FACTORS AFFECTING GENZ CUSTOMERS INTENTION TO CONTINUE BUYING ON TIKTOK SHOP IN HANOI NGUYEN KHANH LINH FACTORS AFFECTING GENZ CUSTOMER’S INTENTION TO CONTINUE BUYING ON TIKTOK SHOP IN HANOI NGUYEN KHANH LINH BACHELOR IN MARKETING VIETNAM NATIONAL UNIVERSITY, HANOI BACHELOR OF BUSINESS (MARKETING) HELP UNIVERSITY APRIL, 2025 APRIL, 2025 FACTORS AFFECTING GENZ CUSTOMER’S INTENTION TO CONTINUE BUYING ON TIKTOK SHOP IN HANOI BY NGUYEN KHANH LINH Graduation Project Submitted to Vietnam National University, Hanoi – International School in Partial Fulfilment of the Requirements for the Degree of Bachelor of Marketing and Department of Business Studies, HELP University, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (Marketing) Hons MONTH & 2YEAR (Month and Year of Presenta1on, Uppercase, centred, bold, 12-point font) ACKNOWLEDGEMENT In order to finish the topic "FACTORS AFFECTING GENZ CUSTOMER’S INTENTION TO CONTINUE BUYING ON TIKTOK SHOP IN HANOI," I would like to express my sincere gratitude to Dr. Vu Minh Quan and the instructors at the International School-Vietnam National University, Hanoi, for their unwavering commitment to sharing their knowledge, expertise, and theoretical guidance as well as practical application. In addition, I would like to sincerely thank everyone who supported me throughout the thesis process by taking the time to complete the survey and offer feedback Even after exchanging and receiving feedback from friends and teachers, looking through numerous documents, and doing our best to finish the thesis, mistakes could not be prevented during the implementation process. In order to finish this thesis as effectively as possible, I therefore look forward to hearing from instructors and friends and getting their input.
Best regards, Nguyen Khanh Linh 3 DECLARATION OF AUTHORSHIP I certify that the submitted thesis is entirely my own original work. All cited sources, whether direct or indirect, are acknowledged. Any and all statements that were directly or indirectly lifted from other publications are appropriately cited. I haven't sent the work to any other testing authority in the same or a comparable format.
I agree that plagiarism detection software may be used to check this work. Hanoi, 2025 Linh NGUYEN KHANH LINH 4 BUSINESS DEPARTMENT BACHELOR OF BUSINESS MGT400 GRADUATION PROJECT DECLARATION FORM Name: NGUYEN KHANH LINH Student ID: 20071028 / E2200023 Programme of Studies: DUAL-MKT Title of Project/Dissertation: FACTORS AFFECTING GENZ CUSTOMER’S INTENTION TO CONTINUE BUYING ON TIKTOK SHOP IN HANOI Name of Supervisor(s): DR. VU MINH QUAN Declaration: In accordance with the appropriate regulations, I hereby submit the above Graduation Project forexamination and I declare that: (i) I have read and understood the sections on Plagiarism found in the University’s “GeneralInformation to Students” Handbook and certify that the Graduation Project embodies the results of my own work. (ii) I have adhered to the ‘Harvard system of referencing’ or a system acceptable as per “The Referencing Guide” for referencing, quotations and citations in my Graduation Project.
Eachcontribution to, and quotation in my Graduation Project from the work of other people has been attributed, and has been cited and referenced. (iii) I have not allowed and will not allow, anyone to copy my work with the intention of passingit off as his or her own work. (iv) I am aware that I may have to forfeit the degree in the event that plagiarism has beendetected after the award. (vi) I am aware that my Graduation Project may be used by my supervisor(s) and/or HELPUniversity for further research or any collaborative work, and under no circumstances whatsoever would claim any rights to the said work.
Signature: Date: 5 LIST OF ACRONYMS TAM Technology – Acceptance - Model SQ Service Quality WQ Website Quality EU Ease of use UA Useful awareness TR Trust INT Intention 6 List of Tables Table 1: Questionnaire Matrix 33 Table 2: Statistical results describe the sample in terms of gender 36 Table 3: Descriptive statistics of the sample by age 36 Table 4: Descriptive statistics of the sample by occupation 37 Table 5: Descriptive statistics of the sample by income level 37 Table 6: Descriptive statistics of the sample according to frequency of 38 purchases on TikTok shop Table 7: Descriptive statistics of the sample by product purchased by 38 customers on the TikTok shop Table 8: Results of Cronbach's Alpha test of the independent variable 39 Table 9: Cronbach's Alpha test results of the dependent variable 41 Table 10: Outer Loading 44 Table 11: Construct reliability and validity 45 Table 12: HTMT matrix 46 Table 13: Fornell-Larcker criterion 46 Table 14: Model Fit 47 Table 15: Inner VIF 48 Table 16: Structural Model Quality 48 Table 17: Hypothesis Testing Results in the Model 48 Table 18: Hypothesis Testing 50 Table 19: Effect size (f2) 51 Table 20: Results of Q2 coefficient in the model 52 7 List of Figures Figure 1: TRA model 20 Figure 2: TAM technology acceptance model (Source: Davis, 1989) 21 Figure 3: Proposed research model 26 Figure 4: Research Process 28 Figure 5: Measurement Model Result 43 8 Table of Contents ACKNOWLEDGEMENT. 1 DECLARATION OF AUTHORSHIP. 4 LIST OF ACRONYMS. 6 List of Tables.
7 List of Figures .2 Research objective and Research question:. 14 CHAPTER 2: LITERATURE REVIEW. Definition of terms:. E-commerce in Vietnam Market Share.
Online shopping in Vietnam. Intention to continue purchasing online. Theoretical models related to the research problem. Theory of Reasoned Action – TRA.
Technology acceptance model - TAM. Previous research hypotheses and models .1 Author Lee and colleagues' (2010) examination of the primary factors influencing consumers' intentions to keep making purchases online .2 A combined model for consumers' intention to keep making purchases online, written by Chao Wen and colleagues (2011) .3 Analysis of the primary factors influencing the intention to keep making purchases online by Rezaei and associates (2014). Reasons for building the proposed model. Factors affecting GenZ's intention to continue purchasing online on TikTok shop in Hanoi.
Proposed research model. The Operational Definition and Measurement Design. Description of Research Data. The method of data collection .3 Data processing methods.
34 CHAPTER 4: FINDINGS AND RESULT.1 Data descriptive statistics .2 Cronbach's Alpha reliability test. 39 CHAPTER 5: DISCUSSION AND CONCLUSION. 60 10 FACTORS AFFECTING GENZ CUSTOMER’S INTENTION TO CONTINUE BUYING ON TIKTOK SHOP IN HANOI CHAPTER 1: INTRODUCTION 1.1 Research motivation: The internet and other technological advancements have had a significant impact on human activities and all aspects of life, and this impact and development has become more significant in recent years. Additionally, the rapid expansion of the Internet has resulted in more equitable competition for businesses, simpler and more expedient access to information for customers, and more affordable shopping opportunities.
According to Ramachandran et al. (2018), people all over the world have become very accustomed to the practice of shopping that takes place online. According to a statistical report that was published by the International Telecommunication Union (ITU), which is the United Nations agency that is in charge of information and communications technology, there were 5.16 billion Internet users around the world as of April 2023.4% of the total population of the world and represented a 1.9% increase from the same period in 2022. "By May 2023 in Vietnam, the proportion of people who have been using the Internet in daily life accounts for 79.93 million people)," according to the findings of Kepios, a global research firm that focuses on social network user trends.
This represents an increase of approximately 7.3 million people) in comparison to the same month in 2022. In terms of Internet connectivity, Vietnam is the eighth most Internet-connected country in Asia and the twelfth most Internet-connected country in the world. Based on the information provided by Miniwatts Marketing Group (2022), Tiktok in particular has the potential to experience significant growth as a result of this opportunity. Online shopping that is based on social networking sites is currently one of the most popular shopping platforms in Vietnam.
According to research that was carried out in 2022 by the Department of E-Commerce and Information Technology (VECITA), it was 11 discovered that 74.8% of the Vietnamese population engages in the practice of making purchases online, that the average annual value of an online purchase made by a Vietnamese person is between 260 and 285 USD, and that the total sales for the year in Vietnam amounted to $12. Customers appreciate the convenience of online shopping because it satisfies their needs in a variety of ways, such as enabling them to shop on the same platform, supplying them with the information they require through conversations, making it easy for them to locate the products they require, providing prompt customer service, and so on. In this day and age, the two products that are purchased on social networking sites the most frequently are makeup and merchandise. On the other hand, the products that people purchase online the most frequently are cosmetics, footwear, and clothing (69 percent), followed by electronics (51 percent), technology, and home appliances (64 percent).
According to the data presented above, the market for internet retail in Vietnam is expanding at a rapid rate. This is something that could be considered a "lucrative piece of cake" for companies that are working to expand their customer base and increase their earnings. On the other hand, the number of websites that are dedicated to conducting business online is growing and varies, and the policies that are implemented by these websites are in direct competition with one another. In light of this, it is clear that making a profit from this "lucrative piece of cake" is extremely challenging.
It is necessary for businesses to determine how to attract customers to their websites. Moreover, what strategies do you employ to entice customers to return to the website in order to make purchases? For businesses, this is also a problem that needs to be addressed. The TikTok app now incorporates an e-commerce platform known as TikTok Shop, which was first presented to the public in the year 2021. Livestreams, short films, and individualized recommendations are some of the ways that this service, which is owned by ByteDance (China), connects buyers and sellers.
Although it was introduced later than more established e-commerce sites such as Shopee, Lazada, or Tiki, TikTok Shop quickly expanded to operate in a number of markets, including Southeast Asia, Europe, and the United States of America. Because the business model of TikTok Shop combines social networking and e-commerce, also known as "Social Commerce," users are able to 12 shop and entertain themselves on the same platform without having to switch to other apps. TikTok Shop has been able to successfully assist sellers in reaching prospective buyers by utilizing its powerful recommendation system and its ability to generate a viral impact in a short amount of time. TikTok Shop, on the other hand, must contend with intense competition from other online sales channels as well as more established e- commerce platforms.
According to information provided by iPrice Group (2023), TikTok Shop has quickly emerged as one of the e-commerce platforms that has experienced the most rapid growth rates in Vietnam. Nevertheless, according to this report, the conversion rate of TikTok Shop from video views to purchases is still not very high when compared to the conversion rates of other platforms. According to research conducted by Kantar Worldpanel (2023), the majority of TikTok Shop's customers in Vietnam are members of Generation Z, which is defined as individuals between the ages of 18 and 28. These individuals base their purchasing decisions on popular trends, reviews from influential individuals, and alluring promotions.
Therefore, in order to maintain growth and improve the efficiency of the business, it is necessary to conduct additional research on the factors that influence the intention of Gen Z customers to continue shopping online on TikTok Shop in Hanoi.