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MINISTRY OF EDUCATION & TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY


----
SCHOOL OF ECONOMIC MATHMETICS - STATISTICS

ESSAY
Essay presented for
STATISTICS FOR BUSINESS AND ECONOMICS
Reasearch Topic
ONLINE SHOPPING HABITS ON TIKTOK SHOP
AMONG STUDENTS IN HO CHI MINH CITY

INSTRUCTOR: MS. TRAN HA QUYEN


GROUP: 2
CLASS: IBF004 – K49
Ho Chi Minh City
December 30, 2023
LIST OF MEMBERS

Group 2

Members:

Mai Anh Thu

Tran Gia Bao

Vu Thi Kim Hang

Mai Thi Thanh Thuy

MEMBER PERCENTAGE OF
COMPLETION (%)

MAI ANH THU 100

TRAN GIA BAO 100

VU THI KIM HANG 100

MAI THI THANH THUY 100

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TABLE OF CONTENTS
LIST OF MEMBERS..............................................................................................................1

FOREWORD............................................................................................................................5

CHAPTER 1: INTRODUCTION...........................................................................................6

1.1. Research context............................................................................................................6

1.2. Research problem statement........................................................................................7

1.2.1. Research questions....................................................................................................7

1.2.2. Research problem......................................................................................................7

1.3. Research objectives........................................................................................................7

1.3.1. General objective......................................................................................................7

1.3.2. Detail objectives........................................................................................................8

1.4. Research scope and subject..........................................................................................8

1.4.1. Research scope..........................................................................................................8

1.4.2. Research subject........................................................................................................8

1.5. Research data source.....................................................................................................8

1.6. Research content............................................................................................................8

1.7. Research structure.......................................................................................................12

CHAPTER 2: THEORETICAL BASIS, PREVIOUS RESEARCH RESULTS AND


RESEARCH MODEL...........................................................................................................13

2.1. Theoretical basis..........................................................................................................13

2.1.1. Online shopping......................................................................................................13

2.1.2. E-Commerce...........................................................................................................13

2.1.3. TikTok Shop...........................................................................................................14

2.2. Previous research results............................................................................................14

2.3. Hypothesis and Research Model................................................................................16

2.3.1. Hypothesis..............................................................................................................16

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2.3.2. Research Model......................................................................................................17

CHAPTER 3: RESEARCH METHOD...............................................................................18

3.1. Data Goals....................................................................................................................18

3.2. Data Approach.............................................................................................................18

3.3. Analysis plan...............................................................................................................21

3.3.1. Choosing a sample size...........................................................................................21

3.3.2. Collecting data method...........................................................................................21

3.3.3. Descriptive statistics method..................................................................................21

3.3.4. Inferential statistical method...................................................................................21

3.3.5. Computer programs for data analysis.....................................................................22

3.4. Reliability and validity................................................................................................22

3.4.1. Factors affecting reliability and accuracy...............................................................22

3.4.2. How to prevent and overcome................................................................................22

CHAPTER 4: RESEARCH ANALYSIS AND RESULT...................................................23

4.1. Descriptive statistics....................................................................................................23

4.1.1. Universities.............................................................................................................23

4.1.2. Gender.....................................................................................................................23

4.1.3. School year.............................................................................................................24

4.1.4. Time spending.........................................................................................................25

4.1.5. Purchasing habits....................................................................................................26

4.1.6. Preferred products...................................................................................................28

4.1.7. Monthly income/allowance.....................................................................................29

4.1.8. Price willing to pay for an item on TikTok Shop...................................................31

4.1.9. Payment method.....................................................................................................32

4.1.10. Reason for using TikTok Shop.............................................................................33

4.1.11. Students' interest level in TikTok Shop’s monthly sale event..............................35

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4.1.12. Factors affecting students' shopping decisions.....................................................36

4.1.13. Other E-commerce platforms................................................................................37

4.1.14. Factors that students are not satisfied with when experiencing online shopping at
TikTok Shop.....................................................................................................................39

4.1.15. Recommendations for improvement.....................................................................40

4.2. Statistical inference.....................................................................................................41

4.2.1. Regarding one population.......................................................................................41

4.2.2. Regarding two populations.....................................................................................44

4.2.3. Interval estimation about the difference between two population means...............44

4.2.4. Hypothesis tests about the difference between two population means...................45

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS........................................47

5.1. Conclusion....................................................................................................................47

5.2. Recommendations........................................................................................................48

5.2.1. Recommendations on the quality and information of the products........................48

5.2.2. Recommendations on the delivery capacity...........................................................48

5.2.3. Recommendations on the ability to solve customer complaints.............................48

REFERENCES.......................................................................................................................49

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FOREWORD
In the modern era today, the age of access to technological devices is increasingly younger,
showing that technology is becoming indispensable in everyone's life. With those
technological developments, consumer shopping behavior is deeply affected, causing the
forms of interaction between customers and businesses to change continuously. And in recent
years, the e-commerce industry has developed strongly in Vietnam, especially online
shopping through social platforms. According to statistics from the Vietnam E-commerce
Association (VECOM), in 2022, the Vietnamese e-commerce market will reach a scale of
17.8 billion USD, an increase of 25% compared to 2021. In particular, online shopping on
social networking platforms contributes more than 50% of total e-commerce revenue.
Reasons for that are that online shopping helps consumers save time and effort, compare
prices easily, etc. Those benefits have promoted the development of online shopping. We can
imagine that through the TikTok Shop platform, one of the fastest-growing e-commerce
platforms in Vietnam. In April 2022, TikTok Shop officially entered the Vietnamese market
and immediately inherited 49.9 million existing social network users. It has become an online
shopping channel popular with many consumers, especially students. However, besides the
advantages, TikTok Shop also has some difficulties and obstacles, affecting the shopping
experience of users, especially students. That’s why "survey on online buying habits on
TikTok Shop of students in Ho Chi Minh City" was conducted to research and provide
suggestions to solve difficulties and the above problems, which will help improve students'
shopping experience on TikTok Shop as well as improve the business operations of the
TikTok Shop platform.

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CHAPTER 1: INTRODUCTION

1.1. Research context

In recent years, Vietnam's e-commerce market has been increasingly expanding and has now
become a popular business method known by businesses and people. Diversity in operating
models, participants, operating processes, and supply chains of goods and services with the
support of Internet infrastructure and modern technology applications have made e-commerce
an important pillar in the country's digital economic development process. The e-commerce
market is becoming more vibrant and applying digital technology and building new
distribution channels is becoming an effective solution for Vietnamese businesses to
overcome difficulties and bring new opportunities from new needs’ market emergence. The
e-commerce market is becoming more vibrant and applying digital technology and building
new distribution channels is becoming an effective solution for Vietnamese businesses to
overcome difficulties and bring new opportunities from the newly arising needs of the
market. The buying habits of Vietnamese consumers in the domestic market are also
gradually shifting from traditional purchases to online shopping through electronic means.
The development of e-commerce brings more choices to consumers about products and
services, as well as prices; E-commerce allows customers to shop anytime, anywhere without
any limit time and time. Information is easily found through search engines. Along with the
development of e-commerce channels such as Shopee, Lazada, Tiki, Sendo,... TikTok is
growing and attracting many consumers, especially young people. Using creative videos or
live streaming to reach buyers, helping customers easily visualize and compare product
quality with the above images of other e-commerce sites. Purchasing on TikTok Shop also
allows buyers and sellers to communicate directly with each other through live streaming.
Thanks to the convenience and easy access to products, consumers in general and young
people in particular tend to buy products on TikTok.

However, everything always has two sides. Besides certain advantages, TikTok Shop still has
limitations: the quality of products delivered to customers is sometimes not guaranteed, and
delivery time is longer than expected,... In addition, people Users are still afraid of personal
information being stolen and credit risks when paying online through payment gateways.

In the current technological age, young people in general and students, in particular, have
become first-generation pioneers in absorbing and using the latest technology, becoming the

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largest consumer force on e-commerce platforms. Understanding this, our group decided to
choose the research topic "Shopping habits on the e-commerce platform TikTok Shop of
students in Ho Chi Minh City" to confirm the factors affecting shopping. on the student's
TikTok website today. From there, propose certain strategies to help TikTok Shop do
business more effectively and appropriately.

1.2. Research problem statement

1.2.1. Research questions

These are some of the research questions that we used for the research form:

- How much time do students use TikTok in a day?

- How often do students make purchases through TikTok Shop?

- What are the items on TikTok Shop that students have purchased and used?

- What is the monthly income/allowance of students?

- How much do students typically spend when buying a product on TikTok Shop?

- What are the reasons students choose to use TikTok Shop?

- Do students show interest in the monthly discount events of TikTok Shop?

- What are the influencing factors on students' shopping on TikTok Shop?

- What do students feel dissatisfied with and want TikTok Shop to improve?

1.2.2. Research problem

From these above questions, we will demonstrate that TikTok Shop is currently and will
become one of the most popular online shopping platforms in human life. That is the reason
why our group decided to choose an interesting and practical topic for this project: “ONLINE
SHOPPING HABITS ON TIKTOK SHOP AMONG STUDENTS IN HO CHI MINH
CITY”.

1.3. Research objectives

1.3.1. General objective

Analyzing the trend of using TikTok Shop for online shopping among young people,
especially students in Ho Chi Minh City nowadays by using data on spending on specific

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products on TikTok Shop, as well as collecting student reviews after using this shopping
platform. We carry out this research in order to propose solutions for students to use the
features of TikTok Shop most effectively as well as provide feedback to TikTok so that they
can improve their services.

1.3.2. Detail objectives

- Survey the number of students shopping online on TikTok Shop.

- Have a more general view of the frequency of students purchasing items on TikTok Shop.

- Survey the monthly income/allowance of students and their spending on TikTok Shop.

- Know which factors affected students to use TikTok Shop most.

- Understand the satisfaction with TikTok Shop services, thereby offering solutions for both
customers and TikTok Shop.

1.4. Research scope and subject

1.4.1. Research scope

As mentioned above, we conducted a study on the current situation of Ho Chi Minh City’s
students using TikTok Shop for shopping online in order to have a general view of the
influence of this type of e-commerce platform in today’s life.

The survey was conducted from December 3rd to December 9th and received 200 responses to
the survey on TikTok Shop services of students.

1.4.2. Research subject

We conducted a survey primarily targeting students of the universities in Ho Chi Minh City.

1.5. Research data source

The research is conducted through a survey based on the research form sent to university
students in Ho Chi Minh City through study groups and class groups.

1.6. Research content

Based on the research problem to achieve the goal of the topic stated above, we conducted a
survey form consisting of 15 questions with criteria and standards. Here is our survey sample:

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“SURVEY ON ONLINE BUYING HABITS ON TIKTOK SHOP OF STUDENTS IN HO
CHI MINH CITY.”

1. Which university are you currently studying at?

· UEH

· Others: …

2. What is your gender?

· Female

· Male

· Others: …

3. Which year of study are you in?

· Year 1

· Year 2

· Year 3

· Year 4

4. How much time do you use TikTok in a day?

· Under 1 hour

· 1 - 3 hours

· 3 - 5 hours

· Over 5 hours

5. How often do you make purchases through TikTok Shop?

· Never

· Seldom

· Sometimes

· Frequent

· Always

6. What are the items on TikTok Shop that you have purchased and used?

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(Multiple options can be selected)

· Fashion

· Cosmetics

· Housewares

· Do not buy and use

· Others: …

7. What is your monthly income/allowance?

· Under 1.000.000 VND

· 1.000.000 VND– 3.000.000 VND

· 3.000.000 VND – 5.000.000 VND

· Over 5.000.000 VND

8. How much do you typically spend when buying a product on TikTok Shop?

· Under 100.000 VND

· 100.000 VND – 300.000 VND

· 300.000 VND – 500.000 VND

· Over 500.000 VND

· Do not buy and use

9. What payment methods do you commonly use?

· E-Wallet (MOMO, ZaloPay,...)

· Banking Account

· Cash

· Others: …

10. What is your reason for using TikTok Shop?

(Multiple options can be selected)

· Convenience (Easy access to the store)

· Good price policy (many incentives, vouchers)

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· Many shopping suggestions

· Delivery service

· Product quality is trustworthy

· Do not use

· Others: …

11. Are you interested in TikTok Shop's monthly sale event?

· Not interested

· Not really interested

· Normal

· Interested

· Really interested

12. What are the influencing factors on your shopping on TikTok Shop?

(Multiple options can be selected)

· Selling price of the products

· Quality of the products sold

· Diversity of products on the platform

· Reviews of Tiktokers

· Do not use

· Others: …

13. Besides TikTok Shop, which e-commerce platforms do you usually shop from?

(Multiple options can be selected)

· Shopee

· Lazada

· Tiki

· Others: …

14. What do you feel dissatisfied with at TikTok Shop?

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(Multiple options can be selected)

· Slow delivery

· No inspection allowed

· The product is not good quality

· Few discount vouchers

· Others: …

15. What do you want TikTok Shop to improve?

(Multiple options can be selected)

· Improve product information

· Product quality

· Quickly resolve customer complaints

· Tighten regulations when cooperating with delivery units

· Others: …

1.7. Research structure

The project is divided into 5 chapters:

- Chapter 1: Introduction

- Chapter 2: Theoretical basis, previous research results and research model

- Chapter 3: Research method

- Chapter 4: Research analysis and result

- Chapter 5: Conclusion and recommendation

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CHAPTER 2: THEORETICAL BASIS, PREVIOUS
RESEARCH RESULTS AND RESEARCH MODEL

2.1. Theoretical basis

2.1.1. Online shopping

According to Kotler (2012): Online shopping is purchasing through electronic connections


between buyers and sellers - usually online. Not very popular fifteen years ago, online
shopping is now considered standard procedure for most businesses. Online shopping allows
buyers to contact new suppliers, cut purchasing costs, and quickly process orders. At the
same time, marketing experts can connect online with customers to share marketing
information, sell products and services, provide support services, and maintain existing
customer relationships.

Online shopping is defined as consumer behavior in shopping through online stores or


websites using online purchase transactions (Haubl, G. and Trifts, V. (2000)).

2.1.2. E-Commerce

According to the Ministry of Industry and Trade of Vietnam: E-commerce is a form of


activity commerce by electronic methods; is the exchange of commercial information through
electronic means without having to print on paper at any stage part of the transaction process.

According to the E-Commerce Committee of the Asia-Pacific Economic Cooperation


Organization (APEC): E-commerce involves commercial transactions exchanging goods and
services between groups (individuals). mainly electronically through Internet-based systems.

E-commerce has many forms, but in Vietnam, there are three most popular forms:

- B2B: Transactions conducted by businesses with each other through electronic channels.

- B2C: The exchange of services and goods takes place between businesses and their
customers via the Internet.

- C2C: The buying and selling of goods or services takes place between customers, using
each other electronic means for transactions.

E-commerce platform

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According to Decree 52/2013/ND-CP, An e-commerce platform is an e-commerce website
that allows traders, organizations, and individuals other than the website owner to conduct
part or all of the process of buying and selling goods and services on it. And Tiktok Shop is a
B2C e-commerce platform.

2.1.3. TikTok Shop

TikTok Shop is a new feature announced in 2022 of TikTok. TikTok Shop simply means
shop on TikTok. When users watch the video, a direct link will appear to purchase. Users just
need to click on the link to make a purchase without leaving the application. Sellers often
introduce products to TikTok users through videos, livestreams, and featured product
introduction tabs on their pages. Users will see detailed product information such as price,
product reviews, purchases...

(TIKTOK SHOP LÀ GÌ? CÁC ƯU ĐIỂM CỦA TIKTOK SHOP, https://marup.vn/tiktok-


shop-la-gi-uu-diem-cua-tiktok-shop/, accessed December 5th, 2023).

TikTok has a young user base. This is the age group with great purchasing power and the
habit of buying online. This age group also updates trends very quickly, and KOCs and
affiliates are focusing on TikTok Shop strongly.

TikTok is a social network that focuses a lot on content, so creating good content will bring
many opportunities for sellers.

2.2. Previous research results

According to Philip Kotler 2017, the consumer purchasing decision process includes 5 basic
steps: (1) awareness of needs, (2) information search, (3) evaluation of options, ( 4) purchase
decision, and (5) action.

(1) Awareness of needs: this is the stage where consumers become aware of their needs,
including physical, mental, social, and self-expression needs. This stage can be considered
the most important of the process leading to purchasing behavior.

(2) Searching for information: Consumers find information about products or services
through many different sources such as advertising, blogs, newspapers, traditional marketing,
reviews from other customers,... According to one study, reviews on the Internet and social

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networks have three times more impact on consumers than traditional marketing methods
(Armstrong, Philip Kotler, Gary 2012).

(3) Evaluation of options: Consumers evaluate product or service options to decide which
product best suits their needs. Factors influencing the decision are price, quality, brand,
reviews from other users,...

(4) Buying decision: After making assessments, consumers will decide to buy the product or
service that best suits their needs.

(5) Action: After deciding to buy, consumers will take action to buy the product or service.
Actions can include buying directly from the store (offline) or buying online (online),
typically buying through an e-commerce platform.

Tang, T. W. and Chi, W. H., 2005, The role of trust in customer online shopping behavior:
perspective of technology acceptance model, Proceedings of NAACSOS 2005. The TAM
model perspective of Tzy-Wen Tang and Wen-Hai Chi (2005) is based on the TAM model,
offering the following factors: Awareness of usefulness, perceived ease of use, and perceived
reliability have an impact on consumer attitudes in online shopping behavior.

In Vietnam, two authors Bui Thanh Trang and Ho Xuan Tien researched the factors affecting
consumers' online shopping behavior (2020). The results of the research show that there are
five influencing factors: 1) Perceived benefits; 2) Perception of risk; 3) Psychological factors;
4) Motivation to enjoy; and 5)Web design. Of the 5 factors above, the authors believe that
only the risk perception factor has a negative impact on consumer shopping behavior,
including four components: product risk, financial risk, insurance risk, and risk of seller
fraud.

Research on factors affecting the online shopping intentions of Generation Z consumers in


Vietnam by Ta Van Thanh and Dang Xuan On (2021) investigated five factors: perceived
usefulness, reputation level, trust, perceived risk, and psychological safety. Survey data from
488 consumers participating in online shopping living in Ho Chi Minh City, Da Nang, and
Hanoi. Research has discovered four factors that influence the online shopping intention of
Gen Z consumers: perceived usefulness, trust, perceived risk, and psychological safety.

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2.3. Hypothesis and Research Model

2.3.1. Hypothesis

- Preferential policy: Incentives and promotions are actions that businesses give to customers
to motivate customers to shop and use goods and services with the benefits that the seller
gives to their customers.

- Customer support policy: Customer service policy is all about the guidelines and procedures
that a company creates to ensure that its customers receive high-quality service and support.
The policy outlines the company’s commitment to meeting customer needs and resolving
their issues in a timely and effective manner.

(Customer Service Policy Examples & Benefits, https://www.revechat.com/blog/customer-


service-policy/, accessed December 5th, 2023).

- Product elements: These are the product elements that the customer will use to evaluate and
make choices: the product features, quality level, brand name, styling, and packaging. Every
product contains these components to a greater or lesser extent, and they are what the
consumer uses when evaluating alternatives. (Defining Product, LINK., accessed December
5th, 2023).

- Income: one of the most important elements affecting directly consumer behavior.

- Perception of risk: it represents consumer uncertainty about loss or gain in a particular


transaction (Murray, 1991).

- Willingness to pay (WTP): (WTP) is the maximum amount of money that customers are
willing to spend on a product or service. It represents the value that the customer perceives in
a product. Perceived valuation is influenced by various factors such as budget, alternatives
available in the market, and level of satisfaction with a product. (Willingness to Pay:
Understanding WTP & Using it For Optimal Pricing,
https://www.vendavo.com/all/willingness-to-pay/, accessed December 5th, 2023).

16
2.3.2. Research Model

Preferential policy

Customer support
policy
Product elements
Purchase decision Buying habits
Income

Perception of risk

Willingness to pay

17
CHAPTER 3: RESEARCH METHOD

3.1. Data Goals

As technology continues to develop rapidly, online shopping platforms are growing


exponentially. TikTok Shop is a relatively new online shopping platform that is rapidly
gaining popularity. However, for this platform to maintain its position in the market, it needs
to implement policies and adjustments that are more user-friendly. Recognizing this, we
conducted a survey of university students in Ho Chi Minh City to gather their feedback and
generate recommendations for businesses.

3.2. Data Approach

Based on theoretical foundations, our team conducted an online survey to collect data from
approximately 200 students across Ho Chi Minh City from December 2, 2023, to 9th
December 2023. The results yielded 200 survey samples. Using the SPSS software, the data
we collected yielded the following results.

Variables Variable Labels Scale Sources

Gender Biological Nominal Group survey on


characteristics of Google Forms
males and females

University University in Ho Chi Nominal Group survey on


Minh City Google Forms

Age Number of years the Nominal Group survey on


student studied at the Google Forms
school (freshman,
sophomore, junior,
senior)

Purchase Frequency Frequency of Range Group survey on


on TikTok Shop purchases on TikTok Google Forms
Shop

18
Time Spent on The amount of time Ratio Group survey on
TikTok Shop spent on surfing Google Forms
TikTok Shop

Factors influencing Influencers that Ratio Group survey on


purchasing decisions influence consumers Google Forms
on TikTok Shop when shopping on
TikTok Shop

Interest in discount Consumer interest in Range Group survey on


events on TikTok TikTok Shop sale Google Forms
Shop events

Types of items Categorize products Ratio Group survey on


commonly purchased that consumers often Google Forms
on TikTok Shop buy on TikTok Shop
(food, clothing,
appliances...)

Price willing to pay The maximum amount Ratio Group survey on


for an item on of money a consumer Google Forms
TikTok Shop spends shopping on
TikTok Shop

Monthly income The money that Ratio Group survey on


/allowance consumers receive Google Forms
every month

Other platforms, Other platforms such Ratio Group survey on


besides TikTok Shop as Tiki, Lazada, Google Forms

Factors influencing Reasons why Ratio Group survey on


consumer consumers are Google Forms
dissatisfaction with dissatisfied with

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TikTok Shop TikTok Shop

Things that TikTok Factors that consumers Ratio Group survey on


Shop needs to want TikTok Shop to Google Forms
improve improve

Payment method Method used for Ratio Group survey on


payment Google Forms

Factors influencing Factors why Ratio Group survey on


consumer using consumer choose to Google Forms
TikTok Shop use TikTok Shop

3.3. Analysis plan

3.3.1. Choosing a sample size

Choosing the sample size should consider factors such as the purpose of the survey, the size
of the population, and the degree of variability in the data. To serve "survey on online buying

20
habits on TikTok shop of students in Ho Chi Minh City", the minimum sample size is about
200 people. This sample size will ensure high accuracy of survey results while also being
feasible in terms of time to be able to carry out the project in a timely and detailed manner.

3.3.2. Collecting data method

The group chose to collect data through an online survey on Google Form. This method was
chosen because it is popular, easy to implement, and accessible to many people. After being
collected, the data will be analyzed and processed.

3.3.3. Descriptive statistics method

Descriptive statistics is the process of collecting and processing data using tables and graphs
to make the data clear and easy to understand. Data processing using this method includes the
following steps:

Step 1: Check the data.

Step 2: Frequency Distribution.

Step 3: Graphic Displays of Distributions.

Step 4: Make conclusions and recommendations.

3.3.4. Inferential statistical method

The inferential statistical method is the process of collecting and processing data from a small
survey sample to infer the whole. This method helps estimate and test the accuracy of the
hypothesis, thereby rejecting the false hypothesis and drawing conclusions. Data processing
using this method includes the following steps:

Step 1: Check the data.

Step 2: Build a statistical model.

Step 3: Use statistical models to make inferences.

Step 4: Make conclusions and recommendations.

3.3.5. Computer programs for data analysis

The data collected from the survey was compiled and processed through Microsoft Excel and
Word computer programs.

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3.4. Reliability and validity

3.4.1. Factors affecting reliability and accuracy

- The selection of samples based on convenient methods does not really generalize all
subjects, leading to an inaccurate overall view.

- Some survey participants were not completely honest in their answers, choosing answers in
a haphazard way, choosing only to be done.

- Because the amount of knowledge is still limited, there may not be questions that are
focused on the project topic or questions that are misleading or unclear, hindering data
analysis in the most accurate way.

3.4.2. How to prevent and overcome

- It is necessary to perform statistical calculations according to balanced norms to determine


the correct sample size.

- Need surveyors to be serious and honest in their answers or use statistical methods to check
whether the answers are consistent with each other and eliminate discrepancies.

- It is necessary to build survey questions that are clear, easy to understand, concise to the
point without causing misunderstandings, and avoid questions with multiple meanings so that
survey participants can understand correctly and answer accurately.

CHAPTER 4: RESEARCH ANALYSIS AND RESULT

4.1. Descriptive statistics

4.1.1. Universities

Table 4.1. Statistics on the universities of students participating in the survey.


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School Frequency Relative frequency Percent frequency
(%)
UEH 111 0.555 55.5
Others 89 0.445 44.5
Total 200 1 100

Most of the survey participants are currently UEH students which accounts for 55.5%.
Compared to UEH, the proportion of students from other Ho Chi Minh Universities is only
slightly smaller, which is 45.5%.

4.1.2. Gender

Table 4.2. Statistics on the gender of students participating in the survey.

Gender Frequency Relative frequency Percent frequency


(%)
Female 141 0.705 70.5
Male 59 0.295 29.5
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Total 200 1 100

Out of a total of 200 survey respondents, 141 were female, accounting for 70.5% of the total,
while male subjects accounted for 29.5%. The large difference in this ratio is due to the
characteristics of the survey location (UEH University and several other universities), the
main subject of the survey was students, with a high proportion of females.

4.1.3. School year

Table 4.3. Statistics on the school year of students participating in the survey.

School year Frequency Relative frequency Percent frequency


(%)
Year 1 154 0.77 77

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Year 2 12 0.06 6
Year 3 21 0.105 10.5
Year 4 13 0.065 6.5
Total 200 1 100

The survey implementation process had the highest participation rate from first-year students
(77%), followed by third-year students (10.5%), fourth-year students (6.5%) and the lowest
proportion of respondents belong to those who in the second-year study (6%). This shows a
reasonable representation as the majority of the groups conducting statistics projects are first-
year students. Therefore, students have the opportunity to interact and support each other in
completing the surveys.

4.1.4. Time spending

Table 4.4. Statistics on the time spent on TikTok by students.

Using time Frequency Relative frequency Percent frequency


(%)
Under 1 hour 64 0.32 32

25
1 - 3 hours 80 0.4 40
3 - 5 hours 34 0.17 17
Over 5 hours 22 0.11 11
Total 200 1 100

According to the survey, most participating students in the survey spend 1 – 3 hours using
TikTok have a high level, with 40% of all respondents, indicating that they also spend a
considerable amount of time using this platform. On the other hand, 32% of participants use
TikTok for less than 1 hour, showing that there is also a relatively significant number of
students who have little interest in TikTok. The percentage of students spending a lot of time
(3 – 5 hours and over 5 hours) on this platform is not too many, at 17% and 11% respectively.

4.1.5. Purchasing habits

Table 4.5. Statistics on making purchases through TikTok Shop by students.

Purchasing habits Frequency Relative Frequency Percent Frequency

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(%)
Never 26 0.13 13
Seldom 68 0.34 34
Sometimes 74 0.37 37
Frequent 31 0.155 15.5
Always 1 0.005 0.5
Total 200 1 100

This graph shows the frequency of times that students in Ho Chi Minh City choose TikTok
Shop for shopping online. Through that, we can see that almost all students who did the
survey sometimes make purchases through TikTok Shop, with 37% accounting for the
highest proportion.

The second highest rate proportion belongs to students, who do not consider TikTok Shop as
a priority when buying, just seldom shop on that platform (34%). The next two positions are
for students who frequent and never buy products on TikTok Shop, accounting for 15.5% and
13%, respectively. It is worth noting that only 1 student out of 200 surveyed always chooses
to trust TikTok Shop when they need to order online.

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Through the above statistics, it shows that the TikTok Shop platform has not yet attracted and
won the trust of students having demands for shopping online. This platform still needs to
improve to be able to compete with other competitors in the market.

4.1.6. Preferred products

Table 4.6. Statistics of the items on the TikTok Shop that have been purchased and used
by students.

Preferred products Frequency Relative Frequency Percent Frequency


(%)
Fashion 138 0.427 42.7
Cosmetics 96 0.297 29.7
Housewares 49 0.152 15.2
Do not buy and use 23 0.071 7.1
Others 17 0.053 5.3
Total 323 1 100

This graph shows the frequency of items that frequently appear in students' shopping carts
when ordering on TikTok Shop. The items with the highest appearance rate and an

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overwhelming percentage compared to other items, specifically 42.7%, are clothing and
fashion items. This is understandable because clothes are an essential thing in life; both men
and women need to have them. Furthermore, there are many KOLs/KOCs with beautiful
figures posting videos/clips with impressive clothes at affordable prices to help increase reach
among users.

The next most popular item is cosmetics for beauty purposes that help increase confidence
when going out, accounting for 29.7%. This ratio is partly due to the majority of survey
participants being female, so the large number of cosmetic options in the shopping cart is not
difficult to explain.

Household products and other items not mentioned account for a small proportion of 15.2 and
5.3, respectively. The numbers show that these products have not attracted customers; they
have not found the attractiveness of price or quality of products on TikTok Shop compared to
other platforms. Even up to 7.1% of students do not buy and use TikTok Shop. Therefore,
although TikTok may have strong coverage and be known by many young people, the
products on the TikTok Shop are not really of good quality and attractive enough to attract
users when competing with other sites.

4.1.7. Monthly income/allowance

Table 4.7. Statistics on the monthly income/allowance of students.

In this survey, our group of students surveyed 200 students in Ho Chi Minh City who have
the habit of buying online on the TikTok Shop platform about their average monthly income,
income, etc. This includes family allowances, wages from overtime jobs and other income.

Monthly Frequency Relative Frequency Percent Frequency


income/allowance (%)
(VNĐ)

29
Under 1.000.000 52 0.26 26
1.000.000 – 3.000.000 74 0.37 37
3.000.000 – 5.000.000 44 0.22 22
Over 5.000.000 30 0.15 15
Total 200 1 100

This graph shows the frequency of monthly income for young people today. The income
level with the highest percentage is from 1 million VND to 3 million VND, with 37%. This
number shows that this is the average and most popular income level among students today.
Because today, almost all students find themselves a part-time job, such as serving at a cafe
or restaurant, to work in their free time with the purpose of earning extra money to help their
parents.

The income level under 1 million VND accounts for the second highest rate of 26% with 52
students. This level of income may be for students who are still mainly dependent on their
family's finances, focusing on studying and not working outside to avoid affecting their
studies.

The next two positions are students earning 3 million to 5 million VND and over 5 million
VND, with rates of 22% and 15%, respectively. In many cases, students want to gain more
practical experience along with studying their majors at school, so they look for outside jobs

30
with a low average income. With this income, students can help their families a lot, such as
by paying rent and meeting other needs.

4.1.8. Price willing to pay for an item on TikTok Shop

Table 4.8. Statistics on the maximum amount of money a consumer spends shopping on
TikTok Shop.

Price willing to pay for an Frequency Relative Frequency Percent Frequency


item on TikTok Shop (VND) (%)

None 16 0.08 8

Under 100.000 VND 44 0.22 22

100.000 VND - 300.000 VND 105 0.52 52

300.000 VND - 500.000 VND 26 0.13 13

Over 500.000 VND 9 0.05 5

Total 200 1 100

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The graph shows that a large number of students spend about 100.000 - 300.000 VND for a
good which accounts for over half. This can be known that they don’t have a lot of money
and still depend on family if TikTok releases more products at this amount of money or
lower.

Just a small percent of students spend from 300.000 - 500.000 VND or over 500.000
VND.This can be seen that these students have jobs and they have money for individual
purposes. Most students would spend a lot of money on clothes and household appliances.

4.1.9. Payment method

Table 4.9. Statistics on the payment methods that students commonly use.

Payment method Frequency Relative Frequency Percent Frequency


(%)

All 1 0.01 1

Banking Account 71 0.35 35

Cash 83 0.42 42

E-Wallet (MOMO, 45 0.22 22


ZaloPay,...)

Total 200 1 100

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A large percent of students use cash for payment (42%). It shows that in the technology boom
period, cash still has for itself a position for payment especially in vietnam cash is still very
popular as one of the most commonly used payment methods

Living in the technology boom period so students will apply some technology in order to
make paying more convenient. Banking account and E-Wallet occupy 35% and 42%
respectively. This means that these payment methods are very convenience and would be
used for paying more in the future. TikTok Shop has apply some marketing strategies to
promote customers use these payment methods more such as vouchers and free shipping.

4.1.10. Reason for using TikTok Shop

Table 4.10. Statistics on the reason why students use TikTok Shop.

33
Reasons Frequency Relative Frequency Percent Frequency
(%)

Convenience 129 0.32 32

Good price policy 129 0.32 32

Many shopping 76 0.19 19


recommendations

Delivery service 25 0.06 6

Trusted product 32 0.08 8


quality

Do not use 14 0.02 2

Others 2 0.01 1

Total 407 1 100

Looking at the graph, it can be seen that good price policy and convenience is the most favor
reason why student choose to use TikTok Shop which account for 32%, followed is many
shopping recommendation (19%), delivery service (6%), trusted product quality (8%), others
34
are 3%. These proportions illustrate that TikTok Shop is doing really well in order to gain
attention from customers.

However, the delivery service and the quality of the product may not meet the needs of the
customer. The creators should focus more on the quality of the products and enhance the
transportation to hold more customers.

A small percent of customers still don’t use TikTok Shop so they should do some marketing
amount to attract these customers.

4.1.11. Students' interest level in TikTok Shop’s monthly sale event.

Table 4.11. Statistics on the students interesting level in TikTok Shop’s monthly sale
event.

Level of interesting Frequency Relative Frequency Percent Frequency


(%)

Really interested 52 0.26 26

Interested 49 0.24 24

Normal 32 0.16 16

Not really interested 44 0.22 22

Really interested 23 0.12 12

Total 200 1 100

35
Looking at the bar chart, it can be clearly seen that TikTok policy is really good. Half of
students taking the survey are really interested (26%) and interested (24%). TikTok should do
more sale events to promote more customers.

However, the number of students who are not interested is still high which accounts for 34%,
this means that the sale event otherwise has some reverse impact on customers. TikTok
should do some variety to attract these customers and the normal ones.

4.1.12. Factors affecting students' shopping decisions

Table 4.12. Statistics on factors affecting students’ shopping on TikTok Shop.

36
Influencing factors Frequency Relative frequency Percent frequency
(%)
Price of the products 141 0.333 33.3
Quality of the products 110 0.259 25.9
Diversity of products on 90 0.212 21.2
the platform
Reviews of Tiktokers 67 0.158 15.8
Do not use 15 0.035 3.5
Others 1 0.002 0.2
Total 424 1 100

In general, the price factor has the most influence on students' shopping decisions, accounting
for 33.3% of the total votes. This is understandable because most students do not have a high

37
income, so they need to consider the price when deciding to buy something to avoid spending
too much of their income.

Besides, other factors such as product quality, and variety of product types,... are also very
noticeable and influence students' shopping decisions, accounting for 25.9% and 21.2%
respectively.

4.1.13. Other E-commerce platforms

Table 4.13. Statistics on other online shopping platforms that students use.

E-commerce Frequency Relative frequency Percent frequency


platforms (%)

Shopee 189 0.735 73.5

Lazada 43 0.167 16.7

Tiki 23 0.089 8.9

Others 2 0.008 0.8

Total 257 1 100

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Vietnamese businesses have been dynamic and adapted to the current context, so they
actively exploit the potential of the online trading and buying market by launching a series of
e-commerce platforms. That has made this market extremely competitive.

TikTok Shop is an emerging e-commerce platform that attracts much attention from the
youth. However, gaining market share from other marketplaces is not easy because along
with TikTok Shop, consumers (specifically in this survey, students) still have many other
choices. Among them, Shopee is a typical business, with leading monthly web access on the
e-commerce map.

Up to 73.5% of votes for Shoppee as the favorite place to shop outside of TikTok, second is
Lazada with 16.7%. It can be seen that these two platforms are two big barriers that TikTok
Shop needs to overcome.

4.1.14. Factors that students are not satisfied with when experiencing online shopping
at TikTok Shop

Table 4.14. Statistics on factors that students are not satisfied with when experiencing
online shopping at TikTok Shop.

39
Unsatisfactory factors Frequency Relative frequency Percent frequency
(%)

Slow delivery 54 0.213 21.3

No inspection allowed 56 0.220 22.0

Unqualified 42 0.165 16.5

Few discount vouchers 85 0.335 33.5

Others 17 0.067 6.7

Total 254 1 100

Besides its advantages, Shopee still has limitations and causes consumers to have a not really
good experience. One of the biggest minus points is the limited promotion program and few
discount codes. Nearly 90/200 students said it was the reason that reduced their satisfaction.

40
Besides, other reasons such as slow delivery, no inspection allowed ... were also found by
many students to contribute to their bad experiences, accounting for over 20%.

4.1.15. Recommendations for improvement

Recommendations for Frequency Relative frequency Percent frequency


improvement (%)

Product information 96 0.253 25.3


improvements

Product quality 95 0.251 25.1

Quickly resolve 95 0.251 25.1


customer complaints

Tighten regulations 83 0.219 21.9


when cooperating with
delivery units

Others 10 0.026 2.6

Total 379 1 100

Table 4.15. Statistics on factors that students want TikTok Shop to improve.

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TikTok Shop's strategies to attract customers still have many limitations, and measures need
to be taken to overcome or improve the above situations. In general, the majority of students
want TikTok Shop to improve in terms of product information, and product quality and
quickly resolve customer complaints. Besides, tightening regulations when cooperating with
delivery units to ensure fast and effective delivery speed is also an important issue that needs
to be improved by TikTok Shop.

4.2. Statistical inference

4.2.1. Regarding one population

Estimate the average frequency of purchases on TikTok Shop by students.

According to Figure 5, we have the table of frequency of purchases on TikTok Shop by


students on a 5-point scale:

42
Purchasing habits Frequency
1 26
2 68
3 74
4 31
5 1
Total 200

According to the table above, we have:

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Box plot about the frequency of shopping on TikTok Shop by students.

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4.2.2. Regarding two populations

Based on the survey data on Shopping habits on the e-commerce platform TikTok SHOP, we
divide the number of students by gender, including Male and Female. After synthesizing the
data, it was found that the Frequency of shopping rating on a 5-point scale between Males
and Females is not the same and not equivalent. We inferred to investigate the difference in
frequency of shopping on a 5-point scale of male and female students.

We have the following table:

Frequency of Shopping Male Female


1 16 10
2 23 45
3 16 58
4 4 27
5 0 1
Total 200

- Call x1 = average frequency of Shopping of Male

- Call x2 = average frequency of Shopping of Female

- s1 = Standard deviation of Male

- s2 = Standard deviation of Female

We have the following data:

Female Male

Sample size n1 = 141 n2 = 59

Sample mean x1 = 2.74 x2 = 2.742.16

Sample Standard deviation s1 = 0.27 s2 = 0.48

4.2.3. Interval estimation about the difference between two population means

- Confidece coefficient is 95% so 𝛼 = 0.05

- Calculate the degrees of freedom: Distribute t with two independent random samples:

45
We round down to 73 degrees of freedom for a larger value and a more conservative interval
estimate.

Use a t-distribution table with degrees of freedom of 73, we found that t = 1.96

The estimated mean difference between the two populations is:

0.58 ± 0.13

So, the point estimate of the overall mean difference is 0.58. Marginal error is 0.54, and
estimate the interval with confidence coefficient 95% which is from 0.58 - 0.13 = 0.45 to
0.58 + 0.13 = 0.71

4.2.4. Hypothesis tests about the difference between two population means

After researching to evaluate the difference in frequency of purchases on TikTok Shop by


students on a 5-point scale, there is a difference: The difference between the two surveyed
sexes which are Male and Female. The difference between the mean score on a 5-point scale
was used to assess the difference in frequency of shopping levels in both sexes. We have the
following population means:

 μ1 = average score on frequency of Shopping of Female students on TikTok Shop


 μ2 = average score on frequency of Shopping of Male students on TikTok Shop

According to the proposed problem, we test the following hypothesis:


 H0: μ1 - μ2 = 0 (No difference in frequency of Shopping on TikTok Shop between
Female and Male students)
 H𝛼: μ1 - μ2 ≠ 0 (There is a difference in frequency of Shopping on TikTok Shop
between Female and Male students)

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Level of significance 𝛼 = 0.05, according to the calculation above:
μ1 - μ2 = (0.45; 0.71) > 0
μ1 - μ2 > 0 ⇒ Rejection of H0

In conclusion, with 95% confidence, the average frequency of shopping on TikTok Shop
between Male and Female is different. In general, the average frequency of Females is still
greater than the average frequency of Males, but this difference is not excessive.

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS

5.1. Conclusion

This essay presents data and frequency statistics on purchasing behavior on TikTok Shop
among students in Ho Chi Minh City. Through that, we can gain deep insights into the
shopping habits of students in Ho Chi Minh City on that commercial platform.

The survey results show that TikTok Shop is still not really popular and attracts many
students because 71% of survey participants only rarely and sometimes choose it to perform
online shopping. TikTok Shop has not attracted many customers because there are many bad

47
factors that affect purchasing decisions, such as slow delivery, no inspection allowed, being
unqualified, a few discount vouchers, etc. But the largest percentage is because there are not
many discount vouchers compared to other platforms, with 33.5%. Moreover, because they
are still students, most of them still depend on their family's finances, and the amount of
money they earn is not much, mainly ranging from 1 million to 3 million VND, with 74 out
of 200 voters. Therefore, TikTok Shop needs to properly consider the relationship between
price and product. And currently, the most popular products on TikTok Shop are clothes and
beautiful designs that attract users. But that doesn't mean it only focuses on clothes, TikTok
Shop also needs to have effective strategies to help increase sales of other products, reaching
more young people. Besides, the platform also needs to improve things that customers
suggest quickly, avoiding affecting the customer experience. According to the opinions of
students participating in the survey, the most influential factor causing a bad experience when
shopping online on the TikTok Shop platform is too few discount codes, with 33.5% of
voters. These research results have important implications for e-commerce platforms,
especially if their main customers are students, and they need to improve to provide high-
quality products and services that are suitable for students' needs and affordability.

With the strong development of e-commerce, the shopping habits of consumers, especially
students, are changing significantly. This research has contributed to providing new insights
into students' shopping trends on the TikTok Shop platform. These research results can be
used as a basis for the TikTok Shop e-commerce platform to develop effective marketing and
sales strategies to meet the needs of this potential customer group.

5.2. Recommendations

5.2.1. Recommendations on the quality and information of the products

In today's world, product quality is considered one of the key factors determining the success
of a business and a measure of customer trust in the business. Therefore, improving product
quality is of utmost importance. TikTok Shop needs to be more rigorous in the inspection
process of goods in order to meet customer needs and improve products to increase the
credibility of the sales channel. In addition, transparency in product information will make
customers feel more at ease when ordering products through the online space that they have
never seen in person outside. This makes customers put more trust and peace of mind when
they can understand the specific uses and how to use the products they order.

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5.2.2. Recommendations on the delivery capacity

Time and preservation are important factors before the product is delivered to customers.
Hence, the quality of transportation is a key factor in making customers feel satisfied with the
product.

In addition, when the quality of transportation is improved, it also leads to the improvement
of the transportation companies, which will make the connection between the companies and
customers closer.

5.2.3. Recommendations on the ability to solve customer complaints

Customer satisfaction is essential for business success. TikTok Shop can improve customer
satisfaction by quickly and effectively resolving customer complaints. This will help TikTok
Shop build customer trust, increase sales, and gain a stronger foothold in the market.

REFERENCES
Apasrawirote, Darlin (2022). Factors Influencing the Behavioral and Purchase Intention on
Live-streaming Shopping. Asian Journal of Business Research. 2022, Vol. 12 Issue 1, p39-
56. 18p

Minh Anh, 2023. Vì sao người Việt thích mua hàng online trên Tiktok, cafef.vn - Trang
thông tin điện tử tổng hợp [online] Tại địa chỉ:

https://cafef.vn/vi-sao-nguoi-viet-thich-mua-hang-online-tren-tiktok-
188230927095302959.chn [accessed 05/12/2023]

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