FOREIGN TRADE UNIVERSITY HCMC CAMPUS ECONOMETRICS MIDTERM THESIS THE IMPACT OF TIKTOK ON PURCHASING BEHAVIOR OF CONSUMER IN VIETNAM Ho Chi Minh City, March, 2023 1 Table of Contents LIST OF TABLES.3 LIST OF ABBREVIATIONS.4 LIST OF FIGURES.2 Research questions and objectives.9 CHAPTER 2: LITERATURE REVIEW.2 Results of previous research.1 Research of Hooria Adnan.2 Research of Raji et.3 Research of Gan & Wang.4 Research of Alalwan.3 Gaps of previous research.4 Research models and hypothesis.2 Independent variables and hypothesis.3 Measurement scale description.22 CHAPTER 3: RESEARCH METHODOLOGY.1 Verifying sampling size using overall estimate.2 Evaluate the reliability of the scale.4 Correlation analysis – regression. Data collection procedure. Data analysis approach.32 CHAPTER 4: ANALYSIS RESULTS.2 Result of reliability analysis (Cronbach’s Alpha). Reliability analysis of Advertising content’ measurement scale.2 Reliability analysis of Perceived value’ measurement scale.3 Reliability analysis of Purchase intention’ measurement scale.3 Exploratory Factor Analysis (EFA).1 EFA for independent variables.2 EFA for dependent variable.3 Analysis of Pearson’s Correlation.1 Testing the suitability of model.2 Testing research hypotheses.45 CHAPTER 5: CONCLUSION AND IMPLICATIONS.2 Conclusion of research findings.1 Limitations for future research.2 Suggestions for future research.53 APPENDIX: PICTURE FROM SPSS23.58 3 LIST OF TABLES 4 LIST OF ABBREVIATIONS PCI Purchase Intention PCV Perceived Value ADC Advertising Content IBM International Business Machine SPSS Statistical Packet for the Social Science S-O-R Stimulus-Organism-Response KOL Key Opinion Leader 5 LIST OF FIGURES Figure 2.1: 5 step of purchasing behavior process Figure 2.2: SOR model of consumer purchase Figure 2.3: Theory of Planned Behavior Model Figure 2.4: Theory of Reasoned Action Figure 2.5: Conceptual Model Figure 3.1: Research Process Figure 4.1: Regression Standardized Residual Histogram Figure 4.2: Regression Standardized Residual Normal P-P Plot Figure 4.3: Regression Standardized Predicted Value Scatterplot 6 ABSTRACT TikTok is a social media app that has rapidly gained popularity around the world, and its impact on consumer behavior is a topic of interest for researchers.
Having a large number of daily users, TikTok has emerged as one of the most visited media sites in Vietnam. The mission of this study is to make a rigorous scrutiny on how TikTok affects Vietnamese customers' purchasing behavior. Customers in Vietnam who use TikTok will be surveyed as part of the study process The anticipated research outcome of this study will provide insights into the influence of TikTok on the consumer behavior in Vietnam, and the key elements that influence its effectiveness. The findings of this study will have implications for businesses and marketing professionals, who can use the insights to effectively target and engage with consumers on TikTok.
Additionally, the research is expected to contribute to the academic literature on the role of social media in shaping consumer behavior. Perceived Value, Advertising Content and Purchasing Intention are the variables that will be studied to understand how consumer’s Purchasing Behavior will affect online shopping on TikTok platform. Data was collected from 149 respondents who are citizens of Vietnam who have online shopping experiences. SPSS23 was used to analyze data to specify a wide range of scales, measurements, structural model and test reliability analysis.
Recognizing the importance of this issue, and thus, we have chosen the topic "THE IMPACT OF TIKTOK ON PURCHASING BEHAVIOR OF CONSUMER IN VIETNAM'' with the aim of conducting a deeper study on the factors influencing consumer purchasing behavior and product exchange on the TikTok platform. Our main goal is to provide a foundation for future research on a larger scale. Keywords: Brand association, marketing communication, online purchasing behavior, Advertising content, Perceived value, Purchase intention.1 Introduction The 15-second video has revolutionized the concept of "micro narrative" and appeals to people's sense of curiosity. Rogers, an American scholar, stated “theory of diffusion of innovation”, which refers to a “concept, practice, or thing” that is accepted and spread among a social group through various channels over time.
The unique narrative style of the short video has increased its expressiveness and has become a favorite among audiences. This has opened up new opportunities for companies to reach a younger and more mobile-savvy audience, who are spending more time on social media platforms like TikTok. Overall, TikTok's integration with e-commerce has the potential to transform the way businesses reach and engage with customers. According to statistics from TikTok Vietnam, when conducting surveys on short-form video platforms, 80% of respondents chose TikTok as their favorite platform for entertainment and creativity.
Over 95% of users reported seeing advertisements on TikTok, and 9 out of 10 people take action after watching these ads. It is clear that this is an incredibly promising business environment for both customers and businesses. The population explosion in Vietnam, particularly the rapid and massive increase in Gen Z youth, has driven the rapid development of TikTok. 149 customers in Vietnam, mainly those who belong to Gen Z who use TikTok will be surveyed as part of the study process.
In order to define the measurement and structural models, the data will be examined using SPSS. The study reveals that there is a strong and positive correlation between advertising content on TikTok, the perceived value of the product, and the intention to purchase it. The perceived value of the product significantly mediates the relationship between the advertising content and consumer intention. Furthermore, there is a vital link between advertising content on TikTok and the intention to purchase.2 Background Vietnam is a country with a rapidly growing economy and a growing middle class, making it an attractive market for consumer goods.
The purchasing behavior of consumers in Vietnam has been impacted by various factors, including economic growth, technological advancements, and cultural influences. These factors are all characteristics of TikTok, one of the most popular social platforms in the world. TikTok is a social media app that primarily focuses on short-form videos, with a majority of the content being user-generated. According to Appota’s annual series of mobile market reports, TikTok had reached 16 million downloads in the year 2020.
The use of TikTok was expanded even larger in scale due to the COVID-19 pandemic. Survey conducted by Muliadi (2020) showed that Generation Z (Gen Z), who were born between 1996 and 2009 (Sarah Sladek and Alyx Grabinger, 2018), account for 60% of TikTok’s users. This shows that the app will be more and more popular since it provides a platform for businesses and influencers to reach a vast audience, making it an attractive marketing tool. Platforms like Facebook, Instagram, and Youtube have a substantial impact on how customers make 8 purchasing decisions, according to prior studies on social media and its impact on consumer behavior.
TikTok, being a new player in the market, has not yet been thoroughly studied in terms of how it affects the purchasing behavior of customers. However, considering the growing popularity of the app, it is crucial to understand its impact on consumer behavior in Vietnam. This research aims to investigate the impact of TikTok on purchasing behavior in Vietnam by analyzing the app's features, such as its personalized content recommendations, user engagement, and influencer marketing. However, few authors have really been able to derive from any organized research regarding how TikTok's algorithm affects consumer demand.
The study will focus on the app's impact on consumer decision-making, including brand preference, product choice, and purchase intention. The research will contribute to the field by providing insights into the impact of TikTok on purchasing behavior in Vietnam, examine the significance of TikTok’s algorithm in the rise of its dominant use as an aiding tool for online businesses, a market that has not yet been extensively studied. The findings will also provide businesses with a better understanding of how to effectively market their products on TikTok and how to reach their target audience. Additionally, the research will provide insights into the influence of social media on consumer behavior, adding to the existing literature on the topic.
The impact of TikTok on purchasing behavior in Vietnam is a crucial topic that needs to be explored, considering the app's growing popularity and its potential as a marketing tool. The results of this study will advance our knowledge of the influence of social media on consumer behavior and provide businesses with valuable insights into how to effectively market their products on TikTok.2 Research questions and objectives Research questions of the study are presented as below The study will address the following research problems: (1) How does TikTok impact the purchasing behavior of consumers in Vietnam? (2) What are the key factors that influence the effectiveness of TikTok in shaping customer purchasing behavior? (3) How do consumers use TikTok to make purchasing decisions? (4) What needs to be done to change the purchasing behavior of customers towards increasing spending on products on the TikTok platform? The objectives of this study are to: (1) Investigate the impact of TikTok on the purchasing behavior of consumers in Vietnam. (2) Evaluate the use of TikTok by consumers in the decision-making process (3) Identify the main factors affecting the effectiveness of TikTok into shaping customer purchasing behavior. (4) Evaluate the level of impact these factors have on the purchasing behavior of consumers in Vietnam 9 1.1 Practical contribution Customers' buy intentions rise when they use social networks to market goods and draw customers.The study written by the author before you also concentrated on social networking sites, social media, or studying social networks, encompassing previous websites such as Facebook and Instagram (Teo et al.
The new social networking site TikTok, in contrast, will grow and adapt to the patterns of young people, particularly Generation Z. The conclusion of this study will advise a boss or marketing supervisor to concentrate on the TikTok material of their business. They have a significant impact on purchasing behavior, and their stats on perceived value are crucial for bridging the gap among both advertising content and purchase intention. This study concentrates on the promotional material that brands themselves share on social media, so they can speak for the effects of brand image on their own.2 Theoretical contribution By analyzing customer buy intentions using the S-O-R theory, this study is anticipated to cover the gap in the literature on social networking sites in Vietnam and add to it.
This study's application to the TikTok environment is also anticipated to support Raiji's (2018) adoption model and highlight the fact that buy intention is also influenced by perceived worth and the advertising content. To put it briefly, this study will suggest a thorough methodology to evaluate in the context of TikTok in Vietnam, adopting Raiji's finding-based implementation strategy (2018).4 Research scope The focus of this study is on Vietnamese consumers who could buy a product after receiving a suggestion from TikTok and its brands. For this study, data on TikTok users in Vietnam were acquired. The author will become familiar with the product types that TikTok advertises.
Assess the perceived worth of the advertisements in the eyes of the consumer after which they offer an objective study to determine their impact on the consumer's purchasing behavior. The research was carried out between October 2022 and March 2023.5 Research structure There are 5 chapters in our research. Chapter 1: Introduction The research background, questions and objectives, research contributions, research scope and research structure are all described. Chapter 2: Literature review The research on content of advertisements, perceived value, and buying intention is summarized and reviewed in this chapter.
Each element is covered in detail, along with the theoretical underpinnings of the study. 10 Chapter 3: Research Methodology The research methodology, data collection procedures, and data analysis techniques utilized to evaluate the conceptual framework put forth in chapter 2 are covered by the authors in this chapter. Chapter 4: Analysis Results This chapter explained how the reliability of the data as well as the research findings were examined. The authors suggest the structural model's and measurement model's combined outcome based on this.
Chapter 5: Conclusion and implication This chapter discusses the study's findings as well as the theoretical and practical ramifications for the field of marketing literature. This chapter also demonstrates the restrictions and the course of further research.