A Research paper presented to

the faculty of the Senior High School

St. Theresita’s Academy

In partial fulfilment of the requirements in Inquiries, Investigation, and

Immersion

(Research Project)

May 2022
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 St. Theresita’s Academy of Silay City Inc.

The Impacts of Digital Marketing on Small Business Owners' Revenue in Silay City During
the Coronavirus Pandemic

Submitted to:

Ms. Hazel May Moreno-Lacalle

Presented by:

Alano, Alyssandra Maree

Cabayao, Xyra May

Dusaran, Kaye Andrei

Gonzales, Mary Claire

Lim, Trixy Mae

Norre, Shaneley

Orquia, Myles

Recla, Dymelyn

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 Abstract

As for the times when a crisis exists and varied sectors within the economy could

be hugely affected, including the ones which manage small business entities, marketing

in digital form could be utilized to help uplift the falling sales and increase the adequate

income. It is concluded that this strategy indeed makes a difference, a positive one, in the

revenue of small businesses. All the results analyzed, shows that digital marketing

embarks higher possibilities for revenue improvement. Despite the declaration of all the

business risks, digital marketing tries to rebut business opportunities. Digital marketing

can be recognized as one of the most creative and effective methods of piquing the

interest of potential customers and increasing the sales of the business. Small business

owners must consider the customer interaction data they currently have and will obtain in

the future, and develop a long-term method for compiling that data. A good marketing

strategy helps you define clear, realistic, and measurable marketing objectives for your

business.

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 Acknowledgement

First and foremost, thanks and praise to God, the Almighty, for His abundant blessings on

our research and its successful conclusion.

The researchers would also want to extend their gratitude to their research adviser.

During the duration of the research study, our research adviser provided us with crucial

supervision, support, and guidance. We’d also like to express our gratitude for her compassion,

patience, and knowledge. Her dedication and keen interest above all her overwhelming attitude

to help her students had been solely and mainly responsible for completing our work. Working

and studying under her direction was a wonderful honor and privilege.

Our gratitude and appreciation also go to our respondents, who freely assisted with their

full participation, allowing the research study to be completed smoothly. We’d also like to

express our gratitude for the time and knowledge you’ve provided us to undertake this research.

Last but not the least, we are grateful to our loving parents for their financial support and

unwavering support throughout the research endeavor. In addition to their words of support

throughout all of the nights we’ve spent working on the project investigation.

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 Table of Contents

Title Page ---------------------------------------------------------------------------------------1

Abstract --------------------------------------------------------------------------------------2

Acknowledgement ----------------------------------------------------------------------------3

Table of Contents -----------------------------------------------------------------------------4

Chapter 1: Introduction ---------------------------------------------------------------------7

Chapter 2: Review of Related Literature -----------------------------------------------9

Background of the Study ------------------------------------------------------------15

Statement of the Problem ------------------------------------------------------------18

Objectives of the Study --------------------------------------------------------------19

Statement of the Hypotheses --------------------------------------------------------19

Significance of the Study ------------------------------------------------------------19

Research Instrument ------------------------------------------------------------------20

Scope and Limitation -----------------------------------------------------------------21

Definition of Terms -------------------------------------------------------------------21

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 Conceptual and Theoretical Framework -------------------------------------------23

Chapter 3: Research Design and Methodology ------------------------------------------28

Research Design ----------------------------------------------------------------------28

Respondents of the Study -----------------------------------------------------------28

Sampling Technique -----------------------------------------------------------------29

Data Gathering Procedures ---------------------------------------------------------29

Chapter 4: Research Results and Findings ---------------------------------------------30

Chapter 5: Conclusion and Recommendations ---------------------------------------41

References ----------------------------------------------------------------------------43

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 List of Figures

Figure 1: Particular Social Media Platform Utilized to Showcase the Product/s or Service/s

Figure 2: Estimated Capital for the Business Before the COVID-19 Pandemic

Figure 3: Estimated Capital for the Business During the COVID-19 Pandemic

Figure 4: Business’s Daily Expenses Before the COVID-19 Pandemic

Figure 5: Business’s Daily Expenses During the COVID-19 Pandemic

Figure 6: Daily Income Before the COVID-19 Pandemic

Figure 7: Daily Income During the COVID-19 Pandemic

Figure 8: The Degree of Agreement of the Significant Impact of the Pandemic on the income

Figure 9: Impact of the COVID-19 Pandemic on the Income: Positive or Negative

Figure 10: The Degree of Agreement of the Significant Difference on the Daily Income

Figure 11: Impact of Digital Marketing on the Income: Positive or Negative

List of Appendices

Appendix A - Letter Asking Permission to Conduct the Study

Appendix B - Letter to the Validator

Appendix C - Survey Questionnaire

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 CHAPTER 1

Introduction

The internet started a new age for marketing. Even in the 90s digital marketing was

already being used as a strategy, however, it was not as popular as it is today. The Covid-19

pandemic, which started its peak in the year 2020, caused other businesses to sink but it never

stopped new businesses from thriving. Small businesses are the backbone of any economy

(Engidaw, 2022). Social media instead of just being used for leisure became the new platform to

sell, but how effective is it really? Does this popularized marketing strategy significantly affect

the revenue growth of small business owners since small businesses are the backbone of any

economy? Then how well did digital marketing partook in the strengthening of the economy's

backbone, if it really did make a difference?

As of the third quarter of the year 2021, data from Statista shows that Facebook is the

social media platform most used by Filipinos with a whopping 96.2% users, this is followed by

Facebook Messenger with 94.4%, Instagram with 75.7%, TikTok with 67.9%, and Twitter with

59.2% of users. This increase in the number of internet users who regularly access these social

media platforms is valuable information that can be used by small business owners to market

their products or services in these applications. What is digital marketing and how is it used

anyway? Digital marketing is the use of the internet to market products/services; it encompasses

all marketing efforts that take place online. (Alexander, 2022). Advertising products and services

through Facebook, YouTube, websites, blogs, and other social media platforms is considered

digital marketing. The Philippines, as the world's social media capital (Lopez, 2021), has social
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media influencing its citizens' purchasing decisions, with 64% of Filipinos who are active on

social media relying on the information they find online (Gregorio, 2013).

The ideal growth rate for a small business is around 15 and 25% annually. Higher rates may

overburden fledgling enterprises, which may not be able to keep up with the pace of change.

Many nations have imposed travel restrictions and movement controls as a result of the COVID-

19 pandemic outbreak. In fact, microbusinesses experience a greater effect than bigger

businesses. Due to the closure of various supporting sectors like retail and transportation,

entrepreneurs face business cancellation or closure, as well as reduced revenue. There is

currently a scarcity of research on the impact of a pandemic breakout on microbusinesses in poor

nations, particularly in terms of business continuity and recovery plans. It's critical to look at

how microbusiness owners deal with crises and what decisions they make to keep their

businesses afloat. Moreover, this research will ideally help establish the effective support

mechanisms for micro-entrepreneurs to flourish during and after a crisis through linked

entrepreneurial development organizations.

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 CHAPTER 2

Review of Related Literature

Title of Subsection: Related Foreign Concepts

History of Digital Marketing

According to a blog by Webandcrafts (2021) titled, “The History and Evolution of Digital

Marketing Over the Years”, there are 5 Ds of Digital marketing:

(i) The digital devices, which are laptops, desktops, smartphones, tablets, smart TVs, wearable

devices, and gaming devices.

(ii) The digital platforms, which are social media, search engines, and websites.

(iii) The digital media, are online ads, social media marketing, SMS, and email marketing.

(iv) The digital data, which are essentially the apps, contact forms, and surveys.

(v) The digital technology, which includes artificial intelligence, virtual reality, and augmented

reality.

In the 1990s, the term "digital marketing" was first used. People began their incursion

onto the internet in the 90s, particularly once the World Wide Web became publicly available in

1991. There were around 16 million internet users worldwide by 1995. With the introduction of

the internet and the development of the Web 1.0 platform, the digital era exploded. The Web 1.0

platform allowed users to locate and exchange information, but it did not allow them to distribute

it across the internet. Marketers all over the world were still apprehensive about the digital

platform at the time. The first clickable banner was launched in 1993, and HotWired bought a

few banner advertisements for their advertising. This was the start of the transition to the digital
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marketing era. As a result of this gradual transformation, new technologies entered the digital

marketplace in 1994, and Yahoo was founded in the same year (Monnappa, 2022).

Monnappa stated in her article entitled: “The History and Evolution of Digital

Marketing,” that after its creator Jerry Yang, Yahoo was dubbed "Jerry's Guide to the World

Wide Web" and garnered about 1 million hits in its first year. As a result, the digital marketing

landscape has changed dramatically, with businesses improving their websites to achieve higher

search engine ranks. Google was founded in 1998. The next year, 1999, was very significant in

digital marketing history since web 2.0 was launched. This allowed users to upload and share

content, and not just consume it. Users were no longer passive users but also active participants.

In 2000, there was much trepidation over how computers would respond to the change in the

date at the dawn of the millennium – commonly referred to as the Y2K problem. A social media

platform for professionals called LinkedIn was launched in 2002, this platform helped recruiters

to find qualified people, and vice versa. This was followed by Orkut, and later, Facebook.

Businesses began to take serious notice and realized the potential that these platforms afforded to

them. Companies began to actively market their products and services on these platforms,

signaling the beginning of a new era in business. In 2005, we saw the birth of YouTube, the

video-sharing platform, which has millions of subscribers and users today.

In her article, Monnappa added that in 2006, search engine traffic was believed to have

increased by around 6.4 billion in a single month, marking the beginning of the digital marketing

boom. Then came Web 2.0, which encouraged individuals to be more active participants rather

than passive consumers. Web 2.0 enabled users to communicate with one another as well as with

companies. The internet came to be labeled as a "super information highway." As a result,

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information flow volumes – including channels used by digital marketers – rose dramatically,

and internet advertising and marketing in the United States alone brought in $2.9 billion by 2004.

By 2010, WhatsApp, a messaging app for mobiles was launched and this app offers businesses

several tools to promote their products and services. In 2011, web use overtook TV viewership,

especially among the young generation, and Google + and Google Panda were launched. In 2014,

the whole world witnessed the launch of Facebook messenger and tailored ads on LinkedIn and

other social platforms. This was also the year that mobile usage overtook the use of personal

computers for browsing and shopping. The year 2015 was the dawn of wearables, predictive

technology, active content marketing, and inbound marketing growth (Webandcrafts, 2021).

Customers may now access digitally advertised products at any time. According to

Marketingtechblog's 2014 statistics, posting on social media is the most popular online activity

in the United States. The typical person in the United States spends 37 minutes each day on

social media. Facebook is used by 99% of digital marketers, Twitter is used by 97%, Pinterest is

used by 69%, and Instagram is used by 59%. Customers were obtained by 70% of B2C

marketers on Facebook. Moreover, 67 % of Twitter users are more inclined to buy from firms

they follow on social media platforms. On Pinterest, 83.8% of luxury businesses have a presence.

LinkedIn, Twitter, and Facebook are the top three social networking sites utilized by marketers

(Monnappa, 2022).

Heading into the 2020s, Digital marketing has reached its pinnacle. Businesses must

ensure that they have a firm grasp on existing practices to reap the benefits of future

improvements. From artificial intelligence in marketing to customer service via social media,

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insight and data-driven marketing, and multilingual SEO, 2020 will be a year of huge changes in

the online world (Bose, 2020).

Digital Marketing and the Revenue and Expenses of Small Business Owners

Arjun Ravindran wrote an article titled, “Impact of Covid-19 on Digital Marketing,” he

claimed that during these epidemic times, digital marketing gained a huge boost. As more

business owners were compelled to investigate and embrace internet possibilities for a lesser

expense and higher revenue, digital marketing became a need. Digital marketing strategies

propel traffic to business owners’ websites and/or social media pages and help them engage with

their target audience and transform them into potential leads and sales (Ravindran, 2021). Digital

marketing techniques impart finer granularity, allowing business owners to comprehend each

aspect of success and long-term growth prospects, enabling businesses to maximize the return on

investment. Furthermore, the article focuses on the vastly increased rise of businesses on the

digital platform, which creates a plethora of opportunities in the worldwide pandemic issue while

also lowering operating costs.

According to Ian Linton 2019 in his study entitled, “List of Marketing Expenses,” marketing

expenses include the cost of planning and operating the marketing programs, together with the

cost of the program elements, such as advertising, website, or market research. Digital marketing

expenses include the internal and external ROI costs. It classifies the products or the facilities the

business will sell, as the bull's eye market (Antikainen and Valkokari 2016, Ordanini et Al., 2004,

Li, 2018).

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 Moreover, businesses had widely varying beliefs about the likely duration of COVID-related

disruption. Many small businesses are financially fragile: the median business with more than

10,000 in monthly expenses had only about 2wk of cash on hand. Small business owners must

maintain sufficient to cover start-up costs, as well as for maintaining, expanding operations, and

managing business expenses. (Salazar, Soto, and Mosqueda, 2012).

Digital Marketing and Consumers’ Buying Behavior

The study entitled “Impact of Digital Marketing on Consumer Buying Behavior,” written

by Alok Kumar Pal and Dr. Bharti Shukla, has stated that digital promotion through Web and

electronic trade innovations bring changes in the whole economy and changes the plans of action,

income streams, client bases, and flexible chains. The buyer's purchasing behavior is changing at

a rapid rate in the client-situated market condition.

According to the data analysis of the study, 58.20% of people who are aged 21-25 years are more

interested in online shopping. It also stated that 36.40% of respondents are satisfied and had

good experiences in online shopping while 6.10% are highly dissatisfied.

Title of Subsection: Related Local Studies

Small Business in the Philippines During Pre-Pandemic and During Pandemic Times

According to Victorino Abrugar in his article entitled, “Small Businesses in the

Philippines,” published by Business Tips Philippines, small businesses in the Philippines, as

defined by The Magna Carta for Micro, Small, and Medium Enterprises (RA No. 6977, as

amended by RA 8289, and further amended by RA 9501), are any enterprises whose total assets,

inclusive of those arising from loans but exclusive of the land on which the particular business
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entity's office, plant, and equipment are situated, are ranging from more than P3,000,000 to

P15,000,000. In an article published by Metro News Central written by James Lopes titled “10

Small Business Ideas for Pinoys with Small Capital’, sari-sari stores are the most common small

business form that can be found anywhere in the Philippines. Sari-sari stores are easily accessible

and diverse, and when compared to in-store prices, are much cheaper as the goods being sold can

be bought per piece, not wholesale. Lopez added that there is a variety of small businesses

ranging from sari-sari stores to street food, printing, photography, etc., that are popular in the

Philippines. Pre-pandemic these types of businesses, especially food carts and street food

businesses were very popular in schools and outside establishments where jobs and classes were

still face-to-face. When the COVID-19 pandemic hit, these microbusinesses continued to drop in

demand and revenue (Shinozaki and Rao, 2021).

In an article published by the Philippine STAR entitled, “How online selling is thriving in

the new normal,” Hannah Mallorca, the author, concluded that online selling platforms or

strategies, such as Shopee and Lazada, live selling, etc., generated a significant growth behavior

during the pandemic and that online shopping is currently rising and trending. This conclusion is

supported by statistics from GlobalData’s E-Commerce Analytics as the e-commerce transaction

value in the Philippines grew by 11.8% in 2020.

Digital Marketing in the Philippines

The article titled “Shift in Digital Marketing” written by Reynaldo Lugtu Jr. has

implicated that digital advertising as a strategy in big or small businesses use, is one of the most

spent forms of media as of 2020. As the crisis proceeds, the usage of mentioned business strategy
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is also growing up to 3.2% year-on-year according to Lugtu (2021) based on a report from

Dentsu. In the Philippines, only social media ads and video ads under digital marketing had

increased by 4.7% and 4.8% in terms of spending experience.

According to the digital 2021 report, Filipinos spent an average of four hours and 15

minutes each day on social media. A 22-minute jump from the country's Digital 2020 average of

three hours and 53 minutes. After all, the Philippines ranked number 1 in terms of daily internet

usage. A great advantage for small business owners selling online, which will surely help them

thrive and survive their business despite the existence of the COVID-19 pandemic.

Background of the Study

Way back in the year 2020, the Coronavirus disease 2019 (COVID-19) caused by the

SARS-CoV-2 virus unexpectedly came into existence and abruptly generated a health crisis

globally that caused a crucial impact and altered the lives of every single individual.

Subsequently, the local government leaders inaugurated various protocols in order to slow the

spread of the said virus, such as wearing face masks and face shields in public places, social

distancing, quarantines, and lockdowns in certain areas, and they also advised the minors and

elders to stay at home. As a devastating result of this unforeseen phenomenon, it has taken a toll

on almost all sectors of society, most specifically small business owners. This circumstance

became a threat to the livelihood and the very survival of the street vendors and their families.

According to the Philippine Institute for Development Studies (Abrigo et al., 2020), the

Philippines may suffer economic losses between P276.3 billion and P2.5 trillion due to the

COVID-19 pandemic. MSMEs are acknowledged as the local heroes and backbone of the
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Philippine economy. However, they remain vulnerable to external and unanticipated shocks,

such as financial crises, natural disasters, and forced changes in the environment—like the

existence of the COVID-19. If the pandemic is prolonged, with second and third waves, the

economic damage will increase exponentially at the national, regional, and global levels.

Governments across the region must use their limited budgets effectively to support the most

affected groups, including MSMEs (Shinozaki and Rao, 2021). As of now, the particular time

when the pandemic will end is still obscure and uncertain, given the fact that the cases in several

places continue to rise every day. In addition, the professionals were able to discover a new

variant, Omicron, that instantly gripped the world. Having said that, these small business owners

must come up with and utilize a strategy that will allow them to earn enough money to fulfill

their basic necessities.

Small business owners love what they do and they play an important role in supporting

their local communities. When it comes to showing support for small businesses, it is important

to do so, and not just to help them gain revenue and stay operational. Small business owners are

individuals who conceive, launch and assume the risk for new economic activities in the form of

a business venture. Muhammad, Akbar, and Dalziel (2011) noted that small businesses are as old

as the tradition of barter and trade. Alexander [Link]. (2020) examined the financial fragility of

many small businesses and how deeply affected they are by the current crisis. Lockdown affects

the business of small business owners. Some small business temporary closures caused by the

pandemic are problematic because they reflect income losses to business owners in those

inactive months. Many businesses, not just in the Philippines but across the country, saw their

supply chain interrupted, and demand for their products and services declined.
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 Marketing is considered an important strategy in attaining business objectives. These

efficient tools are significant to achieve those objectives. Today, the Internet and web

technologies facilitate efficient and effective marketing activities. Literature showed that many

business organizations and business owners are using online marketing to promote and advertise

their products and services. Overall, they were likely to adopt online marketing or digital

marketing. The importance of digital marketing to these businesses is highlighted in how they

will be able to shift their operations, engage with customers, and promote online. Keeps them in

business and allows them to keep providing people with much-needed employment. Even though

there is still a pandemic, they can still provide for the needs and wants of the Filipinos using

online. According to MJ Panganiban, the chairman of the Fintech Philippines Association e-

commerce Committee, the availability of digital marketing tools and specialists has also become

cheaper because of cloud-based tools and services. One of the most significant ways that digital

marketing benefits an MSME in the Philippines is to arm a business with all the tools it needs to

bounce back in the year after the pandemic's height. Furthermore, there are marketing services in

the Philippines that are available online. 1.5 million freelancers and companies specializing in

digital marketing are readily available to help small businesses to promote themselves through

various online platforms. Now, through digital marketing, they will be able to use sophisticated

analytics tools, spread brand awareness through platforms and improve their small business.

In summary, the pandemic is the main reason why other small businesses closed. And

small business owners start to fail in the business of losing profit because of the pandemic, so

they are forced to close their businesses. Luckily, there was digital marketing, also called online

marketing, which used to connect with potential customers using the internet and any other
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various digital connections. The digital marketing strategy may be used on multiple platforms.

Digital marketing helps other business owners to start and create a new beginning of business

even during this time of the pandemic. The importance of digital marketing is very highlighted in

how they will be able to shift their operations with customers and the promotions online and it

keeps them in business and allows them to keep providing people with much-needed needs and

wants.

Statement of the Problem

The primary purpose of this research is to determine the impacts of digital marketing on

the revenue of small business owners in Silay City during this time of the pandemic. In order to

acquire all the essential knowledge, data, and information, specifically, the study aims to answer

the following questions:

Main question: How much did the percentage of the revenue of small business owners change

with their usage of social media application/s during this time of the COVID-19 pandemic?

Specific questions:

1. What is the most effective social media application they utilize that has the greatest impact on

their revenue?

2. Is there a significant difference between the revenue of small business owners in Silay City

before and after using social media application/s to sell their products?

3. Is there a significant relationship between the revenue of small business owners in Silay City

before and after using social media application/s to sell their products?

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Objectives of the Study

The general purpose of this research is to determine the impacts of digital marketing on

the revenue of small business proprietors in Silay City during the COVID-19 Pandemic.

Specifically, this study aims to achieve the following objectives:

● To discover the percentage change in the revenue of small business proprietors with their

usage of social media application/s during this time of the pandemic

● To identify the most effective social media application that small business owners utilize

that has the greatest impact on their revenue.

● To explore whether there is a significant difference between the revenue of small

business owners in Silay City before and after using social media application/s to sell

their products.

● To determine the relationship between the revenue of small business owners in Silay city

before and after using social media application/s to sell their products.

● To compare the average income of small business owners before and after showcasing

their products through social media application/s during this time of the pandemic.

Statement of the Hypotheses

In accordance with the previous problem, the following hypotheses are hereby presented:

1. There is a significant difference between the revenue of small business owners in Silay City

before and after using social media application/s to sell their products.

2. There is a significant relationship between the revenue of small business owners in Silay City

before and after using social media application/s to sell their products.
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Significance of the Study

This quantitative study is tasked to determine the impacts of digital marketing and the

revenue of small business owners in Silay City during the COVID-19 pandemic. The findings

generated from the research study may be beneficial to the following:

Business Students. This study will help them assess how digital marketing delivers outcomes to

the revenue of small business owners amid a crisis that will eventually take part in their decision-

making as they penetrate their chosen professions in the business industry in the near future.

Entrepreneurs. This study will guide entrepreneurs, particularly small business entities

regarding the use of digital devices as a marketing strategy and its effects on the revenues,

accompanied by the given statistical data as their basis. This might shove their interest in

creating more and new strategies for maintaining their profit.

Customers. As a fundamental part of the flow of any kind of business, customers need to have an

idea about the importance of digital marketing used by business owners in catching their interest

in their offered products and services. This study will help customers realize how advantageous

or ineffective digital marketing is to those entrepreneurs and will make them apprehend their role

as marketers continue to strive on earning more revenues in the middle of a pandemic.

Researchers. This will set us their guide through the history of those who have small business

entities that used digital marketing and how well it contributed to the revenues. The results could

be used in comparison to other related studies that also focus on digital marketing and its impact

on the income of small businesses during a crisis.

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Research Instrument

The researchers will be using a researcher-made questionnaire that is based on the

impacts of digital marketing on small business owners’ revenue and will be sent to the

respondents through an online format, specifically through Facebook Messenger.

Scope and Limitations

The researchers chose the owners who have small businesses in Silay City as the

respondents in our set of survey questionnaires. The researchers endeavor to gather 14 small

business owners to be the respondents and will be conducted online. This study aims to include

participants with the following criteria: every respondent that will be participating must be a

small business owner even before the pandemic and they must have at least two (2) years of

work experience in selling or providing services before the pandemic kicks in.

Definition of Terms

For the purpose of clarification, the significant terms used in this study have been defined.

The following terms are:

Business. Conceptually, this term is defined as the regular production or purchase and sale of

goods undertaken with the objective of earning profit and acquiring wealth through the

satisfaction of human wants (Stephenson, 2008). Operationally, business is the field in which this

study is focused as the impacts of digital marketing on the revenue of entrepreneurs during the

COVID-19 pandemic is being studied.

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COVID-19. Conceptually, Coronavirus disease 2019 (COVID-19) is defined as an illness caused

by a novel coronavirus now called severe acute respiratory syndrome coronavirus 2 (SARS-

CoV-2; formerly called 2019-nCoV), which was first identified amid an outbreak of respiratory

illness cases in Wuhan City, Hubei Province, China (Cennimo, 2021). Operationally, the

unanticipated emergence of the COVID-19 pandemic is also used as one of the factors in this

study that affects small business owners.

Customer. Conceptually, a customer is an individual or business that purchases another

company's goods or services (Kenton, 2008).

Digital Marketing. Conceptually, digital marketing refers to the utilizing of the Internet, mobile

devices, social media, search engines, and other channels to reach and communicate with

consumers. (Barone, 2021). Operationally, digital marketing serves as the independent variable

that helps illustrate the difference and relationship between the revenue of small business owners

in Silay City before and after using social media application/s to sell their products.

Revenue. Conceptually, this term refers to the amount a company receives from selling goods

and/or providing services to its customers and clients. (Averkamp, 2022.). Operationally, one of

the most significant aspects of small business owners from their normal business pursuits who

were profoundly impacted by the rise of the COVID-19 pandemic.

Small Business Owners. Conceptually, this term advertises an entrepreneur that is defined as an

individual who creates and organizes a small business and manages an enterprise with

considerable initiative (Candela, 2020). Operationally, the most important and main respondents

to be subjected to adjudicating the impact of digital marketing on their revenues amidst the

COVID-19 pandemic.
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Framework of the Study

Conceptual Framework

Small businesses play a significant role in the country for there are a lot of opportunities that

come with it. The entrepreneurs offer different products and services in the market that

consumers might be interested in. They are the ones who are providing for the needs and wants

of every consumer on a daily basis. Certainly, they are also experiencing challenges that really

affect their earnings out of their transactions. They always have to satisfy the consumers in order

to gain support from them consistently. They must have strategies at all times when facing

challenges in the market so that they can keep their business operations going. One of the good

impacts that small businesses brought on the community is employment. Opening a business in

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the local area can be an opportunity for those people who are unemployed. Business is the sector

that has been a massive help when it comes to the economic growth of the Philippines.

The emergence of the COVID-19 pandemic, as well as the continuously growing number of

COVID-19 cases in our area, made a significant impact on the lives of small business owners.

We were challenged to come up with efficient solutions to every particular problem it brought us

and how to cope with this worldwide devastation. The widespread closing of small businesses

not just in our country, but around the world due to the pandemic is indisputably unanticipated.

Social distancing restrictions, lockdowns, and other protocols implemented by the government to

help save the economy and lives of many caused some the small businesses and entrepreneurial

ventures to either temporarily close or permanently shutter, whether big or small, which

exacerbated change in their source of income, unemployment, poverty, food shortage, and much

more. Financial fragility is one of the principal adversities faced by many small business owners,

almost causing some of them to believe that hunger and poverty, instead of the virus, will be the

cause of their deaths. Furthermore, as of January 2021, the professionals recorded a total of 4.66

billion people who are part of the worldwide digital population or active internet users, which

translates to a total of 59.5 percent of the whole global population. The small business owners

eventually took advantage of the fast enhancement of technology at the moment, and they took it

as an opportunity to continue their business, given the fact that through their online presence,

they will be able to showcase their products or services to a wider demographic, connect with

potential customers, and build brand recognition at their own convenience. As presented in the

conceptual framework, the emergence of the pandemic, as well as the digital marketing strategy

are undoubtedly interrelated with each other. They serve as the study's primary independent
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variable that made an impact on customers' buying behavior, small business owners' revenue,

and expenses.

The occurrence of the pandemic has been a tough battle for both customers and small

business entity owners, especially in its prior months. Customers are locked up in their homes

most of the time causing the small business owners, particularly those having physical stores to

lose a considerably huge income. On the other hand, digital marketing was used by many

businesses even before the pandemic, but its usage by the time pandemic started booming. It is

one of the most used strategies of marketing nowadays and it gives business owners a big impact

on magnifying their profit regardless of their exteriorized expenses. With the use of television,

podcasts and radio, billboards, and especially the internet, the trade continues and is getting

expanded. Small business owners are able to advertise and make business transactions through

this kind of marketing strategy and thus gain a lot more opportunities. Their expenses depend on

the digital marketing tools that they will be using but it doesn't affect that much on their overall

earnings. The way customers deal with this marketing approach is also dependent on how the

digital marketing of a certain business owner works and on how they are being accommodated

by the trader.

Theoretical Framework

This research study is anchored on the theory of an American psychologist named

Abraham Maslow, namely the "Maslow's Hierarchy of Needs." In a paper titled "A Theory of

Human Motivation," American psychologist Abraham Maslow theorized that there are factors

that affect human decision-making, and it is the hierarchy of psychological needs. Maslow's

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theory is one of the most significant and best-known theories of motivation. In his initial paper

and a subsequent 1954 book titled Motivation and Personality, Maslow proposed that five core

needs form the basis for human behavioral motivation. Particularly, his theory illustrates that

each and every action or behavior of human beings are motivated and driven by their specific

psychological needs. Moreover, these needs are represented in a pyramid shape, with the most

basic needs located at the bottom part of the pyramid and the intangible, more complex, and

high-level ones at the top. Those needs are physiological needs, safety needs, love, and

belonging needs, esteem needs, and self-actualization needs.

The first of the id-driven lower needs on Maslow's hierarchy are physiological needs.

Food and water, clothing, shelter, overall health, and reproduction are among the most

fundamental human survival needs. According to him, these basic physiological requirements

must be met before humans may progress to the next stage of fulfillment. Moreover, safety is the

next lowest-level requirement. Protection against assault and theft, mental stability and well-

being, health security, and financial security are all safety needs. The third level of Maslow's

hierarchy relates to human interaction. Among these needs are friendships and family bonds—

both with biological family (parents, siblings, children) and chosen family (spouses and partners).

The following are esteem needs. The primary elements of this need are self-respect and self-

esteem. Self-esteem can be divided into two types, according to Maslow: esteem based on other

people's respect and acknowledgment, and esteem based on your own self-assessment. Last but

never the least, Self-actualization needs. Self-actualization needs occupy the highest spot on

Maslow's pyramid, it describes the fulfillment of your full potential as a person. It encompasses,

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education, skill development — the honing of abilities in fields like music, athletics, design,

cooking, and gardening — caring for others, and bigger ambitions like learning a new language,

traveling to new places, and winning awards.

In terms of social media marketing, this necessarily means that an entrepreneur must

comprehend and be knowledgeable regarding the level of hierarchy your customer is likely to be

in when they’re interacting with your brand in order for them to fulfill the goals and objectives of

their business. Furthermore, being educated about it also plays a significant role in consistently

increasing their sales. Basically, it would be time-consuming and pointless to market through the

lens of self-actualization to people who are trying to achieve a sense of security. In other terms,

entrepreneurs must ask themselves which of the five needs their customers are looking to fill

whenever they are interacting with them because it can also serve as the key to establishing a

good relationship with them. The needs internet users are looking to meet with social media

usage cannot be the same at all times since most of the time, they differ depending on the

platform. As a seller who uses social media to market their products, they should tailor their

content accordingly. In conclusion, decide which one applies to your target audience on each

particular platform and plan your content to reflect that (Loew, 2021).

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 CHAPTER 3

Methodology

This chapter discusses all the methods and procedures used to determine the impact of

digital marketing on small business owners’ revenue in Silay City. This contains the research

design, the respondents of the study, the locale of the study, sampling technique, data gathering

procedure, and data analysis procedure.

Research Design

A systematic analysis of phenomena using measurable data and performing statistical,

mathematical, or computer techniques is defined as quantitative research. This category of

research method gathers data from existing and future respondents by employing sampling

techniques and sending out online surveys, polls, and questionnaires, among other approaches.

This quantitative research will be conducted utilizing a survey-research design. A survey is non-

experimental, the particular research design that’s best suited for this study to collect the

viewpoints of respondents in survey research. Furthermore, this research design is the most

fundamental tool for all quantitative outcomes when it comes to research methodologies and

studies. In this study, researchers will be using Google Forms.

Respondents of the Study

The respondents of the study were 14 small business owners from Silay City who

established their businesses before the pandemic started and managed to continue operating up to

this date.
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Sampling Technique

The specific sampling technique applied in this study is convenience sampling. Since we are

currently dealing with the global pandemic, our resources are very limited and we should make

use of what’s convenient and available. By employing this particular sampling method, the

researchers have the capability to conserve time and be able to finish the research quickly.

Data Gathering Procedure

The researchers submitted a letter to the school’s principal or head of the school asking for

approval to conduct the said study. The request has been approved by the school as it’s a part of

the requirements required by the subject teacher.

The researchers created a questionnaire that needs to be validated by an expert teacher.

When permission has been given, the collection of data has started by distributing copies to the

respondents. The researchers guided the small business owners in answering the questionnaire.

After the respondents answered the said questionnaire, all the data gathered were tallied,

analyzed, and systematized.

The researchers used the method of tabulation to present the figures of the conducted study.

Codes were used to represent the different numerical values of the respondent's responses to the

open-ended questions of the questionnaire as seen in the given tables below Figure 11. After

compiling, editing, coding, and classifying the data, the researchers proceeded to describe the

data using descriptive statistics, specifically the mean, median, standard deviation, variance, and

skewness.
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 CHAPTER 4

Research Results and Findings

This chapter examines the quantitative data results and analysis, as well as the

questionnaire preparation and results and analysis of the study's quantitative findings. In order to

discover similarities and contrasts between this study and other studies and literature, the

findings are also analyzed in light of past research findings and relevant literature, if applicable.

Chapter 3 provided a detailed discussion of the research technique.

Figure 1: Particular social media platform utilized to showcase the product/s or service/s

According to the figure above, out of 14 respondents, approximately 85.7% of the

respondents use Facebook to showcase their product/s or service/s. Approximately 7.1% use

Tiktok while the remaining 7.1% use Instagram. This shows that business owners prefer using

Facebook to showcase their product/s or service/s over any social media platforms mentioned.

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Figure 2: Estimated capital for the business before the COVID-19 pandemic

According to the figure above, out of 14 respondents, approximately 57.1% of the

respondents’ estimated capital for their business before the COVID-19 pandemic was below Php

3,000. Approximately 14.3% had an estimated capital of Php 3,000 - Php 5,500, 7.1% had an

estimated capital of Php 5,501 - Php 8,000, 7.1% had an estimated capital of Php 8,001 - Php 10,

500, 7.1% had an estimated capital of Php 13,001 - Php 15, 500, and lastly 7.1% had an

estimated capital above Php 18, 000. This shows that most business owners had used an

estimated capital below Php 3,000 before the COVID-19 pandemic.

Figure 3: Estimated capital for the business during the COVID-19 pandemic

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 According to the figure, out of 14 respondents, approximately 42.9% of the respondents’

estimated capital for their business during the COVID-19 pandemic was below Php 3,000.

Approximately 21.4% had an estimated capital of Php 3,000 - Php 5,500, 14.3% had an

estimated capital of Php 8,001 - Php 10, 500, 7.1% had an estimated capital of Php 5,501 - Php

8,000, 7.1% had an estimated amount of Php 10, 501 - Php 13, 000, 7.1% had an estimated

capital of above 18, 000. This shows that most business owners had used an estimated capital

below Php 3,000 during the COVID-19 pandemic.

Figure 4: Business’s daily expenses before the COVID-19 pandemic

Approximately 57.1% of the respondents’ daily expenses before the COVID-19

pandemic is below Php 500. Approximately 35.7% of the business’ daily expenses is Php 500 -

Php 1,500 while the remaining 7.1% is Php 3,501 - Php 4,500. This shows that most business

owners’ daily expenses before the COVID-19 pandemic are below Php 500.

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Figure 5: Business’s daily expenses during the COVID-19 pandemic

Approximately 50% of the respondents’ daily expenses during the COVID-19 pandemic

is below Php 500. Approximately 28.6% of the business’ daily expenses is Php 500 - Php 1,500,

14.3% of the business’ daily expenses is Php 1,501 - Php 2,500, and the remaining 7.1% is Php

2,501 - Php 3,500. This shows that most business owners’ daily expenses during the COVID-19

pandemic are below Php 500.

Figure 6: Daily income before the COVID-19 pandemic

According to the figure above, out of 14 respondents, approximately 28.6% of the

respondents’ daily income before the COVID-19 pandemic is Php 500 - Php 1,500.

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Approximately 21.4% of the business’ daily income is below Php 500, 21.4% of the business’

daily income is above Php 5,500, 14.3% of the business’ daily income is Php 1,501 - Php 2,500,

and lastly, 14.3% of the business’ daily income is Php 2,501 - Php 3,500. This shows that most

business owners’ daily income before the COVID-19 pandemic is Php 500 - Php 1,500.

Figure 7: Daily income during the COVID-19 pandemic

According to the figure above, out of 14 respondents, approximately 35.7% of the

respondents’ daily income during the COVID-19 pandemic is Php 500 - Php 1,500.

Approximately 21.4% of the business’ daily income is above Php 5,500, 14.3% of the business’

daily income is Php 1,501 - Php 2,500, 7.1% of the business’ daily income is Php 4,501 - Php

5,500, 7.1% of the business’ daily income is Php 2,501 - Php 3,500, 7.1% of the business’ daily

income is Php 3,501 - Php 4,500, and lastly 7.1% of the business’ daily income is Php 4,501 -

Php 5,500. This shows that most business owners’ daily income during the COVID-19 pandemic

is Php 500 - Php 1,500.

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Figure 8: The significant impact of the pandemic on the daily income

According to the figure above, out of 14 respondents, approximately 57.1% of the

respondents agreed that the pandemic made a significant impact on their daily income while

approximately 42.9% strongly agreed. This shows that all respondents agreed that the pandemic

made a significant impact on their daily income.

Figure 9: Impact of the COVID-19 pandemic on the income

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 According to the figure, out of 14 respondents, approximately 57.1% of the respondents

answered that the impacts of COVID-19 pandemic on the income is positive while

approximately 42.9% had answered it is negative. This entails that the impact of the COVID-19

pandemic on these business owners was a positive one.

Figure 10: Marketing of product/s or service/s on social media platform/s makes a significant

difference on the daily income during the pandemic

According to the figure above, out of 14 respondents, approximately 71.4% of the

respondents strongly agreed that marketing product/s on social media platform/s makes a

significant difference in their daily income during the pandemic while approximately 28.6% had

agreed. This shows that all respondents agreed that marketing product/s on social media

platform/s, such as Facebook, Instagram, etc., makes a significant difference in their daily

income during the pandemic.

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Figure 11: Impact of Digital Marketing pandemic on the income

According to the figure above, out of 14 respondents, 100% of the respondents had

answered that there is a positive impact of using social media platforms on their income.

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Research Findings

The difference between the mean and median of the responses based on the two questions

referring to the estimated capital of their businesses before and after the CoVid-19 pandemic

reveals that the business owners' estimated capital grew before and after the pandemic. The

average estimated capital of the respondents went from 0 – 3,000 pesos before the pandemic, to

3,000 – 8,000 pesos during the pandemic.

The mean and median of the respondents' coded responses on the items pertaining to their

expenses before and during the CoVid-19 outbreak showed an increase in the difference between

their daily expenses. The average expenses of the respondents’ businesses went from 0 – 500

pesos before the pandemic, to 500 – 1,500 pesos during the pandemic. This increase may be due

to different economic changes such as inflation.

Based on the mean and median of the coded responses, the respondents' daily income has

likewise increased. The data demonstrates that the average daily income of businesses increased

prior to and throughout the pandemic. Due to the CoVid-19 pandemic, the respondents'

marketing approach shifted from face-to-face to online transactions, which had a major impact

on the average daily income of their businesses. Before the pandemic, their businesses had an

average daily income of 1,500 – 2,500 pesos, which increased to 1,500 – 3,500 pesos during the

CoVid – 19 pandemic.

Clothing businesses account for the majority of respondents' businesses, with 43 percent

identifying clothing as their primary source of revenue. Facebook, according to the gathered data,

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is the most popular social media site for increasing business profits, with 85.7 percent of

respondents using it to sell their products.

The impact of the CoVid-19 pandemic on respondents' businesses was mixed, with 57 percent

indicating a positive impact of the pandemic on their revenue, 36 percent indicating a negative

impact of the pandemic on their revenue, and 7 percent indicating the pandemic had both a

positive and a negative impact on their businesses revenue.

In terms of the efficacy of social media applications and the efficacy of the internet itself in

marketing the respondents’ products and providing a way for them to continue making profits off

of their businesses despite the limits caused by the CoVid-19 pandemic, 100 percent of the

respondents claimed that the social media platforms they used to market their products were

effective in boosting their profit and making their businesses more known to the public.

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 CHAPTER 5

Conclusion

The primary goal of this study is to see how digital marketing affects the revenue of small

businesses in Silay City during the CoVid-19 pandemic. In light of this information, it also

points out the percentage of the revenue of small business owners changed with their usage of

social media application/s before and during the pandemic. By all counts and proven results, this

research concludes that Digital Marketing has boomed during the CoViD-19 pandemic. The

advancement in technology fosters multifaceted opportunities, especially for the small business

owners of Silay City. From the start of the pandemic, and many lockdowns later, Digital

Marketing has been the savior of small businesses, allowing them to continue producing profits

despite the limitations imposed by the CoVid-19 pandemic. By the end of the study, the

researchers have collected, classified, organized, and analyzed the data based on the responses of

the respondents and arrived at the conclusion that digital marketing had a positive impact on the

small business owners of Silay City.

Recommendation

Digital marketing offers new marketing channels that are entirely online and therefore

immune to the Covid-19 pandemic. With an enormous amount of data at your disposal, you can

make better-informed campaign decisions, particularly in this time of crisis. Marketing is

something every business needs and utilizes to advertise the product or services and attract

current or potential customers. This pandemic is a chance for small businesses to innovate and

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create ways to carry on with everyday life. Within the short span of a lifetime, digital marketing

will bring all your cherished dreams to reality.

1. Researchers recommend that online sellers shall indulge themselves in digital marketing ideas

even more for it delivers a lot of advantages in terms of sales.

2. Proponents of digital marketing's weaknesses and improvements shall increase to help

develop stronger and better ways of online trading.

3. Consider the customer interaction data you currently have and will obtain in the future, and

develop a long-term method for compiling that data to better analyze differing customer

engagement times. Also, determine which social channels better serve your business and what

your customers respond more to.

4. Effective marketing starts with a considered, well-informed marketing strategy. A good

marketing strategy helps you define clear, realistic, and measurable marketing objectives for

your business.

5. Developing marketing will help you make the most of your marketing investment, keep your

marketing focused, and measure and improve your sales results.

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Fairlie, R. (2020, August 27). The impact of COVID‐19 on small business owners: Evidence

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 Appendix A: Letter to ask permission to conduct the study

“The Impact of Digital Marketing on Small Business Owners' Revenue in Silay City

During the Coronavirus Pandemic, 2021-2022”

Research Instrument – Questionnaire

Our group is conducting a survey in line with our study entitled “The Impact of Digital
Marketing on Small Business Owner’' Revenue in Silay City during the Coronavirus Pandemic,
2021-2022." The primary aim of the research is to assess the impact of digital marketing on
small business owners' revenue in Silay City. This questionnaire inquires the respondents about
their before and post-pandemic experiences as small business owners.

We would like to ask for your cooperation by answering the survey questionnaire honestly
and completely. Your responses are, in all respects, voluntary, and all the data gathered will be
kept strictly confidential. Every response will be aggregated into measures for reporting purposes,
with no specific person or organization identified.

Thank you.

Respectfully yours,

Kaye Andrei Dusaran

Mary Claire Gonzales
Dymelyn Recla
Xyra May Cabayao
Shaneley Norre
Alyssandra Maree Alano
Trixy Mae Lim
Myles Orquia
Researchers

Approved by:
Ms. Hazel May Moreno-Lacalle
Research Teacher

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Appendix B: Letter to the Validator

St. Theresita’s Academy

165 St. Silay City
A.Y. 2021-2022
March 21, 2022

Ms. Mary Bernadette Veronica Guiñez

Teacher
St. Theresita’s Academy
Silay City

Dear Miss,

Greetings!

A group of grade 12 students from St. Theresita’s Academy is currently conducting a

research study entitled “The Impact of Digital Marketing on Small Business Owner’' Revenue in
Silay City during the Coronavirus Pandemic, 2021-2022."

In connection with this, the researchers will be needing your assistance in validating the
closed-ended questions to be asked and answered through an online survey tool powered by
Google (Google Forms), which is essential in data gathering that will soon suffice the research
questions. The researchers have chosen and respectfully requested for you to be the evaluator,
knowing that you are the most qualified and desirable to do such. We would like to enlist your
assistance in verifying the instrument before distributing it to the respondents.

We are hoping for your kind and positive response regarding this matter.

Respectfully yours,

Alyssandra Maree Alano Myles Orquia

Dymelyn Recla Shaneley Norre
Kaye Andrei Dusaran Trixy Mae Lim
Mary Claire Gonzales Xyra May Cabayao
Student Researchers Student Researchers

Noted by:
Ms. Hazel May Moreno-Lacalle
Research Teacher
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Appendix C: Survey Questionnaire

1.) Gender

1 – Male

2 – Female

2.) Age

1. Below 18

2. 18-25

3. 26-35

4. 36-45

5. 46-60

6. Above 60

3.) Specific Business

1 - RTW

2 - Clothing

3 - Magazine

4 - Spread

5 - Cakes

6 - Rental

7 - Printing Service

8 - Avon
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4.) Who are your target customers?

1 - Teens

2 - Adults

3 - teens & adults

4 - Men and women

5 - Friends and relatives

6 -Teachers, Students & Government Officials
7 - All

5.) What particular social media platform do you utilize to showcase your product/s or service/s?

1 – Facebook

2 – Instagram

3 – Twitter

4 – Tiktok

6.) How much was your estimated capital for your business before the COVID-19 pandemic?

1. Below Php 3,000

2. Php 3,000 - 5,500

3. Php 5,501 - 8,000

4. Php 8,001 - 10,500

5. Php 10,501 - 13,000

6. Php 13,001 - 15,500

7. Php 15,501 - 18,000

8. Above 18,000

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7. ) How much is your estimated capital for your business during the COVID-19 pandemic?

1. Below Php 3,000

2. Php 3,00 - 5,500

3. Php 5,501 - 8,000

4. Php 8,001 - 10,500

5. Php 10,501 - 13,000

6. Php 13,001 - 15,500

7. Php 15,501 - 18,000

8. Above 18,000

8.) How much were your business' daily expenses before the COVID-19 pandemic?

1. Below Php 500

2. Php 500 - 1,500

3. Php 1,501 - 2,500

4. Php 2,501 - 3,500

5. Php 3,501 - 4,500

6. Php 4.501 - 5,500

7. Above Php 5,500

9.) How much are your business' daily expenses during the COVID-19 pandemic?

1. Below Php 500

2. Php 500 - 1,500

3. Php 1,501 - 2,500

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 4. Php 2,501 - 3,500

5. Php 3,501 - 4,500

6. Php 4.501 - 5,500

7. Above Php 5,500

10.) How much was your daily income before the COVID-19 pandemic?

1. Below Php 500

2. Php 500 - 1,500

3. Php 1,501 - 2,500

4. Php 2,501 - 3,500

5. Php 3,501 - 4,500

6. Php 4.501 - 5,500

7. Above Php 5,500

11.) How much is your daily income during the COVID-19 pandemic?

1. Below Php 500

2. Php 500 - 1,500

3. Php 1,501 - 2,500

4. Php 2,501 - 3,500

5. Php 3,501 - 4,500

6. Php 4.501 - 5,500

7. Above Php 5,500

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12.) Do you agree that the pandemic made a significant impact on your daily income?

1 – Strongly Agree

2 – Agree

3 – Disagree

4 – Strongly Disagree

13.) Is the impact of the CoVid-19 pandemic on your income a positive or negative impact?

1 – Positive

2 – Negative

14.) Do you agree that marketing your product/s or service/s on social media platform/s, such as
Facebook, Instagram, etc., makes a significant difference in your daily income during the
pandemic?

1 – Strongly Agree

2 – Agree

3 – Disagree

4 – Strongly Disagree

15.) Is the impact of using social media platforms on your income a positive or negative impact?

1 – Positive

2 – Negative

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[Link]’s Academy Senior High School