Online Selling: Basis for a Marketing Strategy

LPU-Laguna Journal of Business and Accountancy
Vol. 3 No. 2 October 2019
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Center for Research, Publication, and Intellectual Property
LPU-Laguna
An Analysis of Consumer Satisfaction in Laguna on Online Selling:
Basis for a Marketing Strategy for Lazada Faye Beatrice S. Fandialan, Joseph Emmanuel B. Milan, Ma. Leonora V. Alusen
[e-mail], [e-mail]
Lyceum of the Philippines - Laguna
ABSTRACT
Online selling or E-commerce had been in trend in this generation that greatly affected the behavior of
consumers. The basis to measure the consumer satisfaction is the service quality dimensions (Reliability,
Assurance, Tangibility, Empathy, and Responsiveness) and under these are the customer expectations and
perceptions. This research focused on describing and determining the services of online selling and how it
greatly affected today’s generation. Through this study, it was also determined in what aspect were the
consumers satisfied and dissatisfied regarding their online shopping experience and how to improve those
gaps. Using quantitative research design, this study used an adapted survey questionnaire to gather data
from 207 respondents using purposive sampling. Weighted mean and One-way Anova test were used to
analyze the data gathered. This research study revealed that most online consumers are ages 19-30 years
old, male, and are from Calamba City, Laguna. Most of the consumers revealed are satisfied with online
selling services however, it was founded that tangibility has the largest gap between customer expectations
and perceptions. Moreover, there is a significant difference on customer expectations and perceptions in
terms of their profile variables except age and location where the respondents live.
Keywords: Online Selling, E-commerce, Servqual, Consumer Satisfaction, Online Shopping
INTRODUCTION
Filipinos are known for being cautious in terms of purchasing a product. They consider security,
fast transaction, mode of payment convenience, price and values, return or exchange rules, website
reputation, online reviews and feedback, good customer service, and low shipping charges. Filipino
consumers value online shopping because of its convenience and accessibity. Product marketing and service
marketing are equally significant because they both have the ability to be direct in providing a proof and
specific information and features about the product and services a business provides (Leonard, 2018). Good
Service marketing results to more customer satisfaction and good customer experiences. This furthermore
results to good customer relationship and online shop reputation. When a customer was satisfied with a
business service, their purchase intention rises.
According Sunita Jatav (2018), service marketing is how to satisfy clients or customers in different
ways, good communication, proper service and in a good way that they will be remembered. Companies
should make every service fine and proper for different type of customers. Services are intangible, there are
some types of service quality that can be used to determine the behavior of consumers. Search quality
relates to products and services, it is when a consumer searched for certain products prior to purchase. It is
in their perception to check the quality of a product through multiple searches. Experience quality allows
consumers to experience first the service before evaluating. Lastly, the reputation of a business relies on
the credence quality which is based on the credibility of a service. (Marketing Teacher Ltd., 2014).
Furthermore, there are also characteristics of services that can be a basis to elevate good business services.
Marketing services can differ from marketing goods, so when it comes to services, there are characteristics

LPU-Laguna Journal of Business and Accountancy
Vol. 3 No. 2 October 2019
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Center for Research, Publication, and Intellectual Property
LPU-Laguna
to consider namely, lack of ownership, intangibility, heterogeneity, perishability, inseparability, and user
participation. (Claessens, 2015)
Responsiveness in a business is important to attain market growth. Lack of responsiveness can lead
to issues achieving growth. It is not only necessary to be responsive towards your customers but also to
people inside the company. The relationship between the people inside the company is important to be able
to work well and serve the customers better (Holtzclaw, 2015). Assurance of a service and quality is making
sure that a business is providing the proper service, quality, requirements that a customer need. It is
necessary for a company to ensure that the customers’ expectations were fulfilled (Russel, 2017). As per
Kees De Vos (2016), it is better for online stores to show good communication with customers by showing
delivery options display on their website as well as customers are delighted when the online website would
send an email confirmation and information on how to track their orders. Through this, customers are
assured that their items will be delivered in time.
Tangibility is an item that a person can detect using the senses. In a business, tangibility refers to
tangible products and other things, like the purchased product of a customer or the facilities the business
are using to provide the proper service and product quality a customer need (Hoare, 2014). Lennon (2011)
stated that online website designs are important in increasing consumers. From logos, website colors,
colored icons and many more help consumers revisit the same online shop and repurchase an item .
Most female consumers are easily attracted by website designs and have high chances of revisiting
the same online store. They consider the website designs before purchasing a product in an online
application or website.
Customers also see empathy in a business service. Empathy is a communication that helps
employees build good relationship with their customers. It would also help the business know the
customer’s demands. In line with this, empathy is also relevant to customer service experience which helps
to gain number of satisfied customers as well as customer’s trust and loyalty towards the store (Simons,
2017). Furthermore, empathy makes it possible to understand other people’s perceptions and opinions.
Knowing the opinions of customers is important for a business to be aware if their service is meeting the
customers’ needs and wants as well as their positive and negative feelings. Empathy is sharing what a
person thinks or how a person thinks towards something, and it is necessary for a company to know these.
Customers also have the right to know the business’ background and information (Singer, 2014)
Reliability is a quality which measures how a customer trusts an online website. With the presence
of reliability, an online store earns the trust and loyalty of customers and consumers. If the online website
is performing well and continuously reaching the customers’ needs, reliability is present. It is necessary for
consumers to know the risks of purchasing products online. To check the reliability of an online website,
consumers do some research first about the online shop, provide and double check their complete
information to the website, they check if their payment is secured, and also the website or seller’s private
and returns policy (Vella, 2013).
Conceptual framework

LPU-Laguna Journal of Business and Accountancy
Vol. 3 No. 2 October 2019
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Center for Research, Publication, and Intellectual Property
LPU-Laguna
Figure 1. Conceptual framework of the study
Figure 1 shows the variables that are used in the study. The conceptual framework served as the
paradigm for the entire research. The first part was the respondents’ demographic profile. The second part
includes the factors of service marketing and distinctive nature of service. The evaluated data and consumer
reviews were the basis for Lazada to create a marketing strategy to attain customer delight.
Objectives of the study
The researchers sought to determine (1) the demographic profile of the respondents in terms of age,
sex, civil status, and location; (2) the consumer satisfaction towards service online selling in terms of
tangibility, empathy, responsiveness, reliability, and assurance; (3) the average gap between the consumers’
expectations from perceptions on the service quality of online selling; and (4) if there is significant
difference on the consumer satisfaction on online selling and the profile variables.
METHODOLOGY
This study used a quantitative research where the respondents used an adapted survey questionnaire
from the research conducted by Baki et. al. entitled, An application of integrating SERVQUAL and Kano’s
model into QFD for logistics services: A case study from Turkey. The study started by asking permission
to Lazada E-logistics Company to be the researcher’s research company. The survey was performed in
some places in Laguna and was distributed personally and through online with 207 respondents using
purposive sampling. The respondents were the ones who are purchasing goods online and were
knowledgeable enough on what their behavior are in terms of online selling. The effect size of 0.3 and
margin of error of 0.05 were used to compute for the total sample size of 207 by using G-power. The
collected data were tabulated, analyzed, summarized, and interpreted. Weighted mean was used to analyze
the data gathered to determine the average responses of the respondents of different options and factors
under the questionnaire. One-way Anova test was used to determine the significant difference on consumer
satisfaction in terms of profile variables of the respondents.
RESULTS AND DISCUSSION
The following are the results of the data gathering using tables as well as the discussion of each
table in relevance of the objectives of the study. For the demographic profile of the respondents. Based on
the findings the results revealed that Majority of the respondents in terms of age were 19 – 30 years old
(42%). The least number of respondents were ages 41 and above (9.2%). In terms of sex, the results show