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Chapter 1

THE PROBLEM: ITS BACKGROUND

Introduction

Online shopping is one of the most common and convenient medium in

shopping. Every year hundreds of websites and applications are created and deployed to

support the rising demand of comfortable shopping trends. In fact online shopping is

third among the most popular activity on the internet after email and web browsing.

Easy access has driven the customers to shop online. It makes life easier for the

customers because they can make a purchase wherever they are especially for developed

countries where every store as its own website where you can make a purchase. It is a

medium used to communicate, it is to increase and improve quality, value and

attractiveness in delivering customer benefit and satisfaction. That is why online

shopping is preferred by millions of people because of its convenience and day by day it

increase its popularity.

E-commerce is also fast growing because of its advantages as to compared with

other types of shopping. Lower transaction, easy access and search cost is associated

with buying on internet. With this online shopping customers can have more alternatives

they can have comparative prices with products and services also they can buy faster

without spending much money. That is why Marketers must analyzed carefully the

attitudes of the customers towards their buying behavior.

Customers attitude towards their buying behavior in online shopping pertains to

their psychological state in making purchase online. The process of buying behavior of

these online consumers are based on the five steps which is similar to the traditional

shopping behavior. The first one is the consumers recognition or the need for buying the
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some product. Then after that consumers will refer the internet to buy the product and

will start to search for information and look for some alternatives and finally to make a

purchase which they believe that will fits their needs.

Understanding the process of virtual shopping and the behavior of online

consumer is one of the top priority issues for companies and practitioners who is

competing in fast growing virtual marketplace. Customer experience from visiting the

web site or web page of a business has been recognized as one of the important factors

for an online business to be successful. Creating a great online experience for online

customers can create competitive advantage on the internet. Through this online

marketers need to understand the consumer behavior in commercial online

environments. Shopping enjoyment and browsing behavior for effective website design

are one of the several aspect that affects the customer web experience and very

important in forming positive and negative expression and opinion about the quality of a

website. On the other hand aesthetic appeal on web is one of the basic requirements for

attracting online customers.

Web experience can be defined as the total experience or impression of an online

customer about the virtual firm. Web experience is also classified by the factors of

searching, finding, browsing, selecting, evaluating the gathered data or information as

well as the impression while having an interaction and transaction with the firm.

Based on the review publication of Constantinides (2004) there are some

elements in online experience and they are classified n three groups, first is the Content

category which exercise direct and powerful influence of web experience by making

aesthetic more positive and tangible. Aesthetics and marketing mix are included in the

factors. Followed by Psychological category which is the factor that builds trust, website
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communicate with the customer through the internet that is why they must build trust

and ensure the integrity and credibility in order to attract persuade and interact with the

customer online. The last one is the Functionality category which enhance the online

experience by presenting with good, functioning, easy to use and inactive page.

Usability and Interactivity are the factors included in the Functionality category.

Usability is composed of convenience, navigation, information and the process of

ordering and payment, search speed and accessibility while Interactivity is composed of

customer service, after sales and interaction of the company.

Among other nationality in the Asia Pacific, Filipinos are one of the most active

internet users and proactive in product research, this includes the comparing product

prices, searching for best deals and reading customer reviews. Even though Filipinos are

fund in engaging in the internet, still they are very careful on online shopping because of

its security, policy and the website reputation. Having the continuous rise of the internet

use among Filipinos, more and more E- commerce companies starts to penetrate

different industries such as cars, auto detailing transportation, food, recreation and even

financial sector. (Adel, 2019)

Because of the rapid growth of internet users in the Philippines, the demand for

online shopping also increase. In the Philippines there are hundreds of websites offering

different kinds of products and services to virtual customers. According to the article of

Mindanao Times (2017), it is expected that the rise of online consumer will continue to

grow in the coming years due to the number of consumers who are getting connected to

the internet. Our government, through the Department of Trade and Industry, have been

very supportive with the e-commerce industry they even created a Philippine E-

Commerce Roadmap 2016-2020 which has the objective to contribute 25% of the
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country’s Gross Domestic Products by the year 2020. The growth of online shopping

change the shape of the consumer to the market, the force industry players to adjust the

changing conditions and create an environment where both parties will benefit. It can

help Filipinos save time while shopping and allow retailers to have their product more

accessible, but the point is not only in the Philippines but also in the international

market.

In Tarlac City there are several pages for the local retailers to promote their

products, more and more Tarlaquenos are enjoying the convenience that this online

shopping can brought to their lives. According to the Tarlac Municipality every year 5%

of new entrepreneurs are being added in their list. It shows that more Tarlaquenos are

entering the world of business and online shopping is one of their best effective way to

introduce the business to people.

As the entrepreneurs found out that Filipinos wants to get updated to something

that is new and at the same time if it is budget friendly. But the question is with the rapid

growth of numbers of online shopping websites, how can they compete with one

another. The advantages and strategies that they should have in order for them to keep

the business and the impact of web experience on virtual buying behavior of consumers

to selected online shopping websites.

Conducting this study will help the researchers determine the web experience on

virtual buying behavior of consumers to selected online shopping websites. To determine

what are the right approach to retain and gain more customer to avail the products and

services in their website.

Statement of the Problem

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The study aims to look into the different web experience on virtual buying

behavior of consumers of Lazada an online shopping website. It also seeks to find the

answer to the question.

1. How are the virtual customers described in terms of:

1.1 age,

1.2 gender, and

1.3 educational attainment?

2. How is the web experience of online shopping described as to:

2.1 marketing mix,

2.2 aesthetics,

2.3 trust building,

2.4 interactivity; and

2.5 usability;

3. What are the problems encountered by the virtual consumers in their web

experience?

4. What are the implications of the study to Marketing Management?

Significance of the Study

The result of the study will benefit the following stakeholders. For them to

understand the different factors affecting the web experience on virtual buying

behavior of consumers to selected online shopping websites.

Online shopping websites they will be guided on how to react in particular

situation like on how they can compete and use the factors of web experience to

improve their product and services. So that they can think of a strategy that they can
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use to earn additional profit and gain valuable customers and to have an edge in the

competition.

To Virtual Consumers they will have an idea to choose which company can

satisfy their needs and wants. They will understand the factors that affects their web

experience in online shopping.

To Businessman the benefit will be an overview of what should they do when

they plan to put up an investment or business like online shopping. This study will

give them additional knowledge on how to operate and understand the behavior of

their customers towards their web experience in online shopping.

To the Academe they can learn and apply the things that being used in this

study like the factors of web experience used by the respondents as their basis in

purchasing in an online shopping websites and for them to understand the factors

that affects their behavior in online shopping.

To Future Researchers they can use this study to make an overview of a case

that they might as well encounter in the future study. They can also get an idea of the

factors that affect the web experience on virtual buying behavior of consumers use

for them to relate or compare to the possible connection or correlation in their future

study.

Scope and Delimitation

The study will focus on the web experience on virtual buying behavior of

consumers to selected online shopping websites in the Philippines. The researchers

will conduct this study to find out the different factors affecting the web experience

on buying behavior of consumers to selected online shopping websites when it

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comes to Marketing Mix, Aesthetics, Trust Building, Interactivity and Usability of

their website. The respondents of the study are the virtual consumers/ customers,

potential customers and even internet users. There will be one hundred fifty (150)

respondents in this study. The location of the respondents are within Tarlac City

proper only.

Definition of Terms

To completely understand this study, the following are the terms of the words being

used theoretically:

Accessibility. the quality of being easy to obtain or use.

Aesthetics. the formal study of art, especially in relation to the idea of beauty.

Buying behavior. the sum total of a consumer's attitudes, preferences, intentions,

and decisions regarding the consumer's behavior in the marketplace when purchasing

a product or service.

Convenience. the state of being able to proceed with something with little effort or

difficulty.

E-commerce. also known as electronic commerce or internet commerce, refers to

the buying and selling of goods or services using the internet, and the transfer of

money and data to execute these transactions

Influence. the capacity to have an effect on the character, development, or behavior

of someone or something, or the effect itself.

Interactivity. involving the actions or input of a user

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Internet. a global computer network providing a variety of information and

communication facilities, consisting of interconnected networks using standardized

communication protocols.

Marketing Mix. The marketing mix refers to the set of actions, or tactics, that a

company uses to promote its brand or product in the market. The 4Ps make up a

typical marketing mix - Price, Product, Promotion and Place.

Online shopping. It is the act of purchasing products or services over the internet. It

has grown its popularity because people find it convenience and easy to bargain from

the comfort of their home or office.

Trust building. The activity of developing trust between people so that they

can work more effectively

Usability. Website usability is a term describing the ease of use of a particular

website or project. Looking at this issue touches a number of big concerns for

today's webmasters and developers related to how a target audience uses an online

site.

Virtual. being on or simulated on a computer or computer network

Web experience. The skill of carrying out activities related to products, such as

information-search, interacting with sellers, decision-making, purchasing products,

and, ultimately, using the product.

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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

For further understanding of the study, the researchers made use of different

reading materials related to the topic. These materials such as books, thesis and other

web articles are essential in expanding the knowledge of the researchers. This chapter

presents the related information and previous research work for the realization of the

study. It aims to preview the literature and studies to web experience on virtual buying

behavior of consumers to selected online shopping website.

Related Literature

As seen in the past internet is expanding, it becomes a popular marketing

channel. There are various of differences between the physical store and the electronic

such as customers can buy things whenever they want and wherever they are through
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online shopping. It is a buying process which includes navigation, searching of

information and the online transactions and interactions. Consumers can also enjoy

window shopping on the internet without feeling pressure to purchase a certain product.

The customer experience from visiting a web site has been recognized as one of

the most important factors for online success. According to “creating a compelling

online experience for cyber customers is critical for creating competitive advantage on

the Internet”. The same authors argue that relatively little is known about the factors that

contribute to a superb online experience noticing that “online marketers need to develop

a comprehensive understanding of consumer behaviour in commercial online

environments”.

During the last six years a substantial amount of academic research has been

carried out with the purpose of understanding the online consumer behaviour. The

propensity of consumers to engage in online business has been extensively studied and

analysed. Many researchers emphasize that the quality of the online presence is an

important influencer of the online consumer’s behaviour, something regularly confirmed

in research conducted by non academic parties. More recently researchers have focused

their attention on the effects of shopping enjoyment on online consumer satisfaction and

on the browsing behaviour as background for effective website design.

Several aspects on the customer experience and particularly on the visual aspects

of web sites have also attracted the attention of researchers suggested that the visual

impression of web sites is very important for forming a positive or negative opinion

about the quality of a web site and an exposure of 50 milliseconds to a web site is

enough for most people to form this opinion. A similar study has also proven the

consistency of the immediate aesthetic impressions. While an aesthetically appealing

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web site is the basic requirement for attracting virtual customers, visual attractiveness is

one of several elements that combined shape the Online (or Web) Experience. The Web

Experience (WE) can be defined as “the total impression online customers get about the

virtual firms” as the result of exposure to a combination of notions, emotions and

impulses caused by the design and other marketing elements of the online presentation.

As such the web experience is influenced by factors like searching, browsing,

finding, selecting and evaluating information as well by impressions generated during

interaction and transaction with the online firm. based on a conceptual model of flow

describing the components of “a compelling online experience”, concluded that it is

possible to define its ingredients, to measure them and relate them to important

marketing variables. Other researchers have applied the flow theory as the framework of

analysis of human computer interaction and as a model describing different aspects of

the online consumer’s behaviour. For all intents and purposes the large number of

variables affecting the web experience and the constantly changing, dynamic character

of the online environment underline the need for more research on the components of

the web experience and continuous refinement of business approaches, based on a

literature review, identified the different elements of the online experience and clustered

them in three categories. Factors exercising a direct and powerful influence on the web

experience by making the website aesthetically positive and its offer tangible and

attractive. They include the

Aesthetics: website design/features, website design and online shopping activity

is one of the vital influencing factors of online shopping. Website design, website

reliability/fulfillment, website customer service and website security/privacy are the

most attractive features which influence the perception of the consumer of online buying
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Shergill & Chen (2005). Kamariah and Salwani (2005) claims the higher website quality,

the higher consumer intends to shop from internet. Web design quality has important

impacts on consumer choice of electronic stores, stated by Liang and Lai (2000).

Website design one of the important factor motivating consumers for online shopping.

Almost 100,000 on-line shopper’s surveyed by (Reibstein, 2000) shows that web site

design was rated as important factor for online shopping. Another study conducted by

Zhang, Dran, Small, and Barcellos (1999, 2000), and Zhang and Dran (2000) indicated

that website design features of the website are important and influencing factors that

leads consumer’s satisfaction and dissatisfaction with a specific website. A study

conducted by Yasmin and Nik (2010) shows a significant relationship between online

shopping activity and website features. Website design features can be considered as a

motivational factor that can create positive or negative feelings with a website (Zhang, et

al 1999). A study by Li and Zhang (2002), if website is designed with quality features it

can guide the customers for successful transactions and attract the customers to revisit

the website again. However, worse quality website features can also hamper online

shopping. According to Liang and Lai (2000), web design quality or website features has

direct impact on user to shop online.

Psychological category web sites must communicate trust and ensure users of the

vendor’s integrity and credibility in order to persuade customers to stop, explore them,

and interact online. Building trust is possible by deploying uncertainty-reducing

elements, ensuring the safety of customer personal information and transaction data,

eliminating fears of fraud and building trust between the online user and the often

unknown and far away located vendor.

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From an anthropological perspective, experience refers to how each individual

experiments with his own culture (Bruner, 1986). Experience differs from behavior,

which is visible part of experience (what is seen from the outside) and differs from the

situation itself. Research in marketing defines experience as a personal and subjective

moment that may build and transform a person’s life (Arnould and Thomson, 2005); the

principal dimension is the emotional and sensitive dimension, followed by the cognitive

dimension (Addis and Holbrook, 2001). The experience undergone in a shopping

context is a whole shopping experience (Arnouldet al., 2002).

Consumers may live in many ways it depends on the social context, on the

products and services and on the personal relationships that are related to the situation

(Edgellet al., 1997). Moreover, the shopping experience is not just under the influence of

the environment: the personal experience is influenced by the environment, and then the

experience itself is transformed. In addition to the functional dimension of consumption

items, Heilbrunn (2010) brings out three components of consumption experience which

may be analyzed as latent dimensions of consumption (Filser, 2008). Indeed, these

components integrate three salient aspects of the concept which have been pointed out in

other literature.

Online shopping experience an experiential framework based on the concepts of

flow and cognitive absorption has been purposed by (Hoffman and Novak, 1996, 2009;

Novak, et al. 2000; Agarwal and Karahanna, 2000). This framework is accurate to

analyze the online consumer behavior in general. The central hypothesis of these models

is that the online environment is interactive by nature:consumers interact with websites,

with other consumers and with the interface itself. Another perspective is proposed by
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Prahalad and Ramaswamy (2004); they consider a personalized consumer experience,

referring to the concept of co-creation. Unique experiences between consumers and

companies are considered and new product development is taken as an example.

Marketing research provides considerable evidence suggesting shopping is a

social experience. Thus, co-creation experiences may be shared by consumers with their

social network (family, friends, members of the community: all types of companions).

But surprisingly, previous research on online consumption experiences, examines the

individual experience, but does not examine the global online experience with a

companion. Moreover, to the best of our knowledge, online shopping in groups has not

been examined in current research yet. The literature on shopping behavior (and online

shopping) considers that consumers’ motivations when they shop online may be

hedonistic or utilitarian (for instance: Babin and Attaway, 2000; Sénécal et al., 2002;

Bridges and Florsheim, 2008). Online shoppers in terms of demography are another

important aspect.

In terms of age, gender, income and education as are there any differences while

consumers shop online, differences within the age groups such as does online shopping

attracts elder people or younger people. Studies have shown that online shoppers mainly

consist of people with Higher education and income and working in middle to senior

management or professionals (Kehoe et al., 1998; Hoffman et al., 1996). Childers et al.,

(2001) found ‘enjoyment’ to be a consistent and strong predictor of attitude towards

online shopping. If consumers enjoy their online shopping experience, they have a

more likely to adopt the Internet as a shopping medium”Web experience is the skill

of carrying out activities which are related to products, such as searching information,
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interacting with the seller, decision making, purchasing of the product up to do point of

consumption or using the product. (Sicilia, Ruiz, & Munuera, 2005 ).

Locally, a report in the Business Times and an online survey showed that

demographically, a typical Net shopper is mainly male, aged between 18 and 40, had

attended at least secondary school and belongs to a family with average income of at

least $5000. The online survey also showed that cyberbuyers were also mainly Chinese

below 36 years old with diplomas or degrees and drawing a monthly salary of less than

$3500. Another study by Miller (1996) claims cyberspace is the domain of young people

Bhatnagar and Ghose (2004). Sim and Koi, (2002) states as main discriminating factors

appeared to be gender and income. Customer segmentation is important for electronic

commerce success, Berry (1999). Miller (1996) has focused on demographics to show

the profile of Internet users, Bhatnagar and Ghose (2004).

The Usability and Interactivity: physical dimension, linked to the fact the

experience takes place somewhere, in a particular context and in a period of time. This

dimension refers to the tangible base of the consumption experience experience is multi-

sensory based (an individual may see, 5 touch, smell, taste, feel the consumption object)

and takes place in space and time (the consumer may choose, hesitate, reject, use the

object); this dimension is related to the physical participation in the environment and the

specific relationship the individual is committed to (Pine and Gilmore, 1999). An

ideological dimension relating to the ability of the object to promote values and an

imaginary world. This ideological dimension pertains to the way that consumer’s

attitudes and behaviors may be shaped and modified. This aspect of experience refers to
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the marketing research on shopping value and consumer behavior (Holbrook, 2000) and

the search for identity and self-image (Firat and Dholakia, 1998).

A pragmatic dimension, that is to say the use of tools, artifacts and all the

shopping practices which structure the rituals of consumption and shopping. Thus, it is a

practice based dimension; depending on the culture, the consumption may be defined by

a precise set of acts and gestures so that the consumers make the brand and products

theirs: they “appropriate” them (Holt, 1995). These dimensions highlight that people do

not undergo the experience: it brings into play a learning process that modifies the

individual who in his turn, transforms the environment. The individual is intending to

participate in the experience, extra-ordinary or not; he/she wants to be part of the

experimentation (De Certeau,1984); the consumer appropriates his everyday life by

conducting his own experiences.

This classification was the basis of an empirical study in the Netherlands meant to

identify the relative importance of the different factors as influencers of online

consumer’s decision making process,

Hirschman and Holbrook ,(1982) , suggest that “Motivations of Consumers to

engage in online shopping include both utilitarian and hedonic dimension. Whereas

some Internet shoppers can be described as “problem solvers” others can be termed

seeking for ‘fun, fantasy, arousal, sensory stimulation and enjoyment’ Babinetal., (1994)

suggest that, “The problem solvers merely shop online in order to acquire a specific

product or service, in which case shopping is considered to be ‘an errand’ or

‘work’.
Holbrook (1994) says that, their main concern is to purchase products in an efficient

and timely manner to achieve their goals with a minimum of irritation of

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irritation. In contrast the second category sees online shopping as ‘enjoyment’ and

seeks for the potential entertainment resulting from the fun and play arising from the

Internet shopping experience for its own sake apart from any other consequence

Mathwicketal(2002) If online shopping meets this ideal by enabling the consumer to

accomplish the shopping task he or she has set out to perform, then consumers

will judge the Internet shopping performance positively.

First is they must ensure that their site loads quickly whether the customer is using

a computer or device, it must also contain easy navigation, good quality of photo and its

content. Customer reviews are also important in a website, availability of the product

must also included in the content, customer service should be available at all times.

Finally checking out or proceeding to payment section must be clear, safe and easy to

navigate.

According to the article of Grimley (2018), consumer behavior is the sum of total

attitudes, preferences, intensions and decisions regarding the consumer behavior in the

marketplace when purchasing a product or service. On the other hand Cambridge

dictionary defines buying behavior as the way people behave when they buy things, such

as what to buy, where and when to shop and the amount they will pend in a particular

product ore services.

Hamimci, Bektas,Taser and Gursoy (2011) wrote an article about E-buying

behavior where they defined online shopping behavior is the process of purchasing

products or services in the internet.

Businesses and consumers changed as the technology and digital practices

evolved, if a consumer is in need of a product, anytime and anywhere he can access the
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internet to purchase a product as well as he can research for more options and read

reviews about the product, it is the business model that changed the traditional way of

shopping. As the consumers buying process has been simplified by digital marketing, the

ways of interaction and reaching businesses has multiplied (Heitzman,2015).

Revesencio (2017) published an article entitled the mind of an online shopper: a

peek inside ecommerce buying behavior. The article talks about understanding the

consumer behavior which can help existing marketing campaigns and current

ecommerce strategy. In the article, the different types of buyers were discussed. In the

article it is explained that people may enjoy a companies one product but loyal customer

stands for what they love and how the company help them. Having these factors,

marketers can now focus on the matters of the consumer and they can adjust their

strategies to better attract and persuade the customer.

In 2018, Morah published an article entitled shopping online: convenience,

bargains and a few scams. In this article Morah talks about the benefits and reasons why

more and more people turns into online shopping as compared to the regular type of

shopping. Aside from the convenience online shopping can give to the consumers, more

options to choose from, affordable prices and it avoids the pressure that they usually get

from sales persons. Aside from these, the mechanics on how online shopping works are

also discussed in the article as well as the advantages and disadvantages of online

trading.

A website named Guided Selling blog (2017) posted an article entitled digital is

changing consumer behavior, can you keep up. The article talks about the changes that

happens to consumer behavior and shopping habits, one of the problems businesses
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facing today is to understand that technologies are influencing consumer expectations.

Customers do not simply expect to have a better buying experience but they think they

are entitled to it. Rich in information, socially intensive environment hanged the

approach of decision- making.

Beall (2017) also published an article entitled 5 ways technology is changing

consumer behaviors. According to Beall technology has caused the businesses to run

differently, they established new pre-requisites for success and at the same time

influenced the way consumer act. That is why Beall come up with the five ways

technology is changing consumer behaviors such as evolving ad networks, Virtual reality

and augmented reality, Social media content, Digital optimization and chatbots.

Trust building: experience and online shopping Customers learn from their buying

experience and product use. These experiences shape their trust and behavior on the

website and generates word-of-mouth communication, through online and off line social

networks. Online trust is developed over a process of repeated visits to a site as a user

gains experience and believes that his/her expectations are met during the visits, explain

Urban et al. (2009). Trust is thus considered as a process, a permanent and continuing

consumer experience. Bart et al. (2005) consider that « online trust includes consumer

perceptions of how the site would deliver on expectations, how believable the site’s

information is, and how much confidence the site commands.

The state of the art realized by 7 Urban et al. (2009) explains that online trust

extends beyond privacy and security, and is closely connected to website design, and

that its formation is an on-going process, and is heterogeneous across individuals and
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products. It is indeed fairly hard to identify a single behavior rule or model to consider

online trust worldwide... Multiple national surveys and international comparisons are

required (e.g. Dinev et al., 2006). Moreover, recent national surveys in France suggest

that online trust as a topic might be over-estimated. The trust rate in online shopping is

growing, but remains pretty low (between 51% and 64% according to various surveys.

Security is another dominant factor which affects consumers to shop online.

However many internet users avoid online shopping because of credit card fraud,

privacy factors, non delivery risk, post purchase service and so on. But transaction

security on the online shopping has received attention. Safe and secured transaction of

money and credit card information increases trust and decreases transaction risk. In

1995, UK has introduced Fraud free electronic shopping and later on Europe and

Singapore introduced secured electronic transaction (SET). According to Bhatnagar and

Ghose (2004) Security is one of the attribute 14 which limits buying on the web as they

claim that there is a large segment of internet shoppers who don’t like to buy online

because of their thinking about the security of their sensitive information. Cuneyt and

Gautam (2004) claims trust in the internet shopping with advanced technology, and

frequent online shopping to the internet being secured as a trustworthy shopping

channel.

The percentage of internet users who declare to trust online shopping). An

“online trust paradox” is then evoked internet users massively shop online (85% of

French internet users) in spite of their trust level. Surveys usually conclude that the ‘use’

value is considered higher than perceived risks. Trust rate in online banking (69%) and

administration (89%) are higher. Actually, shoppers who have experienced online
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shopping are more familiar with e-commerce and should be more confident to shop

online, above all, the youngest shoppers, the “digital natives” who are used to the

internet environment. Their online shopping experience must be different: they might be

more curious, fond of new brands with an appetite for novelty.

According to the article of Schiff (2015) entitled 12 ways to improve the

customer experience for online shoppers, there are several ways to improve the web

experience of these online shoppers, due to more options customer has in purchasing a

certain product e-commerce business need to able to attract the attention of the customer

and make their shopping experience pleasant and easy.

In 2018, Gemius Global posted an article entitled Factors that affect online

shopping in Latvia and Lithuania where in the article the Pros and Cons of online

shopping are being talked about. Both countries states that superior pricing policies

when shopping online and the benefit that a consumer get from his/her comfort zone.

Although there are lots of advantages a consumer gets from purchasing online there

are still disadvantages that they can get in online shopping such as the sometimes

consumer received a product which did not meet his satisfaction. There are also

instances that delivery took long time for the customer to receive the product.

In 2019, Montaldo also published an article entitled the Pros and Cons of Online

shopping where the advantages of shopping online was discussed, disadvantages are

also stated in the article. The Pro’s or advantages of online shopping are the

convenience, pressure that can they avoid from sales person, customer reviews can also

give an overlook to other customer that will may avail the product or services. On the
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other hand the Cons or the disadvantages of purchasing online are the ability to inspect

the certain product that was about to purchase, distribution of the products from the

seller up to the consumer that needs to be taken care of. Safe and Security policies is

one of the problems these online shoppers deal with.

Related Studies

A.FOREIGN

In 2017, Ghouri studied a research entitled customer perception on online

purchase intention: the impact of online shopping orientations on online buying

intention. The study aims to recognized the customer perception on online purchase

intention among the youth of Pakistan. Online survey questionnaire was used to gather

information from 292 respondents. Results shows that prior to online purchase

experience and online trust have a positive effect on the customer purchase intention.

It also shows in the study that males are found to have more intentions on shopping

online as to compare to females. Moreover, it shows in the study that online customer

in Pakistan may have a tendency to seek for different offers an extraordinary worth of

value rather than brand or quality. Online websites or retailers may focus on the

impulse purchase orientation aspect and must concentrate on expanding online trust.

In 2016 Lim, Osman, Salahuddin, Romle, Abdullah conducted a study entitled

Factors Influencing Online Shopping Behavior: The Mediating Role of Purchase

Intention. The study aims to know the relationship between the norms, usefulness

and online shopping behavior. Students of University Malaysia ages 18-34 were selected
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as the subject of the study. Out of 800 distributed questionnaires only 662 were

retrieved and validated for coding, analysis and testing t he hypothesis. Structural

Equation modeling were used to examine if the model fits and to test the hypothesis. It

shows in the study that subjective norm and perceived usefulness are significantly

positive with the influence of online purchase intention but on the other hand

subjective norm insignificantly influence shopping behavior in a negative way. Findings

shows that purchase intention is positively significant in influencing online shopping

behavior. According to the study of Vaghela (2014) entitled A study on consumer

perceptions towards online shopping. The main purpose of the study is to study the

perception of customers towards purchasing online and also discriminate this

perception gender vise. Structured questionnaire were given to 150 respondents. Study

shows that customers were prefer online shopping as to compare to manual shopping

and they were satisfied with the online shopping transactions. Customers can easily

access their net at home, office and other place. It also shows in the study that

products like clothes, electronic items and accessories are the products commonly

purchased online. However the only barrier for online shopping was customers have to

give their credit card number even if they cannot see or have not received the product

yet. Respondents also agrees that online shopping is a bit expensive as to manual

shopping, time and delivery is also an issue in online shopping

In 2014, Maini conducted a study entitled A research on Online Buying Behavior

of Consumer’s in India. The main purpose of the study is to know the factors affecting

young Indian’s consumer buying behavior, because there is an increase use of internet by
 24

the younger generation in India and because of that it emerges prospect for online

retailers. The study also identifies the parameters that motivates shoppers to buy online

instead of retail stores or supermarkets. There were 280 respondents in the study but

only 34 response the questionnaire and the study used survey questionnaire and emails

to gather data. Study shows that due to hassle free shopping and more choices of online

shops it increase the internet penetration, but at the same time companies must reduce

the risk of related consumer incompetence by using tactics or strategies. Moreover,

researchers found out that it is a challenge for E-marketers to convert low frequency

online buyers into regular buyers through successful design of the website and

addressing the concerns about the reliable performance.

In the study of Bagga and Bhatt (2013) entitled a study of intrinsic and extrinsic

factors influencing consumer buying behavior online, the study aims to identify the

factors and their importance on consumer purchase behavior. Survey questionnaire was

the tool used to gather data, some are sent through mail while some are posted online.

ANNOVA and independent t-test were the techniques used to test the hypothesis.

Finding shows that approach towards identifying the effective internet marketing tool

should employ by the companies to better understand the online consumer behavior

which differ from traditional consumer behavior.

In 2013 Fong conducted a study entitled a study on consumers’ attitude toward

online shopping on Penang Famous fruit pickles, the study was conducted to identify the

potential of online sales on Penang fruit pickles trough online shopping as an alternative

to visiting the physical shop. It also investigates the factors that influence the attitude

towards purchasing the product. Survey questionnaire containing 34 questions were

distributed among respondents. Pearson’s correlation and 1-way ANNOVA was used to
 25

test the hypothesis and variables. Results shows that consumers exhibits positive

intention in online purchase in future and attitude is strongly correlated with behavioral

intention. The study also concludes that the benefits of shopping online perceived

merchant’s trustworthiness and consumers lifestyle have direct influence on attitude.

According to the study of Singh (2013) entitled Consumer behavior in online

shopping: a study of Aizawl. The main objective of the study was to study the consumer

perception and behavior towards online shopping. Survey research was used to gather

data. Finding shows that because of the benefits a consumer can get to the product is the

reason why they switch from a regular shopping store to online shopping store. Findings

shows that the factors that affects the buying behavior of the customers are, convenience

in time, discount prices. While on the other hand it shows on the study that safety is the

primary issues in online shopping.

In the study of Pi and Sangruang (2012) entitled The Perceived Risks of Online

Shopping in Taiwan, the study examine the convenience, financial performance,

physical and physiological, social and time risks on internet sites. There were 222

respondents in the study from Taiwan who had used online shopping sites. Research

model was tested using partial least square approach Findings shows that perceived risk

factors that have an effect on the attitude toward online shopping in Taiwan namely

convenience, physical, performance, and social factors.

Osman (2010) conducted a study entitled undergraduates and online purchasing

behavior which examined the attitude towards online shopping behavior among UPM

students. Self- administered questionnaire was used to gather data from 100 students

who are studying at the University Putra Malaysia (UPM). Pearson correlation was used

to measure the relationship between age, purchase perception, website quality and
 26

attitude towards online purchasing behavior. Finding shows that purchase perception and

website quality were significant relationship with attitude towards online purchasing

behavior. However, findings also shows that there was a significant difference between

attitude towards online purchasing behavior by gender and educational background, that

gender, educational background, web quality and purchase perception influenced the

attitude towards online purchasing behavior.

Delafrooz (2009) conducted a study entitled Factors affecting students’ online

shopping attitude and purchase intention. The study aims to examine the factors

influencing students online shopping attitudes and intentions at Universiti Putra

Malaysia (UPM). Self- administered questionnaire with five-pint likert scale was used to

gathered data. The questionnaire was distributed among 370 students among

postgraduate at Universiti Putra Malaysia (UPM). Descriptive analysis, partial

correlation, Pearson correlation, multiple regression and path analysis were used to

achieved the objectives of the study. The results shows that the online shopping intention

and direction of attitude towards online shopping was positive among the respondents.

It also shows in the study that demographic characteristics were significant and

positively correlated with the online shopping intention. Lastly, finding identified that

trust, attitudes had higher direct effect whereas utilitarian orientation, convenience,

prices, wide selection and income have indirect effect on students online shopping

intention.

According to the study of Lorenzo, Constantinides, Geurts and Gómez (2007)

entitled Impact of web experience on e-consumer responses, researchers identify the

components of web experience and understand the role in online customers decision

making. Online consumer survey was conducted in the study which is held in virtual
 27

shopping environment. The study shows that four out of five components of web

experience namely usability, trust-building, marketing mix, and aesthetics have a

positive and significant effect on the choice of e-vendor however interactivity does not

have any significant effect in this choice. Data also shows that the years of internet usage

affect the importance of consumers attitude towards the web experience as influencer to

their product and online vendors decisions.

Kotha and Rajgopal (2001) conducted a study entitled from surfing to buying:

the role of online customer experience in acquiring and converting web traffic. The

study focused on online customer experience in acquiring and converting traffic to sales.

Survey questionnaire was the tool used to gather data. Finding shows that there is a

positive association between traffic and customer experience quality and online

customer experiences moderates the relationship between web traffic and sales. It also

shows in the results that web navigability and relationship services are the two specific

dimensions that helps attract traffic.

B. Local

In 2016, Tubio, Altaque, Lucero, Tagam, Toling, Veri and Mahinay conducted a

study entitled Consumer perception and purchase behavior on online shopping among

students in Mindanao University Science and Technology. The purpose of the study is to

determine if there is a significant relationship between perception and purchase

behavior on online shopping among students in Mindanao University of Science and

technology. There were 200 respondents in the study and survey questionnaire was used

to gather data, out of the three perception were gauged. Finding shows that respondents

perception and purchase behavior on online shopping are high. Correlational analysis
 28

was conducted to look for significant between their beliefs and behavior. Results also

shows that in order to sustain high perception on online shopping, web developers must

incorporate features such as convenience, security, benefits and leisure. Study also

shows that aside from businessman, entrepreneurs and professionals, students spends

more time on the internet and that will increase the chance of having students as online

shopper.

Lim, Osman, Salahuddin, Romle, Abdullah (2016), Tubio, Altaque, Lucero,

Tagam, Toling, Veri and Mahinay (2016), Maini (2014), Vaghela (2014), Bagga and

Bhatt (2013), Fong (2013), Singh(2013), Osman (2010), Delafrooz (2009) conducted a

study related to Online shopping behavior. Each researchers have their own way to

identify the different factors affecting the buying behavior and intention of the virtual

shoppers

Ghouri (2017), Pi and Sangruang (2012), Lorenzo, Constantinides, Geurts and

Gómez (2007), Kotha and Rajgopal (2001) conducted a study which is related to online

or web experience of the online shoppers that affects their buying behavior. All of the

researchers have different ways to present the factors of web experience that affects the

buying behavior of the customers.

Conceptual Framework

This study is made to investigate the different Web experience on virtual buying

behavior of consumers to selected online shopping website. Past studies about Web

experience are only limited especially on virtual buying behavior that is why this study

employs these variables in its investigation.

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The diagram illustrates the objective of the study, which is to investigate

different web experience on virtual buying behavior of consumers to selected online

shopping website. It shows that in order to know if the web experience affects the virtual

buying behavior of consumers and for the company to strive at its best to compete in the

market they are considering the usage of the following variables.

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Characteristics

of

Online shoppers

 Age

Gender

Educational Attainment

Web Experience

 Aesthetics Problems encountered

 Marketing Mix by the virtual consumers

 Trust Building in their Web Experience

 Interactivity
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 Usability

Implications to Marketing Management

Figure 1. Paradigm of the Study

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Chapter 3

METHODS OF STUDY AND SOURCES OF DATA

This chapter discuss the research design, respondents of the study, methods of

gathering data and statistical treatment of data.

Research Design

The descriptive method design will be used in the study. This design is

appropriate when the purpose of the researchers are to be established. There were

variables that needed to be described. It also looked into personal profile of the

respondents such as age, gender and educational attainment. Descriptive survey is more

realistic than experimental research because it measures a phenomenon it its natural

setting.

Respondents of the Study

The population of the respondents are composed of actual and potential customer

of selected online shopping websites in the Philippines. Actual customer or the customer

who already purchased in online shopping website, these customers are knowledgeable

and has a wide range of interest while potential customers are internet users that have

less internet about online shopping and have not tried to purchase in online shopping.

Survey questionnaire will be distributed online. There will be 150 respondents in the

study.

Methods of Gathering Data

The major instruments used in gathering data was questionnaire. Researchers

used online and printed questionnaire. Aside from questionnaire the researchers used

printed sources such as books and thesis to come up with the related literature and

studies that are essential in broadening the knowledge of the researchers. These will also
 33

guide the researchers to consequently answer the problems concerning the study. Hence,

the internet will also be used to collect more accurate and timely data.

Statistical Treatment

the data gathered were tallied, tabulated and presented on tables for easy analysis

and interpretation, undergo through collection, tallying, tabulation analysis and

interpretation by the researchers.

Frequency counts, percentages and weighted mean were employed in the

presentation of data. The formula was:

∑fx/∑f

Where x is the symbol for the computed weighted mean. The ∑ f x is the sum of

all products of frequency multiplied by the five- point scale used (1-5) divided by ∑ f

the sum of the respondents.

Rating Ranges Equivalent Adjectival

5- 4.45 – 5.00 Very Important

4- 3.45 – 4.44 Important

3- 2.45 – 3.44 Moderately Important

2- 1.45 – 2.44 Slightly Important

1- 1.00 – 1.44 Not Important

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BIBLIOGRAPHY

Carlota Lorenzo, Efthymios Constantinides, Peter Geurts, Miguel A. Gómez (2007).

Impact of web experience on e-consumer responses

Sicilia, Ruiz, & Munuera (2005 ). Web experience

Grimley (2018), Consumer behavior

Mr. Pratiksinh Vaghela (2014). A STUDY ON CONSUMER PERCEPTION

TOWARDS ONLINE SHOPPING

SHIH-MING PI AND JIRAPA SANGRUANG (2012). THE PERCEIVED RISKS OF

ONLINE SHOPPING IN TAIWAN

Cheema, Rizwan, Jalal, Durrani & Sohail, (2013). THE TREND OF ONLINE SHOPPING IN

21ST CENTURY: IMPACT OF ENJOYMENT IN TAM MODEL

CHIZOBA MORAH (2018). Shopping Online: Convenience, Bargains And A Few

Scams

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and-lithuania.html . Factors that affect online shopping in Latvia and Lithuania

DONNA L. MONTALDO (2019). The Pros and Cons of Online Shopping

Yi JinLimaAbdullahOsmanbShahrul NizamSalahuddincAbdul

RahimRomledSafizalAbdullahe (2016).Factors Influencing Online Shopping

Behavior: The Mediating Role of Purchase Intention

 35

Adam heitzman (2015). How Digital Marketing Transformed the Consumer Buying

Process

HO SOO FONG (2013) A STUDY ON CONSUMERS’ ATTITUDE TOWARDS

ONLINE SHOPPING ON PENANG FAMOUS FRUIT PICKLES

Guided Selling blog (2017) digital is changing consumer behavior, can you keep up?.

GEORGE BEALL (2017) 5 ways technology is changing consumer behaviors

Revesencio (2017) the mind of an online shopper: a peek inside ecommerce buying

behavior

Syuhaily Osman (2010) Undergraduates and Online Purchasing Behavior

NARGES DELAFROOZ (2009) FACTORS AFFECTING STUDENTS' ONLINE

SHOPPING ATTITUDE AND PURCHASE INTENTION

Consumers’ Attitude towards Online Shopping Factors influencing Gotland consumers

to shop online

Essays, UK. (November 2018). Literature Review on Online Shopping. Retrieved from

https://www.ukessays.com/essays/marketing/literature-review-of-online-purchase-

intention-marketing-essay.php?vref=1
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Consumers’ Online Experience on Buying Behavior thru Lazada Website.

A Thesis Presented to
The faculty of the College of Business and Accountancy
Tarlac State University
Tarlac City

In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Marketing Management

Presented by:

Rodora Torio
John Iree Ilagan
Angelika Balanay
 37

Kenneth Jay Quitalig