EFFECTIVENESS OF ONLINE AFFILIATE MARKETING IN TIKTOK SHOPS: BASIS FOR MARKETING PROGRAM

Abstract

This study examines the effectiveness of online affiliate marketing on TikTok Shops through the lens of Lou et al.’s (2022) Source Credibility Theory. This theory posits that an influencer’s perceived trustworthiness, expertise, and authenticity are critical in shaping consumer engagement and persuasion. By analyzing these dimensions, the research aims to determine how influencer credibility influences user behavior, purchasing decisions, and the overall success of affiliate marketing strategies within the TikTok ecosystem. This study utilized a descriptive quantitative research design, gathering data from 200 TikTok Shop consumers through convenience sampling. Statistical analyses—including weighted mean, Kruskal-Wallis, and Mann-Whitney U tests—were employed to assess demographic characteristics, perceived effectiveness of affiliate marketing, and primary consumer concerns. Findings revealed that most respondents were young adults aged 18 to 29, with a slightly higher proportion of males (55%). Moreover, the majority were budget-conscious, with 65% reporting monthly TikTok Shop expenditures of less than ₱1,000. Participants expressed moderate agreement regarding the effectiveness of core affiliate marketing strategies on TikTok Shops, with mean scores indicating favorable perceptions of targeted content creation (M = 3.18), influencer collaborations (M = 3.07), call-to-action (CTA) integration (M = 3.24), real-time analytics (M = 3.25), and overall message authenticity (M = 3.18). Non-parametric analyses revealed significant differences in perceived authenticity based on monthly spending levels (H = 8.36, p = 0.039) and in CTA effectiveness relative to socio-economic status (H = 4.51, p = 0.034). In contrast, gender, age, and purchase frequency did not exhibit statistically significant effects on consumer perceptions of marketing effectiveness. The findings revealed several key consumer concerns that undermine trust and purchasing decisions on TikTok Shops, with the most common issues being counterfeit or low-quality products (60%), vague product descriptions (57%), and insufficient product information (50%). These concerns highlight the need for greater transparency and reliability in online affiliate marketing. To address these challenges, the study proposes a Five-Pillar Strategic Marketing Program: Content Optimization – Use AI tools to produce emotionally resonant, trend-aligned video content tailored to user behavior and platform algorithms to maximize engagement. Micro-Influencer Collaborations – Partner with niche creators who reflect specific audience demographics to foster relatability and boost authenticity. Dynamic Call-to-Actions (CTAs) – Apply urgency-driven messaging (e.g., “Limited Stock Available” or “Offer Ends Soon”) to encourage immediate responses and improve conversions. Analytics-Driven Adjustments – Leverage TikTok’s real-time analytics for data-driven refinements and agile marketing interventions.  Transparency Initiatives – Implement verified seller badges, provide detailed product descriptions, and encourage user-generated reviews to build trust and reduce skepticism.  These strategies align with Gen Z’s preferences for authenticity, affordability, and convenience. The study further recommends integrating AI-powered quality control systems and enhanced seller training programs to address logistical and reputational issues. By adopting these measures, brands can strengthen consumer trust, increase conversion rates, and navigate TikTok’s rapidly evolving social commerce landscape. Ultimately, the proposed framework offers actionable insights to maximize affiliate marketing potential while minimizing consumer risk and dissatisfaction.