GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS
Student name: Student ID
Nguyễn Vũ Đăng Bình 22002709
number:
Student name: Student ID
Nguyễn Sông Hương 22002831
number:
Student name: Student ID
Lê Trần Bảo Ngân 22003439
number:
Student name: Student ID
Nguyễn Phúc Phương Nghi 22002577
number:
Student name: Student ID
Lê Bích Phượng 22003288
number:
Student ID
Nguyễn Đỗ Minh Uyên 22003891
Student name: number:

UNIT AND TUTORIAL DETAILS

Unit name: Consumer Behavior Unit number: CB-T223WSB-3

Tutorial/Lecture: Class day and time: Tue 8:00-11:15
Lecturer or Tutor name: Đinh Tiên Minh

ASSIGNMENT DETAILS

Title: Group Report

Date
Length: 2097 words Due date: July 29, 2023 submitted: July 28, 2023

DECLARATION

I hold a copy of this assignment if the original is lost or damaged.


I hereby certify that no part of this assignment or product has been copied from any other

 student’s work or from any other source except where due acknowledgement is made in the
assignment.
 I hereby certify that no part of this assignment or product has been submitted by me in

 another (previous or current) assessment, except where appropriately referenced, and with
prior permission from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person

 except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator
concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software

 programs for the purpose of detecting possible plagiarism (which may retain a copy on its
database for future plagiarism checking).

Student’s signature: Binh

Student’s signature: Huong
Student’s signature: Ngan
Student’s signature: Nghi
Student’s signature: Phuong
Student’s signature: Uyen
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration
has not been signed.
Western Sydney University
CB-T223WSB-3

Teacher: Đinh Tiên Minh

Email: dinhtienminh@ueh.edu.vn

GROUP 5 REPORT
TikTok Shop Case Study

1
 TABLE OF CONTENTS

I. Market overview...........................................................................................................................3

II. SWOT analysis of the brand groups choose and the key competitor..........................................3

III. The problems and objectives of the company............................................................................4

IV. The research objectives.............................................................................................................. 5

V. Use of the theory behind the chosen topics that can support to define the data to collect.......... 5

VI. Summary of the focus group......................................................................................................6

VII. The data analysis and consumer insights................................................................................. 6

VIII. A set of marketing considerations that should be taken into account by organizations
targeting the segment....................................................................................................................... 8

IX. Reference................................................................................................................................ 10

X. Appendix.................................................................................................................................. 11

2
 I. Market overview
ByteDance, a tech business established in Beijing, owns the social media app TikTok for sharing
videos (TikTok, 2019b). TikTok made its official launch in 2017 as the foreign version of the
well-known Chinese social media site Douyin, quickly achieved global recognition (Ceci, 2021).
In 2022, TikTok introduced a new shopping platform called TikTok Shop which offers the
customer the shopping option (TikTok, 2019c). It enables brands, businesses to advertise and sell
things directly on TikTok. Products can be sold through the product video, in-feed and
livestream. Nowadays,TikTok has some advantages as a marketing tool to attract customers to
use TikTokShop because of its enormous user base.

II. SWOT analysis of the brand groups choose and the key competitor

TikTok Shop (Detailed version in Appendix E)

Strengths Weaknesses

- Large market presence (Doyle, 2020)
- Collaboration with influencers: TikTok
has a large number of influencers who help
to raise brand awareness. (Parker, 2022).
- In-app purchasing (Parker, 2022).
- Personalized content: TikTok employs
tailored advertising to provide customers
with advertisements that are more relevant
to their interests (TikTok, 2019a)
- Tucker (2022) claims that TikTok's
search engine frequently provides
incorrect information.
- Lack of quality control (Báo
Công Thương, 2023).
- Limited Shipping Options:
TikTok Shop does not allow
customers to select their preferred
delivery method.

Opportunities Threats

- Global expansion - Strong competition from Shopee

and Lazada, as well as Instagram
Shops and Facebook Marketplace.

3
 Facebook Marketplace (Detailed version in Appendix F)

Strengths Weaknesses

- Strong brand with global presence - - Little design and branding

the 17th most valuable brand in 2022 by
Interbrand (Interbrand, 2022).
- Loyal customer base: The daily active
users stand at 1.908 billion (Dean,
2022).
- Integrated Ecosystem: integrating with
other Facebook tools like Messenger,
Instagram, and WhatsApp (Salinas,
2019).
options: can be problematic for
companies trying to deliver
distinctive buying experiences.
- Data Privacy Issues: Due to
Facebook's history of privacy
scandals (Newcomb, 2018),
consumers may be hesitant to
provide financial and personal
information while making purchases
on the network.

Opportunities Threats

- Expanding Market: Meta continues to - Regulations Challenges: Due to

expand its user base and roll out new governmental attention to data
services (Kemp, 2022). privacy, consumer protection, and
antitrust issues, Facebook Shop may
be subject to restrictions or penalties.
- Competition from other online
marketplace

III. The problems and objectives of the company

1. The Company’s Objective
In general, the objective of TikTok Shop was to leverage the platform's massive user base
and engagement to create a new e-commerce experience. By integrating shopping
functionalities into the app, TikTok aimed to enable users to discover and purchase
products directly from the platform (TikTok Shop Academy, 2022a).
2. The Current Problems of The Company
a. “Low-quality” products
Behind thestrong growth in a short time, this boom has resulted in a few notable issues,
including the spread of counterfeit, fake, and low-quality goods of unknown origin (Báo
Lao Động, 2023). TikTok Shop's policy requires that the products sold are authentic with

4
 product quality certificates and brand authorization (TikTok Shop Academy, 2023). Many
imitations of famous brands bypass the verified TikTok Shop and continue to appear on
the platform with simple tricks (Báo Công Thương, 2023). Furthermore, the products that
are prohibited from sale, such as functional foods and drugs, are sold and counterfeited at
low prices (Báo Tuổi Trẻ Thủ Đô, 2023). This issue of fake and poor-quality goods
negatively influences the user's buying experience and the reliability of TikTok Shop.
b. Inconvenient Delivery System
TikTok Shop currently has three shipping companies: J&T Express, Giao Hang Tiet Kiem
and Best Express (Trang & Tung, 2023). Neither buyers nor sellers are responsible for
deciding the Logistic partner, excluding the customers selected by TikTok Shop, instead,
the order fulfillment is done by TikTok Shop’s Logistic Service (TikTok Shop Academy,
2022). As a result, no delivery option can result in inconvenient online shopping and a
loss of potential customers.

IV. The research objectives

The purpose of this research is to gain a deeper understanding of how consumers assess
the product quality of TikTok Shop’s products and the factors that influence consumer
satisfaction and dissatisfaction with TikTok Shop's delivery attributes. By analyzing the
data from an interview, we can get customer insight and recommend more effective
marketing strategies for TikTok Shop.

V. Use of the theory behind the chosen topics that can support to define the
data to collect
1. Problem 1
Initially, the "Motivation, Personality, and Emotion" theory will be applied to grasp the
motivations and needs driving customers to use the platform. This will shed light on why
consumers choose TikTok Shop and their overall perceptions of the business. The three
components of cognitive, affective, and behavioral component (Attitude and Influencing
Attitude) will be considered to assess consumer attitudes effectively. Next, the
"Alternative Evaluation and Selection" theory will be employed to explore how
customers evaluate products and services. By applying this theory, we can gain insights

5
 into customer opinions regarding product quality, pinpointing areas for improvement in
TikTok Shop's offerings. Lastly, the "Group Influences on Consumer Behavior" theory
will be utilized to comprehend the impact of communication within groups on consumer
decisions. Understanding word-of-mouth (WOM) and trust placed in personal sources
like family and friends will provide valuable insights into how customers' opinions about
product quality are influenced.
2. Problems 2
We utilize the theory “determinants and outcomes of satisfaction and dissatisfaction” to
impartially investigate the key factors that influence customer satisfaction and loyalty,
going beyond product quality. Furthermore, it brings to the forefront the significance of
an efficient delivery system in satisfying consumers and competing effectively with other
shopping platforms. Besides, the theory “five characteristics of situation and their
influence on consumption” offers a comprehensive insight into the interplay between time
availability, the decision-making process, and the delivery service. It allows us to
reinforce the importance of reliable and prompt shipping methods.

VI. Summary of the focus group

Based on figures provided by Nover (2020), 80% of TikTok users are between the ages of
16-34. That's why we held a focus group interview with 7 respondents (Appendix B)
from 19-34 years old, the age group who often access the online shopping utility, TikTok
Shop. At the same time, the selected respondents are customers who already used TikTok
Shop and other shopping apps like Lazada, Shoppee to have a solid assessment of the
buying experience. The focus group interview was conducted via Google Meet with the
participation of all 6 members of groups 5 and 7 respondents. The goal of the interview is
to better understand the customer's evaluation of the quality of products sold on TikTok
Shop and the business' delivery service system.

VII. The data analysis and consumer insights

Insight 1: Consumers only use TikTok Shop to try out as it is a new ecommerce

6
platform, and currently providing discount and promotional codes for consumers
that help reduce the cost of their orders. However, they do not entirely trust the
quality of products advertised on this platform, which are mainly promoted by Key
Opinion Leaders (KOLs).

When asked about the reasons for using TikTok Shop, 6 out of 7 respondents stated that it
is because TikTok Shop is a new ecommerce platform that offers numerous
promotional codes, discounts, and free shipping (Appendix D). A representative
response that can illustrate this insight can be taken from Respondent 1 (Appendix B): "I
have placed 2-3 orders on TikTok Shop, and just like others, I have several discount
codes that I want to try using" (Appendix D).

Furthermore, it is evident that TikTok Shop products marketing approach is facing

challenges, as 5 out of 7 respondents claimed they are not influenced by marketing
messages on TikTok (Appendix D). One of the respondents, Respondent 3 (Appendix B)
did not hesitate to share his personal feelings about product advertisement videos on Tik
Tok: "Those marketing messages don't affect me much, and if they appear too
frequently, I find them quite annoying" (Appendix D). Despite the fact that Key Opinion
Leaders (KOLs) are the primary means of product advertisement for sellers on TikTok
Shop, when asked whether they trust KOL reviews, 4 out of 7 respondents expressed their
lack of trust in KOLs (Appendix D). Respondent 4 (Appendix B) firmly expressed his
lack of trust in KOLs: "I don't trust KOLs. Because they often don't provide genuine
reviews. They usually have sales-related motives, so they cannot accurately assess the
quality of a product 100%. Secondly, they are afraid to criticize a product that is
genuinely not good, and they will find some positive aspects to praise instead of daring to
point out its weaknesses" (Appendix D). There is 1 respondent, Respondent 5 (Appendix
B), expressed her trust in only one KOL - Ms. Vo Ha Linh - a KOL known for her
authenticity in reviewing products without accepting sponsorships from brands to give
positive reviews according to Vo Ha (2023) in 2023 (Appendix D).

Insight 2: Consumers purchasing from TikTok Shop are dissatisfied with the
delivery process of this e-commerce platform due to limited options in choosing both

7
the delivery service provider for their orders and the delivery timeframe.

Regarding the issue of delivery on TikTok Shop, all respondents expressed the
expectation that TikTok would diversify the delivery service providers for orders made
on this platform (Appendix D).

To explain this, 4 out of 7 respondents stated that they have preferred delivery service
brands they trust more, and they want these brands to handle their orders (Appendix D).
One of the respondents, Respondent 4 (Appendix B), shared: "I like certain delivery
services like Viettel Post or Giao Hang Tiet Kiem, and I don't have a positive impression
of other providers, so it's essential for me to have the option to choose" (Appendix D).
Additionally, Respondent 2 (Appendix B) shared his online shopping experience: "After
some orders, I and the delivery person of my favorite delivery service became more
familiar. Whenever the orders arrive, it feels more comfortable” (Appendix D).

Another explanation for the demand for diverse delivery service options is that consumers
are concerned about the cost of shipping. 2 out of 7 respondents mentioned that they do
not focus on the brand; instead, they care about the price offered by the provider
(Appendix D). To elaborate on this matter, Respondent 6 (Appendix B) said: "I want to
see which service is cheaper and compare different services. It feels like I have more
control over my purchases rather than leaving the decision entirely to TikTok Shop"
(Appendix D).

In addition to the need for diverse delivery service options, consumers are also
dissatisfied with the lack of choices and control regarding delivery times on TikTok
Shop (Appendix D).

Specifically, 4 out of 7 respondents stated that they cannot track the delivery times of
their orders on TikTok Shop (Appendix D). This inconvenience was highlighted by
Respondent 4 (Appendix B) when asked about his shopping experience on TikTok Shop:
"I find it quite challenging to track the delivery process because other platforms usually
keep me informed when I click on my placed orders, but with TikTok Shop, I have to
search for a long time before finding the information" (Appendix D). Moreover, when

8
 faced with a situation requiring urgent delivery, all respondents chose not to use TikTok
Shop since it does not provide instant delivery (Appendix D). This inconvenience led to
an unsatisfactory online shopping experience for Respondent 1 (Appendix B): "During
high school, I studied in a boarding school where cell phones were not allowed. I placed
orders from home, but TikTok Shop did not offer instant delivery. I asked for the support
of the shop, but my order arrived much later than expected" (Appendix D).

VIII. A set of marketing considerations that should be taken into account by

organizations targeting the segment
1. Target in creating a reliable shopping site
TikTok Shop should provide consumers with a reliable shopping site by ensuring the
quality and information of products selling on the platform. They can manage intensely
policy related to “product authenticity” for all sellers and offer the “money-back
guarantee” or a system where consumers can report the low quality products. Besides
that, creating a group of reliable KOLs or advisers to support the customers in
determining the trustworthiness of the information and assess how effectively that advise
is related to their particular situation (Spenner and Freeman, 2012).
2. Change in the delivery method
TikTok Shop should consider collaborating with many services to provide the customers
with a variety of options to choose their delivery method (Indeed Editorial Team, 2023).
By doing this, they can improve not only the quality but also the speed of shipping
systems. Moreover, they can reduce the dependence on one service provider in case there
is a disruption (Indeed Editorial Team, 2023).

9
IX. Reference

Báo Công Thương. (2023, May 7). Kỳ 2: TikTok Shop -“ma trận” hàng giả, hàng nhái “lòe”

người tiêu dùng | Báo Công Thương. Báo Công Thương Điện Tử, Kinh Tế, Chính Trị, Xã

Hội.

https://congthuong.vn/ky-2-tiktok-shop-ma-tran-hang-gia-hang-nhai-loe-nguoi-tieu-dung

-252972.html

Báo Lao Động. (2023). Đồ nhái hàng hiệu, giá rẻ bèo tràn lan trên TikTok. Laodong.vn.

https://laodong.vn/xa-hoi/do-nhai-hang-hieu-gia-re-beo-tran-lan-tren-tiktok-1186202.ldo

Báo Tuổi Trẻ Thủ Đô. (2023, June 16). Cẩn trọng với thuốc bổ, thực phẩm chức năng bán trên

TikTok. Báo Tuổi Trẻ Thủ Đô.

https://tuoitrethudo.com.vn/can-trong-voi-thuoc-bo-thuc-pham-chuc-nang-ban-tren-tiktok

-226980.html

Ceci, L. (2021). Topic: TikTok. Www.statista.com. https://www.statista.com/topics/6077/tiktok/

Chiang, S. (2023, May 26). TikTok Shop, a rising threat to Shopee and Lazada in Southeast Asia.

CNBC.

https://www.cnbc.com/2023/05/26/tiktok-shop-a-rising-threat-to-shopee-and-lazada-in-so

utheast-asia.html

Dean, B. (2022, January 5). How Many People Use Facebook In 2022? Backlinko.

https://backlinko.com/facebook-users

Doyle, B. (2020, October 6). TikTok Statistics - Everything You Need to Know [Sept 2020

Update]. Wallaroo Media.

https://wallaroomedia.com/blog/social-media/tiktok-statistics/#:~:text=TikTok%20is%20

available%20in%20over

10
Indeed Editorial Team. (2023, February 28). 10 Reasons Why Collaboration Is Important in the

Workplace. Indeed Career Guide.

https://www.indeed.com/career-advice/career-development/why-is-collaboration-importa

nt

Interbrand . (2022). Facebook. Interbrand. https://interbrand.com/best-global-brands/facebook/

Kemp, S. (2022, January 26). Digital 2022: The Potential Future of Facebook. DataReportal –

Global Digital Insights. https://datareportal.com/reports/digital-2022-future-of-facebook

Mothersbaugh, D. L., & Hawkins, D. I. (2016). Consumer behavior building marketing strategy.

New York, Ny Mcgraw-Hill Education C.

Newcomb, A. (2018, March 24). A timeline of Facebook’s privacy issues — and its responses.

NBC News.

https://www.nbcnews.com/tech/social-media/timeline-facebook-s-privacy-issues-its-resp

onses-n859651

Nguyen, D. H., de Leeuw, S., Dullaert, W., & Foubert, B. P. J. (2019). What Is the Right

Delivery Option for You? Consumer Preferences for Delivery Attributes in Online

Retailing. Journal of Business Logistics, 40(4), 299–321.

https://doi.org/10.1111/jbl.12210

Nover, S. (2020, May 26). TikTok Is Growing Up, and So Are Its Users. ADWEEK.

https://www.adweek.com/performance-marketing/tiktok-is-growing-up-and-so-are-its-use

rs/

Parker, B. (2022, October 28). TikTok SWOT Analysis. Business Strategy Hub.

https://bstrategyhub.com/tiktok-swot-analysis/

11
Salinas, S. (2019, January 25). Facebook is integrating the messaging functions of Messenger,

Instagram and WhatsApp. CNBC.

https://www.cnbc.com/2019/01/25/facebook-reportedly-integrating-messenger-instagram

-and-whatsapp.html

Spenner, P., & Freeman, K. (2012, May). To Keep Your Customers, Keep It Simple. Harvard

Business Review. https://hbr.org/2012/05/to-keep-your-customers-keep-it-simple

TikTok. (2019a, August 16). Changes to personalised advertising on TikTok. Newsroom |

TikTok. https://newsroom.tiktok.com/en-eu/changes-personalised-ads-eu

TikTok. (2019b, August 16). The Truth About TikTok: Separating Fact from Fiction. Newsroom |

TikTok. https://newsroom.tiktok.com/en-au/the-truth-about-tiktok

TikTok. (2019c, August 16). TikTok chính thức ra mắt TikTok Shop tại Việt Nam - Mang đến bộ

giải pháp thương mại điện tử toàn diện cho người dùng trong nước. Newsroom | TikTok.

https://newsroom.tiktok.com/vi-vn/ra-mat-tiktok-shop-vietnam

TikTok Shop Academy. (2022a, November 21). TikTok Shop Content Guidelines.

Seller-Vn.tiktok.com.

https://seller-vn.tiktok.com/university/essay?knowledge_id=10008396&identity=1

TikTok Shop Academy. (2022b, December 18). TikTok Shop Customer Order Shipping

Guidelines. Seller-Vn.tiktok.com.

https://seller-vn.tiktok.com/university/essay?knowledge_id=10008563&role=1&identity=

TikTok Shop Academy. (2023, May 29). Brand Authorisation Rejection - Reasons and Solutions.

Seller-Vn.tiktok.com.

12
 https://seller-vn.tiktok.com/university/essay?knowledge_id=10018826&identity=1&from

_article=1

Trang , T., & Tung, L. (2023, February 23). Thách thức của TikTok Shop. BizLIVE.vn - Nhịp

Sống Doanh Nghiệp.

https://nhipsongkinhdoanh.vn/thach-thuc-cua-tiktok-shop-post3107213.html#:~:text=Tik

Tok%20Shop%20hi%E1%BB%87n%20c%C3%B3%203

Tucker, E. (2022, September 18). TikTok’s search engine repeatedly delivers misinformation to

its majority-young user base, report says | CNN Business. CNN.

https://edition.cnn.com/2022/09/18/business/tiktok-search-engine-misinformation/index.h

tml

Vo Ha, L. (2023, June 13). Võ Hà Linh - Tiểu sử, Sự nghiệp và đời tư của Chiến thần review cực

kỳ uy tín - Doanh Nghiệp Việt Nam toàn cầu. https://dvt.vn/vo-ha-linh/

13
X. Appendix

Appendix A. Theory applied and suggested questions

Problem Theory Why? How? ( Questions for group

discussion )

Problem 1: Chapter 10: Motivation, To identify the - How often do you buy
“Low-quality” Personality, and Emotion motivation and need products online?
products LO1: The nature of that force customers to - What causes you the habit
motivation use TikTok shop of shopping online?
- Have you ever bought
products on TikTok Shop?
→ If yes, what urge you to
buy that products (since it’s a
new platform)
→ If not, do you shop online
somewhere else (Shopee,
Lazada,...) → Why didn’t you
give it a try

Chapter 11: Attitudes To examine the effect - What information did you
and Influencing Attitudes of attitude on search before purchasing a
LO2: Attitude component consumer behavior product from the TikTok
shop?
- How does the product's
design and aesthetics pique
your attention and make you
want to purchase it?

Chapter 16. Alternative To gain a deeper - What are the most important
Evaluation and Selection understanding of how factors to you when
LO4. Individual TikTok Shop's considering the quality of a
Judgment and Evaluative consumers assess product on TikTok Shop?
Criteria product quality and - How would you rate the
how this can be used importance of the product
to develop a more attributes that you have just
effective marketing answered (price, brand
strategy name, product features,
performance, country of
origin, etc.)?
- What are your personal
experiences with products
that have been high or low
quality?
- What marketing messages
on TikTok Shop have

14
 influenced your judgments
of product quality in the
past?

Chapter 7: Group To understand how - Do you get influenced by

Influences on Consumer WOM and opinion WOM (word-of-mouth
Behavior leadership affect the communication)?
LO4: Communications perception of → If yes
within groups and consumer +What type of information do
opinion leadership you want to receive from
KOL?
+ How do KOLs' reviews
influence your purchase?
+ What if a KOL gives a
bad review about the
brand’s products, would
you trust the review or
not?
+ What product do you
think that will need a
review or
recommendation from
KOL?
→ If no
+ Why are you not affected
by WOM?
+ What are other factors
affect your purchasing
decisions instead of
WOM?

Problem 2: Chapter 18: To understand the - What are the most

Inconvenient Postpurchase Processes, factors that influence important factors to you
delivery system Customer Satisfaction, consumer satisfaction regarding the delivery
and Customer and dissatisfaction service when shopping
Commitment with products' delivery online? Why?
LO5: attributes - How would you rate the
Explain the determinants importance of those
and outcomes of factors that you have just
satisfaction and answered
dissatisfaction. - What were your
experience with the
delivery service of TikTok
Shop?

15
 Chapter13: Situational To identify the - How does the amount of
Influences influence of temporal time available for the
LO3: Summarize the five perspectives on purchase affect your
characteristics of purchase decision decision process?
situations and their - Do you mind being able to
influence on choose your delivery
consumption. (Temporal service companies or not?
Perspectives) Why or why not?
- How do you expect
TikTokshop to improve
their delivery services?

Appendix B. Respondents list

Birth
Name Gender year Age Job Location Email
Ngô Thanh Hằng Female 2000 23 Trợ lý luật sư Ba Ria ngothanhhang1508@g…
Nguyễn Quốc
Huy Male 1989 34 Tham vấn Tâm Lý Ho Chi Minh nguyenquochuy.yoonmi…
Student (Cao Đẳng
Vũ Việt Hùng Male 2003 19 Truyền hình) Ha Noi hungkinh0903@gmail.c…
Nguyễn Đức Nhân viên kĩ thuật
Mạnh Male 1997 24 và bảo hành Ho Chi Minh 23nd.manh@gmail.com
Thái Gia Nghi Female 1999 24 Nhân viên bán hàng Ho Chi Minh nghithai2808@gmail.com
Hồ Quỳnh Như Female 1995 28 Housewife Ho Chi Minh quynhnhuho185@gmai…
Nguyễn Như Student (ĐH
Trang Female 2004 19 KHXH&NV) Ho Chi Minh nguyennhutrang380@g…

Appendix C. Focus group interview

Link to recorded video: CB3_G05_Focus Group.mp4

Appendix D. Respondents’ Answer Transcript

Link to sheet: CB3_G05_Transcript

16
17
Appendix E. Detailed SWOT analysis of TikTok Shop
TikTok Shop
Strengths
- Large market presence: TikTok has over
1.1 billion users and has been downloaded
over 220 million times in the United States
alone. (Doyle, 2020)
- Collaboration with influencers: TikTok
has a large number of influencers who help
to raise brand awareness. The platform
benefits from these influencers (Parker,
2022).
- In-app purchasing: TikTok buying allows
consumers to take advantage of items
already advertised on TikTok by influencers
while removing the process of moving to
the website where the product is provided
(Parker, 2022).
Weaknesses
- Tucker (2022) claims that TikTok's
search engine frequently provides
incorrect information. These
worries may dissuade some TikTok
Shop customers from purchasing
items.
- Lack of quality control: Without
strict processes for quality
assurance in place, TikTok Shop
may have problems with
unqualified or fake products
presented on the site (Báo Công
Thương, 2023).
- Limited Shipping Options:
TikTok Shop does not allow
18
 - Personalized content: Based on
information gathered from users' in-app and
outside of the app activities as well as from
their third-party partners, TikTok employs
tailored advertising to provide customers
with advertisements that are more relevant
to their interests (TikTok, 2019a)
Opportunities
- Global expansion: According to Chiang
(2023), customers buying on TikTok Shop
are spending less on Shopee (-51%), Lazada
(-45%), and Offline (-38%) in Indonesia,
Thailand, and the Philippines (Chiang,
2023).
Appendix F. Detailed SWOT analysis of Facebook Marketplace
Facebook Marketplace
Strengths
- Strong brand with global presence:
Facebook was recognized as the 17th
most valuable brand in 2022 by
Interbrand (Interbrand, 2022).
- Loyal customer base: The daily active
users (DAUs) of Facebook presently
stand at 1.908 billion, which translates
to 65.9% of the monthly users logging
in on a desktop or mobile device each
day (Dean, 2022).
- Integrated Ecosystem: By integrating
Facebook Marketplace with other
Facebook tools like Messenger,
Instagram, and WhatsApp, businesses
can reach a larger customer base
(Salinas, 2019).
Opportunities
- Expanding Market: Facebook
Marketplace can gain from more
customers to select their preferred
delivery method. Some customers
may choose certain delivery
methods depending on their
location, convenience, or other
factors. Restricting choices may
cause dissatisfaction and dissuade
customers from making purchases.
Threats
- TikTok Shop will face strong
competition from established
online marketplaces such as
Shopee and Lazada, as well as
social commerce platforms such as
Instagram and Facebook Shops.
Weaknesses
- Facebook Marketplace has little
design and branding options,
which can be problematic for
companies trying to deliver
distinctive buying experiences.
- Data Privacy Issues: Due to
Facebook's history of privacy
scandals (Newcomb, 2018),
consumers may be hesitant to
provide financial and personal
information while making purchases
on the network.
Threats
- Regulations Challenges: Due to
governmental attention to data
19
exposure to prospective consumers as privacy, consumer protection, and
Meta continues to expand its user base antitrust issues, Facebook Shop may
and roll out new services (Kemp, 2022). be subject to restrictions or penalties.
- Competition from other online
marketplace

20