Pulo Senior High School Pulo, City of Cabuyao, Laguna DIFFERENCE IN CUSTOMER SATISFACTION OF YOUNG ADULTS IN ONLINE SHOPPING AND DIRECT SHOPPING IN THE CITY OF CABUYAO, LAGUNA A THESIS Presented to The Faculty of Accountancy, Business and Management Pulo Senior High School Pulo, City of Cabuyao, Laguna In Partial Fulfillment of the Requirements for PRACTICAL RESEARCH 2 ALYZZA JOY A. ALIPARO ANGELICA C. MARFIL NICOLE B. NOVILLA MARK JAY S. OLANGO Pulo Senior High School Pulo, City of Cabuyao, Laguna CHAPTER 1 THE PROBLEM AND ITS BACKGROUND Introduction Market offers a wide variety of choices for the consumers in deciding where to buy or purchase their goods. Consumers, the people who buy goods and services and perform this kind of activity, often consider certain factors before officially buying a product. And so, business can be related to life: in order to survive, it should continue to maintain the quality of service and product it gives in order to sustain its growth and development; and to gain customer loyalty through guaranteed satisfaction. Business should maintain high quality services and goods in order for the customers to continuously patronize their products to maintain good relationships. Having a good consumer relationship is vital for a business, as shopping, a certain highlight of this study, is one of the constant activities of a consumer and is a rolling commodity in the market place. With the availability of goods in stores and even on the internet, what do the consumers prefer better? In the market where competition is highly observed, the act of an individual purchasing good(s) for a want or a need is a critical move and factor. One can shop with just one click from home over internet, mainly referred to Pulo Senior High School Pulo, City of Cabuyao, Laguna online shopping, and on the other hand, one can directly proceed to stores and perform direct shopping. This study aims to use both ways of shopping to determine customer satisfaction, compare and analyze the differences and similarities in an even broader aspects related to this research. Pulo Senior High School Pulo, City of Cabuyao, Laguna Conceptual Framework 50 Male and Female Young adults who have both tried Online and Direct Buying of clothes Customer Satisfaction Online Shopping Direct Shopping Availability Availability Quality Quality Price Price Figure 1: On the above diagram the researchers will be conducting a survey on 50 male and female young adults who have tried both online and direct buying clothes. Pulo Senior High School Pulo, City of Cabuyao, Laguna Operational Framework Input - Gathering their satisfaction on buying. - Based on the clothes’ availability, quality and price. Process - Gathered data - Customer Satisfaction - Conducting a Survey Output -After the survey the researchers will be evaluating the data on both 50 subjects satisfaction rating on availability, quality and price. Figure 2: The data gathered will be used to therefore conclude on research topic. Online Shopping vs. Direct Shopping customer satisfaction on buying clothes. Statement of the Problem This study generally aims to determine if there is a difference between online shopping and direct shopping in terms of the respondents’ customer satisfaction. Pulo Senior High School Pulo, City of Cabuyao, Laguna Specifically, this study seeks to answer the following questions: 1. What is the demographic profile of customers in terms of: a. Sex b. Age 2. What is the rate of customer satisfaction in buying through online shopping and direct shopping in terms of: a. Availability b. Quality c. Price 3. Is there a significant difference on young adults’ satisfaction through online shopping and direct shopping of clothes in Cabuyao City, Laguna? Research Hypotheses This research, in connection to the young adults’ satisfaction through online shopping and direct shopping of clothes in Cabuyao City, Laguna presents he following hypotheses: Pulo Senior High School Pulo, City of Cabuyao, Laguna Null Hypothesis Young adults’ satisfaction through online shopping of clothes has no significant difference in young adults’ satisfaction through direct shopping of clothes in the city of Cabuyao, Laguna. Alternative Hypothesis Young adults’ satisfaction through online shopping of clothes has a significant difference in young adults’ satisfaction through direct shopping of clothes in the city of Cabuyao, Laguna. Significance of the Study This study aims to contribute research data and knowledge about the young adults’ satisfaction through online and direct shopping of clothes around the area of Cabuyao city, Laguna. Pulo Senior High School Pulo, City of Cabuyao, Laguna For the consumers: The future buyers can gain statistical data on young adults’ satisfaction through online or direct shopping of clothes in Cabuyao city, Laguna which they can use in their decision-making in buying clothes as well. For Entrepreneurs: Entrepreneurs, can benefit in a way that they will be able to know or to determine the advantages and disadvantages of online selling and direct selling of clothes, and enable to identify the threats that might encounter in achieving the satisfaction of their customers. For Students: Students, as are still in the process of learning, will be able to gather statistical data through this study’s provided point of view about the research, and can be a reference in their live applications in the near future. For Future Researchers: This study will also benefit the future researchers, as this will serve as a source or material related to the study they will be conducting. The result of this study can be a great help in providing statistical data and can be considered as researcher’s guide in their process. Pulo Senior High School Pulo, City of Cabuyao, Laguna Scope and Delimitation This study is a correlational research focusing on the difference between young adults’ satisfaction through online shopping and direct shopping of clothes in Cabuyao city, Laguna. This has nothing to do with the respondents’ preference in buying clothes whether through online or direct shopping. This research targets a number of fifty young adults, ranging from the age of eighteen (18) to thirty-five (35) who has experienced shopping clothes both online and direct around the area of Cabuyao city, Laguna. The consumers, the main factor of the research would help the entrepreneurs and businessmen recognize the effectivity of direct and online selling to the consumers—in determining the general outlook of satisfaction and how it affects a customer’s decision in buying clothes. The potential weaknesses in conducting this study would be the accessibility in finding the exact target number of respondents who fit the requirements for this research; and the yet unknown potential threats in completing the study. Pulo Senior High School Pulo, City of Cabuyao, Laguna Definition of Terms Availability – Clothes – Customer Satisfaction – Direct shopping – Even numbers – Market Odd numbers – Online shopping – Price – Quality – Shopping – Nicks paki lagyan ngrrl sa young adults Availability – For the thermodynamic function "availability", in the sense of available useful work, see exergy. For availability as a form of cognitive bias, see availability heuristic. Availability of a system may also be increased by the strategy of focusing on increasing testability, diagnostics and maintainability and not on reliability. Pulo Senior High School Pulo, City of Cabuyao, Laguna Buying – a process in which a buyer whose seller fails to deliver the securities contracted for, can "buy in" the securities from a third party. Management buy-in, when an outside management becomes a company's new management by buying it. Maintain – to provide with necessities for life or existence. Market – regular gathering of people for the purchase and sale of provisions, livestock and other commodities. Patronize – treat with an apparent kindness that betrays a feeling of superiority. Purchase – hold your position or something for applying power advantageously or the advantage gained by such application. Quality – the standard of something as measured against other things of a similar kind. Service – the action of helping or doing work of someone, supplying a public need such as transport, communication or utilities. Shopping – visit one or more stores or websites to buy goods. Sustain – strengthen or support physically and mentally. Pulo Senior High School Pulo, City of Cabuyao, Laguna Chapter 2 REVIEW OF THE RELATED LITERATURE This chapter includes the review of related literature and studies which the researchers have perused. This would help in familiarizing information that is relevant and similar to the present study. Related Literature Customer Satisfaction Customer satisfaction according to Zikmund (2001) is the feeling that a product has met or exceeded the customer’s expectations. He highlights that keeping the current ones satisfied is no less than attracting new ones. Understanding the link between job and satisfied customers, the culture of other organizations is to focus on delighting customers rather than the products. Customer-intimate companies like home depot do not pursue one-time transactions, they cultivate relationships. Maximizing customer satisfaction should be the target in applying marketing efforts (kanuk, 1978). They assert the idea of certainly in providing the best possible product for the money to avoid downfall of customer expectations in the reality of what the product an actually deliver. They discussed the strategy or option of applying positive reinforcement to win customer patronage, in the Pulo Senior High School Pulo, City of Cabuyao, Laguna form of small amenities, good staff approach, appealing environment and rewards. The satisfaction of the buyers depends on their expectations from the product and its performance (Brake, 2001). The buyers are satisfied if the product they bought reached their expectations. Marketers should consider not just the performance of their product but also the expectations of their customer toward on their product. Brake also stated that marketers should make product claims that match to its product performance and make sure that the buyers get satisfactory information before they make a decision to buy. Customers may often doubt of making purchase decision because of inadequate information given by the marketers and it may create uncomfortable tension. Brake called that as cognitive dissonance or post purchase dissonance which is common in the case of high involvement product with low differentiation. Customer Satisfaction in Online Shopping Online shopping can be a smart consumer’s best friend according to Karp (2009). It is easy to make purchase by just mouse clicks, buyers could always visit shopping comparison sites. Shopping online can be so efficient according to Colker (2000). The buyer’s illusion towards their order will proceed with the same computerized smoothness. Pulo Senior High School Pulo, City of Cabuyao, Laguna Gilon (2012) gave 8 reasons why consumers like to shop online. He stated that consumers more likely to buy online because of numerous advantages and benefits. Some of consumers reasons for buying online are (1) convenience, (2) better prices, (3) variety, (4) fewer expenses, (5) comparison of prices, (6) crowds, (7) compulsive shopping, (8) discreet purchases. It is convenient to buy online for they do not have to wait in line or wait for someone to assist them with their purchases. They can do shopping without spending an hour especially when they are busy. The prices are cheap because goods from the manufacturer or seller are come from them directly without involving the middlemen. Consumers can have an access of the different sellers with the same products in just one place. They do not have to spend money to travel on the certain store. It also helps consumer to lessen their expenses in eating out, traveling, and impulsive shopping. Consumer has the ability to share information and reviews to other shoppers who have an experience with the product. They can also avoid the crowd while shopping for they just have to stay at home. According to Haqle (2014), he did not discourage people from buying online but to avoid wasting money or receiving unexpected products, buyers have to make sure about their size, suitable style and only trust popular onlineshopping websites. Differences between Online Shopping and Direct Shopping Pulo Senior High School Pulo, City of Cabuyao, Laguna According to Ralph (2000), retail store business model needs to have several thousand square feet in placing their business while online seller do not have to meet in public face to face and can occupy less space like space in home office, garage, lower cost light industrial warehouse space. According to Lieber and Syverson (2010), search costs online are lower than offline markets. There are some cases that we can consider a particular salient interaction between markets are online and offline channel. It may cause slow process and delay the promise time of delivering the products towards their customer. There is possible that the hours turn to days or weeks to be claim. In terms of selling it is more advantage to the online seller against in direct selling. In online selling you can post all the product description, the advantages and the beauty of the product through in one particular subject and put some product design to be more attractive. Unlike the direct selling, seller must need a power of voice in order their costumer will encourage to buy your product. Sales talk and due some voice strategy to convince their purchaser is very risky for the direct seller. According to Belanche, Casalo, and Guinsliu (2012), Nowadays most of the people influence by the new technology especially on social media that being use to communicate and any other form of interaction. Through this influential website, online seller can easily attract the interest of the consumer. Website is more trending in every aspect that gains more attention from people. Pulo Senior High School Pulo, City of Cabuyao, Laguna In the article written by Stern (2012), he cited the response of employee to the question about the online vs. In-store price and he could get the online price in store. The response of the employee to this is he’d better stays at home and make orders on his computer. Related Study Customer Satisfaction in Online Shopping In the study conducted by Abdeldayem (2010), the attitudes of online shopping and the intention of the buyers to shop online are not only affects the ease of use, usefulness, and enjoyment, but also the perceived Web-store traits, channel traits and consumer traits. In the study conducted by Elsevier (2010), online customer’s satisfaction was affected by information quality, delivery quality, system quality, service quality, product quality, and perceive price at significant level. Synthesis Customer satisfaction is not about the product performance itself but to meet the expectations of their customers toward on the product sold. Online shopping and direct shopping is the two common types of selling in the industry but what should the difference between the two? Based on what Lieber and Syverson (2010) stated, the online seller could put some product design that will Pulo Senior High School Pulo, City of Cabuyao, Laguna catch the eyes of the consumer unlike on direct selling, seller need to interact face to face to their costumer to encourage buying their product. And Lieber and Syverson also stated that doing sales talk is very risky in convincing their customer. Nowadays, consumer mostly prefers to stay at home while shopping, less expenses and efforts. Just like what Gilon (2012) said that buyers choose to buy online because of numerous advantages and benefits of it, they do not have to spend too much time in shopping and travelling. By the use of social media, online seller can easily attract the interest of their customer to buy their product as what stated by Belanche, Casalo, and Guinsliu (2012). They are comfortable sitting while scanning on their phone and thinking what to buy. But on the other hand, direct shopping can still be appropriate to the buyer who is self-secured about on the quality of the product that they are going to buy. As what (Kanuk, 1978) stated, to avoid the downfall of the customer is to meet the expectation of what product actually deliver. Buyers are often thinks for the high quality product yet affordable product. Online shopping can be affordable but does it meet the expectation of the customer? There are times that customer get disappointed on what they had bought product online due to low quality product. Just like what Haqle (2014) stated, buyer have to make sure about their size, suitable style and only trust popular online-shopping websites to avoid wasting money or receiving unexpected products. Pulo Senior High School Pulo, City of Cabuyao, Laguna The gap of this study is the internal transactions between the customer and the seller online, which other or oftentimes leads to fraud and deception that lessens the customer satisfaction and trust due to not reaching the customer expectations. Pulo Senior High School Pulo, City of Cabuyao, Laguna Chapter 3 RESEARCH METHODOLOGY This chapter includes the research design, the sample, the instruments, the data collection procedure, and the plan for data analysis. Research Design This study is quantitative in nature since the research question that the researchers seek to answer leads to numerical data. Specifically, the study is correlational as it aims to determine if there is a difference in young adults’ satisfaction through online shopping and direct shopping of clothes in Cabuyao city, Laguna. Participants of the Study The target population of the study are the young adults of Cabuyao City, Laguna. These young adults range from 18-35 years old who have experienced shopping clothes both online and direct. The researchers consider a sample of 50 respondents base from Fraenkel et al., (2012) for correlational research, as "It is deemed necessary to establish the existence of a relationship." with a five percent margin of error. These samples shall be conveniently selected through Pulo Senior High School Pulo, City of Cabuyao, Laguna convenience sampling with the young adults Cabuyao City, Laguna and to conveniently determine the sample. Instrument and Validation This study shall make use of a survey form prepared by the researchers where the respondents will rate their level of agreement (based on their experience) about the given statements regarding online shopping and direct shopping of clothes. The purpose of this survey questionnaire form is to assess the respondent's level of satisfaction between online shopping and direct shopping of clothes in accordance to the clothes’ availability, quality and price. The survey statements are divided into the categories of odd and even, whereas odd numbers are statements regarding online shopping and even numbers are statements regarding direct shopping. Data Gathering Procedure Requests for data collection Selection of 18-35 years old respondents who had tried both online and direct shopping Disbursement of survey questionnaire Collection of answers from the respondents. Pulo Senior High School Pulo, City of Cabuyao, Laguna Data Treatment and Analysis To answer the questions presented under the statement of the problem, the following statistical tools will be employed: 1. Percentage will be used to present and analyze data regarding degree of the young adults’ satisfaction through online shopping and direct shopping of clothes in accordance with the availability, quality and price. 2. The use of weighted mean to solve the average level of agreement in each statement. The weighted mean would be used for the interpretation of: 3. Two Tailed T Test which will be used to find if there is a difference between young adults’ satisfaction through online shopping and direct shopping of clothes in Cabuyao city, Laguna. Pulo Senior High School Pulo, City of Cabuyao, Laguna This survey form aims to gather information that will be used to interpret the data needed for the research entitled “Customer Satisfaction of Young Adults in Online Shopping and Direct Shopping of Clothes.” In line with the statement of the problem; (1) What is the demographic profile of the customers in terms of age and sex? (2) What is the level of customer satisfaction in online shopping and direct shopping in terms of availability, price, and quality? (3) And if there is a significant difference between online shopping and direct shopping in customer satisfaction at Cabuyao City, Laguna. Hoping for your kind consideration. Name (Optional): __________________________ Sex: ___________ Age: _________ Instructions: Put a check on the box corresponding to your level of agreement. 4 – Strongly Agree 3 – Agree 2 – Disagree 1 – Strongly Disagree STATEMENT 1. I am satisfied buying clothes online because it is always available. 2. I am satisfied buying clothes at a store because it is always available. 3. I am satisfied buying clothes online because of its quality. 4. I am satisfied buying clothes at a store because of its quality. 5. I am satisfied buying clothes online because it lasts for a year. 6. I am satisfied buying clothes directly from a store because it lasts for a year. 7. I am satisfied buying clothes online because I am able to find clothes that fit my size. 8. I am satisfied buying clothes directly from a store because I can fit them and find my size. 9. I am satisfied buying clothes online because of its affordable price. 10. I am satisfied buying clothes directly from a store because of its affordable price. 4 3 2 1 Pulo Senior High School Pulo, City of Cabuyao, Laguna Chapter 4 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA This chapter deals with the gathered data which were analyzed and interpreted for the better understanding of the study. The framework of the analysis and interpretation is guided by the problems stated in Chapter 1. 1. The demographic profile of customers in terms of sex and age Figure 1 The demographic profile of customers in terms of sex Sex 32% FEMALE MALE 68% Pulo Senior High School Pulo, City of Cabuyao, Laguna Figure 1 shows the demographic profile of young adults in terms of sex. It shows that the number of female with a percentage of 68% is greater than the number of male with a percentage of 32%. Figure 2 The demographic profile of customers in terms of sex Age 0% 10% 18-23 24-29 30-35 90% Figure 2 shows the demographic profile of young adults in terms of age. It shows that the number of 18-23 years old with a percentage of 90% is greater than the number of 24-29 years old with a percentage of 10% and to 30-35 years old with a percentage of 0%. Pulo Senior High School Pulo, City of Cabuyao, Laguna 2. The rate of customer satisfaction in buying through online shopping in terms of availability, quality and price. Table 1 The rate of customer satisfaction in buying through online shopping in terms of availability, quality and price. Weighted mean Verbal interpretation Rank 1.)I am satisfied buying clothes online because it is always available. 2.84 Positive 2.5 3.)I am satisfied buying clothes online because of its quality. 2.82 Positive 4 5.)I am satisfied buying clothes online because it lasts for a year. 2.8 Positive 5 7.) I am satisfied buying clothes directly from a store because I can fit them and find my size. 9.)I am satisfied buying clothes online because of its affordable price. 2.84 Positive 2.5 3.02 Highly Positive 1 Indicator Table 1 shows the interpretation and rank of each indicator from its weighted mean in the rate of customer satisfaction in buying through online shopping in terms of availability, quality and price. Indicator 9 “I am satisfied buying clothes online because of its affordable price.” got a weighted mean of 3.02 was interpreted as highly positive and was rank 1. Indicator 1 “I am satisfied buying clothes online because it is always available.” and indicator 7 “I am satisfied buying clothes directly from a store because I can fit them and find my Pulo Senior High School Pulo, City of Cabuyao, Laguna size.” got a weighted mean of 2.84 was interpreted as positive and was rank 2.5. Indicator 3 “I am satisfied buying clothes online because of its quality.” got a weighted mean of 2.82 was interpreted as positive and was rank 4. Indicator 5 “I am satisfied buying clothes online because it lasts for a year.” got a weighted mean of 2.8 was interpreted as positive and was rank 5. To determine the young adults’ satisfaction in buying clothes the following measures for the given statements were used: Categorical Responses Verbal Interpretation 4 Strongly Agree (SA) Very Positive 3 Agree (A) Positive 2 Disagree (D) Negative 1 Strongly Disagree (SD) Very Negative Assigned Points Numerical Ranges Pulo Senior High School Pulo, City of Cabuyao, Laguna 3. The rate of customer satisfaction in buying through direct shopping in terms of availability, quality and price. Table 2 The rate of customer satisfaction in buying through direct shopping in terms of availability, quality and price. Weighted mean Verbal interpretation Rank 2.) I am satisfied buying clothes at a store because it is always available. 3.16 Highly Positive 4 4.) I am satisfied buying clothes at a store because of its quality. 6.) I am satisfied buying clothes directly from a store because it lasts for a year. 8.) I am satisfied buying clothes directly from a store because I can fit them and find my size. 10.) I am satisfied buying clothes directly from a store because of its affordable price. 3.32 Highly Positive 2 3.06 Highly Positive 5 3.44 Highly Positive 1 3.24 Highly Positive 3 Indicator Table 1 shows the interpretation and rank of each indicator from its weighted mean in the rate of customer satisfaction in buying through direct shopping in terms of availability, quality and price. Indicator 8 “I am satisfied buying clothes online because I am able to find clothes that fit my size.” got a weighted mean of 3.44 was interpreted as highly positive and was rank 1. Indicator 4 “I am satisfied buying clothes at a store because of its quality.” got a weighted mean of 3.32 was interpreted as highly positive and was rank 2. Pulo Senior High School Pulo, City of Cabuyao, Laguna Indicator 10 “I am satisfied buying clothes directly from a store because of its affordable price.” got a weighted mean of 3.24 was interpreted as highly positive and was rank 3. Indicator 2 “I am satisfied buying clothes at a store because it is always available.” got a weighted mean of 3.16 was interpreted as highly positive and was rank 4. Indicator 6 “I am satisfied buying clothes directly from a store because it lasts for a year.” got a weighted mean of 3.06 was interpreted as highly positive and was rank 5. Pulo Senior High School Pulo, City of Cabuyao, Laguna 4. The significant difference on young adults’ satisfaction through online shopping and direct shopping of clothes in Cabuyao City, Laguna. Indicator Young adults’ satisfaction through online shopping and direct shopping of clothes in Cabuyao City, Laguna. t-test result t-test value Interpretation