Online Shopping Theory
Online Shopping Theory
Online Shopping Theory
Hoang Cuu Long1*, Nguyen Hoang Do Uyen2, Duong Tran Lan Phuong3,
Nguyen Ha Phuong4, Nguyen Hoai Truc Ngan5 and Le Thi Thanh Tam6
1*,2,3,4,5,6
University of Economics Ho Chi Minh City - UEH, Vietnam
1*
hoangcuulong@ueh.edu.vn
Abstract
Today, the social networking site with the most users in Vietnam is TikTok. This study was
conducted to determine the factors affecting attitudes towards TikTok ads and their impact on
young people’s online purchasing behavior in Ho Chi Minh City during the Covid-19
pandemic. Thus, it provides suggestions and solutions for firms to adapt to customers’
changing needs. This study used both qualitative and quantitative methodologies. The
qualitative research focused on young people's attitudes on TikTok advertising and online
shopping behavior. The Technology Acceptance Model and Theory of Planned Behavior
provide the basis for the research framework. In addition, the quantitative methodology was
conducted by Statistical Package for the Social Sciences and Analysis of Moment Structures
software to identify the relationship between independent variables and dependent variables
as well as examine differences in online shopping behavior according to demographic
variables. The study findings show that the three factors that informativeness, interaction,
and entertainment affect the attitude towards the advertisement of the TikTok variable but
reliability, irritation, and advertising duration are not. The results of this study also show a
positive relationship between attitudes towards advertisements and the online purchasing
behavior of TikTok users. Based on these results, firms that promote online shopping services
through TikTok ads will have a greater understanding of how advertisements influence young
Vietnamese consumers' online buying behavior. Therefore, it will help them to create and
deliver services more effectively than functional services to meet customers' needs.
1. Introduction
According to the mobile application report by Appota (2021) [1], TikTok has become a
global phenomenon and the fastest growing social media platform in Vietnam (Tomorrow
Marketer, 2021 [2]) with its 16 million downloads. Intending to become more competitive in
Article history:
Received (December 1, 2021), Review Result (January 29, 2022), Accepted (March 10, 2022)
* The study was approved by the Ethics Committee of the University of Economics Ho Chi Minh City - UEH,
Vietnam.
* The funders had no role in study design, data collection, analysis, decision to publish, or preparation of the
manuscript.
* All authors agree to publish without any complaints.
Vietnam's online ad market, where Facebook and Google dominate, TikTok recognizes that
localization is critical to persuade Vietnamese consumers, particularly millennia’s and Gen Z
users – who prefer short-form and influencer-driven content to conventional advertising. It
could be said that TikTok is considered an effective advertising channel with a large customer
reach and retaining long-term customers. This is an opportunity for advertisers and businesses
to promote their products. Nevertheless, there are some advertisements with inappropriate
content that frequently appear on TikTok, which may make users ignore or feel
uncomfortable or even annoyed.
Although consumers' online buying behaviour has been studied in several previous studies,
the majority of them were, in general, the attitudes towards social media advertisements
conducted before the spread of the Covid-19 pandemic. For example, customers' online
shopping behavior is influenced not only by demographic characteristics such as age, gender,
and occupation ( Bhat et al. [3]; Baubonien et al. [4]) but also by perceived benefit factors
(Makhitha et al. [5]; Keyurkumar et al. [6]; B.N. Sethna et al. [7] ). It is still unclear how this
pandemic has affected consumer behavior when it comes to online buying. This study aims to
identify the factors influencing young people’s attitudes towards TikTok ads and their impact
on their online purchasing behavior in Ho Chi Minh City during the Covid-19 pandemic.
2. Literature review
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The consumer buying decision process is relatively similar between purchasing directly in-
store and online; however, there are some differences due to the influences of the shopping
environment and marketing communications (Kotler and Armstrong, [23]). Online shopping
has many benefits for customers. It is not only fast and convenient but also, in many cases,
cheaper than local stores (Moran, [24]). Moreover, the variety of products on the Internet is
often much larger than that of offline shopping. Nguyen et al., [25] found that in Vietnam,
consumer demand has shifted toward online shopping. Moran [24] argued that consumers'
approaches to shopping for products and services changed when they used online commerce
because online firms have more control over the consumer shopping experience, including
unprecedented access to buyer data and demographics.
Advertising plays an important and legitimate role in providing information (Rotzoll et al.
[39]). The goal of advertising is to inform customers about new products, new features of
existing products, or changes in product prices (Kotler and Keller, [21]). According to Waldt
et al. [40], information is defined as the ability of advertising to provide consumers with
alternative product options such that they are most satisfied with their purchase decisions.
Schlosser et al. [41] asserted that consumers' attitudes toward Internet advertising are
influenced by the information and usefulness of advertising, thereby influencing their
decision-making about buying behaviour. Therefore, the information provided to consumers
must be accurate, appropriate, timely, and useful because they are concerned about the
information related to them (Chowdhury et al. [42]).
Hypothesis 1: Informativeness has a positive impact on young people towards attitudes
toward TikTok advertisements.
Consumers prefer to see ads when they contain many funny and interesting elements, and
as much excitement as possible is appreciated (Alwitt et al. [43]). According to Ducoffe [44],
entertainment is the ability to meet customers’ needs to relieve mental stress, diversion,
aesthetics, and emotional enjoyment. Tsang and Ashmawy [45] showed that entertainment in
advertising has a positive impact on perceived value and consumer attitude. A high level of
interest and attraction in the process of interacting with the media positively affects mood and
perception (Than et al. 2013) [46].
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Vol.10, No.1 (2022), pp.145-162
trend when studying online buying behaviour based on the attitude towards TikTok ads and
expect the positive attitude of online buyers to increase online shopping behaviour.
Determining the buyer's attitude towards the product is very important because it has a strong
influence on their behaviour, especially in competitive conditions.
Hypothesis H7: Attitude towards advertisements has a positive impact on young people’s
online purchase behaviour in Ho Chi Minh City.
4. Research design
Authors conducted in-deep to find out what factors affect interviews on the attitudes
towards TikTok ads and online shopping behavior of young people in Ho Chi Minh City and
also to measure the relevance of the observed variables in the survey. Later, we also use the
survey as a tool to test the insights on a large scale. With this method, we can survey a large
number of respondents to increase the objectivity and reliability of the research paper.
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Vol.10, No.1 (2022), pp.145-162
respondents. Besides, the questionnaire is used according to the Likert scale with 5 levels, so
the levels can be understood differently depending on the question and the respondents. To
overcome the difficulties in the above sampling process, the research team asked the
questions in the survey concisely and understandably to suit the survey subjects. At the same
time, we also test with a small group before launching the official survey.
5. Results
(1) Online shopping frequency during Covid-19 pandemic
People are gradually becoming accustomed to staying at home and working from home as
a result of the Covid-19 epidemic's effects, and online purchasing is becoming more
convenient. According to the survey, people often purchase 2-5 times/month with the highest
rate of 52.9%, followed by more than 5 times/month with a rate of 26.6%, once a month at the
rate of 16%, and finally every day at the rate of 4.6%.
23.7%, influencer collaborations are the second most popular type of advertising. The
presence of celebrities and influencers enhances the credibility of products and
advertisements. Branded Effects, Branded Takeover ads, and Top View ads are three types of
ads with roughly the same ratio as well as three types of ads with relative user reach, but
businesses must have a high budget. Although not as popular with users as other types of
advertising, in-feed ads are the right type for individuals and small businesses with a limited
advertising budget.
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Vol.10, No.1 (2022), pp.145-162
Informativeness has a positive impact on the attitude of young Sig=0.000 < 0.05 & β=0.367
H1
people towards advertisements on TikTok. Accept the hypothesis
Entertainment has a positive impact on the attitude of young Sig=0.00 < 0.05 & β=0.262
H2
people towards TikTok ads. Accept the hypothesis
Reliability has a positive effect on attitudes towards advertising Sig=0.577 > 0.05
H3
via TikTok. Reject the hypothesis
Irritation has a negative effect on the attitude toward advertising Sig=0.344 > 0.05
H5
via TikTok. Reject the hypothesis
Advertising duration has a positive impact on the attitude towards Sig=0.336 < 0.05
H6
TikTok ads. Reject the hypothesis
Difference 2.2 4
Source: by authors, 2021
(9) Multigroup analysis of age was divided into two groups: 16 – 22 years and 23 – 30
years.
P-value = 0.052 (> 0.05), there is no difference in chi-square between the unconstrained
model and the constrained model, choosing the constrained model.
According to the findings, age did not affect the relationships in the research model. In
other words, there is no distinction between 16 – 22 years old and 23 – 30 years old
customers.
Difference 9.4 4
Source: by authors, 2021
Difference 13.3 8
Source: by authors, 2021
The research's key outcomes indicate that attitudes towards advertisements on Tiktok are
influenced by three variables of information, Interaction, and entertainment with the number
of 0.367, 0.295, and 0.262, respectively. The two variables that are attitudes towards
advertisements and online shopping behavior are positively related with an impact coefficient
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of 0.779. At the same time, based on the Multi-group test, we have not found a difference in
demographics affecting the online shopping behavior of Ho Chi Minh City people in the
Covid-19 pandemic.
6.2.1. Informativeness
(1) Businesses should update information about products/services on a regular and
continuous basis to attract consumers' attention and interest. For TikTok ads, in addition to
humour and entertainment, administrators should focus on presenting full product information
concisely to make it easy for customers to obtain information and memorize.
(2) Focusing on necessary and useful information in order not to provide customers spam.
(3) Providing customer information about promotions, discounts, etc. in various ways in
the current period.
(4) Determining target customers to find a more suitable strategy to convey information
and types of advertising methods most effectively to customers.
(5) The mathematical tools of TikTok and other social media sites are used to reach
customers who often search for specific products or brands.
6.2.2. Interaction
(1) Making use of basic interactive functions on TikTok, such as comments, reactions, and
even Livestream, to convey and reply to customers. Effective interaction requires enterprises
to have consultant staff to work productively to meet customer requirements and solve their
problems on time.
(2) Businesses need to update their status and information on products regularly, develop a
sustainable plan to make videos, and increase their views and interactions for TikTok’s
account.
(3) TikTok limits the number of words commented under each video (under 50 words), so
feedback and reviews of customers cannot have details and other customers just have general
information when deciding to buy products. Thus, TikTok could consider improving its
function to create opportunities for businesses and customers.
(4) Increasing consumer engagement using TikTok features such as comments, reactions,
and Livestream to reach out to customers more thoroughly. In this way, businesses can
answer customers' questions quickly and note both good and bad feedback to improve their
products as well as help customers receive notifications and return to see the latest updated
product information.
(5) They always respond to questions and requests from customers and have a dedicated
customer support team.
(6) Regularly update status and product information; develop TikTok content, follow
trends to maintain interaction, and plan to increase views and interactions on the TikTok
channel.
6.2.3. Entertainment
(1) Video images are one of the factors that help increase the effective attraction to video
ads. Therefore, images published in advertisements must ensure the characteristics of brands;
it is necessary to comply with the rules of brand identity, content orientation, dominant
colors, and image regulations to avoid damaging the brand’s reputation. Eye-catching and
sympathetic images make consumers more curious and stimulate them to learn more about
products. Videos with live sounds are also a way to attract customers' attention in the first few
seconds and make them view entire advertisements.
(2) In creating content for videos published on TikTok, besides providing information for
customers, brands need to skillfully integrate funny and entertaining stories into videos,
which should limit controversial and annoying content, easily leading to scandals that
adversely affect brand reputation.
(3) Depending on the target audience groups, brands should take advantage of some
popular types of advertising on TikTok platforms, such as Branded Hashtag Challenge ads,
Influencer collaborations, Top View ads, etc., and combine various types of ads to attract
young customers.
(4) Firms can collaborate with TikTok to create trends that appeal to the young to join
them and make them viral on this platform. These trends help businesses promote their brands
and reach target customers in a shorter period.
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Vol.10, No.1 (2022), pp.145-162
shown that four components affect the attitude towards TikTok ads from strongest to lowest
in the following order: informativeness has the strongest impact (β = 0.367), interaction (β =
0.295), and entertainment (β = 0.262). In addition, attitude towards TikTok has a strong
impact on online shopping behaviour (β =0.779).
Although this study fulfilled the research objectives, there are still some limitations. First,
it investigates the factors of advertising on the online shopping behaviour of customers via
TikTok and does not provide a broad view of the advertising field. Consequently, in the
opinion of the field administrator, this research contributes little value. Second, the study was
only conducted with young people living in Ho Chi Minh City who had previously seen the
TikTok advertisement; thus, could not completely apply to the whole population of TikTok
users. The team of authors conducted the convenience survey, not the stratification
probability; therefore, the research results are not highly representative. Therefore, the
probability sample method should be used in future studies to improve its representativeness.
Third, this study only explains 60.7% of the variation in online shopping behaviour through
TikTok advertising by the independent variable attitude in the models.
Further studies with larger sample sizes are required to gain a better understanding of
advertising. Researchers should examine other factors that have not been discovered in this
study or investigate the relationship between demographics and factors. We propose adding
other variables to test online purchasing behaviour. Differentiated features, such as economic
benefits, are added for application to online purchasing behaviour. Therefore, future research
may be replicated by applying the same concept but in different contexts to analyze online
purchasing behaviour. Collecting information through qualitative research is also very useful
for comprehending an individual's rationale regarding the influencing and non-influencing
factors. Therefore, further research is needed to identify new factors that affect online
purchasing behaviour.
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