DETERMINANTS OF ONLINE SHOPPING TOWARDS CUSTOMER

SATISFACTION

A Research Study

Presented to the

Faculty and Staff of the Department of Business Administration

Saint Vincent’s College Incorporated

Padre Ramon Street, Estaka, Dipolog City

In Partial Fulfillment

of the Requirements for The Degree of Business Administration

in Business Research
APPROVAL SHEET
 CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

The world has seen many advancements, both in business and in people. This

innovation has resulted in the creation of a business known as online shopping, in

which we may buy things or services at our leisure without spending time and have

them delivered to our door. This method of shopping has revolutionized the

traditional method of purchasing, such as visiting neighboring stores and questioning

about the things that they wish to acquire. The expanding use of internet in people's

hands has expanded the use of online shopping in the current world.

As the world has been suffering from the COVID-19 pandemic, it has brought

drastic changes globally in many sectors, business being one of them. In contrary,Tte

digital economy boomed during the COVID-19 crisis. As people embraced social

distancing, they turned to online shopping more than ever before. 67% of consumers

report they shop differently now due to COVID-19. Retailers stepped up to the

challenge, not just by supporting more online sales, but by embracing emerging

technologies that created connections with shoppers or made their customer

experience more convenient (Fryer, 2022).

Moreover, online shopping gives consumers more information and

opportunity to compare items and prices, as well as a larger product range,

convenience, and ease of finding desired things online. Online shopping, it has been

said, provides more gratification to current consumers who desire ease and quickness

When a consumer sees a banner ad or an online promotion in online communication,

it might catch their attention and stimulate their interest in the things advertised.
Before making a purchasing decision, the client may seek further information for

assistance. If there is insufficient information, they will seek it through online

channels, such as online catalogs, websites, or search engines.

This research study is intended to determine the factors affecting customer

satisfaction in online shopping among students of St. Vincent’s College Incorporated -

Main Campus during COVID-19 pandemic. With the growing craze in online

shopping, the study aims to bridge the gap by determining the relationship between

the factors, buying decisions, and customer satisfaction.

Theoretical Framework

Internet shopping is a growing trend in today's world. A look at the

exponential expansion of the industry's top players shows that there is still a vast

reservoir of market potential for e-commerce. The convenience of internet buying has

made it a rising trend among consumers, particularly among Generation Y, and the

prominence of online shopping has attracted the interest of businesses to focus on this

sector.

This study is anchored on the Online Shopping Determinants on Customer

Satisfaction by Kilibarda (2019) which states that Consumer satisfaction is the result

of comparing the expectations and the experience; in other words, the consumer is

pleased when the delivery meets or exceeds their expectations. Satisfaction and

loyalty are the key elements determining the success of the market concept

implementation. Satisfied customers are the ones that will repeat the purchase if the

service provider reached or exceeded their expectations. It is significant to identify the

variables of consumer satisfaction, since they present the business benchmark and

serve as a guide to future improvements. There are six determinants identified as

important for customer satisfaction; those are the following: security, information

availability, delivery, quality, pricing and time.

Such a framework will assist online sellers in improving present understanding

and awareness of the determinants of online purchasing towards their buyer, which

will, in turn, lead to customer satisfaction.

Conceptual Framework

ONLINE SHOPPING
DETERMINANTS
● Security
● Information Availability
Customer Satisfaction
● Quality
● Pricing
● Delivery
● Time

Independent Variable Dependent Variable

Demographic Profile

Intervening Variable

Figure 1. Schema of the Study

The schema of the study is shown in figure 1. The schema is an independent-

dependent variable model which presents the online shopping determinants such as

security, information availability, quality, pricing, delivery and time which can lead to

customer satisfaction based on Online Shopping Determinants on Customer

Satisfaction by Kilibarda (2019).

Statement of the Problem

Generally, this study aims to determine the determinants of online

shopping in achieving customer satisfaction of the students in St. Vincent’s

College Incorporated- Main Campus this S.Y. 2021- 2022 to answer the

specific research questions as follows; 

1. What is the demographic profile of respondents in terms of:

    a. Sex
    b. Age

2. What are the level of online shopping determinants of the buyer in terms of:

    a. Security
b. Information Availability
c. Quality
d. Pricing
e. Delivery
f. Time

4. Is there significant relationship between online shopping determinants and

demographic profile of the respondents in terms of:

a. Sex
b. Age
5. Is there significant relationship between customer satisfaction and

demographic profile of the respondents in terms of:

 a. Sex
b. Age
6. Is there significant relationship between online shopping determinants and

customer satisfaction?

Hypotheses:
H : There is no significant difference between the age and the online shopping
01

determinants.

H : There is no significant difference between the sex and the online shopping
02

determinants.

H : There is no significant difference between the family monthly income and

03

student's challenges.

H :There is no significant difference between the age and customer

04

satisfaction.

H :There is no significant difference between the sex and customer

05

satisfaction.

H : There is no significant relationship between online shopping determinants

06

and customer satisfaction.

Research Objectives

This research is proposed to:

 Identify on what are the online shopping determinants of the students in St.

Vincent’s College Incorporated - Main Campus;

 Assess the determinants in terms of how it relates to customer satisfaction

Significance of the Study
This study will provide insights to help gain a deeper understanding to the

determinants of online shopping that leads to customer satisfaction . The following

entities will benefit from this study: 

Seller. This study will be beneficial to online sellers who seek to achieve customer

satisfaction.

Buyer. This study will benefit buyers by educating them on the determinants that

influence other buyers' satisfaction when shopping online.

Future Entrepreneurs. This study inspires entrepreneurs to improvise and

serve as guide towards their business in overcoming distinct types customers and it

will provide them opportunity to learn and gain knowledge which enriches them as a

person as well as for the betterment of the business.

Future Researchers. The ideas of this study may be used as reference in conducting

new researches or to test the validity of other related findings. This study will also

serve as their cross- reference that will give them a background or an overview about

the determinants of customer satisfaction in online shopping.

s in this midst of pandemic in order to achieve resiliency. Moreover, it can help them

to improve their business and develop strategies to deal with more difficult

challenges.

Scope and Delimitations of the Study

This study is primarily focusing on the determinants of customer satisfaction

in online shopping of the students from St. Vincent’s College Incorporated - Main
Campus. The researchers will determine the determinants in online shopping involved

in achieving customer satisfaction.

Definition of Terms

The researchers defined the terms according to how they are used in the study

in order to make easy understanding of the problem and avoid unclear meaning.

Customer Satisfaction. In this study, it is defined as a measurement that determines

how happy customers are with a seller's products, services, and capabilities.

Determinants. This study refers as the factors of the online shopping which affects

towards customer satisfaction.

Online Seller. In this study, it is defined as the person who puts all information of all

the good and services and sells it online.

Online Shopping. In this study, it refers to the buying and selling of goods or

services using the internet, and the transfer of money and data to execute the

transactions.
 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter includes a review of relevant literature and studies that are

beneficial in developing the overall concept of the study at hand and that substantially

assist the researchers throughout the study. Moreover, the main purpose of this

chapter is to confirm and clarify where this research fits in the field of online business

that leads to customer satisfaction by finding out what has already been researched in

relation to the overarching research question and the supporting sub questions.

The growth of COVID-19 cases and its consequences impacted not only the

attitude of people toward health but also their buying behavior. Online shopping is

expanding in the Philippines as a result of the internet's rapid advancement, mobile

applications, and numerous web innovations.

Due to the general growing and diversified Internet population, people with a

wide range of interests and goals are increasingly turning to the Web for information

and to purchase goods and services. As a result, understanding the influence of

different online shopping environments on consumer response is crucial for marketing

planning.

In addition, “A Study on Customer Perception Towards Online Shopping”

Taruna (2018) said that the online promotion tools are very effective in reaching out

to the target audience, in the era of internet technology, wi-fi services and smart-

phone gadgets as they are perceived to be effective, informative and credible. To

engage the audience in an impulsive behavior online promotions have the potential.

Through the usage of visuals and information the beauty of technology can be seen so
the companies should use this feature of internet through the usage of colored pictures

and images of the entire product. In description of the entire product and service,

online promotions can serve an excellent purpose. Since all types of products and

services have the potential to be promoted and to be sold over the internet, companies

must ensure that they promote their products on the internet effectively.

Moreover, online shopping has become one of the most popular shopping

methods in the recent years. The number of online shopping consumers and online

shopping revenue has continuously increased over the years. Processed through the

internet, the online shopping has more advantages than traditional shopping ways

available anywhere and anytime, saving time, having a wide range of products and

saving cost by buying products at lower prices (Pham, 2020). People in lockdown

were ordering online more often than normal. They also reduced their discretionary

costs, became more selective, and shifted to local brands (Gu, 2021).

In an article entitled, “A study on factors limiting online shopping behaviour

of consumers” by Daroch (2021) states that, the number of consumers buying online

and the amount of time people spend online has risen. It has become more popular

among customers to buy online, as it is handier and time-saving. Convenience, fun

and quickness are the prominent factors that have increased the consumer’s interest in

online shopping. Moreover, busy lifestyles and long working hours also make online

shopping a convenient and time-saving solution over traditional shopping. Consumers

have the comfort of shopping from home, reduced traveling time and cost and easy

payment (Akroush and Al-Debei, 2015).

In addition, Kim and Park (1991) stated that the consumers spend more time

online for information search and they also found that the Internet is easily accessible
Price which is a part of the marketing mix is a factor used to stimulate the consumer

and is also communicator, to negotiate and a competitive weapon. The consumer can

use price as a means to compare products, judge relative value for the money, and the

judge quality of products. It is estimated that this factor has a considerable influence

on the consumers during their online shopping.

It has been observed that digital technology has a significant impact on both

customer acquisition and satisfaction. Online shopping is the most important aspect of

customer attraction as well as customer satisfaction. In today's technology

environment, most businesses use internet purchasing to both satisfy their clients and

attract new ones. Online shopping imparts a major impact on customer satisfaction.

Online shopping is the key aspect of electronic commerce and many clients are

guided by this electronic commerce about the technique of buying things from the

companies (Souca, 2014).

On the same context, customer satisfaction is fundamentally referring to an

emotional reaction to the disparity between what customers get and what they

genuinely want according to the statement of Hasemark and Albinsson (2004). They

also define contentment as an entire attitude toward a product supplier.

As found on a study entitled “The impact of online shopping attributes on

customer satisfaction and loyalty: Moderating effects of e-commerce experience”

(Mofokeng, 2021) states that in e-commerce, satisfaction is defined as an affective

state that represents the consumer’s emotional reaction to the entire transaction

experience with an online retailer. This shows that, when a customer feels satisfied,

the affective components may become more relevant than the cognitive aspects. In

comparison with cognitive experience, affective experience significantly influences

the satisfaction of customers and positive word-of-mouth in a successful shopping

context. Thus satisfaction is defined as a consumer’s affective attitude towards a

relationship.

Consecutively, for customers of a software product, customer satisfaction

should not be neglected as it can drive the customer loyalty and provide high

profitability and returns on investment (Chaudha,Jain,Singh,&Mishra,2011). Hence,

companies need to measure their customer satisfaction. Gaining awareness of

customer expectations on a product or service based on their view of the quality

attribute is essential (Issac,Rajendran,&Anantharaman,2006).

A variety of factors influence consumer satisfaction with online shopping.

There is a constant dilemma in the market regarding whether online shopping

determinants affect customer pleasure. This is especially essential in developing

markets where online shopping is not widely available. In order to promote online

commerce participation, it is necessary to investigate and analyze the relationship

between customer satisfaction and various determinants (Kaurin, 2019).

These criteria, e-service quality and information quality, have a significant

effect on customer satisfaction when shopping online. Similarly, it has been

discovered that consumer happiness influences e-loyalty in an online shopping

environment. Furthermore, the growing number of online businesses in the market

demonstrates how critical it is for business retailers to grasp the business

environment, target customers, and strive higher and above competition in order to

sustain their businesses in the long term.

Therefore, customer experience has grown in importance in the e-commerce

era, so it is important to understand the factors that influence the reach of online
customer experience. Despite the fact that there are numerous criteria that influence

customer experience, studies have revealed that source economic value,

customization, customer service, and post-purchase experience are the most notable

determinants of online customer experience influence. According to an article titled

"Influence of Online Customer Experience Determinants on Online Client

Satisfaction" (Singh, 2020), which provides an insight into numerous variables of

positive customer experience that influence customer purchase on the digital platform.

It also aids in identifying the variables that lead to higher levels of customer

satisfaction on the digital platform.

 CHAPTER III

RESEARCH METHODOLOGY

This chapter presented and discussed the research design, research respondents

and sampling procedure, the research instrument used by the researchers, data

gathering procedures, as well as the statistical treatment.

Research Design

The research design used in the study was the quantitative method specifically

the descriptive-survey. This type was suitable for the study since the researchers

wanted to know the determinants of customer satisfaction in online shopping. The

researchers used a formal standardized questionnaire that gave them the answers to

the research questions as well as to achieve the purpose of the study. The draft of the

questionnaire was drawn out based on the researcher’s readings from previous

literature either published or unpublished and related studies relevant in the progress

of the said study. In this way, the instrument was authorized to obtain valid responses

of students. In the end, it encourages open responses to sensitive issues at hand.

Research Respondents/ Sampling

The researchers were randomly selected respondents from different college

program at St. Vincent’s College Incorporated - Main Campus. This study utilized a

stratified random sampling in attaining the determinants of online shopping towards

customer satisfaction.

Stratified random sampling ensures each subgroup within the population

receives proper representation within the sample. As a result, this type of sampling
provides better coverage of the population since the researchers have control over the

subgroups to ensure all of them are represented in the sampling (Murphy, 2021). 

In identifying the research respondents, the researchers issued a letter of

request and asked the signed letter of request approved by the campus registrar Ms.

Rica R. Batocael, where the researchers obtained the student’s population. The

researchers had identified that the population of the different college program at St.

Vincent’s College Incorporated is 1,679. From the given population, the researchers

used the Slovin’s formula to get the sample size of the population needed in the

conduct of the study.

The researchers provided a set of questionnaires to the selected respondents.

The answers of the respondents were analyzed and interpreted in order to know the

Determinants of Customer Satisfaction in Online Shopping.

Slovin’s Formula:

N
n= 2
1+ N e

Where:

n = sample size

N = total population

e = margin of error

In getting the sample size, the respondents used the Slovin’s formula with a

0.05 margin of error.

By computation:

N
n=
1+ N e2

1,679
n=
1+ 1,679¿ ¿

1,679
n=
5.1975

n¿ 3 23 . 04 ≈ 323 respondents

Making use of the Slovin’s Formula. The overall sample size for the study is

323. To ensure that the questionnaire is distributed equitably to each program. The

overall sample size was multiplied by the proportion of each program by the

researcher.

Respondents Distribution
COLLEGE
PROGRAM N (1,679) % n (323)
BA PHILO 2.03% 7
34
BA POS 1.73% 6
29
BSA 13.70% 44
230
BSACT 0.06% 0
1
BSAIS 5.30% 17
89
BSBA 16.56% 53
278
BSOA 1.61% 5
27
BSCRIM 17.81% 58
299
BSCS 1.37% 4
23
BEED 3.45% 11
58
BPEd 3.45% 11
58
BSED 9.05% 29
152
BSNEd 0.48% 2
8
BSHM 8.87% 29
149
BSHRM 0.24% 1
4
BSTM 4.94% 16
83
BSCPE 2.20% 7
37
BSIT 7.15% 23
120
TOTAL 1,679 100% 323
Research Instrument

The researchers used Google Form research survey questionnaires as a tool

that helped them in knowing determinants of Customer Satisfaction in Online

Shopping. The research questionnaire were patterned and modified similar to the

previous the study by (Vasic, et al, 2019) which is entitled, “The Influence of Online

Shopping Determinants on Customer Satisfaction in the Serbian Market”. Research

questionnaires were. Learning Preference composed of 2 parts. First part are the 6

determinants of online shopping which are security, information availability, quality,

pricing, delivery and time. The second part is the customer satisfaction, and is based

on a Likert scale with codes and equivalents such as: 5 = Strongly Agree; 4 = Agree;

3 = Neither; 2 = Disagree, and 1 = Strongly Disagree.

Data Gathering Procedure

To gain insights from the students taking different programs o in Saint

Vincent’s College Incorporated, in attaining the determinants of customer Satisfaction

in online shopping, the researchers provided questionnaires to the randomly selected

sample respondents. A sample of 323 respondents was taken from the 1,679 students

in Saint Vincent’s College Incorporated. The data was collected and extracted out

from the answers of the respondents from the respective questions. Same survey

questionnaires was given to all of the students wherein it starts with the specific

questions such as the respondent’s demographics such gender down to the general
questions which can determine the determinants of customer satisfaction in online

shopping

The respondents answered the questionnaires which were subdivided into

different sections which identifies their perceptions in the determinants of customer

satisfaction.

Each of the respondent’s answers were tallied, analyzed and interpreted to

achieve the purpose of the study as well as to answer the questions laid in the previous

chapter.

Data Analysis Procedure

To determine the relationship of the student’s online shopping determinants

and customer satisfaction from different college programs at St. Vincent’s College

Incorporated - Main Campus, the following numerical scale, description and

interpretation was used.

The scoring and interpretation of the responses of the respondents was

analyzed using the 5- point likert scale. Likert-type or frequency scales use fixed

choice response formats and are designed to measure attitudes or opinions.  These

ordinal scales measure levels of agreement/disagreement. A likert-type scale assumes

that the strength/intensity of experience is linear, i.e. on a continuum from strongly

agree to strongly disagree, and makes the assumption that attitudes can be measured. 

Likert-five point scale for Level of Agreement

Numerical Scale Continuum Description Interpretation

1 1.00 – 1.80 Strongly Disagree Less effective

2 1.81 – 2.60 Disagree Somewhat less effective

 3 2.61 – 3.40 Neither Equally effective

4 3.41 – 4. 20 Agree Somewhat more effective

5 4.21 – 5. 00 Strongly Agree More effective

Description and Interpretation

Strongly Disagree. This is the rating given when the online shopping determinants is

or might be less effective towards customer satisfaction.

Disagree. This is the rating given when the when the online shopping determinants is

or might be somewhat less effective towards customer satisfaction.

Neither Agree nor Disagree. This rating is given when the when the online shopping

determinants is or might be equally effective towards customer satisfaction.

Agree. This rating is given when the when the online shopping determinants is or

might be somewhat more effective towards customer satisfaction.

Strongly Agree. This rating is given when the online shopping determinants is or

might be more effective towards customer satisfaction.

Statistical Treatment

The study was treated statistically to ensure the credibility and reliability of

the results drawn from the answer of the respondents. For these statistics, significance

level of 0.05 was accepted using two-tailed test. The data obtained from the responses

of the respondents to the use of the questionnaire were classified, tallied, tabulated

and statistically treated in order to determine the determinants of customer satisfaction

in online shopping employ by the students from different college programs at St.

Vincent’s College Incorporated - Main Campus this S.Y 2021-2022.

Specifically, the study sought to answer the following:   

Percentage 

To determine the profile of the respondents, the simple percentage was used.

Formula: 

f
P= x 100
N

Where:

P = the percentage 

f = the frequency 

N = total number of the respondents

Weighted Mean 

The researchers used the Weighted Mean in order to determine the

determinants of online shopping and the customer satisfaction, and the

weighted mean formula were used.

Formula:

W m= ( ∑ i=1...
W i Xi
N )
Where: 

W = the weighted mean

m

W = the respective weight of each response  

i

X = the number of respondents in a particular response

i

N= the total number of respondents 

Spearman Rho Correlation

The researchers used the Spearman Rho Correlation in order to know if there's

a significant relationship between the demographic profile of the respondents such as

the sex and age towards the determinants of online shopping and also to get the

significant relationship between demographic profile such sex and age towards

customer satisfaction and lastly is to know the significant relationship between the

determinants of online shopping and customer satisfaction with the significance level

of 0.05. This statistical tool was used to treat the question laid in Problem 4,5 and 6.

Furthermore, the researchers used Spearman Rho Correlation since it is more suited

for measurements derived from ordinal scales, with Likert-Scale being an example of

an ordinal scale.

In order for the researchers to analyze the data, SPSS (Statistical Package for

the Social Sciences) was used to help them in interpreting the results as well as to

treat the data collected from the respondents’ answers.