Khóa luận tốt nghiệp Kinh tế chính trị: Research on the impact of Electronic Word-of-Mouth (eWOM) on students’ purchasing decision on the Tiktok shop E-commerce site in Hanoi

GRADUATION THESISTOPIC: RESEARCH ON THE IMPACT OF ELECTRONIC MOUTH EWOM ON STUDENTS’ PURCHASING DECISION ON THE WORD-OF-TIKTOK SHOP E-COMMERCE SITE IN HANOI LECTURER: Ph... GRADUATION TH

GRADUATION THESIS

TOPIC: RESEARCH ON THE IMPACT OF ELECTRONIC MOUTH (EWOM) ON STUDENTS’ PURCHASING DECISION ON THE

WORD-OF-TIKTOK SHOP E-COMMERCE SITE IN HANOI

LECTURER: Ph D PHAM THỊ LINH

STUDENT: NGUYEN MINH ANH

STUDENT CODE: 19050013 GRADE: QH-2019-E ECONOMIC CLC 5

GRADUATION THESIS

TOPIC: RESEARCH ON THE IMPACT OF ELECTRONIC MOUTH (EWOM) ON STUDENTS’ PURCHASING DECISION ON THE

WORD-OF-TIKTOK SHOP E-COMMERCE SITE IN HANOI

LECTURER: Ph D PHAM THỊ LINH

STUDENT: NGUYEN MINH ANH

STUDENT CODE: 19050013 GRADE: QH-2019-E ECONOMIC CLC 5

the Faculty of Political Economy for creating favorable conditions and

supporting me to carry out the project with some of the most shared materials Inparticular, I would like to express my deep gratitude to Ph.D Pham Thi Linh hasenthusiastically guided and guided me during the past time She guided,

contributed ideas and imparted valuable knowledge to me in the most complete

way on the topics of the material to help me complete the topic of this graduationthesis

However, due to limited knowledge, my research paper cannot avoid errors and

misunderstandings That's why I look forward to receiving your comments so

that my research can be more complete and can contribute to the community.

Finally, I would like to send my best wishes to you and your family Wish you

always healthy and achieve success on your teaching path

Thank you sincerely!

StudentNguyen Minh Anh

guidance of Ph.D Pham Thi Linh, absolutely do not copy previous research

works The secondary information used in the research is clearly sourced andproperly cited

I take full responsibility for the scientific and originality of this research topic

StudentNguyen Minh Anh

LIST OF ABBREVIATIONS - 65G G0 000000096089 06INTRODUCTTION <5 <5 5< 5 5 s Ọ 9 cọ Họ 0 0.0009.000 000040 00966090680 1

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2.1 Research suJ€CẨS cv TH re 42.2 Scope of the research 8n eo 4

3 Research IT\SSIOH G1 1910111101 1910 E9 nọ HH nà 4

4 Research Metho - - + + + E111 1 1E TH TH nh ng TH tệp 5

5 Topic Structure 7211 ốỐe 5CHAPTER 1 OVERVIEW AND THEORETICAL BASIS OF

ELECTRONIC WORD OF MOUTTH o 5< 5 555 «5< 55s 5 ssssesess5 7

1.1 Literature RÑ€VICW - LH TH TH HH Ho non kp 7

1.1.1 Overview of research on factors affecting online shopping intention 71.1.2 Overview of the literature studying the impact of electronic word of

mouth (EWOM) on online shopping (Ì€CLSIOPIS - s5 «+ + +sx+ 101.2 Theoretical basis c1 111911 HH ngư 13

1.2.1 Electronic COIHHNUHICŒÍHOHH G5 5< 1011301 1k rre 131.2.2 Electronic Word Of MOUth - <5 < +3 + **E+*kE+eee+eeeexss 151.2.3 Tiktok Shop €-COMMEYCE Site SG SE key 21IJN in 0n ốẶốẶóẶ,aaa 26CHAPTER 2: METHODOLUOY o G55 < G9 9H 0000000006896 8 29

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2.2.1 Methods of data CỌÏ€CHHOHH s5 << 18+ E£*VEE+eeEE+eeekeeeeeesee 322.2.2 Methods of data analysis ANd PrOCeSSING 55s kv+++ 34CHAPTER 3 RESEARCH RESULTTS o 55 <5 55 S5 s55 55695 5e 37

3.1 Descriptive Statistical R€SuÏ(S - - c1 SH ng ng re, 37

3.1.1 Survey sample is distributed according to demographic variables 37

` 1.4 nốẦ 403.2 AnalySIS results - + nH H H n nH H ry 48

3.2.1 Evaluate the reliability of the $CŒÏ€ s5 «SE sskkeseeeesek 493.2.3 Testing the research model Of Nypotheses «<< «ss<++++++++ 633.2.4 Average disCTeEPANCY HQÏS§ÙS G1111 key 78 CHAPTER 4 DISCUSSION OF RESEARCH RESULTS AND

RECOMMENDA TIONG o << HH Họ HT 000000009 68900 82

4.1 DISCUSSIOT SG Q H H n H H nnt 824.2 RecommenndafIOTS - <6 2< E22 11211111111 111 1 1g ng kt 82

4.2.1 Recommendations for DUSIN@SSCS 5c SE Sseeeseereree 824.2.2 RECOMMENAATIONS tO COTISHIHICS SG << x11 8E 1E keeeee 844.2.3 Recommendations for TiktOK SNOP c5 SE E+seeEeeeeeeses 85 CONCLUSIOÌN 0G Go cọ nọ cọ TH cọ 0 00 0.00000004006001 8.8 87 REEFERENCESS G6 <5 SH HH c0 0000006004006 6009068906 89 APPENDIES so Go Họ 0.000000000000000066806008006008056008008808080 92

Table 1.1 The Difference between WOM and eWOM 30-31

Table I.2 | The Difference between Tiktok Shop and other 37-39

e-commerce sitesTable 3.1 Statistical table of the proportion of male and 50-51

female students accessing electronic Word ofMouth (eWOM)

Table 3.2 | Statistical table of the percentage of students 51

with access to Electronic Word of Mouth(eWOM)

Table 3.3 Statistical table of frequency of access to 52

student eWOMTable 3.4 | Statistical table of the percentage of students 53

using Tiktokshop after accessing eWOMTable 3.5 | Average Statistical Sample of Information 57

NeedsTable 3.6 | Average Statistical Sample of Information 57-58

Quality from eWOMTable 3.7 | Average Statistical Sample of Reliable 58

SourcesTable 3.8 | Average Statistical Sample of eWOM 59

Quantity

AcceptanceTable 3.11 | Average Statistical Sample of Purchase 61

DecisionTable 3.12 | Cronbach’s Alpha coefficient analysis of 62

Information needsTable 3.13 | Cronbach’s Alpha coefficient analysis of 63

Information quality from eWOMTable 3.14 | Cronbach’s Alpha coefficient analysis of 64

Reliable SourcesTable 3.15 | Cronbach’s Alpha coefficient analysis of 65

EWOM QuantityTable 3.16 | Cronbach’s Alpha coefficient analysis of 66

Attitude with information Table 3.17 | Cronbach’s Alpha coefficient analysis of 67

Information acceptanceTable 3.18 | Cronbach’s Alpha coefficient analysis of 68

Purchasing DecisionTable 3.19 | KMO and Bartlett’s test results for 69

independent variableTable 3.20 | Eigenvalues and variance extracted from 69-70

independent variables

variables: Information Acceptance Table 3.23 | Eigenvalues and variance extracted from 73

dependent variables Information AcceptanceTable 3.24 | Componet Martrix for the dependent variable 73

Information AcceptionTable 3.25 | KMO and Bartlett’s test results for dependent 74

variables: Puchasing DecisionTable 3.26 | Eigenvalues and variance extracted from 74-75

dependent variables Purchasing DecisionTable 3.27 | Componet Martrix for the dependent variable 75

Purchasing DecisionTable 3.28 | Pearson’s correlation analysis 76-78Table 3.29 | Adjust R square result 79

Table 3.30 | ANOVA result for the dependent variable 80

Information AcceptanceTable 3.31 | Regression analysis results of the independent 81

variablesTable 3.32 | Adjust R square result of dependent variable 85

Purchasing DecisionTable 3.33 | ANOVA result of depedent variable 86

Purchasing Decision

variable Table 3.36 | Levene test results of Accessed to EWOM 92

Table 3.37 | ANOVA results of Accessed to EWOM 93

Figure I.I | Theory of Reasoned Action/ TRA 40

Figure 2.1 | Proposed research model 42

Figure 3.1 | Frequency of standardized residual of 82

dependent variable Information AcceptanceFigure 3.2 | Normal P-P Plot of Regression Standardized 83

Residual of dependent variable InformationAcceptance

Figure 3.3 | Regression Standarized Predicted Value of 84

Dependent Variable Information AcceptanceFigure 3.4 | Regression Standardized Residual of 88

Dependent variable Purchasing DecisionFigure 3.5 | Normal P-P Plot of Regression Standardized 89

Residual Dependent variable: PurchasingDecision

Figure 3.6 | Regression Standardized Predicted Value of 90

Dependent variable Purchasing Decision

EWOM Electronic Word of Mouth

WOM Word of Mouth

TRA Theory of Reasoned ActionTPB Theory of Planned BehaviorSEO Search Engine OptimizationFOMO Fear of missing out

KOL Key Opinion Leader

KOC Key Opinion Consumer

In today's 4.0 era, the Internet is a computer network that allows millions of users to communicate daily Users have access to many resources on the internet

to find information and give opinions, think and connect with communities aroundthe globe The old industrial age has been radically changed by an era of industrialrevolution 4.0 with a huge amount of information that can be easily accessed byeveryone in any country, at any time

With the explosion of information and the increasing development of theinternet, it has completely changed the method of searching for productinformation in online shopping of consumers Traditional methods of reachingcustomers are gradually disappearing, besides consumers are becoming morebored and wary of advertising messages and product marketers everywhere, theInternet has provided another better method for consumers, which is ElectronicWord of Mouth (eWOM) Electronic World of Mouth (eWOM) is the coreresearch content in consumer behavioral science In the context that Vietnam isexperiencing an incredible growth and use of the Internet, eWOM is a highlyeffective marketing tool in business communication and online shopping Thismethod has helped customers find, access information and consider advice on thequality of products, related to consumption from other consumers easily, affectingthe promotion of trade and promoting the purchase decision process of consumers.

After using the product, consumers can leave comments, comments,reviews about the experience of themselves, discussion forums on communitynetworking sites such as Facebook, Instagram Online shopping applications and

products that are good and suitable for themselves It can be seen that review siteshave a direct influence on consumers' purchasing decisions and these have created

an increasingly large and diverse online word-of-mouth community, greatlyaffecting the business of individuals, small businesses or even large businesses Therefore, with the unique characteristics of the Internet, electronic word-of-mouth (eWOM) has received a lot of attention from marketing researchers andmanagers The form of online shopping is growing and bringing a lot ofoutstanding efficiency, Vietnam is becoming the second largest e-commercemarket in Southeast Asia with a young population and a large number of Internetusers According to Vietnamnet, in 2020, there will be about 49.3 millionconsumers participating in online shopping The percentage of Internet usersparticipating in online shopping increased from 77% in 2019 to 88% in 2020 Fromthere, it can be seen that Vietnam is making a leap in the e-commerce industry andonline trading and exchange methods in the market This also accelerates thegrowth of eWOM in internet shopping in Vietnam.

Of Vietnam's more than 99 million people, as of January 2023, 77.93million people use the Internet, about 78.35% of the total population, and morethan a third of these people use the Internet, mainly young people who live in citiesand are always ready to shop It is easy to see that the majority of internet usersare between the ages of 15 and 24, the age of students With the increasing demandfor shopping and availability, the main customer group and the main target of e-commerce and online shopping in recent years is this group Therefore, I have

In addition, I realize that there is not much research on the impact ofelectronic Word of Mouth (eWOM) on the choice of online shopping in majorcities, economic and political centers, rich in potential and strong development in the e-commerce industry like Hanoi.

In addition, the Tiktok shop platform is an e-commerce platform that can beaccessed directly from the Tiktok social networking platform with up to 1| billionmonthly users by September 2021 According to Metric.vns e-commercestatistics, the monthly revenue from Tiktok Shop is currently equal to 80% ofLazada's revenue over the same period and 4 times that of Tiki Data fromSeptember 13, 2022 to October 12, 2022 according to Metric, in just 30 days,Tiktok Shop has achieved revenue of VND 1655 billion, with 14 million productssold It can be seen that Tiktok Shop is a potential e-commerce platform forbusinesses to optimize conversion rates and revenue

Therefore, the research topic "Researching the impact of electronic word ofmouth (eWOM) on the purchase decision on Tiktok Shop e-commerce site ofstudents in Hanoi city" has been selected and completed In the article, a clearanalysis of the theoretical basis of eWOM word of mouth, the impact of eWOM

on the online shopping choice behavior of consumers, especially students inHanoi

The topic was implemented to answer the question: “What should TiktokShop managers do to attract and leverage the student market through improvingeWOM?”

2 Objects and scope of the research

2.1 Research subjects

The impact of electronic word of mouth (eWOM) on the purchase decision

on the Tiktokshop e-commerce site of students in Hanoi.

2.2 Scope of the research

e Spatial scope: Universities in Hanoi city

e Time Range: Student Purchasing Behaviors Investigated in 2022

e Scope of content: The research mainly revolves around analyzing the

impact of word-of-mouth including causes, positive effects on consumers'purchasing decisions and proposing solutions for businesses

3 Research mission

In order to achieve the set goals, the following tasks must be performed:

e Overview of research works and development of theoretical basis

e Make a survey questionnaire on factors affecting the shopping behavior on

Tiktok Shop of students in Hanoi city

e Based on the results of the questionnaire, perform the work of testing,

analyzing data from which to draw assessments and conclusions

of respondents participating through an online form page.

Forms and questionnaires are divided into 3 main parts

Part 1: The demographic information of respondents such as full name,university you are attending, age.

Part 2: Learn about the level of electronic word-of-mouth (eWOM)access of students of universities in Hanoi city

Part 3: Learn and evaluate the impact of electronic word of mouth(eWOM) on purchasing decisions on Tiktok Shop e-commerce site

e Statistical analysis methods: Using SPSS 26 analysis tools and data reading

and analysis methods

e Process of data analysis: Testing the reliability of the Cronbach Alpha scale;

Testing the suitability of KMO and Barlett variables; Analyzing thefrequency and fad of variables from which to make comments andconclusions

5 Topic structure

In addition to the introduction, conclusion and appendix, the topic issummarized into 4 chapters:

Chapter 1: Overview and theoretical basis of electronic word of mouth

Chapter 2: Research method

Chapter 3: Research results

1.1.1 Overview of research on factors affecting online shopping intention

According to Ha Thi Kim Hue (2020) in the study: " Factors affecting theintention to buy fashion online at foreign websites" The study used a quantitativemethod with the questionnaire survey obtained 345 questionnaires The resultsshow that there are five factors that positively affect purchasing intentions: price,product quality, positive online reviews, perceived ease of use and trust, and onenegative influencer: product risk Finally, the study offers policies for foreignonline retailers to build effective strategies to attract Vietnamese consumers.

According to Huynh Thi Kim Ngan (2018) in the study " Research on factorsaffecting consumers' online shopping intentions for agricultural products" Theinitial proposal development study included four factors that influence consumers'purchasing intentions: Reference Groups, Positive Online Reviews, PerceivedValue, and Cognitive Risk The study consists of 18 observational variables, afterevaluating the reliability and running EFA factor analysis, the author haseliminated 1 variable of the Perceived Value factor Research results show that theintention to buy agricultural products online is influenced by 4 factors: reference group, positive online comments, perceived value and perceived risk Specifically,the positive online Comments factor had the most significant influence, followed

by Cognitive Risk, Perceived Values, and Reference Groups The study alsosuggests management implications for entrepreneurs in this field to help them have

a better overview so that they can build a strategy that is suitable for their business

data, through electronic questionnaire surveys and paper obtained 439 samples.Research results show that Vietnam's Generation Z is strongly influenced by socialnetworks, Hallyu, social norms and useful perceptions In addition, consumers' decisions are also influenced by intermediate factors such as beliefs, social norms, product participation, product quality, perceived utility, attitudes and purchaseintentions The research also provides useful findings for Korean companies tohave the opportunity to reach out to Generation Z consumers in Vietnamsuccessfully.

Muhammad Fachmi, Ikrar Putra Setiawan and Andi Hidayat (2019) in the

study “Analysis of Factors affecting consumer purchase decision at online shops” The study analysed the effect of trust, promotion and e-service quality onconsumers’ purchasing decisions for online stores, through surveyingquestionnaires that yielded a sample of 100 samples for university students whohad shopped at Tokepedia, Bukalapak and Shopee The study uses a quantitativemethod through which the result is that the trust, promotion and quality ofelectronic services have a significant positive impact on the purchasing decision

of online stores

Ida Ayu Debora Indriani (2016) in the study “Analysis the factors influencing consumer buying decision on online shopping clothing for consumers in Manado” The study used a factor analysis method to reduce the data summarizing theobserved factors The results of the study show three factors: Available Products,Refunds and Ease of Use are factors that directly influence the decision to buy

Zivilé Bauboniené, Gintarẻ Gulevišiũtẻ (2015) in the study " E- commerce

factors influencing consumers’ online shopping decision" The study used a quantitative method by collecting data through a questionnaire survey that obtained 183 samples The results of the study indicate that the main factorsaffecting the online shopping of consumers are convenience, simplicity and goodprices The drawback of the study is that the study was only conducted in relation

to general conditions and the findings may not necessarily apply to a particular business The study helps executives formulate their marketing strategies,identifying and removing key obstacles to creating an online shopping service that

e-is most convenient for customers and future growth.

Chang YaPing, Dong XueBing, Sun Wei (2014) in the study “Influence ofCharacteristics of the Internet of Things on Consumer Purchase Intention” Thestudy used qualitative and quantitative methods, through a questionnaire surveythat obtained 360 samples to investigate the mechanism of influence of productcharacteristics on consumers' purchase intentions The results show that factorsaffecting the mechanism of influence of product characteristics on consumerpurchase intention include connectivity, interaction, psychic ability, intelligence,convenience and security Research has shown that experience is the intermediatevariable between the characteristics of IOT (Internet of Things) products andpurchase intent, connectivity, teleportation, convenience, and security thatpositively affect purchase intent through emotional experience

1.1.2 Overview of the literature studying the impact of electronic word of mouth (eWOM) on online shopping decisions

According to Dao Thi Thu Huong (2017) in the research " Using the IntendedBehavioral Theory (TPB) to measure the influence of electronic word of mouth(eWOM) on tourists’ intention to choose a destination in Da Nang City" Researchresults from CFA and SEM analysis have confirmed that through the factors of " Attitude", " Subjective standards", "Behavioral control perception" eWOM has apositive impact on tourism intentions in this city In addition, the study also foundthat there is a difference between travel intentions among different groups oftourists about their past experiences The research also provides information fortourism managers in managing and devising communication strategies for thedestination through creating the online community of the destination and encouraging visitors to participate in that community.

According to Pham Thi Duyen, Dao Thi Cam Ngoc, Vo Thi Bich Tien, Do ThiCam Van and Le Phuoc Cuu Long (2022) in the research article " Studying theinfluence of eWOM and fear of epidemics on consumers’ intention to pay electronically" The study used quantitative methods through questionnaire surveys to obtain 353 valid samples The results of the study show that 3 factors directly affect consumers’ intention to use electronic payments in the context ofCovid are Electronic Word of Mouth (eWOM), Covid Fear and Attitude Thereby,the study also offers solutions as a basis for managers to grasp the needs andorientation of customers, thereby improving e-payment services for businesses

According to Do Uyen Tam (2020) in the study " The impact of EWOM electronic Word of Mouth on low-cost airlines on brand image and passengers’

intention to buy tickets: Perspectives on gender differences", the study used theSEM linear structure implantation model applied to test the relationship betweenthe proposed variables, using a random sample of 188 passengers of low-costairlines Research results show that EWOM has a similar impact on brand imageand this impact is higher in women than men This study also providesadministrative implications for low-cost airlines in formulating effective word-of-mouth marketing strategies.

According to Tran Huynh Anh Thoa (2019) in the study " Study of electronicword-of-mouth relationship, purchase intention and purchase decision in the foodservice industry", the study was conducted through two methods of factor analysis

to explore EFA and multiple linear regression analysis based on 320 observations.The results show that there are 3 components of the electronic word-of-mouth method: eWOM quality, eWOM quantity and the expertise of the informationprovider that affect the purchase intention, purchase intention that affects thepurchasing decision in the same direction In fact, based on the research results,the author also offers some recommendations and recommendations on theapplication of the eWOM method effectively in business sales activities

Christy M.K Cheung, Matthew K.O Lee and Dimple R Thadani (2009) " TheImpact of positive electronic Word of Mouth on consumer online purchasingdecision" Using the trust-attitude-intent framework as the foundation, the authorproposes that positive eWOM will reinforce consumers’ initial trust and attitudetoward suppliers in terms of trust Through laboratory testing, the authorinvestigates the regulatory impact of positive eWOM on the relationship betweenconsumer beliefs, attitudes, and online shopping behavior intentions The results

of the study for eWOM positively reinforce the relationship between consumers’

emotional beliefs and their online shopping intentions, as well as the relationshipbetween feelings of integrity and consumer attitudes.

Y-Wen Fan, Yi- Feng Miao (2012) " Effect of electronic Word of Mouth onconsumer purchase intention: The perspective of gender differences" The studyuses multiple surveys and regression analysis, while the study focuses on theimpact of gender and purchasing decisions in the e-commerce community Study results indicate that engagement has the most significant impact on eWOM'sperceived credibility The study also found that perceived eWOM reliability had

a significant effect on eWOM acceptance and purchase intent The results alsoshow that male customers have different e-commerce shopping behavior thanfemale customers

Mohamed E Abd- Elaziz, Wael M Aziz, Gamal S.A Khalifa, Magly AbdelAleem Ma 'ouf (2015) in the study " Determinants of Electronic Word Of Mouth

(eWOM) influence on hotal customers’ purchasing decision" The study examines

the determinants of the influence of electronic word-of-mouth on hotel guests'booking decisions The study used quantitative methods through a questionnaire survey that collected data from 500 hotel guests in Sharm-elshikh (Egypt) The results of the study show that the effect of eWOM depends on the reliability, valueand volume of information obtained from eWOM The results of the study alsoshow that the type of website and product that eWOM aims to have a significantimpact on the effect of eWOM The study also provides information to managersand marketers from hotels about why it's important to pay attention to what's beingsaid through eWOM and how to manage brands more effectively online.

According to Randy Danniswara, Puspa Sandhyaduhita, Qorib Munajat (2020)

in “ The impact of EWOM referral, celebrity endorsement, and information quality

on purchase decision: a case of Instagram ” research aims to explore the factors

that affect buying decisions on commercial social networks, namely Instagram.This study used SEM method and LISREL 8.80 application Data was collectedusing a questionnaire with a Likert scale Results from 350 respondents showed that there exists a significant positive correlation between eWOM referrals andpurchase intention as well as between purchase intention and purchase decision

According to psychologist George Silverman, “When one or two physicianssay they have had a good experience with a drug, it affects the entire group ofpeople who are skeptical” (George Silverman, 1970).

According to the Word of Mouth Marketing Association (WOMMA),

“Word-of-mouth communication is the act of one consumer establishing or spreading marketing-related information to another consumer.” In other words,word of mouth is an informal marketing communication in which consumers arethe ones who promote their products to other consumers through their ownexperience (Westbrook, 1987)

Traditional oral communication has the following characteristics:

First, traditional word-of-mouth (WOM) is a tradition ofinterpersonal communication, in which case it falls outside the categories

of mass communication (such as advertising, radio, etc.) and other personalchannels

Second, the content of WOM communications is commerciallyprisonous from a marketing perspective Therefore, the focus ofcommunication is on entities, products, brands

Third, although the content of WOM communications is commercial

in nature, the person transmitting the information is not commerciallymotivated - or at least they are considered non-commercial in nature

According to traditional theory, there are four important elements in socialcommunication, including the transmitter (the sender), the stimulus (the message),the receiver and the response/response (Hovland, 1948).

Consumers believe that the quality of products via WOM communicationswill be more reliable than other conventional commercial advertisements, andWOM has proven to be a useful method of obtaining useful information forpurchasing decisions (Henricks, 1998; Silverman 1997) WOM can convinceconsumers for the following reasons:

Information about products through WOM media will be more reliable,accurate and guaranteed than other conventional commercialadvertisements because most of WOM is from friends, relatives or thirdparties that we trust to provide.

WOM provides potential customers with the experience of previous users

to reduce the risk of purchase and uncertainty.

« WOM is also a form of two-way communication, not one-way propaganda

¢ Information from WOM is direct information, and can immediately respond

to requests, provide adequate and appropriate information.

The power of personal influence through word-of-mouth (WOM)communication has been confirmed through literature related to consumerbehavior (Arndt, 1967; King and Summers, 1970; Herr, Kardes and Kim,1991) If word of mouth was limited by long distance or transmission speed,with the development of the media with the development of the Internet,WOM has transformed into electronic oral communication (EWOM)

1.2.2 Electronic Word of Mouth

1.2.2.1, Definition of eWOM

Hennig Thurau (2004) defines eWOM as “all positive or negative affirmationsmade by former customers, current customers and potential customers about aproduct or a company, which are made available to community groups ororganizations through tools on the Internet such as online forums, emails, blogs orsocial networks” Simply put, eWOM is word of mouth through the Internet,eWOM consists of 5 main elements:

¢ Statement: positive, negative or neutral

¢ Communicators: are the people who create the statement, which can be

former customers, current customers or potential customers

« Object: a product, a service or a company

¢ Recipients: consumers, readers or organizations

e Environment: It is the internet or social media

In general, the claim, the communicator and the audience are essentially thesame as in traditional word-of-mouth but the nature of the recipient and theenvironment has changed as a result of the Internet and social media The recipient

in eWOM is not a single person — including countless people and organizations.The process of conveying a message is rooted in word of mouth, communicationfrom one person to another to the electronic and written form, in many cases communication from one person to another unknown In addition, the entire environment has changed from the face-to-face landscape to the Internet and socialmedia at large

1.2.2.2 Features of eWOM

e EWOM communication has scalability and high propagation speed (Hung

and Li, 2007)

¢ Most of the information on the internet is presented in written form and

stored and is always available for indefinitely long periods of time (Parkand Lee, 2009; Hung and Ly, 2007)

e EWOM communications can be more easily measured than WOM through

presentation formats, quantity and stability (Lee, Park and Hen, 2008; Parkand Kim, 2008)

« EWOM messages can be viewed and read by anyone, anytime and

anywhere if Internet access is available (Chen and Xie, 2008)

« The origin of eWOM messages is from an unknown consumer, it is difficult

to determine the level of information quality and reliability of theinformation posted (Chatterjee, 2001)

« The relationship between the communicator and receiver during the eWOM

process is considered weak because anyone can post the messages andanyone can receive them (Chatterjee, 2001)

e EWOM is recognized as an effective and economical source of marketing

and is also a useful and influential source for consumers when they needinformation about products (Dellarocas, 2003)

Table 1.1 — The Difference between WOM and EWOM

Direct, face-to-face verbalcommunication

WOM communication islimited to local socialnetworks

Information passing throughWOM is collected throughpeople around you such asfamily members or friends sothat it is easy for the recipient

to confirm the reliability ofthe information

Transmitted through theInternet with forms such as

online

forums, mail,

communities, review sites

EWOM messages can beviewed and read by anyone,

andanytime anywhereaccessible and on the Internet

Information communicatedthrough eWOM messages isoften obtained fromconsumers who are not close

to and do not know each other

As a result, it is more difficult for the recipient to determine

Measured

WOM's media 1s throughdirect communication byconsumers and has no controlover the spread of information

or messages.

Measured

1.2.2.3 Engines participated in eWOM

the credibility of the message,and it is often based on thereliability of the Web page onwhich the information isposted.

Online sellers may have somecontrol such as where to locatemessages on the site, or whatreview messages are posted onthe front of the site to getconsumers' attention.

EWOM communications can

be more easily measured thantraditional WOM due to thepresentation formats, quantity

eWOMcommunications

To motivate consumers to participate in eWOM, Henig-Thurau (2004)developed a model of 7 engines including:

e Extroversion refers to consumers sharing their consumer experiences to

enhance their self-image as smart shoppers.

e Social benefits appear when a consumer transmits an eWOM message for

the purpose of social engagement and integration

e Economic incentives occur when a consumer transmits an eWOM message

for financial purposes (e.g rewards for providing useful information,eWOM reader votes,etc.)

e Seeking advice refers to better understanding, using, operating, modifying,

and repairing a product through the necessary skills

e Interest in other consumers refers to the help of providing information to

support each other among consumers to make better purchasing decisions.

e Helping companies refers to the desire to help companies because of a

product consumption experience that consumers are particularly satisfiedwith

e Emptying negative emotions associated with promoting the relief of

frustration and anxiety in the form of negative WOM1.2.2.4 Forms of eWOM

Today, consumers often share their answers, understandings, reviews andcomments by maximizing theirformatting and information, photos, videos, product review websites, social networks (Tik Tok, Facebook, Instagram, Youtube, ).

Tik Tok is a famous Chinese social network whose original name is Douyin

or Vibrato which means "vibration" Tik Tok is a music video social networklaunched by Jinri Toutiao news app founded in 2016 in China Accordingly, the way this social network works is quite simple, most videos have a short duration

of a few seconds to 3 minutes However, the difference of this application is that the capabilities and editing features are very unique along with a treasure of music

and sound effects that are very unique so that users can create impressive enoughvideos Moreover, Tik Tok also has the ability to personalize when it is possible

to customize each person with different features, which is what makes this appattractive around the world

Facebook makes the website of thesocial network they access free of charge

by the company Meta.Inc operated Registered members can create records with pictures, lists of favorite sites, news stories, and otherinformation Users can exchange messages with friends and others via Facebook chat They can alsocreate favorite groups and families or “like pages,” a number of pages maintained

by organizations, and have banner ads Currently, Facebook is considered theworld's largest social network and is followed by a large number of bamboo users

in the world, including children With Facebook you can easily talk to your friends,spread the word or shareyour feelings Facebook is the easiest and mostinformative school to share information with people and organizations

Blog, call the shortcut of the weblog as an online form of registration, abreak from the end of 1990 Bloggers (bloggers), who can be groups of artists,post information about networks with all topics, often lie about the experience ofgraphic design, mainly providing information about the selected topics Regardingthe legitimacy of the publisher: a large part blog is used for home purposes, apicture is used for business purposes, can be used to support communication andchemistry of the graphic writer used to market, create a graphic image of PR

Youtube makes it possible for users to download, watch and share videoclips YouTube uses Adobe Flash todisplaya variety of video content, includingmovie clips, TV shows, and music videos Userswith multiple registers can still

view most of the videos on the page, while those with multiple registers areallowedto download a limited number of videos with an arbitrary theme.

Online forum, or called forum, is a place for Internet users to discuss andcloseeach other The most commonly used method in the online stage is that thefirst person sends the subject (topic, thread) in the category (category, forum) andthen the next people will write comments and discuss the subject around that topic Today, there are many strange performances to exchange information and share experiences such as vozforums.com, lamchame.com (Presentation of sharingexperiences and knowledge of parents and children), webtretho.com (VietnamWomen's Forum sharing experiences or practices related to parents children,beauty, fashion, family movement ) The performances have the advantage thatthe reader can easily find the information he needs and get useful information from people who have the same outlook to that problem If as with Facebook, eWOM information can be infected by too many people with different opinions, some ofwhom are just followers or have different information to confirm but onlyparticipate to view, like, then with the stage, the user can get a lot of authenticand useful information, because when participating in the stage, the participantsGIA will have an overview of the problem

1.2.3 Tiktok Shop e-commerce site

1.2.3.1 History of formation and development

TikTok is a social media platform used to create, share and discover shortvideos This app is used by young people to express themselves through singing,comedy, lip-syncing while allowing users to create videos and share them onthe community

Launched in September 2016, the app quickly became the leading shortvideo platform in Asia and the fastest growing app in the world with a large globalcommunity Tiktok currently has over 1 billion active users worldwide.(ByteDance, 2021), 41% of Tiktok users are aged 16-24.

With over a billion active users worldwide and an average of 38.6 minutesspent on the app every day, Tiktok is driving e-commerce sales globally throughaffiliate marketing

Tiktok Shop is an integrated booth on Tiktok platform, when users watchvideos, they will be good at showing in the left corner of the screen or in thepersonal page and just click there will be a link to the product, users can buy theproduct directly without leaving to another application

Formed to open a new avenue for sellers from well-known brands to smalland medium-sized businesses, Tiktok Shop has the lofty goal of providing a wholenew shopping experience for users and opportunities for content creators TiktokShop offers items in many different categories including fashion, family and life,beauty

With the trend of Shoppertainment (shopping combined withentertainment), small and medium enterprises have more opportunities to engagewith the community through entertainment elements and high interactivity inintroductory content or create demand for new products At the same time, with arecommendation system that helps introduce users to content related to personalinterests and needs, Tiktokshop also helps businesses easily access potentialcustomer files, and helps users make shopping decisions with a simple shoppingcart feature displayed right on the video, livestream or personal page of the content

owner.

1.2.3.2 Features of Tiktok Shop

Young users, the number of users is increasing rapidly: Tiktok Shop'scustomers are aged from 12-40 years old, are a young customer file, have theability to access information quickly This is also the age of demand, largepurchasing power, experienced in shopping on e-commerce sites

High conversion rate: Tiktok Shop operates on a video content platform,prompting demand and thus easier to convert than other forms of content.

Link to your online store: Sellers can include a link to the online store You cansell directly using Tiktokshop, and if needed, potential buyers can click on the link

to your online store

Easily and conveniently in shopping: Tiktok Shop is often integrated withTiktok videos showing the shopping cart in the left corner of the screen, making it easy for users to buy products even when experiencing videos without leaving to another website or application to make a purchase This saves and shortens thetime consumers take to make purchasing decisions

1.2.3.3 The difference of Tiktok Shop with other e-commerce sites (Lazada,Shopee )

Tiktok Shop is a new feature formed in Vietnam The attraction of thisfeature is extremely great, almost all online business people want to learn andapply it to their projects

In the era of e-commerce, Tiktok Shop and other familiar e-commerce sitessuch as Shopee, Lazada, Tiki the competition for shopping features on socialnetworks is increasing

Effectively participated in Vietnamese e-commerce competition, TiktokShop has 3 unique points that are different from other e-commerce platforms intraffic, delivery, and kkk These points will be presented in the table below.

Table 1.2 — The difference between Tiktok Shop and Other e-commerce sites

review, from running ads andfrom livestreaming Livestream

is also a strong source ofcustomers for Tiktok shop.

Thanks to the influence ofKOC/KOL along with aseparate promotional voucher, ithas created a “FOMO” craze that motivates customers tomake faster purchase decisionsduring each livestream

Characteristics | Tiktok Shop Other sites

Traffic Customers from Tiktok Shop | Customers on

e-are mainly from KOL/KOC |commerce _ sites can

access from a variety oftraffics sources: search

by keyword (SEO),

direct from social

(facebook, Instagram ),run ads sellers can havemany options to increasethe number of potentialcustomers on their sales

Shopping Touch

Point

On Tiktok Shop, users shop

emotionally: When watching adress review video, becausethey like it too much, users willclick on the cart and buy

The purchasing decision of theuser depends a lot on the content

page.

On e-commerce sites,buyers have many reasons to considerbefore making an orderdecision: product price,store followings,response rate, reviews

creation of the shop owner toincrease the conversion from thevideo on Tiktok.

of the shop to make abeautiful background,prestige, the higher theconversion rate of theorder

> Users receive

information andmake purchases in

an active manner.Delivery When placing multiple products

on the same shop on TiktokShop, the shop can activelycombine the application to beable to deliver it once quiteconveniently.

Delivery time on Tiktok Shopwill often be faster than other e-commerce sites (2-3 days) and

On other e-commerce platforms, automatic separation of applications when

customers apply Voucheroccurs regularly Thiscauses a lot ofinconvenience to

customers.

delivery time, customer caresupport returns faster.

Delivery time on commerce sites is usually

e-about 3-6 days,

depending on thedistance and time ofrefund, exchange andreturn also take a lot oftime

1.2.4 Research model

The study studies students' consumer behavior as well as determining theirbehavioral tendencies, in which behavioral tendency is part of attitude towardsbehavior and part is subjective norm

Therefore, I find the rational action theory model TRA to be completelyappropriate

TRA model (Theory of Reasoned Action/ TRA)

TRA's rational action theory can be considered as one of the first basictheories used to analyze consumer behavior, as well as to find out the essentialrelationship between intention and consumer behavior First introduced in 1970

by Ajzen and Fisbein, this theoretical model is considered one of the pioneeringtheories in the field of social psychological research (Armitage and Conner, 2001;Dao Trung Kien, 2015).

Figure 1.1- Theory of Reasoned Action/ TRA (Azjen, 1975)

The TRA model assumes that subjective intention to act, attitudes, and normsdetermine actual behavior In which, attitude is the state of organizational mentalreadiness through experience, which is capable of adjusting or dynamicallyinfluencing the personal reaction towards the object and the situation it is related

to (Ho Huy Tut et al., 2018) Therefore, it can be said that the attitude towards anaction in general has a pervasive influence on the formation of psychology, generalnotions about an event, an action, that helps us to plan our behavior In this model, attitude is a function of the set of beliefs about the results of behavior formationand one's own evaluation of those results (Vallerand et al., 1992) The secondcomponent that constitutes behavioral intention is the master norm The norm isthe set of perceptions of individuals or groups of individuals about what theyshould do Ownership standards are a function of the beliefs and influences of thepeople around them and what they should do and the motivation to do the peoplearound them (Vallerand et al., 1992).

The novelty of this model is the consideration of behavioral intention as anintermediate step from factors affecting behavioral intention, which can becontrolled to formal behavior.

Ajzen (1975), a person's actual actions are governed by his or her intention

to act Judging from the point of view of consumers, each individual consumer'sbelief about the brand affects the attitude toward behavior, and the attitude toward behavior will affect the trend wanta, not directly affect the behavior Therefore, the explanatory attitude leads to the tendency of consumers to buy, while the trend

is the best factor to explain consumer behavior This tendency to shop is calledbehavioral intention (behavioral intention) Therefore, the measure of behavior is the intention of an individual The weakness of the TRA model is that it does nottake into account social factors that may in fact be a determinant of individualbehavior (Grandon & Peter P Mykytyn 2004; Werner 2004).