topic research on the impact of live streaming on the tiktok platform on customer purchase decisions

In the digital age, trust, authenticity and peerrecommendations shape consumer choices, making decisions TikTokLive Streaming is a valuable tool for businesses.The combination of Livestr

FPT UNIVERSITY- CAMPUS CAN THO



MKT301 – MARKETING RESEARCH

TOPIC: Research on the Impact of Live-Streaming on the TikTok Platform on Customer Purchase Decisions

Supervisor: VÕ MINH SANG Group 2

Student name and code Tran Tuyet Nhi CE150216

Vu Hai Yen CS150794

Ta Kieu Diem CS150742

Vo Trung Long SS160120 Phan Ngoc Que Anh CS150153 Luc Vinh Hao CS160149 Class: BA1602

Cần Thơ, 10/2022

I. Topic research 3

1. Introduction 3

2. Research benefits 3

3. Questions 4

4. Objectives 4

5. Research subjects 4

II. Literature review 5

1 Theory of TikTok 5

2 Definition of online shopping 5

3 Livestream TikTok 6

3.1 Factors affecting livestreaming on TikTok on customers' purchasing intentions 6

III. Research hypothesis 9

1. Research hypothesis 9

I Topic research

1 Introduction

The explosion of TikTok, especially among young people, represents a profound change in the way users access content TikTok, with its short videos and focus on user-generated content, has created a more engaged environment for users Against this backdrop, one aspect of TikTok's functionality has taken on a pivotal role in shaping consumer behavior and influencing purchasing decisions: TikTok Live Streaming This boom has changed the landscape of consumer behavior and marketing strategies in recent years It helps creators engage with their audiences in real-time, redefining user engagement and providing new marketing opportunities In the digital age, trust, authenticity and peer recommendations shape consumer choices, making decisions TikTok Live Streaming is a valuable tool for businesses

The combination of Livestream and e-commerce on TikTok has sparked research interest in its impact on purchasing decisions This research paper examines the impact of TikTok Live Streaming on consumer behavior, including features, user engagement, and factors that influence customer purchasing decisions It aims to provide a comprehensive overview that provides detailed information to the business This review clarifies the relationship between Tik Tok Live Stream and customer purchasing decisions

2 Research benefits

In an era defined by the constant pace of technological innovation, research on the influence of TikTok Livestream on customer purchasing decisions is important to many stakeholders, from businesses and marketers market to researchers and consumers

TikTok, with its growing user base and unique content format, offers unprecedented opportunities for businesses to connect with their target audience Understanding how TikTok Livestream influences customers' purchasing decisions can guide marketing strategies, content creation, and engagement tactics By effectively harnessing the power of Live Streaming, businesses can not only enhance brand visibility but also foster real connections with consumers

The combination of social media and e-commerce is continuously reshaping the consumer journey TikTok Livestream serves as a microcosm of this evolution, providing a dynamic platform for product discovery and promotion As consumers increasingly turn to digital

platforms to find information, it is essential that they are aware of the factors that influence their purchasing decisions This research contributes to helping businesses understand more about consumers' purchasing decision behavior on TikTok Livestream

3 Questions

What factors influence the value of livestreaming and the emotional reactions of viewers on the social media platform TikTok?

How does livestreaming on TikTok impact consumer purchasing behavior?

What suitable recommendations can benefit businesses and individuals utilizing the online commerce model through TikTok livestreaming to gain attention and increase the likelihood of attracting brand-conscious customers?

4 Objectives

The goal of the research is to systematically and comprehensively evaluate the impact of Livestream on Tiktok platforms on consumer decisions about products

- Identify elements of livestream on TikTok that affect users' online shopping behavior

- Determine the level of influence of each factor on students' purchasing intention towards the product

- Propose some recommendations to help businesses improve sales efficiency via livestream

5 Research subjects

Factors related to the value of livestream and viewer reactions, awareness of communication programs through Tiktok Livestream, factors affecting shopping behavior and purchasing decisions of customers towards businesses

The research subjects are all Tiktok users from 18 to 30 years old in the Can Tho city market They are exposed to marketing communication programs of businesses through social networks and media Because from the age of 18, people have been granted the right to watch all kinds of videos and order products on Tiktok The research focuses on the impact of Livestream on the Tiktok platform on customers' purchasing decisions This online questionnaire is designed on the Google Forms platform We sent out this questionnaire to invite people to participate in the survey primarily via Facebook The collected data will then be processed and analyzed through SPSS and AMOS software

II Literature review

1 Theory of TikTok

TikTok, which first launched in September 2016, has quickly emerged as one of the most popular social media platforms globally, especially with younger audiences (HootSuite, 2021)

As can be seen, TikTok is an application that provides users with the ability to produce, share, and watch content including short video clips Despite the fact that it is only accessible around the globe since 2017, it has been downloaded more than

2 billion times and there are more than 800 million users who are actively using it According to Schellewald (2021), there is a significant amount of public interest in the brief and seemingly random videos that TikTok hosts According to Shaun (2023), the number of Vietnamese TikTok users reached about 28 million in 2022 In the last few years, the short video app called TikTok has seen an explosion in popularity globally (Zeng et al., 2021) TikTok is successful in engaging youth because they actively participate in trends like dance challenges, performances, and lessons, among many others (Quiroz, 2020) The user experience on TikTok is optimized in many areas, including but not limited to UCD design, content creation and form innovation, custom services, and more (Yu, 2019) Theo Zeng et al (2021) highlighted TikTok's popularity and creative potential, while showcasing its ability to expand its field of research on the platform and its predecessor applications

2 Definition of online shopping

"Online shopping" is understood as the action that consumers take to purchase products or services from online stores through the Internet (Pavlou, 2003) This is a process by which consumers intend and are willing to make transactions online Customers use the Internet as a tool to search, compare, and make purchases George (2004) found that due to concerns about personal information and privacy, many consumers may not choose to shop online These concerns may influence their online shopping decisions

According to Haubl & Trifts (2000), "online shopping" is a transaction conducted by the consumer through a computer-based interface where the consumer's computer is connected and can interact with the retailer's digitized stores Other studies such as Hasslinger et al (2007), Li and Zhang (2002), and MasterCard (2008) all agree that "online shopping" is the process by which consumers purchase goods or services through the Internet What these concepts have in common is the procurement of goods or

services through the Internet This shopping process takes place at virtual stores or online stores on websites Throughout this process, buyers and sellers are not in direct contact with each other, every transaction is done through the website (Kolesar and Galbraith, 2000; Lester et al., 2005).When customers want to purchase a product, they simply select it by clicking on it and the product will

be delivered to the address specified by the customer (Yoruk et al., 2011) Merchandise at these stores is often described in text, images, audio, video (Kolesar and Galbraith, 2000; Lohse and Spiller, 1998) However, customers can only evaluate products through messages (in the form of: images, text, audio, video) that sellers post on websites, not by the senses in the usual way as in traditional shopping, so shopping transactions in the online environment are riskier than traditional shopping (Laroche and plus) Incident, 2005) However, information on websites is often very rich and diverse, from information of manufacturers, sellers to comments, reviews, ratings of clients (Hennig-Thurau and Walsh, 2003; Lepkowska-White, 2013)

3 Livestream TikTok

Live streaming is a way to connect with people around the world through the internet (Svart, 2018; Ahmadi, 2022 ; Pongratte, 2023) Explain the live streaming feature that allows broadcasting an event in real-time as it is happening on an internet-connected platform and audiences can watch the event without the hassle of having to download content to your computer first TikTok is one of the platforms with this feature, which has attracted attention for its user engagement potential, providing a great experience for them to watch and interact with their favorite creators own In contrast, creators can respond to comments and questions in real-time, creating a sense of personal connection and authenticity (Iqbal et al., 2020) In addition, the ease of creating content in Livestream TikTok also helps Creators create real-time, script-free content that resonates with audiences Authenticity is distinct from traditional advertising methods and can contribute to creating relatable and trustworthy brand messages (Golan, 2019; Kaur & Rani, 2020)

3.1 Factors affecting livestreaming on TikTok on customers' purchasing intentions

Consumers make purchasing decisions based on various factors The majority of the consumer decision journey begins online, where consumers read website reviews and recommendations on social media Those looking to buy a

product also consider the brand's value proposition and whether these values align with their own Through numerous studies, several factors that can influence customer purchase decisions when watching livestreams have been identified, such as:

Trust: Emotional trust is built on the relationship between the trustee and the trusted person, the basis of which is emotional Mutual attraction and interaction, along with regular interpersonal communication and exchange, deepen the relationship over time and show concern for the benefit of the trusted person (Mian and Hattab, 2013) The perceived trust that consumers have toward streamers can influence their emotional beliefs, which in turn drive purchase intent (Zhang et al., 2014) Consumers have trust in the brand community, which increases the willingness to buy the brand's products (Habibi et al., 2014) Emotional beliefs can influence a consumer's purchase intent (Awad and Ragowsky, 2008) Consumers tend to choose products recommended by people with a credible viewpoint, as their emotional beliefs can influence their purchasing decisions (Koufaris and Hampton-Sosa, 2004)

H1.1: Reliability has a positive impact on the attitude of purchasing decision behavior when watching livestream on Tiktok

H1.1: Reliability has a positive impact on the subjective norm of purchasing decision behavior when watching livestream on tiktok

Excitement: They engage in interaction with their followers

by liking, commenting, sharing, and reposting, thus making users feel they have a close psychological connection with online influencers According to Kim and Kim (2021) as well as Tafesse and Wood (2021), the use of celebrities or Key Opinion Leaders (KOLs) on online platforms to persuade consumers to make e-commerce purchases is becoming more prevalent

H2: Stimulation has an impact on the attitude and subjective norm of mia hang decision behavior when watching livestream

on tiktok

Informativeness

Informativeness is defined as the ability to provide necessary information to target customers (Ducoffe, 1996) Livestream plays an important role in providing information One of the

goals of livestream is to inform customers about new products or new features of existing products or changes in product prices Ducoffe (1996) believes that an online advertising activity that provides complete information about products and services will have a positive influence on attitudes and increase the likelihood

of continuing to buy that product or service Furthermore, consumers tend to quickly evaluate the information they receive,

so the information provided needs to be short and concise (Kaasinen, 2003) According to research by Li and Zhang (2019) emphasizes the importance of informativeness in live streaming marketing From there, it can be concluded that potential customers often require additional information for the products they need Thus, information is seen as a very valuable incentive

in marketing, which positively influences purchase intention, as well as sharing product-related information with relatives or colleagues Therefore, this study makes the following hypotheses: H3.1: Informativeness has an impact on purchasing decision behavior when watching livestream on Tiktok

H3.2: Informativeness has an impact on subjective norm of purchase decision behavior when watching livestream on tiktok

Interaction:

This is a factor related to communication and connection between the live streamer and the viewer Interaction can include factors such as attention to price, actual product images, promotions, feedback from the live streamer Engagement can have a positive impact on viewers' purchase intentions, making them feel cared for and valued

According to Yaakop et al (2013), social media influences every stage of the consumer decision-making process, as well as influencing general opinion and attitude formation One of the interactive capabilities of social networks is the ability to attract many users to use text, images, videos and links to follow and share new products with other consumers Livestream appearing

on every social networking site allows companies to target potential customers in less time and cost effectively, as well as generate practical revenue for the business According to Steuer's (1992) definition of virtual interaction, it is the "degree to which internet users engage in altering the content of websites in real-time." This concept explores three characteristics of virtual interaction: (1) two-way communication, (2) real-time

communication, and (3) mutual control, all of which are strongly supported and assessed by empirical research (Yoo et al., 2010; van Noort et al., 2012; Hu et al., 2016; Yoo and Park, 2016) While some researchers argue that businesses may overestimate the benefits of customer engagement (Kunkel et al., 2019), the majority of studies indicate that enhancing customer engagement leads to increased satisfaction and perceived value (Yoo et al., 2010; Vendemia, 2017) Therefore, customer satisfaction and perceived value are closely related to purchase attitudes On that basis, the study tests the following hypotheses:

H4.1: Social interactivity has an impact on the attitude of purchasing decision behavior when watching livestream on tiktok

H4.2: Social interactivity has an impact on subjective norm

of purchase decision behavior when watching livestream on tiktok

Distractions: According to Aaker and Bruzzone (1985),

annoyance encompasses discomfort, dissatisfaction, or negative stimulation Annoyance in livestreaming refers to the level of discomfort experienced by individuals exposed to online livestreams This discomfort significantly diminishes the effectiveness of livestreaming activities and deviates from the marketer's initial objectives As per Ducoffe (1996), offensive or objectionable content has a negative impact on consumer attitudes Dickinger, Haghirian, Murphy, and Scharl (2004) argue that online advertising activities that are displayed but unwanted

or unwelcome to viewers cause annoyance and generate unfavorable perceptions of the advertised products Do (2017) demonstrates that customer perception of annoyance has a pronounced impact on discomfort, leading to a more negative outlook, resulting in a negative attitude toward advertising, and potentially reducing the intention to purchase the advertised product (Phạm Thị Lan Hương and Trần Nguyễn Phương Minh, 2014) Based on this foundation, the research hypothesis is proposed:

H5: Distractions have an impact on attitudes and subjective norms of mia hang decision behavior when watching livestream on tiktok

Attitude: Eagly and Chaiken (2007) provide a definition of

attitude as a psychological assessment of a specific object, either in a positive or negative light Attitudes can serve as predictors of behavior, as an individual's likelihood of taking action often hinges on their developed attitude toward that particular object Furthermore, when consumers harbor positive attitudes toward a product, it significantly influences their future intentions to purchase and their actual buying behavior (Fazio, 1990) The more favorable the attitude toward a particular behavior, the stronger an individual's inclination to engage in that behavior, as emphasized by Tarkainen and Sundqvist (2005) Chen (2007) underscores that consumers' preferences and attitudes regarding the purchase of a specific product stem from their personal attitudes and their desire to engage in a particular behavior According to Engel and Blackwell (1978), purchase intention assumes a pivotal role as a predictor of consumer behavior, often serving as a proxy for actual behavior

H6: Attitude has an impact on purchase intention when watching livestream on tiktok

Subjective norms: are defined as an individual's perception

of whether important referents believe a behavior should or should not be performed (Fishbein & Ajzen, 1975) Subjective norms can be measured through individuals who are relevant to the consumer, determined by the normative beliefs regarding the expectation of behavior and the motivation of the individual to comply with those expectations (Fishbein & Ajzen, 1975, p 16)

H7: Subjective norms have an impact on purchase intention when watching livestream on Tiktok

Livestreaming on TikTok has emerged as a potent influencer of consumer purchasing decisions This review delves into the factors within the model of trust, stimulation, informativeness, interaction, and distraction that play pivotal roles in shaping purchase intentions when watching TikTok livestreams