A Qualitative Research

Presented to the Faculty of

Business and Accountancy

A study on Online Shopping experience and Customers satisfaction around

Pampanga.

By:

Pineda, Jamaica T.

Pineda, Jemimah Keziah H.

Dabu, Kevin Gil B.

Gatchalian, Ashley Nicole B.

Elizaga, Mariz S.

Lingat, Ramon D.
CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

1.1 Introduction

Nowadays the life style of the people is different. People feel uncomfortable

and time consuming for going crowded markets. So, E-Shopping is a boon as it

saves lot of time. Online shopping is a process whereby consumers directly buy

goods, services etc. from a seller without an intermediary service over the

Internet. Shoppers can visit web stores from the comfort of their house and shop

as by sitting in front of the computer. Online stores are usually available 24 hours

a day and many consumers have internet access both at work and at home. So it

is very convenient for them to shop Online.

Online shopping is becoming increasingly popular for variety of reasons.

There are certainly outside factors such as increasing gas prices, difficulty in

getting to traditional stores and hassles often associated with shopping malls and

other traditional stores to contribute to the increased interest in online shopping.

Consumers can get full information about the product with its reviews being

passed by the existing users. If one wants to buy a product he/she is no longer

limited to asking the friends and families because there are many products

reviews on the web which gives opinions of the existing users of the product.
 Online shopping is a form of electronic commerce which allows consumers to

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

Consumers find a product of interest by visiting the website of the retailer directly

or by searching among alternative vendors using a shopping search engine,

which displays the same product's availability and pricing at different e-retailers.

As of 2016, customers can shop online using a range of different computers and

devices, including desktop computers, laptops, tablet computers and

smartphones. Online shopping is one of the services which based on internet.

Advances in technology were being adopted by almost every business in

existence, since more and more of the world’s population are becoming members

of the online society. Connected devices, such as computers, mobile phones and

tablet became a way of life for many. Around 40.4% of the world population has

an internet connection today. Compared in the year 1995 wherein there is only

1% of the population who uses the internet, the number of internet users had

increased tenfold from 1999 to 2013. The first billion was reached in 2005, the

second billion in 2010 and the third billion was reached last 2014 (Internet Live

Stats, 2015).

As the internet usage had grown extensively all over the world, it is no longer

used solely for the purpose of entertainment and research. It is now used as a

tool in business. Internet nowadays is used for marketing, advertising and as a

transaction medium. By using Internet, people have the opportunity to sell goods

or services worldwide, and thus building the concept of e-commerce (Napitupulu,

& Kartavianus, 2014).

But, what do we mean when we say e-commerce? E-commerce is the pre-

eminent buzzword of the online business revolution. It captures the excitement

and focus of this fast emerging market. At its core it embodies a concept for doing

business online. It is the paperless exchange of business information using

electronic data interchange (EDI), e-mail, electronic bulletin boards, fax

transmissions, and electronic funds transfer. It refers to Internet shopping, online

stock and bond transactions, the downloading and selling of “soft merchandise”

(software, documents, graphics, music, etc.), and business-to-business

transactions. Its concept is all about using the Internet to do business better and

faster (BusinessTown.com, LLC, 2001-2003).

The use of internet for e-commerce had developed drastically around the

world, especially in the west. Advancements in technology had further developed

it. Shopping online had become even more convenient. Many banks had started

offering e-banking that supports easier payment process for the online market. As

a result, many consumers especially the young and busy professionals had

changed shopping habits and turned to e-commerce in purchasing their need

since it is more comfortable than the conventional shopping style which usually
attributed with anxious, crowded, traffic jam, limited time, no parking space and

out of stock problems.

Philippines, with its more than 39.4 million of internet users ranked 16th in the

world and penetrating an estimate of 39.43% internet users against its total

population (Internet Live Stats, 2015). Moreover, when it comes to learning more

about what they need to buy, Filipinos are among the most active in the Asia-

Pacific region in using the Internet for product research and sharing online deals

(Lucas, 2012). However, despite the acceptance of e-commerce in western

countries, the rise of online stores, product research and technological

advancements, shopping habits of Filipinos remain traditional. The number of

Filipino consumer that purchases online remains relatively low. For that reason,

this study is designed and patterned to the study of Leelayouthayotin (2004) and

Napitupulu & Kartavianus (2014) and from the other related studies to investigate

factors that encourages and discourages consumers to purchase online and find

out the relative importance of each factor with respect to the other factors. So as

to developed a model that would encouraged customers to engage more into

online shopping for e-commerce to be successful in the Philippines market.

1.2 Statement of the Problem

 This research attempts to determine the effective strategies to promote and

sell via online shop.

This research aims to answer the following:

1. Costumer satifistication in terms of:

- price of the product

- Quality of the product

- How long the product will be delivered

2. What are the strategies of a seller to sell product?

-Develop the right mindset

- Good approach

- Show, don't tell

- Use online advertisment

3. Is there a significant relationship between a seller and a costumer? And

what will be the effect?

1.3 Significance of the Study

 The significance of the study lies on the benefits of determining, analyzing

and developing factors that affect online consumer’s purchasing behavior in order

to make e-commerce effective and acceptable in the Philippines’ market.

E-commerce site owner, It aims to help e-commerce sites owners have an idea

on how to strategize their business, on how to build the customer loyalty and how

to promote their product to make it attractive to the consumer and make internet

users be online consumers. By helping the e-commerce site owners learn on

which factor affect the consumer most.

Traditional market, As for the traditional retailers they can be engaged in online

shopping activities to continue their profit rotation and by using online selling,

organization can expand their market to national and international with minimum

capital investment. An organization can easily locate more customers, best

suppliers and suitable business partners across the globe.

Government, In this fast moving economy where technology slowly becoming

threat to man’s labor, where fast and efficient computers were being favored over

manpower, it will be a great help if one will consider investing in e-commerce since

it does not need a space or a physical store, a business that is definitely easy to

put up that can be put up by anyone of any age as long as there is internet

connection, and considering that internet cafes and free Wi-Fi connection had

been widespread all over the country, it is not necessary that you have a
connection at home. E-commerce being an entrepreneurship might be the

answer to unemployment.

Social Media. Internet-based tools or websites that facilitate sharing of content,

opinions, links, images, or videos between people.

Future Researchers, Future researcher will benefit from this study due to the fact

that this research will be using first hand gathered data and was developed

through reading and analyzing a good number of written literature and studies

with the guidance of experts.

Through this research, the researchers look forward into studying what

influences consumer’s buying behavior online This shift in business style and

buying process would be a great help into the cutting down of unemployment,

cost, time and pollution that is now a problem of the economy.

1.4 Definition of Terms

Benefits of online Shopping, saving time, money and effort in purchasing items

compare to the traditional shopping.

Ease of payment, mode of payment when buying online, it can be in the form of

cash, credit card, remittance services, and mobile payments, and other.

E-commerce, online exchange of value between companies and their partners,

employees, or customers without geographical or time restrictions. In this study,

this term denotes to the activity of selling products online.

Firm’s reputation, customers’ perceptions of how well a firm takes care of

customers and how it is genuinely concerned about their welfare.

Internet, describe computer networks capable of providing instant access,

organizing, communicating information and supporting transactions. The Internet

is an efficient medium helping companies to interact and deliver messages and

marketing activities on actual consumer responses regardless of location and time

difference.

Internet users, describe current Internet users who have logged on to the Internet

within the past 12 months.

Online purchase, describe a transaction carried out by consumers in order to

search, select, and purchase products via the Internet.

Quality of information, describes the quality, arrangement, usefulness or

relevance of information of the product or services offered in an online store.

Trust, consumers perception of security and privacy about the online store and

its owner. This pertains to the confidence of the consumer to give some of his

personal or financial information in order to buy, purchase or do a transaction with

the online store and its owner.

Websites design, environment of the sites, it’s all about the order of products in

the site. How accessible the information, how colorful and attractive the design

and layout, are some of the concerns in this independent variable.

 CHAPTER 2

METHOD

2.1 Research Design

The research design used by the researchers in this study was the descriptive

correlation survey method using the survey questionnaires as the main

instrument.

Descriptive research was defined as the study designed to depict the participants

in an accurate way. More simply put, descriptive research is all about describing

people who take part in the study. In addition, descriptive method of research is

intended to explain the reasons behind the performance of a specific population

in an organized and precise way.

2.2 Subjects

The subject or respondents of the study are the people who experienced online

shopping. The respondents of the research will be asked to answer the

questionnaire. Respondents are the providers of information that is necessary in

the study. The information can be educe through writing.

2.3 Study Locale

The study was conducted at Pampanga Philippines, this place was selected

for knowing the efficiency of the said study among ABM students and for them to

feel comfortable, this study was been implemented on the grade11 Accountancy

Business and Management students, these study has tested the effectiveness of

Online shopping while reviewing their studies before taking their practical

research this study helped researchers.

2.4 Research Instrument

The researchers used a questionnaire that is based on the topics on Online

Shopping as well as with some sellers since it was studied by the grade 11

students. The Strategies that researchers made are being faced the reality and

Work as one, Be focus, Make sure that every question is necessary, Be sensible

for those ideas, Respect one’s opinion, Knowing your goals. They also include

the tools for data collection, one of those tools is Interview or survey.

Through interviews we will have more information about what we want to answer

questions and it also provides different opinions of people. Other tools in data

collection is observation through observation lets us see the results of an

experiment, even if they are not the results we expect. It lets us see unexpected

things around us that might stimulate our curiosity, leading to new experiments.

2.5 Data Collection

The researchers will gather information from students and online sellers about

their perspective in online shopping. Data will be collected using a variety of

methods including one-on-one assesment, computer-assisted telephone

interviews (CATI), and self administered paper and pencil questionnaires.

2.6 Data Analysis

The researchers will process the data collected by analyzing and interpreting

the findings using table and graphs. The result of surveys about online shopping

will be summarize by the researchers.

 REVIEW OF RELATED LITERATURE

Nowadays, the rapid development of the Internet and its effect on daily life

has introduced a new consumer profile which is referred to as the 'online

consumer'. Such consumers are affected by different factors and they have

different purchasing habits with respect to traditional consumers. The main goal

of this paper is to depict the factors that have an impact on consumers' online

purchase intentions through an in-depth analysis of the relevant literature. After

an extensive literature review, 100 relevant articles are identified. The factors

influencing consumers' online purchase intentions, which have been examined in

these selected articles, are classified according to their similarities, and grouped

under relevant categories. The study results reveal that while most of the studies

focus on the impact of consumer characteristics, and merchant and product

characteristics on online purchase intention, the impact of social media is

generally underestimated in the literature. This can be attributed to the fact that

this is a recently emerged research area. The originality of our paper stems from

highlighting a future research agenda for consumers' online purchase intentions.

While a large number of consumers in the US and Europe frequently shop on

the Internet, research on what drives consumers to shop online has typically been

fragmented. This paper therefore proposes a framework to increase researchers’

understanding of consumers’ attitudes toward online shopping and their intention

to shop on the Internet. The framework uses the constructs of the Technology

Acceptance Model (TAM) as a basis, extended by exogenous factors and applies

it to the online shopping context. The review shows that attitudes toward online

shopping and intention to shop online are not only affected by ease of use,

usefulness, and enjoyment, but also by exogenous factors like consumer traits,

situational factors, product characteristics, previous online shopping experiences,

and trust in online shopping.

A literature review is a body of text that aims to review the critical points of

current knowledge including substantive findings as well as theoretical and

methodological contributions to a particular topic. Literature reviews are

secondary sources, and as such, do not report any new or original experimental

work. Also, a literature review can be interpreted as a review of an abstract

accomplishment. The objective of this study is to investigate the factors affecting

online shopping. A model explaining the impact of different factors on online

shopping intentions and behavior is developed based on the theory of planned

behavior. The model is then tested empirically in a longitudinal study with two

surveys. Data collected indicate that subjective norms, attitude, and beliefs

concerning the consequences of online shopping have significant effects on

consumers' intentions to buy online. Behavioral control and intentions significantly

influenced online shopping behavior. It's a net gain for the virtual world. Riding

high on the increasing interest of the net savvy people, online shopping portals
are witnessing a whopping 200% growth in the sale of electronic items every year.

"Since electronic gadgets such as cell phones and iPods usually involve an

individual choice compared to products catering to the needs of the entire family.

For further understanding of the study, the researchers made use of different

reading materials related to the online system. These materials such as books,

magazines, newspapers, thesis and other web articles are essential in broadening

the knowledge of the researchers. These will also guide the researchers to

achieve their target objectives by getting ideas on other related studies and make

improvements as possible. This review consists of books, articles, documents that

focus on the same subject matter or other concepts of the study.

The web has become an opportunity for the marketers to add value to products

and services. This has transformed the traditional commerce and enhanced sales

and changes of merchandise and information. It is not just considered as single

entity of technology but a combination of technologies where applications,

processes, business strategies are necessary to do business electronically.

Shopping online has never been so easy. With the flourishing numbers of

online merchants, people nowadays have various choices to do their shopping.

Big companies such as eBay and amazon.com have introduced many value

added features to help the customers to decide what to shop for. With features
such as price comparison, product photos and user reviews, consumers can shop

easily and smartly without even going to the stores and having such a hard time

looking for the products they want. All they have to do are just browse for the

product they want in the website and within a few mouse clicks they are off. Such

simplicity is what makes online shopping appealing for consumers. The question

is, why do many people still deny to shop online? Well, for most people, privacy

and security issues are their concerns. Hence, here I will discuss customers’

perception of privacy and security issues, the reality of such issues and ways to

avoid those issues, all based on some trustworthy sources I have found. Now,

after knowing that privacy and security issues are vital for consumers in online

shopping, I would like to know the emphasis in the real world. From an article titled

“The Myth of Secure E-Shopping” published in PC World, the reality of such issue

is revealed. While most consumers trust big and well established online merchant

such as CD Universe, Travelocity, Columbia House and Ikea, these big

companies still receive frequent security threats (Kandra 29). Joseph McDonnell,

a CEO of online security firm IShopSecure even confessed that all online firms

must have received threats of some sorts (29). He added by saying that hackers

could easily infiltrate and get customers personal information online as online

shoppers are not anonymous. Experts also discover that security measures taken

by online retailers are insufficient (29). For instance, data encryption only applies

in actual transfer of customer data but not in the database which is ironically the

most common targets for hackers. Some other sites however, do not even have
privacy and security policy posted implying that they do not protect their

customers (Hairell 30).

The review of related literatures of this study is made here in the Philippines

and in abroad. It is acquired from the internet and unpublished theses. It is nearly

related on the relationship of computer game addiction to interpersonal

relationship to adolescents especially, K-12 students. To enrich the background

on the subject of the researcher, the literatures that were found are here in

presented.

Based from the study of Mark Griffiths (2007),“Does Internet and Computer

"Addiction" Exist? It has been alleged that social pathologies are beginning to

surface in cyberspace (i.e., technological addictions). To date, there is very little

empirical evidence that computing activities (i.e., internet use, hacking, and

programming) are addictive. Anecdotal evidence indicates that the typical "addict"

is a teenager, usually male, with little or no social life, and little or no self-

confidence. This article concentrates on five case studies of excessive computer

usage. It is argued that of the five cases, only two of them describe "addicted"

subjects. Addiction components criteria were used in the assessment. The

excessive usage in the majority of cases was purely symptomatic and was

highlighted how the subjects used the Internet/computer to counteract other

deficiencies.
 The 2009 OSDUHS Mental Health and Well-Being Report by the Centre for

Addiction and Mental Health (CAMH) in Toronto, Ontario, showed almost 10% of

9,000 surveyed students from Grades 7 to 12 get at least 7 hours a day of "screen

time". A little over 10% also reported having computer gaming problems in the

previous year. A recent article Pediatrics (journal, 2009) found a mild association

between watching television and playing a computer game and attention issues

in more than 1,300 children ages eight to 11 years old. Children who played

computer games or watched television for more than the normal two hours a day

maximum, which is recommended by the American Academy of Pediatrics were

1.5 - 2 times more likely to show signs of attention issues, the researchers found.

Local Literature An article from The Philippine Star dated August 7, 2012 by

Louella D. Desiderio entitled “Businesses urged to use Internet to push products”.

It shows that businesses are advised to use the Internet for promoting their

products and services as more consumers are going online to research before

making purchases. Companies should consider using online advertisements for

the products and services they offer as more and more people are using the

Internet to research goods they plan to buy before making the purchase. It also

states that in the Philippines, the study showed that around 70 percent of

consumers first make a research of their purchases online even if they purchase

offline. This trend shows the potential of entitled “Online Advertising to Surpass
Print and TV in 2013”. It shows that online advertising has continued to grow,

achieving 10% year on year growth recording $813.25 million for the three months

ending September 2012. The results of the Online Advertising Expenditure Report

(OAER) by IAB Australia, compiled by PricewaterhouseCoopers (PwC), show that

while the general advertising market is softening, online advertising is on track to

surpass both newspaper and TV advertising in 2013. It is related to the study

because it shows how effective is online advertising to businesses that it became

on track to surpass both newspaper and TV advertising in 2013. It also shows that

online advertising is continuously growing and becoming more effective to

advertisers and businesses.

An article from HBS Working Knowledge dated August 17, 2009 by John

Quelch entitled “Quantifying the Economic Impact of the Internet”. It shows that

Businesses around the advertising-supported Internet have incredible multiplier

effects throughout the economy and society.

Online shopping has obtained very important position in the 21st century as

most of the people are busy, loaded with hectic schedule. In such a situation

online shopping became the easiest and most suitable mode for their shopping.

Internet has changed the way of consumer’s store, and has rapidly developed into

a global perspective. An online shop arouses the physical similarity of buying

products as well as services from internet shop and this process of shopping is

called business-to-consumer online shopping. The present paper is based on

assumption of classical model behavior. This paper examines the behavior and

perception of online customers in Aizawl.

In this study, we conducted extensive reviews of online shopping literatures

and proposed a hierarchy model of online shopping behavior. We collected 47

studies and classified them by variables used. Some critical points were found

that research framework, methodology, and lack of cross-cultural comparison,

etc. So we developed a cross-cultural model of online shopping including

shopping value, attitudes to online retailer's attributes and online purchasing

based on the integrated V-A-B model.

Internet shopping is a phenomena that is growing rapidly nowadays. A peep

into the exponential growth of the main players in this industry indicates there is

still a large reservoir of market potential for e-commerce. The conveniency of

online shopping rendering it an emerging trend among consumers, especially the

Gen Y. The prevalence of online shopping has raised the interest of the retailers

to focus on this area. Therefore, this study was to determine the relationship

between subjective norm, perceived usefulness and online shopping behavior

while mediated by purchase intention. University students aged between 18 and

34 that currently pursuing their studies in University Malaysia Perlis were selected

as the subject of analysis. 662 out of 800 sets of questionnaires distributed were

valid for coding, analyzing and testing the hypothesis. Collected data were then

analyzed using SPSS version 18.0 and AMOS version 16.0. Structural Equation

Modeling to examine the model fits and hypothesis testing. The conclusion can

be depicted that subjective norm and perceived usefulness significant positively

influence online purchase intention but subjective norm insignificant influence

shopping behavior in a negative way. It is interesting to note that perceived

usefulness also insignificantly influence online shopping behavior. Finding also

revealed that purchase intention significant positively influence online shopping

behavior. For future research, sample from working adults and other variables

that related to online shopping were to be included to minimize sampling bias.

The number of consumers buying online and the amount being spent by online

buyers has been on the rise; Forrester Research has estimated Internet sales in

2010 to be more than double that of 1999, $45 billion. In comparison, overall retail

sales in the US totaled $13 trillion in 2010. Thus, e-commerce sales currently

account for only about 2.4% of retail sales, and experts and scholars have argued

over the possible upper limit to the percentage of consumer online spending. Will

the upper limit of online spending exceed that of other direct marketing at 8%? 1

Or will it be as much as one third of purchases in many retail product categories

by 2010, as recently suggested by Forrester Research?

Ultimately, the degree to which online shopping fulfills goal-oriented and/or

experiential consumer needs will affect the amount of shopping dollars that

consumers will choose to spend in each environment. While many writers are

touting the unique capabilities of the online medium to provide interactivity and

personalized experiences, few have focused systematically on what online

shoppers really desire and why they are shopping online in the first place. Clearly

understanding what motivates consumers to shop online can and should inform

strategy, technology, and marketing decisions as well as web site design.

In March 2018, Periscope by McKinsey surveyed more than 2,500 consumers

around the world (including 1,000 in the U.S.) to see how consumers are

researching and purchasing consumer packaged goods (CPG) products online.

Like many other industries that were once dominated by offline sellers, the new

research shows the CPG transactions are increasingly happening on the internet.

In diverse markets across the globe, a significant number of consumers are

relying on the internet to shop. In all of the markets surveyed by Periscope by

McKinsey, the findings revealed that at least 70 percent of the respondents are

undertaking some form of online CPG shopping activity. Despite the perception

of Amer.
 The critical importance of customer satisfaction in online shopping stores has

been recognized in academic research and its literature, in particular. However,

studies in this area remain broad and to some extent fragmented. Therefore, the

purpose of this study is to test empirically the integrated model of customer

satisfaction with online shopping that has been developed by Lee and Joshi

(2009). This study draws on 242 questionnaire surveys of university students in

Dubai, UAE. The analysis of these surveys reveals that attitudes toward online

shopping and the intention to shop online in the UAE are not only affected by ease

of use, usefulness, and enjoyment, but also by some other factors such as

perceived Web-store traits, channel traits and consumer traits.

The origination of the internet created an entire new experience for consumers

regarding gathering information, comparing products or prices and the possibility

of purchasing on the internet. Therefore consumer behavior on the internet is an

important factor for marketers. To predict consumer behavior on the internet

marketers need to understand how, where and why consumers behave online.

This paper tries to analyze studies done by various researchers in order to explore

what online channels consumers use when they are in a particular stage of the

buying decision process (BDP). The study will create more understanding about

why and how on-line consumers go through their buying decision process (BDP).

It will be helpful in drawing a modified and more effective marketing policy.

 In March 2018, Periscope by McKinsey surveyed more than 2,500 consumers

around the world (including 1,000 in the U.S.) to see how consumers are

researching and purchasing consumer packaged goods (CPG) products online.

Like many other industries that were once dominated by offline sellers, the new

research shows the CPG transactions are increasingly happening on the internet.

In diverse markets across the globe, a significant number of consumers are

relying on the internet to shop. In all of the markets surveyed by Periscope by

McKinsey, the findings revealed that at least 70 percent of the respondents are

undertaking some form of online CPG shopping activity. Despite the perception

of American being the most tech savvy nation, French (40 percent) and UK (39

percent) consumers exhibiting the greatest balance of multichannel shopping

preferences followed by German (33 percent) and then U.S. (32 percent)

shoppers.Though one could probably buy anything they need from online shops,

the survey found that consumers had definite preferences when it came to the

CPG products they were willing to buy online. For example, non-perishable items

like canned goods are more likely to be bought online than something like bread.

It makes sense that shoppers would often prefer to shop in-store for things with

short shelf lives. Otherwise, there's a chance the product will lose most of its

freshness during transport. This preference toward non-perishable goods can be

seen in other parts of the research. According to the researchers, beauty and

personal care products topped the shopping list for consumers in France (47

percent), the UK and Germany (46 percent), and the U.S. (38 percent).People of

every age group use the internet to shop for CPG goods, but certain
demographics are more likely than others to do so. As one may suspect, the

Periscope by McKinsey report notes that younger audiences do more online CPG

shopping. Millennial shoppers (aged 18-29) were the largest group in each

country surveyed (except the UK) to only or mostly undertake their shopping for

CPG products online.

The effect of offline brand trust and perceived internet confidence on online

shopping intention in the integrated multi-channel context

Kim Hongyoun Hahn, Jihyun Kim International Journal of Retail & Distribution

Management 37 (2), 126-141, 2009 Purpose

The purpose of this research is to examine the influences of consumer trust

and perceived internet confidence on consumer apparel shopping intention via

the online retailer operated by a multi-channel retailer.

Design/methodology/approach

A total of 261 students in a large US Midwestern University participated in

the paper-based survey and provided usable responses. Structural equation

modeling was used to test hypotheses.

Findings
 Consumer trust in an online retailer was a significant predictor of perceived

internet confidence and search intention for product information via the online

retailer. Search intention for product information via the online store and perceived

internet confidence were significant and strong predictors of consumers'

behavioral intention toward the online retailer.

Research limitations/implications.

Limitations of the present study include sampling, which prevents the

generalization of the results to all multi-channel shoppers.

Practical implications.

The findings of the study suggest that retailers offer an internet channel as part

of a multi-channel retail strategy and provide consistent service throughout their

various channels.

Originality/value

The paper finds that there are significant influences of consumer trust and

perceived internet confidence on consumer apparel shopping intention via the

online retailer operated by a multi-channel retailer.

View at emeraldinsight.com
 Author(s) (2009) Kim Hongyoun Hahn, Jihyun Kim

Publisher: Emerald Group Publishing Limited

The effect of offline brand trust and perceived internet confidence on online

shopping intention in the integrated multi‐channel context.

According to Kim Hongyoun Hahn, Jihyun Kim The purpose of this research

is to examine the influences of consumer trust and perceived internet confidence

on consumer apparel shopping intention via the online retailer operated by a multi‐

channel retailer. – A total of 261 students in a large US Midwestern University

participated in the paper‐based survey and provided usable responses. Structural

equation modeling was used to test hypotheses.

Also according to Kim Hongyoun Hahn, Jihyun Kim the Consumer trust in an

online retailer was a significant predictor of perceived internet confidence and

search intention for product information via the online retailer. Search intention for

product information via the online store and perceived internet confidence were

significant and strong predictors of consumers' behavioral intention toward the

online retailer. Limitations of the present study include sampling, which prevents

the generalization of the results to all multi‐channel shoppers.

The paper finds that there are significant influences of consumer trust and

perceived internet confidence on consumer apparel shopping intention via the

online retailer operated by a multi‐channel retailer.

Author(s): (2009) Soyoung Kim, Christie Jones,

Publisher: Emerald Group Publishing Limited

Online shopping and moderating role of offline brand trust.

According to Soyoung Kim, Christie Jones, The purpose of this paper is to

examine how offline brand trust moderates: the relationship between consumers'

general attitude toward the internet and their perceptions of the quality of a

retailer's web site and the relationship between their perceived web site quality

and intention to shop from the web site.– Two hundred young female consumers

participate in the study. Each selected one of three pre‐determined apparel

retailer brands that she has either had experience with or are familiar with.

Participants are then asked to keep their selected retailer in mind when

completing an online questionnaire. They are also asked to browse the retailer's

web site in search of a shirt or blouse. Factor and multiple‐regression analyses

are conducted to test hypotheses.

Also according to Soyoung Kim, Christie Jones, the Offline brand trust

exerted a significant moderating effect in the relationship between the efficiency

factor of attitude toward the internet and the usability and information quality factor

of web site quality. Offline brand trust also played a moderating role in the

relationship between the interactivity factor of web site quality and online shopping

intention. Implications for multi‐channel apparel retailers are discussed. While a

great deal of research has been conducted to study brand trust, most has focused

on product brands not on retail brands. Furthermore, none of the studies on brand

trust has questioned nor investigated the moderating role of retail brand trust in

the relationship between consumer characteristics and their attitudes and

behaviors toward the company's new business format. This paper seeks to

contribute to the extant literature on brand trust and multi‐channel retailing by

exploring the role of offline brand trust in shopping at a multi‐channel retailer's

web site.

Author(s): (2017) Jyh-Shen Chiou, Szu-Yu Chou, George Chung-Chi Shen,

Publisher: Emerald Group Publishing Limited

The effects of relationship investment and online store preference.

According to Jyh-Shen Chiou, Szu-Yu Chou, George Chung-Chi Shen, the

consumers display complex shopping behaviors in the multichannel environment,

which includes traditional retail stores and the internet. The purpose of this paper

is to examine the effects of the customer-sales associate relationship, customers’

receptiveness to online store shopping, and their interaction effects on the

customer’s attitude toward multichannel shopping behavior when the firm decides

to establish an online store as the online channel. The authors also examine how

customers’ multichannel shopping behavior affects their future spending

intentions.

Also according to Jyh-Shen Chiou, Szu-Yu Chou, George Chung-Chi Shen, the
survey data were collected by soliciting 231 customers who purchased cosmetics

in department stores within the past three months. Subjects were asked to give

their overall evaluation of their offline and online shopping experiences in the last

three months. Results show that the customer-sales associate relationship

significantly reduces customers’ attitude toward searching offline but purchasing

online. Receptiveness to online store shopping has significant effects on

customers’ attitude toward multichannel shopping behaviors regardless of

whether they search or purchase via the online channel. The customer-sales

associate relationship also moderates the relationship between customers’

receptiveness to online store shopping and multichannel shopping behaviors.

Finally, unlike other types of online and offline multichannel shoppers who display

higher future spending intentions when the physical store decides to open an

online store, those who prefer physical stores for both information searching and

product purchasing display lower spending intentions. the best of the authors’

knowledge, this paper is the first to use customer-sales associate relationships to

investigate consumers’ attitude toward multichannel shopping behavior. The

findings provide meaningful implications for service providers that use sales

associates to increase consumers’ value via face-to-face service, but find it

challenging to go online.

Author(s)26 Nov 2008 Chris Forman, Anindya Ghose, Avi Goldfarb

According to Chris Forman, Anindya Ghose, Avi Goldfarb their paper shows
that the parameters in existing theoretical models of channel substitution such as

offline transportation cost, online disutility cost, and the prices of online and offline

retailers interact to determine consumer choice of channels. In this way, our

results provide empirical support for many such models. In particular, we

empirically examine the trade-off between the benefits of buying online and the

benefits of buying in a local retail store. How does a consumer's physical location

shape the relative benefits of buying from the online world? We explore this

problem using data from Amazon.com on the top-selling books for 1,497 unique

locations in the United States for 10 months ending in January 2006. We show

that when a store opens locally, people substitute away from online purchasing,

even controlling for product-specific preferences by location. These estimates are

economically large, suggesting that the disutility costs of purchasing online are

substantial and that offline transportation costs matter. We also show that offline

entry decreases consumers' sensitivity to online price discounts. However, we

find no consistent evidence that the breadth of the product line at a local retail

store affects purchases.

Publisher:(4th April 2015) National Conference on Innovative Trends in Computer

Science Engineering

According to National Conference on Innovative Trends in Computer Science

Engineering. The Online Shopping play a great importance in the modern

business environment. Online shopping has opened the door of opportunity and

advantage to the firms. This paper analyzed the different issue of online shopping.

This Study Discuss the consumers’ online shopping behaviors. Present paper is

a expressive study based on the detailed review of earlier pertinent studies related

to the various concepts of online shopping to discover the concept of online

shopping. Solitude and safety risk emerges regularly as a reason for being

cautious about internet shopping. Shopping convenience, information seeking,

social contact, and diversity affects the consumer attitude towards online

shopping. The impossibility of product testing, problems with complaints, product

return and missus of personal data are the main doubts regarding on-line

shopping.

According to Xia and Monroe (2009), their study resulted that consumers

with a shopping goal are more responsive towards promotional messages such

as “pay less” and “discount” while consumers without shopping goal are

responsive towards promotional messages such as “save more” and “free gift”.

According to Liu, He, Gao and Xie (2008), it is important for e-tailers to provide

varied types of merchandise and preferential price because customer satisfaction

is still based on product price and product variety; to create competitive

advantage, small e-tailers should offer more product choices for the consumers
and offer competitive prices.. In online shopping, consumers are able to compare

prices on the internet in different web sites and they will have the material benefit

because they can analyze and compare prices based to enhance their decision

to purchase.

Jayawardhena and Wright (2009), shoppers who value convenience can

obtain the benefits of product and services with less money spent and this would

have a positive relationship with shoppers’ excitement; increasing search

efficiency by eliminating travelling costs and psychological costs brings

convenience in e-shopping.

According to Hansen and Jensen (2009), accomplishing the shopping trip as

soon as possible refers to the time-saving oriented consumers and they prefer

store choices favoring quick shopping; people who dislike shopping and

approaching for time saving retail stores refers to the economic shoppers or

known as “problem-solvers”.

Broekhuizen and Huizingh (2009) expected the relationship between time or

effort savings and purchase intentions is strengthen; consumers will place more

emphasis on the time and effort savings once they have experienced how little

time and effort takes to make an online purchase.

 Consumer also associate shopping with enjoyment and excitement which

they would think is a fun activity to them regardless in an online or offline context.

Enjoyment is defined as the extent to which online shopping is perceived to be

personally enjoyable and fun (Chiu, Chang, Cheng and Fang, 2009, p.767).

The study of Liu, He, Gao, and Xie (2008) stated that the page desigh, layout

and color match will bring the first impression to the visitors; thus e-tailers should

design comfortable and pleasing pages to attract customers and prolong their stay

so that it will increase the possibility of purchase. Liu, He, Gao, and Xie, (2008)

where they suggested that because the products are intangible in the online

shopping environment, detailed and complete product information should be

provided; to know the quality of a product, consumer can only rely on the pictures

and description on the web page because they are unable to feel and touch the

product. Moreover, to ensure customer can make purchasing decisions, the web

site should provide complete description of a particular good, including its color,

functionality, model, etc.

Research done by Dholakia and Zhao (2009) resulted that online shoppers’

satisfaction and behavioral intention is influenced by both objective and subjective

interactivity.
 The study of Liu, He, Gao, and Xie (2008) stated that the page design, layout

and color match will bring the first impression to the visitors; thus retailers should

design comfortable and pleasing pages to attract customers and prolong their stay

so that it will increase the possibility of purchase.

Author(s): March 8, 2017 Sanjeev Prashar, T. Sai Vijay, Chandan Parsad.

Effects of Online Shopping Values and Website Cues on Purchase Behaviour: A

Study Using S–O–R Framework.

According to Sanjeev Prashar, T. Sai Vijay, Chandan Parsad The e-

commerce industry in India has seen unprecedented growth in last few years.

This growth has been fueled by rapid adoption of technology, improving standards

of living, an increasing young population, and economically advancing middle

class, besides increasing access to the Internet through broadband and use of

smartphones and tablets. The entry of global e-commerce giants has intensified

the competition for home-grown players. E-retailers use web atmospherics to

differentiate themselves from their competitors and evoke positive cognitive and

emotional states of online consumers. However, though this Indian online market

is growing at an exponential rate, it is still unexplored in terms of its shopping

behavior. Confirmatory factory analysis (CFA) was used to estimate the

measurement model with respect to convergent and discriminant validities. This

was followed by testing the structural model framework and research hypotheses.

Findings suggest that both internal and external elements have direct influence

on WS. As the mediating variable, WS affects purchase intention. This research

highlights on why and how ‘satisfaction with website’ matters in the contribution

of shopping values and website atmospherics to behavioral outcomes by

presenting its mediating role.

As we know that online shopping requires shipping fees for product delivery.

It is expected that some consumers intention to purchase a particular product

because they have to pay extra charges for the delivery service. But according to

Jiang and Rosenbloom (2008), retailers can use charges for shipping and

handling as a tool to attract patronage by matching consumers’ delivery needs;

for example, some consumers who would prefer a quick delivery will have to pay

higher cost while others may prefer to wait if they pay lower shipping and handling

charges.

As they do offline, consumers shop online for both goal-oriented and

experiential reasons; in short, they shop to acquire items, and they shop to shop.

However, goal-oriented motives are

more common among online shoppers than are experiential motives. We identify

and discuss

attributes that facilitate goal-oriented online shopping, including

accessibility/convenience,

selection, information availability and lack of unwanted sociality from retail sales

help or

shopping partners such as spouses. Importantly, consumers report that shopping

online results in

a substantially increased sense of freedom and control as compared to offline

shopping. While

consumers are more likely to describe offline rather than online shopping in

experiential terms,

we find evidence of experiential motivations for online shopping emerging. We

offer managerial

implications of mixing online and offline shopping, suggest ways in which the

experiential aspects of online shopping can be enhanced without interfering with

the goal-oriented desires of consumers, and explore the difficulty of creating an

online community. Finally, while closing transactions at websites is one important

e-commerce goal, companies should not lose site of the continuing importance

and power of their website as an information and communications vehicle as well.

Ozyirmidokuz Kahya Esra, Stoica Eduard Alexandru.

Nowadays one of the biggest needs of a firm is to extract knowledge by analyzing

unstructured big data in the strategic decision making process in order to improve

customer satisfaction. The aim of this research is automatically clustering the

online complaints which are about the customers ignoring their subscriptions in

order to understand a specific group of the complaints. 809 customer complaints

which are about ignoring subscriptions are collected from huge amount of online

complaints with web mining from a telecommunication firm and those of its biggest

competitor in Turkey. Text mining and natural language processing techniques

are used to analyze the data. The positive feedback of the customers are re-

analyzed to make an adaptation.

Publisher: “Visa Consumer Payments Attitude Study "2015"

December 20, 2015

Rise in online shopping in PH driven by mobile devices.

According to “Visa Consumer Payments Attitude Study 2015” This study

showed that there are more active online shoppers nowadays compared to a year

ago. The increasing engagement in online shopping, coupled with payment

technologies available in the market, ensure robust growth and steady

development of local e-commerce businesses. And according to “Visa Consumer

Payments Attitude Study 2015” The E-commerce is becoming the ‘new normal’ in

Southeast Asia, as consumers in the region take to online shopping because of

the variety of goods and services available, competitive pricing and improved
delivery options make the whole process much easier. Mobile devices such as

smartphones have also brought online shopping to the palm of our hands,” said

Stuart Tomlinson, Visa country manager for the Philippines and Guam. Strong

intention to shop online using smartphones is also set to rise. More Filipinos

expressed interest in m-commerce (mobile commerce), using of smartphones in

online shopping, from 19 percent in 2015 to 22 percent in 2016.

Price is a form of monetary that people use for any transactions. It is predicted

that price of a product differs in online and offline shopping. 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 (Jiang and

Rosenbloom, 2008). The study of So, Wong and Sculli (2008) resulted that when

there is the presence of promotional offers, consumers will have higher intention

to purchase in web-shopping; purchasing decisions and choice making from

alternative evaluations can be made easily when there is the presence of

promotional offers.

According to Parasuraman, Zeithaml and Berry (2008), perceived quality and

price are thought if as a cue to assume a product’s value. Xia and Monroe (2009)
viewed that at a certain point, perception of lower quality of the product will evoked

when there is a price reduction or there will be questions on the retailer’s intention

to reduce the price. Price will be a primary factor when consumers search product

in a web and this would show that customer behavioral intention are related to the

price cues that are more readily accessible from memory (Jiang and Rosenbloom,

2009).

Pricing factor will also contribute to the shopping convenience. Price

perception is positively and strongly correlated with shopping convenience (Jiang

and Rosenbloom, 2008). Similarly agreed by Jayawardhena and Wright (2009),

shoppers who value convenience can obtain the benefits of product and services

with less money spent and this would have a positive relationship with shoppers’

excitement; increasing search efficiency by eliminating travelling costs and

psychological costs brings convenience in e-shopping.

Time is also perceived as one of a factor that relates with intention to purchase

in a shopping context. It is believed that consumers have their own perception of

time, whether or not to shop from the internet. According to Hansen and Jensen

(2009), accomplishing the shopping trip as soon as possible refers to the time-

saving oriented consumers and they prefer store choices favoring quick shopping;

people who dislike shopping and approaching for time saving retail stores refers

to the economic shoppers or known as “problem-solvers”.

 In online shopping, it requires less effort and better decision making for

consumers who opt to purchase at the e-store (Jiang and Rosenbloom, 2008).

Shoppers may save their time in e-shopping because they do not have to go

through any effort on travelling to a mall or saving their time in other psychology

factors such as traffic jam etc. Online shopping increases search efficiency by

eliminating travelling costs and psychological costs brings convenience in e-

shopping (Jayawardhena et. al., 2009). Comparing online and traditional

shopping, Alreck and Settle (2010) found that internet shopping was viewed as

saving more time.

Consumers expect timely delivery in the online store as they browse and

“internet shopping” is just alike as they visit the “offline stores” and they “create

order transaction” just like they “purchase the product” (Ahn, Ryu and Han, 2009).

In the previous study of Koyuncu and Bhattacharya (2010), the researchers found

that online shopping offers better prices on the products and it allows consumers

to shop more quickly than other shopping alternatives, and this will lead individual

to be inclined to increase their shopping from the internet. According to Monsuwe,

Delleart and Ruyter (2011), online shopping requires least effort, inconvenience

and time investment for consumers to browse the whole product-assortment;

consumers can make the correct decisions efficiently because they can gain vital

knowledge about firms, products and brands.

 Perceived risk is defined as consumer experiencing consequences or the

amount of uncertainty in contemplating as particular purchase decision. (Cox and

Rich, 2008. Similarly, Gronhaug, (2008); Newall, (2013); Upah, (2013) defined

perceived risk as the potential of unfavorable consequences and the level of

uncertainty in a purchasing situation. Stone and Gronhaug (2010) defined

perceived risk increases psychological costs when feelings of discomfort occur in

an individual. According to Walker and Johnson (2013), they stated that perceived

risk has two main concerns. First is concerning the service delivery system’s

technical performance or functional reliability; and second is concern on privacy

and security. Functional or performance goals, psychological goals, or the means

of money, time and effort invested to attain those goals may be regarded as the

consequences (Park and Stoel, 2011).

Perceived risk is expected to be more distinct in online shopping compared

to offline shopping. Perceived risk in online shopping can be reduced in terms of

appropriate description the product. To reduce risk, product information and its

description should be clearly stated as well as the store policies (Kwon, 2008).

Internet marketers must also create trust with online buyers so to lower the buyer’s

perceived risk. There is an important moderating effect on trust with the

relationship between consumers’ attitude toward Internet shopping and intention

to shop online (Monsuwe, Dellaeart and Ruyter, 2010).

 While in online shopping, consumers is expected to relate enjoyment and

excitement with the experience absorbed in the purchasing process and the

excitement level is expected to arise during the product delivery process.

According to Broekhuizen and Huizingh (2009), online shopping causes

enjoyment which is fun and playful rather than from shopping task completion;

customers may regard the purchase of goods in online shopping as an experience

and the perceived entertainment will be regarded as enjoyment to them.

Regardless of online or offline shopping, retailers should put in more effort

to create better environment so that shoppers are able to shop in positive

emotions and enjoy the shopping process. The study of Liu, He, Gao, and Xie

(2008) stated that the page design, layout and color match will bring the first

impression to the visitors; thus retailers should design comfortable and pleasing

pages to attract customers and prolong their stay so that it will increase the

possibility of purchase.

To reduce insecurity in online shopping, designers must take note of

consumers’ needs because the usability is the starting point to get the confidence

and support of the consumers; besides that, tangibility also helps to reduce

heterogeneity of the web site in the supply of the service and to improve quality
control (Alzola and Robaina, 2008). This statement is also parallel with the study

of Liu, He, Gao, and Xie, (2008) where they suggested that because the products

are intangible in the online shopping environment, detailed and complete product

information should be provided; to know the quality of a product, consumer can

only rely on the pictures and description on the web page because they are unable

to feel and touch the product. Moreover, to ensure customer can make purchasing

decisions, the web site should provide complete description of a particular good,

including its color, functionality, model, etc (Liu, He, Gao, and Xie, 2008).

Interactivity is a factor that must be augmented in internet shopping. Various

components of the shopping process that will affect one’s online experience ad

overall shopping process must be aware by the internet marketers (Chen and

Chang, 2008). Besides that, company representatives must be able to answer

customer inquiries and solve problems as soon as they occur because customer

lack of direct, face-to-face interaction with the service provider (Liu, He, Gao and

Xie, 2008). Hansen and Jensen, (2009) suggested that company should provide

personnel advice via chat rooms to provide guidance to the consumers so that it

can mediate the effect of difficulty in selecting items.

When purchasing occurs in an online environment especially for products

such as apparels, it can’t be denied that consumers will have the feeling of

unsecure regarding the product information and the actual material and color that

they will receive by viewing the display in the website. This is also agreed by Park
and Stoel (2008), clothing such as skirts and sweaters are high risk items where

size, color and fit matters to the consumer. According to Burke, (2008);

Parasuraman and Zinkhan, (2008), in internet shopping, there will be risk

involved, privacy, security, visual appeal, delivery terms, form of payment and

product information. Besides that, quality of a product cannot be physically

checked by the consumers and the security of sending sensitive personal and

financial information while conducting online shopping cannot be monitored by

the consumers (Lee and Turban, 2009). For apparel shoppers, they should use

the internet to search for extra information to reduce risk in decision making

because of they are unable to try on the garment (Park and Stoel, 2009). Attitude

towards security transaction such as payment security, consumer information

privacy, return policy, and product shipping guarantee predicts online purchasing

intentions for apparels product (Kim and Kim, 2009).

According to Kotler (2008); Bitner (2008); Solomon, Suprenent, Czepiel and

Gutman (2008), assurance is important to capture confidentiality, shopping

security, complaint resolution, problem solving and warranties. In an online

shopping environment, consumers are not associated with a physical location

while they are only communicating with a machine and not human being (Ekeldo

and Sivakumar, 2009). With the inability of consumers to feel and touch the

product in an online context because online retailing lacks the tangible features,
it makes it difficult to market those products on the internet. (Lindstrom, 2010).

For internet shopping, product such as books, CD’s, videotapes, groceries

and flowers which is more familiar will have higher potential to be purchased by

the consumers (Grewal, Iyer and Lavy, 2008) while products such as car,

computers, perfume, perfume or lotion has the lower potential to be purchased by

the consumer because it requires more personal knowledge and experience

(Elliot and Fowell, 2008). Rich, sensory-oriented product information on the

screen is provided for clothing to substitute the tactile experience, so that it may

be useful to satisfy the consumer’s purchasing criteria (Park and Stoel, 2008).

Personal contact is required or expected when there is event of something going

wrong or creating uncertainty in the mind of the customers (Walker and Johnson,

2009). Some consumers may perceive that the items offered in online shopping

will be difficult to choose than offline shopping because they need to seek advice

from sales personnel (Hansen and Jensen, 2009).

To highlight the term of “atmospheric”, consumer’s purchasing probability is

enhanced through purposefully design the buying environment to produce specific

affective responses in shoppers (Kotler, 2009). When purchasing on the internet,

perceived trustworthy will be higher when the web site has greater interactivity

(Merrilees and Fry, 2009). A citation has been done on Hoffman and Novak (2008)

by Ballantine, (2008, p.463), there are two main types of interactivity are
considered to be applicable to the web. The first, person-interactivity, is the ability

for a person using the web to communicate with other individual. The second,

machine-interactivity, refers to the ability for an individual to access hypermedia

content.

Consumers are then able to make better purchasing decision because of

the increased availability of information provided in the web site, causing a

consumer to be more knowledgeable. (Cook and Coupey, 2008). The research of

Ballantine (2008) resulted that the satisfaction of customer increases when the

level of interactivity provided by an online shopping environment increase; and

similarly the consumer’s satisfaction is also increased when the greater number

of attributes provided on a per-product basis; similarly, Dholakia and Zhao (2009)

agreed that the shoppers were more satisfied when there are higher interactivity

level compared to lower interactivity level web site.

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1. Have you ever used online shopping?

_____________________________________________________________

2. As a costumer, is it important to you the price of the product?

_____________________________________________________________

3. Is it convenient in purchasing online?

_____________________________________________________________

4. What are the factors that you consider in buying products through online?

_____________________________________________________________

5. How long the product will be delivered?

____________________________________________________________________________________________

6. Why quality of products is important?

_____________________________________________________________

7. How would you know if a product has quality?

_____________________________________________________________

8. How can a customer be assured of the quality of a product?

_____________________________________________________________

9. What are your expectations towards services?

_____________________________________________________________

10. Do you prefer buying products at online?