group 3 scientific research methods tiktoks influence on genzs direct purchasing behavior in vietnam

Introduction of the topic and rationale for topic selection.In today''''s era of rapid development in Information Technology 4.0, numerous newopportunities are emerging for businesses opera

GROUP 3

SCIENTIFIC RESEARCH METHODS

“Tiktok's influence on GenZ's directpurchasing behavior in Vietnam”

Mentor: Luong Khanh Huyen

Member implementation:

- Leader: Tran Le Tu Anh - QS180007- Member: Doan Nhat Tan - QE180142- Member: To England - QE180017

- Member: Nguyen Minh Hang - QS180103

Quy Nhon, 2024

2 Introduction:

2.1 Introduction of the topic and rationale for topic selection.

In today's era of rapid development in Information Technology 4.0, numerous newopportunities are emerging for businesses operating in the fields of communication and sales.In addition to traditional marketing advertising methods, most businesses nowadays areleveraging online marketing tactics, utilizing the vast traffic on social media platforms, andemploying algorithms and tools to promote marketing communication activities through theInternet more effectively to attract and sell to customers.

Furthermore, the emergence of the COVID-19 pandemic has acted as a catalyst, driving thegrowth and prevalence of direct shopping activities E-commerce platforms such as Shopee,Lazada, Tiki, and most notably TikTok have been established and are increasingly

developing Although TikTok has only recently expanded into the realm of sales, its growth isquite impressive TikTok is a social media platform that allows users to create content in theform of videos and use visual and sound effects Despite being relatively new, TikTok hasfirmly established its position and become the most beloved app among young people due toits novelty, unique content, and user-friendly interface According to collected data, Vietnamranks sixth in the top 10 countries with the largest number of TikTok users in the world, withapproximately 49.9 million users According to DataReport, as of February 2023, there wereapproximately 77.93 million Internet users in Vietnam Thus, over 64% of Internet users inVietnam are using TikTok.

In addition to entertainment, TikTok also stimulates consumers to discover new products andbrands Half of TikTok users have admitted that they are aware of more brands and productswhen watching TikTok Half of TikTok users admit that they have discovered new products orbrands while using the platform, and 89% have made unplanned purchases after watchingvideos on TikTok This is also the highest figure among all social media platforms Therefore,we can see that TikTok is a promising environment for businesses and sellers to promote theirbrands and effectively reach a large number of target customers.

Recognizing the development and popularity of TikTok in Vietnam, where the user base isgradually dominating, the research team has decided to select the topic "The Influence ofTikTok on the Direct Shopping Behavior of Gen Z in Vietnam" to analyze and evaluate theimpact of TikTok on the direct shopping behavior at Gen Z stores in Vietnam.

2.2 Research Objectives2.2.1 Specific Objectives

known as Gen Z).

- Investigate the benefits of shopping on TikTok.

- Explore the demographics (gender, age, education, occupation) of the customer baseon TikTok.

- Measure the interest of customer groups in products and services, aiding businessesand sellers in devising effective product promotion strategies.

2.2.2 Research Questions

- Does TikTok truly influence the purchasing behavior of Gen Z?- What factors determine the purchasing behavior of young people?- What are the solutions to implement and develop these factors?

2.2.3 Research Subjects & Scope

- Subjects: Gen Z (aged 15 to 27).- Research space: in Vietnam.

- Research period: from early 2022 to late 2023 (over 2 years).

worldly-oriented This might be related to the fact that Gen Z is by far the most diversegeneration, that they experienced more challenging financial circumstances growing up, thatanti-discrimination laws are becoming increasingly problematic, and that globalization isaccelerating at an alarming rate (Stukey, 2016) Generation Z is the first generation born intothe age of social media and technology, whereas previous generations have had to adjust.Cultural variations affect how Generation Z behaves when returning, and from Asia toEurope, the cultures of each nation have an impact on how Generation Z returns and acceptsvarious return regulations (Serravalle et al., 2022) Gen Z's purchasing habits are positivelyinfluenced by social media influencers, particularly when it comes to clothing and cosmetics(Pham et al., 2021) TikTok is a social networking site that is expanding quickly in

Retailers and manufacturers may better grasp the Gen Z consumer market and create effectivemarketing strategies with the aid of this research.

3.1.2 Shopping Behavior:

Philip Kotler¹ states that "consumer behavior is the investigation and study of howindividuals, groups, and organizations select, buy, use, and dispose of goods, services,ideas, or experiences to satisfy needs." According to David L Loudon and Albert J.Della Bitta, "consumer behavior is defined as the process of decision-making andactions and behaviors in the practicality of individuals when perceiving, shopping,using, or disposing of goods and services."

According to the American Marketing Association, consumer behavior is the result ofthe interaction between environmental stimuli and human perception and behavior;this interaction changes the lives of consumers From this definition, consumerbehavior is considered from an interactive perspective, including the mutual influencebetween individuals and the external environment.

"Deep commitment to repurchase, warranty a preferred product or service in thefuture" is another definition of consumer behavior Therefore, having knowledge ofthe determining factors in "customer retention" can help managers focus on keyfactors that lead to customer behavior It has been demonstrated that quality, perceivedvalue, and satisfaction can all predict behavioral intentions (Petrick, 2004).

3.1.3 Online Shopping Behavior:

Li and Zang's (2002) study defines online shopping behavior as the act of making purchasesof goods or services via the Internet It is also referred to as online purchasing behavior orinternet shopping behavior.

Philip Kotler¹ defines consumer behavior as the set of behaviors people engage in during thewhole purchasing process, from identifying needs to completing a purchase and beyond.Thus, "Consumer behavior is how individuals decide to use their available resources (time,money, effort) for consumer products." [6] According to the definitions given above, "Onlineshopping behavior of consumers refers to the actions of consumers related to purchasing andconsuming products or services in the online environment of the Internet and electronicmedia."

¹"PhilipKotlerisaProfessorofMarketingatNorthwesternUniversity.HeearnedhisdoctorateatMIT(MassachusettsInstituteofTechnology).HeistheauthorofthetextbookMarketingManagement:Analysis,Planning,Implementation,andControl.ProfessorKotlerisanactive

3.1 4 What is the Tiktok?

Users of the well-known social networking site TikTok can make, view, and share briefmovies covering a wide range of subjects Considering that today's kids tend to be succinctand indolent when reading, this application is "addictive" right away and has "huge"interactive features This app has drawn a lot of users worldwide, particularly fromGeneration Z, and has become a global sensation.

TikTok has gained popularity among young people in the 18–24 age range Influencers onTikTok have grown to be a potent tool for promoting products The purpose of this research isto look at how Generation Z in Quy Nhon is influenced by TikTok influencers when makingpurchases.

In Vietnam, TikTok is a well-known social networking site that is often used Ninety-fivepercent of students questioned use TikTok out of the many social media platforms that arenow in use in Vietnam, including Facebook, Zalo, YouTube, Twitter, and Instagram The2020 Data Report, claimed that TikTok had 800 million active users globally and is rankedninth among well-known social media platforms—beyond sites like LinkedIn, Twitter,Pinterest, and Snapchat—and our research findings are consistent with that report It's clearthat TikTok, which was only introduced in 2016, has drawn a sizable user base from both theVietnamese youth and around the world.

The amount of time Generation Z spends on this social media network every day furtherdemonstrates its appeal According to the poll, 34.3% of respondents said they spend betweentwo and four hours a day on social media, and 33.8% said they spend between four and sixhours a day on the platform It has been discovered that Gen Z uses social media for betweenone-sixth and one-fourth of their everyday time Remarkably, 22.5% of pupils said they usedsocial media for more than six hours each day.

3.1.3,5 Review products in Tiktok

TikTok is committed to providing its users with an enjoyable and secure experience Everyuploaded video goes through a review process to do this before it is made public Forexample, TikTok banned about 92 million videos in the first quarter of 2023 due toCommunity standards violations; the majority of these videos dealt with minor safety issuesand unlawful behaviors.

Many reviewers these days advertise, evaluate goods and services, and give visitors thoroughinformation To provide viewers and kind people with a true and comprehensive

understanding, the reviewer will include comprehensive information about the features,

Additionally, they will exude confidence.

3.1.4 The Popularity of Online Shopping among Gen Z Today Mentioning somechannels: Shopee, Lazada, Amazon, Why TikTok is a strong shopping channel.

Approximately 72% of Gen Z has a habit of shopping online According to various studies,up to 85% of Gen Z research products through social media platforms, e-commerceplatforms, or websites, and 72% of them are willing to spend more on shopping in their dailylives.

Among the 72% of Gen Z who shop online through e-commerce platforms, especially theShopee platform (91.5%), other popular e-commerce platforms such as Tiki, Lazada,Facebook, or store websites are also chosen with a rate of over 20%.

According to surveys, 58% of Vietnamese consumers said they would continue to shop forgoods on e-commerce platforms due to convenience Gen Z is an important customer group,so many businesses "care" and offer many incentives to this consumer generation.

● TikTok captures the right user preferences:● TikTok uses intelligent algorithms.● TikTok is fun and creative.● TikTok videos are easy to create.● TikTok always has new hot trend trends.

● TikTok allows you to use music without copyright infringement.● TikTok brings fame potential.

3.1.5.The impact of TikTok on the shopping behavior and habits of Gen Z

The power of TikTok largely stems from its short video format focused on entertainment,educational content, and raw information created by a large user base According to researchconducted by Dj Safarova and Bowes (2021), when users feel happy while using the app, theyare more likely to make impulsive purchases as it encourages them to bypass the evaluationstage of decision-making - the process that influences the buying process Another studyconducted by Fadillah and Kusumawati (2021) suggests that after viewing electronicword-of-mouth or eWOM, consumers often engage in unplanned or impulse-buyingbehaviors The use of TikTok serves as a stimulant, leading to impulsive shopping.On TikTok, the shopping feature means that creators can add a shop tab to their profile.Unlike other e-commerce platforms like Lazada, Shopee, and Tiki, which primarily presentimages, TikTok provides a platform where Key Opinion Consumers (KOCs) and Key

products without the need to search; they can complete the process directly on TikTok.Additionally, creators can tag products in their unpaid posts For example, when adding avideo to the platform, products can be tagged Viewers can then click on them and be directedto the relevant destination page.

The high level of interaction on TikTok is beneficial for those who want to sell products.TikTok has made it easy for you to share your process of creating a product or providing aservice You can take users on a journey with you, which is crucial in driving higher levels ofinteraction.

3.2 Forms of purchases through TikTok3.2.1 Via KOL's Bio link

"Link" is gradually becoming popular among many celebrities who use social mediaplatforms like Instagram and TikTok Individuals who want to add links to their profiles, alsoknown as bios, on Instagram cannot do so due to the restriction of "Only one link allowed onInstagram." Therefore, the emergence of Bio links has helped users solve this problem Withthe presence of a Link Bio, consumers can easily find the products they desire through thelinks embedded in the Bio.

Currently, the majority of TikTokers/KOLs are considering clothing and cosmetic products byusing the Bio link to direct products to e-commerce platforms such as Shopee, Lazada, andTiki When customers click on the link, TikTokers/KOLs receive commissions from thesuppliers.

3.2.2 Tiktok Shop

TikTok shop allows individual users and businesses to sell directly through their tiktokaccounts, create and manage their own stores on TikTok conveniently TT gives users a wayto buy Shop right at the TT app instead of having to go through more clicks than the TT shop,the TT store can let viewers through videos of tiktokers assign the purchase link below to buyand pay Payment methods right on the app, no need to go back and forth to online paymentapplications such as momo, banking apps, customers do not need to exit the app and openanother app It can be said that this is both a place for users to shop with a variety of products.It is also a "fertile land" for businesses to advertise their services to increase visits.

3.2.3 Youth

cooling down, encompassing individuals born between 1997 and 2012 This generation grewup amidst the internet boom, so most of them are accustomed to shopping online Therefore,the emergence of online shopping habits has also played a part in shaping the habits ofGeneration Z According to a survey by Cotton Incorporated Lifestyle Monitor in 2021,online shopping saw a significant increase during the pandemic This translates to a rapidgrowth in the decision to purchase products online from that time until the present.

3.3 Factors influencing the purchasing decisions of young people

Concept: These are the fundamental factors that influence people's purchasingdecisions, taking into account both internal (psychological) and external factors in theprocess of buying a product or service.

Businesses and organizations need to study the consumer behavior of the Gen Zgeneration to answer questions such as: Who are their customers? What do they wantto buy? Why do they buy that product? When and where do they buy?

Product quality is a concept that evaluates the level of completion and meets therequirements and expectations of customers It includes factors such as features,reliability, performance, design, durability, safety, convenience, and externalappearance of the product This is also a very important factor that influences 60% ofconsumer purchasing decisions If a product ensures quality and satisfies the needs ofconsumers, they will not hesitate to recommend it to others Therefore, businesses andmanufacturers need to focus on product quality when delivering products tocustomers.

Product price: When a business offers a lower price to compete with competitors, itmeans that revenue and profit will decrease, but with a large number of products sold,this is not a concern (in other words, prioritizing volume as profit).

Cultural differences: Each country has a different shopping culture, habits, andshopping needs.

Customer service: In addition to product quality, customer service is also a

determining factor in the long-term loyalty of customers to a business If a product hasgreat quality but poor customer service, customers will not want to come back.

Factors related to buyer characteristics

According to Kotler & Levy, consumer behavior refers to the specific actions of anindividual when making decisions regarding the purchase, use, and disposal of

during the shopping and consumption process can significantly influence theirpurchasing decisions Factors such as brand awareness, personal values, productevaluations, social evaluations, and quality awareness can play a crucial role inconsumer behavior.

2 Interaction with the environment: Consumer behavior is dynamic and interactive asit is influenced by external environmental factors Elements such as advertising,influence from friends and family, information from the media, and past experiencescan impact consumer purchasing decisions.

3 Shopping, usage, and product disposal activities: Consumer behavior involves notonly the shopping process but also the usage and handling of products after purchase.Consumers may evaluate products based on their usage experiences and engage inbehaviors related to recycling, reusing, or disposing of products after use.These factors together contribute to a diverse and complex consumer behavior, andunderstanding them is important for businesses and organizations to effectively caterto the needs and preferences of their target consumers.

Cultural factors:

The cultural foundation of a country's territory: Every country's territory has its ownculture with unique characteristics The features of each culture will impact people'sperceptions in all aspects of life, including consumption-related behaviors.

Customs and traditions of the community: Typically, in a country's culture, there arecommunities with distinct customs and traditions These differences can stem fromvarious factors such as geographical differences, historical origins, ethnicities, etc.These varying characteristics also influence the consumption behaviors of individualsliving within those communities.

Beliefs and religions: Beliefs and religions deeply impact people's beliefs andperspectives on issues and objects Similar to culture, the characteristics of differentbeliefs influence consumer behavior in various ways.

Social factors: Social classes can be seen as a factor representing the income level ofconsumers, thus profoundly influencing consumer behavior such as criteria forpurchasing products and services, timing and frequency of spending, shoppinglocations, and payment methods.

Legal and political factors: In countries where the legal system is well-developed,laws play a significant role in governing human behavior, including consumer

decisions of consumers.

In terms of the frequency of purchasing fashion items, women tend to shop more oftenthan men.