Thesis in Financial Management
Thesis in Financial Management
Thesis in Financial Management
This chapter presents the introduction, statement of the problem, theoretical and
conceptual framework, significant of the study, scope and limitation and definition of
terms.
Introduction
The Internet has been generating consumer empowerment for over a decade.
Brick-and-mortar stores are slowly but surely closing down because of the rise of e-
commerce. Compared with physical stores, online businesses offer convenience to
customers. Customers can just sit at their home, place their orders, pay via credit card,
and wait until the goods are delivered to their home. E-commerce in Indonesia is
growing fast due to the growth of internet penetration. In March 2017, internet
penetration reached slightly over 50% with 104.96 million internet users (Pires et al.,
2006 and Quora, 2017).
In the early years of online retailing, having an online presence and low prices
were believed to be key drivers of success. More recently, electronic service quality has
become essential as an online marketing strategy. Online stores provide higher service
quality to create online customer loyalty, improve customer satisfaction, and keep a
lasting competitive advantage. According to the literature review, service quality is an
important instrument of developing a competitive advantage in e-business. It is one of
the most critical factors for maintaining long-term relationships with customers, building
customer loyalty, and encouraging repeat purchases. Therefore, service quality has
become a significant factor in determining the success or failure of an online business
by influencing online customer shopping experiences and has a greatly effects both
online customer satisfaction and customer loyalty. However, most past studies focused
on the relationship between e-service quality, e-satisfaction and online purchase
intentions. No empirical studies have explored the relationship between e-service
quality and online repurchase intentions. In other words, this research investigated the
potential for future online purchases by the customers significantly contributing to the
research knowledge base. The purpose of this study was to explore and analyze the
effect of e-service quality on customer intention to repurchase online ( Liu 2012).
Past years have witnessed widespread if internet network and it became possible
for direct interaction from anywhere and anytime at low cost, global market transformed
towards concrete market to market. cognitive explosion was the reason for many
websites and online services, it became necessary attention to electronic service quality
in the light of global competitiveness so stay for the best, e-service quality make buy
and sell through website easier, and deliver the services and products with high
efficiency, and is also the navigation efficiency, and increase the size of the data and
information provided to the customer. Electronic service quality concept is still new and
controversial among in the field of marketing services for the difficulty in measuring the
quality of service, because they are things that are difficult for consumer to evaluate
compared to goods, prior to 1985, there were only a limited number of studies on the
quality of service concepts and its dimensions without address and evaluate methods of
measurement, where attributed the first attempt to measure the quality of service to
Parasuraman and others, regarding the electronic service quality, e-marketing literature
lacked clear concepts (AlHawary and Toahir, 2012).
Online shopping is the act of buying a product or service through any e-stores
with the help of any website or app. Tarhini et al. (2021) stated that shopping through
online channels is actively progressing due to the opportunity to save time and effort.
Furthermore, online shopping varies from direct e-store and indirect e-store about their
perception against the actual experience. Developing countries still face various
conflicts and issues while promoting and utilizing e-commerce to the maximum
compared with the developed countries (Rossolov et al., 2021). In the developing
countries, the difference between the perception and actual experience of the
consumers varies when buying from indirect e-store compared to the direct e-store. On
the contrary, 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.
Statement of the problem
This study aims to examine the impact of service quality on costumer's satisfaction of
Hobby Shoppers Online Business in General Santos City.
2. What is the service quality that the Hobby Shoppers Online Business provides
to the costumers want?
3. What is the service quality impact costumer's satisfaction that provides Hobby
Shoppers Online Business in this generation?
Conceptual Framework
This study examines the impact of service quality on costumer's satisfaction of
Hobby Shoppers Online Business in General Santos City. Costumers satisfaction taken
as dependent and service quality of Hobby Shoppers Online Business as independent
variable.
By nature, and purpose of this study, the results or findings of the study will bear
significant contributions to the following persons:
To the Readers. To open the reader’s awareness and initiatives the impact of
service quality on costumer's satisfaction to Hobby Shoppers Online Business in
General Santos City.
To the Workers. To help the person that what is online business all about and
how it works in the business industry.
To the Companies. To provide data to the company that the online business is
new kind of income of the society specially in internet industry.
Scope
This study aims to know the the impact of service quality on costumer's
satisfaction to Hobby Shoppers Online Business in General Santos City. The
respondents of the study will be the costumers of the Hobby Shoppers Online Business.
There are 40 to 60 customers who are buying their products every week. The study will
be located at Black 36, Lot 16 Tanghal Country Homes Purok San Vicente Brgy, San
isidro General Santos City.
Limitation
This study is limited only in the identification of the impact of service quality on
costumer's satisfaction of Hobby Shoppers Online Business in General Santos City.
Definition of Terms
These are the following unfamiliar terms that are defined conceptually and
operationally by the researchers to further understand the research.
Respondents. Conceptually defined as the person who is asked for certain oral or
written information during a survey. (Business Dictionary,2020)
This chapter provided the related literature and studies that gives deeper understanding
what the study is all about.
Along with the development of the business world, websites in the form of e-
commerce are already a necessity of a business to increase trading activities and
marketing more efficiently, where the use of ecommerce will facilitate promotion,
transactions, cost reduction and speed up the transaction process. The Internet and e-
commerce have opened up exciting new opportunities for supply and demand for
agricultural commodities in developing countries. Actors in various fields, especially in
industrial and agricultural companies from these countries, have used the Internet and
electronic platforms in multiple forms. The cycle of goods and services has a short life
cycle, no longer talking the year even measured by months, days, or even hours.
Consumers want quality, cheap, easy to get, fast delivery, and excellent after-sales, so
a website is created to speed up the sales process. (Warlina, L; Siddiq, F F; Valentina,
T Vlog. 1402, Iss 6, Dec 2019).
Social media is currently being popular among various ages and becoming a
Media marketing business that is currently being taken up by entrepreneurs around the
world. In online business, social media should be able to attract potential buyers '
attention so they can buy products sold and provided in the business. If used properly,
the use of social media can be used for business. Social Media is a platform that is
essentially used to communicate between organizations, communities, or individuals.
Therefore, many companies want to use social media as a medium to market their
products. Paul A. Tess explained in her research that social media has a very important
role as it can be used as a source of information for buyers. Whereas Stephanie et al.
explained that social media is known to people as a component of marketing strategies
and marketing goals. Before social media is used as a marketing medium,
entrepreneurs must consider that funding in marketing must be detailed and minimalistic
which is difficult. Now with social media, business people can minimize marketing costs
and facilitate detailing.( Soegoto and Huda, Vol. 662, Iss. 3, Nov 2019).
Many organizations are resorting to virtual online retailing platforms due to its
exponential growth, futuristic potential and global-reach capability. Convenience, cost-
effectiveness and the speed offered by online shopping suites most agile businesses
operating in dynamic consumers markets. It is acknowledged that consumers’ shopping
habits have changed and their Internet usage rate has increased especially with the
advances in virtual channelling. The Internet usage has increased due to the
advancement of technology and the dynamics of virtual communications, coupled with
the pervasive knowledge of the consumer. Therefore, understanding online consumers
is important in today’s economy. It is also important to understand buyer motivation and
the satisfaction of online customers after making a purchase. (Dubihlela, Jobo, Chauke
and Difference; Vol. 13, Iss. 3, 2016)
transaction starts when the seller advertises products on a website, and customers
show acceptance, evaluate the products’ features, prices, and delivery options, buy
products of interest, and then check out (Ribadu & Rahman, 2019). Tailoring these
products to specific markets and targeted customer groups increases online retail sales
volumes and reduces the costs for updated information that customers access, showing
the important role that e-commerce plays in determining how effective online retailers
al., 2020).
Technology has developed rapidly over the past decade and has changed
consumer behaviour in exploiting opportunities. Because internet users have spread
rapidly, consumers are shifting from passive consumers to being active and informed.
Electronic media, such as online discussion forums, electronic bulletin board systems,
and newsgroups, are essential sources of information influences that facilitate
information exchange among consumers. Web-based technology has created many
opportunities for electronic word-of-mouth communication with the help of the internet;
consumers can find much information they need about goods and services provided by
other consumers or to share their opinions and experiences using goods and services
with many other consumers. Active consumers trust online reviews posted by unknown
consumers more than they believe in traditional media, just as they listen to personal
recommendations from friends or family.(Dwisanty, R and Shiam, S .
Vol. 662, Iss. 3, Nov 2019).
METHODOLOGY
This chapter includes method of research used, research locale data gathering
instruments, data gathering procedure, sampling technique, statistical instrument and
respondent of the study.
The correlation method of research will be used for this study. The purpose of
this study is to contain a precise profile data of the people, event or situation. Two types
of data we gather for this research. These include primary and secondary data. The
primary data we deliver from the questionnaire the respondents provide during the
survey and interview process moreover, the secondary data we acquire form publish
reports and illustrate that we relate costumers satisfaction questionnaires. These
includes are both quantitative and quantitative approach of research with use of survey
questionnaire and interview.
For these reasons the research chose a descriptive research methodology and
design a questionnaire survey tool interview and library research to know the impact of
service quality on costumer's satisfaction of Hobby Shoppers Online Business in
General Santos City.
Research Locale
The researchers conduct their study the impact of service quality on costumer's
satisfaction of Hobby Shoppers Online Business in General Santos City. The researcher
chooses Hobby Shoppers Online Business as their research locale because the
researchers want to know what the impact of service quality on costumer's satisfaction
of Hobby Shoppers Online Business.
Data Gathering Procedure
Step 1
Preparation of intention letter for the business and survey questionnaires
Step 2
Approval of intention sector and survey questionnaire by the researcher adviser
Step 3
Asking of intention to the company through sending approval letter
Step 4
Dissemination of survey questionnaires to the respondents
Step 5
Collect the survey questionnaires answered by the respondents
Step 6
Tabulate the result of the answers from the answered survey questionnaires
Step 7
Interpretation, conclusion and recommendation of findings
Sampling Technique
This study will use purposive sampling is a form of non – probability sampling in
which researchers rely on the own judgment when choosing member of the population
to participate in their study.
Research Instrument
The instrument use in this study was survey questionnaire made by the
researchers as an obtaining concrete answers for the study interpretation of data.
It consists of two parts. Part I used the percentage and frequency distribution in
order to determine the costumer's satisfaction of the respondents and Part II use the
weighted arithmetic mean to determine the service quality.
The researchers use qualitative and quantitative approach. The study uses
combination of book-based and internet-based questionnaire to gather data needed for
the study which is the impact of service quality on costumer's satisfaction of Hobby
Shoppers Online Business in General Santos City.
It is main instrument for collection for data in survey research. Basically, it is a set
of standardized questions, often called terms, which follow a fixed scheme to collect
individual data about one or more specific topics.
Statistical Treatment
In treating the data gathered, the researchers use the weighted mean and the
frequency for the percentage.
Weighted mean for the sub-problem the responses were tallied and computed
using the weighted mean to determine the impact of service quality on costumer's
satisfaction of Hobby Shoppers Online Business in General Santos City.
The table below shows the legend in interpreting the result of weighted mean for
each problem.
Formula:
WM=Σfx
N
Where
The questionnaire will use Likert’s scale to determine effectiveness of reward system to
the employees. The five-point rating scale will be used in rating the responses of the
respondents; thus, Strongly Agree 5points, agree 4points, Neither Agree Nor Disagree
3points and Disagree 2points and Strongly Disagree 1point.
Direction: Kindly checked the box that will correspond to your answer as to the impact
of service quality on costumer's satisfaction of Hobby Shoppers Online Business in
General Santos City.
Part I. What are the levels of costumer's satisfaction of Hobby Shoppers Online
Business?
5 4 3 2 1
Q1. Have a physical store that can approach
Part II. What is the service quality that the Hobby Shoppers Online Business provides to
the costumers want?
5 4 3 2 1
Q1. Patient to the costumers wants.
5 4 3 2 1
Q1. Business legitimate in their products and services.