RESEARCH

ASSIGNMENT
(GROUP 6)
MEMBERS:
Charlynn Anne Icban
Bianca Ansay
Realyn Trinidad
Raynan Morallos
Lukee Victoriano
Enzo Santiago
Jerome Asman

5 STUDIES (FOREIGN AND LOCAL)

 LOCAL
The truth about online consumers
23 February 2017
SOURCE: https://home.kpmg.com/ph/en/home/media/press-releases/2017/02/the-truth-about-online-
consumers.html
What do online shoppers really want? KPMG International survey details what
really matters to consumers
Understanding and keeping pace with what drives people to shop and buy online is critical to succeeding
in the digital world. In response to demand for greater insights regarding the online customer, a new report
by KPMG International analyzes the online shopping preferences and behaviors of
more than 18,000 consumers in 51 countries, by geography, generation and product category.
“Today’s consumer no longer goes shopping, but is shopping, all the time and everywhere. And in a truly
global online marketplace, competition is no longer limited to local shops during regular business hours.
Consumers can easily buy from retailers and manufacturers located anywhere in the world—or from those
with no physical retail locations at all,” comments Willy Kruh, Global Chair, Consumer Markets, KPMG
International.
“Increased competition, combined with consumer demand for richer experiences, means that retailers
need to rethink their online strategy.
For many retailers, creating an online shopping experience enhanced by technology such as augmented
and virtual reality or 3D is becoming at least as important as providing convenient and personalized
ordering, payment and delivery options.”
Online or offline?
When comparing the impact of online versus offline touch-points that create the first trigger moment, of
note is that 52 percent of consumers cited at least one offline channel as a source of initial awareness,
and 59 percent cited one or more online channels.
Retail websites or online shops were the most common source of initial awareness, cited by nearly a third
of consumers, and online advertisements were cited by 15 percent. At the same time, physical shops
were the second most popular source of awareness, cited by 22 percent of consumers.
Millennials were not only more likely than the older generations to be influenced by online sources such as
social media or peer reviews—they were also more likely to be influenced by offline channels. Millennials
were 25 percent more likely than Baby Boomers to have seen their most recent online purchase in a shop,
nearly 50 percent more likely to have talked to a friend about it, and more than twice as likely to have seen
someone with it.
Kruh comments: “Ecommerce is not an online-only affair. Both online and offline channels are effective in
creating consumer awareness and demand, especially when used together. Furthermore, despite the rise
of online
shopping, ecommerce still makes up a relatively small percentage of total retail spending. Retailers’ brick
and mortar strategies need to continue to
evolve to attract customers into their stores, and to compete with online
retailers opening their own physical outlets. Increasingly, we are seeing innovative marketing strategies,
as well as new technologies such as smart shelves, robots, self-checkout, and interactive and virtual
reality, being deployed in stores, as retailers strive to compete on all fronts.” 

Study: Pinoys do multiple online searches before purchase

Posted on August 9, 2017
SOURCE: http://newsbytes.ph/2017/08/09/study-pinoys-do-multiple-online-searches-before-purchase/

Filipino shoppers research online for everything from baby care products to groceries, and also when
making big decisions like applying for credit cards or loans.

The study said about 49% of the pre-purchase searches for baby care are about prices while 48% are
about user reviews. Among grocery shoppers, 46% seek user reviews while 45% compare prices.

Consumers applying for credit cards or loans do seven searches on average. Based on the findings,
49% of the searches are for the provider’s website, 48% are about promotions and rewards, and 48%
are on the card’s availability and features.

Though consumers tend to pick the brand they intended to use, brands still have the opportunity to be
discovered in online searches.
Four in 10 brand discoveries by baby care product buyers come from online sources
and over a quarter of discoveries by grocery shoppers result from online research.
Those applying for credit cards or personal loans make half of their discoveries from
online sources.
Aside from guiding consumer choices, search also helps consumers act. Thirty-four percent of grocery buyers
looked in-store for a brand after a search, while 35% of baby care product buyers compared choices and
looked in stores for a brand.

Thirty-eight percent of consumers applying for credit cards or loans compared choices and researched on
providers after a search.

The report added that consumers perceive brands more positively after viewing online videos, particularly
brand content. Among the different sources of online video, YouTube is the most widely used.

Consumers, however, also watch videos posted on social media. The study also revealed that consumers
used a search engine to look up the brand or product after watching their videos.

Desktop remains the most used device for online research but consumers use smartphones to do research anytime,
wherever they are.

More than 50% of grocery shoppers and baby care product buyers did smartphone searches while watching
television. Sixty-one percent of consumers applying for credit cards or loans used smartphones while waiting.

Google Philippines marketing head Gabby Roxas said, “This study proves that Filipinos are now more aware of the
power of search as they actively look up resources online to help them make purchasing decisions. We hope that
brands will use the insights in the study to create more meaningful connections with their consumers in their online
purchase journey.”

9 of 10 Pinoys prefer online shopping

Ted P. Torres (The Philippine Star) - March 10, 2015 - 12:00am
SOURCE: https://www.philstar.com/business/banking/2015/03/10/1431749/9-10-pinoys-prefer-
online-shopping#dyRDAsEuODIBS82T.99

MANILA, Philippines - 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.

Visa country manager for the Philippines and Guam Stuart Tomlinson said that as local and
international e-commerce websites become more popular among Filipino consumers, a steady
increase will continue to be experienced in online shopping and e-commerce growth in the country.
Tomlinson said that the study reveals that the top three categories for online transactions are bill
payments (39 percent), fashion-related items (39 percent), and movie tickets (34 percent).Even
traditional Filipino shopping habits carry over in the digital world – the convenience of online
shopping allows 63 percent of Filipinos to compare prices of items without needing to visit
physical stores.Filipino consumers also favor e-commerce sites, which store their payment details,
citing faster checkouts for their orders (58 percent).While Filipinos still predominantly use cash for
everyday transactions, Visa’s eCommerce study reveals that 65 percent of respondents prefer to use
payment cards when shopping online, while 35 percent still prefer cash on delivery and another 34
percent select bank transfers, highlighting the strong confidence towards using payment cards.

It further reveals that consumers are shifting to mobile phones when shopping online, with 51
percent of respondents browsing for items through their smartphones and 29 percent proceeding to
make their purchase through their phones.

Tablet users tend to look for books, event/concert tickets and digital content, but only 17 percent
have actually made a purchase and 31 percent browsed.

However, desktop purchases still dominate the Filipino consumers’ preferred platform, with 82
percent of consumers browsing and 90 percent making purchases using their desktops and
laptops.An earlier study on consumer behavior highlights the preference of Filipino online shoppers
towards local online retailers (80 percent) for faster deliveries (62 percent) and less risk of lost
orders (55 percent).Forty three percent of respondents are concerned with delivery times while 45
percent consider payment security when shopping for their items in overseas websites.Tomlinson
said that Filipino consumers value products and services that make their lives more convenient.
Thus it comes as no surprise that they see the accessibility that online shopping provides.The
insights that we gain from this study allow us to develop relevant platforms, products, services, and
other value-added features that promote faster, secure, and more convenient deals and transactions
that help promote retail and e-commerce growth in the country,” he added.

 FOREIGN
Effects of Online Shopping Values and Website Cues on Purchase Behaviour:
A Study Using S–O–R Framework
Sanjeev Prashar, T. Sai Vijay, Chandan Parsad,
First Published March 8, 2017

SOURCE: http://journals.sagepub.com/doi/full/10.1177/0256090916686681

The e-commerce industry in India has seen unprecedented growth in last few years. Eyeing India’s
substantial e-retail opportunity across multiple segments, investors have been aggressively
funding the e-commerce sector. This growth has been fuelled by rapid adoption of technology,
improving standards of living, an increasing young population, and economically advancing middle
class, besides increasing access to the Internet through broadband and use of smartphones and
tablets. The entry of global e-commerce giants has intensified the competition for home-grown
players. E-retailers use web atmospherics to differentiate themselves from their competitors and
evoke positive cognitive and emotional states of online consumers. However, though this Indian
 online market is growing at an exponential rate, it is still unexplored in terms of its shopping
behaviour. Using structural equation modelling, this study applies the concept of the stimulus–
organism–response to explain Indian buyers’ online shopping behaviour, besides examining the
importance of design elements in enabling website satisfaction (WS). Using a survey method to
test the research model, primary data were collected from five Indian metropolitan cities of Delhi,
Mumbai, Kolkata, Bengaluru, and Hyderabad during the months of May and June 2015.
Confirmatory factory analysis (CFA) was used to estimate the measurement model with respect to
convergent and discriminant validities. This was followed by testing the structural model framework
and research hypotheses. Findings suggest that both internal and external elements have direct
influence on WS. As the mediating variable, WS affects purchase intention. This research
highlights on why and how ‘satisfaction with website’ matters in the contribution of shopping values
and website atmospherics to behavioural outcomes by presenting its mediating role.

Study: Biggest barriers for consumers

in global online shopping are…
BY DAN BERTHIAUME
SOURCE: https://www.chainstoreage.com/news/study-biggest-barriers-consumers-global-online-
shopping-are/
That is according to the 2015 Pitney Bowes Online Shopping study. High shipping costs
(64%) were ranked as the biggest barrier in the survey, followed by additional fees owed at
time of delivery (48%) and product delivery taking too long (39%).

Product returns are also a major concern, as 33% of global shoppers cited online return
policies and processes as deterrents.

Another barrier is localization, with 30% of global online shoppers saying they would be
discouraged from completing a purchase with merchants who do not offer their preferred
form of payment. Additional barriers include not being able to read a product description
because it is in a foreign language (29%), merchants not accepting credit cards (27%) and
when pricing is not in a country’s local currency (25%).

The study also found that search engines still lead in finding products, and that online
marketplaces and retailers’ sites are the top choices for buying online. Sixty-two percent of
online shoppers are using search engines as the preferred method to find products. When
international consumers were asked what types of online sites they would consider
purchasing from, 66% chose online marketplaces, while 62% selected retailers’ websites.
In other findings:

• Nearly a quarter of consumers said they make the most online purchases on mobile
devices – including mobile/smart phones, tablets or other devices – or a mix of devices.

• Online shoppers in the U.K. (37%), India (36%) and China (34%), and the U.S. (29%) had
the highest rates for using a mobile device, or mix of devices. Thirty-three percent of
millennials (ages 18 to 34) are using mobile devices, or a mix of devices, compared to 24%
of overall consumers in the study.

• The U.S. (71%), U.K. (44%) and Germany (39%) continue to be the most desirable e-
destinations for consumers to purchase goods online outside their own country.

• A third of global online shoppers have purchased products online from retailers in other
countries. Australians continue to be the most likely to buy products online from retailers
outside their own country (63% in 2015 and 2014 studies) followed by Canada (48% in
2015 versus 54% in 2014) and Russia (49% in 2015 versus 54%).

• Price is the top reason (61%) shoppers have purchased or would consider purchasing a
product from an online retailer outside of their own country, followed by availability (40%),
quality and better selection (both 30%). Product authenticity was highest in India, (36%),
China and South Korea (both 30%) and Russia (22%).

THEORETICAL FRAMEWORK
 PROPONENT
 The growth of the internet as a secure shopping channel has developed since 1994, with the first sales of
Sting album 'Ten Summoner's Tales'.[2] Wine, chocolates and flowers soon followed and were among the
pioneering retail categories which fueled the growth of online shopping. Researchers found that having
products that are appropriate for e-commerce was a key indicator of Internet success.[3] Many of these
products did well as they are generic products which shoppers didn't need to touch and feel in order to buy.
But also importantly in the early days there were few shoppers online and they were from a narrow segment:
affluent, male, 30+. Online shopping has come along way since these early days and -in the UK- accounts
for significant percents (depending on product category as percentages can vary).

 1979 – It all began when Michael Aldrich ‘invented’ online shopping.  Using videotex, a two way message
service, it revolutionised businesses. We now know this as e-commerce.
 1981 – Saw the first business to business transaction by UK based Thomson holidays.
 1982 – Mintel, a videotex online service accessible by telephone lines, could be used to make online
purchases, train reservations, check stock prices, chat and search a telephone directory. It is considered
the most successful pre WWW online service.
 1984 – The first ever shopper buys online at a Tesco store.
 1985 – Nissan carries out the first online credit check.
 1987 – SWREG was founded. This offered businesses a chance to sell products online.  As it is today,
SWREG offers many payment options, as well as customization and distribution into international markets.
Users can purchase items with their currency of preference using all major debit and credit cards.
 1989 – In the USA the first online grocery store starts trading.  Peapod.com
 1990 – Tim Berners-Lee created the first WWW server and browser.  This started a whole new revolution.
Nearly 25 years on, he is today still working hard at guiding the development and spread of the web, using
the mantra ‘If it isn’t on the web then it isn’t happening’.
 1991 – The internet is commercialised and we saw the birth of e-commerce.
 1994 – Netscape launches the first commercial browser, which was once the dominant browser in terms of
‘visitors.’  It lost out in the first browser war.
 1995 – Amazon started selling books online; currently it sells almost anything. Companies like Dell and
Cisco started using the internet for all their transactions. eBay is founded by Pierre Omidyar, though it was
originally called Auctionweb.
 1997 – Began the era of comparison sites.
 1998 – Paypal is founded. This enabled transactions of money without sharing financial information and gave
customers the flexibility to pay using their PayPal account balances, bank accounts, PayPal Credit and other
credit cards.  Today, people can now pay across their favorite apps in a single touch (one touch) on any platform,
eliminating the need for usernames and passwords each time you pay.
 1999 – the first online-only shop began, ‘Zappos’ although it was later bought by Amazon for $1.2 bn.
 2001 – Amazon launches mobile services.
 2003 – US online shopping hits $50 billion, in the same year Amazon posted their first yearly profit of $35.3m.
 2005 – Social commerce emerges.  Consumers begin to recommend items to friends via Facebook and Twitter
 2007 – A Pew Internet research study found that 81% of the Americans they surveyed had searched online for a
product they intended to buy, with 15% doing so almost every single day. 66% of online users said they had
actually bought something online.
 2008 – Increase in growth of online shopping by 17% from the last year in the US, with ecommerce sales figures
around $204 billion.  In the same year Groupon is launched as is Magneto – so anyone could have a go at
creating their own online store.
 2013 – UK shoppers spent a whopping £91bn online.
 2014 – In 2014, 198 million U.S. consumers bought something online in the first quarter alone,(comScore) which
is 78% of the U.S. population age 15 and above.
 2015 – Today’s shoppers combine online shopping with real life shopping, using access to WiFi and the
showrooming trend. They often make purchases in a retail stores at the same time as using mobile devices to buy
something online.  In fact, this Forbes report tells us that 74 per cent of people use their mobile phone to help
them while shopping, with 79 per cent making a purchase as a result.