TikTok's Recommendation Algorithm – Influence on Consumer Behavior
AI-driven recommendations and live-stream shopping are reshaping consumer behavior and ethics. How can businesses balance personalization with consumer autonomy?
At a glance
TikTok Shop Gross Merchandise Value (GMV)
US$ 32.6 billion
(as of 2024)
Total Users
1.7 billion
(as of 2024)
Total Revenue
US$ 23 billion
(as of 2024)
Case Focus
Consumer Behavior, Marketing, Business Ethics
Abstract
TikTok has emerged as a transformative force in digital commerce, leveraging its powerful recommendation algorithm to influence consumer behavior and redefine online shopping through immersive live-stream experiences.
This case study, adapted from a student research project at Kwansei Gakuin University, investigates the psychological and ethical implications of TikTok’s AI-driven recommendation systems on consumer autonomy, with a focus on perfume-related purchasing behavior. Employing behavioral frameworks, the case study reveals how live-stream shopping can manipulate flow states and cognitive trust to drive immediate purchases, often blurring the line between informed choice and algorithmic manipulation. Through the contrasting journeys of two users – Amy, an impulse buyer influenced by charismatic livestreams, and Emily, a research-driven consumer – the study explores how emotional immersion, sensory cues, and influencer credibility intersect with algorithmic design to shape decision-making processes.
Cover Photo: Shutterstock
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(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
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