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Evaluating the Impact of TikTok Promotions on Online Shops: Literature Study Approach

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Latifah Hanum
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Abstract

This research analyzes the impact of promotion via TikTok on online shops and finds that using TikTok as a promotional tool has a significant positive effect. TikTok, with its appeal of creative and interactive short video content, allows online shop owners to reach a wider audience and increase their brand exposure. The results of this research show good improvements in terms of brand awareness, sales growth, and stronger relationships between customers and brands. In addition, TikTok provides an ideal platform for promotions that attract shopper attention, such as discounts and free shipping. Thus, this research confirms that promotion via TikTok is an effective strategy and has a positive impact on online shops in expanding their market share and increasing their sales results.
Available via license: CC BY-SA 4.0
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Submitted:
1 OCTOBER 2023
Accepted:
21 NOVEMBER 2023
JIMKES
Jurnal Ilmiah Manajemen
Kesatuan
Vol. 11 No. 3, 2023
pp. 1287-1292
STIE Kesatuan
ISSN 2337 – 7860
Evaluating the Impact of TikTok Promotions on
Online Shops: Literature Study Approach
Latifah Hanum
Department of Management, Faculty of Economics and Business, Universitas
Muhammadiyah Riau, Pekanbaru, Indonesia
E-Mail: 210304222@student.umri.ac.id
Ridho Nilam Saputri
Department of Management, Faculty of Economics and Business, Universitas
Muhammadiyah Riau, Pekanbaru, Indonesia
E-Mail: 210304235@student.umri.ac.id
Yeni Cahaya Ningsih
Department of Management, Faculty of Economics and Business, Universitas
Muhammadiyah Riau, Pekanbaru, Indonesia
E-Mail: 210304219@student.umri.ac.id
Nabilla Armayanti
Department of Management, Faculty of Economics and Business, Universitas
Muhammadiyah Riau, Pekanbaru, Indonesia
E-Mail: 210304220@student.umri.ac.id
Fitri Ayu Nofirda
Department of Management, Faculty of Economics and Business, Universitas
Muhammadiyah Riau, Pekanbaru, Indonesia
E-Mail: fitriayunofirda@umri.ac.id
ABSTRACT
This research analyzes the impact of promotion via TikTok on online shops and finds that using
TikTok as a promotional tool has a significant positive effect. TikTok, with its appeal of creative and
interactive short video content, allows online shop owners to reach a wider audience and increase
their brand exposure. The results of this research show good improvements in terms of brand
awareness, sales growth, and stronger relationships between customers and brands. In addition,
TikTok provides an ideal platform for promotions that attract shopper attention, such as discounts
and free shipping. Thus, this research confirms that promotion via TikTok is an effective strategy
and has a positive impact on online shops in expanding their market share and increasing their sales
results.
Keywords: Tiktok, Promotion, Online shop, Marketing
ABSTRAK
Penelitian ini menganalisis dampak promosi melalui TikTok terhadap online shop dan
menemukan bahwa penggunaan TikTok sebagai alat promosi memiliki efek positif yang signifikan.
TikTok, dengan daya tarik konten video pendek yang kreatif dan interaktif, memungkinkan pemilik
online shop untuk mencapai audiens yang lebih luas dan meningkatkan eksposur merek mereka.
Hasil penelitian ini menunjukkan peningkatan yang baik dalam hal kesadaran merek,
pertumbuhan penjualan, dan hubungan yang lebih kuat antara pelanggan dan merek. Selain itu,
TikTok memberikan platform yang ideal untuk berbagai promo yang menarik perhatian pembeli,
seperti potongan harga dan pengiriman gratis. Dengan demikian, penelitian ini menegaskan bahwa
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promosi melalui TikTok adalah strategi yang efektif dan berdampak positif bagi online shop dalam
memperluas pangsa pasar dan meningkatkan hasil penjualan mereka.
Kata kunci: Tiktok, Promosi, Toko online, Pemasaran
INTRODUCTION
Tiktok is a social media platform where users can share short videos, usually between
15 and 60 seconds long. Users can upload various types of content, from dance, humor,
tutorials, lip-syncing, to sharing their creative ideas in the form of short videos.
Additionally, TikTok has advanced features such as a powerful recommendation
algorithm, which allows users to find content that matches their interests (MacKinnon et
al., 2021; Pieter et al., 2021; Budiman, 2022). Promotion is a communication process that
aims to convey information, data and the advantages of a product or service to the wider
community. In this process, promotional officers or parties responsible for promotions
make various efforts to provide potential audiences with an understanding of the product
or service being promoted. (Putriani, 2023).
TikTok has become very popular among millennials and generation Z, and many
businesspeople and digital marketers have started utilizing the platform to promote their
products and services. They can collaborate with influential users (influencers) on TikTok
or create attractive creative advertisements to reach a wider audience. (Ramadan, 2023).
Online buying and selling activities via E-Commerce platforms have experienced a
significant increase, driven by the high number of internet users in Indonesia (He & Li,
2022). With the help of Android-based mobile applications, internet users can easily
download several online buying and selling platform applications on their mobile phones,
resulting in significant growth in e-commerce and providing easier and faster access to
products and services through such platforms. (Evi, 2022).
The aim of this research is to comprehensively evaluate the influence of the TikTok
platform on online shop (olshop) promotional efforts, focusing on aspects such as
increasing visibility, sales, consumer engagement, influence on brand image, and growth
of followers and customers. This analysis aims to help online shops measure the success
of TikTok promotional campaigns, identify potential improvements, and direct more
effective marketing strategies in achieving business goals and expanding the online shop
market in Indonesia.
LITERATURE REVIEW
TikTok, known as Douyin in China, is a social media and short video sharing platform
that was first launched in September 2016 by Chinese technology company ByteDance.
The app was initially only available in China and gained rapid popularity in its domestic
market. Then, in 2017, ByteDance launched an international version of TikTok which
could be downloaded and used all over the world. TikTok is quickly becoming a global
phenomenon, especially among the younger generation (Subiakto, 2023). The app allows
users to create, edit, and share short videos, often with background music or audio, and
has a variety of creative features that allow users to express themselves and interact with
other users. TikTok is a social media and short video sharing platform that has various
uses, including as a means of entertainment that inspires creative trends, as a marketing
and promotional tool for businesses and brands, as a platform to connect with
communities and other users through mutually supportive content, as a source of
education and knowledge, as well as a platform for musicians and artists to introduce their
work to a wider audience.
TikTok has played a significant role in shaping digital culture and providing
opportunities for individuals and business entities to participate in its creative ecosystem.
(Sa’adah, 2022). Marketing is a strategic approach used by companies or organizations to
create value and promote products or services to target markets (Grönroos, 2008; Dean
& Pacheco. 2014). It involves a number of activities, including planning, promotion,
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distribution, and pricing of products or services with the aim of meeting consumer needs
and wants, as well as achieving larger business goals. Marketing involves a deep
understanding of the target audience, market analysis, and the use of appropriate
strategies to build positive relationships with customers, increase brand awareness, and
ultimately increase sales or participation in services (Sutrisno, 2022; Handley & Kobiela,
2022).
One form of marketing activity is promotion, which aims to communicate, promote
and inform a product, service or brand to a target audience with the aim of increasing
consumer awareness, interest and desire to buy or use the product or service. Promotion
involves a variety of strategies and tools, such as advertising, direct selling, sales
promotions, content marketing, and other activities designed to influence consumer
perceptions and behavior. The goal is to create positive incentives for customers,
differentiate a product or brand from competitors, and encourage consumers to take a
desired action, such as making a purchase or signing up for a service. (Nurfitri, 2023).
TikTok has had a significant impact on the social lives of its users, especially in the
context of side hustle opportunities. Many students and other individuals have utilized
these platforms to promote advertisements or carry out activities known as
“endorsements,” because they have high appeal in terms of the number of video views
(views) and number of followers (followers). The impact is that many entrepreneurs and
online shops are interested in marketing their products through this platform, creating
mutual benefits between TikTok users and business people. TikTok users who have lots
of views and followers can receive payments from online shops who want to promote or
endorse their products, while online shops will become known more quickly to the wider
community, increasing their sales opportunities. This creates side hustle opportunities and
helps businesses grow, as well as allowing for increased knowledge and exposure for the
various products and services being marketed. (Rahmawati, 2022).
RESEARCH METHODS
The research method applied in this article uses a literature study approach.
Researchers used 4 previous articles with the main theme “The impact of TikTok as an
online shop promotion”. The main aim of a literature study is to gain an in-depth
understanding of the latest knowledge developments in a particular domain. This process
involves collecting, analyzing, and interpreting works of literature relevant to the research
topic. In selecting literature sources, researchers apply specific criteria, including perhaps
limitations to certain time periods or sources. Literature data collection was carried out
using a detailed search strategy, using certain keywords or databases. Literature analysis
involves specific approaches, such as content analysis or meta-analysis, to identify
relevant findings.
During literature evaluation, researchers establish criteria to assess the quality and
relevance of each included literature source. The results of literature analysis are not only
used to understand knowledge development, but also to identify barriers or knowledge
gaps in the relevant domain. These findings formed the basis for the establishment of a
strong theoretical framework, which in turn guided the design of the study and formulated
relevant research questions. This literature study not only aims to fill knowledge gaps, but
also makes a significant contribution to existing scientific literature. Additionally, this
article reflects ethical considerations in the collection and use of literature, such as
copyright and principles of ethical scientific writing. Thus, through careful literature study
research methods, this article is expected to provide new insights, strengthen the
theoretical basis, and make a meaningful contribution to the development of knowledge
in the domain studied.
RESULTS AND DISCUSSION
Research from Sugiarti (2022) shows a fairly high level of effectiveness and marketing
efforts carried out through TikTok provide positive results in terms of increasing
awareness and reaching the desired audience. wider for the @somethincofficial account
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(Pieter et al., 2021; Martini et al., 2021). This research places emphasis on the importance
of TikTok as an influential online marketing tool in increasing brand exposure and
recognition. The results of this research show that the strategy used by @somethincofficial
in utilizing TikTok as a marketing tool has proven effective, which can provide a strong
foothold to continue developing the same marketing approach and even expand
marketing efforts on this platform.
Meanwhile, research from Febriyanti & Arifin (2023) shows that agent Yuyun from
Justmine Beauty skincare in Lamongan has proven a significant positive influence on
sales of this brand’s products. This marketing strategy allows Justmine Beauty to expand
their target market reach through popular and widely used platforms such as TikTok and
Instagram. This, in turn, has increased exposure and brand awareness among users who
have the potential to become consumers. Then, the online marketing approach through
these platforms has been effective in strengthening Justmine Beauty brand awareness.
Yuyun Agent has succeeded in attracting attention and building a strong brand image
among users by presenting interesting and informative content on TikTok and Instagram.
Through video tutorials, beauty tips, and content that provides other useful information,
they have succeeded in conveying the benefits of their products directly to their audience,
creating a positive bond between the brand and potential consumers.
An article from Putri (2023) found that TikTok, owned by Dhinda Hijab, has now
become one of the most active promotional media compared to Instagram and Shopee.
This is due to a number of factors that make TikTok a very effective platform in facilitating
product promotion. One factor is the live feature which facilitates direct communication
between sellers and buyers, creating more personal and real-time interactions. In addition,
TikTok offers various promotions that attract buyers’ attention, such as discounts and free
shipping, which consumers can easily access. From a seller’s perspective, administration
costs on TikTok also tend to be lower than other social media, making it more cost
efficient. In addition, promotions on TikTok have a positive impact in increasing brand
awareness and increasing sales, because this platform has a wide reach, especially among
the younger generation who are active in shopping online.
Recent research from Gusdini (2023) states that through the use of the TikTok Shop
application, the sweet potato chips industry center has been successful in introducing and
promoting its products, with an impact that extends beyond the city. Workers in the sweet
potato chips industry must practice efficient time management in order to carry out live
sessions in the TikTok Shop application, which will increase their visibility on the “For
You” (FYP) page. As a result, revenues from the sweet potato chips industrial center have
increased significantly, reaching the previously desired market target.
CONCLUSION
In conclusion, analysis of the impact of TikTok promotion on online shops shows that
the use of TikTok as a promotional tool has a significant positive impact. TikTok is able
to effectively increase the visibility and exposure of a product or brand among a wide
audience. With the appeal of creative and interactive video content, TikTok provides
online shop owners with the opportunity to reach potential audiences in an engaging and
attention-grabbing way. This positive impact can be seen in increased brand awareness,
sales growth, and stronger relationships between customers and brands. Therefore,
promotion via TikTok has been proven to be an effective strategy in supporting the success
of online shops in their marketing.
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  • Jun 2022
TikTok is an application that is currently very popular with the public. This study aims to determine how Generation Z's perception of the TikTok Shop feature on the TikTok application is. The method in this study uses descriptive qualitative analysis of various conditions obtained from the results of interviews with the distribution of questionnaires in the form of google form. The sample in this study was 30 respondents. The indicators used are based on the technology accepted model (TAM) with indicators of perceived ease of use of technology, perceived benefits of technology and perceived risk to determine a person's behavioral intentions in using technology. The results indicate that generation Z has a perception of convenience showing 90% of generation Z agrees that the TikTok Shop feature provides a lot of convenience in its use, the perception of benefits shows that 85.56% of generation Z agrees that the TikTok Shop feature provides benefits for transaction activities, the perception of risk shows that 93.35% of Generation Z thinks that the TikTok Shop feature has little risk in its use. It can be concluded that Generation Z in utilizing the TikTok Shop feature is influenced by the perception of benefits, the perception of convenience and the perception of risk.
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Viewpoint: Examining TikTok’s potential for community-engaged, digital knowledge mobilization with equity-seeking groups (Preprint)
Article
Full-text available
  • May 2021
  • J MED INTERNET RES
Social media is increasingly being leveraged by researchers to engage in public debates and rapidly disseminate research results to health care providers, health care users, policy makers, educators, and the general public. This paper contributes to the growing literature on the use of social media for digital knowledge mobilization, drawing particular attention to TikTok and its unique potential for collaborative knowledge mobilization with underserved communities who experience barriers to health care and health inequities (eg, equity-seeking groups). Setting the TikTok platform apart from other social media are the unique audiovisual video editing tools, together with an impactful algorithm, that make knowledge dissemination and exchange with large global audiences possible. As an example, we will discuss digital knowledge mobilization with trans and nonbinary (trans) communities, a population that experiences barriers to health care and is engaged in significant peer-to-peer health information sharing on the web. To demonstrate, analytics data from 13 selected TikTok videos on the topic of research on gender-affirming medicine (eg, hormonal therapy and surgeries) are presented to illustrate how knowledge is disseminated within the trans community via TikTok. Considerations for researchers planning to use TikTok for digital knowledge mobilization and other related community engagement with equity-seeking groups are also discussed. These include the limitations of TikTok analytics data for measuring knowledge mobilization, population-specific concerns related to community safety on social media, the spread of disinformation, barriers to internet access, and commercialization and intellectual property issues. This paper concludes that TikTok is an innovative social media platform that presents possibilities for achieving transformative, community-engaged knowledge mobilization among researchers, underserved health care users, and their health care providers, all of whom are necessary to achieve better health care and population health outcomes.
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Green marketing: A strategic balancing act for creating value
Article
Full-text available
  • Sep 2014
  • J Bus Strat
Purpose – The purpose of this study is to illustrate that when practiced correctly, environmental marketing can represent promising opportunities for value creation and market growth. For many companies, the practice of environmental marketing has delivered disappointing results. Design/methodology/approach – Building from examples of companies that have successfully transcended traditional environmental marketing, we create a model for strategic product positioning. We rely on illustrations from companies in a variety of industries that target both consumer and business markets. Findings – We describe five strategies that are built upon value drivers for green products such as image, status, functionality and brand management through authenticity and superior offerings. We also emphasize the importance of strategies that target commercial markets for green products, which represent valuable opportunities for growth. Originality/value – Companies often confront the challenge of positioning the green attributes of their products or services. Lessons from the past have shown that this task must be carefully executed. Understanding the strategies presented here is critical for the success of new products or new marketing initiatives.
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Service Logic Revisited: Who Creates Value? And Who Co-creates?
Article
Full-text available
  • Jun 2008
  • Eur Bus Rev
Purpose In the discussion on service‐dominant logic and its consequences for value creation and marketing the inner meaning of the value‐in‐use notion and the nature of service marketing have not been considered thoroughly. The purpose of this paper is to analyze the meaning of a service logic as a logic for consumption and provision, respectively, and explore the consequences for value creation and marketing. Design/methodology/approach Being a research‐based paper, the topic is approached by theoretical analysis and conceptual development. Findings Discussing the differences between value‐in‐exchange and value‐in‐use, the paper concludes that value‐in‐exchange in essence concerns resources used as a value foundation which are aimed at facilitating customers' fulfilment of value‐in‐use. When accepting value‐in‐use as a foundational value creation concept customers are the value creators. Adopting a service logic makes it possible for firms to get involved with their customers' value‐generating processes, and the market offering is expanded to including firm‐customer interactions. In this way, the supplier can become a co‐creator of value with its customers. Drawing on the analysis, ten concluding service logic propositions are put forward. Research limitations/implications The analysis provides a foundation for further development of a service logic for customers and suppliers, respectively, (“service logic” is preferred over the normally used “service‐dominant logic”) as well for further analysis of the marketing consequences of adopting such a business and marketing logic. Practical implications Marketing practitioners will find new ways of understanding customers' value creation and of developing marketing strategies with an aim to engage suppliers with their customers' consumption processes in order to enhance customer satisfaction. Originality/value For a scholarly audience, the paper provides a more truly service‐centric understanding of value creation and of its marketing consequences. For a practitioner audience, it offers service‐based means of further developing marketing practices.
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The Influence of Tiktok and Youtube Social Media use on the Young Generation in the Jakarta Special Capitol
Article
  • Jan 2023
The study will identify how far the use of social media TikTok and YouTube has influenced the self-quality of the young generation in the Jakarta Special Capitol. Thus, the objective of the study is to identify the influence of the use of the social media TikTok and YouTube on the self-quality of the young generation in Jakarta Special Capitol. In conducting the study, the Stimulus-Response Theory has been implemented because in the use of the social media TikTok and YouTube the public or the young generations will define the initiative upon their alternatives with regards to the needs of satisfaction on certain media. Both the public and the young generations are provided with the decision on the needs within the media society which has been known to compete with one another. As a result, the positivist paradigm has been adopted in the study. Then, the study itself took place in Jakarta Special Capitol from February until March 2022. The design that the researchers have adopted in the study is the causal method whereas the data analysis within the study is conducted by using the PLS. The results of the study show the influence of Tiktok and YouTube social media platforms on the self-quality of the young generations in the Jakarta Special Capitol. The coefficient value of TikTok (X1) against the self-quality of the young generation (Y) is -0.038. Hence, it can be concluded that the social media platform TikTok (X1) has a negative and insignificant influence on the self-quality of the young generations in Jakarta Special Capitol. On the contrary, the coefficient value of YouTube (X2) against the self-quality of the young generation (Y) is 0.687 with a T-statistics value of 6.762 and a p-value of 0.000. Based on these results, it can be concluded that the social media platform YouTube (X2) has a positive and significant influence on the self-quality of the young generations in Jakarta.
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