This study is anchored in the theoretical lenses of Diffusion of Innovation (DOI) Theory (Rogers, 1962). These frameworks offer a robust basis for examining innovation adoption and marketing process enhancement among beneficiaries of the Sustainable Livelihood Program (SLP).

The DOI Theory (Rogers, 1962) explicates how innovations, whether ideas, technologies, or practices, diffuse within a social system over time. It identifies four critical elements: the innovation, communication channels, time, and the

social system. Adoption patterns are classified into innovators, early adopters, early majority, late majority, and laggards, with diffusion influenced by relative advantage, compatibility, complexity, trialability, and observability. Social, cultural, and economic contexts, including education levels and urbanization, further shape diffusion patterns. Within this study, DOI provides a framework for understanding how SLP beneficiaries adopt, adapt, or resist innovations and for formulating strategies to enhance uptake through targeted program interventions.

DOI offers a comprehensive analytical framework. This addresses adoption dynamics (DOI) and quality-centered management, aligning with the research aim of assessing whether overcoming identified operational challenges can enhance SLP enterprises' sustainability, efficiency, and profitability. As Baldwin (1995) posits, innovation is a central driver of business success, and as Kakkar (2024) emphasizes, contemporary firms increasingly integrate these paradigms to remain competitive in evolving markets.

The SLP, spearheaded by the Philippine Department of Social Welfare and Development (DSWD), is a community-based poverty alleviation initiative designed to strengthen socio-economic capacity in marginalized households (DSWD, 2022). It comprises the Microenterprise Development (MD) Track, which supports the establishment and growth of small businesses, and the Employment Facilitation (EF) Track, which provides job placement and skills training. Participant selection is guided by Listahanan, the national household targeting system, and program delivery involves collaboration with local government units (LGUs), non-governmental organizations, and the private sector.

Online selling has reshaped global commerce by reducing transaction costs and enhancing market efficiency (Wang, 2023). While traditional retail dominates in certain economies, online platforms offer 24/7 accessibility, personalized marketing, and expanded market reach (Venkatesh et al., 2022). Studies report a decline in traditional retail sales driven by digital convenience and cost advantages (Krishna, 2023), prompting businesses to adopt multi-

channel strategies to remain competitive (Dwivedi et al., 2020). Beyond efficiency, e-commerce fosters job creation, supply chain enhancement, and consumer-driven innovation (Devi et al., 2024). Sector-specific research—from luxury retail hybrids (Shaikh et al., 2022) to national-level transitions (Gvozdytskyi, 2023)—confirms online selling’s transformative impact on the marketing mix (Kingir & Gezer, 2021).

building capacity, particularly among audiences less active online (Armstrong & Kotler, 2023; Baker, 2020). Localized media sustain community presence (Lamb et al., 2021), while in-store advertising stimulates impulse purchases (Kotler & Armstrong, 2022). Empirical evidence affirms that legitimacy, simplicity, and personalized service continue to attract consumers to traditional formats (Balgomera et al., 2022; Krishna, 2023).

SLP beneficiaries traditionally rely on relationship-based marketing, yet evolving market dynamics necessitate adaptation (DSWD, 2023). Broader MSME research underscores persistent constraints such as limited financing, inadequate workspaces, and managerial gaps (Zhang & Ayele, 2022; Hasyim & Bakri, 2024). Innovative financing (e.g., crowdfunding), digital adoption, and targeted capacity-building emerge as viable solutions.

Online selling provides cost-effective promotion, market expansion, and consumer interaction, yet faces adoption barriers linked to trust, payment preferences, and product evaluation concerns (Santos, 2020; Javier, 2024). Consumer satisfaction varies by generation and socioeconomic status (Arora & Aggarwal, 2020), while data-driven tools like AI can boost SME performance (Tawil et al., 2023). However, operational issues—from inventory volatility to cybersecurity risks demand robust strategies (Nolasco, 2022; Rombaldo et al., 2023).

While online channels enhance market reach and engagement (Jimenez et al., 2020; Kingir & Gezer, 2021), evidence suggests profitability gains are not automatic and depend on adoption quality and system efficiency (Lorca et al., 2020; Guo et al., 2023). Persistent drawbacks such as infrastructure gaps and trust concerns (Liu et al., 2022) reinforce the continued relevance of traditional methods.

Emerging “new retail” models integrate offline and online channels, leveraging each platform’s strengths. While such models incur higher operational costs, they can capture a larger market share and improve consumer experience (Wang & Ng, 2020). This underscores the strategic potential of blended marketing approaches for SLP enterprises aiming for sustainable growth.

This study's conceptual framework describes how the lived experiences inform initiatives for improving its beneficiaries' Sustainable Livelihood Program (SLP). The study's main context is established by examining how beneficiaries sustain their businesses through traditional and internet marketing strategies. It then examines participants' reported benefits, difficulties, and coping mechanisms through a thematic qualitative lens, consistent with a phenomenological approach to deriving meaning from lived experience. Lastly, these observations inform recommendations for enhancing the implementation of SLP, such as policy improvements, technical support, enhanced technological access, and capacity-building. The methodology progresses from observed behaviours to experiential analysis and, eventually, to implementable program adjustments in a linear, outcome-focused manner.

The profile of the SLP beneficiaries in terms of age, sex, civil Status, highest educational attainment, kind of business, number of years in the business, type of marketing used in the business, duration of using online selling in business, duration of using traditional marketing, types of online selling being used in the business, and monthly income in the business. The demographic profile highlights participants' experiences, education, and generation differences between those involved in online and traditional marketing. The majority of online sellers are millennials (ages 29–42), while traditional marketers are mainly members of Generation X (ages 46–59). All participants identify as female. Different civil status patterns are seen in online selling, where married and single participants are more common than widows and married people in traditional marketing. The type of business is correlated with educational achievement; online sellers are frequently college graduates, while traditional marketers typically have only a high school diploma. While the correlation between educational attainment and adaptation to technology is obvious, it was not observed in the other related studies and literature. Traditional businesses, such as banana vendors, kakanin (rice pudding) vendors, and sari-sari stores (mini- convenient stores), have operated for up to 30 years and depend on local sales, credit conditions, and personal networks. The online businesses that sell goods like Chinaware, bicycle parts, and cosmetics have shorter operating histories (most have been in business for less than six years) and use Facebook, Shopee, and Lazada to reach a wider audience. There are apparent differences in income: traditional marketing can generate up to Php 18,000 per month, whereas online selling often yields smaller profits, peaking at Php 15,000 (most earn Php 3,000). These findings show that while online enterprises prioritize reach and adaptation in the digital marketplace, traditional firms frequently experience higher financial stability and longevity. These findings contradict Krishna's 2023 study on the decline of traditional retail sales driven by digital convenience and cost advantages. The findings reflect the Diffusion of Innovation (DOI) Theory, showing that online sellers, often college graduates, act as early adopters of digital platforms despite shorter business histories and lower incomes. At the

same time, traditional marketers rely on long-standing practices that provide greater financial stability. This contrast highlights how education, risk tolerance, and perceived benefits shape innovation adoption and underscores the need for targeted support to bridge the digital divide among SLP beneficiaries.

The SLP beneficiaries face multi-faceted challenges in both traditional and online marketing.

For traditional marketing, seven significant challenges emerged: limited market reach, seasonal and weather-related impacts, challenges in credit collection, legal and regulatory obstacles, rising production costs, physical strain and workload, and lack of or limited knowledge in online selling. Limited market reach restricts sales due to geographical and demographic constraints, as noted by Participant 1 (“Sales are smaller because buyers are limited in our area”) and Participant 2 (“Sales are low because the target market is small”), resonating Cruz and Medina’s (2022) and Santos and Reyes’s (2023) findings on rural market limitations. Seasonal and weather-related impacts hinder mobility and sales during the rainy season (Participant 3, “It is difficult during the rainy season because you cannot get to the various places where you can sell your goods.”), consistent with Susanty et al. (2024) on climate effects on MSMEs. Challenges in Credit Collection delay cash flow, with Participants 4, 6, and 7 citing difficulty in debt recovery, reflecting Collectius (2023) and Mungal and Garbaharran (2021). Legal and regulatory obstacles include vending restrictions (Participant 5, “There are police apprehension because it is not allowed to sell things in the street, and it is tiring of selling around.”). This aligns with PIDS (2023) and Jomon (2024) on bureaucratic and policy burdens. Rising production costs force price adjustments (Participant 6, “The price of goods from the supplier is increasing, so we are also increasing the price of goods.”). This agrees with Torres (2023) and Smith and Lee (2023), who state that production costs impact the profitability of SMEs in Latin America. Physical strain and workload (Participants 5, 8) mirror Mishra et al. (2025) and Mokgobu and Mokoena (2023) on various occupational health risks among informal workers. Lastly, lack of or limited knowledge in online selling (Participants 4, 5, and 6) suggests that digital literacy is a barrier limiting their ability to engage in online business ventures, which supports the study of Hendrawan et al. (2024) and Cueto et al. (2022), who emphasize that digital literacy gaps impede MSME competitiveness in the digital economy. The identified challenges to traditional marketing underscore the need for targeted

capacity building, supportive policy frameworks, and adaptive marketing strategies to enhance business resilience and sustainability, which is commonly found in the presented related literature and related studies, thus supporting the result of the findings.

The challenges presented by traditional marketers are the reason for the delayed application of the Diffusion of Innovation (DOI) Theory. Limited market reach, seasonal disruptions, high costs, and legal barriers reinforce reliance on

familiar practices, while physical strain and poor digital literacy hinder openness to change. These factors slow the innovation decision process, especially in adopting online selling. Applying DOI highlights the need to reduce complexity, show clear benefits, and promote peer learning to accelerate digital adoption and business resilience.

The challenges in online business present various challenges entrepreneurs encounter when conducting online business. It explores seven key difficulties: high competition, trust issues, bogus buyers, supply and shipping challenges, customer-related stress, limitations to internet connectivity, and demand fluctuations. These challenges highlight the complexities of operating in the digital marketplace and emphasize the need for adaptive strategies to achieve business success. High competition is a significant concern, with participants noting that “There is much competition because some sellers imitate our goods”, “due to competition, it is hard to sell”, and online selling is competitive now.” (Participants 5, 7, and 8). This aligns with Cao’s (2023) findings that e-commerce growth intensifies competition, necessitating innovation and digital adoption (Sari & Wibowo, 2023). Trust issues and bogus buyers create financial losses, as “many online buyers are scammers” (Participant 1). Huring (2020) and Soleimani (2021) emphasize the need for secure platforms, verification systems, and trust- building measures to counter fraudulent buyers resulting in financial losses. Supply and shipping challenges include inconsistent availability, fluctuating supplier prices, and delivery logistics, as the respondent (Participant 2) reported, “Sometimes the supplier does not have the item available, and the prices vary from supplier to supplier. There are also shipping challenges because you need to send it to delivery services.” Studies by Sun (2022) and Hao (2022) support this finding and recommend strategic logistics planning and technological integration to improve efficiency. Customer-related stress arises from high demands and rush orders: “Stress for customers who have so many requests and often want their orders in a rush” (Participant 4). Effective customer relationship management and social media engagement can alleviate customer-related stress (Alshurideh, 2023). Demand fluctuations hinder inventory management, with sales swinging from peaks to lows. Participant 8 shared,” Sometimes the demand for products is high and cannot keep up with customer demand, sometimes there are low or no customers at all.” Li et al. (2023) and Li et al. (2021) support this result, highlighting the importance of accurate demand forecasting using advanced analytics. Limitations on internet connectivity reduce operational efficiency. As reported by Participant 3, “It is difficult to sell during the pandemic, and you need a strong internet connection. The Mekong Institute (2022) and Rahman & Islam (2023) lack reliable internet connectivity, directly impacting online selling operations and stressing the need for improved digital infrastructure. At last, the lack of resources, such as “no mobile phones and enough equipment for online use” (Participant 1) and “not enough capital to expand online business” (Participant 2), limits market participation. This barrier emphasizes the importance of access to devices and startup capital for MSME growth in e-

commerce. The identified challenges of the online sellers are common issues in the presented literature and related studies.

Through the lens of DOI Theory, online sellers can be seen as early adopters navigating the potential of digital markets. Like the traditional marketers, the identified challenges slow the adoption for some and cause dropouts for others. To strengthen diffusion, interventions should highlight clear relative advantages of online selling, simplify processes through digital literacy and platform support, and build trust mechanisms so more entrepreneurs can transition successfully and sustain digital business growth.

Traditional Marketing presents a comprehensive set of strategies and techniques to address the difficulties identified effectively. It outlines practical solutions, best practices, and adaptive approaches that SLP beneficiaries implement to overcome obstacles in their business operations. These strategies focus on persistence, product diversification, proactive customer outreach, credit management, and debt recovery.

Online Selling

For online selling, the beneficiaries employ strategies in pricing, customer relations, product innovation, promotions, inventory, and connectivity to address online marketing challenges.

The strategies of online sellers reflect key dimensions of the Diffusion of Innovation (DOI) Theory. Pricing adjustments, down payments, and customer relations emphasize relative advantage and reduced complexity. Product diversification, innovation, and social media promotions highlight practicability and recognisability, while inventory management and trend monitoring ensure compatibility with dynamic markets. Efforts to improve internet connectivity further illustrate the adoption of enabling infrastructure, showing how sellers adapt innovations to sustain competitiveness in digital commerce.

SLP beneficiaries provided targeted recommendations to strengthen business operations through both traditional and online marketing, with support from government and non-government institutions. The suggestions emphasize integrating diverse marketing strategies for sustainable enterprise growth. The recommendations of SLP beneficiaries align with the Diffusion of Innovation (DOI) Theory by emphasizing the compatibility of integrating traditional and

online marketing strategies. Their call for institutional support underscores the importance of observability and trialability, enabling low-risk experimentation and visible success. Such support can accelerate diffusion from early adopters to the broader community, promoting sustainable enterprise growth.

Beneficiaries employing traditional marketing strategies identified four main areas for improvement: increased capital, enhanced training, fairer selection processes, and stronger government assistance. First, the need for additional capital. Four participants emphasized the urgent need for financial support to sustain and diversify their businesses. As Participant 1 stated, “Additional capital so we can start other businesses,” while Participant 5 suggested “Additional capital and training for the SLP beneficiaries.” Participant

6 called to “Provide capital to those in need,” and Participant 8 requested “Additional capital and a free push cart for the business.” Second, demand for training and skills development. Two participants stressed the necessity of training in online business and product diversification. Participant 4 recommended “Additional training to do online business and other products that can be sold,” Participant 7 suggested “Free training to do online business and additional capital.” The third recommendation concerns eligibility and selection. One participant highlighted the need for transparency, urging the DSWD to select only qualified beneficiaries: “We have a neighbor who is not poor but still benefited from the same program” (Participant 3). The last one was the need for

support was acknowledged, with Participant 2 recommending “Additional assistance from DSWD like the Pantawid Pamilyang Pilipino Program or 4Ps.” 4Ps is a conditional cash transfer program targeting low-income families. These recommendations/insights emphasized the crucial role of targeted interventions in strengthening traditional marketing efforts and promoting long-term business growth.

Online marketing participants similarly suggested three themes: increased capital, skill development, and targeted aid for the indigent. The need to increase capital assistance, as shown in a repeated call for “additional capital,” reflects financial barriers to market expansion. For instance, Participant 1 suggested “Additional capital and free training in online marketing and other possible alternative businesses,” Participant 3 requested “A larger capital should be given,” and Participant 6 and 7 stressed “Additional capital and training for online business.” The demand for training and skills development centered on digital marketing and product improvement. Participant 1 called for “Free trainings in online marketing,” while Participant 5 suggested linking

beneficiaries to agencies offering training to improve business further.” Participant 8 recommended training for product improvement, provision, and quality business.” Finally, targeting support to the indigent. Participant 2 advocated prioritizing “those truly poor” to ensure equity, while Participant 4 suggested providing “additional government programs such as 4Ps.”These

perceptions underscore the importance of equipping entrepreneurs with the financial resources and digital skills to maximize the potential of online marketing and ensure inclusive economic opportunities.