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 direct purchasing 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 new

opportunities are emerging for businesses operating in the fields of communication and sales

In addition to traditional marketing advertising methods, most businesses nowadays are leveraging online marketing tactics, utilizing the vast traffic on social media platforms, and employing algorithms and tools to promote marketing communication activities through the Internet more effectively to attract and sell to customers

Furthermore, the emergence of the COVID-19 pandemic has acted as a catalyst, driving the growth 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 is quite impressive TikTok is a social media platform that allows users to create content in the form of videos and use visual and sound effects Despite being relatively new, TikTok has firmly established its position and become the most beloved app among young people due to its novelty, unique content, and user-friendly interface According to collected data, Vietnam ranks sixth in the top 10 countries with the largest number of TikTok users in the world, with approximately 49.9 million users According to DataReport, as of February 2023, there were approximately 77.93 million Internet users in Vietnam Thus, over 64% of Internet users in Vietnam are using TikTok

In addition to entertainment, TikTok also stimulates consumers to discover new products and brands Half of TikTok users have admitted that they are aware of more brands and products when watching TikTok Half of TikTok users admit that they have discovered new products or brands while using the platform, and 89% have made unplanned purchases after watching videos 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 their brands and effectively reach a large number of target customers

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

2.2 Research Objectives

2.2.1 Specific Objectives

known as Gen Z).

- Investigate the benefits of shopping on TikTok

- Explore the demographics (gender, age, education, occupation) of the customer base

on TikTok

- Measure the interest of customer groups in products and services, aiding businesses and 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)

3 Literature review

3.1 List of Theories/Perspectives/Controversies if Any

3.1.1 What is Gen Z?

Since human resources are regarded as an organization's most valuable asset, investing in them is crucial to achieving exceptional performance Since the development of management science, issues with broad organizational challenges have been connected to motivation and reward (Hansen et al., 2002) While Grace & Seemiller (2019) claim that members of Generation Z were born between 1995 and 2010, Grubb (2017) claims that they were born between 1998 and the 2010s This indicates that they were seven to twenty-one years old in

2017 Wood (2013) asserts that Generation Z possesses several exceptional traits, such as the capacity to adjust to a globalized society and emerging technologies Additionally, compared

to other generations, they are said to be more varied, socially conscious, and

worldly-oriented This might be related to the fact that Gen Z is by far the most diverse generation, that they experienced more challenging financial circumstances growing up, that anti-discrimination laws are becoming increasingly problematic, and that globalization is accelerating at an alarming rate (Stukey, 2016) Generation Z is the first generation born into the 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 to Europe, the cultures of each nation have an impact on how Generation Z returns and accepts various return regulations (Serravalle et al., 2022) Gen Z's purchasing habits are positively influenced 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 effective marketing strategies with the aid of this research

3.1.2 Shopping Behavior:

Philip Kotler¹ states that "consumer behavior is the investigation and study of how individuals, 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 and actions 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 of the interaction between environmental stimuli and human perception and behavior; this interaction changes the lives of consumers From this definition, consumer behavior is considered from an interactive perspective, including the mutual influence between individuals and the external environment

"Deep commitment to repurchase, warranty a preferred product or service in the future" is another definition of consumer behavior Therefore, having knowledge of the determining factors in "customer retention" can help managers focus on key factors that lead to customer behavior It has been demonstrated that quality, perceived value, 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 purchases

of goods or services via the Internet It is also referred to as online purchasing behavior or internet shopping behavior

Philip Kotler¹ defines consumer behavior as the set of behaviors people engage in during the whole 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, "Online shopping behavior of consumers refers to the actions of consumers related to purchasing and consuming products or services in the online environment of the Internet and electronic media."

¹"PhilipKotlerisaProfessorofMarketingatNorthwesternUniversity.Heearnedhisdoctorateat

MIT(MassachusettsInstituteofTechnology).HeistheauthorofthetextbookMarketing

Management:Analysis,Planning,Implementation,andControl.ProfessorKotlerisanactive

consultantformanycompaniesinmarketingplanningandinformationsystems.Hecurrentlyheads theMarketingDepartmentoftheManagementScienceInstitute."[7,p.11]

3.1 4 What is the Tiktok?

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

TikTok has gained popularity among young people in the 18–24 age range Influencers on TikTok have grown to be a potent tool for promoting products The purpose of this research is

to look at how Generation Z in Quy Nhon is influenced by TikTok influencers when making purchases

In Vietnam, TikTok is a well-known social networking site that is often used Ninety-five percent of students questioned use TikTok out of the many social media platforms that are now in use in Vietnam, including Facebook, Zalo, YouTube, Twitter, and Instagram The

2020 Data Report, claimed that TikTok had 800 million active users globally and is ranked ninth 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 clear that TikTok, which was only introduced in 2016, has drawn a sizable user base from both the Vietnamese youth and around the world

The amount of time Generation Z spends on this social media network every day further demonstrates its appeal According to the poll, 34.3% of respondents said they spend between two and four hours a day on social media, and 33.8% said they spend between four and six hours a day on the platform It has been discovered that Gen Z uses social media for between one-sixth and one-fourth of their everyday time Remarkably, 22.5% of pupils said they used social 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 Every uploaded video goes through a review process to do this before it is made public For example, TikTok banned about 92 million videos in the first quarter of 2023 due to Community standards violations; the majority of these videos dealt with minor safety issues and unlawful behaviors

Many reviewers these days advertise, evaluate goods and services, and give visitors thorough information 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 some channels: 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-commerce platforms, or websites, and 72% of them are willing to spend more on shopping in their daily lives

Among the 72% of Gen Z who shop online through e-commerce platforms, especially the Shopee 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 for goods 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 research conducted by Dj Safarova and Bowes (2021), when users feel happy while using the app, they are more likely to make impulsive purchases as it encourages them to bypass the evaluation stage of decision-making - the process that influences the buying process Another study conducted by Fadillah and Kusumawati (2021) suggests that after viewing electronic word-of-mouth or eWOM, consumers often engage in unplanned or impulse-buying behaviors 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 present images, 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 a video to the platform, products can be tagged Viewers can then click on them and be directed

to 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 a service You can take users on a journey with you, which is crucial in driving higher levels of interaction

3.2 Forms of purchases through TikTok

3.2.1 Via KOL's Bio link

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

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

3.2.2 Tiktok Shop

TikTok shop allows individual users and businesses to sell directly through their tiktok accounts, create and manage their own stores on TikTok conveniently TT gives users a way

to 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 buy and pay Payment methods right on the app, no need to go back and forth to online payment applications such as momo, banking apps, customers do not need to exit the app and open another 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 grew

up 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 of Generation 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 rapid growth 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 purchasing decisions, taking into account both internal (psychological) and external factors in the process of buying a product or service

Businesses and organizations need to study the consumer behavior of the Gen Z generation to answer questions such as: Who are their customers? What do they want

to 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 the requirements and expectations of customers It includes factors such as features, reliability, performance, design, durability, safety, convenience, and external appearance of the product This is also a very important factor that influences 60% of consumer purchasing decisions If a product ensures quality and satisfies the needs of consumers, they will not hesitate to recommend it to others Therefore, businesses and manufacturers need to focus on product quality when delivering products to customers

Product price: When a business offers a lower price to compete with competitors, it means 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, and shopping 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 has great 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 an individual when making decisions regarding the purchase, use, and disposal of

during the shopping and consumption process can significantly influence their purchasing decisions Factors such as brand awareness, personal values, product evaluations, social evaluations, and quality awareness can play a crucial role in consumer behavior

2 Interaction with the environment: Consumer behavior is dynamic and interactive as

it is influenced by external environmental factors Elements such as advertising, influence from friends and family, information from the media, and past experiences can impact consumer purchasing decisions

3 Shopping, usage, and product disposal activities: Consumer behavior involves not only the shopping process but also the usage and handling of products after purchase Consumers may evaluate products based on their usage experiences and engage in behaviors related to recycling, reusing, or disposing of products after use

These factors together contribute to a diverse and complex consumer behavior, and understanding them is important for businesses and organizations to effectively cater

to the needs and preferences of their target consumers

Cultural factors:

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

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

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

Social factors: Social classes can be seen as a factor representing the income level of consumers, thus profoundly influencing consumer behavior such as criteria for purchasing products and services, timing and frequency of spending, shopping locations, 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.

Family

Familyistheclosestsocialunitthatconsistentlyinfluencesconsumerbehavior

Familymembersoftenhavemutualinfluence,whichaffectstheperceptionsand

purchasingdecisionsofothermembers

Rolesandsocialstatus

Therolesandsocialstatusofindividualsinsocietyimpacttheirhabits,behaviors,

communicationstyles,aswellastheirneedsandshoppinghabits.Individualswith differentrolesandsocialstatuseswillhavedifferentneedsintermsoffood,fashion, transportation,andhousing

Individualfactors:

Age

Ageisthefirstfactorthatinfluencesconsumerbuyingbehavior.Atdifferentstagesof growthandaging,individualswillrequiredifferentconsumerproductstocaterto

changingneeds,suchasfoodpreferences,clothing,communication,andhealthcare Occupation

Thesecondfactorthataffectsconsumerbehaviorisoccupation.Individualswith

differentoccupationswillhavedifferentchoicesintermsofclothing,eatinghabits, andproductsrelatedtotheirwork,suchasphones,laptops,andprotectiveclothing Gender

Studieshaveshownthatwomentendtomaturefasterintermsofcognitionand

thinking,buttheyaremoreemotionallydrivencomparedtomen.Additionally,

differencesinphysicalcharacteristics,hormones,andendocrinesystemsbetween malesandfemalescontributetocertainvariationsinconsumerbehavior

Example

In terms of the frequency of purchasing fashion items, women tend to shop more often than men