CHAPTER ITHE PROBLEM AND ITS BACKGROUND Introduction Shopping nowadays has really changed.
Consumers has a lot of choices in terms of choosing what way they will shop andtechnology has the big influence and impact to the people all around the world,specially, the customers. This trend took centre stage in the past decade withmany retail giants integrating the two approaches to achieve maximum benefit.This research aims to understand the comparison between online shopping andphysical store shopping. Thesetwo way of shopping has really used worldwide. In terms of physical shopping,people will personally go to the store and shop around, look at those productsand then decide what he/she will buy and then goes out after the transaction.It’s a bit of time consuming but seeing things personally makes you reallydecide and lead you to the right one you’ve been looking for.
Before,men, especially women regularly go to malls to buy goods for themselves. Awoman would literally visit every boutique to satisfy her needs and wants. It is finally found that in terms, avoiding a shoppingtrip physical store has far more benefits than bearing waiting for the deliveryof online purchased books. 1 While on the other hands, onlineshopping is more time saving and less hassle. Whenever you have to buy things,you will just get your phone, go to a particular online shop website and thenchoose what product you are searching for. You will just use your hand toscroll up and down your phone and no need to get tired going to that particularstore. As time passes by,technology is getting broader and stronger.
Many people spend hours checkingtheir personal accounts, updating themselves regarding the recent news, latesttrend, and on-going promos and discounts. Technology has really make thingseasier. Yes, it is. But sometimes, the negative thoughts you can have on onlineshopping is that, you will ask yourself. “Is this credible enough?” or you maythink if the shop online is trustworthy because some of the things you will seeonline is just a scam. For instance, online consumers don’thave an opportunity to examine the products prior the payment and are regardedas a specific factor affecting the buying decision. Sometimes, what you see onthe internet is not what you get personally.
There’s a lot of differencesappeared on the posted photo than the actual product. 22 Onthe other hand, going to a particular store for physical shopping is a bithassle and effort consuming. It’s a bit wearing and time consuming. Roamingaround the mall and choosing what shop you will enter is so tiring.
When youenter a particular shop a saleslady will follow you like a kid and say somethings you don’t need to hear that’s why buying physically has it’sdisadvantages.Having a business is not really easy aswe think. Building it up is consists of a lot of hard work and variety ofmarketing strategies in able for it to be known and popular. Customers are themeans of businesses. Without them, business will not work and run. There’s a lot of growing business herein our country.
Too many kinds of business here in the industry that buyers arethinking very well on where they will franchise or get what they need also, thethings they wanted. They are meticulousin choosing which product or which kind of shop will satisfy their needs, wantsand expectations. Observing these two ways of shopping behaviour, it has its own advantagesand disadvantages. The negative and positive effect on people especiallyconsumers. Throughout this point, the two are helpful and used way around theworld, especially here in our country, Philippines.
Both are effective but thepeople are asked if what is their most preferred. Shopping online with theirrisking credibility or Physical shopping with a lot of time consuming andsometimes, can be hassle. 3 32 ConceptualFramework This section shows the input, processand output of this exploration. Will it aim to show the relationship andrelevance of this research? We got ideas from past studies that can help consumersto easily know the importance of online and/or physical shopping.
42 42 Statementof the Problem Thisresearch is made to answer the following questions. To do comparative studybetween online shopping and physical shopping and to study the consumerbehavior towards each of these modes. 1. Where does the consumer preferred to buy?2. Howoften consumer shops at online or physical store?3. Whydo they prefer to shop at online or in physical shopping?4. Whatare the advantages and disadvantages of online and/or physical shopping?5. When do online and physical shoppingeffective to the consumers? Hypotheses Consumer nowadaysprefer shopping online because it gives them convenience and less hassle.
Scopeand Limitations of the Study 5 Thisresearch is about “What is most preferred to shopping: Physical shopping orOnline Shopping” aims to determine where the most preferred to shopping as wellas the accessibility of the shop. Our respondents will limit only to aninvestigation covering the effectiveness in marketing strategies applied inOnline and Physical Shops and on how the strategies work with their competitionon the industry. This study is primary focused to where the respondentsmost preferred to shop, in Online shop or in Physical shop; this research aimsto know what and why they really want to shop in online or in physical.Significanceof the Study This study is conducted to find an answerto the said topic and to determine the positive and negative effects ofphysical shopping and online shopping. Also, we believe that this will bebeneficial to: Beneficial to the students particularly taking Accountancy Business andManagement (ABM) related courses. By reading this research, they will be morebusiness-minded and at the same time, enhances the decision making skillsthroughout their student life. To the consumers this will increase their knowledge inthe world of trade. They will know what and when physical shopping and onlineshopping benefits them.
6 To the business owners because this research will boost their marketing strategy tomake new customers that will patronize them and soon will become loyalcustomers. Likewise, this will help them to evaluate if they are beingeffective or not.To the future business owners we would like help them to prepare onstarting up a business. This research will make them evaluate their plan ofestablishing a business. To the future researchers we can use this kind of research as aguide for conceptualizing your future research papers. You can ask therespondents “How often do you buy your needs? ” How about your wants? “.
Definitionof TermsThis research made use of someunfamiliar words in the introduction of the topic. Here are the list of termthat the researchers have used to further understand the flow and the idea ofthe chapter.Boutique is asmall store that sells stylish clothing, jewellery, or other usually luxurygoods.Businessisan organizational entity and legal entity made up of an association of people,be they natural, legal, or a mixture of both who share a common purpose andunite in order to focus their various talents and organize their collectivelyavailable skills or resources to achieve specific declared goals and areinvolved in the provision of goods and services to consumers.
7 Centre Stage meansat or toward the middle of a stage.Consumersarethe one who pays something to consume goods and services produced. As such,consumers play a vital role in the economic system of a nation. Credible means it is able to bebelieved or convincing. Discountisa deduction from the full amount of a price or debt, as in return for promptpayment or to a special group of customers.Industryisthe production of goods or related services within an economy.Meticulousmeanstaking or showing extreme care about details; precise; thorough.OnlineShopping means shopping done via the Internet; it is also callede-shopping.
PhysicalShopping means shopping done personally.Promoissomething that is used to advertise or promote something.Scamisadishonest scheme; a fraud.Shopping is the action or activityof purchasing goods from stores.Store is a retail establishmentselling items to the public.Technology is the machinery andequipment developed from the application of scientific knowledge.Trendisa topic that is the subject of many posts on a social media website within a shortperiod of time.
Trustworthyisbeing able to be relied on as honest or truthful. 8 CHAPTER II REVIEW OF RELATED LITERATUREOnline Selling as the New Shopping Trend Dueto the advance of technologies in the society, online shopping became the mostdisseminated preferred style of shopping. Although both online and conventionalshopping are common, online mode is still the widely sryle used by thedifferent consumers (Firas & Wabot, 2016). Chowdhury & Kalyan furtherexplained that online shopping is also the preferred style of shopping inBangladesh and it still because of the advancement of technologies where theuse of social media like facebook,twitter and tge reliable payment platformbecame the huge option of the consumers. Some of the people used internet fortheir work on a daily basis but using internet for shopping is here and there,they also like online shopping because it is not a waste of time, it issomewhat a relaxing shopping, the product already have the full details andsometimes there is a different in pricing ( Chacko and Verna, 2015).
9 Accordingto Osman and Salahudi (2016), perceived usefulness and efficacy make theconsumers to perform online shopping and tge perceived usefulness usuallydepends on the website’s efficiency of technological characteristics. WhileAsnani and Kumari (2016) said that the internet created a big impact especiallyin online shopping. Consumers purchase services and goods on the internet withreasonable price. Some of the consumers don’t care about it but others value itas a part of their daily lives.
The most difficult of all products is eveneasier by just easily typing the product that you are looking for. Logisticcompanies are also joining the Bandwagon; so to speak, it helps in main surethat their products would be available to any and all destinations in the worldso there’s nothing to worry about it. 10 Inthe study of Meshram (2016), the generation Y prefers online shopping ratherthan conventional shopping methods when it comes to convenience. It was alsonoticed those on times when there is a rise in purchasing their needs, thecurrent generation shops at any time. The study showed no specific pattern forshopping with respect to fashion clothing & accessories. Malls are alsobeing visited by Gen Y for prior spending their free time. Positive impact isbeing established on the consumers when they do online shopping thus, thisresulted to a more frequent practice of shopping through online medium. Theconsumers’ preference to practice online shopping has resulted to a decrease inthe footfalls of the conventional shopping.
The study proved that impulsive andcompulsive buyers were the ones who rendered low confidence in their purchasingcapabilities. Consumers with lower self-efficacy were proved to be more proneto stress anxiety, discontentment and inferiority complex which lead to buyingitems that are neither required nor affordable. The failure to manage theirpurchasing behaviours makes them become indulging impulsive and/or compulsivebuyers (Attiq and Moon, 2015). Websitecharacteristics most significantly influence the emotion of consumers of the “high-frequencyonline shopping group.” This means that people from this certain group willdevelop a positive emotion toward online shopping due to the influence of thesewebsite characteristics (Tsai and Wu, 2017). Crocco, Eboli andGabriella (2013) said that high-priced products are tend to be purchased byonline buyers because of its capability to be easily chosen on the web and theless need to be handled or to have a close look. In line with the levels ofprice, people purchase online expensive products because these items generallybe acquired cheaper than its original price. On the other hand, conventionalconsumers tend to purchase larger quantities of clothing product than onlineconsumers do because these products need to be handled or to have a close look.
Based on the survey conducted by Javed, Nazir, Sajid and Tayyab in 2015, young generation such asstudents and professionals are more prone to online shopping. Usually, buyinggoods from its original source and online shopping are preferred by students.Assorted factors affect the consumers when they purchase online.
These factorshave been identified as the following: price, confidence, security,convenience, time, after sale service and discounted deals. The price factorexists due to prices are often lower in online shopping than in physicalpurchases in the market. Considering convenience, saving time and money, onlinebuying can be of great benefit to the consumer.
However, one of the primeproblems in online shopping is that people get anxious when the computerdemands the complete details of the customers for the reason that theirpersonal details may get disclosed as well as their money and account 11 detailsmay get damaged. AdvantagesWhen Shopping PhysicallyIn the study of Pereira(2015), the preferred style of the consumers is the physical shopping wherethey can be able to to feel and touch the product and also as if talking aboutto trust. He also added that online shopping become popular only less than ayear. Moos and Vliet(2017) inphysical shopping it talks about how the producers will give the consumers ashopping experience but in the end it is still depends on the consumer’sbehavior because retailer somehow used both online and offline to know whattyle they can serve better to their clients.The expenditure of theconsumed time to collegt a name value of a product are effective in rising upthe prices. Also, a completion of a set increases social value of a product andembolden the collectors to buy (Allahdini, Chitsaz and Saeedi, 2017). Based onthe argumentation of Friedrich, Overhage and Schlauderer in 2016 study,communication media differ in their level of social presence which is essentialin determining the way individuals interact. For instance, face-to-facecommunication has the highest social presence.
Meanwhile, a business lettershowed low social presence because its text-based nature lacks the ability toconvey social cues such as facial expressions, gestures, and sounds 12 Buying dilemmas has no relevance tosocioeconomic indicators, since it is possible to show that people from lowerclasses are affected. 75% of the compulsive buyers lived in the Southeast ofthe country, which is the richest region with around 56.2% of Brazil’s GrossDomestic Product GDP) and has the most diverse economy (Cardoso and Leite,2016). In MihaelaIoni?? (2017), E-commerce is redesigning consumer behavior andbusiness framework and marketing by intensifying shopping convenience,selection and affordability, as well as increasing the media exposure. Still,the need for personal experience remains the key basis for conventionalshopping. It is necessary to provide capital to physical stores but it is alsoimportant to put forth funding to the digital content so as to satisfy the needof complete information, availability and convenience of today’s shoppers . 13 Thepresent findings of Fennis, Kerkhof and Noort (2017) indicate that consumers’risk perception is more than just a motive that underlies decisions to shop inan online or a conventional store.
Both self-report and implicit measures showthat by its risky nature, online shopping evokes prevention-focusedself-regulation. Interestingly, experienced online shoppers do not stopperceiving the Internet as a risky shopping channel and are as preventionfocused as the inexperienced shoppers. Since prevention-focused (vs.promotion–focused) self-regulation is known to affect consumer informationprocessing and choice,6 the findings have implications for theories aboutonline consumer behaviour. For example, the kind of information that onlineconsumers search for might be affected by their prevention focus.
Whereas thenatural tendency of a marketer is to stress positive product features, in anonline store it may be wise to stress the absence of negative features, sincethis fits the predominant regulatory focus of the online consume. And throughthe study of Alam, Nassa andUpadhye (2016), it has been revealedthat for all types of UAE consumers, the factors such as price, quality andconvenience were important in predicting consumers buying behavior. Also, UAEretail sector is classified as one of the most flourishing retail sectors inthe world. The UAE consumers’ are likely to collect product informationincluding price and quality from the retail store.
The UAE consumers might haveconcerns related to information accuracy (e.g. inaccurate product price,specification), information security (e.g. unsecured payment, viruses/spam) andtrust (e.
g. technology problem, unwanted products, slow shipping) thatconstitute risk to use online buying. 14 CHAPTER IIIRESEARCH METHODOLOGYIn this chapter, the research methods,frame sample, description of respondents. Research instruments, data gatheringprocedures and statistical data are presented to collaborate the ideas of thisstudy. ResearchMethod and DesignToobtain the needed information, numerical values are a necessity so the researchmethod is Causal-Comparative by the use of survey design.
It involves lookingfor statistical data that is relevant to the study. Survey questionnaires will be the primarysource of getting facts. The researchers will first solidify the questions thenit will be given to the selected respondents. After collecting thequestionnaires, researchers will now assess the numbers to come up to anoutcome.
The advantage of this method is, it gives us direct to the pointanswers and realistic results. PopulationFrame and Samples 15 The population frame is a group ofindividual from where the sample of the study is selected. In order to drawaccurate conclusions about the population, a sample needs to be represented ofthe population. In general, the minimum number of subjects believed to beacceptable for a study depends upon the type of research involved. Therespondents of this study came from the area of Mandaluyong City. Slovin’sformula is used to determine the number of respondents with a margin of errorof 5%.
Out of thousands of people in this area, 286 respondents are chosen torepresent what the intended whole is like.Descriptionsof the Respondents Thisstudy involves (100) one hundred random students in Rizal TechnologicalUniversity because we don’t know who in RTU loves to shopping, (6) six SeniorHigh School teachers in Rizal Technological University because it has onlyseven SHS Teachers in RTU, (90) ninety workers near in RTU who has a own shop and(45) forty five random boys and (45) forty five random girls who are involve instudying due to limited number of respondents. ResearchInstruments In thisresearch study, the instruments that we use are survey questionnaires to gatherand ask the respondents for their perspectives about our topic. The number ofitems that were asked consists of ten (10) related questions. The queries willbe used as the guide for this study to be countered. 16 DataGathering Procedures This study conducts asurvey to the respondents by obtaining their permission. The selected participantsidentify data options and adheres data collection.