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AutoRecovery Save of The Impact of SNS Advertisements On Online Purchase Intention of Generation Z - An Empirical Study of TikTok in Vietnam

This study investigates the impact of TikTok advertisements on the online purchase intention of Generation Z consumers in Vietnam. It identifies four key factors—information, entertainment, trust, and social interaction—that positively influence purchase intentions, with information being the most significant. The research aims to provide insights for businesses to enhance their advertising effectiveness on TikTok.
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0% found this document useful (0 votes)
9 views11 pages

AutoRecovery Save of The Impact of SNS Advertisements On Online Purchase Intention of Generation Z - An Empirical Study of TikTok in Vietnam

This study investigates the impact of TikTok advertisements on the online purchase intention of Generation Z consumers in Vietnam. It identifies four key factors—information, entertainment, trust, and social interaction—that positively influence purchase intentions, with information being the most significant. The research aims to provide insights for businesses to enhance their advertising effectiveness on TikTok.
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© © All Rights Reserved
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Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO,

Tran Duong NGUYEN /


Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506 1

The Impact of SNS Advertisements on Online Purchase Intention of


Generation Z: An Empirical Study of TikTok in Vietnam

Thi Thuy An NGO1, Thi My Thanh LE2, Thanh Hieu NGUYEN3, Truong Giang LE4,
Gia Thinh NGO5, Tran Duong NGUYEN6

Received: February 10, 2022 Revised: April 30, 2022 Accepted: May 10, 2022

Abstract
The study was carried out to investigate the factors affecting the online purchase intention of Vietnamese consumers, focusing on Generation
Z (Gen Z), through the information provided on TikTok – a social media network. Besides, the study evaluates the influence of these factors on
the intention to purchase online of Gen Z. Most important; the research aims to help businesses better understand the insight of their consumers.
The data were collected from 250 people who were born in the 1995 to 2010 period, living in the South of Vietnam. The study was
conducted from December 2021 to March 2022 and used two analytical methods, which are exploratory factor analysis and Structural Equation
Modeling. Research results show that there are 4 factors of TikTok advertisements that affect the purchase intention of Gen Z consumers,
including information, entertainment, trust, and social interaction, and they all have a positive impact on the online purchase intention. In
which the information factor has the most significant impact on the online purchase intention of Gen Z consumers. Based on the research
results, recommendations are made to help businesses that have sold or intend to sell products via TikTok, improve the effectiveness of
advertisement through the TikTok channel.

Keywords: Online Purchase Intention, SNS Advertisements, Gen Z, TikTok, Vietnam

JEL Classification Code: L86, M31, M37

1. Introduction connected devices such as tablets and smartphones, has


led to the rapid development of communication media like
Today, the strong development of the 4.0 era and the Facebook, Instagram, Twitter, and TikTok. Among them,
Internet along with the advancement of modern network- TikTok is the leader in the field of short music video social
platforms focused on vertical reading. Besides, TikTok is
also video creation and sharing application, in the context
1
First Author and Corresponding Author. Lecturer, Faculty of of movie editing and playback behavior (Jiang, 2019).
Business Administration, FPT University, Can Tho Campus,
Vietnam. ORCID ID: 0000-0001-7510-972X. [Postal Address: 600 As simple to make and easy to use application for video,
Nguyen Van Cu Street, An Binh Ward, Ninh Kieu District, Can Tho TikTok became a powerful social media platform that has
City, 94100, Vietnam] Email: [email protected] been considered one of the most popular social networking
2
Faculty of Business Administration, FPT University, Can Tho
Campus, Vietnam. Email: [email protected]
platforms around the world and has had a great influence on
3
Faculty of Business Administration, FPT University, Can Tho the perception and behavior of Generation Z (Gen Z), who
Campus, Vietnam. Email: [email protected] was born between 1995 and 2010 (Francis & Hoefel, 2018).
4
Faculty of Business Administration, FPT University, Can Tho TikTok is also changing the way Gen Z uses social media.
Campus, Vietnam. Email: [email protected]
5
Faculty of Business Administration, FPT University, Can Tho With Gen Z, TikTok is not only an entertainment social
Campus, Vietnam. Email: [email protected] network with unlimited content; they can also use TikTok
6
Faculty of Business Administration, FPT University, Can Tho to make money by creating product marketing ads.
Campus, Vietnam. Email: [email protected] Most recently, according to a report from Influencer
© Copyright: The Author(s) Marketing Factory, around 62% of Gen Z prefers to shop
This is an Open Access article distributed under the terms of the Creative Commons
Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) from online stores rather than going to stores. The report
which permits unrestricted non-commercial use, distribution, and reproduction in any
medium, provided the original work is properly cited.
adds that Gen Z is mainly inspired by social media
platforms about online shopping as they can get
recommendations
Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
2 Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506

from different people who have also tried or used them. A


to buy a brand or take actions related to purchases that are
study by Ahmed (2021) shows that around 40% of Gen Z
determined by the possibility of consumers purchasing a
follows different brands on social media platforms like
product or service. And the buying decision is most likely
Facebook, Instagram, Twitter, TikTok, etc. For the TikTok
to be made after evaluating that product or service. A study
channel, Muliadi (2020) found that over 60% of TikTok
by Keller (2001) indicates that there are many external
users are comprised of Gen Z. Thereby, it can be seen that
factors that influence the consumer’s intention to select and
the close relationship between the nature of Gen Z and
purchase the products or services.
social networks has a great influence on the purchase
intention of Gen Z. In short, this will be the main group of
consumer goods worldwide in general and in Vietnam in 2.4. Research Framework and Hypotheses
particular. With the above potentials, keeping the mentality
The theory of planned behavior is one of the most
and approach to Gen Z customers is essential for the
important theories of behavior decisions that show the
development of online businesses. Thereby, it shows that
influences of individual variables, social circumstances, and
managers must study shopping behavior and purchase
non-volitional determinants on the purchase intention of
intention through the TikTok social network of Gen Z.
customers (Ajzen, 2020; Han & Kim, 2010). Three aspects
influence consumers’ buying decisions: psychological
2. Literature Review factors, individual traits, and societal factors (Ajzen, 1991).
The ABC theory (Attitude, Behavior, and Context) offers
2.1. Generation Z a useful framework for investigating consumer behaviors
(Katz, 1937). Other research aimed to directly incorporate
Gen Z is the generation born between 1995 and 2010 variables including product information, prices, external
(Francis & Hoefel, 2018). Gen Z has the features of the driving factors, and product quality to investigate their
“network generation” due to the highly developed digital direct impact on purchasing behavior (Cheung et al.,
era in which they were born. They are also described as 2019; Lee et al., 2015; Shin et al., 2017).
the “Facebook generation”, “digital natives” or sometimes
“iGeneration” (Tari, 2011). Gen Z youth have been brought 2.4.1. Information (INF)
up in the first truly mobile era (Palley, 2012). The Kaiser
Family Foundation reports that Gen Z youth are exposed to Informational advertising on TikTok: The information
more media than any other activity other than sleeping, element is the ability to effectively provide information
with a 67-minute daily increase in the number of time related to the product to be advertised to consumers. When
participants spent for and corresponding to the media in using ads on TikTok, information is an important factor
2009, compared with 2004 (Rideout et al., 2010). because customers will find the necessary information
about the products they want to buy and use. It’s also
2.2. TikTok critical that the information is accurate, clear, and useful
to the consumer. Based on research on customer perceived
TikTok is a famous social media app that lets in value and attitude toward advertising (Ducoffe, 1996; Eze
customers create, watch, and proportion 15-second movies & Lee, 2012; Lana & Bẹnamin, 2001; Ling et al., 2010;
shot on cell phones. With its customized feeds of quirky Petrovici & Marinov, 2005;) information is an important
brief movies set to song and sound results, the app is first factor in this research, so the authors propose hypothesis
rated for its addictive nice and excessive stages of H1 as follows:
engagement. Even expert or non-expert content creators can
upload different types of videos with filters, songs, stickers, H1: Information on TikTok has a positive effect on Gen
and many other effects to make their videos more attractive Z purchase intention.
(D’souza, 2021).
2.4.2. Entertainment (ENT)
2.3. Purchase Intention
Entertainment is the level of emotion brought to the user
Purchase Intention is a type of subjective consumer
when viewing an ad. Entertainment in online advertising
behavior in which users are more likely to buy a certain
positively impacts consumers’ perceived values and attitudes
product or service in a given situation based on their prior
(Ducoffe, 1996). A high level of enjoyment and attraction
experience and desire (Keller & Kotler, 2016). This is a
in the process of interacting with the media will positively
complicated process involving user behavior, perception,
affect their feelings and moods (Nguyen et al., 2013),
and mode. According to Belch and Belch (2009), purchase
indicating entertainment in online advertising has a positive
intention is the preference or the tendency of consumers
Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506 3

impact on consumers’ perceived value and attitudes, so the 2.4.5. Social interaction (INT)
authors propose hypothesis H2 as follows:
The level of contact between users with advertising
H2: Entertainment on TikTok has a positive effect on types is referred to as social interaction. It is defined as a
Gen Z purchase intention. way for people to effectively connect regardless of location
or time (Ngo & Mai, 2017). The researchers discovered that
2.4.3. Trust (TRU) the social interaction variable had a significant impact on
online buying intentions in a study on the impact of social
Trust is the user’s level of trust in advertising on
network advertising on customers’ purchase intentions
TikTok. Advertising credibility refers to the degree of trust
(Ngo & Mai, 2017). Therefore, we propose hypothesis H5
consumers have in the advertising message and is based on
as follows:
trust placed in the source of the advertisements and the
advertiser (MacKenzie & Lutz, 1989). Trust has been H5: Social Interaction on TikTok has a positive effect
shown to have a direct, positive effect on the attitude on Gen Z purchase intention.
towards advertising, brand attitude, and purchase intention
of consumers (Goldsmith et al., 2000). Trust is an important The conceptual framework of this research is
factor in this research, so the authors propose hypothesis demonstrated in Figure 1.
H3 as follows:
3. Methodology
H3: Trust in TikTok has a positive effect on Gen Z
purchase intention
3.1. Research Method
2.4.4. Disturbance (DTB) This study was carried out through three main
phases, including (1) Expert study, (2) Pilot study, and (3)
Marketing activities such as advertising frequently
Empirical study.
appear distracting, annoying, and offensive to consumers
(Ducoffe, 1996). When customers are uncomfortable seeing (1) Expert study: Expert discussion is often used by
an advertisement, they underestimate its worth (Brackett researchers in cases where they want to clarify and
& Carr, 2001). The ads that continuously appear with high deepen the data, the high level of expertise of the
frequency will cut off the excitement when watching research problem (Nguyen & Nguyen, 2011). In
videos, making the audience lose good feelings. Based on this research, the expert study was conducted using
research on customer perceived value and attitude a qualitative method to determine the influencing
(Ducoffe, 1996), advertising orientation; (Lana et al., factors and re-evaluate the questionnaire through
2001), study the attitude toward mobile advertising the mock interview process.
(Haghirian & Madlberger, 2005; Tsang et al., 2004). Since (2) Pilot study: Pilot studies are small-scale,
the disturbance is an important factor affecting the interest preliminary studies that aim to investigate whether
of consumers in an advertisement, the authors propose crucial components of the main study – usually a
hypothesis H4 as follows: randomized controlled trial (RCT) – will be feasible
(Thabane et al., 2010). The study was conducted
H4: Disturbance on TikTok has a negative effect on
through a quantitative research method with 80
Gen Z purchase intention.
respondents

INFORMATION
H1+

ENTERTAINMENT H2+

H3+
TRUST PURCHASE INTENT

H4-
DISTURBANCE
H5+

SOCIAL INTERACTION

Figure 1: Research Framework


Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
4 Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506

to confirm and discover more factors affecting the


least 200 (Gorsuch, 1983). In this study, the total observed
purchase intention of Gen Z through TikTok.
variable on the official scale is 23 observed variables for
(3) Empirical study: conducted by quantitative research
exploratory factor analysis, so the minimum sample size to
method through the online survey. Collected data
be achieved is 23 * 10 = 230 samples. However, for this
are used to test the research model and research
study to be more effective and reliable, the authors plan to
hypotheses.
collect data from 250 respondents.
3.2. Questionnaire Design and Sampling Method 3.3. Data Collection and Analysis
Questionnaire design: The questionnaire was designed
The data were collected via an online survey in a
based on a 5-point Likert scale with the principle from
Google form that was shared in public groups on social
lowest to highest (from 1: Fully disagree to 5: Fully agree)
networking platforms such as Facebook, Zalo, Instagram,
(Zainudin et al., 2016), comprising two main sessions. The
and TikTok or sent directly to respondents via email, or
first session aims to collect respondents’ private
Facebook Messenger. Besides, we use random direct survey
information as qualitative data, including questions
methods at high schools and universities in southern
about gender, education, income, location of residence,
Vietnam. The survey was conducted from February 02,
employment, frequency of purchases, and others are among
2021, to March 09, 2021, and received 250 valid responses
the question used to gather demographic information from
from survey participants.
respondents (Sheard, 2018). In the second session,
The collected data were analyzed using SPSS 22.0
questions focus on how TikTok influences Gen Z’s
software through descriptive statistics, frequency tables,
intention to purchase online. Sampling method: A non-
reliability testing of scales, exploratory analysis, regression,
probability convenience sampling was implemented to
T-test, and ANOVA in-depth analysis.
minimize time, expense, and effort compared to other
sampling methods because the research took place in the
context of social isolation caused
4. Results
by the Covid-19 outbreak.
4.1. Profile of Respondents
Sample size: For EFA exploratory factor analysis, the
sample size must be at least five times the total observed The profile of respondents is demonstrated in Table 1.
variable (Hair et al., 1998). In addition, if the study uses Accordingly, the respondents compose people of both male
exploratory factor analysis, the sample size should be at

Table 1: Profile of Respondents

Demographic Available Frequency Percent


Gender Female 118 47.2
Male 129 51.6
Other 3 1.2
Age 12–15 6 2.4
16–18 49 19.6
19–22 99 39.6
23–27 80 32.0
Other 16 6.4
Income Under 3 million VND 90 36.0
From 3 million to 6 million VND 32 12.8
From 6 million to 10 million VND 57 22.8
Over 10 million VND 71 28.4
Used Time Less than 1 hour per day 69 27.6
From 1 hour to 2 hours per day 76 30.4
From 2 hours to 3 hours per day 69 27.6
More than 3 hours per day 36 14.4
Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506 5

and female, aged between 12 and 27 years old. They have


below 0.5, including ENT3 (0.487) and ENT1 (0.476),
an active account on the TikTok social network, and they
recorded that the KMO index was 0.792 (above 0.50) and
have bought or/and will buy goods through this social
Barlett testing was statistically significant at the level of
networking platform. The results show that 118 male
less than 0.05 to meet the requirement for EFA analysis.
respondents take up 47.2% and 129 female equivalents to
Moreover, the EFA result revealed that all the scales of
51.6% of total respondents. Regarding age, the 19–22 age
constructs met the requirements of the number of factors
group takes up 39.6% of respondents, and a number of
extracted (05 factors were extracted as per the proposed
people from 23 to 27 years old account for 32%, showing
research model), the cumulative extracted variance equal
that respondents intend to buy goods online quite a lot in
to 55.53% (above 50%), Eigenvalues were 4.421; 2.580;
this age range. Most respondents have an income of lower
1.767; 1.505; 1.335 (higher than 1). The loading factors
than 3 million Vietnam Dong (VND) and over 10 million
were very high (the highest was INF = 0.903 and the lowest
VND. The time using TikTok also partly affects the
was TRU3 = 0.516) (see Table 3). Therefore, five
intention to shop online. Among 250 respondents, the
constructs in the research model with 17 items were
number of people who spends from 1 to 2 hours a day on
extracted to meet the requirement of convergent validity
TikTok is 79, ranking first place. On the other hand, only
and discriminant validity (Hair et al., 2010).
36 respondents use more than 3 hours a day on TikTok.
4.4. Structural Equation Modeling (SEM)
4.2. Cronbach’s Alpha Reliability Coefficient
The study used Structural Equation Modeling (SEM)
Cronbach’s alpha analysis was utilized in the study to
to analyze the correlation between the components in the
determine the reliability of the scale of the components in
model, including Information (INF), Entertainment (ENT),
the proposed theoretical model. In addition, this analysis
Trust (TRU), Disturbance (DTB), and Social Interaction
method is applied to test the correlation between the
observed variables and the total variable. The results in Table 3: Exploratory Factor Analysis
Table 2 reveal six total variables in the model include
Information (INF), Entertainment (ENT), Trust (TRU), Factor
Disturbance (DTB), and Social interaction (INT).
The analysis results show that the Cronbach’s Alpha INT INF ENT TRU DTB
coefficient for all constructions that range from 0.689 to INT4 0.849
0.876 after observation (Table 2) meet the requirements of
INT3 0.776
the test (Cronbach’s Alpha coefficient more than or equal to
0.60; adjusted Total Correlation value greater than or equal INT2 0.761
to 0.3) (George & Mallery, 2003). The test results proved INT1 0.596
highly reliable relationships between the observed variables DTB4 0.808
and the total variable of the model.
DTB2 0.754
4.3. Exploratory Factor Analysis (EFA) DTB3 0.749
DTB1 0.687
The research results from Exploratory Factor Analysis INF3 0.903
(EFA) after eliminating two items with loading factors
INF2 0.710
INF1 0.705
Table 2: Cronbach’s Alpha Test Results
INF4 0.639
Cronbach’s TRU2 0.83
Constructions Code Items
Alpha TRU1 0.702
Information INF 4 0.839 TRU3 0.516
Entertainment ENT 4 0.689 ENT2 0.799
Trust TRU 3 0.711 ENT4 0.585
Disturbance DTB 4 0.829 Eigenvalue 4.421 2.580 1.767 1.505 1.335
Interaction INT 4 0.835 Total variance 55.53%
Purchase intention PI 4 0.876 extracted (%)
Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
6 Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506

(INT), and Purchase Intent (PI). The SEM analysis results


Information (INF) and Purchase Intent (PI) have a
are presented in Figure 2 and Table 4.
positive and significant association with an index of
The Chi-square (χ2 /df) value is 1.434 < 3; the
0.39 and an influence level of 0.42. Thereby, the more
Comparative Fit Index (CFI) value is 0.917 > 0.9, and the
information audiences get from TikTok videos, the higher
value of Root Mean Square Error of Approximation
(RMSEA) is 0.042 <
0.06. Therefore, it can be concluded that the model is a Table 4: Hypotheses Testing Results
good fit, and all scales are acceptable.
The results of SEM analysis indicate that with a Sig of Relationships Coefficient SE P Result
0.66 > 0.05, the DTB variable does not have a significant PI  INT 0.32 0.09 *** Accepted
effect on the PI. On the other side, TRU and ENT variables PI  INF 0.39 0.07 *** Accepted
with Sig less than 0.05 (0.026 and 0.019, correspondingly)
PI  DTB 0.03 0.62 0.66 Rejected
show a significant influence on the PI. In the same way
with variables TRU and ENT, the INT and INF have the PI  TRU 0.14 0.06 0.026 Accepted
Sig values of 0.000 (AMOS symbol *** is sig equivalent to PI  ENT 0.60 0.25 0.019 Accepted
0.000), indicating the relationship of these variables with PI Notes: ***P < 0.01; **P < 0.05; *P < 0.1.
is significant. In short, the results of the SEM analysis show
a significant impact of four independent variables (TRU),
Table 5: Standardized Regression Weight
(ENT), (INT), and (INF) on the dependent variable (PI).
According to the results presented in Table 4 and Table
5, the independent components of the model have a positive
and significant influence on the dependent variable as
follows:
Social Interaction (INT) and Purchase Intent (PI) have
a positive and significant association with an index of 0.32
and an influence level of 0.29. This means having better
social interaction via TikTok videos leads to an increase in
the online purchase intention of a person.
Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506 7

Relationships Estimate
PI  INT 0.29
PI  INF 0.42
PI  TRU 0.15
PI  ENT 0.17

Figure 2: The Result of Full Model


Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
8 Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506

possibility of buying goods from the online channels


will strongly affect consumers’ attitudes and behavioral
they have.
intentions (Le et al., 2021).
Trust (TRU) has a direct and positive influence on
Entertainment is a basic and mandatory requirement
Purchase Intent (PI), with a correlation of 0.14. According
for advertising programs and activities, which is the ability
to the findings, having a high level of trust has a good
to provide information and entertain viewers. Only when
impact on the purchase intention of consumers (with an
consumers perceive these two values can they create a
influence level of 0.15).
positive attitude towards advertising. According to Ngo
Entertainment (ENT) has a positive and significant
and Mai (2017), the more an advertisement via TikTok
impact on Purchase Intent (PI) of 0.6 with a value of
brings entertainment to consumers, the more intention to
0.17 influence level. The results illustrate that the higher
purchase products they will have. The entertainment of
the Entertainment, the more direct impact on Purchase
advertising is not only measured by activities that bring joy
Intent (PI).
and comfort to consumers but also reflected in the content
that the advertisement is conveying; the simplicity, ease of
5. Discussion and Managerial Implications understanding, and uniqueness are also a way to help users
not get bored when receiving advertising information.
5.1. Discussion Advertising credibility is a statement of credibility and
is always perceived in the mind of the listener (Adler &
The research results show that there are four factors
Rodman, 2000). The credibility of an advertisement is
affecting the purchase intention of consumers, including
influenced by various factors, especially the reputation of
information, entertainment, trust, and social interaction.
the company and the reputation of the messenger. Trust
They all have positive impacts on the purchase intention of
has been shown to have a direct, positive effect on the
Gen Z consumers. Meanwhile, the disturbance factor has
attitude towards advertising, brand attitude, and purchase
been removed because the P-value (Sig.) is greater than 5%,
intention of consumers (Goldsmith et al., 2000). For this
meaning that the disturbance factor has not significantly
factor, the components include advertising on social media
influenced purchase intention. The study also found that the
is honest because partly comes from people who already
negative impact of the distraction factor is quite large. The
know about the information of the product/service/brand,
results of the standardized regression coefficients confirm
contributing to the purchase decision and advertisement is
that disturbance (DTB) is the factor that has a strong impact
trustworthy.
on purchase intention.
The factor of distraction is the only factor that
According to research results, the product information
negatively affects the attitude and purchase decision of the
communicated to the customer is one of the factors
Gen Z. These effects include feeling bothered by ads,
affecting the customer’s attitude. When consumers have a
annoyed when ads appear on users’ Newsfeed, feeling ads
positive attitude toward a product or service, it is most
are dishonest, distracting users, and being harassed by user
likely that they will purchase it (Nguyen et al., 2020, 2021).
types of banner ad image or video (Dinh & Le, 2016).
So, improving customer attitude is necessary to improve the
consumers’ purchase intention. Therefore, manufacturers
5.2. Managerial Implications
must provide more information about their products on their
websites, social media, and other platforms (Bamoriya & Through the study, the factors and levels affecting the
Singh, 2012). purchase intention of Gen Z have been identified.
The findings suggest that interactivity is a social factor Therefore, to improve the online purchase intention of Gen
that influences Purchase Intent for products advertised Z, the authors propose several solutions as follows:
on TikTok to some extent. Therefore, family, friends, and According to the survey, information (INF) is the most
community may influence consumer buying behavior. important factor affecting the purchase intention of Gen Z.
Since collectivism will have an impact on purchase There are more and more products at different quality levels
intentions; Subjective standards for products will be high if on the market. Consumers increasingly consciously seek
collectivism has good knowledge, beliefs, and attitudes information before owning it. TikTok’s display time is very
towards the products advertised on the TikTok platform. short, which makes it difficult for advertisers. Advertisers
Besides, social interaction is reflected in the fact that users need to make advertising content attractive, informative,
can use text, images, videos, and links to follow and share and concise in the time allowed by the TikTok platform.
new products with other users. Consumers will have a Therefore, advertisers need to carefully study their target
higher purchase intention if the ads through social networks customers, thereby coming up with long-term strategies
bring them more interaction and sociality. At the same time, for advertising on the TikTok platform. Videos need to
highly interactive messages to social communities from have a consistent theme that makes it easier for customers
influential individuals
Thi Thuy An NGO, Thi My Thanh LE, Thanh Hieu NGUYEN, Truong Giang LE, Gia Thinh NGO, Tran Duong NGUYEN /
Journal of Asian Finance, Economics and Business Vol 9 No 5 (2022) 0497–0506 9

to look up information in the next videos. If the content of


According to the analysis results of the SEM model of
your ad is too long, you can split it up into clips and present
250 observational samples proved that the factors of
curious information for customers to look up the next item.
information, entertainment, trust, and social interaction
Manufacturers and advertisers must provide complete
of videos on TikTok directly and positively affects the
product information such as packaging, uses, or product
purchase intention of Gen Z consumers. Subjective
notes. Businesses can set up pages and online portals where
criteria factors affect the intention to buy products based
information about products can be exchanged, as well as
on the regression results with 95% confidence that all four
information about manufacturers. Finally, set up consulting
independent variables in the model affect Gen Z’s online
services to impart knowledge to consumers so that they
purchase intention. From the research results, the authors
better understand the potential and uses of the products.
found that the information factor has the most significant
Furthermore, sales pages can inform customers about
influence on the purchase intention of Gen Z consumers via
product features and consequences, which will increase
the TikTok channel. Besides, the social interaction variable
their trust and confidence in the product, leading to
has a significant impact on consumers’ online purchase
Purchase Intent; Thereby improving customers’ trust in the
intention. The research results help us better understand
products advertised through the TikTok platform as well as
how Vietnamese consumers feel about products advertised
promoting the online shopping process of the Gen Z.
on the TikTok platform. Thereby providing solutions to
Social interaction (INT) influences the purchase intention
enhance and improve the online purchase intention of
of Gen Z. This shows that TikTok users tend to exchange
customers. Moreover, the study of consumer behavior-
information with other users to make product ownership
based products will give a more accurate view and
decisions. For example, users can ask questions in the
assessment for companies looking to grow the market
comments section to ask for the opinions of people who
through the TikTok platform.
have used the product. Users can also read the comments of
people who have experienced the product for more
information. Advertiser engagement metrics also help build
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