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DIFFERENCE IN CUSTOMER SATISFACTION OF YOUNG ADULTS IN ONLINE SHOPPING AND DIRECT SHOPPING IN THE CITY OF CABUYAO

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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
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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.
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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.
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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.
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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:
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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.
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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.
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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.
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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.
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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
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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.
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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
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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.
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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
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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.
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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.
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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
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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.
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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.
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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
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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%
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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%.
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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
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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
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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.
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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.
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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
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