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CHAPTER 1

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale of the Study

An organization or enterprising entity engaging in commercial, industrial, or

professional activity is referred as a business. Businesses can be for-profit or non-profit

enterprises dedicated to a charity mission or a social cause. According to well-known

professors William Pride, Robert Hughes, and Jack Kapoor, business is the organized

effort of individuals to produce and sell to a profit, the goods and services that satisfy

society’s need. The goals of a business will differ depending on the type of business

and the business strategy employed. Regardless of strategy, businesses must provide a

service, product, or good that meets a societal need in some way. Peter Drucker, a

leading management theorist, stated the following: 143 "Since the purpose of business

is to create and keep customers, it only has the two central functions - marketing and

innovation. The basic function of marketing is to attract and retain customers with a

profit. "

One of the most popular businesses nowadays is online selling, this is the

strategies of some business personnel to catch the attention or willingness of customers

to buy. Selling online is indeed one of the great ways to make profits online. In fact, it is

also a great way to widen your target market and grow tour business fast as well

(Anderson, 2012).
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The World Health Organization (WHO) has declared Covid-19 as a global

pandemic on March 11, 2020. This Covid-19 pandemic has hit almost the entire world to

date and is growing quite rapidly in transmission . Lockdowns and quarantine protocols

are implemented by Inter-Agency Task Force (IATF) because of spreading CORONA

Virus, closed businesses affect to supply human wants and needs. Hence, online selling

set priorities where people demand goods and services through Facebook. Online

sellers have been pushed to establish a competitive advantage in the industry of virtual

shopping due to fierce competition (Sultan and Uddin 2011).

Facebook is most popular social media platform among internet users in

Philippines by Pulse Asia. According to Data Reportal, Philippines ranked number 6

with at least 83.9 million active Facebook users which include Argao with the population

of 78,187 according to Philatlas. Facebook data can be compared to a crystal ball to

understand customers (Casteleyn, Mottart, & Rutten, 2009). Facebook communities

where users are members are the most relevant for marketers (Casteleyn, Mottart, &

Rutten, 2009). Through these communities, marketers are able to identify consumer

tastes and likes, which is essential in helping to create market segmentation and

targeting and positioning strategies (Acar & Polonsky, 2007; Treadaway & Smith, 2010).

This information can then be used for direct marketing purposes.

The study will be conducted to determine how Facebook marketing impacts the

sales of the online sellers before and during the COVID – 19 pandemic in selected

barangays in Argao.
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Theoretical Framework

This research is anchored on two theories; The AIDAS Theory of Selling by St.

Elmo Lewis, cited by Abiaziem, (2019) and The Right Set of Circumstances Theory by

Howard, cited by Ahinful and Asomaning, (2017).

First is Right Set of Circumstances Theory by Howard, as cited by Ahinful and

Asomaning, (2017). This theory explains the fact that all the circumstances, which led to

the sales were appropriate for the sales to have taken place. This theory, sometimes

called the “situation-response” theory, had its psychological origin in experiments with

animals and hold that the particular circumstances prevailing in a given selling situation

cause the prospect in a predictable way. If the salesperson succeeds in securing the

attention and gaining the interest of the prospect, and if the salesperson presents the

proper stimuli or appeals, the desired response (that is, the sale) will result. According

to Dhiman (2013) this is a seller-oriented theory: it stresses the importance of the sales

person controlling the situation, does not handle the problem of influencing factors

internal to the prospect, and fails to assign appropriate weight to the response side of

the situation-response interaction. It supports the study because it is based on the

assumption that creating the right set of circumstances will make the buyer to respond

positively and will result great sales. The more skilled salesperson is in handling the set

of circumstances, the more predictable is the response, according to Sharma (2021).

Second is Social marketing theory by Kotler, (1999) as cited in Bulher, (2013)

that the theory underlying the discipline of social marketing is to induce voluntary

change by selling ideas or lifestyle changes that benefit a target audience or society in
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general. In basic marketing, to promote a product there are four initial Ps to consider –

Product, Price, Promotion, and Place. These Ps represent a blend of basic concepts

that provide the background theory. Social marketing subsequently appends four

additional Ps: Public, Partnership, Policy, and Purse-string, enabling the marketing

program to operate effectively (Kar, 2011). According to an advertising consultant, “In

marketing terms, a service qualifies as an intangible product. And successful products

either bring in money or generate usage and provide benefits” (Gierveld, 2006).

Social marketing theory argues that the aim of marketing is to positively influence

the target audience (consumers) by encouraging them to “voluntarily accept, reject,

modify, or abandon a behavior for the benefit of the individuals, groups, or society as a

whole” (Kotler, et al., 2002, qtd in Wymer & Basil, 2014, p. 58). In this regard, the goal

of social marketing is to achieve a greater good for society.

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RIGHT SET OF
CIRCUMSTANCES SOCIAL
THEORY BY MARKETING
HOWARD, AS THEORY BY
CITED BY KOTLER, (1999)
AHINFUL AND AS CITED IN
ASOMANING, BULHER, (2013)
(2017)

FACEBOOK MARKETING: IT’S IMPACT ON

THE SALES OF ONLINE SELLERS DURING
THE COVID-19 PANDEMIC IN ARGAO

FACEBOOK MARKETING
STRATEGIES

Figure 1. Theoretical Framework

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Statement of the Problem

This study aims to determine the impact on sales among selected online sellers

in Argao using Facebook marketing before and during COVID-19 pandemic.

Specifically, it seeks to answer the following questions:

1. What are the products being sold?

2. What are the estimated monthly sales before and during the COVID-19

pandemic?

3. What is the extent of using Facebook marketing as tool to the sales of the online

sellers before and during the pandemic?

4. Is there a significant relationship between the number of engagement in

Facebook to the sales?

4.1 before the pandemic; and

4.2 during the pandemic?

5. What marketing strategies can be suggested based on the findings of the study?
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Significance of the Study

This study is deemed beneficial and significant to the following;

Online Sellers. The results of this study will encourage online sellers to maximize all

the available resources and apply Facebook marketing strategies to boost their sales

and profit in the new landscape of business and entrepreneurship.

Business Owners. This study will allow the business owners to recognize the

importance of Facebook marketing and strategies to increase sales and profits.

Business/Entrepreneurship Instructors. This study will help business instructors to

further explain the importance of Facebook marketing in the present landscape of

business and entrepreneurship. Also, it allows them to introduce to students the various

Facebook marketing strategies that might help in boosting sales, profits, and business

performance and identity.

Students. The results of this study could help them to have knowledge on how

Facebook marketing affects the sales of online sellers.

Future Researchers. This study will provide a recommendation for future researchers

on conducting studies that will help to improve and promote Facebook marketing in the

country and to maximize available resources and strategies in online selling.

School. This study will help the Usmad National High School to explore and to know

more about the impact on the sales before and during the COVID-19 pandemic to the

online sellers to the selected barangays in Argao.

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Community. This study will be a great help to the community to have the knowledge on

how the Facebook marketing to the sales of the online sellers before and during the

pandemic.

RESEARCH METHODOLOGY

This chapter presents the research method. It focuses on the method used in

conducting this research which covers flow of the study, research design, research

procedure, research respondents, instrument, statistical tool and research environment.

Research Design

The research of the impact to sales of online sellers during the COVID-19

pandemic in selected barangays in Argao is a comparative quantitative study. The

information gathering that will be done online to be sent through their messenger.

Flow of the Study

Input. the input of this study is designing and producing of strategies that would

answer the question “What is the impact of Facebook on the sales of the online sellers

before and during pandemic?” based on Aidas Theory of Selling by St. Elmo Lewis,

cited by Abiaziem, 2019 and Right Set of Circumstances Theory by Howard, cited by

Ahinful and Asomaning, (2017).

Process. The research flow of the study will begin with making a letter to

conduct a study and approved by the principal and the research teacher and then

distribution of purposive sampling.

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Output. The output of the study is a recommendation, conclusion and

strategies.

Research questions seeking for:

 What are the products being sold?

 What are the estimated monthly sales before and during the
COVID-19 pandemic?
 What is the extent of using Facebook marketing as tool to
the sales of online sellers before and during the pandemic?
 Is there a significant relationship between the number of
engagement in Facebook to the sales before and during the
pandemic?
 What strategies can be suggested based on the findings of
the study?

 Making a letter to conduct a study and

approved by the principal and the research
teacher
 Distribution of purposive sampling
 Gathering of results through checking if
answered questionnaire
 Evaluation of Results

 Recommendation
 conclusion
 strategies

Figure 2. Flow of the Study

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Research Environment

The research will be conducted to 10 selected barangays in Argao which are

Usmad with 1.6%, Tulic with 3.6%, Canbanua with 3.5%, Poblacion with 7.7%, Catang

with 0.8%, Conalum with 0.8%, Lamacan with 3.4%, Langtad with 4.4%, Lapay with

0.8% and Cansuje with 3.3% of the whole population of Argao. It is located in the

southeast of the province of Cebu, 67 kilometres (42 mi) from Cebu City. Has the

population of 78,187 according to Philatlas.

Research Respondents

The participants in this study are online sellers in selected barangays in Argao.

The survey will be conducted with 30 respondents. The respondents can be a student, a

parent, or an entrepreneur that already have the experience of online selling through the

use of Facebook.

A purposive sampling technique will be used to obtain the representative or

sample of all the online sellers in Argao.

Research Instrument

The instrument that will be using is adapted questionnaire. The questionnaire

was adapted from the study of National College of Business and Arts Cubao entitled

Performance of Facebook as Marketing Tool to Online Retailers (2021). The

researchers will use Google Forms that will be sent via messenger.

.
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Figure 3. Locale of the Study

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Data Gathering

Before conducting a study, consent from respondents to the assigned

researchers, if they have time to respond to the questionnaire. The researchers will

analyse the collected data to determine the study results on the impacts of Facebook

marketing on the sales of online sellers before and during the COVID-19 pandemic.

Treatment of Data

The following will be used in utilizing the statistical treatment of the data:

1. Percentage will utilize in determining the percentage the percentage of the

responses in every question that the respondents will provide.

Formula:

f
P= x 100
n

Where:

P = Percentage

f = responses

n= number of responses

2. Weighted Mean will utilize to identify the impacts of Facebook to the sales of the

online sellers before and during the pandemic with the following formula, rating,

scale and description.

Formula:

WM=
∑ fw
n

Where:
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∑ = summation of

f= frequency

w= weight

n= total number of respondents

Likert Scale, is the term is often used interchangeably with rating scale, or more

accurately the Likert-type scale, even though the two are not synonymous. The

scale is named after its inventor, psychologist Rensis Likert

Scale Range Verbal Interpretation

5 4.51-5.00 Strongly Agree

4 3.51- 4.50 Agree

3 2.51 – 3.50 Strongly Disagree

2 1.51 – 2.50 Disagree

1 1.0 – 1.50 No Knowledge

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DEFINITION OF TERMS

The following words are to be defined operationally so as for the readers to

understand the research.

Bogus buyers- those who don’t pay for their winning bids or reserved items

COVID – 19 (corona virus disease) – an illness caused by a virus. This virus is a

coronavirus called SARS-CoV-2

Facebook - an app which allow users to communicate with the online sellers and

buyers.

Facebook online marketing – is used by the online sellers in promoting a product and

maintaining its presence on Facebook.

Online Business - a business conducted entirely on the internet.

Online Marketing - the promotion of brands to connect with potential customers using

the internet and other forms of digital communication.

Online seller – the person who sales products and services online.

Online selling – a form of electronic commerce which allows sellers to directly sell

goods or services to a buyer over the social media.

Sales – are activities related to selling or the number of goods or services sold in a

given time period.

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