Chapter 1

The Problem

Introduction

The development of technologies has changed the way people behave. With the change

of people's behavior, business practices have also changed to adapt to the emerging trend. One

example is the arrival of the online shopping era. Internet has become an important part of our

life. It allows us to do many things just sitting in front of our desks and simply click our way

through life. It brings so much fun and convenience to our life and thus it has become really hard

to live without computers or the Internet.

Nowadays, people can engage in shopping almost at anytime they want and from

anywhere internet is available. Online shopping is one of the commonly used mediums for

convenient shopping. It is in fact, a popular means of shopping among the internet community.

(Bourlakis et al., 2008). No matter clothes, electronics, or pets, online shopping trends is

becoming more popular with each passing day. Hundreds of websites and applications are being

created and deployed every year to cater this rising demand of comfortable shopping trends.

Online shopping is becoming a suitable way to make all your purchases, whether you’re

at home, in office, or in a different country. This is especially true for developed countries, where

every store has its website you can buy from. You can easily convey about the promotions like

cash on delivery and special discounts on online purchases. This trend to shop online with the

comfort of your own couch has recently been taken up to the assign region as well.

With increasing number of online stores, people are facing more choices of products or

retailers at the same time, and it makes decision making much more effective and productive.

They can gather and compare lots of information in a short amount of time without being
bothered by sales persons as compared to the physical shops. People can take as much time as

possible to reach their final decisions of purchase. This makes traditional physical shops less

attractive for people to visit. Online business arises because of the increasing use of the Internet

in the community, thus the existence of the Internet began to shift from conventional to online

purchase (Mujiyana & Elissa, 2013: 143; Worndl, et al, 2008: 33; Miller & Lammas, 2010: 5).

Online shopping is purchases made via the Internet as a marketing medium with the use of the

site (website) as a catalog. One of the advantages of online purchases that shoppers can select

products in the catalog, buyers can also request a specific design, to be able to make payments

online. However, online spending has a weakness where consumers can make direct physical

contact with the seller and the purchased goods cannot be tried or touched (Verina etal, 2014:

10; Enz, 2003: 4; O’Connor & Frew,2004: 179).

According to Statista, Mobile shopping has been on the rise, with customers increasingly

using their mobile devices for various online shopping activities. According to a March 2016 study

regarding mobile shopping penetration worldwide, 46 percent of internet users in the Asia Pacific

region and 28 percent of those in North America had purchased products via a mobile device,

whether smartphone or tablet computer, as of the third quarter of 2017, desktop PCs still

accounted for the majority of global e-retail orders but smartphones were the number one device

in terms of retail website visits. During a 2017 survey, 11 percent of online shoppers stated that

they shopped online via smartphone on a weekly basis.

There is no question that for the past few years online shopping has grown more popular.

The phenomenon has enabled so many new entrepreneurs to establish their businesses at lower

cost, thanks to the virtual online retail stores and affordable marketing campaigns. Not only does

it benefit business men, but it has also helped customers to shop through simple scrolling and a

few clicks on their gadgets. As a matter of fact, customer’s satisfaction with the online products
and services is the one thing that boosts the popularity of this new way of shopping. People in

the Philippines are a part of those happy online shoppers. It is no wonder that there are at least

ten most visited e-commerce websites in the country such as, Galleon.ph, CDR king, eBay

Philippines, Globe Online Shop, Metrodel, Zalora, Cebu Pacific, Shopee Philippines, OLX, and lastly

the most popular e-commerce websites is the Lazada. Servicing as the one stop shopping solution

in the Philippines, Malaysia, Singapore, Indonesia, Vietnam, and Thailand, this site has been

known as one of the online e-commerce giants in Southeast Asia. It offers a wide range of

products, such as home appliances, gadgets, and fashion. The products come from different

brands and site give its customers several payment methods to choose from. With more than the

estimated average monthly traffic of seventy million internet users visiting the online market

place, its dominance in the Philippines is undeniable. Lazada is now dubbed as the fastest growing

online shopping website in the country. It offers a variety of products from home improvement,

gadgets, fashion and lifestyle items, to appliances.

What makes Lazada the leading company is that it offers cash on delivery payment option

as well as the use of credit cards. It has also partnered with hundreds of international and local

brands which makes the website a one-stop-shop for everything the customer needs.

Launched in 2012, Lazada is the number one online shop[ping selling destination in

Southeast Asia present in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. As

the pioneer of the e-commerce ecosystem in the Southeast Asia, Lazada has 155,000 sellers and

3,000 brands serving 560 million consumers in the region through its marketplace platform,

supported by a wide range of tailored marketing, data and service solutions. 300 million SKUs

available, Lazada offers the widest range of products in categories from consumer electronics to

household goods, toys, fashion, sports equipment, and groceries. Focused on delivering an

excellent customer experience, it offers multiple payment methods including cash on delivery,
comprehensive customer care and hassle-free returns. Through its own first and last mile delivery

arm supported by approximately 100 logistics partners. Lazada Group is majority owned by

Alibaba Group Holding Limited (NYSE:BABA).

As a 21st century student, the researchers are greatly inspired and motivated to administer

and promote the present research study to broaden our understanding to the customers that are

shopping in Lazada and other e-commerce platforms. To further establish this study, the

researchers decided to conduct this research at Carolina Naga City because it is observable that

the people in this barangay are fond of shopping online.

The researchers are Grade 12 Senior High School students of Carolina National High

School and they are interested to know the customer’s experiences in shopping in Lazada. This

present research study is conducted to determine if shopping in Lazada has been a positive or

negative experience to the customers.

The researchers aims to gather information from the customers involved. Information

which will then be viewed as feedbacks regarding the respondent’s experiences in shopping in

Lazada.

Statement of the problem

This research study was undertaken to determine the experiences of customers in shopping

in Lazada as an online business. Along convenience, trust, time on duration of delivery, product

variety and quality of products. Pertinent to this, the researchers would like to answer the

following specific problems.

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

a. Age
 b. Gender

c. Monthly income

d. Occupation

e. Educational attainment

2. What are the experiences of shopping in Lazada along :

a. Convenience

b. Trust

c. Time/duration of delivery

d. Product variety

e. Quality of products

3. What recommendation maybe proposed in order to improve the services of Lazada and

the impact of the services to the consumers?