RESEARCH PROPOSAL Subject: Research methodology in economics and business Topic: The impact of affiliate marketing on e-commerce platforms on the purchasing behavior of Generation Z in V
ABSTRACT
The COVID-19 pandemic has significantly changed consumer behavior, with social distancing measures leading to a surge in online shopping and the rapid growth of affiliate marketing, social networks, and e-commerce platforms This qualitative research study investigates the effects of affiliate marketing on the purchasing habits of Generation Z in Vietnam since the onset of the pandemic in 2020 Employing an inductive approach and a mono-method qualitative design based on grounded theory, the study seeks to explore the experiences, perceptions, and motivations of Gen Z consumers.
This research explores Gen Z consumers' perspectives on affiliate marketing through in-depth one-on-one interviews and grounded theory analysis The findings highlight key factors influencing Gen Z's purchasing behavior within the affiliate marketing context and their significant impact Insights from this study will provide a theoretical basis for future research and offer valuable implications for marketers and e-commerce businesses in Vietnam, guiding the development of more effective affiliate marketing strategies.
Keywords: affiliate marketing, purchasing behavior, Generation Z, Vietnam.
INTRODUCTION
In recent years, Vietnam's e-commerce sector has experienced significant growth, with the Vietnam E-commerce Association (2023) predicting a stable growth rate of 23%, surpassing $20 billion in the coming years Recognizing this potential, both large enterprises and SMEs are increasingly implementing innovative digital marketing strategies to engage consumers A key tool in their marketing arsenal is affiliate marketing, which involves rewarding independent marketers, or affiliates, with commissions for driving traffic, customers, or sales through their promotional efforts.
Affiliate marketing involves promoting three key products, allowing affiliates to earn a commission based on each order they generate, with the commission rate set by the business (Duffy, 2005) This strategy is effective not only for boosting sales but also for enhancing brand awareness and broadening the customer base.
Businesses are increasingly prioritizing the targeting of Generation Z, defined by The Center For Generational Kinetics as individuals born between 1996 and 2015 This cohort is recognized as the first "digital native" generation, characterized by their extensive use of technology and social media Our research specifically examines the purchasing behavior of Generation Z individuals within this age range.
2010, as they are now reaching adulthood and could earn their own income and/or make their own buying decision
Vietnam, with a population exceeding 98 million, boasts a significant Gen Z demographic of over 20 million individuals, representing approximately 20% of the total population (World Population Review, 2023) Although many Gen Z members are still young and developing, they are already shaping the consumer landscape through their purchasing power and their influence on their parents' buying decisions (Vietnam Economic Times, 2018) Consequently, Gen Z emerges as a vital target for brands, making it essential to understand their purchasing behavior for effective marketing strategies.
Despite existing studies on affiliate marketing's impact on consumer behavior in various countries, research focusing on Vietnam, especially regarding Gen Z consumers, is limited This gap highlights the need for investigation into how different demographics interpret and respond to affiliate marketing on e-commerce platforms Our research aims to enhance the understanding of purchasing behaviors among this significant demographic group in Vietnam and contribute valuable insights to the existing literature on affiliate marketing.
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LITERATURE REVIEW
Generation Z And Their Purchase Decision - Making Style
Generation Z, also known as iGeneration, Homelanders, or Post-Millennials, is the demographic group that follows Millennials and precedes Generation Alpha This cohort is generally defined as individuals born from the late 1990s to the early 2010s Members of Gen Z are predominantly the descendants of Baby Boomers, with some having Millennial parents.
Generation Z, comprising nearly a third of the global population, represents a crucial market segment that necessitates in-depth research into their unique consumer traits (Shropshall, 2020) This generation exhibits distinct differences in characteristics, needs, and purchasing behaviors compared to previous generations (Kahawandala and Peter, 2020b) Marketers face challenges in engaging Generation Z, as their behaviors diverge significantly from those of older consumers, requiring tailored strategies (Schlossberg, 2016) Influenced heavily by social circles, Generation Z prioritizes recommendations from friends and family when making purchase decisions (Kahawandala and Peter, 2020b; Accenture, 2017) Growing up in the digital age, they rely on the Internet as their primary information source, with social media playing a significant role in shaping their choices, even more so than for Millennials (Hidvégi and Kelemen-Erdős, 2016; Accenture, 2017) According to Accenture, Gen Z consumers typically consider three factors in their purchasing decisions: price, product display, and user reviews Wood (2013) identifies four key trends among Generation Z: a strong interest in new technologies, a preference for user-friendly products, a desire for safety in communication and shopping, and a need for occasional escapism from daily life.
Generation Z's purchasing decisions are influenced by various factors that warrant deeper exploration Notably, the concept of brand loyalty among this demographic has yielded conflicting insights from studies by Accenture (2017) and Merriman (2015) Therefore, further research into Generation Z's consumer psychology is essential to achieve a more comprehensive understanding of their buying behaviors.
Affiliate marketing and E-commerce
Affiliate marketing allows publishers to earn commissions by promoting products or services through affiliate links, rewarding them for driving specific results for retailers or advertisers (Hayes, 2023) This strategy fosters a mutually beneficial relationship between advertisers and affiliates and is expected to dominate e-commerce marketing in the future (Duffy, 2005) Research indicates that affiliate marketing positively influences consumer buying interest in e-commerce (Marquerette and Hamidah, 2023), making it a viable strategy for businesses worldwide, including in Vietnam.
Affiliate marketing presents significant opportunities in Vietnam, particularly in the context of the Fourth Industrial Revolution, as it effectively targets the growing Generation Z demographic Research by Pham et al (2021) highlights that this marketing strategy not only enhances brand awareness but also drives sales, making it a powerful tool for businesses looking to engage with younger consumers in the Vietnamese market.
Research indicates that perceived trust, usefulness, and informativeness significantly shape consumers' attitudes towards e-purchasing, as highlighted in studies by Haq (2012) and Ghosal et al (2020) Ghosal et al further identified additional factors influencing consumer attitudes toward online affiliate marketing, including perceived ease of location, relative advantage, compatibility, and observability Notably, their study primarily concentrated on the purchasing behavior of Millennials.
Generation Z Generation Z is emerging as a potential key consumer segment; therefore, there should be more studies relating to their characteristics and purchase decision- making style with careful investigations
Table 2.1 Summary of prior studies into the relationship between affiliate marketing and Gen Z consumer beha
Name and author of the research
Scope and Methodology Findings Limitations of the r
Shopee Application" by Karame et al
- Scope: Generation Z in Manado who are 11-25 years old, and Shopee users who have made purchases through the Shopee application
- Methodology: Quantitative research method and Data collection:
The data was processed by multiple linear regression method
Non-probability sampling, by means of purposive sampling
Trust plays a crucial role in influencing Generation Z's online purchasing decisions on the Shopee application A higher level of trust in the Shopee platform significantly boosts the likelihood of making purchases, highlighting the importance of building consumer confidence for driving sales among this demographic.
Easiness plays a crucial role in influencing Generation Z's online purchase decisions on the Shopee application A higher level of user-friendliness on the Shopee platform significantly boosts the likelihood of making purchases, demonstrating that an intuitive shopping experience is essential for attracting this demographic.
- Security has a negative and no significant effect on generation Z online
- Small sample size, po questionnaire response
- There was a lack of gener was conducted in a specific
8 purchase decisions in the Shopee application It means that the level of security in Shopee application has no effect in make online purchase on Shopee
E-service quality significantly influences Generation Z's online purchasing decisions on the Shopee application Higher e-service quality on Shopee leads to an increased likelihood of making purchases through the platform.
Generation Z's online purchase intention based on four key factors: security, convenience, reputation, and social media
- Methodology: Meta analysis: combine the results of 2 or more
Most important factors influencing Gen Z's online purchase intention:
- Security: Gen Z is concerned about the security of their personal information when they shop online
- Convenience: Gen Z is looking for a convenient shopping experience They want to be able to shop from anywhere, at
10 years of research o However, it is possible that t new developments in this research was conducted
- It is possible that there ar that influence Gen Z othe factors mentioned
9 similar studies in order to obtain a quantitative blend of data any time, and they want to be able to get their purchases quickly
- Reputation: Gen Z is more likely to shop online from retailers that have a good reputation
Generation Z heavily relies on social media for their purchasing decisions, often influenced by recommendations from friends and family They are more inclined to purchase products that have been promoted on social media platforms, showcasing the significant impact of digital marketing on their consumer behavior.
- It is possible that the f research do not apply to since it was conducted in a sp
"Impact of digital marketing on consumer purchase behaviour" by Nizar and Janathanan
- Scope: primary research on the impact of social media advertising and consumer purchase behavior, to make recommendations to management of the company Dialog
- Affordable pricing strategies are essential in digital marketing to attract and retain customers
- Enhancing service quality, particularly in the context of digital services, is vital for influencing consumer purchase behavior
- Small sample size and p survey response
- The research focused on study of a specific compa findings may not be app contexts
- Methodology: Quantitative and qualitative data collection: questionnaires received184 responses, in-depth interview among three interviewees in Dialog AxiatA and
- Establishing trust and providing accurate information are key factors in encouraging online purchasing behavior
- Digital marketing strategies have a direct impact on consumer decision-making processes in the online marketplace
"Affiliate marketing and its impact on e- commerce" by Duffy
- Scope: companies participating in e-commerce
- Methodology: including some of the participants and explores the characteristics of a successful long- term relationship
- Successful affiliate marketing relies on the construction of a win-win relationship between advertisers and affiliates
- Affiliate marketing has the potential to become the principal mainstream marketing strategy for e commerce - businesses in the future
- There was lack of in-dep empirical evidence to suppo
- The study had limited specific strategies or tech affiliate marketing
- The text does not add challenges or risks associate marketing
"Affiliate marketing and opportunities for using affiliate marketing in
Vietnam in the context of the Fourth
Revolution" by Pham et al (2021)
- Scope: in Vietnam in the context of the Fourth Industrial Revolution
- Methodology: Qualitative data collection and analysis based on
- Affiliate marketing (AM) has the potential to be a very effective marketing strategy in Vietnam
- Vietnam has a large and growing population, high internet penetration rate, and increasingly affluent consumers
- The AM market in Vietnam is still relatively new and the regulatory environment is still evolving
- Businesses that are considering using
AM in Vietnam should be aware of the limitations and take steps to mitigate them
- There were insufficient research design
- The study used unclear me theoretical foundation to conclusion
- The study did not discu strategies that businesses ca affiliate marketing successfu
“Affiliate marketing programs: A study of consumer attitude towards affiliate marketing programs
- Scope: respondents from the cities of Hyderabad, Delhi, Bangalore and
- Methodology: Primary data collection: Questionnaire
The variables studied in this research, including perceived usefulness, perceived trust, perceived informativeness, and perceived incentive, have a significant impact on consumers' attitude towards online affiliate marketing programs
- Small sample size, po questionnaire response
- There was a lack of gener was conducted in a specific
12 among Indian users” by Haq (2012)
Cronbach’s alpha coefficient to check the reliability of the measures
These factors play a crucial role in shaping consumers' perceptions and attitudes towards affiliate marketing
Affiliate Marketing and Service Features on E-Commerce
- Scope: The population of this study is ecommerce users from teenagers to adults in the city of Bandung
Quantitative analytical method with descriptive analysis The sampling technique used is non-probability sampling,
- The Influence of Affiliate Marketing:
Affiliate marketing significantly boosts consumer buying interest in e-commerce, particularly on platforms like TikTok Shop By implementing strategies such as referral programs and influencer collaborations, businesses can enhance consumer engagement and drive more purchases.
- The Influence of Service Features:
Live streaming on the TikTok Shop significantly enhances consumer buying interest by providing easy access to products, facilitating order tracking, and streamlining the purchasing process.
- Small sample size may int
- Limited variables may n entire range of factors consumer behavior or buyin
- The research focused on li
- The study may lack longitu
13 purchases, contributing to their interest in e-commerce shopping on the platform
"Impact of Affiliate marketing on e- buying behavior of
Millennial – A TAM based Approach with
- Scope: Millennials in India using e- buying system
- Methodology: Qualitative data collection and analysis: To screen
Respondents subjectively and interview process
Computational linguistics to analyse and discourse
- The affiliate marketing factors that shape millennial attitudes include informativeness, incentive, perceived trust, perceived usefulness, perceived ease to locate, relative advantage, compatibility, and observability
- The interrelationship between these affiliate marketing factors and millennial attitude is mediated by TAM factors, specifically perceived ease of use (PEOU) and perceived usefulness (PU)
- The study did not control f that could influence mille behavior, such as income, gender
- The study did not meas impact of affiliate m millennials' purchasing beha
- The study did not conside affiliate marketing on mille shopping experience, su satisfaction with the product purchased
- Scope: Customers in context of M- commerce in Delhi NCR regions
- Methodology: Qualitative analysis and quantitative analysis based on
- A positive impact of affiliate marketing on consumer behavior with respect to m- commerce
- Convenience sampling te lead to potential bias in the
- The study did not conside other marketing channels,
Dwivedi (2017) complete survey design, a questionnaire consisting of 21 items, conclusive research design, convenience sampling technique,
Independent t-test, Chi Squared test and Pearson Correlation Analysis
- A positive, high and statistically significant relation between indignity and advertisement utility
A statistically significant positive relationship exists between attitude and advertisement utility, as well as between price perception and advertisement utility Additionally, there is a noteworthy connection between attitude and price perception, highlighting the influence of media and search engines on millennials' buying behavior.
- The study did not conside affiliate marketing on mil awareness and purchase inte
Justifications for research gap and research objectives
The literature review identifies a significant research gap regarding the impact of affiliate marketing on the purchasing behavior of Gen Z in Vietnam, as most existing studies have been conducted in countries like India, raising concerns about the applicability of these findings in the Vietnamese context Additionally, the majority of research utilized quantitative methods with insufficient sample sizes and often employed convenience sampling, leading to potential biases and reduced accuracy While some studies have explored specific aspects of affiliate marketing and consumer behavior, there is a lack of in-depth qualitative research and a comprehensive theoretical framework addressing the effects of affiliate marketing on Gen Z consumers, highlighting the need for further investigation in this area.
Research on the influence of affiliate marketing on Gen Z's purchasing behavior is still emerging, with few studies available and a limited focus Consequently, the authors aim to perform a comprehensive analysis to better understand this relationship.
Understanding the current trends and practices of affiliate marketing is essential for analyzing the purchasing behavior of Vietnamese Generation Z By examining their customer profile, we can establish a strong theoretical foundation that highlights the key factors influencing their buying decisions in Vietnam.
Identifying relevant factors of affiliate marketing and understanding to what extent they could facilitate or hinder the purchasing performance of Gen Z in Vietnam.
Research Questions
With the key objectives to provide a comprehensive understanding of, the major question for the study is: “How does affiliate marketing influence Vietnam's Gen Z purchasing behavior?”
The SPIDER tools used to formulate research questions as described in Table 2
Interview Impact of affiliate marketing Affiliate marketing effectiveness
To help further analyze said research question, some sub-questions are added:
1 What are the current trends and practices of affiliate marketing in Vietnam?
2 How familiar are Gen Z consumers with affiliate marketing activities?
3 What are the primary channels or platforms through which Gen Z consumers engage with affiliate marketing?
4 What are the attitudes and perceptions of Gen Z consumers towards affiliate marketing in Vietnam?
5 How do Gen Z consumers perceive the trustworthiness and credibility of affiliate marketing?
6 How do Gen Z consumers' attitudes towards affiliate marketing differ across different product categories?
7 What are the factors that influence Gen Z's decision-making process in affiliate marketing?
8 Are there any differences in Gen Z consumers' responses to different types of affiliate marketing strategies (e.g., social media influencers, content creators, brand ambassadors)?
9 How effective are different affiliate marketing strategies in influencing Gen Z's purchasing decisions in Vietnam?
10 How do Generation Z consumers in Vietnam make purchasing decisions?
RESEARCH METHODOLOGY
Research paradigm
Research paradigms, including positivism, critical realism, interpretivism, postmodernism, and pragmatism, are fundamental belief systems that influence how researchers explore phenomena These paradigms shape their understanding of the world, dictate methods for data collection and interpretation, and establish criteria for addressing research questions (Denzin and Lincoln, 2000; Perry and Bellamy, 2012; Saunders et al., 2023).
This study adopts Interpretivism due to its focus on developing deeper understandings of social contexts and behaviors, while acknowledging the influence of societal norms and cultural values (Saunders et al., 2023; Creswell and Plano-Clark, 2007) Its flexibility makes it well-suited for examining the dynamic landscape of affiliate marketing and the changing perspectives of Generation Z consumers, aligning perfectly with the study's objectives.
Research design
This research aims to explore the impact of affiliate marketing on Gen Z consumer behavior in Vietnam, employing an inductive approach through a mono-method qualitative design It utilizes qualitative data collection and analysis techniques, along with a grounded theory strategy, to build robust theories for future studies.
The qualitative research method integrates various perspectives and data sources to uncover the underlying reasons and trends (Saunders et al., 2023) This study will utilize in-depth interviews to explore Gen Z consumers' perceptions, attitudes, and experiences with affiliate marketing, as well as the factors influencing their purchasing behavior and the degree of their impact.
Research scope
The scope of this study regarding the correlation between affiliate marketing and purchasing behavior is restricted to generation Z, who were born between 1996 and
The COVID-19 pandemic has drastically altered consumption and shopping behaviors in Vietnam, particularly since 2010 (McKinsey, 2023) Social distancing measures have propelled online shopping into a dominant trend, leading to explosive growth in websites, social networks, and e-commerce platforms linked to affiliate marketing This research will examine the pivotal year of 2020, highlighting how the rise of affiliate marketing significantly influenced the purchasing behaviors of Gen Z in Vietnam.
Data collection
The authors will utilize in-depth interviews as the primary method for data collection, focusing on individuals' experiences with affiliate marketing and the factors influencing their purchasing behavior Each interview will consist of 15 to 20 questions, with the flexibility to add more as needed, and is expected to last between 30 to 60 minutes Conducting one-on-one interviews is preferred to ensure a comfortable environment for the interviewees.
Sample and Sampling Technique
In the qualitative research phase, researchers often lack standardized numerical guidelines for determining sample size (Kindsiko and Poltimọe, 2019) The concept of "saturation," defined by Sandelowski (1995), is commonly used, indicating that data collection continues until no new theoretical categories emerge to explain the phenomenon The research team plans to gather qualitative data through in-depth interviews, aiming to reach saturation within a specified timeframe Each of the eight team members is expected to conduct 1-2 interviews daily, resulting in a projected sample size of 160 to 320 participants However, this estimate may vary based on the sampling techniques employed.
This research will utilize theoretical sampling, a specific form of purposive sampling closely linked to grounded theory and analytic induction (Morse and Clark, 2019) It involves selecting participants based on insights that emerge during the data analysis process (Saunders et al., 2023) Prior to conducting interviews, the author will determine participants' engagement in e-commerce shopping to exclude those who are unsuitable The primary aim of theoretical sampling is to collect data that enhances and refines the developing theory.
Theoretical sampling is an iterative approach that combines data collection and analysis By examining initial interviews, we can uncover key concepts, categories, and themes This insight allows us to purposefully select new participants or cases to deepen our understanding and refine these emerging concepts.
Data analysis techniques
This study will utilize the traditional grounded theory method to analyze qualitative data, enabling researchers to derive theories directly from the data rather than depending on existing frameworks (Saunders et al., 2023) We will adopt a systematic approach to implement grounded theory in our research, as illustrated in the accompanying figure.
Initial purposive sampling is essential for guiding data collection by selecting individuals who provide diverse and insightful perspectives on the research topic Following the selection of the sample, data generation begins, utilizing methods such as interviews, observations, and document analysis.
In the initial coding process, we meticulously examine the data line by line to identify emerging concepts or categories Each data item is assigned a descriptive label, which aids in organizing and interpreting the data These preliminary codes are essential for encoding the fundamental essence of the data, facilitating a clearer understanding of its underlying themes.
The next step is intermediate coding, which entails looking at how several codes relate to one another Broader categories or notions are created as a result of connections
21 that are made between similarities and differences Intermediate coding is used to comprehend the links and patterns in the data rather than just specific codes
In the advanced coding phase, we conduct focused coding to identify a core category that unifies and clarifies other categories This essential category acts as a theoretical foundation for understanding the data and highlights the primary phenomena being studied.
Constant comparison during the coding process allows researchers to juxtapose new data with previously analyzed information, enhancing the development of evolving theories through an iterative approach This method also facilitates theoretical sampling, enabling the selection of new participants or the collection of additional data to explore and assess emerging concepts or categories effectively.
The grounded theory method emphasizes the creation of theories derived directly from data, rather than relying on existing frameworks This approach facilitates the development of new insights into affiliate marketing and the purchasing behavior of Gen Z in Vietnam, uncovering the underlying mechanisms and connections that explain these phenomena.
Ethical consideration
This section outlines the ethical guidelines for data collection as per Article 38 of the Vietnam Civil Code Participants will be informed that their data will be recorded and used exclusively for research purposes, with a commitment to privately archiving it upon completion We assure that participant information will never be sold, and interviews will only proceed with explicit consent No personal identifiers like name, address, or email will be collected; however, basic demographic information such as gender, age, and salary will be gathered to enhance dataset comprehension Access to the data will be restricted to participating researchers, with stringent management of data access permissions.
During the research phase, specialized software will be utilized to ensure data integrity and security Once the research is complete, all collected data will be encoded to safeguard against potential cyber threats Additionally, to maintain the objectivity of the results, no external incentives or compensation will be provided to participants for completing the survey, as this could lead to biased responses.
SIGNIFICANCE OF THE STUDY
This study represents one of the few theoretical examinations of the relationship between affiliate marketing and Generation Z consumer behavior in Vietnam A review of existing literature reveals a significant lack of international research on this topic, with few solid theoretical foundations and a primary focus on foreign countries This research aims to introduce new theories related to affiliate marketing and consumer behavior, addressing the existing theoretical gap The findings will not only provide empirical support for future studies in similar contexts but also enhance consumer research within the marketing industry by highlighting individual experiences that influence consumer responses This valuable data can assist corporations in Vietnam in refining their marketing strategies.
LIMITATIONS OF THE STUDY
While the research on the impacts of affiliate marketing on Generation Z's purchasing behavior in Vietnam holds potential, it is essential to acknowledge some limitations that this research may bring
Time and financial constraints significantly limit the scope of this research, potentially leaving out important aspects of the topic The findings are primarily relevant to Generation Z consumers in Vietnam, making them less applicable to other regions or demographic groups due to unique cultural influences, socioeconomic conditions, and market characteristics Moreover, the sampling techniques used may not fully represent the targeted population, and the reliance on interviews for data collection introduces the possibility of biases and inaccuracies, as participants may lean towards providing socially desirable responses.
In the dynamic realm of affiliate marketing, the reliability and validity of data can be compromised as respondents may exaggerate or downplay their behaviors and struggle to recall their purchasing decisions accurately Additionally, the continuous evolution of trends, platforms, and strategies within the industry makes it challenging to conduct research that accurately captures the latest practices and reflects the current influence of affiliate marketing on Generation Z consumers in Vietnam.
TIMEFRAME
The table below will provide a brief description of the timeframe for each stage of this research
Stages Activities Time period Duration Outputs
1/7/2023 - 7/7/2023 1 week Confirmed research problem/questions
Draft research design section for final report
Research proposal/ ethical approval submission
Search, capture and synthesize relevant literature
Notes and other output from the review process Prepare draft literature review
15/7/2023 - 22/7/2023 1 week Draft literature review section for final report Data collection Finalize sampling plan 24/7/2023 -
27/7/2023 - 29/7/2023 3 days Draft data collection instruments Pre-test data collection instrument
30/7/2023 - 31/7/2023 2 days Finalized data collection instrument Carry out data collection
25/8/2023 4 days Draft data collection section for final report
27/8/2023 2 days Dataset ready for analysis
3/9/2023 1 week Output notes from analysis
Draft data analysis and findings section final report