Jones Christie l 200808 Ms

8/13/2019 Jones Christie l 200808 Ms

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THE INFLUENCE OF ONLINE APPAREL SHOPPING INTENTION AND BRAND

LOYALTY FOR MULTI-CHANNEL RETAILERS

by

CHRISTIE LYNN JONES

(Under the Direction of Soyoung Kim)

ABSTRACT

The purpose of this study was to determine the effect that a consumers attitude toward a

retail brand and attitude toward the brands website have on their online apparel shopping

intention and online brand loyalty. Six influencing factors including brand satisfaction, offline

brand patronage, brand trust, clothing involvement, attitude toward the Internet, and perceptions

of the apparel brands website were identified and tested. A total of 200 surveys were completed

by female students ages 18 to 25 who attend the University of Georgia. Factor analysis was used

to examine the multi-dimensionality of the scales, Pearson correlation analyses were used to test

the relationships among the variables, and regression analyses were used to test the hypotheses.

Brand trust and the perceptions of an apparel brands website both had a significant relationship

with online apparel shopping intention, which in turn strongly influenced online brand loyalty.

INDEX WORDS: Brand Satisfaction, Offline Brand Patronage, Brand Trust, FashionClothing Involvement, Attitude toward the Internet, Website Perceptions,Online Apparel Shopping Intention, Online Brand Loyalty


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by

CHRISTIE LYNN JONES

B.A., The University of Florida, 2004

A Thesis Submitted to the Graduate Faculty of The University of Georgia in Partial Fulfillment

of the Requirements for the Degree

MASTER OF SCIENCE

ATHENS, GEORGIA

2008


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2008

Christie Lynn Jones

All Rights Reserved


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by

CHRISTIE LYNN JONES

Major Professor: Soyoung Kim

Committee: Yoo-Kyoung Seock Brenda Cude

Electronic Version Approved:

Maureen GrassoDean of the Graduate SchoolThe University of GeorgiaAugust 2008


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ACKNOWLEDGEMENTS

I would like to express my gratitude to Dr. Soyoung Kim for all of her assistance,

guidance, and understanding throughout the process of preparing this thesis. I would also like to

thank my committee members, Dr. Yoo-Kyoung Seock and Dr. Brenda Cude, for their patience

and contributions.


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TABLE OF CONTENTS

Page

ACKNOWLEDGEMENTS........................................................................................................... iv

LIST OF TABLES........................................................................................................................ vii

LIST OF FIGURES ..................................................................................................................... viii

CHAPTER

1 INTRODUCTION .........................................................................................................1

The Online Environment...........................................................................................1

Purpose ......................................................................................................................3

Objectives..................................................................................................................6

Retailers as Brands ....................................................................................................6

Conceptual Definitions..............................................................................................7

2 THEORETICAL FRAMEWORK.................................................................................9

3 LITERATURE REVIEW ............................................................................................17

Online Websites and Activity..................................................................................17

The E-Business Model ............................................................................................18

Brand Loyalty..........................................................................................................19

Brand Satisfaction ...................................................................................................22

Offline Brand Patronage..........................................................................................24

Brand Trust..............................................................................................................25

Clothing Involvement..............................................................................................27


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Attitude toward the Internet ....................................................................................28

Perception of the Apparel Brands Website............................................................31

Online Apparel Shopping Intention ........................................................................33

4 METHODOLOGY ......................................................................................................35

Sample.....................................................................................................................35

Description of Survey..............................................................................................35

Statistical Analyses..................................................................................................40

5 RESULTS ....................................................................................................................41

Participant Demographics .......................................................................................41

Factor Analyses .......................................................................................................43

Pearsons Correlation Analyses...............................................................................51

Hypotheses Testing .................................................................................................54

6 DISCUSSIONS AND CONCLUSIONS.....................................................................60

Further Study...........................................................................................................66

Limitations...............................................................................................................66

Summary .................................................................................................................67

REFERENCES ..............................................................................................................................69

APPENDICES

A Human Subjects Approval ...........................................................................................74

B Consent Form...............................................................................................................76

C Apparel Multi-channel Shopping Survey ....................................................................78


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LIST OF TABLES

Page

Table 1: Demographic Characteristics of Respondents.................................................................42

Table 2: Emerged Factors of Attitude toward the Internet ............................................................44

Table 3: Factor Loadings across all Factors of Attitude toward the Internet.................................45

Table 4: Emerged Factors of Perception of the Apparel Brands Website....................................46

Table 5: Factor Loadings across all Factors of Perceptions of the Apparel Brands Website.......47

Table 6: Factor Analyses of Uni-Dimensional Constructs ............................................................48

Table 7: Means and Standard Deviations for the Constructs.........................................................51

Table 8: Relationships among the Variables .................................................................................53

Table 9: Multiple Regression Analysis for Hypothesis 1a and Hypothesis 2................................54

Table 10: Regression Analysis for Hypothesis 1b.........................................................................54

Table 11.1: Multiple Regression Analysis for Hypothesis 4 and Hypothesis 5 ............................56



Table 12: Multiple Regression Analysis for Hypothesis 3 and Hypothesis 6 ...............................58

Table 13: Regression Analysis for Hypothesis 7...........................................................................59


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LIST OF FIGURES

Page

Figure 1: Antecedents to Trust in a Brand Model............................................................................9

Figure 2: Antecedents to Trust in a Brand Revised Model............................................................10

Figure 3: Formation of Brand Trust and Commitment on the Web ..............................................11

Figure 4: Consumer Involvement Determinants of Brand Loyalty ...............................................12

Figure 5: Antecedents of Customer Satisfaction for Cyber Shopping...........................................12

Figure 6: Determinants of Consumer Attitudes toward Internet Shopping ...................................13

Figure 7: Loiaconos WebQual Model ......................................................................................14

Figure 8: Proposed Model..............................................................................................................15


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Chapter 1

Introduction

The rise of the Internet has created a new way of communicating and interacting with

other people. Since the early 1990s, the Internet has truly revolutionized many aspects of

modern life, including the way in which we conduct business. In order to capitalize on the

available consumer market, traditional brick-and-mortar retailers have expanded their business

models to include online retailing.

The Online Environment

Most traditional brick-and-mortar retailers who have expanded their business online

participate in a business-to-consumer (B2C) e-commerce model (Turban, King, Lee, &

Viehland, 2004). This means that the retailers are selling products directly to individual

shoppers online. The other major e-commerce model is business-to-business (B2B). This means

that businesses make online transactions with other businesses, particularly between retailers or

wholesalers and suppliers. There are several sub-categories of e-commerce business models

including business-to-business-to-consumer (B2B2C), consumer-to-business (C2B), and

consumer-to-consumer (C2C), among others. The average online consumer participates in the

B2C model. Retailers are currently exploring ways to incorporate their B2C e-commerce model

into their existing business models. The result is multi-channel retailing.

Multi-channel retailing is a combination of brick-and-mortar stores, Internet storefront

websites, and catalog or mail-order operations. This mixed business model is designed to reach

a broader base of consumers. According to a Shop.org annual survey conducted by


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DoubleClick, in 2004 multi-channel shoppers represented 65% of all consumers (Shop.org,

2006). Businesses have found that to be successful, multi-channels cannot function as separate

entities, but rather must function as a well-integrated, coherent unit. Developing a multi-channel

strategy involves planning and creating an infrastructure to link the channels (Berman & Thelen,

2004). Retailers must facilitate seamless transitions between channels. Some stores, such as

Circuit City, allow for orders to be placed online and picked up at the store. Apparel retailers

such as J.Crew and Coldwater Creek accept merchandise returns to the stores from online and

catalog orders. Convenience for the customer is often a high priority when it comes to

integrating channels.

Online storefronts are not just generating money via the Internet. Forrester Research

estimated that online storefronts influenced more than $125 billion in offline sales (Mulpuru,

Mendelsohn, & Johnson, 2007). The Internet is a valuable tool for consumers to research and

compare products before making the decision to buy. Forsythe and Shi (2003) recognized that

most online consumers actually use the Internet as a means to window shop and gather

information prior to an offline purchase. An estimated 60 million U.S. households use the online

shopping channel (Mulpuru et al.). The Internet offers consumers the convenience of 24 hour-a-

day shopping, the ability to easily compare price, a wide selection of an assortment of products,

and customization of the shopping experience.

In the United States, it is estimated that 650,000 companies of various sizes sell products

and services online (Mulpuru et al.,2007). In 2007, Internet retailing accounted for

approximately 6.6% of total U.S. retail sales for a value of nearly $164 billion. Within the next

five years that percentage is expected to rise to 10% of retailing revenue being generated by

Internet sales (Mulpuru et al.).


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Apparel has surprisingly been a fast growing segment of e-commerce. Apparel once was

considered the least likely product to be sold online, considering consumers cannot physically

evaluate the garment online. Online retailers traditionally were more successful selling

standardized products such as computer software, books, and airline tickets. Despite the

skepticism, apparel sales continue to rise. Apparel sales via the Internet hit $1 billion in 1999,

which was double the value of sales in 1998 (Ebenkamp, 2000). According to one report, online

apparel sales reached $18.3 billion in 2006 and replaced computer hardware/software as the

largest online retail category (eMarketer, 2007). Despite this growth, the online apparel segment

will face continual business challenges due to the virtual medium.

Purpose

The purpose of this study was to examine the effects of consumer attitudes toward a retail

brand and its website on consumers intentions to purchase apparel online. This study also

looked at online apparel shopping intention and its relationship to online brand loyalty. In order

to measure attitudes toward a brand and a website, six independent variables were identified

through the literature review. These six variables were brand satisfaction, offline brand

patronage, brand trust, clothing involvement, attitude toward the Internet, and perception of an

apparel brands website.

The variables were selected and organized based on their potential relationship to online

shopping intention. Through the review of literature each variable was defined and contributing

factors were determined. Brand satisfaction and offline brand patronage were hypothesized to

directly relate to brand trust. This is because a customers experience and satisfaction in dealing

with a brand, along with their offline experience with and patronage of that retailer, was

expected to affect the level of trust the consumer has for the brand. The basis of brand trust and


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its contributing components for this study was influenced by Lau and Lees (1999) research on

consumers trust in a brand. Brand trust was, in turn, expected to affect online shopping

intention (Grabner-Kraeuter, 2002; Ha, 2004) because a consumer must have a positive level of

trust in the brand before he or she would choose to shop online.

This study specifically examined the online apparel retail category; thus clothing

involvement was selected as a determinant of a consumers perception of an apparel website.

Goldsmith and Flynn (2005) found that shoppers who were more involved with fashion were

more likely to purchase it through remote channels. Attitude toward the Internet was also chosen

as an influence on a consumers website perception. Liao and Cheung (2001) researched the

major determinants of consumer attitudes and Internet shopping. Factors identified in their study

were adapted to the current study to create the attitude toward the Internet variable. If a

consumer is comfortable using the Internet and feels it is a secure way to shop, he or she may

have a more favorable attitude toward a retail brands website. Online shopping intention may

thus be positively or negatively influenced by a consumers perception of an apparel brands

website.

In an attempt to better understand how these factors influence online shopping intention,

they were divided into two attitudinal categories: attitude toward the brand (through brand

satisfaction, offline brand patronage and brand trust) and attitude toward the website (through

clothing involvement, attitude toward the Internet, and perception of an apparel brands website).

This conceptual division was a way to organize the independent variables and provide structure

to the theoretical model. The idea that attitude influences behavior and intention is supported by

Ajzen and Fishbeins (1980) fundamental Theory of Reasoned Action (TRA). Previous studies

have incorporated this theory into their hypotheses about consumer behavior (Kim, Kim, &


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Kumar, 2003; Shen, Dickson, Lennon, Montalto, & Zhang, 2003). While this study is not

looking to test, reproduce, or revise the TRA, the basic principles on which the theory is based

are applicable to this study as well.

There have been countless academic studies conducted on brand loyalty. There is also a

great deal of literature available about brand loyalty in the context of Internet retailing. So much

has been written in this area is because it is a very current and pertinent topic for both retailers

and consumers. Computer communication has opened up a world of electronic commerce that

has forever altered the business model. Researchers should continue to do studies in this area as

long as they are considered relevant and can offer managerial and academic implications.

This particular study is interested in looking specifically at shopping intention and brand

loyalty among online apparel consumers. Part of this study will be to determine if the findings

from brand loyalty studies conducted in offline settings are applicable to the online environment.

Also, this study hopes to add to existing literature by specifically examining apparel in the online

context. The majority of previous studies about brand loyalty and Internet shopping have been

done with more standardized products. As sales in the apparel category have grown in recent

years, retailers are looking to understand the buyer behavior of the multi-channel apparel

consumer.

The nature of online shopping is of particular interest to apparel merchandisers. They

have had to develop business strategies to market and sell a traditionally high touch (Levin,

Levin, & Heath, 2003) category of merchandise through a remote, electronic medium.

Examining how consumers online shopping intention for apparel relates to brand loyalty could

be of great benefit to retailers because loyal customers are less price-sensitive, spend more

money with the company, and pass on positive word-of-mouth (Dowling & Uncles, 1997).


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Retailers as Brands

This particular study focused on an apparel retailer as a brand. A retailer simply sells

goods to a consumer. A brand encompasses much more than just the sale of goods. A brand is

the consumers idea of a store or product and everything that the idea entails (Blackston, 1992).

A brand is able to incorporate a companys image and philosophy with their product. A

consumer associates certain attributes with a brand, such as equity, attitude, and affect

(Blackston; Chadhuri & Holbrook, 2001). A brand allows for a more personal relationship with

a consumer, which in turn has the potential to lead to loyalty toward the brand. This study

looked at online and offline consumer behavior and attitudes, so the retailers selected for the

study are actually multi-channel brands. By defining the retailers studied as brands, this research

was able to focus on the consumer/brand relationship rather than just purchasing behavior.

Objectives

The overall objective of this research study is to examine what influences shopping

intention and brand loyalty in online apparel shoppers for multi-channel retailers. Two

attitudinal categories, the attitude toward the brand and the attitude toward the brands website,

were used to determine online shopping intention.

The first objective of this study was to examine the relationship between a consumers

attitude toward the brand and the intention to shop online for apparel. The second objective of

this study was to examine the relationship between a consumers attitude toward the brands

website and the intention to shop online for apparel. Finally, the third objective of this study was

to investigate the relationship between a consumers intention to shop online for apparel and the

consumers brand loyalty.


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Conceptual Definitions

Multi-Channel Retailing refers to a business structure that is a combination of brick-and-mortar

stores, Internet storefront websites, and catalog or mail-order operations.

Attitude toward the Internet refers to a consumers evaluation of a combination of previous

Internet experience, perceived security while shopping on the Internet, level of general computer

knowledge, and level of comfort with new technology.

Behavioral Loyalty is defined as the repeat buying behavior of the consumer and is categorized

as either intentional or spuriousloyalty (Chaudhuri & Holbrook, 2001; Day, 1969; Gommans,

Krishnan, & Scheffold, 2001).

Brand Consistencyrefers to a brand-name concept or image being viewed similarly across

extensions [or channels] (Park, Milberg, & Lawson, 1991).

Brand Experience refers to a consumers past encounters with a brand, particularly in the area

of usage (Lau & Lee, 1999).

Brand Loyaltyis a deeply held commitment to rebuy or repatronize a preferred product or

service consistently in the future, despite situational influences and marketing efforts having the

potential to cause switching behavior (Oliver, 1997, p. 392). This behavior is a function of

psychological processes including cognitive, affective, and conative (Dick & Basu, 1994;

Jacoby, 1971; Jensen & Hansen, 2006; Oliver, 1997).

Brand Predictability refers to when a consumer can accurately anticipate a consistent level of

product quality or service (Lau & Lee, 1999).

Brand Reputation is defined as the commonly held opinion of others that the brand is good or

reliable (Lau & Lee, 1999).


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Brand Satisfaction is defined as the outcome of the subjective evaluation that the chosen

alternative brand meets or exceeds expectations (Bloemer & Kasper, 1995; Lau & Lee, 1999).

Brand Trustis the relationship between the confident expectations of the consumer and the

resulting responsibility of the brand or retailer (Chaudhuri & Holbrook, 2001; Lau & Lee, 1999).

Customer Satisfaction refers to the consumers fulfillment response. It is a judgment that a

product or service feature, or the product or service itself, provided (or is providing) a

pleasurable level of consumption-related fulfillment, including levels of under- or

overfulfillment (Oliver, 1997, p.13).

Fashion Clothing Involvement is defined as the extent to which the consumer views fashion

clothing as a central part of their life or a meaningful and engaging activity in their life (OCass,

2004).

Intention toward Online Shopping refers to the level of a consumers future intention to make

an apparel purchase on the Internet.

Website Perception refers to how a consumer perceives a combination of available product

information, ease of navigation, interactivity and entertainment, and design aesthetics related to

an apparel brands website.


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Chapter 2

Theoretical Framework

The purpose of this study is to examine the effects of consumer attitudes toward a retail

brand and its website on consumers intentions to purchase apparel online. The study also looks

at online apparel shopping intention and its connection to online brand loyalty. Six independent

variables were chosen to examine these relationships. These variables were selected and a model

was created after studying previously published literature on the subject of brand loyalty,

shopping intentions, and Internet retailing.

Several models from various researchers contributed to the theoretical model proposed in

this study. Research by Lau and Lee (1999) on the antecedents to trust in a brand was one of the

most important influences on this study.

Figure 1. Antecedents to Trust in a Brand Model. Source: Lau & Lee, 1999

Brand Characteristics

Brand Reputation Brand Predictability

Brand Competence

Company Characteristics

Trust in Company

Company Reputation

Company Perceived Motives

Company Integrity

Consumer-Brand Characteristics

Similarity BetweenConsumer Self-Concept &Brand Personality

Brand Liking

Brand Experience

Brand Satisfaction

Peer Support

Trust in a Brand Brand Loyalty


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Lau and Lee proposed that there were three sets of factors that led to brand trust (see

Figure 1). Of these factors, two brand characteristics, brand predictability and brand reputation,

were used in the proposed model. Also, two consumer-brand characteristics, brand satisfaction

and brand experience, were used.

All of the constructs in Figure 1 were tested. Lau and Lee (1999) created a revised model

(see Figure 2) by using regression analyses to determine which constructs were most significant

in explaining trust in a brand.

Figure 2. Antecedents to Trust in a Brand Revised Model. Source: Lau & Lee, 1999

Of the five most significant determinants of brand trust (see Figure 2), brand

predictability and brand reputation were used in the current study. Lau and Lee (1999) focused

on these two characteristics as antecedents to brand trust. The current study uses them as factors

that compose brand trust rather than precede it. Through the review of literature, brand

experience and brand satisfaction (customer satisfaction) were shown to be antecedents to

predictability and reputation. Predictability is determined through repeated experiences with a

brand or product. A reputation is based on customer satisfaction (or dissatisfaction) with a brand

or product.

Ha (2004) studied factors specifically affecting brand trust and commitment on the

Internet (Figure 3). Word-of-mouth, experience, and brand name (reputation) are all considered

contributing factors or parts of brand trust in this studys proposed model. Privacy, security, and

information fall under the attitude toward the Internet and website perceptions variables. Rather

Brand PredictabilityBrand Liking

Brand CompetenceBrand ReputationTrust in the Company

Trust in a Brand Brand Loyalty


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than directly affecting brand trust, as Ha hypothesized, the proposed model keeps the web-

related factors grouped together in a branch expressly associated with the Internet.

Figure 3. Formation of Brand Trust and Commitment on the Web. Source: Ha, 2004

Shang, Chen, and Liao (2006) studied the consumers participation in virtual

communities on a retailers website and its effect on brand loyalty. According to their model

(Figure 4), involvement (both cognitive and affective) was proposed to influence both

participation and brand loyalty. The term involvementin Shang et al.s study referred to product

involvement whileparticipationreferred to taking part in the online community. The degree of

involvement in a product was modified to show the degree of involvement with clothing in the

current study. Involvement encompassed both the cognitive and affective aspects. Cognitive

involvement is caused by a utilitarian motive, or concern with aspects like cost, quality, and

service. Affective involvement is a value-expressive motive in which the individual desires to

enhance self-esteem or self-conception (Park & Young, 1983). Cognitive involvement is a

reasoned approach to a product or brand while affective involvement is feelings toward the

product or brand. Few existing studies make the link between fashion clothing involvement and

online brand loyalty.

SecurityPrivacy

Brand Name

Word-of-Mouth

Experience Information

BrandTrust

BrandCommitment


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Figure 4. Consumer Involvement Determinants of Brand Loyalty. Source: Shang, Chen, & Liao,2006

Ho and Wu (1999) performed a study examining the antecedents of customer satisfaction

associated with the cyber shopping store (CSS) on the Internet. The current study examined

customer satisfaction with the brand rather than with the CSS. However, the variables in Ho and

Wus study that pertain to the Internet (Figure 5) correspond to the factors of website perception

used in the current study. Information characteristics, homepage presentation (design aesthetics),

product characteristics, and technological characteristics (ease of navigation) all contribute to an

online shoppers perception of a retailers website.

Figure 5. Antecedents of Customer Satisfaction for Cyber Shopping. Source: Ho & Wu, 1999

Logistical

Support

TechnologicalCharacteristics

InformationCharacteristics

ProductCharacteristics

HomepagePresentation

CustomerSatisfaction

Trust PerceivedAttitude

Involvement

CognitiveAffective

Participation

LurkingPosting

Loyalty


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Liao and Cheung (2001) researched the major determinants of consumer attitudes and

Internet shopping. Among those, transactions security, shopping experience (prior Internet

experience), and IT education and Internet usage (computer knowledge and level of comfort with

technology) were adapted for the attitude toward the Internet factor. Because no model was

provided in Liao and Cheungs study, the researcher created one to demonstrate the variables

studied relationships (Figure 6).

Figure 6. Determinants of Consumer Attitudes toward Internet Shopping. Source: Liao &Cheung, 2001

In 2000, Loiacono developed a scale to measure 12 dimensions of website quality.

Portions of the WebQual scale were used in the current study to measure the information

quality and fit-to-task, interaction, design, intuitiveness, visual appeal, and innovativeness of a

website. Because a model was not provided in Loiaconos study, the researcher developed one

(Figure 7).

Initial Willingness to

Shop on the Internet

ProductsTransactions

Security

Retail Price

Service

Quality of

Vendors

IT EducationInternet Usage

Consumer

Attitudes


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Figure 7. Source: Loiaconos WebQual Model, 2000

In the model developed for this study (Figure 8), variables were categorized into two

branches:Attitude toward the BrandandAttitude toward the Brands Website. It was proposed

that an attitude toward the brand begins with brand satisfaction. A consumers positive or

negative evaluation of a brand will have an effect on brand trust and offline brand patronage. It

was hypothesized that a consumers positive evaluation of brand satisfaction will lead both

toward building brand trust and offline brand patronage. Offline brand patronage, in turn, was

proposed to have a direct effect on brand trust. If a consumer regularly patronizes a retailer in

traditional shopping settings, s/he can be expected to develop trust in that brand. Brand trust has

been studied extensively and has been shown to affect online shopping intention (Grabner-

Kraeuter, 2002; Ha, 2004). It was therefore proposed that brand trust has an effect on the online

shopping intention of a consumer.

The attitude toward the brands website branch of the model was broken down into three

variables. The first, clothing involvement, measured a consumers level of involvement with

apparel. Shoppers who are more involved and concerned with fashion are more likely to

purchase it through remote channels (Goldsmith & Flynn, 2005). It was proposed that people

who are highly involved with clothing will have a more positive perception of a brands website.

Information

Quality & Fit-to-

Task

InteractionTrust

Response Time

Design

IntuitivenessVisual Appeal Innovativeness

Flow-Emotional

Appeal

Integrated

Communication

Business Process

Viable Substitute

Perceived Website

Quality


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The overall attitude toward the Internet was also proposed to have a direct effect on perception of

the brands website. If a consumer is comfortable with and knowledgeable about the World

Wide Web, he or she is more likely to perceive a brands website favorably. Ones perception of

a website, whether positive or negative, will influence ones attitude toward it.

Figure 8. Proposed Model

In an attempt to understand how attitudes influence behavior, Ajzen and Fishbeins

(1980) Theory of Reasoned Action was consulted. An attitude toward a behavior is either a

positive or negative evaluation of that behavior combined with the perceived consequences of

performing that behavior (Kim & Park, 2005). Attitude toward a brand is therefore a

combination of an individuals positive or negative evaluation of the brand with their perceived

consequences for purchasing or using the brand. The positive or negative evaluation of the brand

comes from a consumers level of satisfaction and their offline experiences with the brand. A

Brand Satisfactionbrand consistency

customer satisfaction

Offline Brand Patronage

Clothing Involvementlevel of fashion involvement

Attitude Towards

the Internetcomputer knowledge

level of comfort with technologysecurity

rior internet ex erience

Brand Trustreputation

brand predictability

Perceptions of the

Brands Websiteproduct information

ease of navigationinteractivity & entertainment

design aesthetics

Brand Loyalty

in Online

Apparel Shoppers

Online ApparelShopping Intention

Attitude toward the Brand

Attitude toward the Brands Website


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consumers perceived consequences of purchasing or using the brand stem from their level of

trust for the brand. For example, a high level of brand trust results in a lower perception of

negative consequences.

The same rationale was employed to develop the attitude toward the brands website

branch of the model. A positive or negative evaluation of the apparel brands website is from a

combination of the consumers involvement with and knowledge of clothing with their overall

attitude toward the Internet. The perceived consequences of using an apparel website are from a

consumers positive or negative perception of the website. If the consumer does not like a

website, based on any of the contributing factors, s/he will perceive negative consequences of

using the website. This observation would result in a negative attitude toward the apparel

website.

A consumers intention or decision to purchase an apparel brand online has the potential

to lead to brand loyalty. If the consumer has a positive attitude toward both the brand and the

brands website and a purchase is viewed as successful, s/he is likely to repurchase that brand in

the future. This brand loyalty could affect loyalty toward the retailer in all shopping channels.


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Chapter 3

Literature Review

Through the analysis of existing literature and research findings, a model was developed

to study the factors affecting online apparel shopping intention and its influence on brand

loyalty. An overview of Internet retailing and brand loyalty, both in traditional retail settings and

online, are provided in the following sections. This will be succeeded by a discussion of the six

factors that influence attitude toward a brand and attitude toward an apparel brands website.

Online Websites and Activity

The Internet is made up of a mix of different types of websites. Some are classified as

portals or search engines. Portals are websites that lead to other destinations within the World

Wide Web. Some websites are run by organizations such as non-profit groups or by local or

federal governments. Other sites are for private use, such as personal web pages, blogs, or chat

rooms. Business websites are often considered destination websites. Destination websites can

be divided into three main types based upon the method of revenue generation (Turban, King,

Lee, & Viehland, 2004). The first are websites that contain content free to the user and derive

revenue by selling advertising or sponsored content. The second type is sites that contain

password-protected content that is accessed by the user through the payment of fees or

subscriptions. Lastly, there are online storefronts that provide products, information, take orders

and payment, and arrange for delivery. This study will focus on the online storefronts of apparel

retailers (eg., bananarepublic.com, jcrew.com, and anntaylor.com). These particular sites are

also considered transactional websites, because they sell a particular product directly to the


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consumer (Turban et al.). In addition to product information and interaction, these sites provide

features such as a shopping cart, shipping calculator, and the ability to accept payment in order to

complete the business transaction (Turban et al.).

There are two types of online activity: task-oriented and experiential (Turban et al.,

2004). Task-oriented Internet users have a particular purpose for visiting a website, be it for

work, to search for information, or to purchase a product. Experiential users explore or surf the

Internet for fun, recreation, or non-goal-directed searches. Consumers who shop online may find

they exhibit a combination of the two types of activities. What started out as an experiential

activity could turn into a task-oriented purchase, or vice versa.

The E-Business Model

Although the World Wide Web was started and popularized in the 1990s, most

businesses have only been working through this medium for fifteen years or less. For example,

the popular e-retailer Amazon.com was launched in 1995 and the Gap, one of the largest apparel

brands, opened its online store in 1997 (Schneider, n.d.; Gap Inc., 2007). The business model

that was in place for traditional brick-and-mortar stores is not relevant to conduct business in

cyberspace. The Internet has become an integrated channel of interaction, merging product

flow with information flow (Holland & Baker, 2001, p. 35). The Internet allows for two-way

communication between businesses and consumers and cannot be approached solely as another

distribution channel. Businesses must capitalize on the new opportunities and capabilities that

the Internet offers.

The modern e-business model for retailers is a complex structure. Turban et al. (2004)

classified Internet retailing business models by the type of distribution channel they participate

in. They organized them into five categories: mail-order retailers that go online, direct marketing


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from manufacturers, pure-play e-tailers (retailers that only sell online), click-and-mortar retailers

(retailers with a combination of traditional and online stores), and online malls (groups of online

stores together). The apparel retailers that this study will encompass are considered click-and-

mortar organizations. This means their primary business is conducted through physical stores

while they also participate in online activities through a transactional website (Turban et al.).

These types of retailers have altered their traditional business practices to include their

supplementary websites. This is a multi-channel approach to the business model.

Brand Loyalty

The concept of loyalty can relate to a brand, a vendor, a service, or a store (Dick & Basu,

1994). The ultimate goal of brand loyalty is to gain a greater market share from repeat purchases

by loyal customers (Chadhuri & Holbrook, 2001). A greater market share in turn leads to higher

profits for the business. By maintaining loyalty among customers, a business can create a

sustainable competitive advantage (Dick & Basu, p. 99).

Brand Loyalty: The Traditional Views

Brand loyalty is a popular topic of study, especially in the consumer behavior and

marketing fields. The concept of loyalty is the relationship between a consumers relative

attitude toward an entity and his or her patronage behavior (Dick & Basu, 1994). Traditionally it

has been divided into two types, behavioral loyalty and attitudinal loyalty (Chaudhuri &

Holbrook, 2001; Day, 1969; Dick & Basu; Gommans, Krishnan, & Scheffold, 2001). Behavioral

loyalty is often defined in terms of the repeat buying behavior of the consumer (Chadhuri &

Holbrook; Gommans et al.). Attitudinal loyalty is generally the more complex type of loyalty. It

is characterized by cognitive, affective, and behavioral intent (Dick & Basu; Gommans et al.).


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Behavioral loyalty was first categorized by Day (1969) as either intentional or spurious

loyalty. Day recognized that consumers who exhibited spurious loyalty lacked attachment to

brand attributes. These buyers have the potential to be easily swayed to switch brands,

especially through the use of marketing strategies such as enhanced visual displays or

promotions. Another aspect of spurious loyalty is that it is a function of time. According to

Days study, the longer buyers are given to evaluate a brand, the more opportunity they have to

switch brands. One of Days solutions to reducing spurious loyalty was to increase brand

identifiability. Day qualified intentional brand loyalty as those consumers who exhibited true

loyalty. Truly loyal shoppers are less impulsive and patronize fewer stores. Another important

characteristic of intentionally loyal shoppers is that they have a great degree of confidence in

their ability to evaluate and choose between brands (Day).

Attitudinal loyalty is described by Chaudhuri and Holbrook (2001) as the degree of

dispositional commitment a consumer has toward a particular brand. This inclination to a brand

is often a result of some unique value the customer associates with that brand.

Brand Loyalty on the Web

While offering a world of new opportunities for businesses, the Internet also poses new

problems. Competition, which is also a problem relevant to traditional retailers, is a major

concern for online retailers. Whereas before a customer had to physically travel to another store,

now the Internet offers a variety of options at the click of a mouse. Consumers have access to a

selection of stores far beyond their local shopping area. The Internet makes comparison

shopping easier since it can be accomplished by simply navigating to another website.

According to a recent study by JupiterResearch, 87% of Internet shoppers visited multiple

websites before making a purchase (Corbin, 2008a). Srinivasan, Anderson, and Ponnalovu


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(2002) argued that it has become more difficult for retailers to retain loyal customers online due

to increased competition and minimal customer switching costs. In traditional retail settings,

switching brands may cost consumers time, effort, and money. In online shopping, the cost to

consumers for switching brands is very low.

One way retailers try to cultivate positive word-of-mouth advertisement for their websites

is by cultivating a social network. In JupiterResearchs study, 51% of shoppers between the ages

of 18 and 24 reported that online communities and social networks have influenced their

purchasing decisions (Corbin, 2008a). This percentage falls as consumers age, but the statistic

still shows that word-of-mouth is an influencing factor in purchasing and brand loyalty. Social

sites have the ability to encourage satisfaction and consumer confidence based on the opinions of

peers.

New consumers are discovering Internet shopping every day, just as the number of retail

websites are growing daily. According to Holland and Baker (2001), retailers are shifting

emphasis from attracting new online customers to retaining existing ones. Obtaining new

customers is costly and difficult relative to cultivating consumer relationships to build loyalty.

Stickiness is a recent term that is specifically related to websites. Stickiness refers to

anything about a website that encourages a visitor to stay longer (Lin, 2007). A sticky website

not only gets visitors to stay longer but also encourages them to frequently return to the site.

Stickiness for an online retailer is associated with repeat purchase behavior and ultimately with

brand loyalty. This notion alludes to Days (1969) idea of spurious loyalty as being a concept of

time. The modern concept for Internet retailers is that if a consumer spends more time visiting a

particular website, he or she will be less likely to travel to a competitors website. Day evaluated

shoppers purchasing behaviors for convenience food products. The results showed that the


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longer a shopper spent searching for and comparing the products on a grocery store shelf, the

more likely s/he was to be persuaded to try a different brand. The conflicting ideas of website

stickiness and Days research show a major difference between traditional and Internet shopping.

In addition, there is a clear difference in consumer behavior among product categories such as a

food product versus apparel.

Internet retailers, like traditional retailers, need to build value-based relationships and

treat loyal shoppers as preferred customers (Pearson, 2006). A mutually beneficial

relationship requires a companys commitment to customer satisfaction and the creation of a

positive shopping experience as well as receiving customer feedback and insights regarding their

experience. By building a brand relationship, retailers cultivate a feeling of attachment for the

consumer (Heath, Brandt, & Nairn, 2006). Blackston (1992) describes this feeling as a complex

of cognitive, affective, and behavioral processes which constitute a relationship (p. 80), which

in this case is between the customer and brand.

Brand Satisfaction

For this study, brand satisfaction is a combination of factors that relate to a consumers

overall view and experience of the brand. Brand satisfaction is composed of customer

satisfaction, through past experience and customer service, and brand consistency.

Lau and Lee (1999) defined brand experience as a consumers past encounters with the

brand. Past experience, whether positive or negative, affects brand patronage and loyalty. A

positive experience means that the consumers expectations were met or exceeded by the brand.

If a consumer has had a positive previous experience with a brand, it likely will in turn lead to

trust in the brand.


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Customer service quality is among many elements that affect a consumers overall brand

experience. Service has been known to strongly influence patronage and loyalty based on the

consumers overall perception of satisfaction. Customer satisfaction is whether a product or

service has met the customers needs and expectations. Satisfied customers are willing to

purchase products or services repeatedly and recommend the companys products or services to

others. Therefore, satisfaction with the company or brand is a clear antecedent of brand trust,

particularly relating to reputation and word-of-mouth.

The way in which consumers view the brand is also an important part of brand

satisfaction. Not only do customers need to have positive experiences with the brand, they need

to have consistent recognition of the brand. One strategy retailers use is offering a consistent

customer experience. Everything from logos to company philosophy must come across to

customers in a consistent manner in every store. The quality of merchandise, level of customer

service, and shopping environment must maintain company standards regardless of the retailers

location. These common characteristics also extend to uniformity in advertising and promotions.

Retailer brand consistency is a very important factor in attracting and maintaining customers.

Brand consistency increases credibility and decreases perceived risk (Erdem, Zhao &

Valenzuela, 2004). In turn, brand consistency can lead to brand predictability. Common

characteristics build retailer brand recognition among customers, and along with positive

shopping experiences, can potentially lead to brand trust and ultimately to brand loyalty.

Based on the supporting factors of customer satisfaction and brand consistency, it was

proposed that:

H1a: Those who have a higher level of brand satisfaction will have a greater level of

trust in the brand.


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In addition to building brand trust through a positive evaluation of brand satisfaction,

brand satisfaction was hypothesized to lead to loyal brand patronage in the offline or traditional

retail setting. Therefore, it was also proposed that:

H1b: Those who have a higher level of brand satisfaction will have a greater level of

offline patronage with a retailer.

Offline Brand Patronage

Brand loyalty and brand patronage are often mistaken for the same concept in academic

literature. Many studies that refer to brand loyalty are actually measuring it based on brand

patronage. Behavioral loyalty is the repeat buying behavior of the consumer (Chaudhuri &

Holbrook, 2001; Day, 1969; Gommans et al., 2001). This purchasing behavior is brand

patronage. Over time a consumers brand patronage can result in brand loyalty.

Behavioral loyalty is easier to achieve in a conventional retail setting. In the traditional

retail setting the business concept is generally product driven and marketer controlled (Gommans

et al., 2001). Consumers have a limited amount of information available to them while shopping

in a store. They have made an investment of time and energy to visit the store. Customer

service is offered through personal interaction with sales associates and the shoppers are

immersed in an environment created by the retailer. The perceived risk of conventional

shopping is often lower than online shopping. Consumers using traditional retail formats have

fewer payment security concerns than consumers purchasing products on the Internet (Kwon &

Lee, 2003). If customers value the service, quality, and environment of a retailer, they will often

return to make more purchases. It is logical to assume that the more a customer patronizes a

retailer, the more trust the customer will have in that brand.


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Offline brand patronage is important to building an online consumer base. Customers

who patronize a store are easy targets for retailers to promote their other channels. If a customer

has had previous positive experiences with a retailer, s/he is more likely to be willing to use a

new shopping channel for the first time. Brand satisfaction can lower a customers perceived

risk and is an antecedent to offline brand patronage. Offline brand patronage in turn affects a

consumers brand trust, which would then influence his or her willingness to use the retailers

online channel. Based on these two assumptions, it was hypothesized that:

H2: Those who have a higher level of offline patronage with a retailer will have a

greater level of trust for that particular brand.

Brand Trust

There is a great deal of literature available about the relationship between brand trust and

brand loyalty. Brand trust is the relationship between the confident expectations of the consumer

and the resulting responsibility of the brand or retailer (Chaudhuri & Holbrook, 2001; Lau &

Lee, 1999). Trust in a brand contributes to behavioral aspect of brand loyalty (Lau & Lee).

Brand trust is considered to be a well thought-out, deliberate consumer intention (Chaudhuri &

Holbrook).

Previous studies have shown that brand trust can be built upon multiple factors. For this

study, the focus will be on brand reputation and brand predictability as they relate to brand trust

and subsequently relate to online shopping intention and brand loyalty.

Lau and Lee (1999) described brand reputation as the commonly held opinion of others

that the brand is good or reliable. The researchers determined that, after usage, if a brand meets

the consumers expectations, then along with a good reputation it will reinforce the consumers

trust in that brand. Brand trust can also lead to favorable word-of-mouth about the brand and an


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increased consumer resistance to competitors strategies (Dick & Basu, 1994; Jensen & Hansen,

2006). A positive personal recommendation has the potential to persuade a customer to switch

brands or even establish his/her own loyalty to that brand. Word-of-mouth involves a degree of

peer influence. In the online setting, consumers are influenced by their peers via customer

reviews and social sites. Corbin (2008a) reported that online word-of-mouth had the greatest

impact on younger consumers, with 51% of shoppers between the ages of 18 and 24 reporting

that social sites have influenced their purchasing decisions. Therefore, word-of-mouth and peer

influence have a great effect on brand reputation.

Brand predictability is when a consumer can accurately anticipate a consistent level of

product quality or service (Lau & Lee, 1999). In the context of apparel, for example, the

customer would be able to predict the quality of the garment and the level of customer service

based on the brand. This study suggests that customer satisfaction affects brand predictability.

Consumer satisfaction from past experiences is directly associated with brand predictability

because predictions of future behavior are based on past performance.

Ha (2004) conducted a study directed specifically at Web-purchase related factors

involved in brand trust. These were security, privacy, brand name, word-of-mouth, experience,

and information. Has findings must be considered in this study as they relate to online

shopping. All six factors are represented; yet in the current study their arrangement and

placement within the overall schematics of this study have been adjusted. Experience and word-

of-mouth fall under the brand satisfaction and brand trust variables, respectively. Factors such as

privacy, security, and information fit under the apparel brand website perception variable which

will be discussed later in the paper.


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Based on the literature, it can be assumed that a strong brand reputation and positive

brand predictability can affect brand trust. If a consumer has trust in a brand, he or she is more

likely to try shopping a different channel for the same retailer brand. Therefore, it was

hypothesized that:

H3: Those who have a higher level of brand trust will have a greater intention to shop

online for apparel.

Clothing Involvement

Jensen and Hansen (2006) differentiated brand loyalty between high-involvement and

low-involvement products. Apparel would be considered a high-involvement product. The

researchers felt that true brand loyalty comes from repeat purchasing of high-involvement

products, whereas repeat purchasing of low-involvement products is simply habitual purchase

behavior. The researchers also felt that consumers seek more variety with low-involvement

products and are more willing to vary their purchase experiences by switching brands.

Tigert, Ring, and King (1976) conducted a popular study on fashion involvement.

Fashion involvement describes a spectrum of fashion behavioral activities (Tigert et al., p. 47).

These activities were defined as: fashion innovativeness, fashion interpersonal communication,

fashion interest, fashion knowledgeability, and fashion awareness in terms of trends. The

researchers found that women were generally more fashion involved than men. Additionally,

Tigert et al. were able to make observations about the fashion-involved consumer. Although

they are a small segment of the population, fashion-involved people tend to be heavy clothing

buyers. Therefore, this group is important to the apparel market. The researchers also found that

fashion-involved consumers are a driving force in the fashion adoption process. These people

influence others with their fashion choices and are a force behind fashion trends.


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Fashion clothing involvement has been defined as the extent to which the consumer

views the focal activity as a central part of their life, a meaningful and engaging activity in their

life (OCass, 2004, p. 870). OCass explains that fashion clothing is cyclical in nature and

draws people into the style of the moment. The intensity and nature of this involvement differs

among consumers.

Amine (1998) found that consumers commitment to a brand is indirectly influenced by

his or her level of product involvement. Therefore, the level of brand loyalty may increase when

a customer is highly involved with a product category. The relationship between product

involvement and multi-channel behavior was supported by the findings of Goldsmith and

Flynns study (2005), which examined the behavior of clothing buyers who purchased in stores,

online, and through catalogs. They determined clothing involvement was the consumers level

of interest in clothing product related information. The researchers found that consumers who

were highly involved in clothing were more likely to make remote purchases of clothing. As

such, consumers involvement in fashion will significantly affect their use of and loyalty toward

an apparel brands website and therefore, it was hypothesized that:

H4: Those who have a higher level of clothing involvement will have a more positive

perception of an apparel brands website.

Attitude toward the Internet

In order to evaluate an Internet apparel shopper, it is necessary to evaluate their overall

attitude toward the Internet. This must be viewed as a different construct than the consumers

attitude toward the brand, although there are many similarities. Internet use, for both shoppers

and non-shoppers, grew rapidly in the late 1990s. Socioeconomic studies showed that early

Internet users were generally male, in their mid-thirties, well-educated, held high-tech or


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professional jobs, and had above average income (Donthu & Garcia, 1999). An earlier study by

Crisp, Jarvenpaa, and Todd (1997) showed contradictable evidence that affluent women with

higher education were likely to develop a favorable attitude and greater intention to shop on the

Internet than their male counterparts. Donthu and Garcias study showed that the average

Internet shopper seeks convenience, is innovative, is impulsive, and seeks more variety. The

2007 Pew Internet and American Life Project reported that among Internet users, men and

women are now almost equally divided at 49% and 51%, respectively (eMarketer.com, 2008).

Their statistics showed the new Internet user is generally aged 30-49, white, has some college

and lives in a suburban area. Comparatively, the majority of Internet shoppers have a higher

education and higher income than nonusers and report having access to a broadband Internet

connection.

The attitude of Internet users tends to improve as technology improves. Computer

hardware and software prices have dropped as technology advances. Competition among

Internet service providers has also pushed down the cost of Internet access. Both of these factors

have made Internet access available to a wider range of economic classes. Higher network

speeds allow for faster connections and relieve the frustration of waiting for Web pages to

download. It is estimated that more than 50% of U.S. households that have access to the Internet

now use broadband connections (Mulpuru et al., 2007). Additionally, cellular phone technology

now allows consumers access to the Internet even while away from their computers.

Liao and Cheungs (2001) research in Singapore showed that computer literacy has

increased, not only in the U.S. but also in countries around the world. Computer technology,

from basic to sophisticated, is more widely available. Computer literacy is emphasized at all

levels of education (Liao & Cheung). The Internet is now a global phenomenon and an


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international marketplace partially due to the fact that more people have access to and understand

how to utilize computers.

Advanced technology has also increased transaction security. Shoppers want to be

confident that their personal and payment information is secure. Companies have invested a

great deal of time and money in improving their websites and protecting their systems from

hackers. Contrary to many Americans perceptions, online credit card transactions are more

secure than in-store transactions (Corbin, 2008b). Many companies address security concerns by

going to a third-party e-mail payment service, such as Google Checkout or PayPal, as an

alternative payment option for customers. Encryption technologies, off-line payment

arrangements, and anti-fraud initiatives are other various methods being utilized by Internet

retailers (Kwon & Lee, 2003). Kwon and Lees study determined that Internet shoppers

concerns were about both monetary loss (stolen credit card numbers) and privacy issues (identity

theft protection). Transaction security leads to lower perceived risk and higher trust in the

retailer by the consumers.

Crisp et al. (1997) suggested that there are four factors that influence attitude and

intention toward Internet shopping. These factors include: product value, shopping experience,

service quality, and risk. All of these factors are often similarly reflected in a consumers

attitude toward a brand. From their research, Crisp et al. found that only product value, shopping

experience, and perceived risk had significant effects on attitude toward Internet shopping. In

the same study the researchers found that product value and service quality were very influential

on a consumers intention to shop on the Internet. For apparel shoppers, Park and Stoel (2005)

determined that consumers may reduce their perceived risk of an apparel purchase by seeking


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additional information about the product. This is due to the shoppers inability to try on, feel, or

otherwise inspect the garment.

Another factor that affects a consumers attitude toward the Internet is prior experience.

Prior experience is defined as a source of information used to shape beliefs is the persons own

direct experience with a similar situation (Crisp et al., 1997, p. 4). A study by Taylor and Todd

(1995) showed that people experienced in using the Internet were able to use the knowledge

accumulated from previous experiences to form their beliefs and attitude toward the Internet. In

other words, both prior experience and level of experience affect attitudes toward using the

Internet.

In addition to past experience, a consumers knowledge also can influence attitude

toward the Internet. As previously mentioned, computer literacy is becoming more widespread

throughout the world. However, it is those people who have a predisposition toward computers

and are comfortable with high-tech equipment that are more likely to use the Internet, especially

for shopping (Crisp et al., 1997). Therefore it was proposed that:

H5: Those who have a more positive attitude toward the Internet will have a more

positive perception of an apparel brands website.

Perception of the Apparel Brands Website

Part of the consumer experience when shopping for clothing is the ability to feel the

fabric, see the color, and try on the product to determine fit. Clothing generally falls into the

high-touch product category (Levin et al., 2003). That means that the customer requires the

ability to touch or experience the product before purchasing. This is in contrast to low-touch

products such as airline tickets or computer software, where the product is usually standardized

and does not require physical inspection.


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Apparel retailers have found creative ways to substitute for the in-store sensory

experiences of consumers when shopping for clothes. One of these substitutions is offering

product information (Park & Stoel, 2005) that describes the fabric, dimensions, and other details.

Another method being used by online apparel retailers is image-interactivity technology, or IIT

(Kim, Fiore, & Lee, 2007). IIT technology varies and program features are becoming more

advanced. Older versions offer a two-dimensional view of a picture that can be manipulated to

change color or views, while the newer IIT programs can provide a three-dimensional virtual

model to showcase clothing (Kim et al.). Consumers are then able to evaluate fit, coordinate

separates, view garments from various angles, and zoom in to see details more clearly. Web

sites using IIT are simulating the product experience shoppers would normally get in a traditional

store. Kim et al. determined that consumers showed higher levels of shopping involvement and

enjoyment and had a more positive perception of online store environments when they were

exposed to a high level of website interactivity.

Finding enjoyment in website visits directly relates to the stickiness of the site. As

previously mentioned, stickiness is a factor that encourages the shopper to stay longer. By

making Internet stores more entertaining and enjoyable, retailers are encouraging customers to

stay longer or come back more often. This encourages repeat purchase behavior and is a primary

feature of brand loyalty.

In addition to providing interactivity and entertainment, websites need to be a functional

place for retailers and consumers to complete business transactions. Sites need to be easy to

navigate, secure for monetary and information exchanges, and offer a high level of customer

service. The available selection of goods, along with the information provided about those

goods, should be useful to the shopper.


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Design aesthetics is another important factor in website perception. Ho and Wu (1999)

determined homepage presentation was an important antecedent of customer satisfaction on the

Internet. They believed retailers should use striking texts, images, and animation to

communicate with the consumers. Not only does a website need to be attractive, creative, and

aesthetically pleasing, it also must represent the brand image. The design aesthetics must present

the brand and merchandise in a way that it consistent with the retailers other channels. Often

the websites reflect the physical stores, both in appearance and ambiance. If a store desires its

image to be a calming shopping experience for their customer, the website must also portray that

calming feeling. Since shoppers are unable to be physically immersed in that environment,

design aesthetics are responsible for communicating that image through a computer screen.

It has been hypothesized that both clothing involvement and a consumers attitude toward

the Internet have an effect on an apparel retailers website perception. Perception of a website,

in turn, consists of product information, ease of navigation, interactivity and entertainment, and

design aesthetics. Studies have shown that those who have a more favorable perception of a

website are more likely to shop at the site (Kim & Lee, 2006; Loiacono, 2000). Considering

these factors, it was proposed that:

H6: Those who have a more positive perception of an apparel brands website will

have a greater intention to shop online for apparel.

Online Apparel Shopping Intention

In many studies, online shopping intention is not distinguished from online patronage or

brand loyalty. However, this study makes a clear division between online shopping intention for

apparel and brand loyalty. Intention toward shopping online refers to a consumers future

behavior. Only after this behavior is repeated or the retailer is repatronized does the behavior


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become loyalty. The intent to shop is the antecedent to brand loyalty. It is reasonable to expect

that the more a consumer wishes to shop at a retailers website, the more likely s/he is to develop

a loyalty to the website. This study proposed that there is a strong relationship between the two.

H7: Those who have a higher intention to shop online for apparel will have a greater

level of brand loyalty.


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Chapter 4

Methodology

This study was designed to determine what factors influence a consumers intention to

shop for apparel online and the relationship to online brand loyalty. Using quantitative data, this

study measured the levels of brand satisfaction, offline brand patronage, brand trust, clothing

involvement, attitude toward the Internet, perceptions of an apparel brands website, the

intention to shop online, and online brand loyalty. This chapter focuses on sample descriptions,

data collection methods, and the survey instrument that was created to test the variables.

Sample

The participants used in this study were 200 female college students between the ages of

18 and 25 enrolled at the University of Georgia. Participation in the survey process was

voluntary. This study group was selected based not only on the convenience of obtaining the

sample but also on the likelihood that young women shop for apparel online. According to Lee

and Johnson (2002), Internet shopper demographics show that college students are likely to be

potential online shoppers.

Description of Survey

The instrument that was used in this study was a survey in the form of a questionnaire

approved by the University of Georgia Institutional Review Board. The survey focused on the

significance of brand loyalty in online apparel shoppers. The researcher developed a

questionnaire to collect data for this study. The survey asked questions based on behaviors

related to: (1) brand satisfaction, (2) offline brand patronage, (3) brand trust, (4) clothing


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involvement, (5) attitude toward the Internet, (6) perceptions of an apparel brands website, (7)

intention to shop online, and (8) online brand loyalty. Demographic information was also

included.

Each variable was measured using a previously developed scale. Some variables were

created from a combination of related factors and there was no one specific scale to measure

them. Combinations of scales were used to measure these variables.

Brand satisfaction characteristics were measured using nine questions regarding customer

satisfaction and brand consistency. A customer satisfaction scale by Taylor and Baker (1994)

was adapted for the survey. Questions regarding brand consistency were developed from

qualitative research by de Chernatony and Segal-Horn (2003). Responses were measured on a

five-point Likert scale (1 = strongly disagree, 5 = strongly agree).

Offline brand patronage characteristics were measured using a scale developed by Lau

and Lee (1999). This scale measured the behavioral intentions of respondents, particularly their

intention to keep buying the brand and their willingness to wait if the brand was not available.

Four questions were selected to measure offline brand patronage. Responses were measured on

a five-point Likert scale (1 = strongly disagree, 5 = strongly agree).

Brand trust characteristics were broken down into three scales: brand reputation, brand

predictability, and overall brand trust. All three scales were adapted from Lau and Lees (1999)

study. They developed a new scale to measure perceived brand reputation based on a

consumers notion of how a brand is known to be and what others have said about the brand.

Brand predictability was based on a Lau and Lee scale originally adapted from a scale developed

by Remple, Holmes, and Zanna (1985) which measured trust in close relationships. Their scale

included faith, dependability, and predictability as factors which led to trust in a relationship.


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Only the questions referring to predictability from the scales three categories were used and

adapted to reflect trust in a brand. The responses were based on a five-point Likert scale (1 =

strongly disagree, 5 = strongly agree).

Fashion clothing involvement characteristics were measured using a combination of

scales developed by OCass (2000, 2004) and Goldsmith and Flynn (2005). Eight questions

were used to measure the respondents involvement with fashion clothing and level of fashion

clothing product knowledge. The responses were based on a five-point Likert scale (1 = strongly

disagree, 5 = strongly agree).

Characteristics regarding attitude toward the Internet were measured using a combination

of scales. Computer knowledge and level of comfort with technology were measured from the

Internet Attitude Scale (IAS) developed by Durndell and Haag (2002). The IAS scale was

adapted from the Computer Attitude Scale designed and validated by Nickell and Pinto (1986).

Security was measured using the four questions in the safety portion of a scale by Lee and

Johnson (2002). Experience with the Internet was measured using adaptations of two questions

developed specifically for shopping on the Internet by Wallace, Giese, and Johnson (2004).

These questions deal with a customers experience at researching and purchasing a product

online. The responses were based on a five-point Likert scale (1 = strongly disagree, 5 =

strongly agree).

Perceptions of the brands website were measured using a modified version of the

WebQual scale (Loiacono, 2000). Of the original 21-question scale, 16 questions were

adapted based on factor loadings in Kim and Stoels (2003) study to fit the variable in terms of

product information, ease of navigation, interactivity and entertainment, and design aesthetics.


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Questions with a factor loading of less than 0.70 were dropped. Responses were measured on a

five-point Likert scale (1 = strongly disagree, 5 = strongly agree).

Online shopping intention and online brand loyalty characteristics were measured using a

combination of two scales. Three scale items to measure shopping intention were adapted from

scales used by Chiang and Dholakia (2003) and Baker, Levy, and Grewal (1992) to fit the

current study. The other three scale items used in this survey section were developed by the

researcher. Responses were measured on a five-point Likert scale (1 = strongly disagree, 5 =

strongly agree).

Four demographic questions were included in the final section of the survey. The

questions regarding age and ethnicity/race were used to determine the diversity of the sample

group. Although the sample was limited to a specific age group, the age distribution within that

group may have some effect on the results or be a factor of interest. The last two questions

related to the participants spending habits. Participants were asked approximately how much

they spend each month on living expenses and how much they spent on clothing in the last

month. These questions were to better understand the economic status of the demographic and to

determine if there is any relation between the amount spent on clothing in the last month and the

price points of the retailers selected. Also, the spending habits of the respondents could be a

relevant factor in clothing involvement and add to the conclusions of the study.

A preliminary study was conducted to aid the development of the survey instrument. The

preliminary study was used to determine female college students shopping preferences.

Twenty-eight students were asked to choose their favorite apparel brand and state whether they

had ever visited and/or purchased items from that brands website. The responses from the

preliminary study, along with consideration of retailers target markets and price points,


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determined the three retailers that would be used in the final survey instrument. Three retailers

were chosen to cover the widest range of styles and prices that would appeal to female college

students. The retailers selected were: Banana Republic, Urban Outfitters, and Forever 21.

The final University of Georgia Institutional Review Board approved survey instrument

used in the study was created on the website SurveyMonkey (www.surveymonkey.com) and was

accessible online. For the purposes of this study, an apparel brand was referred to as an apparel

retailer throughout the survey. This was to facilitate respondents understanding of the terms and

questions. Participants were asked in the beginning of the survey to select one of three pre-

determined apparel brand retailers that they have either had experience with or were familiar

with. Respondents were then asked to keep their selected retailer in mind when completing the

questionnaire. Prior to the website perception section of the survey, respondents were asked to

briefly visit the retailers website, search the website for a shirt or blouse, select a color and size

for the garment, and read the information provided about the garment. This request was to

ensure that the participants could evaluate similar experiences with the websites although they

may have chosen different retailers.

The researcher distributed 616 requests to visit the survey website to female students

between the ages of 18 and 25 at the University of Georgia. In addition to the distributed

requests, responses were also solicited by participants word-of-mouth. This snowball effect

provided an additional, but undeterminable, number of requests for participation in the survey.

Only 225 of the students participated in the actual survey, resulting in a 36.5% response rate. Of

those 225 surveys, 25 were discarded due to missing data and resulted in 200 usable surveys for

analysis. Students were asked to visit the website and complete the survey at their convenience.


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The survey took no longer than 20 minutes to complete. A random drawing for a $50 gift card to

Target was offered to the students as an incentive for participation in the research.

Statistical Analyses

Descriptive statistical analyses were conducted to determine demographic information,

means, and standard deviations of the factors. Exploratory factor analyses were then performed

to determine if any underlying components existed within the variables. Cronbachs alpha was

calculated to test the reliability of the scales and Pearsons correlation analyses were then

performed to examine the correlation between all variables. Regression analyses were used to

test the hypotheses.


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Chapter 5

Results

The data were collected through the online survey program SurveyMonkey. The data

were then imported into SPSS statistical software for evaluation. Descriptive statistics, factor

analyses, reliability tests, correlation analyses, and regression analyses were performed on the

data.

Participant Demographics

The final section of the survey was used to evaluate the respondents demographic

characteristics. Table 1 summarizes the results. Some respondents chose not to answer

questions about age and ethnicity/race but completed the rest of the survey. This accounts for

the discrepancies in the data totals for Table 1.

All participants in the study were female college students between the ages of 18 and 25.

The mean age was 21. A vast majority (85.9%) of the participants classified themselves as

Caucasian/White, while 6.6% were African-American, 0.5% were Native American/Aleut, 5.1%

were Asian/Pacific Islander, 0.5% were Hispanic/Latino, and 1.5% said they were in an ethnic

group not specified. Most of the respondents said their total monthly expenditures were either

between $400 and $800 a month or over $1,000 a month. Twenty-eight percent of respondents

spent over $1000 and 21% spent between $400 and $599 per month. Twenty-four percent spent

between $50 and $99 on clothing in the last month.

The majority of respondents (45.3%) selected Forever 21 as the apparel retailer brand

with which they had the most experience, while 38.7% selected Banana Republic, and 16.0%

selected Urban Outfitters.


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Table 1

Demographic Characteristics of Respondents (n=200)

Characteristics Frequency Percent

Age

18 2 19 15 20 45 21 51 22 30 23 11 24 8 25 14 Did not respond 24

Ethnicity/Race

Caucasian/White 170 85.9% African-American 13 6.6% Native American/Aleut 1 0.5% Hispanic/Latino 1 0.5% Asian/Pacific Islander 10 5.1% Other 3 1.5% Did not respond 2

Monthly Expenditure

$0-$199 9 4.5% $200-$399 14 7.0% $400-$599 42 21.0% $600-$799 41 20.5% $800-$999 27 13.5% Over $1000 55 27.5% Do not know 12 6.0%

Money Spent on Clothing

(in the past month)

$0-$49 30 15.0% $50-$99 48 24.0% $100-$149 40 20.0% $150-$199 35 17.5% Over $200 41 20.5% Do not know 6 3.0%

All percentages may not total 100% due to rounding.


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Factor Analyses

Factor analysis with varimax rotation was used to exp

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