MINISTRY OF EDUCATION AND TRAINING
THE STATE BANK OF VIET NAM
HO CHI MINH UNIVERSITY OF BANKING
PHAM THAI HOANG NHAN
FACTORS AFFECTING ONLINE SHOPPING INTENTION IN
TIKTOK SHOP OF STUDENTS AT HO CHI MINH
UNIVERSITY OF BANKING
GRADUATE THESIS
Major: Business Administration
Code: 7340101
SUPERVISOR
Dr. TRAN NGOC THIEN THY
HO CHI MINH CITY, 2022
MINISTRY OF EDUCATION AND TRAINING
THE STATE BANK OF VIET NAM
HO CHI MINH UNIVERSITY OF BANKING
Name: PHAM THAI HOANG NHAN
ID Student: 030334180179
Class: HQ6-GE03
FACTORS AFFECTING ONLINE SHOPPING INTENTION IN
TIKTOK SHOP OF STUDENTS AT HO CHI MINH
UNIVERSITY OF BANKING
GRADUATE THESIS
Major: Business Administration
Code: 7340101
SUPERVISOR
Dr. TRAN NGOC THIEN THY
HO CHI MINH CITY, 2022
i
ABSTRACT
This thesis aims to explore the factors affecting online shopping intention of
students at Ho Chi Minh University of Banking in TikTok Shop. This study is based
on a literature review on shopping intention and previous studies. This study
conducts quantitative research methods. In the quantitative research, the author
collects survey questionnaire data from 300 students at Ho Chi Minh University of
Banking in TikTok Shop who know about TikTok Shop.
Based on the research results, the author shows that five factors affect online
shopping intention of students: Perceived Usefulness, Perceived Ease of Use, Price
Expectation, Perceived Risk, E-WOM. Meanwhile, the Perceived Usefulness factor
has the most decisive affect on the online shopping intention, the E-WOM factor
has the weakest impact. From the study results, several governance implications
have been proposed to improve and enhance efficiently and effectively in the
development of the e-commerce TikTok Shop in the future.
Keywords: TikTok Shop, affecting factors, online shopping intention,
students
ii
AUTHOR’S DECLARATION
I hereby declare that the thesis ―Factors affecting online shopping intention in
TikTok Shop of students at Ho Chi Minh University of Banking‖ is the result of my
research conducted over 10 weeks. Except for references from previous research
works as stated in the thesis, the survey data and the results of the thesis are
completely honest and have not yet been published in any research work before.
Ho Chi Minh, November 2022
Pham Thai Hoang Nhan
iii
ACKNOWLEDGEMENT
I would like to express my gratitude from the bottom of my heart to my
supervisor, Dr. Tran Ngoc Thien Thy. Thanks to her dedicated guidance and
wholehearted sharing, I was able to successfully complete my bachelor thesis.
During the process of writing this thesis, I lost a lot of mistakes but she
enthusiastically told and suggested the best solution so that I could complete this
thesis well.
Furthermore, I am grateful to all the professors and lecturers from the Ho Chi
Minh University of Banking who educate me with vital comprehensive knowledge
and essential skills throughout my syllabus at university.
Last but not least, I also want to thank the examiners for your pivotal time and
consideration to review my graduation thesis.
iv
TABLE OF CONTENT
ABSTRACT ............................................................................................................... i
AUTHOR’S DECLARATION ................................................................................ ii
ACKNOWLEDGEMENT ...................................................................................... iii
TABLE OF CONTENT .......................................................................................... iv
LIST OF ABBREVIATIONS............................................................................... viii
TABLE LIST ........................................................................................................... ix
FIGURE LIST ...........................................................................................................x
CHAPTER 1: OVERVIEW OF THE RESEARCH ..............................................1
1.1. The necessity of the research .............................................................................1
1.2. Research Objectives ...........................................................................................3
1.3. Research question...............................................................................................3
1.4. Research subject and scope ...............................................................................4
1.4.1. Research subject ..................................................................................4
1.4.2. Research scope .....................................................................................4
1.5. Research Methodology.......................................................................................4
1.6. Research Significance ........................................................................................4
1.6.1. Academic Significance .........................................................................4
1.6.2. Practical Significance ..........................................................................5
1.7. Research structure .............................................................................................5
SUMMERY CHAPTER 1: .......................................................................................5
CHAPTER 2: LITERATURE REVIEW AND REVIEW RESEARCH
MODELS ...................................................................................................................7
2.1. Definition .............................................................................................................7
2.1.1. Intention ...............................................................................................7
v
2.1.2. Shopping intention ...............................................................................7
2.1.3. Online Shopping Intention ...................................................................7
2.1.4. TikTok Shop..........................................................................................8
2.2. Relevant theoretical models ..............................................................................9
2.3. Literature Review.............................................................................................12
2.4. Hypothesis .........................................................................................................23
2.4.1. Perceived usefulness (PU) .................................................................23
2.4.2. Perceived ease of use (PEU)..............................................................24
2.4.3. Price Expectation (PRICE) ................................................................25
2.4.4. Perceived risks (PR)...........................................................................25
2.4.5. Electronic word of mouth (E-WOM)..................................................26
SUMMARY CHAPTER 2 ......................................................................................28
CHAPTER 3: RESEARCH METHODOLOGY .................................................29
3.1. Process of research ...........................................................................................29
3.2. Research steps...................................................................................................29
3.3. Research Methods ............................................................................................32
3.4. Research design ................................................................................................33
3.4.1. Sample size .........................................................................................33
3.4.2. Sampling method ................................................................................34
3.4.3. Building the scale ...............................................................................35
3.4.4. Questionnaire design .........................................................................37
3.4.5. Data collection ...................................................................................37
3.5. Data processing method ...................................................................................37
3.5.1. Descriptive statistic ............................................................................37
3.5.2. Cronbach’s Alpha analyzing..............................................................38
3.5.3. EFA Analyzing ...................................................................................38
3.5.4. Regression analysis ............................................................................39
vi
SUMMARY CHAPTER 3 ......................................................................................40
CHAPTER 4: THE RESEARCH RESULT .........................................................41
4.1. Sample Description ..........................................................................................41
4.2. Scale Reliability Testing ..................................................................................43
4.3. Exploratory Factor Analysis ...........................................................................45
4.3.1. Factor analysis for the independent variable ....................................45
4.3.2. Factor analysis for the dependent variable .......................................49
4.4. Correlation Analysis ........................................................................................51
4.5. Regression Analysis ..........................................................................................51
4.5.1. Testing the Fit of a Regression Model ...............................................51
4.5.2. Regression analysis results ................................................................52
4.5.3. Testing Multicollinearity ....................................................................54
4.5.4. Testing the Normality of Residuals ....................................................55
4.5.5. Testing the constant residual variance ..............................................56
4.6. Result discussion...............................................................................................57
SUMMARY CHAPTER 4 ......................................................................................59
CHAPTER 5: CONCLUSION ...............................................................................60
5.1. Conclusion .........................................................................................................60
5.2. Theoretical contributions ................................................................................60
5.3. Practical Implication and Suggestion .............................................................61
5.3.1. Perceived Usefulness .........................................................................62
5.3.2. Perceived Ease of Use .......................................................................62
5.3.3. Price Expectation ...............................................................................63
5.3.4. Perceived Risk ....................................................................................63
5.3.5. E-WOM ..............................................................................................64
5.4. Limitations and Future Research ...................................................................64
vii
SUMMARY CHAPTER 5 ......................................................................................66
REFERENCE ..........................................................................................................67
APPENDIX ..............................................................................................................72
APPENDIX 1: QUESTIONNAIRE DESIGN ......................................................72
APPENDIX 2: DATA ANALYSIS RESULT .......................................................76
viii
LIST OF ABBREVIATIONS
Acronym
Definition
PU
Perceived Usefulness
PEU
Perceived Ease of Use
PE
Price Expectation
PR
Perceived Risk
E-WOM
Electronic Word of Mouth
EFA
Exploratory factor analysis
KMO
Kaiser-Meyer-Olkin test
Sig.
Significance level
SPSS
Statistical Package for the Social
Sciences
ix
TABLE LIST
Table 2.1: Related research models ........................................................................ 9
Table 2.2: Previous study summary ......................................................................... 11
Table 3.1: Measurement scale of observed variables .............................................. 29
Table 3.2: Coding the variables of the scale ............................................................ 34
Table 4.1: Sample Description ................................................................................. 42
Table 4.2: Scale Reliability Testing ......................................................................... 44
Table 4.3: KMO and Bartlett's Test for the independent variable ........................... 47
Table 4.4: Eigenvalues and covariance deviations for the independent variable .... 47
Table 4.5: Factor loading for the independent variable ........................................... 48
Table 4.6: Table KMO and Bartlett's Test for the dependent variable .................... 49
Table 4.7: Eigenvalues and covariance deviations for the dependent variable ....... 50
Table 4.8: Factor loading for the dependent variable .............................................. 50
Table 4.9: Pearson correlation analysis .................................................................... 51
Table 4.10: Model Summary.................................................................................... 52
Table 4.11: ANOVA analysis .................................................................................. 52
Table 4.12: Coefficients Analysis for Independent Variable ................................... 53
Table 4.13: Testing Multicollinearity ...................................................................... 55
Table 4.14: Summary of hypothesis testing results ................................................. 57
x
FIGURE LIST
Figure 2.1: Research model proposed by the author ......................................................27
Figure 3.1: Research process .........................................................................................28
Figure 4.1: Histogram chart ........................................................................................... 55
Figure 4.2: Scatter plot chart .......................................................................................... 56
1
CHAPTER 1: OVERVIEW OF THE RESEARCH
1.1. The necessity of the research
Currently, Vietnam ranks 48/60 countries with the fastest digital economy
transformation in the world, and 22nd in terms of digitalization development speed
(Nguyen, T. H., 2010). It proves that Vietnam is in the digital economy and the ecommerce field has a further prospect.
More than 90% of users who install an e-commerce app shop at least once per
month, with 60% shopping three or more times. Analytical figures from 2,500
Vietnamese users in the third quarter of 2018 on how to use retail and shopping
apps show that 89% have taken all steps to make an in-app purchase, 82% have
taken all the steps to make an in-app purchase. said that they choose because they
find it more enjoyable and convenient to shop through apps, more than 70% believe
that financial information is stored more securely than shopping from the website.
The trend of commerce on mobile devices is driving online retailers to invest in
applications to reach customers. Statistics show that the rate of using mobile apps
for shopping has increased from 40% in 2016 to 72% in 2018 (Viễn Thông, 2018).
According to data from Statista, on average, each user in Vietnam spends
about 54.89 USD/year (about 1.27 million VND) or only 106,000 VND/month to
shop online. The proportion of users participating in online transactions reaches
52.5% and is expected to reach 55.9% in 2022, whereas in developed countries this
figure is more than 70%. In 2018, there were 49 million users participating in online
shopping, accounting for 76% of the number of Internet users.
Besides favorable factors and conditions, Vietnam is also facing many barriers
such as: fierce competition of rivals; Consumer confidence when shopping online is
still low; Delivery and order fulfillment services have not kept pace with demand...
Especially, despite the recent rapid growth, e-payment in Vietnam is still in
potential form, far behind compared to with many countries in the region and
around the world.
2
For the vast majority of current social network users, TikTok has been and is a
social networking platform that is particularly noticed by the young user
community, belonging to Generation Z. This is also the generation of students at Ho
Chi Minh University of Banking - one of the large educational institutions in
Vietnam, training many professions and levels. With the advantage of a very large
number of university students studying, this is considered an age group with very
high cognitive development. Thanks to the sense of maturity, students have the
knowledge, attitude and self-assessment ability to adjust their own growth in the
right direction of society. In addition, this is also the age group that spends a lot of
time using the internet in general and has a positive view of social changes,
especially about online shopping.
At the end of April 2022, TikTok was officially launched. TikTok Shop ecommerce solution in Vietnam market. With the advantage of a large number of
users and a new "review" approach, this will be the next platform to enter the online
retail market in Vietnam along with Shopee, Lazada, and Tiki. As a platform that is
still too new to do business in the field of e-commerce, being competitive with
competitors in the same segment and still having some customers are still concerned
when shopping online on the TikTok Shop platform is an unavoidable thing.
Although there are many theories in the world today, Research model to explain the
factors affecting the intention of consumers to buy online, and in Vietnam, there
have been many studies on the intention to buy online. However, with the TikTok
Shop business, there is still no research to study the shopping intentions of
customers. Understanding the factors that affect the purchase intention of
consumers will help businesses maintain current customers, attract and attract
potential customers.
Therefore, the author conducted the thesis “Factors Affecting Online
Shopping Intention in TikTok Shop of Students at Ho Chi Minh University of
Banking” in order to focus on exploring and analyzing factors affecting online
shopping intention of students (young customers) at Ho Chi Minh University of
3
Banking and the level impact of each factor on students in this period. Through the
study, we can understand factors motivating students in Ho Chi Minh City shopping
online in TikTok Shop. Finally, the research could make some recommendations to
help TikTok companies could increasingly expand and develop the market in
Vietnam in the coming time.
1.2. Research Objectives
The general objective of this study is to study the factors affecting online
shopping intention at the TikTok Shop of students at Ho Chi Minh University of
Banking and then assess the extent of their influence on online shopping intention at
TikTok Shop at university.
Based on the research results, the study will propose suggested solutions for ecommerce companies in general, especially TikTok Shop. Increasing customers'
trust in this communication channel, thereby boosting profits from this sales
channel. To achieve this general goal, this study sets out the following specific
research objectives:
- Determining the factors affecting the online shopping intention of students at
Ho Chi Minh University of Banking when shopping on TikTok Shop.
- Assessing the influence of factors affecting the online shopping intention of
students at Ho Chi Minh University of Banking when shopping on TikTok Shop.
- Providing governance implications for TikTok to improve and innovate the
shopping feature.
1.3. Research question
Based on the research objectives and the necessity of research identified
above, the thesis answers the following research questions:
- What are the factors affecting online shopping intention in TikTok Shop of
students at Ho Chi Minh University of Banking?
4
- How does the influence of the factors affect the online shopping intention of
students at Ho Chi Minh University of Banking when shopping on TikTok Shop?
- Which suggestions for TikTok is improving and innovating shopping
feature?
1.4. Research subject and scope
1.4.1. Research subject
Object of study: Factors affecting online shopping intention in TikTok Shop of
students at Ho Chi Minh University of Banking.
1.4.2. Research scope
Research scope: Students at Ho Chi Minh University of Banking
Research time: The research is going to be carried out from September to
November, 2022
1.5. Research Methodology
Research is designed to study calculations by reference to scientific research
before to select the element of positive impact on the students (online buyer) at Ho
Chi Minh University of Banking. Then the recipient of the consumer survey and are
conducting online shopping to collect information.
The data will be analyzed to describe the sample and eliminate inconsistently
observed variables in a factor by Cronbach's Alpha. Furthermore, EFA is used in
this study to investigate factors and assess the internal reliability of a scale. The goal
of multivariate regression is to investigate the factors that influence the change of
independent variables.
1.6. Research Significance
1.6.1. Academic Significance
In this thesis, both the theoretical basis and previous studies have been
systematized on the factors affecting consumer confidence when shopping online.
5
The thesis examines the relationship between factors and students' online shopping
intention at Ho Chi Minh University of Banking. The thesis proposes a suitable
model related to the factors affecting consumer intention when shopping online
through the characteristics relevant to the domestic market.
1.6.2. Practical Significance
The thesis will make some theoretical contributions, practical implications,
and suggestions for e-commerce companies in general and especially for TikTok
Shop. This is considered a young trading floor, which has just appeared on the ecommerce market recently.
1.7. Research structure
In addition to the table of contents, the list of abbreviations, appendices and
references, this research paper is divided into 5 chapters:
Chapter 1: Overview of thesis
Chapter 2: Literature review and review research models
Chapter 3: Research methodology
Chapter 4: Data Analysis
Chapter 5: Conclusion and recommendations
SUMMERY CHAPTER 1:
The first chapter provided a summary of the research topic, including its
importance, research aims and tasks, research difficulties and questions, research
objects and scope research, research techniques and data, and the study's
contributions. The topic “Factors Affecting Online Shopping Intention in
TikTok Shop of Students at Ho Chi Minh University of Banking” is both
scientific and practical, as seen by the preceding information. This will serve as the
foundation for future studies. It is an extensive investigation into the theoretical
6
foundations, research methodologies, and data collection in order to provide
research findings and solutions.
7
CHAPTER 2: LITERATURE REVIEW AND REVIEW RESEARCH
MODELS
2.1. Definition
2.1.1. Intention
Intention is a factor used to assess the likelihood of future behavior. According
to Ajzen (1991), intention is a motivating factor that motivates an individual to be
willing to perform a behavior. Therefore, Delafrooz et al. (2011) argue that "online
shopping intention is the certainty of a consumer's intention to make an Internet
purchase".
2.1.2. Shopping intention
According to Ajzen (1991), shopping intention is considered as a motivational
factor that affects an individual's behavior, these factors show the level of
willingness or effort of each individual to make a purchase behavior. When people
have stronger behavioral intentions, they are more inclined to perform the behavior.
In addition, purchase intention is a representative of the perceived willingness to
perform a buying behavior and is the most accurate tool for predicting actual buying
behavior (Kalwani et al, 1982). It is a factor used to assess the ability to perform a
behavior in the future (Blackwell et al, 2001). Therefore, the study of purchase
intention will have great practical implications for the actual purchase behavior.
2.1.3. Online Shopping Intention
Online shopping intention is derived from purchase intention (Close and
Kukar-Kinney 2010). Howard and Sheth (1969) define purchase intention as a
cognitive state that reflects a consumer‘s plan to purchase products and services in a
specified period of time. Bai et al (2008) affirm that purchase intention is the
primary result of pre-purchase satisfaction in an E-commerce context. Close and
Kukar-Kinney (2010) define online shopping intention as the intention of online
shoppers to purchase products and services via the Internet, or use the virtual
8
shopping cart as a means to buy things during an online session. Accordingly, the
virtual shopping cart acts as a functional holding place which is required to
temporarily keep or hold the intended purchase items prior to completing the
purchase transaction. Chen et al. (2010) believe that online shopping intention is the
vital predictor of actual purchasing behavior. They add that it reveals the desire of
online shoppers to complete a purchase transaction via the virtual stores or websites.
2.1.4. TikTok Shop
In recent years, TikTok was becoming a very popular social network not only
in Vietnam but there are countries in the world. Particularly, this social network is
formally expanding because of the COVID-19 complex developments, the
activation of activities is limited so that people use to social networks as a set-stage
for a change of course.
The amount of shopping was right on TikTok social services available at the
end of the month 4/2022, with great advantage of the user number, especially the
group of potential young clients, TikTok Shop's going to join the electronics market
in Vietnam and be competing directly with the other three major electronics Shopee,
Lazada and Tiki.
The study focuses on TikTok Shop because this was a very new platform in
Vietnam. Besides, this social network has a relatively high-profile young user
ratings that use a group of people who are willing to pay for online shopping bills.
In addition, TikTok Shop is somewhat superior in terms of features compared to
other social networking platforms and shopping apps.
- The first is about the sales livestream feature. Livestream sales are now
considered a trend on social networks. Only appeared in the past few years, but it is
a form of sales that helps to reach a lot of potential customers. Unlike the social
network Facebook, livestream viewers can only buy products when they choose to
actively message the seller, or leave a comment for the seller to actively message to
advise customers, then a lot provide personal information and choose payment
9
methods through messages. For TikTok Shop, it is completely different, livestream
viewers can make quick purchases from the livestream and then make payments
very quickly and conveniently because personal information has been saved in
advance.
- Secondly, TikTok is a ―just for you‖ social network and algorithms. The
biggest reason people of all ages are still addicted to TikTok is the app's rich feed of
content, including its ―For you‖ page, or FYP for short. This page serves as the
main timeline of the app and helps people see new content. TikTok works on a
unique algorithm that uses AI and machine learning to cover FYP with the most
optimal content for a particular user. From there, TikTok will recommend products
based on things you like to watch in the form of video reviews or livestreams
selling similar products.
- Finally, the advantage of videos experiencing products from ―TikTokers‖ influential people on the TikTok platform. With the content displayed mostly in the
form of videos, retailers can convey the uses, features, characteristics, ... of the
product easily to viewers, helping to increase purchase intention. row. This can be
seen as a key factor to help TikTok Shop get a lot of attention not only from sellers
but also from buyers.
In short, this research focuses on TikTok because it is a social networking
application where users can shop online, and the sales method is quite similar to
Facebook but more optimized. In addition, TikTok Shop also has an online
shopping interface that is relatively similar to other online shopping applications
such as Shopee, Lazada, ... but personalizes the needs to display for each different
user. In addition, this is a new shopping app to enter the online shopping market and
there is no research done on TikTok Shop yet.
2.2. Relevant theoretical models
There are many research models that have been proposed based on the
background theory of consumer buying behavior
10
Table 2.1: Relevant theoretical models
Model
Author
Research Content
Variables
Theory of
Ajzen &
Explain the
Reasoned
Fishbein
relationship between Subjective standards
Action - TRA (1975,
1980)
Attitude towards behavior
attitude and
Behavioral intention
behavior in human
Real behavior
action
Theory of
Ajzen
Anticipate planned
Attitude towards behavior
Planned
(1985)
and intentional
Subjective standards
behaviors
Cognitive behavioral control
Behavior TPB
Behavioral intention
Real behavior
Technology
Davis
Prediction of
External variable
Acceptance
(1989)
technology adoption
Perception of usefulness
and use behavior
Perceived ease of use
Model - TAM
Usage attitude
Intention to use
Actual usage behavior
Combination
Taylor &
Combining the
Perception of usefulness
model: C-
Todd
above models to
Perceived ease of use
TPB-TAM
(1995)
overcome
Attitude
limitations in the
Social influence
context of
Behavioral control
explaining consumer Behavioral decision
behavior using
information
technology
11
E-Commerce
Lee et al.
Predicting consumer
Perceived risks
Adoption
(2001)
behavior on e-
Perceived usefulness
commerce platforms
Perceived ease of use
Model - ECAM
E-commerce use behavior
Unified
Venkatesh
Agree on user
Efficiency Expectations
Theory of
et al.
acceptance and use
Expectation of effort
Acceptance
(2003)
of technology,
Social influence
and Use of
calibrate variables
Good condition
Technology -
and scales from
Behavioral intention
UTAUT
models of previous
Usage behavior
studies, and
generalize into a
unified model
Extended
Venkatesh
Add 3 more
Efficiency Expectations
Unified
et al.
variables to expand
Expectation of effort
Theory of
(2012)
the application
Social influence
Acceptance
scope of the model
Good condition
and Use of
to individual
Motivation to enjoy
Technology -
consumers
Value for the price
UTAUT2
Habit
Behavioral intention
Usage behavior
General comments on previous reference model research:
This study chooses the E-CAM model as the foundation. In which, this study
retains 3 important factors: ―Perceived risks‖, ―Perceived usefulness‖, ―Perceived
ease of use‖. In the research scope of the topic, it only stops at shopping intention,
12
so the "E-commerce use behavior" of the E-CAM model (Lee et al., 2001) will not
be included in the survey.
2.3. Literature Review
Currently, the topic of factors affecting online shopping intention has always
attracted a lot of attention from managers, organizations and researchers in the
world. There are many studies in many different fields that have been carried out
successfully.
Table 2.2: Previous study summary
No.
1
Author
Research name
W.-I. Lee et Effects
al (2017)
Scope of
research
among The
Factor
study Product information (+)
product
was
Product quality (-)
attributes,
conducted
Product price (+)
involvement,
in
word-of-mouth,
and
and
intention
Taiwan Product involvement (+)
World-of-mouth (+)
purchase Mainland
in China
online shopping
on
the
intention to
purchase
medical
devices
online.
With study
subjects
from 15 to
50
old.
years
13
2
Hsu et al The
(2013)
effects
blogger
of The
study Perceived usefulness of
blogger’s
was
recommendations conducted
recommendation
will
on
positively
blog
customers‘ in Taiwan.
affect
online shopping With study
readers’ attitudes toward
intentions
online shopping.
subjects
from under Perceived usefulness of
25 to over
blogger’s
36
recommendation
will
positively
affect
blog
readers’
intentions
old.
years
to
shop online.
Trust
affect
will
positively
blog
readers’
perceived usefulness.
Trust
affect
will
positively
blog
readers’
attitudes toward online
shopping intentions.
Trust
affect
will
positively
blog
readers’
intentions to shop online.
Blog readers’ attitudes
toward shopping online
will positively affect their
intentions to shop online.
A blogger’s reputation
will
affect
the
