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Santa Barbara National Comprehensive High School

SENIOR HIGH SCHOOL

CHAPTER I
INTRODUCTION

Background of the Study


In this challenging economy, many entrepreneurs are looking on how to promote and
position their businesses and common question is that, should they establish an offline or
online business, or both? However, not only the entrepreneurs are making decisions, yet
consumers themselves are either now taking into consideration whether to purchase goods
online or offline.
Currently, the rise of e-commerce has altered the shopping industry and is continuing
to have an effect on the way consumers obtain goods. The advancement of technology
opened doors of good opportunities to the seller to reach the consumers in much faster, easier,
and in economic way. E-commerce (Electronic commerce) allows consumers to buy directly
goods and services over the internet through a virtual shop. Some of the leading online stores
currently in the Philippines are Lazada, Shopee, Zalora, OXL (formerly Sulit.com), etc.
On the other hand, purchasing of products through traditional market/retail shop is
continuing since years. Retail is the process of selling goods and services to customers
through multiple channel of distribution. Retail stores may be small or big but they mostly
operate in the same line as “purchasing to sale” and these may include department stores,
supermarkets, boutiques, malls and marts. Retail form of business is as old as civilization and
is the most basic form of business.
The number of customers buying products in traditional retail stores continues to
decline as a large majority of consumers shift their shopping activities to various online
platforms. Amazon and eBay (EBAY) have been some of the biggest beneficiaries of this shift.
According to research done last year by analytics firm comScore (SCOR) and UPS (UPS),
shoppers now make 51% of their purchases online, compared to 48% in 2015 and 47% in
2014.
In this contemporary world, consumer’s loyalty depends upon the consistent ability to
deliver quality, true value and satisfaction. Some may go for offline shopping, some for online
and many go for both kind of shopping. While making any purchase decision, consumer should
know the medium to purchase whether online or the offline purchasing. Consumer should
decide the channel for them which can best suit to their need and wants and which can satisfy
them. In this competitive world, how consumer can decide the particular medium for their
purchase of goods is very important to understand in a managerial point of view.

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Along this line, this study was conceptualized to know the purchasing decisions of
educators either traditional retail or e-commerce. Furthermore, the researchers will also
investigate which educators mostly prefer by weighing the cost and benefit of the two
independent variables (traditional retail and e-commerce).

Statement of the Problem


The aim of this research is to determine the purchasing decisions of educators in terms
of traditional retail and e-commerce.
In order to fulfill the stated objective, the study sought to answer the following
questions.
1. What are the frequency of purchasing in traditional retail and e-commerce of
educators?
2. What is the purchasing decision of educators in purchasing products such
as toys, cosmetics, books or CDs, electronic gadget, footwear, clothes, groceries, appliances,
and furniture?
3. What is the purchasing decisions of educators in consideration with the
pricing, quality, time, payment method, availability of products, delivery, sales and discount,
reliance and feedback?
4. Is there a significant difference between tradition retail and e-commerce in
purchasing decision of educators?

Figure 2.1 Conceptual/ Theoretical Framework

(Independent Variable)

Commodities (Toys, Cosmetics, (Dependent Variables)


Books/CDs, Electronic gadget, Purchasing Decision of
Footwear, Apparel, Groceries, Educators
Appliances, and Furniture)
(Traditional
Factors’ Considered (Pricing, Retail
quality, time, payment method, Versus
availability of product, delivery, E-commerce)
sales and discount and reliance)

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Framework Reference
The framework of the study mainly covers aspects on purchasing decision which
affects a person who decides whether to buy in traditional retail or e-commerce. The theories
that have been covered are related to factors which affects the consumers or customers’
decision-making process to engage either traditional retail or e-commerce. This is where the
researchers anchored their study.

In the study of Kotler (2005), it was stated that consumers follow a certain process
before they come up with their purchasing decision. This study later on come up with a theory
which mainly explained the steps in every purchasing situation that the consumers are into,
the Theory of Kotler “Buyers Decision Process”. As showed on the figure below (Figure 2.1
Buyer Decision Process), the process is consisting of five stages; namely need recognition,
information search, evaluation of alternative, purchase decision, and post- purchase behavior.
This theory can be connected to the consumers’ purchasing of product in either traditional
retail or e-commerce.

Figure 2.2 Buyers Decision Process

The first stage or step of the process is the need recognition where in consumers
identify their need as to why they were going to buy a certain product in a specific market
place. Needs are activated by either internal or external stimuli. Internal stimuli have
something to do with the consumers’ normal needs (feeling hunger, thirsty, etc.) while external
stimuli could be a smell that triggers hunger, or an admiration to an object. It’s somehow
represents the needs and wants of the buyer or consumer. (Kotler et. al. 2005) This is the
reason why researchers have come up with the set of commodities or products as one of their
independent variable to test whether the consumers recognize their needs on these things
and most importantly to know where these needs are recognized, in either traditional retail or
e-commerce.

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The second step is information search where in it search the information of the product
needed by the consumer or customer. Information could be obtained through personal
sources, commercial sources, public sources, and experiential sources. Personal sources are
basically the people that the consumer is familiar with in a private manner, such as family,
friends, and so on. Commercial sources are the broad marketing messages that companies
send out in various ways. Public sources are on the other hand media, organizations and
social sites that the consumer can extract information from regarding a specific product. The
information which are searched are link with the different factors affecting the buying attitude
or behavior of the consumer whether to buy the product or not and buy it either in physical
store or online shopping. These factors involved pricing, delivery, brand beliefs, accessibility,
and availability of stocks, risk and reliance. These factors are one of the basis of the
researchers on coming up or rather, on identifying with the purchasing decision of their
respondent.
The third step is the evaluation of alternatives where in the consumers are looking for
other varieties of the product. This stage gives more emphasis on the availability of products
present in a specific market place (physical store or mall or online market/e-commerce).
According to Kotler (2005), there are various decision rule which can help consumers when
selecting an alternative, ranging from careful calculations to impulse or intuition decision. This
means that consumers’ evaluation process is often dependent on the particular situation and
the individual consumer.
The fourth step is the purchase decision which is mainly dependent on the result of the
evaluation process. The consumers decide to buy the product in a certain market place (talking
about traditional or e-commerce) which is more favorable according to the products’ attribute,
convenience, decision rule or brand preference in the evaluation process. And the last step is
the post-purchase behavior which involves further actions base on the consumer’s satisfaction
or dissatisfaction after the product is bought either in offline or online market.
The origin of the theory is far from the present time but is still used by different
researchers until today. The accurateness of the theory is still accepted in the present studies
as what the researcher have been searched and studied.

Research Hypothesis
H (0) there is no significant difference between purchasing decisions of educators
when they are purchasing either through traditional retail or e-commerce.
H (a) there is a significant difference between purchasing decisions of educators when
they are purchasing either through traditional retail or e-commerce.

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Significance of the Study


Findings of the study will be significantly and be of great benefit to the following:

Students. The study will aid their curiosity regarding purchasing decisions of educators
in traditional retail and e-commerce. As the result of this research contains of purchasing
decisions of educators, students in business field could use it as a related literature review
which is in-line on their respective topics.

Businesses. The findings in the study will help marketers or business owners to
compare or differentiate which is better, the traditional retail (physical buying-selling) or e-
commerce (online shopping). This can help them to formulate strategy to make their business
successful in the long run.

Educators. The result of the study will influence other educators whether to choose
traditional retail or e-commerce in purchasing things they want. Also, will give them the insights
about what are the cost and benefits of both traditional retail and e-commerce.

Future Researchers. Results may be serve as a reference for future researches.

Definition of Terms

Traditional Retail
Refers to a traditional street-side business that deals with its customers face-to-face
in an office or store that the business owns or rents. (Investopedia, 2018)
In this study, traditional retail is defined as a way of the respondents in purchasing
products or service in which the researchers would focus on.

E-commerce
Is the buying and selling of goods and services, or the transmitting of funds or data,
over an electronic network, primarily the internet. These business transactions occur either as
business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-
business (Rouse, 2017).
In this study, e-commerce is defined as a way of the respondents in purchasing
products or services in which the researchers would like to focus on.

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Purchasing Decision
It is the thought process that leads a consumer from identifying a need, generating
options, and choosing a specific product and brand. (The Wharton School, 2017)
The researchers define the purchasing decisions as the decisions made by the
respondents in purchasing a product or service either of traditional retail or e-commerce.

Educators
A person such as a teacher or a school administrator who has a job in the field of
education (Merriam-Webster Dictionary, 2018)
The researchers defined educators as the respondents of this study on which they
experienced both traditional retail and e-commerce.

Scope and Limitation of the Study


This research study focused mainly on determining the purchasing decisions of
educators in terms of traditional retail and e-commerce. In this research, the researchers are
going to concentrate on the educators along with the faculty of Santa Barbara National
Comprehensive High School- Senior High School Department (SBNCHS-SHS Department)
to be the domain of the study. In the meanwhile, the population with this respondent will be
100% of the population of educates in SBNCHS-SHS Department, with this, it is equivalent to
50 educators. In addition, the study will be in the span of one full month of getting the
information through surveys. This research covers the School Year 2018-2019.

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CHAPTER II
REVIEW OF RELATED LITERATURE

Review of Related Studies


According to Sa’di Gulistan, “A traveler without a knowledge is like a bird without a
wings.”
This saying has acknowledge that no work can be meaningfully conceived and soundly
accomplish without thoroughly studying what already exist in relation with this. It is the study
of already established knowledge pertaining to the area that enable us to perceive clearly what
is already lighted up in that area and what still remained enveloped in darkness. Through this,
researchers have come up with something to study about which is worth the time and effort.
The extensive literature review has been made in order to gain more knowledge of the
research about the traditional retail and e-commerce. The review clarifies and simplifies the
purchasing decisions whether the corresponding respondent preferred traditional or e-
commerce. In connection with this, the review has involved below an in depth knowledge of
the key factors important to the study.
Choosing between Traditional Retail and through E-commerce became a difficult
decision to make. There are a lot of cost and benefits between traditional and e-commerce
that creates a big decision between these two variables (Shackleton, 2016). In case of offline
shopping, products and services can be used immediately, whereas in case of online
shopping, customers have to wait for the courier company to deliver the product.
Preferences/purchasing decision for shopping online or offline were shown to vary
across products, consumers, and stages of the shopping process. When attributes such as
large selection and shopping quickly were predominant, online shopping was preferred. When
attributes such as personal service and ability to see-touch-handle the product were
predominant, offline shopping was preferred (Junhong Chu et. al., 2010).
M. & I. Levin, J. Weller (2005), for the study two samples of size 199 were used from
a large mid-western American university and an online survey panel. The study found that the
preferences for shopping online or offline were shown to vary across products, consumers,
and stages of shopping experience. When attributes such as large selection and shopping
quickly were predominant, offline shopping were preferred.

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Traditional Retail
Some studies found that the products that consumers feel they need to touch or try on
are products that require a presence or at least purchase within an offline channel. It found
that being able to personally encounter a product prior to purchase is an underlying factor of
the preference for an offline shopping method for products such as clothing. These are the
things that make offline shopping or also known as the traditional retail still alive. (Heinemann
and Schwarzl, 2010).
The ability to see, touch and feel products as well as take items home immediately is
the benefits that take into account of traditional retail (Skrovan, 2017).
It has long been established that the environment and layout of a physical store has
an immense influence on what customers buy. Numerous studies taking place have suggested
that layout is one of the most influential aspects when customers are making a purchase
decision (Larkin, 2015).
But despite of being active in the social networking community as the same time in the
e-commerce world, Filipinos retain “traditional shopping habits”, according to the Reader’s
Digest survey. It also shows that only 17% of the 1000 Filipino respondents changed their
shopping habits, regardless of the rising number of online stores in the last two years. Only
7% of Filipinos trust online transactions regarding brands or products as the survey said. This
only implies that even e-commerce is bringing convenience to everybody, it cannot hide the
howling doubts of the people from the product its offering. (Manila Times Admin, 2013)
Dong-Mo Koo, Ji-Hoon Lee (2011), proposed an inter-relationship among dominance,
energetic and tense arousal, pleasure and their impact on intention. Results from a survey of
406 consumers (217 from offline store customers and 187 online store) demonstrated that
dominance had significant positive or negative effect on pleasure and intension under both
offline and online environment; Effect of dominance on tense arousal was not statistically
significant in an online shopping environment.
Iyer and Eastmen (2014) found that the population of senior who are more literate,
more knowledgeable and who are more aware of the technology and those who have a
positive behavior towards online shopping and internet are more into online shopping. But the
population of senior who are less aware of the internet and the shopping sites are less involved
in the shopping sites because they do not have a positive attitude towards online shopping
rather they are much more interested in offline shopping.
According to the research of Aniket Khatwani (2016), when compared to online
shopping, traditional shopping is a secure option to shop. You know from where does the
things come, nobody can steal your data, even you can feel the desired quality and can set

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the product as simply seeing pictures doesn’t work every time. These things make over online
shopping. Also there is disadvantage that online stores ship within a certain area for free but
many times if you are located outside of city or area you need to pay hefty shipping prices.

E-commerce
The rapid advancements in information and communication technology during the third
industrial revolution of the late 20th century has marked the beginning of a new era in the retail
sector with the introduction of E-commerce. The dawn of the new century witnessed industry,
revolutionizing all areas of online business by bringing in novel opportunities and possibilities.
The worldwide sales of the retail E-commerce sector recorded 2.3 trillion US dollars in 2017,
and is expected to rise around 4.88 trillion dollars by 2021 (Statista 2018). Until the 1960s, the
economic models and thoughts on consumer behavior relied on the assumption of rationality.
It was assumed that consumers were always rational in their purchases and therefore bought
products which gave them maximum satisfaction (Le and Liaw 2017). The modern customer
has a wide range of products to choose from, further complicating the decision-making
process and consumer behavior (Trifu and Ivan 2014).
Costs of e-commerce are used in four dimensions; the dimension security measures
the cost arising from the customer’s perception of insecurity in the online transaction. The
dimension design represents the cost of the customer’s learning to perform the traditional
purchase act in a format other than the physical context. The dimension economy quantifies
the total economic cost of the transaction. Lastly, the dimension time considers the cost of
convenience by measuring the waiting times during and after the transaction.
Chaing and Dholakia (2014) carried out a study in which they examined the purpose
the customer to purchase goods online during their shopping. Mainly there are three variables
in their study those affects the consumer to purchase online or to go offline. Those are the
accessibility features of the shopping sites, the type of the products and their characteristic,
and the actual price of the product. The study revealed that the accessibility and the
convenience of the shopping sites create the intention in the customer to purchase or not.
When there is difficulty faced by a consumer to purchase online then the customer switch to
the offline shopping for the purchase behavior and the consumer face difficulty in offline
purchasing then they go to the online purchasing. After relating both the medium of shopping
the consumer said that the online shopping is more convenient for them and gives more
satisfaction which inspires the consumer to purchase online in the internet.
In the Philippine context, according to a study held in the six Southeast Asian markets, there
are more active online shoppers nowadays compared to a year ago. As what Stuart

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Tomlinson (2015), Philippine Visa country manager, said that E-commerce is becoming a
“new normal” in Southeast Asia, as consumers in the region take to online shopping because
of the variety of goods and services available, competitive pricing and improved delivery
options make the whole process much easier. With the rampant use of smartphones, it brought
online shopping to the palm of our hands. Moreover, though the e-commerce in the Philippine
is still in its nascent stage which makes traditional shopping remains on top in terms of buyers,
it is indeed still growing rapidly.
Base on the consumer research sponsored by Digital Payments firm PayPal and Ipsos,
it is expected that Filipinos will do more on online shopping starting the year 2018. This
conclusion has arisen after the finding on 2017 revealed, it says that Filipino shoppers’ total
online spend for that year was P92.5 billion and it has increased by 32% from the previous
year. The three top reasons are cited through the research. 82% of the respondents said it
was because of the convenience of e-commerce, 52% mentioned the multiple online shopping
platforms available, while 45% said it was because they expect faster shipping of orders. (De
Leon, 2018)
According to Chayapa (2011), the process of making decision are very similar whether
the consumer is offline or online but some major differences are shopping environment, layout
or marketing communication.
All of this “real world” knowledge is now being placed into the e-Commerce world as
your stores website layout can be a major influence on customers purchase decisions. E-
Commerce merchants must make their stores as ergonomically friendly as possible while also
using opportunities to show customer products and information that is inviting and interesting
(Larkin, 2015).
While e-commerce is that of convenience & easiness which states that buying options
are quick, convenient and user friendly with the ability to transfer funds online. Stay open
24*7/365 is the important benefit which consumers can enjoy timings as they can access
websites all the time. Offer huge information that is for consumer to get huge access to
information that is not possible in a physical store. And lastly eliminate travel cost which is now
costumers do not have to travel long distances to reach their desired stores as e-commerce
allows them to visit e-store anytime without traveling (Will, 2014)
With 80% of consumers surveyed proclaiming that pricing is an important factor in their
purchase decision, it’s obvious that E-commerce stores must remain competitive when it
comes to pricing for it can lead people’s rationality. Research and market analysis about who
your competitors are and what pricing they are offering is indispensable information for every

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marketer and manager in E-commerce as it is the key to saying competitive and getting
customers to purchase at your store.
Selvakumar (2014) concentrated on consumer’s perception of the product sold online
and the issues considered important to online shopping. This study was conducted among the
online shoppers at Coimbatore which is in Tamil Nadu state. It is to analyze the impact of
consumer opinion and the attitude. Questionnaire was made to collect the data from the
population; these questionnaires were given to college going students. The total sample size
is 150 respondents. The finding of this study shows that improvement and accessibility
influence the customer’s intention to shop online.
Demery (2010) reports, the advantage of the online channel is that some customers
find it convenient, think that it saves their time, and observe that it is easier to find a particular
item in online store.
Junhong Chu et. al. (2010), explored the moderating effects of households and
products characteristics on brand loyalty and price sensitivity across online and offline
channels for grocery products. Data was collected from one of the five leading grocery chains
in Spain. The study found that the households were more brand loyal and size loyal but less
price sensitive in the online channel than in the offline channel.
In the study of Aniket Khatwani (2016), he come up with a result which leads to know
the different advantages and disadvantages of e-commerce or what we commonly known as
online shopping. With e-commerce there is no driving in circles while looking and digging in
hopes of finding what you need. Stores online offer their full line as well as use warehouses
instead of store fronts—products are easy to locate and can be delivered to your door in just
days and Without driving from store to store the consumer can easily compare and contrast
products. See who offers the best pricing and have more options to choose from. While a
physical store has limited space, the same store on the internet will have full stock. However,
despite of this advantages, the delivery of products is also open for delays. A snow storm in
one place may throw off the shipping system across the board. There is also a chance that
your product may be lost or delivered to the wrong address or places.
Tabatabaei (2009) has explored the opinion of the consumer who are purchasing
online and the consumer who are purchasing from offline market. The objective is to know
why the traditional customer chooses to shop online and what are the factor influence then to
purchase online and what are the factor for them to not use the sites for shopping. He has
done a survey of 264 respondents in a small mall and then those data were analyzed by him.
All the customer of this study is literate and has knowledge on computer and internet. The
survey consists some of the question like demographic profile, computer knowledge and the

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knowledge over the internet. The outcome of the study was that the consumers of online
shopping use to shop online more than one time in a month and the consumer of offline
shopping shop one to five times in a year from shopping sites.
Jush and Ling, (2012) found that shopping environments on the internet may be
doubtful for the majority of online shoppers. Most recognized perceived risks are financial,
product performance, social, psychological and time/ convenience loss. Pew internet and
American life project (2008), stated that attitude of internet users about online shopping are
not entirely consistent. Customers are willing to shop online because it is convenient and a
time-saver, but they perceived sending personal or credit card information over the internet as
a risk.
The changes of consumer attitude over the decade has reigned the retailers dig into
the psychology of the virtual consumers. Huge investment to grasp virtual consumers has
induced the online sellers to go no further towards the understanding of consumer attitude.
Although both government and private sectors have put in much effort to prosper the virtual
shopping platform, traditional store remains as the instinctive choice for majority of consumers.
The consumers tend to listen to verbal recommendations from close families and relatives,
friends or even media before making a shopping decision. The consumers also consider it a
hassle when they faced difficulty to log in into the account, product information provided are
limited and difficult to reach the online retailers by phone (Oracle, 2011).

Conclusion
The review of relevant literature has revealed that the purchasing decisions in regards
whether to choose traditional shopping or e-commerce are affected by different factors and
still depends on the consumer’s attitude, preferences and behavior. Review shows that there
are significant differences between the two variables and it is quite observable with the various
studies related to it. Some of the studies have focused on the switching behavior of the
consumer from one channel to another channel. The literatures reveal that those who are
aware of technology, knowledge, and high income level population, are specially engaged in
the online shopping and those who have the doubt and less literate technology settled in offline
shopping or traditional retail.

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CHAPTER III
METHODOLOGY

This chapter presents the research design that the researchers used and the reason
why this design was chosen. It also includes the data requirements and how the data have
been collected. Also, this chapter discusses the research instrument, procedures, and
statistical data analysis in conducting the study.

Research Design
This study used the quantitative survey approach of conducting a research.
Specifically, it utilized a comparative research design. The main purpose of this research is to
know or to determine the purchasing decisions of educators whether to prefer traditional retail
or e-commerce.
Comparative research essentially compares two groups in an attempt to draw
conclusion. Researchers attempt to identify and analyze similarities and differences between
groups or phenomenon.
In this connection, the researchers have chosen this design in order to identify the
frequency in buying in traditional shop and e-commerce, purchasing products and purchasing
decisions of educators in SBNCHS Senior High School to conclude the difference between
the perception of educators in purchasing through E-commerce and Traditional Retail.

Data Requirements
The study will be using both primary and secondary data. Primary data will be on the
gathered data through the responses of the purchasing decision of educators. Meanwhile,
secondary data will be gathered through electronic journals and similar studies that will be
used to support the process and result of the study.

Data Collection
The researcher used a prepared survey form or a questionnaire to the respondents.
This method enabled the researchers to acquire factual information, consumer evaluation,
purchasing decisions and other information coming out during the survey forms prepared.
Thus, survey method ensured the respondents the quality of the obtained data and increases
the response rate.

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The question was written in the survey form provided and was directly given to the
respondents. The collection of the data was done in the respondent’s workplace in Santa
Barbara National Comprehensive High School- Senior High School Department.

Research Instrument
The gathering of data in this research was done using a validated questionnaire. The
questions are all in a close ended and a recognition type. In this kind of questions, the
respondent was presented set of answers where they have to choose from.
The questionnaire is consisting of four parts, the first part consists of personal
information such as name which is optional, which means the respondent can freely state
his/her name or not. The second, third and fourth parts are the question proper. The second
part includes frequencies of how often the respondents buy through traditional retail and e-
commerce. The third part is a check list that covers products which the respondents prefer to
buy given with the two purchasing channels. The last part of the survey contains purchasing
decisions which will tell the preference of the respondents whether to choose traditional retail
or e-commerce.
The permission to conduct the questionnaire was requested from the office of the
SBNCHS Senior High School. The researchers were the one to conduct the survey throughout
the school’s campus. The questionnaires are retrieved as soon as the respondent answered
it.

Ethical Consideration
The questionnaire was given to the respondent with respect. The questions or terms
in the questionnaire are free from any offending words and any form of discrimination. The
responses are kept by the researchers with firm confidentiality to protect the rights of the
respondent.

Validity and Reliability


Questionnaire of the researchers are basically used as the research instrument. Before
it is being conducted, it undergoes into a thorough validation. Changes have been done in
order to make the questionnaire a better form of instrument.
The researchers have submitted it to a reliable validator and an expert to its field to
see or rather to check if the said instrument is conductible. Some of the comment were noted
and were considered in the final questionnaire.

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Informed Consent
Informed consent was also secured from the respondents, before the start of each
survey, the informants were told about the identity of the researchers, what the study is all
about and the objectives. The role of the respondents was clearly stated.

Data Processing and Statistical Data Analysis Procedure


Using the statistical package for the social sciences (SPSS), descriptive analysis was
used by the researchers to analyze data. Specifically, under the following descriptive statistical
analysis tool:
1. The frequency was used for the second and third part of the survey questionnaire.
This was used to represent the number of observation within a given interval
(Investopedia, 2018)
2. The last part of the survey used non parametric test, specifically the chi-square
test. This chi-square test according to Practical Research 2 Book for Senior High
School (2017), is use to test the difference between the expected and the observe
frequency tested.
Fifty questionnaires were administered and all were retrieved and analyzed.

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CHAPTER IV
PRESENTATION AND ANALYSIS OF DATA

This chapter includes presentation, analysis and interpretation of findings of the study.
The data were analyzed thoroughly with the help of a statistical tool to create well-defined
findings. The data gathered from the respondents were used to determine or identify the
answers to the question on the frequency of purchasing in traditional retail or e-commerce of
educators. The purchasing decision of educators in regards with buying the given commodities
and their purchasing decisions whether to prefer traditional retail or e-commerce.
The following data below were represented by tables and graphs to show the
differences between the given purchasing decisions. In this way, researchers could come up
easily with an extensive analysis and discussion.

Table 4.1. Frequency of Purchasing in Traditional Retail and E-commerce of Educators

Traditional Retail E-commerce


 %  %

Weekly 14 28.0 0 0
Monthly 21 42.0 11 22.0
Twice a month 10 20.0 1 2.0
3-10 times per year 5 10.0 12 24.0
Once a year 0 0 16 32.0
None 0 0 10 20.0

Educators are incorporating in a wide range of traditional retail and e-commerce into
their purchasing decisions and buying habits. The survey shows that most of respondents
buys through traditional retail or physical shops on a monthly basis (42%), weekly basis (28%)
and twice a month (20%). On the other hand, most respondents buy through online shopping
for only once a year (32%), three to ten times per year (24%) and on a monthly basis (20%).
Therefore, given with data above, the respondents are more active on purchasing
through traditional retail rather than buying through online. This answers the first question in
our statement of the problem.

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Table 4.2. Purchasing Products of Educators through Traditional Retail and E-commerce

Traditional Retail E-commerce Undecided


Commodities
 %  %  %

Toys 39 78.0 3 6.0 8 16.0


Cosmetics 37 74.0 6 12.0 7 14.0
Books / CDs 40 80.0 5 10.0 5 10.0
Electronic Gadgets 36 72.0 6 12.0 8 16.0
Footwear 38 76.0 6 12.0 6 12.0
Clothes / Apparel 33 66.0 12 24.0 5 10.0
Groceries 47 94.0 1 2.0 2 4.0
Appliances 43 86.0 4 8.0 3 6.0
Furniture 45 90.0 1 2.0 4 8.0

Every product which is available to every purchasing channels shows how customers
preferred to buy. Through the data above which answers the second question in our statement of
the problem, the top three commodities which the respondents preferred to through traditional retail
where Groceries (94%), Furniture (90%) and Appliances (86%). Meanwhile the top four
commodities that were chosen by the respondents to buy through e-commerce where
Clothes/apparel (24%) and Cosmetics, Electronic Gadgets and Footwear with the same
percentage of twelve (12%).On the other hand, there are some commodities that respondents
preferred to purchase in whether in traditional retail and e-commerce or in other terms is undecided
are Toys (12%), Electronic Gadgets (12%) and Cosmetics (14%).

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Figure 4.1. Purchasing Product: Toys

According to the graph above, the most preferred purchasing channel for toys is
traditional retail which has the percentage of 78% followed by Undecided with a percentage
of 8% which the respondents either choose traditional retail nor e-commerce as their
purchasing channel for toys.

Figure 4.2. Purchasing Product: Cosmetics

As shown at the graph above, it illustrates that most of the respondents preferred
traditional retail which has the percentage of 74% as their purchasing channel for cosmetics
also the respondents neither choose between traditional retail nor e-commerce or undecided
with a percentage of 14% as their purchasing channel for cosmetics. The least choice as their
purchasing channel for cosmetics is e-commerce with a percentage of 12%.

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Figure 4.3. Purchasing Product: Books/CDs

Based on the graph above, it shows that most of the respondents preferred traditional
retail with a percentage of 80% as their shopping channel, on the other hand, 10% of the
respondents preferred online shopping as their purchasing channel.

Figure 4.4. Purchasing Product: Electronic Gadgets

On the illustration shown above, 72% of the respondents preferred traditional retail as
their purchasing channel and their second preferred purchasing channel was e-commerce
which are 12% of the population sampled.

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Figure 4.5. Purchasing Product: Footwear

On the illustration shown above, most of the educators preferred traditional retail as
their purchasing channel for footwear with a percentage of 76%, meanwhile the second
preferred purchasing channel by the respondents is e-commerce with percentage of 12%.

Figure 4.6. Purchasing Product: Clothes/Apparel

According to the graph above, the most preferred purchasing channel for
clothes/apparel is traditional retail which has the percentage of 66%. The respondent’s second
choice for purchasing channel for clothes/apparel is e-commerce with a percentage of 24%

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Figure 4.7. Purchasing Product: Groceries

As shown at the graph above, it illustrates that most of the respondents preferred
traditional retail as their purchasing channel for the commodity of groceries which has the
percentage of 94%, also the respondents neither choose between traditional retail nor e-
commerce or undecided with a percentage of 4% as their purchasing channel for groceries.
The least choice as their purchasing channel for this kind of commodity is e-commerce with a
percentage of 2%.

Figure 4.8. Purchasing Product: Appliances

According to the graph above, the most preferred purchasing channel for appliances
is traditional retail which has the percentage of 86%. The respondent’s second choice for
purchasing channel for appliances is e-commerce with a percentage of 8%.

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Figure 4.9. Purchasing Product: Furniture

Based on the graph above, it shows that most of the respondents preferred traditional
retail with a percentage of 90% as their purchasing channel for furniture, on the other hand,
8% of the respondents preferred online shopping as their purchasing channel for this kind of
commodity

Table 4.3. Purchasing Decisions of Educators through Traditional Retail

Standard Mean
Decision  Rank
Deviation Score
1. Pricing is fair and reasonable. 31 .47852 .6600 III

2. Quality of product is satisfactory. 45 .23990 .9400 I

3. It does not consume time. 16 .46291 .3000 X


4. Payment method is easy.
27 .47852 .6600 III
5. Availability and variety of products are observable.
38 .38809 .8200 II
6. Purchasing products are convenient.
26 .49487 .6000 VI
7. Delivery of product from seller is satisfactory.
26 .50143 .5600 VII

8. There are more sales and discounts. 25 .50143 .5600 VII

9. Reliance on seller. 32 .48487 .6400 V


10. Feedback and recommendation from
27 .50346 .5400 IX
family/friends.

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The table represent the purchasing decisions of respondent towards traditional retail.
The result shows that respondent shopped using traditional retail mainly because the quality
of product is satisfactory (Mean score .9400). The second in ranking is of its availability and
variety of products are observable (Mean score .8200). The third rank are because of pricing
is fair and reasonable and payment method is easy (Mean score .6600). Lastly, the fifth rank
was obtained by reliance on seller (Mean score .6400).

Table 4.4. Purchasing Decisions of Educators through E-commerce

Standard Mean
Decision  Rank
Deviation Score
1. Pricing is fair and reasonable. 19 .49031 .3800 VII

2. Quality of product is satisfactory. 5 .30305 .1000 X

3. It does not consume time. 34 .47121 .6800 I


4. Payment method is easy.
23 .50346 .4600 V
5. Availability and variety of products are observable.
12 .43142 .2400 IX
6. Purchasing products are convenient.
24 .50467 .4800 III
7. Delivery of product from seller is satisfactory.
24 .50467 .4800 III

8. There are more sales and discounts. 25 .50508 .5000 II

9. Reliance on seller. 18 .48487 .3600 VIII


10. Feedback and recommendation from
23 .50346 .4600 V
family/friends.

The table shows the result of purchasing decision of the respondents through e-
commerce. Among in shopping online, first rank is that e-commerce does not consume time
(Mean score .6800). After that, second rank is there are more sales and discount in e-
commerce (Mean score .5000). The third in ranking are delivery of product from seller is
satisfactory and purchasing products are convenient (Mean score .4800). Meanwhile, the fifth
rank was obtained by feedback and recommendation from friend or family and payment
method is easy (Mean score .4600).
The result or findings of the study are somehow similar to the study of the Manila Times
Admin for it shows that even there are lots of online stores right now, it is quite observable that
7 out of ten of the respondents still prefer to go offline or shop traditionally rather than going
online. The results also indicate that there is a significant difference in the purchasing decision
of Educators in purchasing products and in consideration of the given factors whether to
choose traditional retail and e-commerce.

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CHAPTER V
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This study was conducted to know the purchasing decisions of educators whether to
choose traditional retail or e-commerce. Moreover, researchers have made their way to finally
come up with the data needed in the said study. The data were analyzed thoroughly for it aims
to find out if there is a significant difference between purchasing decisions of educators when
they are purchasing either through traditional retail or e-commerce.
A structured questionnaire was used as the instrument to gather data administered by
the researchers themselves to the respondent. Prior to this, a letter was given to the Principal
for the approval of conducting the study.
Comparative design was employed in the study. Frequency distribution and chi-square
were the statistical tool and with the use of SPSS, the gathered data from the conduct of the
survey were process and analyze.
The result shows the following:
1. Majority of the respondents are visiting or going to traditional retail in monthly basis
(42%) and going to e-commerce once a year (24%).
2. The second table pertaining to the second question in the statement of the problem
shows that majority of the educators preferred to buy all the given commodities or products in
traditional retail rather than in e-commerce.
3. The third table shows the factors’ considered why educators go to online or offline
shopping. It reveals that educators prefer traditional retail for the products’ quality is
satisfactory (mean score, 9400), availability and variety of product is observable (mean score,
8200), the pricing is fair and reasonable (mean score, 6600), and reliance on the seller (mean
score, 6400). However, educators prefer e-commerce for it does not consume time (mean
score, 6800), more sales and discount (mean score .5000), purchasing products are
convenient (Mean score .4800), and payment method is easy (Mean score .4600).

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Conclusion

The study reveals that educators are more frequent to shop in traditional retail rather
than e-commerce. This implies that they are more engaged in shopping traditionally or
physically despite of the trend in shopping online. There is an increase demand in shopping
in traditional retail because of the tangibility of the products. Groceries, furniture, and
appliances are the top three products that the educators purchase thorough traditional retail.
Clothes/apparel, footwear, electronic gadgets and cosmetics are much more demanded by
the educators in e-commerce. People more uses the traditional shopping and are less aware
into shopping online.
This study advanced an ideal that uses consumer value perceptions to increase
thought of channel choice. This research also studied from consumer who are into traditional
retail as well as e-commerce to choose aspects from both the channels in terms of pricing,
quality, time, payment method, availability and variety, convenience, delivery performance,
sales and discount, reliance, and feedback. Base on the result showed, the researchers
concluded that educators’ purchasing decisions vary for some reasons. They preferred
traditional retail because the products’ quality is satisfactory, availability and variety of product
is observable, the pricing is fair and reasonable, and there is a reliance on the seller. However,
educators tend to engaged in e-commerce for it does not consume time, there are more sales
and discount, it is convenient, and the delivery of product from seller is satisfactory.

Recommendation

As the result shows that majority of the educators are into traditional retail though other
studies tells that there is a rapid growth in e-commerce which are quite observable nowadays.
The study recommend that businesses should not give their full focus on e-commerce just
because it is a trend. They still need to give proper attention to their offline consumer such as
these educators for they are more engaged into physical buying or shopping rather than
transacting online.
Researchers are not discouraging businesses to use e-commerce for e-commerce is
still a good marketplace for those buyers or consumers who seek for convenience and different
varieties of products. It is only to remind them that traditional shopping or retail is still alive and
there is a lot of consumers out there who likes to do shopping physically for they want to see,
touch, and feel the product before they buy it.

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Researchers are also recommending this topic to other researchers who are also
interested in this area or field. The topic on traditional shopping and e-commerce are very
relevant nowadays and it’s a good thing for researchers to find out more about this. The
researchers are willing to recommend their study to other students who are in line with the
field but we are suggesting that the participants, variables and the area where to conduct the
study should be change accordingly.

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REFERENCES

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empirical investigation. Journal of consumer psychology, 13 (1&2), 177-183.

Chayapa, K. & Cheng, L.W. (2011) Online Shopper Behavior: Influence of Online Shopping
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Chu J., Marta A., Calvo J. & Chintagunta P. (2010),” An Empirical Analysis of Shopping
Behavior across Online and Offline Channels for Grocery Products: The
Moderating effects of Household and Product Characteristics”, Journal of
Interactive Marketing 24. pp 251268.

De Leon, E. (2018). PayPal study reveals more Filipinos are now shopping online. Retrieved
from: http://newsbytes.ph/2018/07/01/paypal-study-reveals-more-filipinos-are-
now shopping-online/

Dong-Mo K., & Lee J. (2011). "Inter- relationships among dominance, energetic and tense
arousal, and pleasure, and differences in their impacts under online vs. offline
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Iyer R. & Eastman J. (2014). The Elderly and their Attitude towards the Internet: The Impact
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Theory and Practice, Vol.14, No.1.Jush and Ling

Khatwani A. (2016). A comparative study of online shopping and traditional shopping.


Retrieved from: http://www.enkivillage.com/e-commerce-advantages-and-
disadvantages

Koufaris M. (2014). Applying the Technology Acceptance Model and Flow Theory to Online
Consumer Behavior, Information System Research, Vol.13, No.2.

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Koufaris, M., Kambil, A., & LaBarbera, P. A. (2001). Consumer behavior in web-based
commerce: An empirical study. International Journal of Electronic Commerce,
6(2), 115–138.

Kotler, P., Wong, V., Saunders, J. & Armstrong, G. (2005). Principles of Marketing (4th Ed.).
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Larkin, J. (2015). E-commerce essentials: What influences a customer's purchase decision.


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Levin, A. M., Levin, I. P., & Weller, J. A. (2005). A Multi-Attribute Analysis of Preferences for
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Shopping Stages. Journal of Electronic Commerce Research, 6(4), 281-290.

Manila Times Admin (2013). Filipinos prefer ‘traditional’ buying to online shopping. Retrieved
from:https://www.manilatimes.net/filipinos-prefer-traditional-buying-to-online
shopping/5312/

PEW Internet and American Life Project (2008). Online Shopping Internet users like the
convenience but worry about the security of their financial information.
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buying behavior and trends.

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Selvakumar, D. (2017). Factors Affecting Post Purchase Regret in Online Shopping. Retrieved
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APPENDICES

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APPENDIX A: LETTER OF APPROVAL

Santa Barbara National Comprehensive High School


SENIOR HIGH SCHOOL
Santa Barbara, Iloilo

Dear Respondents,

Greetings!

We, the Grade 12 students of ABM-A, are currently discussing our research “TRADITIONAL
RETAIL VS E-COMMERCE IN PURCHASING DECISION OF EDUCATORS (A Comparative
Study about the Purchasing Decisions of Educators Towards E-commerce and Traditional in
Santa Barbara)” as a requirement in the subject Inquiries, Investigation, Immersion.
In this connection, we would like to request your good office to ask for the approval to
conduct this research inside the campus, especially the educators Senior High School
Department.

THANK YOU VERY MUCH!

Very truly yours,

JAPETTE P. SOBREVEGA

MA. VICTORIA P. CASQUERO

ZOE PATRISSE S. CONSTANTINO


The Researchers

Noted by:

MRS. CLAIRE S. JUAREZ


Research Adviser

LOURDES A. MONTEFRIO DS. Ed


School Principal

MA. LEAH S. UMADHAY, D.R. Dev


Assistant Principal II – SHS Department

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APPENDIX B: LETTER TO THE RESPONDENTS

Santa Barbara National Comprehensive High School


SENIOR HIGH SCHOOL
Santa Barbara, Iloilo

Dear Respondents,

Greetings!

We, the Grade 12 students of ABM-A, are currently discussing our research “TRADITIONAL
RETAIL VS E-COMMERCE IN PURCHASING DECISION OF EDUCATORS (A Comparative
Study about the Purchasing Decisions of Educators Towards E-commerce and Traditional in
Santa Barbara)” as a requirement in the subject Inquiries, Investigation, Immersion.
In this connection, we would like to request you to be one of our respondents in this research
study. We hope you can help us by answering the instrument sincerely and truthfully.

THANK YOU VERY MUCH!

Very truly yours,

JAPETTE S. SOBREVEGA

MA. VICTORIA P. CASQUERO

ZOE PATRIISE S. CONSTANTINO


The Researchers

Noted by:

MRS. CLAIRE S. JUAREZ


Research Adviser

LOURDES A. MONTEFRIO DS. Ed


School Principal

MA. LEAH S. UMADHAY, D.R. Dev


Assistant Principal II – SHS Department

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APPENDIX: RESEARCH QUESTIONNAIRE

Santa Barbara National Comprehensive High School


Senior High School
Santa Barbara, Iloilo

RESEARCH QUESTIONNAIRE
Cost Benefit Analysis: Traditional Retail Versus E-commerce in Purchasing
Decisions of Educators

Name (Optional): ________________________________________

PART I
Direction: Kindly put a check mark ( / ) in the square before each item. You can put the check
mark twice in the items.

1. How often do you shop from retail stores or mall?


□ Weekly
□ Monthly
□ Twice a month
□ 3-10 times per Year
□ Yearly

2. How often do you shop online?


□ Weekly
□ Monthly
□ Twice a month
□ 3-10 times per Year
□ Yearly

PART II
Direction: Select and put a check mark ( / ) in the box which you prefer to do your shopping of
following commodities.

Traditional
Items E-commerce
Retail

a. Toys

b. Cosmetics

c. Books / CDs

Traditional
Items E-commerce
Retail

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d. Electronic Gadgets

e. Footwear

f. Clothes / Apparel

g. Groceries

h. Appliances

i. Furniture

PART III
Direction: Select and put a check mark ( / ) in the box which corresponds to the following
questions regarding your purchasing decision through traditional retail or e-commerce

Traditional
Question E-commerce
Retail
1. Pricing is fair and reasonable.

2. Quality of product is satisfactory.

3. It does not consume time.

4. Payment method is easy.


5. Availability and variety of products are observable.

6. Purchasing products are convenient.

7. Delivery of product from seller is satisfactory.

8. There are more sales and discounts.


9. Reliance on seller.
10. Feedback and recommendation from family/friends can
affect purchase decision in.

_____________________
Signature

Your answers will be treated with strict confidentiality.


Thank you for your participation.

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APPENDIX D: TIMELINE OF ACTIVITIES

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APPENDIX E: DOCUMENTATION

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