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Tiêu đề The Impact Of Affiliate Marketing Strategies On E-Commerce Companies In Vietnam
Tác giả Le Yen Binh
Người hướng dẫn PhD. Tran Hai Van
Trường học Banking University of Ho Chi Minh City
Chuyên ngành Business Administration
Thể loại Graduation Thesis
Năm xuất bản 2022
Thành phố Ho Chi Minh City
Định dạng
Số trang 93
Dung lượng 263,26 KB

Cấu trúc

  • CHAPTER 1. INTRODUCTION (13)
    • 1.1. Background of the study 14 1.2. Research aims and research objective (13)
      • 1.2.1. The study’s aims (14)
      • 1.2.2. Research objective (14)
    • 1.3. Research Questions (15)
    • 1.4. Research Methodology (15)
    • 1.5. Structure of the thesis (15)
  • CHAPTER 2. LITTERATURE REVIEW (17)
    • 2.1. Concepts and Definitions (17)
      • 2.1.1. The growth of E-commerce in the world and Vietnam (17)
      • 2.1.2. Social media background (18)
      • 2.1.3. Online Advertising (21)
      • 2.1.4. Affiliate Marketing and Affiliate MarketingStrategies (24)
        • 2.1.4.1. Affiliate Marketing Concept (24)
    • 2.2. The market situations (27)
      • 2.2.1. The success of e-commerce companies utilizing affiliate marketing (27)
      • 2.2.2. Theory of Critical Success Factors of Online Affiliate Model (28)
    • 2.3. Previous Empirical Studies About Affiliate Marketing Strategies (29)
      • 2.3.1. The research of Zurina Patrick and Ong Choon Hee (2019) (30)
      • 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) (31)
    • 2.4. Hypotheses and Conceptual Model (36)
      • 2.4.1. Hypotheses (36)
      • 2.4.2. Research Model (42)
  • CHAPTER 3: THE RESEARCH METHODOLOGY (43)
    • 3.1. Research process (44)
    • 3.2. Research methods (45)
    • 3.3. Sample description (47)
    • 3.4. Survey design (48)
      • 3.4.1. Scales used in survey (48)
      • 3.4.2. The questionnaire design (48)
  • CHAPTER 4. RESEARCH RESULT (53)
    • 4.1. Sample description (53)
    • 4.2. Testing the reliability of Cronbach’s alpha (55)
      • 4.2.1. Tracking Performance (55)
      • 4.2.2. Consumer Trend (56)
      • 4.2.3. Promote Purchase (57)
      • 4.2.4. Cost (58)
      • 4.2.5. Effectiveness (59)
      • 4.2.6. Intention (61)
    • 4.3. Exploratory Factor Analysis – EFA (61)
      • 4.3.1. Independent Variables (61)
      • 4.3.2. Dependent Variable (64)
    • 4.4. Pearson correlation analysis (66)
    • 4.5. Multivariate Regression Analysis (68)
  • CHAPTER 5. CONCLUSION AND IMPLICATION (74)
    • 5.1. Conclusion (74)
    • 5.2. Implication (77)
      • 5.2.1. Academic implications (77)
      • 5.2.2. Practical implications (77)

Nội dung

INTRODUCTION

Background of the study 14 1.2 Research aims and research objective

Affiliate marketing has evolved into a critical strategic consideration for all e- commerce businesses Previously, it was simply understood as a link attached to a social media post, with the goal of making it simple for users to purchase a product and increase business revenue However, as social networks have grown in popularity over the last decade, marketers have developed more nuanced perspectives on this type of affiliate marketing.

Social media has become an integral part of most Vietnamese people's daily lives in recent years, owing to the country's increasing smartphone and internet penetration rates Because of its highly connected and young, digitally savvy population, the country has among the highest number of social media users in the world According to a report by Statista, Vietnam has a population of about 100 million people, with 72.10 million social network members in January 2022 In 2021, roughly 95% of Vietnamese internet users will be using Facebook, making it the country's most popular social media network (KEMP, 2022) At the same time, Zalo, a local messaging app, has constantly surpassed major global giants such as YouTube and Instagram as the second most popular social network Social media networks' popularity fluctuates from generation to generation While millennials and Gen X favor Facebook and Zalo, Gen Z uses foreign networks like Facebook, YouTube, and Instagram at a far higher rate Furthermore, TikTok is gaining traction among the country's younger social media users, with over half of this age group's internet users reporting that they use the network.

Apart from their original purpose of connecting people, social networks are today viewed by brands and consumers around the world as sources of information, brand communication outlets, advertising platforms, and even marketplaces Many businesses in Vietnam rely on social media-based methods such as influencer marketing and social commerce to succeed Influencer marketing enlists the help of well-connected individuals, often known as influencers, to influence consumers' quantifiable behaviors and, ultimately, purchases of promoted products on social media platforms In 2020, over 84 percent of Vietnamese people said they followed at least one influencer on social media, and 77 percent said they had purchased anything because of an influencer's sponsorship (Nguyen, Social media in Vietnam - statistics & facts, 2021) Social commerce, on the other hand, transforms these sites into real-time selling and buying platforms that allow for direct contact between users In Vietnam, this type of commerce has seen an exponential increase in the number of orders placed in 2020, demonstrating the promise of social media as a future one-stop-shop for Vietnamese As a result, affiliate marketing is becoming one of the most important tactics for prominent e-commerce companies in Vietnam, such as Lazada, Tiki, Shopee, Shopee,

Realizing that there have not been many specific studies on this case, the author chose this study to analyze and discuss the impact of affiliate marketing strategies on e-commerce company in Vietnam.

1.2 Research aims and research objective

- To determine the impact of affiliate marketing strategies on e-commerce companies in Vietnam

- To identify the elements of an affiliate marketing strategy that influence the growth of e-commerce

- To analyze insights of customer groups who decide to buy through affiliate marketing links

- To provide solutions for e-commerce companies to be more effective in using affiliate marketing as a mainstream strategy

The object of the research is "The impact of affiliate marketing strategies on e- commerce companies in Vietnam”.

- In term of space: sellers and buyer on e-commerce platforms in Vietnam

- In term of time: limited from March 2019 until May 2022.

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 to use affiliate marketing strategies On that premise, the study suggests several approaches to innovate and increase quality in order to develop an affiliate marketing plan.

Research Questions

- Which factors of affiliate marketing strategies affect the e-commerce companies applying these strategies?

- Which factors of affiliate marketing strategies have the most impact on the e- commerce companies applying these strategies?

Research Methodology

The thesis use both qualitative approach and quantitative approach:

- In terms of qualitative approach: the author 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 tools such as questionnaires sent directly by email, questionnaire survey, google form,

- In terms of quantitative approach: The techniques used with the support ofSPSS software including descriptive statistics, Cronbach's alpha coefficient,Exploratory Factor Analysis (EFA), correlation analysis.

Structure of the thesis

The author will provide brief evidence for the topic's importance in this section In addition, the author offers background information regarding the research, such as the research object, research scope, research questions, and research techniques. Chapter 2: Literature review

The author's attention in this chapter 2 will be on learning about the theoretical overview and relevant past works This phase is critical in assisting the author in better understanding the concept and study topic, which aids in the provision of theoretical frameworks or theoretical underpinnings The study provides hypotheses on social media influencers, influencer marketing, buy intent, and a number of previous studies on the subject.

After establishing a theoretical framework, the author proceeds to develop a research model and research methodology The author also includes information about the steps of the research procedure as well as detailed questionnaires for conducting the survey in this section.

Chapter 4 specifically for data processing procedures using SPSS software and other testing methods This section will also introduce the contents of descriptive statistic, test the reliability of the scale using Cronbach's Alpha coefficient, Exploratory Factor Analysis (EFA), regression analysis, test the research model's Hypothesis, and determine the difference throughout customer purchase intention

Based on the preceding analysis results, the author will provide recommendations in this last chapter to improve and boost consumer's purchase intention towards cosmetic products Furthermore, the author highlights the research's shortcomings and provides a future vision, pointing out the benefits that the research makes to society.

LITTERATURE REVIEW

Concepts and Definitions

2.1.1 The growth of E-commerce in the world and Vietnam

The demand for a more convenient living has increased in recent years as a result of the advancement of contemporary technologies, the most important of which is shopping This has fueled the rapid growth of e-commerce enterprises all over the world Opportunities continue to emerge in the new eCommerce landscape; however, competition has driven the return on all aspects of this landscape to plummet, such as the conversion rate of digital ads and the longer break-even period for new merchants to achieve Meanwhile, customer demands and expectations are increasing, such as increased product availability and customer service, a more transparent ordering procedure and handling, greater brand integrity, and so on With more brands investing in video and live shopping, social commerce is now at the center of online shopping for customers from all over the world to obtain highly visualized informational export and quick-access to the available items and services supplied Direct-to-consumer (DTC) services are also looking towards online communities to improve close relationships with customers in order to better engage them, raise retention rates, and prevent ballooning ad campaign costs (Verdon, 2021).

According to a prediction of Statista, Southeast Asia's internet economy is expected to triple in value over the next few years (Department, 2021), with e-commerce accounting for the majority of that value Vietnam's e-commerce market value reached over 12 billion US dollars in 2020 (Nguyen, E-commerce market value inVietnam from 2014 to 2020, 2022), ranking only behind Indonesia, Thailand, andSingapore as one of the region's fastest-growing digital economies The current digital population in Vietnam, as well as expanding internet penetration, provide ideal conditions for e-commerce enterprises to thrive As a result, the country's e- commerce proportion of total retail sales is rapidly expanding, and online channels have exceeded traditional retail channels in terms of growth within the FMCG industry.

Vietnam's e-commerce is catching up to its ASEAN rivals, with the country ranked 86th in the United Nations E-Government Survey for 2020 The country rose two positions among 193 countries, and it is working hard to improve its e-governance, with the goal of being among the top four Southeast Asian countries by 2025 Its 40 million online shoppers spend an average of US$210 per year, making 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 future (Bhatla, 2020) In an article by Vietnamplus, by 2025, the Vietnamese market is predicted to treble from 13 billion USD last year to 39 billion USD In addition to that, the pandemic has caused significant changes in customer behavior and purchasing habits, with 58 percent of the Vietnamese saying they will continue to shop on online marketplaces because it is more convenient This tendency is expected to persist in the future, as 53% of respondents said that internet shopping has become a part of their daily routine (VNA, 2022) According to iPrice Insight about the Map of Ecommerce in Vietnam, Shopee is perhaps the most popular e-commerce platform in Vietnam, with nearly 70 million monthly visits, followed by thegioididong with over 30 million visits and Tiki with approximately

The rapid development of social media platforms has forever changed how different buyers engage with one another and with businesses As a result, organizations' approaches to attracting and retaining new clients have altered (Leung et al., 2015) Previously, advertisers would create captivating advertising messages and purchase media space in the hopes that buyers/ prospects would become aware of, develop an affinity for, and purchase the brand By changing the ways in which purchasers select, exchange, and evaluate information, social media has unavoidably altered marketing communications Traditional media, such as television and newspapers, have lost continuous viewing and reading as a result of the rise of social media, and their effectiveness as marketing platforms may have dwindled Because of the speed of online communication and the variety of information sources available, traditional methods of promotion are becoming less important Advertisers also rapidly recognized the impact of the social network on the instinct that includes transformed territories, shopping experiences, and information search in general (Chandra, 2014).

In 2022, social media has roughly 58.4 percent of the world's total population, with more than 4.62 billion users A typical person has accounts on over 17 different social media platforms and spends an average of 2 hours and 27 minutes every day on social media (Chaffey D , 2022) Cell phones are used by 91 percent of social media users, making it critical to deliver content that is compatible with mobile devices Instagram stories are the new social media darling Instagram stories grew from 150 million to 500 million daily dynamic watchers in just two years For a long time, Facebook and Instagram have dominated social media as the most popular sites In any case, a few additional strong social platforms have emerged in recent years and have quickly risen to prominence Instagram outperforms every other platform in terms of user engagement Visual material is 40 times more likely to be shared on social media networks such as Facebook, Twitter, and Instagram. Facebook posts with less than 250 characters receive 60% more attention.

In one of their research on the youth's adoption of social media, Dunlop et al (2016) suggested that social media has been adopted as a daily activity rather than an hourly activity Many other research have previously emphasized the necessity of studying consumer behavior The researcher additionally emphasizes the association between youth's social behavior and their behavioral objectives in commercials (Dunlop,

2016) The study then goes on to discuss health issues and how youth are exposed to the promotion and marketing of various products, both good and bad, that have an impact on consumers' health As a result, there is a strong need to create engaging content for social media aimed at improving adolescents and young adults's health It has been contested that the youth do not see the connection between their behavioral objectives and the informative substance of online marketing, which leads to skepticism of commercials As a result, a relationship between the peripheral route and the major theme of online advertisements must be developed (Ghai, 2018). Social media advertising is significant both in terms of generating income for businesses and in terms of lowering the cost of traditional marketing operations It is possible to forecast the future and actually prevent any type of problem, as well as be creative and track the competition's performance, thanks to social media.

Social media are platforms on which people develop networks and share information and/or sentiments in a marketing setting (M.Kaplan & MichaelHaenlein, 2010).Social media have caused three major transformations in the marketplace due to their unique character as "dynamic, networked, egalitarian, and interactive organisms."(KayPeters, YuboChen, M.Kaplan, BjửrnOgnibeni, & KoenPauwels, 2013) Social media marketing is the most recent trend to emerge in recent years, when it began to dominate internet communication It's a type of online marketing that makes use of a variety of social media channels to reach marketing and advertising goals For the purposes of advertising, social media marketing entails the sharing of content, videos, and photographs Businesses utilize a variety of marketing tactics to target the correct audience, engage in consumer online brand activities, and spread electronic word of mouth (Singh & Singh, 2018).

In terms of efficiency and targeting, social media platforms are advantageous In terms of the first argument, the cost of launching a social media marketing campaign is typically less expensive than traditional approaches such as face-to- face interactions with salespeople In fact, businesses may run successful social media marketing campaigns on a shoestring budget because most social media tools for business are free, as opposed to more expensive traditional methods Furthermore, it is feasible to increase market share by addressing clients who were previously unavailable due to time and location constraints (Valerio, William, & Noémier, 2019).

In the e-commerce market, e-commerce enterprises must always spend in marketing efforts and adapt to the changes of the digital world in order to acquire a certain place in the market For example, Lazada has the largest market share in four of Southeast Asia's six markets, ranking second in Vietnam and fifth in Singapore. Lazada virtually always features in large-scale sales efforts across all media, including television, online newspapers, newspapers, Google search terms, website banner ads, social media, and so on The company also improves the website interface on a regular basis to make it easier for clients to find the products they want and to reduce the number of steps required to place a purchase Every customer click is valuable to Lazada, and they use it to efficiently target and retarget customers who have been and are interested in products in order to increase consumer demand (Hanh, 2022).

Digital marketing is primarily concerned with managing a firm's online presence via company websites, social media pages, and mobile applications Search engine marketing, social media marketing, online advertising, email marketing, and collaborations with other websites are all examples of how these might be combined

Figure 2-Six categories of e-communication tools or media channels Source: Digital marketing: strategy, implementation & practice (Chaffey D a.-C., 2019) with online communication approaches These approaches can help you reach your goal of attracting new clients and providing new services to them (Chaffey D a.-C.,

2019) The term "online marketing" refers to a set of tools and methods for promoting items and services over the internet When compared to traditional marketing, online advertising offers advantages such as increased growth potential, lower costs, elegant messaging, greater campaign control, better customer service, and a competitive advantage (Priya M, 2018) Customer data is used in effective online advertising programs, and CRM systems are used to manage the customer relationship Online marketing serves as a link between potential customers and elevates business development above and beyond traditional marketing The technical tools of the internet, as well as the creativity of the advertiser, make up online advertising It also encompasses design, development, sales, and advertising, with a concentration on E-commerce, lead-based websites, affiliate marketing, and local search as major business models (Boricha, 2020)

Online advertising is a type of mass communication that is based on traditional advertising but develops its own communication methods in response to new technological and medium-based constraints Online advertising, in its broadest sense, refers to the delivery of adverts to Internet/online users via Web sites, e-mail,ad-supported software, and Internet-enabled smart phones Contextual ads on search engine result pages, banner ads, Rich Media Adverts, Social Network Ads, interstitial ads, online classified advertising, advertising networks, and email marketing, including email spam, are all examples of online advertising (Deshwal, 2016)

The internet, hyper-connectivity, and Web 2.0 have all resulted in a shift in perspective Rather than being the recipient of a communication, an exchange occurs inside a brand's network of potential customers This link has a substantial impact on people's observing and purchasing decisions (Laureti, 2018) In the way we communicate, think, and exchange encounters as a human civilization, online social platforms are a fresh and transformative miracle The omnipresence and variety of technological platforms that enable these systems, as well as the development in communications and the technification of society, have all contributed to the massive penetration and online time dedicated to the use of systems that has been normalized. For example, Facebook has 2.93 billion active users around the world, in excess of

90 percent of them associated through portable platforms.

The market situations

2.2.1 The success of e-commerce companies utilizing affiliate marketing strategies

Lazada Malaysia, an E-commerce platform that provides a fast, secure, and convenient online shopping experience with a diverse product offering range, has been attempting to connect with Influencers and KOLs (Key Opinion Leaders) in order to promote their brand and attribute the effectiveness of these Influencers and KOLs For Lazada Malaysia, affiliate marketing was an untapped source of media.

As a result, Involve organized and planned an influencer and key opinion leader activation initiative for Lazada Malaysia Lazada Malaysia had only 9% of Partners on Involve’s platform, which were classified as Influencer and KOL Partners Their primary goals are to boost Lazada's e-commerce sales and brand awareness amongSoutheast Asian influencers and key opinion leaders Furthermore, the firm wants to increase partner participation on a marketplace platform This campaign ran fromJuly 2020 to July 2021 It is currently evolving and optimizing to date Involve only charges clients based on performance so there was no specific budget for this campaign Partner participation climbed to 511 percent after a year of onboarding, education, and account optimizations The number of sales conversions each Partner was able to achieve nearly doubled Through product reviews and recommendations, influencers and key opinion leaders were able to uncover and promote niche brands and goods to their following, resulting in a 2.5x boost in conversion rates Within a year, Partners were able to regularly deliver the strongest promotions and sales thanks to planned marketing efforts during double-digit sales, local celebrations, and universal shopping occasions Influencers and KOLs delivered 45 percent of click traffic in July 2021, compared to 19 percent in July

2020 Influencer and KOL Partner sales account for 81 percent of Lazada Malaysia's gross sales (Asia, 2021).

2.2.2 Theory of Critical Success Factors of Online Affiliate Model

The study was carried out by Julie Wolfe et al in 2009 (Bandyopadhyay, Wolfe, &Kini, 2009) It is one of the earliest studies that lays out the factors central to the development of an affiliate marketing model From there, the article shows how to manage an affiliate marketing program network and how to measure the effectiveness of each affiliate marketing campaign The Internet is a living, breathing medium As a result, online affiliate models must be adaptable in order to keep up with current industry developments In the near future, what works today for online affiliate programs may become obsolete It is crucial to select an affiliate

Figure 4-Theory of Critical Success Factors of Online Affiliate Model that is a good "match" for your business, maximizes earnings, is simple to use and track referrals, and monitors and updates the factors on a regular basis It is obvious that affiliate models are a crucial component of your website that will aid in its development Therefore, in this research, the author showed 7 key success factors for online affiliate model:

The success characteristics of an affiliate marketing strategy have been the same for corporate organizations using an affiliate marketing model for decades Because digital marketing activities are becoming increasingly interesting in the digital era, it is critical to assess the effectiveness of an affiliate marketing plan for a firm This claim will be investigated in this thesis by using this theory as a theoretical foundation and putting a piece of the theoretical model to the test in the Vietnam market.

Previous Empirical Studies About Affiliate Marketing Strategies

Affiliate marketing is a new e-commerce marketing approach that appears to have more long-term promise than prior online marketing initiatives It's a kind of open market where creative internet marketers can make money by operating as free- lance sales people for tens of thousands of online firms Advertisers profit from a predictable marketing expense expressed as a proportion of sales.

The studies listed below were conducted in other countries to confirm the relevance of implementing an affiliate marketing strategy in the digital era and e-commerce integration.

2.3.1 The research of Zurina Patrick and Ong Choon Hee (2019)

In “Factors Influencing the Intention to Use Affiliate Marketing: A Conceptual Analysis” was implemented by Zurina et al in 2019, the study only looked at three dominant factors that influence behavioral intentions to use specific technology (i.e. affiliate marketing): relative advantage, compatibility, and observability Relative advantage is defined as the level at which current practice is perceived to be less advantageous than innovation, and it is associated with a variety of facilities, satisfaction, social, and economic diversity Compatibility is the degree to which an innovation is perceived to be consistent with previous ideas, socio-cultural values, or perceived to be necessary On the other hand, observability is the stage at which other users or parties other than the business owner can see the benefits of using the technology (Patrick, 2019).

In conclusion, Affiliate marketing is an important online marketing tool that is thought to be more cost-effective, increase an organization's product visibility,and increase ROI As a result, all researchers, organizations, and industries need a better understanding of affiliate marketing concepts and the factors that influence the intention to use affiliate marketing :

Figure 5-Proposed Theory framework Source: Factors Influencing the Intention to Use Affiliate Marketing: A Conceptual

Analysis (Zurina et al, 2019) Proposed Theoretical Framework

2.3.2 The research of Ehab Kamal Haikal and Tareq N Hashem (2020)

In “The Role of Supply Chain Strategy and Affiliate Marketing in Increasing the Demand for ECommerce – Social Media POV” by (Haikal, Freihat, Diana, Joudeh, & Hashem, 2020) examinined the role of affiliate marketing on social media and how it can increase the demand on ecommerce from the social media point of view The study looked at the most effective affiliate marketing and supply chain tactics that can boost e-commerce demand and are accessible through social media networks Using a quantitative technique, the researchers distributed 95 questionnaires to marketing managers at cosmetics companies in Jordan's capital, Amman, during the fiscal year (2018-2019) The study's findings revealed a high level of knowledge and reliance on social media marketing as a form of endorsement by cosmetics brands Furthermore, it found that among the affiliate marketing options, CPC/PPC was the most influential and usable strategy.

H1: Social media-based CPS positively influences the demand of e-commerce H2: Social media-based CPA positively influences the demand of e-commerce

H3: Social media-based CPM positively influences the demand of e-commerce H4: Social media-based CPC positively influences the demand of e-commerce

Figure 6- The research of Ehab Kamal Haikal and Tareq N Hashem (2020)

Founded on the findings of the research, it can be concluded that affiliate marketing is based on the concept of simplicity and avoidance of complexity. However, not everything can be dealt with in a straightforward manner The fact that affiliate marketing has an impact on ecommerce demand can alter the supply and demand chain, since it may be linked in some manner to the nature of the service-product being advertised and how it aligns with the website's vision and goal The author showed that:

❖ Increase the focus on manual CPC over automatic CPC since it allows marketing managers to monitor, alter, and change their marketing strategy.

❖ 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 should focus on the transparency of the endorsement they are following in order to attain a high degree of social media affiliate marketing.

2.3.3 The research of Indrajit Ghosal et al (2019)

The research “Impact of Affiliate marketing on e-buying behavior of Millennial – A TAM based Approach with Text Analysis” was carried out by Indrajit Ghosal at al in 2019 The author realized that, as a result of the rapid adoption of digital technology, businesses are now directly addressing worldwide customers and leveraging the advantages of the internet channel to obtain a competitive edge In this scenario, affiliate marketing has emerged as one of the most important ecommerce tactics for increasing sales through the use of incentives Affiliate marketing has aided in the adoption of internet buying technology by millennials.

The purpose of this paper is to assess the impact of affiliate marketing on millennial attitudes toward online purchasing The underlying findings have investigated qualitatively the benefits of affiliate marketing and their relationship with perceived ease of use and usefulness This has bolstered people's attitudes and behaviors toward online shopping Through qualitative inquiry and text analysis of reputable sources, a conception has been validated The findings will assist stakeholders, ecommerce businesses, and entrepreneurs in enhancing their present online shopping portal operations by implementing an Affiliate Marketing strategy.

Conceptual diagram showing the relation of affiliate marketing and its impact on online buying behavior:

The goal of the study is to help e-marketers better understand the aspects that influence millennial attitudes while developing affiliate marketing strategies. Marketers cannot deny that the world is dynamically transitioning from a concrete market to a virtual one The research's inferred findings will aid in the discovery of a common link between affiliate marketing strategy and online shopper's buying behavior.

The advantages of an affiliate marketing plan, such as rewards, trust, increased traffic, and value creation, will boost the millennial's affinity for purchasing habit.

In order to strengthen the existing business operations, the associated findings are required At the moment, the world is experiencing financial contagion, as well as a drop in consumer confidence The conclusions of this study will aid in reengineering the approach in light of current technologies in a VUCA world

(Volatility, Uncertainty, Complexity, and Ambiguity).

2.3.4 The research of MH Abdelhaly, NM Kamal and HA EI Samie (2020)

In “The Impact of Affiliate Marketing on Customer Loyalty” was implemented by (Abdelhady, Kamal, & Samie, 2020) Customer loyalty is critical to the tourism industry's profitability and long-term viability In addition, in recent years, the concept of affiliate marketing has gained popularity among online buyers. However, there have been a few studies that look into customer loyalty to affiliate marketing websites As a result, this study looks into customer loyalty to travel affiliate marketing websites (booking.com) As a result, this study looks into customer loyalty to travel affiliate marketing websites (booking.com) This study uses six essential and supplementary services (affiliate website promotion, price comparison service, WOM in social media, quality online design, privacy, and trust) to influence customer loyalty perspectives The goal of this study is to determine which elements in travel affiliate websites influence consumer loyalty in the tourist business The findings point to six factors in both core and supplementary services that support the customer's loyalty perspective The research discovered that customers who used booking.com have greater thoughts on the 'privacy and security' element after reviewing the results of the customers who used booking.com Customer happiness has a considerable positive relationship with customer perceived value, which may influence customer loyalty.

H1: There is a significant relationship between price comparing services on perceived value in the travel affiliate websites.

H2: There is a significant relationship between word of mouth through online social communities on perceived value in the travel affiliate websites.

H3: There is a significant relationship between travel affiliate websites promotion and perceived value.

H4: There is a significant relationship between the quality of web design and customer perceived value in the travel affiliate websites.

H5: There is a significant relationship between the privacy and security on perceived value in the travel affiliate websites

H6: There is a significant relationship between trust on perceived value in the travel affiliate websites.

H7: There is a significant relationship between Customer Satisfaction and Customer loyalty in the travel affiliate websites.

The findings of the study show that customer happiness and confidence in travel affiliate websites have a direct impact on client loyalty These findings have a number of ramifications for businesses looking to boost client loyalty Content and site design quality have a direct and indirect impact on satisfaction and trust The effects of perceived value on customer satisfaction and satisfaction on customer loyalty when customers acquire services on travel affiliate websites have been investigated and verified through empirical research.

Hypotheses and Conceptual Model

The key to successful affiliate marketing is to develop a win-win relationship between the advertiser and the affiliate In the future, affiliate marketing is likely to become the primary mainstream marketing strategy for e-commerce businesses. (Duffy D L., 2005) In an affiliate marketing relationship, the key to a successful affiliate-advertiser partnership is a positive outcome for both parties By definition, affiliate marketing is a win-win situation for both parties involved Advertisers recognize the value of a purely commissioned sales force and a predictable marketing cost Affiliates can generate a revenue stream without investing in inventory or infrastructure All that is required is the ability to create websites with sufficient appeal to attract a sufficient number of customers interested in the products and services sold by the affiliate's advertisers (Duffy D , 2005)

(H1):Tracking Performance: Tracking Performance influences on intention using affiliate marketing strategies of e-commerce companies in Vietnam

Zeff states that whereas measurement of advertisement has always been difficult in traditional media, with advertising online it is relatively easy and yet precise. Advertisers can measure the number of times their ad was displayed, number of times it was clicked on, down to the factual number of sales leads it generated. (Zeff, 1999)

Today, there are software packages that can track ads performance For example, in Google Analytics, users cannot only track web and performance, but also relate it to a broad range of factors, including user location, language or search query By linking the performance directly to the products and its price, advertisers can optimize their advertising campaign for best performance.

Affiliate marketing not only provides the above stated information, but according to Hoffman & Novak, it also monitors the activity of the customer after clicking on the ad through a cookie, that is stored on his or her computer (Hoffman, 1995). Merchants usually track the customer’s activity for several days or weeks and pay the commision to the content providers when the sales is executed during the period.

Advertisers can easily track the performance of an affiliate link throughout a company's marketing campaign Advertisers want to track the following metrics: clicks, conversion rate, average order volume, and cost per order revenue.

(H2): Consumer Trend: Consumer Trend influences on intention using affiliate marketing strategies of e-commerce companies in Vietnam

The affiliate websites offer a variety of discount coupons to both existing and new users This aids internet portals in attracting customers who make repeat purchases Consumer rewards, on the other hand, are motivational factors for both new and existing customers Affiliate marketers, on the other hand, get compensated based on the number of visitors routed from their website Affiliate marketers promote their links either organically or through paid means with the help of higher reward packages The use of incentive leads aids in the generation of additional inbound affiliate links Consumers that use affiliate marketing recommendations also want to profit financially from referral codes People also use affiliate marketing links and accept their notifications and subscriptions, according to As a result, affiliate marketers bring financial rewards to themselves and their followers by adding value to their posts They add favorable perception about the product utility through value creation, which is still undiscovered by consumers and the community As a result, affiliate marketing aids consumers in making more informed purchasing decisions.

Affiliate connections aid in the generation of leads that may turn into potential buyers Affiliate marketing aids in the development of sales by boosting the number of clicks and generating leads In fact, affiliate marketers are compensated on a pay- per-sale, pay-per-click (selective), and pay-per-lead basis Their performance is also evaluated, with adequate payment considerations based on the quality of traffic generated.

(H3): Promote Purchase: Promote Purchase influences on intention using affiliate marketing strategies of e-commerce companies in Vietnam

By delivering a favorable experience, relative advantage aids in boosting the applicability of the innovation The relative advantage of affiliate marketing is that consumers regard it as a positive experience The perceived benefit of affiliate marketing enhances the good experience across the full social and economic spectrum, and the online marketing strategy of affiliate referrals compliments the online promotion process Affiliate marketing and other related technology have been extensively researched for their novel applications The amount of leads generated by affiliate links via social media marketing is also expanding.

A sense of trust is developed among consumers as a result of pleasant experiences acquired from affiliate websites, blogs, and videos The consumers' perception of the information also influences their sense of trust The imagery and the manner in which the affiliate marketer provides information play a role in developing trust.

As a result of characteristics such as information quality, which establish a sense of good virtual cognition, trust is strengthened.

(H4: Cost Saving): Cost influences on intention using affiliate marketing strategies of e-commerce companies in Vietnam

There are various types of affiliate models These models are classified as revenue- based models, hybrid models, and exposure-based models Revenue-based models, also known as performance-based models, are based on the revenue generated by the referring website Pay per lead, flat referral rate, and percentages of sales are all revenue-based models Hybrid models are a mix of revenue-based and exposure- based models Some of these models combine elements of revenue-based and exposure-based models, whereas others, such as link exchange models, entail a sharing partnership between partners (Prussakov, 2007) o Cost-Per-Sale (CPS)

Cost per sale also known as cost per acquisition affiliate marketing model is an arrangement where payment is made by an advertiser whenever a purchase is made This is a low risk method because payment is only made by the advertiser when revenue is generated This means that no money is paid whenever user makes a purchase (Ivkovic, 2010) o Cost-Per-Action (CPA)

In the affiliate marketing industry, CPA is commonly used When a user performs a certain action, the CPA affiliate marketing model pays a commission Getting a quote, clicking, installing, purchasing, converting to a lead, signing up for a trial, or filling out a form are examples of actions (Gregori, 2014) The cost-per-lead pricing model takes the process a step further by requiring the advertiser to pay when a person views an ad on a website, clicks on it, and then takes action As a result of this agreement, the user must execute an activity on the advertiser's website and must thus be a qualified lead for sale When the entire process is completed, the publisher receives payment The advertiser has complete control over the activity that will be charged: signing up for a newsletter, downloading a PDF, watching a video, joining a club, or doing a survey. o Cost-Per-Click

Advertisers who use affiliate marketing must pay for each click on their ad Unlike the CPM method, where payment is made only when the merchant expresses interest in the message and a desire for more information by clicking the banner and being directed to the advertiser's website, the CPC method pays only when the merchant expresses interest in the message and a desire for more information by clicking the banner and being directed to the advertiser's website When related to a relevant sector or field, such as posting ads on blogs that discuss the field or industry a company operates in, or simply evaluating products in the area where the company sells its product, CPC advertising works well Because the most expensive terms are also the most popular, this strategy is potentially cost-effective. Linking CPC to content released about the field raises the possibilities of gaining more readers.

According to Sekaran in “ Research methods for business: A skill building approachˮ (Sekaran, 2016) , CPC offers the advertiser the following benefits: all risks are transferred to the publisher; payment is based on performance; the ad obtains exposure without any actions or clicks; and it creates sales leads In Role of Social

Media Marketing In Brand Building: The New Age Marketing Strategy by Singh.S, the author outlined the disadvantages of CPC to advertisers as follows: high advertising costs; customer disclosure of sensitive information; lowest conversion rate; high risk of false form filling or ad fraud (Singh S A., 2017)

THE RESEARCH METHODOLOGY

Research process

Identifying the research problem, object, scope, and timeframe for affiliate marketing strategies impact on e-commerce companies in Vietnam.

Recognizing the concepts as well as important theoretical viewpoints, and also combining the synthesis and evaluation of past research in foreign countries on the impact of affiliate marketing strategies on e-commerce companies inVietnam Developing study hypothesis and a research model based on those hypotheses; Data collection based on factors in the study model Using SPSS software to analyze and perform tests and regression tests, then analyzing the study findings and comparing them to findings from earlier background studies.Discussing and considering the implications of each piece in order to develop the influencer marketing plan in the future The research process is outlined below, from the early steps of presenting a research issue through developing a theory and creating a research model issue

Qualkative study To enhance the frame\\'0ĩk ; questiotũre desĩgn

► To test the measuring scales and the hypotíieses

Figure 9-The research processes through developing a theory and creating a model The study data must then be processed and analyzed in order to make conclusions.

Research methods

Using methods of analysis, synthesis, descriptive statistics, comparison, and so on in document research, synthesis of theories, previous relevant research topics in foreign countries to construct theoretical basis for research topics; quantitative research is conducted; the findings from qualitative research serve as the foundation for changing the observed variables of the survey parameters. Following that, a survey will be administered to individuals in Ho Chi Minh City who have cosmetic product demands or have purchased cosmetic goods The expected sample size is 220 samples, after which data screening will be performed to choose the best database for the study A formal survey was employed to collect data, which was accomplished via indirectly emailing a pre-designed questionnaire.

Quantitative methods are performed to analyze the collected data with the help of SPSS software As follows:

- Statistics of the research sample through demographic data such as gender, age,

- Preliminary assessment of the scale and reliability of the measured variable by Cronbach's Alpha coefficient and the value (factor loading), conduct Exploratory Factor Analysis (EFA), to find out the factors 40 affecting the intention of using affiliate marketing strategies from ecommerce companies in Vietnam.

- Descriptive and Frequency Statistics are used to determine Minimum, Maximum, Mean, and Standard Deviations in order to assess the degree of consent for each observed variable.

- Cronbach's alpha coefficient (Cronbach's alpha coefficient): The goal of this method is to determine which elements should be kept and which should be omitted from the list of items to be verified The total variable correlation coefficient must be larger than or equal to 0.3 in order to fulfill the observed variables (Nunnally & Bernstein , 1994) Observed variables having a Corrected Item-Total Correlation coefficient of less than 0.4 will be excluded, and the Cronbach's Alpha coefficient of 0.6 or above will be used to determine a scale.

- Between 0.8 and almost 1: the measurement is fairly reliable (Nunnally & Bernstein , 1994)

- Reliable values range from 0.7 to almost 0.8 (Peterson, 1994)

- A score of 0.6 or above qualifies if the notion of measuring was novel to respondents in the research setting (Peterson, 1994)

- EFA (Exploratory Factor Analysis): The major use of factor analysis is to assess convergent and discriminant values This approach comes in handy for defining needed variable sets This is helpful for discovering correlations between variables in study To assess the scale's two critical values, the convergence value and the KMO ( (Kaiser-Meyer-Olkin measure of sampling adequacy) value.

- KMO should be between 0.5 and 1: adequate criteria for factor analysis are met If KMO is less than 0.5, factor analysis is most likely not acceptable.

- The Bartlett's Test was statistically significant (Sig 0.05) This was a statistical measure used to test the hypothesis that variables, whether correlated or not, were correlated in total.

- If the factor loading is more than 0.5, the factors are indexed to assure the practical meaning of EFA A factor loading of more than 0.3 is regarded to be the bare minimum Factor loading more than 0.4 is regarded as significant A factor loading greater than 0.5 is thought to have practical significance.

- Total variance extracted > 50%: reflected the proportion of observed variable change When the variance was 100%, it represented the percentages by which the factor described its meaning and losses.

Sample description

Sellers who are selling goods on e-commerce platforms in Vietnam As a result, the planned to be around 250, but after surveying and deleting non-standard samples,only roughly 220 samples remained.

Survey design

A five-point Likert scale is used This is the most commonly used scale for analysis, Likert scale questions require survey respondents to indicate their level of agreement to a statement from the following options: (1) Strongly disagree, (2) Disagree, (3) Neutral, (4) Agree, and (5) Strongly agree The Likert scale is used to measure concepts because it is non-restrictive, motivates replies, and limits the avoidance of straightforward answers The notions will then be measured more precisely.

Based on the proposed research model and some previous survey samples, the questionnaire is divided into 3 main parts.

Part 1: Demographic Data - The questionnaire survey evaluated the demography (personal information) of respondents in order to discover information about their age, gender, SPSS Software will be used to do the descriptive statistics.

Part 2: Social Media Usage and Social Media and Purchase Intention The questionnaire was expected to take roughly 10 minutes to complete The author utilizes Google Forms to develop a form with an easy-to-use design that can be completed quickly and emailed to replies The questionnaires are distributed through social networking sites such as Facebook, zalo, and forum websites Data can be entered into such forms and saved in a text file These text files are then extracted and entered into an Excel database for further examination The questionnaire's preliminary drafts are piloted with approximately 20 customers.The survey form is then edited, and 50 samples are sent out again Finally, 301 samples of data were obtained through the survey.

Part 3: There are 30 observed belonging to 6 groups of factors Preliminary scales are illustrated in the following tables.

Easily measure clicks on each AFF Link Zeff (1999) P1

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 Hashem (2020) P4

Easily measure the cost-to-revenue of each ad campaign

The number of searches for products of each specific category on multi-channel platforms such as

Followers of KOLs the organization can hire Indrajit (2019) CT2

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 Indrajit (2019) CT4

The form of AFF Link to attract online customers Indrajit (2019) CT5

Buyers can interact directly with KOLs during the livestream to better understand the product

Buyers tend to make purchases that are similar to the

Buyers receive more attractive offers of the program on the e-commerce platform when making purchases through the affiliate link.

Affiliate marketing links lead buyers directly to the checkout (for product links) or to the Shop (for Shop links)

E-commerce businesses using affiliate marketing strategies just pay-per-click

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

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 e-commerce platform

Reaching a large number of new customers making first-time purchases on e-commerce platforms

The opportunity to promote the organization's revenue

Increase brand awareness of the organization among online customers

Opportunity to connect with new sellers on their e- commerce platform

I think using the affiliate marketing strategy of the e- commerce company is necessary

I think using the affiliate marketing strategy of the e- Hashem (2020) I2 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 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

RESEARCH RESULT

Sample description

Sample characteristics by gender, age range, and some shared information about sellers who are selling on e-commerce platforms such as the frequency of using affiliate link, affiliate marketing, using KOLs that are used to search for the impact of affiliate marketing on e-commerce companies, etc…

Frequency Percent Valid Percent Cumulative

The distribution is considerably varied between the two genders Because the respondents were picked at random, the gender distribution revealed is reasonable, as any gender might sell goods on e-commerce platforms However, based on the table, we may conclude that women, which accounted for 58.2% selling online more than males, but this is not necessarily the case.

Frequency Percent Valid Percent Cumulative

The age distribution is as expected; the vast majority of the people selling on e- commerce platforms are between the ages of 25 and 28, accounting for 37.3 percent of the total Starting a store on an e-commerce channel is an extremely significant step for people who want to establish a small or retail business at this age The age group between 22 and 25 years old (which accounts for 31.8 percent) is in second place This is the age group that has solid knowledge but lacks financial potential or experience; however, this is the age of large and powerful access to social platforms and new business strategies, so integration with e-commerce platforms is essential.

From the collected data, the majority of survey respondents have an income of between 5 million VND and 10 million VND, the second place is people with income from 10-15 million VND The majority of survey respondents are doing business on e- commerce platforms, so the percentage of people with incomes below 5 million VND is quite small, which is understandable At the same time, people with an income of more than 15 million VND are also insignificant

Testing the reliability of Cronbach’s alpha

All independent and dependent variables were measured by a 5-point Likert scale ranging from strongly disagree to strongly agree.

The scales are evaluated for reliability by Cronbach's Alpha coefficient to consider the internal consistency and the basis for eliminating the variable is not required based on the correlation coefficient of the adjusted total variable and Cronbach's Alpha.

Table 10-Reliability Statistics of Tracking Performance

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Cronbach's Alpha of Tracking Performance is 0.874, which is regarded as an acceptable result There are no variables with a value of less than 0.4 All the variables of the Credibility scale are accepted since the overall correlation coefficients of observed variables are greater than that level Therefore, this can be used to evaluate in Exploratory Factor Analysis – EFA.

Table 11-Reliability Statistics of Consumer Trend

Scale Variance if Item Deleted Corrected Item-

Total Correlation Cronbach's Alpha if Item Deleted

Cronbach's Alpha of Trustworthiness is 0.755, which is regarded as an excellent result There are no variables with a value of less than 0.4 All the variables of the Trustworthiness scale are accepted since the overall correlation coefficients of observed variables are greater than that level Therefore, this can be used to evaluate in Exploratory Factor Analysis – EFA.

Table 12-Reliability Statistics of Promote Purchase

Item Deleted Scale Variance if

Total Correlation Cronbach's Alpha if Item Deleted

Cronbach's Alpha of Likeability is 0.801, which is regarded as a acceptable result There are no variables with a value of less than 0.4 All the viriables of the Likeability scale are accepted since the overall correlation coefficients of observed variables are greater than that level Therefore, this can be used to evaluated in Exploratory Factor Analysis – EFA.

Table 13-Reliability Statistics of Cost

Cronbach's Alpha if Item Deleted

Cronbach's Alpha of Likeability is 0.810, which is regarded as an acceptable result There are no variables with a value of less than 0.4 All the variables of the

Likeability scale are accepted since the overall correlation coefficients of observed variables are greater than that level Therefore, this can be used to evaluate in Exploratory Factor Analysis – EFA.

Table 14-Reliability Statistics of Effectiveness

Item Deleted Scale Variance if

Total Correlation Cronbach's Alpha if Item Deleted

Cronbach's Alpha of effectiveness is 0.875, which is considered an excellent result.There is a variable whose value is less than 0.4 Variable E1 has a total correlation of3.05 and Cronbach's Alpha if this variable is excluded from E1, the reliability of theEffectiveness scale increases from 0.867 to 0.893 Therefore, the author conducts the elimination of the E1 variable (the first cronbach's results for Effectiveness are in the appendix) (Corrected Item-Total Correlation of E1 =0.301

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