Bachelor of Business (Hons)

PRINCIPLES OF MICROECONOMICS

(ECO101)

Group Assignment

SEPTEMBER 2024 SEMESTER

Ho Chi Minh City, 27 October 2024

 Assignment Cover Sheet
Student Information Grade/Marks
Name ID

VO NGOC MINH TU E2400351

VO NGOC VAN ANH E2400352

PPHAN NGUYEN BAO HAN E2400333

CHU NGUYEN THANH THAO E2400257

Office
Module/Subject Information Acknowledgement

Course Code ECO101

PRINCIPLES OF
Course Name
MICROECONOMICS
Lecturer/Tutor/Facilitator MR. VU HAI NAM
Due Date 28 October 2024
Assignment Title/Topic Online Market
Intake (where applicable) SEPTEMBER 2024
Word Count 2061 WORDS Date/Time

Declara on

. I/We have read and understood the Programme Handbook that explains on plagiarism, and I/we
tes fy that, unless otherwise acknowledged, the work submi ed herein is en rely my/our own.

. I/We declare that no part of this assignment has been wri en for me/us by any other person(s)
except where such collabora on has been authorized by the lecturer concerned.

. I/We authorize the University to test any work submi ed by me/us, using text comparison
so ware, for instances of plagiarism. I/We understand this will involve the University or its
contractors copying my/our work and storing it on a database to be used in future to test work
submi ed by others.

Note:1) The a achment of this statement on any electronically submi ed assignments will be
deemed to have the same authority as a signed statement.

2) The Group Leader signs the declara on on behalf of all members.

Signature: Han Date: 27/10/2024

Email: phannguyenbaohan212@[Link]

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 Feedback/Comments
Main Strengths

Main Weaknesses

Suggestions for improvement

Student acknowledge feedback/comments

Grader’s signature Student’s signature:

Date: Date:

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 TABLE OF CONTENTS

1. Introduction ..................................................................................................................... 5

2. Survey Design and Data Collection ................................................................................ 5

3. Data Analysis and Interpretation ................................................................................... 6

3.1. Survey Results ............................................................................................................ 6

3.2. Factors Influencing Online Purchasing Decisions...................................................... 9

3.3. Analyzing how different factors impact consumer behavior .................................... 15

3.4. The role of technology in e-commerce ..................................................................... 16

4. Discussion and recommendation of marketing strategies to improve the consumer

experience ........................................................................................................................... 17

5. Conclusion ...................................................................................................................... 18

REFERENCE LIST ........................................................................................................... 18

GROUP MEETING MINUTES ......................................................................................... 19

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 RESEARCH ON FACTORS INFLUENCING ONLINE SHOPPING
DECISIONS ON TIKTOK SHOP OF PEOPLE WHO RESIDE IN
WARD 4, PHU NHUAN DISTRICT

1. Introduction

“Consumer behavior in e-commerce platforms is one of the most extensively researched

areas. Numerous studies in this field assessed consumer online shopping behavior from
various aspects.” (Huseynov & Özkan, 2019). Identifying the determinants of online
consumer behaviors is a crucial research area for companies striving to enhance their
competitive position in the e-commerce landscape. Most customers’ evaluations will be
predicated on a combination of factors such as product quality, price fairness, buyer
sentiments, and purchasing experiences.

This research aims to: (1) identify the main factors that affect customers who purchase
goods online; (2) investigate patterns of consumer behavior to comprehend how these
determinants interact; and (3) evaluate how technology might impede or facilitate the
shopping experience. The study intends to provide insights that magnify customer
engagement in the digital marketplace and inform effective marketing tactics. A focus on
TikTok Shop, one of Vietnam’s most substantial online shopping platforms, is planned.

2. Survey Design and Data Collection

This study adopts a survey methodology, collecting data through a structured

questionnaire. The model and hypotheses were constructed of 5 sections containing 17
questions, illustrated by quantitative data. The survey targeted individuals who had
previously made purchases on multiple e-commerce websites. The questions covered
diverse product categories including fashion, household goods, electronics, and others.

The data was acquired in Ward 4, Phu Nhuan District, using Google Forms due to its
efficiency in reaching a wide audience range. A two-week data collection period was
allowed, resulting in 120 questionnaires for analysis.

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3. Data Analysis and Interpretation

3.1. Survey Results

a) Respondent profiles

It can be seen that the respondents are fairly evenly split across both genders. Female
respondents have a slightly higher representation, at 52%, compared to male respondents
who account for the remaining 48%.

Most respondents are under 25 years old, accounting for 57%, followed by young adults,
occupying 18%. The 36-45 age group represents 14% of the total, whereas middle-aged
individuals are the lowest, at only 11%.

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59% of the respondents are single, which is the largest group with 71 individuals. In
contrast, the married group has only 49 people, accounting for 41% of the overall
population.

The data highlights the figure for individuals having earnings of under 5,000,000
VND/month, accounting for 42% of respondents, with the majority at the secondary level
and only one person at the postgraduate level. Those with income from 5,000,000 VND to
10,000,000 VND represent 27% of the total, including 16 university students and seven
secondary students. Besides, 22% is the proportion of shoppers with a salary from
10,000,001 VND to 20,000,000 VND, with postgraduates being the largest group (17), and
the lowest is the secondary level (4). Notably, only 9% of respondents are those with an
income of over 20,000,000 VND/month. In the aforementioned group, buyers with
postgraduate degrees are eight; while the figure for people studying at high school and
university is relatively low.

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 b) Online shopping behavior

“Online shopping behavior refers to the patterns and preferences exhibited by consumers
when purchasing products and services through websites or online shopping apps.”
(Nabard Peishahwar & Krishnaba Vaghela, 2022). Specifically, the figure for online
shopping a few times per month comprises 38% of the total account since most
respondents are students, most of their leisure time might be allocated to buying goods
online. Following closely behind, 23% of respondents shop online multiple times a week.
Next, the proportion of customers shopping on the Internet less than once a month and
once a month constitutes 19% and 12% respectively. Only 8% purchase products once per
week.

Figure 1. Popular products purchased online by customers

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 Figure 2. Online shopping platforms frequently used by customers

The two most purchased product categories according to the responses were: clothing and
accessories at 32%; Beauty and Personal Care Products at 20%. Additionally, the
electronics, books, and media categories are also emphasized, with a total of 28% of
customers indicating that they frequently buy these items. Notably, around 40% of
consumers stated that they are in favor of purchasing items on TikTok Shop. In contrast,
shopping on other e-commerce platforms such as Shopee, Facebook, Taobao, and so forth,
accounts for lower percentages, ranging from below 10% to approximately 17%.

3.2. Factors Influencing Online Purchasing Decisions

a) Determinants
- Price is an important factor in my online purchasing decisions.
 Mean: 4.2
 Median: 5
 Mode: 5

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- I find online shopping more convenient than physical stores.
 Mean: 3.6
 Median: 3
 Mode: 3

- I prioritize product quality when making online purchases.

 Mean: 4.24
 Median: 5
 Mode: 5

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- I am more likely to purchase from a well-known brand than an unknown one
online.
 Mean: 3.58
 Median: 3
 Mode: 3

The survey results reveal that consumers generally have positive attitudes toward internet
shopping, with 4.24 being the highest mean illustrated by product quality. The mean of
price is 4.2, followed by online store convenience with a mean of 3.6. However, brand
reputation data experiences slight variation in terms of the mean (3.58), emphasizing trust
deficit from the customer body. Those statistics provide clear insights into consumer
behavior and preferences. Based on the data above, product quality is of great significance.

b) The role of technology

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- I am satisfied with the usability of most online shopping websites.
 Mean: 3.4
 Median: 3
 Mode: 3

- Various payment options are important to me when making an online purchase.

 Mean: 3.8
 Median: 5
 Mode: 5

- I frequently use a mobile device (smartphone/tablet) for online shopping.

 Mean: 4.3
 Median: 5
 Mode: 5

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- I am satisfied with the overall mobile shopping experience.
 Mean: 3.9
 Median: 4,5
 Mode: 5

Based on statistics, it demonstrates that the technological factors influencing consumers'

purchasing decisions are diverse. Specifically, the level of satisfaction with the usability of
online shopping websites has a mean of 3.4, while different payment methods are slightly
appreciated with a mean of 3.8, meeting the needs of consumers. Furthermore, the
popularity of mobile devices is illustrated through a high mean of 4.3, showing that they
often use mobile phones for purchasing and fairly appreciate this experience with a mean
of 3.9.

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 c) Consumer behavior and satisfaction
- I have abandoned a purchase due to website issues like slow loading or difficult
navigation.
 Mean: 3.3
 Median: 3
 Mode: 3

- I am satisfied with my overall online shopping experience.

 Mean: 3.6
 Median: 4
 Mode: 4

The slow load speed and difficult navigation would dissuade consumers from having a
pleasurable shopping experience, resulting in cart abandonment, with a mean of 3.3.
Besides, the overall consumer gratification records the mean, which is 3.6 out of 5 on the

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Likert scale. Therefore, improving website performance is essential to optimize individual
experience.

3.3. Analyzing how different factors impact consumer behavior

 Price

The law of demand is deemed fundamental in economic concepts, indicating that when the
price of goods increases, consumer demand declines simultaneously (NCBI, 2019). Pricing
tactics including discounts and promotions are possibly key factors influencing customer
behavior. In particular, during a live event on TikTok sellers usually implement flash sales
as a practical strategy to boost the revenue. Providing exclusive discounts with bundle
offers substantially enhances consumer engagement as well as leads to the fear of missing
out, thereby prompting people to purchase items without hesitation. However, individuals
who are immensely concerned about product quality might not be enticed by good deals.

 Convenience

Buying goods on TikTok has been greatly supported by users owing to the combination of
entertainment and innovative e-commerce functionality. To spark people’s interest, TikTok
emphasizes convenience, allowing users to seamlessly browse products. Specifically,
online retailers would address any questions about items during live stream to facilitate a
better understanding of goods to consumers. Besides, by highlighting return policies,
delivery medium, and fulfillment services, this platform provides incentives to foster
consumer retention.

 Product quality

Product quality is of paramount importance to Internet shopping since checking item

materials and productivity directly is unfeasible. Customers typically rely on online
reviews and ratings as a way to assess product attributes (Smith,2018). This study
identifies the tendency to place trust in the previous buyer's opinion or Electronic Word of
Mouth rather than marketing advertisements. For instance, subjective feedback boosts
individual confidence whereas negative ratings dissuade buying intention instantly.
Furthermore, sellers would offer product warranties and guarantees to consumers in terms
of ensuring buyer rights.

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  Brand reputation

Wilson, A. (2018) stated that a brand with high identification holds sway on customer
mindset as well as emotional attachment towards the brand. On the TikTok app, consumers
heavily rely on social proof and shopper reviews to consider before making decisions since
the mentioned factors enable them to mitigate perceived risks. Positive brand image not
only contributes to shaping the individuals’ perception of products but also bolsters their
trust. Once customers gradually maintain close rapport with specific companies, they are
inclined to repurchase goods in the future.

3.4. The role of technology in e-commerce

 Website usability

Website usability is such a necessary feature that enables TikTok to stand out from others
in terms of motivating action. TikTok is excellent in designing a layout that delivers ease of
interaction by employing simple gestures, particularly the website version users effortlessly
scroll up, swipe, and facilitate navigation. To bring exhilarating shopping experiences, the
website would be personalized based on each interest and generation, illustrated by the
number of interactions on the app.

 Payment options

TikTok optimizes the transaction procedures by catering Vietnamese with a variety of

payment mediums including e-wallet (Momo, ZaloPay), credit/ debit card (Visa,
Mastercard, American Express), Internet Banking, and COD. The secure checkout system
can reduce spoofing and technical risks and protect private information, thereby boosting
consumer confidence. Furthermore, advancing technology such as mobile wallets and
cryptocurrencies are increasingly used since these payment methods can prevent identity
theft as well as reduce abandoning cart rates due to the trust deficit.

 Mobile compatibility

In the digital marketplace, the immense innovation of smart devices brings ease to people
to flexibly assess the services and goods. Thanks to the intuitive interface and effective
design combined with video shorts possibly enrich the immersive experience that directly
connects with user emotion (Beautique, n.d.). Additionally, unique features including
location-based services and augmented reality enable people to interact with brands and

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provide a clear perception of product functions, thereby allowing them to make good
decisions as well as reducing the rate of returning goods.

 Overall satisfaction levels

Firms leverage several metrics, illustrated by sentiment analysis, customer opinion, and
practical surveys to evaluate buyer satisfaction rates. Credible good reviews encourage
people’s purchasing intention by providing social proof, whereas surveys and sentiment
analysis empower businesses to determine indicators affecting shopper gratification,
ultimately pinpointing aspects for adjustment. Besides, comprehending the interplay of
satisfaction and main factors like convenience, price, product attributes, and technology is
significant in helping companies fulfill buyer expectations.

4. Discussion and recommendation of marketing strategies to improve the consumer

experience

According to the survey, to fulfill the expectation of purchasing goods on the TikTok
website, firms might facilitate user experience by highly determining factors including web
usability, loading speed, and navigation difficulty. Specifically, designers should make
adjustments for a user-friendly interface with notable searching tools allowing users,
particularly those who are technologically unsavvy to seamlessly access and seek products.
Furthermore, managers can implement image compression metrics that dramatically reduce
the file size, as well as address the challenges of interruption due to the high traffic.

In order to enhance consumer shopping gratification on TikTok, companies can leverage

flexible marketing tactics. Price fairness is perceived as a good morality and a good
business simultaneously (Barra, M., 2018). Tracking competitive prices among opponents
enables enterprises to adjust the fair price and offer multiple coupon codes to entice
customers. Besides, product quality is the key driver of purchasing actions. Allocating
efforts to ensure standardized good attributes is paramount with respect to people’s trust
and brand attachment. Finally, businesses should wholeheartedly support buyers by
addressing any problems in the shopping process to foster individual loyalty. In
conclusion, enterprises are more likely to improve satisfaction rates and stimulate revenue
by dedicating time to improve on those determinants.

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5. Conclusion

This survey investigated a group of subjects living in Ward 4 in terms of ascertaining how
factors affect consumers’ behavior towards e-commerce. The results revealed two
paramount determinants of the checkout process, including price fairness and product
quality. Hence, e-commerce businesses must balance standardized product attributes along
with offering reasonable prices; otherwise, customers are likely to seek alternatives.

REFERENCE LIST

Huseynov, F., & Özkan, Y. S. (2019). Online consumer typologies and their shopping
behaviors in B2C e-commerce platforms. Sage Open, 9(2).
[Link]

National Center for Biotechnology Information (NCBI). (2019). The law of demand and
the loss of confidence effect: An experimental study.
[Link]

Smith, J. (2018). The impact of online reviews on consumer perception of product quality.
Journal of Marketing Research, 55(4), 567-580.
[Link]

Wilson, A. (2018). Influence of brand image on customer loyalty: A look from

Bangladesh. Journal of Business Management and Economic Research, 7(1), 11-24.
[Link]

Beautique. (n.d.). Lợi ích của trải nghiệm thương hiệu immersive.
[Link]
brand-experience

Barra, M. (2018). Fair pricing is not just good ethics; it's good business. Business Ethics
Journal.

Nabard Peishahwar, & Vaghela, K. (2022). Online shopping behavior: Patterns and
preferences in purchasing products and services. Journal of Multidisciplinary Cases, 2(05),
49–54. [Link]

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GROUP MEETING MINUTES

Group Meeting Minutes: NO.1

Chairperson
Attendees 1. Vo Ngoc Van Anh
2. Vo Ngoc Minh Tu
3. Chu Nguyen Thanh Thao
4. Phan Nguyen Bao Han
Absentees 1.
2.
3.
4.
Date/Day October 1st, 2024
Time from 6:30 PM to 8:00 PM

Minutes

Agenda  Choosing TikTokshop as the main platform for online purchasing in

University of Finance - Marketing
 Emphasizing the innovative and unique features that make TikTok
stand out in the digital marketplace.
 Deciding a specific number of respondents.
Discussion  Created a survey about factors that influence customers’ online
shopping decisions via Google Forms.
 Assigned specific task for each member.
 Members start to make detailed outlines for each aspect being
mentioned.
 Sending the survey form to others with the aim of reaching a total of
60 respondents.
Conclusion

Action Items Person Responsible Deadline

Created a survey via Google Minh Tu
Forms.
Introduction, Survey Design Minh Tu
and Data Collection.
Undertake Data Analysis and Bao Han and Thanh Thao
Interpretation
Handle the Discussion and Van Anh
recommendation and
Conclusion.
Search several credible Van Anh
sources to cite.

Group Members Signature:

Student’s signature: Van Anh Student’s signature: Thao
Student’s signature: Tu Student’s signature: Han

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Group Meeting Minutes: NO.2

Chairperson
Attendees 1. Vo Ngoc Van Anh
2. Vo Ngoc Minh Tu
3. Chu Nguyen Thanh Thao
4. Phan Nguyen Bao Han
Absentees 1.
2.
3.
4.
Date/Day October 5th,2024
Time from 3:00 PM to 5:00 PM

Minutes

Agenda  Team Feedback

 Project Updates

Discussion  The survey form has recorded a total of 75 respondents after the first
week.

Conclusion

Action Items Person Responsible Deadline

Provided feedback on the Bao Han
project workflow, suggesting
improvements.
Create Cover Sheet and Table Thanh Thao
of Content
Make reference list Bao Han

Group Members Signature:

Student’s signature: Van Anh Student’s signature: Thao

Student’s signature: Tu Student’s signature: Han

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Group Meeting Minutes: NO.3

Chairperson
Attendees 1. Vo Ngoc Van Anh
2. Vo Ngoc Minh Tu
3. Chu Nguyen Thanh Thao
4. Phan Nguyen Bao Han
Absentees 1.
2.
3.
4.
Date/Day October 12th, 2024
Time from 8:00 PM to 10:00 PM

Minutes

Agenda  Mid-project review

 Planning for next steps
Discussion  The survey form recorded a target total of 120 respondents
 A mid-project review was conducted to assess overall progress and
identify challenges
Conclusion

Action Items Person Responsible Deadline

Examine the impact of Bao Han
technology on online shopping
and evaluate overall customer
satisfaction by October 16th.
Identify and explain the key Thanh Thao
factors that affect online
purchasing decisions
according to the survey
results.
Offer targeted Van Anh
recommendations for
enhancing online shopping
experiences based on the
survey findings.
Present a summary of the Minh Tu
survey findings

Group Members Signature:

Student’s signature: Van Anh Student’s signature: Thao

Student’s signature: Tu Student’s signature: Han

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Group Meeting Minutes: NO.4

Chairperson
Attendees 1. Vo Ngoc Van Anh
2. Vo Ngoc Minh Tu
3. Chu Nguyen Thanh Thao
4. Phan Nguyen Bao Han
Absentees 1.
2.
3.
4.
Date/Day October 17, 2024
Time from 2:00 PM to 3:00 PM

Minutes

Agenda  Planning for the Next steps

 Task progress updates
Discussion
Conclusion

Action Items Person Responsible Deadline

Finalized the essay of Data Minh Tu
collection
Checked the section Bao Han and Thanh Thao
completed by Minh Tu and
Van Anh
Write Group meeting minutes Van Anh and Minh Tu

Group Members Signature:

Student’s signature: Van Anh Student’s signature: Thao

Student’s signature: Tu Student’s signature: Han

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Group Meeting Minutes: NO.5

Chairperson
Attendees 1. Vo Ngoc Van Anh
2. Vo Ngoc Minh Tu
3. Chu Nguyen Thanh Thao
4. Phan Nguyen Bao Han
Absentees 1.
2.
3.
4.
Date/Day October 22nd, 2024
Time from 7:00 PM to 8:00 PM

Minutes

Agenda  The design is finished.

 Data and resources are thoroughly examined before internalization.
 Verify the spelling and word repetition.
Discussion
Conclusion

Action Items Person Responsible Deadline

Synthesize the entire report Thanh Thao
into a word file and edit to suit
the requirements of the
assignment.
Submit to turnitin for Thanh Thao
plagiarism check and submit
to LMS.

Group Members Signature:

Student’s signature: Van Anh Student’s signature: Thao

Student’s signature: Tu Student’s signature: Han

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