THE IMPACT OF DIGITAL MARKETING ON TIKTOK ON THE ONLINE PURCHASING BEHAVIOR OF GEN Z CUSTOMERS FIELD: Social Sciences SPECIALIZATION: Marketing and User Behavior Hanoi, May 14, 2024..
Trang 1THE IMPACT OF DIGITAL MARKETING ON TIKTOK ON THE ONLINE
PURCHASING BEHAVIOR OF GEN Z CUSTOMERS
FIELD: Social Sciences
SPECIALIZATION: Marketing and User Behavior
Hanoi, May 14, 2024
Trang 2Chapter I: Theoretical basis of digital marketing and customer buying behavior 9
1.1.2 Characteristics and Differences from Traditional Marketing 11
1.4 The relationship between Digital Marketing and Buying Behavior 25
Trang 3Chapter II: Research Methods and Evaluation Models 46
Chapter III: Conclusions and some recommendations for Gen Z shoppers when
Trang 4LIST OF ILLUSTRATIONS
Figure 3 Generational expectations of different elements of
advertising in the UK and US
72
Figure 4 Reasons for the irritation nature of some ads 73
Trang 5LIST OF TABLES
Table 1 Statistical table of factors affecting consumers' online
Table 4 Statistics describe the variables used in the model 56
Table 5 Description of Outer Loading, Cronbach's alpha,
Composite reliability and AVE indicators 59
Trang 6LIST OF ACRONYMS
2 TPB Theory of Planned Behavior
4 HTMT The Heterotrait-Monotrait ratio of correlations
Trang 7Prologue
1 The urgency of the topic
As of April 2023, TikTok boasts 1.09 billion users aged 18 and over The platform's advertising reach has expanded by approximately 41 million users (+3.9%) in the three months to date (Kemp, 2024) The largest demographic on TikTok is the 18 to 24 age group, making up 38.5% of the ad audience ByteDance reports that marketers have accessed around 13.6% of the global population through TikTok ads (Solomons, 2023) The COVID-19 pandemic has accelerated the shift to online shopping, highlighting the need to understand Generation Z's online behavior TikTok plays a pivotal role in this digital shopping revolution, serving as a key platform for product discovery and brand engagement In today's competitive digital landscape, businesses must stay ahead by understanding and utilizing emerging platforms like TikTok to remain relevant and competitive Studying this topic is crucial for making informed strategic decisions and driving business growth in an increasingly digital world
Generation Z, born between 1997 and 2012, is known for its technological literacy, high curiosity, and quick information absorption (Dimock, 2019) As the first generation
to grow up entirely in the digital era, Gen Z is exceptionally tech-savvy and highly engaged with social media platforms, particularly TikTok, which has rapidly become a powerful tool in digital marketing They have greater access to information than previous generations at the same age, thanks to the ease of online searching (Seemiller & Grace, 2017) Gen Z actively seeks new and unique experiences, enjoys interacting with creative content, and often shares these experiences on social media (Dimock, 2019) This makes them the most responsive audience to information and digital marketing activities on TikTok The platform's dynamic algorithm and rapid growth highlight its appeal to young people worldwide, featuring short video content that captures their interest and fosters creativity (Weimann & Masri, 2021) Consequently, TikTok has seen significant increases in user numbers and cultural impact, prominently featuring the cultures, symbols, spaces, and lifestyles of young people (Kennedy, 2020) Therefore, understanding the impact of digital marketing on TikTok on Gen Z's buying behavior has garnered considerable attention from researchers
Trang 8International studies have delved deeper into the impact of TikTok on consumer behavior Zhao and Wagner (2022) found that TikTok advertising campaigns can drive purchasing behavior by forging strong emotional connections with consumers Tartaraj et
al (2024) highlighted the significant influence of TikTok influencers on consumer behavior, enhancing brand awareness and swaying purchasing decisions Their research also showed how promotions on TikTok affect consumers' likelihood to buy products or services Bossen and Kottasz (2020) discovered that teenagers primarily engage in passive consumer behaviors on TikTok, driven by entertainment and emotional satisfaction This behavior aligns with adolescent psychology theories (Adelson, 1980), which suggest that adolescents are motivated by a desire to expand their social networks, seek fame, express themselves, and build their identities Similarly, Kim and Yoo (2021) demonstrated that TikTok's high interactivity, through challenges and creative short videos, can significantly boost brand awareness and buying motivation among young consumers
However, research on this topic in Vietnam remains limited Early studies indicate that TikTok is emerging as an important advertising tool in the Vietnamese market, but there is a lack of specific research on how digital marketing activities on TikTok influence the buying behavior of Vietnamese Gen Z consumers For instance, there is insufficient data on the factors that Gen Z customers prioritize when watching short video ads on TikTok Understanding these factors is crucial for developing effective advertising models targeted at Gen Z consumers in Vietnam
Therefore, research on "The impact of digital marketing on TikTok on the buying behavior of Gen Z consumers" is essential at this time This study will not only address the current knowledge gap but also offer valuable insights for businesses and marketers in Vietnam By understanding Gen Z's consumer behavior on TikTok, businesses can optimize their digital marketing strategies, craft more effective ad campaigns, and ultimately boost engagement with younger customers In an increasingly competitive market, embracing and leveraging new trends like TikTok is not just an advantage but a key determinant of long-term success
Trang 92 Literature review
TikTok's explosive growth and widespread adoption among Generation Z have transformed the digital landscape, making it a crucial platform for brands and marketers targeting this influential demographic Additionally, the rise of prominent TikTok influencers has created new opportunities for advertising collaborations between brands and popular figures on the platform (Nguyen, 2022) Leveraging their influence, brands can reach a vast audience of fans, creating a domino effect in spreading marketing messages This enhances Gen Z's purchase demand and accelerates their online purchasing decisions (Cruz et al., 2022)
Research on the impact of digital marketing on TikTok on customers' online buying behavior is expanding across various fields, including fashion, food, education, entertainment, and culture (Guerrero, 2023; Simić et al., 2023) The increasing number of studies in this area reflects a growing awareness among developing countries, particularly
in Asia and Southeast Asia, of the need to understand and adapt to new consumer trends These studies not only help businesses gain a deeper understanding of Gen Z customers' buying behavior but also provide crucial insights for developing effective digital marketing strategies on the TikTok platform
Studies on the impact of digital marketing on platforms like TikTok have utilized various methods, each offering unique insights into the effectiveness of advertising campaigns For instance, Gesmundo et al (2022) conducted descriptive causal analysis and surveyed a group of younger individuals aged 25 to 40 in the Philippines Their research found that short video content, a popular format on TikTok, significantly enhanced the performance of digital advertising campaigns In contrast, Rowley (2008), through document analysis and exploration of various digital content delivery platforms, highlighted the importance of digital marketing tools in boosting market response and brand value
Furthermore, Ratu et al (2022) employed independent variables such as digital marketing, promotion, and electronic word of mouth, alongside the dependent variable of
Trang 10purchase intent, measured through a Likert scale questionnaire Their findings suggest that TikTok Shop holds potential as an advertising tool for SMEs Similarly, Fu (2023) surveyed 264 TikTok consumers in China, revealing that Gen Z customers actively seek product information and compare prices directly on TikTok, leveraging features like price comparison tools and promotions Additionally, Araujo et al (2022) conducted a study with 386 male and female TikTok users aged 18-24 in Metro Manila, utilizing quantitative methods and a descriptive correlation design (PLS-SEM) Their research indicates that the emotional, entertaining, and informational aspects of TikTok video ads positively influence consumer behavior by enhancing brand recognition and visibility Moreover, seamless integration of in-app shopping features like TikTok Shop, as demonstrated by Bray (2024), streamlines the purchasing process and may encourage impulsive buying behavior
Numerous studies have underscored the significant influence of influencer marketing
on the purchasing habits of Generation Z consumers on TikTok Yang and Ha (2021) examined the impact of influencer marketing on TikTok by surveying 382 college students in China online Their findings revealed that Gen Z consumers are more susceptible to influencer recommendations on TikTok compared to traditional advertising methods Similarly, Thangavel et al (2019) utilized the Discovery Factor Analysis (EFA) method and collected 244 responses from Gen Z individuals Their research highlighted the distinct nature of Gen Z users, who prioritize opportunities for sharing viewpoints and engaging with brand representatives Positive brand reviews and high ratings are pivotal
in driving purchases and fostering trust among Gen Z consumers, with value and conscientiousness playing central roles in their decision-making processes
Most studies emphasize the significance of TikTok and digital marketing in the contemporary business environment, particularly their impact on Generation Z consumers With TikTok's ongoing expansion and increasing influence, businesses need
to adapt their marketing strategies to effectively harness the platform's potential Integrating TikTok as a core element of digital marketing initiatives enables businesses to
Trang 11amplify brand visibility, connect with target demographics, and foster meaningful consumer engagement in today's competitive market (Guerrero, 2023)
However, numerous studies have examined the impact of digital marketing on TikTok, yielding varied results due to inherent biases and a predominant focus on developed countries like the United States (Bray, 2024), and China (Fu, 2023; Yang &
Ha, 2021) Moreover, research findings indicate that not all renowned businesses utilize the TikTok platform for product marketing, potentially hindering brand recognition (Gesmundo et al., 2022) Additionally, limitations of some studies include a narrow focus
on specific demographic segments, such as Gen Y, which may not have extensive exposure to digital marketing on social media platforms (Gesmundo et al., 2022) Furthermore, future research could explore the impact of cultural differences on the efficacy of TikTok's marketing strategies, thus offering deeper insights into the platform's global reach and effectiveness (Guerrero, 2023)
Trang 123 Contribution of the topic
Digital marketing is increasingly pivotal in shaping purchasing decisions on TikTok, particularly among younger demographics Product review videos, live sales streams, and influencer marketing (KOL-Marketing) wield significant influence over TikTok users, whose desire to shop is often sparked by entertaining and relatable content With TikTok's integration of live shopping features, purchasing products directly after watching a video
is seamless
This study aims to analyze the impact of digital marketing activities on TikTok on the online purchasing behavior of Gen Z consumers in Vietnam, with the goal of providing recommendations to enhance the efficiency of online shopping for both customers and businesses Building upon previous research that has established the theoretical underpinnings of digital marketing and online purchasing behavior, this research synthesizes findings from studies conducted in Vietnam and abroad Employing research methodologies and PLS-SEM data models, the study evaluates how factors such
as entertainment, attractiveness of offers, and provision of information influence the perceived value of ads on TikTok and subsequently affect the behavior of Gen Z consumers
The research findings demonstrate the positive effects of incentives, information, and entertainment on advertising value, as well as the negative impact of negative variables on advertising value Moreover, the perceived value of advertising significantly influences users' perceptions of brands, products, and services, consequently shaping the purchasing and consumption behaviors of Gen Z In summary, this research makes several significant contributions:
Firstly, this study introduces a novel approach by examining the relationship between digital marketing and the purchasing behavior of Gen Z, a departure from previous research By focusing on this specific demographic, we gain insights into how millennials engage with and respond to social media advertising, thereby shedding light
on its influence on their purchasing decisions
Trang 13Secondly, we analyze the current state of online purchasing behavior among Gen Z consumers in Vietnam, particularly concerning advertising on the TikTok platform
Thirdly, we construct a model to assess the impact of digital marketing activities on the TikTok platform on the online purchasing behavior of Gen Z consumers
Finally, drawing from our analysis and data findings, we present solutions and recommendations for enhancing digital marketing efforts on the TikTok platform to attract Gen Z consumers By implementing these strategies, brands can optimize their digital marketing strategies and enhance their online sales tactics, resulting in tangible benefits for their business operations
Trang 144 Topic structure
Chapter I: Rationale of Digital Marketing, TikTok Platform, and Consumer Buying
Behavior
Chapter II: Research methods and results
Chapter III: Discussion of Results and Some Recommendations
Trang 15Chapter I: Theoretical basis of digital marketing and customer buying behavior 1.1 Digital Marketing Overview
1.1.1 Concept and History
In today's world, there's a pronounced emphasis on technological advancements and digitalization According to a 2020 survey by "We are Social," Vietnam boasts a population of 96.9 million, with 145.8 million mobile subscribers (equivalent to 150% of the country's total population), 68.17 million internet users (making up 70% of the population), and 65 million social media users (constituting 67% of the population) With the escalating number of social media users, traditional marketing approaches are no longer sufficient for businesses (Tran, 2022) Consequently, Digital Marketing has emerged as a vital and effective means for businesses to connect with customers
The concept of marketing emerged in the 1980s, coinciding with advancements in computer systems that facilitated the storage of customer information Concurrently, companies recognized the significance of fostering customer relationships rather than solely concentrating on product promotion Consequently, marketers transitioned from traditional methods like address list brokerage to employing marketing databases Pioneered by Robert Kestenbaum and Robert Shaw, regarded as the forefathers of marketing automation, these marketing database solutions offered a range of functionalities including sales funnel automation, campaign management, customer contact strategy optimization, and marketing analytics The advent of smartphones around
2000 led to a shift in consumer behavior, with individuals increasingly turning to online searches via platforms like Google before making purchases Marketo, Act, and Pardot swiftly capitalized on this trend through marketing automation Digital marketing empowered marketers to segment markets, launch multi-channel campaigns, and deliver personalized content, marking a significant advancement in marketing technology tailored for marketers themselves
Various concepts of Digital Marketing are introduced to aid businesses in better comprehension Firstly, in his 2017 book "Marketing 4.0 shifts from traditional to
Trang 16digital," Professor Philip Kotler delineates marketing as "the science and art of discovering, creating, and delivering value to satisfy the needs of the target market." Kotler emphasizes that digital marketing utilizes science and technology to identify market size, determine target segments, and design suitable products and promotions Furthermore, the American Marketing Association (AMA) defines digital marketing as any marketing method conducted through electronic devices, including internet-based efforts This encompasses leveraging websites, search engines, blogs, social media, videos, emails, and similar channels to reach customers Additionally, the UK Chartered Institute of Marketing characterizes digital marketing as organizing and managing production and business activities through digital tools, evolving from identifying consumer needs to delivering goods and ensuring expected profits In contrast, according
to Chaffey and Chadwick in 2022, digital marketing integrates digital media, data, and technology with traditional marketing communications to achieve marketing goals It focuses on managing a company's online presence through various techniques such as search engine marketing, content marketing, social media marketing, online advertising, email marketing, and partnerships with other websites (Chaffey and Smith, 2017)
Various perspectives exist regarding the definition of digital marketing AMA's definition resonates with Philip Kotler's original marketing concept, emphasizing customer-centricity and value The UK Chartered Institute of Marketing broadens the scope, framing digital marketing as a strategic approach spanning market research to profitability Meanwhile, Chaffey and Chadwick encapsulate digital marketing as a set of methods aimed at achieving specific goals
Though definitions vary among organizations and researchers, digital marketing generally entails businesses leveraging digital tools to promote products and achieve business objectives In essence, digital marketing involves utilizing electronic devices like personal computers, smartphones, tablets, and mobile phones to engage with users and showcase products Advertising efforts in digital marketing typically occur across platforms such as websites, email applications, electronic devices, and social networks
Trang 171.1.2 Characteristics and Differences from Traditional Marketing
Firstly, a clear distinction exists between digital marketing and traditional marketing Digital marketing, conducted through online promotion, relies on media agencies, whereas traditional marketing directly impacts customers' lives through methods like leaflets, door-to-door newspapers, and street billboards
Another notable difference lies in engagement and personalization According to a
2017 study by the Institute of Business Administration at the University of Economics, conducted by Quan Van Tung and Dr Due Tien Long, digital marketing transcends geographical boundaries, operating anytime and anywhere with constantly updated information Customer data is easily stored and analyzed across systems, enabling businesses to segment markets and target potential customers effectively Digital marketing utilizes tools to identify customers interested in relevant products, displaying tailored ads to generate qualified leads Customers can conveniently access product details and offers with a simple click, eliminating the need to visit physical stores or companies Consequently, digital marketing boasts higher customer engagement rates compared to traditional methods
On the other hand, traditional marketing is typically confined to domestic promotion efforts Expanding marketing activities to other countries incurs higher costs and necessitates a larger advertising budget compared to utilizing electronic media Additionally, as highlighted by Ryan and Jones (2009), traditional marketing employs standardized methods for targeting customers, resulting in mass marketing with limited personalization Consequently, it struggles to effectively reach specific customer segments due to its broad approach
Moreover, these two marketing approaches diverge in terms of data analysis and optimization As per Chaffey and Ellis-Chadwick (2019), digital marketing benefits from web analytics tools and traffic metrics, enabling businesses to assess campaign effectiveness and refine strategies in real-time In contrast, traditional marketing often grapples with limitations in tracking and analyzing metrics effectively
Trang 18Furthermore, digital marketing offers flexibility and agility in strategy development and adaptation According to Chaffey and Smith (2017), online marketing strategies can
be swiftly implemented and adjusted, facilitating rapid campaign optimization Conversely, traditional marketing typically involves longer-term strategic planning, with fewer opportunities for real-time adjustments
An article by Swinburne suggests that digital marketing may eventually replace traditional marketing entirely (Chi, 2022) However, both approaches have their own merits and drawbacks, and they can complement each other effectively Combining digital and traditional marketing strategies can yield a more comprehensive and efficient approach for businesses To delve deeper into Digital Marketing, the following section will explore its transmission methods
1.1.3 Media channels
Several prevalent communication tools are frequently employed today, including Search Engine Optimization (SEO), Blog Marketing, Content Marketing, and Pay-Per-Click (PPC) advertising
As per insights from Glints and Hubspot blog (2024), SEO represents a facet of search engine marketing This technique amalgamates website rankings and relevant keywords related to businesses on search engine result pages, catering to customers' informational needs Employing SEO obviates the necessity for substantial financial investment in marketing endeavors; instead, it necessitates identifying pertinent keywords and adhering to algorithms to garner Google's endorsement for the quality of articles, images, accompanying multimedia, and customer feedback Consequently, businesses must devise a marketing strategy featuring pertinent and compelling content that not only integrates suitable keywords but also resonates with readers' interests Such content can
be disseminated across various channels, including blogs, ebooks, websites, and infographics., etc
In contrast to SEO, PPC offers businesses visibility through paid advertising on top search engines like Google Ads, Facebook Ads, and LinkedIn Ads, ensuring broad access
to customers via search channels However, this method entails significant costs, and the
Trang 19abundance of ads can disrupt user experience Social Media Optimization (SMO), as outlined by Will Kenton (2023), leverages social networking platforms such as Facebook, Instagram, YouTube, Twitter, and Zalo to engage with customers, share marketing content, and promote products and services These platforms are highly interactive, influencing customers' perceptions, behaviors, and attitudes towards organizations and businesses According to Buffer's "State of Social" report in 2019, Facebook is the preferred marketing channel for businesses, garnering 81% of votes, followed by YouTube with 62% and Instagram with 57%
Furthermore, Blog Marketing is prevalent in European countries and America A blog, or weblog, serves as an online diary covering various topics and personal experiences, facilitating the sharing of opinions and product/service reviews (Kenton, 2023) Businesses commonly integrate blogs into their websites, simplifying data management and analysis while enhancing accessibility for visitors Many businesses utilize platforms like WordPress for their website and blog, enabling clear promotion of images and product information and providing customers with valuable user experiences, thereby driving purchases
In addition to established marketing tools and platforms, TikTok is emerging as a potent medium for content marketing in the realm of Digital Marketing TikTok, a platform for short videos spanning 15 to 60 seconds, covers a wide array of content, ranging from entertainment to product reviews These bite-sized videos have a remarkable potential for rapid virality and high engagement, a trend further amplified during the post-COVID-19 era due to a surge in users, predominantly from Gen Y and Gen Z demographics According to the "The State of Mobile 2023" report by App Annie, TikTok secured its position as the most downloaded app globally in 2022, with downloads exceeding 3 billion Its daily engagement averages at 1 billion, surpassing other social media giants like Facebook and Instagram A study conducted by We Are Social in the "Global Web Index Q2 2023" revealed that a staggering 78% of Gen Z individuals are active on TikTok, with a 22% increase in Gen Z users in 2023 alone
Trang 20TikTok's extensive user base and diverse content offerings, coupled with its encouragement of unique content creation, position it as a promising platform for businesses in the digital marketing sphere With its emphasis on creative short videos, TikTok has the potential to transform ordinary users into influencers Brands can leverage these Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) to promote their products, capitalizing on the captivating nature of short video content This approach proves highly effective as followers seamlessly encounter product introductions while engaging with entertaining skits or musical performances from their favorite creators The anticipation surrounding the next content installment from these creative influencers fosters user curiosity, prompting attentive viewing of advertisements and comprehensive product information absorption
Moreover, TikTok facilitates brand awareness and recognition through review channels, enabling followers to gauge product quality based on trusted KOL and KOC experiences Consequently, businesses witness an uptick in sales Notably, TikTok serves
as a conduit for businesses to tap into Generation Z, a demographic with significant purchasing power According to Deloitte's "Gen Z: The Future of Consumerism" report, 56% of Gen Z users turn to TikTok for product and service information, with 48% making purchases after watching TikTok videos A staggering 70% of Gen Z individuals express greater trust in TikTok influencers compared to influencers on other social media platforms
In today's digital era, social media platforms have become indispensable aspects of daily life Among these platforms, TikTok has emerged as a standout entity, transcending its role as a mere entertainment app to become a prominent social channel embraced by millions worldwide, particularly among Generation Z TikTok's innovative approach and widespread adoption have propelled it to the forefront of social media, facilitating seamless connection and interaction within the online community Consequently, marketing efforts on TikTok have garnered increasing traction, especially for businesses targeting younger demographics Leveraging its capacity to deliver concise, compelling, and easily shareable content, TikTok offers businesses a unique avenue to engage directly
Trang 21with consumers in a creative and personalized manner By harnessing the expansive reach
of the TikTok platform, marketing initiatives can efficiently target desired customer segments, fostering opportunities for cultivating enduring relationships and bolstering brand awareness among the youthful consumer base of Generation Z
1.2 TikTok Online Platform Overview
1.2.1 Features of the Tiktok Platform
TikTok, a video-centric social networking platform developed in China, enables users to capture, edit, and upload videos of up to 60 seconds It integrates seamlessly with other social networks like Facebook, Google, and Instagram, providing a rich library of music for creating engaging content (Montag, Yang, & Elhai, 2021) Consequently, TikTok has become immensely popular among Vietnamese youth (Nguyen, Ho, & Nguyen, 2023) Businesses also leverage TikTok for advertising, crafting campaigns tailored to the platform's unique features (Gesmundo et al., 2022)
TikTok's distinctiveness lies in its focus on short videos, typically 15 to 60 seconds long This brevity appeals to younger audiences who prefer quick, easy-to-consume, and creative content (System et al., 2022) Another standout feature is the integration of music and sound Users have access to an extensive library of tracks and can easily add them to their videos, alongside a suite of editing tools and sound effects for more unique and engaging content (Montag, Yang, & Elhai, 2021)
Trends and hashtags are crucial to TikTok's ecosystem Popular trends and hashtags facilitate rapid viral spread, drawing significant attention from the community Users often engage with these trends by creating and sharing relevant videos, using hashtags to increase their visibility (Vázquez, Negreira, & López, 2020) TikTok's AI algorithm further enhances user experience by analyzing viewing behavior and recommending personalized content, thereby boosting the chances of videos going viral (Lee et al., 2022) The platform's interactive features, such as commenting, sharing, and following, foster a dynamic and diverse community where users can connect and share ideas through short videos (Hoang & Nhan, 2022)
Trang 22The platform's ability to quickly adopt and propagate trends is one of its most significant attributes TikTok trends often originate from creative videos or innovative ideas and rapidly become phenomena, engaging millions of users in a short period, and influencing both online communities and broader media culture (Scherr & Wang, 2021) Additionally, TikTok's global community is marked by linguistic and cultural diversity, enabling users worldwide to share unique experiences and ideas (Kaya et al., 2020) TikTok's remarkable growth potential is another notable aspect With a vast global user base, it stands as one of today's leading media platforms The platform offers robust
advertising tools that are deeply integrated into the user experience, making it an effective advertising medium Continuous feature updates help TikTok stay appealing and
responsive to market demands (Zhao, 2020)
Trang 231.2.2 How it works
TikTok, the rapidly growing social media platform, has gained immense popularity due to its diverse features and engaging content Its user-friendly interface and powerful video editing tools make it accessible for anyone to create captivating videos without needing professional skills or equipment (Zulli and Zulli, 2020) TikTok's rise is marked
by its sophisticated personalization algorithm, which analyzes user behavior to suggest tailored content, creating a highly engaging and individualized experience This algorithm has played a crucial role in attracting billions of users globally (Lee et al., 2022)
The platform also boasts interactive features like livestreaming, hashtags, Duet, Reaction, Question & Answer, and Challenges, fostering a dynamic environment that encourages active user participation and creativity The brevity and allure of TikTok content make it particularly appealing to younger audiences, providing quick and unique entertainment experiences (Kwok et al., 2019)
Livestreaming on TikTok allows users to broadcast in real-time, enabling direct interaction with viewers through virtual gifts and comments (Jayadi and Putri, 2023) Hashtags help categorize videos by specific topics or trends, making them easily discoverable and encouraging trend participation Additional features such as Duet, Reaction, Question & Answer, and Challenges offer varied ways for users to engage and produce diverse content (Refasa et al., 2023)
A notable addition to TikTok is the TikTok Shop, which integrates eCommerce directly into the platform This feature presents businesses with a significant opportunity
to reach the platform's vast user base of over 1 billion monthly active users TikTok Shop serves as an innovative marketing channel, driving sales and enhancing brand visibility (Wijaya, 2023) For businesses, leveraging TikTok Shop involves setting up an account, creating appealing product content, hosting sales livestreams, and utilizing TikTok Ads Engaging with customers through comments and messages is also crucial for maintaining strong relationships and fostering positive interactions Many users report high
Trang 24satisfaction with shopping on TikTok, with 96.74% expressing satisfaction (Irmayani, Sinaga, and Masrizal, 2023)
TikTok has evolved beyond an entertainment platform to become a global community characterized by concise, creative content, high interactivity, and intelligent distribution algorithms Its robust advertising and sales environment further solidify its role in modern online life, providing unique entertainment and connection experiences for millions worldwide
Trang 251.3 Consumer behavior of the Customer
1.3.1 Definition
Consumer behavior encompasses how individuals engage with products and services during purchase and usage It includes a range of activities from initial inquiry and purchase decisions to future use and repurchase, influenced by both emotional and rational factors (Schiffman and Wisenblit, 2019) This behavior reflects consumers' unique needs, wants, and values, and is shaped by various influences such as cultural, social, economic, and technological factors For instance, one consumer might prioritize eco-friendly companies, while another may value convenience and affordability Marketers analyze consumer behavior to better understand customer preferences, allowing them to craft effective advertising and sales strategies Additionally, this understanding helps businesses enhance their products and services to align with market demands
1.3.2 Theories of consumer behavior
In the study "The Impact of Digital Marketing on TikTok on the Buying Behavior of Gen Z Consumers," five consumer behavior theories are examined to understand the link between digital marketing and consumer behavior These theories are Consumer Behavior Theory, Rational Action Theory (TRA), Social Action Theory, Content Marketing Theory, and Consumer Psychology Theory Each theory offers a unique perspective on how TikTok's digital marketing influences the purchasing decisions of Gen Z consumers The foundational research for each of these theories will be detailed in the following sections
1.3.2.1 Consumer behavior theory
Consumer behavior theory explores how various factors such as needs,
expectations, values, and socio-environmental influences affect consumer buying behavior, specifically in the context of the TikTok platform This theory is based on three fundamental assumptions about consumer preferences for different types of goods, as outlined by Philip Kotler (2007)
Trang 26First, the complete preference assumption suggests that each consumer has a thorough understanding of their purchase preferences Second, the consistency of preferences assumption posits that consumer preferences remain stable over time Finally, the demand for goods hypothesis assumes that consumers always desire more goods, driven by greed and a wish to access more products
It is also crucial to note that consumer behavior on online platforms can be unstable and may change with each purchase experience Studies by Taylor and Todd (1995) indicate that customers' perceptions of the shopping process can evolve after each purchase These assumptions provide a framework for analyzing consumer behavior, highlighting the rationality of consumer preferences even though they do not explain specific individual preferences
As customers repeatedly engage in online shopping, they gain greater control and make purchasing decisions more proactively and effectively (Liao et al., 2006) Regular online shopping helps customers become more familiar with the process and better appreciate its benefits, potentially leading to the omission of some initial stages of the buying process (Yu et al., 2005) Based on these principles, this study will analyze purchase behavior on the TikTok platform, where consumers frequently interact with products and services through short videos and interactive content
1.3.2.2 Rational Action Theory (TRA)
Rational Action Theory (TRA), initially proposed by Fishbein and Ajzen in 1975,
offers a detailed framework for understanding human behavior by integrating the roles of subjective attitudes and norms in shaping behavioral intentions According to the TRA, behavior results from an individual's intention to perform a specific action, making this intention the most accurate predictor of whether the behavior will occur Behavioral intentions, influenced by attitudes and subjective norms, directly drive behavior (Ajzen & Fishbein, 1980)
Attitudes represent an individual's personal evaluation of performing a particular behavior, shaped by beliefs about the consequences and the perceived value of those consequences Subjective norms, on the other hand, reflect the perceived social pressure
Trang 27from significant others to perform or not perform the behavior, along with the motivation
to comply with these opinions (Fishbein, 1980)
The formation of behavioral intentions depends on the relative importance of attitudes and norms When attitudes have a stronger influence, behavior is said to be attitudinally controlled Conversely, when subjective norms are more influential, behavior
is normatively controlled (Ajzen & Fishbein, 1980) However, the distinction between subjective attitudes and norms has been debated Critics argue that the beliefs underpinning these constructs may not be distinctly different but rather variations of the same underlying belief system (Liska, 1984; Miniard & Cohen, 1981) This challenge raises questions about the falsifiability of the TRA
Trofimov and Fishbein (1994a) conducted experiments manipulating attitudes toward seat belt use under safe and risky driving conditions to examine their distinct effects on behavioral intentions They found that seat belt use under safe conditions is largely attitudinally controlled, while under risky conditions, it is normatively controlled This highlights the ongoing debate about whether attitudes comprise both emotional and cognitive components Although TRA originally conceptualized attitudes primarily as cognitive assessments, factor analysis often identifies distinct cognitive and emotional aspects (Breckler, 1984; Triandis, 1980) This has led to theoretical refinements and the inclusion of emotional components in more recent iterations of the theory (Ajzen & Fishbein, 2005)
TRA also posits that behavior depends not only on intention but also on beliefs about one's ability to control the behavior These controlling beliefs are based on personal ability and determination (internal factors) and available resources and support (external factors), which can enhance both the intention and the capability to perform the behavior
1.3.2.3 Theory of planned behavior (TPB)
According to Ajzen and Fishbein (1977), the theory of planned behavior (TPB) serves as a framework for understanding general attitudes toward organizations, institutions, minorities, and individuals However, it often falls short in predicting specific behaviors aligned with these attitudes Similarly, common personality traits, such as locus
Trang 28of control, show weak empirical relationships with behavior in specific contexts (Ajzen & Fishbein, 1977; Rotter, 1966) Epstein (1983) suggests that synthesizing specific behaviors across various occasions and situations can eliminate other influences, leading
to a more rational measure of fundamental behavioral tendencies Although this synthesis enhances predictive value, it does not explain behavioral variations across different situations or predict specific behaviors in given contexts (Ajzen, 1988)
The TPB extends the theory of reasoned action (TRA) to predict behaviors in situations where individuals have limited willpower control (Ajzen, 1988) It posits that behavior is influenced by intention and perceived behavioral control Intention reflects motivational factors, while perceived behavioral control indicates the ease or difficulty of performing the behavior (Ajzen, 1991) Thus, intention and perceived behavioral control are effective predictors of behavior across various contexts Numerous studies have demonstrated the predictive value of TPB, showing that general attitudes and personality traits are better at predicting aggregate behavior than specific actions (Ajzen, 1988) The combination of intention and perceived behavioral control significantly enhances the prediction of different behaviors (Ajzen, 1988) Research also indicates that attitudes, subjective norms, and perceived behavioral control significantly predict the intention to engage in various activities (Ajzen & Fishbein, 1980; Ajzen, 1991) Perceived behavioral control consistently improves the prediction of intentions, with attitudes playing a crucial role in most cases (Ajzen & Fishbein, 1980)
1.3.2.4 Social Action Theory
Social Action Theory not only examines individual behavior but also explores the
interaction between social factors and individual behavior in the purchasing making process (Smith et al., 2019) Classical philosophy posits that human beings are shaped by their social environment and relationships Max Weber, a prominent sociologist, introduced the concept of "meaning" to elucidate the unique characteristics of human actions According to Weber, understanding social action requires analyzing the subjective meanings that individuals attach to their actions (Smith et al., 2019) This
Trang 29decision-perspective suggests that purchasing decisions on e-commerce platforms are influenced
by the interplay of personal choices and social environment, including the community's values and norms
Similarly, Social Action Theory highlights the importance of the social environment and community groups in the purchasing decision-making process TikTok, as a popular social networking platform, creates a dynamic interactive environment where users can share and receive content Community growth, celebrity influence, and peer reviews significantly impact purchasing decisions on TikTok (Ha & Thoa, 2016) Celebrities on TikTok, in particular, exert a strong influence on their followers' buying preferences Fans often trust and follow the shopping recommendations of celebrities they admire (Hoai Nam, 2023) Additionally, opinions and reviews from other users on TikTok provide valuable insights, helping consumers form a comprehensive understanding of the products
or services they are interested in, thereby influencing their purchasing decisions (Jones et al., 2021)
1.3.2.5 Content Marketing Theory
Content marketing theory Content marketing theory revolves around creating and
distributing valuable, relevant, and engaging content to connect with the target audience, driving beneficial actions for customers (Content Marketing Institute, 2012) This approach is essential in digital marketing strategies, aiming to attract potential customers, retain existing ones, and convert leads by delivering high-quality content TikTok, with its explosive popularity, has become a pivotal platform for content marketing Its emphasis
on short, creative videos makes it an ideal environment for applying content marketing principles Smith's research (2023) highlights that this theory prioritizes engaging and relevant content to capture consumers' attention and foster engagement, thereby increasing the likelihood of purchases
Mandloys Digital Agency (2013) emphasizes that content marketing necessitates producing relevant, engaging, entertaining, and valuable content to maintain or change customer behavior This strategy is crucial for retaining customers, attracting new ones,
Trang 30and building a strong brand Content marketing not only strategically reaches customers but also provides valuable information about products or services, facilitating easier purchasing decisions Rancati Elisa and Niccolo Gorderi (2014) assert that content marketing serves as a tool for sharing information and creating high value and profitability for primary media assets, helping attract, engage, acquire, and retain customers This process builds trust and positive interactions between consumers and brands, fostering deep connections and brand loyalty
According to Solomon (2014), consumer purchase intent is a significant factor in the decision-making process and can predict future consumer behavior Purchase intent is shaped through research, evaluation, and the influence of information provided by content marketing For businesses marketing on TikTok, creating relevant and engaging content can significantly boost purchase intent, drive conversions, and enhance brand loyalty
1.3.2.6 Theory of consumer psychology
Consumer psychology theory explores how emotions, moods, and perceptions
influence consumer behavior On TikTok, videos can trigger emotions and stimulate the desire to purchase Understanding consumer psychology is crucial for shaping purchasing behavior According to Philip Kotler et al (2012), psychological factors such as motivation, perception, receptivity, beliefs, and attitudes significantly affect shopping behavior Motivations, ranging from basic needs like hunger and thirst to complex desires like possessiveness, drive individual purchasing decisions Often, these decisions are influenced by subconscious motivations that individuals may not even be aware of (Kotler
et al., 2012)
Sigmund Freud (1953) highlighted that many psychological factors behind purchasing decisions are hidden from the consumer’s conscious awareness He argued that desires persist in various forms such as dreams, speech, outbursts, obsessions, and even mental illness Freud suggested that subconscious motives heavily influence purchasing decisions, making it essential for marketers to understand these hidden motivations By doing so, they can create products that resonate with these underlying needs, thereby stimulating and increasing sales
Trang 31Perception, learning, beliefs, and attitudes also play critical roles in buying behavior Consumers’ perceptions of products vary due to factors like selective attention, misrepresentation, and memory (Kotler et al., 2012) Purchasing is not merely a decision but a learning process where consumers adapt based on their experiences
Additionally, resource exchange fosters psychological bonds and motivates individuals to maintain relationships (Blau, 1964) Engaging in reciprocal relationships builds trust, respect, and commitment (Molm, 1990; Molm et al., 2000), enhancing unity and harmony (Molm et al., 2007) These theories can be applied to study and understand buying behavior on TikTok, aiding marketers in crafting effective strategies to engage consumers on the platform
1.4 The relationship between Digital Marketing and Buying Behavior
Social media marketing, a crucial component of digital marketing, adeptly adapts to the diverse and ever-changing landscape of consumer behavior (Phuatangsila, 2021) The impact of this adaptability is starkly evident in consumer trends during the Covid-19 pandemic Despite the widespread negative repercussions on businesses, the exponential increase in online activity has propelled social media into a paramount position for businesses to gather invaluable consumer insights and effectively market their products (Haynes, 2021) Platforms such as Facebook, Instagram, LinkedIn, Snapchat, TikTok, and Twitter have become integral parts of consumers' daily routines, offering marketers unparalleled opportunities for swift and cost-effective outreach (Phuatangsila, 2021) Many companies have seized upon this avenue to engage with customers and promote their offerings (Chaffey & Ellish-Chadwick, 2022)
Today's consumers gravitate towards creative, captivating content that swiftly caters
to their needs (Phuatangsila, 2021) TikTok, in particular, provides a fertile ground for businesses to connect with their target audience through concise, engaging content, ranging from promotional videos to collaborations with social influencers The purchasing behavior of Generation Z, heavily influenced by peer recommendations and social media, underscores the importance of authenticity, transparency, and convenience
in the shopping experience (Kalupski, 2021) Compared to previous generations, Gen Z
Trang 32exhibits a remarkable ability to assimilate information and make informed purchasing decisions (Lauring and Steenburg, 2019) Studies by Waheed, Yang, and Rafique (2017) and Constantinides (2004) highlight the evolving nature of consumer behavior, particularly the shift towards online shopping and the comprehensive decision-making process involved
Research from the Global Web Index (2018) reveals that a significant portion of users now turn to social media for product research, indicating a transition from social interaction to product discovery (Barysevich, 2020) Social media influencers, with their substantial followings, wield considerable influence over consumer decision-making, particularly on platforms like Instagram and TikTok, where they endorse brands and share their perspectives with followers (FitzGerald, 2019) Factors such as influencer reviews, social connections, brand presence, and social media advertising play pivotal roles in shaping consumer choices
According to Liu and Wang (2023), the focus was on investigating how short-video content marketing impacts consumer purchase intent They distributed 161 questionnaires, out of which 150 were deemed valid Using SPSS, they analyzed the collected data and found that heightened product engagement increased the likelihood of behavior transformation among consumers However, excessive exposure to similar content in videos could lead consumers to perceive the brand as manipulative, resulting in
a lack of appreciation for such content Therefore, when product engagement is high, consumers tend to pay more attention to the information provided in the video rather than its length, thereby increasing perceived value Moreover, the entertainment value of the video positively influences user sentiment, leading to increased buying behavior
Furthermore, Lee, Ilyoo, and Hong (2016) conducted an experimental study to explore how various theories, including rational action theory, social influence theory, and persuasion theory, influence positive user behaviors towards social media advertising They utilized focus group interviews and online questionnaires distributed to 420 university students Using a Likert scale, they measured attitudes towards empathetic expression in advertising Their findings indicated that informativeness and creativity
Trang 33significantly influenced attitudes towards advertising Quality information and creative content in social media advertising attract consumer attention and foster positive assessments of the ads, ultimately impacting purchasing decisions positively
According to Wibowo et al (2020), involving 300 respondents, the aim was to determine the influence of advertising value and brand awareness on purchasing decisions through social networks They conducted multiple linear regression analyses and path analysis tests using SPSS software Their results revealed that advertising value and brand awareness significantly affected the user experience, with the indirect impact through flow experiences being more pronounced than the direct impact However, the perception
of effectiveness did not directly influence purchasing decisions
Karunarathne and Thilini (2022) explored the factors of Information, Entertainment, and Discomfort in social media advertising and their impact on the value of advertising and customer purchase intent Despite aiming for 400 responses, they analyzed 338 valid responses from social media users over 18 years old Their findings highlighted that informative and entertaining content positively influenced advertising value, while discomfort had a negative impact Additionally, both advertising value and brand image affected consumers' willingness to buy They suggested that effective social media advertising strategies should focus on creating informative and entertaining content to enhance advertising value, potentially revolutionizing traditional marketing campaigns into digital contexts due to the increasing influence and benefits of social media advertising
Lascăr (2017) conducted a study involving 205 participants to investigate the relationship between advertising value and consumer attitudes towards ads on mobile social networking sites and media sharing platforms The study employed hypothesis testing as its data analysis method, utilizing SPSS for statistical analysis Results indicated that the effectiveness of ads on social networks and sharing apps hinges on their ability to captivate and inform users Crafting engaging and informative content emerged
as pivotal in shaping consumer perceptions of advertising Notably, the study underscored the significance of entertaining content and interactive prompts, particularly for younger
Trang 34demographics While the complexity of ads and their reliability had minimal impact on their perceived value, reinforcing advertising messages reliably was deemed crucial for enhancing computational efficiency
Trang 35Table 1: Statistical table of factors affecting consumers' online shopping behavior
sila, 2021
The Influences
of TikTok to Digital Marketing and The
Effectiveness of TikTok on Generation Z’s Buying
Behavior
- Quantitative research is applied to analyze the role of social networks, especially TikTok, influencing
purchasing behavior
of generation Z consumers
- Data obtained from questionnaires of 163 generation Z
adolescents were used for analysis
- Research shows that Gen Z consumers prefer short and creative videos Furthermore, the challenges and trends on TikTok can stimulate
consumer awareness of brand advertising on TikTok
- Social media influencers have no impact on generation Z's purchasing decisions
- Positive perceptions of brands, products and advertising influence purchasing decisions
- Use online questionnaires
- The research subjects are only generation Z with ages 21-25
- The research sample was small, only 163 people and many respondents were female
- Do not specifically research a certain market such as beauty, sports, etc
2 Pham Van Effects of - The study's - The advertising value of - The sample and research
Trang 36Tuan et al.,
2023
Advertising Value and Attitude on the Purchase Intention Through Short-Form Video Advertising on Social Media:
Empirical Research on Gen Z in Vietnam
hypotheses were tested by a survey of 1,257 people using an online questionnaire
on Google Form
- Use a Likert scale with 5 points from completely disagree (1) to completely agree (5)
- Using the method of analyzing
respondents' demographics and PLS-SEM
short video ads on social networks for Gen Z in Vietnam is positively affected
by three factors:
Informativeness, Incentives and Credibility
- Vietnamese Gen Z users' attitudes towards short-form ads on social networks are influenced by three factors:
Social Interactivity (+), Entertainment (+) and Irritation (-)
scope are small, only in Vietnam and the subjects are only gen Z
- Factors influencing Gen Z's purchasing decisions still have many
shortcomings
2021
The Impact of Digital
Marketing Channels on
- Qualitative research methods
- “Snowball”
sampling method
- This study revealed that social media marketing has a positive influence on the four stages of consumer
- Focus mainly on 4 digital marketing channels: email, phone, tracking and social
Trang 37Consumer Purchasing Behavior during COVID-19 Pandemic in Myanmar
- Likert scale
- Research using questionnaires
purchasing decisions: "Need Recognition, Information Search, Purchase Decision, and Post-Purchase Behavior"
of the consumer's purchasing decision-making process
- Social media marketing found no impact on the Evaluation stage
networks
- The time of the research was during the pandemic,
so consumers' buying behavior had changed
- The scope of research is limited in Myanmar
4 Lee and
Hong,
2016
Predicting positive user responses to social media advertising: The roles of
emotional appeal, informativeness, and creativity
- An online survey on Google Form
conducted to 420 university students at
a large university in Korea
- All items are measured on a 5-point Likert scale
- Confirmatory factor
Information and creativity in advertising are key drivers of positive behavioral responses
to social networking sites advertising, and users' intention This positively related to purchase intention
This study does not include the “behavioral” construct in the research model because it focuses
on understanding the relationship between intention and its antecedents
Trang 38analysis using AMOS 21.0 to test the
Implication on Purchase Intention: Social Media
Advertising
- This study is entirely based on primary data collected through surveys A self-administered online questionnaire was used as a data collection tool
- 5-point Likert scale
- Research results show that while the irritation of ads has
a negative impact on advertising value, entertainment and informativeness has a positive impact
- The presented model confirms the strong significance of advertising value and brand image on consumers' willingness to purchase products
- The scope of this study was limited due to indirect contact with participants
- Research mainly focuses on advertising value and a few factors
- The sampling method applied does not represent the actual perception of customers
6 Araujo et
al (2022)
Influence of TikTok Video Advertisements
- The researcher used
an online survey questionnaire in
- The emotion, entertainment and information of
advertising videos on Tik Tok
- Focusing on too many types of business on Tik
Trang 39on Generation Z’s Behavior and Purchase Intention
which purposive sampling method was used to collect data from 386 male and female TikTok users
- Data analysis is performed using quantitative methods, descriptive
correlation design and PLS-SEM statistical tools
influence the behavior and purchase intention of Generation Z consumers
- It was found that only the emotional aspect has a positive influence on the purchase intention of those who participated in the study
- Greater participation and interaction between users positively influences their purchase intention
Tok
- Only implemented on generation Z and residing
in Metro Manila
- The variables in the study still have many shortcomings
7 Lascăr
(2017)
Users’
perceived advertising value across mobile social media – a quantitative
- Questionnaire survey with 205 respondents
- Use SPSS analysis tool
- Research results show that advertising on social
networks and messaging applications needs to focus on providing valuable
information and entertaining content to attract users'
- Number of items used in measuring the constructs
- The analytical model has many limitations
Trang 40study attention
- The information and entertainment of advertising both have a positive impact
on consumer awareness and attitudes
- In particular, discomfort has
a weak impact on advertising value in both social
networking platforms and messaging applications
- Credibility was not affected advertising value
et al
(2020)
Measuring the Effect of Advertising Value and Brand Awareness on
- Purposive sampling with 300 respondents
- Multiple linear regression analysis or
by considering T-test
- Use SPSS software
- Advertising value and brand awareness are significantly linked to user experience
- However, the perception of effectiveness did not have a significant influence on the
- Only research on one type of social network