Factors Influencing Consumer Behavior: Contrasting Online and Traditional Retail

Shopping

A Research Paper presented

to the faculty of

Matlang National High School

Senior High School Department

In partial fulfillment of the

requirements in

Practical Research 2

Bongabong, April Angel S.

Mejares, Maryrose Maxinne F.

Pleños, Michelle B.

XII – Harmony

March 2025
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CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

The modern consumer is navigating a dynamic retail landscape shaped by the

rapid rise of online shopping and evolving preferences. While the convenience and
accessibility of online platforms are undeniable, understanding the factors influencing
consumer satisfaction and loyalty in both online and traditional retail remains crucial.
This study aims to shed light on the motivations and preferences that guide purchasing
decisions in the contemporary marketplace, offering insights into the changing dynamics
of consumer behavior in the 21st century.
By examining the interplay of factors such as convenience, price, product
availability, social influence, and personal values, this research seeks to identify the key
drivers of consumer choice in both online and brick-and-mortar settings. The findings
will provide valuable information for businesses seeking to optimize their strategies in
the face of evolving consumer preferences and technological advancements.

Background of the Study

Online shopping is becoming more and more popular in today's consumer landscape
due to both changing consumer preferences and technology advancements. With the
goal of comprehending the preferences and motives of guiding purchase decisions in
the contemporary marketplace, this study explores the variables influencing consumer
behavior in traditional and online retail environments. With the goal of examining the
critical elements that influence customer satisfaction and loyalty, this study—which was
carried out among Grade 11 GAS students at Matlang National High School—aims to
offer insightful information about the changing dynamics of consumer behavior in the
21st century.
 While online shopping offers convenience and accessibility, a significant gap
exists in understanding the factors that drive consumer satisfaction and loyalty in both
online and traditional retail settings. While research has explored individual aspects of
online and offline shopping, a comprehensive analysis that contrasts the key drivers of
consumer choice in these two distinct retail environments is lacking. This study aims to
bridge this gap by examining the interplay of various factors, including convenience,
price, product availability, social influence, and personal values, to identify the key
drivers of consumer choice in the modern retail environment.
The convenience and accessibility of online shopping have revolutionized the
way consumers access products worldwide (Reddy & Jaya Laxmi, 2014). Research by
Rungsrisawat et al. (2019) highlights the significance of perceived benefits and
psychological factors in influencing online buying behavior, emphasizing the importance
of trust and perceived value in online transactions. Furthermore, studies by Andrews
and Currim (2004) and Kennedy and Coughlan (2006) suggest that traditional retailers
can enhance their competitiveness by incorporating online platforms, offering customers
a multi-channel experience and leveraging the benefits of online marketing and
fulfillment services.
Grade 11 GAS students were chosen as respondents for this study, as
observations indicate that students in this age group tend to favor online shopping over
traditional retail methods. Understanding the needs and wants of customers is deemed
essential for building lasting relationships and fostering customer loyalty (Pant, 2014).
Studies by Dauboniene and Guleviciute (2015), Uzun and Poturak (2014), and sameeha
M.S.F.I and U.L (2021) highlight the key factors influencing online shopping behavior,
including lower prices, wider product choices, convenience, trust, and product quality.
Uzun and Poturak (2014) further emphasize that convenience and trust are the most
crucial variables affecting consumer satisfaction in online shopping, followed by price
and product quality. However, the act of shopping extends beyond mere economic
transactions. Falk and Campbell (1997) challenge the traditional view of consumption,
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arguing that shopping plays a vital role in shaping personal identity and social action,
portraying it as a complex cultural phenomenon. This study aims to provide a
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comprehensive understanding of the factors influencing consumer behavior in both
online and traditional retail settings, contributing to a deeper understanding of the
evolving consumer landscape.

Statement of the Problem

This study aims to investigate the impact of online shopping on consumer
behavior among Grade 11 GAS students at Matlang National High School. It seeks to
address the following questions:
1. What are the key factors that influence Grade 11 GAS students'
purchasing decisions in both online and traditional retail settings? How do these factors
differ in their impact on each environment?
2. How do factors such as convenience, price, product availability, social
influence, and brand loyalty affect students' online shopping choices? How do these
factors compare to their influence on traditional shopping habits?
3. What role does technology, customer service, and the overall shopping
experience play in shaping students' online and traditional shopping preferences?
By addressing these questions, the research aims to provide a comprehensive
understanding of the factors that drive consumer behavior in the evolving retail
landscape, particularly among a generation that has grown up with access to both online
and traditional shopping options. The findings will offer valuable insights for businesses
looking to effectively target and engage this demographic.

Hypothesis
Null Hypotheses (H0):
H0-1: There is no significant difference in the preference for convenience, a
wider range of products, and competitive pricing between Grade 11 GAS
students who primarily shop online and those who primarily shop at traditional
retail stores.
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H0-2: There is no significant difference in the preference for personalized

service, the physical experience of products, and social interaction between
Grade 11 GAS students who primarily shop online and those who primarily shop
at traditional retail stores.
H0-3: The impact of social media and peer recommendations on purchasing
decisions is not significantly different between Grade 11 GAS students who
primarily shop online and those who primarily shop at traditional retail stores.
Alternative Hypotheses (H1):
H1-1: Grade 11 GAS students who primarily shop online show a stronger
preference for convenience, a wider range of products, and competitive pricing
compared to those who primarily shop at traditional retail stores.
H1-2: Grade 11 GAS students who primarily shop at traditional retail stores
prioritize aspects such as personalized service, the physical experience of
products, and social interaction more than those who primarily shop online.
H1-3: The impact of social media and peer recommendations is notably greater
among Grade 11 GAS students who primarily shop online than those who prefer
traditional retail stores.

Conceptual Framework of the Study

The conceptual framework shows how the presence of online shopping options
can influence consumer behavior in both online and traditional retail settings. The idea is
that by offering a wider range of choices, convenience, and accessibility, online
shopping can impact how consumers make purchase decisions in both online and
brickand-mortar stores.
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Presence of online Consumer Consumer

shopping options Perceptions and
Behavior
Preferences

Figure 1: Research Paradigm

This conceptual framework suggests that the presence of online shopping options
(independent variable) directly influences consumer perceptions and preferences
(mediating variable) for both online and traditional retail. This, in turn, affects consumer
behavior (dependent variable) in both settings, leading to changes in purchasing
decisions, brand loyalty, and overall shopping experiences.

Theoretical Framework
1. Theory of Planned Behavior (Ajzen, 1991): This theory suggests that behavior
is influenced by attitudes, subjective norms, and perceived behavioral control. It
can be applied to understand how consumers' attitudes towards online and
traditional shopping, social norms, and perceived control over their purchasing
decisions influence their choices.
2. Social Comparison Theory (Festinger, 1954): This theory suggests that
individuals compare themselves to others to evaluate their own abilities,
opinions, and behaviors. It can be applied to understand how consumers may
compare their online and traditional shopping experiences to those of others,
influencing their preferences and decisions.
3. Value-Based Consumption Theory (Solomon, 1983): This theory suggests
that consumers make purchase decisions based on their values and beliefs. It
can be applied to understand how consumers' personal values, such as
convenience, price, or ethical considerations, influence their choices between
online and traditional shopping. - Trust in Online Environments (Gefen, 2000):
This theory examines the factors that influence trust in online environments,
such as perceived security, privacy, and reliability. It can be applied to
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understand how consumers' trust in online retailers and platforms influences
their willingness to make purchases online.

Scope and Delimitations

This study examines the factors that affect consumer behavior among Grade 11
GAS students at Matlang National High School, specifically comparing online and
traditional retail shopping. A representative sample of 10 students from each section of
Grade 11 GAS will be selected.

The research will be confined to the current academic year and will focus
exclusively on the experiences and viewpoints of Grade 11 GAS students at Matlang
National High School. It will investigate factors like convenience, product variety, pricing,
personalized service, tangible product experience, social interaction, and the impact of
social media and peer recommendations. However, the study will not explore specific
brands or products purchased, nor will it consider the financial aspects of consumer
behavior, such as budgeting or spending habits.

Significance of the Study

This research on the factors influencing consumer behavior in online and
traditional retail settings holds significant value for various stakeholders:
Educators: The findings will provide educators with a deeper understanding of
how students make purchasing decisions, particularly in the context of the evolving retail
landscape. This knowledge can be used to develop more effective teaching strategies
and classroom discussions that address the unique challenges and opportunities
presented by online and traditional shopping.
Students: The study will provide students with a better understanding of the
factors influencing their purchasing decisions. This knowledge will empower them to
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make more informed choices, ensuring they are getting the best value for their money
and finding products and services that best meet their needs.
School Administrators: The results of this study can inform school policies and
decisions regarding instructional strategies and professional development programs. By
identifying effective teaching methods, the administration can allocate resources more
efficiently to support student achievement.
Future Researchers: This study lays a foundational framework for subsequent
research on consumer behavior and its impact on student learning and development. It
opens avenues for further exploration into how different factors influence purchasing
decisions and how these decisions can be optimized to enhance educational outcomes.

Definition of Terms
The following terms are defined for purposes of clarity in this research.
Consumer Behavior: The study of how individuals make decisions about buying,
using, and disposing of goods and services. It encompasses factors that influence
consumer choices, such as personal values, social influences, and marketing strategies.
Online Shopping: The process of purchasing goods or services over the
internet. This includes activities like browsing online stores, comparing prices, and
making transactions through e-commerce platforms.
Traditional Retail: The process of purchasing goods or services in physical
stores. This involves visiting brick-and-mortar establishments, interacting with sales
staff, and physically examining products.
Consumer Satisfaction: The level of contentment a consumer experiences after
purchasing and using a product or service. It is influenced by factors like product quality,
price, and customer service.
Consumer Loyalty: The tendency of consumers to repeatedly purchase goods
or services from a particular brand or retailer. It is often driven by positive experiences,
brand preference, and perceived value.
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Convenience: The ease and speed with which consumers can access and
purchase products or services. It is a key factor influencing consumer choices between
online and traditional shopping.
Price: The cost of a product or service. It is a significant factor influencing
consumer purchasing decisions, often leading to price comparisons and value-formoney
considerations.
Product Availability: The range and availability of products or services offered
by a retailer. It refers to the variety and accessibility of goods or services available to
consumers.
Social Influence: The impact of social interactions and relationships on
consumer behavior. It includes the influence of friends, family, social media, and peer
groups on purchasing decisions.
Personal Values: The beliefs and principles that guide an individual's choices
and behaviors. These values can influence consumer preferences for specific products
or services, ethical considerations, and overall shopping habits.