IMPRINTING CONSUMER BEHAVIOUR THROUGH ONLINE MARKETING

TOWARDS GEN-Z IN METRO DAVAO

IN PARTIAL FULLFIMENT OF THE REQUIREMENT IN MARKETING

RESEARCH (MM10)

SUBMITTED BY:

EMMIL SERGIO VIGO

MELJEAN SALINAS
JERIC BUSTAMANTE
JENN RINEHARD SAGUT
JAYSON CLINT YBANEZ
LOUIE JAY BAUTISTA
BENJIE FABIANO
JOHN HENTRY MONTALBAN

SUBMITTED TO:
MR. JENMARK JON FERNANDO JACOLBE

DECEMBER 22, 2019

 INTRODUCTION

1.1 BACKGROUND OF THE STUDY:

INTERNET, a global computer network providing a variety of information and

communication facilities, consisting of interconnected networks using

standardized communication protocols. This means that the world is getting

smaller and smaller and having no boundaries for its usage. Internet has grown

tremendously in both its applications and number of users due to its unique

characteristics of flexibility, interactivity, and personalization. It has been a very

useful tool for communication, entertainment, education, and electronic trade

(Ngowi, A. 2015). With the impressive population growth revolutionizes the trade

sector and uses the internet to narrow its targeted audience making all nations of

the world a huge market, where everyone participates. Companies spend

hundreds of millions into each respective currency by investing to internet

advertisements, making the internet as a very effective tool to reach the market.

The Internet has existed since the late 1960s when a limited number of

computers were connected in the United States from the Advanced Research

Project Agency (ARPA). This was used mainly to enable academics and military

personnel to exchange defense information. Until the advent of the World Wide

Web in 1990, the Internet was almost entirely unknown outside universities and

corporate research departments and was accessible mostly via command line
interface such as Telnet and File Transfer Protocol (FTP) indicates that the

recent dramatic growth in the use of the Internet has occurred because of the

development of the World Wide Web. The World Wide Web changed the Internet

from a difficult-to-use tool for academics and technicians to an easy-to-use tool

for finding information for businesses and consumers. Since then the Internet has

grown to become an almost ubiquitous aspect of modern information systems,

becoming highly commercial and a widely accepted medium for all sorts of

customer relations such as advertising, online sales and services (Ngowi, A.

2015).

Over the past three decades, marketing has had to keep up and contend with

leaps in technology and our relation to it ever since. While the Sales Era

witnessed the invention of the telephone, swiftly followed by the rise of television

and the Marketing Department Era. The industry evolution of the Marketing

Company Era saw arguably the biggest change in the history of marketing: the

first commercially available personal computers.

The mass adoption of the internet into everyday life is the single biggest event

that has affected marketing over the last three decades. Although early desktop

publishing software in the first PCs caused a surge in print marketing in the

1980s, the computers were little more than a glorified typewriter. Launched by

Tim Berners-Lee and his team in 1991, the World Wide Web project didn’t really

take off until the first successful mass-market browser, Netscape, was released
in 1994. In the following two years, the number of people using the web soared

from 16 million to 70.

As users increased, the landscape evolved, from email to search engines like

Yahoo! (1994) and Google (1997) and e-commerce sites like Amazon (1994) and

eBay (1995). For marketing, this was a goldmine. Email became a new outbound

marketing tool, joining the traditional arsenal of TV, radio and print

advertisements and telephone sales. While search engines cataloged the new

websites that were being created and allowed users to find the information,

products and services they desired from the comfort of their own home.

Marketers used early SEO techniques like keyword stuffing, excessive tagging

and backlinks to generate high rankings. One successful company at the time,

renowned for its aggressive marketing tactics was Razorfish. Now one of the

biggest interactive media agencies, Razorfish was a key player in early SEO, as

well as a pioneer of the “server push” possibilities of the Netscape browser.

In a matter of very few years, the Internet consolidated itself as a very powerful

platform that has changed forever the way we do business, and the way we

communicate. The Internet, as no other communication medium, has given an

International or, if you prefer, a "Globalized" dimension to the world. Internet has

become the Universal source of information for millions of people, at home, at

school, and at work.

Internet is changing all the time. Two things, in our opinion, have marked its

evolution recently: the social web and mobile technology. These two innovations

have changed the way people use the Internet. In the social web people have

found a new way to communicate. Since its creation in year

2004, FACEBOOK has grown into a worldwide network of over 2,450 million

active users. Mobile technology, on the other hand, has made possible a much

greater reach of the Internet, increasing the number of Internet users

everywhere.

Retailers need to change in order to suit the modern shopping behavior. It is no

longer sufficed to see a shopper as a rational creature making decisions. It is no

longer enough to think that the shopper acts in a way that makes sense from an

economic of logical point of view.

Shopping itself is a form of self-expression. People define themselves through

their shopping. How they shop, where they shop and what they buy serves the

purposes of letting people express their desires, their needs and personalities.

Shopping gives people a sense of accomplishment. For many, it gives life a

sense, a purpose, value and a function. The successful shopper feels a

sensation of satisfaction, execution and fulfillment. Shopping for emotional and

psychological reasons has become the new mantra of modern society.

In 1940, Abraham Maslow invented a new way to look at how people live, how

they order their priorities and set their goals in life. Maslow suggested that life

consists of five levels which range from elementary where we satisfy the most
basic needs, like food and shelter to where we satisfy our highest psychological

needs, like those for inner emotional fulfillment. Maslow Theory of Needs

suggested that higher needs can only be fulfilled once the lower needs are met.

He also argued that when it comes to shopping, our lower level needs have met

and that were shopping on a higher plane, where a higher level of needs is being

satisfied. To aid the decision making, a brand name provides a shorthand device

or means of simplifications for their product decisions (Ngowi, A. 2015).

CENTENNIALS—also known as generation Z—are those born between now and

1995. Accounting for about 277 million of Southeast Asia’s population, 50

percent of them spend more than $30 a month on online shopping, while 9

percent spend over $100 monthly. The size of this new generation alone makes

them attractive for retailers, but the behaviors of this group make them lucrative

in terms of its online shopping and e-commerce potential. They are the

consumers of the future

Nick Waters, CEO of Dentsu Aegis Network Asia Pacific, said: “All eyes are on

Southeast Asia as the world’s next consumer powerhouse, with its young

population and increasing purchasing power. Close to 280 million centennials—

tomorrow’s consumers—call this region home. Enabled more than ever before by

technology and data, we are seeing incredible potential for growth in the region

and our latest research Here Comes the Centennial: Southeast Asia’s New

Generation of Shoppers, helps us understand what is important for these

consumers of the future and how businesses can adapt and position effectively

for Southeast Asia’s future retail landscape.”

Filipinos actively participated last year in online-led shopping occasions such as

Single’s Day and 12/12, led by e-tailers, Lazada and Shopee. Having gotten their

feet wet in these digital retail pools, Filipino consumers will continue to explore

online buying this year across categories, as ecommerce hits the masses. These

young buyers in their teens to early 20s are excited about digital retail formats.

Yet they can be a tough crowd, uncompromising in their demand for good value

and great user experience.

Online shopping has been a growing craze in the Philippines in the past few

years. A study conducted as early as 2015 found that 9 out of 10 Filipinos

preferred online shopping. The same study found that convenience, cheaper

prices and special deals were the leading reasons for the respondents’

preference for online shopping.

The market has rapidly grown since then. According to Eshopworld.com, there

are at least 37.7 million e-commerce users in the country in 2018 from the 30.2

million estimated in 2016. The number is expected to rise to 53.8 million by 2022.

Statista’s e-commerce outlook meanwhile estimates that there are currently at

least 47.3 million e-commerce users in November 2018, yielding a revenue of

$840 million. A report published in May 2018 found that despite its growing

popularity, the Philippines lags in terms of growth of e-commerce sales in the

Southeast Asian region

2.1 RESEARCH PROBLEM

Advertisers are expected to shift and spend millions in internet advertising in the

coming years than TV, print ads and other traditional advertising media. Internet

advertising broadly consists of various commercial content formats delivered by

video clip, print, and audio; either solicited or unsolicited and includes company

web sites, corporate logos, email messages, pop-ups, banner ads, skyscraper

ads, buttons, interstitials, hyperlinks, dynamic media, and interactive games

(Ngowi, A. 2015)

With the rapid growth of technology, the internet is becoming the most relevant

tool in marketing where consumers heavily rely on, could be communication,

entertainment, shopping, information search, internet servers, name it, internet

almost have it all.

The economy of the Philippines is the world's 36th largest economy by nominal

GDP according to the 2019 estimate of the International Monetary Fund's

statistics, it is the 13th largest economy in Asia, and the 3rd largest economy in

the ASEAN after Indonesia and Thailand. The population of the Philippines has

been steadily growing for many years. It is the 13th most populated country in the

world, between Mexico and Ethiopia, and grew at a rate of 1.72% between 2010

and 2015. The 2019 population is 108.82 million, according to the latest UN

estimates.

With the emerging era of centennials or the generation-z, that is born between

1995 and 2015 under the ages of 4-24 years old. With the current census under
the legal age of 18-24 years of age and with the capacity to purchase by any

means is about 19.62% of the population.

The study focuses the purchase behavior of the said ages 18-24 years old and

how online marketing affects their buying decisions? The study will be conducted

in the city of metro Davao. Samples are and will be chosen strategically. will use

a sample of 100 people under the targeted ages, the study wishes to determine

their behavior and buying decisions towards online marketing.

.
2.2 THE RESEARCH OBJECTIVE

The study focuses the purchase behavior of the said ages 18-24 years old and

how advertising affects their buying decisions.

2.3.1 SPECIFIC OBJECTIVES

The specific objectives of this study are to:

i. Determine the purchasing behavior of ages 18-24 towards online

marketing.

ii. Determine the relationship between online marketing and consumer

buying behaviour.

iii. Stablish a useful buying behavior data under the age 18-24 years old.
3.1 HYPOTHESIS

The study guesses that the majority of the samples are aware of online

marketing and was able to participate to an ecommerce website to shop and

purchase needed or wanted items. Since the targeted ages are much more

accustomed with the latest technologies available such as cellphones that could

easily access the internet, they will have the highest percentage to browse an

ecommerce website. The websites such as shoppee or lazada for instance,

these websites are always seen on social media platforms like Facebook,

Instagram and Tweeter.

Ecommerce companies will spend millions of peso to advertise their names on

social media platforms since these websites are congested with active users. By

this, it is more likely that these active social media users will have an

engagement to these companies since it provides accessibility and convenience.

In relation to buying behavior, the study may showcase the undoubted relation of

buying behavior through online marketing since the targeted age spends 35% of

their day in the internet. The study will focus on how online marketing imprints a

behavior that steers decisions towards online purchasing

4.1 CONCEPTUAL FRAMEWORK

Independent Dependent

Consumer Behaviour

Customer Satisfaction

Service Offering
Online Advertising
Expertise

Demography

Porting time Cost

4.1.1 Online advertisement

Also known as online marketing, Internet, Internet advertising, digital advertising

or web advertising, is a form of marketing and advertising which uses the internet

to deliver promotional marketing messages to consumers.

4.1.2 Consumer Behaviour

Is the study of individuals groups or organizations and all the activities associated

with the purchase, use and disposal of goods and services, including the

consumer’s emotional, mental and behavioural responses that precede or follow

these activities.

4.1.3 Customer Satisfaction

Is defined as “the number of customers or percentage of total customers, whose

experience with a firm, its products or its services (ratings) exceeds specified

satisfaction goals

4.1.4 Service Offering

Is on organized collection of specific people, process, information, technology

and other resources which together function to realize a service offering ability to

satisfy the need for

4.1.5 Expertise

It is defined as the ability to perform product- related tasks successfully. Product-

related experiences are defined at the most inclusive level

4.1.6 Demography

The study of statistics such as births, deaths, income or the incidence of disease

which illustrate the changing structure of human population

4.1.7 Porting time Cost

This process often referred to as phone number porting can be done between

you may request service from a different company at any time.

5.1 THEORITICAL FRAMEWORK

The innovation of technology played an important role in business

sector. Online marketing become pervasive in consumer buying

behaviour. The impact may be a two way to the consumer, positive

insight and the contrast of it when persuading.

The EKB Model “Engel, Kollet, Blackwell Model” expands on the Theory of

Reasoned Action, and lays out a five-step process that consumers use when

making a purchase. The first step, input, is where consumers absorb most of the

marketing materials they see on television, newspapers or online. Once the

consumer collects the data, he or she moves into information processing, where

the consumer compares the input to past experiences and expectations.

Consumers move to the decision-making stage after a period of thought,

choosing to make a purchase based on rational insight. Consumers are affected

in the decision-making phase by process variables and external influences,

including how the consumer envisions his or herself after making the purchase.
6.1 SIGNIFICANT OF THE STUDY
The findings of this study will help distinguish the adverse effect of online

marketing towards youth with ages 18-24 considering that internet plays an

important role in society nowadays. The innovation of technology with

corresponding trends justifies the need for more effective online marketing

strategies.

This study justifies the changes of the way people specifically Gen-z behave, the

way they decide on what to purchase with the influence of the online world. This

will help retailers change or innovate their strategies in order to catch the

attention of the viewers and imprint a vivid impression of such that would lead to

a decision of purchasing, buying, availing certain product or service.

7.1 OPERATIONAL DEFINITION OF TERMS

Terms Operational definition

Customer is the ponder of people, bunches, or organizations and all

Behaviour the exercises related with

the buy, utilize and transfer of products and administrations, count

ing the consumer's passionate, mental

and behavioural reactions that go before or take

after these exercises.

It includes:

How customers think and

feel approximately diverse choices (brands, items, administrations

, and retailers)

How buyers reason and select between diverse alternatives The

behaviour of buyers whereas inquiring about and shopping

How shopper behaviour is impacted by their environment (peers,

culture, media)

How showcasing campaigns can be adjusted and moved

forward to more successfully impact the consumer

Online Online showcasing is the hone of leveraging web-based channels

Marketing to spread a message almost a company’s brand, items,

or administrations to its potential clients.

The strategies and strategies utilized for

online promoting incorporate e-mail, social

media, show promoting, look motor optimization, Google AdWords

and more. The objective of showcasing is to reach

potential clients through the channels where they spend their

time perusing, looking, shopping, and socializing online.

8.1 REVIEW OF RELATED LITERATURE (RRL)
9. REFERENCES

PARAGRAPH
#7-8
https://www.internetworldstats.com/emarketing.htm
--------
#3-6
https://digitalmarketinginstitute.com/blog/the-evolution-of-digital-marketing-30-
years-in-the-past-and-future
-------
Ngowi, A. 2015

#9-11
------------------------
https://businessmirror.com.ph/2018/11/19/centennials-consumers-of-the-future-
and-their-online-buying-behavior/
12-13
-------------------------
https://www.philstar.com/lifestyle/business-life/2019/03/25/1904148/filipino-
centennials-new-breed-shoppers
14
---------------------------------
http://www.interaksyon.com/trends-spotlights/2018/11/07/137579/why-online-
shopping-is-booming-in-the-philippines/
15-17
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RESEARCH PROBLEM

http://worldpopulationreview.com/countries/philippines-population/
3
http://worldpopulationreview.com/countries/philippines-population/
----------------------
https://en.wikipedia.org/wiki/Demographics_of_the_Philippines#Population_histor
y
4

https://onlinemasters.ohio.edu/blog/four-consumer-behavior-theories-every-

marketer-should-know/