Influence of Brand Loyalty on Consumer Sportswear in Malaysia

Name: NG KOK CHUAN (JOHN) Student No.: 0803H66891 Subject: ENGLISH 102 Assignment: Final Research Paper Lecturer: MISS PREMA

Abstract

Throughout the years, sportswear has become part of fashion trend because of the variety of choices in style compared to the olden days. The younger generations today tend to consume only one or two brands only. The objective of this study is to examine to what extent is there a positive relationship between the factors and brand loyalty on consumer sportswear. The purpose of this research is to investigate how the respondents are influenced by factors of brand loyalty towards sportswear brands. Previous research adopted three factors to test the Malaysian environment. The three factors are brand name, product quality and style. In order to increase customer satisfaction and drive them to be brand loyalists, marketers are encouraged to develop aggressive marketing programs. The questionnaires consist of three sections. Section A is Demographic, Section B is Brand Loyalty, and Section C is factors of influencing Brand Loyalty. There are nine closed-ended questions, one open-ended question and three likert scale questions. Questionnaires were distributed and self-administered to 30 respondents. Descriptive analysis and one-way ANOVA were used in this research. The research results showed that there is positive and significant relationship between the three factors and brand loyalty. Brand name has more influence on the brand loyalty compared to the other two factors. In future study, a research can be done according to different races, cultural backgrounds which are more appropriate to the Malaysian environment is recommended in order to obtain more accurate information.

Keywords: Brand loyalty, Sportswear, Consumer Satisfaction

ACKNOWLEDGEMENT

The researchers wish to express their deepest gratitude and warmest appreciation to the following people, who, in any way have contributed and inspired the researchers to the overall success of the undertaking: To Miss Prema for her guidance and support in the duration of the study. To the respondents of this survey in Sunway Pyramid, Subang Jaya, for their selfless cooperation and sharing their precious time. To our friends, who have been unselfishly extending their efforts and understanding. To our parents who have always been very understanding and supportive both financially and emotionally. And above all, to the Almighty God, who never cease in loving us and for the continued guidance and protection.

The Researchers

Content S.No 1.0 Introduction 1.1 1.2 1.3 2.0 2.1 2.2 2.3 2.4 2.5 3.0 Background of the research Purpose of Research Research question and Research Hypotheses Literature review Brand Loyalty Brand Name Product Quality Style Research Framework 3.0 Research Methodology Page No. 1 1-2 2 3 3 3 4 4-5 5 5 6

3.1 4.0 5.0 10.0 11.0 12.0

3.1 Quantitative Research Findings Analysis Conclusion References Appendix

6 6-10 10-11 11-12 13-14 -

1.0 Introduction Research Influence of Brand Loyalty on Consumer Sportswear in Malaysia

1.1 Background of the research In Malaysia, sportswear brands such as Nike, Adidas, Reebok, Puma and Fila are popular among sportswear consumers. Sportswear has become a common and popular category among young people as it identifies them with a more relaxed lifestyle, greater versatility and comfort. This has prompted manufacturers like Nike and Adidas to start expanding their business particularly in Asia as it has the potential to give them higher volume of sales for their products .Many companies, especially those in the sportswear industry try to enhance brand loyalty among their customers. Brand loyalty is a consumers conscious or unconscious decision that is expressed through the intention or behavior to repurchase a particular brand continually. In marketing, brand loyalty consists of a consumers commitment to repurchase the brand through repeated buying of a product or a service or other positive behaviors such as word of mouth. This indicates that the repurchase decision very much depends on trust and quality performance of the product or service (Chaudhuriand Holbrook, 2001). Brand Loyalty also influenced by the customer attitude towards the brand, behavior and customer experience Two ways to think of brand loyalty:a) Brand Loyalty as Behavior b) Brand Loyalty as an Attitude (Jagdish N. Sheth, 2004) In Brand loyalty as behavior see a customer consistent to repurchase of brand. In the West, brand loyalty is recognized as an asset and consumers are willing to pay more for a brand (Wernerfelt, 1991). However, there are fewer but more powerful retailers in the sportswear market, so the competition is fierce in the sportswear market. Well-established

brand names continue to contribute investment and time in upholding brand identity, preserving brand loyalty and developing new sports products lines so as to occupy more market share. Marketing managers realize the rising trends of brand switching and recognize customer retention as an easier and more reliable source of superior performance (Reichheld & Sasser, 1990). Therefore, it is important for marketers to acquire more knowledge in brand loyalty.

1.2 Purpose of Research The purpose of this research is to investigate how the respondents are influenced by factors of brand loyalty towards sportswear brands. Previous research adopted seven factors to test in different countries (Lau e al., 2006). The seven factors of brand loyalty are brand name, product quality, price, style, promotion, and service quality and store environment. This research will focus on three factors which are brand name, product quality and style. The intention of research is to figure out the reasons that the brand loyalty is the key role in sport wear selection, to study what factors influence the brand loyalty and to learn more about the concept of brand loyalty in retail industry. Quantitative research method is used in this research. Questionnaires were distributed and self-administered to 30 respondents. Descriptive analysis and one-way ANOVA were used in this research. Brand name has shown strong correlation with brand loyalty. In order to increase customer satisfaction and drive them to be brand loyalists, marketers are encouraged to develop aggressive marketing programs. The research helped the fashion industry to know more about the consumer behavior and carry a better marketing plan in the future.

1.3 Research question and Research Hypotheses This study focuses on the factors that influence consumers brand loyalty towards a particular brand. Based on the factors that influence brand loyalty, the following hypotheses are derived.

1. 2.

What are the factors influencing brand loyalty in sport wear industry? To what extent is there a positive relationship between the three factorsbrand name, product quality and styleand brand loyalty on consumer sportswear?

2.0 Literature review FACTORS OF BRAND LOYALTY Lau et al. (2006) in his article mentioned that there were seven factors that influenced consumers brand loyalty towards certain sportswear brands. The factors were: brand name, product quality, price, style, store environment, promotion and service quality.

2.1 Brand Loyalty There are many operational definitions of brand loyalty. In general, brand loyalty can be defined as the strength of preference for a brand compared to other similar available options. This is often measured in terms of repeat purchase behavior or price sensitivity (Brandchannel.com, 2006). However, Bloemer and Kasper (1995) defined true brand loyalty as having six necessary conditions which are: 1) the biased (i.e. non-random); 2) behavioral response (i.e. purchase); 3) expressed over time; 4) by some decision-making unit; 5) with respect to one or more alternative brands out of a set of such brands; and 6) a function of psychological processes. It can be measure by asking customer to rank various brands in terms of how they like it, which brand prefer more.

2.2 Brand Name Famous brand names can disseminate product benefits and lead to higher recall of advertised benefits than non-famous brand names (Keller, 2003). There are many unfamiliar brand names and alternatives available in the market place. Consumers may prefer to trust major famous brand names. These prestigious brand names and their images attract consumers to purchase the brand and bring about repeat purchasing behavior and reduce price related switching behaviors (Cadogan and Foster, 2000). Furthermore, brand personality provides links to the brands emotional and self-expressive benefits for differentiation. This is important for brands which have only minor physical differences and are consumed in a social setting where the brand can create a visible image about the consumer itself.

According to Kohli and Thakor (1997), brand name is the creation of an image or the development of a brand identity and is an expensive and time consuming process. The development of a brand name is an essential part of the process since the name is the basis of a brands image. Brand name is important for the firm to attract customers to purchase the product and influence repeat purchasing behavior. Consumer tend to perceive the products from an overall perspective, associating with brand name all the attributes and satisfaction experienced by the purchase and use of the product.

2.3 Product Quality Product Quality encompasses the features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. In other words, product quality is defined as fitness for use or conformance to requirement (Russell and Taylor, 2006). Material is important in product quality because it affects the hand feel, texture and other performance aspects of the product. Further, consumers relate personally to color, and could

select or reject a fashion because of color. If the color does not appeal to them or flatter their own color, they will reject the fashion (Frings, 2005). This indicates that quality characteristics are also related to performance.

2.4 Style Style is visual appearance, which includes line, silhouette and details affecting consumer perception towards a brand (Frings, 2005). According to Abraham and Littrell (1995), a composite list of apparel attributes has been generated and one of the conceptual categories is style. Consumers judgment depends on the consumers level of fashion consciousness, so judgment will be conditioned by their opinion of what is currently fashionable. Brands that supply stylish sportswear attract loyal consumers who are fashion conscious. Fashion leaders or followers usually purchase or continue to repeatedly purchase their fashion garments in stores that are highly fashionable. They gain satisfaction from wearing the latest fashion and style which also satisfies their ego.

2.5 Research Framework

Brand Loyalty

Brand Name

Product Quality

Style

3.0 Research Methodology In this research, quantitative research method was used to answer the question. Different type of questions used such as closed-ended question, open-ended question and etc. to obtain the result in this research.

3.1 Quantitative Research Respondents of multiple ethnicities, namely Malay, Chinese, Indian and other races, were selected from Subang Jaya. In Subang Jaya, a biggest and most famous shopping mall was selectedSunway Pyramidto conduct the survey. This mall was selected because it represents the largest mall in that area. The questionnaires consist of three sections. Section A is Demographic, Section B is Brand Loyalty, and Section C is factors of influencing Brand Loyalty. There are nine closed-ended questions, one open-ended question and three likert scale questions. Questionnaires were distributed and self-administered to 30 respondents at a big shopping mall in Malaysia. Respondents must be aged between 18 to 24 years old. 15 males and 15 females will be selected as respondents to avoid gender biased.

4.0 Findings Descriptive analysis is used to analysis is used to analyze the background as well as the respondents profiles pertaining to their evaluation of brand loyalty. Descriptive analysis, one-way ANOVA and Pearson Correlation were used in this study. Tables and graphs will be used to show the research date clearly. The ideal research results will show that there is positive and significant relationship between factors of brand loyalty with sportswear brand loyalty.

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Table 1: Profile of the Sample Demographic Factor Gender Valid no. Male: 15 Female: 15 Races Malay: 15 Chinese: 9 Indian: 8 Age 16-19: 8 20-23: 16 24 and above: 6 Occupation Students: 20 Private Sector: 4 Government Sector: 4 Self-employed: 1 Education Level PhD: 1 Master: 3 Degree: 17 Diploma: 6 SPM/SPTM: 3 Income: Less than RM1000: 12 RM1001-RM2000: 10 RM2001-RM3000: 2 RM3001-RM4000: 4 RM4000 and above: 2 Percentage (%) 50.0 50.0 50.0 34.0 27.0 26.7 53.3 20.0 66.6 13.3 13.3 3.3 3.3 10.0 56.6 20.0 10.0 40.0 33.33 6.66 13.33 6.66

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Table 1 lists all the profile to show a clear picture of the respondents background such as age, income, and occupation. As show in the table, 26.7% respondents are between 16 to 19 years old and 53.3% respondents are between 20 to 23 years old. Those two groups of respondents are mostly students. 40% of the respondents have an RM1000 or less income level because most of the respondents are students.

Table 2 lists the Cronbachs Alpha (coefficient alpha) of each variable. All the variables show a high degree of reliability.

Table 2: Reliability Analysis of Factor of Brand Loyalty Variables Brand Name Product Quality Style Alpha 0.6628 0.6472 0.7882

Table 3 shows that there are three independent variable factors of brand loyalty that were tested by the researcher through the questionnaires distributed to respondents. The Likert scale was used in the questionnaire: 1 indicates strongly disagree, 2 indicate disagree, 3 indicate agree and 4 indicate strongly agree. The result is derived from the highest mean score of factors of brand loyalty based on the respondents answers. The overall result shows that brand name is the most important factor. In the Malaysian environment respondents particularly choose brand name as the main factor that influences them to be brand loyal customers.

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Table 3: Ranking Factor of Brand Loyalty Factor of Brand Loyalty Brand Name Q1. The brand is reputable. Q2. The prestigious brand name and image attract me to purchase from the brand. Q3. The brand name is selected regardless of price. Q4.The brand reflects my own personality. Style Q1. The brand of sportswear provides wide variety of styles for me to choose. Q2. Styles of the brand of sportswear are suitable for me. Q3. Styles of the brand of sportswear have distinctive features. Q4. Styles of the brand of sportswear are trendy and fashionable. Product Quality Q1. The size of sportswear fits me very much. Q2. The materials used by the brand are comfortable. Q3. The brand has sufficient color. Q4. The brand has good functional quality. Rank Mean 3.70 4.01 3.72 3.85 3.82 3.76 3.84 3.71 3.81 Mean Average: 3.78 3.73 3.85 3.44 3.42 3.61

Mean Average:

Mean Average:

Table 4 shows the result of one-way ANOVA which helps to analyze the factors of brand loyalty and income level was executed. The objective of the analysis is to find out whether is there a positive relationship between the three factorsbrand name, product quality and styleand brand loyalty on consumer sportswear. All three variables which are brand name (.000), product quality (.009), and style (0.38) are significant. The overall results show that Malaysias youngsters prefer brand name, style and product quality as factors of brand loyalty.

Table 4: Income Level versus Factors of Brand Loyalty Brand Name Sig. .000 Product Quality .009 Style .038

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Mean: < RM 1000 1001- 2000 2001- 3000 3001-4000 >RM 4000

18.5000 14.8750 13.3000 14.8627 13.3000

17.2500 17.0000 15.0980 15.5500 15.0980

14.0196 13.5000 11.7896 12.5500 11.7896

5.0 Analysis Table 6: Significance of brand loyalty factors with brand loyalty Variables Brand Name Product Quality Style *Significant at 0.01 level Pearson Correlation .562 .302 .331 Sig. (2-tailed)* .000 .002 .001

As shown in table 6, brand name was found to have significant positive relationship with brand loyalty. The results showed that consumers favored brand image when they perceive positive benefits or function from the product. They would then recommend the brand, have positive reaction on the price premium and are willing to accept brand extensions to other product categories within the same brand.

Product quality was shown to have positive relationship with brand loyalty. The correlation is considered a moderate correlation (r=0.302) based on Cohens (1988) guidelines. This finding indicates that product quality is significant in the consumer decision making process.

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The research findings showed that brand name and brand loyalty had a positive relationship. Brand name was an important consideration for the consumer in Malaysia. As long as the consumers are satisfied with the reputation of the brand, they will repurchase the same brand again. They might also probably think that their personality fit with brand personality, so the young consumers are willing to spend more on their favor brands.

The results also showed that style and brand loyalty were positively related. Style was considered as one of the most important factors in determining a consumers brand loyalty. Choosing suitable style helps to maintain good self-image. From the study conducted, it seem that female respondents are willing to spend more time reading magazine to know more about the fashion trend.

6.0 Conclusion This research has investigated on influence of brand loyalty towards sportswear brands. Primary data were collected by distributing questionnaires to 30 respondents in Sunway Pyramid Shopping Mall, Subang Jaya. As mentioned earlier in the introduction, the purpose of this study was to investigate how the respondents are influenced by factors of brand loyalty towards sportswear brands in Malaysia.

The following conclusions can be drawn from the study. To begin with, this study has shown that brand name is the number one factor which influenced consumers the most on brand loyalty on sportswear because early twenties has the highest interest in branded clothing. They are also the big spenders in the sporting goods market. They are in the period of expressing individuality and beauty and wear up-to-date and trendy apparel. In addition, the consumers considered the style as the second important factor before purchasing because

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good looking and self-image are very important in todays world. Lastly, product quality is the least important factor in this research because brand name reputation leads to good quality belief.

The results of this study indicate that brand name, style and product quality are the most important factors that will influence early twenties choices when purchasing sportswear. However, these findings only focus more on the early twenties consumer without considering different ethnic group in Malaysia. The same study needs to be conducted with specific ethnic group to see if there are any similarities with the factors that will influence the relationship between the three factors and brand loyalty on sportswear in Malaysia.

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References Abraham, M. L. and Littrell, M. A.. (1995). Consumers Conceptualization of Apparel Attributes, Clothing and Textile Research Journal, 13, 65-74.

Bloemer, J. M. M. and Kasper, H. D. P. (1995). The Complex Relationship between Consumer Satisfaction and Brand Loyalty. Journal of Economic Psychology, 16, 311329

Brandchannel.com (2006). Retrieved from: http://www.brandchannel.com, Accessed 17 August 2011.

Cadogan, J. W. and Foster, B. D.. (2000). Relationship Selling and Customer Loyalty: An Empirical Investigation, Marketing Intelligence and Planning, 18, 185-199.

Chaudhuri, A. and Holbrook, M. B.. (2001). The Chain of Effects from Brand Trust and \Brand Effect to Brand Performance: The Role of Brand Loyalty, Journal of Marketing, 65, 81-93.

Collection Daily, S.y. 2010. Retrieved from: http://www.chinadaily.com.cn/life/201003/06/content_9547402.htm

Cohen, J. (1988) Statistical Power Analysis for the Behavioral Science (2nd ed.). Lawrence Erlbaums Association: New Jersey.

Frings, G.S. (2005) Fashion: From Concept to Consumer (8th Ed.). Pearson/Prentice Hall:

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New Jersey.

Sheth, Jagdish N., U.o.I. 2009. Retrieved from: http://www.acrwebsite.org/volumes/display.asp?id=5729

Keller, K. L. (2003) Strategic Brand Management: Building, Measuring and Managing Brand Equity. Prentice Hall: New Jersey.

Kust, M.. 2008. Retrieved from: http://www.managesmarter.com/msg/content_display /marketing/e3if1dace1ad88d94c41 46ff121c1c3fffe

Lau, M. M., Chang, M. S., Moon, K. and Liu, W. S. (2006) The Brand Loyalty of Sportswear in Hong Kong, Journal of Textile and Apparel, Technology and Management, 5, 1-13.

Russell, R. S. and Taylor, B. W. (2006) Operation Management: Quality and Competitiveness in a Global Environment (5th Ed.). John Wiley & Sons, Inc.: River Street.

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Appendix

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Name: NG KOK CHUAN Student No: 0803H66891 Research Topic: Influence of Brand Loyalty on Consumer Sportswear in Malaysia Research Purpose: To find out what factor actually influence brand loyalty in Sportswear. This research is for academic purpose only. All responses are strictly confidential and for research purpose only. Section A: Demographic 1. Gender Male Female 2. Races Malay Chinese Indian Other (Specify:_____________) 3. Age Age 16-19 20-23 24 and above 4. Occupation Students Private Sector Government Sector Self-employed

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5. Education Level PhD Master Degree Diploma SPM/STPM 6. Income Less than RM1000 RM1001-RM2000 RM2000-RM3000 RM3001-RM4000 RM4000 and above Section B: Brand Loyalty Please answer all the questions. 7. Have you purchased any sportswear during the past year? Yes No 8. Are you especially loyal to a brand of sportswear? Yes No 9. Which brand of sportswear in the following list do you prefer most? a) Nike b) Reebok c) Fila d) Adidas 10. Please list the brands of 3 items of sportswear you purchased lately. __________________________________________________________________________

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Section C: Factors of influencing Brand Loyalty Please tick to indicate your level of agreement with the statements that best describe your feelings towards your favourite brand. (Strongly Disagree = 1, Disagree = 2, Agree = 3, Strongly Disagree = 4) 11. Brand Name Strongly Disagree The brand is reputable. The prestigious brand name and image attract me to purchase from the brand. The brand name is selected regardless of price. The brand reflects my own personality. 12. Product Quality Strongly Disagree The size measurement of the sportswear fits me very much. The materials used by the brand of sportswear are comfortable. The brand has sufficient colour choice of sportswear I need. Sportswear of the brand has good functional quality (e.g. breathable, waterproof, odourresistant, light weight). Sportswear of brand is durable. 13. Style Strongly Disagree The brand of sportswear provides wide variety of styles for me to choose. Styles of the brand of sportswear are suitable for me. Styles of the brand of sportswear have distinctive features. Styles of the brand of sportswear are trendy and fashionable. Thank you!! Have a great day. Disagree Agree Strongly Agree Disagree Agree Strongly Agree Disagree Agree Strongly Agree

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