The Emergence of Electronic Commerce in Metro Manila: An Assessment

Title : THE EMERGENCE OF ELECTRONIC COMMERCE IN METRO MANILA: AN ASSESSMENT

Researchers : WILLY O. GAPASIN, DBACHANDA R. TINGGA, MBAEVELYN T. ARPON, MPA

College : COLLEGE OF BUSINESS ADMINISTRATION

School : EULOGIO “AMANG” RODRIGUEZ INSTITUTE OF SCIENCE AND TECHNOLOGY

School Year : 2012- 2013

I. Introduction

Electronic Commerce has made a profound impact around

the world. It offers vast opportunities for entrepreneurs.

Because of the internet’s accessibility, anyone can put up

their business online. Many businesses put up online shops

for many people prefer to buy through them. In addition that

online shop gives people the convenience of availing the

products and services from the comfort of their home.

Shopping online also allows people to have an access to

a wide selection of products. Many internet shopping

Page | 1

websites offer price comparison and reviews for buyer, who

would like to make the most of their money. Payments are

made through credit cards, electronic money, cash on

deliveries and checks.

E-commerce has the potential to improve efficiency and

productivity in many areas. It relies on various information

and communication technology that have the potential to

improve trade efficiency around the globe and integrate

developing countries into global economy. There is a rapid

gain in the marketing setting of the country. The volume

transmissions that are carried out over the internet

globally are extremely huge. Estimated that in the next

decade, E-commerce would be a key indicator of national

development. However, there has been some doubt about the

relevance of developing e-commerce by developing countries

such as the Philippines. Infrastructure management factors

have been identified as the contributing to low level of e-

commerce development. Little emphasis has been placed on

studying the adaptation and dissemination of e-commerce.

Page | 2

This study takes on the premise of electronic commerce

that emerging as an important innovation for socio-economic

advancement, especially among the business establishment

being promoted one of the country’s information technology

hubs.

However, it was only with advent of the internet that

e-commerce became rapidly stimulated. With the internet, e-

commerce became accessible to companies and individual

consumers and the basis for the creation of new industry and

products

And lastly, after spreading of its virus that made

international business more flexible, internet wide spread

usage on e-commerce. Additionally it is now our vocation to

study the impact of e-commerce in the Philippines for

improving business transaction here in our country. It

focuses on the questions, how effective and efficient is e-

commerce offering in terms of; online selling; online

services; online jobs; and online shopping.

Social media growing exponentially in recent years, the

conversation between business and consumers as become more

Page | 3

engaging, making it easier for transactional exchange to

happen online. Internet retailer continues to strive to

create better content and a realistic shopping experience

with technologies like augmented reality. The beauty of the

online business is that its suited to just about anyone. You

don’t need to be an MBA graduate to start the operation from

anywhere as long as you have an access to an internet

connection and business acumen. E-commerce is ideal for the

star-up and small businesses.

This study aims to know the effectiveness and

efficiency of electronic commerce to those users and

entrepreneurs.

II. Statement of the Problem

This study is designed to introduce the impact of

Electronic Commerce in the Metro Manila. Specifically, it

seeks to answer the following question.

1. What are business activities offered in Electronic

Commerce:

1.1. Online Shopping;

Page | 4

1.2. Online Selling;

1.3. Online Services; and

1.4. Online Jobs?

2. How effective and efficient is Electronic Commerce

offerings in terms of:




2.4. Online Jobs?

3. Is there any significant relationship among Electronic

Commerce offerings as perceived by respondents?

4. Based on the findings of this study, what do

researchers may recommend to enhance and strengthen the

use of electronic commerce in the Metro Manila?

III. Significance of the Study

The researchers believed that the significant findings

in this study will benefit to the following:

1. Industry. The study will be helpful to the service

industry and business practitioners in training and

Page | 5

informing them in the impact of e-commerce in the

Philippines.

2. Management. Management should always aspire for

updated and relevant procedures for betterment and

improvement of e-commerce use in their services. The

writer hopes that with this study, management of

organizations of the study as a guide in formulating

new strategies in improving e-commerce offerings.

3. Entrepreneurs. It will help entrepreneurs be aware

on the impact of e-commerce in the Philippines. It

will also increase their knowledge about the use of

electronic commerce.

4. Public/Customers. This study serves information for

the public on how e-commerce impacts the businesses.

And importantly, this research will educate clients

in deciding on whether an industry e.g. business

industry is really fulfilling its responsibility to

the community or is just showing off to promote its

businesses.

Page | 6

5. Academe. The academe comprised of scholars,

administrators, professors, and students will be

provided with facts – including those not frequently

given out to them. In this case, the study is

primarily significant to the academe, given that it

analyzes the impact of e-commerce in the

Philippines, initiating deeper search for

understanding on the topic.

6. Researchers/Future Researchers. It will also serve

as a future reference for researchers on the subject

of e-commerce. This study served in great part of

for the completion of the researchers’ course

requirement. This has given them a lot of challenge

in meeting new faces and acquaintances and being

aware of what’s happening in the environment

regarding their study. This developed their self-

esteem and has been an example of leadership in

interacting with others, increased their vocabulary,

and kept their determination to finish what they

Page | 7

have already started. This also led them to discover

new knowledge and wider their horizon.

IV. Synthesis of Related Literature and Studies

The foregoing literature and studies will provide the

researcher the necessary insights and ideas towards the

conceptualization of the present study. These will also be

used as valuable background information in the

interpretation and analysis of the findings of the study.

Soriano, Limcauco, Payumo (2000), Robles, Jarvenpaa and

Todd, Contreras (2001), Wong, Barrie (2003) observed that

electronic commerce has a remarkable impact in every

business and identified the different activities and factors

in marketing of product/services.

The research findings of Limayem and Bhatnagar et al.

(2000), Bellman et al. (2001), Alreck and Settle, Slyke et

Page | 8

al., Swaminathan et al. (2002), Yaptengco, De Vera Rodgers

and Harris, Citrin et al. (2003), Susskind and Stafford

(2004) proved that any small and medium enterprises (SMEs)

can also adapt the electronic commerce Annual reports and

programs, statistics and publications of magazine and

journals have equally provided wider insights on the

emergence of electronic commerce.

For this reason, it can be said that electronic

commerce contributed according to the needs and realities of

the business organization.

V. Methodology

In this study, the instruments used are questionnaires

and interviews, which are necessity for distinctive method.

The content of the questionnaires was self-made. By all

means, hard work and group effort, the researchers design

Page | 9

the questionnaires in proper to accommodate sufficient and

relevant information required from the respondents.

The questionnaires for management are divided into two

parts. The first component concentrated on the profile of

the respondents. The second component tackles about the

efficiency and effectiveness of the different types of e-

commerce.

Population and Sample

The researchers were able to congregate information to

be interpreted for the study from the users of electronic

commerce. The researchers distributed 150 copies of

questionnaires to their respondents composed of students,

professionals, workers and businessmen.

The researchers used purposive sampling technique to

calculate the sample size given as the management personnel

are small in population.

Table 1 shows the frequency distribution and percentage

of the respondents by their economic status.

Page | 10

Table 1

Distribution of Respondents According to Economic Status

Status N %Students 42 28Professional 42 28Worker 36 24Businessman 30 20Total 150 100

Table 3 shows the distribution of respondents as to

Economic Status. As shown above, 42 or 28% are students, 42

or 28% are professionals, 36 or 24% are worker and 30 or 20%

are businessman. It shows that the majority users of

Electronic Commerce are students and professionals.

Data Gathering Procedures

The researcher had deal great time in developing their

questionnaire so as to serve its much intended respondents.

Surfing to the internet and research to different libraries

Page | 11

such as National Library and Manila Library are the means to

complete and improve the questionnaires as well as the other

parts of this research. Through collaboration of the

members, the researchers were able to transpire with the

quality but with logical deductions that makes it maintain

perspective toward the subject matter that was distributed

to the respondents for the use of judgments in making

recommendations.

Questionnaires were distributed among the users of E-

commerce with the help of the team. The researchers

distributed self-administered surveys to users. In

conjunction, Likert questionnaire will be distributed to

potential respondents in which different dimensions of

service quality will be presented, where subjects will rank

each item on the questionnaire in terms of the expectation

and perception to each subject.

In the set of questionnaires, for users was collected

one week after its dissemination.

Page | 12

The results were computed and tabularized according to

the frequency of items checked by the contributors of data,

the respondents. After data tabulation results will be

interpreted using various statistical tools. The results of

the techniques used in the data gathering ameliorated the

research team in order for them to arrive at the

interpolation of the study.

Statistical Analysis of Data

The data to be collected in the study were organized

and classified based from the research design and problems

formulated. The data were coded, tallied, tabulated, and

tabled to facilitate the presentation and interpretation of

results using the following:

1. Frequency and Percentage. The percentage and

frequency distribution were used to classify the

respondents according to their personal background

variable such as, gender, age, civil status, monthly

salary and length of patronage as for the users. On

Page | 13

the other hand, the percentage of that item is

computed by dividing it with the same total number

of respondents who participated in the survey. The

formula used in the application of this technique

is:

% = (f/n) x 100Where:

% = Percentagef = Frequencyn = Number of Cases or Total

Sample

2. Ranking. This is the descriptive measure to

describe numerical data in addition to percentage.

Ranking was used in the study for comparative

purpose and for sharing the importance of items

analyzed.

3. Likert Scale. The Likert Scale method of summated

ratings was used in the study. Likerts scaling

technique assigns one scale value of each different

response. To analyze responses to a Likert scale,

each category assigned to a numerical value such as

Very Much Adopted which is equal to 5 and Not

Page | 14

Adopted is equal to 1. The total assigned value will

be determined by using weighted mean. The scoring

systems for each item must be such a high score

consistently reflex a favorable response and a low

score constantly reflex unfavorable response. The

consolidated points from the respondents’ answer to

each item over the five-point scale such as follows:

1. Different Activities offered by ElectronicCommerce:

Scale Range Verbal Interpretation Symbol

5 5.00 – 4.50 Very Highly Patronized VHP

4 4.49 – 3.50 Highly PatronizedHP

3 3.49 – 2.50 Patronized P

2 2.49 – 1.50 Fairly Patronized FP

Page | 15

1 1.49 – 1.00 Not Patronized

NP

2. Effectiveness of Electronic Commerce

Scale Range Verbal Interpretation Symbol

5 5.00 – 4.50 Very Effective VE

4 4.49 – 3.50 Effective E

3 3.49 – 2.50 Moderately Effective ME

2 2.49 – 1.50 Least Effective LE

1 1.49 – 1.00 Not Effective NE

4. Chi Square.

A chi-squared test, also referred to as chi-square

test or test, is any statistical hypothesis

test in which the sampling distribution of the test

statistic is a chi-squared distribution when

the null hypothesis is true, or any in which this

is asymptotically true, meaning that the sampling

Page | 16

http://en.wikipedia.org/wiki/Null_hypothesis

http://en.wikipedia.org/wiki/Chi-squared_distribution

http://en.wikipedia.org/wiki/Sampling_distribution

http://en.wikipedia.org/wiki/Hypothesis_test

http://en.wikipedia.org/wiki/Hypothesis_test

http://en.wikipedia.org/wiki/Statistical

distribution (if the null hypothesis is true) can be

made to approximate a chi-squared distribution as

closely as desired by making the sample size large

enough.

df = (r-1) (c-1)

Where:

df = degrees of freedom

r = rate

c = variables

VI. Results and Discussion

This chapter contains information about the results of

the study and the analysis and interpretation of data

gathered with the use of the adapted statistical measures.

The presentation includes a narrative discussion of the

results and implications of the data gathered which are

illustrated in tables.

Problem no. 1: What are business activities offered in

Electronic Commerce:


Page | 17



1.4. Online Jobs?

Table 2 shows the weighted mean and ranking of the

different types of E-commerce as to usability or often used

by the respondents.

Table 2

Different Types of E-Commerce as to Usability

Types of E-Commerce

WeightedMean

VerbalInterpretation

Rank

Online Shopping 3.52 Highly Patronized 2Online Selling 3.20 Patronized 4Online Service 3.80 Highly Patronized 1Online Jobs 3.50 Highly Patronized 3

Averageweighted mean

3.51 Highly Patronized

Page | 18

As assessed by the respondents, the different

activities offered by Electronic Commerce was generally

rated highly patronized as indicated by the overall mean

score of 3.51.

Three (3) services offered by electronic commerce were

assessed by the respondents as highly patronized such as:

online service, online shopping and online jobs and online

selling as patronized.

Contrary to the findings, [Alreck and Settle 2002]

stated that online shopping is an activity much favored by

men and women.

Problem no. 2: How effective and efficient is

Electronic Commerce offerings in terms of:




1.4. Online Jobs?

Table 3 reflects the effectiveness of e-commerce

offering in online shopping.

Page | 19

Table 3

Effectiveness of E-commerce offering in Online Shopping

Criteria Weighted Mean


Rank

Accessibility 3.92 Effective 4Convenience 4.40 Effective 1Variety of Services

4.24 Effective 2

Customer Service

3.66 Effective 5

Informative 4.12 Effective 3Average

weighted mean4.07 Effective

As assessed by the respondents, the effectiveness of

electronic commerce in online shopping was generally rated

effective as indicated by the overall mean score of 4.07.

All criteria were assessed by the respondents as

effective. These are: convenience (WM = 4.40); variety of

services (WM = 4.24); informative (WM = 4.12); accessibility

(WM = 3.92); and customer service (WM = 3.66).

In connection, according to OSAM (Online Shopping

Acceptance Model), online shopping has taken off as an

increasing number of consumers purchase increasingly

diversified products on the Internet. Given that how to

Page | 20

attract and retain consumers is critical to the success of

online retailers, research on the antecedents of consumer

acceptance of online shopping has attracted widespread

attention.

Table 4 presents the respondents’ assessment on the

effectiveness of e-commerce offering in online selling.

Table 4

Effectiveness of E-commerce offering in Online Selling

Criteria WeightedMean


Rank

Accessibility 4.20 Effective 2Convenience 4.24 Effective 1Variety ofServices

3.94 Effective 4

CustomerService

3.74 Effective 5



As presented in the table, the respondents’ rated the

items as effective with an overall composite mean of 4.02.

It appeared in the table that the respondents’

assessment is effective. These are: convenience (WM = 4.24);

Page | 21

accessibility (WM = 4.20); informative (WM = 3.98); variety

of services (WM = 3.94); and customer service (WM = 3.74).

In correlation with this, Allan Robles (2003) stated

that, the advantage of internet in the online selling is

interactive. It allows customers to give their opinions,

their needs and their profile. This allows a seller, to set

up a customer database, fine-tune sales pitch and focus on

specific market that can be served as well and this can be

served. And this can be done without having to pay to a

market researcher.

In connection with this, Robles affirmed that the best

point about going online selling though is to immediately

increase potential several markets million times over. For

one who has a small shop in Manila, his core market is the

city. A store on the web can be set up and market

immediately becomes available to the consumer with an

internet subscription hustle-free. This means millions of

people all over the world.

Page | 22

Table 5 shows the respondents’ assessment on the

effectiveness of electronic commerce in online services.

Table 5

Effectiveness of E-commerce offering in Online Services



Rank


3.98 Effective 2

CustomerService

3.76 Effective 5



As seen in the data all are effective with a composite

mean of 3.92. These are: convenience (WM = 4.08); variety of

services (WM = 3.98); informative (3.96); accessibility (WM

= 3.84); and customer service (WM = 3.76).

Relatively, the foregoing proves that the consumer is

greatly empowered with e-commerce. Forrester Research, Inc.

(2001) agrees with this, as it sees the internet develop

into another channel (aside from traditional, catalog and

telephone) for purchasing products, services and as it

Page | 23

increases its influence on consumers. The study particularly

describes that power will be shifted from producer to

consumer. Aside from giving consumers a new tool to gather

information and Purchase Company using web to reach

customers directly.

Table 6 reveals the respondents’ assessment on the

effectiveness of electronic commerce offering in online

jobs.

Table 6

Effectiveness of E-commerce offering in Online Jobs



Rank


4.10 Effective 4

Customer Service 4.76 Very MuchEffective

1

Informative 4.08 Effective 5Average weighted

mean4.06 Effective

In general, the respondents rated the online jobs as

effective with a composite mean of 4.06. It appeared in the

table that customer service (WM = 4.76); accessibility (WM =

Page | 24

4.22); convenience (WM = 4.16); variety of services (WM =

4.10); and informative (WM = 4.08).

In connection with this, according to Matt Barrie SMEs

in the Philippines can now connect with over 2.7 million

verified professionals to get a variety of jobs done that

don't require hiring fulltime. Freelancers from over 400

different industries can be hired, starting at Php 1,200.00,

and an average around PhP8,000. Apart from assisting

employers, this online marketplace can also help Filipinos

find alternative sources of income apart from their

day job by working as freelancers or building service

providing companies. The top freelancers on Freelancer.com

are today making around US$1 million a year and already

around 1.1 million jobs have been provided through the site

to freelancers globally.

Correlated in the findings is that according to Matt

Barrie SMEs in the Philippines can now connect with over 2.7

million verified professionals to get a variety of jobs done

that don't require hiring fulltime. Freelancers from over

400 different industries can be hired, starting at PhP1,Page | 25

200.00, and an average around PhP8,000. Apart from assisting

employers, this online marketplace can also help Filipinos

find alternative sources of income apart from their

day job by working as freelancers or building service

providing companies. The top freelancers on Freelancer.com

are today making around US$1 million a year and already

around 1.1 million jobs have been provided through the site

to freelancers globally.

Problem no. 3: Is there any significant relationship

among Electronic commerce offerings?

Table 7

Significant Relationship Among Types of E-Commerce

Level ofSignificance

Degree ofFreedom

CriticalValue

Chi-SquareValue

Decision

0.05 12 21.026 25.89 HypothesisRejected

Table 7 reflects the result of chi-square value

computation for the significant relationship among types of

E-Commerce in the Philippines. The null hypothesis (Ho) is

quantitatively rejected since the computed Chi-square value

Page | 26

25.89 is greater than the level of significance which is

21.026. Therefore, we can conclude that there is a

significant relationship among types of e-commerce in the

Philippines.

Problem no. 4: Based on the findings of this study,

what do researchers may recommend enhancing and

strengthening the use of electronic commerce in the

Philippines?

Factors to consider the effectiveness of E-commerce are

moderately effective, thus, e-commerce in the Philippines

has a good opportunity to increase more its effectiveness

for business transaction by means of creative promotion and

advertising. Also, they must maintain the highest quality of

product and services they can provide.

With regards to safety in buying process of every goods

offered in e-commerce, entrepreneur must coordinate to the

National Government to protect both the consumers and the

company side. Laws must be provided favorable for both

sides, with this, consumers will be comfortable in using e-

Page | 27

commerce as their medium of buying goods and services, on

the other hand, business entrepreneurs will be more

dedicated in innovating their careers.

VII. Conclusions

After applying the appropriate statistical tools on the

data gathered and analyzing the results thereon, the

aforementioned findings were revealed. In relation with

this, the researchers had formulated the following

conclusions:

1. The study found out that most of the respondents

were aged 21-25 while majority as to gender is

female. Most of the respondents are professional and

students and has a salary of Php10, 000 – Php19,

000.

Page | 28

2. The study shows that most of the respondents often

used online services than other types of e-commerce.

And as for computation and verbal interpretation

online services in the Metro Manila is moderately

effective.

3. From the findings of our study, it shows that Online

Shopping has a moderate impact in the consumer based

from the total result of its factors such as;

accessibility, convenience, variety of services,

customer service, and informative.

4. Moreover, Online Selling also has a verbal

interpretation of a moderate effect in terms of e-

commerce offerings, this also by the total result of

its factors listed above.

5. With regards to the result showed for the

effectiveness of Online Services, the verbal

interpretation also says that Online Services has a

moderate impact for the consumer based on its

factors.

Page | 29

6. As well the results showed for the effectiveness of

Online Jobs explain that it has also a moderate

impact for Filipino consumers;

7. And last of all, our study in general shows that all

types of E-commerce are moderately effective based

on the total result of the factors.

Recommendations

The presented conclusions had provided the researcher

with sufficient information, thus, several recommendations

had been formulated.

1. E-business must make effort to have a balanced

effectiveness in terms of age range, gender, economic

status, and monthly Salaries. Different products and

services must be available and not only focusing for a

limited range of age. Also, E-business must develop

their promotional and advertising activity to be more

interesting for both men and women. And lastly, as a

third world country, e-business must be affordable at

Page | 30

least for middle class of our society who earned less

than enough of salaries for their needs.

2. With regards to the types offering by e-commerce, they

must maintain a balance effectiveness to avoid

opportunity loss. As we analyze the results of the

survey, Online selling, shopping and jobs needs to

develop its dynamics to be more affordable to all, and

on the other side, online services needs to maintain

and developed to continue increasing its sales ability.

3. As the results of the factors measuring the

effectiveness of Online Shopping, though it has a

moderate effect for the consumers, entrepreneurs must

give a special focus on improving customer service.

They must provide quality before sales and after sales

service to have loyal consumers. With this, increase of

effectiveness will be reach by Online Shopping.

4. Further, as the result shows given by the factors that

measures the effectiveness of Online Selling, other

studies also shows that it’s more difficult to put up a

business than to buy a product, thus, as the result

Page | 31

shows, entrepreneurs who used E-commerce as their

business must be more creative and dedicated in

innovating their business. Customer service is also a

center of concern to be more effective seller.

5. Moreover, though Online Services have the highest

usability rate, as for the computation of the

effectiveness measured by its factors, Online Services

has the lowest average weighted mean yet it still

belong to the bracket of moderately effective. It also

shows that Online Services must also improve their

customer services to maintain its usability rate.

6. Contrary to the other result explained to the

effectiveness, Online Jobs offers in E-commerce needs

to improve its information management to easily conduct

recruitment of employees. Information of requirements

on applying for jobs must be guided properly to avoid

miscommunication to both parties.

7. In general result, types of E-commerce offered in the

Metro Manila needs to enhance or otherwise maintain the

factors measuring their effectiveness.

Page | 32

8. And last of all, the researchers advocate the future

researchers to go for further research on other impacts

of e-commerce in the Philippines and to formulate other

topics regarding the study.

Page | 33

Page | 34

The Emergence of Electronic Commerce in Metro Manila: An Assessment

Documents

Transcript of The Emergence of Electronic Commerce in Metro Manila: An Assessment