CHAPTER A woman would literally visit every boutique to

CHAPTER I

THE PROBLEM AND ITS BACKGROUND

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Introduction

 

Shopping nowadays has really changed.
Consumers has a lot of choices in terms of choosing what way they will shop and
technology 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 with
many retail giants integrating the two approaches to achieve maximum benefit.
This research aims to understand the comparison between online shopping and
physical store shopping.

            These
two 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 products
and 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 really
decide 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. A
woman would literally visit every boutique to satisfy her needs and wants.  It is finally found that in terms, avoiding a shopping
trip physical store has far more benefits than bearing waiting for the delivery
of online purchased books.

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While on the other hands, online
shopping 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 then
choose what product you are searching for. You will just use your hand to
scroll up and down your phone and no need to get tired going to that particular
store.

As time passes by,
technology is getting broader and stronger. Many people spend hours checking
their personal accounts, updating themselves regarding the recent news, latest
trend, and on-going promos and discounts.

 

Technology has really make things
easier. Yes, it is. But sometimes, the negative thoughts you can have on online
shopping is that, you will ask yourself. “Is this credible enough?” or you may
think if the shop online is trustworthy because some of the things you will see
online is just a scam.

 

For instance, online consumers don’t
have an opportunity to examine the products prior the payment and are regarded
as a specific factor affecting the buying decision. Sometimes, what you see on
the internet is not what you get personally. There’s a lot of differences
appeared on the posted photo than the actual product.

 

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On
the other hand, going to a particular store for physical shopping is a bit
hassle and effort consuming. It’s a bit wearing and time consuming. Roaming
around the mall and choosing what shop you will enter is so tiring. When you
enter a particular shop a saleslady will follow you like a kid and say some
things you don’t need to hear that’s why buying physically has it’s
disadvantages.

Having a business is not really easy as
we think. Building it up is consists of a lot of hard work and variety of
marketing strategies in able for it to be known and popular. Customers are the
means of businesses. Without them, business will not work and run.

 

There’s a lot of growing business here
in our country. Too many kinds of business here in the industry that buyers are
thinking very well on where they will franchise or get what they need also, the
things they wanted.  They are meticulous
in choosing which product or which kind of shop will satisfy their needs, wants
and expectations.

 

Observing these two ways of shopping behaviour, it has its own advantages
and disadvantages. The negative and positive effect on people especially
consumers. Throughout this point, the two are helpful and used way around the
world, especially here in our country, Philippines. Both are effective but the
people are asked if what is their most preferred. Shopping online with their
risking credibility or Physical shopping with a lot of time consuming and
sometimes, can be hassle.

 

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Conceptual
Framework

            This section shows the input, process
and output of this exploration. Will it aim to show the relationship and
relevance of this research? We got ideas from past studies that can help consumers
to easily know the importance of online and/or physical shopping.

 

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Statement
of the Problem

        This
research is made to answer the following questions. To do comparative study
between online shopping and physical shopping and to study the consumer
behavior towards each of these modes.

       

 

1.   
Where does the consumer preferred to buy?

2.    How
often consumer shops at online or physical store?

3.    Why
do they prefer to shop at online or in physical shopping?

4.    What
are the advantages and disadvantages of online and/or physical shopping?

5.   
When do online and physical shopping
effective to the consumers?

 

Hypotheses

          Consumer nowadays
prefer shopping online because it gives them convenience and less hassle.

 

Scope
and Limitations of the Study

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This
research is about “What is most preferred to shopping: Physical shopping or
Online Shopping” aims to determine where the most preferred to shopping as well
as the accessibility of the shop. Our respondents will limit only to an
investigation covering the effectiveness in marketing strategies applied in
Online and Physical Shops and on how the strategies work with their competition
on the industry.

This study is primary focused to where the respondents
most preferred to shop, in Online shop or in Physical shop; this research aims
to know what and why they really want to shop in online or in physical.

Significance
of the Study

     This study is conducted to find an answer
to the said topic and to determine the positive and negative effects of
physical shopping and online shopping. Also, we believe that this will be
beneficial to: 

 

            Beneficial to the students particularly taking Accountancy Business and
Management (ABM) related courses. By reading this research, they will be more
business-minded and at the same time, enhances the decision making skills
throughout their student life.

 

To the consumers this will increase their knowledge in
the world of trade. They will know what and when physical shopping and online
shopping benefits them.

 

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To the business owners because this research will boost their marketing strategy to
make new customers that will patronize them and soon will become loyal
customers. Likewise, this will help them to evaluate if they are being
effective or not.

To the future business owners we would like help them to prepare on
starting up a business. This research will make them evaluate their plan of
establishing a business.

 

To the future researchers we can use this kind of research as a
guide for conceptualizing your future research papers. You can ask the
respondents “How often do you buy your needs? ” How about your wants? “.

 

Definition
of Terms

This research made use of some
unfamiliar words in the introduction of the topic. Here are the list of term
that the researchers have used to further understand the flow and the idea of
the chapter.

Boutique is a
small store that sells stylish clothing, jewellery, or other usually luxury
goods.

Business
is
an 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 and
unite in order to focus their various talents and organize their collectively
available skills or resources to achieve specific declared goals and are
involved in the provision of goods and services to consumers.

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Centre Stage means
at or toward the middle of a stage.

Consumers
are
the 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 be
believed or convincing.

Discount
is
a deduction from the full amount of a price or debt, as in return for prompt
payment or to a special group of customers.

Industry
is
the production of goods or related services within an economy.

Meticulous
means
taking or showing extreme care about details; precise; thorough.

Online
Shopping means shopping done via the Internet; it is also called
e-shopping.

Physical
Shopping means shopping done personally.

Promo
is
something that is used to advertise or promote something.

Scam
is
a
dishonest scheme; a fraud.

Shopping is the action or activity
of purchasing goods from stores.

Store is a retail establishment
selling items to the public.

Technology is the machinery and
equipment developed from the application of scientific knowledge.

Trend
is
a topic that is the subject of many posts on a social media website within a short
period of time.

Trustworthy
is
being able to be relied on as honest or truthful.

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CHAPTER II                                       

REVIEW OF RELATED LITERATURE

Online Selling as the New Shopping Trend

 

            Due
to the advance of technologies in the society, online shopping became the most
disseminated preferred style of shopping. Although both online and conventional
shopping are common, online mode is still the widely sryle used by the
different consumers (Firas & Wabot, 2016). Chowdhury & Kalyan further
explained that online shopping is also the preferred style of shopping in
Bangladesh and it still because of the advancement of technologies where the
use of social media like facebook,twitter and tge reliable payment platform
became the huge option of the consumers. Some of the people used internet for
their 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 is
somewhat a relaxing shopping, the product already have the full details and
sometimes there is a different in pricing ( Chacko and Verna, 2015).

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            According
to Osman and Salahudi (2016), perceived usefulness and efficacy make the
consumers to perform online shopping and tge perceived usefulness usually
depends on the website’s efficiency of technological characteristics. While
Asnani and Kumari (2016) said that the internet created a big impact especially
in online shopping. Consumers purchase services and goods on the internet with
reasonable price. Some of the consumers don’t care about it but others value it
as a part of their daily lives. The most difficult of all products is even
easier by just easily typing the product that you are looking for. Logistic
companies are also joining the Bandwagon; so to speak, it helps in main sure
that their products would be available to any and all destinations in the world
so there’s nothing to worry about it.

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In
the study of Meshram (2016), the generation Y prefers online shopping rather
than conventional shopping methods when it comes to convenience. It was also
noticed those on times when there is a rise in purchasing their needs, the
current generation shops at any time. The study showed no specific pattern for
shopping with respect to fashion clothing & accessories. Malls are also
being visited by Gen Y for prior spending their free time. Positive impact is
being established on the consumers when they do online shopping thus, this
resulted to a more frequent practice of shopping through online medium. The
consumers’ preference to practice online shopping has resulted to a decrease in
the footfalls of the conventional shopping. The study proved that impulsive and
compulsive buyers were the ones who rendered low confidence in their purchasing
capabilities. Consumers with lower self-efficacy were proved to be more prone
to stress anxiety, discontentment and inferiority complex which lead to buying
items that are neither required nor affordable. The failure to manage their
purchasing behaviours makes them become indulging impulsive and/or compulsive
buyers (Attiq and Moon, 2015). Website
characteristics most significantly influence the emotion of consumers of the “high-frequency
online shopping group.” This means that people from this certain group will
develop a positive emotion toward online shopping due to the influence of these
website characteristics (Tsai and Wu, 2017). Crocco, Eboli and
Gabriella (2013) said that high-priced products are tend to be purchased by
online buyers because of its capability to be easily chosen on the web and the
less need to be handled or to have a close look. In line with the levels of
price, people purchase online expensive products because these items generally
be acquired cheaper than its original price. On the other hand, conventional
consumers tend to purchase larger quantities of clothing product than online
consumers 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 as
students and professionals are more prone to online shopping. Usually, buying
goods from its original source and online shopping are preferred by students.
Assorted factors affect the consumers when they purchase online. These factors
have been identified as the following: price, confidence, security,
convenience, time, after sale service and discounted deals. The price factor
exists due to prices are often lower in online shopping than in physical
purchases in the market. Considering convenience, saving time and money, online
buying can be of great benefit to the consumer. However, one of the prime
problems in online shopping is that people get anxious when the computer
demands the complete details of the customers for the reason that their
personal details may get disclosed as well as their money and account

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details
may get damaged.

 

Advantages
When Shopping Physically

In the study of Pereira
(2015), the preferred style of the consumers is the physical shopping where
they can be able to to feel and touch the product and also as if talking about
to trust. He also added that online shopping become popular only less than a
year.

Moos and Vliet(2017) in
physical shopping it talks about how the producers will give the consumers a
shopping experience but in the end it is still depends on the consumer’s
behavior because retailer somehow used both online and offline to know what
tyle they can serve better to their clients.

The expenditure of the
consumed time to collegt a name value of a product are effective in rising up
the prices. Also, a completion of a set increases social value of a product and
embolden the collectors to buy (Allahdini, Chitsaz and Saeedi, 2017). Based on
the argumentation of Friedrich, Overhage and Schlauderer in 2016 study,
communication media differ in their level of social presence which is essential
in determining the way individuals interact. For instance, face-to-face
communication has the highest social presence. Meanwhile, a business letter
showed low social presence because its text-based nature lacks the ability to
convey social cues such as facial expressions, gestures, and sounds

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  Buying dilemmas has no relevance to
socioeconomic indicators, since it is possible to show that people from lower
classes are affected. 75% of the compulsive buyers lived in the Southeast of
the country, which is the richest region with around 56.2% of Brazil’s Gross
Domestic Product GDP) and has the most diverse economy (Cardoso and Leite,
2016). In MihaelaIoni?? (2017), E-commerce is redesigning consumer behavior and
business 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 conventional
shopping. It is necessary to provide capital to physical stores but it is also
important to put forth funding to the digital content so as to satisfy the need
of complete information, availability and convenience of today’s shoppers .

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The
present findings of Fennis, Kerkhof and Noort (2017) indicate that consumers’
risk perception is more than just a motive that underlies decisions to shop in
an online or a conventional store. Both self-report and implicit measures show
that by its risky nature, online shopping evokes prevention-focused
self-regulation. Interestingly, experienced online shoppers do not stop
perceiving the Internet as a risky shopping channel and are as prevention
focused as the inexperienced shoppers. Since prevention-focused (vs.
promotion–focused) self-regulation is known to affect consumer information
processing and choice,6 the findings have implications for theories about
online consumer behaviour. For example, the kind of information that online
consumers search for might be affected by their prevention focus. Whereas the
natural tendency of a marketer is to stress positive product features, in an
online store it may be wise to stress the absence of negative features, since
this fits the predominant regulatory focus of the online consume. And through
the study of  Alam, Nassa and
Upadhye  (2016), it has been revealed
that for all types of UAE consumers, the factors such as price, quality and
convenience were important in predicting consumers buying behavior. Also, UAE
retail sector is classified as one of the most flourishing retail sectors in
the world. The UAE consumers’ are likely to collect product information
including price and quality from the retail store. The UAE consumers might have
concerns related to information accuracy (e.g. inaccurate product price,
specification), information security (e.g. unsecured payment, viruses/spam) and
trust (e.g. technology problem, unwanted products, slow shipping) that
constitute risk to use online buying.

 

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CHAPTER III

RESEARCH METHODOLOGY

In this chapter, the research methods,
frame sample, description of respondents. Research instruments, data gathering
procedures and statistical data are presented to collaborate the ideas of this
study.

 

Research
Method and Design

To
obtain the needed information, numerical values are a necessity so the research
method is Causal-Comparative by the use of survey design. It involves looking
for statistical data that is relevant to the study.  Survey questionnaires will be the primary
source of getting facts. The researchers will first solidify the questions then
it will be given to the selected respondents. After collecting the
questionnaires, researchers will now assess the numbers to come up to an
outcome. The advantage of this method is, it gives us direct to the point
answers and realistic results.

 

 

Population
Frame and Samples

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            The population frame is a group of
individual from where the sample of the study is selected. In order to draw
accurate conclusions about the population, a sample needs to be represented of
the population. In general, the minimum number of subjects believed to be
acceptable for a study depends upon the type of research involved.

            The
respondents of this study came from the area of Mandaluyong City. Slovin’s
formula is used to determine the number of respondents with a margin of error
of 5%. Out of thousands of people in this area, 286 respondents are chosen to
represent what the intended whole is like.

Descriptions
of the Respondents

            This
study involves (100) one hundred random students in Rizal Technological
University because we don’t know who in RTU loves to shopping, (6) six Senior
High School teachers in Rizal Technological University because it has only
seven 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 in
studying due to limited number of respondents.

 

Research
Instruments

            In this
research study, the instruments that we use are survey questionnaires to gather
and ask the respondents for their perspectives about our topic. The number of
items that were asked consists of ten (10) related questions. The queries will
be used as the guide for this study to be countered.

 

 

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Data
Gathering Procedures

            This study conducts a
survey to the respondents by obtaining their permission. The selected participants
identify data options and adheres data collection.