VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: FACTORS OF LIVE STREAMERS INFLUENCING IMPULSE PURCHASE INTENTION IN LIVE-STREAMING COMMERCE Student’s name: Vũ Đặng Diễm Quỳnh Hanoi – Year 2024 1 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: FACTORS OF LIVE STREAMERS INFLUENCING IMPULSE PURCHASE INTENTION IN LIVE-STREAMING COMMERCE SUPERVISOR: PH. LE HUONG LINH STUDENT: VU DANG DIEM QUYNH STUDENT ID: 20070315 COHORT: INTERNATIONAL BUSINESS SUBJECT CODE: INS401101 MAJOR: MARKETING Hanoi - Year 2024 2 ACKNOWLEDGEMENT I want to extend my deepest gratitude to all those who have contributed to completing this report. First and foremost, I am profoundly grateful to my supervisor, Ph. Le Huong Linh, for her invaluable guidance, support, and encouragement throughout this research.
Her expertise and insights have been instrumental in shaping the direction and content of this study. I would also like to express my appreciation to the Ph. Ho Nguyen Nhu Y for her assistance and support. My heartfelt thanks go to the participants who took the time to respond to the survey.
Your willingness to share your experiences and insights made this research possible. Lastly, I would like to acknowledge the unwavering support of my family and friends. Their patience, understanding, and encouragement have been a constant source of strength throughout this journey. Thank you all for your contributions to this work.
Hanoi, June 12th 2024 Author Vu Dang Diem Quynh 3 DECLARATION OF AUTHORSHIP I hereby declare that this thesis was carried out by myself under the guidance and supervision of Le Huong Linh; and that the work contained and the results in it are true by the author and have not violated research ethics. The data and figures presented in this thesis are for analysis, comments, and evaluations from various resources by my work and have been duly acknowledged in the reference part. In addition, other comments, reviews, and data used by other authors, and organizations have been acknowledged, and explicitly cited. I will take full responsibility for any fraud detected in my thesis.
Hanoi, June 12th, 2024 Author. Vu Dang Diem Quynh 4 ABSTRACT The rise of live-streaming commerce is boosted by the dynamic interaction between streamers and consumers. This study probes into how streamers’ features, performances, together with trust (cognitive and affective), shape consumer impulsive purchase intentions. Using the Stimulus-Organism-Response (S-O-R) model, it investigates the connection between streamers’ characteristics, subsequent consumer psychological states and customer purchasing behavior.
Data was collected through a structured questionnaire from 309 respondents and were analyzed using SPSS and SmartPLS to validate measurement scales as well as test the proposed hypotheses. Results show that both cognitive and affective trust significantly influence impulsive buying intentions. Additionally, this research emphasizes that personal charm of streamers, their interaction skills as well as emotional contagion play important roles in establishing affective trust whereas expertise, logic plus morality are critical for developing cognitive trust. In sum, this paper adds to the existing body of knowledge related to consumer behavior in live-streaming e-commerce and provides useful recommendations for streamers or marketers who wish to improve their consumer confidence level hence encouraging unplanned purchases.
Keywords: Live-streaming commerce; Impulse Purchase Intention; Streamer; Cognitive Trust; Affective Trust; Streamer’s Characteristic; Streamer’s Performance 5 Table of Contents Chapter 1 : INTRODUCTION .2 Research Background: Live-streaming Commerce Environment and Consumer Behavior in Vietnam .3 Research Objective & Research Question. 17 Chapter 2 : LITERATURE REVIEW .1 Live streaming commerce .4 Aristotle's Rhetorical Appeals .5 Impulsive Purchase Intention .1 Construction of Theoretical Framework .2 Data Gathering Procedure. 41 Chapter 4 : FINDINGS AND RESULT .2 Assessment of Measurement Model .1 Multi collinearity test -VIF .4 Structural Model Evaluation. 64 Chapter 5 : CONCLUSION AND RECOMMENDATION .1 Findings and Discussion .3 Limitations and Future Research Direction.
72 7 Table of Figures Table Table 2-1: Construct of streamer’s performance - persuasion ability. 24 Table 3-1: Data Gathering Procedure. 38 Table 3-2: Variable Measurement. 41 Table 4-1: Demographic of Respondents.
47 Table 4-2: Validity and Reliability. 51 Table 4-3: KMO and Bartlett's Test of Independent Variables. 52 Table 4-4: Total Variance Explained of Independent Variables. 53 Table 4-5: Rotated Component Matrix of Independent Variables.
54 Table 4-6: KMO and Bartlett's Test of Mediate Variables. 56 Table 4-7: Total Variance Explained. 56 Table 4-8: Rotated Component Matrix of Mediate Variables. 57 Table 4-9: KMO and Bartlett's Test of Dependent Variable.
57 Table 4-10: Total Variance Explained of Dependent Variable. 58 Table 4-11: Component Matrix of Dependent Variable. 58 Table 4-12: Discriminant Validity (Heterotrait-Monotrait Ratio-HTMT) Test. 58 Table 4-13: Multi-collinearity test.
60 Table 4-16: Structural model path analysis. 63 Table 4-17: Mediation test of Personal Charm. 64 Figure Figure 1-1: Chart of the degree of influence each Content Format commands within APAC. 15 Figure 2-1: Research Model.
36 Figure 4-1: Frequency of watching live streaming commerce by week. 48 Figure 4-2: Average time for live streaming commerce per day. 48 8 Figure 4-3: Average number of interactions per live streaming commerce session. 49 Figure 4-4: Number of times purchased on live-streaming commerce.
50 Figure 4-5: Structural Model .1 Research Motivation With the rapid growth of the digital economy, e-commerce is experiencing its most prosperous era. In Vietnam, the Ministry of Industry and Trade notes a significant transformation from the days when the concept of "e-commerce" was unfamiliar to consumers. Vietnamese e-commerce has since witnessed remarkable growth in recent years, with annual increases ranging from 16% to 30% (Vietnam E-Business Index Report 2019, 2020, 2021, 2023). As a result, the market size is projected to reach 20.5 billion USD by 2023.
As the e-commerce landscape has evolved, so too has the prevalence and sophistication of live-stream commerce. According to the Ministry of Information and Communications, on average Vietnamese people spend 6 hours and 23 minutes using the Internet, of which 2 hours and 30 minutes are spent watching livestreams. Using Shopee as a focal point, one of Vietnam's foremost e-commerce platforms, 2022 data indicates a staggering 37 million hours collectively spent by Vietnamese users on Shopee Live. Besides, the revenue from livestream commerce in the Vietnamese market is also very surprising when witnessing huge numbers: According to Metric data, TikToker Vo Ha Linh with a record of 1 livestream session attracting more than 300,000 viewers, 11 million hearts with a record revenue of 1.5 million USD; The 17-hour livestream session of TikToker Quyen Daily and famous guests with a record revenue of 100 billion VND, or TikToker Hang Du Muc with 817 million VND in just 18 minutes.
In China, the cradle of the livestream commerce industry, Li Jiaqi is known as the "lipstick king" who set a record with a livestream session lasting more than 12 hours on a bachelor's day with 20 billion CNY. With the above revenue records, it can be seen that the streamer or host of the live stream commerce session is a key factor leading to purchase intention. In the live streaming environment, the streamer is a connection point between the product and the consumer (Ping Xu et al, 2022). Through two-way communication in real-time and the captivating presentations of live streamers, viewers gain virtual perceptions of commodities, including the nuanced sensations of smell, taste, and touch.
Streamers here act as opinion leaders, through the medium of e-commerce platforms, they use their 10 resources (speaking talent, popularity, appearance, etc.) to attract and persuade viewers. According to Use & Gratifications theory, individuals will choose certain means to satisfy their specific needs (Menon & Meghana, 2021). For shopping on Livestream, customers often have needs to be satisfied in terms of factors such as utilitarianism, entertainment, and social satisfaction (Childers et al, 2001). A successful live stream is when the streamer has the ability to speak and interact directly to guide and stimulate emotions, make the virtual experience the most realistic, and meet the demand of consumer hedonic and utilitarian, also enhancing the social satisfaction of consumers.
As mentioned, live-streaming commerce is truly a "money-making" industry, which is the reason why everyone is racing to participate in the "battle" of livestream sales. According to statistics from AccessTrade Vietnam (2020), there are, on average, 2.5 million livestream sales sessions each month, involving more than 50,000 sellers. This immense volume of live stream sales underscores the competitive nature of the industry, where countless sellers vie for consumer attention daily. Therefore, the problem here is that, among hundreds and thousands of live-stream sales sessions every day, the attraction of the product alone is not necessarily the deciding factor in purchasing decisions.
Instead, the streamer plays a pivotal role in capturing and retaining customer interest. The streamer's ability to engage, entertain, and build trust with viewers becomes the bright spot that stimulates customers' desire to buy. A charismatic and knowledgeable streamer can effectively highlight product features, answer questions in real time, and create a sense of urgency and excitement, which significantly influences the audience's purchasing behavior. Given the sheer number of live stream sessions happening simultaneously, it is the unique qualities of the streamer—such as their personality, presentation style, and interaction with the audience—that differentiate one session from another.
Streamers who can create a compelling and interactive shopping experience are more likely to convert viewers into buyers, demonstrating that the human element is a crucial factor in the success of live-streaming commerce. Therefore, understanding and optimizing the key attributes of effective streamers is essential for sellers aiming to stand out in this highly competitive environment and maximize their sales potential. 11 From the micro perspective, the purpose of this report is to identify the specific elements of the streamer that can instill confidence in customers, encouraging them to make purchases based solely on the streamer's recommendations without hesitation. Understanding these variables will help to better understand how streamers can effectively influence the behavior of consumers and achieve sales through live-streaming commerce.
This research might aid some small sellers in applying these factors to their own live-stream sales channels so that they can be more competitive against well-known brands with influential Key Opinion Leaders (KOLs) and KOCs (Key Opinion Consumers). By understanding and leveraging on the elements that create trust among customers and lead them to make confident purchase decisions, small sellers are able to improve their live-streaming strategies as well. This will level the playing field making it possible for them to draw and keep customers even though they may lack resources or brand recognition compared to big corporations. Furthermore, when considering this from a macro perspective, it shows that by exploring livestream commerce, market segmentation as well as marketing strategies that are essential for managers of retail organizations can occur (McGoldrick 2002).
The aim of this report is to analyze the derivative implications of these findings on live-streaming commerce as an industry entirely. The focus of this report is to understand how characteristics that are possessed by individual streamers make live streaming more effective as a sales channel and how they can be used in optimizing marketing strategies, enhancing customer engagement, and improving conversion rates across the industry. Moreover, it will also take an in- depth look at the effect live-streaming commerce has had on traditional retail models, consumer behavior trends, and the future outlook for e-commerce giving a complete picture of how global retail space is being reshaped by this dynamic interactive way of doing business.2 Research Background: Live-streaming Commerce Environment and Consumer Behavior in Vietnam The live-streaming commerce has been around in Vietnam since 2018. However, this did not take place until 2022, when there was a “breakthrough” in the year 2023.
The surge owes its occurrence to the changeover of social network users from long videos to short ones. This trend has been further accelerated by the rise of TikTok as a platform for many content creators representing different areas but mostly focused on product reviews.