Impacts of personalized advertising on online purchasing behavior of young consumers on TikTok Shop

Type of the article: Research ArticleAbstractThe rise of social commerce has transformed online purchasing behavior, with platforms like TikTok Shop integrating personalized advertising to enhance consumer engagement. This study investigates the impact of perceived personalized advertising on online purchasing behavior among young consumers in Vietnam. The research examines how advertising value, perceived relevance, perceived novelty, and privacy concern mediate the relationship between personalized advertising and purchasing behavior. A quantitative approach was employed, collecting data from 287 young customers, aged 18 to 35, who had experience purchasing via TikTok Shop in 2024. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study tested both direct and indirect effects among the proposed variables. Findings indicate the total effect of personalized advertising on purchasing behavior through advertising value, perceived relevance, and perceived novelty with t-statistics of 8.075 and a p-value below 1%. Notably, perceived novelty emerged as the most influential mediator (t = 4.543 and p-value = 0.000), suggesting that creative and distinctive advertising is pivotal in motivating purchase decisions. The second and third influential mediators are advertising value (t = 3.600, p-value = 0.000) and perceived relevance (t = 3.598, p-value = 0.000). In contrast, privacy concern had no significant impact on purchasing behavior, implying that young consumers prioritize engaging and relevant advertisements over potential risks to personal data. These results provide meaningful theoretical contributions to digital marketing literature and offer practical implications for marketers.