A COMPARATIVE ANALYSIS BETWEEN

ONLINE AND IN-STORE SHOPPING:

BASIS IN PUTTING UP A BUSINESS AS
PER CUSTOMERS SATISFACTION

A Research Proposal Submitted to the Faculty of the

Senior High School Department of the International
Philippine School in Al-Khobar

In Partial Fulfillment of the Requirements for the

English for Academic and Professional Purposes Subject

Patricia Alexandra R. Manglapus

Marianne C. Sales

Charla U. Delfin
 INTRODUCTION

A shop is a business that offers a selection of products and services to

sell them to customers in exchange for profit. Shopping is an activity in

which a customer browses the available goods or services presented by one

or more retailers with the intent to purchase a suitable selection of them. In

some contexts, it may be considered a leisure activity as well as an

economic one.

Besides the typical in-store shopping, where the customer usually goes

to mall and enters a particular shop, technology has brought businesses

much closer and accessible to their customers. Modern entrepreneurs have

started to engage in different modes of businesses. A notable approach of

these entrepreneurs when putting up a business is through online selling.

Because of the significant success of online sales, researchers have

identified various types of online shoppers. Rohm & Swaninathan (2004)

labeled them as convenience shoppers, variety seekers, balanced buyers,

and store-oriented shoppers".

The researchers prime focus was about the factors that motivated

consumers, which led to their discovery that the wide scope and range of

products available and the convenience brought by online buying were major

incentives for online shoppers, while traditional buyers were motivated by

time-saving and recreational motives.

Mechanisms of Online Shopping

 Many online retailers have developed methods to transact with their

potential customers. Buyers have the option to either visit a retailers

website directly or find their product of interest from alternative online

sellers through shopping search engines.

To be able to shop online, buyers must have access to the Internet and

a valid method of payment in order to complete a transaction. According to

Enrique Bigne (2005), higher levels of education and personal income

correspond to more favorable perceptions of shopping online. Increased

exposure to technology also increases the probability of developing favorable

attitudes towards new shopping channels.

Once a particular product has been found on the website of the seller,

most online retailers use shopping cart software to allow the consumer to

accumulate multiple items and to adjust quantities, like filling a physical

shopping cart or basket in a conventional store. A "checkout" process follows

(continuing the physical-store analogy) until the consumer receives an e-mail

confirmation once the transaction is complete.

Online shoppers commonly use a credit card or a PayPal account in

order to make payments. However, some systems enable users to create

accounts and pay by alternative means, such as billing it to mobile phones

and landlines, paying cash on delivery (COD), through cheque/checks, debit

cards, gift cards, etc.

 Once a payment has been accepted, the product/s can be through a)

shipping: The product is shipped to a customer-designated address.

Retail package delivery is typically done by the public postal system or a

retail courier such as FedEx, UPS, DHL, or TNT; b) drop shipping: The order

is passed to the manufacturer or third-party distributor, who then delivers

the item straight to the buyer, bypassing the retailer's physical location to

save time, money, and space; c) In-store pick-up: The customer selects a

local store using a locator software and picks up the delivered product at the

selected location. This is the method often used in businesses with both

modes of online and in-store selling.

 STATEMENT OF THE PROBLEM

Although both methods of businesses (online and in-store) are

concurrent, retail competition increases day-by-day as the attention of

buyers towards which process satisfies them best is divided.

SIGNIFICANCE OF THE STUDY

This study is important for commercial purposes wherein it will provide

knowledge and information regarding the two major approaches of selling as

well as shopping. This research is also significant for the following entities:

For Future Entrepreneurs, this research may be of help for them to

determine what mode of business to put up, either a traditional or online

business, based on the preferences of consumers and its suitability to their

sort.

For both Traditional and Online Shoppers, this research will help

them to be aware and mindful of the advantages and disadvantages of both

methods of shopping. They will be able to have important information on

how these will affect their means and experience of purchasing.

For Future Researchers, this research can serve a guide and/or a

potential reference for future researchers with the same subject.

 OBJECTIVES

The long-term goal of this research is focused on helping current and

future entrepreneurs in their process of putting up an effective business

based on the customer's satisfaction and preference between online and in-

store shopping. This study also has the following sub-objectives:

1. Effectively compare both modes of business in terms of selling for

retailers and shopping for customers.

2. Assess various factors that meets the customers satisfaction for both

modes of business (online and in-store shopping).

3. Determine the advantages and disadvantages of both online and in-

store selling for retailers.

4. Provide efficient recommendations for the business of both existent

and future entrepreneurs concerning their probable target market.

 PRELIMINARY REVIEW OF RELATED LITERATURE

This section will present the advantages and disadvantages of putting

up a business online or in-stores in reference to accumulated related

literature and studies.

Online shopping has dominated the business sectors in various

economic states; it includes buying clothes, gadgets, shoes, appliances, or

even daily groceries on the Internet. Some buyers opt for online shopping

because 1) it saves their time and energy, 2) online shops tend to offer

greater deals rather than sellers in malls or physical stores, and 3) it is easier

to navigate and look for their merchandise of interest (Reverchuk, 2015).

Despite of the success of online shopping, there are still disadvantages

that most people complain about, such as waiting to arrive for the item that

they just ordered, and cannot personally check the item and only bases from

the description of the product that the customer wants to buy (Rhodes,

2013). Meanwhile, in-store shopping, the main advantage is for the

customers to see the product in its physical form and can further inspect it

for its quality, it also has the ability to choose the method of payment which

is either cash or card, it also provide the customer the appropriate

information on the goods he or she will purchase and having a staff that will

assist him or her, and also it doesn't need to wait for the product to arrive or

to have, but despite of these advantages, customers may not have the time

to commit to shopping in-store and therefore leading them into online-

shopping, it lacks on discount offers, and it also doesn't have a wide range of

stocks that the customer would like and prefer, as well as the availability of

stock (Disadvantage Of In Store Shopping Marketing Essay, 2015). Nearly 40

percent of consumers make purchases once a week, compared to just 27

percent who do the same online, according to PwCs annual consumer

survey. The main reason why consumers do not prefer online shopping on

their smartphones or tablets is because of security issues. One-third of the

US consumers surveyed said they do not use their smartphones due to

security concerns, while 77 percent said they are wary about having their

credit card information hacked. Though social media plays an important role

in the shopping process for consumers, only 4 percent of US consumers have

purchased items via social media, 36 percent said it is because of their

interactions with brands on social media has led them to buy more from

these brands. The study was based on surveys of more than 19,000

consumers around the world (Brooks, 2015).

 METHODOLOGY

Literature review, conceptual modeling, and data gathering will

conduct the primary research method for this study. This study will first

distinguish the distinct differences of online and in-store selling, then review

the aspects that influence the approval of buyers in both methods of

shopping. Subsequently, the researchers will identify the costs and benefits

brought by both methods to finally formulate recommendations and

accomplish this studys objectives.

RESEARCH DESIGN

This study will be utilizing the descriptive-qualitative method and

descriptive-quantitative method of research. Initially, the researchers will

utilize related literatures and studies to gather information according to the

matter to obtain partial objectives of the research. The researchers will also

form a conceptual and theoretical framework to explain, predict, and

visualize the gist of the study and, in many cases, to challenge and extend

existing knowledge within the limits of critical bounding assumptions. Lastly,

the researchers are to conduct surveys and formal interviews that will supply

information from a particular population.

 CONCEPTUAL FRAMEWORK

ONLINE VS. IN-STORE

SHOPPING
INPUT PROCESS OUTPUT

Preliminary Analysis of data Formulate a

knowledge about through: comparative
traditional and - Formal assessment
online shopping interviews between online
- Survey and in-store
Mechanisms of questionnaires shopping
traditional and - Statistical Provide an
online shopping treatment innovative
Review of related prospect when
literatures and putting up a
previous studies business for future
entrepreneurs
- Advantages and Give business
disadvantages of recommendations
traditional and
to would-be
online shopping
sellers regarding
to customers
- Costs and the satisfaction
benefits of and preference of
traditional and
online selling to
retailers

Formation of
survey and
interview
questionnaires
Statistical
 REFERENCES

Rohm, Andrew J; Swaminathan, Vanitha (2004-07-01). "A typology of online shoppers based on shopping

motivations". Journal of Business Research. Marketing on the web - behavioral, strategy and practices and

public policy. 57 (7): 748757.

Bigne, Enrique (2005). "The Impact of Internet User Shopping Patterns and Demographics on Consumer

Mobile Buying Behavior" (PDF). Journal of Electronic Commerce Research.

Gramigna, Kristen (2014). Retail or E-tail? Buying Online Vs. Buying in Person.

<www.business.com/articles/retail-or-e-tail-buying-online-vs-buying-in-person>

Reverchuk, Lyu (2015). What are the advantages and disadvantages of online shopping? Quora E-

commerce.

Torres, Matthew (2016). Comparison: Buying Online vs In A Store. Buying Guides. <www.lifewire.com/buy-

online-or-in-store-3276438>

Paglia, Chloe (2013). Online Shopping vs. Traditional In-Store Shopping. Saving Money, Smart Shopper.

<www.quickenloans.com/blog/online-shopping-traditional-instore-shopping>

Brooks, Chad (2015). Shoppers Still Prefer In-Store Over Online Shopping. Grow Your Business, Sales &

Marketing. <www.businessnewsdaily.com/7756-online-shopping-preferences.html>