MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INTERNATIONAL BUSINESS A STUDY ON FACTORS IMPACTING THE PURCHASE INTENTION OF GENERATION Z ON THE TIKTOK SHOP PLATFORM IN HO CHI MINH CITY INSTRUCTOR: MSC. NGUYEN PHAN NHU NGOC STUDENT: DAO DIEM TRINH SKL012365 Ho Chi Minh City, SEPTEMPER, 2023 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION ECONOMICS DEPARTMENT ---------------------------------- GRADUATION DISSERTATION TOPIC A STUDY ON FACTORS IMPACTING THE PURCHASE INTENTION OF GENERATION Z ON THE TIKTOK SHOP PLATFORM IN HO CHI MINH CITY Student : Dao Diem Trinh ID Student : 20136165 Course : 2020 Major : International Business Instructor : MSc. Nguyen Phan Như Ngoc Ho Chi Minh City, September 2023 INSTRUCTOR’S EVALUATION FORM Student: Dao Diem Trinh ID Student: 20136165 Major: International Business Topic: A Study on Factors Impacting the Purchase Intention of Generation Z on the TikTok Shop Platform in Ho Chi Minh City Instructor: MSc. Nguyen Phan Nhu Ngoc EVALUATION.
Ho Chi Minh City, September 2023 Instructor MSc. Nguyen Phan Nhu Ngoc i DECLARATION This graduation thesis entitled “A Study on Factors Impacting the Purchase Intention of Generation Z on the TikTok Shop Platform in Ho Chi Minh City” which is submitted by me in partial fulfillment of the requirement for the award of a bachelor’s degree of Ho Chi Minh City University of Technology and Education. I hereby declare that this essay has been written by me and that I have acknowledged all sources used in it. I have not copied from any other student’s work or from any other sources except where due acknowledgment has been made explicitly in the report, nor have any parts been written for me by another person.
I agree that Ho Chi Minh City University of Technology and Education may submit my work to means of checking this, such as the plagiarism detection service Turnitin. I understand that if I am found to have plagiarized or committed any other form of academic misconduct, I might face disciplinary action in accordance with the regulations of Ho Chi Minh City University of Technology and Education. Ho Chi Minh City, September 2023 Student Dao Diem Trinh ii ACKNOWLEDGEMENT This work is accomplished based on the patience, assistance and reinforcement of numerous people; thereby, I would like to express my gratitude to the concected divisions: On the one hand, I owe my sincere gratitude to the Board of Directors of Ho Chi Minh City University of Technical Education as well as the faculty members of the Faculty of Economics for designing such a valuable graduation research in the International Business ology that has enabled me to assess the empirical situation of my thesis, simultaneously to surpass and handle distinguish situations and to enlighten me towards the right direction for my career orientation. Furthermore, with the enthusiastic assistance comprising guiding, imparting, motivating, and giving advice throughout the process of writing this dissertation from my instructor – MSc.
Nguyen Phan Nhu Ngoc, I have acquired the way to build up an effective project for my graduation and I have harnessed all the valuable knowledge to my thesis. On the other hand, I would like to thank the unit of consumers in Ho Chi Minh City for their assistance with my data collection. Their contributions consolidate considerable information for implementing the author’s research. Once again, I would also like to thank all seniors, relatives, and friends who have helped and guided me to complete my graduation dissertation.
Ho Chi Minh City, September 2023 Student Dao Diem Trinh iii ABSTRACT The topic “A Study on Factors Impacting the Purchase Intention of Generation Z on the TikTok Shop Platform in Ho Chi Minh City” was conducted in Ho Chi Minh City, from September 2023 to November 2023. Based on previous studies of researchers combined with the theoretical models TRA and TPB, the author adjusted and generated the research framework with five factors affecting the intention to utilize TikTok shop among Generation Z, embracing: Perceived Ease of Use, Perceived Usefulness, Trust, Subjective Norm, and Perceived Risk. The five factors were validated through the online form by 452 survey samples with 206 valid samples. The collection was completed through a survey and the outcomes depicted that all components affected the intention to harness TikTok shop for shopping among Generation Z, specifically, Perceived Ease of Use accounted for the strongest positive influence on the TikTok shop’ purchase intention of the young generation and Perceived Risk accounted for the negative impact on the TikTok shop’ buying intent among that age group.
Since then, the author concluded and proposed appropriate recommendations to enhance the intention to utilize TikTok shop for shopping among Generation Z as well as contribute the empirical resources for businesses to enhance their operating strategies via grasping the influencing factors. iv LIST OF ABBREVIATIONS EFA Exploratory Factor Analysis Et al. Et alia (and others) Etc. Et cetera (and other similar things) KMO Kaiser-Meyer-Olkin KOLs Key Opinion Leaders MBA Master of Business Administration PEOU Perceived Ease of Use PI Purchase Intention PLS-SEM Partial Least Square Structural Equation Modeling PR Perceived Risk PU Perceived Usefulness SEM Structural Equation Modeling SN Subjective Norm TAM Technology Acceptance Model TPB Theory of Planned Behavior TR Trust TRA Theory of Reasoned Action VAM Theory of Value Adoption Model VIF Variance Magnification Factor v LIST OF TABLES Table 3.
The Theoretical Scale. The Official Research Scale. Gender Research Sample. Frequency Research Sample.
PEOU Reliability Statistics. PEOU Item-Total Statistics. PU Reliability Statistics. PU Item-Total Statistics.
TR Reliability Statistics. TR Item-Total Statistics. SN Reliability Statistics (the 1st time). SN Item-Total Statistics (the 1st time).
SN Reliability Statistics (the 2nd time). SN Item-Total Statistics (the 2nd time). PR Reliability Statistics. PR Item-Total Statistics.
PI Reliability Statistics. PI Item-Total Statistics. KMO and Bartlett's Test of Independent Variable (the 1st time). Rotated Component Matrixa of Independent Variable (the 1st time).
KMO and Bartlett's Test of Independent Variable (the 2nd time). Rotated Component Matrixa of Independent Variable (the 2nd time). KMO and Bartlett's Test of Dependent Variable. Total Variance Explained of Dependent Variable.
The Adjusted Research Scale. Pearson Correlation Coefficient. Hypothesis Analysis Outcome. 57 vi LIST OF FIGURES Figure 2.
The Consumer Behavior Model. The Purchase Intention Procedure. The Theory of Reasoned Action (TRA) Model. The Theory of Planned Behavior (TPB) Model.
The Research Framework of See Siew Sin et al. The Research Framework of Dushyantha Kulathunga (2018). The Research Framework of Toan Do and Cuong Nguyen (2019). The Research Framework of Ali Abou Ali et al.
The Research Framework of Phuong Viet and Le Hoang (2020). The Research Framework of Yeow et al. The Research Framework of Mulatu Tilahun Gelaw et al. The Research Framework of of Xiaoshuang Luo et al.
The Proposed Research Framework. The Research Procedure. The Official Research Framework. Scatter Plot Chart.
Framework Analysis Outcome. 58 vii CONTENT DECLARATION. iv LIST OF ABBREVIATIONS .v LIST OF TABLES. vi LIST OF FIGURES.
vii CHAPTER 1: INTRODUCTION TO THE RESEARCH. The Urgency of The Study. The Objective of The Study. Object And Scope of Study.
Method of The Study. The Practical Significance of The Study. The Structure of The Study. Summary of Chapter 1 .5 CHAPTER 2: THEORETICAL FOUNDATION AND RESEARCH FRAMEWORK.
Customer Behavior Overview. Theories associated with Purchase Intention. Theory of Reasoned Action (TRA). Theory of Planned Behavior (TPB).
TikTok Social Media Platform. Interrelated Research Oeuvre. The Research Framework of See Siew Sin et al. The Research Framework of Dushyantha Kulathunga (2018).
The Research Framework of Toan Do and Cuong Nguyen (2019). The Research Framework of Ali Abou Ali et al. The Research Framework of Phuong Viet and Le Hoang (2020). The Research Framework of Jian Ai Yeow et al.
The Research Framework of Mulatu Tilahun Gelaw et al. The Research Framework of Xiaoshuang Luo et al. Hypothesis and Research Framework. Summary of Chapter 2 .24 CHAPTER 3: RESEARCH METHODOLOGY.
Theoretical scale formation. Qualitative research blueprint. Data Collection Method. Qualitative research outcome.
Research framework adjustment. Research scale adjustment. Data Collection Method. Sample Selection Benchmark.
Sample Selection Method. Summary of Chapter 3 .38 CHAPTER 4: RESEARCH OUTCOME. Data Collection Outcome. Research Sample Information.
Assessing The Scale Reliability based on Cronbach’s Alpha Implement. Analyzing Cronbach’s Alpha Reliability Coefficients regarding Independent Variables. Perceived Ease of Use Scale. Perceived Usefulness Scale.
Subjective Norm Scale. Perceived Risk Scale. Analyzing Cronbach’s Alpha Reliability Coefficients regarding Dependent Variable. The Exploratory Factor Analysis.
Analyzing Exploratory Factor Analysis regarding Independent Variable. Analyzing Exploratory Factor Analysis regarding Dependent Variables. Research Scale and Research Framework Adjustment. Linear Regression Analysis.
Analyzing the Pearson Correlation Coefficient. Analyzing Linear Regression. Normal Distribution of Residuals. Linear Relationship Between Dependent Variable and Independent Variable.
The unchanged residual variance. Framework Analysis Outcome. Summary of Chapter 4. The major outcomes of the study.
The appropriate recommendation. The restriction of the study. Summary of Chapter 5 .69 x CHAPTER 1: INTRODUCTION TO THE RESEARCH 1. The Urgency of The Study Being a prevalent foundation for communication, the Internet is promptly evolving into a state-of-the-art gadget for promoting commodities and services (Dwivedi et al.
In recent days, owing to the widespread enhancing usage of technology and the Internet, online shopping through social media platforms, which has become the most salient medium of marketing activities through large institutions as well as medium and small enterprises in the 21st century, is gaining prevalence (Ofori and Appiah-Nimo, 2019). Specifically, enormous human interaction has been developed astonishingly with the emergence of social media and virtual platforms in modern times (Balakrishnan, Dahnil and Wong Jiunn Yi, 2014), which emboldens businesses to swiftly realize the opportunities brought by the Internet and to enlarge their conventional physical stores into the online stores to provide products as well as services for catering the demands of customers. Concerning Vietnam market, in these current times, people gradually have tended to purchase products on online websites such as Shoppe, Lazada, Tiki, and Sendo. Furthermore, in 2017, a novel online platform derived from China, known as TikTok, penetrated the social media market in Vietnam and became prevalent among customers, especially Generation Z, and gained relentless development in the usage share with the “shopertainment” combined business form according to the report regarding mass media of the Vietnam market.
Globally, in December 2020, TikTok was the most downloaded application of the year, attained a fivefold increase in comparison to the same duration of the previous year, and was predicted to maintain this mentioned growth in the following year (Tran Van Thang, 2021). Furthermore, although penetrating later to the social media market, TikTok surpassed its competitors, namely Twitter, Telegram, Pinterest, and Snapchat, and accounted for the prevalent appearance frequency in the mobile application among customers. These statistics indicate that TikTok is gradually turning into a medium possessing a vast number of users. Since then, TikTok has developed as a dominant social media foundation and is considered one of the most widespread social networks among platforms in the global state as well as has also had an immense influence on the perception and behavior of Generation Z.
According to the Mic report, TikTok shop gains more than a billion monthly active users belonging to the young generation and in Vietnam, that number is currently reaching 13 million users belonging to Generation Z per month, specifically, the first quarter of 2023 1 continued to witness the growth of the usage ratio of TikTok shops compared to the fourth quarter of 2022, reaching 25%.