Topic evaluate the influence of tiktok on viet nam generation z’s shopping trends

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES INFORMATION TECHNOLOGY FACULTY OF INTERNATIONAL RELATIONS RESEARCH METHODS TOPIC Evaluate the influence of Tiktok on Viet Nam Generation Z’s shopping t[.]

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

-INFORMATION TECHNOLOGY

FACULTY OF INTERNATIONAL RELATIONS

RESEARCH METHODS

…… ………

TOPIC: Evaluate the influence of Tiktok on Viet Nam

Generation Z’s shopping trends

Name: Nguyễn Lê Thanh Tuyền

Student’s ID: 20DH700590

Ho Chi Minh City, December 2022

CHAPTER 1: THE INTRODUCTION 2

1.1 Background 2

1.2 Objective 3

1.3 Theoretical basis 3

1.4 Research hypothesis 4

1.5 Significance of Study 5

1.6 Scopes 5

1.7 Limitation 6

1.8 Organization: Structure of the research 6

CHAPTER 2: LITERATURE REVIEW 8

CHAPTER 3: METHODOLOGY 16

3.1 Subject 16

3.2 Material 17

3.2.1 Questionnaire 17

3.2.2 Interview 18

3.3 Procedures 18

Preparation 18

Designing questionnaire and interview questions 18

REFERENCE 20

CHAPTER 1: THE INTRODUCTION 1.1 Background

As the world witnessed the tremendous impact of the COVID-19 pandemic onsocio-economic issues, our habit of surfing social media was growing up dramatically

COVID-19 started at the end of 2019 and spread around the world in 2020,causing people to stay at home, be unable to go out, and be kept in lockdown forseveral months… Because of the boredom staying at domestic a number of peoplebegan out the usage of tik-tok to remedy their boredom especially Generation Z

As well as this, in 8 of the 16 countries analyzed, TikTok is now the social appwith the highest level of monthly usage In Canada, France, the UK and the USA,TikTok replaced the Facebook platform for the top spot At the same time, e-commerce is not frictionless for Generation Z audiences, who are a key TikTokdemographic If the app can seamlessly integrate a shopping functionality, thenattracting purchases from its engaged audience may prove straightforward

There is a lot of evidence to prove that TikTok is becoming the most usedapplication in Southeast Africa According to a WARC Data analysis of App Anniedata on Android devices in 2020, there is 31% of average monthly consumption peruser compared to the average of the other top 5 social apps in Indonesia which has just10%

Vietnam was no outsider in this big picture Currently, Vietnam is the countrywith the highest number of TikTok users in Southeast Asia Statistics at the end ofMarch 2020, there are 13 million Vietnamese users The age group of Generation Z ismainly students from 12-25 years old On average, each person spends 28 minutes/dayaccessing TikTok

At the beginning of 2022, TikTok added a new function called “TikTokshop” This

is the place for all TikToker, influencers, or users to watch the preview and buydirectly the product in TikTok

Before TikTokshop officially launched in Vietnam, between TikTok and commerce platforms existed a form of affiliate marketing that can be considered as apartnership between TikTok and e-commerce platforms such as Shopee, Lazada, andTiki, KOLs will review and recommend products on TikTok and direct users who

e-want to buy products to the link in the video that links directly to the sales page on thee-commerce floor or attaches the link below the description.

The problem here is that young people have been affected by TikTok too muchfrom actions to words, it is called a trend on TikTok It has brought positive aspects toyoung people through new lessons, and good tips in life But at the same time, it alsobrings negative effects, violent behavior, addiction to TikTok, abuse, and excessiveshopping Moreover, when there is a TikTok Shop, TikTokers and sellers can attach alink to the store right on the video, and viewers can buy goods directly on TikTokwithout having to leave the application It is leading to Generation Z easily buyingproducts, causing negative effects on their daily life

Therefore, it can be said that TikTokshop is a serious competitor of commerce platforms soon.

e-With all that being said, it could be seen that Vietnam was one of the potential, fast-growing, and big market consumers of TikTok in the world This was the solid background that this research was based.

1.2 Objective

Research in this area aims to assess whether and to what extent TikTokinfluences Generation Z's purchase behavior In addition, the research identifiedfactors that influenced young users' overall satisfaction with TikTokshops, and offeredsome suggestions to improve them based on the specific objectives:

The elements that are affected directly by Generation Z when shopping on TikTok

● Current status of using TikTok gen Z

● Factors that make TikTok more appealing to Generation Z shoppers than otherplatforms

● TikTok's features set it apart from other social networks

● Improve the quality of TikTok’s service for Generation Z?

1.3 Theoretical basis

● Social Exchange Theory

Social Exchange Theory proposes that behaviors can be thought of as the result

of cost-benefit analyses by people attempting to interact with society and the

environment If a person believes that they can extract more of a reward throughbehavior than they lose by performing it, then the person will perform the behavior.

Social exchange theory uses the economic metaphor of costs and benefits topredict behavior It assumes that individuals and groups choose strategies based onperceived rewards and costs

The researcher uses this theory to analyze the shopping behavior of Generation

Z Users wants to use cheap but quality products In addition, users prioritize shopping

on TikTok because TikTok has many discount codes, and free shipping and isreviewed by influencers on that product, so the reliability from users will be high Thistheory should be used for research that will help researchers predict Generation Z'sshopping behavior

● Social learning theory

Social learning is a theory of the learning process of social behavior whichproposes that new behaviors can be acquired by observing and imitating others Itstates that learning is a cognitive process that takes place in a social context and canoccur purely through observation or direct instruction, even in the absence of motorreproduction or direct reinforcement

Social learning theory attempts to explain and predict behavior by looking atanother way that individuals process information This theory helps us understand thatpersonal examples and the mass media can be very important for achieving newbehaviors

The researcher uses this theory to analyze the shopping behavior of Generation

Z through trends on TikTok Currently, many users are selling on TikTok and makingpurchases on it So using this method will help researchers learn new behaviors ofGeneration Z by observing shortcut video, which is affected by the ìnfluencers orKOLs reviewing products

1.4 Research hypothesis

The research topic "Evaluating shopping trends of Generation Z" has had apositive impact on Generation Z's buying behavior Users don't have to go out and canstill buy the products they need In addition, TikTok gives users a new purchasefeature while users are surfing the web This feature helps users save time when

clicking on websites that just need to click on the link attached to that clip It can besaid that this is the form of purchase that is popular with Generation Z young peopletoday, "Just buy goods according to personal needs, while surfing TikTok".

It is hoped that with this research topic, the authors will provide a lot ofknowledge about Generation Z's shopping behavior Thereby, providing a practicalstudy, as a premise for those who want to research on this topic better understand theshopping behavior of the current generation Z

1.5 Significance of Study

This study was conducted to evaluate the influence of young users when usingTikTok to make some recommendations to improve the shopping experience atTikTok and improve service quality and satisfaction of users in the future Theconduct of the research will serve as a supporting contribution to the development ofTikTok and future researchers and similar studies in the related field

To TikTok: The findings of this research would be a source of information for

TikTok to rely on to identify the aspects that were influencing young user satisfactionwith the TikTok tool Thus, had some immediate action to maintain or improveoverall user satisfaction with their application

To researchers: It provides researchers in Vietnam with relevant data and insights to

study user satisfaction in the field of TikTok services, especially the futuredevelopment of the e-commerce industry

To related study: The results of the research served as a source of reference for

further study about evaluating user satisfaction in related topics

1.6 Scopes

The purpose of giving scope for this topic is to make it easier to analyze, clarifyand provide the most accurate and transparent information about TikTok However,within the framework of this thesis, the author needs to clarify the following aspects:

Scope of Time:

TikTok launched globally in 2016 and thrived in Vietnam from the end of 2019

to the beginning of 2020, due to the outbreak of the COVID pandemic, whichled to a prolonged blockade forcing people to stay at home society hasincreased significantly And during this time, TikTok has grown strongly and is

widely used in Vietnam According to data from ICT - Information andcommunication technology information site In Vietnam, the percentage ofusers using the TikTok app increased from 34% (in 2020) to 62% (in 2022),with usage time doubling from 4% to 8% TikTok users are highlyconcentrated between the ages of 18 and under 30 Another statistic also showsthat the number of TikTok users in Vietnam is ranked 6th in the world, ofwhich up to 4 million people under the age of 18 use this social network.Thereby showing the popularity of TikTok in Vietnam from that, the scope ofthis study will be localized in a large city in Vietnam, specifically Ho Chi MinhCity.

1.7 Limitation

The model was launched in 2021, in the context of social distancing due toCOVID-19 so there is a lack of large-scale information search online over 600 Ho ChiMinh young users of TikTok consolidate data for research efficiently in unlimitedtime ranges and modes The article research was done in a short time, with limitederror forums, integrated analysis, and some inside information

1.8 Organization: Structure of the research

The Topic: Evaluate the influence of TikTok on Generation’s shopping trends.

The content of the research was divided into 4 chapters:

Chapter 1: Introduction

An overall introduction about the research subject - objective hypothesis, scope,limitation, organization, the significance of the subject…

Chapter 2: Literature review

Generalized the current situation and operation of TikTok Besides, this chapter alsoreviewed the theoretical framework and studies that support the topic like TikTok,TikTok shop, and the way to buy goods, to suggest the most suitable research designfor the research subject

CHAPTER 2: LITERATURE REVIEW

The chapter also reviewed related theoretical works and models surroundingresearch matter to establish the most applicable research for the topic

Related Studies

APTTUS A Voyado company(2022), How is Generation Z shopping?

Based on the report of APTTUS A Voyado company which is an American

business-to-business software provider specializing in business process automation,about “How is the Generation Z shopping?”, it appears that influencers'recommendations have a strong impact on Generation Z's shopping habits

In this report, the author mentioned the current definition of Generation Z andtheir high shopping demand, as Generation Z has been called the most criticalconsumer group until now, has a strong purchasing power, and has a different view ofshopping and consumption than previous generations that directly affected theinfluencers in social media

Through the report the definition of Generation Z is “The generation afterMillennials, and the generation before Generation Alpha” (APTTUS, 2022, p 2) Incomparison to previous generations, Generation Z tends to be more well-educated andmore stressed In many cases, they fail to meet the high expectations they have ofthemselves It leads to the need to improve themselves so that they can be moreconfident in themselves, so daily clothes shopping is an inevitable thing forGeneration Z The demand for quality items and brands of shopping’ for Generation Zhas increased deeply in recent years It is analyzed in a specific way with data throughthe report They focus mon bout the brand of the products than the cost they must bepaid for it Furthermore, Generation Z Customers are likely to buy sustainable, high-quality products, following the report of First Insight that 73% of Generation Zcustomers are willing to pay more than e 10% for sustainable products withpersonalized style They will spare no money when paying a large amount of moneyfor clothing purchases

“Generation Z is more or less born with a phone in their hand”, so it is veryeasy for them to learn or search for new things on Social They use it to getinspiration, research products, and connect with their favorite brands Through this

report, the percentage of Generation Z who use Instagram to discover new brands,products, and, services is 60%, this is quite a large number that proves the significantinfluence of social networks (APTTUS, 2022, p 6) A Generation Z shopper is lesslikely to trust a company than an older shopper Instagram and YouTube influencerswith a large following and reach are the ones they prefer to follow There is a reasonwhy retailers are increasingly realizing the importance of influencer marketing overtraditional digital marketing Influencers account for a large part of the purchasingdecision, make sure that your eCommerce is going from traditional digital marketing

to influencer marketing All this information contributes a significant role to ourresearch, which helps researchers know the essential aspects of shopping effect onGeneration Z which is influencers and social media So we can objectively assess thatTikTok has a certain influence on Generation Z TikTok is a potential market forGeneration Z as it is the market with the largest number of influencers and reviewers

on all other social platforms

Through the analysis of the above article, the researcher found Generation Z'sshopping potential for the online shopping market They focus on reputable brandsthrough influencers on big brands and websites like Instagram, Youtube, andFacebook Thereby showing the far-reaching influence of TikTok on Generation Zbecause the TikTok platform is the foundation of the influencers, KOLs, by shortvideos that bring product experiences to customers, especially Generation Z With thattrend researchers can see the influence of social networking sites in general andTikTok in particular on Generation Z in the future.This whole report is valuable forreference with our research topic, it mentions about the shopping habits of Generation

Z and social media plays a big role in Generation Z Although this report is veryimportant for our research, it's still not closely tied with the subject of our research.The report is just about the definition of Generation Z and the online shopping habits

of Generation Z by influencers that distinguish our researcher from evaluating theinfluence of TikTok on Generation Z's shopping trends

Christian Montag; HaiBo Yang; Jon D.Elhai.( 2021) Header about the mind of using TikTok.

The report is based on a survey of the audience since TikTok was born inChina and spread beyond other countries With the evaluation of researchers from theDepartment of Molecular Psychology, Institute of Psychology and Education, UlmUniversity, Ulm, Germany; Department of Molecular Psychology, Institute ofPsychology and Education, Ulm University, Ulm, Germany; Faculty of Psychology,Tianjin Normal University, Academy of Psychology and Behavior, Tianjin, China;Department of Psychology, University of Toledo, Toledo, OH, United States;Department of Psychiatry, University of Toledo, Toledo, OH, United States In theresearch section, the researchers provide information on the level of knowledge aboutTikTok's biographies, reasons for using this platform, TikTok users, and prospects ofthe TikTok platform.

In this report, the author mentioned consumer data on the TikTok platform andconsumer sentiment Therefore, the audience using and affected by shopping trends onthe TikTok platform, specifically Generation Z, is aged 31 In this research paper, theTikTok platform became the most successful app in China in terms of globaldistribution As of November 2020, 800 million monthly users reported Estimated 1and 738 million first-time installs in 2019 TikTok is allowed for people 13 and older,but only messages Direct communication is allowed between users 16 years of ageand older Based on the users system, TikTok is gradually getting access to theapplication and besides, the number of people installing the application is alsoincreasing day by day Most of those interested in TikTok is Generation Z According

to the latest United Nations data, this demographic accounts for 32% of the globalpopulation Generation Z who grew up at the pinnacle of information technology isentering the consumer market and is the workforce of the future Understanding thedemographic characteristics and shopping habits of this target group will significantlyhelp businesses in business activities and marketing products and services TheGeneration Z demographic accounts for 32% of the total population of a quarter of theworld's population This number has affected TikTok in terms of purchases, andviewers Thereby showing the influence and importance of Generation Z on theTikTok platform

The user's image is influenced by marketing According to Singh, Shiv andDiamond Stephanie (2012) define as follows: Influencer marketing is the technique ofusing social media and social influencers to achieve the goals that businesses andorganizations have set Research by 7SAT in 2020 shows that the size of theinfluencer marketing market accounted for $69 million in 2019 In Vietnam, only 33%

of shoppers trust advertisements, trust focuses on referrals to 90% In the last 3 yearsalone, “Influencer Marketing” is the keyword with a 1500% increase in searches onGoogle, with 78% of marketers saying that they continue to spend their budget oninfluencers and more than 66% of marketers have intended to continue to increase thespending budget for influencers This marketing method has contributed to bringingTiKi and Shopee from the bottom of the top 5 to becoming two e-commerce sites with1st and 3rd place traffic in the third quarter of 2019 Currently, the two most popularinfluencer trends in 2020 include: : Influencer uses popular video, audio and trendexplosion combined with small influencers in the community (Mero influencer)

With the rapid development of technology, users and creators can both reacheach other via social networking platforms.TikTok grew strongly and became a morepopular application, especially among young people Statistics show that the rate ofusers of this application increases from 34% (in 2020) to 53% (in 2021); the amount

of time using this app will double, from 4% to 8% in 2021 The growth of TikTok andits influence on users is getting higher and higher

Through analyzing the above report, the researcher found that the influence ofshopping on TikTok platforms mostly comes from young people who have the habit

of using phones and surfing social networking platforms In the report the authormentioned the level of shopping influence in Vietnam, Most of the people who areinterested in TikTok are people of Generation Z According to the latest data of theUnited Nations, this demographic is 32% of the global population Realizing that, wecan apply this information and survey to everyone, especially Generation Z

Nguyen Van Tuan (2020) Nghiên cứu hành vi mua sắm trực tuyến của thế hệ Z ,

Research on online shopping behavior of Generation Z

In this study, the author mentions the current status of Generation Z's shoppingbehavior and solutions to improve Generation Z's shopping behavior in Vietnam In

the 4.0 era, instead of buying goods according to the traditional model of AIDA(Attention – Attention, Interest – Hobbies, Desire – Desire, Action – Action),businesses will be the factors affecting the decision of users Currently, the model that

is more suitable for users in the 4.0 era is the 5A model (Awareness - Awareness,Appeal - Attention, Ask - Ask, Action - Action, Advocate - Support) proposed byPhilip Kotler ( Nguyen, 2020, p 5)

In the research, the author gives many definitions of Generation Z from manydifferent sources According to the Merriam -Webster online dictionary, “Generation

Z is the generation of people born in the late 1990s and early 2000s (Nguyen, 2020,p3) According to Pew Research Center, Generation Z is defined as people born from

1997 onwards (Nguyen, 2020, p3) In Vietnam today, Generation Z is divided intotwo main groups: Those who have started working and those who are still heavilydependent on their parents Although Generation Z in general only accounts for about20% of the population of Vietnam; in which individuals born from 1996 to 2006 onlyaccount for about 13%, but Generation Z is having a great influence on today's sociallife (Nguyen, 2020, p3) Through the definitions given by the author, it can be seenthat Generation Z are young people they will be the main consumers in the future

Nowadays, consumers' purchasing decisions will depend a lot on the influence

of those around them in both online and offline channels, then they will carefullyconsider making a choice (Nguyen Nguyen , 2020, p 5) This entire report is areference to our research topic, which deals with the shopping habits of Generation Zand the big role social media plays for Generation Z

Through the Internet usage report, more than 74% of Generation Z say thatthey spend their free time online, surfing the web; 66% said Generation Z usesmultiple internet-connected devices at the same time Generation Z spends an average

of 10.6 hours online every day, Compared to previous generations, Generation Ztends to use social media more

The research shows the common characteristics of most of Generation Z such

as giving new trends, influencing consumers, liking interactive content, and especiallyloving mobile phones Figures from Appota show that up to 39% of Generation Zprioritize the use of mobile applications without caring about the online web version