The One That Got Away: Factors Affecting Generation Z’s Decision To Stop Using Tiki E-Commerce Platform In Ho Chi Minh City

Abstract

The study addresses the pressing need to investigate the factors contributing to customer attrition within the competitive landscape of e-commerce platforms, using a case study of Tiki, a pone of the strongest e-commerce platforms in the Vietnamese market. Against the backdrop of declining revenue and market share, coupled with heightened competition from platforms like Shopee and Lazada, this research endeavors to identify the specific determinants influencing Generation Z's decision to discontinue shopping on the Tiki website in Ho Chi Minh City. Employing a mixed-methods approach combining qualitative and quantitative methodologies, the research delves into the intricacies of customer behavior through indepth interviews with 15 interviewees and a survey targeting individuals aged 18 to 27 residing in Ho Chi Minh City that has attracted 202 respondents. The findings reveal four significant factors impacting Gen Z's decision to cease shopping on Tiki: product quality, user interface, product variety, and advertising, with price and promotion showing negligible influence. Notably, the study underscores the paramount importance of product quality, followed by user interface, in shaping customers' perceptions and ultimately their decision-making process. Leveraging these insights, the study offers practical recommendations for Tiki and other e-commerce enterprises to enhance their offerings and bolster customer loyalty in the fiercely competitive market. Theoretical contributions encompass the refinement of the research model and the identification of subjective and objective factors affecting Gen Z's shopping behavior on Tiki. Moreover, the study provides valuable lessons for e-commerce platforms in Vietnam, offering actionable insights to navigate the evolving digital landscape and thrive amidst the challenges of the 4.0 Industrial Revolution.