University of La Salette, Incorporated

Santiago City, Philippines

A Quantitative Study Business

S.Y. 2019 – 2020

Add to Cart: Threats of E-Commerce to Local Physical

Stores: A Descriptive Study
Alyssa Joy C. Alvarez, Roncher L. Bernabe, Angela Mae C. Catapang, Blu Hans D.
Dayag, Leandro Emmanuel M. Fuentes, Pamela F. Mariano, Alaina Cheska D. Masa,
Kimberly Nicole C. Pascua

University of La Salette, Incorporated

Accountancy, Business and Management

Keywords: E-Commerce, Online Shopping, Retail

INTRODUCTION
For the past centuries, buyers of goods and services travel miles just to visit a

physical store which was managed by business owners. Products’ accessibility was

based on how rich a community is since few people could specialize. In the 19th

century, as the world grew and developed, there was a change in the way people buy

products, and that was the time when E-commerce or electronic commerce ultimately

manifested itself (Sportsfinda, 2019).

The business-to-consumer interaction has clearly increased with the development of

the Internet where online consumers are in many cases not only consumers but also

creators of information. This is the reason why companies regard “word-of-mouth‟ very

important. Online consumers’ way of communicating through the internet with ease

makes virality easy to achieve. According to Kotler et al., (2005), as the creativity rises
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among consumers, so should the approaches used by marketers and companies in

order to fully exploit the Internet as a marketplace.

E-commerce or electronic commerce is a business mechanism that encompasses

transactions online or with the use of the internet such as for exchanging data in the

1960s. After some time, in the 1990s it paved the way for online buying and selling of

goods or online retailing (Adamson, 2016). In 1979, when an entrepreneur from the

United Kingdom, Michael Aldrich, connected his phone line to his computer, he had the

thought of shopping without going anymore to physical stores would be very convenient

and efficient, and from that, it became the basis of the foundation of e-commerce

(Ferreria, 2018). E-commerce abruptly transformed the way business enterprises,

government, and consumers interact with one another and are rapidly dominating the

business world in today's generation (UNCTAD/IER, 2015). The arrival of e-commerce

has greatly challenged and has brought threats in terms of business operations to local-

physical stores throughout the world. Now, in the Philippines, the industry is growing.

The unprecedented growth and popularity of e-commerce sheds light on the hazy

future of local retail stores. This presents a gap of knowledge in e-commerce in

Philippine context.

STATEMENT OF THE PROBLEM

This study aims to determine the threats that e-commerce pose to local physical

store in Santiago City, Isabela.

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Specifically, it aims to answer the following:

1. What are the different threats that e-commerce pose to local physical stores in

Santiago City?

2. Does advertising alleviate the threats of e-commerce to local physical stores?

3. What are the reasons why they still don't adapt e-commerce into their business?

SIGNIFICANCE OF THE STUDY

The results of the study will be significantly beneficial to the following stakeholders:

Business Owners. This study will expose the different threats posed by e-commerce

in the Philippines. This may serve as a tool for them to use in assessing their current

situation with e-commerce. This will also serve as a basis and an opportunity in coming

up with effective and efficient strategies to prevent and control the said problem.

Managers. The study may serve as a foundation for different strategies to use to

lessen the negative impact of e-commerce to the business. They will be able to build a

cohesive strategy with contingencies in lieu of what to look out for (as presented in the

study)

Aspiring Business Owners. They will be educated of the different threats of e-

commerce and can someday help them in integrating it in their business model to. The

study prepares the aspiring business owner about how e-commerce will affect a

business. With careful planning and good forecasting, the aspiring business owners

may not be swayed by market shifts and changes.

Researchers. This study gives opportunities for researchers to come up with a

better perspective and understanding of the different threats of e-commerce to local

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physical stores. This will also help them to improve their capacity to handle their chosen

profession.

Future Researchers. The study will give relevant information that can be used by

future researchers to support their study or verify and localize the study. This will add to

the body of knowledge that future researchers can use.

SCOPE AND DELIMITATION

The study is focused and limited to the threats of e-commerce to local-physical

stores. The participants are ready-to-wear vendors in Santiago City, Isabela. The study

is conducted during the second semester of school year 2019-2020. The researchers

will gather information by providing the respondents survey questionnaires in which they

will answer.

REVIEW OF RELATED LITERATURE

This chapter tackles the related literature, both from foreign and local authors

who had conducted their study regarding the threats of E-Commerce to local-physical

stores.

The World Wide Web is a great way to connect to the masses. The phenomenal

and unprecedented growth of E-commerce was fuelled by the industrialization of cities

and more access to tools like the internet and platforms like Amazon, e-bay, Shoppee

and Lazada. E-commerce is of business transaction in which the parties interact

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electronically rather than by physical exchanges or direct physical contact. (Aldin, et al.,

2016)

In the Philippines, e-commerce is generally employed by online retailers taking

advantage of the growing market in the country for fast online services. Many forms of

these business-to-consumer interactions has emerged and is welcomed by the millions

of Filipinos having some form of internet access. This is enforced by the study by The

Digital Report 2019 (2019) that Filipinos are heaviest online users within the Asia-

Pacific area with almost 11 hours of screen time. 70% of that time was spent in e-

commerce platforms alone.

Information and Communication Technology (ICT) has become and will continue

to be an integral part of the day-to-day life of every Filipino

across all levels of our society. The occurrence of communication

technology around the world necessitates that government get on acohesive and coordi

nated strategy on how to prepare its citizens to survive, live and thrive in a digital world.

(The Philippine Digital Strategy Transformation 2.0: Digital Empowered Nation, 2012)

The main objective of the paper is to have a competitive society where everyone has a

reliable, affordable and secure information access in the Philippines.

With the advent of e-commerce in the Philippines, different online money

transfers and payment/billing services such as GCash and PayMaya. International

services also include Pay-Pal and Venmo. These services make it easy for online

retailers to transact with their customers. Thus, it makes going to local physical stores
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more uncommon. Many consumers check the products on physical shops but buys

online due to lower rates and better deals (through vouchers and promo codes).

System enhancements addressing security issues-still the biggest threat to

ecommerce-are also persistently being pursued and have led to significant

improvements. Studies have shown that individuals’ growing privacy concerns put

pressure on companies to develop customer focused privacy practices. (Cagaoan et al.,

2014). One ever-emerging new technology is the area of E-Commerce; although the

area has existed for several years it is a technology that is undoubtedly yet to reach its

full potential.

Though getting better, security is still a major threat to the growth of e-commerce.

With various privacy concerns such as spying, spamming and collecting of site

behavior, many are still uneasy with using online platforms for buying and/or selling.

One prerequisite for the growth of E-Commerce is that the consumers use online

channels. According to Cagaoan et al., (2014), these channels are chosen to each

stage in the purchase process: requirements determination, vendor selection, purchase,

and after-sales service. E-Commerce has become a dynamic force, changing all kind of

business operations world-wide.

Local-physical stores are at a disadvantage in context. Though it has lapses, e-

commerce has strengthened the business-to-consumer and business-to-business trust.

Even though it is established very differently, this trust help connect and create a global

network of buying and selling—something a local-physical retailer would find very hard.
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Not only can businesses use e-commerce for its basis purpose—to sell—it also

provides a platform for online marketing.

According to New York Times Web (2012), small to medium-sized online retailers

swelled in profit from 21 to 32%, based from a report from IDC (Worldwide Business

Consulting Services). These businesses lack the huge marketing budgets of their bigger

peers, of course, but they are unearthing cheap advertising methods that, in some

cases, help them compete with million-dollar promotions. Online retailing provide a level

playing field for retailers where they can compete with bigger ones like Amazon—all

with bigger population reach, almost-free promotions and single platform—without the

expense of a physical store.

METHODS

RESEARCH DESIGN

This study use quantitative research specifically descriptive research method.

Descriptive research aims to accurately and systematically describe a population,

situation, or phenomenon (McCombes,2019). It focuses in describing the nature of the

subject. Using this design, the researchers will be able to describe the threats of e-

commerce to local physical stores located at Santiago City. This research design is also

concerned in providing answers on the "what" of the phenomenon in question.

RESEARCH SAMPLE

The researchers will use purposive sampling to select the respondents of the

study. Purposive sampling is a non-propability sampling technique in which the

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researchers choose the members of the population to be included in the study by

means of their own judgement. It is also known as selective, subjective, or judgemental

sampling wherein the method of selecting the respondents requires the researchers to

have a prior knowledge about the purpose of the study so that they can properly choose

eligible participants (Foley, 2018). The researchers will use purposive sampling

technique because not all ready-to-wear sellers in the public market uses social media

as a way to advertise their product. The researchers will only choose those ready-to-

wear sellers who does not use social media to advertise their product. This technique is

very appropriate to the study for the fact that it chooses ready-to-wear sellers which is

eligible as a respondent. The respondents of the study is currently having a business

venture at the Santiago City Public Market offering ready-to-wear products.

RESEARCH INSTRUMENT

The researchers used the survey questionnaire which utilizes Dichotomous or

Binary questions. These type of questions have two possible responses: Yes or No,

True or False, or Agree or Disagree responses (Social Research method, 2019). The

survey questionnaire is a Yes-or-No questionnaire. The researchers chose dichotomous

survey questions because it is the most suitable for the type of data that the researchers

will use to generate a conclusion that is related to the objectives. The researchers also

chose this type of questions for respondents’ better accuracy in answering.

Providing questionnaires for the respondents is efficient, effective, and appropriate for it

can easily gather the relevant response of the majority, which can determine the

problem and be a basis later on in giving out a conclusion and a solution. The

questionnaire composes of nine (9) major categories. The first category is the Decrease
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in Turnover which shows the impact of e-commerce in the revenue production of

businesses; second is the Decrease in Profit Margin where it shows the trends of an

increasing or decreasing profit margin; third is the Increase in Discount which shows

data if discounts are a necessity in order to sell; fourth is the More Inquiry for Discount

which shows if customers asks for more discounts; fifth is More Variety of Stock where it

presents hoe e-commerce forces physical stores to sell more items; sixth is After Sale

Services where it shows if physical stores picked up a trend in customer service after

sale; seventh is Advertisement where it presents if there is a growing need for

advertisement among physical stores; eighth is Home Delivery Service which tells if

home delivery is an option in physical stores; and ninth is the Increase in Window

Shopping Trend which is presents the trend of window shopping as e-commerce grew.

DATA COLLECTION PROCEDURE

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The data gathering procedure used in the study is described in the following

steps:

1. The researchers will search for an existing questionnaire for the purpose of adopting

it and later on reproduce after seeking permission to the owner.

2. The researchers will survey the retail hotspots in the city and will determine an

estimate for the physical stores’ population.

3. The researchers will determine the respondents and follow them up for a meeting

with the researchers.

4. The researchers will attend to the meeting.

5. The researchers will ask for the respondent to be interviewed upon their knowledge

of its purpose and ethical considerations.

6. The researchers will provide the survey questionnaires to the selected respondents

in the population. They will we assisted while answering.

7. The researchers will collect the questionnaires after they have been answered by

the respondent.

8. As soon as the questionnaires are retrieved, the researchers will tally the answers.

PLAN FOR DATA ANALYSIS

The data that the researchers will be gathering using questionnaires will be

computed, analyzed, and developed through the use of the following statistical tools:

1. Measures of Frequency – Shows how often a response is given.

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a) Count – It measures the number of times that each variable occurs within a

sample. The variables then classified corresponding to a specific scheme

and an arithmetical count is made to come up with the number of variables

b) Percent – It is a distribution of data which expound the relative frequency of

survey responses that may be interpreted using tables, bar graphs, or pie

charts. It is calculated by taking the frequency in the category divided by the

total number of respondents multiplying by 100%.

c) Frequency – It is defined as how often something happens or chosen within

sample of values.

ETHICAL CONSIDERATIONS

Ethics utilized in the entire study are honesty, integrity, carefulness, objectivity,

confidentiality, respect for intellectual property and human subject protection According

to Oxford English Dictionary (2017), honesty is “the quality of being honest; free of

deceit; truthful and sincere”. The researchers have utilized this ethics as they know that

being honest in reporting data, results, methods, procedures and not fabricating

information will help them and the future researchers make researches credible and

reliable for the public. This is also a way to prevent mistakes from turning into failure as

the researchers know that the researches that they will be publishing will be the basis

for future researches and will be a vital part the existing body of knowledge.

The second ethics was objectivity. The researchers have been objective all

throughout in conducting the study. As quantitative researches are objective in nature,

they will not let it fall down by their subjective opinions, rather they have strive to avoid

biases and self-deceptions.

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Third is the ethics of carefulness. In presenting the results of the study, the

researchers have ensured that the data presented have gone through critical and

careful examinations so that careless errors and negligence will be avoided. Also, the

researchers have keep good records of their research activities to ensure that they have

not neglected anything important that is vital for conducting the study.

Fourth, is the ethic of confidentiality. In conducting the research, the researchers

have utilized the ethics of confidentiality as protecting personal information of the

respondents is vital in conducting the study. Without the respondents, the study will not

accumulate the data that are needed to finish it. That is why the researchers assured

that all data that comes from the respondents will be guaranteed to be only used for

educational purposes only.

Fifth, is the ethics of integrity. The researchers have been professional enough to

keep their promises and agreements stated in the study. They finished the study with

sincerity and consistency of action and though as they know that utilizing this ethics can

have an impact for future researchers to also do what they have done, a good role

model.

Sixth, the ethics of respect for intellectual property. The researchers know that

taking other people’s property and making it as their own is a form of stealing. That is

why they give proper acknowledgment or credits for all the contributions of other

published books that they have used in the study. In this way, they already gave

acknowledgments to the contributing authors and at the same time they have avoided

plagiarism.
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Seventh, the ethics of human subject protection. The researchers have

respected and did not harm any of the respondents through the conduct of the study.

The researchers have respected their dignity and privacy as they know that doing all of

this will reflect the attitude of respondents towards them.

Eight, is the ethics of openness. The researchers are open about criticism of

other people as well as the collaboration of ideas that will help to improve the study. The

researchers are open to any suggestions and have a freedom access on sharing ideas,

data, results and the like. Through openness the researchers will know the side of

everyone, on how they react in conducting the study.

Ninth, is the ethics of informed consent. The researchers get permission first

before conducting an interview and ensuring the approval of the participants.

Lastly, is the ethics of human subject protection. The researchers have the full

responsibility on protecting the participants in any harm. It is an act of maximizing the

benefits and minimizing the harms and risks that the subject may get throughout the

study.
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FINDINGS OF THE STUDY

After gathering, the researchers must now present the results of the gathered

data.

The Different Threats of E-commerce to Local-Physical Stores

Table 1. Decrease in Turnover

FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
1. Has there been any decrease in average sales 62 5 92.5% 7.5%
in the past three years?
As presented on the table in regards with the decrease in average sales of the

businesses in the past three years, 62 or 92.50 % of the respondents answered yes and

5 or 7.50 % of the respondents answered no. The data implies that there has been a

decline on the sales of almost all of the businesses that do not engage with electronic

commerce.

Table 2. Decrease in Profit Margin

FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
2. Is there any decrease in profit margin? 57 10 85.1% 14.9%
As presented on the table in regards with businesses decrease in the profit

margin, 57 or 85.10 % of the respondents answered yes and 10 or 14.90 % of the

respondents answered no. The data implies that most of the businesses were facing

decrease in terms of their profit margin. Maximum of retailers (85.1%) accepted that

there is a decrease in profit margin in recent years because of the price differences

brought by e-commerce. Maximum discounts are offered in order to retain them.

Table 3. Increase in Discounts

 Alvarez, Bernabe, Catapang, Dayag, Fuentes, Mariano, Masa,
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FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
3. Have you increased discount rates to 59 8 88.1% 11.9%
customers in recent times?
As presented on the table in regards with businesses giving increased discount

rates to their customers, 59 or 88.10 % of the respondents answered yes and 8 or 11.90

% of the respondents answered no. The data implies that most of the businesses needs

to offer higher discount rates in order to attract and retain customers.

Table 4. More Inquiry for Discounts

FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
4. Do customers ask for discounts before making 67 0 100% 0%
purchases?
As presented on the table in regards with customers asking for discounts before

making a purchase from the business, 67 or 100.00 % of the respondents answered yes

and no one among the respondents answered no. The data implies that all businesses

encounter customers that ask for discounts before buying making purchases.

Table 5. More Variety of Stock

FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
5. Do you keep more variety of stock in your 29 38 43.3% 56.7%
store nowadays?

The Table shows that out of the 67 respondents involved in the study, 29 or

43.3% of the respondents says that they keep more variety of stocks in their own store

rather than releasing it to the public. On the other hand, 38 or 56.7% of the respondents

says that they rather release their product to the public than keeping it.

Table 6. After-sale Service

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FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
6. Do you provide timely after-sale services of 35 32 52.2% 47.8%
personalized nature to your customers?
As presented on the table in regards with businesses providing timely after-sales

services of personalized nature to their customers, 35 or 52.20% of the respondents

answered yes and 32 or 47.80 % of the respondents answered no. More than half offers

after-sale services to attract and retain customers.

Table 7. Advertisement
FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
7. Do you advertise? 20 47 29.9% 70.1%
As presented on the table in regards with businesses doing advertising, 20 or

29.90 % of the respondents answered yes and 47 or 70.10% of the respondents

answered no. The data implies that most of the businesses here in Santiago do not use

advertisements on selling their products. Advertising increases their cost of selling

which decreases profit.

Table 8. Home Delivery Service

FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
8. Do you provide home delivery services to your 2 65 3% 97%
customers?
As presented on the table in regards with businesses providing home delivery

services to their customers, 2 or 3.00 % of the respondents answered yes and 65 or

97.00 % of the respondents answered no. The data implies that almost all of the

businesses do not offer home delivery services to their customers. Due to lack of funds

and personal infrastructure, less retailers are providing home delivery services.
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Table 9. Increase in Window Shopping

FREQUENCY PERCENTAGE
QUESTION
YES NO YES NO
9. Is there an increase in window shopping 52 15 77.6% 22.4%
nowadays?
As presented on the table in regards with the increased of window shopping

nowadays, 52 or 77.60 % of the respondents answered yes and 15 or 22.40 % of the

respondents answered no. The data implies that window shopping nowadays has

increased and prefer to look around first before buying.

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DISCUSSION OF FINDINGS

Part I. The Different Threats of E-commerce to Local-Physical Stores

Decrease in turnover is evident in local-physical stores

With the advent of e-commerce in the Philippines and their unprecedented

growth, these local physical stores have taken them in different ways—some even using

it to their advantages. But, it’s undeniable that they have been seeing lesser sales

turnover for the past three years. Sales turnover is the amount of sales a business have

relative to their inventory. Table 1 shows that 92.5% of respondents have seen a

decrease in sales for the past three years. This tells us that 62 out of 67 respondents

have been negatively affected by e-commerce, directly or indirectly. This trend tells us

that customers and consumers are turning to e-commerce because of its intrinsic

advantages that physical stores can’t assure like convenience. Sales of these stores

have lowered as more people use online-shopping platforms. It shows that there is a

negative impact of e-commerce to the revenue generation of the business.

Decrease in profit margin is relatively lower than decrease in sales

Because sales is negative impacted by e-commerce, profit is also negatively

affected. There has been a growing trend of decreasing profit margin because of e-

commerce. Table 2 shows that 85.1% of respondents have a decrease in profit margin.

57 out of 10 respondents had lower profits for the past three years. These local-physical

stores have been seeing lesser profits because many consumers switched to using

online-shopping platforms more than going to local physical stores. But, relative to their

sales turnover, some, at least, were able to retain and cope up with profit even though
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sales went down. Some have raised prices in order to cope up with lesser sales but a

majority have decreased in both turnover and profit margin.

Increase in discount and more inquiry is highly common

Many retailers agree that it’s very unfortunate that the customers are demanding

for discount whilst comparing it with the availability of a product at a discount price

through online shopping. The retailers are put in a situation where they increase to

maximum discounted price to still attract and retain customers. All customers ask for

discounts before making purchases. But, not all retailers (11.9%) increased discount

rates to customers.

Variety of stocks increased only significantly

Variety of stocks increases the chance for more sales. But, only 43.3% or 29 kept

more stock variety. 56.7% or 38 of the respondents wish to keep more variety but space

and cost constraint stop them from doing so. There are less retailers who have

increased their stock variety. Because of the scalability problems of their business and

because of the price competitiveness of online-shopping platforms.

After-sale services are common

Customer relations are important to customer attraction and retention. 35 or 52%

of retailers offer after-sale services that are of personalized nature to their customers.

Significantly more retailers offer after-sale services such as the ability of the customers

to exchange products after purchase. This will give customers less constraints when
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purchasing. This is also evident to the Filipino culture of “suki” or a “frequent and loyal

customer”.

Many do not advertise

Because of Filipino culture such as “suki”, most (70.1% or 47) retailers do not

advertise. Mainly because of the informal nature of the transactions in these markets,

there is no need for advertisement since they essentially sell the same products (such

as used clothes). Advertisements are used to be apart from the competitors, but in

these markets, they are one. When one pertains to a market, they don’t always

particularly talk about a store, rather it is the whole.

Some deliver to their customers’ homes

Home delivery services are not common among retailers, especially of small

size. On those that supply to other stores offer home delivery services. 97% or 65

retailers provide home delivery services. Many also do not deliver because of the large

cost and lack of equipment. They also don’t need to offer home delivery services since

most customers come to them.

Window shopping is commonly true

Most (77.6% or 52) retailers noticed that there is an increase in window shopping

time. Many customers window shop then find that product online, although that isn’t the

case for most respondents since most doesn’t have a close similarities of products.

Many though window shop but when they don’t find a product that is discounted

enough, they look online since it’s faster and more convenient.
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Part II. How Advertising Alleviate the Threats of E-commerce

Advertising through social media is one way to cope up with the threats of e-

commerce. Many of the respondents don’t advertise, but those who do use social media

platforms in order to promote their products. For one, it’s similar to using e-commerce.

Advertising products, especially on social media platforms, have been a trend amongst

proprietors and entrepreneurs. Much like e-commerce, digital advertising reaches

customers online. They can see the products in convenience (they can choose a time to

view it, even at night, through their phones). Advertising helps these local-physical

stores to attract customers to their shops. Advertising is always a crucial part of

business strategies, and the visibility that brands experience often has an impact on the

overall reach of the business. Because they may find the business’ products with the

ease of online promotion, they can cope with the threats of e-commerce. Some may

even adapt e-commerce to their business in order to fully cope.

Part III. Why Retailers Still Don’t Adapt E-commerce

E-commerce isn’t always good for everyone. One major concern is its need for

an internet connection. That’s a problem for these businesses since their main

demographic are of older generation. This implies that most of their customers don’t or

don’t usually use these online platforms. Also, e-commerce requires attention and good

management, which can generally interfere with the operations in the physical store.

Another reason why retailers don’t adapt e-commerce is because of the lesser

effect e-commerce for these retailers. If we look at the data, many small businesses

close just before five years (and mainly because of lower sales and profit). This is also
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true for these stores. E-commerce isn’t the main contributor to this decrease, but

technically it still does. There are many factors that contribute to these effects.

Industries change and with that change, it can employ new standards. This is

true for e-commerce. It connected the business and the customer the way we connect

people. Resisting this change is though for these local-physical stores, especially for

their size. But in the end, adapting it may be the only way to survive the market.
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CONCLUSION

E-commerce affected retailers in many ways. This study aims to identify the threats of

e-commerce to local-physical stores in terms of decrease in turnover, decrease in profit

margin, increase in discounts, more inquiry for discounts, variety of stocks, after-sale

services, advertisement, home-delivery service and increase in window shopping.

Based on the findings of the study, the following conclusion are drawn:

1. Most of the respondents’ average sales for the past 3 years decreased due to lack of

engagement in the electronic commerce.

2. Majority of the respondents have a decreased rate in terms of their profit margin.

3. Majority of the respondents offer discounts to their customers to attract them in

buying their product.

4. All of the respondents of the study offer discount to the customers when they try to

bargain for it.

5. Most of the respondents keep their products at stock, while others release it for the

purpose of attracting customers.

6. Half of the respondents offer after-sales services to their customers while the other

half do not.

7. Most of the respondents do not use advertisement on selling their product.

8. Majority of the respondents do not offer home delivery services to their customers.
 Add to Cart: Threats of E-Commerce to Local Physical Stores: A
D e s c r i p ti v e S t u d y

9. Most of the respondents are affected by the increasing number of window shopping.

RECOMMENDATION

For improvement, effectivity, efficiency and better results, the researchers would like to

recommend the following:

1.) Physical store owners must consider mobile ordering/ e-commerce in their business

since plenty of buyers wants convenience and variety of choices. This is to simply keep

in touch with their customers or potential buyers by means of sharing and selling their

products online. This will also help businesses to reach more people for awareness and

acknowledgement to their products.

2.) Having strong in-store visual can also attract customers. People tend to be attracted

with appealing products so business owners must display and arrange their products

multidimensional, neatly, and tidy.

3.) Establishing the rights goals. It is challenging but it is achievable once the business

owners communicate with their employees on how to be passionate and knowledgeable

on selling their product in the market. Providing a quota to their employees can also

motivate them to increase their sales. Businesses can also device creative and new

marketing strategies to attract more buyers for it shows eagerness of the business and

persuasion.
 Alvarez, Bernabe, Catapang, Dayag, Fuentes, Mariano, Masa,
Pascua

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Information and Service Exchange:Utilizing Progressive Information

Communication Technologies.Retrieved from

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+exchanges+or+direct+physical+contact.+(Aldin,+et+al.,

+2004)&source=bl&ots=Qj43pMz77R&sig=ACfU3U0RXNpM2tBU7LQm6Ypy1hi

ZDXDGBQ&hl=en&sa=X&ved=2ahUKEwipjpaag4voAhUPVpQKHTpIDGQQ6AE

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December 2019).
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 Foley, B.(2018). Purposive Sampling 101. Retrieved from

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(accessed on 8 December 2019).

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Examples. Retrieved from https://www.scribbr.com/methodology/descriptive-

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Medium-Sized Business, 2018 — Technology Investment to Grow Revenue and

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sa=t&source=web&rct=j&url=https://www.idc.com/getdoc.jsp%3FcontainerId

%3DUS42567118&ved=2ahUKEwiD97q4j4voAhUSUd4KHTDlBUIQFjAAegQIBx

AC&usg=AOvVaw04bPJlsAiRABohqXj-TZ_4.(accessed on 17 January).

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https://sportsfinda.com.au/staging3981/a-history-of-marketplaces-from-bazaars-

to-e-commerce-part-2/.(accessed on 8 December 2019).

 ("Survey Research", 2019). Retrieved from

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 The Digital Report 2019.(2019).Filipinos are world’s heaviest internet users in

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says/amp/&ved=2ahUKEwj61ufxh4voAhUQwosBHchYC1MQFjABegQIBRAB&us

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 The Philippine Digital Strategy Transformation 2.0: Digital Empowered Nation.

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Vaw3XOtN4I6geikHo58dzJbpk.(accessed on 8 December 2019).

Add to Cart: Threats of E-Commerce to Local Physical Stores: A
D e s c r i p ti v e S t u d y
 Alvarez, Bernabe, Catapang, Dayag, Fuentes, Mariano, Masa,
Pascua

APPENDIX A

Survey Questionnaire

UNIVERSITY OF LA SALETTE INC.

SENIOR HIGH SCHOOL DEPARTMENT
Dubinan East, Santiago City

Dear Respondent,

Greetings in the name of peace and reconciliation!

We, Grade 12 ABM 1 students, are conducting a research study to determine the threats that e-commerce
pose to local physical store in Santiago City, Isabela. This survey is distributed to gather information regarding the
research study entitled “Add to Cart: Threats of E-Commerce to Local Physical Stores: A Descriptive Study”. With
this we would like to seek for your assistance in order to accomplish this questionnaire. Your response is a vital part
of the study. Rest assured that all the gathered data from you will be handled confidentially and will only be used for
academic purposes.
Thank you very much. God Bless!
-Researchers
SURVEY QUESTIONNAIRE

NAME / ALIAS (Optional):

Direction: The questions pertain to the nine determinants used in the study. Mark the "YES" box adjacent to
the question with a check (√) if you agree with the question. If not, leave the box blank.

QUESTIONS YES
1. Has there been any decrease in average sales in the past three years?
2. Is there any decrease in profit margin?
3. Have you increased discount rates to customers in recent times?
4. Do customers asked for discounts before making purchases?
5. Do you keep more variety of stock in your store nowadays?
6. Do you provide timely after sales services of personalized nature to your customers?
7. Do you advertise?
8. Do you provide home delivery services to your customers?
9. Is there an increase in window shopping nowadays?
TOTAL
APPENDIX B

Directory
Add to Cart: Threats of E-Commerce to Local Physical Stores: A
D e s c r i p ti v e S t u d y

ALYSSA JOY CALARA ALVAREZ RONCHER L. BERNABE

Nickname: Joy Nickname: Haku
February 9, 2002 June 17,2002
18 17
Burnavista, Santiago City, Isabela Address: P6 Malvar Santiago City
Isabela
09166940321
09997640315
Filipino
Filipino

ANGELA MAE C. CATAPANG BLU HANS DADURAL DAYAG

Nickname: Angela Nickname: Hans
October 29, 2001 October 22, 2002
18 17
Bugallon Norte Ramon, Isabela Rizal, Santiago City, Isabela
09053892556 09556528449
Filipino
Filipino
Alvarez, Bernabe, Catapang, Dayag, Fuentes, Mariano, Masa,
Pascua

LEANDRO EMMANUEL MIGUEL

FUENTES
Nickname: Lean
November 18,2001
18
Purok 3, Velasco Subdivision, San
Fabian, Echague, Isabela
09273802315
Filipino

ALAINA CHESKA DELA CRUZ MASA

Nickname: Ches
March 22, 2001
18
Rizal, Santiago City, Isabela
09054421389
Filipino