Track: Modeling and Simulation

Abstract

Due to the COVID-19 pandemic, there is an evident increase of online retail sellers and demand in e-commerce. To which, there is also an increasing number of complaints in regards to price deception and false marketing that affected the sales of online retailers. The researchers aimed to provide a solution by recommending new marketing strategies. This study investigated which among the factors: Customer Reviews, Customer Loyalty, Price, Advertisement, Hedonic Motivation, Rewards, Customer Care, Gender, Education Level, Income Group, and lastly Age Group would have a significant effect on consumer’s online preference. A questionnaire with 51 questions was developed and disseminated through convenience sampling method. 502 responses from Filipino online consumers were acquired and the data was analyzed through Structural Equation Modeling using IBM SPSS Statistics 24 and IBM SPSS Amos. Results showed that Customer Reviews have the most significant effect on consumer’s online preference, followed by Customer Loyalty, Price, Advertisement, and Hedonic Motivation. Through the significant factors found and certain demographic profiles that were relevant, marketing strategies were formed that catered on what influenced online consumers. The results of this study will be beneficial to the online retail sellers during and after the COVID-19 pandemic.