The Experiences of Online Consumers with Reference to

E-commerce

A Research Paper Presented to the Faculty of Senior High School in

Partial Fulfillment of the Requirements for Research in Daily Life 1

Members:
Boongaling, Ria Ysabel F.
Pagcaliwagan, Chelsea Jade P.
Panganiban, Joeniel D.
Serafin, Russell P.
Villanueva, Alyssa Rose T.
INTRODUCTION
Businesses are the means by which consumers acquire their needs and

wants through exchanging something of value in return. These have also been an

avenue for people to obtain a job. Almost everything that people utilize in their

everyday lives were manufactured by a business and sold by yet another business.

According to E-notes (2019), businesses are the engine of the economy for they

render jobs that allow people to obtain money.

A lot of innovations have been made throughout the years, including the

Internet. As claimed by E-commerce Land (2008), e-commerce became possible

when the Internet was made accessible for commercial use during the year 1991.

Since then, several businesses have started to take up residences at web sites.

Amazon and E-bay were among the pioneers to allow electronic transactions. As

maintained by Statista (2019), 45.2% of Filipinos are making use of e-commerce.

Majority of shopping is still done offline. However, some consumers opt to

purchase from online stores over the traditional brick and mortar stores. This is

mainly because of the convenience, price-related factors, and a wider range of

options (Beta News, 2019).

While the number of consumers who purchase online increases, data

shows that consumer complaints in relation to online shopping have also surged.

According to Site Jabber (2015), a consumer protection site where people have

access to online business reviews, they received a total of 43,697 complaints from

online shopping users regarding different categories such as delivery, packaging,

and scam issues. Due to the lack of personal contact between the seller and buyer
in online shopping, there is a higher risk of encountering a difficulty compared to

physical retail stores.

In today’s shopping world, online shopping can be esteemed as one of the

leading trends. However, as cited by EHS Knowledge Hub, consumers need to

create cautious considerations of various factors in order to achieve optimum

customer satisfaction from e-commerce. Some of these factors include costs,

payment methods, and the return policies. Consumers are also said to consider

the authenticity of the online shopping web site and other customers’ reviews

(Opragen Health, 2018). In a survey done by Chaffey D. (2017), convenience and

price comparison are the main drivers of online shopping users. 70% of consumers

have abandoned shopping carts and switched to online shopping. 90% of online

shoppers say that free shipping drives them to purchase products online. 88% say

that a detailed product information is also a vital factor to be considered in making

a purchase. However, 94% of consumers will abandon an online shopping web

site if they can’t find the information they need.

Businesses depend on consumers for survival. In the same way, consumers

rely on businesses for their needs and wants. According to Chambers S. (2019),

81% of customers are more likely to acquire products or services from a business

if they are satisfied. On the other hand, 95% of customers will take action through

reporting their concerns after a negative experience. After a customer’s poor

experience, 56%of consumers will never repeat transaction with the same

business again and 20% will post a negative review online. Online businesses

annually lose an estimated ₱4 billion due to poor customer service. Increase

number of customer complaints may lead to loss of loyal and potential customers,

loss of profit, loss of reputation, and loss of employees (Olga, 2017).

At present, the researchers are also utilizers of e-commerce. It is in this

context that this phenomenological study was conducted to analyze and study the

structure and essence of the experiences of consumers on e-commerce.

The purpose of this phenomenological study is to aid online businesses in

analyzing customers’ experiences established from their transactions which will be

used for improvement and development of concerned areas and in return, will

result to the achievement of customer satisfaction.

Research Objectives

The purpose of this research is to discover and analyze the ONLINE

CONSUMERS’ EXPERIENCES WITH REFERENCE TO E-COMMERCE. Mainly

stating, it reveals that the experiences of customers regarding the products and

services provided by online businesses may vary depending upon the strategies

of the aforementioned type of business.

LITERATURE REVIEW

This chapter provides an overview of previous research on consumers’

perception with reference to e-commerce. Data were gathered from online sources

and published materials as references in order to get the needed facts and

information.
E-commerce. Throughout the years, people have developed innovations to shop

efficiently and more effectively. One of these innovations include the development

of E-commerce. According to The Next Scoop (2018), the ease, comfort, and

access brought about by gadgets are one of the factors why online shopping is

making its way in the market since then. The traditional brick and mortar stores

require the physical presence of the consumers whereas online shops can be

checked with just a few maneuvers. The Next Scoop Experts assert that the growth

of e-commerce will continue to increase with all the present technologies available

today.

In relation with the origin of e-commerce, The Michael Aldrich Archive

(2011) claims that Michael Aldrich is the pioneer of online shopping site invention.

In the year 1979, he connected a modified domestic television via a telephone line

to a real- time multi-user transaction processing computer. Business-to-business

online shopping transactions were viable back then. However, business-to-

consumer transactions were not possible until the use of personal computers and

the Internet have spread during the 1990s.

In a statement made by E-commerce Land (2018), even the conventional

stores are starting to be alarmed by the present situation of online shopping.

However, e-commerce is not yet the leading avenue for consumers to shop.

Physical stores remain to capture consumers who prefer to personally buy their

desired products.

The Statistics Portal (2019) survey shows that 4.4 billion people are Internet

users and 3.5 billion are social media users. China, India and the United States
rank ahead all other countries in terms of internet usage. In relation to this,

Woetzel, J. (2017), reported that China is the world’s largest e-commerce market,

accounting for more than 40 percent of the value of worldwide e-commerce

transactions. Non-users of Internet and mobile devices, who are believed to be

belonging to the Baby Boomers and the Generation X, are still one of the

consumers that opt to purchase from traditional brick and mortar stores.

As the second largest country in Southeast Asia, the Philippines is a large

and rapidly developing market for e-commerce, as stated by ASEAN UP (2018).

The Philippines has a digital population of more than 67 million people which

attracts both local and regional companies who compete against a dominant

player. In contrast with the environment of e-commerce in Malaysia and Indonesia,

e-commerce still represents less than 1% of all sales in the Philippines. The

improving telecommunications infrastructure, the growing proportion of the

population with internet connectivity, especially through mobile phones, are

believed to be some of the key factors that will make the Philippines a major player

of e-commerce in Southeast Asia in a very near future. Reyes, T. (2018), a reporter

from Rappler, affirms that online websites brought e-commerce to the Philippines.

The top e-commerce sites include Lazada, OLX, MetroDeal, Alibaba, Ebay, and

Zalora. Lazada claims to have 8.7 million visitors per month and almost 7,000

merchants. While the Filipinos were firstly familiarized by the nature of buying and

selling online, e-commerce has now evolved from the traditional seller’s arena to

a type of business that caters all consumers’ needs and wants starting from

clothing down to appliances.

 On the report of the Export.Gov (2018), there is pressure from the Philippine

Government for the private telecommunications companies to provide higher

bandwidth capacity to the online retail market. Data from We Are Social and

Rappler in partnership with Globe Telecom attests that 63 percent of the Philippine

population uses the internet. With this number, there is a good reason to be

optimistic about the growth of e-commerce in the Philippines. However, the country

also faces factors that challenges the progress of online shopping. These includes

the slow internet speed, low broadband penetration, and security concerns.

According to Akamai’s “State of the Internet Report” for the fourth quarter of 2017,

average internet speed in the Philippines is only 5.5 megabytes per second

(MBPS), the slowest in the Asia Pacific. In addition to this, many Filipinos access

the web only through internet cafés and their workplace. E-commerce also faces

a threat to its development due to the numerous incidents of hacking and poor

cybersecurity efforts that still plague the country. Filipino consumers demand

further education on security measures that can protect their online transactions.

This will establish increased levels of confidence in online banking, purchasing,

and selling.

Sandra Zialcita, a reporter from CNN Philippines, maintains that the

consistent growth of e-commerce in the country can be attributed to the

convenience sought by digital-savvy shoppers. The Philippine Government also

sees a potential for e-commerce in the country. The Trade department launched

its e-commerce roadmap up to 2020. It targets to have e-commerce contribute 25

percent to the gross domestic product by 2020 from 10 percent in 2015. The
agency believes going digital will also help micro, small and medium enterprises

compete globally. Paulo Campos III, the CEO and co-founder of Zalora

Philippines, believes that the Philippines can lead in terms of online shopping

given the amount of time Filipinos spend online and the ecosystem converging to

make e-commerce thrive in the country. While Campos agrees that the internet

access and the payments space can be improved, he confirms that the country

has crossed over to a point where e-commerce can only grow and become a

major contributor to the retail sector.

Online Consumers’ Experiences. According to Retail Native (2017), online

shopping experience is defined as a complex structure that means more than just

a shopper buying a product from an online store. While some brands are focused

on their products, other online shopping businesses focus on giving the best

experience to those who buy their products. Retail Native maintains that being a

customer-centric brand will aid businesses in this digital-led field. As written by

Jason Bordeaux (2019), an Implementation Specialist at Hub Spot, customer

experience has a significant impact on a brand. It is the impression businesses

leave with their customer, resulting in how consumers think of their brand, across

every stage of their shopping journey. Multiple touchpoints factor into the customer

experience, and these touchpoints occur on a cross-functional basis. Bordeaux J.

(2019) affirms that consumer experiences are vital for the growth of a brand.

Ensuring a positive customer experience may lead to brand loyalty and result to a

higher revenue and even new customers. In line with this, Business Dictionary

(2016) defines customer experience as the entirety of interactions a customer has

with a company and its products or services. Understanding the customer

experience is an integral part of customer relationship management. The overall

experience reflects how the customer feels about the company and its offerings.

Surveys, feedback forms, and other data collection techniques may help a

company determine the experiences of their customers. In an article by Travinal &

Stenger (2014), they define online shopping experience as the actual experience

being lived by the customers when they shop online rather than just a memory of

past experiences. Moreover, their definition covers almost all the aspects of online

shopping is it pertains to the search of information, relation, browsing, and

purchase.

Based on a survey conducted by Statista (2017) on 1,372 online shoppers,

clear product images, product reviews, product descriptions, easy checkout

process, easy searching, and easy navigation makes an online shopping

experience positive. As determined by an Online Shopping Customer Experience

Study made by Com Score (2017), knowing the delivery time estimate ranked

among the top factors influencing online shopping. 1/3 of shoppers even opt to pay

a fee for faster delivery. Shoppers also appreciate the availability of an easy-to-

understand return process. 46 percent of the consumers said that receiving their

product when expected led them to recommend the online brand to their peers. 75

percent of the shoppers believe that every retailer should offer clear tracking

information.

As reported by Denise Valdez (2018) in the Business World, online

shoppers in Asia are less satisfied with their online shopping experiences
compared to those in other nearby regions, a study organized by logistics company

United Parcel Service (UPS) Shows. The study reveals that 57& of online

shoppers surveyed were satisfied with their online shopping experience, compared

to other shoppers in the United States; 85%, Europe; 81%, Canada; 77%, Mexico;

87% and Brazil; 88%. UPS Philippines Managing Director Chris J. Buono (2018)

attests that the online shopping experiences of Filipinos are influenced by factors

such as the speed of delivery, access to bank accounts and affinity for mall

shopping. Buono noted one of the challenges for online retailers in the Philippines

is the fact that the Philippines is still largely a cash-based society. Data from the

Bangko Sentral ng Pilipinas’ 2017 Financial Inclusion Survey shows only 15.9

million Filipinos, or one fourth of the country’s adult population, have access to

bank accounts. The lack of a credit card or bank account may discourage shoppers

from making online purchases. For some shoppers, they may look at products

online, but actually buy them in physical stores where they can pay in cash. As

specified by Palanca C. (2018), some shoppers choose to purchase from online

brands because of the thrill being brought by the whole online shopping journey.

With the recent trends on business, consumerism has also developed.

Tracy Wallace, a writer in Big Commerce, asserts that 38 percent of shoppers are

hesitant to shop online due to privacy concerns. However, even with those issues

on hand, more people are buying online and they are doing it from wherever and

whenever it is the most convenient. In a survey conducted by Big Commerce and

Square, the shipping cost, inability to try the product, and delivery time are one of

the main concerns of online consumers.

 Alison Bolen (2017), an SAS Analytics Editor, sights that consumers today

expect to have the ability to shop anytime of the day. Through the aid of

technology, customers are now much more in control of their shopping experience.

As stated by Gayatri Patel (2018), eBay’s Director of Global Data infrastructure,

consumers now have the means to explore, research, and share every purchase

decision that they make. This is also said to cause a disadvantage to online

business owners because shoppers can easily share their negative reviews and

insights online.

According to Startup Nation (2018), websites and mobile devices are

revolutionizing the way people shop today. While some consumers prefer to make

the most out of their purchase on physical stores, other buyers would like to expand

the variety of their choices and initiate their transactions online. In a survey

conducted by Big Commerce and Square, it reveals that 47 percent of consumers

buy apparel from physical stores, 19 percent purchase health and beauty products

online, and 19 percent shop gifts both online and traditionally.

As claimed by Digital River (2018), consumers nowadays demand

transparency in the form of accurate information and an assurance that the product

is being sold in the lowest price possible. Comparison shopping is also made

evident in online shopping. With easy access to information, consumers are willing

to spend significant time comparing options before initiating a purchase. One of

the major differences of e-commerce from physical stores is the delivery time. With

the traditional brick and mortar stores, one does not have to wait for a few days in

order to acquire goods. Modern consumers expect online businesses to provide

fast, easy, and intuitive purchase options. However, even if the transaction is being

done online, customers are said to be expecting the formation of a brand

relationship and a high level of service even after performing a purchase.

In an article published by Your Story (2017), despite all the efforts of e-

commerce companies to alleviate the issues of consumers, there are still problems

that customers have to face while shopping online. When purchasing online, there

is no guarantee with regards to the quality of the product. Reviews are not always

reliable due to the sellers who intentionally mislead customers in order to increase

sales. Additionally, the issue of getting the correct size remains a serious drawback

for buying clothing and footwear online. Sizes vary from brand to brand, and since

customers cannot try out the products before buying them, selecting the size is

always a gamble. E-commerce sites allow users to track the delivery of their

orders. However, they are not always accurate. Some consumers report that

delivery personnel often turn up at their homes when they are at work or out

somewhere. Also, several online shopping sites are not accessible to everyone

especially to those who are living in rural areas. Another problem that e-commerce

faces is the faltering internet connection or technical glitch which may result to

digital payment failures. This situation is now being addressed by some

businesses through offering other modes of payment like cash-on-delivery.

Returning things bought online is also quite common due to the lack of assurance

regarding the quality of the product. Some online shopping websites have unclear

return and guarantee policies. Vague return policies may leave consumers with a

low-quality product and no way to return it or have a replacement. Moreover, e-

commerce sites record important customer data like name, phone number,

address, and bank details. If online shopping websites do not implement stringent

cyber security measures, consumer data is at risk.

There are ways to measure customer experiences, as stated in Hub Spot

(2018). Customer Satisfaction Survey Analysis will give online brands an idea

regarding the experiences of their consumers with their service or product. Online

business may also identify the problems some consumers might be encountering

with their brand and develop an action-plan to further prevent such situations from

happening again. Making an inquiry regarding the product or feature requests of

consumers may also aid brands in improving their products or services.