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Effects of Facebook Selling on

the Sales of Online Seller in

Subay, Cardona, Rizal

Group 1
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Chapter 1

THE PROBLEM AND ITS BACKGROUND

This chapter presents the introduction, background of the study, scope

and limitation of the study, statement of the problem, hypothesis, theoretical

framework, conceptual framework and definition of terms

Introduction

In the digital age, the landscape of commerce has witnessed a remarkable

transformation, with social media platforms at the forefront of this revolution.

Facebook, a global social networking giant, has emerged as a dynamic hub for

online selling. The integration of e-commerce within the Facebook ecosystem

has not only reshaped the way individuals and businesses interact but has also

opened up new avenues for economic opportunities. However, with the

numerous sellers and businesses using Facebook as a selling platform, standing

out and getting noticed can be challenging. Increased competition can lead to

lower visibility for individual sellers. Use of the internet and e-commerce has

been growing rapidly since the last decade(Yörük et. al., 2011).According to the

consumer psychologist Phillip Graves, people tend to feel safer buying products

that are predictable and familiar online (Braff, 2014; Mawis, 2019).Online

shopping saves crucial time for modern people because they get so busy that

they cannot or unwilling to spend much time shopping (Rahman et. al., 2018).
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Mark Elliot Zuckerberg is an American business magnate, computer

programmer, internet entrepreneur, and philanthropist. He co-founded the social

media service Facebook and its parent company Meta Platforms (formerly

Facebook, Inc.), of which he is executive chairman, chief executive officer and

controlling shareholder.

According to DTI(Department of Trade and Industry) , the Philippines have

2 millions online sellers around the country that uses Facebook app as a selling

platform. This study aims to fill the knowledge gap by investigating the effects of

this platform on the sales and how it can be improved.

The legal basis that is connected to our study is The Tax Reform

Acceleration and Inclusion (TRAIN) Act of 2018 (Republic Act No. 10963).

It's stated that:

"Online seller’s are required to register with Bureau of Internal

Revenue (BIR) and pay taxes on their sales. The BIR has

implemented a system called the “electronic filling and payment

system”(EFPS) To facilitate the registration and tax payment

process for online seller." This Republic Act is connected to this

study because even online sellers also have to pay taxes because

if they don't follow this act they are already violating the Republic

Act 10963.

The researchers aim to find out the effect of facebook selling on the sales

of online sellers in Subay, Cardona, Rizal. Also this study will help other sellers to

improve their business.

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Background of the Study

In recent years, the rise of online marketplaces has transformed the way

individuals and businesses engage in commerce. Among these platforms,

Facebook has emerged as a significant player in the world of online selling. The

practice of "Facebook selling" refers to the act of buying and selling various

goods and services through the social media platform, Facebook.

According to Rohit Shiwale that Facebook was the first social network to

surpass one billion registered accounts and currently sits at more than 3.03

billion monthly active users. Many people have enjoyed Facebook because it has

many features. It can also be used in business, such as marketing strategy,

where you can post the products you want to sell.

A company's sales are influenced by many kinds of factors, such as the

strategies they use to present their goods to their intended market. Techniques

they use to keep their customers loyal and steps they take to show the reliability

of their company. Market competition is one of the things that affects sales the

most because everyone wants to make money and will not stop at nothing to

keep the business alive.

Facebook is the first thing that comes to people's mind when they say

online selling. Since there are many users of Facebook, many people will see

their product here. It is also easy to introduce the business here because they

just post the product or service they want to sell. It will also be easier to

communicate with their customers because they do not have to come to them

physically.
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The purpose of this study is to know the effects of Facebook selling on the

sales of online sellers in Subay, Cardona, Rizal. It also aims to inform sellers or

those who want to become online sellers about Facebook selling. This study also

aims to fill the research gap about this topic so that sellers can improve their

business even more. One is how frequent the sellers upload their product so that

their target markets can see it. The participants for this study will increase their

knowledge of Facebook selling. Also they will know the effect of Facebook selling

on the sales and how they can keep the business alive.

Scope and Limitation of the Study

This study focuses on the effects of Facebook selling on the sales of

online sellers in barangay Subay. The data collection will conduct during month

of November to month of December 2023.It involved all the sellers in barangay

Subay that uses Facebook as a sales platform.

This study will only cover the sellers that are using Facebook apps as a

selling platform. Each of the respondents is given the same questionnaires to

answer. The results of this study will be applicable only to the respondents of this

study and will not be used as a measure to the effects of other platforms that

affect the sale who do not belong to the population of this study. The main source

of data is the questionnaire, which is prepared by the researchers.

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Statement of the Problem

This study aimed to determine the effects of Facebook selling on the sales
of online sellers in Subay, Cardona, Rizal.

Specifically, it will seek answer to the following questions:

1. How many online sellers use Facebook as a sales platform?

2. How frequently sellers upload their product?
3. How much income do they make using Facebook selling?
4. Is there a significance between how frequent the sellers upload their

products and how much income they make in the month of October?

Hypotheses

This study will test the null hypothesis that there is no significance between

how frequent the sellers upload their products and how much income they make.

Theoretical Framework

This study will be based on the theory of Chaffey's theory-Social Media

Marketing. Monitoring and facilitating customers interaction, participation and

sharing through digital media to encourage positive engagement with a company

and its brands leading to commercial value. Interactions may occur on a

company site, social networks and other third party websites. (Chaffey. D,

2012).The second one is the Social Proof Theory. It is popularized by

psychologist Robert Cialdini, maintains that a person who does not know what

the proper behavior for a certain situation is, will look to other people to imitate

what they are doing and to provide guidance for his actions. According to
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Psychology Notes HQ, in marketing the Social Proof Theory has been and

continues to be one of the most effective means of persuading consumers to buy

a product. Supplementing products with tag lines such as “9 out of 10 doctors

recommend…” or “the most popular…,” and using testimonials significantly

increase the chances of the product being bought.

The first theory tells that you should be able to maintain interaction with

your customers so that they have good feedback on your product and can be an

opportunity to sell your product more. In Facebook selling, many people will see

their product, so their customers should see a good feedback about that product

so the customers will be more eager to buy if their fellow consumers have a good

feedback on that specific product.

The last theory tells that when a product is popular, it attracts the eyes of

customers more. They also prefer to buy from online sellers who have a lot of

buyers because they know that the quality of the product they are selling is good

so they don't think about their own decisions. In Facebook selling, many products

are uploaded that sell quickly because the product they are selling is popular. It

becomes even more salable because customers are encouraged to buy that

product because of the influence of other customers.

Conceptual Framework

This conceptual framework aims to provide a structured approach to

explore the effects of Facebook selling on the sales of online sellers in Subay,

Cardona, Rizal.
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The factors listed in the first frame are those that have the ability to affect

an online seller's sales: product quality, price, and frequency of product uploads.

The second one refers to the methodology that the researchers will use to

gather the data required for this investigation. This data will support the validity of

the study and help future researchers who want to carry out a related study.

The third one refers to the study's findings and examines how Facebook

Selling affects online sellers' sales. Here, it will be determined whether or not

online sellers who used the facebook app as a selling platform saw a change in

their sales.

The last is the recommendation of using facebook app as a selling

platform to all the sellers that wanted to increase their sales.

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In
put

Pr
ocess
Output

Price
Quality of
Products Using online Effects on the
survey sales of online
questionnaire sellers
How frequently
sellers upload
their products

F
eedback

Recommendation of using Facebook

app as a selling platform.

Figure 1

"Effects of Facebook selling on the sales of online sellers in Subay, Cardona,

Rizal”
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Definition of Terms

The following terms are defined for better understanding of the study.

Digital Media - Any type of media that is distributed through electronic

devices is considered digital media. Electronic devices can be used to create,

view, alter, and distribute this type of media. Software, video games, movies,

websites, social media, and online advertising are all examples of digital media.

E-commerce - Online purchasing and selling of products and services is

known as e-commerce. Affiliate marketing strategies are also a possible part of

the definition of an ecommerce business. To increase online sales, you can use

ecommerce platforms like your own website, a well-known retailer like Amazon,

or social media.

Philanthropist - is a person who contributes time, money, experience, skills,

or talent to improve the world. No matter their social standing or financial level,

anyone can be a philanthropist.

Sales. The money you get from selling the product. It is different from profit

because the expenses have been deducted from the profit, unlike sales, the

expenses of the business have not been deducted

Sales Platform - are resources and tools for interaction that assist companies

in monitoring and controlling sales activity. From there, they may simplify and

enhance their sales procedure.

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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the foreign literature, local literature, foreign studies

and local studies relevant to this study.

Variables

The following are the variables that are found to have bearing on the conduct

of the study such as Facebook selling, income of online sellers, numbers of

sellers using Facebook app as a sale platform and numbers of e-commerce

consumer.

Literature

In today’s 21th century, technologies are becoming a much bigger

importance. According to Alalwan, Rana, Algharabat and Tarhini that in people's

everyday life lots of things are controlled with the help of technologies.

Worldwide there are more than 1.5 million brand pages and the number is still

growing every day (Jeanjean, 2012). Because of these facts it is not wondering

that companies and organizations using social media platforms to attract new

users who can be potential customers (Luarn, Lin and Chiu, 2015).Most

companies are using social media these days because this generation is

continuing to improve so a business must keep up with the trends. The

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communication effect of Facebook brand pages with a wide range of users is a

chance for organizations and a big possibility to become more popular and

successful. With help of social media and technology market dynamics are

changing. They can threaten competitive positions of companies and influence

their sales increase. (Alalwan et. al., 2016).It is important to know the position of

competitors so that the business can adjust immediately and not be left behind

by other businesses. As there is an increasing interest and need for sustainable

marketing, lots of companies try to use social media for green advertises from

the background of sustainability (Minton et. al., 2012). They use Facebook apps

to promote their product or service so that more customers can see it and it also

increase their income.

As of 2021, the Philippines, as the world's social media capital, had the

highest social media usage rate, with approximately 60% higher than the

average rate for other countries and an average of 11 hours per day. In

comparison to almost 9 hours per day last year, the pandemic has clearly

created a jump in numbers, as more individuals are on their phones while at

home. Various characteristics of marketing messages received through

Facebook were discovered to have varying degrees of significance with

purchase intent. Purchase intention is significantly connected with

informativeness, certainty, and empathy. Access, reliability, and responsibility

are less important than buying intent. (Casimiro, A. V., et. al,

2022).Corresponding to that, because of Facebook's enormous potential as a

marketing tool for businesses, it was strongly advised that businesses,

particularly small businesses that have not yet optimized their online profitability
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prospects, polish their strategies to improve their online presence, particularly

on Facebook and other social networking sites. (Casquite, N., 2012).This

reveals that the use of Facebook app improves the profitability of a business. It

is encouraged that the business should use Facebook selling.

Studies

The findings of a case study conducted in Saudi Arabia states that, “Since

Facebook was hypothesized as the ideal platform for an organization in Saudi

Arabia to create a social marketplace, and there is a relationship between

Organization's presence on Facebook and the marketing effectiveness;

a thorough breakdown of the site’s features and environment was also

necessary” (Al-Hadban, N., et. al., 2014). The expansion of Small and Medium

Enterprises (SMEs) in Indonesia necessitates great methods, particularly

marketing strategies, to expand their market share and improve the quality of

their products or services. Due to SMEs' lack of human and financial resources,

companies must do online marketing to reach their customers, speed up

transactions, and provide better customer service, all while saving money on

marketing campaigns and other expenses. Facebook, one of the most popular

social media platforms on the planet, may help SMEs by utilizing its capabilities,

which include: For marketing objectives, use your Facebook profile, group, and

fans page. In reality, the majority of SMEs now use Facebook as a marketing

tool. (Handayani, P. W., & Lisdianingrum W.. 2012).Facebook is one of the most

popular social media platforms, so businesses use it in promoting their products,

especially if they are just starting a business and lack of employees.

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Facebook's Emerging Trends Research notes that, around 84 percent of

Filipinos are expecting that the demands on their time will increase in the near

future. This means they will be doing more things in the limited time they have in

a day (Lumawag, R. J., 2021). According to the Statistics Portal, the Philippines

had 47.3 million e-commerce consumers. It can avoid heavy traffic, hot weather,

and other stressful situations because it is more convenient and easier to use.

However, despite the fact that internet selling provides more benefits than

conventional enterprises. It, like other businesses, nonetheless faces

challenges. For that, online sellers should have excellent communication skills

to attract customers. They should be able to improve their marketing methods

as well. (Albar. R. M.. et. al., 2019). It is said here that online selling is one of the

good tools or keys to make your business successful. Consumers will also be

less stressed because they no longer have to leave the house and crowd people

outside just to buy the product they want to buy.