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“CONSUMERS`BEHAVIOR ON ONLINE AND TRADITIONAL SHOPPING IN

DAVAO CITY”

A Quantitative Thesis
Presented to
The Faculty of the Senior High School Department
Joji Ilagan Career Center Foundation Inc.
Gov.Chavez St.,Davao City

In Partial Fulfillment
Of the Requirements for the Subject
APPL 3B-Practical Research 2

Nikka L. Miflores
Cherry Jane J. Murcia
Kaith Ira F.Sisbreno
Collin B.Tumpag
Allyssa Lynne G. Velasquez

DECEMBER 2019
ii

APPROVAL SHEET

This thesis entitled “CONSUMERS` BEHAVIOR ON ONLINE AND TRADITIONAL


SHOPPING IN DAVAO CITY”, prepared and submitted by Nikka L. Miflores, Cherry
Jane J. Murcia, Kaith Ira F.Sisbreño, Collin B. Tumpag, Allyssa Lynne G. Velasquez,
in partial fulfilment of the requirements for the Practical Research 2, has been
examined and is hereby recommended for approval and acceptance.

Ms. Rachelle M. Gavino


Adviser

PANEL OF EXAMINERS

APPROVED by the Panel of Examiners on Oral Examination with a grade of ____

DR. MCWINNER YAWMAN


CHAIRMAN

MR. EDWIN ACAIN, MAEd MR. KRISTIANNE GEM JOQUIÑO𨔭


Member Member

ACCEPTED in partial fulfillment of the requirement for the Practical Research 2.

Oral Presentation: _____

SALLY R. REYES, MAEd


Corporate Dean
December 2019
iii

ACKNOWLEDGEMENTS

The success of this research project give thanks to the help of various

individuals, without them this research would not have met the objectives of the

study. The researchers wish to extend their sincere gratitude and appreciation to the

following for giving precious contributions towards the completion of this research.

To our loving parents, for their guidance, understanding, moral and financial

support, providing the space to work with and most of all their encouragement.

To the respondents, for their participation, cooperation and time that helped us to

complete our research.

To our research adviser, Ms. Rachelle Gavino, for monitoring and for

constantly encouraging the researchers in this endeavor, for her patience,

motivation, enthusiasm and for guiding us throughout our research work and who

have been generous in sharing her ideas and knowledge with us in making this

research a better one.

And also to our panel of examinees Dr. McWinner Yawman, Mr. Edwin

Acain and Mr. Kristianne Gem Joquiño who gave their time and suggestions to

make this work better. The researchers truly salute to their expertise allowing us to

get the necessary information we need to make this research impossible.

And most especially to our God, for giving us wisdom, strength, support and

knowledge in exploring things, for guidance in helping surpass all the trials that the

researchers encountered and for giving the researchers the determination to pursue

the study as well as good health in constructing this research work.


iv

NAME: MIFLORES, NIKKA L.

MURCIA, CHERRY JANE J.

SISBRENO, KAITH IRA F.

TUMPAG, COLLIN B.

VELASQUEZ, ALLYSSA LYNNE G.

TITLE: CONSUMERS` BEHAVIOUR ON ONLINE AND TRADITIONAL SHOPPING

ABSTRACT

The study dealt with the Consumers` Behavior on Online and Traditional

Shopping. This study is a non-experimental quantitative research design

specifically descriptive comparative. This design seemed to be the most

appropriate research design to be used since the study aimed to determine

significant differences in the respondents` perceive consumer behavior

between online and traditional shopping. The respondents were composed of

(100) who are living in Davao City. The primary data gathering used was a

survey questionnaire to determine their buying behavior in online and

traditional stores. The result showed that the respondents` overall perceived

level of online and traditional consumer behaviour is high. All four indicators of

consumer behavior; quality, price, time, and risk avoidance and

trustworthiness were also described to be high. Significant difference was

established between respondents` overall perceived level of consumer

behaviour when analyzed according to shopping online or shopping the

traditional way. Significant differences were also noted in the respondent’s

perceived level of consumer behavior indicators quality, time, risk avoidance

and trustworthiness but not on indicator price.


v
TABLE OF CONTENTS

TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENT iii

ABSTRACT iv

TABLE OF CONTENTS v

LIST OF TABLES vi

Chapter

1 THE PROBLEM AND ITS SETTING

Background of the Study 1

Statement of the Problem 2

Research Objectives 3

Theoretical and Conceptual Framework 4

Hypothesis 6

Scope and Delimitation of the Study 6

Significance of the Study 6

Definition of Terms 7

2 REVIEW OF RELATED LITERATURE 8

3 METHODOLOGY

Research Design 18

Research Locale 18

Respondents 19

Research Instruments 19
Data Gathering Procedure 20

Treatment of Data 21

4 PRESENTATION AND ANALYSIS OF FINDINGS

Demographic Profile of Respondents 22

Perceived Level of Consumer Behavior 25

on Online and Traditional Shopping

5 SUMMARY, CONCLUSION, AND RECOMMENDATION

Summary 36

Conclusion 37

Recommendation 37

REFERENCES 38

APPENDICES

A. Survey Questionnaire 39

B. Letter to the Validators 40

C. Expert Validation Sheet 41

D. Summary on the Ratings and Comments 42

of Experts as to Validity of the Questionnaire

CURRICULUM VITAE 43
1

CHAPTER 1

INTRODUCTION

Background of the Study

The increase in technology provides good opportunities to the seller to reach

the customer in much faster, easier, and in economic way. In this world, customer`s

loyalty depends upon the consistent ability to deliver quality, value and satisfaction.

While making any purchase decision consumer should know the medium to

purchase whether online shopping or the offline shopping. An understanding of how

consumers make purchase decisions and what they value in products provides

companies of information that they can use to develop attributes that represent the

consumers’ expectations.

In the study conducted by Anapa Naveen Kumar (2015) in the Institute of

Technology Warangal in India, it was found that online shopping is only at its growth

stage. It is most prominent among the people between the age group of 18-28.

However the rate at which shopping is done is very low. The main factors that are

pulling back the consumers to shop online are lack of touch and feel experience and

resistance to change.

According to a study by digital research and consulting firm, Research and

Tech Lab (2018), Filipino consumers still prefer shopping in brick and mortar stores

over online platforms, favouring the physical appeal of products despite the

convenience of online purchases. RTL noted that Filipinos feel more assured when

they examine the products before checkout, while being able to take the item

immediately after payment gives them peace of mind (Francia, 2018).


2

Due to increasing amount of competition in both online and traditional stores, we will

find out the level of the buying behavior and the factors affecting the purchase

decision of consumers in Davao City that will help them to decide wisely in

purchasing products whether in online or traditional stores.

Statement of the Problem

This study was conducted to determine the behavior of consumers in Davao City

when purchasing products on online or traditional stores. This study answered the

following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Gender

1.2 Age

1.3 Sector

2. What is the level of consumers` behavior on online shopping in terms of:

2.1 Quality

2.2 Price

2.3 Time

2.4 Risk Avoidance and Trustworthiness

3. What is the level of consumers` behavior on traditional shopping in terms of:

3.1 Quality

3.2 Price

3.3 Time

3.4 Risk Avoidance & Trustworthiness

4. Is there a significant difference between respondents` level of consumers`

behavior on online shopping and traditional shopping?


3

Research Objectives:

This study aims to find out the buying behavior of the consumers when

purchasing in an online or traditional stores, specifically the objectives are:

1. To describe the level of respondents` level of consumer behaviour on online

shopping

2. To describe the level of respondents` level of consumer behaviour on

traditional shopping

3. To determine significant differences between consumers` behaviour on

online and traditional consumer groups

Theoretical Framework

The Decision Making Theory was examined and modified by Nicholas

Bernoulli and Oskar Morgenstern but it originate about 300 years ago. Consumer

decision making process involves the consumers to identify their needs, gather

information, evaluate alternatives and then make their buying decision. The

consumer behavior may be determined by economic and psychological factors like

social and cultural values. The theory was based on the expectation of decision

outcomes which was a cognitive process. Later the theory was modified with the

addition of value and satisfaction. In addition Allen Shocker explains the complexity

and steps which involve in decision making. Richarme, M. (2005) stated that degree

of involvement is another important factor while looking and making decision.

Researchers also proved that the marketing activities have huge impact on

consumer’s psychology which helps to take decision.


4

Consumer behaviour is a psychological function which involves the customer

to undergo the identification of their needs, searching methods to fulfill the needs

and make purchase decisions accordingly. The process can also be described as

collecting, interpreting, making plans and executing it for successfully buying the

desired product (Lars Perner, 2008). The behavioral approach of the consumer is

highly dominated by their psychology.

The first model of consumer decision of making process was developed in

1963 by Howard and later edited in 1969 which has become the current “theory of

consumer behavior”. The updated model provides an integration among the several

psychological, social, and market pressure on the buyer’s choice and information

(Howard and Sheth, 1969).

Post -purchase
Problem Information Alternatives Purchase
decision
Recognition Search Evaluation Decision
evaluation

Figure 1: Consumer Decision Making Process


5

Conceptual Framework

Presented in figure 1 is the conceptual framework of the study. The study is a

one variable study which is the consumers` behavior. The framework shows

difference in perspectives in consumer behavior among respondents when analyzed

according to their shopping preference.

Consumer Behavior

- Quality
- Price
- Time
- Risk Avoidance &
Trustworthiness

Shopping Preference

- Online
- Traditional

Figure 2: Conceptual Framework of the Study


6

Hypothesis

HO1: There is no significant difference between consumers` behavior on online

shopping and traditional shopping

Scope and Delimitation of the Study

This study will focus on the consumers of Davao City. The research will be

composed of (100) respondents. The primary data gathering that will be used is a

survey questionnaire to determine their buying behavior in online and traditional

stores. This study is delimited to consumers who are living in Davao City.

Significance of the Study

The finding of this study will provide valuable information to beneficiaries in the

following contexts:

Store marketers. Results of the study may provide online and traditional store

marketers with new relevant information and knowledge that could lead to the

improvement of their store services in terms of quality, price, time, and risk

avoidance and trustworthiness.

Consumers. The result of the study will aid them to have a better understanding on

the pros and cons of conducting online and traditional shopping.

Students. Findings of the study will provide them some new ideas and insights

regarding the importance of quality, price, time, and risk avoidance as consumers

basis in conducting their shopping activities

Future researchers. Results of the study may serve as a baseline for future similar

research to be conducted.
7

Definition of Terms

Consumer behavior. In this study, it refers to the respondents buying behavior in

terms of quality, price, time, risk avoidance and trustworthiness. It will be measured

as very high, high, average, low and very low

Online shopping. In this study, it refers to the manner on how respondents conduct

their shopping activities in online manner

Traditional shopping. In this study, it refers to the manner on how respondents`

conduct their shopping activities in traditional physical store shopping


8

CHAPTER 2

REVIEW OF RELATED LITERATURE

Consumer behavior is the study of how individual customers, groups or

organizations select, buy, use, and dispose ideas, goods and services to satisfy their

needs and wants. It refers to the actions of the consumers in the marketplace and

the underlying motives for those actions. Marketers expect that by understanding

what causes the consumers to buy particular goods and services, they will be able to

determine – which products are needed in the marketplace, which are obsolete, and

how best to present the goods to the consumers (Chand, 2014).

Online Shopping

Nowadays, popularity of online shopping has been rising rapidly among

consumers and it is becoming part of their lifestyle. The usage of internet as a

communication and transaction medium in customer markets is increasing fast

(Castells, Chadwick, Doherty & Hart, 2000).

In a study entitled “Comparative Study of Online and Offline Shopping”,

Chaing & Dholakia (2014) carried out a study in which they examined the purpose of

the customer to purchase goods online or to go offline. Those are the accessibility

features of the shopping sites, the type of 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 are 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.


9

Kambil (1995) revealed that the use of internet and related technologies has

reduced the cost and giving boost to e-commerce and its productivity. Billard (1998)

concluded that e-commerce is rapidly increasing on the internet and companies are

offering many facilities as an internet-shopping basket. Li & Zhang (2002) explained

five antecedents of customers` satisfaction i.e. logistical support, technological

characteristics, information, homepage presentation and product characteristics

which have been found more appropriate for online shopping. However, Chung

&Paynter (2002) stated that consumers are concerned about the privacy issue which

is limiting the use of internet. Sharma (2008) found that the reliability is the most

pertinent factor affecting online purchase decisions of consumers.

Traditional Shopping

In the traditional way of shopping the vendor and the store are very important.

The store gives the consumer the possibility to compare, orientate and get

information about a product. The physical store and its vendors are therefore very

important, because they need to have knowledge, skills, products, and services all at

one place. Important factors are the shops location, contacts, and assortment. When

a physical store meets these qualifications, it will be successful. But when customers

are going to buy products another way the role of the physical store will change, “and

that is exactly what is happening in the retail market right now (Molenaar,2011).

Chandan A. Chavadi and Shilpa S. Koktanur (2010), tried to find out the various

factors driving customers towards shopping malls and consumer buying response for

promotional tools. They found four major factors that drive the customers towards

the shopping malls. Those factors are product mix, ambience, services and

promotional strategies. Customers consider fast billing, parking facility and long

hours of operations as prime services. Mittal and AnupamaParashar (2010)


10

explained that irrespective of area, people prefer grocery stores to be nearby,

product assortment is important for grocery. Ambience of the grocery stores has

been perceived differently by people of different areas and prices are equally

important for all grocery. Perception and preference towards importance of service

was also different across different areas Hazra and Srivastava (2010), found that

firms are using service enhancement and are developing a range of techniques to

measure service quality improvement.

Factors Influencing Consumers` Purchase

In a research entitled “E-Commerce Factors Influencing Consumers` Online

Shopping Decision”, Verma & Jain (2015), conducted a research on defined

population and sought to identify certain features of people making purchases online.

Six factors were distinguished: preference for being an advanced user, a confident

user of latest in information technology, using it as tool for knowledge exploration,

the ability to assess behavior of a programme, an efficient end user, and knowledge

of hardware.

Another important research of shopping online factors was conducted using a

meta-analysis in order to integrate the findings of previous researches and to provide

a more detailed framework of online shopping behavior, based on the patterns of

personality traits, perceived risk, and technology acceptance. The researched

showed that important factors of online shopping were an attitude to online shopping

and a change of customers` attitudes toward making online purchases (Ching, Ke&

Wu, 2015).

Exploratory factor analysis identified four factors, namely anxiety, ease of use,

usefulness and price, as the determinants of shopper buying behavior online.


11

Anxiety is the most important factor in online shopping. The next important factor is

ease of use. Price, though an important factor, does not influence shoppers as the

other variables (Panda &Swar, 2014).

As an important factor of shopping online can be defined price and

recommendations of other consumers. Kang Lo, et al. (2013) analyzed the

phenomenon in which the consumer expects the prices of products and services on

the Internet to be lower than in traditional shops. Empirical results have shown that

consumers expect the similar prices in all online shops but do not compare price in

online and traditional stores. It can be assumed that another important factor of

shopping online is similar prices in all online shops. Price as important phenomenon

of online shopping has also been analysed by Lo, et al. (2014), whose findings show

that consumers perceive online retailers` overhead costs as lower than store-based

retailers` overhead costs.

Sam & Sharma (2015), explores the factors affecting consumers` decision to

shop online, and how the decision can be affected by product type. The results

showed that an important factor influencing the consumer`s decision to buy online is

an availability of product information on websites.

Quality

Quality refers to the physical features of a product a consumer evaluates. It is

a valid value construct, result of an evaluation process which is accomplished

through purchase (Heinonen, 2004). The consumer forms a perception of the seller’s

image, at times based on reviews of transactions carried out by others. In the past

due to the absence of online channels, consumers depended on their acquaintances

to ascertain the quality of traditional stores. At present online images help the
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consumer to evaluate and compare the seller’s product. Whereas in the offline

environment, consumers can physically evaluate the product and make decisions.

Over time these purchase decisions help the consumer to form mental images about

different sellers. Based on these images the consumer forms an opinion about their

reputation which further helps him in his future decision processes (Trenz, 2015).

Cost

Cost being the price a consumer pays to acquire a product. Today due to the

availability of a wide range of shopping and price comparison tools, consumers can

compare purchase options and buy products at the lowest offer (Andrews et al.,

2007). For consumers to acquire a product it is essential that value exceeds price

(Anderson, Narus and Narayandas, 2009). However, some cost structures apply to

certain channels through which the consumers shop. Online channels involve

shipping and handling costs, absent in the case of offline stores which may require

additional cost in the form of travel time and expense incurred to travel (Trenz,

2015).

Consumers try to maintain certain perceptions of price in different channels

which invariably tends to influence their purchase journey. At times, it reduces their

risk related to the acquisition of the product (Baker et al., 2002; Noble, Griffith and

Weinberger, 2005).

Time

Time is an important factor utilized to purchase a product and it is also an

important factor in selecting the optimum channel. The buyer - seller relationship is

dependent on the physical distance in the offline channel, but in the online channel, it
13

depends on technological capabilities (Trenz, 2015). In the offline environment, time

is spent travelling to the brick-and-mortar store, locating the place where the

products are displayed and kept, and finding a parking space (Mittal, 2013). In the

case of online environment, time is spent locating a product among the various

online shops and finalising the transaction. Online stores tend to serve consumers at

their convenience (Kim, Park and Pookulangara, 2005). These time-conscious

consumers are looking for opportunities and ways to use their time in the most

efficient way (Kleinen, Ruyter and Wetzels, 2007).

Trust

Trust is a highly desirable trait though elusive in nature, but a very crucial

constraint in the online transactions (Mittal, 2013). Consumers usually do not know

the vendor and need to share their personal and financial information. This lack of

personal contact leads to issues such as mistrust and low confidence, creating a

negative influence on consumers shopping decision (Yu and Wu, 2007) and at times

even dissuading them. In the traditional stores, trust at times is easy to acquire due

to the personal contact with the vendor. Also, in the case of online channels, there is

a temporal and physical separation between the transaction and receiving

gratification, which is instantaneous in the case of traditional stores. Though in

recent times, online shopping seems to provide more satisfaction to consumers. But

still, some consumers feel uncomfortable and uncertain while buying online due to

issues like privacy, security and reliability of the system (Kim, Ferrin and Rao, 2008;

Trenz, 2015).
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Consumer Behavior

Consumer behavior consists of all the actions taken by consumers related to

acquiring, disposing and using products and services. Examples of consumer

behaviors include buying a product or service, providing word of mouth information

about a product or service to another person, disposing of a product and collecting

information for a purchase (Mowen and Minor, 2001).

Consumer Perspectives

Consumer behavior can be defined from two different perspectives. First, the

human thought and action and second a field of study human inquiry that is

developing an accumulated body of knowledge. If we think of a consumer

considering the purchase of a new phone, consumer behavior can be thought of as

the actions, reactions and consequences that take place as the consumer goes

through a decision-making process, reaches a decision and then puts the product to

use (Babin and Harris, 2012).

Consumer Goals

The agreeable polar extreme represents the life goals or the preferred life

vision. Leymore (1975) argues that consumer advertising should strongly link its

appeals to such goals on the ground that effective advertising must always offer.

However, obliquely the possibility of enhancing the target audience’s chances of

achieving life goals. Advertising acknowledges this by showing how the product

enhances the “Good Life”. It is one of the reasons that advertising focuses on

consumer experiences and satisfactions with the product rather than on the product

itself from the book of “Why do People Buy?” in 1987.


15

Consumer’s Personalities

The psychology of the consumer involves both cognitive and affective

processes according to the book of “Consumer Behavior” in 2012. The term

cognition refers to the thinking or mental processes that go on as we process and

store things that can become knowledge. Affect refers to the feelings that are

experienced during consumption activities or that are associated with specific

objects. Every consumer has the certain characteristics and traits that help define

him or her as an individual. We refer to these traits generally as individual

differences (Babin and Harris, 2012).

Nature of Consumer Wants

Wants express goals in the sense that we can see the preferred life vision in the

want itself without the inference process that would be needed if wants were simply

means to goal attainment (Taylor, 1974). A person’s collective wants are a

disposition toward a certain lifestyle and the preferred life vision. If consumer are free

to choose, they will choose only that which is wanted or likely to be wanted

(Shaughnessy, 1987).

Communication

Communication is essential for widespread acceptance of innovation.

Communication enables marketers to promote their brands and thus the sell their

products or service. Without communication channels consumers would continue

largely unaware of new goods and services available in the market place (Hanna

and Wozniak, 2001).


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Arens (2004) stresses the importance of finding a common language for

communication, where the study of consumer behavior enables marketers and

companies to understand their consumers and to keep them interested in their

offerings. The importance of understanding consumer behavior is more specifically

attached to; opportunities in the market, selection of target, the marketing mix, and

sending appropriate messages. The aim of learning about consumers‟ buying

behavior is, from a business perspective; to be able to more effectively reach

consumers and increase the chances for success (Sargeant & West, 2001).

Consumer’s Decision Making

There are three reasons that influence the consumer’s decision making. First is

Sociologically, your buying decision may have been influenced by your family, even

seeing the brands your friends prefer affects your decision and social class to which

you belong may have determined to some degree. Second psychological, you may

remember a television commercial for the brand you purchased. Perhaps the

advertising appeal used to persuade you to buy. The last reason is Product attributes

and the Buying Environment, it may affect your decision as well. Maybe the brand

you choose is on sale or it was in the convenient spot on the shelf when you were

pressed for time (Berman and Gilson, 1997).

In a study conducted by Abisha Monisha (2017) entitled “Comparative Study on

Factors Influencing Online and Offline Shopping”, the study reveals that the male are

less doing the online shopping than female. The female are more into online

shopping because they enjoy doing shopping whether it is traditional shopping or e-

shopping. The young generation is more often purchasing from online sites because

of the revolution in the technology among the youth population and they are able to
17

use this technology for their well-being more than other age group category. There

are increasing demand of online shopping because the variety of options for the

consumers to choose and at a reasonable price and sometime even less price than

the market.

As stated by Huang and Oppewal (2006) consumers´ shopping channel

preference is affected by four situational factors, namely delivery charge, time

availability, travel time to the store and trip purpose. Lenvin et al. (2005) found that

consumers´ preferences for shopping online or offline for different products is

dependent on the channel in which consumers feel they can evaluate the attributes

best. Thus the extent to which the important attributes are perceived to be better

delivered online or offline decides whether products are evaluated online or offline

(Lenvin et al., 2005).

Consumers are influenced by a number of social factors in their buying behavior,

such as family, groups, social roles and status. Primary groups are family, friends,

neighbours or other groups that the consumer has regular yet informal interaction.

Additional groups can be reference and aspirational groups, where reference groups

influence consumers‟ attitudes by comparing or referring to the groups` attitudes

about a product or brand. In the case with reference groups, consumers are

influenced by their own need to „fit in‟ the groups` beliefs and attitudes. This need

simply comes from valuing and feeling concern for the members of your group, and

whose opinions and approval means a lot (Arens, 2004). The high influence of

reference groups is strong since consumers regard members of their group as

credible (Sargeant& West, 2001). Aspirational groups influence consumers indirectly

by acting on their affection for their favourite artist or athlete (Kotler et al., 2005).
18

CHAPTER 3

METHODOLOGY

Research Design

The research design used in this study is a non-experimental quantitative

research design specifically descriptive comparative. This design seemed to be the

most appropriate research design to be used since the study aimed to determine

significant differences in the respondent’s perceive consumer behavior between

online and traditional shopping. According to Cooper and Schindler (2010),

descriptive comparative research design shall be used when the study is aimed in

determining significant difference between two or more variables in the study

Research Locale

Davao City, officially the City of Davao is a 1st class highly urbanized city in

the island of Mindanao, Philippines. The city has a total land area of

2,443.61 km2 (943.48 sq mi), making it the largest city in the Philippines in terms of

land area. It is the third-most populous city in the Philippines after Quezon City and

Manila, the most populous city in the country outside Metro Manila, and the most

populous in Mindanao.

This study took place within Davao City. The researchers chose random

people who are willing to participate in answering the prepared questionnaires.

Through this, the researchers be able to collect the data and to know how online and

traditional stores affect the purchase decision of consumers.


19

Respondents

This study will have 100 respondents who are living in Davao City. Researchers

will use a random sampling technique to choose the respondents. Random sampling

is a part of the sampling technique in which each sample has an equal probability of

being chosen. A sample chosen randomly is meant to be an unbiased representation

of the total population.

Research Instruments

The research design used in this study is a constructed questionnaire whose

items were lifted from relevant literatures which underwent content validation and

internal validity using Cronbach Alpha (0.93). It consists of two parts (Part 1 which

will determine respondent’s demographic profile; and Part 2 which determined

respondents` perceived level of consumer behavior).

A 5 - point Likert scale of: 5) Strongly Agree, 4) Agree, 3) Neutral, 2)

Disagree, and 1) Strongly Disagree.


20

Data Gathering Procedure

To be able to conduct this study, the following steps were done by the researchers.

Letter of Permission. The researchers asked for a letter of permission to conduct

the study outside the school. The letter was noted by the research adviser and was

submitted to the department to seek for approval and confirmation.

Administration of Questionnaires. After the approval of letter, the researchers

prepared the questionnaires. Researchers approached the respondents to explain

the purpose of the survey. Researchers administered and distributed the

questionnaires to the respondents.

Retrieval, Tabulation and Interpretation of Data. After the respondents answered

the questionnaires, the researchers retrieved the questionnaires for tabulation,

analysis and interpretation.

Treatment of Data

To give meaning to the data gathered, statistical treatments were done to analyze

and interpret data are as follows:

Frequency and percentage were used to determine the respondents`

demographic profile.

Mean was used to determine the respondent’s perceived level of consumers`

behavior in terms of quality, price, time, and risk avoidance and trustworthiness.
21

Range of Means Descriptive Level Interpretation

Consumer behavior is
4.21 – 5.00
Strongly Agree very evidently
manifested by the
respondent.

Consumer behavior is
evidently manifested by
3.41 – 4.20 Agree the respondent.

Consumer behavior is
moderately evidently
2.61 – 3.40 Neutral manifested by the
respondent
Consumer behavior is
less evidently
1.81 – 2.60 Disagree manifested by the
respondent.
Consumer behavior is
very less evidently
1.00 – 1.80 Strongly Disagree manifested by the
respondent.

T test (paired sample mean) was used to determine significant difference in

the respondent’s perceived level of consumer behavior.


22

CHAPTER 4

PRESENTATION AND ANALYSIS OF FINDINGS

This chapter presents the results and discussions of the tabulated data.

Results are presented in tabular form for easy understanding. The topics are

organized in the following order of presentation: the respondent’s demographic

profile, the respondents perceived level of consumer’s behavior on online and

traditional shopping, and the difference in consumer behavior among respondents.

Table 1

The Respondents` Demographic Profile in Terms of Gender

Profile Frequency Percentage

Gender

 Male 49 49.00

 Female 51 51.00

Total 100 100.00

Presented in Table 1 is the respondents` demographic profile in terms of

gender. Results revealed that majority of the respondents are female with 51 counts

or 51.00 percent while their male counterpart has 49 counts or 49.00 percent.
23

Table 2

The Respondents` Demographic Profile in Terms of Age

Profile Frequency Percentage

Age

 20 and below 50 50.00

 21 – 25 yrs 24 24.00

 26 – 30 yrs 14 14.00

 Above 30 yrs 12 12.00

Total 100 100.00

In terms of age, it can be gleaned from the table that majority of the range

belongs to those belonging to age bracket above 17 years old with 67 counts or

73.60 percent; followed by those whose age bracket belongs to 17 and below with

24 counts or 26.40 percent. This is indicative that majority of the respondents are

matured respondents who can provide reliable data for the study.

In terms of age level, it was noted that the majority of the respondents belong to

those belonging to age bracket 20 years and below with fifty counts or 50 percent;

followed by those belonging to those whose age ranged from 21 – 25 years old with

24 counts or 24 percent; 26 – 30 years old with 14 counts or 14 percent; and lastly

by those belonging to age 30 years above with 12 counts or 12 percent.


24

Table 3

The Respondent’s Distribution Profile in Terms of Sector

Profile Frequency Percentage

Sector

 Student 48 48.00

 Businessmen 5 5.00

 Private employee 15 15.00

 Public employee 17 17.00

 Retiree 4 4.00

 Others 11 11.00

Total 100 100.00

Finally, in terms of sector group, results showed that majority of the

respondents are students with 48 counts or 48 percent; followed by those in the

public employee sector with 17 counts or 17 percent; then by those in the private

employee with 15 counts or 15 percent; then by those from others (practicing

professionals with 11 counts or 11 percent and lastly by those retirees with 4 counts

or 4 percent.
25

The Perceived Level of Consumer Behavior on Online and Traditional


Shopping

Presented in this section is the tabular presentation and discussion of the

results on respondent’s perceived level of online and traditional consumers` behavior

in terms of quality, price, time, and risk avoidance and trustworthiness.

Presented in Table 4 is the overall online consumer’s behavior in terms of

quality which showed that respondents described both online and traditional to be

high as reflected by their respective obtained mean scores of 3.41 and 4.01. This is

indicative that majority of the respondent’s consumer behavior on this indicator is

very evident. It can also be noted from the table that there is a difference in the

described level on Items 1 and 2 wherein description for online items 1 and 2 were

described to be average as compared to high level for traditional shopping which

implies that respondents believed that they can check the quality of the product and

products are better in physical stores.

Although result is acceptable for the overall level, the level has to be

increased to a very high level since many results of past studies conducted (Kotler et

al; 2010; Parasuraman et al, 1985) concluded that quality is very important in the

consumer’s behavior to make a purchase decision. The quality of products and

services provided by the store serves as a basis whether the buyer will be satisfied

and as a result will lead to repeat purchases and strong customer loyalty.
26

Table 4
Perceived Level of Consumer Behavior on Online and Traditional Shopping
In terms of Quality

Online Traditional

Quality Mean Std Description Mean Std Description


dev dev

1. I buy in this store because I can check 3.33 1.24 Average 4.18 0.88 High
the quality of the product

2. Products in this store are better 3.21 1.01 Average 3.85 0.88 High

3. Shopping allows me to check the 3.22 1.08 Average 4.16 0.91 High
quality of the product in this store

4. The higher variety of products 3.67 0.90 High 4.11 0.83 High
available helps me to find the right
product in this store

5. Shopping is more comfortable in this 3.62 1.04 High 3.77 0.91 High
store because I can buy whenever I
want

Category Mean 3.41 0.81 High 4.01 0.69 High

Table 5

Perceived Level of Consumer Behavior between Online and Traditional


Shopping In terms of Price

Shown in Table 5 is the comparative level of perception on respondents`

consumer behavior between online and traditional shopping in terms of price. Overall

results revealed that the described level of perception on consumer behavior on both

online and traditional shopping in this indicator is high as indicated by their obtained

mean scores of 3.71 and 3.60 respectively. This is also indicative that majority of the

respondent’s consumer behavior on this indicator is evident. The result is also

acceptable but also needs to be increased to a higher level as results of previous

studies revealed that right pricing is considered an important driver of their purchase
27

decision and their satisfaction towards a product or service rendered (Kotler et al,

2010). Store marketers should see to it that their price is competitive. Becoming a

low price leader store is a source of competitive advantage. Consumers as buyers

are always looking for low cost but quality products.

Online Traditional

Price Mean Std Description Mean Std Description


dev dev

1. Shopping in this store offers better 3.74 0.87 High 3.67 0.84 High
prices

2. Product cost in store satisfies me a lot 3.53 0.90 High 3.56 0.77 High

3. Shopping in this store has great 3.78 0.82 High 3.63 0.83 High
discounts

4. This store offers cheaper goods 3.82 0.87 High 3.54 0.85 High

5. Shopping reduces the monetary cost 3.70 0.80 High 3.61 0.89 High
in this store

Category Mean 3.71 0.66 High 3.60 0.66 High

Table 6

Perceived Level of Consumer Behavior on Online and Traditional Shopping In


terms of Time

Online Traditional

Time Mean Std Description Mean Std Description


dev dev

1. I buy in this store because its time 3.84 1.07 High 3.62 0.87 High
saving

2. It is a great advantage to be able to 3.96 0.91 High 3.63 0.90 High


shop at any time of the day in this
store

3. I can buy the products any time 24 4.00 0.97 High 3.58 1.10 High
hours a day while shopping in this
store

4. Shopping takes less time to purchase 3.92 0.87 High 3.60 0.96 High
in this store
28

5. Shopping in this store is more 3.68 1.00 High 3.81 0.88 High
convenient because I can take my
time to compare products

Category Mean 3.88 0.73 High 3.65 0.69 High

Shown in Table 6 is the comparative level of perception on respondent’s

consumer behavior between online and traditional shopping in terms of time. Overall

results revealed that the described level of perception on consumer behavior on both

online and traditional shopping in this indicator is high as indicated by their obtained

mean scores of 3.88 and 3.65 respectively. This is also indicative that majority of the

respondent’s consumer behavior on this indicator is evident. The result is also

acceptable but also needs to be increased to a higher level as results of previous

studies revealed that time element in conducting shopping activities is very important

in the consumer’s decision as to where they will conduct their shopping activities.

The more convenient the consumers in a specific buying activity, the more

tendencies that the consumer will repeat the same activity in the same store (Kotler

and Armstrong, 2010).

Table 7

Perceived Level of Consumer Behavior on Online and Traditional Shopping


In terms of Risk Avoidance and Trustworthiness

Online Traditional

Risk Avoidance and Trustworthiness Mean Std Description Mean Std Description
dev dev

1. I buy in this store because I trust the 3.37 1.03 High 3.92 0.86 High
seller

2. The opinions of friends or family have 3.66 0.87 High 3.85 0.94 High
impact on my purchase decision in
this store

3. I prefer buying from a supplier which I 3.76 0.96 High 3.95 0.89 High
29

have positive experience with.

4. I can check many similar products 3.91 0.84 High 4.07 0.82 High
before I decide which to buy in this
store

5. Detailed product information of 4.03 0.80 High 3.05 0.85 High


products on this store are important
for the trustworthiness

Category Mean 3.95 0.60 High 3.97 0.66 High

Presented in Table 7 is the comparative overall online consumers` behavior in

terms of risk avoidance and trustworthiness which showed that respondents

described both online and traditional to be high as reflected by their respective

obtained mean scores of 3.95 and 3.97. This is indicative that majority of the

respondents` consumer behavior on this indicator is very evident. This also needs to

be improved since it was concluded in past studies that many consumers conduct

shopping activities in a place where they can feel safe and secured. Security and

privacy of stores is very important in the consumer’s decision to conduct their

purchasing activities. Security and privacy becomes an important factor to consider

when consumers shop. Security and privacy will affect consumer trust (Kim et al,

2009).

Table 8

Comparative Table on Overall Perceived Level of Consumer Behavior on


Online and Traditional Shopping

Online Traditional

Quality Mean Std Description Mean Std Description


dev dev

1. Quality 3.41 0.81 High 4.01 0.69 High

2. Price 3.71 0.66 High 3.60 0.66 High

3. Time 3.88 0.73 High 3.65 0.69 High


30

4. Risk awareness and trustworthiness 3.95 0.60 High 4.97 0.66 High

Category Mean 3.69 3.55 High 3.81 0.50 High

Presented in table 8 is the comparative table on the overall perceived level of

consumer behavior on online and traditional shopping. Overall results revealed that

overall perceived level of consumer’s behavior on both online and traditional

shopping activity was described to high as indicated by their respective obtained

mean scores of 3.69 and 3.81 respectively. This high level of description was due to

the high scores generated on the four (4) indicators of the consumer behavior which

includes: quality, price, time, and risk avoidance and trustworthiness. This also

needs improvement as it is consistent in the results of most studies that quality, low

price, time convenience, and less risks leads to higher consumer purchase decisions

and customer satisfaction and loyalty (Kotler and Armstrong, 2010). Chiang and

Dholakia (2003) also confirmed significant relationship of the time dimension of

convenience and intention to buy. Giese & Cote (2002) revealed that satisfaction is

an emotional response to the experience with the product (or service) that have been

purchased, retail outlets, or even patterns of behavior such as shopping and buying

behavior. Satisfaction is a key determinant in customer’s decision to continue or

discontinue their association with the product or service (Chung and Shin, 2010).
31

Difference in Perspective between Consumer’s Behaviour on Online and


Traditional Shopping

Table 9

Table of Difference between Online and Traditional Consumer Buying Behavior

Mean t- p-
Consumer Behavior value value df Significance Decision
Online Traditional Ho

Quality 3.41 4.01 -5.80 0.00 99 Significant Reject

Price 3.71 3.60 0.147 0.146 99 Not Accept


significant

Time 3.88 3.65 2.44 0.02 99 Significant Reject

Risk and Trustworthiness 3.75 3.97 -3.45 0.00 99 Significant Reject

Overall 3.69 3.81 -2.53 0.01 99 Significant Reject

Presented in Table 9 is the table of difference between perceived level of

online and traditional consumer behavior. Overall results of the study using t-test

(paired sample mean) showed that there is a significant difference in the

respondents perceived level of online consumer buying behavior and traditional

buying behaviour as reflected by the obtained t-value of -2.53 with obtained lower p-

value of 0;01 as compared to 0.05 level of significance. This leads to the rejection of

the null hypothesis. It can also be noted that significant difference were established

on the respondent’s perceived level of consumer behavior on indicators quality, time,

and risk avoidance and trustworthiness as shown by their respective obtained t-

values and lower obtained p-values as compared to 0.05 alpha level. There is no

significant difference in consumer behavior in terms of price as indicated by the

obtained t value of 0.147 and a p-value of 0.146 which is higher than 0.05 alpha level

leading to the acceptance of the null hypothesis. Above result is in consonance with

the results of past studies conducted by Trabold et al. (2006) which concluded that
32

drivers such as price perceptions, ease of returns and refunds and privacy

experience differ across sectors. Kang Lo, et al. (2013) analyzed the phenomenon in

which the consumer expects the prices of products and services on the Internet to be

lower than in traditional shops. Empirical results have shown that consumers expect

the similar prices in all online shops but do not compare price in online and

traditional stores. In the offline environment, time is spent travelling to the brick-and-

mortar store, locating the place where the products are displayed and kept, and

finding a parking space (Mittal, 2013). In the case of online environment, time is

spent locating a product among the various online shops and finalizing the

transaction. Online stores tend to serve consumers at their convenience (Kim, Park

and Pookulangara, 2005).

Table 10
Table of Difference between Online and Traditional Consumer Buying Behavior
When Analyzed According to Gender

ONLINE TRADITIONAL
Consumer
Behaviour
t value p- df Significance Decision t p- df Significance Decision
value Ho value value Ho

Quality 0.18 0.99 97 Significant Reject -1.21 0.31 97 Not Accept


significant

Price -0.50 0.62 97 Not Accept -1.38 0.17 97 Not Accept


significant significant

Time -1.17 0.25 97 Not Accept -0.98 0.33 97 Not Accept


significant significant

Risk and -0.21 0.84 97 Not Accept -2.34 0.02 97 Not Accept
Trustworthiness significant significant

Overall -0.59 0.56 97 Not Accept -1.94 0.06 97 Not Accept


significant significant

Presented in Table 10 is the table of difference between perceived level of online

and traditional consumer behavior when analyzed according to gender. Overall


33

results of the study using t-test (equal variance assumed) showed that there is no

significant difference in the respondents perceived level of online consumer buying

behavior and traditional buying behavior as reflected by the obtained t-values of -

0.59 -1.94 and with obtained higher p-values of 0.56 and 0.06 respectively, as

compared to 0.05 level of significance. This leads to the rejection of the null

hypothesis. It can also be noted that no significant difference were established on

the respondent’s perceived level of consumer behavior on online and traditional

shopping indicators quality, time, and risk avoidance and trustworthiness as shown

by their respective obtained t-values and lower obtained p-values as compared to

0.05 alpha level leading to the rejection of the null hypothesis.

Table 11
Table of Difference between Online and Traditional Consumer Buying Behavior
When Analyzed According to Age

ONLINE TRADITIONAL
Consumer
Behavior
f- p- df Significance Decision f- p- df Significance Decision
value value Ho value value Ho

Quality 3.18 0.03 99 Significant Reject 1.05 0.37 99 Not Accept


significant

Price 0.06 0.98 99 Not Accept 0.68 0.57 99 Not Accept


significant significant

Time 0.37 0.78 99 Not Accept 1.04 0.38 99 Not Accept


significant significant

Risk and 2.23 0.09 99 Not Accept 0.11 0.95 99 Not Accept
Trustworthiness significant significant

Overall 1.27 0.29 99 Not Accept 0.23 0.88 99 Not Accept


significant significant

Presented in Table 11 is the table of difference between perceived level of

online and traditional consumer behavior when analyzed according to age. Overall

results of the study using One Way ANOVA showed that there is no significant
34

difference established in the respondents perceived level of online consumer buying

behavior and traditional buying behavior as reflected by the obtained f-values of 1.27

and 0.23 with obtained higher p-values of 0.29 and 0.88 respectively, as compared

to 0.05 level of significance. This leads to the acceptance of the null hypothesis. It

can also be noted that no significant difference were established on the respondent’s

perceived level of consumer behavior on indicators time, and risk avoidance and

trustworthiness. Significant difference was only noted only on indicator quality

(online) as reflected by the obtained f value of 3.18 with p value = 0.03 leading to the

rejection of the null hypothesis. Overall, the results imply that respondents` level of

consumer behavior is the same regardless of their age.

Table 12
Table of Difference between Online and Traditional Consumer Buying Behavior
When Analyzed According to Sector

ONLINE TRADITIONAL
Consumer
Behaviour
f- p- df Significance Decision f- p- df Significance Decision
value value Ho value value Ho

Quality 2.40 0.04 99 Significant Reject 1.97 0.09 99 Not Accept


significant

Price 0.71 0.62 99 Not Accept 0.70 0.63 99 Not Accept


significant significant

Time 1.05 0.39 99 Not Accept 0.62 0.69 99 Not Accept


significant significant

Risk and 1.76 0.13 99 Not Accept 0.97 0.44 99 Not Accept
Trustworthiness significant significant

Overall 1.56 0.18 99 Not Accept 0.75 0.59 99 Not Accept


significant significant

Presented in Table 10 is the table of difference between perceived level of

online and traditional consumer behavior when analyzed according to sector. Overall

results of the study using One Way ANOVA showed that there is no significant
35

difference established in the respondents perceived level of online consumer buying

behavior and traditional buying behavior as reflected by the obtained f-values of 1.56

and 0.75 with obtained higher p-values of 0.18 and 0.59 respectively, as compared

to 0.05 level of significance. This leads to the acceptance of the null hypothesis. It

can also be noted that no significant difference were established on the respondent’s

perceived level of consumer behavior on indicators time, and risk avoidance and

trustworthiness. Significant difference was only noted only on indicator quality (online

shopping) as reflected by the obtained f value of 3.18 with p value = 0.03 leading to

the rejection of the null hypothesis. Overall, the results imply that respondent’s level

of consumer behavior on both online and traditional shopping is the same regardless

of the respondent’s sector.


36

CHAPTER 5

SUMMARY, CONCLUSION, AND RECOMMENDATION

This chapter presents the summary of findings, conclusions and

recommendations for the study

Summary of Findings

1. The respondents` profile varies in number in terms of gender, age, and sector

2. The respondents` overall perceived level of online and traditional consumer

behaviour is high. All four indicators of consumer behaviour; quality, price,

time, and risk avoidance and trustworthiness were also described to be high

3. Significant difference was established between respondent’s overall perceived

level of consumer behaviour when analyzed according to shopping online or

shopping the traditional way.

4. Significant differences were also noted in the respondent’s perceived level of

consumer behaviour indicators quality, time, risk avoidance and

trustworthiness but not on indicator price.

5. No significant difference was established between respondents overall

perceived level of consumer behavior when analyzed according to their

profile.

Conclusion

The following are the conclusions were drawn from the findings of the study.

1. In terms of quality, price, time, and risk avoidance and trustworthiness, the

perceived level on consumers` behaviour reflected high as obtained by their

respective mean scores.


37

2. Overall results of the study using t-test showed that there is a significant

difference in the respondents perceived level of online consumer buying

behaviour and traditional buying behaviour.

3. Overall, the perceived level of consumer behaviour on online and traditional

shopping is evidently manifested by the respondents.

4. However, their overall perceived level of consumer behaviour significantly

varies when grouped according to their shopping preference (online or

traditional).

5. Variation in consumer behaviour in terms of quality, time, risk avoidance, and

trustworthiness were also established. The level of consumer behavior is the

same regardless of their profile.

Recommendation

The following recommendations are recommended for consideration:

 To improve the level of consumer behaviour to a very high level, store

marketers should developed a Marketing Enhancement Program which shall

focus on the four indicators: quality, price, time, and risk avoidance and

trustworthiness.

 Traditional store marketers on the other hand, must exert efforts in improving

their services specifically in providing time convenience in terms of service

transactions, and improving also the stores` ambience so as to compete with

online stores.

 Other variables not found in this study are highly recommended for future

similar research to be conducted.


38

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40

Summary on the Ratings and Comments of Experts as to Validity of the

Questionnaire

Name of Experts Mean Description

Mr. Edwin Acain, MAEd 4.00 Very Good

Dr. McWinnerYawman 4.57 Very Good

Mr. Kristianne Gem C. Joquiño, CB, 3.71 Good

RCA, CAT, MB

Overall 4.1 Very Good


41

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