Major: International Business Economics THE IMPACT OF TIKTOK MARKETING ON FAST FASHION CONSUMPTION BEHAVIOR OF HANOI STUDENTS AGED FROM 18 TO 22

DANG ANH DUNG 1811150070 | The Impact of Tiktok Marketing on Fast Fashion consumption behaviour of Hanoi Students aged from 18 to 22 docx FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS — GRADUATION THESIS Major International Business Economics THE IMPACT OF TIKTOK MARKETING ON FAST FASHION CONSUMPTION BEHAVIOR OF HANOI STUDENTS AGED FROM 18 TO 22 Student full name Dang Anh Dung Student ID 1811150070 Class A1 High Quality Program Intake 57 Supervisor PGS TS Nguyen Thanh B.

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

— -GRADUATION THESIS

Major: International Business Economics

THE IMPACT OF TIKTOK MARKETING ON FAST FASHION CONSUMPTION BEHAVIOR

OF HANOI STUDENTS AGED FROM 18 TO 22

Student full name : Dang Anh Dung

Student ID : 1811150070

Class : A1 - High Quality Program

Supervisor : PGS.TS Nguyen Thanh Binh

Hanoi, April 2022

1 The Rationale of the thesis

TikTok - the short video app grew rapidly during the Covid-19 pandemic, as people had times to explore the platform and connect with their viewers In the first quarter of the year 2020, TikTok was the most downloaded social app just in a quarter, with 315 million installs Until recently, this platform gains 1 billion active users all over the world, which makes TikTok the 7th social network sites, surpassing Twitter, Pinterest, LinkedIn and Snapchat

Marketers are drawn to TikTok as it offers a social media trend of creativity and collaboration among young audiences 90 percent of its users access the app each day, and they are extremely active on the app Moreover, 68 percent of TikTok users watch someone else’s video and 55 percent upload their own videos (Global Web Index, 2019)

TikTok offers millions of users opportunity to express themselves in any way they want, especially fashion It is possible for users to go viral without owning lots

of followers thanks to the algorithm of the platform This, along with the weakened pressure of following fashion standards, allows TikTok users express their creativity through new trends

The profit of the fashion increased remarkably, up to 44%, after videos of shopping, or matching clothes were viral on TikTok platform Furthermore, the time

an item goes from designers to the consumers is shortened due to more and more demand for fast fashion, which is prompted by more and more famous names share their creative process on TikTok

According to market research from Statista, the Vietnam Fashion market size

is roughly 5.6 billion USD, with a rise of about 8.8 per cent each year from 2019 to

2023 In particular, 97 per cent of the revenue is from non-luxury goods As more

and more fresh fashion bands enter the market, the fast fashion industry is more and more of dependence on marketing strategies, especially following trends

For all of the aforementioned reasons, my topic “The Impact of TikTok

Marketing on Fast Fashion consumption behavior in Hanoi students aged from

18 to 22” was started into research This thesis is conducted with a view to suggest

marketing strategies for new fast fashion brands in Vietnam via TikTok social media platform

2 Current researches on the topic

There have been some previous researches related to the topic: “The impact

of TikTok Marketing on Fast Fashion consumption behavior of Hanoi students aged from 18 to 22”.

First, Bachelor’s Thesis “TikTok As a Tool for International Growth in

The Fashion Industry - Case Study for House of Halla Oy” by Oona Willman

in 2021 mentioned TikTok application in terms of how it works, how it has become trending and recommendations for a sustainable fashion brand on this social media However, this research analyzed the Impact of TikTok on The Fashion Industry as a whole and just gave recommendations for a sustainable brand, whose business model is of great difference from the Fast Fashion’s

Second, “The Influence of Advertising in TikTok Social Media and

Beauty Product Image on Consumer Purchase Decisions” by Metta Darmatama and Rezi Erdiansyah in 2021 delved into the process of consumer

purchasing decision making affected visually by TikTok videos This research was about the Beauty Product Industry, whose products are quite similar to the Fashion Industry’s as both are all about human beauty However, the differences in the core value of the products of two industries affects differently, in a certain extent, on consumer behavior

3 Research Objectives and research Tasks

3.1 Research Objective

The objective of this thesis is to suggest effective and suitable strategies for new fast fashion brands in Vietnam in this social networking platform

3.2 Research Tasks

The Research Objectives are divided into Research Tasks (RT) as follows:

1) Building the theoretical framework on consumer behavior

2) Introducing Theory Acceptance Model - TAM and previous research 3) Proposing research model

4) Conducting preliminary research

5) Conducting official research

6) Summarizing research results

7) Recommending strategies for new fast fashion brands in Vietnam

4 The Subject and Scope of the thesis

4.1 The Subject of the thesis

Based on the research objective and tasks, the author determines the research subject is the fast fashion consumption behavior

4.2 The Scope of the thesis

4.2.1 Time Scope

The period researched is from April to May of 2022 to observe and analyze, then give recommendations for new fast fashion brands in Vietnam

4.2.2 Spatial Scope

Due to the limitation of the thesis content, all Vietnamese consumers are not mentioned The research limits the spatial scope within the region of Hanoi This means that all students from 18 to 22 years old living in Hanoi, regardless of their origin, are brought into research

4.2.3 Content Scope

In this thesis, the analysis on Fast Fashion consumption behavior of students

affected by TikTok is based on Unified Technology Acceptance And Use

Technology - UTAUT.

Although the TAM model is initially designed to explain and predict the behavior of individuals on the use of information systems, it has been used in many studies Previous studies have demonstrated the applicability of the TAM model to online advertising For example, Demangeot and Broderick examined a modified technology acceptance model (TAM) that was developed to test the intention to use SMS advertising Based on the ability of TAM and short video including a wide variety of online media services and SNS, it is a reasonable choice to consider the TAM model to model and quantify user acceptance of short-video ads

The TAM model has been widely adopted in many existing studies In this paper, the author also adopt the TAM model as the basic research model There are two reasons First, many studies in social media have applied the TAM model to analyze the acceptance factors of online marketing and social network marketing The research scope of this paper, i.e., short video, has the characteristics of both online media and social networks; thus, it is a reasonable choice to select the TAM model Second, the basic factors in the TAM model, namely perceived usefulness (PU) and perceptual ease of use (PEOU), are suitable to distinguish the usefulness

of online marketing and the impact of live-video technologies

5 Structure of the thesis

Apart from lists of abbreviations, figures, tables and references, the thesis

“The Impact of TikTok Marketing on Fast Fashion consumption behavior of Hanoi Students aged from 18 to 22” is divided into 4 chapters:

● Chapter 1: This chapter provides theoretical framework, such as definitions

about customer, consumer, need, and consumer behavior models, previous studies and proposed hypothesis

● Chapter 2: This chapter points out the progress of how the research is

conducted and the methodology in each steps

● Chapter 3: This chapter provides the result of each analysis and of testing

the hypothesis proposed in chapter 1

● Chapter 4: This chapter gives recommendations for new fast fashion brands

in Vietnam and lists out some limitations of the research and proposes opinions for further studies

Table of content

Chapter 1 Theoretical Framework about consumer behavior

1.1 Definitions and theories on consumer behavior and TikTok marketing

1.1.1 Definitions on consumer behavior and TikTok marketing

1.1.2 Unified Theory of Acceptance And Use of Technology - UTAUT

1.2 Previous researches related to the impact of TikTok on consumer behavior

1.2.1 Domestic researches

1.2.2 International researches

1.3 Proposed research models, hypothesis and preliminary scale on the impact of TikTok on consumer behavior

1.3.1 Proposed research models

1.3.2 Research hypothesis

1.3.3 Preliminary scale

Chapter 2 Research progress and methodology

2.1 Research progress

2.1.1 Theoretical basis to build research progress

2.1.2 Research steps

2.2 Methodology of collecting data

2.2.1 Methodology of collecting primary data

2.2.2 Methodology of collecting secondary data

2.3 Methodology of processing and analyzing data

2.3.1 Data cleansing and encryption

2.3.2 Reliability coefficient analysis of the scales (Cronbach’s Alpha) 2.3.3 Exploratory factor analysis (EFA)

2.3.4 Pearson correlation coefficient analysis

2.3.5 Analysis of Variable (ANOVA)

2.3.6 Partial least squares structural equation modeling (PLS-SEM)

Chapter 3 Result of verifying the impact of TikTok marketing on Fast Fashion consumption behavior of Hanoi students aged from 18 to 22

3.1 Describing research sample population

3.1.1 Sample size

3.1.2 Representative characteristics of sample population

3.2 Results of processing and analyzing data

3.2.1 Result of Reliability coefficient analysis of the scales (Cronbach’s Alpha)

3.2.2 Result of Exploratory factor analysis (EFA)

3.2.3 Result of Pearson correlation coefficient analysis

3.2.4 Result of Analysis of Variable (ANOVA)

3.2.5 Result of Partial least squares structural equation modeling (PLS-SEM)

3.3 Results of testing the hypothesis

3.3.1 The impact of Social influence on consumer behavior on TikTok social platform

3.3.2 The impact of Intrusiveness on consumer behavior on TikTok social platform

3.3.3 The impact of Informativeness on consumer behavior on TikTok social platform

3.3.4 The impact of Perceived risk on consumer behavior on TikTok social platform

Chapter 4 Limitations of the research and recommendations on TikTok marketing for new fast fashion brands in Vietnam

4.1 Limitations and proposal

4.1.1 Limitations of the research

4.1.2 Proposal for further studies

4.2 Recommendations on marketing on TikTok platform

4.2.1 Recommendation about Comment control

4.2.2 Recommendation about Video content

PROPOSED THEORY MODEL

TECHNOLOGY ACCEPTANCE MODEL -TAM

The Technology Acceptance Model (TAM) was developed to describe users’ behavior to accept or reject the use of new technologies The TAM model defines

two variables, namely perceived usefulness and perceived ease of use, to quantify

user attitude to information technology, which in turn can be used to measure user acceptance of information technologies

International research:

“Health Advertising on Short-Video Social Media: A Study on User Attitudes Based on the Extended Technology Acceptance Model” published in

26 February 2020 by Jie Zhao and Jianfei Wang analyzed human attitudes to

health on short-video social platforms by applying Technology Acceptance Model Research model was designed as follow:

After evaluating the result of the research model, the author recognizes that intrusiveness, informativeness and relevance are the antecedent variables that impact perceived usefulness

Domestic research:

“Factors impact on online buying intention of customers in Hue”

published in science magazine, Hue University, 3rd edition, 2012 by Duong Thi

Hai Phuong analyzed customers’ purchasing intention on online platforms also by

applying Technology Acceptance Model

Research model was designed as follow:

After evaluating the result of the research model, the author recognizes that perceived risk is a negative impact on perceived usefulness factor

Proposed research model and research hypothesis:

1 Research model

The author proposes a research model based on the Technology Acceptance Model - TAM and two researches There are 4 variables from the previous studies and 1 variable the author will explain it is essential

● Social Influence (SI): this term is used in the extended version of TAM,

Unified Theory of Acceptance and Use of Technology - UTAUT According

to Venkatesh et al 2003, this is defined as the expected influence of others on user to start and continue using the technology In this case, it might mean the influence of family, friends, other users, this might be comments on TikTok posts, recommendations from friends, opinions of family

● Intrusiveness (IT): Intrusiveness describes the extent to which the content is

messy and irritating to users

● Informativeness (IF): Informativeness represents the information that is

helpful and resourceful It can inform users about product alternatives

● Perceived usefulness (PU): refers to the degree to which individuals

perceive the use of fashion videos If users think that short fashion video are useful, they are much likely to have a positive attitude on using them Attracting and motivating short videos can also lead to purchase intention

● Perceived ease of use (PEU): is defined as the mobile phone users’

expectations about the effort required to use video messages

● Attitude (AT): towards video is regarded as an important factor because

consumers’ attitude can influence purchase intention

Note that the author only set up the Hypotheses H1–H3 to measure the impact of the three constructs on PU but not on PEU This is mainly because the constructs are all about the information offered by TikTok videos, but not about the operations or behavior of videos On the other hand, the perceived ease of use (PEU) refers to the ease of operations that users perceive, i.e., PEU is operation related Thus, in this paper, the author only focus on the impact of the constructs on PU

2 Research hypothesis

Hypothesis 1 Social influence on TikTok affects both positively and negatively to

users’ perceived usefulness

Hypothesis 2 Intrusiveness of TikTok video content affects negatively to users’

perceived usefulness

Hypothesis 3 Informativeness of TikTok video content affects positively to users’

perceived usefulness

Hypothesis 5 Users’ perceived usefulness affects positively to their attitudes

towards the video content

Hypothesis 6 Users’ perceived usefulness affects positively to their purchase

intentions

Hypothesis 7 Users’ perceived ease of use affects positively to their perceived

usefulness

Hypothesis 8 Users’ perceived ease of use affects positively to their attitude

towards the video content

Hypothesis 9 Users’ attitudes towards the video content affects positively their

purchase intentions

Hypothesis 10 Users’ perceived risk affects negatively their purchase intentions Hypothesis 11 Users’ purchase intentions affects positively their purchase

behaviors

QUESTIONNAIRES ABOUT THE IMPACT OF TIKTOK

MARKETING ON FAST FASHION CONSUMPTION BEHAVIOR OF

HANOI STUDENTS AGED FROM 18 TO 22

Part 1 Tick (x) in your answer

1 Where do you live?

□ Hanoi

□ Others

2 Do you use social media platform TikTok?

□ Yes

□ No

3 Have you ever bought any clothe items when you watched a video on TikTok?

□ Yes

□ No

Part 2.

Statements

Totally not agree

Not agree

Totally agree

Social Influence

products in the TikTok videos

SI2

I usually ask my friends and my

family for their opinions about an

item I see on TikTok.

Intrusiveness