Trang 1 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESISMAJOR: INTERNATIONAL BUSINESSEVALUATING AND SELECTING LIVE STREAMING P
INTRODUCTION
Overview
In recent years, live-streaming platforms have revolutionized how businesses interact with their consumers, particularly in the fast-moving consumer goods (FMCG) industry Live streaming offers an interactive and immersive experience that allows FMCG companies to showcase their products, engage with their target audience in real- time, and drive sales (Thien Khai, 2020) With the increasing popularity of live streaming, it becomes essential for FMCG companies to evaluate the performance and effectiveness of different live stream platforms to make informed decisions and optimize their marketing strategies
This research thesis aims to provide a comprehensive assessment framework for live- streaming platforms in the FMCG industry Our proposal involves using the FAHP method in combination with TOPSIS to evaluate and rank different platforms based on their effectiveness and appropriateness for FMCG companies
The Fuzzy AHP method is a powerful decision-making tool that considers multiple criteria and their relative importance in a complex decision-making process By incorporating fuzzy logic, this method accommodates the inherent uncertainties and imprecise nature of subjective judgments often encountered when evaluating live stream platforms It ensures a more accurate and realistic assessment of the platforms' performance TOPSIS, on the other hand, provides a systematic approach to rank the alternatives based on their proximity to the ideal solution By considering both the positive and negative aspects of each platform, TOPSIS evaluates the overall performance and helps identify the most suitable live stream platform for FMCG companies
The expected outcome of this research is to enhance the current understanding of evaluating live streaming platforms and offer valuable perspectives for FMCG organizations looking to capitalize on this dynamic marketing platform In essence, the results of this study will enable decision-makers to make informed decisions regarding their live-streaming strategies, thereby enhancing customer engagement, driving sales, and increasing their competitive advantage in the FMCG industry
Objectives
The primary objectives of this research thesis are as follows:
- To develop a comprehensive set of evaluation criteria that captures the essential features and attributes of live streams platforms relevant to the FMCG industry
- To apply the Fuzzy AHP method to determine the relative weights of the evaluation criteria and assess their importance in the decision-making process
- To employ the TOPSIS method to rank various live streams platforms based on their performance and suitability for FMCG companies
- To validate the proposed evaluation framework through case studies and real-world data, providing practical insights for FMCG companies in selecting the most appropriate live streams platform.
Scope of study
- Factors affecting the success of live streaming platforms in shopping;
- Shopping platforms that integrate live streaming technology in Vietnam.
The necessity of study
The authors chose the topic “EVALUATING AND SELECTING LIVE STREAMING PLATFORM IN FMCG FIELD: AN INTEGRATED FUZZY AHP – TOPSIS APPROACH” for the following reasons:
Firstly, the COVID-19 epidemic quickly changed consumption and shopping habits, as consumers prefer online shopping A survey conducted by Nielsen revealed that since the start of the pandemic, 60 percent of consumers have augmented their online shopping frequency (Vaughan Ryan, 2021) Opting for live streaming as a marketing strategy offers brands a unique opportunity to provide customers with a seamless shopping experience that cannot be matched by traditional methods The interactivity and immediacy of live streaming are unparalleled, making it an effective way to engage with customers As per the Ministry of Information and Communications' data, Vietnam has around 70 million internet users as of September 2022, which is equivalent to about 70% of the population (Long Phi, 2022) It’s the chance that businesses should take advantage of to hold and create online marketing activities to attract these customers Secondly, in the first quarter of this year, Jane Ha (2023) indicated that convenience shopping channels, including mini stores and the online channel, experienced growth in
3 the retail landscape It suggests consumers increasingly favor modern and convenient retail channels during the holiday season
Figure 1.1 The retail landscape in general
In addition, the online market, which encompasses eCommerce and Social commerce, is experiencing continued growth According to Vietnam E-commerce Association
(2023) report, social networks were once again deemed the most effective platform for online sales of goods and services, with 43% of enterprises giving it a high rating E- commerce websites, mobile applications, and websites also received favorable results, with high evaluations of 27%, 26%, and 25%, respectively
Figure 1.2 Effectiveness of selling online
Thirdly, as per Vietnam E-commerce Association (2023) report, it has been observed that there has been a noteworthy surge in enterprise participation on social media and e-commerce platforms in 2022 Around 65% of businesses have created their profiles on various social networks, while 23% of new enterprises have joined e-commerce platforms
Figure 1.3 Doing business on social network over the years
Figure 1.4 Percentage of enterprises participating in e-commerce platforms over the years Source: Vietnam E-commerce Association (2023)
Fourthly, based on the report Vietnam E-commerce and Digital Economy Agency
(2022) mentions the application of livestream technology to introduce products is considered one of the criteria that customers are interested in when they make an online purchase E-commerce live streaming is a new form of commercial social application
Figure 1.5 The reasons that consumers care about when shopping online Source: The report Vietnam E-commerce and Digital Economy Agency (2022)
Lastly, Vietnamese users (from 18 – 34) increased their use and proficiency of digital services; specifically, based on Shopee's report announced in February 2023 extracted from Tuoi Tre News (2023), they spend over 37 million hours on Shopee Live to
6 connect and interact with their favorite sellers Live streaming will explode and thrive, a prominent trend in 2023 Based on the result announced by Vietnam E-commerce Association (2023), a significant proportion of businesses (63%) viewed investment in
IT and e-commerce infrastructure as crucial for their operations Specifically, 40% of the participants considered it important while an additional 23% regarded it as extremely important Only a small fraction (3%) did not prioritize investment in this area
Figure 1.6 Assessment about the importance of investment in IT and e-commerce infrastructure
It's challenging to consider and choose the livestream platform that aligns with the demand and the price appropriately, so this study will identify factors that affect enterprises' choice of sales livestream platform and conduct assessments on livestream platforms or integrated livestream technology available in Vietnam based on the newly given factor framework The research results will serve as a guiding basis to help businesses make suitable choices for marketing and sales strategies in the current digital context
Methodology
The study is conducted based on the methods below:
- The qualitative process involves researching relevant secondary documents, leading a discussion, and asking for opinions, which confirm and supplement the criteria for evaluating influencing factors
- The quantitative method: An evaluation of live streaming shopping platforms is conducted using the Fuzzy AHP - TOPSIS integration model, combining Fuzzy AHP and TOPSIS methods First, the Fuzzy AHP model determines the relative importance of factors by comparing them Then, using Fuzzy AHP to determine the relative importance of factors in the first stage In the next step, TOPSIS will calculate the distance between the alternatives and the positive and negative ideals
LITERATURE REVIEWS
Theoretical foundations
The evolution from TV video to live streaming with customers signifies a significant transformation in consumer engagement and marketing strategies TV video content was limited in its ability to foster direct interaction and engagement Viewers could only passively consume information and were unable to provide immediate feedback or participate actively in the content On the other hand, live streaming enables hosts to broadcast videos in real-time over internet platforms, allowing for direct interaction with the audience Live streaming breaks the barriers of time and location Unlike TV video content with fixed air times, live streams can be accessed from anywhere at any time, providing greater convenience and accessibility to customers This flexibility allows businesses to reach a wider audience and engage with customers across different time zones Major social media platforms now integrate live streaming features, enabling brands and influencers to connect with their followers and customers in a more authentic and immediate manner (Shu Ran Li., 2017)
The integration of social commerce, e-commerce functionalities, and live streaming has propelled businesses leverage the power of social influence, user-generated content, and real-time engagement Specifically:
Social commerce integrates social interactions, user-generated content, and recommendations to facilitate buying and selling Livestreaming adds an interactive dimension to this concept by enabling hosts to showcase products, demonstrate their features, and engage with viewers in real-time Viewers can ask questions, seek advice, and receive immediate responses, fostering a sense of community and trust This interactive experience enhances the social aspect of the shopping process and drives customer engagement This study focuses on two channels, TikTok and Facebook
In the realm of e-commerce, livestreaming has become an integral part of online retail strategies Businesses can integrate livestreaming functionalities into their e-commerce platforms, allowing customers to access live product demonstrations, launches, and promotions Livestreaming provides an immersive experience where customers can actively participate, ask questions, and make purchase decisions in real-time This integration enhances the transparency and credibility of the online shopping experience,
9 as customers can witness the product's features, quality, and performance firsthand The subjects selected in this research are Shopee and Lazada
The integration of livestreaming in social commerce and e-commerce offers a dynamic and engaging approach to online shopping It harnesses the power of real-time interactions, social influence, and personalized experiences to drive customer satisfaction and increase sales By leveraging livestreaming, businesses can create a unique and immersive shopping environment that combines the convenience of online retail with the interactive and social elements found in traditional brick-and-mortar stores.
Variables definition
Technology factors are vital in providing a personalized customer experience and smooth interaction besides enterprises' innovative sales management tracking tools This study will focus on six sub-criteria: Content Delivery System, Artificial Intelligence technology, Filters in search engines, Connecting devices, Sales management system, and Interface, as shown below a Content Delivery System (CDN System) (C7)
Content Delivery System (CDN system) is suggested to affect the quality of video streaming services According to Cisco (cited by Da Silva et al., 2020), video traffic is projected to make up over 82% of internet traffic by 2022, with live video growing 15- fold to 17% However, necessary upgrades to core network capacity are often not made due to high costs, leading to issues with the quality of experience (QoE) and fairness as servers and network links become overloaded Content Delivery System (CDN) can be implemented with other techniques to improve QoE and customer satisfaction, especially for mobile content It can also decrease latency and save costs for SMEs by integrating with more network providers (Shabrina et al., 2020) Besides, it will create a smooth experience and keep connecting long-time with many end users (Da Silva et al., 2020) b Artificial Intelligence technology (AI technology) (C8)
The increasing use of artificial intelligence (AI) facilitates enterprises to deliver convenience, personalized content, and exceptional customer experiences (C L Wang,
2021) It has primarily reshaped consumer-brand interactive relations and enhanced the shopping experience with portable and embodied devices and highly interactive virtual connections (Flavián et al., 2019) Additionally, (Hue et al., 2022) stated that the application of Artificial Intelligence that helps analyze the tastes and interests of buyers based on previous searches and transactions provides personalized recommendations associated with an increased likelihood of buyers making a decision purchase Moreover, other things, like chatbots, virtual assistants, and live chat, are innovative tools that optimize customer buying experiences by providing immediate responses without human intervention c Sales management system (C9)
Based on sales management system information published on Shopee, Lazada, and TikTok, each platform offers sales management systems that allow firms to track orders, delivery, and customer responses quickly (Lazada University, 2021; Shopee Seller Education Hub, 2022; TikTok Shop Academy, 2022) They also offer promotion support, chatbot assistants, inventory and delivery management, data security, and performance analysis reports Sales performance analytics tools help enterprises improve their sales performance and marketing activities, including live streaming (Berman & Israeli, 2022; Shaytura et al., 2017) d Connecting devices (C10)
Findings from Camilleri & Falzon (2021) indicated that customers found it easy and straightforward to use their smart TV, smartphone, or tablet to access streaming services Additionally, Johnson et al (2018) suggested that only clicking the "live" button on Facebook will automatically activate your computer's camera and microphone and start streaming live video easily Following two theses were mentioned, devices whose connection is easy and friendly for people is the factor that impacts the rate of choosing, using, and watching livestream videos e Filter in search engine (C11)
Neill Michael (2020) stated that Shopee's search engine has filters that allow buyers to find more relevant items based on categories, seller locations, and price ranges Therefore, customers are provided with more accurate recommendations based on their previous search and purchase history The convenience of searching indirectly affects
11 the choice and use of an application platform, leading to the increased time spent on the platform and higher conversion rates for marketing activities such as live streams, ultimately attracting more customers to online shopping f Interface (C12)
Customers' satisfaction with livestream shopping is positively and significantly related to the information and usefulness that belongs to the interface factor The interface lets them quickly access detailed information such as products, stores, prices, and shopping recommendations (Phoon Rou Yu, 2022) Besides, consumers can comment to ask for feedback and gift-giving with high interaction with live streamers in real-time (Saffanah et al., 2022a) Furthermore, UI (user interface) is an interface design that focuses on the attractiveness of an interface, effective color choices, and other factors that make the e- commerce web interface more appealing It is stated that an attractive and elegant design of the User Interface (UI) develops an emotional bond with the user Typically, the UI will be applied or completed after the UX by deciding the layout design, logo, colors, font, and other things to beautify shopper's e-commerce online (Pratama & Cahyadi,
Pertaining to the report Reputa (2021), user interface (UI) design and user experience (UX) design together contribute to the success of an online platform, as 12 percent of Vietnamese shoppers refuse to shop on e-markets due to technical errors and bad UI/UX design Shopee replaced Lazada as the dominant mobile application due to Lazada's poorly designed look
Operating costs are any expenses that a business incurs while running its business Operating costs can be direct costs or indirect costs Regardless of the type of expenses, managers, business owners, and anyone involved in running a company must carefully consider those expenses This study will focus on two sub-criteria: Compatibility and Investment costs a Compatibility (C13)
Evaluation of streaming platform compatibility and performance identifies limitations such as resolution, bandwidth requirements, and network stability (Wongsunopparat & Deng, 2021) Compatibility is always discussed, including factors such as video quality,
12 audience engagement features, monetization options, and convenient social media integration So we're mindful of streaming platform compatibility (Y Li et al., 2021) b Investment costs (C14)
Discuss the different cost components involved in setting up and operating a video-on- demand streaming platform This could include infrastructure costs, content acquisition, licensing fees, development and maintenance expenses, marketing and promotional costs, personnel costs, and other relevant expenditures, analyzing the potential revenue streams associated with video-on-demand services The above analysis helps to understand the financial risks and opportunities related to investing in a streaming platform (Q Wang et al., 2022)
The role and emotions of live streamers (the live streamer as the seller, influencer) and other relations (Third-parties, Opponents, Platform providers) have impacted consumers for purchasing and re-purchasing FMCG products This study will focus on four sub-criteria: Third-parties, Streamers, Opponents, and Platform providers a Third parties (franchisee, delivery party) (C15)
Franchising literature suggests that a combination of fixed fees and royalties is needed to control the bilateral moral hazard problem and ensure that both parties have sufficient incentives to contribute to the system's growth (Barua et al., 1999) Franchising is an alternative to building "chain stores" to distribute goods that avoid the investments and liability of a chain The franchisor's success depends on the franchisees' success, who have a greater incentive than a direct employee because they have a direct stake in the business (Arcot, 2019)
According to the features of Shopee and Lazada, enterprises can choose and activate the appropriate delivery method, including enabling or disabling the COD/Non-COD (Cash on Delivery/Non-Cash on Delivery) payment method for all or each product Colla & Lapoule (2012) found that delivery time affects customer satisfaction In the event of failure to provide fast delivery, consumers may abandon an online shopping
13 platform and live stream services (Zheng et al., 2020) Therefore, this research holds that delivery parties are crucial elements of live-streaming commerce b Streamers (sellers, KOL, KOC) (C16)
According to Zhou & Tian (2022), a streamer's direct interaction with viewers and accumulation of followers significantly positively affect the number of products sold Streamers share similarities in their ability to interact with and respond to customer needs, thus increasing customer retention rates (Ma, 2023) Streamers also serve as a third-party evaluators for enterprise products, providing reviews and social influence in the field of livestream shopping, thereby encouraging consumers to make purchases (Y
Results overview
In this study, Fuzzy AHP and TOPSIS methodologies were proposed for appraising criteria to advocate the livestream platforms for the FMCG field in the Vietnam market
In addition to the author group's understanding, no one currently conducts this topic using the Fuzzy AHP-TOPSIS methodology The study was carried out by quantitative research method, conducted through direct interviews and detailed questionnaires After analyzing data, the results indicated that Shopee Live and TikTok Live belong to the top 2 in total four alternatives were selected, so the recommendations for FMCG firms related to a plan to marketing strategies about livestream activities in the Vietnam market
RESEARCH METHODOLOGY
Theoretical foundations of an integrated model Fuzzy AHP - TOPSIS
Zadeh introduced the fuzzy set theory 1965 to represent abstract concepts semantics, and uncertain information such as young, fast, high-low, risky, warm, , and equal math concepts prove and nowadays (Zadeh, 1965) They have been developed and improved over time and are now used in many areas, such as optimizing multi objective problems and making multi-criteria decisions (Bajpai et al., 2010; Chen et al., 2011; T C Wang
& Chen, 2011) A fuzzy set is a class of objects with a wide range of membership grades
A membership (characteristic) function assigns a degree of membership ranging from zero to one to each object in such a set The notions of inclusion, union, intersection, complement, relation, convexity, and so on are extended to such sets, and various properties of these notions are established in the context of fuzzy sets A separation theorem for convex fuzzy sets is proved in particular without requiring that the fuzzy sets be disjoint
Assume that K is a collection of objects presented by x, a fuzzy set β in K is a set of ordered pairs defined as shown: β = {(𝑥, 𝜇 𝛽 (𝑥)|𝑥 ∈ 𝐾} where 𝜇 𝛽 (𝑥) is the membership function of x in β, which maps X →{0, 1} As the membership value of 𝜇 𝛽 (𝑥) gets closer to unity, it will be more certain that x belongs to β
As an example, known as set Young = {𝑥 ∈ 𝐾|𝑎𝑔𝑒 (𝑥) ≤ 20}, then 𝝁 𝐘𝐨𝐮𝐧𝐠 (𝒙) = {𝟏: 𝒂𝒈𝒆(𝒙) ≤ 𝟐𝟎
Lotfi Zadeh developed fuzzy logic as an extension of Boolean logic in 1965, based on the mathematical theory of fuzzy sets, a generalization of classical set theory (Zadeh,
1965) With a degree as a concept for validating a condition and allowing it to be in a
23 state other than true or false, fuzzy logic lends excellent flexibility to reasoning, allowing it to account for inaccuracies and uncertainties (Dernoncourt F, 2013) Fuzzy logic is now used in various fields, including aerospace engineering, automotive traffic control, business decision-making, industrial processes, artificial intelligence, and machine learning
According to literature habits, we will refer to fuzzy sets instead of subsets A classical set is also called a clear set, as opposed to a vague set, and classical logic is also called Boolean logic or binary logic Regarding decision-making by Boolean logic, there are only two possibilities: true or false However, this approach may not be optimal for uncertain situations and insufficient information Fuzzy logic has been used to manage these conditions When making a choice, fuzzy logic assigns a degree of truth between [0,1] (1 being true and 0 being false) instead of Boolean logic, which sets a 1 or 0 for true or false
Picture 3.1 The example to prove the difference between
The Fuzzy triangular number is usually used in the fuzzy study, and 𝛽̃ can be defined by a triplet (𝛽 𝐿 , 𝛽 𝑀 , 𝛽 𝑈 ) Its mathematical and graphic concepts are shown in Eq (3.1) and Fig.3.1
Equation 3.1 The Fuzzy triangular number
Figure 3.1 Graphic concepts of Triangular Fuzzy Number
Table 3.1 Language variables and corresponding fuzzy numbers
Equally important 1 (1,1,3) (1/3, 1/1, 1/1) The two criteria have the same contribution
Criterion X is selected, more interested than criterion Y in contributing
Strongly more important 5 (3,5,7) (1/7, 1/5, 1/3) Criterion X contributes more than criterion Y
Criterion X contributes much more than criterion Y, clearly shown in specific cases
More important than possible, criterion X can suppress criterion Y
3.1.4 Fuzzy AHP Method - Fuzzy Analytical Hierarchy Process (F-AHP)
The analytic Hierarchy Process (AHP) is a decision support method developed to complete problems by breaking the solution problems, grouping them, and then arranging them into a hierarchical structure To obtain priority criteria, this method uses a comparison of criteria paired with a measurement scale that has been determined The main input of the AHP method is the perception of experts or experts, so there is a factor of subjectivity in retrieval decisions This method also takes into account data validity with inconsistency limits However, considerable uncertainty and doubt in giving an assessment will impact the accuracy of the data and the results obtained Based on this, further theory was developed, namely, the Fuzzy Analytic Hierarchy Process method Fuzzy Analytic Hierarchy Process is a Analytic Hierarchy Process (AHP) method developed with fuzzy logic theory Fuzzy AHP method is used similarly to the method of AHP It is just that the Fuzzy AHP method sets the AHP scale into the fuzzy triangle scale to be accessed priority
The method used to evaluate the joint venture must be quantitative and reflect the uncertainty in the expert judgment Therefore, the integration direction between AHP quantitative method and fuzzy theory is suitable Which: Quantitative AHP method was proposed by Satty in 1977 to solve unstructured problems in economic, social, and management science activities It provides a simple, yet theoretically grounded, multi- criteria decision-making method for evaluating alternatives It helps to classify the relative priority of the proposed alternatives based on a scale This scale is based on the judgment of the decision maker and the importance of those judgments, as well as the consistency in comparing alternatives in the decision-making process Currently, the application of the AHP method can be found in many different fields, including contractor selection systems, manager selection during project implementation, cost allocation, and human resource allocation Fuzzy logic together with fuzzy set theory, fuzzy measure theory are models of collecting and processing uncertain information (complex, uncertain, inaccurate and volatile information) of the fuzzy theory The fuzzy theory has been around since 1965 when Lotfi Zadeh, a professor of systems theory at the University of California, Berkeley, published the first paper on fuzzy set theory in
26 the US Since then, the development history of fuzzy theory follows the order of invention in the US, construction to completion in Europe, and wide application in the Japanese market The Fuzzy Analytic Hierarchy Process method can be divided into two methods:
The first method: the steps are similar to the traditional AHP method, except that the scale to evaluate the importance in the pair comparison process is not the natural numbers from 1 to 9 but the real numbers blur Calculations will be replaced with fuzzy operator formulas However, calculating the data consistency coefficient is still based on the pairwise comparison matrix of the traditional method scale Using a fuzzy scale in the F-AHP method has reflected the unclear estimation of experts in the pairwise comparison process The scope of application of method 1 is similar to the traditional AHP method, i.e., selecting the optimal solution
The second method: is a combination of the AHP quantitative method in determining the weight vectors (can apply the fuzzy numerical scale as the first method or use the scale from 1-9 of the AHP method) traditional) and fuzzy evaluation matrix based on fuzzy set theory The end result is an evaluation based on the fuzzy set Scope of application of method 2 to evaluate one alternative, one project within the fuzzy set The evaluation model is passed through the data processing steps, including:
At this point, the decision maker needs to assess the importance of each criterion to the higher-level standard in the hierarchy using the pairwise comparison method To illustrate this pairwise comparison, follow these steps: Suppose we want to compare a set of n factors denoted 𝐴 1 , 𝐴 2 … A represented by a matrix compares pair A of size n x n, containing element 𝑎 𝑗𝑖 If the weights of the elements of matrix A are 𝑎 𝑖𝑗 , then the following matrix will represent pairwise comparisons In a pairwise comparison matrix, one value of the comparison matrix is the inverse of the other half that is symmetrical about the main diagonal of the matrix, i.e., 𝑎 𝑗𝑖 = 𝑎 𝑗𝑖 - 1 (i in rows, j in columns)
Equation 3.2 The formula of pairwise comparison matrix
The pairwise comparison matrix normalization is done by dividing each element in each column of the matrix by the corresponding sum value This will provide meaningful comparisons between elements in the hierarchy The normalized matrix has the following form Eq 3.3:
Equation 3.3 The formula of the pairwise comparison matrix normalization
Calculate the fuzzy weights for each criterion by aggregating the fuzzy normalized matrix (Eq 3.5) The aggregation can be done using fuzzy arithmetic operations, such as fuzzy multiplication and fuzzy addition (Eq 3.4)
Equation 3.4 The formula of the fuzzy geometric mean
Equation 3.5 The formula of the fuzzy weights
● 𝑝̃ 𝑗 : Fuzzy weights of the jth element, with 𝑝 𝑗 = (L𝑝 𝑗 , M𝑝 𝑗 , U𝑝 𝑗 ) L𝑝 𝑗 , M𝑝 𝑗 and
U𝑝 𝑗 representing the lowest, middle, and highest values of the Fuzzy weights of the jth element
Fuzzy weighted defuzzification because 𝑤̃ is still a fuzzy number, so we proceed to defuzzify by the center of area method according to the following formula:
Equation 3 6 Calculate Fuzzy weighted defuzzification
The obtained values are normalized according to the following formula:
● 𝑀 𝑖 is the real weight of criterion i
● 𝑁 𝑖 is the total number of criteria
Consistency Ratio Calculation: Calculate the consistency ratio to assess the consistency of the pairwise comparisons The consistency ratio is typically calculated using the eigenvalue method, which involves finding the principal eigenvector and determining the consistency index
Consistency Index (CI): Calculate the consistency index using the formula (Eq 3.8):
Where λmax is the principal eigenvalue and n is the number of criteria
Random Index (RI): Look up the random index value corresponding to the size of the comparison matrix The RI values are pre-determined and can be found in AHP literature or tables
Consistency Ratio (CR): Calculate the consistency ratio using the formula (Eq 3.9):
The judgments are considered sufficiently consistent if the CR value is below a certain threshold
• Calculate the overall fuzzy weights of alternatives at each level of the hierarchy
• Aggregate the fuzzy weights through fuzzy arithmetic operations
• Rank the alternatives based on their overall fuzzy weights
Research process
3.2.1 Overview diagram of the research process
Figure 3.2 Diagram of the steps
Selecting a live-streaming platform in the FMCG field, the model used is Fuzzy AHP - TOPSIS, and follow these 11 steps:
● Step 1: Build a hierarchical structure diagram consisting of 3 levels:
Level 1: Objective of the problem
Below, the authors show the specific Hierarchical Structure Diagram The selected options for research correspond to the table below:
The four alternatives are the currently popular Livestream platforms, which are considered to have great potential for growth in the e-commerce market as well as the online shopping market in general in the FMCG industry These livestream platforms have a high level of recognition, the experts surveyed have all approached and used them, so they have the experience to evaluate
The selected alternatives for research correspond to the table below:
● Facebook Live: Facebook Live has quickly become famous for brands and celebrities hosting live streams Based on data published in Meta's advertising resources extracted from Facebook had 70.40 million users in Vietnam at the beginning of 2022 (Simon Kemp, 2022) As a result of its livestream features, it is one of three platforms that have been popular with 31.9% of users (Huy Vu,
2023) So, firms in all fields can use it to sell their product directly to consumers
● TikTok Live: TikTok Live is a TikTok feature that allows users to broadcast material and communicate with followers directly with endless sharing time Creators will have more options to create more authentic, engaging content with this new feature, boosting their ability to communicate directly with account followers It is one of TikTok's endeavors to suit Vietnamese users' increasingly broad creative and connection demands TikTok Live was placed to the test with specific accounts in July 2020, and it was initially successful in distributing several excellent campaigns in Vietnam According to (Nha Tu Ly, 2023), the percentage of TikTok users in Vietnam went from 49% in 2021 to 62% in 2022, implying that 6 out of 10 Vietnamese people use TikTok to update news, create, and share content
● Shopee Live: Shopee Live is a feature of Shopee that allows users to perform
Livestream to sell products available at their Shopee store This feature has no limited time and place or time of implementation Shopee sellers, when conducting livestream, will flexibly choose to optimize online sales efficiency Specifically, Shopee Live allows sellers to record videos and broadcast live (real- time) on the Shopee application connected to the product page, enabling viewers to purchase goods while watching the Livestream directly Users can use the livestream capability to engage with sellers, overcoming geographical barriers (Thinh Truong, 2022)
● Lazada Live: Alibaba is the parent firm of the e-commerce site Lazada Lazlive is a feature of Lazada allowing sellers to carry products directly by live streaming to customers The continued advancement of AI technology enables the presentation of the most appropriate streamed products and the suitable file for prospective clients In addition, Lazada's data generates statistics and forecasts regarding customers' needs for product search, enabling sellers to make timely modifications The number of daily visits quadrupled, the number of orders tripled, and the number of consumers using the Lazada application climbed 2.5 times over the same period, according to Nguyet Di (2022) Besides, LazLive - compared with 2020, this livestream channel saw 2.5 times as many viewers (Cecilia Li, 2020)
● Step 2: Construct a pairwise comparison matrix Fuzzy
● Step 3: Calculate Fuzzy weights for each criterion
● Step 4: Defuzzify the Fuzzy weights
● Step 5: Convert (𝒑̃ 𝒋 ) to weighted form
● Step 6: Build the decision matrix
● Step 7: Normalize the decision matrix
● Step 8: Build a normalized decision matrix with weight F:
● Step 9: Determine the positive ideal solution (𝑨 + - PIS) and the negative ideal solution (𝑨 − - NIS)
● Step 10: Calculate the distance of each option relative to PIS and NIS (𝒅 + &
● Step 11: Calculate the proximity to the ideal solution (𝐶 𝑖 ) and rank the alternatives
The study was carried out from step two to step eleven according to the formula of parts 3.1.4 and 3.1.5.
Statistics of survey subjects
This research picked 11 experts that knew marketing strategies, specifically in the e- commerce industry and livestream activities in Vietnam The direct interview method was applied throughout the questionnaire; answers were recorded for analysis Using the interview method, the authors can explain questionnaires clearly and instruct the interviewees on answering precisely to guarantee qualified input The collected data will be inspected using the Fuzzy AHP - TOPSIS model
PERFORMANCE RESULTS
The results of the study of the weights of the factors by Fuzzy AHP
Using the Fuzzy AHP method combined with the TOPSIS method, the authors conducted a survey that obtained more systematic and reasonable results for the participants who purchased through tracking online sales, especially useful for businesses in the FMCG industry that use carry-through livestream platforms, namely
Facebook Live, Shopee Live, TikTok Live, Lazada Live So allows the above four platforms to be sorted and ranked in order of priority in online sales by livestream method for the FMCG industry
The ranking of main criteria according to 𝑵 𝒊 is represented such that C6 > C5 > C4 >
C3 > C2 > C1 It turns out that Customer services is the most vital factor in choosing a live-streaming platform It is mentioned in detail in the table below:
Table 4.1 Pairwise comparison of main criteria (C1 - C6)
Table 4.2 Weighted values of crucial criteria (C1 - C6)
To test the consistency of the model after weighting, the lamda value and the CI value is found by the equation (3.8) Since this model includes six criteria and 20 sub-criteria, the RI value was found in the table (3.1) The CR value of the model is consistent as it is C10 > C9 > C7 > C8 > C11, showing that Interface is the most weighted sub-criteria and Filters in search engine is the lowest weighted sub-criteria See the table below:
Table 4.4 Pairwise comparison of sub-criteria of C1 - Technology
Table 4.5 Weighted values of sub-criteria C1 - Technology
The CR value of the model is consistent as it is C13, showing that Investment costs are the most weighted sub-criteria and Compatibility is the lowest See the table below:
Table 4.7 Pairwise comparison of the C2 - Operating costs
Source: Author's compilation. Table 4.8 Weighted values of sub-criteria C2 - Operating Costs
The CR value of the model is consistent as it is C16 > C17 > C15, showing that Platform Providers are the most weighted sub-criteria and
Third parties (franchisee, delivery party) are the lowest See the table below:
Table 4.10 Pairwise comparison of C3 - Partnership Relations sub-criteria
Table 4.11 Weighted values of sub-criteria C3 - Partnership Relations
The CR value of the model is consistent as it is C19, showing that Application is the most weighted sub-criteria and Popularity is the lowest-weighted sub-criteria See the table below:
Table 4.13 Pairwise comparison of C4 - Number of users sub-criteria
Source: Author's compilation. Table 4.14 Weighted values of sub-criteria C4 - Number of users
The CR value of the model is consistent as it is C21 > C22, showing that Entertainment (Gamification/Shopper) is the most weighted sub-criteria and Product discount is the lowest See the table below:
Table 4.16 Pairwise comparison of C5 - Promotion sub-criteria
Table 4.17 Weighted values of sub-criteria C5 - Promotion
The CR value of the model is consistent as it is C25 > C24, showing that Warranty, Refund & return is the most weighted sub-criteria and
Payment is the lowest See the table below:
Table 4.19 Pairwise comparison of C6 - Customer services sub-criteria
Table 4.20 Weighted values of sub-criteria C6 - Customer services
The CR value of the model is consistent as it is