The Effectiveness of Affiliate Marketing 

for Small Business Owners on

TikTok In The Philippines

A Research Presented to the School of Business

In Partial Fulfillment of the Requirement

for the degree of Bachelor of Science in Business

Administration major in Marketing Management

National Teachers College

Quiapo, Manila

By

Castillo, Maiden Angel A.

Estaño, Ray Cristine V.

Ocampo, Mary Angeli C.

Tibio, Rangielyn Joy I.

Uminga, Sachi Jeremie T

May 2021
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TABLE OF CONTENTS

Title Page

Table Of Contents

Acknowledgement

I – THE PROBLEM AND ITS BACKGROUND

Introduction 3

Statement of the Problem 4

Significance of the Study 5

Scope and Limitations 7

Literature Review 8
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Frameworks 24

Definition Of Terms 27

II – METHODOLOGY

Research Design 28

Research Locale 29

Respondents of the Study 29

Population and Sample Size 29

Sampling Techniques 30

Research Instrument 30

Data Gathering Procedure 31

Data Analysis 32

Survey Questionnaire 33
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ACKNOWLEDGEMENT

We would like express our deepest gratitude to the people who gave us their

guidance and for making this study be accomplished. 

To Ms. Chloe Aquino for making an effort in giving advices for our research

despite of the 13-hour difference in Toronto and the Philippines.

To Ms. Angelique Piapa Cruz for helping us finish our paper despite being busy

because of the SOB week.

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To Ms. Catherine Arboleda and Dean — for being so considerate of the time

submission

To Doc. Daisy Estrada for helping us start our research and help us reach out

when we are in need.

And with all sincerity, we would like to thank our Almighty God for letting us get

through all the hardships in life. 

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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

The Tiktok application was released in the year 2016 by a Chinese

Technology Company, ByteDance. During the pandemic, Tiktok became a hit in

2019 in the Philippines. This application was on a spotlight from then up to now.

TikTok is known for viral dance challenges, food trends, dramas and other forms

of entertainment. TikTok is known for viral dance challenges, food trends,

dramas and other forms of entertainment

In the year 2022, Tiktok has released a new feature called “Tiktok Shop”

which allowed business owners to sell and promote their businesses. With the
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help of the Tiktok, business owners can promote their shop and their products

through video contents. Tiktok was just a simple entertainment platform before

but now, it is also an avenue for small to big online businesses.

Affiliate marketing connects sellers and content creators through

incentives and creativity. It is a new monetization potential for CC’s as well as

new marketing channels for brands. This type of marketing strategy not only

benefits the seller through collaborating with CC’s and pay commission on

profitable sales but also benefits the CC’s promoting companies that your

followers will find useful and gain more followers. 

TikTok has become another leading social media channel, capturing the

attention of consumers as a whole. In this guide, we can showcase how this

platform can help affiliates get more exposure with less effort. Affiliate marketing
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is the process of earning money (commissions) every time a seller or a business

owner promotes a company’s products or services to drive more sales. The

marketer only gets paid every time they drive a sale, just like a commission-

based sales representative.

This study focuses on the influence of affiliate marketing mainly on the

Tiktok Shop. The researchers are going to have an assessment on the

effectiveness of the said marketing type and its influence to the shop owner

and/or sellers om Tiktok Shop

STATEMENT OF THE PROBLEM

This study aims to answer the following questions

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1. How is affiliate marketing creating an impact to the business owners

on TikTok?

1.1 Customer Trust

1.1.1 Sources of information

1.1.2 Brand Recognition

1.1.3 Affiliate Link

2. How are the business owners and content creators’ relationship works

in terms of:

2.1 Creativity

2.2 Branding

2.3 Promotion
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3. What feature of the TikTok platform helps business owners gain more

customers

3.1 Live Selling creation tool,

3.2 Videos related to the product with the attached item in “Yellow

Basket”

3.3 Free Sf, discount, and voucher

SIGNIFICANCE OF THE STUDY

This study will offer a fresh perspective on TikTok's Affiliate marketing

effectiveness for companies, enabling business owners to link their online shops

to TikTok in order to expand their customer base and increase sales.

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With the help of this research, marketers will further understand that the

Tiktok app offers a sizable community of potential clients for their companies.

Small businesses can advertise and sell their goods on Tiktok in addition to other

ways. Insights regarding the most effective and efficient marketing plan for them

are also provided through the Tiktok app.

The TikTok application can assist sellers in promoting products as new,

which will be beneficial to those who are unsure about how to market their goods.

Since TikTok also has influencer marketing influencers, particularly those that fit

your target audience and may help you reach new customers and significantly

increase brand awareness, it is no surprise that sellers select the TikTok app to

market their products.

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Students- A student could benefit in this study by encouraged by instances of

online selling on Tiktok to assume they can launch a successful business that will

offer them a competitive edge in the job market.Students who market their

enterprises on Tiktok may find that they have alternative source of revenue in

case they are unable to find job opportunities in the future. In addition, it inspires

students to invest their own money in activities that won't burden them with

excessive costs.

Buyers- This study would be beneficial to consumers because TikTok's e-

commerce has a significant impact on them in numerous diverse situations. For

instance, consumers can interact with the net profit about their issues and
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queries. They can provide such reviews and comments regarding the TikTok-

purchased goods. In addition, TikTok is well-known for providing us with amusing

demonstrations so that both viewers and customers may witness various

marketing tactics targeted to the goods they were searching for.

Online Sellers- This study may be useful to online retailers because it shows

how Tiktok Affiliate marketing can help them become more visible online. and

quickly realize how effective this strategy is with Tiktok. Online vendors who use

Tiktok affiliate marketing can collaborate with influential social media users and

bloggers to promote their goods.

SCOPE AND LIMITATIONS

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This study examines online retailers and evaluates the usage of affiliates

in TikTok app marketing through raising user engagement. The researchers want

to evaluate the effectiveness of advertising and make recommendations for

boosting customer loyalty.

50 Online sellers and 50 buyers are the ideal respondents for this study

because they are familiar with TikTok's user interface. The study will focus on

metropolitan Manila-based Tiktok users that engage in online trading. The

researchers will send a survey questionnaire to participants online.

REVIEW OF RELATED LITERATURE

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Online marketing of products on different social media platforms

The employment of traditional or offline marketing techniques by

businesses worldwide is well established, and there are almost any new

possibilities for promoting competitiveness. In the past few years, different

marketing strategies was introduced to people. Some of these were affiliate

marketing, e-mail marketing, and online advertising. These kind of marketing

strategies are called the Online Marketing.

In 1997, at a cocktail party, the concept of online affiliate marketing was

introduced. In exchange for a commission payment, a young woman asked

Amazon founder Jeff Bezos if she may advertise any of his books on her

website. 
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Since it was already used by offline firms, the affiliate marketing concept is

no longer novel. An associate, sometimes known as an affiliate, promotes goods

or services provided by a merchant (Lemmenett, 2014). Affiliates use their own

websites to attract customers by placing banners or links to the merchant's

website, for instance (Birkner, 2012). There are currently three main ways that

affiliates can earn commissions. Typically, affiliates and merchants declare the

amount separately: 

1. Pay per click: The affiliate receives a specific commission if a customer

purchases a product from the merchant after clicking on the link or banner

offered on the merchant's website. 

2. Pay per lead: In this scenario, the affiliate receives a commission for each user
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whose contact information is entered into a web form (mostly e-mail address).

The cost of the sold good or service may also affect commission payments,

which leads us to the third type: 

3. Pay per sale: The affiliate receives a specific portion of the product price for

each sale (Lemmenett, 2014). 

Assembling a variety of sorts so that affiliates receive a commission per click, for

example 

sufficient 3 cents, plus 5% of the sale (Lemmenett, 2014)

According to Greg Shepard, CEO of Affiliate Traction, affiliate marketing

helps retailers save more money than they would for conventional web

marketing, they spend more on advertisements for sales. Additionally, he said,

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"You only pay after the sale is made... Additionally, you only pay for completed

purchases, and you pay 30 days after the sale”. Affiliate promotion additional

money is made available for advertising (Birkner, 2012).

Online sales present a number of opportunities for businesses. Since the

world is constantly changing, it is essential to constantly develop new

approaches. Due to the minimal effort required to promote a competing website,

it is significantly simpler for customers to find substitutes from competitors online.

Every internet page is filled with various types of advertisements and offers,

making it difficult for businesses to direct potential customers to a specific

website without "losing" them in their use of the internet. 

This is the main reason why it is crucial to have a basic understanding of

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consumer behavior. Customers behave similarly whether they are online or

offline, regardless of the environment. Opening is typically done to draw in

customers. There are simply various approaches that are used to communicate

with a specific target audience. The techniques employed at the top depend on

how potential customers respond and how prepared an organization is to

understand these behaviors. Since statistics demonstrate that the trend from

intense in stores is toward online consuming, it appears to be essential running a

business today without an internet presence.

The overview of internet and online shopping shows that e-commerce is

widely employed in organizations because of the rapid advancement of

technology and the advantages of online shopping. Additionally, the growth of

individual usage became one of the key factors in the development of online
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purchasing. Few research have looked into the effects of online purchasing on

customer behavior. The earlier research were primarily concerned with the

marketer's perspective, such as how to create an online marketing channel that

is more effective than a conventional offline channel.

Therefore, every business should have at least one online department in

charge of the organization's online presence. To maximize client loyalty in the

continually evolving online world, it must be environment-conforming and

updated as frequently as feasible. Therefore, one of the key objectives for

businesses is to develop a distinct brand that captures the attention of both

online and offline consumers and accurately reflects the company's strengths

and beliefs. When the best of both worlds come together, a corporation can
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maximize both its financial and non-financial return.

Affiliate marketing and how it works

It’s one of the best ways to earn income online. Affiliate don’t need to

come up with its own product as it can sell other people’s products, hence the

term affiliate marketing. Affiliates can find tens of thousands of products to

promote online and one of the best websites is ClickBank and Amazon that will

pay up to 75% commissions. There are products ranging from health and fitness

to tutorials on how to use Photoshop, video sets on how to make money online,

and more. Affiliate marketing is the revenue sharing between online product

creators and online salespeople.

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Compensation and pay are based on performance measures, normally in

the form of clicks, sales, and registrations. There are many benefits of affiliate

marketing and promoting affiliate products include the potential for making lots of

money. Marketers can automate a lot of the advertising process and receive

payment only for desired results, which includes sales, registrations, and clicks.

Affiliate marketing has been a contributor to the rise of many companies

online, including Amazon.com. Amazon.com was one of the first adopters of

affiliate marketing, and now has thousands of affiliate relationships. Affiliate

marketing also gives chance to stand behind products they know and love, by

offering links and banners to them on personal website. Marketers will receive

money for each product purchased that affiliates represent, which is reason
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enough to take part. ( Butch Lirios, FEBRUARY 27, 2018 )

An affiliate program is a form of digital marketing campaign that started in

the Philippines in the mid 2000's when internet penetration is at its height in the

country. According to internetlivestats.com, in 2002, there were roughly 3.5

million internet users in the Philippines brought by 75% user growth based on the

previous year. Significantly, in 2010, there were already 23.3 million internet

users in the country during when the internet penetration rate is 25%. With the

introduction of AdSense and AdWords by Google to the global audience, web

publishers and independent bloggers in the country were given better

opportunities in earning online revenues. The launching of these web-based

products also marked the introduction of a newer advertising model - the affiliate

program.
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The first few companies that introduced affiliate programs to millions of

Filipino digital marketers were Google, Amazon and eBay. Google AdSense

became a popular internet advertising program in 2006, the same year when

Google also launched Blogger.com platform to the world. A blogger, an individual

or group who write blogs and publish on website, can own a blog site by

spending little to nothing since registering an account with Blogger.com is totally

free. In just a few steps, Google AdSense affiliate banner ads can be made to

appear into the blog site. At this point, the blogger can then start generating

income out of blogging.

Amazon established its affiliate programs in the Philippine's internet

market between 2004 and 2006. eBay, one of the largest auction sites today,
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made its entry in the later part of the decade when it introduces eBay Partner

Network, Selling Instructor Program and Trading Assistant Program. On the

same year, WordPress, another popular blogging platform, became an

alternative to Blogger.com by many Filipino bloggers and web publishers.

Philippines is on a digital boom. A recent survey shows that 83% of Filipinos say

that their lives were made easier because of relevant advertising. Reports say

that there is an 84.7% chance for business owners to reach their sales and

marketing goals if they effectively used social media and other digital marketing

channels.

Overall, advertisers, web publishers and even independent bloggers and

internet marketers that are engaging on affiliate programs in the country will

continue to encounter more growth opportunities in online advertising,

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eCommerce, social media marketing, and search engine marketing in the coming

years. This foreseen growth is highly attributed to the rapid internet penetration,

increased digital engagement and strong economic growth of the country - the

state analysts call "perfect digital storm" (Paul B Hata, June 05, 2015).

Effectiveness of the Tiktok Marketing to promote products

Effectiveness is the capacity to bring about the desired outcome of

producing a successful concept. According to Zheng et al, organizational

effectiveness is combined with strategy and knowledge management, which

define as the extent to which an organization achieves its aims. The quality of the

intended outcome is frequently used to evaluate effectiveness. Tiktok gives

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massive opportunities for marketers to promote their brands to a variety of

audiences around the world, claims Tirza, N (2022). Schaffer (2022) claims that

TikTok is a new platform that is significantly inexpensive. It still has more of the

individualized flair that Instagram had before it was so extensively used for

marketing because it hasn't been as widely adopted by businesses.

Starting from social media memes to the most recent TikTok challenges, Tirza

(2022) mentioned. On TikTok, businesses may use a variety of strategies to stay

visible to their viewers and convert them into dedicated customers. Businesses

can freely advertise on TikTok because it has some of the cheapest advertising

rates available. TikTok is one of the most successful platforms for attracting

customers with great content because of its viral nature, which puts it well ahead

of other social media platforms. All it takes to succeed on TikTok and gain more
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followers is a carefully planned platform marketing strategy.

Factors including ethnic expressions, social inclusion, and self-congruity may

have an impact on effectiveness (Licsandru & Cui, 2018). Facebook, YouTube,

and Instagram are the top three social media platforms in the Philippines,

according to Statista (2021). Tiktok is another popular site that has had the most

significant growth. In contrast to other platforms, such as Facebook, Twitter, and

Instagram, TikTok has yet to conduct local studies regarding its influence on

marketing communication, consumer behavior, and purchase intention.

According to Chang (2020), the new media and the technologies that support

them expose advertising to threats and opportunities. According to tuten (2008),

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if a corporation uses social media as one of its business techniques, it will have a

competitive edge. Because they can reach more customers because of

increased consumer online time, marketers are using social media more

frequently. Additionally, a study conducted by global consultant Talyor Nelson

Sofres (TNS). "A Filipino marketer's brand strategy is guided by social media."

Social media monitoring has become the "top" tactic employed by Philippine

marketers to direct their planning and assess the efficacy of brand efforts.

Generation Z sometimes referred to as those who were born between 1997 and

2012 (Dimock, 2019), has become an increasingly avid user of TikTok as a

marketing platform. This is the new generation that marketers should target

(Khwaja et. al, 2020). They can learn more than past generations at their age
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because they are digital natives and can quickly look for anything with an internet

connection (Seemiller & Grace, 2017).

Influence of social platform to the online sellers

Online marketing is a web-based strategy that uses local search and social

media to spread the word about a brand or product to potential customers. In the

1990s, the phrase "digital marketing" initially surfaced. The digital era was

ushered in by the internet and the creation of the Web 1.0 platform. Users of the

Web 1.0 platform could find the information they needed, but they were unable to

share it with others. 

After the first clickable banner went live in 1993, Hot Wired purchased a few 15
banners for their promotion. This signaled the start of the shift in marketing into

the digital era. In 1994, new technologies began to appear in the digital market

as a result of this slow change. 

In contrast, digital marketing refers to the strategies used by Yasmin and

company to connect with consumers online. According to et al. (2015), the

phrase also includes social media, display advertising, search, and mobile phone

promotion. In light of this, marketing through digital technologies would be a

better definition. Because it keeps them informed of new items, encourages

greater engagement, and offers exact information and prices that can be

contrasted with competitors, customers prefer digital marketing. They

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immediately make a purchase and then distribute their content or product

experience.

Online marketing techniques ought to bring in repeat business and profitable

clients. The neighborhood might have an impact on consumers who already

support the brand. As a result of liking the brand, they choose to buy it. Brand

your products for the neighborhood. Because customer loyalty is defined as a

readiness to suggest a good or service, the entire process is the effect of internet

marketing on consumers.

Different types of affiliate marketing

There are three major types of affiliate marketing and these are the unattached
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affiliate marketing, related affiliate marketing, and involved affiliate marketing.

Unattached Affiliate Marketing: The affiliate in this advertising model is

unrelated to the good or service they are promoting. They do not

represent an authority on its use or make claims about it because they

lack any knowledge of related skills or expertise. This is affiliate marketing

at its most basic. The affiliate is relieved of its obligation to recommend or

advise due to its lack of ties to the potential customer and product.

Related Affiliate Marketing: Related affiliate marketing, as its name

suggests, involves the promotion of goods or services by an affiliate who

has some sort of connection to the offering. The relationship typically

exists between the affiliate's target market and the good or service. The

affiliate is a credible source because they possess the authority and

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knowledge necessary to drive traffic. However, the affiliate makes no

guarantees regarding the effectiveness of the good or service.

Involved Affiliate Marketing: With this kind of marketing, the affiliate and

the good or service they're promoting have a closer connection. They

have used or are using the product, and they are sure that others will

benefit from hearing about their positive experiences. They act as reliable

sources of information, and their experiences are the advertisements. On

the other hand, given that they are making recommendations, any issues

with the offering could damage their reputation.

Leading online shopping platform in the Philippines

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ByteDance, a Chinese company, owns TikTok. When it first debuted in

China in 2016, it was referred to as "Douyin." The app was created by

ByteDance to host a variety of short-form videos, lasting anywhere from 15

seconds to 10 minutes, ranging from genres like dance and general

entertainment to pranks, stunts, tricks, and jokes.

The app now has more than 1 billion active users and has expanded

beyond entertainment. As of 2022, TikTok had 3 billion downloads. The app was

downloaded 383 million times between January and June of 2021, eventually

surpassing other social media platforms. The fact that TikTok was introduced

later than the majority of other social media platforms is what stands out.

With the launch of TikTok Shop, sellers from well-known brands to small

and medium-sized businesses have access to a whole new market. TikTok Shop
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has grand ambitions to offer users a new shopping experience and opportunities

for local content creators

TikTok Shop sells products in a variety of categories, including clothing,

cosmetics, personal care, and home and living. For a limited number of products

at launch, TikTok Shop vendors will pay no platform commission fees. One

percent is the maximum payment service fee that payment service partners may

charge.

Since TikTok only supports short videos, content producers can use feed,

content, or livestream to advertise their goods. At first, TikTok also provided

sellers with coupons and first-time buyers with discounts.

People can expect that TikTok Shop will expand incredibly quickly. The
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platform has already experienced phenomenal growth in important markets like

Malaysia and Indonesia. Nothing suggests that won't happen in other markets,

like the Philippines. TikTok Shop also continuously expands its selection and

enhances its logistics, increasing its appeal to both buyers and sellers. For their

logistics requirements in Malaysia, Indonesia, and the Philippines, they recently

partnered with Ninja Van.

TikTok Shop is a fantastic way for businesses in the Philippines to expand

their customer base and boost revenue. Tik Tok Shop's expansion into Southeast

Asia and beyond bodes well for the company's future.

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Online shopping emerges during the time of pandemic

Many people chose to work or study from home while the pandemic

persisted. The e-commerce sector boomed during that time. Page views, app

downloads, and unofficial reviews show that some industries in the Philippines,

including e-commerce, have experienced significant growth.

We can see that more and more trust is being placed in the e-commerce

sector from studies on online shopping behavior and in the Philippines. The value

of the Philippines' commerce industry is anticipated to grow at a compound

annual growth rate of 17% from now until 2025 as a result of this increased trust

and the ongoing pandemic, (GlobalDat, 2021)

In addition, the Philippines Department of Trade and Industry recently

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reported that there were an impressive 93,318 online sellers at the beginning of

January 2021, up from 1,700 in March 2020.

At the height of lockdowns across the nation, especially in Metro Manila,

e-commerce thrives. The future of the retail market is expected to continue

evolving as a result of this merchant migration to online platforms.

A BusinessWorld Insights session on "The future of retail & logistics after

e-commerce boom" in September 2021 covered the evolution of product sales

and delivery through digital channels as well as the benefits of e-commerce for

Philippine businesses and the national economy.

As previously mentioned, the lockdown forced several retailers to move

online. People have also been forced to close their physical stores as a result. As
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of the third quarter of 2021, this increase in vacant space across Metro Manila

has reached 14%, (Bondoc, 2021) , an associate director at Colliers Philippines.

Even so, Mr. Bondoc was of the opinion that brick-and-mortar stores

would continue to exist despite the decline in the physical presence of retail

establishments. Instead, he assumed that there would be a balance between

physical and digital stores.

“Beyond COVID-19 pandemic, Filipinos are expected to be on a revenge

shopping and dining. So, we do not see physical stores being phased out. But

we see stronger coordination between these brick-and-mortar shops and their e-

commerce sites,” he said.

Customers would be much more reliant on the delivery platforms of

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retailers and mall operators, for more convenient shopping.

Tiktok affiliate job opportunities

Promoting and selling another company's goods or services in exchange

for a commission is known as affiliate marketing. It offers the affiliate the chance

to make money online by conducting online sales without having to deal with the

difficulties of developing a product or setting up shop as a legitimate retailer.

Instead, producers or sellers of ready-to-use goods launch affiliate programs

through which online marketers persuade their online contacts, readers, or

viewers to purchase the goods. Thanks to each affiliate marketer having a unique

link, the product creators can distinguish who sends buying consumers through
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to their site and, in return, pay the affiliate marketers a percentage of the money

these people spend at the site.

Most often on a social network, blog, podcast, or video-streaming channel,

the most successful affiliate marketers have a sizable audience of relevant

followers who are the potential customers somewhere. Additionally, TikTok

influencers make excellent affiliate marketers today, at least among the younger

generations.

Despite writing numerous articles about TikTok on the Influencer

Marketing Hub, people continue to encounter (mainly older) individuals who are

puzzled by the "TikTok craze." But TikTok has long since surpassed its gimmick

phase. According to Influencer Marketing Hub's compilation of TikTok statistics,

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the platform now has 1 billion active users each month. Every internet minute,

users of TikTok watch 167 million hours of video. In addition, TikTok surpassed

industry heavyweights Facebook, Instagram, and YouTube to become the most

downloaded app globally in 2021 and 2022 across both the iOS and Android app

stores. Additionally, it receives more engagement than these apps.

Users of TikTok are also not cautious about spending money. With more

than $110 million in user spending in February 2021, TikTok was the top-

grossing non-gaming app globally, according to data from Sensor Tower. Even

though Google One, Piccoma, and Disney+ beat it to fourth place on Google

Play, it ended the year as the highest-grossing app globally. Yes, TikTok has a

young audience; according to Statista, 32.5% of its U.S. users are between the

ages of 10 and 19 and another 29.5% are between the ages of 20 and 29.
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However, you have a chance to succeed with affiliate marketing if you have a

well-known TikTok account and carefully choose products that will appeal to your

audience. TikTok has huge potential, but many marketers have been slow to

recognize it. As a result, the affiliate market there is still in its infancy.

Making sure that your affiliate offers are appealing to your TikTok

audience should be ones top priority. Don't try to sell something just because the

commission rate is high. There is little point in trying to promote stairlifts, walking

sticks, or other items that appeal to the elderly if the majority of viewers of one‟s

videos are in their twenties. Finding affiliate offers for fashion, lifestyle,

technology, and consumer goods will be much easier.

 
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Synthesis

Modern digital consumers spend a lot of time on their mobile devices, but

they also have a very low attention span. While Facebook, Instagram, and similar

platforms catered to mainstream audiences, TikTok has thrived by delivering an

awesome experience to users seeking micro-entertainment. By November 2019,

the video-based social media network had amassed 1.5 billion downloads and

most of the platform’s uses were aged 24 and under. The majority of the

platform’s user base is in Asia, but it’s also growing in popularity in the US,

Europe, and South America. As for advertising costs, it’s worth noting that TikTok

isn’t as competitive as other platforms. Before June 2020, the platform had strict

regulations that only allowed a handful of companies to promote their services.

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Since then, the social network has opened up its marketing features and allowed

marketers to launch their campaigns. Because it’s still relatively exclusive, TikTok

advertising costs are a bit higher than similar platforms. That said, the platform

allows you to engage with hundreds of millions of users that haven’t been

bombarded with ads, which increases your chances of building a successful

campaign. It’s worth noting that TikTok offers basic click and conversion tracking,

but any respectable affiliate will need to implement a third-party tracker to

monitor the performance of their ads.

The good news is that TikTok connects with a huge variety of third-party

tracking tools, including Appsfluer, Tune, AppMetrica, Kochava, Adjust,

myTracker, and many others. Plus, if you’re working with a provider that’s not on 23
their list of supported partners, contact the TikTok support team to learn more

about your options. When choosing an offer, you have the option of working

directly with an advertiser or joining a network. The main difference is that a

network gives you access to multiple offers from a variety of advertisers, giving

you more control and flexibility in almost every sense. (Lemonads, 2022)

TikTok has become the fastest-growing social app in the world, with over

one billion monthly active users spread across dozens of countries and

languages! It even overtook Google to become the most popular website of

2021. While TikTok might just seem like an app “for kids,” or like it’s just a

creative outlet for having fun, there’s a LOT more to it than that. It’s safe to say

that TikTok is now the go-to social platform for businesses and brands to interact
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with their audience and get discovered. At the same time, affiliate marketing has

rapidly grown in popularity over the last several years, making TikTok affiliate

marketing a powerful combination. For TikTok affiliate marketing to make you

money, you need to get enough views on your videos. A few other factors are at

play, but the most important is views. To increase your reach and gain the trust

of your viewers, you need to post regularly. Like written content, the proper

approach is to create a consistent video publishing schedule and stick to it. Aim

to post at least one video a day. However, if you post long-form content, 2 to 3

times per week will be sufficient. Because you’re looking into affiliate marketing,

you may feel like you need to find your own path and be unique. That’s an

understandable impulse, but when creating TikTok content, you should suppress
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it and focus on popular trends. TikTok considers the posting frequency of a

potential influencer marketing affiliate when considering the number of users that

will view a creator’s content. Frequent content creates better engagement rates

and boosts followers. As your account starts to grow a decent following in a

chosen niche or for a certain audience demographic, you can use it for affiliate

marketing. (Daniel Thrasher, 2022)

Conceptual Framework

In this context the relationship between the variables is related to the

researcher’s study. The TikTok online sellers (Independent variable) are those

who sells products to the consumer of the application, the more online sellers on

TikTok the more products being sell (dependent variable) will be able to be sold.
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The increase of affiliate marketing on TikTok (Moderating variable) is observed

when the online sellers and small business owner increases its sales using the

TikTok, when there is an increase in affiliate marketing it only means

effectiveness of affiliate marketing. The effectiveness of affiliate marketing

escalates sales and for it to be successful, the influence of the seller and

promoter (Control variable) must be convincing and honest.

25

Figure 1: Conceptual Framework

Theoretical Framework

This study is anchored on the Factors Influencing the Intention to Use

Affiliate Marketing (Patrick & Hee, 2019), They stated that There are limited

empirical studies and scholars focus on the topic of affiliate marketing. Many

factors affecting the adoption of new technologies or systems have been

discussed individually in previous studies. These factors include perceived

usefulness, perceived ease of use, effort expectancy, performance expectancy,

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facilitating condition, social influence, and others. Diverse factors are linked to

the adoption of technology, either significantly or insignificantly. Three most

important factors have been an emphasis in this study, which are the relative

advantage, compatibility, and observability. Relative advantage, which explains

the advantages underlying technology, is expected to affect the intention to use

affiliate marketing. Values, experiences, and needs are an important component

of compatibility, which is expected to affect the intention to use affiliate

marketing. Besides that, high flexibility, accessibility, and visibility that represent

observability are also expected to affect the intention to use affiliate marketing.

By viewing at the preferred factors, a theoretical framework has been created to

show the influence of relative advantage, compatibility, and observability on the

26
intention to use affiliate marketing.

Figure 2: Theoretical Framework

DEFINITION OF TERMS
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Affiliate Marketing – a marketing arrangement by which an online retailer pays a

third-party website a commission for sales brought about by referrals from that

website.

Affiliate – A connection of people in a larger person or organization.

Tiktok – An entertainment application.

CC – Content creators

27

CHAPTER 2
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METHODOLOGY AND PROCEDURE

This chapter presents the methods used by the researcher, the research

design, respondents of the study, the sample and sampling technique, the

research instruments used, the data gathering procedure, validation of the

instrument, and statistical treatment of data.

A. Research Design

This study will utilize the Quantitative descriptive method of research.

According to Shona McCombes (2019), A population, circumstance, or

phenomena is intended to be correctly and methodically described through

descriptive study. What, where, when, and how inquiries can be answered, but
28
why questions cannot. A descriptive research strategy can study one or more

variables using a wide range of research techniques. Contrary to experimental

research, the researcher just observes and measures the variables in this type of

study.

As the proponent examined and discussed the findings of the secondary

data in light of the primary data, it is also quantitative. To ask a group of

individuals questions, then trying to analyze their responses to know and

understand more about them questionnaires for discussions with a set of pre-

written questions with key informants are taken into consideration.

B. Research Locale
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This study will be conducted in Metro Manila, Philippines. The

respondents will be sent a survey questionnaire that they can answer in the

comfort of their homes or any place the respondents choose. The researchers

will look for online sellers and buyers residing in Metro Manila, Philippines.

C. Respondents of the Study Population and Sample Size

The respondents to this study are sellers who use affiliate marketing as a

means of promoting and selling to grow their customers and enhance their

business. Respondents voluntarily engage in the research study and have

between one and five years of experience selling in Metro Manila with affiliate

products that are categorized as acceptable and trendy.

29
Population and Sample Size

A total of 50 Online Sellers and 50 Buyers in the Tiktok platform are the

respondents in this study. Using the Researcher's Observation, the most trusted

online shopping platform in the Philippines Tiktok shop is identified. The

respondent of this study has experience with the features of TikTok.

Online sellers with a history of successful sales and Tiktok engagement based on

closing a sale, good customer relations, high-quality presentation, solid product

descriptions, and product ratings and reviews and Buyers that are purchasers in

Tiktok will be chosen as study samples by the researcher. All of the responses
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will remain confidential due to the sensitivity of the data we will acquire and the

respondents' right to privacy.

Sampling Techniques 

Purposive type of non-profitability sampling test is used for the selection of

respondents. With this kind of sampling, also known as judgement sampling, the

researcher uses their knowledge to choose a sample that will be most helpful to

their research goals. 

It is frequently employed in qualitative research when the researcher prefers

to learn in-depth information on a particular occurrence versus drawing general

conclusions from statistics or when the population is relatively tiny and focused.
30
A successful purposive sample must have precise inclusion requirements and

justifications. The researcher is more likely to obtain comments from the target

group using a purposive sample since they are more accessible.

D. Research Instrument

The researchers used survey questionnaire that will be sent to

respondents. The data collected from survey is then statistically analyzed to draw

meaningful research conclusions. The essence of this survey method can be

explained as questioning individuals on a topic or topics and then describing their

responses. Researchers will conduct the survey by using a social media platform

such as Facebook and the link of Google Form will be posted or sent to the

respondents to answer the survey. Online survey research is one of the most
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popular surveys research methods today. The survey questionnaire was the

instrument used to collect data.

E. Data Gathering Procedure

The instrument used was a questionnaire survey created by the

researcher and distributed to respondents. Surveys are an excellent way to learn

about past actions and attitudes, but they are costly and difficult to implement.

The essence of this survey method is to question people about a topic or topics

and then describe their responses. An online questionnaire is a series of

questions designed to gather information about a specific audience or group of

people. The interviewees will quickly complete the form, which they will access
31
via the internet. This type of questionnaire is a tool for gathering feedback on a

product or service as well as collecting data. Online surveys frequently have two

severe drawbacks: it is difficult to describe the population to which they are

delivered, and respondents may self-select into the sample.

F. Data Analysis

The researchers used a likert scale to know the opinions of the respondents

towards the effectiveness of Affliate Marketing on TikTok. Using the likert scale,

the researchers can analyze the information gathered by identifying the

satisfaction and familiarity of the buyers with identification question/s.

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SURVEY QUESTIONNAIRE FOR SELLERS

Application Familiarity

1. I am familiar with the TikTok Shop.

a. Not Familiar

b. Somewhat Familiar

c. Neutral

d. Familiar

e. Very Familiar

2. I am familiar with TikTok Shop’s functions (How to post products and etc.)

a. Not Familiar

b. Somewhat Familiar
32
c. Neutral

d. Familiar

e. Very Familiar

3. I know where to find the things I need to see in the TikTok Shop.

a. Not Familiar

b. Somewhat Familiar

c. Neutral

d. Familiar

e. Very Familiar

For 1 being the lowest and 5 being the highest, how much would you rate these

Tiktok features

4. Live selling tools

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5. Yellow basket

6. Link in bio

7. Tiktok Shop

8. Tiktok engagement (like, comment, share)

Video Advertising/Content

9. My advertising video takes about:

a. 10 seconds – 15 seconds

b. 15 seconds – 30 seconds

c. 30 seconds – 60 seconds

d. 60 seconds above

For 1 being the lowest and 5 being the highest, how much would you rate these:
33
10. Video Advertisement

11. Product Presentation

12. Customer Engagement

13. Product Quantity (in the market)

14. Seller Commission

15. Product Reviews

16. Branding

For 1 being the lowest and 5 being the highest, how much would you satisfied

are you in using Tiktok and affiliate marketing as a tool.

17. Seller Commission

18. Customer Engagement

19. Product Reviews (through comments)

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20. Yellow basket

21. Product Transparency

22. Potential Customers

23. Low cost start-up

SURVEY QUESTIONNAIRE FOR BUYERS

Application Familiarity

1. How familiar are you with the Tiktok Shop

a. Not Familiar

b. Somewhat Familiar

c. Neutral
34
d. Familiar

e. Very Familiar

2. I consider this the most before buying a product.

a. Product Quality

b. Influencer

c. Price

d. Others..

3. These are the products I usually buy in Tiktok Shop

a. Beauty products (make-up)

b. Skin care products

c. Shirts

d. Dresses
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e. Pants/Shorts

f. Undergarments

g. Accessories

h. Others..

4. These/This are/is my favorite source/s of information of the things I buy on

Tiktok.

a. Influencers

b. Advertisement

c. Youtube

d. Tiktok

e. Facebook
35
f. Friends referral

g. Own research

Buyers Experience

In a scale of 1 to 5 with 1 being the lowest and 5 being the highest, how much

would you rate these:

5. Seller’s Advertisement

6. Vouchers and discounts

7. Promised time frame (delivery)

8. Tiktok shop’s convenience

9. Seller engagement

10. Buying from Live Sellers (only if you already bought from live selling)

11. Product Transparency

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12. Trusted Shops/brands

Customer Budget

13. How much do you earn a month?

a. No Earnings (Student/Unemployed)

b. PHP 1,000 - PHP 5,000

c. PHP 5,000 - PHP 10,000

d. PHP 10,000 - PHP 20,000

e. PHP 20,000 - PHP 30,000

f. PHP 30,000 above

14. How much do you usually spend on Tiktok shop a month?

a. PHP 100 - PHP 500

36
b. PHP 500 - PHP 1000

c. PHP 1,000 - PHP 5,000

d. PHP 5,000 - PHP 10,000

e. PHP 10,000 above

15. I think that Tiktok shop is a great shopping platform.

a. Strongly disagree

b. Disagree

c. Neutral

d. Agree

e. Strongly Agree
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BIBLIOGRAPHY

Big Commerce (n.d.) Tiktok made me buy it: how to promote your
ecommerce brand and sell on tiktok.
https://www.bigcommerce.com/articles/omnichannel-retail/selling-on-
tiktok/

Optimizely (n.d) What is online marketing?

https://www.optimizely.com/optimization-glossary/online-marketing/

Vipin Nayar (2017, August) The history and evolution of digital marketing
https://avivdigital.in/history-of-digital-marketing/

Afrina Yasmin (2015, January ) Effectiveness of digital marketing in the

challenging age
https://www.researchgate.net/scientific-contributions/Afrina-Yasmin-
2124049339

WebFX (n.d) How does marketing benefit consumers

https://www.webfx.com/digital-marketing/learn/how-does-digital-marketing-
benefit-consumers/ 37
Jo R., Audrey L. (2014, April) The digital marketing skills gap: developing
a digital marketer model for the communication industries
https://www.sciencedirect.com/science/article/abs/pii/S026840121300153
9

Butch Lirios (2018, February) What is affiliate marketing? Affiliate

marketing basics
https://butchlirios.com/what-is-affiliate-marketing-affiliate-marketing-
basics/

Paul B. Hata (2015, June) Growth of affiliate program in the Philippines

https://ezinearticles.com/?Growth-of-Affiliate-Programs-in-the-
Philippines&id=9057895

BlueTaylor (2022, March) TikTok affiliate aarketing: How to become Tik

Tok affiliate in 2022?
https://blog.commissionfactory.com/affiliate-marketing/tiktok-and-affiliate-
marketing
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Jesse Lakes (2021, June) TikTok affiliate marketing – How it works –

geniuslink Blog
https://geniuslink.com/blog/tiktok-affiliate-marketing/

Joan (2021, December) Affiliate marketing on TikTok: How to make

money?
https://blog.uppromote.com/tiktok-affiliate-marketing-how-to-make-money-
on-tiktok/

Wnuk, K., Silvander, J., & Wilson, M. (n.d.). A literature review on the
effectiveness and the efficiency of business modeling. academia edu.
Retrieved November 24, 2022, from
https://www.academia.edu/37365236/A_Literature_Review_on_the_Effecti
veness_and_Efficiency_of_Business_Modeling

Tirza, N. (2022, September 12). Tiktok digital marketing: How it affects

business Growth? ampluence. Retrieved November 24, 2022,
fromhttps://www.ampfluence.com/tiktok-digital-marketing/?
fbclid=IwAR3Mv2Nky7t5_JqcElR9rzIOHHoOW1dVSWTFf4lTtvo9yVHlt-
71Y-mY6sg#:~:text=Every%20year%20more%20than%2090,brand
%20and%20gain%20more%20customers 38
Araujo, C., Perater, K., Quicho, & A., Etrata A. (2022, April). Influence of
TikTok video advertisements on generation z’s behavior and purchase
Intentioni. josmas.
Retrieved November 24, 2022, from
https://ijosmas.org/index.php/ijosmas/article/view/123

Belga, N., Garcia, N., & Mendoza, D. (2019, October). Effectiveness of

social media use towards the interaction of young adults to local
businesses. Ijariie. Retrieved November 24, 2022, from
http://ijariie.com/AdminUploadPdf/Effectiveness_of_Social_Media_Use_T
owards_the_Interaction_of_Young_Adults_to_Local_Businesses_ijariie10
968.pdf

Susanne S., Monika G. (2015) “Online marketing strategies: the future is

here”
https://www.jois.eu/files/JIS_Vol8_N2_Schwarzl.pdf

Dr. K. Murungan (2019, April) A study on customer perception towards

online marketing in Chengalpattu Town
https://web.archive.org/web/20200321112459id_/http://www.ejessr.mayas
publication.com/2019/apr_2019/apr-2019-04.pdf
Jamie Reynolds (2020, December) TikTok on modern digital consumers
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https://www.lemonads.com/blog/how-to-use-tiktok-for-affiliate-marketing/

Daniel Thrasher (2022, June) Affiliate marketing in 2022

https://www.clickbank.com/blog/tiktok-affiliate-marketing/

Whitney Swaim (2021, August) Affiliate marketing 101: What you need to
know
https://metrictheory.com/blog/affiliate-marketing-101-intro-to-affiliate-
marketing/

Patrick Z., Choon Hee O. (2019, March) Factoes of influencing the

intention to use affiliate marketing: a conceptual analysis
https://hrmars.com/papers_submitted/5608/Factors_Influencing_the_Inten
tion_to_Use_Affiliate_Marketing_A_Conceptual_Analysis.pdf

39

CURICULUM VITAE
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Maiden Angel A. Castillo

Quiapo, Manila |

Secondary Level: STI Colleges Las Piñas (2019 -02021)

40
Accounting, Business, and Management
Tertiary Level: National Teachers College
Bachelor of Science in Business Administration

Experience
- none
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Ray Cristine V. Estaño

San Nicolas, Manila | (091) 542-42821 |
[email protected]

Summary

A marketing student that has experienced being a student leader for 2

consecutive years with three different obligations.

Secondary Level: Santa Isabel College of Manila (2015 – 2019)

Accountancy and Business Management
Tertiary Level: National Teachers College
Bachelor of Science in Business Administration 41
Objective

I am seeking for a competitive yet beginner friendly position that offers a

learning environment for developing my skills and ideas for the
company’s development.

Experience

- Special Program Employment for Students/ October 2021- November 2021

(PESO)

Skills

• Basiccomputer and editing skills, Good in leadership and initiating for

group projects, can communicate fluently in two different languages; can
handle workloads and time management.
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Mary Angeli A. Ocampo

Sampaloc, Manila | (097) 765-66421 |
[email protected]

Summary

A motivated and hard-working student pursuing a Marketing Management course

at National Teachers College. Eager to learn and share my knowledge to
contribute to your company’s goal.

Secondary Level: National Teachers College (2018 - 2020)

Accounting, Business, and Management
Tertiary Level: National Teachers College
Bachelor of Science in Business Administration 42
Objective

Looking for an entry-level employment where I can develop my talents as

a marketing expert and help a firm succeed in its overall mission.

Experience

- none

Skills

- Good in communication skills, creative thinking, tram work, Time

management, organizational skills, problem-solving, Active listening,
Microsoft Excel, Email management.
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Rangielyn Tibio
San Mateo, Rizal | (096) 333-07729 | [email protected]

Summary
A marketing student with experience in sales. Eager to contribute to the
company with passion, determination, and willingness to learn
more.Education

Secondary Level: Tañong High School (2015-2019)

Technological Institute of the Philippines (2019-2021)
Accounting, Business, and Management
Tertiary Level: National Teachers College
Bachelor of Science in Business Administration
43
Objective
To develop a profession in Marketing or Business that will benefit me in
the near future—seeking a competitive position where I can put my skills
and knowledge to good use—and to accept improvements that will benefit
my career decision.

Experience
Converge ICT Solutions
Inc., Sales Agent July 2021-
Feb 23 2022
● Offer and introduce to customers the converge fiber
● Giving flyers and a house to house selling to attract more clients
● Customer loyalty was managed with the aim of referrals

Skills

• Proficient in drawing, and simple editing, basic computer literate, general

business knowledge, basic accounting, Good in leadership and collaboration,
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critical thinking, effective communication, adaptation, creativity, and time

management

Sachi Jeremie T.
Uminga
Sampaloc, Manila

Secondary Level: The National Teachers College (2016 – 2019)

Accounting, Business, and Management
Tertiary Level: National Teachers College
Bachelor of Science in Business Administration

Experience
44
- Special Program Employment for Students/ October 2021- November 2021
(PESO)
- clerical, encoding, and messengerial duties, as well as other computer and
programming jobs

Skills

- Strong communication and interpersonal skills

- Motivated and dedicated
- Highly observant
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National Teachers College

School of Business

Adviser’s Clearance for Research

Presentation

Name of Students Date of

Presentation
Castillo, Maiden Angel A.
Estaño, Ray Cristine V.
Ocampo, Mary Angeli C.
Tibio, Rangielyn Joy I. BSBA MM
Uminga, Sachi Jeremie T. Program

45
Research Title Research
Professor Doc.Daisy
Doc. Daisy Estrada
How Effective is Affiliate Marketing for Small Business Owners Estrada
on TikTok In The Philippines

Program
Head Maria Catherine
Ms.Maria Arboleda
Catherine
Arboleda

As the adviser, I hereby authorize the presentation of this research.

Ch1 & Ch2 Ch1 to Ch4

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46

Angelique B. Piapa Cruz

Signature of the Adviser over
Printed Name
Date: Jan. 21, 2023