Introduction
Background
The rise of online social networks has transformed how individuals interact, allowing them to share insights, opinions, and experiences, which significantly influences customer behavior in communication and shopping In developing countries like Vietnam, online shopping is a relatively new concept, yet it has led to a significant understanding of consumer purchasing intentions This study aims to explore the factors that impact consumer trust and electronic word-of-mouth (EWOM), ultimately affecting purchasing intentions.
Social networking sites (SNS) enable users to connect with friends and meet new people, fostering relationships based on shared interests and backgrounds These platforms provide opportunities for creativity, allowing users to express themselves through built-in tools like blogs and text messaging, facilitating the sharing of ideas across media networks.
Social networking offers significant advantages not just for individuals but also for businesses These platforms enable companies to promote their products and services through advertising and marketing efforts, often at no initial cost, allowing them to reach a vast audience effectively.
In recent years, companies have leveraged social networks to create profiles that offer valuable business insights and low-cost advertising opportunities This approach enables businesses to attract a wider audience as their information becomes accessible to all users on these platforms Social commerce enhances the ability of businesses to connect with consumers globally, utilizing user-generated content to improve engagement Customers can interact online, share information, and receive recommendations from trusted individuals, leading to more informed purchasing decisions According to business consultants, individuals on social networking sites are often linked to others they trust and respect, further amplifying the effectiveness of this marketing strategy.
The rise of social media has profoundly transformed consumer purchasing habits, influencing how individuals interact, communicate, and make referrals For businesses, social media presents enhanced marketing opportunities and facilitates easier engagement with customers.
Research motivation
Social e-commerce is transforming the landscape of online shopping and digital marketing, as platforms like Facebook, Instagram, and YouTube integrate virtual stores directly into social feeds This evolution enables businesses to connect with customers more effectively in their online environments Consumers increasingly seek reliability and authenticity from online sellers, often turning to social media for product recommendations, reviews, and insights into the quality of relationships with brands Consequently, this article explores how various factors influence consumer trust and electronic word-of-mouth (EWOM), ultimately affecting purchasing intentions and actual engagement in social commerce.
Vietnam was selected for this study due to its significant growth in e-commerce, with the Ministry of Industry and Trade reporting an online sales revenue of $4.9 billion in 2015, a 22.5% increase from the previous year This surge has led to the emergence of over 10,000 new e-commerce websites, highlighting the booming online retail market in the country.
Lazada, Zalora, Tiki, and Hotdeal are at the forefront of the online sales market in Vietnam According to a report by the Vietnam E-commerce and Information Technology Agency (VECITA), the number of online shoppers is projected to rise by 52% from 2015 to 2020, with a considerable portion of these consumers utilizing smartphones for their purchases.
Recognizing the significant impact of social media on e-commerce, numerous companies in Vietnam are leveraging these platforms to connect with customers and explore new business opportunities However, alongside the rapid growth of social media, businesses also encounter increased risks associated with its use in their operations.
Investing in a company's appearance may initially require minimal capital, but long-term strategic investments are essential for establishing a strong market position Poor management by authorities in product quality inspection, price investigation, advertisement control, and the prevalence of counterfeit or banned products contribute to consumer confusion Consequently, shopping through social media becomes chaotic and detrimental for consumers.
Online shopping, unlike traditional shopping, has an exceptional feature of unpredictability, namelessness, lack of control and opportunism (Sonja & Ewald,
In online shopping, customers are often required to provide personal and financial information, such as email addresses and credit card details, which raises concerns about the accuracy of product descriptions and the security of their data Many consumers fear that the products they receive may not match what is advertised online, and they remain uncertain about how retailers will manage their personal information Consequently, trust emerges as a crucial factor in the relationship between customers and sellers in social commerce, significantly influencing consumers' willingness to make online purchases.
Social media platforms have significantly enhanced the electronic word-of-mouth (EWOM) environment, enabling individuals to engage in discussions about products and services with friends and colleagues (Kozinets et al., 2010; Chu & Kim, 2011) This shift has diminished anonymity, thereby increasing the credibility of information shared on these platforms (Wallace et al., 2009; Chu & Choi, 2011) Consequently, conversations surrounding brands and products on social media naturally influence consumers' purchasing intentions (Wolny & Muelle, 2013).
This research aims to identify the factors influencing consumers' purchasing intentions in Vietnamese social media marketing The findings are expected to assist retailers in Vietnam in addressing existing challenges in their marketing strategies.
Research question
The shift from traditional commerce to social commerce marks a significant change in the relationship between buyers and sellers In the past, consumers had to physically visit stores to select their preferred products and seek recommendations from others Today, businesses leverage social media platforms to sell products, aiming to replicate the traditional shopping experience online This trend is gaining traction in Vietnam, where social media tools are increasingly utilized for online shopping.
Vietnam is rapidly emerging as a significant player in the digital landscape, ranking eighth in Asia and 18th globally for domain authority, with the second-highest ranking in Southeast Asia By the end of 2015, there were 28 million active social media accounts in the country, with 24 million users accessing these platforms via mobile devices Notably, Facebook, the largest social media platform in Vietnam, boasted approximately 31.3 million users, reflecting a remarkable 22-fold increase over five years Furthermore, the amount of time spent on social media surpassed that of other online activities.
In recent years, many companies in Vietnam, including retailers, have enhanced their online presence by building websites and leveraging social media platforms to engage customers, promote their brands, and boost revenue Despite the growing trend of purchasing through social media, consumers remain cautious and often distrust online retailers due to issues such as hidden fees, incorrect product deliveries, delayed shipments, and concerns over information security This skepticism can tarnish the reputation of sellers Additionally, social media significantly influences consumer behavior, as shoppers frequently rely on the experiences of others to inform their purchasing decisions Today, a majority of consumers utilize social media as an effective means to share information and experiences about products and services, helping them make informed choices and secure the best prices Consequently, understanding the factors that drive consumers' purchasing intentions is crucial for businesses.
Purpose
This study, grounded in Social Cognitive Theory (SCT) and the Technology Acceptance Model (TAM), aims to explore Vietnamese consumer purchasing behavior on social media and identify key factors influencing their purchasing intentions Two primary research questions guide this investigation.
(1) What are the critical elements that affect Vietnamese consumer to purchase goods and possess information through social media?
(2) How do social media impact the purchasing behavior intention of Vietnamese consumer?
Accordingly, the objective of this research are as follow:
1 To study social media as a new tool in shopping online
2 To find out the picture of social media usages in Vietnam
3 To explore important determinants of the tendency of shopping through social media
4 To find out the relationships between the factors and behavior intention
5 To provide managerial suggestion for businesses, online retailers management agencies.
The structure of this study
The literature review chapter provides an overview of social commerce and the current status of social media usage in online shopping It synthesizes previous research on social media buyer behaviors, focusing on behavioral intentions and the various factors influencing them This foundational information is utilized to develop the study's hypotheses and framework The subsequent chapter details the research methodology, including the research methods, data collection and analysis techniques, and questionnaire design Chapter 4 presents the empirical study and results, while Chapter 5 discusses the findings, summarizes the entire study, offers managerial implications, and suggests avenues for future research, along with addressing the study's limitations The study concludes with references and an appendix.
2.1 The overview of social media
2.1.1 An introduction of social media
Social media has become an essential aspect of daily life for people globally Researchers and media experts define social media in various ways, with Kaplan and Haenlein (2010) describing it as a collection of applications that utilize Internet and Web 2.0 technologies, enabling users to create and share information.
Social media is defined as the use of electronic tools and technology to share and discuss information and experiences more effectively (2010) It combines technology with social interaction to create value (Jantsch, 2008) According to Wikipedia, social media encourages the creation and sharing of information, ideas, and expressions through virtual communities and networks Despite the diversity of social media platforms, common features exist that help define them (Obar & Wildman, 2015).
1 Social media are interactive applications based on Internet Web 2.0 technology (Kaplan & Haenlein, 2010; Obar & Wildman, 2015)
2 Content such as posts or comments, photos or videos and data generated through all online interactions, is considered as a raw material of social media (Kaplan& Haenlein, 2010; Obar & Wildman, 2015)
3 Users create specific profiles for each site or app developed and hold on by the social media communities (Boyd & Ellison, 2007; Obar & Wildman, 2015)
4 Social media create favorable conditions for the development of online social networks by connecting profiles of users with other individuals or groups (Boyd & Ellison, 2007; Obar & Wildman, 2015)
5 Social media uses web-based technology, desktops and mobile technology (e.g., smartphones and tablets) to create high interactivity through which individuals, communities and organizations may share, discuss and modify user-generated content or content made available online They make significant and widespread changes in communication among businesses, organizations, communities and individuals (Kietzmann, Jan, & Hermkens, 2011) The communication way of individuals and organization will be changed by social media There are the most popular social media websites such as Facebook, Google+, Instagram, Twitter, Viber, WeChat, WhatsApp, and YouTube These websites have more than 100,000,000 registrants.
IBM (Dennison, 2009) revealed that both customers and retailers leverage social media to enhance the "shopping experience." Customers seek detailed information about products and services to make informed purchasing decisions, while retailers can gain insights into customer behavior to develop effective social commerce strategies This approach fosters trust, strengthens relationships, and builds loyalty between retailers and customers.
Many businesses and individuals are turning to social commerce as a key marketing and selling strategy, leveraging popular social networking sites like Facebook, Line, and Instagram to promote their products This trend is driven by customers who not only buy products and services but also share their shopping experiences and product information through word of mouth (WOM) As a result, WOM has become a crucial aspect of social commerce, often proving to be more effective and cost-efficient than traditional advertising methods.
Product descriptions alone do not meet customer needs; incorporating social features such as reviews, comments, and suggestions fosters discussions about products, enhancing user engagement and driving sales without incurring advertising costs (Dellarocas, 2003; Dennison et al., 2009) Unlike traditional online shops that lack user interaction, social networks facilitate connections among friends and acquaintances, allowing them to share experiences through stories, images, and videos Research by Sinha & Swearingen (2001) and Kim & Srivastava (2007) indicates that recommendations from familiar sources are perceived as more credible than those from strangers, further emphasizing the value of social interactions in the purchasing process.
2.1.2 Social media usage in Vietnam
The rise of social media has opened new avenues for businesses and individuals in developing countries like Vietnam In recent years, social media has rapidly transformed the purchasing behavior of Vietnamese consumers As of January 2016, the Vietnam Internet Network Information Center (VINIC) reported that there were 49 million Internet users in a population of over 94 million, indicating that approximately 52% of the population is online This number continues to grow annually, with over 37% of Vietnamese people actively using social media, and 29 million accessing these platforms via mobile devices On average, Vietnamese users spend 2 hours and 18 minutes daily on social media, with Facebook leading as the most popular platform, followed closely by the domestic app Zalo.
In Vietnam, while many companies are successfully integrating social media into their business strategies, it remains an emerging field with significant growth potential Companies are increasingly leveraging social media as a marketing tool due to its numerous advantages Firstly, established networks provide a strong foundation for connections, allowing for effective marketing even among varying degrees of relationships Additionally, social media facilitates rapid information dissemination and fosters active engagement and interaction among participants Most importantly, the majority of social media platforms are free and user-friendly, benefiting both individuals and businesses These factors enable companies to reduce the prices of their products and services, thereby solidifying their competitive position in the market.
Customers can easily compare prices and product features, read reviews from other shoppers, and enjoy enhanced shopping services through social media platforms This modern approach to shopping allows them to save both time and money compared to traditional methods As a result, many social media sites in Vietnam have launched online shopping applications to meet customer demands, although this service is still in its early stages.
Facebook and Zalo are the leading social media platforms in Vietnam, playing a significant role in social commerce Launched on August 8, 2012, Zalo is a free mobile app that offers stable call quality and high security, alongside messaging and social networking features that enhance user connectivity By March 20, 2014, Zalo had reached 10 million users and is popular not only in Vietnam but also in countries with Vietnamese communities, such as the USA, Korea, Japan, and Singapore Organizations leverage Zalo for promoting socio-economic activities, while businesses utilize it as an advertising channel In 2016, Zalo introduced the "Zalo Shop" feature, allowing users to create product categories and sell directly, facilitating easy access for customers to view product details and contact shop owners via chat This functionality helps retailers manage inventory, maintain customer relationships, and attract new clients, ultimately boosting sales and enhancing business effectiveness through mobile platforms.
Unlike Zalo, Facebook stands out as the most popular social networking platform globally, having established a strong presence in Vietnam's social commerce market Since its inception, Facebook has continuously experimented with features to enhance its social commerce capabilities Notably, in 2014, it introduced a "Buy" button on News Feed posts, allowing customers to make e-commerce purchases without leaving the platform In 2015, Facebook launched a "Shopping" tab to simplify the shopping experience by recommending products from businesses with Facebook pages and aggregating items for sale across the site, including Groups Additionally, Facebook is enhancing its engaging ad formats, enabling companies to quickly showcase content within the app These innovations position Facebook as a leader in social commerce, fostering a more dynamic shopping experience for Vietnamese users.
2.2 The characteristics of social media
In today's digital age, social media has become an integral part of life, connecting individuals globally through the Internet Despite its widespread use, many lack a true understanding of social media's essence Grasping the characteristics of social media is crucial for both individuals and businesses aiming to compete effectively in the market Consumers equipped with strong social media skills can fulfill their needs more efficiently, enhancing personal marketing, product research, and job hunting Conversely, companies leveraging social media for marketing without a clear understanding of its characteristics are unlikely to succeed While numerous studies explore various media aspects, there is a scarcity of theoretical papers systematically outlining social media properties Mayfield (2008) identifies five fundamental characteristics of social media: participation, openness, conversation, community, and connectivity Additionally, research by Taprial and Kanwar (2012) highlights five attributes that make social media more effective than traditional media: accessibility, speed, interactivity, longevity, and accessibility.
Based on that, the characteristics of social media can be recapitulated as follow:
Social media communities are formed around shared interests and backgrounds, similar to other online platforms, but they uniquely rely on real-life connections and foster a higher level of trust than traditional media These platforms enable rapid community creation and facilitate effective interactions among members Various communities emerge, focusing on diverse topics such as politics, socio-economics, and recreational activities.
Social connectedness measures how individuals interact and build relationships with others, encompassing both the quality and quantity of these connections It extends beyond personal interactions to include relationships with broader social circles and communities Social media platforms thrive on this concept, leveraging connections to other websites, resources, and individuals to enhance engagement and interaction.