Journal of Global Business Vol. 3 No. 1 (2014) Published online in atiftap.

org
19

Online Buying Behaviour of SMEs

Farida F. Tallud
University of Saint Louis
farida.tallud@yahoo.com

Abstract: The attitude and behaviour of SMEs‟ towards online buying are two main factors that
affect e-buying potential. Based on several studies, the major reasons for buying online seem to
include convenience, flexibility of opening hours, and saving money. Subsequently, firms buy
online because they can get detailed product information, delivery, convenience, product quality
and lower prices (Durmuş, Y., et.al. 2011). The present study focused on the buying behaviour of
SMEs who are purchasing online. It includes factors that affect their online buying behaviour such
as the website characteristics, product characteristics, suppliers‟ characteristics and their online
buying experiences. Participants were the SMEs who are using the internet in browsing, reviewing
and eventually purchasing products or services. The respondents of the study were the
owners/managers of SMEs who are into service and trading businesses. SMEs purchased online
but not too often. However, they believed that online buying will save their time, money and
effort, thus, reduces their purchasing costs. They considered return policy, product specifications,
and security of transactions as important parts of online buying because these will give them a
feeling of security. Yet they have a little concern with the availability and variety of products for
sale online. With the emergence of enabling technologies, SMEs today are facing challenges in
their business strategies in order to remain competitive. Therefore, SMEs should continuously
embrace online buying as a business tool to allow many opportunities in improving their services,
which will eventually increase their sales and profits.

Key Words: SMEs online buying behaviour, web site characteristics, product characteristics,
suppliers‟ characteristics, experience in online buying

1. Background of the study internet in purchasing is increasing worldwide, thus, becomes

very important to understand how businesses perceived its
benefits and risks (Santana, S. & Loureiro, S., 2010). To
The incredible advances of information technology have achieve the objective of the company, they must understand the
changed the face of the business-to-business transactions. specific environment of the electronic marketplace (Jacobs
Business buyers are purchasing all kinds of products and Bertha de Klerk, 2010).
services electronically. Such cyber purchasing gives SMEs Buying online has become the third most popular internet
access to new suppliers, lowers purchasing costs, and hastens activity following the e-mail usage and web browsing. This can
order processing and delivery (Armstrong and Kotler, 2004). be considered as an exchange of time, effort, and money for
Increasingly, many companies were racing feverishly to build receiving products or services. It is the process whereby SMEs
online platforms for their core businesses. Some built online directly buy goods or services from a seller in real-time,
channels to improve efficiency, while others built them merely without an intermediary service. It represents the automation of
to keep pace with competition (Shabazz, D., 2004). In such a traditional paper-based business processes. However, in order
dynamic environment, firms must be able to continually evolve to enjoy all the benefits of buying online, it requires careful
their capabilities to facilitate business operations (Lin and Hsia, management to address the legal, security and privacy issues
2011). (Awoyelu, I.O and Awoyelu, F. 2010). In addition, buying
The internet is capable of accommodating many different online inherently involves higher levels of uncertainty than
kinds of products and services that provide significant potential buying in a bricks-and-mortar store because online transactions
benefits to customers and businesses worldwide (Thompson, lack the physical assurances of traditional buying experiences.
T., 2006). It is changing the way how businesses shop and buy Moreover, attitude towards usage is jointly determined by
goods and services. Many companies have started using the perceived usefulness and perceived ease of use (Chao-Min
internet with the aim of cutting costs, thus, reducing price of Chiu et.al. 2009).
their products and services in order to stay ahead in highly Based on several studies, the major reasons for buying
competitive markets (Yoruk, D., et.al. 2011). The use of the online seem to include convenience, flexibility of opening

© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014 Journal of Global Business 2014
Online Buying Behaviour of SMEs
hours, and saving money. Subsequently, firms buy online
because they can get detailed product information, delivery,
convenience, product quality and lower prices (Yoruk, D.,
et.al. 2011). Moreover, (Betterham, B., 2009) found that
online stores provide broader selection of products, competitive
pricing and greater access to information. Experience in buying
online (Seckler, V., 2000), web site characteristics (Biz
Community, 2010), goodwill (dos Santos and Fernandes,
2011), being able to touch and feel the products (Yousaf, et. al,
2010), product specifications (Mohammad, H., et. al., 2012),
security and privacy policies, performance and refund warranty
(Ordinario, C., 2012), quality of service and return policy
(Abdul Muhlin, G., 2011) are factors that influence online
buyers.
The firms‟ attitude and behaviour towards buying online
are known as the main factors that affect e-buying potential.
Attitudinal issues play a significant role in online buying
adoption. Their buying choices are influenced by four major
psychological factors such as motivation, perception, learning
and beliefs and attitude. Attitudes serve as the bridge between
firms‟ characteristics and their business goals and objectives.
This means that, through motivation and perception, attitudes
are formed and they make decisions. Business buyers usually
face more complex buying decisions because their purchases
often involve large sums of money, complex technical and
economic considerations, and interactions among the different
levels of the organization. Hence, business buyers may take
longer to make their decisions. Business purchases usually call
for detailed product specifications, written purchase orders,
careful supplier searches, and formal approval (Armstrong and
Kotler, 2004).
Business buyers are assumed to be motivated to achieve
the optimal combination of price, quality, and service in the
products they buy. Business buyers are human, and their
business decisions are certainly influenced by their attitudes,
perceptions, and values. Business buyers have two goals – to
further their company‟s position (in profits, in acceptance by
society) and to protect or improve their positions in their firms
(self – interest). The more consistent the goals are, the easier it
is to make buying decisions (Armstrong and Kotler, 2004).
SMEs are important elements in the economy now, and in
order to keep gaining competitive advantages, they should keep
pace with the technologies changes. They must respond
quickly to the changes provided by the internet technologies
and must be eager to adopt new business tools. The present
study focused on the online buying behaviour of SMEs who are
in the trading and service businesses. Specifically it attempts to
answer the following questions: Do website characteristics,
product characteristics, and supplier‟s characteristics influence
the SMEs online buying behaviour? Do online buying
experiences influence the SMEs online buying behavior?
This study will help SMEs to conceptualize effective
strategies using the technology to capture greater percentage of
the market that will lead in realizing their organizational
mission and objectives. Moreover, this is important because it
enables them to understand and predict the relevance of online
buying in managing their business. Online buying can be an
opportunity for them to compare and evaluate product quality
as well as cost before making any deal at their own comfort
and convenience. Through the internet, SMEs can constantly
review and analyse the market trends in order to be
competitive. They can easily look for product specifications,
© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014
20
compare prices, have a broader selection of products and
services, and can make purchases round the clock. A well –
structured buying practices and procedures provide a greater
possibility of meeting the demands of the customers, thus, it
will capture greater percentage of the market and will lead in
realizing their mission and objectives. Therefore, it is important
to recognize the numerous factors affecting the online buying
behaviour of SMEs.
Conceptual Model
This study proposed a conceptual model to provide a
comprehensive understanding on the factors that affect the
online buying behaviour of SMEs.
Online
Website Shopping
Characteristic experiences
s
Online
Buying
Behaviou
r of
SMES
Product
Suppliers‟
Characteristics
characteristics
The model shows the factors influencing the online
buying behaviour of SMEs. In this model, the website
characteristics, product characteristics, suppliers‟
characteristics, and their experiences in online buying affect
their buying behaviour. Their behaviour is turned into
responses as regards product or service choice, supplier choice,
order quantities, delivery, and payment terms. According to
(Armstrong and Kotler, 2004), SMEs are subject to many
influences when they make their buying decisions. However,
each of them has its own objectives, policies, procedures,
structure, and systems; therefore, they must know these
organizational factors as thoroughly as possible.
2. METHODOLOGY
Descriptive method of research was used in the study.
Questionnaire was used as a tool in gathering data. A panel of
experts examined the initial questionnaire for content validity.
To test its reliability, pilot testing was done. Twenty SME
owners/managers were randomly chosen as respondents prior
to data collection. The data gathered were treated using the
reliability analysis test (Cronbach Alpa) with a result of 0.932.
Omissions and modifications were made to some of the items
on the questionnaire based on their feedback. Most of the items
in the final version of the questionnaire were measured on a 5-
point Likert-scale ranging from 1 (strongly disagree) to 5
(strongly agree).
Journal of Global Business 2014
Farida F. Tallud 21

The respondents of the study were 129 SME

owner/managers who browsed, reviewed and purchased
products or services online. They were chosen based on the list I find no pressure from sales people when… 21.7
of registered SMEs from 2007 – 2011 provided by the DTI. I find convenience in the site 46.5
The SME-respondents are into trading and service businesses the site is acces sible and it saves time 58.9
and have an asset size of Ph300, 000 and above. 31
the site allows buyers to review the…
A purposive sampling procedure was used in the study.
the site allows buyers to access to… 27.9
Questionnaires were personally distributed by the researcher in
the site provides availability of… 28.7
the three component cities in Region 2, Philippines namely
Tuguegarao, Cauayan and Santiago. Ilagan city was not the site leads me to find easily the… 24
included in the study since it is a newly approved city in the the pages should is easy to download 22.5
region. For the data analysis, frequency and mean were the individual pages is designed properly 4.7
utilized. the site is organi zed and not confusing 12.4
the site should not be annoying 14
3. RESULTS AND DISCUSSION 0 10 20 30 40 50 60

This section presents the results of data gathered in accordance Percentage

with the general problem of the study.

The graph shows that there are more SMEs (58.9%) who
Website characteristics that influence the online buying buy online where the site is accessible and it saves their time.
behaviour of SMEs Their convenience (46.5%) in buying online is also a factor
they considered in choosing a website. They are also interested
Figure 1. Websites used for online shopping with websites that allow them to review the recommendations
of experts (31.0%), provides information (28.7%), access to
60 opinions of other customers (27.9%) and leads them to find
easily the products they are looking for (24.0%). On the other
50 hand, they are not very particular whether the sites are
annoying (14.0%), organized/not confusing (12.4%), and
Pe rcentage

40
whether individual pages are properly designed (4.7%).
30 Website quality and usability have a direct, positive effect
20 on online purchase intention of customers (Beneke, Scheffer &
Du, 2010). Online buying is influenced by web site attributes
10 such as convenience and flexibility (Mohammad, H., et. al.,
0
2012). Moreover, website quality and usability have a positive
ebay.co amazon Ayosdi lazada. sulit.co store/su Other effect on a customer‟s intention to buy online (Biz Community,
m .com to.com com.ph m pplier‟s website
website s 2010). Usability is known to be an important quality criterion
Percentage 34.9 10.1 17.8 3.9 35.7 50.4 7 of information systems and websites (Constantinides, E.,
2004). Seemingly, developing a user-friendly web sites is
The graph indicates that SMEs prefer to buy in the essential (Biz Community, 2010).
store/supplier‟s website (50.4%) than in other online stores. Customers like to buy online, because it saves time and by
However, they also consider buying in sulit.com (35.7%) and rapid access they get information quickly. It is the easiest way
in e-bay.com (34.9%) considering that these two are to purchase products. Buying online is said to be easy, fun, and
established and known in the market. Nonetheless, few of them time saving (Cheng, Han, & Song, 2011). Anent to this,
buy in lazada.com (3.9%) taking into account that lazada is still increased convenience has a direct, positive effect on online
new in the market. purchase intention of customers. Product information and
In a survey conducted by the Philippine Daily Inquirer product collections for coordination were essential (Allen, E.,
(2013), result showed that the most visited website is eBay and Fjermestad, J., 2000) because customers might rely on
followed by Sulit.com. The preference for local sites is due to information provided or the visual depiction on the screen
fear of hidden charges, concerns about security and speed of (Park and Stoel, 2005). Reviews and recommendations are
delivery, and the availability of most of the items in local sites. important factors in influencing purchase decision online. With
such products, buyers are not only able to browse through a
Figure 2. Website characteristics larger selection on the web sites, but are also able to
conveniently obtain reviews and recommendations that are
usually unavailable in offline stores (Chang, J., 2007).
However, in a study conducted by (Konradt et al., 2003)
he discovered that confusing and disorganized pages, as well as
misleading system navigation, have an adverse effect on online
purchasing.

© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014 Journal of Global Business 2014
Online Buying Behaviour of SMEs 22

Product characteristics that influence the online buying

behavior of SMEs

Quality of products for sale 96.9

Figure 3. Types of products/services purchased online
Variety of products for sale 3.1
Mac hines/equipment 18.6 Availability of product/service 22.5
Services (insurance, legal, etc.) 4.7
Raw m ate rials 9.3 Price comparisons of products 78.3
Elec tronics/Gadgets 41.9
Stor e vehicle 3.9 Product specifications 71.3
Computer equipm ent 25.6
Stor e furnitur e and fixtur es 7.8 0 20 40 60 80 100
Travel (airline s & hotels) 46.5
Stor e mer chandise 22.5
Office supplies 10.9 Percentage
Softwar e 26.4
0 10 20 30 40 50
The graph indicates that SMEs purchased online because
Percentage of the quality of the products offered (96.9%). They are also
influenced to purchase online because they can able to compare
The graph reveals that SMEs frequently buy airline ticket prices (78.3%) and review the product specifications (71.35).
Nonetheless, the availability of products/service (22.5%) and
(travel) (46.5%) online. They also prefer to buy
variety of products (3.1%) offered online drew a minimal
electronics/gadgets (41.9%), software and computer equipment
attention among SMEs.
(25.6%) online since it provides them accurate specifications
There are many perceived benefits why most of the
than in a storefront. Few SMEs purchased services (insurance)
customers nowadays prefer to buy online, it provides broader
(4.75) online because of its intangibility. Store vehicle (3.9%)
selection, competitive pricing and greater access to information
is also least purchased online because they cannot be assured of
(Betterham, B., 2009). In the study conducted by (Kwek, Tan,
the quality and reliability.
& Lau, 2010) revealed that quality orientation, brand
From the study conducted by (Beneke, Scheffer & Du,
orientation and convenience orientation are positively related
2010) , the most frequently purchased item online was found to
to the customer online purchase intention. Likewise, the
be airline tickets. On the other hand, clothing, electronics,
internet offers variety of products that are simply impossible in
computer software, health and grooming products, and home
traditional stores.
ware products drew minimal interest from respondents. In
The Japanese, in particular, prefer buying online because
addition, (Kuo-Kuang Chu and Chi-Hua Li, 2008) found that
it allows them to compare prices easily (Morales, I., 2010).
the most popular product types purchased online are apparels,
Companies used the internet to take feedback and also to
beauty care products, and computer peripherals.
compare prices, to get product features and after sale service
With the popularity of smartphones and tablets, many are
facilities (Shergill and Chen, 2005). In addition, when potential
going online to browse for products and services. Digital
buyers recognize a need for some merchandise or service, they
content was the most browsed item on mobile phones, followed
go to the internet and search for need- related information.
by personal electronics and household electronics (Garcia, C.,
They can evaluate alternatives and choose the one that best fits
2013). Data showed that respondents are likely to buy
their criteria for meeting that felt need (Li and Zang, 2002).
computer software online in the next three to six months.
Buying online is more convenient to do as compared to
Mobile phones are next on the list; computer hardware; apparel
traditional buying (Yousaf et.al. 2012). It allows quick price
and accessories; and travel reservations (Ordinario, C., 2012).
comparisons and fast access to product information (Kuo-
However, in the study conducted by (Visa e-Commerce
Kuang Chu and Chi-Hua Li, 2008). Besides it has become an
Consumer Monitor Research, 2012), most of the online
important consideration because customers want to get items
purchases made are travel, fashion and personal electronics.
quickly without bargaining on price or quality and can order
Non-consumer packaged goods (CPG) such as electronics,
amazing variety of products (Yomnak, T., 2007). Furthermore,
clothing and travel are reported as the highest penetration for
online buyers are most satisfied with the variety of
digital buying intentions (Ordinario, C., 2012).
brands/products (Ordinario, C., 2012). In buying online,
Figure 4. Determining factor in selecting a product/service individuals can seek and find items that are not available in the
storefront (The Philippine Star, 2013). However, (Samadi and
Yaghoob-Nejadi, 2009) found that buyers are unwilling to buy
online because of a perceived high risk about the quality of the
product.
Purchasing online is determined positively by satisfaction
with the online retailers‟ performance dimensions like product
prices, product quality, and customer service (Abdul-Muhmin,
2011). Besides, online buyers are not just buying same stuff for
less money but they are buying different stuff. They are much
more likely to be getting exactly what they want and to
discover things that they did not know about (Postrel, V.,

© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014 Journal of Global Business 2014
Farida F. Tallud 23

2004). Thus, it can be concluded that product type have an security/privacy. Moreover, shipping speed, consumer reviews,
impact on online purchase intention (Biz Community, 2010). retailer reputation, and delivery time flexibility are all taken
into account by customers in purchasing online. Other key
factors include reasonable pricing, free and fast delivery, and a
Suppliers’ characteristics that influence the online buying wide range of products from which to choose. As to why
behavior of SMEs certain online stores become customer favorites, reasons given
are product, trust, and fast/reliable delivery (Ordinario, C.,
Figure 5. Suppliers‟ characteristics 2012).
The level of consumer trust had a significant effect on
customer repurchase intention. Trust in the company‟s website
Offer higher cost of the product 42.6 influences repurchase intention and to spread positive word-of-
Complex transactions in purchasing… 45 mouth about online retailing (dos Santos and Fernandes, 2011).
Trustworthiness of suppliers 89.1 Consequently, (Belanger, Hiller and Smith 2003) discovered
Location of store 6.2 that trust can be a barrier to the adoption of online buying.
Eas e in returning products/items 80.6 Proper complaint handling in online purchasing will have a
Offer good quality of products 96.9
positive impact on the buyer‟s trust in the company‟s site and
Security of identity of purchase 79.8
Offer reasonable prices 85.3 in online retailing. Subsequently, (Samadi and Yaghoob-
Ensure security of card trans actions 94.6 Nejadi, 2009) found that customers are unwilling to buy online
Provide standard product s pecifications 90.7 because of a perceived high risk about the payment methods,
Privacy of the information 79.1 delivery options, and information content. They tend not to
Provide guarantees and warrantees 91.5 buy online because they are not sure whether the ordered
Deliver goods purchased 92.2 merchandise will be delivered or not (Mohammad, H., et. al.,
Reputation of the company 88.4 2012). So, the greater the perceived risk associated with the act
0 20 40 60 80 100 of buying online, the lower the future purchasing intention
from the internet (Samadi and Yaghoob-Nejadi, 2009).
Not all customers are participating in online transactions
Percentage as part of the internet boom; they are still concern with security
and privacy factor (Shim et. al., 2001, Yousaf et.al., 2012).
Customers are less interested to buy online due to high
The graph reveals that SMEs considered good quality of perceived cost like extra shipping and delivery charges.
products (96.9%), security of card transactions (94.6%), Accordingly, marketers should minimize the risks that involve
delivery time (92.2%), guarantees and warrantees (91.5%), safety of card transactions, quality of product delivered and
standard specifications of the products (90.7%), trustworthiness personal data (Yousaf et.al., 2012 ).
of vendors (89.1%), reputation of the company (88.4%),
reasonable prices (85.3%), and ease of returning product/items Online buying experiences of SMEs
(80.6%) which are very important factors that affect their
online buying behavior. However, location of the store (6.2%) Figure 6. Frequency of Website Visits where SMEs Normally
has a little effect on their decision to purchase online. What is Shop
important to them is the speed delivery of the products
purchased. 40
Satisfaction in buying online can be affected by the 35
payment methods, speed and security of transactions as well as
30
delivery time (Abdul-Muhmin, 2011); ease of check -out,
Pe rcentage

variety of brands/products, and online tracking ability 25

(Ordinario, C., 2012). Accordingly, (Thompson, T., 2006) 20
found that buyers expect online stores to provide sufficient 15
information and ensure security of transaction and personal
10
information.
Delivery related risk may prove to be one of the greatest 5
deterrents to the widespread adoption of buying online 0
2-3 4-10 11-20 21 or more
(Swaminathan, V., et al., 1999). In addition, searching for once/mon
times/mon times/mon times/mon times/mon
information on the internet may help the buyer to reduce Percentage 15.5 36.4 30.2 11.6 6.2

uncertainty (Beneke, Scheffer & Du, 2010). Henceforth,

marketers must provide a good service to buyers to build
positive experience in purchasing online (Samadi and The graph depicts that SMEs usually visit the websites of
Yaghoob-Nejadi, 2009). Eventually, location becomes the store where they normally shop 2 to 3 times a month
irrelevant in the context of buying online; the increased (36.4%). A greater number of SMEs tend to go to the web sites
convenience of placing orders at any time of the day becomes a they have used before. Although few of them (6.2%) visit the
main motivating factor in buyer‟s online purchasing intention website where they normally shop more than 21 times.
(Swaminathan, V., et al., 1999). In the online shopping environment, buyers use their own
Customers derive enjoyment in buying online from an experiences to evaluate product information, purchase
assessment of fulfillment/reliability, customer service and payments, services, risks, privacy and warranty. Majority of

© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014 Journal of Global Business 2014
Online Buying Behaviour of SMEs 24

them tend to go to the web sites they have used before About a quarter make 3 -5 purchases, and the other quarter
(Mathwick, Malhotra, and Rigdom, 2001). Previous experience make 6 or more purchases (Ordinario, C., 2012).
with internet purchasing positively influenced the customer‟s In the study conducted by Neilsen (2012), customers buy
overall attitude, as well as beliefs concerning internet online „sometimes‟ rather than „frequently‟. While most
purchasing. Customers‟ prior internet experience is a strong Filipinos who are into "online buying" use the Internet for
determinant of their online buying behavior (Yoh, E., et. al., product search or to look for online deals, but only half of these
2003). Buying experiences and process experiences of online "online buyers" actually make purchases.
seem to influence future purchase intentions and their
experiences will continue to affect their future decision-making Figure 8. Experience in transacting business online
(Schiffman and Kanuk, 2006, Lohse, Bellman, and Johnson,
2000).
People with abundant online buying experiences are more
capable in handling perceived risks of buying online (dos
Santos and Fernandes, 2011). Comparing with inexperienced
buyers, experienced online buyers make more purchases
(Goldsmith, and Goldsmith, 2002). As buyers acquire more
online buying experiences, they develop confidence that
facilitates more ambitious buying (Seckler, 2000). If buyers
have satisfactory and positive experiences this will encourage
future online buying. However, if they have negative
experiences in the past, they will probably reduce buying The above mean values are based on a 4 point scale where
online in the future (Monsuwe, Dellaert, and Ruyter, 2004). Never = 4; Always = 1
Therefore, marketers must provide a good service to online
buyers to build positive online buying experience (Samadi and
Yaghoob-Nejadi, 2009). The graph shows that SMEs have a good experience in
buying online. With a mean value of (3.84), this shows that
most SMEs never experienced credit card theft. Apparently, it
also indicates that most SMEs never experienced returning
merchandise purchased online (3.5). However, some of them
experienced contacting customer service when purchasing
Figure 7. Frequency of online purchasing online (2.91).
Nearly two - thirds (62%) of online buyers has
experienced returning products purchased online (Ordinario,
70 C., 2012). Additionally, they have certain expectations from
online stores such as being easy to contact, provide sufficient
60
information and ensure security of transaction and personal
50
Percentage

information (Thompson, T., 2006).

40 Returns are important part of online purchasing;
30 customers are looking for the returns policy prior to making a
20
purchase. Having an easy - to - find returns policy will enhance
the customer experience and will reduce the number of
10 inbound customer service calls. A lenient and clear returns
0 policy is likely to lead to recommendations and repeat business
1-3 4-6 7 times
from online buyers. Clearly, good returns policies are great
times times
ways to increase customer loyalty (Ordinario, C., 2012). Other
Percentage 0.8 66.7 32.6
suggestions to improve online buying experience include
protecting buyers from unscrupulous websites and strictly
As gleaned in the graph, most SMEs purchased online 4-6 adhere to delivery timelines (Philippine Daily Inquirer, 2013).
times in a month (66.7%) and very few of them buy 1-3 times The fear of losing money and financial details, non-
(1.6%) in a month. A survey conducted by (Ordinario, C., delivery of order, probability of disclosing credit card
2012), only 34% of internet users in the Philippines made information according to (Samadi and Yaghoob-Nejadi, 2009)
actual purchases online in the past month. This was has negative effect on attitude toward online buying. Further,
significantly lower than the 62% that was recorded in the Asia the prime reason for hesitation to buy online is high perceived
Pacific region and the 49% recorded globally. Aditionally, risk that involve safety of credit card data (Yousaf, U., et.al.,
(Pastore, V., 2000 and Yousaf, U., et.al., 2012), found that 2012 ).
respondents having online buying experiences admit that they
do half of their shopping online, otherwise most of them admit
that they do it very little. About 75 million people, or one - 4. CONCLUSIONS
third of the total Internet population, buy goods online to be
shipped to them over the course of a quarter. Of those, about Online buying behaviour of SMEs is influenced by the
one-third make 1 transaction and half make 1-2 transactions. website characteristics. Therefore, website quality should help
build customer relationships because SMEs prefer to buy in a
website which is accessible, convenient, saves their time,

© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014 Journal of Global Business 2014
Farida F. Tallud
allows them to review the recommendations of experts,
provides information, and access to opinions of other
customers.
SMEs buy online because of the quality of the products
offered; they can compare prices and review the product
specifications. Therefore, online stores should provide SMEs a
high level of convenience and provides them a broader
selection of products/services, competitive pricing and access
to information.
SMEs choose suppliers who offer good quality of
products, ensure security of card transactions, deliver goods on
time, offer guarantees and warrantees, provide product
specifications, keep good company reputation, can be trusted,
offer reasonable prices, assure security of purchase, easily
follows return policies and privacy of information.
SMEs purchased online but not too often. However, they
believed that online buying will save their time, money and
effort, thus reduce their purchasing costs. SMEs contact
customer service when purchasing online to be assured of the
product specifications as well as security of transactions
because some experienced card theft. They also considered
return policy as important part of online buying because this
will give them a feeling of security that what they are buying is
guaranteed.
6. RECOMMENDATIONS/IMPLICATIONS
With the emergence of enabling technologies, SMEs
today are facing challenges in their business strategies in order
to remain competitive. More and more customers are evolving
and SMEs must respond quickly to the changes brought about
by the technology. Therefore, SMEs should continuously
embrace online buying as a business tool to allow many
opportunities in improving their services, which will eventually
increase their sales and profits. This will be an avenue for them
to explore new suppliers and make comparison in terms of
quality as well as cost which can be done with their comfort
and convenience.
On the other hand, online traders must create a website
that provides information regarding their products and services
which allow SMEs to access to opinions of other customers
and experts to help them in their business decisions to further
their business‟ position in the market. They should improve
customer service and make buyers feel confident and safe in
their online transactions to encourage more online buyers.
5. ACKNOWLEDGMENTS
The researcher sincerely expresses her deep appreciation
to the following persons who helped her in accomplishing
this study.
Dr. Delilah B. Valencia, for her invaluable support; Dr.
Emmanuel James P. Pattaguan, for his advice and
encouragement; Dr. Nelia Z. Cauilan, Dr. Pyrene T. Quilang,
Dr. Rovel C. Siazon, and Mrs. Mary Jean Mendezabal for
their technical assistance and suggestions to improve this
study
Dr. Angela Abiqui, my adviser, for her guidance and
suggestions and above all to the Almighty God for giving me
wisdom, courage and strength to pursue this study.
© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014
25
6. REFERENCES
Abdul-Muhmin, A. G. (2011). Repeat purchase intentions in
online shopping: The of satisfaction, attitude, and online
retailers‟ performance.
Allen, E., & Fjermestad, J. (2000). E-Commerce strategies:
The manufacturer retailer consumer relationship,
proceedings of the 5th Americas conference on
information systems.
Armstrong, G., & Kotler, P. (2004). Marketing paper presented
at the 5th ed., Prentice-Hall, Englewood Cliffs. pp.153-4.
Awoyelu, I. O. Awoyelu, F. (2010). Development of on-line
shopping mart system for developing countries.
Beneke, J., Scheffer, M., & Du, W. (2010). Beyond price – an
exploration into the factors that drive young adults to
purchase online. International Journal of Marketing
Studies, South Africa Vol.2, No.2
Belanger, F., Hiller, J.S., & Smith, W.J. (2003).
Trustworthiness in electronic commerce: the role of
privacy, security, and site attributes. The Journal of
Strategic Information Systems
Betterham, B. (2009). Why I prefer to shop online retrieved
2013
Biz Community. (2010). MasterCard reveals South African
online shopping habits. [Online] Available:
http://www.bizcommunity.com/Article/196/168/46047.ht
ml.
Chang, . (200 ). nline Shopping dvantages over the
offline alternative www. arraydev. com/commerce
/jibc/0311-0 .htm
Chao-Min, C., Hua-Yang, L., Szu-Yuan, S., Meng-Hsiang H.
(2009). Understanding customers' loyalty intentions
towards online shopping: An integration of technology
acceptance model and fairness theory.
Cheng, D., Han, J., & Song, Y. (2011). Is value sufficient?
Empirical research on the impact of value and trust on
intention. Journal of Software, Vol 6, No 1 124-131
Constantinides, E. (2004). Influencing the online consumer‟s
behavior: The Web experience. Internet Research
dos Santos, C. P., & Fernandez, D. V. der H. (2011).
Perceptions of justice after recovery efforts in internet
purchasing: The impact on consumer trust and loyalty
toward retailing sites and online shopping in general.
Brazilian Administration Review
Garcia, C. R. (2013). Why more Filipinos are shopping online,
ABS-CBNnews.com
Journal of Global Business 2014
Online Buying Behaviour of SMEs 26

Goldsmith, R. E. and Goldsmith, E. B., (2002). Buying apparel

over the Internet. Journal of Product & Brand Philippine Daily Inquirer. (2013). More Filipinos now
Management, Vol. 11, No. 2, pp. 89-102. shopping online

Haque, A., Sadeghzadeh, J., & Khatibi, A. (2006). Identifying Postrel, V. (2004). Economic scene: Selection ranks above
potentiality online sales in Malaysia: A study on customer price among the benefits of shopping online
relationships online shopping. J. Appl. Bus. Res. 22(4):
119-130 Samadi, M., & Yaghoob-Nejadi, A. (2009). A Survey of the
effect of consumers‟ perceived risk on purchase intention
Jacobs, B., & de Klerk, H. M. (2010). Online apparel shopping in e-shopping. Business Intelligence Journal
behaviour of South African professional women: The role
of consumers' apparel shopping scripts Santana, S., & Loureiro, S. (2010) Assessing benefits and risks
of online shopping in Spain and Scotland
Konradt, U., Wandke, H., Balazs, B., & Cristophersen, T.
(2003). Usability in online shops: scale construction, Schiffman, L. G., & Kanuk, L. L., (2006). Consumers
validation and the influence on the buyers‟ intention and Behavior, Prentice Hall, pp. 1-656.
decision. Behaviour and Information Technology
Seckler, V., (2000). Survey says Web apparel buys doubled.
Kuo-Kuang, C., & Chi-Hua, L. (2008). A Study of the effect of Women‟s Wear Daily, Vol. 12, uly, pp. 20.
risk-reduction strategies on purchase intentions in online
shopping. International Journal of Electronic Business Shabazz, D. (2004). Toward a better understanding of e-
Management, Vol. 6, No. 4, pp. 213-226 marketing strategy: past and present. Vol. 26 Issue 2,
p117-130, 14p
Kwek, C. L., Tan, H. P., & Lau, T. C. (2010). Investigating the
shopping orientations on online purchase in the e- Shergill, G. S., & Chen, Z. (2005). Webbased shopping:
commerce environment: A Malaysian Study Consumers` attitudes towards online shopping in New
Zealand. Journal of Electronic Commerce Research, 6 (2),
Li, N., & Zhang, P. (2002). Consumer online shopping 79-94.
attitudes and behavior: An assessment of research
proceedings of eight American conferences on Shim, S., Eastlick, M. E., Lotz, S.L., & Warrington, P. (2001).
information systems, p. 508-517. An online prepurchase intentions model: The role of
intention to search. Journal of Retailing
Lin, L. M., Hsia, T. L. (2011) Core capabilities for
practitioners in achieving e-business innovation Swaminathan, V., Lepkowska-White, E., & Rao, B.P. (1999).
Computers Vol. 27 Issue 5, p1884-1891, 8p Browsers or buyers in cyberspace? An investigation of
factors influencing likelihood of electronic exchange.
Mathwick, C., Malhotra, N. K., & Rigdom, E., (2001). Journal of Computer-Mediating Communication
Experiential value: Conceptualization measurement and
application in the catalog and Internet and catalog The Philippine Star. (2013). Philam Life offers insurance for
comparison. Journal of Retailing, Vol. 77, No. 1, pp. 39- online shoppers
56.
Thompson, Teo S.H. 2006 To buy or not to buy online:
Mohammad, H. M. J., et. al. (2012). An analysis of factors adopters and non-adopters of online shopping in
affecting on online shopping behavior of consumers. Singapore.
International Journal of Marketing Studies; Vol. 4, No. 5;
2012 Yoh,E., Damhorst, M. L., Sapp, S., & Laczniak, R. (2003).
Consumer adoption of the Internet: the case of apparel
Monsuwe, T. P., Dellaert, B. G. C. and Ruyter, K. D., 2004, shopping. Psychology and Marketing
“What drives consumers to shop online? A literature
review,” International ournal of Service Industry Yomnak, T. (2007). Perceptions of service quality and
Management, Vol. 15, No. 1, pp. 102. customer satisfaction of on-line shopping services.
Retrieved 2013 from books.google.com
Morales, I. (2010). Survey says Filipino online shoppers
growing, INQUIRER.net Yörük, D., Dündar, S., Moga, L.M. & Neculita, M. (2011).
Drivers and attitudes towards online shopping:
Ordinario, C. (2012). Nielsen Philippines. Filipinos among Comparison of Turkey with Romania BIMA Publishing
most active online bargain seekers in Asia Communications of the IBIMAhttp: //www.
ibimapublishing.com/journals/CIBIMA/cibima.html
Park, J., and Stoel, L. (2005). Effect of brand familiarity,
experience and information on online apparel purchase. Yousaf, U., Altap, M., Sarwar, N., & Shah, S. A. H. (2012).
International Journal of Retail & Distribution Hesitancy towards online shopping: A study of Pakistan
Management consumer. Management & Marketing.

© Association of Training Institutions for Foreign Trade in Asia and the Pacific 2014 Journal of Global Business 2014