The impact of affiliate marketing strategies on e commerce companies in viet nam 2022

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY LE YEN BINH THE IMPACT OF AFFILIATE MARKETING STRATEGIES ON E COMMERCE COMPANIES IN VIETNAM GRADUATION T.

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY LE YEN BINH THE IMPACT OF AFFILIATE MARKETING STRATEGIES ON E-COMMERCE COMPANIES IN VIETNAM GRADUATION THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PhD TRAN HAI VAN HO CHI MINH CITY – 2022 MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY LE YEN BINH THE IMPACT OF AFFILIATE MARKETING STRATEGIES ON E-COMMERCE COMPANIES IN VIETNAM GRADUATION THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PhD TRAN HAI VAN HO CHI MINH CITY – 2022 STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY -o0o Student’s Name: Le Yen Bình Student ID: 050606180034 Major: Business Administration Class: HQ6-GE08 Course: 2018-2022 TÓM TẮT Tiếp Thị Liên kết (Affiliate Marketing) trở thành chiến lược cân nhắc hầu hết công ty tham gia vào lĩnh vực thương mại điện tử Hiện nay, với phát triển công nghệ tạo điều kiện thuận lợi cho việc đo lường hiệu suất quảng cáo giải toán bên tham gia doanh nghiệp thương mại điện tử áp dụng chiến lược tiếp thị liên kết Nghiên cứu thực để nhằm phân tích tác động đặc điểm chiến lược tiếp thị liên kết đến ý định sử dụng chiến lược tiếp thị liên kết vào hoạt động marketing tổ chức thương mại điện tử Dữ liệu thu thập thông qua bảng câu hỏi trực tuyến sử dụng Google Khảo Sát kích thước mẫu 220 Để phân tích liệu, tác giả sử dụng phần mềm SPSS Dựa theo liệu phân tích yếu tố chiến lược tiếp thị liên kết gồm: Đo Lường Hiệu Suất, Xu Hướng Tiêu Dùng, Thúc Đẩy Mua Hàng, Tiết Kiệm Chi Phí, Hiệu Quả Quảng Cáo có tác động đáng kể đến ý định sử dụng chiến lược tiếp thị liên kết người bán hàng sàn thương mại điện tử Cuối cùng, nghiên cứu nêu ứng dụng, khuyến nghị mặt nghiên cứu chưa làm để hỗ trợ cho nghiên cứu tác giả sau Từ khóa: Tiếp Thị Liên Kết, Chiến lược Marketing, Thương Mại Điện Tử, Digital Marketing ABTRACT Affiliate Marketing has become a key strategy considered for most companies involved in the e-commerce sector in Vietnam Currently, with the development of technology, it has created favorable conditions for measuring advertising performance and settling payments between participants for e-commerce businesses when applying an affiliate marketing strategy This study was conducted to determine the impact of many characteristics of affiliate marketing strategy on the intention to apply affiliate marketing strategy in marketing activities of e-commerce organizations The data was collected through the online questionnaire Google Survey and the sample size was 220 To analyze the data, the author used SPSS software Based on the analyzed data, the characteristics of affiliate marketing include: Performance Measurement, Consumer Trends, Promote Purchase, Cost Saving, Advertising Effectiveness of aspects of the business The characteristics of affiliate marketing has a significant impact on the intention to use the affiliate marketing strategy on e-commerce platforms Finally, the study outlines applications, recommendations as well as areas of research that have not been done to support future research by the authors Key words: Affiliate Marketing, Marketin Strategies, E-commerce, Digital Marketing DECLARATION I declare that this thesis was written entirely by me and that it has not previously been presented, or in whole part, in any prior application for a degree Unless otherwise stated by reference or credit, the material given is collected by myself The research was carried out at the Banking University of Ho Chi Minh City, Vietnam, under the supervision of Ms Tran Hai Van Thesis’s Author Le Yen Binh ACKNOWLEDGEMENT First and foremost, I would like to express my heartfelt gratitude to my supervisor, Mrs Tran Hai Van, for providing me with important information as well as good recommendations for my bachelor's thesis, as well as for his patience, enthusiasm, and inspiration Furthermore, I am grateful to not just the professors and lecturers from Banking University of Ho Chi Minh City who supplied me with vital information and skills throughout my time there Last but not least, I also want to thank the examiners for devoting their significant time to reviewing my thesis TABLE OF CONTENTS CHAPTER INTRODUCTION .14 1.1 Background of the study 14 1.2 Research aims and research objective 15 1.2.1 The study’s aims 15 1.2.2 Research objective 16 1.3 Research Questions 16 1.4 Research Methodology 16 1.5 Structure of the thesis 16 CHAPTER LITTERATURE REVIEW 19 2.1 Concepts and Definitions 19 2.1.1 The growth of E-commerce in the world and Vietnam 19 2.1.2 Social media background 20 2.1.3 Online Advertising 23 2.1.4 Affiliate Marketing and Affiliate Marketing Strategies .26 2.1.4.1 Affiliate Marketing Concept 26 2.2 The market situations 30 2.2.1 The success of e-commerce companies utilizing affiliate marketing strategies .30 2.2.2 2.3 Theory of Critical Success Factors of Online Affiliate Model .31 Previous Empirical Studies About Affiliate Marketing Strategies .32 2.3.1 The research of Zurina Patrick and Ong Choon Hee (2019) 32 2.3.2 The research of Ehab Kamal Haikal and Tareq N Hashem (2020) .33 2.3.3 The research of Indrajit Ghosal et al (2019) 35 2.3.4 The research of MH Abdelhaly, NM Kamal and HA EI Samie (2020) 36 2.4 Hypotheses and Conceptual Model .38 2.4.1 Hypotheses 38 2.4.2 Research Model 44 CHAPTER 3: THE RESEARCH METHODOLOGY 46 3.1 Research process 46 3.2 Research methods 48 3.3 Sample description 50 3.4 Survey design 51 3.4.1 Scales used in survey 51 3.4.2 The questionnaire design 51 CHAPTER RESEARCH RESULT 56 4.1 Sample description 56 4.2 Testing the reliability of Cronbach’s alpha 58 4.2.1 Tracking Performance 58 4.2.2 Consumer Trend .59 4.2.3 Promote Purchase .60 4.2.4 Cost 61 4.2.5 Effectiveness 62 4.2.6 Intention 64 4.3 Exploratory Factor Analysis – EFA .64 4.3.1 Independent Variables 64 4.3.2 Dependent Variable 67 4.4 Pearson correlation analysis 70 4.5 Multivariate Regression Analysis 71 CHAPTER CONCLUSION AND IMPLICATION .77 5.1 Conclusion 77 5.2 Implication 81 5.2.1 Academic implications .81 5.2.2 Practical implications .81 BIBLIOGRAPHY .83 10 affiliate marketing within their organization It is recommended that they fully support the use of affiliate marketing in their organizations because this technique is thought to be capable of increasing sales while lowering costs on marketing techniques that are inappropriate for their organization or industry settings Organizations that use profitable marketing techniques can increase the number of new customers, which will indirectly increase sales Understanding the three most important factors in improving organizational competitiveness, such as relative advantage, compatibility, and observability, is critical - Marketers should pay attention to the digital technology applied in monitoring the performance of advertising activities when applying an affiliate marketing strategy to the organization because this will help the organization measure the level of advertising and the effectiveness of each affiliate link after each marketing campaign - Marketers should choose influencers with high social engagement (likes, followers, reviews, ) At the same time, it is extremely important to choose an influencer that is right for your product and customer base This determines the actual number of customers who are interested in your product and determines the profit after each affiliate program - When deciding on an affiliate marketing strategy, two primary considerations must be made: the connection between the website's vision and mission and the product/service being advertised, and the concept of the website and how closely it matches the concept of the product - Marketers could increase the attention towards the manual CPC more than automated CPC as it gives the marketing managers a chance to monitor, edit and update their marketing approach 82 BIBLIOGRAPHY Abdelhady, M H., Kamal, N M., & Samie, H A (2020) 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Male Female What is your age? 18 – 22 22 – 25 25 – 28 More than 28 What is your income per month? Less than million VND From to 10 million VND 89 From 10 to 15 million VND More than 15 million VND SECTION 2: AFFILIATE USAGE Have you ever purchased online on e-commerce platforms? Yes Not Yet How often you shopping online on e-commerce platforms? Several time a day Once a day to times a week Less than to times a week Do you have any online store on e-commerce platforms? Yes No Have you ever known about affiliate marketing? Yes Not Yet Have you ever used affiliate marketing strategies on your shop in ecommerce platform? Yes Not Yet SECTION 3: AFFILIATE MARKETING STRATEGIES AND ECOMMERCE COMPANIES I Tracking performance Strongly Disagree Neutral disagree Agree Strongly agree Easily measure clicks on 90 each AFF Link Easily measure the average time customers view products after clicking on AFF Link Easily measure conversion rates for each product via AFF Link Easily measure cost per conversion, cost per click Easily measure the cost-torevenue of each ad campaign II Consumer Trend Strongly Disagree Neutral disagree Agree Strongly agree The number of searches for products of each specific category on multichannel platforms such as Facebook, Youtube, TikTok, Google, 91 Followers of KOLs the organization can hire Value of posts (text article, video quality, content of article or video) with attached AFF Link of product Likes and shares of posts with AFF Link attached The form of AFF Link to attract online customers III Promote Purchase Strongly Disagree Neutral disagree Agree Strongly agree Buyers can interact directly with KOLs during the livestream to better understand the product Buyers tend to make purchases that are similar to the KOLs they care about Buyers receive more attractive offers of the program on the ecommerce platform when making purchases through 92 the affiliate link Affiliate marketing links lead buyers directly to the checkout (for product links) or to the Shop (for Shop links) IV Cost Saving Strongly Disagree Neutral disagree Agree Strongly agree E-commerce businesses using affiliate marketing strategies just pay-perclick E-commerce business using affiliate marketing strategy pays commission only for successful orders E-commerce businesses using affiliate marketing strategies control the cost of total revenue from affiliate marketing E-commerce businesses that use affiliate marketing strategies save money by accurately identifying 93 target customer files V Effectiveness Strongly Disagree Neutral disagree Agree Strongly agree Increase the effectiveness of the organization's ability to target customers Easily track customer buying behavior and effectiveness of advertising activities More flexibility in case of changes to the promotion campaign or program of the ecommerce platform Reaching a large number of new customers making first-time purchases on ecommerce platforms The opportunity to promote the 94 organization's revenue Increase brand awareness of the organization among online customers Opportunity to connect with new sellers on their e-commerce platform VI Intention Strongly Disagree Neutral disagree Agree Strongly agree I think using the affiliate marketing strategy of the e-commerce company is necessary I think using the affiliate marketing strategy of the e-commerce company save advertising costs I think using the affiliate marketing strategy of the e-commerce company help the organization attract a large number of potential customers I think using the affiliate marketing strategy of the e-commerce company is 95 easy to measure ad performance I using the affiliate marketing strategy of the e-commerce company help the organization catch the buying trends of consumers 96 ... it the second-largest e- commerce market in the area With increased internet access, smartphone use, and more trust in online buying, Vietnam's e- commerce business is predicted to rise in the near... determines the impact of affiliate marketing strategies on e- commerce companies in Vietnam synthesizing the results of previous relevant studies both globally and in Vietnam, then using survey... The study's goal is to examine the factor impact on intention using affiliate marketing of e- commerce companies in Vietnam, as well as to assess the level of influence of each aspect on the intention