Modelling the barriers of online shopping in the Philippines using the ISM-MICMAC approach

Abstract

With a significant share of the Philippine population going online, online shopping has become an emerging trend. As the number of online shopping transactions increases daily, it has become increasingly important to understand the barriers that hinder the market. Despite its importance, current literature considers buyers' perspectives with limited insights on the sellers' perceptions. Understanding the sellers' point of view provides a holistic analysis of these barriers for better practical insights. As a case in point, with the Philippines, this study attempts to identify the barriers of online shopping and their interrelationships, both from the sellers' and buyers' perspectives, using interpretive structural modelling and MICMAC analysis. Findings show that internet connection and the need for the product's sensory experience are highly relevant barriers to the sellers. On the other hand, buyers emphasise the need for the product's sensory experience than the rest of the barriers. The managerial implications of these findings are discussed.