Boldios 8
II. REVIEW OF RELATED LITERATURE AND CONCEPTUAL
FRAMEWORK
This chapter presents the existing related literature and studies that will address the
nature, concepts, ideas, data, and conclusions from various works developed from the past
years to the present. The following information will serve as a guide for the researcher and will
help in supporting the rationale of the current research. It will also elaborate on the relevant
information regarding the state of digital and e-commerce in the country, social media
marketing, variety-seeking behaviour, and Senior High School students. This chapter will also
discuss the conceptual framework, hypotheses, and definition of terms, which will provide an
in-depth explication on the relationship between variables and key terms for further
comprehension.
A. Digital Marketing and E-Commerce in the Philippines
With the integration of digital technology into the business environment, businesses
can have a better understanding of their costumer’s behaviour, decision-making process, and
word-of-mouth recommendations. The rise of digital technology paves the way to digital
marketing, a new approach to seeking out and engaging with consumers (Gupta & Davin 1).
Digital marketing uses digital media (social media) such as Facebook, Youtube, Instagram, and
Twitter as tools to create relationships, communicate and collaborate with the consumers, and
disseminate concepts and ideas in the virtual community. With the use of digital marketing and
digital channels, businesses are able to scope and segment their specific target market, and they
are also able to optimize their digital tools to measure the attitudes of the market. With the
46.9% growth of internet users in the Philippines, businesses are continuing to transition to
digital marketing to reach an even broader market for potential customers (World Bank;
Gonzales). The digital marketing landscape is exponentially growing as more Filipinos engage
, Boldios 9
in digital channels. This will be a good market opportunity for the local businesses and offshore
companies, and if businesses can utilize it effectively, they can penetrate the Philippine market.
As stated by San Juan III:
“Philippine e-Commerce stood at USD 1 billion in 2016, with a growth forecast of
16% year on year. In 2017, the actual figure was at USD 1.23 billion, growing over
22% and beating projections. Following the trend, it was forecasted to grow further
to USD 2.055 billion. By 2020, we crossed over to USD 4 billion, again beating
expectations by 100% in e-Commerce alone.”
Figure 1. Gross Merchandise Value of Philippines 2020
(https://www.truelogic.com.ph/wp-content/uploads/2021/05/gross-768x670.png)
The development of digital channels creates avenues for businesses to turn digital
audiences into digital consumers. The e-Commerce growth in the Philippines especially
increased during the COVID – 19 long term lockdowns as Filipino users shifted to online
media. With the recent significant growth in the Philippines’ electronic commerce e-Commerce
intellectual property rights, e-commerce websites, online payment, mobile e-Commerce,
, Boldios 10
digital marketing, and social media also expected sufficient development in recent years
(International Trade Administration).
B. Role of Social Media Marketing
Wikström and Wigmo conclude in their paper the most common benefits of social
media usage (36 – 37):
1. Improves Brand Awareness and Reputation. Investing resources in social media marketing
and engaging with the market can increase awareness among potential consumers. If used
effectively, it will also boost the reputation and goodwill of the firm as social media marketing
plays a significant role in advertising. If a business is able to provide assistance and
recognizable benefits, even if it was not directly addressed, it will build trust and recognition
with the customers.
2. Opportunity to Find and Help Dissatisfied Customers at an Early Stage. Extensive brand
attention on the web and social media is not always beneficial to a business. When dissatisfied
customers provide feedback to the brand, it may result in a loss in sales and reputation.
Therefore, effectively monitoring and interacting with the customers is important to prevent it
from happening. Negative feedbacks may turn into positive ones if a business is able to respond
efficiently and constructively. Efficient services, customer care, and proper feedback are
required to increase the brand value.
3. Improves Customer Relations. Through the effective use of social media marketing, satisfied
customers can promote a business through word of mouth. Through this, a business can
effortlessly advertise and expose its products and services to potential customers. This will
improve customer relations as it covers a larger audience at a lower cost.
II. REVIEW OF RELATED LITERATURE AND CONCEPTUAL
FRAMEWORK
This chapter presents the existing related literature and studies that will address the
nature, concepts, ideas, data, and conclusions from various works developed from the past
years to the present. The following information will serve as a guide for the researcher and will
help in supporting the rationale of the current research. It will also elaborate on the relevant
information regarding the state of digital and e-commerce in the country, social media
marketing, variety-seeking behaviour, and Senior High School students. This chapter will also
discuss the conceptual framework, hypotheses, and definition of terms, which will provide an
in-depth explication on the relationship between variables and key terms for further
comprehension.
A. Digital Marketing and E-Commerce in the Philippines
With the integration of digital technology into the business environment, businesses
can have a better understanding of their costumer’s behaviour, decision-making process, and
word-of-mouth recommendations. The rise of digital technology paves the way to digital
marketing, a new approach to seeking out and engaging with consumers (Gupta & Davin 1).
Digital marketing uses digital media (social media) such as Facebook, Youtube, Instagram, and
Twitter as tools to create relationships, communicate and collaborate with the consumers, and
disseminate concepts and ideas in the virtual community. With the use of digital marketing and
digital channels, businesses are able to scope and segment their specific target market, and they
are also able to optimize their digital tools to measure the attitudes of the market. With the
46.9% growth of internet users in the Philippines, businesses are continuing to transition to
digital marketing to reach an even broader market for potential customers (World Bank;
Gonzales). The digital marketing landscape is exponentially growing as more Filipinos engage
, Boldios 9
in digital channels. This will be a good market opportunity for the local businesses and offshore
companies, and if businesses can utilize it effectively, they can penetrate the Philippine market.
As stated by San Juan III:
“Philippine e-Commerce stood at USD 1 billion in 2016, with a growth forecast of
16% year on year. In 2017, the actual figure was at USD 1.23 billion, growing over
22% and beating projections. Following the trend, it was forecasted to grow further
to USD 2.055 billion. By 2020, we crossed over to USD 4 billion, again beating
expectations by 100% in e-Commerce alone.”
Figure 1. Gross Merchandise Value of Philippines 2020
(https://www.truelogic.com.ph/wp-content/uploads/2021/05/gross-768x670.png)
The development of digital channels creates avenues for businesses to turn digital
audiences into digital consumers. The e-Commerce growth in the Philippines especially
increased during the COVID – 19 long term lockdowns as Filipino users shifted to online
media. With the recent significant growth in the Philippines’ electronic commerce e-Commerce
intellectual property rights, e-commerce websites, online payment, mobile e-Commerce,
, Boldios 10
digital marketing, and social media also expected sufficient development in recent years
(International Trade Administration).
B. Role of Social Media Marketing
Wikström and Wigmo conclude in their paper the most common benefits of social
media usage (36 – 37):
1. Improves Brand Awareness and Reputation. Investing resources in social media marketing
and engaging with the market can increase awareness among potential consumers. If used
effectively, it will also boost the reputation and goodwill of the firm as social media marketing
plays a significant role in advertising. If a business is able to provide assistance and
recognizable benefits, even if it was not directly addressed, it will build trust and recognition
with the customers.
2. Opportunity to Find and Help Dissatisfied Customers at an Early Stage. Extensive brand
attention on the web and social media is not always beneficial to a business. When dissatisfied
customers provide feedback to the brand, it may result in a loss in sales and reputation.
Therefore, effectively monitoring and interacting with the customers is important to prevent it
from happening. Negative feedbacks may turn into positive ones if a business is able to respond
efficiently and constructively. Efficient services, customer care, and proper feedback are
required to increase the brand value.
3. Improves Customer Relations. Through the effective use of social media marketing, satisfied
customers can promote a business through word of mouth. Through this, a business can
effortlessly advertise and expose its products and services to potential customers. This will
improve customer relations as it covers a larger audience at a lower cost.
