(Tiểu luận) topic the impact of key opinion consumers (kocs)on the purchasing intention of young consumers in vietnam

NATIONAL ECONOMIC UNIVERSITY NEU BUSINESS SCHOOL ASSIGNMENT ON RESEARCH METHODOLOGY Topic: The impact of Key Opinion Consumers KOCs on the purchasing intention of young consumers in Viet

NATIONAL ECONOMIC UNIVERSITY NEU BUSINESS SCHOOL

ASSIGNMENT ON RESEARCH METHODOLOGY Topic: The impact of Key Opinion Consumers (KOCs)

on the purchasing intention of young consumers in Vietnam

Lecturer: Assoc Prof PhD., Le Thi My Linh

Class: E-BDB 4

Group: 9

Members: Do Thi Ngoc Anh - 11220717

Hoang Quynh Chi - 11220967

Tran Thi Thanh Hang - 11222129

Nguyen Minh Hoa - 11222423

Le Tuan Kien - 11223154

Hanoi, 4/2023

I CASE STUDY 2

ABSTRACT 2

INTRODUCTION AND BACKGROUND 2

LITERATURE REVIEW 2

FINDINGS AND DISCUSSION 3

CONCLUSION AND RECOMMENDATIONS 6

II DESCRIPTIONS OF INTERVIEW 7

INTERVIEW QUESTIONNAIRE 7

ANSWER TRANSCRIPTS 9

a INTERVIEW 1 9

b INTERVIEW 2 12

III REFERENCES 16

THE IMPACT OF KOC ON THE PURCHASE INTENTION OF

YOUNG CONSUMERS IN VIETNAM

ABSTRACT

This case study is made to: (1) Examine the Vietnamese young generation’s point of views on KOCs; (2) Gain a deeper insight into the current impact of KOC on the purchasing intention and behavior of young consumers in Vietnam The research results were collected in Hanoi based on 2 offline in-depth interviews We interviewed 2 young Vietnamese citizens; one is a 19 year old female university student and the other is a 21 year old man who is studying abroad in France Our findings from 2 in-depth interviews indicates that: even though the definition of KOC has not been clearly understood and people are relatively skeptical about KOC’s reviews, the influence of KOCs still plays a crucial role in brand’s recognition and customer’s buying intention and behavior We also provide some recommendations as well to best utilize this new marketing trend

Keywords: KOC (Key Opinion Consumer), Young consumers, Vietnam, Purchasing

intention, Customer behavior

INTRODUCTION AND BACKGROUND

In recent years, the considerable growth of social media such as Facebook, Instagram, YouTube, and Tiktok in Vietnam has paved the way for the rise of KOCs (Key Opinion Consumers) In the early 2010s, brands often hired good-looking people such as KOLs (Key Opinion Leaders) to promote their products online, but now brands are willing to spend their money on KOCs because the KOCs are much more relatable and approachable, they are considered as the keys to the heart of consumers

Because of this trend, we found that KOCs have significant social impact, thus they also substantially affect the purchasing decisions of their young followers The value of Influence Marketing has risen dramatically, from 1.7 billion USD in 2016 to 13.8 billion

USD in 2021 In 2022, this figure was predicted to reach 16.4 billion USD (Jacinda Santor, 2022) Therefore, the KOC market in Vietnam has become a promising marketing trend.

LITERATURE REVIEW

There are many previous studies researching the impact of KOCs on purchase intentions in the world A study from Relevant Audience about KOLs, KOCs and the reasons why brands need them, has indicated some differences between KOCs and KOLs regarding initiative, audience and authenticity (2021) Another one from iPrima pointed to some other differences such as the number of followers, influence, and content Besides, in one research,

Mira Lee and Seounmi Youn picked randomly participants to assign six conditions in a 3

(eWOM platforms: independent product review website, brand’s website or personal blog) ×

2 (eWOM valence: positive or negative) between-subjects experimental design The result of

this study showed that participants exposed to the personal blog review were less likely to recommend the product than those on independent review or brand websites Lie Ao, Rohit Bansal, Nishita Pruthi, Muhammad Bilawal Khaskheli derived eight social media influencers’ characteristics, i.e., homophily, expertise, trustworthiness, credibility, congruence with the

product, entertainment value, informative value, and attractiveness (2023) Results revealed that these characteristics have a moderate to high correlation with customer engagement and purchasing intention The entertainment value of social media influencers has the strongest association with customer engagement among all the attributes studied in this analysis It also concluded that the credibility of influencers impacts purchase intention more than any other attribute In addition to previous studies in the field, this case study aimed to explore the impact of KOCs on purchase intention of young consumers in Vietnam

FINDINGS AND DISCUSSION

Findings

Our findings of this case study were divided into 6 main parts: Awareness and opinion about KOCs, Factors contributing to KOCs’ credibility, The KOC’s competitive edge, Personal experiences when following KOC reviews, Caution advice, and Predicting Future Impacts of KOCs These findings would help explain interviewees’ point of views on different aspects of the trend

1 Awareness and opinion about KOCs

It is found that the definition of KOC has not been clearly understood in Vietnam As being asked, both interviewees admitted that they had heard of KOC but could not state distinctly the differences between KOC and KOL Nevertheless, they still notice the 2 sides

of this trend

According to a 21 year-old man interviewee, the influence of KOC during the last few years through social media sites can be a double-edged sword to the business Whilst with positive feedback from KOCs, firms may enhance their brand awareness, boosting the procurement of products; negative reviews may result in depreciated brand images or even

boycott behaviors among consumers His opinion about the reliability of KOC is: “Bản thân anh thì chỉ tin vào review của KOC trong khoảng 40% thôi Tại vì anh thấy nên có chính kiến

cá nhân để đưa ra các lựa chọn phù hợp với bản thân Ngoài ra thì cũng cần có kiến thức để

có những quyết định đúng đắn Vì đôi lúc chúng ta cũng không biết sản phẩm được review có được nhận tài trợ không? Anh thấy các em nên xem các review của KOC như một hình thức tham khảo thôi.”

The 19 year-old interviewee who holds the same perspective, has taken KOC that are food reviewers as a typical example in the interview Some gourmets are able to evaluate the quality of the product properly even when everyone's taste is different That's why the stores’ revenue will be better if the review content is good, and vice versa Regarding the impact of KOC on purchasing decisions, they stated that it may depend on the sector and it could be more evident in certain markets Since KOCs rely on word-of-mouth to promote products, a common trait among current popular KOCs is their ability to communicate effectively and receive positive feedback from after-purchase customers, which can be highly appealing to

potential buyers and followers When she was asked about the KOCs, she said that: “Tùy chứ Tớ hơi rén vấn đề hàng fake nên những thứ kiểu như mỹ phẩm các thứ thì chắc 50% thôi Tại vì đúng với cơ thể người ta chứ chưa chắc hợp với mình mà, mà với cả phải trừ trường hợp KOC được nhãn hàng book nữa Tốt nhất là phải tự mình trải nghiệm sản phẩm hoặc nghe chuyên gia, còn KOC chỉ tham khảo thêm thui.”

2 Factors contributing to KOCs’ credibility

One of the interviewees, the 19- year-old girl, has identified several factors that she believes contribute to the credibility of KOC, including the quality of the content they

produce, the size of their following, and the level of engagement KOCs have with their audience Additionally, respondents reported that they were more likely to trust KOC who have a genuine interest in the product or service they are promoting and those who are transparent about their relationships with brands In terms of the characteristics that make KOC attractive to young consumers, this interviewee cited factors such as expertise, authenticity, and relatability These characteristics were seen as important because they helped to build trust and credibility with the audience Likewise, according to the other interviewee, 2 criteria for a credible KOC are objective views and integrity For example, the

21-year-old interviewee said that: “Đầu tiên là cái nhìn khách quan, tức là, người ta cần so sánh sản phẩm đang review với những mặt hàng của đối thủ cạnh tranh, rồi xét trên mặt bằng chung để đưa ra đánh giá khách quan nhất Ngoài ra thì cần trung thực khi trải nghiệm, không nên nhận tiền quảng cáo rồi nói mình không nhận tài trợ của bên nào để lên bài đánh giá này.”

3 The KOC’s competitive edge

The 21 - year - old interviewee supposed that young people now gravitate towards KOC’s reviews for purchasing decisions because of the physical experiences in KOCs’ videos These experiences bring the viewers the feeling of interaction with the goods In his

case, it is the technological device market “Anh nói về mảng công nghệ nhé Đối với anh, khi

mà xem KOC review sản phẩm thường thì họ là người chuyên môn về công nghệ, nên họ sẽ thường có những đánh giá mang tính chuyên môn hơn, có những video review sản phẩm đã qua tay họ sử dụng một thời gian nên có tính đảm hơn Thường thì QC truyền thống chưa thế lột tả hết được hiệu năng của sản phẩm và mang tính quảng bá sản phẩm mới ra thị trường hơn là tập vào trải nghiệm sản phẩm của người dùng.” As a matter of fact, compared to

advertisements with general information and digital effects, making the products seem unreal; viewing unboxing videos from KOCs makes him feel as if he is touching the products, getting to experience all the newly updated software and hardware This sense of engagement could be tempting to the customers, hence, a purchasing decision can easily be made Therefore, KOC’s reviews are seen as more persuasive than conventional advertising methods in his perspective Furthermore, the 19 year - old interviewee also has the same opinion as she shared some thoughts about the youth’s tendency to believe KOC’s review or

advertisement more is that KOC's review feels more friendly than the advertisement “Tớ nghĩ đơn giản là vì người trẻ như mình bây giờ được tiếp cận mạng xã hội nhiều hơn là xem

tv truyền thống, xem nhiều quảng cáo của KOC nên tin mxh hơn thôi.” As they have praised

and criticized the product and pointed out 2 sides of the product, it will be easier to build trust for customers

4 Personal experiences when following KOC reviews

Both interviewees admitted that they have at least once bought things after watching reviews from KOCs For the girl, it is often beauty and fashion items, followed by food and beverage products, whereas it is a technological device for the boy

On the one hand, the girl shared that when it comes to buying home goods, she has been fortunate enough to have not encountered any problematic situations She claims that she rarely encounters unfavorable situations, indicating that the products she buys generally

meet their expectations Besides that, she also shared some stories about some of her unappealing purchase experiences after following KOC recommendations The first one was

an experience at a cafeteria and restaurant As a person who enjoys trying new things, she has gone to so many different places Therefore, she considered some disappointing experiences

in these places normal and inevitable, as long as the product quality was not too bad She understands that these discrepancies depend on differing taste preferences, and recognizes that what may not be ideal for some may still be acceptable to others From this case, it is indicated that she focuses on finding positive aspects in these situations instead of dwelling

on negative experiences

In another situation, there came a time when she purchased a skincare product based

on the review of a famous blogger, but then she had an allergic reaction after using it But after checking the product origin and reading comments, she found no signs that it was fake

or did not match the description Despite encountering some unappealing experience, she still keeps a neutral thought when it comes to KOC recommendation Her case presents an interesting perspective on consumer experiences in relation to purchasing products

On the other hand, the man had been searching for a new mobile phone and decided

to watch reviews on YouTube before making a purchase He came across a review by KOC known as Vinh Vật Vờ, who he had been following for a while After watching KOC's review and analysis of the phone's specifications and performance, he felt confident that the product was suitable for his needs and was reasonably priced He made the decision to purchase the phone immediately after watching the video Four years have passed since he purchased the phone, and he is still using it to this day His experience shows the importance of taking the time to research and watch reviews before making a purchase By watching reviews from a trustworthy source, such as KOC, the man was able to make an informed decision and select

a product that met his needs Moreover, when he was asked about his disappointing purchase experience after watching KOC’s review about products, he shared that because he has only purchased a product based on KOC's review once and it was a success, he could not give his opinion about this problem He also said that he tends to buy products based on their own preferences rather than seeking advice or reviews from others

From respondents’ personal experiences when following KOC reviews, it can also be seen that KOCs’ recommendations play a significant role in influencing the buying intention

of young consumers in Vietnam

5 Caution advice

It is highlighted that people should not perfectly rely on the review from KOCs Both interviewees emphasized the importance of holding a subjective view to make judicious decisions as well as avoid being swayed by KOCs’ biased or even untruthful insights Through some unpleasant experiences after purchasing a skincare product and going to a coffee shop of the interviewed girl, it can also be seen that sometimes maybe the problem does not lie in the reviews of KOC or the products but lies in the differences between the reviewers’ and viewers’ opinion From the 19 year- old’s opinion, there are a lot of KOCs that try to criticize a low quality product for many supporters but sometimes the so-called

“bad” product was found not as bad as the reviews To put it in a nutshell, both interviewees had the common sense with the idea that KOC should only be consulted, not blindly believed Customers must have basic knowledge of the field and the products they have interest in to

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make the right purchase decision They both believe that in order to be smart buyers,

customers should research their interested products in advance, and consider KOC as a

reference only

6 Predicting Future Impacts of KOCs

After all, when predicting this trend in the future, both interviewees were positive,

stating that KOCs might become more prevalent in the foreseeable future because of the

growth of social media It is not only a motivation but also a challenge to KOC, which forces

them to create more healthy and trustworthy content for their viewers

Discussion

By analyzing these findings, the study sheds light on interviewees' perspectives and

viewpoints on various aspects of the KOC trend The discussion highlights the significance of

KOCs in shaping consumer opinions and purchasing decisions, emphasizing the role of

credibility factors in establishing trust Furthermore, it explores the unique advantages that

KOCs hold over traditional influencers and marketing channels The study also delves into

personal experiences shared by interviewees who follow KOC reviews, providing valuable

insights into the impact and effectiveness of KOC recommendations Additionally, the

discussion emphasizes the need for caution when relying solely on KOCs, pointing out

potential biases or conflicts of interest that may influence their opinions Lastly, the findings

contribute to predicting the future impact of KOCs, offering valuable insights into the

potential trajectory and evolving nature of this trend in the marketplace

This finding is different from earlier studies Nadarajan, G., Bojei, J., & Khalid, H

(2017)and Zhang, N., Yu, P., Li, Y., & Gao, W (2022) on the fact that analysis of personal

experiences offers unique insights into the real-life impact and efficacy of KOC reviews on

consumer behavior Furthermore, the cautionary advice provided in the study serves as a

reminder of potential biases or conflicts of interest that may influence KOC opinions,

encouraging consumers to exercise critical thinking Overall, the comprehensive discussion

of these findings enhances our understanding of KOCs and their influence on consumer

behavior

Further, this finding is similar with the research result of PHAM, M., DANG, T Y.,

HOANG, T H Y., TRAN, T T N., & NGO, T H Q (2021) concluding that they both

recognize the importance of these aspects and their relevance to understanding the

phenomenon of KOCs

CONCLUSION AND RECOMMENDATIONS

Conclusion

The rise of KOCs has created a new trend in the marketing industry, especially among

Vietnamese youths With the increase of online shopping and the availability of products,

consumers tend to rely on KOC reviews to make informed decisions It is the KOC that takes

an important role in shaping the purchasing behaviors of Vietnamese youths Moreover, the

popularity of KOCs among young consumers in Vietnam is driven by their expertise,

authenticity, and relatability Therefore, it is crucial for each KOC to maintain their credibility

by producing high-quality content, being transparent about their relationships with brands,

and engaging with their audience in a meaningful way Brands that understand the power of

KOC in influencing purchasing decisions can benefit from partnering with KOCs to reach

their target audience more effectively

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From the aforementioned case study, there are several key recommendations that can

be made to both consumers and businesses

For businesses in Vietnam, it is important for them to take advantage of KOC influences They should prioritize the influence of KOCs alongside traditional advertising in order to reach young consumers Moreover, building strong relationships with KOCs through incentives and creating engaging, shareable content can amplify brand image and drive greater success in this market

For customers, to enhance the shopping experiences, they should exercise critical thinking when watching KOC reviews instead of blindly trusting them It is essential for young consumers in Vietnam to consult multiple sources rather than relying solely on a single KOC By adopting this approach, they can gain a more comprehensive understanding of the product they are interested in by identifying the most commonly shared opinion across various sources

II DESCRIPTIONS OF INTERVIEW

INTERVIEW QUESTIONNAIRE

1 Anh/chị có thể giới thiệu đôi nét về bản thân được không ạ?

2 Anh/chị đã từng nghe qua khái niệm về KOC chưa? Theo anh/chị, KOC thường xuất hiện ở đâu?

3 Anh/ chị có hay theo dõi KOC nào không? Những KOC đó có điểm gì thu hút anh/chị theo dõi?

4 Anh/chị có tin tưởng vào những nhận xét, đánh giá của KOC không? Vì sao?

5 Khi mua hàng theo review của KOC, anh/chị thường mua những sản phẩm gì?

6 Anh/chị có thể chia sẻ một trải nghiệm đáng nhớ về lần mua hàng theo review của KOC được không? Tại sao trải nghiệm đó lại đáng nhớ với anh/chị?

7 KOC đã có cách review sản phẩm như thế nào khiến anh/chị ra quyết định mua hàng?

8 Khi theo dõi KOC, anh/chị đã bao giờ bị ảnh hưởng bởi những bình luận, nhận xét không tích cực của người khác về KOC đó chưa? Anh/chị có thể chia sẻ cụ thể hơn

về trường hợp này không?

9 Có khi nào anh/chị mua hàng theo review của KOC mà không đúng như review không? Nếu có, anh/chị có thể chia sẻ về trải nghiệm đó không?

10 Cảm xúc của anh/chị khi mua hàng theo review của KOC nhưng kết quả nhận được không như mong đợi ra sao?

11 Sau khi mua hàng không như mong đợi, anh/chị còn tin tưởng vào KOC đó nữa hay không?

12 Nếu sau này gặp phải trường hợp tương tự, anh chị sẽ xử lý thế nào?

13 Theo anh/chị, tại sao khách hàng trẻ có xu hướng tin tưởng KOCs hơn những phương pháp quảng cáo truyền thống?

14 Theo anh/chị, tại sao có nhiều khách hàng trẻ có xu hướng chỉ tin tưởng KOCs khi mua hàng mà không cần tìm hiểu kĩ về sản phẩm?

15 Theo anh/chị, một KOC có tâm là một người như thế nào?

16 Anh/chị có lời khuyên gì cho các bạn trẻ- những người thường xuyên tiếp xúc với mạng xã hội và có khả năng tiếp cận với các video của KOC?

17 Cuối cùng, anh/chị nghĩ rằng liệu KOC có tiếp tục tác động đến xu hướng mua hàng của giới trẻ trong tương lai không, nếu có thì tác động như thế nào?