Determinants of Online Shopping Behavior: An Analysis of Perceived Benefits, Reputation, and Consumer Experience

Abstract

Online shopping in the Philippines is growing significantly because of technological advancements and increased internet usage. The purpose of this study is to determine what factors influence online shopping behavior among Filipinos by examining the areas of perceived benefits, store reputation, customer experience, and lifestyle. A multi-method approach was used, where surveys were distributed to 338 online shoppers in Santiago City, allowing for the subsequent analysis of the data collected using descriptive and correlational statistical analyses. While consumers generally have positive ratings of both their perceived experience (M = 3.02) and store reputation (M = 3.00), overall ratings for perceived benefits are significantly lower than either of these two variables (M = 2.85). The study also found strong positive correlations between store reputation and customer experience (r = 0.681, p < .001) and between lifestyle and perceived benefits (r = 0.608, p < .001). In addition, a discussion highlighted a "perception gap" resulting from consumers' risk-averse nature when assessing the security of online shopping websites and the quality of products purchased online, which has prevented these companies from reaching the number of online sales that was anticipated. To reduce this gap, it is recommended that retailers provide additional transparency by ensuring product quality, using secure methods for payment processing, and utilizing targeted marketing techniques.