FactorsAffectingPR1GroupII ABM 2
FactorsAffectingPR1GroupII ABM 2
FactorsAffectingPR1GroupII ABM 2
S.Y 2020-2021
Lemery, Batangas
In partial fulfillment
By:
Research Adviser
PANEL OF EXAMINERS
___________________
Chairman
Member Member
Approved and accepted in partial fulfillment of the requirements for the subject Practical
Research 1
Noted by:
Abstract
LEMERY SENIOR HIGH SCHOOL
In the era of globalization electronic marketing is a great revolution. Over the
last decade maximum business organization s are running with technology change.
Online shopping or marketing is the use of technology for better marketing performance.
And retailers are devising strategies to meet the demand of online shopper; they are
busy in studying consumer behavior in the field of online shopping to see the
consumer’s behavior towards online shopping. Therefor we have also decided to study
consumers’ behavior towards online shopping and specifically studying the factors
The population selected for the research is Lemery, and narrowed down to
Lemery online shoppers, the sample size selected for this research is 10 and we used
purposive sampling technique wherein the selected respondents are those who can
only satisfy the given qualifications in answering all the problems that was specifically
asking a free response type of questionnaire which is based on the purpose and
statement of the problem of this research. The questions that the researchers provide
Acknowledgement
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First of all, we would like to say thank God the most beneficent and merciful,
who has provided us the courage and health to complete our work. Secondly we would
like to thank our families back home who have supported us and encouraged us for our
work. We full heartily appreciate to our friends and our former classmates here in
With our deepest gratitude to our subject teacher Mrs. Eunice Grace Mendoza
and Mr. Jay Pee Morales for their encouragement, motivation and help throughout the
dissertation work., without their support it would be difficult to complete the work in
limited time period. Our special thanks to Mrs. Eunice Grace Mendoza who has helped
Last but not the least we would like to thank all the respondents who
participated in our survey and my fellow classmates and to those who have directly and
indirectly supported
ABM 11-2
GROUP II
Dedication
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Table of Contents
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Chapter I
consumers before buying a product or service. It is also referring to the buying behavior
of the ultimate consumer. The background of this study is collected from a wide range of
source materials like literature, books and journals, internet database, reports and also
in the marketplace and the underlying motives for those actions. History of consumer
consequence of new and emerging schools of marketing thought. Marketing kept its
focus on individual customers but began to borrow more and more from the behavioral
Online shopping has thus far tended to be a niche business - highly successful
in selling digital products such as shares, software and, increasingly, music and films, it
has been less successful in persuading the purchasers of "traditional" goods such as
cars, clothes, toiletries, or household appliances to forsake their physical retailers and
move into cyberspace. (Swatman & Chin 2004). According to Oxford Dictionary, online
shopping is the action or activity of buyinggoods or services over the Internet. This type
of shopping is a continuous and growing trend globally. By means of the term “globally”,
Websites like Lazada, Zalora, OLX, Shop This Easy, Ayos Dito, Widget City, Keekay.ph
and Goods.ph proves online shops‟ popularity in the country. Recent statistics from
Statista stated that the revenue of the Philippine’s e -commerce market amounted to
US$ 1,237 M (Php 62,346,500) last year. The market penetration reached 32.2 percent.
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An estimated total of 33.81 M users is recorded. Meanwhile, electronics and media
serve as the largest segment with a market volume of US$543 M (Php 27,367,900,000).
This year, estimated revenue of the country’s e -commerce will strike to US$ 1,491 M
(Php 75,148,500) with the same largest segment as last year. The number of users is
predicted to continuously grow with 53.8 M users with market penetration of 46.95%
factors why people resort to online shopping than the traditional one. People relied on
the internet on a daily basis may it be on social media platforms or the gadget
application. Many studies were produced during the past years, some of which are
technology acceptance model, theory of planned behavior, and social cognitive theory).
But not only the information systems and technology itself should be given focus but the
user himself.
The study aims to determine the factors affecting the consumers' behavior
towards online shopping. The findings of this research will not only help Lemery
marketers to formulate their marketing strategies for online shoppers but will also
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increase the knowledge and research in field of online shopping. Specific questions that
1. What are the factors that affects the behavior of consumers towards online shopping?
2. What are the key factors that motivates consumers in Lemery to purchase products
through online? How does an online shopper choose where to buy online?
The study defines the consumers’ buying behavior on online shopping. The
study talks about, what are the reasons why people preferred to buy online rather than
marketing and public relations decisions. Studies focusing on consumer behaviors yield
important information and insight into what consumers are thinking. With these insights,
marketing and public relations firms may enhance their particular marketing campaigns
to successfully connect with consumers. This study will not only help to understand the
past but even predict the future. The significance of this study is for the online marketers
who are obligated in terms of online buying and online consumers. Marketers should
know the services that they can offer to meet the satisfaction of a buyer. Marketers also
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should know what are the factors or the things they need to make people pursue their
products.
This study aims for the benefit of entrepreneurs who are planning to start online
business. It will be very beneficial for online marketers to use this study in order for
them to have better knowledge regarding the behavior of their potential customers. By
means of knowing the factors that affecting the consumer's buying behavior towards
online shopping, the online sellers may come up with the idea of improving their
services, in order to have lots of customers. The findings of this study will be a great
benefit to the online retailers considering that its population is increasing as the online
shopper increases. As this study aims to discover the consumers' attitude and behavior
towards online shopping, retailers would have knowledge on what to improve regarding
their service and products. Furthermore, this study would be very beneficial to the
In the world of business, the consumer's buying behavior is necessary for the
companies to determine how to keep their business going. Consumer's buying behavior
refers to how customers behave while deciding what products will they purchase and
use a certain product that will satisfy their needs and wants. Study of consumer buying
behavior is most important for marketers as they can understand the expectation of the
consumers. It helps the company to assess what kind of products will they release to
the market.
The company can understand the likes and dislikes of the customers. It also
studies about the various situations such as what will customers buy, when do they buy
success. Every customer has a different perspectives and ways of purchasing an item.
differentiation is a way to identify and helps to make a target group of customers that
has a similar behavior. Although each group are different with their wants and needs,
the company can still get a chance to make a separate process of designing a different
product that is important for the customers. Consumer behavior is not just to attract for
When customers are happy and satisfied to a particular product, it can convince
them to buy that product again and it will also gain another customer. We should focus
on the satisfaction of the consumers. That is why we should keep the quality of the
products and the services to the customers so that they will purchase again.
This study is conducted primarily for the purpose of identifying the consumers
‘behavior towards online shopping and how it affects them. It seeks to know the key
factors that motivate consumers to buy online. The main source of data was through an
interview with 10 respondents. This study is limited only on the online consumers, ages
16-43 years’ old that have experienced and tried shopping online. The location of who
The interviews were conducted within three days because of the limited time given by
our research adviser. The limitations of this study are the interviewee have limited
responses and did not have brief explanations for their answer.
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Chapter II
the region take to online shopping because of the variety of goods and services
available, competitive pricing and improved delivery options make the whole process
much easier. Mobile devices such as smartphones have also brought online shopping
to the palm of our hands (Tomlinson, 2015). Convenience garnered 52 percent as the
top reason why Filipinos love to shop online. Other reasons are door-to-door delivery,
technologies available in the market, ensure robust growth and steady development of
day. E-commerce makes Filipinos more efficient, so they cannot lose time to traffic,
they can work more and generate more income for the country (Balci, 2017). He cited
that heavy traffic is one of the causes as to why people turn to online shopping.
Even though not a large number of Filipinos are active cardholders, it does not
hinder the growth of the e-commerce industry in the country. Most people prefer to shop
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with their gadgets mostly of which are smartphones and others to be desktops and
laptops. Due to this preference, it was predicted that soon a rise of the m-commerce
study, it was found that local deals and promo websites took over the country’s e
purchasing products online as it enables them to do it on the go. Ease (73.3 percent)
and convenience (71.9 percent) are cited the most out of the reasons why Filipinos are
understand consumers and deliver the products and services consumer want, need, just
situation is growing: the majority of the population was young workers, fervent internet
users. Inspired by this vibrant market the Filipino e-commerce scene is bubbling as
more young entrepreneurs are launching their businesses. Most of these companies are
of this scenesuch as Zip match (real estate), Pouch (technology), Lenddo (financial
78% of e-commerce sales are made in products and services. In those 78%,
the majority of sales are leisure related (52% for travel and airlines, 18% for
entertainment). Only 3% are spent for food which is really low considering that foods are
the largest section of Filipino families‟ expenditures. This shows that online food e-
commerce isn't yet a very challenge business and could be an opportunity in the
weakness, opportunity, and threats of the online market in the Philippines. One of the
strengths included is the high internet and mobile penetration. In this country where
there is an estimated 101.1 million people, 44.2million are active user’s zee (44%), 42
million are active social media users (42%), 114.6 million has mobile connection (113%)
and 36 million are active mobile social users (36%). (We Are Social,
DigitalMarketingPhilippines.com)
and the experience; in other words, the consumer is pleased when the delivery meets or
exceeds their expectations. Satisfaction and loyalty are the key elements determining
the success of the market concept implementation. Satisfied customers are the ones
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that will repeat the purchase if the service provider reached or exceeded their
they present the business benchmark and serve as a guide to future improvements.
There are eight determinants identified as important for customer satisfaction; those are
the following: web design, security, information quality, payment methods, e-quality of
privacy. The literature is closely related to the current study for the researcher also
tackled about the consumer's behavior in online shopping at their native place. Our
common objectives are to determine the different underlying factors that affects online
shopping and to gain knowledge about the active strategies conducted by online shop
owners.
behavior, and shopping intention towards Internet shopping in general. The design
includes several indicators classified into four broad categories like product value,
quality services offered through the website, the shopping experience, and the risk
perception of the online shopping. Chang, Cheung, and Lai (2005) studied categories of
variables, which drive online shopping activity. In their study, they divided the features
into three broad categories. Perceived characteristics of the web sale channel are the
first one which includes risk, online shopping experiences, advantage, service quality,
trust. The second category is a website and product features which are risk reduction
measures, site features, and product characteristics; and the last group is consumer
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characteristics. Various types of features, demographic variables, consumer shopping
This is similar to the present study because it both discussed the behavior of
technology that played a big role in our lives. The difference between our studies is we
narrowed our target population to get the concrete and desired results.
Schiffman and Kanuk (2006) noted that consumers have different types of
involvement for different products. Consumers can be involved not only with a product
but also with the purchasing processes, consumption of the product and the
communications process. These different involvement levels can form an overall profile
involvement with the product that satisfies the need (Bloch & Richins, 1983; Havitz &
Mannell, 2005; Laurent & Kapferer, 1985; McQuarrie & Munson, 1987; Ogbeide &
Bruwer, 2013). Thus, consumer involvement is not a stable state for all products, but
products. That is why consumers show indifference towards some products and great
passion for others (Andrews et al., 1990; Schiffman & Kanuk, 2006
Studies have reported that a consumer has two main involvement variants:
situational involvement (SI) and enduring involvement (EI), (Bowen & Chaffee, 1974;
Day, 1970; Laurent & Kapferer, 1985; O’Cass, 2000; Schiffman & Kanuk, 2006).
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Consumers experience situational involvement such as attraction or distraction that
affects their cognitive ability to process information (Schiffman & Kanuk, 2006) or
merchandising displays can trigger unusual states of anxiety such as a lost shopping list
and thus impact on the opportunity and ability to make purchase decisions (Beharrell &
Denison, 1995).
As said by Raman (2014) online retail market in India has been emerging at an
extraordinary rate. With the growing internet diffusion and broadband availability, and
increasing usage of Smart phones and tablets, Indian population have started buying
products online. According to a report by Gartner more than 30% of the traffic on online
shopping portals is coming from smart phones and tablets. E-commerce industry has
picked up pace and has been striding leaps and bounds over the past few years. This
2018. Forrester Research projections for Asia-Pacific also portray the rapid growth of e-
commerce market in India. The prediction depicts e-commerce’s growth in India, where
sales are expected to grow by 57% yearly till 2016. It will reach $8.8 billion by 2016.
This demand is backed by increase in consumers’ online buying behavior and growing
penetration of technology.
According to Nguyen & Nham (2014), online customer loyalty has been the
customer loyalty nowadays is critical to many aspects of the society, including the e-
commerce field. The central thrust of the marketing activities of a firm is often
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considered to be development, maintenance, or enhancement of customers’ loyalty
Internet is changing the way consumers shop for goods and services and has
rapidly evolved into a global event. Rowley Jennifer, (1998) examined that internet is
becoming a hotbed of advertising, shopping and commercial activity. Buying online has
become the third most popular internet activity following the e-mail usage and web
browsing. This can be considered as an exchange of time, effort, and money for
receiving products or services. It is the process whereby SMEs directly buy goods or
"Today's consumer no longer goes shopping, but is shopping, all the time and
local shops during regular business hours. Consumers can easily buy from retailers and
manufacturers located anywhere in the world-or from those with no physical retail
locations at all." (Willy Kruh, Global Chair, Consumer Markets, KPMG International).
Because of the internet, becoming the center of hot issues, Hsieh et al., (2013)
stated that internet is influencing people’s daily life more so as compared to past.
People’s daily activities have gradually shifted from physical conditions to virtual
environment. The shopping and payment surroundings have also changed from
physical store into online stores. And online shopping got out of the box and it is taking
all over worldwide. Jush andLing, (2012) defined online shopping as the process a
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customer takes to purchase a service or product over the internet. A consumer may at
his or her leisure buy from the comfort of their own home products from an online store.
Business buyers are purchasing all kinds of products and services electronically. Such
cyber purchasing gives SMEs access to new suppliers, lowers purchasing costs, and
hastens order processing and delivery (Armstrong and Kotler, 2004). Merchants need to
understand the needs, interests and expectations of their potential customers. That
means knowing not only what they want to buy, but how and where they prefer to
selection, shipping and security. (Zegras, 2015) Merchants can also undergo change
and going with the flow of this change to meet their expectations as sellers.
and to date, the most studied online behavior among TV viewers has been searching for
advertised brands and products using search engines (e.g., Joo et al. 2014). Because
of these, it is obvious that the consumers who buy online have a behavior of what and
why they shop online. The attitude and behavior of SMEs‟ towards online buying are
two main factors that affect e-buying potential. Based on several studies, the major
reasons for buying online seem to include convenience, flexibility of opening hours, and
saving money. Subsequently, firms buy online because they can get detailed product
information, delivery, convenience, product quality and lower prices (Durmuş, Y., et.al.
2011).
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Weiber and Kollmann, (1998) investigated that online technologies provide
However, in order to enjoy all the benefits of buying online, it requires careful
management to address the legal, security and privacy issues (Awoyelu, I.O and
Awoyelu, F. 2010)
The firms‟ attitude and behavior towards buying online are known as the main
factors that affect e-buying potential. Attitudinal issues play a significant role in online
buying adoption. Their buying choices are influenced by four major psychological
factors such as motivation, perception, learning and beliefs and attitude. Attitudes serve
as the bridge between firm’s characteristics and their business goals and objectives.
This means that, through motivation and perception, attitudes are formed and they
make decisions. Business buyers usually face more complex buying decisions because
their purchases often involve large sums of money, complex technical and economic
consumers seeking convenience and speed ((Yu and Wu, 2007)). According to Li and
Zhang‟s (2002) taxonomy that developed based on their analysis, there are ten impacts
personal
dependent variables (attitude toward online shopping, intention to shop online, decision
making, online purchasing, and consumer satisfaction). The five independent variables
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are identified as antecedents, which directly determine attitudes towards online
shopping.
are sometimes affected by social influence that they usually gather from reading the
comments or reviews of other previous buyers. Consumers tend to vote for reviews with
high varied uncertainty, while they continue to prefer to purchase product with less
product uncertainty from reviews (Nan et. al, 2017). Reading product reviews has a big
effect in building the online shopper's trust regarding the products that they like to
purchase. Such factors may have negative influence on consumer decision to shop
online. Security perceptions are defined as “the subjective probability” with which
consumers believe that private information will not be viewed, stored and manipulated
during transit and storage by inappropriate parties in a manner consistent with their
On the other hand, some consumers still feel uncomfortable to buy online.
There are still people who prefer to purchase products in the traditional way. Perceived
risk is identified by the discomfort from consumer through the impersonal interaction
and intangible effects that come from operating online (Chen and Mort, 2007; Pavlou,
2003; Pavlou & Gefen, 2004; Warkentin et al., 2002). Lack of trust, for instance, seems
to be the major reason that impedes consumers to buy online. Also, consumers may
have a need to exam and feel the products and to meet friends and get some more
Most people still choose the traditional way of shopping because they are not
used to shopping online and not comfortable with how online shopping works. These
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are just few of the reasons of slow e-commerce production, and it is because of culture.
Shopping malls has been a part of the culture of Southeast Asians. It is a hindrance to
slow e-commerce acceptance. Because most people would rather see the goods first
before buying to ensure that these products fit their own respective tastes and
preferences such as color and texture (Edralin Lim, 2014). However, E-commerce
Si, 2013; Fleenor and Raven,2002). With the emergence of the internet, Internet-based
Internet is changing the way consumers shop for goods and services and has
rapidly evolved into a global event. Internet becomes the center of hot issues, stated
that internet is influencing people’s daily life more so as compared to past. And because
new normal habit in South East Asia. Shopping online has become the third most
popular internet activity following the e-mail usage and web browsing. Most people
prefer to shop online using their gadgets mostly of which are smartphones and others to
be desktops and laptops. Because of this, it was predicted that soon a rise of the m-
Convenience is the major factor that motivates the consumers to shop online.
The other reasons why they shop through online is because of its affordability and
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accessibility. The firms‟ attitude and behavior towards buying online are known as the
Because of the fast pace of technology, at the same time it goes with the rising
Chapter III
Methodology
One of the core steps in the marketing research process is the selection of
processes, procedures and activities of how the research should be conducted in order
to provide answers to the research questions that satisfy the research objectives and
study using judgmental sampling for selecting the samples from online shopping users
in Lemery. The data has been collecting with the help of questionnaire. The factor
analysis is performed for identifying the factors, the nonparametric test has been used
This study is conducted primarily for the purposes of identifying the consumer'
behavior towards online shopping and how it affects them. It seeks to know
the key factors that motivate consumers to buy online. The main source of data was
through an interview with 10 respondents here in Lemery ages ranges from 16-43
years’ old that have experienced and tried shopping online. The location of who the
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interviewers had interviewed is not exceeded outside the town. The interview conducted
through online lasted for hours and have gathered enough data’s. The limitations of this
study are the interviewee have limited responses and did not have brief explanations for
their answer.
technique wherein the selected respondents are those who can only satisfy the given
qualifications in answering all the problems that was specifically created for online
asking a free response type of questionnaire which is based on the purpose and
statement of the problem of this research. The questions that the researchers provide
this study also uses some secondary sources of data such as internet and books. The
researchers gathered information through legitimate online journal websites and a few
available books on the net which is related to the topic of this research.
measurement device. This instrument was used to show the key factors which motivate
information/details we have to collect. You’ll need to decide what topics the information
will cover, who you want to collect it from and how much data you need. Your goals,
what things you hope to accomplish using your data that will determine your answers to
these questions. Once you have finalized your plan, you can implement your data
collection strategy and start collecting data. Be sure to stick to your plan and check on
its progress regularly. It may be useful to create a schedule for when you will check in
with how your data collection is proceeding, especially if you are collecting data
continuously. You may want to make updates to your plan as conditions change and
you get new information. Once you’ve collected all of your data, it’s time to analyze it
and organize your findings. The analysis phase is crucial because it turns raw data into
valuable insights that you can use to enhance your marketing strategies, products and
business decisions. Once you’ve uncovered the patterns and insights in your data, you
Chapter IV
Lazada is the most visited online shop ages from 16-43. Out of the respondents, 4
friends or influence of family as a reason on how they start to shop online. Three of
Respondents whose ages from 16-25 stated convenience, low price, good
quality, Cash on Delivery and availability of the product are their motivation in buying
online. The most common motivations out of those stated above are quality, low price.
Meanwhile, respondents whose ages ranges from 32-43 has convenience, low
price, COD. Compared to the results from the other respondents (ages from 16-25),
there is no difference with the common motivation these customers have. Nonetheless,
motivations such as convenience, price, and sale promotions are perceived to have an
impact to an online consumer behavior. We, researchers proved that social influence,
as well as advertisements, plays a big role in honing the buying decision of a person. In
terms of our study, this influenced paved the way for a number of respondents to shop
Chapter V
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Summary, Conclusion and Recommendations
5.1 Summary
7 out of 10 or 70% of the respondent ages 16-43 years old says that they build
their trust to the online shops/sellers when there are positive feedbacks or reviews of
acquiring goods and services that they needed and most of them started online
products, hassle free, and sale promotions are the main factors why they prefer to buy
online.
5.2 Findings
5.3 Conclusions
shopping affects people's behavior in terms of buying. Based from all the gathered
information, it is concluded that people's frequent usage of online shopping leads to the
changes of its standards in terms of acquiring goods and services that they needed.
Consumers tend to be wiser as they try to look first all the possible opportunity cost that
they may encounter if they shopped in a traditional way, such as time, effort, and
productivity. The behavior of online shoppers when it comes to building trust with the
shop
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or seller is based in what they see on the reviews. Even though there are issues about
defects or failed products from online shops, most shoppers prefer to buy online
because of convenience, the key factor that has the biggest impact to the consumers
and next is the cheaper price compare to physical stores. The advantages of online
shopping to online shoppers are the time-consumed in shopping online is less that the
tine the shoppers shop in tradition. It is stated in the interviews that online shopping is
favorable to them because of the same promotions and cheaper prices than the original,
it is said to be hassle free because of the Cash in Delivery (COD) payment mode and
the product or service will be delivered to the customer. Today's technology contributes
to online shopping in a way that technology is the medium of online shopping from
consumer to buyer. Technology is a choice for the most of the shoppers because it
offered convenience in time and offers the desired place of the buyers. Technology's
fast pace and fast spreading throughout worldwide it helps online shopping more
popular. People are also encouraged to shop online because of the advertisement
popping in every side of the web. Technology helps online shopping more popular
5.4 Recommendations
who want to study more about the consumers' buying behavior on online shopping. The
Having a wider and more informative research will help the readers gain deeper
knowledge about online shopping and to become open-minded when it comes to this
topic. The researchers can discuss supplementary factors affect the consumers'
behavior for them to shop online. It would also be better if they would hear the side of
the online marketers regarding this topic for them to gain more information for their
study.
Researchers can also indicate to their future study, the latest situations that
happen to the online shopping industry or even to those consumers who shop online.
The researchers also recommend this study to all entrepreneurs who are planning to
start online business to read this study for further information about the consumers'
behavior to be able for them to know the services or products they can offer to meet the
satisfaction of customer. Because of this, their business may be the number one in the
market in the near future. The researcher also recommends to them to do some deeper
research about online shopping in order for them to know and learn more about this
topic, since the researchers only cover about consumers' behavior towards online
familiarize on it. Therefore, they can handle their business much better and run it
smoothly.
The researchers would also recommend this study to the online shoppers as it
would make them more knowledgeable and have an edge to those online shoppers who
only have little knowledge about this topic. Having this study would be a great
advantage to them for it would help them to know the things they should consider when
buying products online. Also, to help prevent themselves by the risks and dangers that it
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might bring to them knowing that diving in online shopping can be dangerous at some
point. By having the people read this study, the researchers are expecting a more open-
minded and knowledgeable shopper so that online shopping industry would develop
Bibliography
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Appendices
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