FACTORS INFLUENCING THE PURCHASING BEHAVIOUR OF THE

PUPSHS STUDENTS TOWARDS ONLINE SHOPPING

A Study
Presented to Mr. Tirsolito Salvador
Polytechnic University of the Philippines
Sta. Mesa, Manila

In Partial Fulfillment of the Requirements in the Subject:

Inquiries, Investigation, and Immersion

By:
GROUP 3

BRIX Q. CERVANTES
NHORMEL V. BAGWANG
MARIFE C. DIZON
KRISHA CLAUDINE S. PEREZ
JASSYLE MAE D. ZAMORA
 CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and studies after the thorough search done by
the researchers. This will also present the related legal bases, theoretical and conceptual
framework for better comprehension to the study.

Local Literature
According to Zialcita (2019), the E-commerce industry is making a steady growth in the
market. There are 67 million Filipinos who are active in online shopping last January 2018
according to the Internet World stats. The Philippines ranked number one in the world in terms
of social media use and amount of time spent online and businesses believe that, that's the reason
why E-commerce is very ideal for our country. The CEO and co-founder of the online shoo,
ZALORA said that their company has seen accelerated growth in the last 2 to 3 years.
According to Campos, about 2% of the retail market is done through online. Because of
consistent growth of E-commerce, the government saw a big potential in it. They also encourage
entrepreneurs to create their own business in the online world as they enter 2019.
As reported by Philippine Daily Inquirer’s Pedroso (July 2015), MasterCard’s study
found that Filipinos turn to the Internet to purchase the following: Airline tickets (38.4 percent),
home appliances and electronic products (35.1 percent), clothing and accessories (31 percent),
hotels (29.9 percent) and computer software (29.4 percent).
Meanwhile, sites of apps stores (50.1 percent), music downloads (42.6 percent) and home
appliances/electronic products (38.2 percent) draw the most web traffic, the study also showed.
Why do Filipinos go online to shop? Ease and convenience are the most cited reasons. “Most of
the Filipino respondents are satisfied with online shopping, describing it as easy (73.3 percent),
convenient (71.9 percent), or fun (64.4 percent), and expressing greater likelihood to purchase in
the next six months (79.2 percent). The study also found more Filipinos using their mobile
phones to purchase items— from 21.4 percent in 2012 to 34 percent in 2014, with 94.2 percent
of participants able to access the Internet via smart phones, MasterCard noted, adding that those
who purchased via mobile phones did so because they were able to do it “on the go.”
According to Osorio (2019), Filipinos actively participated 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.
Centennials — the generation born from the mid-1990s, also known as Generation Z,
GenEdge and Homelanders — are mobile natives. They are an essential and influential segment
whose buying expeditions will be heavily digital. To better understand their buying habits, DAN
Philippines, in collaboration with eConsultancy, implemented a shopping-habits study focusing
on this critical group. 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. In this report, we will show brands eight critical insights to navigate
this segment, and summarize with imperatives to bolster ecommerce strategies in 2019.
Regardless of the nature of their business, local entrepreneurs are encouraged to adopt e-
commerce strategies to take advantage of the growing online market. Robert Gantuangco,
director and co-founder of Digital Commerce Association of the Philippines (DCOM.ph) said
there is robust potential for e-commerce to grow in the Philippines, on the back of the country’s
strong 41 percent Internet penetration rate. With this development, he urged local entrepreneurs
to embrace e-commerce so they could grow their businesses and expand their target markets,
including those overseas. He noted that since the birth of the digital economy in 2000, seven
foreign-origin websites, namely, Amazon, Lazada, Metro Deal, Alibaba, Ali Express, Ebay and
Zalora, have become the most visited shopping destinations by Filipino Internet users, according
to Alexa.com. E-commerce also opens business opportunities in sales and after-sales support
service, warehouse and shipping, payment collection, import and exports.
According to Dr. Fermin G. Castillo, Jr., understanding Filipino consumer buying
behavior as they behave in the market place is very important nowadays specially for marketing
research. This behavior is evolving into worldwide standards in terms of product appeal and
acceptance. The Filipinos are known for their unique characteristics that can only be patent to
Filipino consumers as they search for products they need and want. Some of the practices,
however, can be seen among neighbor Asians as they have commonality in terms of buying
habits and attitudes. The existence of big malls and shopping centers in the Philippines is a good
manifestation that buying and selling of goods is very fluid. A lot of malls and shopping centers
across the metropolis continue to serve the general public regardless of its class in society.
Entrepreneurial mentality was also introduced in the Philippine market today which showcased
Filipino inventions and discoveries. With such inventions, there are a lot of choices in terms of
products and services which will create healthy competition among same product lines. The
buying decisions of typical Filipino buyers are also dependent on their budget to some extent.
The recent global financial crisis has somehow influenced them to think of buying more durable
products which they hope can last for a lifetime. Finally, the products and services will be test
based on the Filipino consumer buying habits as they capture their buying power in general.

Local Studies
According to Korina Pinca-Legaspi (2015) in her research entitled “Online Shopping
Behavior of Students in the College of Business Administration,” online shopping is becoming a
trend for busy people, especially the young people and those with the experience of shopping and
buying online. The researcher believed that the students at the College of Business
Administration, like other colleges providing business education, are more educated about
purchasing or shopping online. The researcher was therefore motivated to carry out this study in
order to find out whether this statement is particularly true for CBA students. This research study
was done to determine whether online shopping was common to students of College of Business
Administration, their perceptions and motives for buying online and to find out their
entrepreneurial mindset.
The finding of this research showed that females tend to shop online compared to males.
Perhaps because females are more likely to shop in physical stores and as well as online. 16 to
24-year old individuals may be more familiar with the internet and social media, but because of
financial constraints and risks involved; they are not the most ideal market for online retailers.
Therefore, a wide range of goods or items must be marketed for different brands. Because of
financial insufficiency, the younger age group were hesitant to buy online and are cautious about
shopping online.
Tubio, Altaque, Lucero, Tagam, Toling Veri and Mahinay (2016) from Mindanao
University of Science and Technology conducted a study entitled ‘Consumer Perception and
Purchase Behavior on Online Shopping among Students on Mindanao University of Science and
Technology’ to investigate the factors that affect the consumer’s perception and their purchase
behavior in online shopping. Based on the study, convenience, benefits, leisure and security are
the four elements or factors that influence the consumer’s buying behavior towards online
shopping. However, purchase behavior is affected by the consumer’s perception. The way a
consumer responds to certain online products is determined through his purchase behavior like
his product choice and even the brand choice. The worth of a product in the minds of the
consumer is very much capable in predicting the purchase intentions of the products (Chen
& Dubinsky, 2003). The researchers made hypothesis to determine whether there’s a
significant relationship between consumer perception and purchase behavior on online shopping.
The results of the research have shown that there is a significant relationship between perception
and behavior, which means that if their perception is high then their behavior is high as well. The
researchers have concluded that individuals take wise and logical decisions. These decisions
offer them the greatest benefit or satisfaction - given the available choices - and are also in their
utmost self- interest. Furthermore, the study emphasizes that the increase of consumer perception
on online shopping can lead to an increase of purchase behavior.
In 2017, Digs, Domingo and Consignado conducted a study entitled, “Perceived Risks
and Online Purchase Intention of Young Professionals in the Fifth District of Cavite.” They
aimed to identify participants’ intention to buy online as being influenced by the demographic
profile and perceived risks. Despite the significant growth of online shopping, negative aspects
are also becoming more frequently associated with this alternative shopping method. Consumers
perceive a higher level of risk when purchasing on the internet compared with traditional retail
formats. Young professionals considered the perception that the product purchased may not
work as originally expected; potential time-loss; financial loss and the possibility that the
delivery of the products will be damaged and sent to the wrong place, as high risk. Given the
awareness of potential risks, young professionals were interested in purchasing online but online
shopping would not be frequent.
This study determines the factors that may affect the intention of young professionals to
buy online. It includes the demographic profile such as sex, civil status, job and monthly net
income, and perceived risks. Although there were several potential risks associated with online
shopping, only those five risks enumerated from Masoud’s study (2013) were evaluated in this
research study. These are commodity, time, financial, distribution and risk to society. Results
show that online purchase intention is independent of the participants’ age, marital status,
occupation and monthly income. However, the desire to shop online is influenced by the
perceived product, time, financial, delivery and social risks. Furthermore, the results of the study
clearly show that, given the potential threats, participants still intend to shop online, though less
frequently, which is something online marketers can capitalize.
 According to Maala, Novenario and Muya (2018), people use the internet to shop, to
obtain information, socialize, entertain, connect, and/or even to engage with businesses online.
Information and Communication Technology made the lives of the people and made the
communication process better because of the internet. As the internet continue to grow, online
shopping was born. E-commerce or Online Shopping is one of the hottest trends nowadays.
Through the help of E-commerce purchasing and transacting doesnt need to be done physically
and it can completely done using the internet. E-commerce has made it easier for people to buy
their common necessities and wants with a lot option they can choose from. E-commerce could
be our way of being one of the top, through E-commerce, the Philippines can achieve to be one
of the top e-commerce countries in the ASEAN.
According to VISA (2015), a recent study from Visa eCommerce Consumer Monitor
2014 showed that 9 out of 10 Filipino consumers go online shopping for at least once a month.
The survey also showed that 72% of the Filipino consumers shopped online in the last 12
months. The 58% of respondents said that they go online shopping because it is convenient, 47%
said because of the price and 46% said that the go online shopping because of the offered deals.
According to Stuart Tomlinson, Visa Country Manager for the Philippines and Guam, as E-
commerce industry has become more popular to the Filipino consumers it is expected to have a
steady increase in online shopping and growth in the country. Based on the study made by the
Visa most of the online transactions are bill payments, purchasing fashion-related items and
movie tickets. Study showed that 63% of the Filipinos compared prices of the items they want
rather than going to the physical stores. Filipino consumers also said that they choose online
shops which store payment details for a faster checkouts. Most Filipino still prefer desktop
purchases but there's also a growing number of consumers who purchase using their phones.
They prefer purchasing in local stores for a faster delivery and less risk of lost orders. Filipino
consumers love goods and services that make their lives easier or convenient and that is what
online shopping provides.

Foreign Literature
According to Weibke Reile, purchasing behavior is also affected by demographics,
channel knowledge, and shopping orientation. However, these are not just factors that are
observable. There are also factors which can lend to having higher transaction rates and having a
glimpse into shopping behaviors. Purchasing behaviour of the consumer can be influence by
their opinion and interest that qill be affected by their demographics such as age,gender, culture
and so on.
According to Brizfeel, about one-third of consumers said the top reason to shop online is
the ability to shop 24/7, followed by lower price, convenient, and save time. People nowadays
choosw to shop online because it is availble anytime. You can shop whenever you wabt. Other
factors that affect the decision of buyer to buy online are the flexibility of price and conveniency.
According to Gary Drenik, when shopping online, free shipping and low prices are
actually less important for millennials than they are for older age groups. Instead, millennials are
more likely than their older peers to prioritize convenience. This means that, millenials purchase
online because this makes their lives easier.
 Penelope Markellou, Maria Rigou and Spiros Sirmakessis in their book, The online
consumer is empowered with new, exciting capabilities: he can search globally for
products/services, compare available options, find additional information, read the opinion of
other people who have bought the product/service, or proceed with the transaction. With this,
consumers can easily pick a realiable and durable products without going outside.
According to Shruti Thakur and Priya Chetty, flexibility in price is one of the most
important factors affecting online consumer behaviour. Price is one factor that influence the
online buyer. Online shopping is popular because of its price transparency and low priced items.
In addition, most of the consumers are attracted to freebies, sales and free shipping items because
it is a good deal purchase to them.

Foreign Studies
The World Wide Web has propelled in no small extent of changes in the attitude and
behavior of people all over the world. Due to this blessing, online shopping has emerged which
influenced the lives of ordinary citizens. Online shopping has also been started in Bangladesh,
but consumers are not much habituated yet to go online shopping frequently. The study proposed
by Rahman, et al. (2018) is undertaken to understand the behavior of online shoppers through a
self-constructed questionnaire from Dhaka city. The survey reveals that consumers do online
shopping because it saves time, offers home delivery, provides ease in shopping and offers more
variety of products for apparels, accessories, and ticketing than that of brick and mortar stores.
They mostly rely on price and their experience as the basis of the quality judgment of items in
online shopping and for payment system they prefer cash on delivery option. Most of the
shoppers get the information primarily from Facebook advertisements which is pursued by
friends and family by following their “word of mouth” communication. However, privacy and
inability to touch and feel are the most disliking factors for online shoppers.
In a study conducted by Lim, Y. G. Et al. (2016) entitled “Factors Influencing Online
Shopping Behavior: The Mediating Role of Purchase Intention”, the researchers want to
determine the relationship between subjective norm, perceived usefulness and online shopping
behavior while mediated by purchase intention. It 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. Findings also
revealed that purchase intention significant positively influence online shopping behavior.
The study proposed by Kibet (2016) has one main objective which was to assess the
behaviours of consumers towards online shopping in Nairobi County, Kenya. The specific
objectives included selecting an appropriate framework from previous research studies, collect
data and use it to assess the adopted framework. The final specific objective was to make
necessary recommendations to the framework based on the results of study. The theoretical
framework that informed the research was the Decomposed Theory of Planned Behaviour
(DTPB) which was operationalized through a conceptual framework. It was hypothesized and
statistically confirmed that perceived ease of use, perceived usefulness, compatibility and trust
between shopping online and shoppers’ needs, positively affect attitude toward purchasing
online. It was hypothesized and empirically supported that external influence positively impacts
a shopper subjective norm towards online purchasing while a positive relationship between
interpersonal influence and subjective norm was not supported.
Bauboniene and Guleviciute (2015) on their research entitled “E-Commerce Factors
Influencing Consumers’ Online Shopping Decision” look at the factors driving online shopping
and develop an understanding of the factors influencing the online shopping by the consumers.
That was done by exploring the factors that encourage consumers to shop online through analysis
of such advantages like security, fast delivery, comparable price, convenience, cheaper prices
and a wider choice. At the same time, the research reveals the factors that are discouraging for
consumers and the benefits received by buyers making purchases online. Specifically, the
research explores how online shopping can be affected by such factors as age, gender or
occupation.
Islam (2018) aims to determine the factors that play significant roles in creating purchase
intention towards the online clothing products in Bangladesh on his research entitled “Factors
Affecting Consumer Purchase Behavior Towards Online Clothing Products in Bangladesh”.
Factor analysis and regression were used to test the model. The regression model suggested that
customer purchase intention was induced most by the online marketing activities of the online
retailers, followed by pricing strategy implemented and sense of security provided (in that order).
To understand customer purchase intentions better, it may be important to look at additional
factors or seek better measures of the constructs. The study suggests that online retailers should
heavily focus on online promotions and pricing.

Synthesis of Reviewed Literature and Studies

Through the local and foreign sources of documents as bases for sound outcomes, the
study was established.
The E-commerce industry was really having its steady growth in the market where more
people were being engaged in this online shopping every year. Online shopping becomes a trend
for people especially for those busy and young people as supported by Korina Pinca-Legaspi
(2015).
Consumers tend to shop online because of ease and it is more convenient and can save
time. They can choose their desired products with quality easier because they just have to use
phone, Internet, websites to search for what they want. Unlike going to physical stores,
customers will spend amount of time to go to the place where the store was established and also
take time to choose what they will buy in many options that they’re given.
Aside from those reasons why people tend to shop online was the consumer’s behaviour
towards online shopping. There are lots of factors that influence their behaviour like their
opinions, the brand, their perceived benefits, perceived usefulness, trust, security, conveniency,
price of product, the delivery, and even their impulse in buying something online. These factors
can be positive significantly relevant or in a negative way.
The above studies and literature mainly aim to determine the relationship between the
factors that influence buying behaviour and online shopping coming up with similar results that
different factors affect how a customer explores, buys, or shops online.
The related literature and studies, both local and foreign, have relevance to the present
research because they provide enough insights and they all focus the same purpose and that is, to
know the factors influencing the purchasing behaviour of consumers towards online shopping.
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