---NGUYEN HOAI NGOC FACTORS AFFECTING PURCHASE INTENTION ON THE TIKTOK SHOP PLATFORM OF GEN Z STUDENTS LIVING IN HO CHI MINH CITY Major: Business Administration Major code: 7340101 GRADU
INTRODUCTION
Rationale of the Study
The rapid rise of social networks has significantly increased consumer interest in online shopping, particularly among Generation Z Terms like "Technology Revolution 4.0" and "Digital Era" are frequently mentioned in media and discussions For many, especially younger generations, social media has become an essential part of their daily lives that they cannot afford to overlook.
In Vietnam, social media usage has been a the rise, according to Kepios' Report
As of January 2022, there were 76.95 million social media users in Southeast Asia, representing 78.1% of the total population This marks an increase of 5 million users, or 6.9%, compared to the previous year, according to the SYNC Southeast Asia Report.
In 2020, Meta reported that approximately 49.3 million consumers in Vietnam were engaged in online shopping, with social media platforms like Facebook, Zalo, YouTube, Instagram, and TikTok gaining traction in the market Notably, TikTok has emerged as a leader in growth, attracting nearly 39.91 million users aged 18 and older by early 2022, despite its launch in 2019 (Kepios, 2022) The COVID-19 pandemic has further accelerated the shift towards e-commerce platforms such as Shopee, Lazada, and TikTok Shop, as consumers increasingly turn to online shopping for their daily needs In response to this trend, TikTok launched its TikTok Shop sales page in April 2022, merging e-commerce with entertainment to provide a seamless shopping experience for both influencers and users, catering to everyday shopping needs (Tunsakul, 2020).
The weaknesses of traditional advertising methods have paved the way for the success of influencer marketing As commercial communication evolves and direct communication programs become more prevalent, conventional advertising approaches are increasingly being challenged.
In 2016, it was noted that brands sharing advertising content on social media often struggle to capture attention, even with high-quality material, as consumers perceive it as self-promotion This skepticism is further fueled by instances of misleading advertising, leading to increased distrust among customers (Darke and Ritchie, 2007) Consequently, many businesses are turning to social media influencers as a more effective means of communication and brand promotion (Freberg et al.).
Since 2011, social media influencers have emerged as key validators, significantly impacting audience perceptions and purchasing choices through their content This trend has grown as traditional advertising methods, such as newspaper ads and telemarketing, have become less effective Consumers often place greater trust in influencers compared to brand-generated content, as influencers share genuine product experiences across diverse media formats, thereby increasing product attractiveness to potential buyers.
Research on TikTok Shop remains limited, as most studies have primarily examined the influence of social media influencers on shopping intentions without addressing specific online shopping platforms like TikTok Shop, which launched in April 2022 This presents an opportunity to investigate the factors affecting purchase intentions on TikTok Shop, especially among Gen Z students in Ho Chi Minh City Understanding these dynamics can provide businesses with valuable insights to refine their influencer marketing strategies and improve the online shopping experience on TikTok Shop.
Based on the issues discussed above, the author has selected the following topic:
This study explores the factors influencing purchase intention on TikTok Shop among Gen Z students in Ho Chi Minh City, aiming to enhance the effectiveness of influencer marketing in driving online shopping behaviors By understanding these factors, the research seeks to optimize strategies that can better engage this demographic on the platform.
Research Objectives
To investigate the factors influencing purchase intention on the TikTok Shop platform among Gen Z students living in Ho Chi Minh City.
To identify the key factors that affect the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City.
To assess and analyze how these factors influence the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City.
Provide some recommendations and implications for TikTok Shop administrators.
Subjects and Scope of the Study
Research object: The intention to purchase on TikTok Shop platforms of Gen Z students living Ho Chi Minh City.
Population: Gen Z students who have purchased or experienced with TikTok Shop platform residing in Ho Chi Minh City.
Geographic Area: Ho Chi Minh City
Duration: the research project was conducted from January 2024 to March 2024.
Research Questions
What are the factors that affect the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City?
How do these factors influence the online shopping intention of Gen Z at TikTok Shop in Ho Chi Minh City?
What are some recommendations and implications for TikTok Shop administrators?
Research Methodology
The author carried out their own study and gathered relevant sources on the subject, such as similar scientific studies from both domestic and abroad perspectives.
The author developed an initial research framework and measurement tools, incorporating feedback from specialists and experts in e-commerce to refine the measurement scale as necessary.
The quantitative research method employs indirect interviews via questionnaires to gather information and data The collected data is processed using SPSS 20.0 software, where Cronbach's Alpha analysis is performed to evaluate the scale's reliability and eliminate non-conforming observed variables Subsequently, exploratory factor analysis (EFA) is conducted to categorize the remaining variables into factors that influence buying decisions Finally, regression analysis is executed to assess the impact of each identified factor on the research topic.
Structure of the Study
This research consists of five chapters:
Chapter 1 outlines the comprehensive overview of this topic study in terms of the followings: (1) Rationale of the study, (2) Research objectives, (3) Subjective andScope of research, (4) Research Questions, (5) Research Methodology, (6) Structure of the Study.
LITERATURE REVIEW
Basic Concept
E-commerce, is a term that refers to the digital platform and business model of buying and selling products online However, there is no consensus on the exact definition of e-commerce, and different sources may adopt different perspectives on the concept Generally, we can distinguish two main approaches to e-commerce as follows:
E-commerce refers to the buying and selling of goods and services through electronic channels, primarily the Internet and telecommunication networks This definition is supported by organizations such as the World Trade Organization (WTO).
E-commerce encompasses the entire process of producing, advertising, selling, and distributing products that are transacted online, including both physical goods and digital information As defined by the E-Commerce Committee of the Asia-Pacific Economic Cooperation (APEC) in 2004, it involves business activities that leverage digital communications and information processing technologies.
E-commerce encompasses a wide range of electronic financial and commercial transactions, including electronic data exchange and money transfers, as well as credit card deposits and withdrawals According to the UNCITRAL Model Law on Electronic Commerce (1996), e-commerce is defined as the exchange of commercial information through electronic means, eliminating the need for any paper documentation throughout the transaction process.
In UNCITRAL's Model Law on E-Commerce, "information" encompasses any electronically transmitted content, such as letters, text files, databases, designs, graphics, advertisements, inquiries, orders, invoices, price lists, contracts, animations, and sounds Meanwhile, "commercial" is broadly defined to include all matters related to commercial relationships, whether contractual or not These relationships cover a wide range of transactions, including the supply or exchange of goods and services, representation by commercial agents, commission trusts, long-term leasing, construction projects, consultancy, engineering works, investment funding, banking, insurance, joint ventures, and various forms of cooperation, as well as the transportation of goods or passengers by sea, air, rail, or road.
These definitions imply that e-commerce activities encompass a broad range of economic activities, and that the buying and selling of goods and services are only a minor aspect of them.
Purchase intention is a key concept in consumer behavior research, serving as a predictor of actual buying actions It reflects a consumer's desire to acquire a specific product or brand, playing a vital role in understanding decision-making processes Numerous studies highlight its significance in forecasting consumer behavior patterns and aligning with actual purchasing actions Researchers have utilized models based on theories such as the Theory of Planned Behavior to effectively estimate and analyze these intentions.
Purchase intention is widely used by marketers and researchers as a key indicator to forecast sales of both existing and new products (Armstrong et al., 2000; Chadha et al., 2018) While it can predict future sales, the correlation between purchase intention and actual buying behavior is influenced by various factors, including the type of product (Kim, 2023) Moreover, leveraging purchase intention as a measure of consumer demand for new products has been highlighted as essential (Esmeli, 2020).
Research has explored the impact of various factors on purchase intention across multiple industries, such as food, cosmetics, and event planning (Khalid et al., 2018; Dayoh et al., 2022) Key studies have examined how elements like word-of-mouth communication, religiosity, and passion serve as moderating influences on consumers' purchasing decisions (Hamzah et al., 2020; Notodisurjo et al., 2019) Additionally, the significance of technology, social media, and online platforms in shaping purchase intentions has become a central theme in recent studies (Ismail & Wahid, 2020; Al-Adwan & Kokash, 2019; "Factors Influencing Customer Online Purchase Intention at Tokopedia.com", 2017).
Purchase intention is vital for grasping consumer preferences, attitudes, and behaviors It serves as an essential tool for businesses to predict sales and tailor marketing strategies to meet consumer needs and expectations effectively.
Online shopping has transformed the retail landscape, enabling consumers to buy products and services conveniently from home or while on the move This digital commerce platform allows users to explore a vast selection of items, compare prices and features, and make informed purchasing decisions Shopping can be done via fixed internet connections or mobile apps, where customers navigate to online retail sites, select items, add them to a virtual cart, and securely complete their transactions.
Online shopping attitude refers to an individual's overall perception and evaluation of online shopping as a preferred purchasing method This attitude is influenced by the freedom and control online shopping offers, along with its convenience and accessibility, which allow consumers to easily compare products and prices Hahn & Kim (2009) highlight that these features enhance the appeal of online shopping, positioning it as an attractive alternative to traditional retail stores Additionally, online shopping fosters collaborative activities among consumers, including interactions during the shopping experience (Yang et al.).
In today's digital marketplace, consumers engage in more than just purchasing products; they actively share opinions, write personal reviews, and participate in community discussions This collaborative element of online shopping enhances the overall consumer experience, transforming it into a more interactive and fulfilling journey.
Online shopping has transformed into a crucial element of contemporary commerce, offering consumers a convenient way to explore a wide range of products and services Its appeal lies in addressing diverse consumer needs, such as the demand for detailed information, enhanced control over the shopping process, and avenues for social interaction.
Generation Z, often referred to as iGen or Digital Natives, is a tech-savvy demographic born between 1995 and 2012, who have experienced significant societal changes including political upheavals, technological advancements, and the challenges of a global pandemic These experiences have shaped their distinct values and behaviors, setting them apart from previous generations (Pichler et al., 2021) Growing up with instant global connectivity, Gen Z views technology as an integral part of their lives, where mobile devices and wireless networks serve as extensions of their social identities, fostering an always-on lifestyle (Giray).
The constant connectivity of Generation Z has cultivated a culture of immediacy and convenience, significantly influencing their consumer habits This tech-savvy generation spends considerable time on mobile applications, making it essential for businesses to understand their preferences to gain a competitive edge TikTok Shop stands out as an appealing choice for these digital natives due to its seamless blend of social interaction and e-commerce, featuring influencer endorsements and live-stream promotions that cater to their desire for engaging shopping experiences The platform's visual and participatory elements resonate with Gen Z's affinity for visual content and social validation, ultimately shaping their purchasing decisions By aligning with Gen Z's values and utilizing the distinctive features of platforms like TikTok Shop, businesses can foster a loyal customer base within this influential demographic.
Overview of TikTok Shop operation
Vista Social (2023) highlights TikTok Shop as a groundbreaking digital marketing platform, emphasizing its effectiveness as an e-commerce tool alongside traditional methods With its unique features, TikTok Shop provides businesses with fresh opportunities to engage with customers and enhance their online presence The platform's success stems from its innovative business model that combines imitation and innovation, resulting in a user-friendly service that appeals to a global audience (Li, 2022; Ma & Hu, 2021).
TikTok Shop's operational success is bolstered by its user-friendly interface, prompt technical support, and regular updates, which collectively create a positive experience for both merchants and consumers As TikTok emerges as a key player in digital marketing, businesses have the opportunity to leverage its expanding user base and high engagement rates to enhance sales and brand visibility.
In 2023, TikTok Shop is significantly transforming the digital marketing landscape and enhancing communication among stakeholders in the e-commerce sector Its operational process for sellers includes crucial steps such as collaborating with Key Opinion Consumers (KOCs) and Key Opinion Leaders (KOLs), managing product listings, facilitating diverse payment methods, and ensuring efficient shipping.
To start selling on TikTok Shop, individuals and businesses must register by creating their online storefronts Individuals need to provide their Citizen Identity Card (CCCD) or ID information, while businesses must submit their registration details This registration process fosters a reliable marketplace, allowing buyers to shop with confidence.
KOCs and KOLs with a following of 100,000 or more are essential to the TikTok Shop ecosystem, utilizing their influence to engage in affiliate marketing By promoting products through their channels, these influencers can earn commissions on sales, making them a vital asset for enhancing brand awareness and driving sales effectively.
Sellers can utilize the TikTok Seller Center to showcase their products with vibrant images and comprehensive descriptions, offering a user-friendly experience similar to traditional e-commerce platforms for both sellers and buyers.
TikTok Shop offers a diverse range of payment methods to suit user preferences, including international options like Visa cards and local solutions such as domestic ATM cards, e-wallets, and cash on delivery This variety enhances the platform's accessibility, allowing it to reach a wider audience.
J&T Express serves as the shipping partner for TikTok Shop in Vietnam, managing logistics to ensure efficient pickup and delivery of goods This partnership guarantees that buyers receive their purchases promptly while providing sellers with a reliable distribution process they can trust.
Theoretical Model
2.3.1 Consumer Behavior Black Box Model
The Consumer Behavior Black Box Model is a framework that helps analyze the decision-making processes of consumers, particularly focusing on the unseen internal thought processes that influence their choices This model is crucial for understanding consumer behavior, especially in the context of Gen Z's engagement with digital platforms such as TikTok Shop.
Figure 2 1: Consumer Black Box Model
The consumer behavior model is typically structured around two fundamental components:
Environmental factors play a crucial role in shaping consumer decision-making, encompassing various external stimuli such as marketing activities—product, price, place, and promotion—alongside economic conditions, cultural influences, and social status.
The model incorporates Individual Buyer's Characteristics, known as the 'black box' segment, which explores the psychological processes of consumers, including their motivation, perception, attitude, and decision-making mechanisms.
The interaction between environmental factors and the consumer's black box leads to observable actions, such as product choices, brand preferences, purchase timing, and spending habits The Consumer Black Box Model serves as the theoretical foundation for this study, offering a framework to analyze and predict the purchasing intentions of Gen Z consumers on TikTok Shop This model highlights its adaptability and significance in understanding consumer behavior in the digital marketplace, which aligns with the research objective.
2.3.2 Theory of Reasoned Action (TRA)
Figure 2 2: Theory of Reasoned Action
The Theory of Reasoned Action (TRA), established by Fishbein and Ajzen in
The Theory of Reasoned Action (TRA), established in 1975, is essential for analyzing consumer behavior, especially in the digital marketplace It suggests that an individual's intention to act is influenced by their attitudes towards the behavior and the social norms surrounding it This framework allows for a deeper understanding of Generation Z's purchasing intentions on the TikTok Shop platform.
An individual's attitude towards behavior represents their overall assessment of that behavior, shaped by their beliefs regarding its potential outcomes and the value they assign to those outcomes For Gen Z consumers, this perspective may include their views on the advantages of shopping on TikTok, highlighting factors like convenience and social validation.
Subjective norms are an individual's perception of social pressure to engage in specific behaviors, influenced by the beliefs about the expectations of significant others This concept highlights the motivation to align with these perceived social expectations In our research, we explore how influencers and peer groups on TikTok affect shopping behaviors.
While the Theory of Reasoned Action (TRA) posits that individuals exercise volitional control over their decisions, it is crucial to acknowledge the various constraints that can restrict this control In the context of online shopping, these constraints may arise from factors such as the design of the platform, algorithmic recommendations, and the availability of products.
2.3.3 Theory of Planned Behavior (TPB)
Figure 2 3: Theory of Planned Behavior
The Theory of Planned Behavior (TPB), an advancement of the Theory of Reasoned Action (TRA), provides a detailed framework for analyzing behavior determinants It posits that an individual's behavior is primarily influenced by their intention, shaped by three key factors: attitudes towards the behavior, subjective norms, and perceived behavioral control This study utilizes TPB to explore the factors influencing Gen Z students' purchase intentions on the TikTok Shop platform.
Personal attitudes encompass an individual's positive or negative assessment of a behavior, including their beliefs about its outcomes and emotional responses to those outcomes For Gen Z consumers, this pertains to their views on the value and enjoyment they experience when shopping on TikTok Shop.
Subjective Norms refer to the social pressures that influence individuals to either engage in or refrain from specific behaviors, shaped by the expectations of peers, family, and society In our research, we examine how social media influencers and the popularity of TikTok Shop among peers affect these perceived social pressures.
Perceived Behavioral Control refers to how individuals view the ease or difficulty of engaging in a behavior, shaped by their past experiences and expected obstacles In the context of the TikTok Shop, this concept encompasses the intuitiveness of the user interface and the accessibility of desired products, which can significantly impact user engagement and satisfaction.
This research highlights the significance of the Theory of Planned Behavior (TPB) in understanding the complex factors that shape Generation Z's shopping habits on TikTok Shop By analyzing attitudes, subjective norms, and perceived behavioral control, we can better comprehend the decision-making processes of this demographic, offering a theoretical foundation to forecast their purchasing trends on this innovative e-commerce platform.
The Technology Acceptance Model (TAM), introduced by Davis in 1986, is a prominent framework in information systems that explains and predicts how individuals accept new technologies Recognized as one of the most influential theories in the field, TAM provides a clear and effective understanding of user behavior regarding technology adoption.
External variables in the Technology Acceptance Model (TAM) significantly impact users' perceptions of both the usefulness and ease of use of technology These perceptions are crucial as they directly influence the acceptance and subsequent utilization of technological innovations.
Previous Research
2.4.1.1 Research by Chuanhong Chen and Xueyan Li (2020)
Chen & Li (2020) conducted research on how online shopping festival promotion strategies affect consumer participation intentions The study explores the effects of product promotion strategies, such as the perceived allure of price promotions, the richness of promotional categories, and the enjoyment of promotional activities, alongside atmosphere promotion strategies like the perceived contagiousness of mass participation Utilizing Stimulus-Response Theory, the researchers developed a model to elucidate the relationship between promotion strategies and consumer behavior The analysis involved data from 495 consumers and employed structural equation modeling to validate the proposed hypotheses.
2.4.1.2 Research by Ofori and Appiah-Nimo (2019)
The research “Determinants of online shopping among tertiary students in Ghana:
In their 2019 study, "An Extended Technology Acceptance Model," Daniel Ofori and Christina Appiah-Nimo investigate the factors that influence online shopping behaviors among university students in Ghana By enhancing the traditional Technology Acceptance Model (TAM) with elements of perceived cost and perceived risk, the research aims to identify the motivations behind students' intentions and actual use of online shopping platforms The study surveyed 580 undergraduate students and utilized Structural Equation Modelling-Partial Least Squares (SEM-PLS) for data analysis Findings reveal significant insights into online shopping dynamics in a developing country context, emphasizing the critical roles of cost considerations and user-friendliness in the youth's adoption of online shopping.
2.4.1.3 Research by Athapaththu and Kulathunga (2018)
A study by Athapaththu & Kulathunga (2018) investigated the factors affecting online purchase intentions through the lenses of technology and social commerce, utilizing the Technology Acceptance Model (TAM) Key elements examined included Perceived Usefulness, Perceived Ease of Use, Website Content, and Trust The research surveyed 292 MBA students from leading educational institutions in Sri Lanka to validate a theoretical model The findings highlight crucial factors that influence consumers' intentions to shop online, reflecting both technological advancements and the dynamics of social commerce.
2.4.2.1 Research by Bui Thanh Trang (2020)
The 2020 study "Online Commerce and Consumer Shopping Behavior" by Bui Thanh Trang analyzes the B2C e-commerce market in Vietnam, aiming to enhance online businesses' understanding of factors influencing Vietnamese consumers' shopping behavior Utilizing qualitative methods through expert interviews, the research then employed a quantitative approach with a questionnaire distributed to 500 online shoppers in Ho Chi Minh City The findings reveal five key factors impacting online shopping behavior: benefit perception, enjoyment motivation, website design (including aesthetics and content), psychological factors, and risk perception.
2.4.2.2 Research by Dao Manh Long (2018)
In 2018, Dao Manh Long conducted a study on the factors influencing online clothing purchasing behavior in Ho Chi Minh City The primary objective of this research was to evaluate the effects of these factors and to offer strategic management recommendations for online apparel retailers.
A recent study conducted in Ho Chi Minh City identified key factors influencing online clothing shopping behavior The research evaluated aspects such as website trust, shopping comfort, convenience, price expectations, and associated risks Utilizing both qualitative methods through focus groups and quantitative analysis with a sample of 350 participants, the findings revealed six critical factors: convenience, shopping comfort, price reasonableness, trust in the website, and risks related to products/services However, regression analysis indicated that only five factors significantly impact consumer behavior, with product quality being excluded from the final considerations.
2.4.3 Summary of factors influencing online buying behavior
The table below presents findings derived from previous studies and research models focused on online buying behavior, primarily conducted by both domestic and international authors, and is based on the theoretical frameworks discussed in section 2.5 of this article.
Table 2 1: Summary of previous research
Research Model and Hypothesis
This study is grounded in key theories such as the Consumer Black Box Model, Theory of Reasoned Action (TRA), Technology Acceptance Model (TAM), and Theory of Planned Behavior (TPB), which effectively explain consumer behavior in digital marketplaces, especially among Gen Z The Consumer Black Box Model provides insights into the cognitive and emotional factors influencing Gen Z's purchasing decisions on TikTok Shop TRA and TPB highlight the impact of personal attitudes and societal norms on purchase intentions, with TPB incorporating perceived behavioral control TAM evaluates the perceived usefulness and ease of use of technology, crucial for Gen Z's adoption of e-commerce features The research model operationalizes these theories through hypotheses linking each construct to purchase intentions, ensuring a comprehensive understanding of the influencing factors and their mechanisms.
Source: Author Synthesis and Construction
The proposed research model integrates key theories to analyze six critical factors influencing TikTok Shop's user engagement among Gen Z students in Ho Chi Minh City: Convenience, Price Perception, Source of Reference, E-Service Quality, Promotion, and Brand Awareness These factors were carefully selected based on their consistent relevance in prior studies, including those by Chen and Li (2020), Ofori and Appiah-Nimo (2019), Jayani Chamarika Athapaththu and D Kulathunga (2018), Dao Manh Long (2018), and Bui Thanh Trang (2020) Their significant impact on online shopping behavior underscores the importance of this tailored approach in understanding the dynamics of user engagement.
The research is formulated with 6 hypotheses:
Hypothesis 1: Convenience has a positive impact on purchase intentions of Gen
Hypothesis 2 : Price Perception has a positive impact on purchase intentions of Gen Z students on TikTok Shop
Hypothesis 3 : Source of Reference has a positive impact on purchase intentions of Gen Z students on TikTok Shop
Hypothesis 4 : E-Service Quality has a positive impact on purchase intentions of Gen Z students on TikTok Shop
Hypothesis 5 : Promotion has a positive impact on purchase intentions of Gen Z students on TikTok Shop
Hypothesis 6 : Brand Reputation has a positive impact on purchase intentions of Gen Z students on TikTok Shop
Convenience in shopping emphasizes the ease and speed of completing purchases, significantly enhanced by the growth of e-commerce Today, it often involves the ability to buy products online and have them delivered to your home, eliminating the need for physical store visits The Internet allows consumers to enjoy selection, execution time, and spatial convenience from anywhere Research shows that factors such as search convenience, transaction convenience, and post-purchase convenience positively influence repurchase intentions, highlighting a strong correlation between perceived convenience and shopping behavior.
So, the H2 hypothesis is formulated.
Hypothesis 1: Convenience has a positive impact on purchase intentions of Gen
Price perception is the subjective evaluation of an item's cost, influencing how customers view it as cheap, fair, or exaggerated Research by Dao Manh Long (2018) indicates that when online shopping aligns with customer price expectations, it positively impacts purchasing behavior Furthermore, Polas et al (2020) highlight a positive correlation between price perception and the intention to revisit among Gen Z consumers, reinforcing the idea that price perception plays a crucial role in shaping consumer decisions.
So, the H2 hypothesis is formulated.
Hypothesis 2 : Price Perception has a positive impact on purchase intentions of Gen Z students on TikTok Shop
In the realm of online shopping, a "source of reference" signifies the information and criteria that influence consumers' purchasing choices Shoppers can leave feedback, comments, and product reviews in the designated comments section beneath each item on the e-commerce platform's website, enhancing the decision-making process Additionally, Pongratte et al contribute to this understanding.
Recent studies highlight the powerful impact of word-of-mouth on purchasing decisions through platforms like TikTok Research by Siregar et al (2023) emphasizes how social media, particularly TikTok, shapes Gen Z's fashion consumption, illustrating the importance of social connections and entertainment in their shopping habits Moreover, Lin & Nuangjamnong (2022) examine the influence of TikTok live streaming and reveal that the credibility of influencers plays a crucial role in driving purchase intentions.
So, the H3 hypothesis is formulated.
Hypothesis 3 : Source of Reference has a positive impact on purchase intentions of Gen Z students on TikTok Shop
This study explores the concept of Trust in the Web, drawing on the research by Jayani Chamarika Athapaththu and D Kulathunga (2018) It emphasizes that the quality of service in e-commerce is crucial for enhancing customer satisfaction, loyalty, and the overall success of online businesses According to Lee & Lin (2005), e-service quality reflects customers' evaluations of e-service delivery in the digital marketplace, underscoring the necessity of meeting customer expectations and ensuring a smooth online shopping experience Consequently, delivering high-quality services is vital for increasing customers’ purchase intentions on e-commerce platforms.
So, the H4 hypothesis is formulated.
Hypothesis 4 : E-Service Quality has a positive impact on purchase intentions of Gen Z students on TikTok Shop
Promotions are essential marketing strategies employed by retailers to boost consumer purchases, utilizing tactics such as discounts, coupons, and buy-one-get-one-free offers to add value for customers Research by Secretaria et al (2023) highlights that such promotional offers effectively motivate Gen Z consumers to buy Additionally, Rahim (2023) points out that TikTok plays a crucial role in shaping Gen Z's purchasing decisions, suggesting that promotional activities on social media platforms significantly influence consumer behavior.
So, the H5 hypothesis is formulated.
Hypothesis 5 : Promotion has a positive impact on purchase intentions of Gen Z students on TikTok Shop
A brand awareness survey by Chen and Li (2020) revealed that 82% of respondents recognize the importance of brand reputation, which reflects consumers' collective perception based on a brand's past actions and market standing (Iqbal et al., 2020) Additionally, brand reputation significantly influences consumers' views on brand quality, value, and trustworthiness (Baek et al., 2010).
A strong brand reputation enhances brand performance, shapes consumer perceptions, and encourages positive consumer behaviors Consequently, effectively maintaining and managing a solid brand reputation is crucial for brands seeking to attract and retain customers, especially in competitive environments like TikTok Shop, where Gen Z students are highly engaged consumers.
So, the H6 hypothesis is formulated.
Hypothesis 6 : Brand Reputation has a positive impact on purchase intentions of Gen Z students on TikTok Shop
This dissertation utilized scales developed from various theoretical frameworks, drawing on both domestic and international research The scales were specifically adapted to fit the study's focus and the cultural context of Vietnamese consumers Modifications were made through collaborative discussions with subject matter experts, and the scales were subsequently tested with Generation Z students who have purchased items on TikTok Shop.
This research utilized a 5-point Likert scale for the survey measurements, which is organized in ascending order The scale is structured as follows: (1): Totally disagree, (2): Disagree, (3): Normal, (4): Agree, (5): Totally agree.
CV1 TikTok Shop allows me to shop without the need to visit a physical store.
CV2 TikTok Shop offers the flexibility to shop at any time that suits me.
CV3 TikTok Shop typically has all the items I am looking for.
CV4 TikTok Shop offers a wide variety of products and a diverse range of suppliers.
PR1 Comparing prices on TikTok Shop is straightforward and user-friendly.
Jayani Chamarika Athapaththu and D. Kulathunga (2018)
PR2 The prices of items on TikTok Shop are generally more competitive than those in physical stores.
PR3 On TikTok Shop, I tend to make quicker purchase decisions for lower-priced products compared to higher-priced ones.
SI 1 I routinely consult product comments on TikTok
Shop prior to making a purchase.
SI2 I find the comments and reviews from previous buyers on TikTok Shop to be valuable sources of information.
SI 3 A higher volume of comments from previous buyers on TikTok Shop simplifies my shopping decision process.
Web1 I can easily navigate to and access stores on
Web2 The process to make a purchase on TikTok Shop is straightforward and user-friendly.
Web3 The store interfaces on TikTok Shop are clean and visually appealing, making it easy to browse.
Web4 Stores on TikTok Shop provide detailed and comprehensive information about their products and sellers.
PM1 I am attracted to the frequent promotions offered during TikTok Shop live streams.
PM2 Discount promotions on TikTok Shop influence my decision to make a purchase.
PM3 Promotional offers provide me with the opportunity to try new products on TikTok
BR1 I am inclined to purchase from TikTok Shop stores that have a large follower base.
BR2 I prefer to buy products from brands with a good reputation on TikTok Shop.
BR3 I am likely to make repeat purchases from brands or stores on TikTok Shop that I have had positive experiences with in the past.
PI1 I intend to make TikTok Shop my primary choice for future shopping needs.
PI2 I feel confident about my decision to purchase items from TikTok Shop.
PI3 I am likely to recommend TikTok Shop to someone I know for their shopping needs.
Source: The author compiles proposals and adjustments
Chapter 2 presents the basic concepts and theories; and domestic and international research related to the research topic The theories described in the research are The Back Box model of Consumer Behavior, The Theory of Reasoned Behavior (TRB), The Theory of Planned Behavior (TPB) Subsequently, the authors have proposed the research model, along with the 6 hypotheses: (1) Convenience, (2) Price Perception, (3) Source of Reference, (4) E-Service Quality, (5) Promotions, and
RESEARCH DESIGN
Research Process
To achieve clear and comprehensive content requirements, it is essential to eliminate unnecessary steps and minimize omissions, ensuring highly reliable results that can serve as a foundation for future research Grounded in practical theoretical principles, the study follows a systematic process to conduct the research effectively.
Source: The author compiles proposals and adjustments
Research Method
Secondary data collection involves gathering information from diverse sources, including reports, research papers, textbooks, and other pertinent documents This process utilizes theoretical meta-analysis, classification, systematization, and generalization to derive scientific conclusions that serve as a theoretical foundation for the research topic In this context, researchers formulate hypotheses by applying logical reasoning from prior studies, subsequently developing a preliminary scale for analysis.
The study employed a quantitative approach, beginning with a test survey of TikTok Shop customers in Ho Chi Minh City, utilizing convenient sampling to validate the preliminary scale through reliability testing and exploratory factor analysis Following the refinement of the questionnaire based on initial findings, the author conducted direct surveys to gather data from customers who had made purchases on the TikTok Shop platform The collected data was then encrypted, cleaned, and analyzed using SPSS 20.0 software, employing descriptive statistics, reliability testing, correlation analysis, and regression to evaluate the research model and hypotheses.
Sampling Method
According to Hair et al (1998), for effective exploratory factor analysis (EFA), the sample size should be a minimum of five times the number of observed variables Given that the questionnaire in question includes 23 variables, the recommended sample size should be at least 115 participants.
In addition, to conduct regression analysis according to Tabachnick and Fidell
According to Nguyen Dinh Tho (2012), the formula for calculating the required sample size is 50 + 8*n, where n represents the number of independent variables In this study, there are six independent variables, resulting in a minimum sample size of 50 + 8 * 6, which equals 98 samples.
Combining the above two conditions requires a sample size of N >= Max (115,
98) = 115 to conduct an EFA analysis.
To ensure adequate representation of individual customers in Ho Chi Minh City, it is essential to include both men and women in the study Statistical indicators in HCMC should achieve an overall scale and reliability of 95%, with an optimal sample size being ten times the number of observed variables Given a scale of 23 observation variables, a sample size of 230 is recommended for conducting the survey.
250 research samples, and conducting a study through the research table in Appendix
01 via email, Zalo, and Facebook.
The author employs the Likert scale, a widely utilized tool in online surveys, which enables respondents to express their views without necessarily taking a stance This scale allows participants to select a neutral option, providing an average response to the given issue.
Disagree Normal Agree Very agree
Data collection and analysis methods
3.4.1 Evaluation of the reliability of the scale
Cronbach's Alpha coefficient ranges from 0 to 1, with a higher value indicating greater reliability of the scale However, an excessively high coefficient (0.95 or above) suggests that many variables may overlap, indicating a lack of distinction among them Therefore, when assessing scale reliability, it is essential to consider these factors.
- If a measurement variable has a Corrected Item (Total Correlation) greater than or equal to 0.3, the variable is satisfactory (Cristobal et al., 2007).
- Cronbach's Alpha coefficient value (Source: Hoang Trong, Chu Nguyen Mong Ngoc, Research data analysis with SPSS):
From 0.8 to close to 1: perfect scale;
From 0.7 to close to 0.8: a well-used scale;
Exploratory factor analysis (EFA) is a statistical method that simplifies a large set of variables (k) into a smaller number of significant factors (F), where F is less than k In research, this technique allows for the analysis of numerous correlated variables by condensing them into a few key characteristics For instance, instead of examining 20 minor traits of an object, researchers can focus on just four major characteristics, each representing a group of five related traits This approach not only enhances the efficiency of the research process but also reduces time and costs for researchers.
The Cronbach Alpha scale reliability test assesses the internal consistency of variables within the same group, focusing on their relationship to a single factor In contrast, Exploratory Factor Analysis (EFA) examines the relationships among variables across different groups, identifying observational variables that may be incorrectly assigned or that load onto multiple factors.
The KMO coefficient, or Kaiser-Meyer-Olkin measure, is a crucial indicator for assessing the suitability of factor analysis For factor analysis to be deemed appropriate, the KMO value must be 0.5 or higher (0.5 ≤ KMO ≤ 1) A KMO value below 0.5 suggests that factor analysis may not be suitable for the dataset being studied.
Bartlett's test of sphericity is essential for determining the correlation among observed variables in factor analysis For factor analysis to be valid, these variables must reflect different aspects of the same underlying factor and exhibit correlation A lack of statistical significance in the Bartlett test (p > 0.05) indicates that factor analysis should not be conducted on the variables in question Conversely, a statistically significant result (p < 0.05) confirms that the observed variables are indeed correlated, making factor analysis appropriate.
Eigenvalue is a commonly used criterion for determining the number of factors in EFA analysis Only factors with Eigenvalue ≥ 1 will be retained in the analysis model with this criterion.
A Total Variance Extended of 50% or more signifies that the Exploratory Factor Analysis (EFA) model is suitable This percentage reflects the proportion of variance accounted for by the extracted factors, indicating the effectiveness of the model in capturing the relationships among observed variables while also highlighting any potential loss of information.
Factor Loading, or factor weighting, represents the correlation between an observed variable and its corresponding factor A higher factor loading indicates a stronger correlation, while a lower loading suggests a weaker relationship As noted by Hair et al (2010), a factor loading of 0.5 is considered indicative of a good-quality observational variable, with a minimum threshold of 0.3 being acceptable.
• Factor Loading at ± 0.3: The minimum condition for the observed variable to be retained.
• Factor Loading at ± 0.5: The observed variable is statistically significant.
• Factor Loading at ± 0.7: The observed variable is statistically significant.
Before conducting regression analysis, it is essential to assess the linear correlation among all variables involved If the correlation scale is adequate, Pearson correlation analysis can be applied This two-way testing evaluates the linear relationship between dependent and independent variables, allowing for the identification of strong correlations or potential multicollinearity among independent variables A Pearson correlation coefficient close to 1 indicates a strong linear relationship between the variables (Hoang Trong & Chu Nguyen, Mong Ngoc, 2008).
In research, testing hypotheses about the relationship between variables is crucial, particularly involving one dependent variable and one or more independent variables When there is a single independent variable, the analysis is referred to as Simple Linear Regression (SLR) Conversely, when two or more independent variables are involved, the model is known as Multiple Linear Regression (MLR).
Y: dependent variable, which is the variable affected by another variable.
X, X1, X2, Xn: independent variable, which is the variable acting on another variable. β0: regression constant, otherwise known as blocking factor This is what the value of Y would be if all X were zero In other words, this index tells us the Y value without the X When represented on the Oxygen graph, β0 is the point on the Oy axis through which the regression line crosses. β1, β2, βn: regression coefficient or angular coefficient This indicator tells us about the change in Y caused by the corresponding X In other words, it indicates how many units Y will change if X increases or decreases one unit.
E: error The larger this indicator, the more likely the regression prediction becomes less accurate or more misleading than it is The mistake in overall regression or residual in sample regression represents two values: independent variables outside the model and random errors.
Once a linear relationship between the two variables is established, linear regression can be utilized to model this causal connection To ensure that the findings from the sample can be meaningfully generalized to a larger population, it is essential to consider several key criteria in linear regression analysis.
The validation of a regression model's suitability is assessed using the adjusted R² coefficient, which indicates the percentage of variability in the dependent variable explained by the independent variable, while also considering the sample size and the number of independent variables in the multiple regression model An R² value closer to 1 signifies a well-fitting model, whereas a value nearer to 0 indicates a poor fit to the sample dataset.
The magnitude of the residual (error) needs to be normalized Normalized residuals have an average of 0 and a standard deviation of 1.
Residual independence, which indicates the absence of correlation between residuals, can be assessed using the Durbin-Watson statistic (d) A Durbin-Watson value close to 2 suggests that there is no first-order serial correlation among the residuals, ensuring the validity of the regression model.
In multivariate analysis, it's crucial to recognize that independent variables can be entirely correlated with one another, which is not accounted for by the Variance Inflation Factor (VIF) When the VIF of an independent variable exceeds 10, it indicates that this variable contributes little to explaining the variation of the dependent variable in a multiple regression model (Hair et al., 2006, cited by Nguyen Dinh Tho, 2012).
RESEARCH RESULTS
Sample Information
The author surveyed the results of distributing 250 questionnaires, withdrawing
Out of 250 votes collected, 25 invalid responses were discarded during data entry due to insufficient information or identical answers from respondents Consequently, the official survey sample was reduced to 225 valid questionnaires The data from these 225 responses were analyzed using SPSS software version 20 for the study.
* About gender, age, and income
Table 4 1: Statistical summary describing the study sample
Source: The author calculates based on survey data
Table 4.1 reveals that 68% of respondents identify as female, while only 32% identify as male, indicating that women are more likely to engage in online shopping compared to men.
Description of survey sample characteristics
N Minimum Maximum Mean Std Deviation
Table 4 2: Statistics describe the research variable in the model
- The CV variable group has a mean value of 3.6667
The observed variable CV1 has the lowest mean value of 3.52 The observed variable CV2 had the highest mean value of 3.74
- The PR variable group has a mean value of 3.7852
The observed variable PR1 has the lowest mean value of 3.63 The observed variable PR3 has the highest mean value of 3.88
- The SI variable group has a mean value of 3.7852
The SI2 observed variable has the lowest mean value of 3.74 The SI3 observed variable has the highest mean value of 3.81
- The Web variable group has a mean value of 3.7589
The observed variable Web1 has the lowest mean of 3.70
The observed variable Web3 has the highest mean value of 3.79
- The variable group PM has a value of 3.7185
The PM1 observed variable has the lowest mean of 3.68
The PM3 observed variable had the highest mean value of 3.74
- BR variable group with a value of 3.8074
The observed variable BR4 has the lowest mean value of 3.75 The observed variable BR3 had the highest mean value of 3.89
- PI variable group with a mean value of 3.8978
The PI4 observed variable had the lowest mean value of 3.78The PI3 observed variable had the highest mean value of 3.97
Evaluation of the reliability of the scale
The test results show that the reliability coefficient of Cronbach's Alpha scale of
The coefficient of variation (CV) is 0.924, which exceeds the threshold of 0.6, indicating a strong relationship Additionally, the corrected item-total correlations for the observed variables CV1, CV2, CV3, and CV4 are all greater than 0.3, demonstrating that these variables significantly contribute to the overall CV factor.
4.3.2 Scale of Price Perception variable
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The test results show that the reliability coefficient of Cronbach's Alpha scale of
The PR value of 0.927 exceeds the threshold of 0.6, indicating a strong relationship Additionally, the observed variables PR 1, PR 2, PR 3, and PR 4 each demonstrate a corrected item-total correlation greater than 0.3, confirming their significant contribution to the PR factor.
4.3.3 Scale of the Source of Reference variable
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The test results indicated that the Cronbach's Alpha reliability coefficient for SI was 0.730, exceeding the acceptable threshold of 0.6 Additionally, the observed variables SI1, SI2, and SI3 demonstrated a corrected item-total correlation greater than 0.3, confirming that these observed variables effectively represent the SI factor.
4.3.4 Scale of E-Service Quality variable
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The test results indicated that Web's Cronbach's Alpha reliability coefficient was 0.947, exceeding the acceptable threshold of 0.6 Additionally, the observed variables Web 1, Web 2, Web 3, and Web 4 demonstrated a Corrected Item-Total Correlation greater than 0.3 Therefore, these observed variables significantly contribute to the understanding of the Web factor.
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The test results indicated that the Cronbach's Alpha reliability coefficient for the PM scale was 0.930, significantly exceeding the acceptable threshold of 0.6 Additionally, the observed variables PM1, PM2, PM3, and PM4 demonstrated a corrected item-total correlation greater than 0.3, confirming that these variables effectively represent the PM factor.
4.3.6 Scale of Brand Reputation variables
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The test results indicated a strong reliability coefficient of 0.875 for the Cronbach's Alpha scale of BR, exceeding the acceptable threshold of 0.6 Additionally, the observed variables BR1, BR2, BR3, and BR4 demonstrated significant correlations, with Corrected Item—Total Correlation values all greater than 0.3, confirming that these variables effectively represent the BR factor.
4.3.7 Scale of Purchase Intention variable
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The test results indicated a high reliability of the PI scale, with a Cronbach's Alpha coefficient of 0.906, surpassing the acceptable threshold of 0.6 Additionally, the observed variables PI1, PI2, PI3, and PI4 demonstrated significant correlations, all exceeding 0.3, confirming their effectiveness in representing the PM factor.
EFA Discovery Factor Analysis
4.4.1 Exploratory factor analysis for independent variables
Performing a discovery factor analysis, we have the following table of rotation matrix result:
Kaiser-Meyer-Olkin Measure of Sampling Adequacy ,902 Bartlett's Test of Sphericity Approx Chi-Square 4580,900 df 190
Table 4 4: KMO and Bartlett's Test
In the KMO results table, we see that there is KMO = 0.902 > 0.5, so EFA discovery factor analysis is consistent with the value sig = 0.000 0.5, so EFA discovery factor analysis is consistent with sig value = 0.000 1 This factor explains 84,303% of the data variation of the three observed variables involved in EFA.
Table 4 8: Component Matrix dependent Variable
When EFA, the dependent variable is criticized by a single factor from the observed variable, so the matrix cannot rotate The criticism of 1 factor means that the
PI scale ensures unidirectionality; the observed variables of the dependent variable converge pretty well.
Correlation Analysis
F_PI F_CV F_PR F_SI F_Web F_PM F_BR
The table indicates that both the dependent and independent variables exhibit a significance value of 0.000, which is less than the threshold of 0.05 This demonstrates that the derived variables are statistically significant and show a correlation with the dependent variable, qualifying them for regression analysis.
The correlation analysis reveals that the SI variable exhibits the strongest correlation with the dependent variable PI, with a coefficient of 0.606 Other independent variables also show strong correlations with the dependent variable IU, although not as strong as SI Consequently, hypotheses H1, H2, H3, H4, H5, and H6 are confirmed.
Multivariate Regression Analysis
Performing multivariate regression gives us the following results:
Std Error of the Estimate
1 ,726 a ,527 ,514 ,65062 2,024 a Predictors: (Constant), F_BR, F_PM, F_PR, F_CV, F_Web, F_SI b Dependent Variable: F_PI
The table presents the R square and adjusted R square values, which are essential for evaluating the model's adequacy An adjusted R square of 0.514 signifies that the independent variables in the regression analysis account for 51.4% of the variability in the dependent variable, while the remaining variability is attributed to factors not included in the model and random error.
Evaluating the suitability of the ANOVA model
Model Sum of Squares df Mean Square F Sig.
Source: SPSS 20.0 a Dependent Variable: F_PI b Predictors: (Constant), F_BR, F_PM, F_PR, F_CV, F_Web, F_SI
The test sig value F equals 0.00< 0.05, so the regression model is suitable.
Std Error of the Estimate
Source: SPSS 20.0 a Predictors: (Constant), F_BR, F_PM, F_PR, F_CV, F_Web, F_SI b Dependent Variable: F_PI
Table 4 11: Testing the implicit assumptions of linear regression
The Durbin–Watson value of 2.014 indicates that there is no violation of the assumption of first-order series self-correlation, as it falls within the acceptable range of 1.5 to 2.5 (Yahua Qiao, 2011).
Standardized Coefficients t Sig Collinearity Statistics
B Std Error Beta Tolerance VIF
Source: SPSS 20.0 a Dependent Variable: F_PI
The VIF coefficients of the above variables are all no linear multi- addition occurs.
All variables, except for the SI variable, significantly impact the dependent variable, as indicated by their significance coefficients of less than 0.05 The SI variable, with a significance value greater than 0.05, shows no influence on the PI variable.
The regression model is written as follows:
PI = 0,251 CV + 0,195 PR + 0,176 Web + 0,144 PM + 0,241 BR + e
In the image above, the Mean = 1,04E-14 = 2,71 * 10-15 = 0.00000 is close to
0, and the standard deviation of 0,987 is close to 1 Thus, the excess distribution is approximately standard, assuming the normal distribution of the excess is not violated.
Figure 4 2: P-Plot of Rengression Standardized Residual
The data points depicted in the figure are primarily clustered near the diagonal, indicating that the residuals exhibit an approximately normal distribution, provided that the assumption of normality for the excess is upheld.
The data points are primarily clustered around the zero toss line, indicating a linear relationship that remains intact In this dataset, the allocation normalized residuals also align closely with the zero toss line, confirming that the assumption of linearity is upheld.
H1 Hypothesis: Conveniencehas a positive impact on purchase intentions of Gen Z students on
H2 hypothesis: Price Perceptionhas a positive impact on purchase intentions of Gen Z students on
H3 hypothesis: Source of Referencehas a positive impact on purchase intentions of Gen Z students on
H4 hypothesis:E-Service Quality has a positive impact on purchase intentions of Gen Z students on
H5 hypothesis: Promotionhas a positive impact on purchase intentions of Gen Z students on
H6 hypothesis: Brand Reputation has a positive impact on purchase intentions of Gen Z students on
Table 4 13: Testing research hypotheses 4.7 Research Result Discussion
The study reveals a significant correlation between convenience and purchase intent on TikTok Shop among Gen Z students in Ho Chi Minh City, with convenience being a driving factor that positively influences buying decisions The findings indicate that the convenience variable has a direct and positive impact on the intent to buy, suggesting that a seamless and hassle-free shopping experience is crucial for this demographic.
Price Perception**: The Price Perception factor significantly influences the purchase intent of Gen Z students in Ho Chi Minh City when shopping on TikTok The findings indicate that the price variable directly correlates with the intent to purchase, demonstrating that rational pricing positively affects consumers' buying decisions.
The study investigates the influence of online reviews on the purchase intent of Gen Z students in Ho Chi Minh City when shopping on TikTok Shop Findings reveal that, contrary to the author's expectations, these references do not significantly impact the purchase intent variable.
E-Service Quality: The hypothesis is given H4: E-service quality has a positive impact (+) on the purchase intention of Gen Z students in Ho Chi Minh City to buy on TikTok Shop The results of the study show that the quality of electronic services is meaningful and accountable for the purchase intent variable However, the electronic service quality variable has an impact (+), i.e., a reciprocal effect It can, therefore, be concluded that the quality of e-services has a synergistic and positive effect on purchase intent, which coincides with previous studies.
The hypothesis H5 posits that promotions positively influence the purchase intent of Gen Z students in Ho Chi Minh City when shopping on TikTok Shop Analysis confirms that this variable significantly impacts purchase intent, leading to the conclusion that promotions not only enhance but also reciprocate the desire to buy.
Brand reputation significantly influences the purchase intentions of Gen Z students in Ho Chi Minh City when shopping on TikTok Shop The findings of the study indicate that a strong brand reputation positively correlates with increased purchase intent among this demographic.
Chapter 4 presents the validation of the scale’s reliability, conducted using SPSS20.0 software The scale and questionnaire are integral to the application of quantitative research methods within the model The proposed model encompasses factors such as Convenience, Price Perception, E-Service Quality, Promotion, andBrand Awareness, all of which are affirmed, with the exception of the Source ofReference factor.
Research Results Discussion
This study systematically explores the theoretical foundations of e-commerce, online consumer behavior, and the factors influencing purchase intent among Gen Z students in Ho Chi Minh City on TikTok Shop Drawing from previous research, a comprehensive model has been developed to identify key determinants affecting the purchasing decisions of this demographic on the TikTok Shop platform The research model comprises one dependent variable and six independent variables, providing valuable insights into the online shopping behaviors of Gen Z consumers.
The research process consists of two key phases: preliminary and formal During the preliminary phase, secondary data was collected through prior research, reports, and documents to refine the study model This adjustment led to the identification of factors influencing the purchase intent of Gen Z students in Ho Chi Minh City on the TikTok Shop platform The dependent variable is the purchase intent of Gen Z students, while six independent variables were established: Price Perception, Convenience, E-Service Quality, Source of References, Brand Reputation, and Promotions, which are measured through 20 observation variables.
The formal study employed quantitative methods through survey questionnaires, yielding 225 valid responses This research involved several steps, including scale validation using Cronbach's alpha for reliability assessment and exploratory factor analysis (EFA) Hypothesis testing was conducted using multivariate regression analysis with SPSS 20.0 software.
The results of multivariate regression analysis show that Gen Z students' intention to buy on TikTok Shop in Ho Chi Minh City is influenced by 5 factors.
The influence of various factors on the purchasing intentions of Gen Z students in Ho Chi Minh City regarding TikTok Shop is significant To enhance user experience and drive sales, it is essential for TikTok Shop and e-commerce platforms to consider tailored recommendations that address these impactful elements.
CONCLUSIONS AND GOVERNANCE IMPLICATIONS.62
Conclusion
This study systematically examines the theoretical foundations of e-commerce and online consumer behavior, focusing on the factors that influence Gen Z students' purchasing intentions on TikTok Shop in Ho Chi Minh City Drawing from previous research, a comprehensive model has been developed to identify these influencing factors, comprising one dependent variable and six independent variables related to the purchasing intent on the TikTok Shop platform.
The research process consists of two main steps: preliminary and formal During the preliminary phase, secondary data was collected through previous studies, reports, and documents to refine the study model This calibration aimed to better understand the factors influencing the purchase intent of Gen Z students in Ho Chi Minh City on TikTok Shop The study identifies the dependent variable as the purchase intent on TikTok Shop and six independent factors: Price Perception, Convenience, E-Service Quality, Source of References, Brand Reputation, and Promotions, measured through 20 observation variables.
The formal study employed quantitative methods, utilizing survey questionnaires through a convenient sampling approach, yielding 225 valid responses The research process involved scale validation through Cronbach's alpha reliability assessment and exploratory factor analysis (EFA) Hypothesis testing was conducted using multivariate regression methods with SPSS 20.0 software.
The results of multivariate regression analysis show that Gen Z students' intention to buy on TikTok Shop in Ho Chi Minh City is influenced by 5 factors.
Governance Implications
This article explores the influence of various factors on the purchase intent of Gen Z students in Ho Chi Minh City when using TikTok Shop Based on these insights, the author provides recommendations for TikTok Shop and e-commerce platforms to enhance their online services and foster the growth of online shopping in the city.
Customer reviews play a crucial role in influencing the purchasing decisions of Gen Z students in Ho Chi Minh City when shopping at TikTok Shop To effectively harness the power of social proof, TikTok Shop should focus on building a strong system of user-generated content, including authentic reviews and ratings, which not only provides valuable insights for potential buyers but also fosters community engagement Collaborating with influencers who resonate with Gen Z can enhance the platform's credibility and reach, as these trusted figures can guide their followers through genuine recommendations Additionally, implementing a feature that showcases trending or highly-rated products can serve as a powerful reference point, signaling social validation and popularity among users.
Convenience plays a vital role in shaping the shopping habits of Gen Z students in Ho Chi Minh City, making it essential for platforms like TikTok Shop to enhance user experience Streamlining the shopping process by reducing purchase steps, simplifying the user interface, and providing one-click options can significantly boost customer loyalty Integrating an effective search engine with advanced filters allows users to efficiently find products that meet their needs, while flexible delivery options, such as same-day or scheduled services, cater to the fast-paced lifestyles of Gen Z Real-time tracking and transparent communication about deliveries help build trust and reassurance among customers Additionally, ensuring accessible customer service through chatbots for instant support and a dedicated team for complex issues can enhance the overall shopping experience By prioritizing these convenience factors, TikTok Shop can create a seamless and enjoyable environment that aligns with the expectations of Gen Z students, fostering a strong connection to the platform.
The perceived value of products, shaped by pricing and discounts, significantly affects consumer choices, especially for platforms like TikTok Shop To appeal to its audience, TikTok Shop should balance competitive pricing with perceived quality by adopting a dynamic pricing strategy that aligns with real-time market conditions Transparent communication about pricing, including cost breakdowns, can build trust among users Integrating price comparison tools will enable consumers to assess product value against competitors, reinforcing the platform's commitment to affordability Genuine sales promotions, with clear original prices and discount details, enhance consumer understanding of value, while limited-time offers can drive urgency in purchasing decisions By prioritizing fair pricing, transparency, and a strong value proposition, TikTok Shop can enhance price perception among Gen Z students, fostering loyalty and growth in Ho Chi Minh City's competitive e-commerce market.
A strong brand reputation is crucial for TikTok Shop's long-term success and customer loyalty, particularly among Gen Z consumers To enhance its reputation, TikTok Shop must consistently provide high-quality products and exceptional customer service, including accurate product descriptions and prompt order fulfillment Transparency in business practices and ethical sourcing will resonate with socially conscious shoppers Engaging in community-building activities, such as supporting local events and environmental initiatives, can further reinforce the brand's commitment to social responsibility Additionally, leveraging user-generated content, like testimonials, can authenticate the brand's image and influence potential customers Actively managing online presence by responding to reviews and feedback demonstrates dedication to customer satisfaction By focusing on these strategies, TikTok Shop can cultivate a trustworthy brand image that drives purchasing decisions and fosters loyalty among consumers in Ho Chi Minh City.
In traditional business, physical stores serve as venues for showcasing products and facilitating transactions between customers and suppliers Similarly, TikTok Shop functions as an online marketplace that not only displays goods but also enhances the shopping experience with a variety of interactive features, creating a dynamic environment for customer engagement and purchases.
In the competitive online retail landscape, comprehensive product details enable customers to compare features and prices effectively, while interactive online comments foster shopper engagement E-commerce platforms must facilitate efficient product filtering and searching, aligning offerings with customer preferences and desired price points Additionally, diverse payment support enhances the shopping experience TikTok Shop, a rising player in Vietnam's online market, recognizes the critical role of electronic service quality, investing significantly in its platform's features With fast access speeds, compatibility across various devices, and a strong presence in search results, TikTok Shop offers effective order management and user-friendly functionalities, ultimately enriching the online shopping experience and boosting customer purchasing potential.
Promotional activities on TikTok Shop play a crucial role in influencing the purchasing decisions of Gen Z students in Ho Chi Minh City, with discounts and exclusive deals serving as strong motivators However, the success of these promotions hinges on their perceived authenticity; if consumers feel that offers are misleading or untrustworthy, it can lead to skepticism To enhance buying intent, TikTok Shop should ensure transparency in promotional campaigns, providing clear terms and verifiable benefits Implementing a feedback mechanism for users to rate promotions can foster trust and guide future buyers Additionally, utilizing data analytics to tailor promotions based on consumer behavior can enhance user experience and increase conversion rates By prioritizing quality and authenticity in its promotional strategies, TikTok Shop can solidify its reputation as a reliable platform for value-driven e-commerce among the youth in Ho Chi Minh City.
Limitations and further research directions
The research model accounts for 51.4% of the variation in TikTok Shop purchase intention among Gen Z students in Ho Chi Minh City, highlighting the influence of factors such as convenience, e-service quality, source of references, and brand reputation However, 48.6% of the variability in purchase intent remains unexplained, suggesting that there are additional determinants affecting this behavior that have yet to be identified, indicating a need for further exploration to improve the model's comprehensiveness.
Due to constraints in people, time, and finances, this study utilized a convenience sampling method with 225 participants, which may not fully represent the broader population and could lead to subjective biases in the findings To enhance the validity and generalizability of future research, it is recommended to employ a larger sample size, select participants based on probability sampling, and implement stratified sampling techniques.
This study identifies key factors influencing the online purchase intention of Gen Z students on the TikTok Shop platform Following the intention to purchase, the research emphasizes the importance of analyzing post-purchase behavior to ensure customer satisfaction and encourage repeat usage of services Consequently, the author suggests that future research should focus on understanding the factors that affect customers' intentions to make repeat purchases, thereby enhancing overall customer loyalty.
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Hello, I am Nguyen Hoai Ngoc, a student from the Business Administration department at the University of Economics and Law - Vietnam National University,
Ho Chi Minh City Currently, I am working on my graduation thesis titled ‘FACTORS AFFECTING THE PURCHASE INTENTION OF GEN Z STUDENT LIVING IN
This survey aims to gather valuable feedback from participants to assess the current usage trends and intentions, ultimately strengthening the arguments presented in our thesis regarding Ho Chi Minh City.
I am conducting research and assure you that all responses will remain confidential Your cooperation is essential for the comprehensiveness of my thesis results Thank you for your support.
4 Have you ever shopped on the TikTok Shop platform before?
You indicate your level of agreement with the following statements by ticking the appropriate box With numbers 1 through 5 representing ascending degrees: (1) Very disagree; (2) Disagree; (3) Normal; (4) Agree; (5) Very agree.
TikTok Shop allows me to shop without the need to visit a physical store.
TikTok Shop offers the flexibility to shop at any time that suits me.
TikTok Shop typically has all the items I am looking for.
TikTok Shop offers a wide variety of products and a diverse range of suppliers.
Shop is straightforward and user- friendly.
The prices of items on TikTok
Shop are generally more competitive than those in physical stores.
On TikTok Shop, I tend to make quicker purchase decisions for lower-priced products compared to higher-priced ones.
I routinely consult product comments on TikTok Shop prior to making a purchase.
I find the comments and reviews from previous buyers on TikTok
Shop to be valuable sources of information.
A higher volume of comments from previous buyers on TikTok
Shop simplifies my shopping decision process.
I can easily navigate to and access stores on TikTok Shop.
The process to make a purchase on
TikTok Shop is straightforward and user-friendly.
The store interfaces on TikTok
Shop are clean and visually appealing, making it easy to browse.
Stores on TikTok Shop provide detailed and comprehensive information about their products and sellers.
I am attracted to the frequent promotions offered during
Shop influence my decision to make a purchase.
Promotional offers provide me with the opportunity to try new products on TikTok Shop.