UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- NGUYEN HOAI NGOC FACTORS AFFECTING PURCHASE INTENTION ON THE TIKTOK SHOP PLATFORM OF GEN Z STUDENTS LIVING IN HO CHI MINH CITY Major: Business Administration Major code: 7340101 GRADUATION THESIS INSTRUCTOR: MS. VU THI HONG NGOC Ho Chi Minh City, 3/2024 UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- GRADUATION THESIS FACTORS AFFECTING PURCHASE INTENTION ON THE TIKTOK SHOP PLATFORM OF GEN Z STUDENTS LIVING IN HO CHI MINH CITY Major: Business Administration Major code: 7340101 STUDENT : NGUYEN HOAI NGOC ID NUMBER : K204071538 INSTRUCTOR : MS. VU THI HONG NGOC Ho Chi Minh City, 3/2024 1 ABSTRACT In the digital era, Generation Z’s purchasing behavior has become a focal point for marketers, particularly on emerging platforms like TikTokShop. This study aims to explore the multifaceted factors influencing the purchase intentions of Gen Z students within this novel e-commerce environment.
The previous has integrating some factors from the Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TPB) to examine how these factors shape the buying decisions of this demographic. Additionally, we consider the impact of TikTok-specific elements such as convenience, price perception, source of reference, e-service quality, promotion, and brand awareness on their purchase intent on this platform. Our methodology includes a survey distributed among 225 samples of Gen Z students, followed by a quantitative analysis to identify significant predictors of purchase intention. The result show that all of the hypothesises are accepted, except the factor source of reference.
The findings are expected to provide valuable insights for businesses looking to optimize their strategies on TikTokShop and similar social commerce platforms. 2 LIST OF FIGURES Figure 2. 1: Consumer Black Box Model Figure 2. 2: Theory of Reasoned Action Figure 2.
3: Theory of Planned Behavior Figure 2. 4: Technology Acceptance Model Figure 2. 5: Proposed Research Model Figure 3. 1: Research process Figure 4.
2: P-Plot of Rengression Standardized Residual 3 LIST OF TABLES Table 2. 1: Summary of previous research Table 2. 2: Design Scale Table 3. 1: Answer design table based on the Likert scale with five levels Table 4.
1: Statistical summary describing the study sample Table 4. 2: Statistics describe the research variable in the model Table 4. 3: Rotated Component Matrix Table 4. 4: KMO and Bartlett's Test Table 4.
5: Total Variance Explained Table 4. 6: KMO and Bartlett's Test Table 4. 7: Total Variance Explained Table 4. 8: Component Matrix dependent Variable Table 4.
9: Pearson correlation Table 4. 11: Testing the implicit assumptions of linear regression Table 4. 13: Testing research hypotheses 4 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION .1 Rationale of the Study .3 Subjects and Scope of the Study .2 Scope of Research .6 Structure of the Study. 10 CHAPTER 2: LITERATURE REVIEW .2 Overview of TikTok Shop operation .1 Consumer Behavior Black Box Model .2 Theory of Reasoned Action (TRA) .3 Theory of Planned Behavior (TPB) .4 Technology Acceptance Model (TAM) .1 Research by Chuanhong Chen and Xueyan Li (2020) .2 Research by Ofori and Appiah-Nimo (2019) .3 Research by Athapaththu and Kulathunga (2018) .1 Research by Bui Thanh Trang (2020) .2 Research by Dao Manh Long (2018) .3 Summary of factors influencing online buying behavior .5 Research Model and Hypothesis .1 Proposed Research Model .3 Source of Reference.
29 CHAPTER 3: RESEARCH DESIGN .4 Data collection and analysis methods .1 Evaluation of the reliability of the scale .2 Exploratory Factor Analysis (EFA) .3 Multivariate regression analysis. 39 CHAPTER 4: RESEARCH RESULTS .2 Description of survey sample characteristics .3 Evaluation of the reliability of the scale .1 Scale of Convenience variables .2 Scale of Price Perception variable .3 Scale of the Source of Reference variable .4 Scale of E-Service Quality variable .5 Scale of Promotion variables .6 Scale of Brand Reputation variables .7 Scale of Purchase Intention variable .4 EFA Discovery Factor Analysis .1 Exploratory factor analysis for independent variables .2 Discovery factor analysis for dependent variables .6 Multivariate Regression Analysis .1 Multivariate regression analysis .2 Testing research hypotheses .7 Research Results Discussion. 59 CHAPTER 5: CONCLUSIONS AND GOVERNANCE IMPLICATIONS .1 Sources of Reference .3 Limitations and further research directions .68 APPENDIX: OFFICIAL SURVEY .1 Rationale of the Study The rapid growth of social networks has sparks consumers' interest in online shopping among consumers. It can be seen that the terms like "Technology Revolution 4.0" or "Digital Era" are very familiar in many newspapers and discussions.
For many, especially gen Z generation, social media is an indispensable daily routine that they can not afford to miss during these day. In Vietnam, social media usage has been a the rise, according to Kepios' Report (2022), as of January 2022, there were 76.95 million social media users, equivalent to 78.1% of the total population; the number of social media users has increased by 5 million (+6. According to the SYNC Southeast Asia Report (2021) released by Meta in 2020 in Vietnam, about 49.3 million consumers were participating in online shopping. Social networking sites such as Facebook, Zalo, Youtube, Instagram, TikTok, etc., are gradually gaining popularity and capturing the market.
Among the social media platforms in Vietnam, TikTok stands out for its rapid growth. Despite being launched only in 2019, it has attracted 39.91 million users who are 18 years old or above as of the beginning of 2022 (Kepios, 2022). This demonstrates the immense popularity and impact of the TikTok platform in the social media landscape. It is not to mention the COVID-19 pandemic has further accelerated the shift towards e-commerce platforms like Shopee, Lazada, and TikTok Shop, as consumers adapt to online shopping for their daily needs.
In response to this trend, TikTok introduced its TikTok Shop sales page in April 2022, integrating e-commerce with entertainment to create a seamless shopping experience for influencers and users. They are an online sales site for everyday shopping (Tunsakul, 2020). The following reason stems from the weaknesses of traditional forms of advertising that facilitate influencer advertising to thrive. Along with the development of commercial communication and the rise of direct communication programs, conventional methods of advertising communication (Freberg et al., 2011; Godey et al.
A brand that posts advertising media content on its social networking sites will attract less attention even if the content is excellent and trusted because customers will 8 consider it a form of self-advertising and brand enhancement. Not to mention, many businesses, despite the use of false advertising images, result in consumers increasingly generating a sense of suspicion, thinking that advertising is never accurate (Darke and Ritchie, 2007). Therefore, methods of communication and brand promotion using social media influencers appear a lot. According to Freberg et al.
(2011), influencers on social media platforms act as independent validators, shaping audience attitudes and influencing purchasing decisions through their content. This approach has gained traction due to the decline in effectiveness of conventional advertising methods like newspaper ads and telemarketing. Consumers tend to trust influencers more than brand-generated content, as influencers provide authentic product experiences through various media formats, enhancing the appeal of products to customers. While research on TikTok Shop is limited, existing studies have focused on the impact of social media influencers on shopping intentions in general.
They overlook the specific role of online shopping channels like TikTok Shop because the TikTok Shop page was only launched in April 2022. This gap in research presents an opportunity to explore the factors influencing purchase intention on the TikTok Shop platform, particularly among Gen Z students in Ho Chi Minh City. By delving into this topic, businesses can gain valuable insights to optimize influencer marketing strategies and enhance online shopping experiences on TikTok Shop. Based on the issues discussed above, the author has selected the following topic: "FACTORS AFFECTING PURCHASE INTENTION ON TIKTOK SHOP PLATFORM OF GEN Z STUDENTS LIVING IN HO CHI MINH CITY".
The study aims to contribute to the effective utilization of influencer marketing to drive online shopping intent on TikTok Shop among consumers.1 General To investigate the factors influencing purchase intention on the TikTok Shop platform among Gen Z students living in Ho Chi Minh City.2 Specific To identify the key factors that affect the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City. To assess and analyze how these factors influence the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City. Provide some recommendations and implications for TikTok Shop administrators.3 Subjects and Scope of the Study 1.1 Subjects Research object: The intention to purchase on TikTok Shop platforms of Gen Z students living Ho Chi Minh City. Population: Gen Z students who have purchased or experienced with TikTok Shop platform residing in Ho Chi Minh City.2 Scope of Research Geographic Area: Ho Chi Minh City Duration: the research project was conducted from January 2024 to March 2024.4 Research Questions What are the factors that affect the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City? How do these factors influence the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City? What are some recommendations and implications for TikTok Shop administrators? 1.1 Preliminary Study The author carried out their own study and gathered relevant sources on the subject, such as similar scientific studies from both domestic and abroad perspectives.
10 Through this method, the author created a preliminary research framework and measurement tools. Furthermore, the author sought the feedback of some specialists and knowledgeable people in the area of e-commerce, and modified the measurement scale as needed.2 Formal Study Quantitative method: indirect interview through a questionnaire to collect information and data. Once collected, the data will be processed through SPSS 20.0 software to conduct Cronbach's Alpha analysis to assess the reliability of the scale and, at the same time, eliminate non-conforming observed variables. For the remaining variables, a discovery factor analysis (EFA) is conducted to group the observed variables into factors that influence buying decisions.
Next, regression is carried out to determine the impact of each factor on the research topic.6 Structure of the Study This research consists of five chapters: Chapter I: Introduction Chapter II: Literature Review Chapter III: Research Design Chapter IV: Research Findings Chapter V: Discussion and Implications Chapter 1 Summary: Chapter 1 outlines the comprehensive overview of this topic study in terms of the followings: (1) Rationale of the study, (2) Research objectives, (3) Subjective and Scope of research, (4) Research Questions, (5) Research Methodology, (6) Structure of the Study. 11 CHAPTER 2: LITERATURE REVIEW 2.1 E-commerce E-commerce, is a term that refers to the digital platform and business model of buying and selling products online. However, there is no consensus on the exact definition of e-commerce, and different sources may adopt different perspectives on the concept. Generally, we can distinguish two main approaches to e-commerce as follows: In a narrow sense, this concept defines e-commerce as the process of buying and selling goods and services through electronic means, especially the Internet and other telecommunication networks.
For example, the World Trade Organization (WTO, 1998) states that "E-commerce includes the production, advertising, sale, and distribution of products that are purchased, sold and paid for on the Internet, but delivered tangibly, both forwarded products as well as digital information via the Internet". According to the E-Commerce Committee of the Asia-Pacific Economic Cooperation (APEC, 2004), e-commerce is a business activity that uses digital communications and digital information processing technology. In a broad sense, e-commerce is understood as financial and commercial transactions conducted electronically, such as electronic data exchange, electronic money transfer, and activities such as deposit/withdrawal by credit card. From this point of view, two definitions summarize the entire scope of e-commerce activities.
UNCITRAL Model Law on Electronic Commerce (1996): “E-commerce is the exchange of commercial information through electronic means, without needing to print any stage of the entire transaction process on paper”.