VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: FACTORS AFFECTING IMPULSE BUYING DECISION IN SHOPEE’S LIVESTREAM Student’s name: NGUYEN NGOC QUYNH TRANG Hanoi - Year 2024 1 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: FACTORS AFFECTING IMPULSE BUYING DECISION IN SHOPEE’S LIVESTREAM SUPERVISOR: PhD Nguyen Thi Hong Hanh (Academic title, academic degree, full name) STUDENT: Nguyen Ngoc Quynh Trang STUDENT ID: 20070364 COHORT: QH2020-Q SUBJECT CODE: INS401101 MAJOR: International Business Hanoi - Year 2024 2 ACKNOWLEDGEMENT First, we would like to express our deep thankfulness to PhD.Nguyen Thi Hong Hanh, my research supervisors, for her great instructions. Thank to her dedicated guidlines for this research, I can complete this project. Also, I would like to express my great appreciation to all our friends and family for supporting us with distributing survey questionnaires. I could not complete this study without their huge supports for data collection.
Hanoi, June 12th 2024 Author Nguyen Ngoc Quynh Trang 3 DECLARATION OF AUTHORSHIP I hereby affirm that this thesis was conducted by myself under the guidance and supervision of Nguyen Thi Hong Hanh. The contents and findings presented in this thesis are true to the best of my knowledge and have adhered to research ethics without violation. The data, figures, and analyses included in this work have been sourced from various references and duly acknowledged in the bibliography. Furthermore, any comments, critiques, and data obtained from other authors and organizations have been appropriately credited and cited.
I acknowledge my full responsibility for any instances of academic misconduct detected in this thesis. Date: June 12th, 2024 Author Nguyen Ngoc Quynh Trang 4 ABSTRACT Livestreaming is more and more developed in social media and e-commerce platforms, which play an important role in promoting sales. Due to livestreaming, more and more customers are more likely to buy products that they don’t have inital buying intention during Shopee’s livestream sessions, which affect negatively to their finance. Therefore, in my research, I studied 5 factors affecting impulse buying decision of Vietnamese customers including: streamer’s credibility, price promotion, promotion time limit, visual appeal, interpersonal interaction.
Based on data analysis from 300 Vietnamese customers who has impulse buying behaviour at least one time in Shopee’s livestream, I concluded that promotion time limit, visual appeal and interpersonal interaction have positive impact on impulse buying in Shopee’s livestream with customer – streamer interaction ranked 1st and visual appeal ranked 2nd about the level of impact. On the contrary, streamer’s credibility is proved to negatively affect impulse buying in Shopee’s livestream, which is consistent with my hypothesis. Finally, it is found that price promotion has no impact on impulse buying in Shopee’s livestream. From these results, managers can adjust their strategy to satisfy customer’s need in Shopee’s livestream.
Keywords: Impulse buying decision, Live streaming e-commerce, Price Promottion, Streamer’s Credibility, Interpersonal Interaction, Visual Appeal, Promotion Time Limit. 5 TABLE OF CONTENT CHAPTER 1: INTRODUCTION. Overview about live stream e-commerce industry. Current live stream market in Vietnam and buying decision.
14 CHAPTER 2: LITERATURE REVIEW. Theoretical foundation: S – R theory. Overview about variables. Promotion time limit.
Data Gathering procedure. Data Analysis Technique. 33 CHAPTER 4: DATA ANALYSIS. Descriptive Static Analysis.
Weekly watching Shopee’s livestream hours. Monthly Spending on Shopee’s livestreaming. Measurement model analysis. Reliability and Validity .3 Exploratory Factor Analysis – EFA .4 Analyze structural models .1 Multi collinearity test -VIF .4 Structural model evaluation.
55 CHAPTER 5: DISCUSSIONS AND CONCLUSION. Limitations and recommendations. Research contribution and conclusion. 67 8 List of Figure Figure 2.
Weekly watching hours .5: Monthly Spending on Shopee Live…. 55 List of Table Table 3. Reliability and validity .1: Discriminant Validity - HTMT.2: Discriminant Validity Fornell-Larcker Table .1: KMO and Bartlett’s Test .2 : Total Variance Explained .3: Rotated Component matrix .1: Multi collinearity test -VIF .4 : Structural model path. 56 10 Appendix S – R Theory Stimuli – Response Theory SC Streamer’s Credibility PP Price Promotion CSI Customer – Streamer Interaction CCI Customer – Customer Interaction PPL Promotion Time Limit VA Visual Appeal 11 CHAPTER 1: INTRODUCTION 1.
Overview about live stream e-commerce industry Live streaming is defined as the process of broadcasting real time or live video footage to an audience over the Internet (Cambridge Dictionary 2018). Livestreaming stands out from other forms of video viewing on the Internet because it involves real- time transmission of video content. Unlike prerecorded videos, which are stored before being shared, livestreams are simultaneously recorded and transmitted to audiences Thus, real-time interaction between audience members and streamers is enhanced, which often occurs through supporting chat widgets and other chat software made available during the livestream. On the other side, Yang & Lee (2018) described live streaming e-commerce as the combination of live streaming video experience with online shopping experience to supply consumers with commodities-related video content to affect their purchase decisions and promote the conclusion of transactions between buyers and sellers.
With the development of e-commerce and the widespread popularization and application of the Internet, live streaming plays a key part in retail e-commerce model. The era of live ecommerce traces back when Tabao built a link between an online livestream broadcast and an e-commerce store to allow viewers to watch and shop at the same time (Aurora, 2021). By providing live streaming content, streamers push sales for merchants and help them to increase their brands reputation. In the context of live-streaming, streamers themselves could also perform as merchants.
Consumers are the receivers of information. By watching live-streaming video, consumers could not only meet their purchasing needs but also entertainment needs (Yang & Lee, 2018). Current live stream market in Vietnam and buying decision By 2020, E-commerce live streaming has witnessed a dramatic rise in the live streaming industry under the spread of the coronavirus epidemic, and live streaming used its existing base to penetrate the e-commerce industry (Luyao, 2022). Live streaming has revolutionized the online shopping experience in Vietnam, altering how consumers explore, engage, and buy products.
Services such as TikTok Shop, Shopee, Lazada, Tiki, and Sendo have emerged as digital marketplaces, offering live showcases of products, enabling real-time inquiries, and facilitating instant purchases. According to an article by Asiacircles, Vietnam’s live-streaming e- commerce market is expected to reach $11 billion by 2026, growing at a staggering 28% annually, while over 70% of Vietnamese internet users have watched a live stream, with 50% purchasing during or after the stream. Shopee is said to be currently a leading unit in the field of e-commerce in Vietnam by a report from Metric. Specifically, in the third quarter of 2023, nearly 70% of the retail sales market share belongs to this platform compared to other competitors in the same industry such as Lazada, Tiki, Sendo, and TikTok.
Particularly, in 2022, more than 37 million hours is the amount of time Vietnamese users spent on Shopee Live to interact with their favorite sellers to learn about the products they were interested in before placing orders. More value and a more complete online experience from Shopee Live are requested from customers. An increasing number of users shared their experiences and comments about purchased products, helping other buyers make better purchasing decisions. Research motivation In the ever-evolving landscape of e-commerce, Live-Stream Commerce has emerged as a dynamic and interactive channel that bridges the gap between online shopping and traditional experiences.
Live streaming has been widely discussed as a new media form that triggers people’s continuous watching behavior (Kaytoue et al., 2012; Sjöblom & Hamari, 2017). Unlike other live-streaming platforms, the live-streaming shopping platform is based on the background of e-commerce and has a strong results-oriented purpose, that is, live viewers are supposed to generate more 13 purchases.T conducted a survey with 280 Vietnamese users who shop on platforms like Shopee and Lazada and then, they indicated that impulse purchases are common in livestreaming environment. One reason for this phenomenon is that in live streaming e-commerce, streamers (sellers or their employees) provide consumers with product descriptions and information through interpersonal communications and product trials, thereby promoting consumers’ impulse purchases (Hu et al. Besides, the feeling of being part of a live event, where other viewers are also participating, enhances social presence and can lead to increased impulse purchases.
The social interaction and community feeling make the experience more immersive and enjoyable (LI, X. According to Cai et al (2018), impulse buying in livestream is pushed by many factors such as price promotion, streaming media credibility, platform design and interactivity In my research, I focus on study how external stimuli affect impulse buying decision in livestream. So I choose streamer's credibility, interpersonal factors, visual appeal, promotion time limit, and price promotion as independent factors affecting impulse buying in livestream shopping because each of these elements plays a significant role in influencing consumer behavior (Huang, Y. Streamer's credibility builds trust and persuades viewers through authentic recommendations and demonstrations, which are critical in the real-time, interactive nature of livestreams (Wang et al., 2020; Yang and Lee, 2023).
Interpersonal factors, such as the interaction between the streamer and viewers, create a sense of community and social proof, enhancing the likelihood of impulse purchases (Li, M. Visual appeal captures attention and engages viewers, making products more attractive and desirable (Huang, Y. Promotion time limits induce urgency and scarcity, compelling viewers to make quick purchasing decisions to avoid missing out (Xie, 2015). Lastly, price promotions provide immediate financial incentives, making viewers more inclined to take advantage of perceived deals, thus driving impulsive buying behavior (Chen et al., 2021; Li et al.
Together, these factors 14 create a dynamic and persuasive shopping environment that effectively triggers impulse buying. In Vietnam, Shopee is one of the leading e-commerce platforms in Southeast Asia. The E-commerce in Southeast Asia 2023 report by Singapore-based market researcher Momentum Works demonstrated that in Vietnam, Shopee had the largest share of 63%, followed by Lazada. Meanwhile, Reputa, a Vietnamese social media tracker, pointed out that Shopee and Lazada were the two most popular platforms in the country.
Analyzing 402,309 entries on social media from January to May, Shopee recorded a total score of 91.03 based on netizens’ sentiments, interactions, discussions, and reach. Additionally, Shopee has robust livestreaming capabilities integrated into its platform. These features include real-time interactions, product showcases, and instant purchasing options, which are ideal for studying impulse buying triggers. With all its advanced live-streaming features, and an extensive user base, Shopee makes it as an ideal platform for studying impulse buying behaviors during livestreams.
However, there is a difference in understanding the specific factors that influence impulse buying in the context of Shopee’s livestream platform with other platforms. As a result, the purpose of this research is to fill that gap by identifying and analyzing the key drivers of impulsive buying behavior during Shopee’s live-streaming sessions. The findings of this study will not only contribute to the theoretical understanding of impulse buying in livestreams but also provide practical insights for e-commerce platforms and marketers looking to optimize their live streaming stratgies. Research objectives This research aims to understand the key drivers behind impulse buying behavior within Shopee's livestream shopping platform.
It will focus on identifying and analyzing the factors that influence viewers to make unplanned purchases while watching Shopee live streams. By investigating several factors, the research seeks to: 15 • Identify the most significant influences on impulse buying within Shopee Live. • Understand how these factors interact and contribute to the decision-making process. • Provide valuable insights for Shopee and sellers to optimize their live streams and potentially increase impulse purchases.
Research structure The research project is divided into five chapters, each playing a crucial role in collecting and analyzing different aspects of the study. Chapter 1 serves as the introduction, not only outlining the objectives but also providing an overview of the research structure. Next, Chapter 2 will provide overview of independent variables, dependent variables.