Influence of Brand Loyalty on Consumer Sportswear in Malaysia

Name: NG KOK CHUAN (JOHN)Student No.: 0803H66891Subject: ENGLISH 102Assignment: Final Research PaperLecturer: MISS PREMA

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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

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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

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Content

S.No Page No.1.0 Introduction 1

1.1 Background of the research 1-2

1.2 Purpose of Research 2

1.3 Research question and Research Hypotheses 3

2.0 Literature review 3

2.1 Brand Loyalty 3

2.2 Brand Name 4

2.3 Product Quality 4-5

2.4 Style 5

2.5 Research Framework 5

3.0 3.0 Research Methodology 6

3.1 3.1 Quantitative Research 6

4.0 Findings 6-10

5.0 Analysis 10-11

10.0 Conclusion 11-12

11.0 References 13-14

12.0 Appendix -

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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 consumer’s 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 consumer’s 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

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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.

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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. What are the factors influencing brand loyalty in sport wear industry?

2. To what extent is there a positive relationship between the three factors—brand

name, product quality and style—and 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.

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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 brand’s 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 brand’s 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

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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

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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

selected—Sunway Pyramid—to 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.

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Brand Loyalty

Brand Name Product Quality Style

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.

Table 1: Profile of the Sample

Demographic Factor Valid no. Percentage (%)

Gender Male: 15

Female: 15

50.0

50.0

Races Malay: 15

Chinese: 9

Indian: 8

50.0

34.0

27.0

Age 16-19: 8

20-23: 16

24 and above: 6

26.7

53.3

20.0

Occupation Students: 20

Private Sector: 4

Government Sector: 4

Self-employed: 1

66.6

13.3

13.3

3.3

Education Level PhD: 1

Master: 3

3.3

10.0

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Degree: 17

Diploma: 6

SPM/SPTM: 3

56.6

20.0

10.0

Income: Less than RM1000: 12

RM1001-RM2000: 10

RM2001-RM3000: 2

RM3001-RM4000: 4

RM4000 and above: 2

40.0

33.33

6.66

13.33

6.66

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 Cronbach’s 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 Alpha

Brand Name 0.6628

Product Quality 0.6472

Style 0.7882

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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.

Table 3: Ranking Factor of Brand Loyalty

Factor of Brand Loyalty Rank MeanBrand NameQ1. The brand is reputable.Q2. The prestigious brand name and image attract me topurchase from the brand.Q3. The brand name is selected regardless of price.Q4.The brand reflects my own personality.

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Mean Average:

3.704.01

3.723.853.82

StyleQ1. The brand of sportswear provides wide variety ofstyles for me to choose.Q2. Styles of the brand of sportswear are suitable for me.Q3. Styles of the brand of sportswear have distinctivefeatures.Q4. Styles of the brand of sportswear are trendy andfashionable.

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Mean Average:

3.76

3.843.71

3.81

3.78Product QualityQ1. 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.

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Mean Average:

3.733.853.443.42

3.61

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

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there a positive relationship between the three factors—brand name, product quality and style

—and 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

Malaysia’s youngsters prefer brand name, style and product quality as factors of brand

loyalty.

Table 4: Income Level versus Factors of Brand Loyalty

Brand Name Product Quality Style

Sig. .000 .009 .038

Mean: < RM 1000 18.5000 17.2500 14.0196

1001- 2000 14.8750 17.0000 13.5000

2001- 3000 13.3000 15.0980 11.7896

3001-4000 14.8627 15.5500 12.5500

>RM 4000 13.3000 15.0980 11.7896

5.0 Analysis

Table 6: Significance of brand loyalty factors with brand loyalty

Variables Pearson Correlation Sig. (2-tailed)*

Brand Name .562 .000

Product Quality .302 .002

Style .331 .001

*Significant at 0.01 level

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

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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 Cohen’s (1988) guidelines. This

finding indicates that product quality is significant in the consumer decision making process.

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

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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

good looking and self-image are very important in today’s 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, 311-

329

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,

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65, 81-93.

Collection Daily, S.y. 2010. Retrieved from:

http://www.chinadaily.com.cn/life/2010-03/06/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:

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

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Street.

Appendix

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Name: NG KOK CHUANStudent No: 0803H66891Research Topic: Influence of Brand Loyalty on Consumer Sportswear in MalaysiaResearch 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

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Students

Private Sector

Government Sector

Self-employed

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 LoyaltyPlease 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

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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.

__________________________________________________________________________

Section C: Factors of influencing Brand LoyaltyPlease 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

Disagree AgreeStrongly Agree

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

Disagree AgreeStrongly Agree

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, odour-resistant, light weight).

Sportswear of brand is durable.

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13. Style

 Strongly Disagree

Disagree AgreeStrongly Agree

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.

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