Trust and savings are driving forces behind Filipino online shopping behavior
Updated: May 19
28 April 2023, Manila, Philippines - A nationwide survey conducted by tech-enabled market research firm, Agile Data Solutions Inc., revealed that trust and savings are the main factors influencing Filipino consumers' online shopping behavior.
Conducted through the Hustle PH mobile app, Agile Data Solutions surveyed a random sample of 300 respondents across the country, taking into account gender, residence, age, and economic status, to gain insights into Filipino consumer behavior trends.
The study found that 71% of online shoppers prefer cash on delivery (COD) as their primary payment method because they lack trust in the products delivered. The gap between COD users and those choosing payment centers/e-wallets (14%) or in-app wallets such as ShopeePay (6.5%) and Lazada wallet (6%) underscores consumer distrust in the online shopping experience.
According to Jason Gaguan, founder and Chairman of Agile Data Solutions, COD payments provide a sense of security for consumers, allowing them to withhold payment until they receive and inspect the item. Negative experiences, such as receiving counterfeit or damaged products and falling prey to fake sellers, also discourage potential shoppers and aggravate consumer distrust.
Twenty-eight percent of the respondents echoed this sentiment, identifying product authenticity and product quality as their biggest concerns when shopping online. Other respondents consider the safety of packaging (17%) and duration of delivery time (15%) as the second and third most important issues. Consequently, shoppers increasingly rely on product reviews to guide their purchasing decisions, seeking reassurance before clicking the checkout button.
Gaguan suggested that online marketplaces should establish clear, efficient, and transparent returns, reimbursement, and warranty policies to address customer distrust. These measures will help minimize negative experiences and demonstrate the platform's commitment to customer satisfaction.
The data also compels online marketplaces to implement customer retention management programs that guide users through their shopping journey and adapt to their life stage within the app to build customer trust, increase retention and even drive organic customer acquisition through referrals, Gaguan added.
Gaguan then further suggested that online marketplaces explore and use advanced AI technologies to detect malicious sellers based on factors such as imagery, pricing, and platform habits, offering a promising avenue to address fake sellers.
In addition to trust, the survey also found that price remains a crucial aspect of Filipino online shopping behavior. A striking 92% of surveyed adults said they were able to save by purchasing essential items online.
Seventy-six percent of respondents prefer online shopping over in-store buying because of vouchers and deals, especially during double-digit sale season, while 34% of respondents like to take advantage of free shipping promos to save money.
The study also showed that many consumers buy familiar, everyday items like diapers and tissue rolls in bulk. These well-known products are popular online and encourage larger purchases when offered in bulk deals. Among the respondents, 50% buy in bulk, with 28% attracted by discount prices and 26% wanting to stock up on essentials. Additionally, 16% mentioned the time-saving benefit of making fewer trips to physical stores.
These findings suggest that online marketplaces serve as catalogs for consumers to canvass and compare deals from different online stores and even physical stores.
According to Gaguan, consumers hunt for deals online for everyday commodities like groceries and pet supplies, as well as popular beauty and health products. Meanwhile, people often search for pricier items online just to gather information, but they usually end up buying them in physical stores.
“This evolving symbiosis is a market movement we continue to track, and we are very excited to see where this all goes,” he added.
You may find more market studies from Agile Data Solutions Inc. in this link.
The market study by Agile Data Solutions Inc. provides physical and online retailers an in-depth understanding of the primary and secondary market drivers of consumers today, as well as a comprehensive outlook of the current market situation and its future projections. Through the Hustle PH app, the firm harnesses the power of crowdsourcing data. This innovative approach supports their mission of democratizing market intelligence providing a reliable stream of insights that attract businesses of all sizes — from Fortune 500 giants to MSMEs and start-ups.
About Agile Data Solutions Inc.
Data-driven decisions at every turn.
The Agile Data Solutions Inc. team is composed of industry experts in the fields of market research, data science, software development, communications research, and field operations. The group banded together in 2020 trying to make sense of the chaotic consumer market brought about by the Covid-19 pandemic - creating consumer behavior models, and has not stopped since. Their endless curiosity has been the glue of the ever-growing Agile Data family as they continue their mission to be storytellers of the ever-evolving market conditions.
About Hustle PH
Democratizing market intelligence.
Hustle PH is revolutionizing the market research landscape by making insights accessible to businesses of all sizes. With a combination of speed, hyper-targeting, and efficient pricing, they cater to Fortune 500 companies, MSMEs, and start-ups. Leveraging the power of the crowd, Hustle PH taps into a vast network of hustlers across the country to provide real-time data for agile and timely decision-making. From trade checks and brand health tracking to answering specific market queries, Hustle PH offers a flexible, scalable, and cost-effective solution for gathering essential market insights.
Some of their high-level clients include Unilever, Smart Communications, Globe, PayMaya, Allianz PNB Life Insurance, Japan Tobacco International, Fonterra, and Unilab. For more information, visit https://hustle-ph.com/ or contact email@example.com.