The results ofthis study will advance our knowledge of the influence of social media on consumer behaviorand provide businesses with valuable insights into how to effectively market thei
INTRODUCTION
Research background
The 15-second video has revolutionized the concept of "micro narrative" and appeals to people's sense of curiosity E M Rogers, an American scholar, stated “theory of diffusion of innovation”, which refers to a “concept, practice, or thing” that is accepted and spread among a social group through various channels over time The unique narrative style of the short video has increased its expressiveness and has become a favorite among audiences This has opened up new opportunities for companies to reach a younger and more mobile-savvy audience, who are spending more time on social media platforms like TikTok Overall, TikTok's integration with e-commerce has the potential to transform the way businesses reach and engage with customers.
According to statistics from TikTok Vietnam, when conducting surveys on short-form video platforms, 80% of respondents chose TikTok as their favorite platform for entertainment and creativity Over 95% of users reported seeing advertisements on TikTok, and 9 out of 10 people take action after watching these ads It is clear that this is an incredibly promising business environment for both customers and businesses The population explosion in Vietnam, particularly the rapid and massive increase in Gen Z youth, has driven the rapid development of TikTok.
149 customers in Vietnam, mainly those who belong to Gen Z who use TikTok will be surveyed as part of the study process In order to define the measurement and structural models, the data will be examined using SPSS The study reveals that there is a strong and positive correlation between advertising content on TikTok, the perceived value of the product, and the intention to purchase it The perceived value of the product significantly mediates the relationship between the advertising content and consumer intention Furthermore, there is a vital link between advertising content on TikTok and the intention to purchase.
Vietnam is a country with a rapidly growing economy and a growing middle class, making it an attractive market for consumer goods The purchasing behavior of consumers in Vietnam has been impacted by various factors, including economic growth, technological advancements,and cultural influences These factors are all characteristics of TikTok, one of the most popular social platforms in the world TikTok is a social media app that primarily focuses on short-form videos, with a majority of the content being user-generated According to Appota’s annual series of mobile market reports, TikTok had reached 16 million downloads in the year 2020.The use of TikTok was expanded even larger in scale due to the COVID-19 pandemic Survey conducted by Muliadi (2020) showed that Generation Z (Gen Z), who were born between 1996 and 2009 (Sarah Sladek and Alyx Grabinger, 2018), account for 60% of TikTok’s users This shows that the app will be more and more popular since it provides a platform for businesses and influencers to reach a vast audience, making it an attractive marketing tool Platforms likeFacebook, Instagram, and Youtube have a substantial impact on how customers make purchasing decisions, according to prior studies on social media and its impact on consumer behavior TikTok, being a new player in the market, has not yet been thoroughly studied in terms of how it affects the purchasing behavior of customers However, considering the growing popularity of the app, it is crucial to understand its impact on consumer behavior in Vietnam
This research aims to investigate the impact of TikTok on purchasing behavior in Vietnam by analyzing the app's features, such as its personalized content recommendations, user engagement, and influencer marketing However, few authors have really been able to derive from any organized research regarding how TikTok's algorithm affects consumer demand The study will focus on the app's impact on consumer decision-making, including brand preference, product choice, and purchase intention The research will contribute to the field by providing insights into the impact of TikTok on purchasing behavior in Vietnam, examine the significance of TikTok’s algorithm in the rise of its dominant use as an aiding tool for online businesses, a market that has not yet been extensively studied The findings will also provide businesses with a better understanding of how to effectively market their products on TikTok and how to reach their target audience Additionally, the research will provide insights into the influence of social media on consumer behavior, adding to the existing literature on the topic The impact ofTikTok on purchasing behavior in Vietnam is a crucial topic that needs to be explored,considering the app's growing popularity and its potential as a marketing tool The results of this study will advance our knowledge of the influence of social media on consumer behavior and provide businesses with valuable insights into how to effectively market their products onTikTok.
Research questions and objectives
Research questions of the study are presented as below
The study will address the following research problems:
(1) How does TikTok impact the purchasing behavior of consumers in Vietnam?
(2) What are the key factors that influence the effectiveness of TikTok in shaping customer purchasing behavior?
(3) How do consumers use TikTok to make purchasing decisions?
(4) What needs to be done to change the purchasing behavior of customers towards increasing spending on products on the TikTok platform?
The objectives of this study are to:
(1) Investigate the impact of TikTok on the purchasing behavior of consumers in Vietnam. (2) Evaluate the use of TikTok by consumers in the decision-making process
(3) Identify the main factors affecting the effectiveness of TikTok into shaping customer purchasing behavior.
(4) Evaluate the level of impact these factors have on the purchasing behavior of consumers inVietnam
Research contribution
Customers' buy intentions rise when they use social networks to market goods and draw customers.The study written by the author before you also concentrated on social networking sites, social media, or studying social networks, encompassing previous websites such as Facebook and Instagram (Teo et al.,2019; Dehghani & Tumer, 2015) The new social networking site TikTok, in contrast, will grow and adapt to the patterns of young people, particularly Generation Z The conclusion of this study will advise a boss or marketing supervisor to concentrate on the TikTok material of their business They have a significant impact on purchasing behavior, and their stats on perceived value are crucial for bridging the gap among both advertising content and purchase intention This study concentrates on the promotional material that brands themselves share on social media, so they can speak for the effects of brand image on their own.
By analyzing customer buy intentions using the S-O-R theory, this study is anticipated to cover the gap in the literature on social networking sites in Vietnam and add to it This study's application to the TikTok environment is also anticipated to support Raiji's (2018) adoption model and highlight the fact that buy intention is also influenced by perceived worth and the advertising content To put it briefly, this study will suggest a thorough methodology to evaluate in the context of TikTok in Vietnam, adopting Raiji's finding-based implementation strategy (2018).
Research scope
The focus of this study is on Vietnamese consumers who could buy a product after receiving a suggestion from TikTok and its brands For this study, data on TikTok users in Vietnam were acquired The author will become familiar with the product types that TikTok advertises Assess the perceived worth of the advertisements in the eyes of the consumer after which they offer an objective study to determine their impact on the consumer's purchasing behavior The research was carried out between October 2022 and March 2023.
Research structure
There are 5 chapters in our research.
The research background, questions and objectives, research contributions, research scope and research structure are all described.
The research on content of advertisements, perceived value, and buying intention is summarized and reviewed in this chapter Each element is covered in detail, along with the theoretical underpinnings of the study
The research methodology, data collection procedures, and data analysis techniques utilized to evaluate the conceptual framework put forth in chapter 2 are covered by the authors in this chapter.
This chapter explained how the reliability of the data as well as the research findings were examined The authors suggest the structural model's and measurement model's combined outcome based on this.
This chapter discusses the study's findings as well as the theoretical and practical ramifications for the field of marketing literature This chapter also demonstrates the restrictions and the course of further research.
LITERATURE REVIEW
Theoretical foundation
Generation Z is the generation born between 1996 and 2009 (Sarah Sladek and Alyx Grabinger, 2018) and the group spending the most time purchasing online They are also called Gen Z, zoomers, iGeneration, centennials, post-millennials, or Homelanders (Eldridge, 2023) In comparison to previous generations, Generation Z spends an average of three hours every day online or linked to a smart device, which is significantly greater than the previous generations (BambooHR) According to Hall (2022), compared to other generations, zoomers are significantly more active on social media: 64% of them use it many times every day, compared to 47% of all users GenZers follow brands they enjoy on social media in the majority (61%) of cases Only 53% of Generation Y, 36% of Generation X, and 18% of trailing-edge baby boomers, in contrast, make the same claim A staggering 97% of Gen Z shoppers name social media as their main source of purchasing inspiration Almost half of Zoomers (44%) had purchased a purchase that was recommended from a social media celebrity or KOL as opposed to just over a one-fourth (26%) of the overall public.
2.1.1.2 Consumers and consumer purchasing behavior a Consumers
Consumer is a broad term used to refer to individuals or households that use products or services in the economy to serve their needs for consumption, production, living or redistribution.
In terms of an economy, consumers are not only individuals or households but also businesses, cooperatives, organizations, etc The common point of these consumers is that they are all capable buy any product.
Consumers are a powerful force that have biggest effects on the economy of every nation They consume manufactured goods, stimulating the birth of new goods thanks to the diversity of needs, tastes and preferences Therefore, consumers have a role in ensuring the healthy operation and development of the economy. b Consumer behavior and purchasing decisions
Consumer behavior is defined as a sequence of choices that a particular consumer group must make regarding what to purchasep about deciding to use particular goods, services, concepts, or actions over time.
According to Michael Solomon in "Consumer behavior: Buying, having, and being" (2014),consumer buying behavior is understood as the process of an individual or group deciding whether to buy, use or dispose of a product products or services to serve their needs and interests.
According to Philip Kotler, “consumer behavior is the study of how individuals, groups and organizations select, purchase, use, and dispose of goods, services, ideas and experiences to satisfy needs and their wishes”.
Figure 2.1: 5 step of purchasing behavior proces
According to David L., Loudon & Albert J Della Bitta in “Comportamiento del consumidor: conceptos y aplicaciones”, “consumer behavior is defined as the decision-making process and actual actions of individuals when evaluation, acquisition, use or disposal of goods and services”.
Similarly, Leon G Schiffman & Leslie Lazar Kanuk also have the same opinion, "consumer behavior is the whole action that consumers show in the process of exchanging products, including: investigation, purchase, acquire, use, evaluate and dispose of products and services to satisfy their needs”.
Thus, based on the above definitions, we can see that consumer buying behavior has some main characteristics:
- Is the process of thinking and feeling people when shopping;
- Occurs before and after the time of purchase;
- Includes stages: consider, decide to buy, use, discard.
Consumer buying decision is the intention formed after the consumer has evaluated all the alternatives when choosing a product or service and has arranged them in a hierarchy of priorities.
Before we can assess the factors that influence a consumer's buying decision, we must begin by determining how their buying decision process begins and ends identify the factors that influence their decisions to build a model of consumer behavior That decision-making process is summarized into a five-step process as follows
The accelerated development of information technology has led to a change in culture Customers started doing their purchasing online instead of going to actual stores Physical companies have been utilizing e-commerce to communicate with customers in an effort to obtain a competitive advantage (Lee and Lin, 2005) Because online enterprises have few obstacles to entry, competition can simply engage in the market (Wang et al., 2016) When a customer switches from an ecommerce marketplace to another, there are few costs involved (Mutum et al., 2014) Future customer behavior is influenced by the shopping experience, including whether they will make another purchase, return to the store, and spread the word (WOM) (Chang and Wang, 2011).
TikTok is a platform that focuses solely on videos and provides users with various editing tools including filters, music, animations, graphics, and transitions Its user-friendly editing features allow even those without prior editing experience to unleash their creative potential Additionally, its short video format makes it simple to both create and consume content, much like other micro- blogging sites (Crawford,2020)
With TikTok, everyone may achieve their ideal "15 seconds of fame" by producing and posting quick videos that can last from 15s (most popular type of TikTok video) to 10 minutes Vine, a less popular and largely disappointing video uploading business that offered a similar service to TikTok,established a notion that TikTok, one of the fastest growing startups in history, built upon (Yadav et al., 2015) 73% of users on TikTok claim that they have a closer relationship with brands and companies they interact with than they do on other platforms In comparison to other platforms,TikTok's statistics on "community commerce" shows that three-quarter of total users feel a greater bond to the companies they interact with 78% concur that the best brands on TikTok are those who collaborate with users and share their ideas 70% of users claim to feel a sense of community on TikTok 67% of people claim that TikTok encouraged them to shop even when they weren't in the mood to do so.
The selection of the videos that appear on your (unique and highly tailored) For You page is made using the TikTok algorithm No two users will ever watch the same videos on their For You page, so the videos you see there may change over time depending on your viewing choices and even your present mood (Newberry, 2023) The algorithm may have a significant impact on how TikTok users shop online For instance, if a user regularly interacts with videos about clothing or cosmetics, the algorithm will show them more similar content, which might encourage them to make purchases In order to make it simpler for users to make purchases directly from the app, TikTok has also added shopping features, such as the ability to add product links and shopping tags to videos Additionally, TikTok influencer marketing has grown to be a well-liked and successful method for brands to connect with a sizable, engaged audience and affect their purchasing choices. Influencers frequently produce sponsored content to promote products and entice their followers to buy them.
The S-O-R model, which Mehrabian and Russell introduced in 1974, contends that people's behavioral reactions and psychological changes are influenced by environmental factors, was discussed by Zhai et al (2020) and Pandita et al (2021) Individuals process the stimuli they receive and adjust their psychological interactions in order to produce an appropriate response The theory explains that the will of customers to engage in brands’ social media communities and all the marketing, advertising strategies (external factors) affect their attitude towards that brand The target of every brand is to change customer emotional and psychological states, where they put their effort in increasing brand association We can call this state “organism” The final stage in S-O-R Theory is the “response”, this will occur when customers are well “fed” with branding and marketing strategy on social media platforms and decide which brand will make their purchase intention
The S-O-R model has been utilized in various research studies to explore impulsive buying habits of consumers on the internet (Kawaf & Tagg, 2012; J Kim & Lennon, 2013) The role of perceived value as a key driver of purchases in both offline and online settings has been examined and confirmed by several studies (Huang, 2016; Kamboj et al., 2018; Luqman et al., 2017).
Figure 2.2: SOR model of consumer purchase
2.1.2.2 Theory of Planned Behavior (TPB)
Results of previous research
Hooria Adnan conducted the research “An Analysis of the Factors Affecting Online Purchasing Behavior of Pakistani Consumers.” The group of people studied consisted of those who were already shopping online and most of them had a higher income, mainly located in Lahore, Pakistan. The sample size was 100 individuals who were chosen through convenience sampling, including students from Lahore School of Economics and Lahore University of Management Sciences, as well as housewives and businessmen
Factors that were chosen to be investigated include: (1) Perceived Advantages, (2) Perceived Risks, (3) Hedonic Motivations, (4) Psychological Factors, (5) Website Design, (6) Online Buying Behaviors The result of this research is that:
- There are positive correlations between the two factors perceived benefits of online shopping and the online buying behavior of consumers
- Psychological factors and online buying behavior are positively related
- Apparel and accessories, together with electronics products and gadgets are the most purchased goods
The research “The mediating effect of brand image on the relationships between social media advertising content, sales promotion content and behavioral intention” conducted by Raji, Rashid and Ishak (2019) concluded that social media sales promotion content, hedonistic brand perception, practical brand perception, and behavioral intention are all positively and significantly correlated.
615 automotive brand consumers in Malaysia were surveyed for this study AMOS was applied to evaluate the data and to specify the measurement and models The bootstrapping method in the AMOS and Sobel test was used to examine the mediating impact of both hedonic and functional brand representations.
The research “The influence of perceived value on purchase intention in social commerce context”, conducted by Gan & Wang (2017) conclude that satisfaction plays a crucial role in determining users' purchase intention in social commerce Utilitarian, hedonic, and social values all contribute positively to satisfaction and purchase intention Among these factors, utilitarian value has the strongest impact on purchase intention, while hedonic value has the greatest influence on satisfaction However, perceived risk has a negative effect on satisfaction, highlighting its significance in the purchase decision-making process.
According to the research of Alalwan about “Investigating the impact of social media advertising features on customer purchase intention” (2018), the data of 437 participants was collected by using a questionnaire survey and structural equation modeling (SEM) to conduct the survey.
Based on the model, the factors: (1) performance expectancy, (2) hedonic motivation, (3) interactivity, (4) advertising content, and (5) perceived value significantly affect purchase intention of customers from four big cities in Jordan (Amman, Irbid,Zarqa, and Balqa) By the method of CFA and EFA, the study concluded that:
- Advertising content is the main aspect influencing customer's purchase intention.
- Performance expectancy, hedonic motivation and perceived value show a positive correlation with purchase intention.
- Interactivity has a negative correlation with purchase intention.
Gaps of previous research
The majority of earlier research, on the whole, concentrated on individuals who have had a stable job, with an average age of over 25 and not spent too much time on TikTok usage There haven't been many in-depth studies of young people's internet shopping habits today, particularly those of university consumers who use TikTok However, because of the tiny sample size and evaluation of a wide geographic region, all studies have a certain generality and are not yet very precise.
According to the research of Hooria Adnan, the sample size was so small (just 100 respondents) and most of them had a high income, so it could not be reliable to conclude for all consumers residing in a city such as Lahore, Pakistan Besides, the geographical location was also a limiting factor for this study
In the study of Raji, R A., Rashid, S., & Ishak, S (2019), authors just mainly examined external factors such as advertising content, and they did not have any deep research into internal factors from customers.
In terms of research of Gan & Wang (2017), it witnessed an inverse The group of authors focused on studying internal categories influencing consumer purchasing behavior such as perceived value, hedonic value and satisfaction, mainly their participants were women who had the average of ages over 30,5 and did not use TikTok on a daily basis.
Although research of Alalwan in 2018 has a larger sample size of 437 respondents in 4 big cities in Jordan with about 40% of them being 25-30 year-old people, a majority of them have a monthly income between 250 and 500 JOD (a low level of income) However, the author concluded that the result for all customers in Jordan, so it created a controversial debate for a long time when this research was published.
The research mentioned above, in general, only concentrates on using one small aspect of the model The study ideas for our team will be listed below, which will provide a comprehensive view for the model
Research models and hypothesis
The topic "The Impact of TikTok on purchasing behavior of consumers in Vietnam" is the subject of inherited research, but there have been selections, additions, and changes to suit the goals that were proposed by the research team The study investigates how TikTok affects customer purchasing behaviors.
Based on the model of the decision-making process, the model of the variables influencing people's consumption developed by Philip Kotler, and Maslow's model of consumer behavior mixed with redundant prior research The three independent variables that the study model has suggested are:(1) Advertising content, (2) Perceived value, (3) Purchase intention and one response variable is consumer Purchasing Behavior.
A mobile application called TikTok enables users to make and share little videos These movies are vertical as opposed to the circular Snapchat or Instagram stories Instead of tapping or sliding left to right when you're on Snapchat or Instagram stories, you slide up and down to navigate the videos, just like you would with a stream TikTok's Impact on the World - According to The New York Times (2019), TikTok differs significantly from other apps that American users have previously used The same as with any other networking tool, users can and do use it TikTok is a video-only platform, similar to YouTube TikTok is primarily consumed by scrolling through a "feed" of brief, consumable messages, similar to how Facebook and Twitter are used But there is a fundamental difference between TikTok and Snapchat or Instagram, one that is concealed by the numerous visual and functional parallels TikTok encourages users to move from trend to trend and audience to audience, resulting in the formation of what can be compared to fictitious transient friend groups that get together to engage in friend-group activities It is, in this sense, a future or at least from one By using "trending videos by TikTok," it helps the advertising content on the platform to appear more genuine and gain popularity Audience members readily reproduce the advertising material and react to it positively
One of the most prevalent types of marketing content that managers or company owners share on social networking sites today is advertising content (Keller, 2013) Users' ratings of the material,the substance, and their impressions of the advertisement will be included in reviews of advertisements on TikTok (Raji et al., 2019a) In other words, social media has developed into a potent instrument for distributing commercial content (Bruhn et al., 2012) Ads that are posted on social media are therefore referred to as social media advertising Consumer involvement is essential in an SNS environment for spreading word-of-mouth marketing (eWOM) and raising brand awareness, which results in higher sales and revenue (Cvijikj et al., 2013) As a result, the practice of online content marketing centers on consumer interaction online Engagement suggests that the knowledge is specific to the person and has the strongest connection to recollection This specifies whether the data will be used going forward or not (e.g., buy a product in-store) In this poll, TikTok's engagement rate was 15% greater than that of the other top platforms
A trigger is an outside influence that changes a person's thinking and prompts a response The two most prevalent kinds of stimuli are physical stimuli and social-psychological stimuli While object stimuli are affected by their complexity, duration of use, and other usage-related traits, social psychological stimuli are drawn from the individual's immediate environment (Arora, 1982) As a result of its promotion of various parts of a product, advertising material is seen as an object stimulant Advertising material helps businesses stand out from the competition, is essential for successful advertising, and helps businesses establish enduring brands in the marketplace The likelihood of brand recognition and recall in consumers' minds increases with frequent and regular exposure to ads; social media advertising content is essential to creating effective brands (Yoo et al., 2000).
According to research by Raji, Rashid and Ishak (2019), if the content of videos about a product on TikTok is attractive, more and more consumers will be willing to buy this.
Hypothesis 1: TikTok advertising content ratings by users are positively correlated with consumer behavior.
Numerous factors, such as monetary worth, quality, utility, and even social psychology, can be considered when examining the perceived value of a customer The monetary perspective contends that when goods are acquired for less money, worth is produced (such as discounts or promotions). Consumer excess, a word used in economics to describe perceived value, is the discrepancy between the price consumers are willing to pay and the price actually paid for a good or service. According to the quality perspective, worth is determined by how much a thing costs relative to how good it is (Bishop Jr, 1984) When less money is spent on a high-quality product, a good perceived worth is produced When a product's price is lower than the expense of production, it will be worth more.
Perceived value is the result of customers' assessments of the usefulness of the perceived benefits and downsides (Zeithaml,1988)It is proposed that the buyer's thinking may be mentally integrated with the advantages and disadvantages of buying a product But the price of the compromise goes beyond the sum of money spent on a specific object Other costs that should be considered include time spent on the buy as well as transaction, inquiry, and other non-monetary costs (Cronin et al., 2000; Zeithaml, 1988) When value is created, acquiring a particular commodity or service benefits a person's society (Sheth et al., 1991) The impact of a person's social self-concept may therefore be enhanced by products that communicate particular meanings (such as social, economic status, and cultural values) (Sweeney & Soutar, 2001) This study found that consumers' assessments of the perceived value of a good or service rely on the efforts they make and the outcomes they describe when they use TikTok's promotional content The ease and cost savings that social networking sites offer as instances of utilitarian value highlight the significance of how the end-user perceives utility and efficacyt(Hsu and Lin, 2016; Xu et al., 2015) On the other side, hedonic value is primarily focused on the emotional usage and is concerned with the non-functional (i.e., conscience) benefits obtained from social media platforms, such as pleasure and satisfaction 2004 (Heijden) Social commerce websites enable people to talk about and share their shopping encounters, which strengthens their sense of identity (Analysys, 2016) A high level of societal worth supports their drive to obtain.
The behavioral model claims that thought has a significant influence on how consumers perceive online purchasing (Fishbein & Ajzen, 1975) Customer service experiences and customer perceptions of value are tightly related, claim Helkkula and Kelleher (2010) Chopdar (2020) and Shah et al (2020) have shown how crucial customer responses are in determining perceived value, supporting the idea that value may be an organism.
Consumers are becoming more concerned in how a product makes them feel and what value it adds Alawan stated in his study in 2017 that, perceived value is a factor strongly affecting consumers when they make a decision on buying any product.
Hypothesis 2: Perceived value positively influences purchasing behavior.
Grewal et al (1998) assert that customers who intend to purchase a specific product hold the power to predict their probability of doing so In the consumer purchasing procedure, the desire to buy is a crucial step A sort of decision-making called purchase purpose takes into account why a consumer might select a particular brand (2012) (S S H Shah et al.) Spears et al (2004) defined purchase plans as a person's deliberate decision to make an effort to purchase goods from a particular company Additionally, buy intentions are significant in a company because they can be used to forecast potential earnings (Morwitz et al., 2007)
According to Zeithaml (1988), a customer's decision to buy an item is significantly influenced by the value of the product and recommendations from other consumers, including those made on social media By combining firm-created advertising (viral marketing) with user-generated word of mouth (WOM), users who find the companies worthwhile are automatically forwarded to and recommended (Hoy & Milne, 2010).
Research of Gan & Wang (2017) pointed out that there is a positive correlation between purchase intention and purchasing behavior of consumers on the TikTok market.
Hypothesis 3: Purchase intention is positively associated with purchasing behavior.
2.4.3.1 Measurement scale of Advertising Content
Measurement scale of Advertising Content based on the measurement scale in the research of Raji et al., (2019b), which includes 7 observable variables being listed from ADC1 to ADC7:
Table 2.1: Measurement scale of Advertising Content
No Variable Observable variable Expected correlation
1 ADC 1 I discovered new information about the brand X through the TikTok advertisement +
2 ADC 2 I learned interesting facts about brands through the
3 ADC 3 The TikTok advertising provided me with reliable details about the companies +
4 ADC 4 The brand's TikTok advertising is imaginative +
5 ADC 5 TikTok's advertising is distinct from those on competing sites +
6 ADC 6 I believe that TikTok's commercials aid in my ability to create an opinion about different brands +
7 ADC 7 TikTok advertising campaigns have successfully convinced me +
2.4.3.2 Measurement scale of Perceived Value
Measurement scale of Perceived Value based on the measurement scale in the research of Gan & Wang (2017), which includes 9 observable variables being listed from PCV 1 to PCV9 :
Table 2.2: Measurement scale of Perceived Value
No Variable Observable variable Expected correlation
1 PCV 1 Reliable product quality is offered by companies on
Items on TikTok are reasonably priced and affordable
3 PCV 3 Shopping would be easier if you used TikTok to look for products and goods +
4 PCV 4 I'd like to use TikTok to talk about the brand that I’m interested in +
5 PCV 5 It would be enjoyable for me to use TikTok to shop online +
6 PCV 6 TikTok about branding strategy would make me feel more accepted if I used it for purchasing +
7 PCV 7 Making a favorable impression on people by using
TikTok branding when shopping online +
8 PCV 8 Using TikTok to discuss brand associations for purchases might enhance how others view me +
9 PCV 9 Using TikTok about The Brand X for shopping would improve the way I am perceived +
2.4.3.3 Measurement scale of Purchase Intention
Measurement scale of Purchase Intention based on the measurement scale in the research of Alalwan (2018), which includes 3 observable variables being listed from PCI 1 to PCI 3:
Table 2.3: Measurement scale of Purchase Intention
No Variable Observable variable Expected correlation
In the near future, I'll buy things from companies that advertise on Tiktok +
2 PCI 2 If I have a healthy financial state, I would purchase the goods from the companies that are promoted on TikTok +
3 PCI 3 I'm more likely to purchase goods from companies that advertise on TikTok than other company +
2.4.3.4 Measurement scale of Purchase Behavior
Measurement scale of Purchase Behavior based on the measurement scale in the research of Gan & Wang (2017), which includes 4 observable variables being listed from PBI 1 to PBI 4:
Table 2.4: Measurement scale of Purchase Behavior
No Variable Observable variable Expected correlation
1 PBI 1 I have previous plan for purchasing the product +
2 PBI 2 I intend to use the product from brand X for a long time +
3 PBI 3 I expect to use the product from the brand X on
4 PBI 4 I will use the product from brand X as soon as possible +
RESEARCH METHODOLOGY
Research process
Sampling Method
3.2.1 Verifying sampling size using overall estimate
Determining the sample size according to the population estimation often requires a large sample size However, our study has limited time and without financial support, the ability to sample according to the overall estimate will be difficult to implement Therefore, we used a sampling formula based on the quantitative method used to analyze the data Two methods that require large sample sizes are regression and exploratory factor analysis (EFA).
Sample size is determined by the analytical approach; in this study, exploratory factor analysis is used (EFA) The reliability depends on the sample size, as the sample size increases, the reliability of the information is increased For factor analysis, the sample size will depend on the number of variables included in the factor analysis; Gorsuch (1983) suggested that the number of samples should be 5 times the number of variables.
Hair et al (2014) stated that “the sample size to use EFA must be over 50, preferably 100 or more”. The ratio of observations to an analyze is either 5:1 or 10:1 While Hoang Trong and Chu Nguyen Mong Ngoc (2005) argue that the minimum size of each subsample needs 4-5 times the number of survey variables According to the standard of five samples for an observed variable, then with 19 observed variables to conduct sample analysis, the author needs to conduct a survey with 95 questionnaires, while in fact the author has conducted 149 samples.
In a survey with 149 respondents, the author gathered 144 legitimate responses for research purposes and eliminated 5 invalid response sheets for lack of data With all data collected through the process, it will come to the data processing step with SPSS 23 software to evaluate the reliability of the scale, exploratory factor analysis EFA.
3.2.2 Evaluate the reliability of the scale
According to each collection of variables, the reliability of the estimated parameters in the data set is to be tested using the Cronbach's Alpha scale Inappropriate variables can be removed because they can produce erroneous elements by using the Cronbach's Alpha reliability coefficient technique before the EFA exploratory factor analysis to examine the similarity and association between the observed variables.
When calculating the shift in each variable and the correlation between variables, Cronbach's Alpha coefficient is used It shows the degree of connection between the questionnaire's variables. Variables with a Cronbach's Alpha coefficient of greater than 0.7 and a correlation coefficient of total variable (correct item - total correlation) of greater than 0.4 will be allowed.
To determine whether the next variable should be removed or not, eradicate each one, perform the scale test, and then revise Cronbach's Alpha coefficient.
One of the quantitative analysis techniques, EFA, is used to condense a large number of interconnected measurement variables into a smaller number of variables, making them more useful while retaining the majority of the information from the original set of variables (Hair & ctg, 1998).
Factor analysis helps to reduce a collection of numerous measurement factors to a single factor. Regression analysis can be carried out after EFA variables To engage in exploratory factor analysis, you must meet the following conditions:
• Factor loading factor (Factor loading) > 0.5 0.5 ≤ KMO ≤ 1: The Kaiser-Meyer-Olkin (KMO) coefficient is the indicator used to evaluate the applicability of factor analysis Factor study calls for a high KMO number.
• The statistical significance of the Bartlett's test is (Sig.< 0.05): This statistic is used to evaluate the hypothesis that the variables are not correlated in the population In the community, the measured variables are correlated with one another if this test is statistically significant (Sig.< 0.05).
• Percentage of variance > 50%: Displays the measured factors' percentage variation In other words, this number indicates how much the component analysis describes when the variation is 100%
To evaluate theories, Pearson correlation analysis and regression analysis both included satisfactory scales After performing a Pearson correlation analysis between the dependent and independent variables to verify that there is a linear relationship between the dependent and independent variables, linear regression analysis should be used Between -1 and 1, the Pearson correlation coefficient is available.
Data gathering
To collect sample data for this study, a qualitative research technique will be used in the form of an online questionnaire survey There will be no limitations on the survey's participants' geography, occupation, or age The target population for the study consists of people in Vietnam who have used TikTok and viewed advertising on the platform
TikTok is widely known across the world and has a significant user base in Vietnam, making it an ideal population for this study due to its relevance to the research concept The data collected will be used to test hypotheses and achieve the research goals.
To gather data, the survey questions will be modified via Google Forms and then posted on several social networking sites, including Facebook, Snapchat, Instagram, Zalo, Douyin and TikTok.
The intended participants are individuals who have either purchased or plan to purchase a product through video advertisements on TikTok There are no restrictions on the selection procedure based on demographic factors The comments from those who have never watched a TikTok video or are unconnected with any companies will be eliminated after data has been filtered Additionally, answers from respondents who complete the survey without purpose will be eliminated, as indicated by their uniform response or irrelevant answer to all questions
The data collection process will take place from February 1st to March 14th and the expected result will be approximately 160 responses After filtering, about 140-150 valid responses will be expected to be available for analysis.
Three crucial variables will be included in the research model for this study: advertising content,perceived value, and purchase intention All assessment items have been adapted from prior research to retain the reliability of these dimensions, and they will all be slightly altered to meet the context of social media platforms in Vietnam To collect data, the measurements for every variable will be modified and developed before being translated into Vietnamese Table 6.2 following will give more information.
Advertising content will be evaluated by customers using a five-point response scale, (i.e 1 strongly disagree to 5= strongly agree) as presented by Raji et al (2019) There are seven measurement items in total for advertising content
Three criteria will be used to gauge perceived worth: social value, hedonic value, and practical value Twelve objects were used by Gan & Wang (2017) to gauge perceived worth
Five units Alalwan (2018) will be modified, and each variable will be measured by a five-point answer scale.
All of the scales are inherited from prior studies which have been evidenced with high reliability and validity Details of items for each scale are presented in Tables 6.1 and 6.2 below
Table 3.1: Scale of Likert with 5 different levels of agree
Intensively disagree Disagree Neutral Agree
No Variable Code Questionnaire Derivation
Content ADC1 I discovered new information about the brand
2 ADC2 I learned interesting facts about brands through the TikTok promo.
3 ADC3 The TikTok advertising provided me with reliable details about the companies
4 ADC4 The brand's TikTok advertising is imaginative.
5 ADC5 TikTok's advertising is distinct from those on competing sites.
I believe that TikTok's commercials aid in my ability to create an opinion about different brands.
7 ADC7 TikTok advertising campaigns have successfully convinced me.
PCV1 Reliable product quality is offered by companies on TikTok.
9 PCV2 Items on TikTok are reasonably priced and affordable
10 PCV3 Shopping would be easier if you used TikTok to look for products and goods.
11 PCV4 I'd like to use TikTok to talk about the brand that I’m interested in.
12 PCV5 It would be enjoyable for me to use TikTok to shop online.
13 PCV6 TikTok about branding strategy would make me feel more accepted if I used it for purchasing.
14 PCV7 Making a favorable impression on people by using TikTok branding when shopping online
Using TikTok to discuss brand associations for purchases might enhance how others view me.
Using TikTok about The Brand X for shopping would improve the way I am perceived.
In the near future, I'll buy things from companies that advertise on Tiktok.
If I have a healthy financial state, I would purchase the goods from the companies that are promoted on TikTok.
I'm more likely to purchase goods from companies that advertise on TikTok than other company
I have previous plan for purchasing the product
21 PB2 I intend to use the product from brand X for a long time
22 PB3 I expect to use the product from the brand X on TikTok
23 PB4 I will use the product from brand X as soon as possible
The data collected will be analyzed using IBM SPSS 23 The first step in the analysis process is to understand the data distribution and identify any errors or outliers by using frequency and descriptive analysis The Cronbach's alpha will then be used to evaluate the consistency of each variable in the dataset Exploratory Factor Analysis will next be used to reduce the numerous experimental factors to a smaller number of more important variables Correlation analysis will then be used to gauge how strongly two variables are linearly related The Sobel test will next be used to ascertain the impact of perceived value on the link between perceived service quality and customer happiness Lastly, regression analysis will be performed to investigate the observed factors and examine the observable variables.
ANALYSIS RESULTS
Descriptive Statistics
The analysis and findings of the data obtained during the survey activities will be presented in this part For those who responded, the survey's findings are as follows:
TikTok using: After conducting the survey on 149 respondents, 97% of respondents have used
Gender: Out of 149 participants, 59,7% of those who described the 89 respondents were female,
38,9% of those who described the 58 respondents were male, and 1,3% of people who responded said they identify as a different sex The percentage of female users on the TikTok platform is also greater than that of male users, as reported by Global Digital Insights (April 2022) This increases the validity of the statistics about the male to female ratio.
Age: With 149 responders, those between the ages of 15 and 20 make up the majority of respondents (55%, or 82 replies) The group of voters between the ages of 21 and 25 took second place with 18,6% of the vote (28 responses) According to data from Global Digital Insights, n.d. TikTok Stats just since April 2021, the 18 to 24 age group makes up the largest portion of TikTok's advertising audience for users aged 18 and over.
Income: Regarding income criteria, the scale is split into five separate group levels According to the author, there are 74 people, and 49,7% of them have an annual salary under 5 million VND. With 31 responders (20.8%), the 11–20 million VND income category came in second The third, with a share of 13,4%, is the income bracket of 5–10 million VND Workers in Vietnam will make an average of VND 5.3 million in the fourth quarter of 2021 (General Statistics Office of Vietnam, n.d.) As a result, the respondents' income level is nearly above average.
Occupation: With 59.1% of the total responses (88 responses), the majority of the respondents are students Officers make up the second-largest group, accounting for 29 individuals or 19,5% of the total The remaining persons are freelancers with 28 people, respectively 18,8%.
Table 4.1: Demographic Characteristics of Respondents
7 How long have you used TikTok
8 Total time using TikTok per week
9 Your watch duration each time
Less than 30 minutes each time 51 34.2%
Table 4.2 Descriptive statistics of the scale items for independent, mediator and dependent variables
Min Max Mean Std Deviation N
The descriptive statistics of the mediator variables and independent variables are displayed in Table4.2 Except for ADC 1, the average mean of the independent variables is more significant than 3.5,indicating a high frequency of responses in the evaluation of advertising content The mediator variable's average mean will typically be greater than 3.5 in significance Only PCV9 reflects a value below 3.5 According to Table 4.2, the average standard deviation of the dependent variable,purchasing behavior, too showed a similar tendency, being less than 1.2 Moreover, each observable variable's standard deviation is around 1.
Result of reliability analysis (Cronbach’s Alpha)
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
4.2.1 Reliability analysis of Advertising content’ measurement scale
Advertising content’ measurement scale has Cronbach's Alpha reliability coefficient of 0.905 which is higher than 0.7, indicating that the measuring scale is highly reliable In addition, Corrected Item- Total Correlation of 6 observable variables from ADC 2 to ADC 7 meet the standards (greater than 0.4), in particular from 0.825 to 0.878; except for observable variable ADC 1 which is only 0.193 (less than 0.4) As a result, 6 observable variables from ADC 2 to ADC 7, respectively, are acceptable and will be used in the EFA analysis while ADC 1 will be omitted from the model.
4.2.2 Reliability analysis of Perceived value’ measurement scale
Perceived Value’ measurement scale has Cronbach's Alpha reliability coefficient of 0.854 which is larger than 0.7, indicating that the measuring scale is highly reliable In addition, Corrected Item- Total Correlation of 8 observable variables from PCV 1 to PCV 9 meet the standards (greater than 0.4 ) in particular from 0.639 to 0.730; except for observable variable PCV 9 which is only 0.200.
As a result, 8 observable variables from PCV 1 to PCV 8, respectively, are acceptable and will be used in the EFA analysis while PCV 9 will be omitted from the model
4.2.3 Reliability analysis of Purchase intention’ measurement scale
Purchase intention’ measurement scale has Cronbach's Alpha reliability coefficient of 0.822 which is larger than 0.7, indicating that the measuring scale is highly reliable according to the research of
In addition, Corrected Item-Total Correlation of all 3 observable variables from PCI 1 to PCI 3 meet the standards (greater than 0.4), in particular from 0.667 to 0.694 As a result, 3 observable variables from PCI 1 to PCI 3, respectively, are acceptable and will be used in the EFA analysis.
Exploratory Factor Analysis (EFA)
Table 4.4: KMO and Bartlett's Test of independent variables
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity Approx Chi-Square 1857.794 df 136
Component analysis The KMO (Kaiser-Meyer-Olkin) scale has the value = 0.872, satisfying the condition 0,5 ≤ KMO ≤ 1 Correlation test results together in each group of factors, Bartlett's Test has Sig value = 0.000 < 0.05 This indicates that the observed variables are correlated with each other in each factor group.
Table 4.5: Rotated Component Matrix of independent variables a
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.
The EFA factor analysis cited 03 components from 17 observable variables with Average Variance Extracted of 72.993% (more than 50%) to satisfy the standard at Eigenvalues larger than 1, with the approach of extracting principal components and permitting varimax rotation.
The Rotated Component Matrix cites 3 factors with 17 converging observed variables similar to the proposed model The loading system of observed variables in each factor is greater than 0.5, indicating that no observable variables are excluded.
Based on Cronbach's Alpha test and the above EFA analysis, the authors can state that the scales of independent components all meet the standards in terms of value and reliability These scales will therefore be included in the upcoming formal quantitative research parts as they satisfy the criteria corresponding to the research concepts The regression model will have 03 independent variables and all observed variables as the scale was originally built For the subsequent study, the independent variables will be given the average value of the respective observed variables.
Table 4.6: KMO and Bartlett's Test of dependent variables
Kaiser-Meyer-Olkin Measure of Sampling
Bartlett's Test of Sphericity Approx Chi-Square 244.723 df 6
Component analysis The KMO (Kaiser-Meyer-Olkin) scale has the value = 0.760, satisfying the condition 0,5 ≤ KMO ≤ 1 Correlation test results together in each group of factors, Bartlett's Test has Sig value = 0.000 < 0.05 This indicates that the observed variables are correlated with each other in each factor group.
Table 4.7: Component Matrix of dependent variables a
Extraction Method: Principal Component Analysis. a 1 components extracted.
EFA analysis’s result show that, with the method of PCA, the Varimax rotation allows quoting a factor with 4 observable variables and Average Variance Extracted reaches 57,232% (> 50%), Eigenvalue is 2.220 (Eigenvalue >1), the number of factor loading systems of all observed variables is greater than 0.5 So the scale meets the requirements Variables measuring employee engagement with the organization are used in the subsequent analysis The average value of the related observed factors will be applied to the dependent variable for the subsequent analysis.
The analysis results for EFA for the above response variable indicates that the factor loading of every observed variables meet the condition Factor Loading > 0.5 and are accepted Observed variables in the dependent variable factor after EFA analysis: PB1, PB2,PB3, PB4.
The Pearson correlation value is used by the author to determine how closely the independent and dependent variables are related linearly before performing a regression analysis There is no separation between independent and dependent variables in a Pearson correlation study; all variables are treated similarly After performing a regression analysis, multicollinearity must be considered if the factors are highly linked.
There was a performance of correlation analysis between the dependent variables Purchasing Behavior (PB) and the independent variables Advertising Content (ADC), Perceived Value (PCV) and Purchase Intention (PCI) In addition, it examines the connections among the distinct variables in order to identify those with strong relationships.
** Correlation is significant at the 0.01 level (2-tailed).
Sig Pearson correlation of the independent variables ADC, PCV, and PCI with the dependent variable PB are all less than 0.05 (from 0.000 to 0.004) Thus, there is a linear relationship between these independent variables and the dependent variable.
The independent variables all have a good linear correlation with the dependent variable with r coefficients from 0.237 to 0.318, all correlation coefficients are statistically significant In which, the relationship between the independent variable PCI and the dependent variable PB has the weakest correlation with r coefficient of 0.237, while the relationship between the independent variable ADC and the dependent variable PB has the strongest correlation with a coefficient r of 0.318.
The correlation between the independent variables is also sig>0.05, however, the correlation coefficients are all lower than 0.7, so the possibility of multicollinearity is very low.
Regression analysis
Based on theoretical and empirical findings of the previous studies, the authors decided to use the multiple regression model (OLS) The econometric model used is formulated as follows:
PB = f(AC, PV, PI) Or:
PB= βo + β1 x AC + β2 x PV + β3 x PI + U where:
- β1, β2, β3: slope coefficient of AC, PV, PI respectively
4.4.1 Testing the suitability of model
Std Error of the Estimate Durbin-Watson
The adjusted R Square coefficient = 0.178 indicates that 3 independent variables have influenced 17.8% of the alternate of the dependent variable, the remaining 82.2% is the influence of random error natural and out-of-model variables Durbin - Watson coefficient = 2.074, in the range of 1.5 to 2.5, so no first order series autocorrelation occurs.
Model Sum of Squares df Mean Square F Sig.
The F test used in the analysis of variance (Anova) is a hypothesis test about the fit of the overall linear regression model The analysis of the variance table reveals that the F-value is significant with Sig = 0.000 ( 0.05), which denotes that the included variables are statistically significant at the 5% level of significance and the provided linear regression model is consistent with the real data gathered.
Sig value F = 0.000 < 0.05, so the multiple linear regression model fits the data set and can be used The value of F = 11,312 we can conclude that the R-squared of the population is not 0 The linear regression model can be generalized and applied to the population.
It shows that 03 independent variables ADC, PCV, PCI all have the same effect on the dependent variable
PB because the normalized regression coefficients (β) of these variables are all positive and they have Statistical significance (Sig < 0.05) Comparing the influences of these three variables on the dependent variable Purchase Behavior (PB) ranking from the highest to the lowest as follows: Perceived Value (PCV) variable has the strongest impact (β2 = 0.323) ), followed by the variable Advertising Content (ADC) (β1 0.294), and finally the Purchase Intention (β3 = 0.240) Thus, hypotheses H1, H2, and H3 are accepted at the 95% confidence level This shows Advertising Content, Perceived Value and Purchase Intention have impacts on purchasing behavior of consumers in VietNam
We have specific regression model:
It can be seen that:
- The coefficient of AC is 0.294, showing that when Advertising content increases by one unit, the Purchasing behavior will decrease by 0.294 units.
- The coefficient of PV is 0.323, showing that when Advertising content increases by one unit, the Purchasing behavior will decrease by 0.323 units.
- The coefficient of PI is 0.240, showing that when Advertising content increases by one unit, the Purchasing behavior will decrease by 0.240 units.
Residuals may not follow a normal distribution for the following reasons: Using the wrong model, the variance is not a constant, the number of residuals is not large enough for analysis So we need to do many different surveys The simplest is to build a histogram of residuals Histogram and PP Plot below:
Figure 4.1: Regression Standardized Residual Histogram
From the graph, we can see that a normal distribution curve is superimposed on the frequency graph The bell curve is consistent with the graph of the normal distribution Mean mean is close to 0 (-5.21E-16), standard deviation is 0.989 close to 1, so it can be said: The residual distribution meets approximately standard Therefore, it is concluded that: The assumption of normal distribution of residuals (Normality) is not violated.
Figure 4.2: Regression Standardized Residual Normal P-P Plot
With the above P-P Plot chart, we can also detect the violation of the normalized residual assumption; the regression premise of the residual normal distribution won't be broken by the spots centered in the shape of a diagonal The distribution of residuals' percentiles, which are focused on a diagonal, specifically demonstrate that the premise of the residuals' normal distribution is valid
Consider the Scatter Plot graphic, which verifies the linear contact presumption If the present data deviates from the linear premise, it can be determined using the scatter plot between the normalized residuals and the normalized prediction values.
The presumption of a linear connection is not broken because the percentiles are dispersed at random and centered around the zero line.
Figure 4.3: Regression Standardized Predicted Value Scatterplot
Looking at the scatter plot, we see that there is a uniform dispersion Thus, the assumption of constant variance of the regression model is not violated.
The Durbin-Watson test yields the answer d = 2,074 as well Yahua Qiao (2011) states that autocorrelation typically does not appear for DW values between 1.5 and 2.5, so we can infer that the residuals are either unrelated to one another or that there is no connection between the residuals The aforementioned test findings demonstrate that the linear regression function's presumptions are not broken and that the constructed regression model is generally accurate.
Finally, VIF (Variance Inflation factor -VIF) reached the maximum value of 1,010 (