i

Effectiveness of Social Media as Platform for Online Business Transactions as

perceived by the 3rd year BSBA Students of Negros Oriental State University

Cati-an, Rose Mae

Catubig, Jaye Anne

Cual, Jelan

Dagpin, Judy Flordelis

Dela Cruz, JD Mae

Delco, Hazelyn

Santillan, Hanna Micaela

The Faculty of the College of Business Administration

Negros Oriental State University

Dumaguete Main Campus-I

BA 304 – Business Research

Dr. Ernesto Tumacole Jr.

May 2022
 ii

ABSTRACT

This study aims to examine the effectiveness of social media as a platform for online
business transactions recognizing the factors affecting them and to what extent they are
engaged in. The levels of effectiveness using social media are then compared using
descriptive design. The participants of this study are drawn from the third year BSBA-FM
students of Negros Oriental State University Campus I through the distribution of google
form questionnaire as an instrument to find out the perceptions of the participants. Based
on the result of data analysis, the study reveals that the majority of the respondents are
young adults, female, single, residents of Negros Oriental and with monthly income of less
than ₱ 30,000. The study also concludes that social media platforms are effective in
reaching more customers than the traditional system, as customers are able to access social
media at any time. The majority of the respondents also agreed that the electronic era has
reduced advertising and transportation costs and provides businesses with another way to
meet customer needs.

Keywords: social media, platform, business transactions

 iii

ACKNOWLEDGEMENT

The researchers, would like to extend their deepest gratitude to the following

individuals who have contributed to the completion of this research paper.

To Dr. Ernesto Tumacole Jr., the researchers’ subject teacher, for his guidance and

for sharing his knowledge about the subject that helped the researchers complete this study

and for giving enough time to finish this research paper.

To Dr. Julhusin Jalisan, the researchers’ Research adviser and statistician, for his

undeniable support, patience, suggestions and for giving valuable comments that helped

the researchers complete this study. His time and effort in checking this manuscript and for

analyzing and interpreting the data. The research would not have been successful without

his guidance and knowledge.

To the respondents, 3rd year BSBA (Bachelor in Science and Business

Administration) students in Negros Oriental State University, for participating and giving

their honest assessment and time in answering the research survey questionnaire.

To the beloved parents and guardians of the researchers, for their unending support,

encouragement and for the financial assistance for the completion of this study.

To the friends and acquaintances, who help the researchers disseminate the research

survey questionnaire.
 iv

To the Almighty God, for giving the researchers strength and wisdom throughout

the whole process of this study.

The Researchers
 v

CONTENT

Cover Page …………………………………………………………………………i

Abstract …………………………………………………………………………….ii

Acknowledgement …………………………………………………………………iii

List of Tables ………………………………………………………………………vi

List of Appendices …………………………………………………………………vii

Introduction ………………………………………………………………….……..1-2

Background ………………………………………………………………….……..2-5

Statement of the Problem ……………………………………………………..……5-6

Methodology ………………………………………………………………..………6-7

Results and Discussions …………………………………………………….………7-11

Conclusions …………………………………………………………………………11-12

Recommendations …………………………………………………………………..12-13

References …………………………………………………………………………..14-16

Tables …………………..………….………………………………………………..17-18

Appendices ………………………………………………………………………….19-30

Curriculum Vitae ……………………………………………………………………31-44

 vi

LIST OF TABLES

Table 1 – Profile of the Respondents ………………………………………………….8

Table 2 - Respondent’s Extent of Agreement on Effectiveness of Social Media for Online

Business Transactions …………………………………………………………………9

 vii

APPENDICES

Appendix A – Questionnaire (Document Form) …………………………………………20-21

Appendix B - Questionnaire (Google Form) ……………………………………………..22-24

Appendix C – Grammar Checker …………………………………………………………25-26

Appendix D – Grammarly Plagiarism Checker …………………………………………...27

Appendix E – Quickbooks Online and Xero Monthly Plan ………………………………28-30

 1

INTRODUCTION

Social media has a huge impact on every individual. Especially today, when most

people are engaged in online business. According to current statistics for January 2020,

4.54 billion are active Internet users, which is 59% of the world's population (Statista,

2020a). The use of social media has become an integral part of the lives of many people

around the world. Digital networking usually makes it easier and faster to get information,

provide facts, and interact. Businesses can now not only keep in touch with present and

potential customers in real time, but also rethink how they connect with them for a much

more distinctive and loyal. It also gives the chance to make clients feel appreciated and

valued, start a new business, or make extra money.

Businesses can obtain their marketing strategies at a cheap cost through digital and

social media marketing (Ajina, 2019). More than 50 million businesses have Facebook

accounts, and 88 percent of firms use Twitter to promote business (Lister, 2017). People

are spending more time online looking for information, investigating products and services,

sharing their experiences with other customers, and interacting with different companies.

Organizations have responded to this shift in consumer behavior by incorporating digital

and social media into their business marketing strategies (Stephen, 2016). Customers will

be more connected to companies making them more aware of product offerings and

influential in buyer interactions (Agnihotri et al. 2016).

In general, social media benefits businesses by raising product awareness,

increasing revenue, and giving financial data (Agnihotri et al. 2016; Stelzner 2011).

Companies may use social media to engage with their customers, raise brand awareness,
 2

influence consumer attitudes, get feedback, improve current products and services, and

boost sales (Algharabat et al., 2018; Kapoor et al., 2018; Kaur et al., 2018, Lal et al., 2020).

Finally, companies that use social media effectively not only make better judgments, but

they also make more money (Rossmann and Stei 2015).

Therefore, the aim of this research is to evaluate and understand the usage of social

media as a medium for new sorts of business transactions. The efficiency of social media

as a medium for online business transactions is investigated in this study. This study will

be conducted through a survey of Negros Oriental State University's third-year BSBA

students. As a result of this research, other researchers will be able to confirm the findings

of their queries into this subject.

BACKGROUND

The social network will become the dominant center of action in our lives,

according to Weber (2007). To put it another way, for the vast majority of services

provided, users should use the social web, as the World Wide Web is frequently referred

to. Furthermore, the social web has opened up numerous new avenues for global

information exchange. In June 2010, more than 1.96 billion individuals were online,

according to Internet World statistics. As a result, it is clear that the social web has a

significant impact on people. People today, for example, engage and communicate as a

society and utilize the internet to strengthen existing bonds. Firms have recently used this

information to target and reach out to their customers. In recent years, social media has

been used by businesses to disseminate information about all current products, enabling
 3

clients to make online purchases, and aid in the worldwide preservation of commerce

(Weber, 2017).

Advertisements given to users on social media platforms are known as social media

advertising or social media targeting (Haylee Reed, 2022). Loser information is used by

social networks to serve highly relevant advertisements based on interactions within a

platform. Social advertising can result in significant increases in conversions and sales at

a lower cost of acquisition (Haley Reed, 2022). According to UNCTAD projections, the

remarkable rise in E-commerce amid COVID-19-induced movement limitations boosted

online retail sales share of total retail sales from 16 percent to 19 percent in 2020.

According to the survey, online retail sales increased significantly in various nations, with

the Republic of Korea claiming the greatest proportion of 26.9% in 2020, up from 20.8

percent in 2015. (UNCTAD, 2021).

Many commentators have predicted the "death of distance" as a result of the rise of

the internet and, more broadly, digital communications technology (Cairncross, 1997). It

doesn't matter where information is located in this view because it's only a mouse click

away, and information costs are no longer proportional to physical distance. However, data

suggests that distance costs are rising for traditional offline physical products trading

(Disdier and Head, 2008). It appears that businesses must compare internal and external

transaction expenses and select the lowest cost option that allows them to improve

earnings. This indicates that enterprises must cut transaction costs to the absolute minimum

in order to increase earnings and gain a competitive advantage.

 4

When customers have issues with their purchases, the most common procedure for

resolving the issue is to file a complaint with the seller. The purpose of this case study is

to explain and assess the complaint mechanism's effectiveness in resolving customer

complaints about specific household appliances. Customers generally seemed to achieve

more generous concessions than the law demanded of the seller, and the complaint system

was found to be widely used and effective in dealing with situations characterized as

troublesome by consumers. Because management characterized generous customer

treatment as consistent with long-term business interests, and because employees were

under both official and unofficial pressures to satisfy customers' requests, the latter's

response was liberal. (Law & Society Review, founded in 1966, is regarded as a premier

journal in sociology by sociologists around the world).

How to use social technology in company to improve products, services, and long-

term profits and growth by fostering collaborative innovation and driving winning

programs. According to a study conducted by Anderson Analytics in July 2009, 60 percent

of the Internet population uses social networks and social media sites such as Facebook,

MySpace, and Twitter. Social Media Marketing: The Next Generation of Business

Engagement, written by the author of the bestselling Social Media Marketing: An Hour a

Day in collaboration with (Jake McKee), takes marketers, product managers, small

business owners, senior executives, and organizational leaders to the next step in social

technology and its application in business.

For billions of people all over the world, the internet, social media, smartphone

apps, and other digital communication technologies have become second nature.
 5

According to January 2020 data, 4.54 billion individuals, or 59 percent of the global

population, are active internet users (Statista, 2020). The internet and social media have

transformed consumer behavior and the way businesses conduct business for many

individuals around the world. Reduced costs, higher brand awareness, and increased sales

are all advantages of social and digital marketing for businesses. Negative online word-of-

mouth, as well as an obtrusive and annoying online brand presence, pose substantial

obstacles.

STATEMENT OF THE PROBLEM

The purpose of this study was to examine the effectiveness of social media as a platform

for online business transactions as perceived by the third year BSBA students.

It sought to answer the following questions:

1. What is the profile of the respondents with regards to the following:

1.1 Age

1.2 Gender

1.3 Status

1.4 Location

1.5 Monthly Income

2. What is the level of effectiveness of social media as a platform for online business

transactions as perceived by the respondents?

 6

METHODOLOGY

The research used survey method for gathering data. Since there was an emergence

of Covid-19 pandemic which brought restrictions to people for safety measures, the

researchers completed the gathering of data through online survey. All transactions were

done through online platform specifically in google form.

The main data collection instrument was an online survey questionnaire and that

the designed was uniquely created. The online survey questionnaire was categorized into

two sections; the first part was the respondents’ profile (age, gender, status, location, and

monthly income), and the second part of the questionnaire was concern on perceptions of

the respondents towards the effectiveness of social media as a platform for online business

transactions. To validate the online survey questionnaire, the researchers consulted their

research adviser for justification practically on assessing the effective outcome of the

online survey questionnaire.

The focus of this research survey is only intended for third year college students

related to business courses and was studying at Negros Oriental State University. The

researchers only acquire the maximum number of respondents who can fill-out the

questionnaire, 75 respondents were selected of convenient sampling to fill-out the survey.

The utilization of Google Form enhances the convenient smooth circulation in gathering

the data, and to disseminate the survey questionnaire, the researchers sent the link to the

specific respondents with humbleness.

 7

After the gathering of data, the researchers tabulated and interpreted the results with

confidentiality. The statistical tools used for the analyses of data are the

frequency/percentage distribution for the profiling of the respondents and weighted mean

for evaluating the effectiveness of social media as a platform for online business

transactions. For the interpretation of the weighted means, the following was used:

1.00-1.80 Strongly Disagree

1.81-2.60 Disagree

2.61-3.40 Neutral

3.41-4.20 Agree

RESULTS AND DISCUSSION

This section presents the data in tabular form and also includes the analysis and

interpretation of the data gathered by the researchers. The data is gathered by the used of

survey questionnaire through online. A total of 75 students who were 3rd year BSBA

students in Negros Oriental State University responded to the survey.

Profile of the Respondents

The profile of the 3rd year BSBA students in NORSU with regards to their age,

gender, civil status, location and monthly income are presented first. Followed by the

analysis and interpretation on the extent of the agreement of effectiveness of social media

for online business transactions.

 8

Table 1 presents the distribution of respondents by age, gender, civil status, location

and monthly income. All the 75 students who responded to the survey are aged 20 – 25

years old. In terms of gender, there are 66 who are female with an 88% and 9 who are male

with 12%. Next is the civil status of the respondents, the Table 1 shows that most of the

students where single in which there are 74 students are single with 98.67% and only one

married with the percentage of 1.33%. Followed by the location in which there are 55

students lived within the Negros Oriental with the percentage of 73.33% and 20 students

which is outside the Negros Oriental with a percentage of 26.67%. Lastly is the monthly

income, the Table 1 shows that out of 75 students there are 70 of them has less than 30,000

a month which is equivalent to 93.37% and 5 students has not less than 30,000 which is

equivalent to 6.67%.

To sum up, the Table 1 presents that all the 75 students are aged 20 – 25 years old

with mostly female, out of 75 there are 74 students who are single and only one who is
 9

married, also most of the respondents are within the Negros Oriental and last but not the

least is the monthly income in which most of the respondents specifically the 70

respondents has less than 30,000 in their monthly income.

Effectiveness of Social Media for online business transactions

Table 2 presents the respondents extent of agreement on the effectiveness of social media

for online business transactions.

As reflected in the table, indicator no. 4 receives the highest weighted mean of 4.57

(strongly agree). Out of 75 respondents, 49 of them strongly agree, 20 of them agree, and

6 of them are neutral. The results show that social media is effective in reaching more

customers than traditional systems because these days a lot of people have social media.

According to Singh & Singh (2018) social media platforms are not only cost effective but

also increase the proximity between producer and consumer. He also added that even little

companies are able to utilize social media to reach markets far beyond its traditional

vicinity while also gaining access to markets beyond its current customer base.
 10

Indicators no. 5 and no. 8 received the same weighted mean of 4.39 (strongly

agree). In indicator no. 5, out of 75 respondents, 40 of them strongly agree, 27 of them

agree, 6 of them neutral, 1 of them disagree, and 1 of them strongly disagree. In indicator

no. 8, 37 of them strongly agree, 30 of them agree, and 8 of them are neutral. The results

show that online transactions can reduce the transportation expenses of customers and can

access social media anytime. According to Schaeffer (1999), the Internet provides a

channel through which buyers and sellers can access and transact at a lower cost, instantly,

and overcome geographical and temporal barriers.

In indicators no. 1,3, and 6 most of the respondents answered agree with the

weighted mean of 4.12 (indicator 1), 4.04 (indicator 6), and 4.01 (indicator 3). The results

show that most of the respondents agree that using electronic system is cost effective rather

than the traditional system and does maximize firms profit. According to Kiggundu (2002),

e-commerce has maximized corporate profits. The use of social media provides businesses

with another means of addressing customer needs and complaints. According to Schaeffer

(2003), one of the greatest benefits of doing business online is its ability to promote

relations with customers and partners.

Indicator no. 2 receives the lowest weighted mean of 3.95 (agree), out of 75

respondents, 20 of them strongly agree, 35 of them agree, 18 of them neutral, and 2 of them

strongly disagree. The results show that social media has the potential to reduce advertising

spending. According to Webber (2009), social media is much different from traditional

media like newspapers, television, and film. Social media is relatively inexpensive and

accessible to anyone to, publish or access information compared to traditional media,

 11

which usually require important resources to publish information. His statements claim that

social media helps reduce corporate advertising expenditures.

In summary, social media is very effective in reaching more customers than

traditional systems, as customers are able to access social media at any time. Based on the

data analysis, the majority of respondents agreed that the electronic era has reduced

advertising and transportation costs and provides businesses with another way to meet

customer needs.

CONCLUSIONS

In conclusion, cutting-edge social network is a totally on hand and critical

communication network for everyone. We can use it to make pals and preserve in touch

with pals from particular countries. We can also percent our mind rapid, so subjects can

develop rapid because of the truth humans can tell us their idea, and we are able to decorate

it immediately. Furthermore, we can also look at new subjects on social media through

manner of approach of searching or reading what humans’ percent on social media. People

are also loose to sell a few issues on social media, that may reduce ad spend. There are

greater advantages to using social media, however, always There are specialists and cons

to at least one issue. Since social media is so on hand for everyone, most of them do now

no longer even need to 'talk' to talk with humans. People will now no longer lose

communication skills.

The biggest problem is that many humans have taken gain of the strength of social

media and used it to bully someone. The strength of social media is much like the strength
 12

of real life. A few of them used social media to do illegal subjects, that is foolish. Social

media has changed our lives a lot. Our lives have come to be greater on hand. Because

social network is a totally useful tool for us with inside the 21st century, it can help us to

decorate our lives. However, we need to comprehend how we use them. If we are able to

use social network intelligently, then social network turns into an extraordinary threat for

us.

RECOMMENDATIONS

The researchers recommend the following in terms of practices and technique:

Since, the results of the research study was found that most females had the highest

utilization of social media as a platform for online business transaction, therefore, males

should enhance themselves to utilize the effectiveness of social media as a platform for

online business transaction.

Different platforms of social media should improve their features for less hassle

utilization.

The conveniences of social media were found effective therefore, on behalf of

accessing these social media, connectivity should be improved and enhance

The level of effectiveness of social media as a platform for business online

transaction was that the majority of the respondents acknowledge the effectiveness of

social media, therefore, it enhances the convenient utilization as well as reduces its

transportation cost. However, reducing transportation cost would decrease income to

 13

drivers, hence, the researchers recommend onto drivers to utilize social media as a source

of income for delivery.

 14

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reduce-business-costs/

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Kaur, P., Dhir, A., Rajala, R. and Dwivedi, Y. (2018), “Why people use online social media

brand communities: A consumption value theory perspective”, Online Information

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267-trillion-covid-19-boosts-online-sales
 17

TABLES
 18

Tables 1
 19

Table 2
 20

APPENDICES
 21

APPENDIX A
Questionnaire (in Document form)

1. Age
 20-25
 26-30
 31-35
2. Gender
 Male
 Female
3. Civil Status
 Single
 Married
 Widow(er)
 Separated
4. Location
 Within Negros Oriental
 Outside Negros Oriental
5. Monthly Income
 Not less than 30,000
 Less than 30,000
Statements Strongly Agree Neutral Disagree Strongly
Agree Disagree
1. Electronic system is cost
effective rather than the
traditional system.
2. Social media can reduce the
advertisement expenses.
3. Online business transaction
have maximized firms profit
considerably.
4. Social media would reach more
customers than the traditional
system.
5. Through online transactions
there is reduced of transportation
cost.
6. Requests and complaints sent
by customers through the seller’s
social medias are always
welcomed.
7. Social media is efficient in
responding the needs of
customers.
 22

8. Customers can access the

social media at any time.
 23

APPENDIX B
Questionnaire (in Google Form)
24
25
 26

APPENDIX C
Grammar Checker
27
 28

APPENDIX D
Grammarly Plagiarism Checker
 29

APPENDIX E
Quickbooks Online and Xero Monthly Plan Costs
30
31
 32

CURRICULUM VITAE

Personal Profile

Name: Jelan E. Cual

Date of Birth: March 15, 2001

Place of Birth: Jantianon, Amlan, Negros Oriental

Home Address: Jantianon, Amlan, Negros Oriental

Educational Background

Tertiary: Negros Oriental State University (MC 1)

Kagawasan Avenue, Dumaguete City

2019-Present

Secondary: Jantianon National High School (Senior High)

Jantianon, Amlan

2013-2019

Elementary: Jantianon Elementary School

Jantianon, Amlan

2007-2013

Awards Received

With Honor

Service Awards
 33

Personal Profile

Name: Rose Mae V. Cati-an

Date of Birth: May 23, 2001

Place of Birth: Luka, Oslob, Cebu

Home Address: Luka, Oslob, Cebu

Educational Background

Tertiary: Negros Oriental State University (MC 1)

Kagawasan Avenue, Dumaguete City

2019-Present

Secondary: Tan-awan National High School

Cangcua-ay, Tan-awan, Oslob, Cebu

2013-2015 & 2017 - 2019

Tanza National Comprehensive High School

Tanza, Cavite

2015 - 2017

Elementary: Alo Elementary School

Alo, Oslob, Cebu

2007-2013

Awards Received

Service Award (2013 – 2014)

With Honors (2015 – 2017)

Best in Filipino (2016 – 2017)

 34

Personal Profile

Name: JD Mae Aideen G. Dela Cruz

Date of Birth: May 06, 2000

Place of Birth: Tambanan, Naga, Zamboanga Sibugay

Home Address: Ipil, Zamboanga Sibugay

Educational Background

Tertiary: Negros Oriental State University (MC 1)

Kagawasan Avenue, Dumaguete City

2019-Present

Secondary: Marcelo Spinola School

Don Andres, Ipil, Zamboanga Sibugay

2014 - 2019

Elementary: Luis Ruiz Sr. Elementary School

Veterans, Ipil, Zamboanga Sibugay

2007-2013

Awards Received

With Honors

Service Awardee

Loyalty Awardee

Leadership Awardee
 35

Personal Profile

Name: Judy Flordelis Dagpin

Date of Birth: July 09, 1999

Place of Birth: Tubigon, Sibulan Negros Oriental

Home Address: Tubigon, Sibulan Negros Oriental

Educational Background

Tertiary: Negros Oriental State University (MC 1)

Kagawasan Avenue, Dumaguete City

2019-Present

Secondary: Tubigon Highschool – Junior High

Tubigon, Sibulan Negros Oriental

2012 – 2016

Tubigon Highschool – Senior High

Computer System Servicing (Tech – Voc)

2016b - 2018

Elementary: Tubigon Elementary School

Tubigon, Sibulan Negros Oriental

2005 - 2012
 36

Personal Profile

Name: Jaye Anne T. Catubig

Date of Birth: October 20, 2000

Place of Birth: Dumaguete City

Home Address: Bajumpandan, Dumaguete City

Educational Background

Tertiary: Negros Oriental State University

2019-2023

Kagawasan Avenue, Dumaguete City

Secondary: Junob National High School

2013-2018

Talay, Dumaguete City

Elementary: San Antonio Elementary School

2006-2012

San Antonio, Sibulan, Negros Oriental

Awards Received With Honor

Service Award
 37

Personal Profile

Name: Hazelyn P. Delco

Date of Birth: March 01,2000

Place of Birth: Imus Cavite

Home Address: Camanjac, Dumaguete City

Educational Background

Elementary: Magsaysay Memorial Elementary School

SY: 2006-2012

Junior High: Negros Oriental High School

SY: 2012-2016

Senior High: Saint Paul University Dumaguete

SY: 2016-2018

College: Negros Oriental State University

SY: 2019-Present

Awards Received

Deportment Award

With Honor
 38

Personal Profile

Name: Hanna Micaela G.Santillan

Date of Birth: September 25,2001

Place of Birth: Matu-og, Tayasan

Home Address: Matu-og, Tayasan Negros Oriental

Educational Background

Tertiary: Negros Oriental State University

2019-2023

Kagawasan Avenue, Dumaguete City

Secondary: Tayasan Institute

2013-2018

North Poblacion Tayasan Negros Oriental

Elementary: Matu-og Elementary School

2012-2013

Matu-og Tayasan Negros Oriental

Awards Received With Honor

Service Awardee

Best in Performing Arts