5: Distribution of Respondents According to Their Perception in Terms of

Convenience Shopping in Online and Physical Store 38

Table 6: Distribution of Respondents According to Their Perception in Terms of

Purchase Safety and Security Shopping in Online and Physical Store 40

Table 7: Test of Significant Difference on Consumer’s Preference Between Online

and Physical Store 41

Table 8: Distribution of Respondents According to the Likelihood of Purchasing a

Product Category in Online and Physical Store 42

Table 9: Test of Significant Difference on Consumer’s Preference Between Online

and Physical Store 44

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LIST OF FIGURES

Figure 1: Side-by-side boxplot of respondent’s mean score on convenience

preference (left) and purchase safety and security preference (right) between two

store types. 42

Figure 2: Side-by-side boxplot of respondent’s scores on their level of

satisfaction shopping (left) and purchasing products (right) between two store

types. 44
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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

People's buying behaviors have seen significant shifts during the previous ten

years. The majority of the influence that has been observed in the retail environment is

consistently attributed to the rise of online commerce. Although there is less of a physical

presence, particularly in certain fields, this does not necessarily mean that fewer people

are going shopping. Instead, we might attribute it to a shift in the shopping habits of

customers as well as the manner in which they shop. Consumers shop in traditional brick-

and-mortar establishments as well as on the World Wide Web. As the development of

digital technology proceeds, it becomes increasingly difficult for many owners of

traditional retail businesses. This development in e-commerce contributes to a reduction

in client loyalty, which, in turn, contributes to a decline in revenue at these physical stores.

The constant and rapid rise of e-commerce has led several traditional shops to establish

an online presence in order to better serve their potential clients. Hybrid business

structures are becoming increasingly common in a variety of different markets. By

providing access to their products through a variety of distribution methods, retailers hope

to appeal to a wider range of customer demographics and foster a variety of synergies,

such as the stores serving as walking billboards for the various brands, catalogs

prompting customers to make purchases, and the internet functioning as a permanent

storefront. (Jill, 2014)

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It was mentioned in one of the papers that were published by the International

Trade Administration (2021) that the pandemic of COVID-19 has led to an increased

demand for eCommerce in the Philippines. The spread of eCommerce can be attributed

to a number of factors, including the rise of the middle class, an increase in the amount

of money spent by consumers, and a population that is younger, more energetic, and

more tech-savvy. The transaction of products and services via the internet through the

use of electronic means is known as "e-commerce" or "electronic commerce." It is also

possible to use this term to refer to other kinds of activities that are conducted online,

such as banking, ticketing, and auctions. E-commerce is beneficial to the vast majority of

people since it makes it possible for us to avoid contracting the Covid19 virus when we

make purchases using it rather than traditional methods. In addition, given that we live in

the age of advanced technology, e-commerce has the potential to have a huge impact on

each one of us. This is because it enables us to shop for our day-to-day requirements

and necessities using nothing more than our computers and the internet. Kolte Patil R10

at Life Republic.

On the other hand, the primary locations of physical stores cannot be moved.

Therefore, it would be prudent to implement programs that increase the company's overall

sales. Both traditional brick-and-mortar stores and their digital counterparts, which can be

found on the Internet, are considered separate entities. The connection that exists

between offline and online retail establishments is of vital importance. Therefore, they

should begin to complement one another rather than compete. We will be working on

conceptualizing, demonstrating, and applying this throughout this research. Customers

can ultimately determine the most advantageous method of shopping for themselves and
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save money by modifying their shopping behaviors. The market should be shared

between traditional stores and their digital counterparts. Healthy competition is suitable

for everyone. It is how offline and online stores alike are encouraged to establish

productive growth patterns through this vehicle. The dynamic between traditional brick-

and-mortar stores and their digital counterparts is competitive and collaborative. Because

they are aiming for the same thing, they ought to cooperate.

Background of the Study

As a result of the rise of digital innovation, we now live in an age in which the

largest store in the world does not have a physical location. E-commerce is something

that people all across the world, and especially in more recent times, have voiced their

opinions on. Customers are no longer need to visit brick-and-mortar stores in person

thanks to the rise of online purchasing, which has a ripple effect on people's day-to-day

lives (Julian Ming-Sung Cheng, 2009). The utilization of electronic networks as a

distribution channel is what's known as "e-commerce," and examples of such networks

include the Internet. According to Kardun (1999), e-commerce is defined as being reliant

on forms of digital communication and information technology. E-commerce has been

rapidly expanding ever since the introduction of the Internet in 1995, and this development

has not stopped. The majority of commercial transactions may be facilitated via the

Internet, and it also makes it easier for companies to communicate with their clients (Al-

Natour, 2011). An online shop will offer at least one of the following types of electronic

commerce: business to business (B2B), business to customer (B2C), and customer to

customer (C2C). Additionally, there is business to government (B2G).

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Businesses are making the most of the opportunity presented by advanced

growing technology to strengthen their cross-border sales. For example, in the European

Union, there are no tariffs placed on goods exported or imported from any of the countries

that make up the EU's member states (Diacon, 2011). According to Jorge et al research’s

from 2020, the value of income generated by e-commerce for cross-border travels within

the European Union amounted to €137 billion in 2018, representing a 13.4% rise in

comparison to the previous year. Many proprietors of traditional retail stores are finding

that keeping up with the advancement of digitalization is progressively becoming very

difficult. There has been a long history of retail establishments, and each nation's culture

has contributed to the development of its own unique retail culture. Trading was first used

in ancient times, back when sales techniques were far less developed than they are today.

The passage of time has made it possible for stores to advance and improve, which in

turn has made it possible for retail stores to be located in a variety of locations across the

globe. As a result of the intensifying level of competition, the owners of a great number of

retail stores have integrated digital technology into their traditional retail service offerings.

Online shopping has grown dramatically over the years, and this trend is expected

to continue with the current epidemic. It has provided more significant opportunities for

advancement. Due to the accelerating rise of e-commerce, all stores will be compelled to

have websites to remain competitive in the retail industry. Despite rising e-commerce,

costs, and structural shifts, retail still needs to be on its knees. While e-commerce

continues to dominate in terms of growth, it is becoming clear that retail spaces for many

brands are an essential outlet for customers to interact with their omnichannel offerings.

7 (Spotlight: Retail Revolutions—2018 Outlook, 2018). As previously said, retailers have

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addressed the benefits and challenges the Internet has presented since its inception by

combining the physical retail environment with online retail to communicate with

customers on many platforms. However, retailers with only retail spaces, such as

shopping malls, are not far behind; they have focused more on enhancing the global

standards of their retail spaces and delivering a variety of contemporary experiences and

services in shopping centers. It is a win-win situation for people who purchase in this

atmosphere. Online shopping has grown dramatically over the years, and this trend is

expected to continue with the current epidemic. It has provided more significant

opportunities for advancement. Due to the accelerating rise of e-commerce, all stores will

be compelled to have websites to remain competitive in the retail industry. Despite rising

e-commerce, costs, and structural shifts, retail still needs to be on its knees. While e-

commerce continues to dominate in terms of growth, it is becoming clear that retail spaces

for many brands are an essential outlet for customers to interact with their omnichannel

offerings. 7 (Spotlight: Retail Revolutions—2018 Outlook, 2018). As previously said,

retailers have addressed the benefits and challenges the Internet has presented since its

inception by combining the physical retail environment with online retail to communicate

with customers on many platforms. However, retailers with only retail spaces, such as

shopping malls, are not far behind; they have focused more on enhancing the global

standards of their retail spaces and delivering a variety of contemporary experiences and

services in shopping centers. It is a win-win situation for people who purchase in this

atmosphere. (ELLIS, 2014).

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Theoretical Framework

The personality traits of consumers influence their behaviors. Diverse consumers

respond to messages in various ways, in multiple contexts, and at numerous times. The

online environment offers businesses many opportunities to interact with consumers on

a personal, customized level. Individual differences are an essential aspect of this

interaction because they reveal how people with varying levels of experience with the

online environment react to interactive persuasion techniques. According to Friestad and

Wright's (Wright, 1994) Persuasion Knowledge Model (PKM), the effectiveness of

advertising persuasion techniques depends on the level of persuasion knowledge each

individual possesses. This effect can be measured in an online environment by examining

user experience levels, self-efficacy, and the amount of time spent online. Using data

from information technology and communication technology systems effectively, e-

commerce websites can increase consumer satisfaction with their websites. Through data

collection, flexibility based on customer feedback, and, most importantly, touch points that

facilitate a high level of service and customer satisfaction, what was once perceived as

ineffectiveness can be transformed into usefulness. However, as Tojo and Matsubayashi

(Ryohei Tojo, 2011) noted, engaging in such activities in a productive manner can result

in customers who wish to visit the physical store. This can lead to a "free-rider effect,"

which can be avoided by including only niche products on the website. This results in

more equitable outcomes for both online and brick-and-mortar stores. Notably, the

company's overall profit is increased even in the free-riding effect, but eliminating it

increases the equilibrium profit of the physical store. (Tojo & Matsubayashi, 2011) Future

retail business success may hinge on a hybrid model. Pure Web-based retail will always
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offer consumers a more excellent selection of products at a lower price than traditional

physical stores. Companies with physical stores have attempted to compete with

shopping websites with varying degrees of success. In many aspects of e-commerce, the

physical sector lags behind other economic sectors. The most prevalent shopping

behavior will be observed in stores characterized by hybrid organizations that combine

the best of e-commerce and brick-and-mortar retail. (Levary, 2000). The physical store

should figure out how to accommodate online shopping behavior.

Consequently, the researchers have concluded that despite the rapid growth of e-

commerce, consumers should still shop in traditional brick-and-mortar establishments.

Today, brick-and-mortar stores can reclaim their importance over digital retailers like

Amazon and eBay. During the pandemic, people will be itching to get out of the house,

and strategic retail locations will once again become destinations for customers to engage

in interactions with brands that are more meaningful and impactful. This study aims to

determine how effective e-commerce and physical stores are, particularly in the current

generation. Additionally, the study will evaluate each model's benefits and drawbacks and

analyze its contribution to the business sector.

Statement of the Problem

This study intends to determine the effectiveness of physical and online stores

platform to consumers during pre-pandemic and new normal, specifically answering the

following sub-problems:

1. What impact does the demographic profile of the respondents have on

physical and online shopping based on:

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a. Age

b. Residency

c. Sex

d. Civil Status

e. Employment Status

f. Monthly Income

g. Shopping frequency of online store and traditional store

2. What is the consumers' perception of shopping in physical stores and online

shopping platforms based on:

a. Convenience

b. Purchase safety & convenience

3. How likely are consumers to purchase different product categories in physical

stores and online shopping platforms?

4. What is the consumer's level of satisfaction in online store and in physical stores

in terms of?

a. Shopping (act of browsing and looking for goods or services to buy)

b. Purchasing (act of buying which involves making a financial transaction)

5. Is there a significant difference between the following factors on the effectiveness

of physical and online stores platforms:

a. Consumer’s Perception

b. Level of Satisfaction
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Objectives of the Study

The researcher aims.

1. To determine the demographic profile of the consumers that affect or drive their

purchase in physical and online stores.

2. To determine consumers' perception of shopping in physical stores and online

shopping platforms.

3. To determine the likelihood of consumers purchasing different product categories

in physical stores and online shopping platforms.

4. To determine the consumer's level of satisfaction in shopping and purchasing in

physical stores and online shopping platforms.

5. To determine the significant difference in consumers' perception of shopping in

physical stores and online stores platforms.

6. To determine the significant differences between the level of satisfaction of

consumers in shopping and purchasing between physical stores and online stores

platforms.

7. To determine the significant difference in the effectiveness of online and physical

stores to consumers according to perception and level of satisfaction.

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Hypotheses of the Study

H0: There is a significant difference in consumer's perception on shopping* physical

stores and online shopping platforms

H1: There is no significant difference in consumer's perception on *shopping* physical

stores and online shopping platforms

H0: There is a significant difference in the level of satisfaction of consumers in shopping

and purchasing between physical stores and online shopping platforms

H2: There is no significant difference in the level of satisfaction of consumers in shopping

and purchasing between physical stores and online shopping platforms.

Significance of the Study

Online & Traditional Sellers. This study will urge the sellers to gather relevant

information about the online & brick-&-mortar store setup for them to maintain current

customers and draw in new ones. Strategies for providing information in relation to the

aforementioned themes may aid them in lowering consumer risk perceptions, managing

involvement levels, improving product knowledge, and providing the appropriate price

information while taking into account the experience factors.

Consumers. This study will give awareness as to how they are performing as

consumers for the online & offline businesses. The onslaught of Covid-19 disrupted their

consumer habits as they were modified by the new policies and procedures implemented,

thus by understanding each other’s’ behavior in online & offline market in the New Normal,
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it will confer them ideas of others experiences that will somehow urge them to learn and

improve new habits of buying that will satisfy them.

Business Policymakers. The themes found in this study will assist policymakers

in creating online and offline channel policies that will aid consumers in their decision-

making.

Scope and Delimitations of the Study

This study is focused on the data gathered from the consumers of Metro Manila’s

busy cities mainly – Manila, Makati, and Ortigas where the most innovative

implementations take place. There will be 218 respondents in Quezon City, 46 for Makati,

and 136 for Manila.

The questionnaires were separated into three sections: respondents’ demographics,

online and physical store shopping preferences, and buying decisions in terms of

categories. The survey results will help get a broader understanding of how the New

Normal has impacted the consumer's decision to purchase online and traditionally, and

thus aid in succeeding strategies of existing and future businesses.

The study will be conducted during the first semester of the Pamantasan ng

Lungsod ng Maynila Graduate School's Academic Year 2022-2023.

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Definition of Terms

COVID-19 or Coronavirus disease is a contagious disease caused by a virus

named SARS-CoV-2 and was discovered in December 2019 in Wuhan, China. The virus

reached the Philippines on January 30, 2020, when the first case in the Philippines was

confirmed in Manila. Due to millions of cases, it has brought undeniable adverse impacts

to all sectors of the Philippine economy.

Pre-pandemic also called as pre-coronavirus or pre-lockdown, used for talking

about time periods before the coronavirus (COVID-19) pandemic happened

New Normal the culture we have suddenly been forced to adapt due to the

onslaught of Covid-19 worldwide, a new way of living and going about our lives that limits

interactions with other people.

Physical Stores where customers browse and make purchases in person.

E-commerce is the trading of goods and services on the internet. It is your bustling

city center or brick-and-mortar shop translated into zeroes and ones on the internet

superhighway.

Consumer Behavior analysis of how consumers make their decision relating to

their needs, wants, and how do they purchase products.

Shopping is the act of browsing and looking for goods or services to buy.

Purchasing the act of buying something which involves making a financial

transaction.
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CHAPTER II

REVIEW OF RELATED LITERATURE

Pandemic Reshaped the Retail Industry

Since March 2020, when the epidemic was declared, tight lockdowns have

impacted several industries, including retail. Metro Manila and the surrounding provinces

remain in lockdown due to the COVID-19 Delta variant threat, making for a challenging

atmosphere. While the National Capital Region (NCR) was placed under Enhanced

Community Quarantine, the Philippine Retailers Association (PRA) predicts that pre-

pandemic recovery will begin in 2022, and growth will be projected by 2023.

Because of the pandemic, people's spending patterns have changed, and they've

cut back on all but essential purchases. Mall owners and store owners alike have seen a

decline in revenue due to the decrease in customers frequenting shopping centers and

department stores. According to the Google Mobility Report, as of August 14, 2021,

consumer spending at restaurants, shopping centers, museums, and cafés has

decreased by 35%, while spending at supermarkets and pharmacies has climbed by 13%.

As a result, significant movements in market share are consolidating and

developing the food and beverage retail industry across the country. One of the most

notable shifts in American business is the proliferation of e-commerce, in which

corporations boost their bottom lines by attracting customers through digital channels like

the Internet and smartphone apps.

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Global Agricultural Information Network (GAIN) predicts that online food and drink

sales will hit a new high of $280 million this year, up 30% from last year's $216 million.

This trend is driven by Filipinos' rising inclination to use e-commerce for their food supply

needs.

To meet customers' needs who have shifted their primary shopping habits to online

and digital channels, many retailers, brands, and store owners have fully embraced

digitalization and embarked on online and digital marketing strategies. (Aviso Valuation

and Advisory Corp., 2021)

E-Commerce in the Philippines

Transactions of a commercial nature that take place through the internet are

referred to as "e-commerce." Because of advances in technology throughout the years,

the definition of the word "electronic" has undergone a major transformation.

Consequently, "e-Commerce" has evolved to embrace various ideas and pursuits.

E-commerce gives a huge opportunity for businesses due to the cheaper costs of

starting up and running a business online compared to traditional brick-and-mortar retail.

Fees charged for using the internet and various platforms have become the new standard

for prices that were previously incurred for marketing, logistics, and other administrative

expenses. By agreeing to pay the platform's fees, online retailers have access to a

broader audience outside of traditional business hours and do not need to be physically

located near their customers. (Department of Trade and Industry, 2021).

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Sales of eCommerce products in the Philippines reached $17 billion in 2021, with

73 million active online users accounting for a large portion of that figure. Through 2025,

a growth of 17% is expected to bring this to an estimated $24 billion. With Filipinos

working and studying from home due to the COVID-19 pandemic, eCommerce demand

surged.

One of the obstacles hampering e-commerce expansion in the Philippines is the

country's persistently low rankings for mobile and fixed broadband internet speeds. With

a fixed broadband internet speed of 55.21 Mbps, the Philippines scored 59 out of 182

nations on OOKLA's April 2022 Speedtest Global Index, while mobile internet speed

ranked 95 out of 141 countries. Compared to other ASEAN countries like Vietnam (90,00)

and Thailand (60,000), the Philippines' paltry number of 22,405 cellular towers seems

particularly low. Due to the island nation's unique topography, the Philippines needs more

than 70,000 towers to provide complete coverage. (International Trade Administration,

2022)

E-commerce in the Philippines during the COVID-19 Outbreak

Filipino entrepreneurs generated most of their economic activity for several

decades by establishing traditional shops and stores. However, everything shifted when

COVID-19 hit the Philippines. Most eateries, shopping malls, and typically bustling stores

were nearly deserted. Small local businesses realize that e-commerce is their best

chance for survival. To succeed in the internet industry, one must first have a thorough
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comprehension of the existing market conditions and the factors at play before beginning

their venture.

People in the Philippines are wary of making purchases online because they have

doubts about the honesty of online retailers, and it might be challenging to provide

financial information over the internet. However, this shifted throughout the quarantine

period of five months. Because they were locked down, Filipinos were compelled to

purchase food and other necessities online. The number of transactions conducted

through online commerce has significantly increased.

The proprietors of businesses in the Philippines rapidly adjusted. Thousands of

people have launched successful businesses online. The practice of conducting business

online is also gaining ground among significant organizations. SM, Rustan's, and Store

Specialists have all improved their systems to help better customers who shop online.

Since the quarantine was first implemented, there has been a steady growth in people's

trust in conducting business online.

Paulo Campos III, CEO of Zalora Philippines, stated that 91 percent of Filipinos

looked for products and services online throughout the quarantine period. Those who

searched completed the transaction at a rate of 76%. It is apparent from this that more

and more Filipinos are becoming comfortable with online shopping. It is expected that the

Philippines will have $12 billion in e-commerce sales by the year 2025.

According to a survey that Global Web carried out, over half of Filipinos have the

intention, once the pandemic has been contained, to raise the amount of money they

spend buying online. (Marasigan, 2020)

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Filipinos’ Shopping Habits on New Normal

Based on a new study by Meta, the latest Seasonal Holidays Study shows that

Filipino consumers are returning to physical stores, but their digital shopping habits, which

they formed during the pandemic, remain relevant.

Nearly 2,000 Filipinos aged 18 or over were surveyed in December 2021 regarding

their year-end shopping attitudes and behaviors. According to a survey of year-end

shoppers, 67% of purchases were made in stores and 79% were made online. As for Gen

X and Baby Boomers, mobile discovery increased by 13 points to 76%. Overall, almost 7

out of 10 respondents said they would spend more or the same as last year.

This study summarized some new trends in consumer shopping for Mega Sale

Days at the end of the year that will help businesses maximize every opportunity to

generate sales:

1. Mega Sale Days encourage the discovery and consideration of new products. Ninety-

four (94%) of shoppers surveyed are likely to try a new brand, especially in food (55%),

apparel and fashion (38%), and electronics (36%). A total of 76% of all year-end shoppers

enjoyed discovering relevant items that they were not actively seeking.

Among year-end shoppers surveyed, 90% bought something during Mega Sale

Days in 2021. Mega Sale Days affect shoppers. Mega Sale Days 12.12 and 11.11 are

the most popular, with 24% and 44% participating.

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2. Gen Z and Millennials are shopping more on social platforms. Almost 7 out of 10

surveyed used social platforms to discover and shop, and 76% of those were Gen Z or

Millennials. Social shoppers make spontaneous discoveries while shopping online and

are 1.3 times more likely to buy on mobile than non-social shoppers. Almost 80% of social

shoppers bought products discovered through personalized ads. Moreover, 76% of social

shoppers prefer brands partnering with trusted creators and influencers.

Most people message a business for the sake of convenience and immediate

response. 41% of APAC cross-border shoppers seek out socially responsible brands,

40% support local/small production and retail, and 39% practice ethical/fair trade

business practices. (Manila Standard, 2022)

Customer Experience

Online purchases became increasingly important during the COVID-19 epidemic

and in the new normal. Despite this, more than half of all sales are still conducted in

traditional brick-and-mortar establishments. Therefore, for the retail industry to thrive in

the future, both online and offline channels will need to operate together efficiently.

Customers who enjoy interacting with products before purchasing will continue to frequent

physical businesses. Doing so reduces the buyer's risk of acquiring the incorrect size,

color, or material. Customers do not have to pay for shipping when they purchase items

in physical stores, and retailers can save money on returns when they allow customers

to return or exchange online purchases in an actual location. Buying products in physical

stores is preferable for both parties. (Bishop Fleming, 2021)

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Nine Reasons Why Ecommerce Replaces Traditional Shopping in the Philippines

The growth of e-commerce in the Philippines is no longer breaking news. Online

shops and digital channels are expanding since small-to-medium-sized firms account for

70 to 85% of the retail sector. The following are the elements that are relevant:

1. Surviving and growing in recession

The Covid-19 outbreak has left the world in a condition of uncertainty, and the

Philippines' economy has continued to deteriorate since the disasters. Yet each challenge

forces the resilient Filipinos to reconsider their strategies for surviving and expanding their

sources of income. Since shops and offices may only operate to a certain extent while

the nation is still under a state of community quarantine, eCommerce becomes their go-

to method of making up for their losses.

2. Digital Channels Open Entrepreneurial Opportunities

More than 2 million Filipinos will have lost their jobs in 2020 as a result of layoffs

and a lockdown. As a kind of assistance, the government has offered relief measures like

wage subsidies, monetary aid, and unemployment compensation, but discussions about

fostering eCommerce are still ongoing.

The professionals who are still working are still required to hunt for online freelance

employment and remote part-time jobs in order to support their family. Whether it's to

resale products, provide their services, or profit from their interests. In order for these

people to create their own small business and use the technology at their disposal to

make ends meet, eCommerce comes into play.

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3. Access the World Market Locally

Any business, whether local or global, may gain the reach it needs by going online.

In the 1990s, only multinational corporations with a long history and significant resources

at their disposal were able to have a truly worldwide presence.

The growth of e-commerce has leveled the playing field for entrepreneurs in the

Philippines, allowing them to compete on an equal footing with these sector

heavyweights. You can sell to and provide service to anyone from anywhere in the globe

without the requirement for a physical location or a store.

4. From Social Media To Social Commerce

Businesses and online retailers now utilize networking and digital media in addition

to traditional advertising to increase marketing and sales initiatives. Social networking as

we know it has grown to include eCommerce capabilities like checkout and payments in

addition to being more efficient.

Within the platforms itself, the common posts on the newsfeed and timeline may

be clickable or "shoppable."

5. Transactions are More Cashless and Contactless

Digital transformation and eCommerce participation have been the minimum

requirements for company continuity to continue when stores and offices are closed.

However, since consumers prefer convenience and less in-person interaction, it makes

perfect sense to accept payments and process orders while selling online.

Cashless and contactless payments will increase in the Philippines even after the

epidemic because fintech platforms are becoming more widely accessible.

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6. Most Purchases are made via Online

The only physical activity is clicking on the smartphone and accepting the item

when it is delivered from the time someone uses a search engine to study a thing to the

point that they hit checkout on their online store.

Although some people still choose BOPIS (buy online, pick up in-store), buying

from a physical store is now almost entirely irrelevant.

7. Demand for a Personalized Customer Experience

When visiting a store, traditional customers are frequently left to their own devices,

with store employees occasionally standing by to respond to questions like where to find

a particular item. However, digital customers have high expectations from firms in terms

of giving them a customized brand experience. not just through using their brand, but also

via the way they engage with customers and offer their products.

Lack of personalization ranks among the top reasons for online cart abandonment

at roughly 70%. The customer experience can be localized and personalized with an

online store. Whether it's filtering the items based on preferences or localizing the

currency and language.

8. Shoppers need customer service 24/7

The majority of people have a lot of free time because they are working from home

and are in quarantine. But when you can accomplish all of that with the push of a button,

going out isn't necessarily the greatest option or it feels inconvenient. In addition, shops

and malls have closing times, so your only option if you need to make a late-night

purchase is to shop online.

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Because of how quickly questions can now be answered thanks to technology,

people have a lesser tolerance for delays and are more likely to quit their shopping cart.

Because they are accessible around-the-clock and have chatbots or AI that can help

clients with any questions, internet retailers are very practical.

9. Stronger Preferences for Mission-Driven and Conscious Brands

In addition to being a result of the "New Normal," businesses change how they are

set up to operate in order to be more sustainable. Filipino consumers are becoming more

careful with their purchases and investments, particularly if they are doing it to

#SupportLocal or to demonstrate their advocacy.

To ensure that their target market views them as more than just a store but rather

as a brand worth supporting, many companies create their brands relationship-oriented.

Demand for socially conscious and environmentally sustainable brands is growing; even

something as straightforward as raising awareness of current affairs or lowering carbon

footprints may have a big impact.. (Velasco, 2021)

Reasons Filipinos Shop Online

According to a survey on online shopping behavior conducted by Rakuten Insight

from 12 to June 30, 2022 with a total number of respondents of 5,740. The question is

“Why keep shopping online?” with multiple answers allowed.

The result shows that 54% of Filipino respondents said they would keep doing their

shopping online because it was more convenient than going to a physical store, 49%

stated that they had an overall positive experience with using the e-commerce sites and
 28

online shopping, 26% said that it is much easier to find better deals online than in physical

stores, 17% expressed their concerns about catching COVID-19 even if movement

restrictions were lifted, and 16% claimed that their commitments to work, family, school,

and other activities leave them with little free time.. (Statista Research Department, 2022)
 29

CHAPTER III

METHODS AND PROCEDURE

Research Design

It is decided how empirical research should be conducted based on the research

questions and the state of research in a particular field. A distinction is drawn between

the following two methods: (1) Deductive, which demonstrates the connection between

theory and study. Researchers develop one or more hypotheses that are empirically

tested based on prior studies, while (2) inductive research makes a generalization based

on a specific instance or empirical data. This kind of study seeks to infer generalizations

from an observable phenomenon (Bell et al., 2018). This dissertation examines how

consumer behavior changed in the pre-pandemic and post-pandemic periods. It is

possible to connect the dots between altered consumer behavior during the pre-pandemic

and the new normal using a deductive approach. The data that the researchers gathered

are used to confirm the underlying hypotheses.

Sample and Sampling Technique

Among the 16 cities and one municipality of Metro Manila, the top three cities were

considered for data collection based on the Highest Locally Sourced Revenues for the

Fiscal Year 2021 (Bureau of Local Government Finance, 2022). Quezon City generated

the highest revenue from local sources, followed by Makati City and Manila. Researchers

prefer to use Stratified Purposive Sampling, especially when studying consumers who

shop and purchase on via physical stores and online shopping platform. This was
 30

narrowed to consumers 18 years of age and above who purchase in-store and online

products and services for the past three (3) months. A google form will be used to

distribute questionnaires through online communication channels containing the study's

objectives, a confidentiality agreement, and various questions pertaining to the study.

The researchers will use Slovin's formula to develop the sampling technique.

Approximately 5 million individuals from the three selected cities were chosen for the

study (Philippine Statistics Authority, 2021). The confidence level is 95%, giving a margin

of error of 5% or 0.05 using Slovin's formula:

𝑁
𝑛=
1  +  𝑁𝑒 2

Where n is the sample size

N is the total population size

e is the degree of marginal error (0.05)

Using the said formula based on the given population, the calculation is shown as

follows:

𝑁
𝑛 = 1+ 𝑁𝑒2

Given: N = 5,436,177
e = 0.05

5,436,177
n=
(1+ 5,436,177*0.05^2)
 31

5,436,177
=
13,591.44

= 399.97 or 400 respondents

Detailed information about the respondents can be found in the table below:

Table 1: Sample Size Computation

Total Slovin's
Percentage
Population Percentage of each Sample Size
Cities (%)
(Based on the Derivation City (A × B)
(A)
2020 Census) (B)

(2,960,048 ÷
Quezon
2,960,048 5,436,177) × 54% 399.95 218
City
100

(629,616 ÷
Makati 629,616 5,436,177) × 12% 399.75 46
100

(1,846,513 ÷
Manila 1,846,513 5,436,177) × 34% 399.91 136
100

Total 5,436,177 100 100% 400

Research Instruments

The researchers will use a quantitative method to evaluate the significant purpose

of the study, which is to determine the effectiveness of physical store and online store
 32

platforms to consumers in the new normal using a four-scaled Likert scale questionnaire.

The study also aims to determine consumers’ preferred shopping mode in terms of the

purchased product.

An online survey questionnaire will be distributed to other parts of Metro Manila

covering the Cities of Manila, Makati, and Quezon City. There are (5) sections to the

questionnaire:

1. Researcher’s introduction to the study and consent from the respondents in

compliance with the Data Privacy Act or RA 10173 of 2012.

2. Profile of the Respondents

3. Consumer’s Perception – Convenience, purchase, safety, and security

4. Likelihood of consumers purchasing products – physical and online stores

5. Level of satisfaction in shopping and purchasing.

To ensure the credibility of the research findings, the survey data must be tested for

internal consistency and reliability (PhD Statistics, n.d.). Cronbach alpha test is most

commonly used when you have multiple Likert questions in a survey/questionnaire that

form a scale and you wish to determine if the scale is reliable. The Cronbach’s alpha (a)

can be calculated as follows:

𝑁. 𝑐̄
𝛼=
𝑣 + (𝑁 − 1). 𝑐̄

Where α is Cronbach’s alpha

c̄ is the average covariance between item-pairs

v̄ is the average variance

 33

N is the number of questions/items

Detailed information about the reliability of the questionnaire can be found in the table

below:

Table 2: Reliability Testing Using Cronbach Alpha for Test Questions per
Domain/Factor

Cronbach’s
Domain/Factor Interpretation (>0.60)
alpha
Acceptable – test items have high
shared covariance in measuring
Convenience (Online
0.829 underlying concept of preference in
store)
convenience on online stores among
respondents
Acceptable – test items have high
shared covariance in measuring
Convenience (Physical
0.894 underlying concept of preference in
store)
convenience on physical stores among
respondents
Acceptable – test items have high
shared covariance in measuring
Purchase safety and
0.709 underlying concept of preference in
security (Online)
purchase safety and security on online
stores among respondents
Acceptable – test items have high
shared covariance in measuring
Purchase safety and
0.853 underlying concept of preference in
security (Physical store)
purchase safety and security on
physical stores among respondents

Data Gathering Procedure

The researchers created a survey to assess the effectiveness of physical stores

and online shopping platforms for consumers in the new normal. Selected respondents

from Manila, Makati, and Quezon City were requested to complete a Google Forms
 34

survey. The researchers utilized an online questionnaire to collect data in a week and to

have the opportunity to clarify questions. The questionnaires were distributed to

respondents in their respective social media channels (e.g., Facebook, Viber, Instagram,

and others).

Data Analysis and Statistical Treatment

Statistical tools for primary data are validated by using SPSS Statistics for analysis.

The collected data will be summarized and compiled using tables and graphs. The

following will be used in analyzing and interpreting the data:

1. Frequency Distribution and Proportion

This will be used for calculating and summarizing the data of respondents in displaying

demographic profiles as well as presenting the consumer preference in terms of

convenience and purchase safety and security, likelihood of product purchases on online

and physical store.

Divide the frequency by the total number of respondents and multiply by 100 to get

the percentage. The formula is represented as follows:

𝑃 = 𝑓𝑛 .  100

Where P is the percentage

f is the frequency (number of answers)

n is the total number of respondents

 35

2. Descriptive Statistics

This statistical treatment, such as the median, mean, and standard deviation, will

measure and present the overall consumer preference and level of satisfaction in

shopping and purchasing on the two store types.

3. Shapiro-Wilk Test for Normality and Levene’s Test for Homogeneity of Variance

These tests were conducted to evaluate the most appropriate statistical test to be

used.

4. Wilcoxon Signed Rank Test

This nonparametric test for paired samples was used to test for significant difference

on different parameters between online store and physical stores. Null hypothesis was

rejected at alpha level of 0.05. SPSS version 26 (IBM Corporation, 2019) will be used in

analyzing the data.

 36

CHAPTER IV

PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

The content in this chapter covers the results, analysis and interpretation of results,

and hypothesis testing of the following statement:

H0: There is a significant difference in consumers' perceptions of shopping in physical

stores and online shopping platforms.

H1: There is no significant difference in consumers' perceptions of shopping in physical

stores and online shopping platforms.

H0: There is a significant difference in the level of satisfaction of consumers in shopping

and purchasing between physical stores and online shopping platforms

H2: There is no significant difference in the level of satisfaction of consumers with

shopping and purchasing between physical stores and online shopping platforms.

Results:

Table 3: Demographic Profile of Respondents (n=400)

Demographic Profile Frequency (%)

Age, years
18 to 27 years old 204 (51.00)
28 to 37 years old 120 (30.00)
38 to 49 years old 52 (13.00)
50 years old and above 24 (6.00)
Location
Makati City 46 (11.50)
Manila City 136 (34.00)
Quezon City 218 (54.50)
 37

Sex
Male 248 (62.00)
Female 152 (38.00)
Civil Status
Single 292 (73.00)
Married 89 (22.25)
Widowed 11 (2.75)
Divorced/Separated 8 (2.00)
Employment Status
Employed Full-time 275 (68.75)
Employed Part-time 20 (5.00)
Self-employed 55 (13.75)
Unemployed 50 (12.50)
Average Monthly Income
10,000 and below 70 (17.50)
10,001 to 22,000 109 (27.25)
22,001 to 44,000 138 (34.50)
44,001 to 77,000 60 (15.00)
77,001 to 132,000 17 (4.25)
132,001 and above 6 (1.50)

Table 3 summarizes the demographic profile of respondents in this study. Of 400

respondents, majority of them are 18 to 27 years old (51%) from Quezon City (54.5%).

Sixty-two percent (62%) of the respondents are male, and 73% are single. In terms of

employment, 87.50% of the respondents are employed – majority of which are employed

full-time. 79.25% of the respondents are earning less than or equal to 44,000Php, while

5% are earning between 44,001Php to 77,000Php, 4.25% are earning between

77,001Php to 132,000Php, and 1.50% of the respondents are earning more than

132,000Php.
 38

Table 4: Distribution of Respondents According to Frequency of Shopping in

Online and Physical Store in a Month

Online store Physical Store

Frequency (%)
Frequency of shopping per
month
Once a month 127 (31.75) 157 (39.25)
2 to 3 times a month 152 (38.00) 154 (38.50)
4 to 5 times a month 70 (17.50) 55 (13.75)
6 to 7 times a month 24 (6.00) 13 (3.25)
8 times and above 27 (6.75) 21 (5.25)
p-value 0.001*
Statistical Test Used: Wilcoxon Signed-Rank test for Paired Samples; *significant at
0.05.
In addition to the demographic information, respondents were asked about their

shopping habits (table 4). 38% of the respondent’s shop online 2-3 times a month on the

average while 31.75% of them shop online once a month. Moreover, the same

respondents answered that 157 of them (39.25%) shop on physical stores once a month

and 154 of them (38.5%) shop 2-3 times a month. Statistically, respondents in this study

shop more frequent on physical stores compare to online stores (p=0.001).

Table 5: Distribution of Respondents According to Their Perception in Terms of

Convenience Shopping in Online and Physical Store

SD D A SA
No Items Store type p-value
Frequency (%)
1 22 126 247
I can easily find a Online 5 (1.25)
(5.50) (31.50) (61.75)
certain product that <0.001*
77 178 127
I want to purchase. Physical 18 (4.50)
(19.25) (44.50) (31.75)
2 28 129 240
I can pay easily for Online 3 (0.75)
(7.00) (32.25) (60.00)
the product I 0.459
17 129 247
purchased Physical 7 (1.75)
(4.25) (32.25) (61.75)
 39

3 I can save time 17 87 293

Online 3 (0.75)
and effort in (4.25) (21.75) (73.25)
<0.001*
purchasing a 135 148 72
product Physical 45 (11.25)
(33.75) (37.00) (18.00)
4 I can easily check 45 134 215
relevant Online 6 (1.50)
(11.25) (33.50) (53.75)
information about 0.024*
47 157 181
the product I want Physical 15 (3.75)
to purchase (11.75) (39.25) (45.25)
5 I find it easy to 132 131 90
Online 47 (11.75)
process a warranty (33.00) (32.75) (22.50)
<0.001*
for the returned 25 126 242
product Physical 7 (1.75)
(6.25) (31.50) (60.50)
Legend: SD – Strongly Disagree, D – Disagree, A – Agree, SA – Strongly Agree
Statistical Test Used: Wilcoxon Signed-Rank test for Paired Samples; *significant at
0.05

Table 5 shows the distribution of respondent’s answer on items related to

convenience in shopping and purchasing. Online stores are more favored by respondents

in terms of searching for products they want to purchase (p<0.001), efficiency in time and

effort in purchasing products (p<0.001), and in checking information about the product

(p=0.024). On the other hand, respondents prefer physical stores when it comes to

processing a warranty for the returned product (p<0.001). AT least 60% of the

respondents strongly agree that they can pay the products they purchased on both online

and physical store. However, it is worth noting that while respondents are in agreement

on all items applied to online and physical store, 44.75% of them are in disagreement on

the statement, “I find it easy to process a warranty for the returned product”.
 40

Table 6: Distribution of Respondents According to Their Perception in Terms of

Purchase Safety and Security Shopping in Online and Physical Store

SD D A SA
No Items Store type p-value
Frequency (%)
I feel safe from 88 188
danger whenever I Online 5 (1.25) 119 (29.75)
(22.00) (47.00)
1 shop and <0.001*
44 163
purchase a Physical 4 (1.00) 189 (47.25)
product (11.00) (40.75)
I am assured of 137 174
Online 25 (6.25) 64 (16.00)
the product quality (34.25) (43.50)
- packaging,
2 freshness, and <0.001*
95
appearance of the Physical 4 (1.00) 14 (3.50) 287 (71.75)
product I (23.75)
purchased
I can purchase 158 142
without getting Online 31 (7.75) 69 (17.25)
(39.50) (35.50)
3 scammed on the <0.001
121
product with Physical 5 (1.25) 28 (7.00) 246 (61.50)
discount price (30.25)
I am secured that 40 154 151
Online 55 (13.75)
my personal (10.00) (38.50) (37.75)
4 information is safe <0.001
168
when I give them Physical 7 (1.75) 34 (8.50) 191 (47.75)
to the seller (42.00)
I feel safe paying 40 126 158
for the product I Online 76 (19.00)
(10.00) (31.50) (39.50)
5 bought using <0.001
credit/debit cards, 145
and other online Physical 10 (2.50) 26 (6.50) 219 (54.75)
(36.25)
mode of payment
Legend: SD – Strongly Disagree, D – Disagree, A – Agree, SA – Strongly Agree
Statistical Test Used: Wilcoxon Signed-Rank test for Paired Samples; *significant at
0.05

The preference of respondents in terms of purchase safety and security were also

determined (Table 4). Respondents preferred physical stores more than online stores in

terms of safety in purchasing products (p<0.001) assurance received on product quality

(p<0.001), safety on being scammed on products advertised/posted with discount price

 41

(p<0.001), security in personal information (p<0.001) and in safety when purchasing using

credit/debit cards and other online mode of payment (p<0.001). On the other hand, more

than 40% of the respondents expressed their disagreement of preference in online stores

in terms of assurance of product quality (40.5%), concerns on being scammed (47.25%),

security on information provided (48%), and safety on payment transaction (41.5%).

Table 7: Test of Significant Difference on Consumer’s Preference Between Online

and Physical Store

Test
Median Mean SD P-value
Statistic
Convenience
Online Store 3.4 3.36 ± 0.55
35773.5 <0.001
Physical Store 3.2 3.19 ± 0.55
Purchase safety and security (PSS)
Online Store 2.8 2.72 ± 0.68
53583.5 <0.001
Physical store 3.6 3.46 ± 0.54
Statistical Test Used: Wilcoxon Signed-Rank test for Paired Samples; *significant at
0.05
4 4

3.5 3.5
Mean (Convenience)

3 3
Mean (PSS)

2.5 2.5

2 2

1.5 1.5

1 1
Online Store Physical Store Online Store Physical Store
Store type Store type
 42

Figure 1: Side-by-side boxplot of respondent’s mean score on convenience

preference (left) and purchase safety and security preference (right) between two
store types.
Overall preference of respondents were also evaluated. Each response was

assigned with a value (Strongly Disagree=1, Disagree=2, Agree=3, Strongly Agree=4)

and mean scores per each set of response on the two factors (Convenience and

Purchase safety and security) for both online and physical store were computed. Figure

1 shows the distribution of the respondent’s computed mean scores in boxplots while

median and mean values were summarized in Table 7. Since the computed mean values

does not follow normal distribution, non-parametric tests were conducted instead. Online

stores has a higher median and mean score in terms of preference in convenience

(Median= 3.4; Mean= 3.36, SD=0.55) compared to physical store (Median= 3.2; Mean=

3.19, SD=0.55), while physical store has a large gap (Median= 3.6; Mean= 3.46,

SD=0.54) to online store (Median= 2.8; Mean= 2.72, SD=0.68) when it comes to purchase

safety and security. At alpha=0.05, online stores are more preferred in terms of overall

convenience (p<0.001), while physical stores are more preferred when it comes to

purchase safety and security (p<0.001).

Table 8: Distribution of Respondents According to the Likelihood of Purchasing a

Product Category in Online and Physical Store
VU U L VL
No Items Store type p-value
Frequency (%)
57 210 108
Online 25 (6.25)
(14.25) (52.50) (27.00)
1 Fashions/Bags/Apparel <0.001
24 126 248
Physical 2 (0.50)
(6.00) (31.50) (62.00)
70 171 146
Online 13 (3.25)
Household/Hygiene (17.50) (42.75) (36.50)
2 <0.001
supplies 22 113 264
Physical 1 (0.25)
(5.50) (28.25) (66.00)
 43

89 166 113
Online 32 (8.00)
(22.25) (41.50) (28.25)
3 Skincare Products <0.001
39 127 227
Physical 7 (1.75)
(9.75) (31.75) (56.75)
133 113 60
Online 94 (23.50)
(33.25) (28.25) (15.00)
4 Mobile/Gadgets <0.001
28 81 288
Physical 3 (0.75)
(7.00) (20.25) (72.00)
102 175 69
Online 54 (13.50)
(25.50) (43.75) (17.25)
5 Sports Equipment <0.001
45 117 225
Physical 13 (3.25)
(11.25) (29.25) (56.25)
121 159 54
Online 66 (16.50)
(30.25) (39.75) (13.50)
6 Home Appliance <0.001
25 92 279
Physical 4 (1.00)
(6.25) (23.00) (69.75)
123 121 97
Online 59 (14.75)
(30.75) (30.25) (24.25)
7 Groceries <0.001
12 87 300
Physical 1 (0.25)
(3.00) (21.75) (75.00)
86 191 75
Online 48 (12.00)
Kitchen/Dining/Home (21.50) (47.75) (18.75)
8 <0.001
Furniture 114
Physical 5 (1.25) 15 (3.75) 266 (66.50)
(28.50)
SD – Strongly Disagree, D – Disagree, A – Agree, SA – Strongly Agree

Statistical Test Used: Wilcoxon Signed-Rank test for Paired Samples; *significant at 0.05

Respondents were asked on the likelihood of them purchasing different type of

products in an online store and in physical store. More than 70% of the respondents

expressed their likelihood (likely and very likely) of purchasing Fashions/Bags/Apparel

and Household/Hygiene supplies, while more than 60% of the respondents will likely and

very likely purchase skincare, sports equipment and Homeware products

(Kitchen/Dining/Home Furniture on both store types. 92.25% of the respondents

answered that they are likely to purchase these products on physical stores and 96.75%

of the them would groceries on physical stores as well.

 44

Of the eight product categories listed, 56.70% of the respondents answered that

they are unlikely to purchase gadgets on online stores. In addition, more than 45% of

them are also unlikely to purchase online Home Appliances (46.75%) and groceries

(45.5%)

Wilcoxon Signed-rank test revealed that respondents are more likely to purchase

all product categories listed on physical stores than on online stores.

Table 9: Test of Significant Difference on Consumer’s Preference Between Online

and Physical Store
Median Mean SD Test Statistic P-value
Shopping satisfaction
Online Store 8 7.94±0.08
25480 <0.001
Physical Store 9 8.37±0.08
Purchasing Satisfaction
Online Store 8 7.79±0.08
31308 <0.001
Physical store 9 8.72±0.07
Statistical Test Used: Wilcoxon Signed-Rank test for Paired Samples; *significant at 0.05

10 10
9 9
8 8
7 7
Score

Score

6 6
5 5
4 4
3 3
2 2
1 1
Online Store Physical Store Online Store Physical Store
Store Type Store Type

Figure 2: Side-by-side boxplot of respondent’s scores on their level of satisfaction

shopping (left) and purchasing products (right) between two store types.
 45

Lastly, respondents were asked about their level of satisfaction in shopping and

purchasing products in and online store and in physical store. The range of sore a

respondent can give is from 1 (lowest) to 10 (highest). Figure 1 shows the distribution of

the respondent’s level of satisfaction in boxplots while descriptive statistics were

summarized in Table 9. Both median and mean are reported but since the data is not

normally distributed, a non-parametric test was used to test for significant differences of

satisfaction between two store types. Respondents has a higher satisfaction in physical

stores in terms of shopping (Median= 9; Mean= 8.37, SD=0.08) and in purchasing

(Median= 9; Mean= 8.72, SD=0.07). Wilcoxon Signed-Rank test revealed that the

satisfaction score of respondents in physical stores are significantly higher, indicating that

respondents are more satisfied visiting physical stores to shop and purchase products.
 46

CHAPTER V

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

In this chapter of the research, the summary of findings, conclusions, and

recommendations will be elaborated and discussed.

Summary of Findings

Conclusion

Pandemic has undoubtedly influenced our everyday lives significantly. The rapid

shift of daily life activities from offline to online has had an immersive influence on the

consumer’s shopping behavior. As we slowly go back to the New Normal, Filipino

consumers are returning to physical stores, but their online shopping habits, which they

formed during the pandemic, remain relevant. In this context, the researchers aimed in

identifying consumer’s preferences and level of satisfaction using online stores and

physical stores in the New Normal.

When it comes to consumer's perception considering convenience, our data

showed that online stores are more favored by respondents in terms of most factors

except for the product returns and warranty. It is worth noting that while respondents are

in agreement on all items applied both to online and physical store, almost half of them

are in disagreement about the online stores’ returns and warranty processing. This clearly

conveys that warranty and returns is highly important to respondents’ overall order

experience. There are several factors to consider why this poses a challenge to the their
 47

online shopping experience, the most common is the longer time limits in processing and

communication, also rampant these days is the replacement/refund fraud.

The preference of respondents in terms of purchase safety and security were also

determined, and it somehow correlates to one of factors above concerning fraud in

warranty and returns. Apparently, respondents preferred physical stores more than online

stores in terms of safety in purchasing products, assurance received on product quality,

safety on being scammed on products advertised/posted with discount price, security in

personal information and in safety when purchasing using credit/debit cards and other

online mode of payment. On the other hand, more than 40% of the respondents

expressed their disagreement of preference in online stores in terms of assurance of

product quality, concerns on being scammed, security on information provided, and safety

on payment transaction. Such are some of the ongoing concerns that e-commerce must

address accordingly to maintain consumers’ loyalty and prevent credibility issues.

Lastly, the study shows that the respondents are more likely to make a purchase

in both types of stores for categories including groceries, fashions, bags, and apparel;

household and hygiene supplies; skin care; sports equipment; and homeware products;

as well as groceries. The processing of warranties and the safety and security of the

transaction are the key concerns voiced by other respondents, who stated that it is highly

unlikely that they will shop for gadgets and homeware online.

The study also revealed that the satisfaction scores of respondents in physical

stores are significantly higher when shopping and purchasing products.

 48

Recommendation

The purpose of this research is to provide additional information about the new

business industry and, ultimately, to provide new solutions to some challenges in the field.

The researchers advise customers of both online and physical stores to be as

smart as possible when selecting the best shopping environment for the purchase of

things they believe to be desirable. Because, despite the conclusion of this study that

shopping in physical stores is more rewarding than online shopping, there is always

variation between individuals' experiences depending on the context to which they

belong, Since this study was limited to Quezon City, Makati City, and Manila City, there

is no guarantee that its findings are applicable to all locations. Customers are also advised

to utilize the findings of this study as a guide when selecting an appropriate shopping

environment for themselves, but only as a guide that can influence a decision and not as

a decision-making resource.

Future entrepreneurs are advised by the researchers to use social media as a

forum for marketing and advertising, but to keep in mind that a physical store is

significantly more rewarding for customers.

Researchers recommend to online businesses that they value the various aspects

that a consumer looks for when purchasing a product. Because virtual shops are

intangible, they must provide tangible benefits to customers. They must establish trust

with each consumer and ensure the long-term viability of all aspects of their product.

Online stores, on the other hand, should continue to provide customer satisfaction by

maintaining strong customer relationships. It is a good foundation for establishing trust

 49

and loyalty, which can lead to repeat purchases and recommendations of the products

they are selling to their friends and family.

In addition, the researchers recommend that physical store owners improve their

product line. The experts encourage store managers and salespeople to continuously

enhance their staff and inventory. They must improve the competence, courtesy,

dependability, responsiveness, trustworthiness, and communication abilities of their

employees. Conversely, physical store products must improve their features, durability,

and compliance. Through these product and people factors, the company is able to

maintain its great performance and withstand the challenges given by online merchants.
 50

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