Feasibility Study

WEB-BASED SHOPPING: CONSUMERS’ ATTITUDES
TOWARDS ONLINE SHOPPING AS PERCEIVED

An Undergraduate Thesis Presented to the
Faculty of
St.Anne College Lucena Inc.,
Lucena City

In Partial Fulfilment of
The Requirements for the Degree of
Bachelor of Science and Business Administration
Major in Marketing

Submitted to
Mrs. Analie Montserrat

Submitted by
Aquino, Armela
Buncha, Shiena
Baronia, Donabelle
Chua, Jonathan Kiel de Guzman, Jade Marienne
Tan, Mark Anthony

January 2012

Chapter I
INTRODUCTION

Background of the Study

Internet is changing the way consumers shop and buy goods and services, and has fast evolved into a global experience. Many companies have started using the Internet with the aim of cutting marketing costs, thereby reducing the price of their products and services in order to stay ahead in highly competitive markets. Companies also use the Internet to convey, communicate and spread information, to sell the product, to take feedback and also to conduct satisfaction surveys with customers. Customers use the Internet not only to buy the product online, but also to compare prices, product features and after sale service facilities they will receive if they purchase the product from a particular store. In addition to the tremendous potential of the Ecommerce market, the Internet provides a unique opportunity for companies to more efficiently reach existing and potential customers. Although most of the revenue of online transactions comes from business-to-business commerce, the practitioners of business-to-consumer commerce should not lose confidence.
Online shopping has become a popular way for consumers. This new innovative pattern of shopping not only brings a great number and wide range of merchandise to consumers; it also offers a huge market and numerous business opportunities. In the past twenty years, we have witnessed the rapid development of the Internet and the geometric growth of the Internet users. Although the number of Asian Internet users was the highest in the world, the Internet penetration rate of Asia was lower than elsewhere. The penetration rate of Internet users in Asia was just higher than Africa, as at 30 June 2010, according to the Internet World Statistics (2012). We have been clearly feeling the tremendous change that was brought by the Internet, which has penetrated every corner of the world. From communication, education, and finance to entertainment, we can clearly see the application of the Internet. The Internet has resulted in a great revolution for every industry. The working efficiency, information transmission, and even cultural exchange have been unprecedentedly improved. Without doubt the Internet has influenced our lives deeply in which it plays an indispensable and irreplaceable role. Online shopping provides a good example of the business revolution. E-commerce is currently experiencing a period of rapid development; the large number of Internet users provides a good foundation for the expansion of the online shopping market. In this study, website design, customer service quality, reliability/fulfilment and trust/security were used for analysis.

Conceptual Framework
OUTPUT
PROCESS
INPUT
The schematic diagram below exhibited the terms assumed between the relationships among the major variables of the study. Presented is an Input-Process-Output (IPO) process that would further elaborate the relationships and would facilitate better understanding of the undertaken study.

Consumers’ attitudes towards online shopping

Survey Method/ Checklist

Web-Based Shopping

Statement of the Problem The study aims to know the consumers’ attitudes towards online shopping as revealed by the selected online buyers of Lucena City. Specifically, the study will seek to find answers to the following questions: 1. What is the demographic profile of the respondents according to: a. Age b. Sex c. Status d. Occupation 2. What is the level of consumers’ attitude towards online shopping? 3. What are the factors that could influence consumers’ negative attitude to adopting online shopping in terms of: e. Website design f. Customer service g. Reliability/Fulfilment h. Trust/Security 4. What implication can be derived from this study?

Statement of the Hypothesis/ Assumptions

Significance of the Study
The researchers decided to pursue this study about consumers’ attitudes towards online based shopping. The beneficiaries of the study are the people in the community, especially those who’s actively taking part in the said study. It also contains significant basis about the factors that could influence consumers’ attitudes to adopting online shopping. The respondents will be aware whether which contributing factor influences the consumers’ attitudes towards online shopping the most. Upon conducting this study, the researcher benefits are they will know which factor is influencing the willingness of consumers’ to engage in online shopping. Also the researchers, who will become future marketing professionals, they will understand about the web-based shopping or e-business/e-commerce.

Scope and Delimitation The coverage of this study is about the consumers’ attitudes towards online shopping. It also covers the factors influencing consumers’ attitude to adopting online shopping in terms of; website design, customer service, reliability/fulfilment and trust/security.
The researchers limited this research to the responses of thirty (30) selected residents of Lucena City who have already experienced or experiencing online shopping. The respondents are chosen by means of purposive technique in which a questionnaire is the main instrument of the researchers in collecting the data for the study.

Definition of Terms * Internet is a global system of interconnected computer networks that use the standard Internet protocol suite (TCP/IP) to serve billions of users worldwide. * Ecommerce (or electric commerce) refers to the buying and selling of goods and services via electronic channels, primarily the Internet. * Online Shopping or online retailing is a form of electronic commerce allowing consumers to directly buy goods or services from a seller over the Internet without an intermediary service. An online shop, e-shop, e-store, Internet shop, web-shop, web-store, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping center. * Customers (also known as a client, buyer, or purchaser) is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration. * Business A commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities. * Penetration the proportion of the total number of potential purchasers of a product or service who either are aware of its existence or actually buy it * Tremendous Very great in amount, scale, or intensity. * Revenue or turnover is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. * Merchandise is any practice which contributes to the sale of products to a retail consumer. * Unprecedentedly without previous instance; never before known or experienced; unexampled or unparalleled: anunprecedented event. * Indispensable is any practice which contributes to the sale of products to a retail consumer.

Chapter II
REVIEW OF RELATED LITERATURE AND RELATED STUDIES This chapter presents the literature and related studies which have direct bearing on this study. This set of reviewed facts served as guide in undertaking and organizing the whole study and also in making questionnaire necessary in conducting the study.
RELATED LITERATURE
The World Wide Web can change human behaviour and human interactions to a very large extent. Web based shopping behaviour is one major example to point out the trends in this direction. Today most consumers are looking for ways to streamline their shopping. Therefore, consumers tend to want to get items quickly without bargaining on price or quality, hence, e-shopping has become an important consideration. Consumers can order an amazing variety of products via the internet. Customers like online shopping, because online shopping saves time. Online shopping is indoor shopping, no need to go outside. By rapid access customers get information quickly. Online shopping eliminates of physical appearance. On over all, online shopping is the easiest way to purchase products. Online shopping in the western countries is very common to all but for Malaysia it is very challenging. In Malaysia, online shopping is something new, therefore the transactions are very limited. The Malaysian people still believe that online transactions are not secured enough to protect the payment method such as credit card and also disclosure of information.
In online shopping, sometimes consumers are not satisfied with the manner in which products and services are sold in the online environment. Sometimes items purchased from online do not deliver on time even though online message is very clear to deliver the item within 24 hours to the customer. The strategies that marketers are using have not adequately addressed the changing demands of the consumer to ensure customer satisfaction. The marketing function limits the scope of marketing strategies in operating successfully online. New electronic communication marketing variables have exploded the alternatives available to customers globally. These changes have redefined many of the old views of marketing, trade and power. Furthermore, many researchers recognize and accept that customer satisfaction is a logical measurement of success in market exchanges. (www.ccsenet.org/ijbm)

When ecommerce was in its infancy, consumers used the Internet to purchase basic items such as books and CDs that usually didn't involve size, quality, color, or style issues. Shoppers knew what they were getting and choices were based almost solely on price. Slowly, the array of goods expanded to computers and consumer electronics and online shopping became the domain of males. Not until apparel, accessories, and personal care items began selling online did women become a recognizable and sizeable audience. Now women spend more money online than men in all but three categories: electronics/computing, event/movie tickets, and flower/greeting cards/gifts — according to digital marketing research firm comScore. While females comprise 71 percent of apparel, accessory, and jewelry purchases, males are increasingly making their presence known, especially in the luxury category. And their interest in high-end items is not limited to apparel and accessories. Cars, technology gadgets, travel, and health and wellness rank high for males shopping online.

People have been using their computers to shop for over a decade now. It’s easy to do and it’s mostly safe, although some people are still a little nervous.
Benefits of Online Shopping: * It is brilliant for ’commodity’ products such as books, CDs, clothes – stuff that’s going to be identical, no matter where you get it from. * Many supermarkets offer an online shopping service with delivery and most are excellent. Bear in mind that you won’t be able to sort through fruit and veg to look for the best, and the sell-by dates on the cold stuff will be out of your control. * Auctions are another way of shopping. You can set up an account with an online money transfer account and link it to your bank or debit/credit details. PayPal currently has a monopoly on this kind of service.
Finally, if a website doesn’t give you an address and doesn’t give you a procedure on what to do if there’s a problem and you need to return goods, it’s in breach of the Distance Selling Regulations (consumer protection law) and shouldn’t be used. (WebWiseTeam 2010)