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Page
TITLE PAGE
ABSTRACT
TABLE OF CONTENTS 1
LIST OF FIGURES 3
LIST OF TABLES 3
ACKNOWLEDGEMENT 4
CHAPTER 1: THE PROBLEM
Introduction 5
Theoretical Framework 8
Conceptual Framework 10
Statement of the Problem 12
Significance of the Study 13
Scope and Limitation of the Study 15
Definition of Terms 16
CHAPTER 2: REVIEW OF RELATED LITERATURE 18
CHAPTER 3: RESEARCH METHODOLOGY 33
Research Design 33
Research Locale 34
Sampling Design 38
Respondents of the Study 38
Research Instrument 39
Data Gathering Procedure 41
Scoring Procedure 42
Statistical Treatment 43
CHAPTER 4: RESULTS AND INTERPRETATION OF THE DATA 46
Problem 1: What is the mean Satisfaction in Buying
Regardless of Mode of Selling?
1
LIST OF FIGURES
LIST OF TABLES
ACKNOWLEDGMENT
-The Researchers
3
CHAPTER 1
THE PROBLEM
Introduction
Throughout the existence of the Internet, the marketplace of the
business has brought into a massive range. Internet becomes the tool for the
businesspersons to promote and to sell their products or goods into the public
in the most accessible way. It is also frequently used for Online Shopping which
competes with the traditional selling method, the Direct Selling.
Theoretical Framework
First, The Buyer Resolution Theory is also known as 5W’s that gives a
simple framework questions of a salesperson to take a prospect on who is a
consumer. The questions frequently asked are “What should I buy?”, “Who
should I buy from?”, “What’s a fair price?”, and “When is the good time to buy?”.
Hence, if the salespersons will effectively answer all the questions for
consumers, he/she would be able to close a sale. Secondly, Decision Making
Process is acommon step of a consumer who will go through purchases. This
process begins with needs recognition which consumers are triggered to
consider a purchase. Consumer gets the information and develops a
consideration set. After evaluating, he/she will purchase what he/she believes is
the best value solution. In this way, the sellers can help by suggesting good
products which desired by the consumers. Lastly, the Dominant Buying motives
which can be an effective way to know the personalities of a consumer knowing
whether a buyer is more emotionally or rationally involved to help
businesspersons to organize their persuasive effort. In this case, the sellers
developed their relationships with the buyers to encourage long-term
relationship and patronage motivations.
Conceptual Framework
5
questionnaires.
Conceptual Framework
Direct Sellers. This study will help the Direct Sellers in determining
whether their customers are satisfied with their method of selling. The study
also becomes the basis for the improvement of their management because it
presents the comparative analysis between online shopping and Direct Selling.
Online Sellers. This study will help the Online Sellers in determining the
satisfaction level of their customers. The Online sellers will be able to know if
they met the expectations of their consumers. This could also become their
sources of information to improve their strategy in selling through internet.
Consumers who haven’t tried the Online Shopping. This study will
benefit the students who aren’t engaged yet in Online Shopping because they
will know if the Online Shopping is really a good way in ordering products or
goods.
Definition of Terms
Perception. It refers different to the different opinion, often held by many people
and based on how things seem. Particularly, this study aims to study the
different views of Capitol University Students between Online and Direct Selling.
Direct Sellers. It refers to a person who sells products or goods directly to the
consumers in the market.
7
CHAPTER 2
Professor Chen (2006) presented that Single level marketing and multi-
level marketing is included in the Direct Selling.
In single level Direct Selling, Direct Sellers are also considered as the
consumer. They sell the product or service of the company to the customer, then
receive bonus from the organization according to sale performance. Hence, their
income comes directly from the retailing sold to final consumers. On the other
hand, Multi-level Direct Selling is also called network marketing. Other than
getting profit from the sale of product or service, Direct Sellers also earned
through the downstream which may result to giving of rank and bonuses based
from the number of their downstream and sales performance.
William J. McDonald (1998) stated that “Business-to-Business this form
of direct marketing spans a wide range of strategies and techniques, and it
includes advertising for such diverse products office supplies, books, and
computers. Business-to-business activities encompass the full range of direct
marketing approaches, including direct mail, telemarketing, direct –response
print, and catalogs.”
“No business can be a success if it doesn’t keep its sales numbers high,
and maintaining a winning sales strategy is no easy feat. When it comes to
direct sales, whether you’re operating from a brick-and-mortar location or selling
your goods door to door, finding ways to attract and retain customers is crucial,”
Maguire, A. Therefore, Maguire stated (5) five strategies for Direct Sales Success;
1. Give free samples; 2. Utilize E-mail Marketing; 3. Engage on Social Media;
4.Cross-promote your Goods and/or Services; 5.Offer Extras.
CHAPTER 3
RESEARCH METHODOLOGY
This chapter viewed the methodology of the study and contains the
detailed discussion of the following parts: the research design, research locale,
sampling design, respondents of the study, research instrument, data gathering
procedures and the statistical tool used.
Research Design
12
methods. This provided consistent evidence corroborating the findings and
establishes the foundation for the recommendations.
This design was also qualitative that deals data that is primary verbal
and gives meaning from the CU Students’ perspective and satisfaction. The
qualitative approach was suitable for this study because the information
gathered focuses on the participants’ certain experiences regarding the research
study.
Research Locale
13
2
Sampling Design
14
School Students. Each of them was surveyed on what are their perception and
satisfaction between buying Online and Direct Selling.
Research Instrument
15
Data Gathering Procedure
The respondents were invited to participate in the survey and were told
that it would take only 10 to 15 minutes to fill out the questionnaire. It was
emphasized that their participation was voluntary and their responses would be
kept unanimous and confidential. Before the questionnaire and letter were
handed to the participants, the participants were told that should they wish not
to participate in the survey, they neither have to sign anything nor fill out the
questionnaire.
Scoring Procedure
16
Table 5. Scoring Procedure on the Satisfaction of the Respondents in
buying Online Shopping and Direct Selling
Statistical Treatment
The following statistical tools were used to analyze the data gathered to
answer the problems stated for this study:
P=
where:
P = is the percentage (%)
n = is the number of responses, and:
N = is the number of observation
Mean. This was used to determine the average ratings of the following:
factors that the CU Students before buying goods or services for consumption,
the perception and satisfaction level of the respondents towards Online
Shopping and Direct Selling. The formula is as follows:
∑ 𝑓𝑥
𝑥̅ =
𝑛
Where:
𝑋̅= sample mean
f = frequency
x = the value of any particular observations or measurement
∑ 𝑓𝑥 = sum of all the products of f and x’s
n = total number of values in sample
17
CHAPTER 4
RESULTS AND INTERPRETATION OF THE DATA
This chapter presents the results of the research which were designed to
empirically show the Comparative Analysis of CU Students on Perception and
Satisfaction in buying Online Shopping and Direct Selling for the school year
2016-2017.
This set of data was intended to describe the demographic variables of
the study of the sample and to assess for any influence on the research findings.
The demographic data consisted of age, gender, year level of the CU Students
including the Senior High School students and how they purchased their goods
and services consumed.
The study about the Comparative Analysis on Satisfaction and
Perception in buying Online shopping and Direct selling is conducted on the 372
Capitol University students. The figure below shows the distribution of gender of
the research study respondents.
The figure shows that among the 372 respondents, 56% of the respondents are
composed of female and 44% of the respondents are males. This presents that
207 respondents are females and 165 respondents are males. This could imply
that most of female students may have involved themselves in Online and Direct
Selling.
Gender
44%
Fem
56% ale
The figure below shows the distribution of age of the research study’s
respondents. The respondents ages 18-20 take the highest number with a total
of Two hundred thirty (230) which represents 62% of the respondents. Followed
by the ages 15-17 which consist of the Eighty-six (86) of the three hundred
seventy-two (372) respondents which take the 23%. This is usually a sum of the
Senior High School student and First year student respondents in the study.
Next Forty-nine (49) ages 21-23 and seven (7) respondents ages 24-26. Then,
most of the results of the study are from CU Students ages 18-20 that are
mainly 2nd year to 3rd year students.
Age
13% 2% 23% 15-17
18-20
62% 21-23
Figure 3.2. Distribution of the Respondent’s Age
18
Furthermore, the distribution of the respondents according to their year
level shows below. The figure shows the percentage of the respondents in each
year level which is three hundred seventy-two (372) respondents total. Nineteen
percent are Senior High School composed of Seventy-one (71) respondents; two
percent are first year students composed of nine (9) respondents. Twenty
percent are Second year students composed of Seventy-five (75) respondents,
Fifty percent (50%) are Third year students composed of One hundred eighty-
four (184) respondents and Nine percent (9%) are fourth year students
composed of Thirty-three (33) respondents. A total of one hundred percent
composed of three hundred seventy-two (372) respondents had been surveyed.
Third Year Students take the highest number with a 50% of the total
respondents in terms of the year level. This is followed by the Second Year and
Grade 11 Students, with 20% and 19% respectively. Then, the Forth Year
students take the forth in the rank with 9%. On the other hand, First year
students take the lowest portion in the distribution of the Respondent’s year
level of 2%. Since most of the respondents are Third Year students, this
presents that the data gathered are from respondents who have already obtained
sufficient knowledge about Online Shopping and Direct Selling.
2%
Year Level
19% 1st year
20%
2nd year
9%
3rd year
50% 4th year
The 372 respondents who are students of Capitol University are asked on
how they purchased the goods and services they consumed for their daily
consumption. The figure below shows the distribution of the respondents
regarding on the different purchasing method they are involved: (a) through
internet, (b) through direct sellers in the market or malls, or (c) either through
online or Direct Sellers.
Twenty-nine (29) of the three hundred seventy-two (372) respondents
have used the Internet alone in purchasing goods or services. On the other
hand, there are one hundred ninety one (191) of the respondents who purchased
from a direct sellers goods or services offered in the markets or in malls. While,
there are one hundred fifty-two (152) respondents purchased goods or services
through online orders offered in the internet and at the same time offered by
Direct Sellers in malls and in markets. Purchasing through Direct Sellers in the
market and in malls take the biggest portion with a fifty-two percent (52%)
regarding on how the respondents purchased their goods and services
consumed. Followed by either online or direct sellers which represent the forty-
one percent (41%). Lastly, purchasing through internet alone take the lowest
portion, which garnered only an seven percent (7%) from the total respondents.
In addition, the figure implies that 48% of the respondents have experienced
purchasing in the through the use of internet and 93% of the respondents
experienced to deal with a direct seller to purchase products for consumption.
Most of the respondents have tried purchasing in direct sellers in malls
and in markets. And, only half of the respondents have tried purchasing the
Online Shopping through internet. This implies that CU Students purchased
frequently in direct sellers rather than Online Sellers. Further, even though
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students are influenced by the technology, they still do not give their trust when
purchasing goods or products through online. It is because they may think that
the information presented is not reliable compare to the direct sellers where they
can meet personally the middlemen before purchasing the products. Hence, this
could affect the study in determining the satisfaction level of the respondents
regarding to the Online Shopping and Direct selling mode of selling.
7%
Internet
41%
52%
Figure 3.4. Distribution of the respondents what method they have used in
obtaining goods and services they consumed.
Table below shows that the respondents often (3.97) buy products offered
at lower price regardless of mode of selling. Also, the respondents often (3.80)
purchase products when offered on discounts or on sale. It means that
respondent do not always give importance to the price whether it is expensive or
not.
In terms o the totality of the products, the respondents often (4.15) buy
products because of the appearance. They are even often (4.16) buy products
because of the quality, often (3.88) purchased because they are attracted on the
packaging applied, often (3.97) because of its features and often (4.10)
considered the products comfortability. However, the respondents expressed
that they always (4.23) give importance on the usefulness of the products in
buying regardless of the mode of selling. Moreover, the respondents often (3.73)
buy products because it is trendy in the market. In terms of the business
reputation, the respondents often (3.73) considered the reputation of the
manufacturers in buying a product. They often (3.73) buy products because of
the accessibility of the place.
As to the person who influences them in buying goods for their daily
consumption, friends and family are often (3.87) affects the respondents’
purchasing decision. The TV Advertisement Personalities also often (3.59) affects
the respondents in purchasing goods irrespective to the mode of selling. This
implies that the purchasing decision of the respondents always depends on their
willingness to buy. They are often influenced by their family, friends and even
the television advertisement.
Furthermore, The table presents that respondents often (3.93) buy the
products because they will receive it faster and often (3.82) because they have a
good communication with the sellers.
This implies that the usefulness of the products take the highest mean
satisfaction of the respondents in buying goods regardless of the mode of selling.
This presents that the respondents did not always buy product because of
persons influenced them nor because of the product appearance, quality,
20
features, comfortability but because of its usefulness.
21
(4.35) are strongly agreed that it will last long and the both (3.89) are agreed to
have long useful life. This implies that products of direct selling are durable and
long-lasting.
It was agreed by the respondents that the products delivered in the
Online (3.45) will be deliver as to the customers’ expectations. It was strongly
agree that direct selling delivers the product as what the customers’ expected.
The respondents agree that both (3.56) met the expectation of the customers on
their product.
The products sold in Online (3.21) cannot be agree nor disagree that it
deliver to customers without damages or defects. Instead, the respondents
strongly agree in the direct selling that it delivered the products damage-free.
Still, respondents agree that both (3.94) mode of selling are agree to be deliver
the products without damages or defects. This is an implication that direct
selling met the expectations of the customers as to the products received. Thus,
customers are assured direct selling’s products are on its best quality.
As to the services offered by the businesses, the respondents did not
agree nor disagree on the Online Selling (3.01) and both (3.01) that it delivers
the products faster. This further presents that the respondents strongly agree
that Direct selling (3.32)delivers the products faster. In line with the accessibility
of the mode of selling, it is agreed that the direct selling (3.99) in terms of
delivery will not have delays and will be received on the agreed time. In online
(3.07) and both (3.22), the respondents did not agree nor disagree that the
transaction on these mode of selling do not have delays, hence product are not
expected to be received on the agreed time. This is an implication that
purchasing through direct selling is much more convenient because products
are received right after purchasing; unlike online selling that customers still
have to wait for the products to be delivered. This means that it is more
accessible to buy directly from the sellers or in the market to get or to purchase
your product faster compared to the Online Selling. Then, direct selling gives
customers assurance that their ordered products will arrive on time.
In direct selling (4.11) and both (3.57) mode of selling, the products are
agreed to be protected by the management before delivery. While, the
respondents are not agree nor disagree that Online Selling (3.35) protects its
product before delivery.
In terms of the variety of the products offered, Online Selling (3.97),
Direct Selling (4.04) and both (3.79) mode of selling are agreed to offer variety of
products. Further, the respondents are not agree nor disagree that Online(3.04)
and Direct Selling (3.06) are effective way of selling the products. But, the
respondents strongly agree that direct selling (4.21) is effective in advertising the
products to the customer. It is because Direct Selling(4.23) is the mode of selling
which is well- organized compare to the Online Selling (2.95). Still, Online (3.45),
and Direct Selling (3.98) are mode selling with an easy transaction in
purchasing goods for daily consumption. However, the respondents are disagree
as to both(2.07) mode of selling in terms of their easy transaction.
22
Mean perception in buying Online, Direct Selling and both
PERCEPTION
MODE OF SELLING
PRICE Online Direct Both
4.00 2.74 3.25
1. Products offered is expensive. (Agree) (Not Agree Nor (Not Agree Nor
Disagree) Disagree)
2.30 2.25
2. Product offered is cheaper.
(Disagree) 4.30 (Disagree)
(Strongly Agree)
PRODUCTS
SERVICES
3.01 3.11
(Not Agree Nor (Not Agree Nor
8. Products are faster to be delivered.
Disagree) 4.32 Disagree)
(Strongly Agree)
3.07 2.97
(Not Agree Nor 3.99 (Not Agree Nor
9. Product delivery do not have delays. (Agree)
Disagree) Disagree)
23
3.35 4.11 3.57
11. It protects the products before (Not Agree Nor (Agree) (Agree)
delivery. Disagree)
3.04 3.06
13. Mode of Selling which offers the (Not Agree Nor (Not Agree Nor
effective way of selling the products. Disagree) 4.21 Disagree)
(Strongly Agree)
PLACE
2.95 3.01
(Not Agree Nor 4.23 (Not Agree Nor
14. Mode of Selling which is organized. (Strongly Agree)
Disagree) Disagree)
PRICE
PRODUCTS
25
10. Satisfaction level on the 3.79 4.04 4.07
organization of the firm. (Satisfied) (Satisfied) (Satisfied)
PLACE
PERCEPTIONS PERCENTAGE
PRICE Online Direct Both
1. Product is expensive 4.00 2.74 3.25
2. Product is cheaper 2.30 4.30 2.25
PRODUCTS
3. Appears in good look 2.61 3.25 4.07
4. Will last long 3.50 4.35 3.89
5. Products are trendy 2.94 2.97 4.12
6. Received the product as what 3.45 4.35 3.56
expected
7. Received the product without
defects or damage 3.21 4.38 3.94
SERVICES
8. Purchase products faster 3.01 4.32 3.11
9. Delivers product without delay 3.07 3.99 2.97
Factors
(%) SATISFACTION (%) PERCEPTION (%)
Online Direct Selling Both Online Direct Selling Both
3.97 3.72 4.11 4.17 4.00 2.74 3.25
3.8 4.17 4.09 4.06 2.30 4.30 2.25
4.15 3.86 4.06 4.01 2.61 3.25 4.07
4.16 3.72 4.18 4.16 3.50 4.35 3.89
3.88 3.76 4.32 4.3 2.94 2.97 4.12
3.97 3.93 3.89 4.16 3.45 4.35 3.56
4.1 3.31 4.08 4.07 3.21 4.38 3.94
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4.23 3.52 4.3 4.02 3.01 4.32 3.11
3.73 3.03 4.23 3.99 3.07 3.99 2.97
3.73 3.79 4.04 4.07 3.05 4.08 3.22
3.73 3.59 4.07 3.89 3.35 4.11 3.57
3.87 3.62 4.16 3.63 3.97 4.04 3.79
3.59 3.04 4.21 3.06
3.93 2.95 4.23 3.01
3.82 3.45 3.98 2.07
Table 5 shows the relationship ship between the factors (price, services, place,
influence, and product) that consumers buy regardless mode of selling and satisfaction of
the respondents. The study had a unique position in the sense that there three (3)
dependent variables (buying online, direct selling, or both) with only one independent
variable (factors). It is evident in table 5 that the factors did not make a significant
difference on the respondents’ satisfaction on buying online and direct selling as evident
by =0.831 and 0.756 respectively which exceeded the critical value of .05. The null
hypothesis was accepted, therefore, the factors did not make a significant difference in
the way the respondents buy online and buy on direct selling. Only in which both online
27
and direct selling combined together that the factors made a significant effect on
satisfaction in both buying online and direct selling.
Table 6 shows the relationship ship between the factors (price, services, place,
influence, and product) that consumers buy regardless mode of selling and satisfaction of
the respondents. The study had a unique position in the sense that there three (3)
dependent variables (buying online, direct selling, or both) with only one independent
variable (factors). It is evident in table 5 that the factors did not make a significant
difference on the respondents’ buying online and direct selling as evident by =0.831
and 0.756 respectively which exceeded the critical value of .05. The null hypothesis was
accepted, therefore, the factors did not make a significant difference in the way the
respondents buy online and buy on direct selling. Only in which both online and direct
selling combined together that the factors made a significant effect on both buying online
and direct selling.
28
CHAPTER 5
FINDINGS, CONCLUSION AND RECOMMENDATIONS
This chapter summarizes the important points of the study, the statistical result
and qualitative analysis of the data, and some suggestions based on the
outcome of the study.
Findings
Based from the results of the study, the researchers found out that the
factor “Usefulness” of the goods affects most of the customers’ purchase
decision. In the study conducted in America by Eric Wagatha (2016), it shows
that American gives important their health more greatly than having a secure
retirement or a happy marriage. One third of the revenue in the direct selling
was collected in health and wellness industry. This study proved that customers
gave values on the usefulness of the thing in buying services. Furthermore,
according to a Business Studies and Research about Consideration for Wise
Buying. “Before buying any product, it is necessary to consider whether buying
the product is necessary or not. If the product is meant for your own use you
can consider its necessity easily, otherwise the opinion of all those who will be
using the products may be helpful. For example, family members’ opinion must
be sought before buying a washing machine.”
Family and friends influenced most of the time the consumers and less by
the TV personalities. According to the article entitled “3 things businesses can
learn from the direct selling industry” written by Eric Wagatha (2016) of United
State of America, “Customers have a direct interaction with the end users.”
Customers are being influenced by their family and friends with their selling
experiences tailored down to the party or individual audience member by
someone they trust. While, 80% of Americans claimed that they don’t pay
attention to the displayed advertisement. In addition, “Marketing Principle book”
discussed that most of the market researchers consider a person’s family to be
one of the most important influences on their buying behavior. Like it or not,
you are more like your parents than you think, at least in terms of your
consumption patterns. Many of the things you buy and don’t buy are a result of
what your parents bought when you were growing up. Products such as the
brand of soap and toothpaste your parents bought and used, and even the
“brand” of politics they leaned toward (Democratic or Republican) are examples
of the products you may favor as an adult.”
Online Selling offers expensive product compared to direct selling. On the other
hand, Direct Selling offers the cheaper products. This finding is supported by
the study of Mr. Wille S. Lim It Quon, the President of a direct selling firm
Dragonworld Enterprises Inc. (D.E.I). Lim explained that direct selling offers
lower prices because the owners have able to save from renting a space for their
products and other cost putting up a business. The expenses that are may
possibly incurred to them will be passed on to the customers.
Direct selling is the preferred mode of selling in which products are received
as what customers expected. As the results of a research conducted by
Cambridge International AS, specified on Page 104, Table 17.2, “Some
customers prefer face to face contact and personal selling and the ability to “see
and try before they buy.” This is an implication that customers see themselves
the products actually and personally, and/or try the products first to its quality,
so that once purchased or bought, the products will be received is “as is” to the
products tested.
Direct selling is an easy-transaction. According to the Seldia: The European
Association, one of the benefits of direct selling is: “Convenient and Service-
oriented, for example, home delivery.” It is the most effective way of selling their
products, since according to Quickbooks, direct selling has ways in increasing
their sales. For example, they give free samples to customers and they do the
29
“Cross/Promote your Goods and/or Services,” in which, Direct Sellers offer new
products and/or services to their existing clients.
As to the Services on the two modes of selling, according to Bert
Rosenbloom, “Direct Salespersons should be more knowledgeable, less pushy,
and less intrusive; they should provide better follow-up service, schedule
appointments in advance, and offer quality products, variety of products,
warranties and a greater degree of price flexibility.” This proves that direct
selling offers variety of products; direct sellers provide great service for
consumers.
The researchers found out that Direct selling’s firms are viewed by the
customers as organized. Girish Bapat,the Minister of food, civil supplies and
consumer protection of India says, "The new guidelines provide a significant step
towards protection of consumer interests.” Direct sellers did everything to see
that the state implements what has been mandated by the model guidelines.
In general, Online Selling have satisfied their customers even though there
are some cases where they are not satisfied nor dissatisfied which is if they are
delivered on agreed time and when they are asked if the product they received
met their expectations. According to the article published on the UKessays
entitled “Customer Satisfaction Toward Online Shopping Provider” (2015),
Online shopping has been getting famous since the last few years after the
internet was being widely used. It began to influence a large number of
consumers as it gradually evolved to serve and satisfied millions of people from
over the world. It had become more convenient with use of online banking
system. Payments can be made in several forms such as cheques, debit card,
electronic money or various types, cash deposit using ATM machine, gift cards
and etc. Many countries have invested million of dollars into online shopping as
a means to purchase goods and services through the internet. It indicates that
with the improving use of the internet, it provided for fast purchase of online
services as evident of raping growing internet usage activity in the Europe, with
Sweden being ranked one of the high heels in Internet Usage and online Europe
coming in ninth with Japan and USA following in close competition. This study
is contrary on the finding of the study. The Filipino Customers viewed the online
Selling as means that contains delays and mismanaged in terms of ordering
products and delivering them. This may have affected by the low connection
signals of the telecommunication or by the shipping companies. On the other
hand, according to Direct Selling Europe, Direct Selling products or services are
marketed face-to-face by salespeople who, depending on the company, may be
called representatives, consultants, distributors, etc. These sales people in most
cases are working as independent sales agents or resellers but some direct
selling companies may also utilize employees.This is interesting for consumers
because of the convenience and service it provides, which includes personal
demonstration and explanation of products, home delivery, and satisfaction
guarantees. This article supported that Direct selling is advantageous in
providing goods and services to the customers.
Conclusion
Based on the findings of the study, the researchers advance the following
conclusion.
Considering that most of the respondents are already on their legal age,
the researchers concluded that the CU Students have already ability to perform
legal transactions over the use of the internet through Online Shopping or
Selling. Further, most of the products purchased by the customers are the basic
commodity. The usefulness of the product is the most important factor in
customer’s purchasing decision. On the other hand, the customers often
considered the price, whether it is discounted or on sale as long as the product
is useful for their daily consumption. They often considered the appearance,
quality, packaging, features, comfortability and its being trendy. The customers
30
do not always look on the reputation of company and accessibility its as long as
they can buy the product they want to buy. Their purchase decisions are often
influenced by their friends and family, and by the Television Personality on the
advertisement. They often considered if the received the product faster or they
will have a good communication with the seller.
Customers believed that product of Online Selling are more expensive
compare to direct selling because of the additional shipping fees. Further, the
customers expressed that it is faster to purchase in direct selling considering
that they transact directly to direct sellers through face to face. Which they can
check the product before acceptance whether it has defects or damages. The
customers favoured the direct selling as an effective way of selling products. It is
because advertising and promoting is done personally by the direct sellers
employed in the company. Since Direct Selling is the visible as to the structure
of the company, then they prefer this method as organized and easy place to
transact and do their negotiation. In line with this, the customers can say that
direct selling companies have really able to protect their products well. While it
was too far for them to meet the online sellers because most of their transaction
on Online Selling is done over the internet. They cannot determine whether the
business is organized or not. However, Online and Direct Selling products are
both trendy, appeared good and will last long since two does not differ on the
manufacturing process.
The customers are categorized into three types: (1) those who have tried
online selling, (2) those who have purchased on a direct selling and (3) those
who have ordered on both method. For those who have tried the Online Selling,
they appeared to be satisfied on most aspect except in terms of the expectation if
the product meets their expectation. Customers admitted that sometimes they
are satisfied on the product they received and sometimes they are not. It could
be that the photos presented on them as they order are different on its actual
condition. But despite of this, as a whole they are still satisfied on the product.
It still has good condition, appeared good and lasted long. They respondents are
also satisfied on time of delivery; however, they admitted that they have
experienced some issues of delays upon receiving the product. There could be
cases that before they have received their order, they find it difficulty on
claiming their order.
On the other hand, Customers who have purchased on a direct selling
are satisfied on most of the aspect. They claimed that the quality of the products
offered, the time of the delivery are strongly satisfied. This means that the
product that they received have lasted long. Also, as to it means of delivery,
direct selling has more convenient and successful policies implied. They have
really satisfied the customers and delivered the product on time without any
delays and malfunctions. The product also meets their expectations and received
it in good condition and appearance without defects or damages. Therefore, the
researchers concluded that Direct Selling as mode of selling is advantageous
compare to Online Selling, Specifically, on its satisfaction level of having without
delays upon receiving the product.
31
Recommendations
The following recommendations are presented to the following
individuals:
Online Sellers
This study shows that customers are satisfied on most of the aspects.
However, if they are asked if the product they received meet or exceed their
expectation they are neither satisfied nor satisfied. Also, there are cases that
they received the products with delays before receiving the products. In line
with this, the researchers recommend to the Online Sellers to post the actual
photos over the internet. For the customers really see the actual condition and
appearance of the product and to avoid discouragement in receiving the
products. They must also employ some policies on their business in terms of
their delivery to avoid delays before delivery.
Direct Sellers
Most of the customers who purchased products directly to sellers said
that they were strongly satisfied on the product’s quality, time of delivery and
said that they received their purchased products without damages. As a whole,
the researchers recommend the direct sellers to keep up their effective product
selling methods to continually satisfy their customers and to maintain their
customer’s loyalty.
Customers
Direct selling is advantageous than online selling. Customers are
strongly satisfied in time of product delivery and also to its quality of the
products. Therefore, the researchers recommend to purchase through direct
selling to purchase a product since, the customers who have tried to use direct
selling products are more satisfied in terms of their services.
32
APPENDIX A
Sincerely yours,
ERICKA AGUADO
Researcher
Noted by:
SURVEY-QUESTIONNAIRE
Dear Respondents,
Good day!
We are Research Methodology (ED12) students in the College of Business
Administration. We are currently writing a research paper entitled: “Comparative
Analysis on perception and satisfaction of CU Students in buying Online
Shopping and Direct Selling.”
-The researchers
Direction: Fill in the information or data required on the space provided. If
choices are given, put a check mark(/) on the box that best describe your
answer.
1. Name(Optional):
2. Gender
Male Female
3. Age:
33
4. College/Department:
Business Administration
Education
Computer Studies
Nursing
Engineering
Maritime Education
Art and Sciences
Criminology
Senior High School Students
5. Year Level
Please specify:
1. How did you purchase products, goods or services you
consumed?
I have purchase through the use of internet
I h a v e purchase direct from the sellers in the markets or malls
I have purchase either online or direct from the sellers in the
markets
Problem 1: What is the mean Satisfaction in Buying Regardless of Mode of
Selling?
CONSIDERATIONS 4 3 2 1
5
PRICE
1. Buy products at lower price
2. Buy products when on discounts or on
sale
PRODUCTS
3. Buy products when appeared good.
4. Buy product with high-quality.
5. Buy product because of packaging
6. Buy product because of its features.
7. Buy products because it is comfortable.
8. Buy product because of its usefulness.
9.Buy the products which are trendy in the
market.
PLACE
10. Buy product because of the
manufacturer’s reputation.
11. Buy product because it is accessible.
INFLUENCES
12. Buy product because of friends & family.
13. Buy product becaue of the TV Personality
Ad.
SERVICES
14. Buy product because it will be receive
faster
15. Buy product because of the good
communication with the sellers
What is the mean perception in buying Online, Direct Selling and Both?
34
PERCEPTION
RATE OF PERCEPTION
PRICE 2 1
5 4 3
PRODUCTS
5. Product is trendy.
35
13. Mode of Selling which offers
the effective way of selling the
products.
PLACE
What is the mean satisfaction in buying Online, Direct Selling and Both?
5 4 3 2 1
SATISFACTION
PRICE
PRODUCTS
SERVICES
8.Satisfaction level in time
Of product’s delivery
36
9. Satisfaction level on the
service as it deliver products
without
delays.
PLACE
APPENDIX C
SLOVIN’S FORMULA
37
38
APPENDIX D
RESULTS OF THE SURVEY
Respondents’ Demographics
GENDER frequency
FEMALE 207
MALE 165
AGE
15 4
16 39
17 43
18 86
19 101
20 43
21 34
22 8
23 7
24 2
25 4
26 1
YEAR LEVEL
1ST 9
2ND 75
3RD 184
4TH 33
5TH 0
GRADE 11 71
METHOD OF PURCHASING RESPONDENTS'
GOODS AND SERVICES CONSUMED
Internet 29
Direct Sellers in the markets and in malls 191
Either Online or Direct Sellers 152
BIBLIOGRAPHY
39
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selling-industry/
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Wise Buying. (n.d.). Retrieved October 6, 2016, from
40
http://old.nios.ac.in/Secbuscour/26.pdf
CURRICULUM VITAE
JEANLIE CAGALAWAN VALENZUELA
Sta. Cruz, Camaman-an, Cagayan de Oro City
Cell Number : 09357071481
e-mail address : vjeanlie@yahoo.com/vjeanlie@gmail.com
PERSONAL INFORMATION:
Nickname : Bojing, Jean
Age : 19 years old
Birthdate : March 13, 1997
Birthplace : Sta. Cruz, Camaman-an, CDOC
Nationality : Filipino
Religion : Roman Catholic
Civil Status : Single
Father’s Name : Alberto Japson Valenzuela
Mother’s Name : Emelita Cagalawan Valenzuela
EDUCATIONAL BACKGROUND:
Tertiary : CAPITOL UNIVERSITY
Bachelor of Business Administration
Major in Financial Management
Corrales St- Osmeńa Avenue,CDOC
2014 – present
Secondary : Cagayan de Oro National High School
1st- 2nd Street, Nazareth, CDOC
41
2010-2014
Elementary : City Central School
Velez St. , Cagayan de Oro City
2005-2010
Camaman-an Elementary School
Centro, Camaman-an, Cagayan de Oro
2004-2005
JELYN AMPER DAMASING
NHA, Olape Compound Kauswagan
Cagayan de Oro City
Cell Number: +639771476788
e-mail address: jelyndamasing@gmail.com
PERSONAL INFORMATION:
EDUCATIONAL BACKGROUND:
42
KATE CABRIZOS DANTE
Door#3, Paladio Building, Dolores-Pabayo
Cagayan de Oro City
Cell Number: +639156997174
e-mail address: katedante86yahoo.com
PERSONAL INFORMATION:
EDUCATIONAL BACKGROUND:
Tertiary: CAPITOL UNIVERSITY
Bachelor of Science in Business
Administration Major in
Financial Management
Corrales St-Osmena Avenue,CDO
2014 – present
43
PERSONAL INFORMATION
EDUCATIONAL BACKGROUND
Tertiary : CAPITOL UNIVERSITY
Bachelor of Science in Business
Administration
Major in Financial Management
Corrales St- Osmeňa Avenue, CDOC
2014 – present
Secondary : Bukidnon National Highschool
Fortich St. Malaybalay City
2009-2010
Elementary : Malaybalay City Central School
Brgy 4, Malaybalay City
PERSONAL INFORMATION:
Nickname : Vince, Aye
Age : 21 years old
Birthdate : July 19, 1995
Birthplace : Zone 8 Carmen, Cagayan de Oro
44
Nationality : Filipino
Religion : Roman Catholic
Civil Status : Single
Father’s Name : Alejandro R. Tanilon
Mother’s Name : Ma. Doris C. Tanilon
EDUCATIONAL BACKGROUND:
Tertiary : CAPITOL UNIVERSITY
Bachelor of Science in Business
Administration Major in Marketing
Management
Corrales St- Osmena Avenue, CDOC 2013 –
present
PERSONAL INFORMATION
__________________________________________________________________
Nickname : Popoy, AJ, Lagooom
Age : 19 years old.
Birthdate : May 19, 1997
Birthplace : Consolacion Manuel Vega, Sts. Cagayan de
Oro City
Nationality : Natural Born Filipino
Religion : Roman Catholic
Civil Status : Single
Father’s Name : Jonard Semina Cajudo
45
Mother’s Name : Maricel Fuentes Cajudo
EDUCATIONAL BACKGROUND
PERSONAL INFORMATION
EDUCATIONAL BACKGROUND
Tertiary : CAPITOL UNIVERSITY
Bachelor of Business Administration
Major in Human Resource Development
Management
Corrales St- Osmena Avenue,CDOC
46
2014-2015
Secondary : MOGHS
Don Apolinar Velez St, Cagayan de Oro
2013-2014
PERSONAL INFORMATION
Nickname : Ena
Age : 20 years old.
Birthdate : September 23, 1996
Birthplace : Cagayan de Oro City
Nationality : Filipino
Religion : Roman Catholic
Civil Status : Single
Father’s Name : Ronald Barillo Tumanod
Mother’s Name : Evelyn Esclamado Tumanod
EDUCATIONAL BACKGROUND
Tertiary : CAPITOL UNIVERSITY
Bachelor of Science in Business Administration
Major in Financial Management
Corrales St- Osmena Avenue, CDOC
2015 – Present
47
2008-2012
Elementary : Kauswagan Central School
Kauswagan, Cagayan de Oro City
2007-2008
JANINE GANAHON
Ramonal Village, Camaman-an, Cagayan de Oro City
Cell Number : 09756434936
e-mail address : ganahonjanine@gmail.com
PERSONAL INFORMATION:
Nickname : Ja Ja
Age : 20 years old
Birthdate : March 31, 1996
Birthplace : Northen mindanao medical center
Nationality : Filipino
Religion : Iglesia ni Cristo
Civil Status : Single
Father’s Name : Enerio Ganahon
Mother’s Name : Gemma Ganahon
EDUCATIONAL BACKGROUND:
Tertiary : CAPITOL UNIVERSITY
Bachelor of Science in Business
Administration
Major in Marketing Management
Corrales St- Osmeńa Avenue,
Cagayan de Oro
2014 – present
Secondary : MOGCHS
Velez st. Cagayan de Oro City
2010-2014
48