1

JOSE MARIA PANGANIBAN

SENIOR HIGH SCHOOL

Chapter 1
THE PROBLEM AND ITS SETTING

THE INTRODUCTION
As part of every individual’s lives, shopping has become a daily activity.
Every person must buy things in order to supply the necessities of oneself or
family. Every one of us go to places where we could buy a certain product that
we need whether it is in mall, grocery stores, shopping center and even online.

The technological advancement has created a more convenient way of

purchasing and selling of products and services. During the era of new digital
economy, electronic commerce has emerged. According to Investopedia (2019),
electronic commerce or e-commerce is a business model that lets firms and
individuals buy and sell things over the internet.

As stated by Kaushik (2015), electronic commerce is a methodology of

business which addresses the needs of business organization, vendors and
customers to reduce cost and improve quality of goods and services while
increasing the speed of delivery.
On the other hand, Traditional shopping is defined by the website of
DifferenceBetween.net (2013) as having the ability to physically choose and
check out what an item or product is like, would look like and what its features
are.
In addition, a blog published by Thomas (2018) stated that offline
shopping is a traditional way of purchasing products or services by directly
visiting to the store, shop or vendor.
Consumers and retailers are going through a tough and complex
situation driven by technology. As they transit through this paradigm shift, the
traditional linear path – to – purchase has been replaced by modern consumers
checkered path – to – purchase. Now, the shopping journey is across a
multitude of channels from stores to connected devices, everything and all
being interconnected. (Shamala, 2015)
It depends upon a person which medium they follow for shopping. It is
an era of technology, so people want to take advantage of that thing and prefer
online shopping but still there are some persons who don’t trust online sites and
prefer offline shopping. (Mahajan, 2018)
The researcher’s intention of pursuing this study is to determine which
channel of purchasing among the two – Electronic Commerce and Traditional
shopping is the most preferred of consumers.
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STATEMENT OF THE PROBLEM

This study aims to determine which channel of purchasing among the two –
Electronic Commerce and In-Store is the most preferred of Generation Z,
Millennials and Generation X in Villaflor, Barangay Gulod, Novaliches, Quezon
City. This research also seeks to determine the significant relationship of the
three classification of Age (Generation Z, Millennials and Generation X) to the
consumer’s choice of Purchasing Channel. The researchers therefore looked up to
address the following specific questions:

1. How many respondents are under the Purchasing Channel

A. Electronic Commerce?
B. In-Store Shopping?
2. What is the most preferred Purchasing Channel of the
following classification of age?

A. Generation Z
B. Millennials
A. Generation X
3. Is there a significant relationship between the Purchasing
Channel of consumers at Villaflor, Barangay Gulod,
Novaliches, Quezon City and:

3.1 Generation Z?
3.2 Millennials?
3.3 Generation X?

HYPOTHESES
The following are the hypotheses formulated by the researchers:
: There is no significant relationship between Generation Z and consumer’s
purchasing channel.

: Millennials is not significantly related to the consumer’s purchasing

channel.

: Generation X has no significant relationship on consumer’s purchasing

channel.
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SIGNIFICANCE OF THE STUDY

The outcomes of this study will be beneficial to the following:

Business industries. This study will be of great help to the business industries as
it will provide them information regarding the purchasing channel preference of
consumers. Through this research they will get an idea on which channel is the
best to settle a business.

Future Business Owners. It will benefit them because they will have an idea on
how electronic commerce and in-store can help them in creating their own
business.

Future Researchers. This research will be beneficial to the future researchers

because this study can be one of their sources of information and could serve as
reference if ever their study is aligned in this field.

DEFINITION OF TERMS
For better understanding and clarifications, the following terms related
in this study were defined operationally:

Authenticity. Refers to the originality, quality and reliability of the product

offered.

Channel. Platform for selling and buying of products or services.

Consumers. Consume goods and services directly and indirectly to maximize

satisfaction and utility. (economicsdiscussion,net, n.d.)

Convenience. State of being able to proceed with something with little effort or
difficulty (English – Filipino Dictionary, 2019)

Demographic. Refers to the respondent’s social status, sex, age, etc.

Electronic Commerce. Electronic commerce or e-commerce is a business model

that lets firms and individuals buy and sell things over the internet.
Investopedia (2019)

Generation X. Members of the generation born in 1965 up to 1980 (39-54 years

old)

Generation Z. Members of the generation born in 1997 up to 2012 (7-22 years

old)
Information. Refers to the factualness of the advertisement for a certain
product.
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In–Store Shop. A platform for selling and buying in which the products is seen
and touched physically.

Millennials. Members of the generation born in 1981 up to 1996 (23-38 years

old)

Offers. refers to the varieties of goods which can be provided by the store.

Pricing Policy. Refers to how e–commerce and In-store shop set the price of
their product and services.

SCOPE AND DELIMITATION OF THE STUDY

This study only focused on the purchasing channel preference of
consumers including only the e–commerce and In-Store that excludes food
delivery. This will include the consumer’s demographic profile specifically age
only. The respondents will only be selected at the locality of Villlaflor and will be
classified into three age groups ranging from Generation Z (7-22 years old),
Millennials (23-38 years old) and Generation X (39-54 years old).

CONCEPTUAL FRAMEWORK

INDEPENDENT VARIABLES
DEPENDENT VARIABLES
Classification of Age

a. Generation Z Purchasing Channel

b. Millennials a. Electronic Commerce
c. Generation X b. In-Store

Figure 1. Paradigm Showing the Variables of the Study

The study claims that there is no significant relationship between the

given three classification of age and the Preference of Purchasing Channel. It
does not affect whether an individual belongs to Generation Z, Millennials,
Generation X on the consumer’s preference on Purchasing Channel. In the
Figure 1, the two variables are the three classification of age mainly: a)
Generation Z, b) Millennials, c) Generation X. and the Purchasing Channel of
consumers in Villaflor, Barangay Gulod, Quezon City.
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Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the review of related literatures from different

researchers based on their findings and results regarding the factors that affects
the consumer’s purchasing channel. Moreover, it gave the researchers a
broader knowledge and understanding about this present research begin
conducted.

LOCAL STUDIES

From the article of Abad (2017), major mall developers in the

Philippines are aggressively expanding to other retail formats, such as hyper and
supermarkets, Filipino shoppers still turn to their trusted sari-sari, or
neighborhood variety stores, and nearby market stalls, as they still consider
traditional channels as the No. 1 shopping destination for fast-moving consumer
goods. Apart from the convenience element, another factor of traditional trade
or in-store shopping is the suki relationship, wherein there is trust and
confidence between the household purchaser, mostly the housewife, and the
shop or store owner.

The article of Abadilla (2018) demonstrated that Filipino online

shoppers expect free shipping, returns and discounts. It is also found out that
Asian online shoppers are least satisfied shoppers worldwide because shipping
is free on just 15 percent of orders.

Based on the website of Emcor (2017), More and more Filipinos now
prefer online shopping. While there are things that people still opt to buy in
person such as food, it is undeniable that there is a growing number of online
sellers and buyers. To compete with online-established stores, many established
physical stores have also already set up websites and online shopping options to
meet this need.

Every buyer has a different reason for buying online or offline. For some
people, they like to browse online before making the purchase in-store. Online
reviews and the option to browse through the entire selection contributes to
their decision to buy at a certain store.

Citing data from Facebook 2018 Holiday Study, Facebook Philippines’

Country Director John Rubio noted that shopping via mobile phones makes
people well-informed shoppers of products since they are able to research
about an item they want to buy as well as compare prices across brands, and
thus get the best deals available.
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The study, which analyzed the shopping habits of 1,504 people from
ages 18 and above in the Philippines, revealed that even when people go to a
physical store to shop, they still use their mobile devices to do some research.
(Galvez, 2018).

In an article published by Lazo in the website of Manila Times (2013), it

was stated that despite being active in the social networking community,
Filipinos retain “traditional” shopping habits,” according to recent Reader’s
Digest survey.

The Reader’s Digest Trusted Brands 2013 Survey, which polled 7,000
respondents in seven Southeast Asian countries, showed that only 17 percent of
the 1,000 Filipino respondents changed their shopping habits, despite the
“rising number of online stores in the last two years.”

According to the article published by Manglinong (2018), Social media

monitoring and intelligence firm Meltwater found in a recent study that the
Philippines provided 30 percent of the social media buzz on online shopping in
the Christmas season and special holiday sales for Black Friday and Single’s Day
as early as September. The Philippines ranked second just behind neighbor
Indonesia, from which 57 percent of the shopping buzz came. The study also
found that e-commerce websites Qoo10 and Lazada are the most talked about
online shopping hubs in the country.

According to the study held by MasterCard (2012), more and more

Filipinos are beginning to shop online. It also shows that the country’s e-
commerce potential is expected to grow even more with the emergence of
enabling technologies.

Based on the findings of Research and Tech Lab (2018), Filipino

shoppers still prefer shopping in brick and mortar stores over online platform.
Moreover, they also prefer inspecting the products themselves I do some
research for products online before buying them in physical store. RTL also
noted that although shoppers are drawn to appeal of purchasing online for
reasons such us no check out queues & available review of products, many are
still wary of site legitimacy.

Nearly nine out of 10 Filipino consumers do their shopping online, based

on a study commissioned by Visa International. The Visa eCommerce Consumer
Monitor 2014 also reveals that the top reasons for online shopping are
convenience (58 percent), price (47 percent), and deals (46 percent). The study
also reveals that those who prefer to do their shopping online spend an average
6.2 hours daily. In fact, 72 percent of the respondents have been shopping
online for the past 12 months. (The Philippine Star, 2014)
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Filipino shoppers still prefer in-store shopping than online. Online Shop
cannot compete with the personalized shopping experience, ability to review
product in person, hassle-free returns, easy, quick and detailed customer
service, and ability to take home purchases immediately which can provide by
the traditional stores (WSI, 2019).

FOREIGN STUDIES

According to Angel (2016), consumers can now switch channels

effortlessly while shopping, as they search online to buy offline or search offline
to buy online and everything else in between, using more than one channel in
their purchase journey.

According to Pinca (2015), online shops' common target is the youth

such as the students. Sixteen to twenty- four- year- old individuals are the most
familiar with the internet and social media so they tend to shop more in online.
The younger age group were good to buy online due to financial insufficiency-
online products are less expensive.

Age is an important demographic factor that affects consumer behavior.

As people grow, their needs change. Similar changes come to their buying
decision making patterns. With age, our health needs change and so do many
other needs.  Age brings changes to people’s lifestyle and with it their needs and
personal values are also affected. When people are young, they spend more on
their lifestyle needs from fun and movies to fashion. As they grow older, their
expenses on these things shrink. Elderly people mostly remain indoor; however,
their health-related expenses may rise.  In this way, age becomes one of the
fundamental demographic factors affecting consumer behavior and buying
decisions.

Age does not just affect buying behavior; it is also an important factor
affecting market segmentation and marketing strategy. Marketers segment
their target market based on age. There are several products that are marketed
only to the millennials. Similarly, there are products meant for the elderly and
which meet the needs of people past their middle ages. Lifestyle gadgets and
magazines are mostly marketed to the youth or the millennial generation. Since,
the taste of this generation is vastly different and they are more digitally
inclined, this affects not just the choice of marketing strategy but also the
marketing channels used to market to them. (Pratap, 2019)

A survey conducted in 2010 by the Neilson Company has polled over

27,000 internet users in 55 markets from Asia Pacific, Europe, Middle East,
North America and South America to look at how consumers shop online.
Consumers are getting choosier online. They have the power of choice and the
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world of online retailers at their fingertips; if one online store doesn’t fulfill their
needs, they just go to its competitor.

Consumers are likely getting choosier online. They have the power of
choice and the world of online retailers at their fingertips; if one online store
doesn’t fulfill their needs, they just go to its competitors. (Staff Ecommerce
News, 2015)

The concept of offline and online stores is based on different cost

structures, which inevitably play an important influence on consumer traffic and
subsequent transaction turnover through those channels. The cost differences
occur mainly in areas related to product acquisition. Consumers in offline
channels need to spend money on transportation to travel to the store and
spend time to locate and buy the product. Thus offline, “total cost = product
cost + time + transportation cost.” Whereas in the case of online stores, total
cost consists of the product base cost and other expenses in the form of time
spent online to locate and order the product plus shipping cost. Thus online,
Total cost = product cost + time + shipping cost; at times these additional costs
incurred in their respective channels lower the competitiveness and at times
these extra costs component is the final deciding factor responsible for
consumer channel choice. (Trenz, 2015).

LOCAL LITERATURE
Based on the study of Chayapa (2011), the process of making decisions
are very similar whether the consumers are offline or online but some major
differences are shopping environment and marketing communication.

Based on the research by We Are Social and Hootsuite (2019), it reveals

that 71 per cent (76 million) of the country’s total population of 107.3 million
people are active Internet users. Most Filipinos who shop online are between
the ages of 18 to 31—members of Gen Z and Millennials who are tech-savvy and
prolific social media users. More women (12%) shop online than men (8%) do,
even if fewer women have credit cards.

According to an eCommerce study by Visa (2015), it was found that

Filipino consumers shopped online for the reason Convenience which means
not having to go to and line up at brick-and-mortar stores (58%), better prices
compared to brick-and-mortar shops (47%) and Exclusive/better deals (46%).
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FOREIGN LITERATURE

Retailing today requires careful integration of the entire range of

available shopping channels both, online and offline. It requires all channels to
work in a seamless manner in the buying process, from discovery to purchase
both in-store and out. Going way beyond helping in-store consumers as they
cross-shop on digital devices.

Technology in retail has become a critically important competitive tool.

Consumers with the help of technology can better locate and acquire products.
Slowly but surely online digital technology is being implemented in stores to
engage consumers, as well as link in-store (Armstrong, 2016).

In-store purchase decisions can be discussed at the spur of a moment

with family and friends across borders, through chat messages and even send
product snapshots thanks to mobile technology. Today, whether online or in-
store more than ever consumers are finding ways to capitalize on information
diffusion through technology.

Technological presence in the consumer shopping process is

permanent, it is essential that the in-store mobile experience is more deployed
and technology friendly for a seamless experience (Bachrach et al., 2016).

According to the study of Banu, et. al. (2014), consumers preferred to

accept online purchasing portals for their purchases whenever they perceived
that the determinants like product preference through the respective
purchasing portals, variety options available in the portals and convenience of
online shopping and in accordance to their preferences.

In the study of Blanca Hernández (2011), it was found out that the
socioeconomic variables do not condition the behavior of the experienced e-
shopper. It was also revealed that once individuals attained the status of
experienced e-shoppers, their behavior became similar, independent of their
socioeconomic characteristics. In contrast to the majority of existing studies, it is
considered that the current development of the online environment should lead
to the analysis of a new kind of e-shopper (experienced purchaser), whose
behavior at the outset of this research field differed from that studied. The
experience acquired in online shopping nullifies the importance of
socioeconomic characteristics.

Chaing et. al. (2014) carried out a study in which they examined the
purpose the customer to purchase goods online during their shopping. Mainly
there are three variables in their study those affects the consumer to purchase
online or to go offline. Those are the accessibility features of the shopping sites,
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the type of the products and their characteristic, and the actual price of the
product. The study revealed that the accessibility and the convenience of the
shopping sites create the intention in the customer to purchase or not. When
there is difficulty faced by a consumer to purchase online then the customer
switch to the offline shopping for the purchase behaviour and the consumer
face difficulty in offline purchasing then they go to the online purchasing. After
relating both the medium of shopping the consumer said that the online
shopping is more convenient for them and gives more satisfaction which
inspires the consumer to purchase online in the internet.

Eastmen et. al. (2014) found that the population of senior who are more
literate, more knowledgeable and who are more aware of the technology and
those who have a positive behavior towards online shopping and internet are
more into online shopping. But the population of senior who are less aware of
the internet and the shopping sites are less involved in the shopping sites
because they do not have a positive attitude towards online shopping rather
they are much more interested in offline shopping and the seniors who are
more involved in the internet uses more online sites for purchasing the goods
over the internet. The senior which have more knowledge about the internet
and the shopping sites they compare both the shopping i.e. online and offline
shopping for their purchasing of goods. However, their knowledge and the use
of internet by them has no connection with their age and their satisfaction level
while purchasing online.

According to the study of Ewerhard et. al. (2019), the findings revealed
that multi-channels influence consumers’ decision-making and that there are
differences between Millennials and Mothers. Different devices and channels
are used at different stages of the decision-making process and we claim that
they complement, rather than conflict with each other. Retailers need to
understand that customers expect omni-channeling, which has a positive impact
on brand and sales. We argue that retailers who want to remain competitive will
need to move toward omni-channeling.

According to the study of Faber et. al. (2010), people who frequently
search online make more non-daily shopping trips, and that frequent in-store
shoppers are frequent online buyers. It thus appears that, in terms of shopping
trip frequencies, e-shopping and in-store shopping tend to complement or
generate each other. Yet, with respect to shopping duration we found that
frequent online searchers tend to have a shorter shopping duration per visit (to
one or more stores), because they make more shopping trips. Thus, the shorter
shopping duration of online searchers is most likely due to their higher shopping
trip frequency.

There are more similarities than differences among traditional and

online store shoppers. However, there are a few unique shopper types present
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at online stores, attracted by the distinctive characteristics and attributes of the
online retail environment (Ganesh, 2010)

The study of Gupta (2015) shows that the young generation are more
often purchasing from online sites because of the revolution in the technology
among the youth population and they can use this technology for their well-
being more than other age group category. There are increasing demand of
online shopping because the variety of options for the consumers to choose and
that to at a reasonable price and sometime even less price than the market. On
the other hand, earlier people more use the traditional shopping. Now also
people who are not aware of the several shopping sites and not that technically
advanced are less into internet for shopping.

The demand for seamless channel integration has increased

tremendously as consumers use many different channels to complete a single
purchase transaction. Consumers are now more into showrooming, as they visit
a shop or a stores website to check out products but may end up buying them
from another online store or retailer (Harper et. al, 2014)

Junhong Chu et. al. (2010) explored the moderating effects of household
(e.g., shopping frequency) and product (e.g., sensory nature) characteristics on
brand loyalty, size loyalty and price sensitivity across online and offline channels
of grocery products. Data was collected from one of the five leading grocery
chains in Spain. The study found that the households were more brand loyal and
size loyal but less price sensitive in the online channel than the offline channel.

According to consumers opinions, time saving is the most important

motivating factor for online shopping. Again, information availability, open 24/7,
huge range of products/ brands, reasonable prices, various offers for online
products, easy ordering system, and fun are other motivating factors for online
shopping respectively. It was also observed that online shopping is not
trustworthy and reliable to some consumers due to only online payment system
and personal privacy. In addition, online security is a major concern for the
consumer particularly in terms of fraud, privacy and hacking. The concerns for
online consumers‟ as well as online organizations, relating to online security as
„hackers, vandals and viruses‟ penetrate both vulnerable personal and
corporate security system. The main drawback of any contraventions in security
or privacy is the loss of trust and reputation, which may affect customer
confidence, which can be very damaging for web-based vendors (Karim, 2013).

Consumers today want shorter and smarter purchase journeys so that

they can travel through them with ease. Building relationships through these
journeys is a constant ongoing process and organizations must constantly
redefine their consumer strategies. And lastly, value dimensions play a very
important deciding role in channel purchase behavior among young consumers
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and an important deciding factor on their channel specific usage (Lalwani,
2016).

The study of Sarkar and Das (2017) shows that it’s mostly the
youngsters who are fueling the amazing growth story of online shopping. Large
discounts offered by the e-retailers have indeed put enormous pressure on
traditional stores.

Selvakumar (2014) concentrated on consumer’s perception of the

product sold online and the issues considered important to online shopping.
This study was conducted among the online shoppers at Coimbatore which is in
Tamil Nadu state. It is to analyse the impact of consumer opinion and the
attitude. Questionnaire was made to collect the data from the population; these
questionnaires were given to college going students. The total sample size is 150
respondents. The finding of this study shows that improvement and accessibility
influence the customer’s intention to shop online.

The study of Simangunsong (2018) shows that generation z likes to shop

online. Ease (convenience), perception of lower prices, varieties of products and
time efficiency are the most common reason to go for online shopping.
Clothing/fashion is the category of purchase that has a higher preference for
online shopping followed by food & beverage. Female generation Z is online
consumers that tend to choose clothing/fashion products as a spending priority
compared to male generation Z consumers.

The study of Sivanesan (2017) states that Online shopping is gaining

popularity among people specially the younger generation but in today scenario
to become equally popular among all age groups online shopping will have to
cover a longer distance. The study has revealed that most of the customers have
favorable attitude towards online shopping and majority of the customers suffer
due to unnecessary delay. So, they should take care to improve their
environment to avoid delay.

As online channels become more prominent due to high-speed mobile

internet connectivity, offline channels cannot be ignored. Both these channel
categories have their pros and cons, at times they even complement each other.
These channels are vital for each other’s existence even though they are based
on different transactional structures. These differences and their implications
are classified on the bases of “information transparency, interactions and cost”
(Trenz, 2015).

Consumers today are not only connected twenty-four hours a day seven
days a week but are also empowered. They prefer to shop at their convenience
as they travel through various touch points. With the advent of online channels
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and ongoing digitalization, channels such as mobile and social media have
influenced the way consumers behave through their search and acquisition
patterns (Verhoef et. al., 2015).

The reasons that people give for choosing to shop online include
convenience, speed, variety and cost. Avoiding crowds and not having to pay for
parking are also right up there on the list (Whistl, 2018).

Yaobin Lu (2011) focused on factors that influence users’ intention to

transfer their usage from the offline to the online channel that offer similar
services. The study revealed that innovativeness in new technology and relative
benefit had positive effects on users’ intention to transfer usage. Moreover, the
findings of the study also indicated that internet experience moderates the
relationship between relative benefit and consumers’ intention to transfer
usage from offline to online services.

Chapter 3
METHODS OF RESEARCH AND PROCEDURES
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This chapter presents the methods of research including the research

design, respondents, sampling techniques, instruments, data collection and
development of research instrument and the statistical treatment used in the
analysis of data.

METHODS OF RESEARCH

Research Design
A descriptive correlational design was employed in this study to
determine the relationship between the given factors (Generation Z, Millennials
and Generation X) and Purchasing Channel of Consumers in Villaflor, Barangay
Gulod, Quezon City. As defined by Bhat (2019), the researchers measure two
variables and assess the statistical relationship between them with no
extraneous variable.

Respondents
The respondents of this study were gathered from the population of
Barangay Gulod specifically in Villaflor. The whole sample consist of 150
respondents that are classified into three that has an equal number of
respondents: Generation Z (50), Millennials (50) and Generation X (50).

Sampling Technique
A non-probability sampling particularly quota sampling was used for
selecting the respondents of this study. Using this sampling technique, the
assembled sample has the same proportions of individuals as the entire
population with respect to known characteristics or traits which is the age
group.

Instrument
The instrument used was a researcher-made questionnaire to gather
the data needed in this study. The questionnaire contains the demographic
profile (Age, Gender and Social Status) and a set of two statements per category
(Convenience, Authenticity, Offers, Information and Value for Money) that is
answerable through choosing between In-Store Shopping or E-commerce
Shopping. The questionnaire was made from the researcher’s analysis and
synthesis on the related studies and literature.

DATA COLLECTION AND DEVELOPMENT OF RESEARCH INSTRUMENT

After the questionnaire was created, the researchers sought for an
expert to validate the contents of questionnaire. When the validation was done,
the researchers next sought for the approval of the Barangay Captain of
Barangay Gulod to formally conduct the survey. When the Permission letter was
signed, the researchers started to conduct the survey in Villaflor. The
researchers personally distributed the questionnaire and explained the
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instruction for answering the survey. The researchers waited until the
respondents finished answering the survey and with the full cooperation of the
respondents, all the distributed questionnaire was successfully retrieved. The
survey was conducted every after dismissal of class (1:30 PM onwards) that lasted
for a week.

STATISTICAL TREATMENT OF DATA

The data gathered in this study was subjected to the following statistical
treatment:
For the first problem, to determine the frequency of responses in each
factor, the researchers used the descriptive data analysis strategy which is the
frequency.
In second problem, to determine the most preferred Purchasing
Channel of Post-Millennials, Millennials and Generation X, the data were tallied
separately according to the classification of age.
Lastly, in order to determine the significance of relationships, the
researchers used the inferential data analysis strategy utilizing the Chi-Square
Test of Independence. The formula for Chi-Square Test of Independence,
Expected Frequency and Degree of Freedom are shown below:

Chi-square Test of Independence

=
where:
fo=observed frequency
fe=expected frequency

Expected Frequency

Degree of Freedom

𝒅𝒇 = (𝒏 − 𝟏) (𝒏 − 𝟏)

where:
n1= column total
n2= row total
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Chapter 4
ANALYSIS, PRESENTATION AND INTERPRETATION OF DATA

This part presents the data collected that were tallied and tabulated,
the results of the statistical analysis done and interpretation of findings. The
discussion is arranged based on the statement of the problem presented in this
study.
The first problem of this study focused on the total numbers of
respondents that chose Electronic Commerce and In-Store Shopping. In this
problem, the researchers used the descriptive data analysis strategy which is
the frequency. The tabulated frequency is shown below:
Electronic In-Store Shopping Total
Commerce
Responses 82 68 150
Table 1. Total Responses in Electronic Commerce and In-Store Shopping

The table 1 shows that there are more respondents from Villaflor,
Barangay Gulod who chose Electronic Commerce with a total of 82 responses
while a total of 68 chose In-Store Shopping.
Classification of Electronic In-Store Shopping Total (row)
Age Commerce
Generation Z 27 23 50
Millennials 27 23 50
Generation X 28 22 50
Total (column) 82 68 150
The second problem seeks to determine the most preferred Purchasing
Channel of the following classification of age (Generation Z, Millennials and
Generation X). In this problem, the researchers used the descriptive data
analysis strategy which is the frequency. The tabulated frequency in each
classification is shown below:
Table 2. Total Responses of Respondents from each classification of Age

The table 2 shows that Generation Z and Millennials both prefer

Electronic Commerce that got the same total of responses which is 27 over In-
Store Shopping that only got a total of 23. Generation X also prefer Electronic
Commerce that has a total of 28 responses over In-Store Shopping that got a
total of 22.
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To summarize the findings in problem number 3, refer to the table given below:

INDEPENDENT CHI- DEGREE OF CRITICAL DECISION

VARIABLES VALUE ( FREEDOM VALUE
)
Generation Z 22.63 9 16.92 Reject Ho
Millennials 63.53 9 16.92 Reject Ho
Generation X 30.50 9 16.92 Reject Ho
Table 3. Summary of results in Computation for Chi-square Test of
Independence

The result in table 3 indicates that the is rejected since the

computed chi-value is 22.63 and is greater than the critical value of 16.92 which
means it falls under the rejection region. Therefore, there is a significant
relationship between Generation Z and Purchasing Channel. This relationship
indicates that being a member of Generation Z affects the choice of their
purchasing channel. This result agrees with Criteo report provided to Marketing
Dive (2018) who asserted that Gen Z’ers enjoy in-store experiences, with 80%
saying they look forward to shopping in stores when they have time, but 75%
prefer to do most shopping online when they can out of convenience. Nearly
two in three Gen Z’ers (65%) prefer being able to touch and feel products before
making a purchase, and 67% use their phones in stores to research items they
plan to purchase. When it comes to online shopping, 38% of Gen Z’ers say it’s
difficult to find what they need online, and 35% don’t feel comfortable making
purchases online.

is also rejected since the computed chi-value is 22.63 and is greater

than the critical value of 16.92 which means it falls under the rejection region.
Hence, Millennials is significantly related to Purchasing Channel. This
relationship indicates that being a member of Millennial affects the choice of
purchasing channel. This result also conforms to study of Ewerhard et. al.
(2019) which revealed that multi-channels influence consumers’ decision-
making of Millennials. Different devices and channels are used at different
stages of the decision-making process and we claim that they complement,
rather than conflict with each other. Retailers need to understand that
customers expect omni-channeling, which has a positive impact on brand and
sales. We argue that retailers who want to remain competitive will need to
move toward omni-channeling.
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JOSE MARIA PANGANIBAN
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Lastly, the result that shows is rejected indicates that there is a
relationship between Generation X and Purchasing Channel. This relationship
also indicates that being a member of Generation X affects the choice of
purchasing channel. This finding is aligned to the article published in the website
of En Garde (2017) wherein it states that when the digital world came around,
generation X have already been shopping in-store for years. Now, they are a
hybrid in terms of shopping, as they still enjoy shopping in-store. However, they
also enjoy the benefits of purchasing things conveniently online. Gen Xers are
believed to be very dedicated to lists while shopping, however, they also admit
to impulse purchasing while shopping.
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Chapter 5
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of findings, conclusions and

recommendations based on the data analyzed in the previous chapter.

SUMMARY
This part provides the summary of objectives, methodology and findings of the
study.
This study was conducted to determine the preferred purchasing
channel of consumers in Villaflor, Barangay Gulod, Quezon City as well as the
relationships of the variables. In order to determine the said objective of the
study, the methods that the researchers used are descriptive correlational
design and a non-probability quota sampling in which a survey was used for
data gatherings. The total sample size of this study comprised of residents from
Villaflor, Barangay Gulod which was classified into three classification of age:
Generation Z (ranging from 7-22 years old), Millennials (ranging from 23-38
years old) and Generation X (ranging from 39-54 years old).

In order to obtain data for preferred purchasing channel, a set of

questions that were categorized into five factors was used. Hence the overall
data respective to each variable was collected. These gathered data were
analyzed by using the data analysis of Chi-Square Test of Independence. The
obtained findings after data analysis stated that Electronic Commerce got the
highest responses from all the respondents. Dividing the respondents into three
classification of age (Generation Z, Millennials and Generation X), majority of
respondents from each classification chose Electronic Commerce. In addition,
the results also indicated that all the classification of age has a significant
relationship to the preferred purchasing channel.

CONCLUSION
From the insights gained by the researchers regarding data analysis, it
was found out that:
1. Majority of the respondents still prefer shopping on Electronic
Commerce. The researchers therefore presume that the respondents
find shopping on Electronic Commerce more convenient, authentic,
offers wide range of items they need, has reliable information about the
items and offers affordable products and discounts. This result is aligned
with the eCommerce study by Visa (2015) which was found out that
Filipino consumers shopped online for the reason Convenience which
means not having to go to and line up at brick-and-mortar stores (58%),
better prices compared to brick-and-mortar shops (47%) and
Exclusive/better deals (46%).
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2. Majority of the respondents from Generation Z, Millennials and
Generation X prefer shopping on Electronic Commerce over In-store.
The researchers assume that the above-mentioned classification of age
have similar choice in the factors that affects their preference of
purchasing channel such as Convenience, Value for Money and Offers.
The findings of the three different studies proved the conclusion of the
researchers wherein according to Pinca (2015), online shops' common
target is the youth such as the students. Sixteen to twenty- four- year-
old individuals are the most familiar with the internet and social media
so they tend to shop more in online. The Generation Z, Millennials and
Generation X are significantly related to the purchasing channel. This
relationship indicates that the classification of age affects whether an
individual will do shopping in Electronic Commerce over In-store.
Meanwhile, in the article published by Ross (2019), it was stated that
Millennials make more than 54% of their purchases online. They
admitted that they prefer buying online because they can run
comparison on products and prices. Lastly, the article published by SJC
Insights (2018) mentioned that while brick and mortar retail is still
popular with this generation, online shopping is becoming increasingly
important. In fact, Generation X’ers make more online purchases than
any other generation, 20% more than Millennials.

3. The Generation Z, Millennials and Generation X are significantly related

to the purchasing channel. This relationship indicates that the
classification of age affects whether an individual will do shopping in
Electronic Commerce over In-store. This conclusion is aligned with the
study of Mahajan (2018) which mentioned that it depends upon a
person which medium they follow for shopping. It is an era of
technology, so people want to take advantage of that thing and prefer
online shopping but still there are some persons who don’t trust online
sites and prefer offline shopping.
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RECOMMENDATION
Based on the findings in data analysis, the following are recommended
by the researchers:

To the business industries and future business owners, firstly, they

could engage their business through e-commerce since majority of the
respondents prefer online shopping. Secondly, they must strengthen physical
stores by providing more convenient way of shopping, offer more affordable
products and providing reliable information about the products through
creating attractive promotional materials such as flyers, posters and TV
commercials for those big companies. Lastly, they could apply the omni-
marketing since there are still consumers who prefer shopping in physical store.

To the future researchers, they can include in their study the factors
affecting consumer behavior such as Convenience, Authenticity, Quality etc. and
determine the relationship of this consumer behavior to the preference of
purchasing channel. They can also include the demographic profile of their
respondents such as sex and social status.

REFERENCES
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JOSE MARIA PANGANIBAN
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Abadilla, E. (2018). Filipino Online Shoppers expect free shipping, returns.

Manila Bulletin.

Abad, R. (2017). Most Filipino consumers still rely on traditional channels

to obtain fast-moving goods. Retrieved from
https://businessmirror.com.ph/2017/12/24/most-filipino-
consumers-still-rely-on-traditional-channels-to-obtain-fast-
moving-goods/

Armstrong, G., et. al., (2016). Marketing an Introduction –Global Edition.

13th edn, Pearson, England.

Bachrach, D. G.,et. al., (2016). More than a showroom: Strategies for

winning back on-line shoppers

Banu, A., et. al., (2014). A Study on Customer Preference Towards Online
Shopping. International Journal of Advanced Research in
Management and Social Sciences. Vol. 3, No. 5.

Blanca Hernández, J. J. (2011). "Age, gender and income: do they really affect
moderate online shopping behaviour?". Online Information Review, Vol. 35
Iss: 1, pp.113 - 133.

Chaing, P. & Dholakia, R. J. (2014). Factor Driving Consumer Intention to Shop

Online: An Empirical Investigation: Journal of Consumer Psychology, 13 (1&2),
177-183.

Farag, S. & Faber, J. (2010). Shopping online and/or in-store? A structural

equation model of the relationships between e-shopping and in-store
shopping. Transportation Research Part A: Policy and Practice. Volume 41,
Issue 2. Pages 125-141.

Ganesh, J. & Pomirleanu, N. (2010). Online Shopper Motivations, and e- Store

Attributes: An Examination of Online Patronage Behavior and Shopper
Typologies. Journal of Retailing. Volume 86, Issue 1. Pages 106-115.

Gupta, P. (2015). Comparative Study of Online and Offline Shopping: A Case

Study of Rourkela in Odisha. Department of Humanities and Social Science
National Institute of Technology.

Iyer, R. & Eastman, J. (2014). The Elderly and Their Attitude Toward s the
Internet: The Impact of Internet use, Purchases, and Comparison
Shopping. Journal of Marketing Theory and Practice, Vol.14, No.1.
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SENIOR HIGH SCHOOL
Karim, R. A. (2013). Customer Satisfaction in Online Shopping: A study into the
reasons for motivations and inhibitions. IOSR Journal of Business and
Management. Volume 11, Issue 6, PP 13-20.

Lalwani, D. (2016). Young Consumers Online and Offline Channel

Purchase Behaviour. International Business Management.

Mullin, R. & Harper, C. (2014). Shoppernomics: How to Shorten and Focus

the Shoppers Routes to Purchase.

Pinca, K. (2015). Online Shopping Behaviour Of Students in the College of

Business Administration: Basis for Enriching Content of the Subject
Matter. International Journal of Education and Research. Vol. 3,
No. 1, 2015 (www.ijern.com)

Sarkar, R. & Das, S. (2017). Online Shopping vs Offline Shopping: A

Comparative Study. International Journal of Scientific Research in
Science and Technology. Vol. 3, Issue No. 1.

Selvakumar, N. (2014). Consumer Search Behaviour in Online shopping

Environment, E-Service Journal, Vol.3, No.3, pp. 87-102.

Simangunsong, E. (2018). Generation Z Buying Behaviour In Indonesia:

Opportunities for Retail Businesses. MIX: Jurnal Ilmiah Manajemen.
Volume 8, No. 2.

Sivanesan, R. (2017). A Study on Problems Faced by Customers in Online

Shopping. International Journal of Research in Management &
Business Studies. Vol. 4 Issue 3.

Trenz, M. (2015). Multichannel Commerce: A consumer perspective on the

integration of physical and electronic channels. 1st edn, Springer, Switzerland.

Verhoef, P. C., Kannan. P. K. & Inman, J. J. (2015). From Multi-Channel

Retailing to Omni-Channel Retailing: Introduction to the Special Issue
on Multi-Channel Retailing. Journal of Retailing. Vol. 91, No. 2, pp.
174-181.
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APPENDICES
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COPY OF THE LETTER OF PERMISSION TO CONDUCT THE STUDY

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JOSE MARIA PANGANIBAN
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DECLARATION OF ANTI-PLAGIARISM

1. We, DE JESUS, DELA CRUZ, AND TUBINO understand that plagiarism is the
act of taking and using another’s ideas and works and passing them off as
one’s own. This includes explicitly copying the whole work of another
person and/or using some parts of their work without proper
acknowledgement and referencing.

2. We hereby attest to the originality of this research proposal and has cited
properly all the references used. I further commit that all deliverables and
the final research study emanating from this proposal shall be of original
content. We shall use appropriate citations in refencing other works from
various sources.

3. We understand that violation from this declaration and commitment shall

be subject to consequences and shall be dealt with accordingly by the
Department of Education.

Researcher 1: ___ SHIELA DE JESUS___________

Signature: __________________________________
Date: _______FEBRUARY 20, 2020__________

Researcher 2: _____ PAULO L. DELA CRUZ_________

Signature: __________________________________
Date: ________FEBRUARY 20, 2020_____ ___

Researcher 3: _____CHARINA N. TUBINO_________

Signature: __________________________________
Date: ________ FEBRUARY 20, 2020 ________
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JOSE MARIA PANGANIBAN
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DECLARATION OF ABSENCE OF CONFLICT OF INTEREST

1. We, DE JESUS, DELA CRUZ, AND TUBINO understand that conflict of interest
refers to situations in which financial or other personal considerations may
compromise our judgment in evaluating, conducting, or reporting research.

2. We hereby declare that we do not have any personal conflict of interest

that may arise from our application and submission of our research
proposal. We understand that our research proposal may be returned to us
if found out that there is conflict of interest during the initial screening.

3. Further, in case of any form of conflict of interest (possible or actual), which

may inadvertently emerge during the conduct of our research, we will duly
report it to the research committee for immediate action.

4. We understand that we may be held accountable by the Department of

Education for any conflict of interest, which we have intentionally
concealed.

Researcher 1: ___ SHIELA DE JESUS___________

Signature: __________________________________
Date: _______FEBRUARY 20, 2020__________

Researcher 2: _____ PAULO L. DELA CRUZ_________

Signature: __________________________________
Date: ________FEBRUARY 20, 2020_____ ___

Researcher 3: _____CHARINA N. TUBINO_________

Signature: __________________________________
Date: ________ FEBRUARY 20, 2020 ________
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JOSE MARIA PANGANIBAN
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RESEARCH INSTRUMENT

To Respondents:
We, the researchers of Grade 12 ABM students from Jose Maria
Panganiban Senior High School, are currently conducting a study entitled
“Electronic Commerce vs. In-Store Shopping: A Comparative Study on
Consumer’s Preference of Purchasing Channel in Villaflor, Barangay Gulod,
Novaliches, Quezon City”. In this connection, may we solicit your kind
indulgence and consideration by answering this questionnaire. Rest assured
that any information gathered will be treated with utmost confidentiality.
Thank you for sharing your precious time and effort.
Age:
DIRECTION: Kindly put a check ( ⁄ ) in each statement which corresponds to
your answer.
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JOSE MARIA PANGANIBAN
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DATA SETS

GENERATION Z IN-STORE E-COMMERCE ROW TOTAL

A1 24 26 50

A2 21 29 50
B1 29 21 50

B2 30 20 50
C1 21 29 50

C2 22 28 50
D1 34 16 50

D2 31 19 50
E1 23 27 50

E2 36 14 50
COLUMN TOTAL 271 229 500

Table 4. Column Total, Row Total and Grand Total of Responses from
Generation Z
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24 27.1 -3.1 9.61 0.356

21 27.1 -6.1 37.21 1.373

29 27.1 1.9 3.61 0.133

30 27.1 2.9 8.41 0.310

21 27.1 -6.1 37.21 1.373

22 27.1 -5.1 26.01 0.959

34 27.1 6.9 47.61 1.757

31 27.1 3.9 15.21 0.561

23 27.1 -4.1 16.81 0.620

36 27.1 8.9 79.21 2.923

26 22.9 3.1 9.61 0.419

29 22.9 6.1 37.21 1.625

21 22.9 -1.9 3.61 0.158

20 22.9 -2.9 8.41 0.367

29 22.9 6.1 37.21 1.625

28 22.9 5.1 26.01 1.136

16 22.9 -6.9 47.61 2.079

19 22.9 -3.9 15.21 0.664

27 22.9 4.1 16.81 0.734

14 22.9 -8.9 79.21 3.459

22.631

Table 4.1. Computation for Chi-square Test of Independence of Generation Z

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MILLENNIALS IN-STORE E-COMMERCE ROW TOTAL

A1 19 31 50
A2 21 29 50

B1 26 24 50
B2 30 20 50

C1 16 34 50
C2 33 17 50

D1 39 11 50
D2 34 16 50

E1 22 28 50
E2 31 19 50

COLUMN TOTAL 271 229 500

Table 5. Column Total, Row Total and Grand Total of Responses from Millennials
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JOSE MARIA PANGANIBAN
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19 27.1 -8.1 65.61 2.421

21 27.1 -6.1 37.21 1.373

26 27.1 -1.1 1.21 0.044

30 27.1 2.9 2.41 0.310

16 27.1 -11.1 123.21 4.546

33 27.1 5.9 39.81 1.285

39 27.1 11.9 141.61 5.225

34 27.1 6.9 41.61 1.535

22 27.1 -5.1 26.01 0.959

31 27.1 3.9 15.21 0.561

31 22.9 8.1 65.61 2.865

29 22.9 6.1 37.21 1.629

24 22.9 1.1 1.21 0.053

20 22.9 2.9 8.41 0.367

34 22.9 11.1 123.21 5.380

17 22.9 -5.9 34.81 1.520

11 22.9 -11.9 141.61 6.184

16 22.9 -6.9 47.61 2.079

28 22.9 5.1 26.01 1.136

19 22.9 -3.9 15.21 0.664

63.553

Table 5.1. Computation for Chi-square Test of Independence of Millennials

GENERATION X IN-STORE E-COMMERCE ROW TOTAL

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A1 21 29 50

A2 19 31 50
B1 27 23 50

B2 38 12 50
C1 19 31 50

C2 27 23 50
D1 34 16 50

D2 31 19 50
E1 25 25 50

E2 32 18 50
COLUMN TOTAL 273 227 500

Table 6. Column Total, Row Total and Grand Total of Responses from
Generation X
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21 27.3 -6.3 39.61 1.45

19 27.3 -8.3 68.89 2.523

27 27.3 -0.3 0.09 0.003

38 27.3 10.7 114.49 4.194

19 27.3 -8.3 68.89 2.523

27 27.3 -0.3 0.09 0.003

34 27.3 6.7 44.89 1.644

31 27.3 3.7 13.69 0.502

25 27.3 -2.3 5.29 0.194

32 27.3 4.7 22.09 0.809

29 22.7 6.3 39.69 1.748

31 22.7 8.3 68.89 3.035

23 22.7 0.3 0.09 0.004

12 22.7 10.7 114.49 5.044

31 22.7 8.3 68.89 3.035

23 22.7 0.3 0.09 0.004

16 22.7 -6.7 44.89 1.978

19 22.7 -3.7 13.69 0.603

25 22.7 2.3 5.29 0.233

18 22.7 -4.7 22.09 0.973

30.502

Table 6.1. Computation for Chi-square Test of Independence of Generation X

RESEARCH INFORMATION SHEET

A. Researcher Information
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Research Title CORRELATION BETWEEN AGE GROUPS AND PREFERENCE
ON PURCHASING CHANNEL OF CONSUMERS IN
VILLAFLOR, BRGY GULOD, QUEZON CITY
□ Action Research □ Basic Research □ Case Study
Research Category □ Qualitative Research □ Quantitative Research
□Both
Sample (Participants) 150 Participants
Research Tool Researcher-Made Survey Questionnaire
Duration of the Research 2nd Semester – November 2019-March 2020

B. Research Profile

Last Name De Jesus

First Name Shiela
Middle Name
Strand ABM Gender Female Birthdate Sept. 13, 2000
School Jose Maria Panganiban Senior High School
School Address Brgy. Gulod, Quezon City
Contact Number 09274210231
Educational Attainment
Senior High School Jose Maria Panganiban Senior High School
Junior High School Godofredo Reyes Sr. National High School
Elementary School Godofredo Reyes Sr. Elementary School
Signature

Last Name Dela Cruz

First Name Paulo
Middle Name Laid
 36
JOSE MARIA PANGANIBAN
SENIOR HIGH SCHOOL
Strand ABM Gender Male Birthdate April 15, 2002
School Jose Maria Panganiban Senior High School
School Address Brgy. Gulod, Quezon City
Contact Number 09302573891
Educational Attainment
Senior High School Jose Maria Panganiban Senior High School
Junior High School Doña Rosario High School
Elementary School Llano Elementary School
Signature

Last Name Tubino

First Name Charina
Middle Name Nuguit
Strand ABM Gender Female Birthdate Dec. 10, 2001
School Jose Maria Panganiban Senior High School
School Address Brgy. Gulod, Quezon City
Contact Number 09661387586
Educational Attainment
Senior High School Jose Maria Panganiban Senior High School
Junior High School Tandang Sora National High School
Elementary School Goodwill Elementary School
Signature