An Overview of TikTok on Online Shopping Behaviour in Malaysia

An Overview of TikTok on Online Shopping Behaviour in Malaysia

Nik Mohd Baidzani Haddad Ibrahim¹*, Khairul Anuar Mohammad Shah², Nik Safiah Nik Abdullah³

^1,2School of Management, Universiti Sains Malaysia, 11800 USM Penang, Malaysia

³Islamic Business School, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah, Malaysia 

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9020132

Received: 22 January 2025; Revised: 01 February 2025; Accepted: 04 February 2025; Published: 06 March 2025

ABSTRACT

Malaysian consumers’ purchasing habits have changed notably in the last several years, partly because of the nation’s expanding internet penetration and quick uptake of digital technology. Online shopping has risen in popularity as more Malaysians have access to the internet due to its convenience and user-friendliness. People’s shopping habits have changed as a result, with younger generations gathering to digital platforms to fulfil their demands. This study explores the overview of TikTok on customer behaviour, particularly concerning Malaysian online purchasing. TikTok is becoming more and more influential in influencing the attitudes and actions of consumers as its popularity increases. Using a qualitative methodology, the study focuses on document analysis found in library research. This includes looking over related books, journals, theses, websites, and other materials. The results emphasize the obstacles and prospects for augmenting TikTok’s influence on the e-commerce behaviours of Malaysian consumers. Marketers and companies looking to use TikTok as a tool to increase customer engagement and drive sales in the e-commerce area will find these insights useful. In addition, the study also indicates that improving the ethical practices of marketing, information verification and trustworthiness are areas that need concern. Techniques such as user segmentation by digital skills for live video marketing were made out to be crucial in TikTok’s exploding e-commerce. As highlighted, the platform has the flexibility to deal with the existing problems and improve user experience while being a changing tool for business and may help close the gap between young digital shoppers and adolescents in Malaysia. Concern is also brought up regarding gaps in the user experience. Longitudinal research is proposed to track changes in behaviour and look into demographic and cultural factors that shape consumerism. Employing additional sources of data, especially qualitative ones, and doing cross-regional contrasts would make for more holistic appealing marketing approaches and deepen the understanding of the place TikTok has in the new era of e-commerce.

Keywords: Online Shopping, Consumer Behaviour, TikTok Shop, e-Commerce

INTRODUCTION

The rapid rise in global internet usage has significantly influenced consumer behaviour. Petrosyan (2024) reports that 5.44 billion people, or 67.1% of the world’s population, were internet users, and of these, 5.07 billion (62.6%) were active on social media. This widespread internet adoption has transformed how consumers engage with products and services. With access to vast amounts of information, consumers can now easily compare prices, assess different products, and make more informed buying decisions (Butler & Peppard, 1998). The internet has thus reshaped the shopping experience, making it more convenient and informed. This shift has led to the rise of online shopping, which refers to the purchasing and selling of products and services over the internet (Nazir et al., 2012). Social media platforms have become crucial in shaping consumer preferences and driving e-commerce activities. As a result, consumers are increasingly turning to online shopping, driven by the convenience and accessibility of the internet (Kennedy & Coughlan, 2006).

The transformation of consumer behaviour in Malaysia, particularly in online shopping, has been significantly influenced by digital technology and internet accessibility. However, while the move to online shopping is strong, older demographics face challenges in adopting digital platforms, underscoring a digital divide in shopping behaviour. Social media, especially TikTok, has transformed how consumers engage with brands and make purchasing decisions. TikTok’s user base in Malaysia has grown rapidly, making the platform a key player in e-commerce. Its short, engaging content allows brands to connect with potential customers in creative ways, making it a valuable area of study. This research focuses on how TikTok influences online shopping in Malaysia, offering insights that can help businesses tap into this growing marketing channel.

The Integration of E-Commerce with Social Media Platforms

Transitioning from the influence of social media to a broader context, e-commerce plays a pivotal role in this evolving marketplace. As explained by Bloomenthal (2024), electronic commerce (e-commerce) refers to companies and individuals that buy and sell goods and services over the internet. E-commerce operates in different types of market segments and can be conducted over computers, tablets, smartphones, and other smart devices. Nearly every imaginable product and service is available through e-commerce transactions, including books, music, plane tickets, and financial services such as stock investing and online banking. As such, it is considered a very disruptive technology. Consequently, e-commerce is considered a very disruptive technology, revolutionizing how consumers interact with businesses and shaping the future of retail.

It is worth recalling that e-commerce means the use of computer telecommunications for the selling of physical goods and services. According to Bloomenthal (2024), it encompasses more than a single party together with data or currency to affect a transaction. It is a component of the broader industry referred to as e-business, which encompasses all the activities necessary to operate an organization online (Winter, 2024). The technology has assisted businesses (more so the small business firms especially those located in a limited market) access and penetrate a larger market through the provision of cheaper and more efficient means of goods or services delivery.

The present context of e-commerce sites significantly deviates from the normal economy. For instance, e-hailing services, delivery services, and e-wallet facilities are more flexible and convenient to customers in selecting services when they are on flexible time. Nonetheless, according to the research conducted by Harunar Rashid et al. (2019), the retail industry including online shopping in e-commerce platforms assists in the general utilization of the Internet platforms. Today, more e-commerce activities incorporate social media platforms including TikTok, Facebook, Instagram, and Twitter for the sale of their products. As of now, there are 14.43 million Malaysians who are online shoppers and grouped while 59.9% of mobile users shop using their devices (Commission Factory, 2023).

As shown in Figure 1, the e-commerce landscape in Malaysia has undergone significant transformation and growth since 2012, driven by the emergence of key players such as Lazada, Zalora, Rakuten, and others. Lazada, initially founded by Rocket Internet and later acquired by Alibaba Group, quickly became Malaysia’s leading e-commerce platform, surpassing established competitors like Lelong and eBay (Haron, 2019). This growth was further accelerated by Alibaba Group’s acquisition of a majority share in Lazada in 2016, positioning it as the top e-commerce operator in Southeast Asia by 2018 (Australian Trade and Investment Commission, 2020). Alongside Lazada, other major platforms like Shopee, PrestoMall (formerly 11street Malaysia), and Lelong have also contributed to the competitive e-commerce market, offering various products across various categories.

The rapid expansion of e-commerce in Malaysia can be attributed to the growing appeal of conducting business online, which has become increasingly significant in recent years. As firms strive to gain a competitive advantage, they have increasingly turned to e-commerce as a means of interacting with customers (Lee & Lin, 2005). The potential for online business has fostered a robust and dynamic e-commerce environment, particularly in response to the rising global trend of electronic commerce.

Figure 1: The History of E-Commerce in Malaysia

Source: Haron, 2019.

The impact of the COVID-19 pandemic further accelerated the adoption of e-commerce in Malaysia. The Movement Control Order (MCO), introduced on March 18, 2020, to contain the spread of the virus, impacted over 32 million Malaysians and brought about new norms in the retail sector. Ian in Suara Merdeka (2020) noted that major e-commerce platforms like Shopee saw shifts in consumer buying habits during this time, highlighting the growing role of e-commerce in daily life. Consequently, business trends and online transactions in Malaysia have significantly increased, becoming widely accepted by the public (Ramlee & Pitchan, 2018).

The Evolution of Online Shopping in Malaysia: Demographics, Trends and Challenges

In recent years, consumer behaviour in Malaysia has shifted significantly due to the rapid adoption of digital technologies and the increasing access to the internet. As more Malaysians go online, the convenience of e-commerce has made online shopping more attractive, especially among younger generations. This shift is most evident in those in their 20s and 30s, who are more likely to use digital platforms for shopping due to their comfort with technology and exposure to online advertising. Recent data from the Malaysian Communications and Multimedia Commission (2020) shows that the percentage of internet users engaged in online shopping rose from 53.3% to 64.2%, with younger users (in their 20s and 30s) making up the largest share of this group at 67.2% (Zin et al., 2024).

Gen Z has shown an increasing reliance on digital devices, with 98% owning smartphones and spending an average of four hours daily on apps (excluding gaming) (Kastenholz, 2021). Unlike millennials, Gen Z tends to favour social commerce, where purchases are made entirely within social media platforms, highlighting the growing importance of these platforms as marketplaces.

However, as e-commerce in Malaysia grows, so do the risks associate with online transactions. Consumers are exposed to cyber threats like data breaches and the theft of personal information, such as credit card numbers and account details. As businesses adapt to these changes, focusing on cybersecurity concerns is important to maintaining consumer trust and staying competitive in Malaysia’s evolving digital economy. Cybercriminals have taken advantage of these drawbacks, according to the Royal Malaysia Police Portal (2015), which has increased e-commerce fraud cases. The New Straits Times (2021) reported that more than 8,000 cases of e-commerce fraud were recorded by the police as of October 31, 2021, resulting in losses amounting to RM57.73 million. This is a significant increase from 2018 when 3,318 cases were reported with losses totalling RM22.39 million.

Considering these risks, the increasing engagement of young people on social media platforms presents both opportunities and challenges for e-commerce. Despite a general trend of consumers cutting down on social-commerce usage, the number of young people sharing personal content on these platforms continues to rise (Mintel, 2018). However, this trend brings with it concerns related to data protection, security, and privacy (Salvatori & Marcantoni, 2015). Retailers looking to expand into e-commerce must carefully consider the implications of data protection laws, as failing to comply can have serious consequences. The complexity of e-commerce is further compounded by the fact that retailers often utilize existing social networking platforms for social commerce (Ling & Husain, 2013). Yet, controlling consumer data on large platforms like Facebook remains an enormous challenge (Han et al., 2018).

However, the online shopping experience is not without its challenges. Most consumers make online purchases based on images, quality information, video clips, and other forms of external representations of products or services, which may not accurately portray the real product or service (Kolesar & Wayne-Galbraith, 2000). According to Shwu-Ing (2003), a person’s buying choices are influenced by psychological factors such as motivation, perception, learning, beliefs, and attitudes. Understanding these factors can aid online merchants in designing effective strategies to enhance sales (Aldridge et al., 1997).

In recent years, the introduction of new social media platforms has transformed how people communicate and share their consumer experiences. Among these platforms, TikTok has rapidly gained popularity, particularly during the global pandemic (Seto, 2021). TikTok allows users to create and share short-form video content, which has resonated with a vast audience. The platform’s algorithm tailors content to individual users based on their interactions, creating a personalized experience (Herrman, 2019). This personalized approach has made TikTok an attractive platform for both content creators and businesses.

The Global Rise of Online Shopping

To further illustrate this point, online shopping has grown in popularity over the previous two decades, with over 1.6 billion individuals worldwide purchasing items online (Rehman et al., 2019). This significant shift in consumer behaviour is part of a broader revolutionary period during which the internet has played a variety of roles in daily life. Consequently, this evolution has led to a substantial increase in internet purchasing, as noted by Lian and Lin (2008). Moreover, as stated by Taheer (2024), the trend of online shopping has seen significant growth in recent years, and it is expected to continue expanding. This ongoing growth can be attributed to the process of digitalization, which, coupled with the internet, enables companies to sell products and services without the need for physical presence. Among the key drivers for consumers are convenience, a wider selection of goods, and competitive pricing, all of which have played a crucial role in the rise of online shopping (Taheer, 2024).

According to Sukhanova (2024), there were 268 million online shoppers in the United States in 2022. This number is projected to increase to almost 285 million online shoppers in 2025, but Americans aren’t the only ones who shop online. People all over the world understand the benefits. Almost 50% of social commerce consumers in China have made purchases through social networks, giving it the highest rate globally (Taheer, 2024). Moreover, as highlighted by recent estimates from SkyQuest Technology Consulting (2022), global e-commerce sales will reach $58.74 Trillion by 2028. This represents a significant increase from previous years and indicates the growing popularity of online shopping. Additionally, online retail sales are projected to grow at a compound annual growth rate (CAGR) of 14.6% from 2021 to 2028 (Facts & Factors, 2021). This suggests that the online shopping industry is expected to continue growing at a rapid pace for the foreseeable future.

This surge in online shopping aligns with the findings of Wolfinbarger and Gilly (2001), who noted that one of the reasons online buying is appealing is the joy of having freedom, being in control, and having fun. Similarly, Choudhury and Dey (2014) observed that the majority of internet shoppers are young individuals, a trend likely due to their familiarity with computers, the internet, and information technology (Hernandez et al., 2011). However, it is important to recognize that while good internet skills indicate digital savvy, excessive exposure to online platforms can lead to issues such as internet addiction (Young, 2004), security risks (Thakur & Srivastava, 2015), and financial risks (Koenig-Lewis et al., 2010; Martins et al.,2014; Zheng et al., 2012).

In addition, other studies have shed light on the nuances of online shopping behaviour. For instance, Ansari (2016) found that while Saudis are aware of online shopping, females showed more interest than males. Furthermore, online store design was identified as a crucial factor influencing customer decisions. Huseynov and Yildirim (2016) emphasized that online shopping has unique characteristics, with the lack of physical interaction being a critical impediment. Privacy concerns and the security of financial transactions were also highlighted as major barriers. Supporting this, Demangeot and Broderick (2010) found that perceived ease of use is less influential on behaviour than security and privacy issues. Jusoh and Ling (2012) similarly observed that perceived online risks can prevent relationship-building between customers and online shops, even if customers spend hours on the internet.

TikTok’s Rapid Growth and Global Impact: A Comprehensive Overview

TikTok, one of the fastest-growing social media platforms, has rapidly captured the attention of a global audience, particularly the younger demographic. According to Data Portal (2021), TikTok had 689 million monthly active users worldwide, making it the 7th largest social media platform. While initially popular among younger users, TikTok is witnessing increased adoption by older generations, further expanding its reach and influence in the digital space.

The popularity of social media platforms like TikTok has not only transformed communication but has also reshaped how consumers discover and engage with brands. According to Kastenholz (2021), a significant majority (97%) of Gen Z consumers now use social media as their top source of shopping inspiration. This demographic is particularly drawn to authentic and organic content, favouring platforms that prioritize video content, such as TikTok. The platform’s influence is evident in the popularity of hashtags like #tiktokmademebuyit, which has garnered upwards of 2.3 billion views, highlighting TikTok’s role as a powerful driver of social commerce.

As Seto (2021) observed, TikTok has become one of the most prominent social media platforms in recent years, with its popularity soaring during the global pandemic. Many users have turned to this short-form video platform to express their creativity and connect with people worldwide. The diverse range of content, including dance, trend recaps, challenges, and more, has quickly built a large TikTok community. In Malaysia, TikTok has seen the rise of influential content creators, or TikTokers, who entertain audiences with topics ranging from dance and cooking to sports, well-being, and beauty. TikTok has proven that video content can reach huge audiences with the right type of content and target audience.

Moreover, TikTok has demonstrated value for brands and social media strategies due to the widespread demand for fun and entertaining content. TikTok videos are not confined to the platform but also spread to other social media platforms such as Twitter, Instagram, and Facebook (Seto, 2021). This cross-platform distribution means that brand campaigns and challenges can gain additional exposure to other social communities. The rapid movement and spread of TikTok videos offer a promising method for achieving virality, particularly concerning metrics like Reach and Impressions.

According to Backlinko (2024), TikTok reached over one billion monthly active users in 2024, joining a handful of other social media apps that have achieved the same milestone. Launched in 2017 as the international version of the Chinese-developed social media app Douyin, TikTok’s popularity surged in 2020 during the COVID-19 pandemic, reaching approximately 313.5 million downloads in the first quarter of that year (Ceci, 2024). By 2024, TikTok had approximately 2.05 billion users worldwide, with projections suggesting that this number could rise to 2.35 billion by 2029. This remarkable growth underscores TikTok’s influential role in digital marketing and consumer engagement.

Oberlo (2024) highlights that the number of TikTok users is anticipated to rise by 6.7% in 2024, surpassing 2 billion users. Indonesia is home to the largest number of TikTok users, with 127.5 million, followed by the United States and Brazil, with 121.5 million and 101.8 million users, respectively. Despite this growth, there is a noticeable slowdown in TikTok’s user base expansion compared to previous years. Nevertheless, the platform is expected to continue growing, albeit at a slower pace, with experts predicting that TikTok will reach 2.35 billion users by 2029. Given TikTok’s popularity varies by country, it is crucial for brands to understand the platform’s usage within their target markets. TikTok is not only ranked among the top influencer marketing platforms but is also a leading video marketing platform, making it a popular channel for businesses looking to promote their brands online (Oberlo, 2024).

Figure 2: TikTok: Advertising Audience Overview

Source: Howe, 2024

Figure 2 shows TikTok has surpassed all other social media platforms in terms of user engagement and ad reach and has arguably become the most popular platform in Malaysia. In comparison to the previous year, TikTok has seen a significant rise of 48.6%, which corresponds to an extra 9.4 million users that can be targeted. With this, the total number of people who might see ads on TikTok is 28.68 million. With 83.1% of the population exposed to the platform’s ads, it reaches a sizable audience, especially among those adepts at using the internet. Furthermore, the platform’s 85.4% ad reach compared to total internet users is even more remarkable; with this figure, TikTok engages the great majority of online users in Malaysia. These statistics show that TikTok has become Malaysia’s key social media platform for digital marketing efforts. In addition to its strong ad reach growth and monthly exposure to Malaysian social media users, TikTok is an influential fixture in Malaysians’ social media routines, making it an essential point of contact for marketers trying to target the country’s dynamic demographic.

METHODOLOGY

Using a qualitative methodology, the study focuses on document analysis found in library research. This includes looking over related books, journals, theses, websites, and other materials.

The Role of Tiktok in Driving Online Shopping among Malaysian Youth

The utilization of social media platforms, such as TikTok, plays a significant role in shaping consumer behaviour. Notably, TikTok has emerged as one of the most widely used social media platforms today. TikTok, which was first introduced in 2016, has achieved more than 2 billion downloads worldwide. The TikTok platform, launched in September 2017, has surged in prominence over time. Fast-forward to September 2021, TikTok announced a milestone of reaching a staggering 1 billion users. In the financial realm, TikTok notched an impressive $4 billion in advertising revenue in 2021. Additionally, in October 2022, TikTok unveiled its plans to enter the U.S. e-commerce market, following the successful launch of TikTok shop in the United Kingdom. The hallmark of the “TikTok” application lies in its short videos, typically ranging from 15 seconds to under 10 minutes. Users can curate these bite-sized video clips, complete with background music, motion editing, and special effects. Furthermore, TikTok has fostered a vibrant music community, using music as a centrepiece to categorize content.

TikTok has become a significant platform for content creators, known as TikTokers, who produce diverse content ranging from dance and cooking to sports and beauty in Malaysia (Seto, 2021). As mentioned by Seto (2021), the popularity of TikTok in Malaysia is evident from the trending hashtags that garner millions of views, such as #StayAtHome, #WipeItDown, and #RamadanMubarak. These trends illustrate the platform’s ability to engage a wide audience and create a sense of community.

TikTok has proven to be an effective marketing tool, as shown by successful campaigns like McDonald’s Big Mac Challenge in Malaysia, which attracted over 5.9 million views (Seto, 2021). This explains how brands can leverage on TikTok, with its short, exciting video format to create awareness, and improve consumers’ interaction levels. Also, the content found in TikTok may be easily reposted on other social media accounts such as Twitter, Instagram and Facebook thus increasing reach of the application (Seto, 2021). Ease of share button and capacity to go viral are critical features that brands need to consider when designing their social media maps.

As it has already been established that the utilization of TikTok is not uniform across the world, then brands must conduct research into the usage of TikTok within the target market that the specific brands are eventually targeting. TikTok is the best place for companies to advertise their brands online because, in addition to being the premier influencer marketing platform, it is also the number one video marketing platform (Oberlo, 2024). The brief period of existence and high activity on the account substantiate the place of TikTok in the sphere of digital marketing as valuable for brands which can use the platform to address the consumers’ attention effectively. Generation Z, those born between 1997 and 2012, are pronounced users of the platform with many people from this generation are frequent users of the social media platform (Kastenholz, 2021). This generation, known for being digital natives, has grown up with technology as an integral part of their lives. TikTok’s user demographics reflect this trend, with a substantial 36.2% of its users aged 18 to 24, and 33.9% aged 25 to 34 (Kemp, 2024). This demographic is crucial for brands aiming to target young, tech-savvy consumers.

In the context of Malaysia, online shopping has gained substantial popularity, particularly among university students. Previous studies have consistently highlighted that this demographic is heavily involved in online purchasing, with nearly 99% engaging in this activity (Farah et al., 2018). This is particularly notable among younger generations, including university students aged 18-30, who dominate online shopping behaviours despite not always having substantial funds for shopping (Muda et al., 2016). Nevertheless, their familiarity with e-commerce and their ability to process information quickly make them a key demographic for online retailers (Kim & Ammeter, 2008).

Furthermore, as noted by Edmunds et al. (2012), internet usage and online shopping are most common among university-aged individuals, even though they may lack sufficient funds for extensive shopping. Interestingly, these students are among the most active internet users and exhibit a strong intention towards online shopping. Although larger percentages of older generations are now online compared to the past, young people still dominate the online population (Muda et al., 2016). In line with this, Kim and Ammeter (2008) found that the younger generation is not only more familiar with e-commerce, but they also process website information five times faster than older generations.

However, it is important to note that Muda et al. (2016) investigated the online purchase behaviour of Generation Y (Gen Y) in Malaysia and identified several factors that drive this behaviour. Nonetheless, their study was limited to 200 Gen Y consumers from the urban area of the Klang Valley, which restricts the generalizability of the results to the broader Gen Y population in Malaysia. Moreover, while the intention and behaviour of online shopping have been widely studied in developed countries, there is a noticeable gap in the literature concerning developing countries like Malaysia, where online shopping is becoming increasingly popular among university students (Farah et al., 2018). With TikTok becoming a well-known social media platform, there is an opportunity to explore the factors that influence online shopping intentions among Malaysians on TikTok. Knowledge about these factors is important to businesses and marketers aiming at leveraging on progressing digital market environment in Malaysia.

This research seeks to find out the various antecedents to online shopping intentions on TikTok among Malaysians. Due to high internet usage and the popularity of social networks, the research targets the active TikTok users in Malaysia only. In view of this, it aims at providing useful information regarding the causes of e-commerce on the social media platforms and thus improve on the understanding of the opportunities of conducting businesses on this bleeding edge technology.

Challenges in Enhancing Tiktok’s Influence on Online Shopping Behaviour in Malaysia

Leveraging the existing effect of TikTok on Malaysians’ shopping habits online introduces several problems such as content generation, consumers’ interaction and regulating the media. This unique platform and a broad spectrum of TikTok users make the task of marketers seeking to drive the consumer behavioural change both beneficial and advantageous.

Content Creation and Engagement

Video Content Quality

Companies, vendors, and owners of internet stores have a massive opportunity to find their audience in the TikTok community. This does not only mean that companies adopted TikTok for advertisement and marketing but also a shift towards more general use of online videos for marketing individual products and brands (Guarda, 2021). Viral content is amorphous which makes creative video contents particularly very powerful and can drastically boost brand and product identification (Babin et al., 2023). In view of this, the ability of TikTok in promoting consumer conduct change is significantly hinged on the efficiency of the video marketing option. Engaging, creative, and informative videos are crucial for capturing consumer interest and driving purchase decisions. Features like duets, challenges, and live streaming can significantly enhance consumer engagement, but require marketers to continuously innovate and adapt their content strategies (Dendi et al., 2023). Engaging and creative online video content can influence how consumers interact with certain brands and products. Especially in the context of Tik Tok Shop, where many online stores and businesses sell their products, the use of online video content has a significant role in shaping consumer preferences and purchasing decisions (Purnomo, 2023). The influence of TikTok content on women’s skincare product purchasing decisions was tested, revealing that engaging online video content, particularly appealing to young consumers, positively impact their purchasing decisions (Salasbila et al., 2022). The characteristics of engaging video content on TikTok shop highlights the importance of creating engaging, informative, and interactive video content to effectively influence consumer behaviour on TikTok Shop (Dendi et al., 2023). The way consumer behaviours are perceived by the audience is directed by the video contents formed on TikTok. These videos which are short and full of entertainment value serve as great tools for gaining attention to the product and creating positive perceptions through trends, influencers and challenges. As a platform, TikTok amplifies the social commission of its users to purchase products by creatively integrating aesthetic-informed messages into its content.

Impulsive Purchase Behaviour

TikTok’s visual appeal and product feasibility can stimulate impulsive buying, especially among young adults and teenagers. However, maintaining a balance between perceived enjoyment and usefulness is essential to sustain consumer interest and prevent fatigue from repetitive or overly promotional content (Teo et al., 2023). Rook (1987) characterises impulsive purchasing as a strong and sudden desire to acquire a specific item, with the decision to purchase made immediately, lacking substantial deliberation regarding the implications of that choice. Different elements within information systems can influence impulse purchases. For e-commerce, some of these features are associated with system design, website attributes, website quality, website atmosphere, and online store beliefs (Turkyilmaz et al., 2015). Framed within the context of social commerce platforms such as WeChat, impulse purchase behaviour has been shown to relate to cognitive and affective trust and product emotions (Chen et al., 2019). Sundstrom et al. (2019) found that a sense of boredom can drive impulse purchases of fashion items online. The pervasive utilisation of the internet, social media platforms, and social commerce fosters opportunities for increased impulse purchase behaviour. TikTok’s hyper-specific algorithm curates the feed to its user’s exact interests, which makes TikTok potent for impulse shoppers. Users might also be more inclined to buy from TikTok than another platform because the videos are short (often under 30 seconds) and personal (Adamczyk, 2021). Although numerous studies have employed visual appeal as a stimulus, the majority have evaluated its correlation with impulse purchasing behaviour primarily in the context of websites and e-commerce rather than within social commerce platforms like TikTok. The design of the application and its e-commerce features actively encourage impulse buying through the minimization of several engrained barriers. The perceived behavioural control is also strongly high as users can execute a purchase with a swipe of the screen which suits the impactful triggers of emotional and social impulsive buying. With the approach of easy content and a straightforward shopping experience, TikTok helps to develop the environment of impulse buying, especially among young people, who are the strong audience with attention deficit issues, focusing more on visually appealing aspects.

Information Sharing and Consumer Trust

Information Reliability

Malaysianconsumers, particularly women, rely heavily on reviews and information shared on TikTok. The platform’s modality, agency, and interactivity enhance information sharing, which in turn influences purchase intentions. However, ensuring the reliability and authenticity of this information is a challenge, as misleading content can erode consumer trust (Dan et al., 2023). Social media is an effective medium of communication between marketers and consumers (Cui et al., 2019; Sheth & Kim, 2017). The structural and interactive features of information sharing on social media platforms promote efficient communication between marketers and consumers (Dan et al., 2023). These days, companies are closely observing this technique as an important source of sharing valuable information. Numerous empirical studies in this regard bring forth that the exchange of information impacts consumers’ purchase intention. Yoong and Lian (2019) highlighted that information sharing aids consumers in making an informed and better buying choice. Zubiaga et al. (2018) also highlighted that social media information exerts a positive and sharp impact on the psychological behaviour of consumers based on which they can shape their purchase choices in the future. Kaplan and Haenlein (2011), highlight that the marketing process and information sharing impact consumers on three levels; (i) pre-purchase, (ii) purchase, and (iii) post-purchase. Instant communication through social media platforms has enabled users to create and share information related to products and brands. It significantly enhances the users’ attitude and purchase intention of the product (Sheth & Kim, 2017). In this accordance, it can be stated that the enormous sharing of information at social media sites facilitates the exchange of information between producer and consumer, motivating the customers’ engagement. Customer engagement, furthermore, as noted by Yoong and Lian (2019) is positively correlated with purchase intention.

Digital Marketing Features

TikTok’s digital marketing features, such as short video content and live sales, are effective in influencing purchase decisions among students. However, these features can also lead to extravagant and addictive behaviours, posing ethical concerns for marketers (Jumali & Mustaffa, 2023). TikTok’s core features is its short-form video style, enabling users and advertisers to produce captivating, concise content that appeals to its mostly youthful demographic (Anderson, 2021). This format fosters innovation and rapid consumption, rendering it optimal for marketing messages that must seize attention swiftly. Videos often range from 15 to 60 seconds in duration, enabling firms to communicate product attributes or promotional material in a visually engaging and dynamic fashion. One of TikTok’s most popular digital marketing tools is the Hashtag Challenge, where users are encouraged to create content around a specific theme or action, usually tied to a brand or product. According to Williams (2022), brands that launch hashtag challenges can experience exponential growth in content reach as users share their creations, leading to viral marketing campaigns. TikTok also supports live streaming, which brands can use to interact with consumers in real time. This feature is particularly effective for product launches, Q&A sessions, and influencer-hosted events, providing an immersive, real-time marketing experience (Williams, 2022).

Regulatory and Compliance Issues

Regulatory Concerns

Malaysia is looking into registering online social media platforms and implementing a global minimum tax (Kok Leon Chan, 2023). The Malaysian government is considering regulations for TikTok’s e-commerce features, which could impact its growth and influence. This regulatory scrutiny is partly due to concerns over data security and predatory pricing, like issues faced in other Southeast Asian countries. TikTok suspended its online retail operation in neighbouring Indonesia after its government announced new regulations that will force TikTok to split its shopping feature from the video-scrolling service. TikTok is the only social media company that sells goods directly on its app (Kok Leon Chan, 2023).

Tax Compliance

The rise of e-commerce on TikTok introduces challenges related to tax compliance. While TikTok users in Malaysia show high levels of tax knowledge and morale, there is a lack of awareness and complexity in tax regulations, which can hinder compliance and affect the platform’s credibility as a shopping medium (Mahran et al., 2023). A recent study by Abdul Hamid et al. (2020) defined tax compliance as fully paying all tax payables. Non-compliance is seen as not paying the right amount of tax, where the difference could be because of understating the income and overstating the expenses and allowable tax deductions due to errors in calculations or a lack of understanding of tax laws and regulations. Malaysia’s strict regulatory framework presents a challenge for TikTok’s operations in the e-commerce space. The platforms must comply with local laws regarding user protection, data privacy, and e-commerce regulations. Any failure could result in legal action or damage to TikTok’s reputation as well as limit its effectiveness in the e-commerce sector (Teoh & Ismail, 2021). Such rules suggest that TikTok must focus on clear reports, customer protection, and the proper security of that data to rebuild confidence and prevent punishment.

Leveraging Tiktok’s Unique Features and Engagement Strategies to Influence Online Shopping Behaviour

The functions of social media and e-commerce integration make it easy for TikTok to drive many opportunities that alter the treatment of purchasing on online platforms. The use of short videos and live streams also establishes a very friendly environment for users, which makes it possible for businesses to leverage a couple of factors that can influence purchase, among which, are the social norms, perceived knowledge, and relevance of the content.

Social Influence and Consumer Beliefs

Social influence is a valuable factor in TikTok, contributed majorly by the Reference opinion of other groups and influencer content. Through endorsing a certain product, the consumers have a positive attitude towards the same product hence they will be willing to purchase the same. Due to its features of short videos, TikTok provides sellers an opportunity to pay much attention to the users’ behaviour concerning the product they are selling and adjust their selling strategies or promotional activities to attract more users and sales (Trang et al., 2024).

The “Opinion of the reference group” means how friends, families and other online contacts affect a user’s buying processes. TikTok users are a considerable number of them; most of them go about their decisions depending on friends or people they admire. This offers an opportunity for businesses to capture social proof and recommendations in a bid to sell their products. The fast and wide reach of TikTok makes products popular faster, especially trends and recommendations quickly building trust to turn into sales.

Another element of the information influences affecting the consumers’ decisions is rather an item of “Own beliefs” among others. Culture based hypotheses derived out of individualist culture suggest that personal values that include sustainable innovative consumer values play a significant role in consumer decision making in as much as a specific product is concerned. Companies can also extend out to consumers so that they can study them and introduce their products under these values. For example, when one feels like advertising environmentally friendly products or premium quality manufacturing, that will pull those consumers with those qualities.

TikTok also allows brands to post their vision and mission, which enhances the consumer’s beliefs and therefore, their brand association. Hence the danger to consumers and brands exists, when a brands’ communication appeals to their perceived values and beliefs and such communication is in synchrony with ‘word-of-mouth’ influence. This way, businesses can keep track of these factors and tailor their marketing goal to fit the values of the people as well as their social relation trends thereby increasing engagement leading to higher sales.

Financial Literacy and Consumer Behaviour

The level of financial literacy is another driver which affects consumer behaviour on TikTok Shop. It involves handling money; the capacity to balance accounts, preparing a budget and making reasonable and effective financial decisions. It means that consumers can make wiser purchases when there is financial literacy during TikTok shopping. It is expected that those who have good control over finances would also be better placed to shop for products online without falling prey to uncontrolled spending since such a person will evaluate what he or she is purchasing online in terms of its worth (Kamil et al., 2024).

For businesses, they are easy to sell their products to such financially wise consumers to help improve customer loyalty. When the consumer is made aware of the promotional effort, there is likely to be an enhanced and positive shopping experience for the consumers and this would reduce excessive consumption. Thus, Financial literacy differs from other drivers, such as lifestyle or digital taxes, as the most significant factor influencing consumers’ behaviour (Kamil et al., 2024).

Therefore, the information can be useful to all kinds of businesses for enhancing their marketing strategies. Introducing clear, stated prices and putting out content to help the customers learn about finances can in turn get more informed customers thus ensuring higher sales volume. Or better yet, financial education as the key to improving sales not only today but most importantly raising the company’s credibility with the target audience for the future.

Live Streaming and the Z Generation

As an instant-oriented demographic, Gen Z has benefitted greatly from live streaming as a form of interaction. Furthermore, this mode of interaction adds significant value to the shopping process as it makes consumers more interested and trusting in purchases (Gupta Winarno et al., 2024). TikTok Live has emerged as a key milestone in the expansion of live-streaming commerce, enabling all stakeholders of the social media platform to access a better engagement experience (Mohd Ariffin et al., 2024). The consequences of this change indicate that interactive marketing will take the form of trust-building online communities which will be the hallmark of future marketing. Mohd Ariffin et al. (2024) state that high-quality interaction and product presentation should take precedence for marketers. Brand credibility and engagement are better exercised when content creators and influencers in tandem with the brands are on board.

Through TikTok Live, brands can engage with Gen Z in a manner that has not been experienced before. Not only are they able to receive answers to the questions they have, but they can also engage with the brand. This builds trust and improves the overall shopping experience (Rahmatullah & Astuti, 2024). In the same way, Rasta and Sumardjijati (2024) observe that the level of interaction on TikTok Live is high, and therefore creates an interesting shopping scenario for users. According to Ma (2024), on the other hand, it is also a fact that consumers can recall more details about brands after they interact with them in a live setting. Often, however, such communication ends up culminating in an impulse purchase. The host’s credibility, as noted by Rasta and Sumardjijati, also significantly affects the level of spontaneous purchases. With the integration of entertainment and commerce through TikTok Live shopping, conventional retail models have also been transformed making the retail experience more interesting (Bray, 2024).

Consistent with their excitement, which Mardhiana (2024) describes, Gen Z usually looks in social networks for product information including reviews and recommendations by influencers, which help to form their purchasing decisions. Their inclination towards social media-based shopping further justifies their preference for using TikTok Live, which provides e-commerce in a context that users already know (Xu, 2024). However, this increased usage raises the issue of overconsumption and impulse buying, which even calls for the discussion of targeting this group better through increased consumer awareness and financial literacy. To enhance user experience and thus position TikTok Live as an effective marketing tool for businesses targeting Gen Z, Gupta Winarno et al. (2024) state that usability and usefulness are the main factors affecting the selection of this platform.

In addition, what is of significance is the importance of the context in which TikTok live features are used, for example, the intention to purchase. For example, Putra and Indika (2023) found that the difficulty that users have in using the platform urges them to purchase since they can complete the transactions. Firms that can actively improve the features of the platform are also able to enhance the user’s shopping experience, thus increasing the propensity to interact with the brand again (Sudiantini et al., 2024). Satisfaction with the contact and support would further increase consumer satisfaction, which would motivate them to repurchase (Rahmatullah & Astuti, 2024). Additionally, electronic word of mouth has been also great in enhancing purchase intent among Gen Z (Rahmatullah & Astuti, 2024). But at the same time, issues like content dilution and competitive noise are still very central. Brands need to put a reasonable focus on the qualitative aspect along with the user engagement and vice versa to be effective.

With its innovative marketing approach, TikTok Live presents an excellent opportunity for businesses to get the attention of Gen Z. Looking through its interactivity possibilities, brands can develop appealing shopping experiences with this generation and eventually contribute to the expansion of this segment, live shopping commerce. According to Shen (2024), such issues can be solved using data for the best promotion for Generation Z, while Mohd Ariffin et al. (2024) argue that endorsement of relatable figures is key in conveying brand messages with authority.

Looking the other way, for Gen Z consumers, live streams nurture great loyalty towards brands as it allows them to engage consistently and interactively with the brands. Besides, the interactive feature, TikTok Live, allows brands to connect with their target audience which gives rise to extensive use and long-term relationships. Thus, TikTok Live does not only solve market problems but also helps expand the live-stream shopping business which is emerging as a new model for business and can provide an unmatched strategic platform to businesses targeting this generation which understands technology well.

User Characteristics and Shopping Patterns on TikTok

It is of utmost importance for TikTok marketers to understand the user trends and the user characteristics. Factors such as live-streaming engagement, product variety and user demographics have been shown to impact purchasing behaviour (Chen, 2024). Users can be divided by age, gender, occupation or education which allows brands to adjust their marketing accordingly. For example, younger users might buy more cheap and funny items whereas older leads tend to buy quality or famous brands. Using demographic and psychographic information along with clustering methods aids in grouping users and improving marketing campaigns (Cai, 2023; Schouenborg & Woodhouse, 2016).

Time spent on the app is considered one of the engagement metrics and one of the signs of tolerance to advertisements. High engagement indicates that users are likely to appreciate repetitive or different adverts which allows marketers to make the most out of this (Wang & Chan-Olmsted, 2024). Recommendations based on the algorithm and some personalized messages that fit into the social and cultural background of certain users make it easier for the users to relate to the brand and trust it (Alfian et al., 2024; Wiwarottami & Widyatama, 2023).

In recent years, TikTok has taken off as a core source for consumers’ purchase intentions through its live-streaming features by providing several products showcases and a mix of experiences. Users watching live shopping events tend to have more buying intentions, creating a sense of immediacy and emotions (Zheng & Zhu, 2024). The platform also allows cross-selling and up-selling strategies which serve to increase the average sales value by advertising related or extra items bought together (Chen, 2024). Reward-based programs, using reward points, and personalization of offers are factors that help improve the retention of clients and instil attachment (Kaur, 2024; Pudjianingrum et al., 2022).

Augmented reality (AR) and VR are other technological developments which enhance the shopping experience. Offering an interactive experience, AR functionalities like virtually trying on items push towards a higher purchase probability (Enyejo et al., 2024). Use of VR enhances exploration of the products making the choice easier for users hence creating a link between online and physical stores (Singh et al., 2024). Although such opportunities exist, however, challenges related to technology adoption and integration constitute major obstacles (Tju & Azaru, 2024). For instance, TikTok has innovative marketing tools through its data analytics where people advertise relevant ads based on numerous products the user has browsed and purchased which leads to a high conversion rate (Kaur, 2024). Hence with the use of these opportunities and features available on the platform, brands are now able to reach out to people, tailor their needs and maximize sales.

Impact of Video Content

The TikTok Shop is primarily driven by rich and entertaining video content and its ability to sustain consumers’ impressions and instigate their purchase behaviour towards the TikTok Seller Store. Consequently, it is much easier to utilize them in this marketing strategy abuse of mod features such as duets and challenges and live streaming (Dendi et al., 2023). Even the lack of duets’ children’s reception allows sellers to increase their activities and, as a result, the likelihood that they will go on to order their goods. Through the device of humorous parody duets and brand challenges that the brand seeks to promote through this device, TikTok encourages the consumer to be active in the brand. This level of involvement also increases the chances that consumers will indeed scroll through the content and purchase the various items that get advertised to them. Additionally, the potential for virality can extend entirely to the spokes model increasing disregard of source credibility for brand endorsement (Babin & Harris, 2023). According to the narratives of several respondents, watching videos on TikTok creates an impulse and therefore explanation to consumers purchasing impulse items. If at all the TikTok content simply uses the items as the fun element of the content, then they might easily motivate the target audience to make purchases, thus presenting sellers with the chance to make quick sales.

According to Sondari et al. (2024), TikTok promotes ecstatic shopping motivation as it allows its users to do impulse buying without the necessity reasoning. The platform’s easy to use interface together with its marketing strategies, such as offering discounts and providing free shipping, aggravates this tendency. The popularity of TikTok is supplemented by its algorithm, as well as its users who help content go viral with ease. A viral video has only one function which is to satisfy demand which in turn increases sales of a product thereby allowing the brand to have an easy entry into a specific market. The TikTok app’s features give users the ability to create enticing videos that promote trends, which frequently go viral (Novillo-Diaz et al., 2023). This virality has worked well for brands such as NYX and Chipotle who have added to their brand value and awareness (Novillo-Díaz et al., 2023). It is reported that TikTok users are influenced by social media together with viral marketing in their purchasing decisions (Haryanto et al., 2022). It was established that viral marketing has a positive impact on the buying behaviour of consumers thereby making TikTok useful for the making of sales (Rimbasari, Widjayanti, & Thahira, 2023).

TikTok also promotes participation for the brand via creative content as in the case of The Originote, which garnered notable sales with appealing video marketing (Wiwarottami & Widyatama, 2023). To ensure continued growth on the platform, it is essential to keep the authenticity intact while practicing an ethical marketing approach (Lei, 2024). On the other hand, TikTok holds great promise for massive scale up of sales, but this however comes with the caveat of getting the balance right with the brand message and being true to the brand champion levels of consumers who are agitated in the absence of such adherence

When the brand collaborates with influencers, the brand can expand its reach into new markets. Since consumers have faith in their followers, such followers can leverage this faith to promote some selected items and help in marketing certain brands in some markets. Influencers earn trust by providing a relatable context and personal relations that can be associated with the brands they promote (Wang & Chan‐Olmsted, 2024). The authenticity is of great importance as followers are likely to engage with the influencers’ endorsed brands that share the same image values (Kumar et al., 2024). Because followers are likely to see influencers as one of the trusted sources, influencer marketing results in higher engagement rates than traditional advertising (Castella, 2024).

Emotional videos, typically funny and corny, are the ones that are stored in brain’s memory. By developing more of such emotional audience attachments, brands can drive consumers to depress the conflicting interests of making a purchase. Great feelings like joy and eagerness are essential for high level of brand loyalty and impulsive buying (Thamilselvan & Rakeshyanand, 2024). On the context of online shopping, elements such as discounts and targeting customizations deal with the enhancement of positive feelings, therefore, adding the level of shopping intentions and activities (Cuong, 2024). Advice videos detailing a product, demonstrating how and why to use it and its advantages put the buyer in a more trustworthy state when making a purchase. Providing this type of content will be able to build trust and this will lead to increased sales.

Consumer engagement videos appear to be the most effective methods as they activate mental pictorial drafting and self-perceived usefulness thus increasing the desire to purchase the product more than the mere showing of the product’s looks (Cheng, Shao, & Zhang, 2022). Furthermore, categorised and product praise videos especially also help in consumers making their decisions (Ghosh, 2020). This is reinforced by the content whether it is endorsement or user review on the products increasing the level of trust and thereby increasing sales (Hairudin, Dahlan, & Yusof, 2020). While the emphasis on video content is fundamental, attention needs to be given that not all consumers want to see video marketing campaigns. Others will prefer reading traditional text reviews or be told about the item meaning that some key balance in marketing approaches is essential.

ACKNOWLEDGEMENT

The authors express their gratitude to the institutions that made this research possible. This study was supported by the School of Management, Universiti Sains Malaysia and Islamic Business School, College of Business, Universiti Utara Malaysia.

CONCLUSIONS

In conclusion, the impressive internet and social media penetration, especially the presence of TikTok, has transformed consumer behaviour on a global scale, making shopping online more prevalent whilst providing more channels for brands to communicate with younger audiences. The internet has reshaped the retail industry by merging e-commerce into social networking services which have provided companies another channel for reaching consumers as well as made it easier for consumers to shop online. In Malaysia, such developments have been caused by social media and related technologies, especially by youth. Yet issues such as online security and consumer trust are still an area of concern. Thanks to its attractive content, great penetration, and effective impact on consumers, TikTok is a chief promoter of online shopping among Malaysian youths. Key areas where TikTok can be improved for online shopping include being able to market ethical content without crossing over to fast and loose marketing, providing verified information and laws. Happy strategies include the use of social, live video and inventive video among many other approaches for different users who possess varying levels of digital skills. There is a void that needs to be filled and TikTok has the potential to fill it in the e-commerce age.

Finally, future research should focus on gaining a deeper understanding of consumer behaviour on the TikTok platform, considering various demographic and cultural factors in Malaysia. It may be worthwhile to conduct longitudinal studies to track changes in these behaviours over time and research how new technologies and changes in social media ecological maps affect them. Also, looking at the role of socioeconomic factors, for example, level of income or level of technology understanding, can explain how different audiences shop online through social media. Including regional or cross-country comparisons in the future would increase the external validity of the results pursued here, while using also qualitative methods could help to present in more depth ‘what motivates consumers and what they experience’. These directions for further investigations would not only help to identify and understand consumer behaviour in modern conditions but also help to design and apply culturally appropriate marketing policies on social media. To address the empirical research gap, future studies could incorporate primary data collection methods, such as surveys or interviews with TikTok users. This would not only validate the study findings but also enrich the understanding of consumer behaviour in the digital shopping landscape.

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