CHAPTER 2

REVIEW OF THE RELATED LITERATURE

2.1 Foreign Literature

SERVCON measurement developed in the context of offline shopping does not apply
unique aspect approach of online shopping comfort since the online retailers utilize internet as
the shopping platform. Various previous literature have proven the online service quality concept
by identifying same dimensions of service comfort like unique feature with dimensions like
facilitation in interactivities usage, information browsing, information in depth and richness, and
security.

Vijay et.al (2017) suggests that both internal and external elements have direct influence
on website satisfaction. They highlights on why and how satisfaction with website matters in the
contribution of shopping values and website atmospherics to behavioural outcomes by presenting
its mediating role.

The U.S. has the highest total revenue from online shopping out of every country in the
world. However, the United Kingdom has the highest ecommerce spend per capita. Chinese
citizens spend a higher percentage of their salaries online than any other country. (Ecommerce
Wiki, World Atlas)

2.2 Local Literature

Online shopping started on 1979 by English Entrepreneur named Michael Aldrich. His
system connected a modified domestic TV to a real time transaction processing computer via a
domestic telephone line. Today the online shopping becomes the hot trend of today’s generation
because of the different benefits that it gives through the buyers and the sellers. Consumers are
more confident about purchasing a product when they have done their own research online.
(Eunyu Nis, March 2014).
According to Svonavec (September, 2017), online shopping has proved to have many
positive advantages for consumers. Online stores are open 24 hours a day, so the issue of a store
closing before the consumer can make it on time exceptionally efficient during the holidays;
shoppers do not have to bother with the long, exasperating lines. Due to lack of operating costs,
online retailers can sell goods at lower prices so that this makes the experience of online
shopping not only faster and convenient, but it is also for cheaper than going to the physical
store. Although online shopping has advantages, there are many downsides to doing online
business. Back order goods can be prove to be exceeding trying for shoppers, especially during
the holidays, shoppers also lose the person – to – person communication that online retailer
cannot provide.

As said by Francia (October, 2018), Filipino shoppers also prefer inspecting the products
themselves before making a purchase, while others factored in the cost of shipping and the length
of delivery time. Research Tech Lab (RTL) noted that Filipinos more assured when they
examine the products before checkout, while being able to take the item immediately after
payment gives them peace of mind. It also recorded the enticements of online shopping from
July to September, which coincided with the sale promo of leading e-commerce sites Lazada and
Shopee. Here, the company found that 68. 61% of Filipinos Still favour traditional shopping.

The market has rapidly grown since then. According to Eshopworld.com, there are at
least 37.7 million e-commerce users in the country in 2018 from the 30. 2 million estimated in
2016. The number is expected to rise to 53.8 million by 2020. A report published in May 2018
found that despite its growing popularity, the Philippines lags in terms of e-commerce sales in
the Southeast Asian region.(Eshopworld.com).

According to Willy Kruh, he said that today’s consumer no longer goes shopping, but
shopping all the time and everywhere. In a truly global online marketplace, competition is no
longer limited to local shops during regular business hours. Consumers can easily buy from
retailer and manufactures located anywhere in the world or from those with no physical retail
locations at all.

2.3 Foreign Studies

The statistical results revealed that online customers monthly spending amount as well.
There was a statistically significant positive relationship between the amount of time and money
spent on the internet. The three most popular online shopping sites were determined as trendyol,
hepsiburada and alibaba. The products must online customers bought were clothing, stationery
products, online tickets, and electronic devices (Kilic, Z., Ates V. 2018).

Ayden and Demir (2011) pointed out that e- commerce consumers behaviours and
preferences that those who are 26-35 years of age and have a Bachelor’s Degree, whose income
is 1500 Turkish Liras and above are more likely to prefer e-commerce. In another study, they
have a conducted a research on the behaviour of civil servants purchasing products from the
internet. As a result of the research, it has been found out those customers who have a high
education level and high income level are shopping more on the internet. The study also pointed
out that the delay in the delivery of products and deceptive and misleading advertisements were
the major hindering factors for online buying. (Ayden and Demir, 2011)

According to Choudhury (2014), the study highlighted that there is a significant

Mehboob examine the relationship between various factors that affect the consumer’s
behaviour towards online shopping. He explained the influence of five major variables that were
derived from literature. These variables are trust, time, product variety, convenience and privacy
which determine how consumer buying behaviour is reflecting online shopping trends. Based on
the result of the study by Mehboob, trust is been considered as the most relevant factor affecting
the customers buying behaviour towards online shopping when it comes to younger generation.

2.4 Local Studies

The hottest e- commerce markets in Southeast Asia, and the Philippines comes right at
the top of the list. According to the study by Ken Research (2014), the Philippines’ e- commerce
market can expect a stupendous compound annual growth rate of 101.4 percent from 2013 until
2018, thanks to rising internet and social media adoption. (Ken Research, 2014)

Southeast Asia, including the Philippines has become a virtual gold mine for online
shopping. Proof of that is that many online shopping malls are now on expansion mode. Lazada
is one of the largest online shopping website in Southeast Asia. It announced that it has raised $
250 million from a group of investors including Tesco PLC, Access Industries Investment AB
Kinnevik and Verlinvest. According to Tesco, as Southeast Asia’s 600 million consumers begin
to use smart phone technology to access retailers online.Tesco, March 2014)

Based on the study conducted by Lucero, et.al (September 2016), he determined whether
there is a significant relationship between consumer perception and purchase behaviour on online
shopping among students. It has been found out that the respondent perceptions and their
purchase behaviour on online shopping are both high. To sustain their high perception on online
shopping, it is suggested that web developers should incorporate features on their websites
regarding convenience, security, benefits and leisure. It is important for online marketers,
entrepreneurs, and business men to consider the fact that students spend more time on the
internet and that this factor will likely increase the students online shopping behaviour.