topic research on the impact of live streaming on the tiktok platform on customer purchase decisions

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<b>FPT UNIVERSITY- CAMPUS CAN THO</b>

<b>Cần Thơ, 10/2022</b>

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<small>3.1</small> <b><small>Factors affecting livestreaming on TikTok on customers' purchasing intentions...6</small></b>

<small>III.</small> <b><small>Research hypothesis...9</small></b>

<b><small>1.</small></b> <small>Research hypothesis...9</small>

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<b>I.Topic research1. Introduction</b>

The explosion of TikTok, especially among young people, represents aprofound change in the way users access content. TikTok, with its shortvideos and focus on user-generated content, has created a more engagedenvironment for users. Against this backdrop, one aspect of TikTok'sfunctionality has taken on a pivotal role in shaping consumer behaviorand influencing purchasing decisions: TikTok Live Streaming. Thisboom has changed the landscape of consumer behavior and marketingstrategies in recent years. It helps creators engage with their audiences inreal-time, redefining user engagement and providing new marketingopportunities. In the digital age, trust, authenticity and peerrecommendations shape consumer choices, making decisions TikTokLive Streaming is a valuable tool for businesses.

The combination of Livestream and e-commerce on TikTok has sparkedresearch interest in its impact on purchasing decisions. This researchpaper examines the impact of TikTok Live Streaming on consumerbehavior, including features, user engagement, and factors that influencecustomer purchasing decisions. It aims to provide a comprehensiveoverview that provides detailed information to the business. This reviewclarifies the relationship between Tik Tok Live Stream and customerpurchasing decisions.

<b>2. Research benefits</b>

In an era defined by the constant pace of technological innovation,research on the influence of TikTok Livestream on customer purchasingdecisions is important to many stakeholders, from businesses andmarketers. market to researchers and consumers.

TikTok, with its growing user base and unique content format, offersunprecedented opportunities for businesses to connect with their targetaudience. Understanding how TikTok Livestream influences customers'purchasing decisions can guide marketing strategies, content creation,and engagement tactics. By effectively harnessing the power of LiveStreaming, businesses can not only enhance brand visibility but alsofoster real connections with consumers.

The combination of social media and e-commerce is continuouslyreshaping the consumer journey. TikTok Livestream serves as amicrocosm of this evolution, providing a dynamic platform for productdiscovery and promotion. As consumers increasingly turn to digital

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platforms to find information, it is essential that they are aware of thefactors that influence their purchasing decisions. This researchcontributes to helping businesses understand more about consumers'purchasing decision behavior on TikTok Livestream.

<b>4. Objectives</b>

The goal of the research is to systematically and comprehensivelyevaluate the impact of Livestream on Tiktok platforms on consumerdecisions about products.

- Identify elements of livestream on TikTok that affect users' onlineshopping behavior.

- Determine the level of influence of each factor on students' purchasingintention towards the product.

- Propose some recommendations to help businesses improve salesefficiency via livestream.

<b>5. Research subjects</b>

Factors related to the value of livestream and viewer reactions,awareness of communication programs through Tiktok Livestream,factors affecting shopping behavior and purchasing decisions ofcustomers towards businesses.

The research subjects are all Tiktok users from 18 to 30 years old inthe Can Tho city market. They are exposed to marketingcommunication programs of businesses through social networksand media. Because from the age of 18, people have been grantedthe right to watch all kinds of videos and order products on Tiktok.The research focuses on the impact of Livestream on the Tiktokplatform on customers' purchasing decisions. This onlinequestionnaire is designed on the Google Forms platform. We sentout this questionnaire to invite people to participate in the surveyprimarily via Facebook. The collected data will then be processedand analyzed through SPSS and AMOS software.

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<b>II.Literature review1. Theory of TikTok</b>

TikTok, which first launched in September 2016, has quicklyemerged as one of the most popular social media platformsglobally, especially with younger audiences (HootSuite, 2021).As can be seen, TikTok is an application that provides userswith the ability to produce, share, and watch content includingshort video clips. Despite the fact that it is only accessiblearound the globe since 2017, it has been downloaded more than2 billion times and there are more than 800 million users whoare actively using it. According to Schellewald (2021), there is asignificant amount of public interest in the brief and seeminglyrandom videos that TikTok hosts. According to Shaun (2023),the number of Vietnamese TikTok users reached about 28million in 2022. In the last few years, the short video app calledTikTok has seen an explosion in popularity globally (Zeng etal., 2021). TikTok is successful in engaging youth because theyactively participate in trends like dance challenges,performances, and lessons, among many others (Quiroz, 2020).The user experience on TikTok is optimized in many areas,including but not limited to UCD design, content creation andform innovation, custom services, and more (Yu, 2019). TheoZeng et al. (2021) highlighted TikTok's popularity and creativepotential, while showcasing its ability to expand its field ofresearch on the platform and its predecessor applications.

<b>2. Definition of online shopping</b>

"Online shopping" is understood as the action that consumers take topurchase products or services from online stores through the Internet(Pavlou, 2003). This is a process by which consumers intend and arewilling to make transactions online. Customers use the Internet as atool to search, compare, and make purchases. George (2004) foundthat due to concerns about personal information and privacy, manyconsumers may not choose to shop online. These concerns mayinfluence their online shopping decisions.

According to Haubl & Trifts (2000), "online shopping" is atransaction conducted by the consumer through a computer-basedinterface where the consumer's computer is connected and caninteract with the retailer's digitized stores. Other studies such asHasslinger et al. (2007), Li and Zhang (2002), and MasterCard(2008) all agree that "online shopping" is the process by whichconsumers purchase goods or services through the Internet. Whatthese concepts have in common is the procurement of goods or

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services through the Internet. This shopping process takes place atvirtual stores or online stores on websites. Throughout this process,buyers and sellers are not in direct contact with each other, everytransaction is done through the website (Kolesar and Galbraith,2000; Lester et al., 2005).When customers want to purchase aproduct, they simply select it by clicking on it and the product willbe delivered to the address specified by the customer (Yoruk et al.,2011). Merchandise at these stores is often described in text, images,audio, video (Kolesar and Galbraith, 2000; Lohse and Spiller, 1998).However, customers can only evaluate products through messages(in the form of: images, text, audio, video) that sellers post onwebsites, not by the senses in the usual way as in traditionalshopping, so shopping transactions in the online environment areriskier than traditional shopping (Laroche and plus) Incident, 2005).However, information on websites is often very rich and diverse,from information of manufacturers, sellers to comments, reviews,ratings ... of clients (Hennig-Thurau and Walsh, 2003; Lepkowska-White, 2013)

<b>3. Livestream TikTok</b>

Live streaming is a way to connect with people around theworld through the internet. (Svart, 2018; Ahmadi, 2022 ;Pongratte, 2023) Explain the live streaming feature that allowsbroadcasting an event in real-time as it is happening on aninternet-connected platform and audiences can watch the eventwithout the hassle of having to download content to yourcomputer first. TikTok is one of the platforms with this feature,which has attracted attention for its user engagement potential,providing a great experience for them to watch and interact withtheir favorite creators. own. In contrast, creators can respond tocomments and questions in real-time, creating a sense ofpersonal connection and authenticity (Iqbal et al., 2020). Inaddition, the ease of creating content in Livestream TikTok alsohelps Creators create real-time, script-free content that resonateswith audiences. Authenticity is distinct from traditionaladvertising methods and can contribute to creating relatable andtrustworthy brand messages (Golan, 2019; Kaur & Rani, 2020).

<b>3.1Factors affecting livestreaming on TikTok on customers'purchasing intentions. </b>

Consumers make purchasing decisions based on variousfactors. The majority of the consumer decision journeybegins online, where consumers read website reviews andrecommendations on social media. Those looking to buy a

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product also consider the brand's value proposition andwhether these values align with their own. Throughnumerous studies, several factors that can influencecustomer purchase decisions when watching livestreamshave been identified, such as:

<b>Trust: </b>Emotional trust is built on the relationship between thetrustee and the trusted person, the basis of which is emotional.Mutual attraction and interaction, along with regularinterpersonal communication and exchange, deepen therelationship over time and show concern for the benefit of thetrusted person (Mian and Hattab, 2013). The perceived trust thatconsumers have toward streamers can influence their emotionalbeliefs, which in turn drive purchase intent (Zhang et al., 2014).Consumers have trust in the brand community, which increasesthe willingness to buy the brand's products (Habibi et al., 2014).Emotional beliefs can influence a consumer's purchase intent(Awad and Ragowsky, 2008). Consumers tend to choose productsrecommended by people with a credible viewpoint, as theiremotional beliefs can influence their purchasing decisions(Koufaris and Hampton-Sosa, 2004).

H1.1: Reliability has a positive impact on the attitude ofpurchasing decision behavior when watching livestream onTiktok

H1.1: Reliability has a positive impact on the subjectivenorm of purchasing decision behavior when watchinglivestream on tiktok

<b>Excitement: They engage in interaction with their followers</b>

by liking, commenting, sharing, and reposting, thus makingusers feel they have a close psychological connection withonline influencers. According to Kim and Kim (2021) aswell as Tafesse and Wood (2021), the use of celebrities orKey Opinion Leaders (KOLs) on online platforms topersuade consumers to make e-commerce purchases isbecoming more prevalent.

H2: Stimulation has an impact on the attitude and subjectivenorm of mia hang decision behavior when watching livestreamon tiktok

<b>Informativeness </b>

Informativeness is defined as the ability to provide necessaryinformation to target customers (Ducoffe, 1996). Livestreamplays an important role in providing information. One of the

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goals of livestream is to inform customers about new products ornew features of existing products or changes in product prices.Ducoffe (1996) believes that an online advertising activity thatprovides complete information about products and services willhave a positive influence on attitudes and increase the likelihoodof continuing to buy that product or service. Furthermore,consumers tend to quickly evaluate the information they receive,so the information provided needs to be short and concise(Kaasinen, 2003). According to research by Li and Zhang (2019)emphasizes the importance of informativeness in live streamingmarketing. From there, it can be concluded that potentialcustomers often require additional information for the productsthey need. Thus, information is seen as a very valuable incentivein marketing, which positively influences purchase intention, aswell as sharing product-related information with relatives orcolleagues. Therefore, this study makes the following hypotheses:H3.1: Informativeness has an impact on purchasing decisionbehavior when watching livestream on Tiktok

H3.2: Informativeness has an impact on subjective norm ofpurchase decision behavior when watching livestream on tiktok

<b>Interaction: </b>

This is a factor related to communication and connection betweenthe live streamer and the viewer. Interaction can include factorssuch as attention to price, actual product images, promotions,feedback... from the live streamer. Engagement can have apositive impact on viewers' purchase intentions, making themfeel cared for and valued.

According to Yaakop et al. (2013), social media influences everystage of the consumer decision-making process, as well asinfluencing general opinion and attitude formation. One of theinteractive capabilities of social networks is the ability to attractmany users to use text, images, videos and links to follow andshare new products with other consumers. Livestream appearingon every social networking site allows companies to targetpotential customers in less time and cost effectively, as well asgenerate practical revenue for the business. According to Steuer's(1992) definition of virtual interaction, it is the "degree to whichinternet users engage in altering the content of websites in real-time." This concept explores three characteristics of virtualinteraction: (1) two-way communication, (2) real-time

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communication, and (3) mutual control, all of which are stronglysupported and assessed by empirical research (Yoo et al., 2010;van Noort et al., 2012; Hu et al., 2016; Yoo and Park, 2016).While some researchers argue that businesses may overestimatethe benefits of customer engagement (Kunkel et al., 2019), themajority of studies indicate that enhancing customer engagementleads to increased satisfaction and perceived value (Yoo et al.,2010; Vendemia, 2017). Therefore, customer satisfaction andperceived value are closely related to purchase attitudes. On thatbasis, the study tests the following hypotheses:

H4.1: Social interactivity has an impact on the attitude ofpurchasing decision behavior when watching livestream ontiktok

H4.2: Social interactivity has an impact on subjective normof purchase decision behavior when watching livestream ontiktok

<b>Distractions: According to Aaker and Bruzzone (1985),</b>

annoyance encompasses discomfort, dissatisfaction, or negativestimulation. Annoyance in livestreaming refers to the level ofdiscomfort experienced by individuals exposed to onlinelivestreams. This discomfort significantly diminishes theeffectiveness of livestreaming activities and deviates from themarketer's initial objectives. As per Ducoffe (1996), offensive orobjectionable content has a negative impact on consumerattitudes. Dickinger, Haghirian, Murphy, and Scharl (2004) arguethat online advertising activities that are displayed but unwantedor unwelcome to viewers cause annoyance and generateunfavorable perceptions of the advertised products. Do (2017)demonstrates that customer perception of annoyance has apronounced impact on discomfort, leading to a more negativeoutlook, resulting in a negative attitude toward advertising, andpotentially reducing the intention to purchase the advertisedproduct (Phạm Thị Lan Hương and Trần Nguyễn Phương Minh,2014). Based on this foundation, the research hypothesis isproposed:

H5: Distractions have an impact on attitudes and subjectivenorms of mia hang decision behavior when watchinglivestream on tiktok

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<b>Attitude: Eagly and Chaiken (2007) provide a definition of</b>

attitude as a psychological assessment of a specific object,either in a positive or negative light. Attitudes can serve aspredictors of behavior, as an individual's likelihood of takingaction often hinges on their developed attitude toward thatparticular object. Furthermore, when consumers harborpositive attitudes toward a product, it significantlyinfluences their future intentions to purchase and their actualbuying behavior (Fazio, 1990). The more favorable theattitude toward a particular behavior, the stronger anindividual's inclination to engage in that behavior, asemphasized by Tarkainen and Sundqvist (2005). Chen(2007) underscores that consumers' preferences and attitudesregarding the purchase of a specific product stem from theirpersonal attitudes and their desire to engage in a particularbehavior. According to Engel and Blackwell (1978),purchase intention assumes a pivotal role as a predictor ofconsumer behavior, often serving as a proxy for actualbehavior.

H6: Attitude has an impact on purchase intention whenwatching livestream on tiktok

<b>Subjective norms: are defined as an individual's perception</b>

of whether important referents believe a behavior should orshould not be performed (Fishbein & Ajzen, 1975).Subjective norms can be measured through individuals whoare relevant to the consumer, determined by the normativebeliefs regarding the expectation of behavior and themotivation of the individual to comply with thoseexpectations (Fishbein & Ajzen, 1975, p. 16).

H7: Subjective norms have an impact on purchase intentionwhen watching livestream on Tiktok

Livestreaming on TikTok has emerged as a potent influencer ofconsumer purchasing decisions. This review delves into thefactors within the model of trust, stimulation, informativeness,interaction, and distraction that play pivotal roles in shapingpurchase intentions when watching TikTok livestreams.

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