PHILIPPINE ONLINE GROUP BUYING: A MARKETING RESEARCH STUDY TO DETERMINE THE CUSTOMER PROFILE Prepared by MBA students from the University of the Philippines, Diliman

1. A Market Research Study
R. Bolanos, J. Capal, K. Dela Cruz, K. Neri, A. Santos • 12/08/11

2. AGENDA
» Introduction to Group Buying
» Research Objectives
» Research Method
» Results & Analysis
» Limitations
» Conclusion & Recommendations

3. INTRODUCTION

4. GROUP BUYING
Also known as:
Social Buying
Crowd Buying
Collecting Online Getting big deals and big discounts through the
Buying
power of collective online buying.
Daily Deals
Online group buying companies feature limited-time
deal offerings of partner merchants that must be
Social Couponing redeemed within a predetermined time frame.

5. GROUP BUYING
The Business Model:
Subscribers
User signs up with
purchase deals
group buying
and pay the
company to
group buying
access deal
company
Deals reach
group buying
company’s
network of
subscribers
Group buying Group buying
Subscriber
company company pays
redeems coupon
features deals on merchant’s share
at merchant
site of deal
Payments are spread
Merchants sign- out in installments over
up to offer deals lifecycle of deal

6. GROUP BUYING
Some of the group buying sites in the Philippines:

7. GROUP BUYING
Examples of recent deals:

8. GROUP BUYING
Group buying is still
in the nascent stage
in the Philippines.
2010-2015
estimated
compound annual
growth rate of
Philippine daily
deals: 67.74%!
Sources: Business Insider (2011), BIA/Kelsey (2011), Yahoo-Nielsen (2011)

9. RESEARCH OBJECTIVES

10. RESEARCH PROBLEM
Will online group buying be an effective
distribution channel for companies by
determining the customer profile of
current users in the Philippines?

11. RESEARCH OBJECTIVES
To gather information
Demographic
from a representative Information
sample of the
Philippine population
who participate in
online group buying to Technographic
Information
Geographic
Information
determine: Customer
Profile
Behavioral Psychographic
Information Information

12. RESEARCH METHOD

13. RESEARCH METHOD
Questionnaire Development
Crafting Pre-testing Finalizing
Sample Plan
Method: Online Referral Size: 250
Data Processing
Data Validation Data Coding Data Classification
Data Analysis
» Type of Sampling: Non-probabilistic
» Online Collection Tool: Kwik Surveys (http://www.kwiksurveys.com)
» Data Collection Period: November 13, 2010 to November 24, 2010

14. RESULTS & ANALYSIS

15. DEMOGRAPHIC

16. DEMOGRAPHIC
3% 1%
13%
Age
25%
Below 18 years old
18 – 25 years old
26 – 35 years old
They’re young
58% 36 – 45 years old
Above 45 years old
Gender They tend to be
44% Male
56% Female
female
Base = 250

17. DEMOGRAPHIC
1%
26% Status
Single
Married They’re single
73%
Separated
28%
Children They don’t have
72%
No Children
With Children
children
Base = 250

18. DEMOGRAPHIC
7%
3% 2%
9%
Employment
Unemployed
Student They work
Employed
79% Self-Employed
Homemaker
Income
10%
9% 2%
Source They earn
Allowance salaries
79% Business
No Income
Salary
Base = 250

19. DEMOGRAPHIC
Income
5% 7% Below Php5,000
30%
20%
Php5,000 to Php14,999
Php15,000 to Php24,999
They have
10%
12%
16%
Php25,000 to Php34,999
Php35,000 to Php44,999
money
Php45,000 to Php54,999
Php55,000 and above
Monthly Income
2% 1%
16%
Education
High school They’re smart
Vocational
College / University
81%
Post-graduate
Base = 250

20. GEOGRAPHIC

21. GEOGRAPHIC
2% 1%
8%
2% 1% Region
CALABARZON
Central Visayas
Davao Region They’re
NCR
Northern Mindanao urbanites
86% SOCCSKSARGEN
Western Visayas
Zamboanga Peninsula
33%
41% Housing They tend to live
Type
Living with relatives
with relatives
26% Rent
Owned
Base = 250

22. PSYCHOGRAPHIC

23. PSYCHOGRAPHIC
a
Number of Hours Spent
Working or Studying per Week
18% 8%
18%
They’re
Less than 20 hours
20 hours to below 40 hours
diligent
40 hours to below 50 hours workers
50 hours and above
56%
Q30: How many hours per week do you work and/or study? (Base = 250)

24. PSYCHOGRAPHIC
a
Usual Shopping Places
120.0%
100.0%
96.8%
80.0%
60.0% 54.4% 51.2%
They shop in
40.0%
malls
21.6%
20.0%
0.8%
0.0%
Malls Bazaars / Midnight Sales Online Direct Selling
Tiangge
Q7: Where do you usually go shopping? (Select all that apply.) (Base = 250)

25. PSYCHOGRAPHIC
a
Likes to Try Out New
Products and Services
7%
They’re
No adventurous
Yes
93%
Q5: Do you like to try out new products and services? (Base = 250)

26. PSYCHOGRAPHIC
Need to See Actual Product a
Considers Himself an
Before Purchase Impulse Buyer
36%
48%
52%
64%
No Yes
No Yes
Base = 250 Base = 250
More prefer to see actual product They’re smart and discerning
before purchase customers
Q4: Do you need to see the actual product before buying? Q6: Do you consider yourself an impulse buyer? (Base = 250)

27. BEHAVIORAL

28. BEHAVIORAL
Number of Coupons Purchased (within the Last 6 Months)
1%
1%
0 coupons
4% 3% 5%
4% 1 to 2 coupons
3 to 5 coupons
17% 6 to 10 coupons
36%
11 to 16 coupons
17 to 25 coupons
26 to 35 coupons
36 to 45 coupons
46 coupons & above
29%
Majority of online group buyers purchase 1-2 coupons
for the past 6 months.
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? (Base = 250)

29. BEHAVIORAL
Total Amount Purchased By Respondents (within the Last 6 Months)
2% 1% 1%
No Purchase
2% 5%
3% Below Php1,000
5% 11%
Php1,000 to Php2,500
4%
Php2,501 to Php4,000
7%
Php4,001 to Php6,000
Php6,001 to Php8,000
20%
10% Php8,001 to Php10,000
Php10,001 to Php15,000
Php15,001 to Php20,000
Php20,001 to Php25,000
13% Php25,001 to Php30,000
16%
Php30,001 to Php50,000
Php50,001 to Php100,000
Php100,001 and above
Majority spend between Php1,000 to Php2,500
for the past 6 months.
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category? (Base = 250)

30. BEHAVIORAL
Coupon Categories Purchased
4%
8%
28%
11%
Food & Dining
Travel
Activities & Events
Health & Beauty
18%
Technology & Gadgets
21% Fashion & Clothing
Other Products
10%
Top 2 Best-Selling Categories are:
Food & Dining and Travel.
Q8: So far, what products and services have you bought in group buying websites? (Select all that apply.) (Base = 250)

31. BEHAVIORAL
Number of Coupons Bought per Category
(within the Last 6 Months)
5% 3%
6%
Food & Dining
39% Travel
Activities & Events
26% Health & Beauty
Technology & Gadgets
Fashion & Clothing
Others
10% 11%
Top 2 product categories with most coupons sold:
Food & Dining and Health & Beauty.
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? (Base = 250)

32. BEHAVIORAL
Average Purchase Amount Per Coupon Per Category
(within the Last 6 Months)
8,000.00
7,000.00 6,683.01
6,000.00
5,000.00
4,027.02
4,000.00
3,000.00
2,000.00
1,098.23 1,032.41
1,000.00 579.43 586.94 620.58
-
Food & Dining Travel Activities & Events Health & Beauty Technology & Fashion & Clothing Others
Gadgets
Top 2 product categories with highest average purchase
amount: Travel and Technology & Gadgets.
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? and Q11: For the
past 6 months, what is your total purchase amount from group buying websites for each category? (Base = 250)

33. BEHAVIORAL
Food & Dining – Coupons Bought, Purchase Amount and Gender
35%
30%
25%
20% Females buy more Food
15% & Dining coupons
10% Male Female
compared to males.
5%
0%
1 to 2 3 to 5 6 to 10 11 to 16 17 to 25 26 to 35 46 coupons
coupons coupons coupons coupons coupons coupons and above
30.0%
25.0%
20.0%
Females spend more on
15.0%
the Food & Dining
Male Female
10.0%
category compared to
5.0% males.
0.0%
Below Php1,000 to Php2,501 to Php4,001 to Php6,001 to Php8,001 to Php10,001 to
Php1,000 Php2,500 Php4,000 Php6,000 Php8,000 Php10,000 Php15,000
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? Q11: For the past 6
months, what is your total purchase amount from group buying websites for each category? Q21: Sex (Base = 144)

34. BEHAVIORAL
Travel – Coupons Bought and Shopping Online
35.0%
32.8%
31.1% Online shoppers
30.0% purchase more
25.0%
travel coupons
than non-online
20.0% shoppers.
15.0%
10.0% 8.6%
5.0%
1.6% 1.6%
.8%
0.0%
1 to 2 coupons 3 to 5 coupons 6 to 10 coupons
Not Online Shoppers Online Shoppers
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? and Q7: Where
do you usually go shopping? (Base = 96)

35. BEHAVIORAL
Travel – Purchase Amount and Likes to Try New Products & Services
12.00%
Respondents
10.00%
who like to try
8.00% new products
6.00%
& services
spend more
4.00%
on travel
2.00% coupons.
0.00%
Do Not Like Trying New Products & Services Like Trying New Products & Services
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category? and Q5: Do you
like to try out new products and services? (Base = 96)

36. BEHAVIORAL
Activities & Events – Purchase Amount and Shopping at Midnight Sales
10.0%
9.3%
9.0% Midnight sale
8.0% 7.7% shoppers are
7.0% 6.6% likely to
6.0% 5.6% spend more
5.0% on deals for
4.0% Activities &
3.0% Events.
1.9% 1.9% 1.9%
2.0% 1.5%
1.0% .5%
0.0%
Below Php1,000 Php1,000 to Php2,501 to Php4,001 to Php6,001 to Php8,001 to
Php2,500 Php4,000 Php6,000 Php8,000 Php10,000
Not Midnight Sale Shoppers Midnight Sale Shoppers
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category? Q7: Where do you
usually go shopping? (Base = 43)

37. BEHAVIORAL
Health & Beauty - Coupons Bought, Total Purchase Amount and Gender
35.0%
30.0%
25.0%
20.0%
15.0% Male Female
10.0%
5.0% Females purchase
0.0% more Health & Beauty
1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 11 to 16
coupons
17 to 25
coupons
36 to 45
coupons
coupons than males.
25.0%
20.0%
15.0%
20.1% females spend
Male Female below Php1,000 for
10.0%
Health & Beauty
5.0%
coupons.
0.0%
Below Php1,000 to Php2,501 to Php4,001 to Php6,001 to Php8,001 to Php10,001 to
Php1,000 Php2,500 Php4,000 Php6,000 Php8,000 Php10,000 Php15,000
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category: health and beauty? Q11: For the past 6
months, what is your total purchase amount from group buying websites for each category: health and beauty? and Q21: Gender (Base = 91)

38. BEHAVIORAL
Technology & Gadgets – Coupons Bought, Purchase Amount and Gender
30%
25%
Males purchase
20%
more Technology
15% Male Female
& Gadgets
10%
coupons than
5%
females.
0%
1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 26 to 35 coupons
6%
More males
5%
spend between
4% Php2,501 to
3% Male Female Php4,000 for
2% Technology &
1% Gadget coupons
0% for the past 6
Below Php1,000 Php2,501 Php4,001 Php6,001 Php8,001 Php10,001 Php15,001 Php50,001 Php100,001 months.
Php1,000 to to to to to to to to and above
Php2,500 Php4,000 Php6,000 Php8,000 Php10,000 Php15,000 Php20,000 Php100,000
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category: technology and gadgets? Q11: For the
past 6 months, what is your total purchase amount from group buying websites for each category: technology and gadgets? and Q21: Gender (Base = 48)

39. BEHAVIORAL
Technology & Gadgets - Coupons Bought and Shopping Online
30%
26%
25%
Online shoppers
purchase more
20%
Technology &
15%
Gadgets coupons.
10% 9%
5%
2%
1% 1%
0%
1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 26 to 35 coupons
Not Online Shoppers Online Shoppers
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? and Q7:
Where do you usually go shopping? (Base = 48)

40. BEHAVIORAL
Fashion & Clothing – Coupons Bought, Purchase Amount and Monthly Income
45.0%
40.0%
Majority of Fashion & Clothing
35.0%
30.0% buyers buy 1-2 coupons and
25.0% have monthly income below
20.0%
Php5,000.
15.0%
10.0% 1 to 2 coupons
5.0%
3 to 5 coupons
0.0%
6 to 10 coupons
Below Php5,000
Php5,000 to Php14,999 to Php25,000 to Php35,000 to Php45,000 to Php54,999 and above
Php15,000 Php24,999 Php34,999 Php44,999 Php55,000
17 to 25 coupons
18.0%
16.0%
14.0% Higher income leads to higher
12.0% purchase amounts for Fashion &
10.0%
Clothing deals.
8.0%
6.0%
4.0% Below Php1,000
2.0% Php1,000 to Php2,500
0.0% Php2,501 to Php4,000
Below Php5,000 to Php15,000 to Php25,000 to Php35,000 to Php45,000 to Php55,000 Php4,001 to Php6,000
Php5,000 Php14,999 Php24,999 Php34,999 Php44,999 Php54,999 and above
Php25,001 to Php30,000
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category: fashion and clothing? Q11: For the past 6
months, what is your total purchase amount from group buying websites for each category: fashion and clothing? Q26: Monthly Income (Base = 33)

41. BEHAVIORAL
Reasons for Buying
120.0% Personal Use is
the reason why
100.0% 96.0%
respondents
80.0% purchase from
online group
60.0%
buying sites.
40.0% 35.6%
20.0%
0.0%
Personal Use As Gift
Q9: Reasons for buying. (Base = 250)

42. BEHAVIORAL
Mode of Payment
90.0%
81.2%
80.0%
70.0%
Credit cards are the most used
payment option
60.0%
50.0%
40.0%
30.0%
20.0%
15.2% 14.4%
10.0%
4.8% 5.6%
0.0%
PayPal Credit Card Debit Card Bank Deposit Bayad Center
Q12: Mode of Payment (Select all that apply.) (Base = 250)

43. BEHAVIORAL
Level of Importance of Purchase Considerations
100%
90% 16% 16%
32% 32%
80% 40% 36% 38% Value for Money
50%
70% 60% 27% 29% and Appeal of
60%
75% Product/Service
50% 38%
are the most
40%
50% 46% 44%
important
41% 36% 36%
35%
attributes for
30%
30% group buyers
20% 23%
17% 13%
11% 11% 9% 12% 12%
10% 9%
4% 2% 2% 4%
1% 1% 1% 2% 1%
5% 6% 6% 6% 6% 8% 7% 6% 5% 5%
0%
Very Important
Important
Neutral
Unimportant
Very Unimportant
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) (Base = 250)

44. BEHAVIORAL
Appeal of Product and Service and Source of Income
100%
90% The level of
80%
importance of
50.0% appeal of product
57.9%
70%
65.2% or service ranks
70.8%
60% high across all
sources of
50%
income
40%
33.3%
30%
31.0%
20% 26.1%
25.0% Very Important
Important
10% 4.1%
16.7%
4.3% 1.5% Neutral
4.2% 4.3% 5.6%
0% Unimportant
Allowance Business No Income Salary
Very Unimportant
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q25: Source of Income (Base = 250)

45. BEHAVIORAL
Appeal of Product and Service and Monthly Income
100%
Across all monthly
90%
income
80% ranges, appeal of
46.2%
52.9%
48.0%
51.3% 51.6% product or service
70% appears to be a
70.7%
very important
60%
84.0% purchase
50% consideration
especially for the
40%
30.0% respondents with
30% 46.2% 29.4% monthly income
38.5%
48.4%
above Php45,000
20% 21.3%
10.0%
5.9%
Very Important
10% 12.0%
5.1% 2.7% Important
11.8% 12.0%
7.7% 5.1% 2.7%
4.0% 2.7% Neutral
0%
Below Php5,000 Php5,000 to Php15,000 to Php25,000 to Php35,000 to Php45,000 to Php55,000 and Unimportant
Php14,999 Php24,999 Php34,999 Php44,999 Php54,999 above
Very Unimportant
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q26: Monthly Income (Base = 250)

46. BEHAVIORAL
Value for Money and Hours Spent Working or Studying
100%
90%
The greater the
80%
hours spent
70% 60.0% working or
71.7%
76.4%
studying, the more
60% 81.8%
important value
50% for money
40%
becomes
15.0%
30%
5.0%
20% 19.6%
17.9%
13.6% Very Important
10% 20.0%
2.2% Important
0.7%
6.5% 5.0% 2.3%
0% 2.3% Neutral
Less than 20 hours 20 hours to below 40 40 hours to below 50 50 hours and above Very Unimportant
hours hours
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q30: How many hours per week do you work and/or study? (Base =
250)

47. BEHAVIORAL
Percentage of Discount & Need to See Actual Product before Purchase
100%
90%
31.5% The percentage of
80%
49.2% discount alone will
70% drive the buyer to
purchase the coupon
60%
even without seeing
50% the actual item
43.8%
40%
37.5%
30%
Very Important
20% Important
13.8%
Neutral
10% 7.5% 2.3% Unimportant
1.7% 8.5%
4.2% Very Unimportant
0%
Do Not Need to See Actual Product Before Buying Need to See Actual Product Before Buying
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q4: Do you need to see the actual product before buying? (Base =
250)

48. BEHAVIORAL
Percentage of Discount and Shopping in Bazaars or Tiangge
100%
90%
24.6%
Bazaar shoppers
80%
52.9%
value bargain deals
70%
and regard the
60% percentage of
50%
discount with utmost
52.6%
importance
40%
30% 30.9%
Very Important
20%
Important
14.0%
8.1% Neutral
10%
2.6% 1.5% Unimportant
6.1% 6.6%
0% Very Unimportant
Not Bazaar / Tiangge Shoppers Bazaar / Tiangge Shoppers
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q7: Where do you usually go shopping? (select all that apply.) (Base
= 250)

49. BEHAVIORAL
Location of Merchant and Hours Spent Working or Studying
100%
90% As the number of hours
80%
spent in working or
45.0% 43.5%
49.3% studying
70% 59.1%
increases, there’s also a
60% higher concern for the
50%
location of the
25.0%
merchant vis-à-vis the
40%
37.0% convenience of using
37.1%
30% the purchased coupon
10.0% 31.8%
20%
10.9%
10% Very Important
20.0% 8.6%
2.2% Important
0.7% 6.8%
6.5% 4.3%
0% 2.3% Neutral
Less than 20 hours 20 hours to below 40 hours
40 hours to below 50 hours50 hours and above Unimportant
Very Unimportant
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) Q30: How many hours per week do you work and/or study? (Base = 250)

50. BEHAVIORAL
Location of Merchant and Need to See Actual Product before Buying
100%
90%
The convenience
brought about by the
80% 40.0%
merchant’s location is
70% 60.0% more critical than the
60%
appearance of the
item for buyers who
50%
do not need to see
40% 39.2% actual product prior
30% the purchase
30.8%
20%
13.1% Very Important
10% Important
4.2%
1.7% 7.7% Neutral
0% 3.3%
Unimportant
Do Not Need to See Actual Product Before Need to See Actual Product Before Buying
Buying Very Unimportant
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q4: Do you need to see the actual product before buying? (Base =
250)

51. BEHAVIORAL
Good Reviews from Customers and Level of Education
100%
90%
31.0%
80%
43.6% Educated individuals
50.0%
70% tend to be more
discriminating of
60%
group buying deals by
50% 100.0% 36.9%
seeking opinions from
40% 16.7%
35.9%
other customers
30%
16.7%
Very Important
20% 24.1%
Important
10% 20.5% Neutral
16.7% 2.5%
5.4% Unimportant
0%
Very Unimportant
High school Vocational College / University Post-graduate
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q29: High level of education attained (Base = 250)

52. BEHAVIORAL
Percentage of Respondents who
will Repurchase
2%
98% are willing
to repurchase
online group
buying coupons
98%
Will Not Repurchase Will Repurchase
Q14: Will you buy again from group buying websites? (Base = 250)

53. BEHAVIORAL
Categories to Repurchase
80.0%
70.0%
70.0% 66.0%
60.0% Food & Dining, Travel
50.0%
42.9%
and Health & Beauty
40.0%
38.5%
are the top coupon
29.1%
30.0% 27.5%
categories for
20.0%
repurchase
10.0%
1.2%
0.0%
Food & Travel Activites & Health & Technology Fashion & Other
Dining Events Beauty & Gadgets Clothing Products
Q15: If yes, what products and services are you interested in buying?
(Select all that apply.) (Base = 246)

54. BEHAVIORAL
Categories to Repurchase by Gender
100%
90%
80%
33% Females tend to
70% 60% 58% 61%
55%
repurchase products
60% 78%
50%
83%
or services from the
40%
67%
Health & Beauty and
30%
20% 40% 42% 39%
45% Fashion & Clothing
10%
0%
17% 22%
categories
Food & Travel Activites & Health & Technology Fashion & Other
Dining Events Beauty & Gadgets Clothing Products
Male Female
Q15: If yes, what products and services are you interested in buying?
(Select all that apply.) and Q21: Sex (Base = 246)

55. TECHNOGRAPHIC

56. TECHNOGRAPHIC
Number of Hours Actively
Online Per Day
14% 3% They’re busy!
21%
12% Below 1 hour
1 to below 3 hours
43% spend only
14%
3 to below 5 hours
5 to below 7 hours
1 to 5 hours
22%
7 to below 9 hours online per day
14% 9 to below 11 hours
11 hours and above
Q2: Number of hours actively online per day (Base = 250)

57. TECHNOGRAPHIC
Internet Access Location
100.0%
88.8%
90.0%
80.0% 73.6%
70.0% Most go online
60.0%
50.0% 44.4% at home or in
40.0%
30.0%
the office
20.0% 13.2%
8.8%
10.0%
1.6%
0.0%
Home Office School Internet Cafes Mobile /Smart Wi-fi Hotspots
Phones/ Tablet
PC
Q3: Internet access location (Select all that apply.) (Base = 250)

58. TECHNOGRAPHIC
Awareness and Purchase Usage Level of
Philippine Online Group Buying Website
100.0%
90.0%
80.0% Top websites are:
70.0% 1. Ensogo
60.0% 2. CashCashPinoy
50.0% 3. Deal Grocer
40.0% 4. Metro Deals
30.0%
20.0%
10.0%
0.0%
Awareness Purchase Usage
Q16: Are you aware of the following group buying websites? (Select all that apply.) and Q17: Which group buying websites have
you bought from? (Select all that apply.) (Base = 250)

59. TECHNOGRAPHIC
Reasons for Purchase Usage of
Philippine Online Group Buying Websites
70.0%
60.0%
59.5% 59.1% Top reasons are price and product line
50.0%
40.9% 41.3%
40.0%
30.0%
20.0% 16.6%
12.1%
10.0%
0.8%
0.0%
Price Product Line Customer Service Ease of Use Aesthetics Reputation / Familiarity
Popularity
Q18: Why do you prefer buying from these websites? (Select all that apply.) (Base = 250)

60. TECHNOGRAPHIC
11% 11%
Age
33%
45%
Below 18 years old
18 – 25 years old
They’re young
26 – 35 years old
36 – 45 years old
11%
Gender They tend to be
Male male
Female
89%
Base = 9

61. TECHNOGRAPHIC
11%
Civil
Status
33% 56%
Single
They’re single
Married
Separated
11% Occupation They’re
56% 33%
Unemployed
Student
employed
Employed
Base = 9

62. TECHNOGRAPHIC
28% Gender
They tend to be
72%
Male
Female
female
3%
5% Income They earn
Source
Allowance
salaries
Business
92%
Salary
Base = 36

63. TECHNOGRAPHIC
39%
Gender They tend to be
61% Male
Female
female
3%
Income
37%
5%
18% Below Php5,000
They have
12%
Php5,000 to Php14,999
Php15,000 to Php24,999 money
Php25,000 to Php34,999
11% 14% Php35,000 to Php44,999
Php45,000 to Php54,999
Php55,000 and above
Base = 100

64. TECHNOGRAPHIC
18% Civil
Status
They’re single
Single
82% Married
26% Housing They live with
Type
52%
Living with relatives
relatives
22%
Rent
Owned
Base = 100

65. TECHNOGRAPHIC
2%
10%
6% Occupation
Student
They’re
Employed
Self-Employed
employed
82%
Homemaker
2%
Income
3%
13%
Below Php5,000
They have more
48%
13% Php5,000 to Php14,999
Php15,000 to Php24,999 money
Php25,000 to Php34,999
11%
Php35,000 to Php44,999
10%
Php45,000 to Php54,999
Php55,000 and above
Base = 61

66. TECHNOGRAPHIC
23%
Gender They tend to be
77%
Male
Female
female
8%
7%
Income They earn by
Source
Allowance
salary
85% Business
Salary
Base = 75

67. LIMITATIONS

68. LIMITATIONS
Respondents may not be
representative of Philippine online
group buying population
With online survey, researchers are
not able to validate the responses
Not all referred respondents may be
available during the time the survey
was conducted

69. RECOMMENDATIONS

70. RECOMMENDATIONS
Align deal offerings with the customer profile of
online group buyers in the Philippines

71. RECOMMENDATIONS
Typical Philippine Online Group Buyer:
Demographics:
Young Female Single Working Have Money Smart
Geographics:
Live in NCR Urbanites Live with Relatives
Psychographics:
Shop in Malls Diligent Workers Adventurous Not Impulsive Buyers
Technographics:
Spend a Few Hours Online Access Internet at Home or Office

72. RECOMMENDATIONS
They are urbanites living • Offer catchy deals that fit their on-
in the National Capital the-go lifestyle.
Region
• Offer luxury items that are value-
They are employed and
earn high income. for-money

73. RECOMMENDATIONS
• Online group buying can be used
They want to try out new to pilot-run new businesses.
products and services
• Companies and websites must
Average monthly work hand-in-hand to promote
purchase amount ranges and increase awareness of their
from P167 to P417 deals.

74. RECOMMENDATIONS
Each Philippine group • Companies must know the target
buying website has market for their deals.
unique set of customers

75. R. Bolanos, J. Capal, K. Dela Cruz, K. Neri, A. Santos • 11/29/11

76. BACK-UP SLIDES

77. BEHAVIORAL
Average Purchase Amount Per Person Per Category
(within the Last 6 Months)
14,000.00
12,000.00 11,486.43
10,000.00
8,054.04
8,000.00
6,000.00
4,000.00
2,680.08 2,562.55 2,728.50
2,382.11 2,115.70
2,000.00
-
Food & Dining Travel Activities & Events Health & Beauty Technology & Fashion & Clothing Others
Gadgets
Top 2 product categories with highest purchase amount per person:
Travel and Technology & Gadgets.
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category? (Base = 250)

78. BEHAVIORAL
Average Coupons Purchased Per Person Per Category
(within the Last 6 Months)
5.00
4.50 4.32
4.11
4.00
3.60
3.50
3.00 2.64
2.50 2.33
2.00
2.00 1.72
1.50
1.00
0.50
-
Food & Dining Travel Activities & Events Health & Beauty Technology & Fashion & Clothing Others
Gadgets
Top 2 product categories with the most number of coupons bought:
Health & Beauty and Food & Dining.
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? (Base = 250)

79. BEHAVIORAL
Food & Dining – Coupons Bought and Gender
60.0%
50.0% Females buy more Food & Dining
coupons compared to males.
40.0%
30.0%
Male
Female
20.0%
10.0%
0.0%
0 Coupons 1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 11 to 16 17 to 25 26 to 35 46 coupons and
coupons coupons coupons above
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? Q21: Sex
(Base = 250)

80. BEHAVIORAL
Food & Dining - Purchase Amount and Gender
60.0%
50.0%
Females spend more on the Food &
Dining category compared to males.
40.0%
30.0%
Male
Female
20.0%
10.0%
0.0%
No Purchase Below Php1,000 Php1,000 to Php2,501 to Php4,001 to Php6,001 to Php8,001 to Php10,001 to
Php2,500 Php4,000 Php6,000 Php8,000 Php10,000 Php15,000
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category? Q21: Sex
(Base = 250)

81. BEHAVIORAL
Travel Coupons Bought and Shopping Online
70.0%
60.0%
Online shoppers
50.0% purchase more
travel coupons
40.0%
than non-online
30.0% shoppers.
20.0%
10.0%
0.0%
0 Coupons 1 to 2 coupons 3 to 5 coupons 6 to 10 coupons
Not Online Shoppers Online Shoppers
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? Q7:
Where do you usually go shopping? (Base = 250)

82. BEHAVIORAL
Activities & Events - Purchase Amount and Shopping at Midnight Sales
90.0%
80.0%
Midnight sale
70.0%
shoppers are
60.0% more likely to
50.0% spend more
40.0%
on deals for
Activities &
30.0%
Events.
20.0%
10.0%
0.0%
No Purchase Below Php1,000 Php1,000 to Php2,501 to Php4,001 to Php6,001 to Php8,001 to
Php2,500 Php4,000 Php6,000 Php8,000 Php10,000
Not Midnight Sale Shoppers Midnight Sale Shoppers
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category?
(Base = 250)

83. BEHAVIORAL
Gender and Number of Coupons Bought
for Health & Beauty Category
100.0%
90.0%
80.0% Females purchase
70.0% more Health &
60.0% Beauty coupons than
50.0% males.
40.0%
30.0%
20.0%
10.0%
0.0%
0 Coupons 1 to 2 3 to 5 6 to 10 11 to 16 17 to 25 36 to 45
coupons coupons coupons coupons coupons coupons
Male Female
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category: health and
beauty? and Q21: Gender (Base = 250)

84. BEHAVIORAL
Gender and Purchase Amount
for Health & Beauty Category
100.0%
90.0%
More females
80.0%
spend below
70.0%
60.0%
Php1,000 for
50.0%
Health & Beauty
40.0%
coupons for the
30.0% past 6 months.
20.0%
10.0%
0.0%
No Below Php1,000 to Php2,501 to Php4,001 to Php6,001 to Php8,001 to Php10,001
Purchase Php1,000 Php2,500 Php4,000 Php6,000 Php8,000 Php10,000 to
Php15,000
Male Female
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category: health
and beauty? and Q21: Gender (Base = 250)

85. BEHAVIORAL
Technology & Gadgets – Coupons Bought and Civil Status
60%
50%
50% Married
respondents
40% purchase more
Technology &
30%
25% Gadget
20% coupons.
15%
10%
1% 2%
0%
1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 26 to 35 coupons
Single Married Separated
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? Q21: Sex
(Base = 250)

86. BEHAVIORAL
Technology & Gadgets – Coupons Bought and Civil Status
90%
Married
80%
respondents
70%
60%
purchase more
50%
Technology &
40%
Gadget coupons.
30%
20%
10%
0%
0 Coupons 1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 26 to 35 coupons
Single Married Separated
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? Q21: Sex
(Base = 250)

87. BEHAVIORAL
Gender and Number of Coupons Bought
100.0%
for Technology & Gadgets Category
90.0%
80.0% Males
70.0% purchase more
60.0%
Technology &
50.0%
Gadgets
40.0%
coupons than
females.
30.0%
20.0%
10.0%
0.0%
0 Coupons 1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 26 to 35 coupons
Male Female
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category:
technology and gadgets? and Q21: Gender (Base = 250)

88. BEHAVIORAL
Gender and Purchase Amount
for Technology & Gadgets Category
100.0%
90.0%
80.0% More males spend
70.0% between Php2,501 to
60.0% Php4,000 for Technology
50.0% & Gadget coupons for
40.0%
the past 6 months.
30.0%
20.0%
10.0%
0.0%
No Purchase Below Php1,000 to Php2,501 to Php4,001 to Php6,001 to Php8,001 to Php10,001 Php15,001 Php50,001 Php100,001
Php1,000 Php2,500 Php4,000 Php6,000 Php8,000 Php10,000 to to to and above
Php15,000 Php20,000 Php100,000
Male Female
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category:
technology and gadgets? and Q21: Gender (Base = 250)

89. BEHAVIORAL
Technology & Gadgets - Coupons Bought and Shopping Online
100%
90%
Online shoppers purchase more
80%
Technology & Gadgets coupons.
70%
60%
50% Not Online Shoppers
Online Shoppers
40%
30%
20%
10%
0%
0 Coupons 1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 26 to 35 coupons
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? Q7:
Where do you usually go shopping? (Base = 250)

90. BEHAVIORAL
Fashion & Clothing – Coupons Bought, Purchase Amount and Civil Status
60.0%
50.0%
Single Married Separated Respondents who
40.0%
30.0%
are single purchase
20.0% more Fashion &
10.0% Clothing coupons.
0.0%
1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 17 to 25 coupons
60.0% Respondents who
50.0%
Single Married Separated
are single spend
40.0%
more on Fashion &
30.0%
Clothing deals.
20.0%
10.0%
0.0%
Below Php1,000 Php1,000 to Php2,501 to Php4,001 to Php25,001 to
Php2,500 Php4,000 Php6,000 Php30,000
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category: fashion and clothing? Q11: For the past 6
months, what is your total purchase amount from group buying websites for each category: fashion and clothing? Q22: Civil Status (Base = 250)

91. BEHAVIORAL
Fashion & Clothing – Coupons Bought, Purchase Amount and Civil Status
100.0%
80.0%
60.0%
Respondents who are single
Single
40.0%
Married
purchase more Fashion &
20.0% Separated Clothing coupons.
0.0%
0 Coupons 1 to 2 3 to 5 6 to 10 17 to 25
coupons coupons coupons coupons
100.0%
90.0%
80.0%
70.0%
60.0%
50.0% Single
Respondents who are
40.0%
30.0%
Married single spend more on
20.0%
10.0%
Separated
Fashion & Clothing
0.0% deals.
No Purchase Below Php1,000 to Php2,501 to Php4,001 to Php25,001
Php1,000 Php2,500 Php4,000 Php6,000 to
Php30,000
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category: technology and gadgets?
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category: technology and gadgets?
Q22: Civil Status (Base = 250)

92. BEHAVIORAL
Fashion & Clothing – Coupons Bought and Monthly Income
100.0%
90.0%
Majority of
80.0% Fashion &
70.0% Clothing buyers
60.0% buy 1-2 coupons
50.0%
and have
40.0%
monthly income
30.0%
below Php5,000.
20.0%
10.0%
0.0%
Below Php5,000 to Php15,000 to Php25,000 to Php35,000 to Php45,000 to Php55,000
Php5,000 Php14,999 Php24,999 Php34,999 Php44,999 Php54,999 and above
0 Coupons 1 to 2 coupons 3 to 5 coupons 6 to 10 coupons 17 to 25 coupons
Q10: For the past 6 months, how many coupons have you bought from group buying websites for each category? Q26:
Monthly Income (Base = 250)

93. BEHAVIORAL
Fashion & Clothing - Purchase Amount and Monthly Income
100.0%
90.0%
80.0%
70.0%
Higher income
60.0% leads to higher
50.0%
purchase amounts
40.0%
30.0%
for Fashion &
20.0% Clothing deals.
10.0%
0.0%
Below Php5,000 to Php15,000 Php25,000 Php35,000 Php45,000 Php55,000
Php5,000 Php14,999 to to to to and above
Php24,999 Php34,999 Php44,999 Php54,999
No Purchase Below Php1,000 Php1,000 to Php2,500
Php2,501 to Php4,000 Php4,001 to Php6,000
Q11: For the past 6 months, what is your total purchase amount from group buying websites for each category:
technology and gadgets? (Base = 250)

94. BEHAVIORAL
Good Reviews & Need to See Actual Product before Buying
100%
90%
23.8%
One-tenth of the
80% 40.8%
respondents who
need to see the
70%
product before
60%
40.0%
buying deem the
50% reviews from other
35.0%
customers
40%
unimportant
30%
26.2%
20% Very Important
20.0% Important
10%
3.1% Neutral
1.7% 6.9% Unimportant
0% 2.5%
Do Not Need to See Actual Product Before Buying Need to See Actual Product Before Buying Very Unimportant
Q13: Please check the box that represents how you feel regarding the considerations in purchasing product or service from group
buying websites: (Check one box only per consideration.) and Q4: Do you need to see the actual product before buying? (Base =
250)