Shopping Behavior on Instagram Shopping Behavior on Instagram 87 TON DUC THANG UNIVERSITY FALCUTY OF BUSINESS ADMINISTRATION FINAL REPORT OF BUSINESS RESEARCH METHODS TITLE FACTORS AFFECTING THE SHOPPING BEHAVIOR ON THE SOCIAL NETWORK OF INSTAGRAM OF STUDENTS Students’ list Students’ name Student ID Email Ho Tram Anh 720H1240 720h1240student tdtu edu vn Vu Nguyen Bao Tran 720K0622 720k0622student tdtu edu vn Nguyen Phan Thuy Trang 720K0908 720k0908student tdtu edu vn Class code 20K70601 Instr.
TON DUC THANG UNIVERSITY FALCUTY OF BUSINESS ADMINISTRATION FINAL REPORT OF BUSINESS RESEARCH METHODS TITLE: FACTORS AFFECTING THE SHOPPING BEHAVIOR ON THE SOCIAL NETWORK OF INSTAGRAM OF STUDENTS Students’ list: Students’ name Student ID Email Ho Tram Anh 720H1240 720h1240@student.tdtu.edu.vn Vu Nguyen Bao Tran 720K0622 720k0622@student.tdtu.edu.vn Nguyen Phan Thuy Trang 720K0908 720k0908@student.tdtu.edu.vn Class code: 20K70601 Instructor: Nguyen Hoang Dung HOCHIMINH CITY, JUNE 2022 ABSTRACT Shopping Behavior on Instagram In the past few years, online shopping in Vietnam has become more popular and received significant attention from people; especially after the epidemic outbreak, users changed their shopping habits from traditional to more standard online usage Therefore, analyzing and discovering the factors influencing consumer shopping behavior is always a top priority for businesses, particularly those operating on Instagram The study was conducted through a survey on google form with a size of 150 samples The surveyed subjects are consumers using Instagram The study was carried out in phases Preliminary qualitative research was carried out first through an in-depth interview technique with a sample size of 10 Formal quantitative research was carried out with a size of 241 responses from university students There are five factors that influence consumer shopping behavior on the Instagram social networking: feature usefulness, visual communication, interaction, customer trust, and societal influence The research topic has an overview of the factors affecting consumers' shopping behavior on the social networking platform Instagram, from which development and improvement strategies can be proposed to approach customers in the best way Shopping Behavior on Instagram TABLE OF CONTENTS Shopping Behavior on Instagram LIST OF TABLES Shopping Behavior on Instagram LIST OF FIGURES Shopping Behavior on Instagram Chapter 1: Introduction To The Research Problems 1.1 The Urgency Of The Topic Before the expanding trend of e-commerce and the increasing number of people online, it can be observed that online selling had almost become a popular method due to its broad coverage, cheap cost, and high efficiency According to the Vietnam E-commerce Index study (VETICA, 2018), the online retail model in Vietnam has experienced significant development in recent years and is one of the fastest-growing industries Selling in the 4.0 age is an unavoidable trend; most Vietnamese customers have gotten accustomed to internet purchasing owing to its ease and benefits Understanding the elements that influence consumers' online buying can assist firms operating on e-commerce platforms in retaining existing customers and attracting new ones As a result, research into the elements influencing consumer online buying decisions is required to assist e-commerce companies in meeting customer desires When it comes to online purchasing, however, many studies in Vietnam largely focus on analyzing shopping behavior via the Internet or e-commerce applications, but little has been done Using social media, research and evaluate purchasing intentions and behavior Shopping via social media is a relatively new sort of shopping in recent years, therefore this trend is particularly popular with "Gen Z" or "Generation Z" clients and has become a popular style Generation Y goes shopping They are young individuals born after 1996, shortly after our country's formal introduction of the Internet Then came Facebook, YouTube, and the iPhone, so their lives were linked to the Internet from the minute they were born That is why social media and social media have become such an important aspect of the lives of Generation Z It is not surprising that almost everyone in this generation has at least one social account Moreover, spend most of their time surfing their social media sites and interacting with brands there Brands have used social networks to increase brand awareness by taking advantage of this Shopping Behavior on Instagram Currently, several studies on online shopping models in Vietnam have been conducted, but only consider social networks as a tool to support shopping in addition to the main shopping channels, which are e-commerce websites, such as theses Su Thi Diem Phuc & Tran Thi Le Hang (2016), Ha Ngoc Thang & Nguyen Thanh Do (2016) (2016) Meanwhile, many foreign writers, such as Lee, Xiong, and Hu (2012), Lu and Su (2009), and Annie Jin (2012), have examined the issue of shopping behavior through social networks between 2010 and now (the time when social networks developed) (2012) As a result, in order to clarify the allegations regarding new buying patterns while also evaluating the elements influencing the "Gen Z" customer's purchase behavior on the social network Instagram, this topic was researched to find out "Factors affecting the shopping behavior on the social network of instagram of university students” 1.2 Overview Of The Research Status Of The Topic Study The influence of friends on buying decisions on social networks by Raghuram Iyengar, Sangman Han, Sunil Gupta (2009) The study used a selfdesignation model Research results show that there are three different groups of users with very different behavior ● Low-status groups (48% of users) are poorly connected, have limited interaction with other members and are not affected by social pressure ● Middle status groups (40% of users) are moderately connected, indicating that purchasing activity on the site is irrational and that the buying decision is strongly and positively influenced by friends ● High status groups (12% of users) are well connected and very active on the web, and show a significant negative impact of friends on purchasing decisions Shopping Behavior on Instagram According to Neilsen company's (2009) research on online buying behavior during holidays in the United States, the majority of people purchase online not for price but for convenience, namely: (1) Reduce travel expenses: 53 percent (2) Compare costs easily between online businesses and physical stores: 51 percent (3) I can go shopping anytime I want: 69.9 percent (4) No need to crowd the store on special occasions: 57% of the time Consumers dislike purchasing items online for the following reasons: (1) Costs of delivery and shipping: 35 percent (2) like to see and touch items in person: 51 percent (3) enjoys seeing and locating preferred products: forty-four percent The studies listed above are the key ones that we utilize to develop our research model, as well as some existing outcomes that we use to make our research more credible 1.3 Objectives Of The Study The study aims to solve the following objectives: Firstly, it provides an overview of shopping trends on the social network Instagram and, at the same time, contributes to answering the question of why recently, Instagram has influenced the shopping behavior of consumers Young people are surveying the role and extent of using Instagram as an online shopping channel by students in Vietnam Secondly, explore and identify the effects of some factors affecting shopping behavior on university students' Instagram to propose research models and hypotheses Thirdly, test the model and research hypotheses, thereby making some relevant recommendations for application providers on the ways to improve service quality and, at the Shopping Behavior on Instagram same time, help businesses business by using Instagram tools to build the most effective marketing strategies to improve serviceability, satisfy customer needs and achieve high business efficiency 1.4 Object And Scope Of The Study 1.4.1 Object Of The Study ● Research subject: Factors influencing social networking purchasing habits ● Research object: Students who have used the social networking site Instagram are presently living and studying at universities and colleges in Vietnam 1.4.2 Scope Of The Study Concerning the research topic: ● Concentrating on research based on the internet sales model between companies and customers, notably examining student behavior in Vietnam through the online purchasing decision-making process on social networks ● Discover the elements influencing online purchase behavior on social media of university students ● Contribute to the development of the Vietnamese internet business market Research fields: Economics, with a concentration in Commerce - Business Administration and Tourism - Marketing Research space: The research was conducted in Vietnam universities Shopping Behavior on Instagram 10 Concerning the study period: The research was conducted from March 2022 to June 2022 1.5 The Research Methods To design, calibrate, and assess the study idea scales and test the suggested hypothesis, the research team will use qualitative and quantitative research approaches Among the research approaches are: Methods of information processing: The qualitative method: is a way of exploring, describing, and explaining experiences, perceptions, motives, intentions, actions, and attitudes through surveys They can inspire us to develop theories and explanations In addition to data gathering procedures that are quite similar to those used in quantitative research, qualitative data collection methods can also be utilized by interview, google forms survey Quantitative method: Often associated with testing (theory) based on deductive methods In other words, quantitative research is research that uses different methods to quantify, measure and reflect and interpret the relationships between factors (variables) with each other Data collection methods can be weighing, measuring, using structured questionnaires to survey/interview, observing and recording data, and gathering quantitative data during the research process Methods of obtaining information: Studying documents: combining knowledge from instructors' guidance through lectures and related subjects, knowledge from books, specialized websites, etc Asking opinions by questionnaire: setting up a suitable and complete system of questions in order to Shopping Behavior on Instagram 74 information, getting hacked by hackers on social networks is unavoidable, thus companies need to have security technologies as well Customers' personal information should be kept private in order to promote trust and provide a safe purchasing system for both users and retailers Fifth, according to its nature - the social network Instagram - level of interaction is an essential form of communication in addition to visual and interface aspects The extent to which companies connect with consumers on social media, generally how quickly or slowly the pace of replying customer queries and inquiries, whether the attitude and manner of response is caring, professional or not, will represent the business's level of customer service Customers will have a more favorable opinion of your service/brand/product if they believe they have been listened and valued As a result, businesses should have a specialized team to serve consumers on social media in order to effectively care for them and retain them with the company Furthermore, the number of followers or likes and comments on the sales post demonstrate if the business is respectable, the product/service of the business is good, and so on As a result, businesses must provide visual content in order to attract and engage customers In summary, businesses should raise the amount of connection with consumers in the most effective way possible in order to develop a positive brand image and achieve high business efficiency References Ajzen, I., & Fishbein, M (1975) Belief, attitude, intention and behavior: An introduction to theory and research, Reading, MA: Addison-Wesley Ajzen, I & Fishbein, M (1980) Understanding Attitudes and Predicting Social Behavior, Prentice-Hall, Englewood Cliffs, NJ Shopping Behavior on Instagram 75 Ajzen, I (1991), The theory of planned behavior, Organizational Behavior and Human Decision Process 50 Azah H., Erlane K G and Jamaliah S (2009), Does Consumers’ Demographic Profile Influence Online Shopping?: An Examination Using Fishbein’s Theory, Canadian Social Science, 5(6), 19 - 31 Chen, Y.F & Lu, H.F (2010) A Study on Factors Influencing the Behavior of Online Group-Buying- Integrating Conformity Delafrooz, N., Paim, L H., & Khatibi (2011), A., A Research Modeling to Understand Online Shopping Intention, Australian Journal of Basic & Applied Sciences, 70 77 Kukar-Kinney M & Grewal, D (2006) Consumer willingness to claim a pricematching refund: A look into the process, J Bus Res., 59(1): 11-18 Kwek Choon Ling, 2010, The Effects of Shopping Orientations, Online Trust and Prior Online Purchase Experience toward Customers’ Online Purchase Intention, International Business Research, Vol 3, No Ma Mengli (2011), Study on Factors Affecting Consumers’ Attitude Towards Online Shopping and Online Shopping Intention in Bangkok, Thailand, Proceedings of the 7th International Conference on Innovation & Management 10 Park, J & Feinberg, R (2010) E-formity: consumer conformity behaviour in virtual communities, Journal of Research in Interactive Marketing 11 Tony Ahn, Seewon Ryu and Ingoo Han (2007), The impact of Web quality and playfulness on user acceptance of online retailing, Information and Management, 44 (3), 263 - 275 Shopping Behavior on Instagram 76 Appendix 1: Survey Questions Form PART I: PERSONAL INFORMATION Gender: o Female o Male School Year? o Freshman o Sophomore o Junior o Senior Do you have a part-time job ? o Yes o No What is your average spend for online shopping? o Under 200.000 VND o From 200.000 VND to 500.000 VND o From 500.000 to 1.000.000 VND o From 1.000.000 to 2.000.00 VND o Over 2.000.000 VND Do you usually shop on Instagram? o Yes o No Shopping Behavior on Instagram 77 PART II: SHOPPING ON INSTAGRAM What you usually buy on Instagram? o Clothes o Jewelry, accessories, bags o Shoes o Cosmetics o Others Your priority when choosing Instagram to go shopping o When I want to shop, I immediately think of Instagram o I only go shopping on Instagram when I have a recommendation from my family and friends o I only go shopping on Instagram when the product is not available in other shopping channels No Rate the degree of agreement on the following questions and statements: 1: Totally disagree 2: Disagree 3: Neutral 4: Agree 5: Totally agree Using Instagram's Comment and Direct features, I can easily ask questions about � � � � � Shopping Behavior on Instagram 78 products 10 11 Instagram's features make it easier for me to find product details Through the Instagram Follow feature, a company can gain my attention Through Instagram's feature, I can keep up with new trends in the world Visual communication 12 13 14 I find the Instagram interface easy to see the product I am more easily attracted to sales posts on Instagram than other online sales channels I tend to be attracted to businesses with an image investment on Instagram Level of interaction 15 I'm tempted to sales posts with lots of likes and comments � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16 I tend to shop at businesses with a high following on Instagram � � � � � 17 The speed at which businesses respond to messages on Instagram influences my purchasing decisions � � � � � Promotion and advertising Shopping Behavior on Instagram 79 18 19 20 21 I quickly reach businesses that run ads through Stories and Instagram Posts I find Instagram ads helpful and hasslefree I tend to buy if the business has free shipping I tend to buy if the business has a product discount program Customer confidence � � � � � � � � � � � � � � � � � � � � 22 I feel secure because my personal information will be secure when making purchases on Instagram � � � � � 23 I believe that when I shop on Instagram, the � product I receive will be guaranteed quality � � � � � � � � � � � � � � � � � � � � � � � � 24 I think that if there is a problem with the product, I will easily contact the seller for support Social influence 25 26 27 I trust to buy from businesses that are recommended by family and friends I trust to buy from businesses with good feedback from customers I tend to buy products used or promoted by celebrities Shopping Behavior on Instagram 80 Purchase behavior 28 I shop on the social network Instagram because it is easy for me to search and view products � � � � � 29 I shop on the social network Instagram because the seller is friendly when answering my questions � � � � � 30 I shop on the social network Instagram � because the business has a promotion or free shipping � � � � � � � � � � I shop on the social network Instagram because I can see other consumer reviews of the product � � � � 31 32 I shop on the social network Instagram because the business promises to return it if the product I receive is not of the same quality as I expected Appendix 2: Reliability Test For Variables ❖ Reliability test results using Cronbach's Alpha coefficient Shopping Behavior on Instagram 81 (1) Access Convenience Factor: “AC” (2) Visual Communication Factor: “VC (3) Engagement Rate Factor: “ER” Shopping Behavior on Instagram 82 (4) Promotion and Advertising Factor: “PA” (5) (5) (5) (5) (5) Customer Confidence Factor: “CC” (6) Social Influence Factor: “SI” (7) Dependent factors Instagram shopping behavior: “SB” Shopping Behavior on Instagram 83 Shopping Behavior on Instagram 84 Appendix 3: Factor Analysis Results ❖ EFA factor analysis results for independent factors Shopping Behavior on Instagram 85 ❖ EFA factor analysis results for dependent factors Appendix 4: Correlations Analysis Appendix 5: Multivariate Regression Analysis ... find out "Factors affecting the shopping behavior on the social network of instagram of university students? ?? 1.2 Overview Of The Research Status Of The Topic Study The influence of friends on buying... purchasing behavior on the social network Instagram of students 2.2.2 Theory of Planned Behavior - TPB (Ajzen) Theory of Planned Behavior (TPB) is considered an improvement of the theory of rational... birth of the theory of intended behavior (TPB) ➢ It can be said that the Theory of Reasoned Action (TRA) is one of the important theoretical foundations in studying the factors affecting the purchasing