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CB T322WSB-2 Group-1 -Group-Report-submission-1

Consumer Behavior (Đại học Western Sydney)

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GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Hoang Minh Duy Student ID number: 21000383

Student name: Dang Trieu Tien Student ID number: WSU21000041
Nguyen Hoang Diem
Student name: Quynh Student ID number: 21000346
Student name: Tran Minh Quang Student ID number: WSU21000289
Student name: Nguyen Ba Dat Student ID number: WSU21000058
Student name: Do Ha Phuong Khanh Student ID number: 21000776
Student name: Tran Hong Uyen Nhi Student ID number: WSU21000084
UNIT AND TUTORIAL DETAILS

Unit name: Consumer Behavior Unit number: 2

Tutorial/Lecture: CB-T322WSB-2 Class day and time: 12/09/2022 – 8h00
Lecturer or Tutor name: Nguyen Ngoc Quynh Thu
ASSIGNMENT DETAILS

Title: Group Assignment

Length: 2,100 Due date: 28/11/2022 Date submitted: 28/11/2022

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: Hoang Minh Duy - 21000383

Student’s signature: Dang Trieu Tien – WSU21000041
Student’s signature: Nguyen Hoang Diem Quynh - 21000346
Student’s signature: Tran Minh Quang - WSU21000289
Student’s signature: Nguyen Ba Dat – WSU21000058
Student’s signature: Do Ha Phuong Khanh – 21000776
Student’s signature: Tran Hong Uyen Nhi – WSU21000084

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Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been signed.

STUDENT EVALUATION
of group member participation

Great teamwork enhances group outcomes. This form has two functions: to provide you with a guide to
the behaviors expected of you as a team member and as a means of evaluating your contribution and
that of each other team member on completion of the project. Evaluations may be used by your lecturer
to determine the final project mark for each person in your team. On formation of the team, examine
the participation criteria carefully. Think about how you will contribute to the group effort and discuss
this as a team. Write your own name below (‘Self’) and that of each other person. On completion of the
project use the form to evaluate yourself and the team. Circle the letter that best describes the person’s
participation for each criterion, then give the form to your lecturer.
Note: each student must complete a separate form

Subject: Consumer Behaviour

Group: 1
STUDENT DETAILS

Person 1(self): Hoang Minh Duy - 21000383

Person 2: Dang Trieu Tien – WSU21000041

Person 3: Nguyen Hoang Diem Quynh - 21000346

Person 4: Tran Minh Quang - WSU21000289

Person 5: Nguyen Ba Dat – WSU21000058

Person 6: Do Ha Phuong Khanh – 21000776

Person 7: Tran Hong Uyen Nhi – WSU21000084

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Person Participation criteria

1 2 3 4 5 6 7
a a a a a a a Planning/organizing of project
b b b b b b b a) Took a leading role & gave time to planning
c c c c c c c b) Did fair share of planning work
d d d d d d d c) Did some planning work but less than others
d) Did not participate in planning activities
a a a a a a a Conceptualization of the project
b b b b b b b a) Took a leading role
c c c c c c c b) Contributed good ideas
d d d d d d d c) Contributed some ideas but less than others
d) Did not contribute to project conceptualization
a a a a a a a Attendance at team meetings
b b b b b b b a) Organized meetings & facilitated the involvement of team
c c c c c c c members
d d d d d d d b) Attended all scheduled meetings
e e e e e e e c) Missed one or more meetings but informed others in advance
d) Missed one or more meetings but did not inform others in advance
e) Poor attendance
a a a a a a a Meeting team deadlines
b b b b b b b a) Always worked to deadlines
c c c c c c c b) Missed one or two deadlines but negotiated changes with others
d d d d d d d c) Missed one or two deadlines without discussion with others
causing minor problems for team
d) Poor in meeting team deadlines causing major problems for the
team
a a a a a a a Cooperation, flexibility & resourcefulness
b b b b b b b a) An excellent team member & facilitator
c c c c c c c b) A good team member
d d d d d d d c) Generally worked well as a team member with some lapses
d) Difficult and uncooperative
a a a a a a a Quality of work submitted to team
b b b b b b b a) High quality contributions
c c c c c c c b) Good contributions
d d d d d d d c) Fair contributions with some lapses in the quality or amount of
e e e e e e e work submitted
d) Submitted work but it was unsuitable for inclusion as part of team
output
e) Failed to submit work, or work not submitted in time

ARO 00401 09/15

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Table of contents

I. Market overview……………………………..………………………………..5
II. SWOT Analysis ………………………………….………………..…………..5
III. Tiktok Shop’s analysis…………………………………………….……..……6
1. Target market………………………………………………....……………6
2. Competitors…………………………………………………………………6
IV. Problems and objectives of the company………..……………..………….…6
V. Research objectives…..…………..……………………………...………….…7
VI. The theories behind the chosen topic………..….…………………...……….7
VII. Summary of the focus group…..………………………………..………….…8
VIII. Limitations of the focus group ………………………......…..…………….…10
IX. Data analysis and customer insights…………………......…..………….........10
X. A set of marketing considerations that should be taken into account by

organizations targeting the segment ………………………………..…..……11

XI. References……………………………....……………….……………..…....…12

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I. Market overview:
Nowadays, with the steady growth of development, it is easier for people to shop online at home
through e-commerce platforms. With evidence showing that it expanded three times, to roughly
13 billion USD (VnExpress, 2022), in the Vietnam digital economy from 2019 to 2021, this is the
potential market for Tiktok. During the past 7 years, Vietnam's e-commerce has consistently
maintained a growth rate of 16–30%, as evidenced by the 20% growth rate. The number of people
who purchase online for the first time in Vietnam is predicted to reach 60 million by 2022. The
average user's online buying value is predicted to rise this year, reaching $260 to $285 per person.
In 2022, it is expected that B2C e-commerce revenue would surpass 7% in 2021, rising to 7.2%–
7.8% of total retail sales of consumer products and services nationally. (Phan, 2022). One of the
strongest growing businesses in e-commerce was Tiktok shop, a recently appearing e-commerce
platform provided by Tiktok, one of the world leading entertainment and social media platforms.

II. SWOT Analysis: According to Dinh. (n.d.)

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III. Tiktok Shop’s analysis:

1. Target market:

2. Competitors:
E-commerce platforms have been a part of people’s lives, especially Shopee, Lazada, Tiki. They have
been the dominators in e-commerce for many years, which carries many challenges for the beginners
like Tiktok Shop. All of the mentioned platforms shared the many same features and performances
but there are some differentiations in each app’s interface and service. For example, users tend to find
Lazada's user interface difficult while Shopee has a friendlier design; with Tiki, people seldom use it
because there are few coupons available. Among them, Tiktok stands out for its unique feature of
allowing viewers to see products on live feeds and purchase them directly. Furthermore, consumers
might also receive promotions over livestreaming. By differentiating itself from other competitors,
Tiktok has proliferated thanks to its simplicity and video-centered social networking platform.

IV. Problems and objectives:

It is undeniable that Tiktok provides an addictive and attractive experience to Vietnamese, especially
Gen Z.Tiktok has successfully utilize short- video, one of its advantages and the main service that it
serves, to become the Vietnameses’ most favorite short-video platform in 4th Quarter 2021 (Huynh,
n.d.). Additionally, livestream is also an effective instrument of keeping loyal consumers and
captivating new users although not as functional as short-video. However, based on our interview,
we discovered that although Tiktok is a popular platform in Vietnam, many people still do not see it
as an e-commerce platform and make purchases in Tiktok Shop. Consequently, it could be shown
that Tiktok Shop’s advertising methods do not support spreading the popularity. The problem that
Tik Tok Shop is dealing with will be a basis for the team to learn and evaluate, thereby providing
solutions for the business.

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V. Research objective:
This research aims to discover how livestreaming and short video advertisements affect the customer's
buying decision for Tiktok Shop since the genuine and intimate entertainment content from Tiktok
has contributed to changing the landscape of the advertising industry in Vietnam by leveraging the
power of joy (Duong, 2022). The main research subjects are young individuals between 18 and 25,
commonly referred to as Gen Z, a set of young and fast-growing users. These subjects are at an age
with significant purchasing power and have specific experience in e-commerce purchases. This user
set continues to expand and tends to increase rapidly in the future. Our team would use the interview
methods to gain fresh insights into this rising e-commerce platform. Additionally, using the textbook's
theories, the potential and the effect of livestreaming and short video advertisements on consumers
will be tested and described.

VI. The theories behind the chosen topic that can support to define the data to collect:

Theories Details

Demographics, Psychographic We categorize and choose interviewees based on a variety of

and Lifestyle factors, such as age, education, occupation, and income, as well as
by investigating a facet of their lifestyle, the effect of their social
groups, and their personality.

Exposure and Attention Customers will first start with their exposure and attention to the
app before really using or participating with Tiktok Shop's selling
and purchasing. Because of this, we use this theory to explain how
interviewees are exposed to the brand (selected, voluntary, or
both), through what channels or groups, and how it occurred.

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Consumers frequently engage and expose themselves to reference

Reference Groups
groups (family, friends) to exchange information. We will discuss
in the focus group which reference groups they belong to and
which have the most influence on them.
Motivation and Personality While personality determines behavior, motivation is a crucial
aspect that aids in determining the demands of the consumer. With
this hypothesis, we hope to clarify what encourages respondents to
choose Tiktok Shop as their preferred e-commerce platform for
online purchases as well as identify the driving forces behind such
decisions.

Consumer Decision Process Using a Tiktok Shop app requires the user to consider the prices
between other e-commerce platforms, especially when it is related
and Problem Recognition
to the effectiveness of advertising on various platforms. Because
of that, we use this theory to question about:

- Their motivation of using Tiktok Shop and during the process

what pros and cons do they face

- What kind of advertising do they prefer and what do they expect

from Tiktok Shop to offer them.

Informational influence, Following the focus group, we use our knowledge to analyze the
Identification influence interviewees' responses in order to uncover insights. The thorough
analysis follows the section on focus groups.

VII. Summary of the focus group:

Profile of the interviewees:

- Gender: Male and Female.

- Age: 17-20 years old.
- Location: Ho Chi Minh City.
- Occupations: University students
- Income: Low, under 5 million VND per month.
- Having an online buying habit.
- Characteristics and lifestyle:
+ Youthful, trendy.
+ Prefer buying online.

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Discussion guide:

General perception ● What do you think of when hearing about livestreaming/short

videos?
● What online shopping applications do you know?
● What do you like about and do not like about buying online?
● Do you think that shopping online will help you control your
budget?
● Do you think that today e-commerce platforms attract young
people’s attention effectively and what app is your favorite one?
● Do you think it is better to spend money for shipping fees than
going shopping on your own?
Habit ● Do you prefer buying at stores or shopping online? Why?
● Do you often watch livestreaming?
● Do you prefer livestreaming or short videos?
● How many times do you purchase on online apps?
Motivations ● What factors influence you most before deciding to buy online?
● Do you believe the recommendations by KOL?
● Do you shop online because of vouchers and promotions?
Compare different ● Do you notice traditional promotional videos? Are they
advertising methods attractive to you?
(between ● How do you feel when seeing these traditional advertisements?
livestreaming/short videos ● Do you think traditional advertisements are an effective way for
advertising and traditional promotion? Why/ Why not?
advertisement) ● Do you buy products after watching traditional promotional
videos?
● What are the advantages of livestream and short advertising
videos when buying online?
Brand awareness ● Can you talk about your experience with these e-commerce
applications (Shopee, Tiktok Shop, Lazada, Tiki)? Can you rank
them from high to low?
● Do you know about Tiktok Shop? What was your first reaction
when you heard about Tiktok Shop?
● Do you think Tiktok Shop is popular?

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● Have they ever used Tiktok for making a purchase or to entertain

and then make emotional purchases through those videos?
Triggers and Barriers ● Do you think some livestreams and videos have unsuitable
contents?
● Have you ever encountered any issues when using these apps?
● Why do you choose these apps to shop online?
● Is it easy to use Tiktok Shop as well as get coupons?
● Do short videos provide enough information about the products
to buy?

VIII. Limitations of focus group

This focus group has some disadvantages of studying customer insights. The interviewees do not
represent all types of potential customers for Tiktok Shop. Four respondents are still students with a
monthly salary less than 5 million VND while Tiktok Shop targets customers from 18 to 34 and
perhaps older, together with a wide range of personal income. Besides, all of the interviewees are
living in Ho Chi Minh City where they have opportunities to get access to modern technology easily;
therefore, they are more familiar with online shopping as well as e-commerce platforms compared to
remote areas. As a result of these restrictions, the customer insights based on this focus group may be
biased.

IX. Data analysis and customer insights:

1. Although many Vietnameses use Tiktok, the e-commerce platform is not recognized by
many users
The target market responds positively about Tiktok Shop’s advertising methods since it fits with their
habits and hobbies. However, livestreaming and short videos only exist inside the platform itself and
it just serves as an efficient instrument to maintain loyal consumers as well as making new users
become loyal. Additionally, Tiktok Shop does not exist in mass media such as television, social
media, etc and new users mainly know about it mainly through word-of-mouth. As a result, Tiktok
Shop is something that is relatively new and unfamiliar to Vietnamese consumers.
2. Livestream easily makes people finalize their purchases but short videos are the factors
that make the sellers popular because livestream cannot be saved.
Livestream and short video are two main advertising instruments that Tiktok Shop is heavily utilizing.
Although livestreaming tends to stimulate the urge to buy impulsively of viewers through various
factors such as: scarcity persuasion, price perception, etc (Lo et al., 2022); short video is the

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advertising method that people prefer because of its convenience. Short videos’ duration usually last
under 1 minute so the creators must comprise all the essential information and convey it to the
consumers. Consequently, viewers tend to be attracted to the selling page but they may not decide to
buy because they do not have enough information on their desired products as livestreams on Tiktok
Shop could not be saved and watched later like other streaming platforms such as Facebook live.
3. Tiktok Shop fully utilizes shoppertainment, which enhances consumers’ preference
through convenient shopping experience.
As mentioned above, livestreaming persuade consumers to purchase the products while short video
capture the audience’s attention. Both of the advertising methods share the same characteristic:
advertainment. It is undeniable that watching short videos and livestreams is extremely arousing and
addictive because short videos are entertaining, additionally, it contains most of the product’s
essential information while livestream helps increase interaction between buyers and sellers as well
as sellers could create trendy advertising methods to attract new consumers. As a result, Tiktok Shop
has successfully maintained its viewers for a very long-term period. Furthermore, since short videos
last longer than livestreaming because they can be saved and spreaded based on viewers’ behaviors
analysis, more people would be attracted to the seller thanks to this method.

X. Considerations for Tiktok Shop:

One of the main findings of the focus group is that Vietnameses do not have much information about
Tiktok Shop although Vietnamese tend to use plenty of e-commerce. Although the focus group
consists of Tiktok Shop users, they agree that they have never seen an advertisement on mass media
or other social media to inform them about Tiktok Shop. In contrast, their competitor, Shopee, runs
advertisements frequently on multiple platforms with intensive frequency. Therefore, instead of
relying on WOM and loyal users, Tiktok Shop could run advertisements on mass media like TV or
social media like Facebook, Instagram with the help of opinion leaders because consumers are likely
to look for an opinion leader when they do not know much about the product (Mothersbaugh &
Hawkins, 2015).

Although the strength of Tiktok relies much on short videos to make consumers engage in using more,
livestream is the factor that stimulates people to make purchases. The focus group states that even
though livestreams are interesting to watch, they would not find it worth watching due to the long
duration and they could not continue if they stopped watching. Therefore, to enhance consumers’
experience, Tiktok Shop should provide a saving function to the livestream like their competitors
Facebook live to increase competitiveness. A saving and re-broadcasting function would make the
product’s information exposed to a larger number of potential viewers.

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References

Datareportal. (2022, March). Tiktok: Number of users by age and gender in 2022. Ecwid.

https://www.ecwid.com/insights/Tiktok-users-age-gender

Dương, Á. (2022, May 4). Tiktok giúp các doanh nghiệp tăng trưởng thông qua sức mạnh của niềm

vui. CafeF. https://cafef.vn/Tiktok-giup-cac-doanh-nghiep-tang-truong-thong-qua-suc-

manh-cua-niem-vui-20220504193501707.chn

Đinh, T. (n.d.). Tiktok Shop là gì? Hướng dẫn A-Z bán hàng trên Tiktok Shop - Đinh Trung Thành.

TrungThanh.Net. https://trungthanh.net/Tiktok-shop-la-gi/

Huynh, T. (n.d.). Tiktok is now the biggest short-video platform in Vietnam. Decision Lab.

https://www.decisionlab.co/blog/Tiktok-is-now-the-biggest-short-video-platform-in-vietnam

Lo, P., Dwivedi Y., Tan, G., Ooi, K., Aw, E., Metri, Bhimaraya.(2022).Why do consumers buy

impulsively during live streaming? A deep learning-based dual-stage SEM-ANN analysis,

Journal of Business Research. 147(0148-2963), 325-327.

https://doi.org/10.1016/j.jbusres.2022.04.013.

Mothersbaugh Associate Professor of Marketing, David L, & Dr, H. D., I. (2015). Consumer

Behavior: Building Marketing Strategy (13th ed.). McGraw-Hill Education.

Phan, A. (2022, September 12). Thương mại điện tử Việt Nam năm 2022 ước đạt 16,4 tỷ USD. Nhịp
Sống Kinh Tế Việt Nam & Thế Giới. https://vneconomy.vn/thuong-mai-dien-tu-viet-nam-
nam-2022-uoc-dat-16-4-ty-usd.htm
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