PHINMA UNION COLLEGE OF LAGUNA

Sta. Cruz, Laguna

Transforming Tradition: A Strategic Framework for E-

Commerce Development of Traditional Retail Shops

A Thesis Paper
Presented to the Faculty of
Phinma Union College of Laguna

In Partial Fulfilment
of the Requirements for the Subject of
Capstone 1
Bachelor of Science in Information Technology

Submitted To:
Mr. BILLY BALTAZAR

Submitted By:
Mickaella Grace C. Soleta
Harold A. Vega
Laurence S. Parcon
Joshua Lanz A. Regalado

October 2024
 Table of Contents

Contents

Chapter I ..................................................................................................................................... 3

Introduction................................................................................................................................ 3

Background of the Study ............................................................................................................ 4

Statement of the Problem.......................................................................................................... 6

Objectives of the Study .............................................................................................................. 6

Scopes and Delimitation ............................................................................................................ 7

Significance of the Study ............................................................................................................ 9

Chapter II .............................................................................................................................. 11
Review of Related Literature.................................................................................................... 11
Related Literature .................................................................................................................... 11
Synthesis................................................................................................................................... 13
Chapter III ......................................................................................................................... 14
Data Gathering Tools, Techniques and Timeline ..................................................................... 15
3.1 Data Gathering Tools.......................................................................................................... 15
Table 1: Likert Scale.................................................................................................................. 16
Table 3: Questionnaire for Customers ..................................................................................... 17
Table 4: Questionnaire for Staff/Owner .................................................................................. 18
Table 5: Questionnaire for Staff/Owner .................................................................................. 18
3.2 Timeline .............................................................................................................................. 21
Software Development Methodology ..................................................................................... 23
Conceptual Framework ............................................................................................................ 24
Data Analysis ............................................................................................................................ 25
4.1 System Development Tools ................................................................................................ 25
4.2 Statistical Tools ................................................................................................................... 25
 Chapter I

Introduction

In this day, technology like E- commerce is developing at a faster rate

that makes everyone use technology to make their lives much easier, more

flexible and efficient. In this digital and modern era, computer technology is

continuing innovation and rapidly evolving everything that is connected in our

technology for a fast and easy transaction. A lot of changes occurred as digital

technology developed. Online media and the internet are among the major

changes. Many traditional businesses needed to distribute products face to face

but when the technology came up many businesses and company recently

expanded into internet retailers or online shops. Furthermore, it is also a new

marketing tool strategies that can be used to tailor products and services on

websites and to extend this to e-business.

For businesses, web E-commerce opens up new opportunities to reach

customers around the world, operate 24/7, and manage sales more efficiently.

With advancements in technology, online shopping has become faster and

more personalized, improving the overall experience for both consumers and

businesses. As technology continues to advance, web eCommerce will keep

evolving, making our lives easier and reshaping the retail landscape.

In this section of the research paper, the researchers will provide a brief

background on the adaptation of an e-commerce website for a traditional

business. The primary objectives include expanding its audience reach and
facilitate effective and efficient online business transactions. The study will

focus on the process of improving the website’s user-friendly performance, and

design. Additionally, the researchers will delve into significance of the study,

present research questions, and outline the scopes and limitations.

Background of the Study

In this generation, the widespread of online selling became popular due

to this pandemic. According to Markus (2019), electronic commerce or in its

simplest form e-commerce, refers to any form of business transactions

conducted online. The purchasing and selling of goods and services via the

internet is known as e-commerce, or electronic commerce (Dalvi, 2022). People

nowadays use websites and smart phone apps to shop from their homes,

offices, or anywhere with internet access, instead of going to physical stores.

With just a few steps, you can browse a large selection of products, compare

prices, and make purchases with our digital shopping experience. You can

explore and purchase things from all over the world, giving you access to a

significantly greater selection of goods than you would typically find in a

conventional store.

Due to its global reach, you can frequently find better deals by

comparing prices from various vendors and discovering unique items.

Additionally, e-commerce simplifies the shopping process. Online shops design

the entire experience to be user-friendly, with features like faster checkout

procedures, easily legible customer reviews, and personalized

recommendations based on your browsing history. Online shops frequently

give product details and images to help you make better judgments without

having you physically view or feel the item.

For businesses, e-commerce opens up new opportunities for the

growth of a company. They can operate around the clock, manage inventory

more effectively and efficiently, and use data analytics to understand customer

preferences and improve their recommendations. Online marketing and social

media integrations also help businesses connect with potential customers and

drive sales.

Finally, e-commerce enhances our lives by making shopping more

convenient, offering a greater variety of products, and saving time. As

technology continues to advance, e-commerce will keep evolving, making our

shopping experiences even better and more tailored to our needs.

The Vix Vapor Hub is a family owned vape store that lets their

customers purchase and browse their products. For the purpose of this study,

Vix Vapor Hub will be used as the primary business transitioning from traditional

to online business arrangement. Vape store with their own website are rare in

the Philippines as most vape stores usually uses traditional business style.

Thus Vix Vapor Hub as a local business wants to adapt to modern changes in

order to build and strengthen their brand identity and draw more customers.

Hence, a user-friendly website that allows customers to purchase, browse and

along with this, the admin can easily add new products, edit product details and

delete.

The purpose of this study is to building and strengthening Vix Vapor

Hub’s identity as a local vape brand broadening its audience reach, and
allowing effective and efficient online business arrangements, through

developing a quality and user-friendly web service is the main focus of this

study.

Statement of the Problem

This research study seeks to determine the main problems in

developing an e-commerce store for Vix Vapor Hub and to identify what to

include in the proposed system.

Specifically, it aims to answer the following problems:

1. How can businesses improve their online customer experience?

2. What are the features of the system?

3. How effective is the web development for the business, in terms of

sales/income?

Objectives of the Study

This research study titled “Analyzing Web Optimization on e-commerce

shop Performance” aims to develop a quality and user-friendly web service and

design to help build and strengthen Vix Vapor Hub’s identity as a local brand in

the landscape of online business.

Specifically, it aims to:

1. To determine the effectivity of web development in business, specially in

terms of increasing sales and developed brand identity.

2. To analyze the web’s performance in being user-friendly and usability.

 3. To analyze if it provides a convenient and efficient way of business

transactions for customers.

Scopes and Delimitation

This study primary focused on the development of the quality and

user-friendly web service for Vix Vapor Hub. The project utilizes a variety of

programming languages and technologies, including html, JavaScript, CSS,

php and for the data base we use MySql. The scope of this project involves

both client-side and server-side architectures including a range of specific

features such as login, homepage, product list, add-to-cart, user information

updates, contact and checkout page. Moreover, the study’s respondents

comprise both staffs and customers of Vix Vapor Hub, ensuring that the

functionality of the web cater to their unique perspective.

Additionally, this study includes input from a diverse group of

respondents, consisting of both staff members and customers of Vix Vapor

Hub. This approach ensures that the web service meets the needs and

expectations of its primary users, providing a tailored experience that

addresses their specific requirements.

It is vital to acknowledge the delimitations of this research endeavor.

Foremost no receipts from sales were included in this research study as the

business solely focused on online selling of their products.

Furthermore, while the development of this e-commerce platform

aims to support Vix Vapor Hub’s business operations and improve its business

by adapting to online environments. It also seeks to improve overall customer

engagement, streamline purchasing processes, and provide a more accessible

and efficient means of buying, all of which contribute to the company's growth

and competitiveness in the digital marketplace. Even though the purpose is to

expand the business and make it more accessible it is not intended to replace

traditional business practices entirely. The implementation of the website is

designed to complement and enhance existing business processes, providing

an alternative avenue for transactions that offers greater convenience and

efficiency. Ultimately, the decision to adopt the website or continue with

traditional methods remains at the discretion of Vix Vapor Hub. The primary

objective of the web service is to greatly improve the efficacy and efficiency of

business transactions by simplifying the procedure via an easy-to-use and

intuitive digital platform. This improvement attempts to create and strengthen a

strong online presence for Vix Vapor Hub in addition to enabling faster and

more seamless transactions. The web service aims to achieve these goals by

increasing the company's entire online presence, broadening its customer

base, and fortifying its position against competitors. In addition, it aims to make

the Vix Vapor Hub experience more interesting and approachable for both

current and new clients, which will increase client happiness and loyalty and

establish the company as a major force in the online market.

Overall, the web service aims to greatly improve transaction efficiency

by streamlining and simplifying the purchasing process. It intends to improve

Vix Vapor Hub's online presence, increasing its visibility and reach in the digital

market. By embracing current digital tools and technology, the platform helps

the organization grow and become more competitive. By providing a more

engaging and user-friendly experience, the web service not only hopes to

increase customer happiness but also create more client loyalty. Ultimately, the

goal is to build Vix Vapor Hub as a major and influential player in the online
market, setting a new benchmark for excellence in e-commerce and digital

client engagement.

Significance of the Study

With digital technology these days, the effectiveness and efficiency of

business operations have greatly improved. This research study will contribute

to the development and refinement of e-commerce websites in the Philippines,

addressing the growing need for innovative and efficient online business

solutions. By focusing on the creation of a high-quality web service, this study

aims to advance the state of e-commerce in the region.

Furthermore, this study will be an invaluable resource for students and

others interested in learning about the complexities of e-commerce websites. It

offers a chance to obtain practical insights into the design, functionality, and

implementation of online business platforms, broadening the knowledge base

of those looking to begin or develop in the field of digital commerce.

Specifically, the study intends to enhance the online experience for Vix

Vapor Hub and its customers. By implementing a user-friendly and efficient web

service. The research will assist Vix Vapor Hub in enhancing its operational

capabilities and providing a more engaging and fulfilling purchasing experience

for its customers by putting into practice an easy-to-use and effective web

service. Higher levels of client satisfaction and loyalty will follow from this.

Overall, the significance of this study stems from its ability to accelerate

improvement in the Philippines' e-commerce sector, provide instructional value

to e-commerce enthusiasts, and provide practical benefits to Vix Vapor Hub

through enhanced company operations and branding. Not only will the
particular business profit from the research's insights, but they will also deepen

and broaden our understanding of digital commerce practices.

 Chapter II

Review of Related Literature

In this chapter, the researchers will discuss the presentation of relevant

literature and system. This chapter serves as a critical foundation for the current

research as it based into the existing body of the literature and systems that

pertain to the development of an e-commerce website. The primary objectives

of this chapter are to provide context to this study, recognize recurring trends,

and grasp the current knowledge landscape within this field. The researchers

aims to offer a comprehensive review of major themes and contemporary

discoveries in this field, with a specific focus on e-commerce. Analyzing these

observations will help the researchers to have a better understanding to the

study and identify gaps and inconsistencies.

Related Literature

In this modern age, e-commerce has been increasingly significant,

especially due to the ongoing progress of new technologies that has created

new opportunities for small and medium-sized enterprises entrepreneurs and

business owners that seeks growth and success for their business. Currently,

small and medium businesses are not confined or limited to local operations

but are expanding internationally. Digitalization heavily influenced the

enhanced competitiveness among businesses. This prompts many small-

medium business owners to invest in technology to transition to e-commerce,

aiming to gain a competitive edge and remain relevant in their field (AlHudaib,

2022). These changes have led to shifts in how people live and what they want.
In a study conducted by Masruroh (2017), business owners seek more ways or

solution to meet their customer’s needs, thus, they are drawn to a wide variety

of businesses operation options. As a result, the growth of these contemporary

small-medium business is overshadowing traditional retail stores, which have

always operated independently within the framework of the social economy.

According to He (2015), the business industry continuously undergoes

social, political, technical and economic changes which makes its landscape

increasingly complex and unpredictable. Along with customer’s constant

changes in demands and living patterns, technology progress development is

faster than can it be predicted, thus, in order to survive and remain competitive,

business must be responsive to such a complex and dynamic environment.

Traditional businesses usually fail to be adaptive to the reconfiguration of their

strategy. Therefore, adaptive networks must be formed to provide traditional

businesses the capability to collaborate beyond the organizational boundaries,

improve their business strategies and processes necessary to the needs of their

customers. Traditional businesses are significantly influenced by e-commerce

in many ways. Customer’s behaviors were altered and a drop in traditional

businesses were observed due to the growth of online shopping. As the internet

becomes more popular due to its case and accessibility for customers, it is

difficult for traditional businesses to stay competitive. In response to the shift in

consumer behavior, traditional businesses started investing on e-commerce

platforms which focus on improving the customer experience and services. Due

to the rise of e-commerce concerns on automation, simplified inventory

management, and improved logistics were pushed to the forefront. Traditional

businesses must learn to embrace e-commerce systems and use the

technological solutions to streamline operations and increase productivity while

saving expenses.

Synthesis

The phenomenon of digitalization has significantly impacted the

heightened competitiveness among enterprises. This situation compels a

multitude of small to medium-sized business proprietors to allocate resources

towards technological investments for the purpose of transitioning into e-

commerce, with the objective of securing a competitive advantage and

sustaining their relevance within their respective industries (AlHudaib, 2022).

Such transformations have engendered modifications in the manner in which

individuals conduct their lives and the desires they pursue. In a study conducted

by (Masruroh, 2017), it was discovered that entrepreneurs are actively pursuing

methodological frameworks to cater to the needs of their clients, consequently

becoming more captivated by a diverse selection of operational strategies.

Consequently, the expansion of these modern small to medium-sized

enterprises is eclipsing the traditional retail outlets, which have consistently

functioned autonomously within the parameters of the social economy.

Recognizing the shifting landscape of consumer behavior and the

increasing importance of digital presence, Vix Vapor Hub has made the
strategic decision to explore advanced technology by embracing e-commerce.
This initiative aims not only to modernize their operations but also to streamline
various business processes. By integrating e-commerce solutions, Vix Vapor
Hub can enhance its operational efficiency, enabling better inventory
management and faster order fulfillment.

Additionally, adopting e-commerce allows the company to refine its

strategies for boosting productivity and reducing operational costs. This
transition is crucial for staying competitive in an environment where consumers
increasingly expect convenience and immediacy. Embracing digital tools and
platforms will also empower Vix Vapor Hub to adapt to emerging trends, such
as personalized marketing and data analytics, which can provide valuable
insights into customer preferences and behaviors.

Ultimately, by leveraging technology and e-commerce, Vix Vapor Hub is not

only positioning itself for growth but also creating opportunities to expand its
market reach. This strategic shift ensures the business remains relevant and
responsive to the evolving needs of its customers, paving the way for long-term
success in a competitive landscape.

Chapter III
SYSTEM ARCHITECTURE AND METHODOLOGY

Research Framework Design

This study uses a mixed-methods design, integrating in both qualitative

and quantitative research approaches. The quantitative component focuses on

collecting numerical data through surveys and system performance metrics,

allowing for measurable insights into user satisfaction and system usability. In

contrast, the qualitative component involves conducting individual interviews to

gather in-depth perspectives on user experiences and challenges.

Overall, this aims to evaluate the usability, functionality, and impact of the

online ordering, payment, and browsing system for Vix Vapor Hub. This

comprehensive approach ensures a broad understanding of user interactions

with the system, informing enhancements to improve user satisfaction and

operational efficiency.

Data Gathering Tools, Techniques and Timeline

To effectively assess user experience and satisfaction with the

online ordering, payment, and browsing system developed for Vix
Vapor Hub, our study utilized a comprehensive approach to data
gathering. This approach integrates both quantitative and qualitative
research methods, enabling us to capture a full view of user
interactions with the system.

Participants for the interviews and survey will be chosen using

purposive sampling, ensuring that individuals who have firsthand
experience with both the manual process and the new online system
are selected. This approach focuses on selecting participants who
can provide detailed and relevant insights based on their experience
with the system.
• The participants will include:

- Customers who use the services of Vix Vapor Hub, those

who have experienced both the manual ordering process
and the new online system.
- Staff members or the owner involved in the daily
operations, order handling, and customer interaction.

A total of 5-10 participants will be interviewed and answer the survey questions:

- 4-5 customers who represent various demographic backgrounds.

- 4-5 staff members or the owner involved in the Vape Shop operations.

This sampling method ensures that the data collected will be helpful
in context and directly relevant to the evaluation of the system.

3.1 Data Gathering Tools

Survey: A structured questionnaire for survey will be distributed to users after

they interact with the system. The surveys will utilize a Likert scale to quantify
 user satisfaction, usability, and overall experience. This quantitative data will
allow for statistical analysis to identify trends and correlations among user
responses.

Table 1: Likert Scale.

Scale Verbal Interpretation

5 Strongly Agree Highly Accepted
4 Agree Accepted
3 Neutral Moderately Accepted
2 Disagree Less Accepted
1 Strongly Disagree Not Accepted

Table 2: Questionnaire for Customers

This questionnaire is about the old manual process that the Vix Vapor
Hub used before the online system.

Questions 5 4 3 2 1
1. It’s easy to place an order in-person.

2. The product information provided

during the browsing was clear.

3. My order was accurate when placed in-

person.
4. I am satisfied with the payment options
available during the in-person process.
5. I found it easy to browse in-person.

6. The time taken to complete my order

and
payment in-person was efficient.
 7. I am satisfied with the customer’s
services during the ordering process.

8. Overall, I was satisfied with the manual

ordering process.
9. The process of modifying or canceling
my order in person was hassle free.

Table 3: Questionnaire for Customers

This questionnaire is about the experience of users using the new

online ordering system of Vix Vapor Hub.

Questions 5 4 3 2 1
1. The online ordering system for Vix
Vapor Hub is easy to use.

2. The visual design of the online system

is
appealing and user-friendly.
3. I am satisfied with my overall
experience
using the online system.
4. The online system meets my
expectations
when placing an order.
5. I prefer using the online system over
ordering in person.

6. The navigation through the online

ordering system is easy to use.

7. I find it easy to search for and select

products using the online system.

8. The payment process in the system is

fast and easy.

9. The online browsing system is efficient

and easy to use.
 10. The instructions and prompts in the
online system are clear and helpful.

Table 4: Questionnaire for Staff/Owner

This questionnaire is about the old manual process that the staff
/owner used before the online system.

Questions 5 4 3 2 1
1. The manual ordering system was easy
to use.
2. It took a long time to process orders
with the manual system.

3. The manual browsing system was

efficient.
4. Handling payments manually often
caused delays or confusion.

5. I was satisfied with the overall

functionality of the manual system.

Table 5: Questionnaire for Staff/Owner

This questionnaire is about the experience of staff/owner using

the new online ordering system of Vix Vapor Hub.

Questions 5 4 3 2 1
1. The new online ordering system is easy
to use.
2. The new system has improved the
overall
experience for customers.
3. The time needed to process orders has
decreased since switching to the online
system.
 4. The new online browsing system is more
efficient than the manual system.

5. The online system has made my job

easier.

Interviews: Semi-structured interviews will be conducted

with selected individuals to gather qualitative insights.
This method allows for an in-depth exploration of user
experiences, highlighting specific strengths and
weaknesses of the system.

Interview Question for Customers

• Old Manual Process

1. How did you place your orders before the new system was
implemented?
2. What challenges did you face when buying products manually?
3. Were there any common issues with miscommunication
during the ordering process?
4. How much time do you typically spend on placing an
order?
5. How secure did you feel about your payment information
in the manual process?
6. How satisfied are you with the current manual ordering
and browsing process?
7. How would you describe the customer experience when
using the manual process for ordering and payment?

• New Online System

1. How easy was it to place an order using the new online system?

2. What specific features of the new system improved

your ordering experience?
3. Have you encountered any challenges or difficulties while
using the new online system? Did the system work
smoothly without any glitches or delays?
 4. Did you find the payment process fast and simple? If not,
what could be improved?
5. Did you experience any issues with payment processing in the new
system?
6. How would you rate the visual design and layout of the
online system? Do you think it was appealing and user-
friendly?
7. How was your experience in browsing and ordering through
the system? Did it meet your expectations?
8. What improvements would you suggest for the new system
to enhance user experience?

Interview Question for Staff/Owner

• Old Manual Process

1. How would you describe the efficiency of the old

manual system in managing orders, browsing, and
payments?
2. What were the main issues you encountered with the
manual system (e.g., errors, delays, customer
dissatisfaction)?
3. How did the manual system affect customer experience and
satisfaction?
4. Did you face any challenges in training staff to use the
manual system effectively?
5. How did the manual system impact the business in terms
of revenue and customer retention?

• New Online System

1. How has the online system affected the day-to-day

operations of the Vape Shop compared to the manual
system?
2. Have you observed any changes in staff performance or
productivity with the new system?
 3. What are the main benefits you’ve seen ever since
switching to an online system?
4. Do you think the new system has enhanced customer
satisfaction? If yes, in what ways?
5. Are there any features or aspects of the new system that
you think need improvement?

3.2 Timeline

The following timeline outlines the key activities involved in the

development of the online ordering, payment, and browsing system
for Vix Vapor Hub, alongside the thesis development process. The
timeline demonstrates the phased approach used to gather data,
design and implement the system, and complete the thesis
requirements. By adhering to this timeline, we aim to maintain
organization and focus throughout the study.

Phase Activities Duration

• Finding a client for
the
Week 1 1 Week
system to be built
• Interview
with the client to
Week 2 gather 1 Week
requirements for
the system
• Initial planning phase

for system
development
• Designing the
Week 3-4 system based on 2 Weeks
client

specifications
 • Client consultation to
Week 5 1 Week
get approval on the
system design
• Work on Chapter 1

thesis (Introduction and

Background, Statement of
Week 6 1 Week
the Problem, Research
Questions, Objectives,

Significance of the Study)

• Follow-up interview
Week 7 1 Week
with the client for further
system clarification
• Begin system
development
Week 8 • Finalize and submit 1 Week

Chapter 1
• Start Chapter 2 (Review
of Related Literature)
Week 9 • Develop the 1 Week

login/registration and

home page functionality

of the system
• Submit Chapter 2
• Develop the feedback

Week 10 form and logout feature 1 Week

• Begin Chapter 3

(Research Design and

Week 11 Methodology) 1 Week
• Complete the

login/registration
database
 • Finalize and submit
Chapter 3
• Complete the database
Week 12 integration for 1 Week

registration/login
• Develop the order

placement and payment

processing features

• Develop browsing
system with calendar
Week 13-14
functionality 2 Weeks
• Complete the other

database that the system

needs.

• Conduct system testing

(usability, functionality,
Week 15 and bug fixing) 1 Week
• Prepare for client review

and feedback

Software Development Methodology

In the development of the online ordering, payment, and

browsing system for Vix Vapor Hub, a clear and effective software
development methodology is essential to ensure that the system
meets user requirements and functions efficiently. This study
adopts the Agile methodology, which is particularly well-suited for
projects that demand flexibility and iterative progress.

The Agile approach facilitates continuous improvement

and adaptation based on user feedback, enabling the
development team to make incremental changes and
enhancements throughout the project lifecycle. By prioritizing
collaboration and responsiveness to user needs, the Agile
methodology ensures that the final product aligns closely with
user expectations and provides a seamless experience.

Conceptual Framework

This study is structured using the Input-Process-Output (IPO)

model, which guides the development of the online ordering,
payment, and browsing system for Vix Vapor Hub

This model helps to systematically address customer needs,

identify technical requirements, and develop features that enhance
user experience and satisfaction
Figure 1: Conceptual Framework

Figure 1 illustrates the conceptual framework using the Input-Process-Output

model, highlighting the flow of information and activities involved in the

development of the system.

Data Analysis
In this study, both system development tools and statistical methods will

be used to analyze the performance of the developed system and to gather

insights about user experience and satisfaction.

4.1 System Development Tools

Database Management System (DBMS): We used MySQL to store and

manage data, including user information, orders, payments, and
browsing. This ensures that data is organized and can be easily
accessed for analysis.

Programming Languages & Libraries: The system will be developed

using PHP for backend processing, and JavaScript, HTML, and CSS for
the front-end, to provide a smooth and user-friendly interface.

Integrated Development Environment (IDE): Visual Studio Code will be

used to write, test, and debug the system code during development.

Data Visualization Tools: To present the data in an easy-to-understand

way, tools like Microsoft Excel will be used to create charts and graphs
that show system performance and user feedback.

4.2 Statistical Tools

Statistical Software: For analyzing survey data, we will use tools like
Microsoft Excel to calculate statistics like averages (mean), and to find
patterns in the data.
Excel: Microsoft Excel will also be used for basic data calculations and
to create visual summaries, such as charts showing user satisfaction

Statistical Tests: We will use statistical methods such as:

• T-tests to compare user satisfaction before and after using the

system.

• Regression analysis to see how different system features

(like ease of use) impact user satisfaction.