Acknowledgement
At first, I am really grateful to Almighty ALLAH for making this research possible for us within restricted period time. I would like to acknowledge my sincere thanks to the respectable supervisor who has provided inspiration to me & grant his full support to overcome with the entire condition for submitting a successful comprehensive report. Then, I would like to pay my cordial thanks to the Management of surveyed stores at the very outset for affording me the best opportunity to work for this project.
I express my earnest gratitude to my representative, Mr. Monirul, who provides his kind assistance and precious suggestion to bring out the responsibilities upon my shoulders and gather all information from different resources in the UK.
I would like to express my special thanks to Mr. Shafi for assisting me in organizing my project and lastly all of the friends who have provided their assistance to me directly or indirectly all the time.
Abstract
Brand loyalty creates long term relationship between customer and brand. The purpose of this paper is to identify impact of brand loyalty on Adidas customers. As a sportswear brand, Adidas requires to offer competitive marketing mix comprises of high product quality, competitive price, attractive promotion mix, convenient environment, efficient service, strong brand image, diversified style to customers with a view to making them satisfied and loyal. To reveal how these factors influences customers of Adidas to get loyal, conducted a structured survey on 100 customers in there different stores of Adidas in Stratford, London. The survey comprises of eight sections and responses are collected in 5 point Llikert Scale. Deductive research approach and quantitative research strategy is chosen for conducting this research. Different statistical analysis such as percentage, mean, mean average, Cronbach’s Alpha, ANOVA, Pearson correlation is conducted. The research found that in the British environment there are six important factors of brand loyalty that are; name of the brand, quality of product, price, promotion, service quality and environment influences the customers significantly to get loyal towards Adidas sportswear.
Contents
Acknowledgement...ii
Abstract...iii
Chapter 1 Introduction...1
Research Background...1
Rationale of the Research:...2
Statement of the Problem...2
Research Aim:...3
Research Objective:...3
Research Questions...4
Organization Background...4
Research Structure...5
Chapter 2 Literature Review:...7
Brand Loyalty...7
Factors of Brand Loyalty...10
Brand Name...10 Quality of product...11 Price...12 Style...13 Store Environment...13 Promotion...14 Quality of service...15 Hypotheses...15 Chapter 3 :Methodology...17 Research Approach:...17 Research strategy:...18 Theoretical Framework...20
Data Collection Method:...21
Sampling technique:...22
The Sample...22
Research Instrument...23
Data Analysis...24
Chapter 4 Critical Analysis...26 Product Quality...26 Style...26 Brand Name...27 Store Environment...27 Service Quality...28 Promotion...29 Price...29 Cronbach’s Alpha...33 ANOVA...34 Hypothesis Test...35
Chapter 5 : Findings, Conclusion and Recommendations...37
Findings...37
Conclusion...41
Recommendation...42
Further research suggestions:...43
Quality aspect of this research:...43
References...45
Appendix 1: Survey Questionnaire...49
List of Figures and Tables
Figure 3.1: Research Approach Figure 3.2: Quantitative research Table 1.1: Research Structure
Table 3.1: Quantitative vs. Qualitative research Table 3.2: Theoretical Framework
Table 3.3: Demographic profile of the sample Table 4.1: Responses in percentage
Table 4.2: Ranking Factor of Brand Loyalty
Table 4.3: Reliability Analysis (Cronbach’s Alpha) of Factor of Brand Loyalty Table 4.4 Income Level versus Factors of Brand Loyalty
Table 4.5 Races versus Factors of Brand Loyalty
Chapter 1 Introduction Research Background
In every part of the world consumers always tend to choose different services and products without knowing much about that product’s specification and the proper usage of that product. Consumers are purchasing intentionally different brands which they haven’t used before. In some cases, they buy without having much understanding about that new product. Besides it is very hard to understand for every consumer about the characteristics of that new product or service and this causes perplexity among the purchasers for obtaining information about a new company which has entered into the market recently. For instance, it will take huge time for the customers to understand when any new local company enters into the market rather gaining much knowledge about the characteristics and usefulness of that product (Ray 2003). Consumer behaviour is a comprehensive learning of knowing what people purchase, how usually they purchase, what time consumers want to buy in addition to most importantly why customers purchase (Kotler 1994). In this marketing study there are different kinds of elements involved exclusively like materials from psychology, sociology, economics, anthropology and socio psychology. This tries to observe the process of the decision making of the buyer both individually and combined. To understand needs of the people it studies different characteristics of every customer for example psychographics, behavioural and demographics variables. According to Kotler, 1994 it assesses the significant influences on the customer from different groups for example reference groups, family friends and from the society in general. For instance when a consumer makes decision to purchase a shoe, then they usually go first for the family decision besides its satisfaction level, comfort, quality and price. To buy the identical product each member of the family may don’t contain the equal attitude towards that product, different members in a family may show different lists of choice to purchase a same thing. Therefore we see that in a similar group of people, buyer activities can be totally not the same, (Kotler 1994). Hence the justification of this research ensures providing an improved understanding of purchasing performance of the sports goods consumer. The purpose of this study is to discover matters which influence the customers to purchase sports goods of Adidas.
Rationale of the Research:
There is relationship between customers’ satisfaction and brand loyalty. To create loyal customer base, firm need to pay high attention on customer preference over time. A brand need to offer competitive marketing mix that is regarded to the customers as better than competitor competing in the same industry and that mix influences customers to get to that particular firm. This paper will reveal how brand loyalty influences customers in sportswear industry. Customers’ demand and preferences are highly flexible particularly in fashion industry. Customers’ preferences also depended on social background, age, gender, income, race and some other diameters. To understand brand loyalty, a researcher need to critically analyse and study different customer choice related issues. By explaining those issues, a researcher now can simplify the influence of brand loyalty on Adidas customer to different stakeholders of the company and this research. This research will shed light on impact of brand loyalty on sportswear customers of Adidas.
Statement of the Problem
This study mainly spotlights on different features of brand loyalty building among the sportswear customers and how recent strategies on marketing are used in the industry of clothing companies. Classically public relations and marketing professionals think branding and use of mass media as a great way for increasing the visibility of brands which allow them to show up and build loyalty among the consumers is to be said brand. According to Ross and Harradine (2007), brand is an identifiable product, service, place or person which is augmented in such a process that the user or buyer pick out unique added value which relevantly equivalent with their intended need most strongly. In addition, to face the competition the results of sustaining these added values help the firm largely.
According to the Keller brand awareness is the capacity to recognize the brand under various circumstances. It is a combination of brand recognition and recalling the brand. Brand awareness is very important since it enhances the chance of the brand being selected from a set of consideration which eventually supports brand associations and to build the brand image (Kwang-Ho et al. 2011).
Gustafsson defined that for increasing the loyalty of the customer, an extensive array of programs should be built up and implemented exclusively. By targeting buyers' useful and financial advantages such as different kinds of discount, mileage, coupon programs etc. are set.
Though these types of fidelity programs are very required but not necessarily it simultaneously increases the multifaceted loyalty of the customer. A customized marketing strategy that changes by each diverse type of loyalty is entirely required for increasing customer loyalty (Kwang-Ho et al. 2011). For the sportswear customers a longer lasting brand loyalty can be made by using a kind of grass root customer marketing in place of mass media marketing. This paper will try to reveal how different marketing strategy of Adidas can create more loyal customers.
Research Aim:
The aim of this paper is to analyse various factors of brand loyalty that persuade customers of sportswear in Adidas.
Research Objective:
To develop loyal customers group, a sportswear company need to offer satisfactory marketing mix for customers that comprises different factors such as better product quality, enhanced service quality, comfortable store environment, attractive promotion, reputed brand name, diversified style, competitive price etc (Yee and Sidek 2011). So, all these factors influence customers to get loyal toward a sportswear brand. Now, the researcher intend to identify what factors actually influences customers of Adidas to get loyal and how, with a view to fulfilling this intention he has identified following broader objective;
To identify and critically evaluate factors influencing brand loyalty in sportswear company particularly brand loyalty of Adidas customers
To identify and critically evaluate relationship between price and brand loyalty in Adidas
To identify and critically evaluate relationship between product quality and brand loyalty in Adidas
To identify and critically evaluate relationship between brand image and brand quality in Adidas
To identify and critically evaluate relationship between promotion and brand loyalty in Adidas
To indentify and critically evaluate relationship between service quality and brand loyalty in Adidas
To indentify and critically evaluate relationship between store environment and brand loyalty in Adidas
To indentify and critically evaluate relationship between style and brand loyalty in Adidas
To recommend strategy to improve brand loyalty in Adidas. Research Questions
Following are the research question of this paper;
What are the factors influencing brand loyalty in sportswear company particularly brand loyalty of Adidas customers?
What is the relationship between price and brand loyalty in Adidas?
What is the relationship between product quality and brand loyalty in Adidas? What is the relationship between brand image and brand quality in Adidas? What is the between promotion and brand loyalty in Adidas?
What is the relationship between service quality and brand loyalty in Adidas? What is the relationship between store environment and brand loyalty in Adidas? What is the relationship between style and brand loyalty in Adidas?
What are recommended strategies to improve brand loyalty in Adidas?
Organization Background
Adidas is one of the largest and very popular sports brands in all over the world. After the Nike Company, Adidas ranks second in the sports products. Adidas is manufacturing a large variety of sporting equipments, shoes and apparels and numerous types of sports products. Adidas is a German multinational company based in Herzogenaurach, Bavaria, Germany. Adidas wants to help everyone play better from famous athletes to school kids. This company sells these items in more than 170 countries directly. On December 31, 2012 the Adidas group employed 46,306 people, every year this company is getting a big turnover which amounts near about 6 billion Euros. From this data we can easily understand that it is one of the biggest, dependable and most exclusive companies in the world. The Adidas company’s history is very unusual and unpredictable. No one could even picture that it will reach such
Adolf Dassler and Rudolf Dassler. Formerly it was a shoe factory in Germany. After the end of World War II, in 1947, 2 brothers became separated and a new company came which became known to all over the world. Adolf named it Adidas which is a abbreviation of Adi Dasler and his brother Rudolf Dassler also opened a company which is now also eminent and named it Puma. Both of these two companies became very popular and had a everlasting rivalry in the sportswear market. Adidas has a unique emblem which is three parallel strips. In the past, it produced only footwear and sneakers and now it produces an array of sporting goods such as track suits, different accessories and many more. Products which are seen by this cool logo are always characterized by best quality, practicality and reliability because this Company issues warrant for every product’s model.
Though things produced by this company are trendy and stylish but most importantly they are valued for their functional factor. There are many prominent athletes who use the products of Adidas Company because the commodities that Adidas produce are some of the finest in this world. Celebrated people who choose the Adidas: Muhammed Ali, David Beckham, Michel Platini , Zinedine Zidane, Stefan Edberg, Steffi Graf, Joe Frazier, Gunda Swann. Adidas has its own slogan which is- "Impossible is possible". Like their motto this company has made possible lots of unthinkable events with its triumphant march and which has changed the fortune of many people.
Research Structure
Table 1.1: Research Structure
Chapter Name Description
Introduction This chapter provides a brief description and outline of the research. Under this chapter researcher described background of the research, rationale of the research, statement of the problem, research aim, objectives, questions, organization background and research structure.
Literature review This chapter provides insight about brand loyalty and factors of brand loyalty. Based on theory derived after critical review of
literature, researcher developed hypothesis at the end of this chapter.
Methodology This chapter deals with the methods chosen to conducts the whole research. This chapter includes, research approach, research strategy, theoretical framework, data collection method, research instrument, data analysis, ethical consideration, and limitations of research.
Analysis This chapter analysed data as per result obtained from survey data. Percentage, mean, mean average, C’Alpha, ANOVA, Pearson correction are presented in different tables and analyses critically.
Findings & Conclusion This part provides insight about findings of analysis as well as conclusion, recommendation, further research scope and quality aspect of this paper.
Chapter 1 Literature Review:
In UK, sportswear brands like Umbro, Puma, Reebok, Nike, Fila and Adida are popular to sportswear customers. Young people take Sportswear as a general and popular category because it is identified by them with a greater flexibility, comfort and more relaxed lifestyle. Manufacturers such as Adidas and Nike started expanding their business definitely in the Asia to achieve higher sales volume for their products.
Lot of companies tries to increase brand loyalty among their customers particularly in sportswear industry. Brand loyalty is defined as a customer’s careful or careless decision which is represented by the willingness or attitude of repurchasing continuously a definite brand. The final goal of marketing is popularly known as brand loyalty (Sasser and Reichheld, 1990). Brand loyalty suggests a customer’s pledge of repurchasing the product of the brand through repeatedly purchasing a service or a product and positive attitudes like promising word from them. This suggests that the repeated purchase decision is greatly dependent on performance quality of the product or service and trust (Holbrook and Chaudhuri, 2001).
Brand Loyalty
Brand loyalty has many operational definitions. Normally, brand loyalty is defined as how strong customer’s preference is towards a brand comparing to similar options available in the market. This is often determined based on price volatility or repeat purchase behavior (Brandchannel.com, 2006). Anyway, according to Kasper and Bloemer (1995) actual brand loyalty have six necessary factors that are: 1) the non-random (that is biased); 2) behavioral expression or purchase; 3) over time response; 4) decision-making units; 5) out of a set of such brands the comparison of comparing to one or more alternative brands; and (6) a function of psychological processes
When customers have a high relative attitude toward the brand the actual brand loyalty exists that is and repurchase behavior show that. Firms can consider This kind of loyalty is a great asset for firms because of customer’s willingness to pay higher prices, less cost of serving
loyal customers do not try any kind of evaluated approaches, the known brand is simply chosen by them in terms of some positive evaluations about it. Experience of past with the certain brand under consideration stems this overall positive evaluation on the brand.
According to Amine (1998) in her literature brand loyalty can be described by two main approaches: first one is behavioral, that tells that the repurchasing a brand by a customer over time indicates loyalty of them; second perspective is the perspective from attitude that supposes that a necessary condition of brand loyalty is consistent buying but it is not enough to prove ‘authentic’ brand loyalty. It should be supported by a favorable attitude towards the brand that ensures that the further continuation of this behavior.
Therefore, brand loyalty is a function of attitude as well as behavior. A customer’s preference to purchase a particular brand within available alternative product category is defined as brand loyalty. It occurs when customers understand that at the right price the brand proposes the right level of quality or image, product features. This idea is the fundamental of new purchasing habits. Primarily, a trial product of the brand will be purchased by customers after that when the purchase is satisfactory to the customers, they form habits to repurchase that brand continuously as the product seems safe and familiar.
In line with Jacoby and Kyner (1973), there are differences in the middle of recurrence behaviour of purchasing and loyalty towards brand. According to them, the set of six essential as well as mutually satisfactory conditions can be defined as brand loyalty. They explained the combination of six factors i.e. non-random, behavioural reaction, expression over time, some unit’s decision making process, in comparison to some other brands and finally is the function regarding the psychological (evaluation, decision making etc.) procedures. They added that statements of inclination or else aim of buying i.e. verbal reports of loyalty are not enough to explain loyalty. In order to consider brand loyalty, verbal reports must be pooled with the customers’ loyal behaviour of purchasing. This article provides me a broad meaning of brand loyalty applicable in the work place and hence, the article is very much crucial to this research.
In accordance with Tucker (1964), to know details about brand loyalty, one must consider the way it has been developed. He further said that in terms of branded products, brand loyalty is
regarded as the biased purchasing behaviour. He also has made an exciting aspect that he points to the Psychology Theory which says that one might learn of loving what he selects as instantly he might learn of choosing what he loves. Tucker argued that regardless of any special differences among the various brands, some customers will get more loyal to any specific brand. Even if the products of various brands are same, they will also continue choosing products from a certain brand. These happenings are more common in case of sportswear industry. If two sportswear stores serve the same sportswear, people will get more loyal to any of the brands due to the connection made between them and the brand.
On the other hand, in line with Fournier (1998), factors leading towards durability as well as stability of the relationship between consumers and the brand/s over time period. She investigated that the six factors lead towards maintaining a strong brand relationship. These six factors are: self-connection, passion and love, commitment, interdependence, brand partner quality and finally, intimacy. Fournier also revealed that through significant brand as well as actions of consumers, the quality brand relationship can be evolved. Hence, the reciprocity principal is applicable in case of quality brand relationship. This principal is applicable in case of all other relationships. The essence of reciprocity principal is that if someone treats the brand well by the way of becoming loyal to that brand, then the brand will also repeat it by becoming faithful to its customers. This notion is also related with the example of sportswear industry. In sportswear industry, customers get loyal to the specific sportswear stores as they mean that store will behave them well by becoming available when their customers need them and by providing more personalized coffee.
One process relates that the experts of marketing are using specification of loyalty by market segmentation for a specific product/service. Market segmentation is the procedure in which marketing experts divide the whole market into various segments depending on the apparent quality of product/service as well as cost. After that, the experts habitats various kinds of customers into each of the segment of products they will buy most. This tool is very much effective for the companies which aim at the advertising of their products to a specific consumer group.
price or advertising. The assumption of the model is that the market reaction is followed by a curve shaping “S”. For instance, the response of a household toward a change in price in case of a strongly favored brand will be small. Hence, this event will be taken place in the in the steeper middle portion of the market response curve. However, Y desired brand will be higher and this will place it on flatter part of the response curve. The non-linear portion reveals the sensitivity of brand specified prices for the individual household. By using all the information gathered from their model, they were capable for creating brand specified segments in the market through the way of making groups of the households having same reaction to the price changes. The result of the study is relevant for all categorized brands and this permits managers for obtaining the eye view of the brand regarding their competition as well as product. The study should permit managers assessing the opportunities to target various groups of customers. However, the study is specifically relevant with my research as the products they used was ground coffee as well as that could help to look at the customer response towards marketing activity in the industry of specialty coffee.
Another study was conducted by Starr and Rubinson (1978) in this regard. They revealed that brands having high repeat rate must possess higher percentage of shares approaching from loyal customers. Again, brand having a high repeat rate must possess low price elasticity in terms of demand. Another result was also found that brands are very much substitutable which can be measured through high switching rate in comparison to the market share of substitutable brands.
Again, a unique model was used by Hamer and Muniz (2001) for studying oppositional behavior of brand loyalty in the social environments. The researchers used newsgroups of Usenet the function of which was similar to electronic bulletin boards for tracking people’s saying regarding their preferred brand/s and also regarding the competing brand/s. they got oppositional loyalty is revealed in two ways mainly. In the first case, customers will outline their preferred product categories by what they consumed and did not consume. In the second case, customers will reveal their disagreement towards the competing brand/s as well as start playful competitions with the consumers of competing brand/s. in many cases; the second one is followed by the first one. Therefore, the study reflects the fact that some of the customers
develop a portion of the meaning of the brand as well as their distinctiveness from the opposition towards competing brand/s. this article will focus on the instances of sportswear.
Factors of Brand Loyalty
Customers’ brand loyalty towards particular sportswear brands is influenced by seven factors (Lau et al. 2006). The factors includes: name of brand, quality of product, style, price, environment of store, promotional activities and quality of service.
Brand Name
Popular brand names can propagate higher recall of advertised benefits and more product benefits than brand names which are not popular (Keller, 2003). Alternatives are available and different unfamiliar brand names in the market. Major famous brand names are trusted by customers. Customers are attracted by famous brand images and brand names that lead them to purchase repeatedly the brand and reduce switching behaviors related to price (Foster and Cadogan, 2000). Again, links to the brand’s self-representing utilities of differentiation are given by brand personality. This is crucial for brands that are consumed in a social setting and have minor physical differences where a visible image is created about the customer by brand itself.
In contrast, to facilitate customer recognition, fashion press and fashion magazines reinforce better pictures and describe the designer’s collections to the total extent (Colborne, 1996). Generally customers have ability to evaluate every product and brand name attributed (Keller, 2003). Undoubtedly, this information is mandatory for marketing managers for taking information based decisions about differential advantages, repositioning of product and positioning of product.
A brand identity development and creation of an image and is called brand name which is a costly and time killing process (Thakor and Kohli, 1997). A mandatory part of the process is brand name development
A brand’s image is based on its name. Brand name is important for the firm to accelerate repeat purchasing habit and encourage customers about purchasing the product. An overall perspective tends customers to perceive the product related to the brand name when all the satisfaction and attributes experienced by the buying and using the product.
Quality of product
Quality of product includes the functions and features of a service or product that carries on its capability to satisfy implied or stated needs. In other sense, or ‘conformance to requirement” or “fitness for use” define the product quality (Russell and Taylor, 2006).
Depending on the touchable quality of the product sold, customers can switch among different brands or repeatedly purchase from single brands. According to Frings (2005), the elements of quality of product of fashion products consist of measurement of size, fitting or cutting, the performance of the product, color, material and function. Fitting is an important thing in garment selection because the customers’ general appearance is ideally increased by some fitted garments such as aerobic wear and swimsuit.
As material affects the texture, hand feel as well as different performance factors of the product is important in quality of product. Again, color is related to personality by customers and they can reject or select a fashion for color. When the color doesn’t attract them and fade their own color, the fashion will be rejected by them. (Frings, 2005).
Quick-dry, waterproof, breathable, lightweight, odor-resistance and antimicrobial and lastly durability are included in functional attributes in sportswear. For example, some customers wear sportswear for leisure and sports and some for heavy work, as a lot of movement is needed, while in purchasing sportswear durability is also an important factor (Garvin, 1988).
Quality consciousness or Perfectionist is one kind of demand for and awareness of high quality products, as well as the need of makeing the perfect or best choice instead of purchasing the first available brand or product (Kendall and Sproles, 1986). Therefore quality related characteristics are also performance related.
Price
Customer consider price as the most important factor (Cadogan and Foster 2000). As customers who are highly brand loyal are ready to pay a additional price for their favourite brand, price can not affect their purchase intention easily.
According to Evans et al 1996 and Keller, 2003, as customers strongly trust in the value and price of their preferred brands, they would not evaluate and compare prices with other available brands. By comparing price with values and incurred costs customers can build satisfaction. If the projected utilities of the product are more than cost, this is seen that customers would buy the product.
For avoiding the risk of any change it is favorable to loyal customers to pay a higher price and they wish to pay higher price in exchange of the perceived high risk (Yoon and Kim, 2000). Basically, loyal customers are made more tolerant to price by service loyalty created by long-term service loyalty, therefore loyal customers are discouraged from comparing price with other products by shopping here and there. According to De Ruyter et al., 1999, price is becoming a center point in customers’ assessments of value offering increasingly along with their overall judgment of the retailer.
Customer’s choice and incidence of purchase are significantly influenced by price (Bucklin et al. 1998). He emphasized that households buy products earlier than needed and switch brands because of discount pricing. Price is explained as compensation for something and quantity of payment. It implies that price is an exchange ratio among products that is paid for one another. Value positioning of companies or product is also reached to the market by price. At the lowest price finding the best value choice or buying at sale prices is defined as Price consciousness (Kendall and Sproles, 1986). Moreover, before deciding on the retail price attractiveness, generally customers estimate market price against an internal perceived price. Style
Style can be described as visual outlook including line, silhouette and other details by which customer’s perception is affected to the brand (Frings, 2005). Style is a created list of clothing approaches that is and has been collected (Littrell and Abraham, 1995).
Customers’ evaluation relies on the customers’ level of fashion awareness, so condition of judgment is their opinion of what is fashionable currently. Fashion conscious and loyal customers are attracted by brands that supply stylish sportswear. Fashion followers and leaders generally buy and repeatedly continue to purchase highly fashionable fashion garments in stores. They and their ego achieve satisfaction by wearing the latest style and fashion.
Duff (1999) conducted a research that investigated women’s sportswear’s niche market, the findings presented that sportswear purchasers getting more careful about fashion and more stylish products were more demanded; additionally customers like to wear different attires in different occasions.
Generally consciousness of fashion is described as an consciousness about new styles, attractive styling and fashion change, along with the willingness to purchase anything trendy and exciting (Sproles and Kendall, 1986).
Store Environment
According to Omar (1999), store longevity and retail marketing success is dependent on the store environment most significantly. Brand loyalty is affected by favorable approaches of the store which includes in-store stimuli, layout of store and location of store to some extent. Number of outlets and store location are important in changing customer pattern of buying. Highly accessible store and satisfactory service to customers can create loyal customers (Evans et al., 1996). Therefore, customer’s decision making is influenced by a store’s atmosphere which is one of the factors.
The incitement in the store, like the characteristic of other salespeople and shoppers colors, signs, displays, merchandise and shelf space, store layout, noises, temperature and smells affect customers and provide as elements of apparel attributes ( Littrell and Abraham, 1995), alternatively, customer’s satisfaction with the brand and decision making is affected by it (Evans et al., 1996). On the contrary, attitudes and behavior is affected by the background music that is played in the stores (Milliman, 1982). Higher sales volume is leaded by The slow-beat musical selection as customers spend more money and time in a supporting atmosphere.
Having loyal customers has many benefits to the retailers. Loyalty of customers can produce a positive operating expense benefit for retailers (Huddleston et al.2004). Moreover, they emphasized that the expense of collecting new customers is five times to six times higher than retaining present customers. Customers who are loyal creates low expense for retailers comparing to generating new customer, can enhance their spending of purchase, they have customer longevity and price premiums are acceptable to them. Research done by Chang and Lin (2003) expressed that purchasing behavior is significantly affected by the channel convenience of the brands. This indicates that while purchasing low involvement products the how accessible the product/brand in the store is crucial. Customers will rather choose another brand instead of going another store only for finding the product of the brand.
Promotion
Promotion is a kind of communication with customers which is a marketing mix component. The use of sales promotions, advertising, publicity and personal selling is included in promotion. According to Evans et al., 1996, definition of advertising is an impersonal information representation in mass media regarding a product, store, company or brand. Customers’ beliefs, attitudes and images to brands and products are greatly affected and their buying behavior is influenced by it . Promotion, especially by advertising, can assist setting perceptions or ideas in the customers’ minds and assist distinguishing products among other brand’s products.
A significant element of a firm’s marketing strategy is known as promotion (Rowley 1998). With respect to offered products promotion is a way of communicating with customers, and it is used to encourage sales or purchase of a service or product also. Most of the companies use tools of sales promotion to advocate public relation and advertising activities. They are focused to customers as ultimate users. She also claimed that one of the vital components of the marketing mix is promotion which includes marketing directly, advertising; personal selling, sales promotion; sponsorship, publicity and public relations that has a vital role in determining market success and profitability.
Quality of service
In which customers’ expectations is corresponded and that satisfies their requirements and needs is defined as quality of service (Gronroos, 1990). One type of personal selling is quality of service that involves direct communication between potential buyers and salespeople. When customers are assured of definite privileges of service and like the provided service, they like to shop at certain stores.
The effect of customer-salespeople relationships usually result to long lasting introduction of customers to the brand or store. Belief in salesperson seems to link with total concept of the service quality of the store, as a result, customers being totally satisfied with the stores lastly. Moreover, customers’ evaluation of service and experience, and ultimately customer’s brand
loyalty is affected by personalization that includes, responsiveness, personalization, tangibles and reliability significantly ( Leung and To, 2001).
There are three dimensions of the service quality of as customers perceive technical or outcome dimension, image and functional or process dimension (Gronroos 1990). Again, according to Allaway and Richard (1993) only using functional quality attributes to describe or forecast customers’ behavior may have low predictive validity and be a misspecification of quality of service.
Hypotheses
This paper intends to critically analyze factors that influence sportswear customer brand loyalty towards a specific brand. The following hypotheses are consequent on the basis of factors that influence brand loyalty.
H1: There is positive and significant correlation between brand loyalty and product quality on sportswear consumer.
H2: There is positive and significant correlation between brand loyalty and style on sportswear consumer.
H3: There is positive and significant correlation between brand loyalty and brand name on sportswear consumer.
H4: There is positive and significant correlation between brand loyalty and store environment on sportswear consumer.
H5: There is positive and significant correlation between brand loyalty and service quality on sportswear consumer.
H6: There is positive and significant correlation between brand loyalty and promotion on sportswear consumer.
H7: There is positive and significant correlation between brand loyalty and price on sportswear consumer.
Chapter 2 : Methodology
In this study different criteria and guidelines of logical research methodology has been maintained. In this chapter of this paper we will demonstrate the precise methodology that was followed to facilitate this research ahead.
Research Approach:
In this stage of a research paper we have to make decision what are basis of chosen theory which may be found either by learning or included in that specific literature. Here we can follow a inductive approach or deductive approach. In an inductive approach one needs to gather data, then scrutinize it and lastly develop a proper theory based on the outcome of the analyzed data. In a deductive approach one need to develop a hypothesis from the relevant theory and develops analysis strategies for testing the hypothesis in order to accept otherwise to refuse it. (Saunders et al. 2009, page: 124).
Figure 3.1: Research Approach
Source: Bryman & Bell (2007).
This paper has chosen deductive approach as it firstly builds up hypothesis from a recognized theory, secondly expresses the hypothesis in prepared terms, thirdly conducts hypothesis testing, next analyses the specific results of that inquiry and finally confirmed targeted theory
on the basis of the findings or results of the test. Here highly structured methodology has been made to support imitation for making high level of reliable guarantee to follow deductive approach.
Research strategy:
Bryman & Bell defined research strategy as a general orientation to the performance of conducting a business research. There are mainly two different types of research strategy which are quantitative and qualitative research. Both qualitative and quantitative researches are diverse from each other not only on the basis of ontological and epistemological foundations but also on the basis of quantification and measurement of the results (Bryman & Bell 2007, page- 28).
Quantitative research:
Quantitative research is generally exercised in deductive approach. The aim of the quantitative study is to do a test of a hypothesis for establishing a theory. The result of quantitative research analysis is mostly in numbers and quantify. One more characteristic of this kind of research is sample size is extremely large here. In quantitative research there is a very low level of chances of biasness in the explanation from the researchers since here statistical methods are used largely for analyzing the results.
Figure 3.2: Quantitative research
Source: Bryman & Bell (2007)
This paper is quantitative research for total 11 reasons which include everything from theory building to the last step of writing the findings and conclusions.
Qualitative research:
Qualitative research is totally the opposite picture of the quantitative research in nearly every aspect of comparison. In inductive research we mostly use qualitative method where on the basis of research observation we try to generate a theory, (Bryman & Bell 2007, page: 28).
Table 3.1: Quantitative vs. Qualitative research
Source: (Hulley et al. 2007)
This study has used quantitative research rather qualitative research. This research mainly focuses with numbers in addition to comprehensive use of ratios to calculate as well as explore these figures along with numbers. Researcher has selected deductive approach that is directly related with quantitative research strategy and in previous section researcher has argued behind its selection. Researcher has selected this strategy keeping in mind the research questions and objectives.
Theoretical Framework
Theoretical framework of a study is based on secondary data. Theoretical framework is designed base on literature reviewed that provide full insight in understanding of research questions and solving them (Collis & Hussey 2009). The theoretical frame work of this research is as follows
Table 3.2: Theoretical Framework
Diameter Description
Price Price is the money spent to purchase a product. When a customer gets loyal to specific product, price does not obstruct him to purchase but to create loyal customer a brand need to offer quality product providing superior value for money.
Promotion Promotion is attracting customers towards a product using different media of promotion. Attracting advertisement and attractive window display in store promote a customer to purchase sportswear.
fashionable and flexible style with exclusive attributes that suits best with consumers’ look are significant features of styles that results in brand loyalty toward a particular fashion brand.
Service quality Service quality refers to that service which meets customer need and satisfies them. For providing quality service that create loyal customers, Sportswear brand need to train sales personnel well who should be eager to help customers, should be polite and friendly, should pose sober appearance. Store environment Store environment internal is layout of stores and facilities offered by an entity
that help to make customers to become loyal towards specific brand. Store location, number of stores, interior design and look, and in-store stimuli are significant components of store environment influencing brand loyalty.
Product quality Product quality is features and attributes of a product or service that has the ability to satisfy customers’ requirement. Product quality that affects brand loyalty of Adidas customers includes durability and performance of fabrics, colour, size, cutting, finishing, functional quality, and comfort features of sportswear.
Brand name Brand name is the establishment and nourishment of identity, image, and quality over the long period of time. Attributes of brand name in case of Adidas sportswear includes good reputation, attractive brand image, representation of personality and aristocracy and offering high quality products at high price griping economics of scales that ultimately results in brand loyalty.
Data Collection Method:
Data is called the foundation of information from where researchers try to find required information for answering the questions mentioned in the research (Rubin, R.B. et al. 2010). To collect pertinent information researchers use mainly primary and secondary sources of data. Primary data is collected or perceived straight from the first time experience. This researcher collected primary data from structured survey with customers of Adidas who were briefed on the purpose of the study. To collect secondary data researcher has gone through books, articles, journals, and exclusive web-based data.
Sampling technique:
Sample is a subset of total population which is selected for representing the whole population with the help of statistical inference and making judgment from the entire population on the
basis of that chosen sample. There are mainly two types of approaches for sampling the first one is probability and the other one is non probability approach (Bryman & Bell 2007, page: 182).
In the probability sampling approach every unit of population has the equivalent possibility of being chosen which are included in the sample and their possibility of selection is always greater than zero. This sampling approach eliminates any types of biasness in the sample selection process and diminishes the chance of sampling error. In non probability sampling approach possibility of choice of elements is not recognized and some population elements have no probability of being selected as a sample of that population (Swisher 2010). This researcher used simple random sampling because this sampling is most representative of total population where everyone of the population has equal chance of selection.
The Sample
Respondents are comprises of multiple ethnicity, namely British, other European, Chinese, Indian and USA, who were selected from three stores located in Stratford, London UK. These stores were selected because those were larger stores in this district compared to other stress. Sample size is 100 respondents including both man and woman. The survey is conduction over time frame of 15 days and researcher went personally to targeted respondents in different three targeted location. 100 sets of survey questionnaires were distributed among respondents in Stratford, London UK and data is collected in Likert Scale. The demographic profile of all respondents is presented in table 3.2.
Table 3.3: Demographic profile of the sample
Diameters Range Valid Respondents Percentage
Gender Male: 65 65.0 Female: 35 35.0 Races British 35 35.0 Other European 24 24.0 Indian 16 16.0 Chinese 12 12.0 USA 13 13.0 Age 18-22: 28 28.0 23-27: 51 51.0 28-32: 12 12.0 32 and above: 9 9.0
High School/College 21 21.0
Undergraduate 36 36.0
Postgraduate 23 23.0
PhD: 6 6.0
Income: £10,000 and bellow 45 45.0
£10,001-15,000 20 20.0
£15,001- 20000 21 21.0
£20,001-25,000 9 9.0
£25,001 and above 5 5.0
Remark: Total sample size N=100
The structure of the questionnaire is clear, easy to understand, and straightforward to ensure that the respondents could answer the questions with ease.
Research Instrument
A research instrument is tools that are used to measure a given phenomenon. Interview, survey, paper and pencil tests are the examples of research instrument. This researcher uses survey research tool to measure the impact of brand loyalty on customer of Adidas. A self-administered questionnaire in English was developed and divided into eight sections: product quality, price, promotion, service quality, store environment, style, brand name and demographic characteristics.
Data Analysis
Descriptive analysis is used to analyze the background as well as the respondents’ profiles pertaining to their evaluation of brand loyalty. The common measures such as the total, mean,
frequency and percentage are used to analyze the data gathered through the questionnaires. Frequencies such as mean and percentage analysis were used to obtain the factors that influenced respondents’ brand loyalty.
ANOVA is an appropriate test for hypothesis testing when there are more than two groups measured on an interval scale. In this study, ANOVA is used to determine whether there is any significant relationship between independent variables (brand name, product quality, price, style, promotion, service quality and store environment) and income and race of the respondents. One-way ANOVA is a single-factor, fixed-effects model to compare the effects of one factor (Malhotra, 2007). This means that One-way ANOVA is used to determine the variability of the sample values by looking at how much the observation within each group varies as well as how much the group means varies.
Pearson Correlation was seen as appropriate to analyse the relationship between the two variables which were interval-scaled and ratio-scaled. Furthermore, correlation coefficients reveal magnitude and direction of relationships which are suitable for hypothesis testing (Malhotra, 2007). The researcher used Pearson correlation to test seven independent variables (brand name, product quality, price, style, promotion, service quality and store environment) that influenced consumer brand loyalty and to test if a relationship existed between the independent and dependent variables.
Ethical consideration:
The researcher ensures that human participant this research will not be harmed psychologically or physically. Participants in this research are voluntary and subject and purpose of the research are informed to them. The researcher has not any intention to misinterpret responses collected from participants. The researcher will also secure participants privacy and confidentiality.
Limitations:
Major limitation of this paper is that results of this paper are based on responses collected from survey on customers and analysis and findings will be based on customers’ opinion what may differ from management point of view. This researcher assumes that respondents
opinion that is not absolute measure of human feelings but only a comparative measure. This paper has chosen sample of 100 responses because of time limitation and cost effectiveness though researcher intended to survey higher reflective sample of the population. There is words limit too.
Chapter 3 Critical Analysis
This chapter analyses data collected from sample survey on customers. For analysing data different data analysis tools such as percentage, mean, mean average, Cronbach’s Alpha, ANOVA, Pearson correlation are used based on methodology has just developed.
Product Quality
Product quality indicates features and attributes of a product and service that has the ability to satisfy customer needs. Product quality that affects brand loyalty of Adidas customers includes durability and performance of fabrics, colour, size, cutting, finishing, functional quality, and comfort features of sportswear. Respondents, profile of survey in percentage indicates that 33% customer scored 5 (Strongly agree) regarding that Adidas products last longer compared to other brands, 35% scored 4 (Agree), 20% scored 3 (Neutral) and rest expressed negative opinion. Consumers’ profile of survey in parentage shows that 36% consumer scored 5(strongly agree) regarding that the materials used by Adidas are comfortable, 33%scored 4(agree), 19% scored 3 (Neutral) and 12% opine negatively about comfortable. Clients, profile of survey in percentage indicates that 34% consumer scored 5 (strongly agree) regarding that Adidas has products of diverse colour,32% scored 4 (agree), 20% scored 3 (Neutral) and 14% express in negative word. Final consumers, profile of survey in percentage indicates that 34% consumer scored 5 (strongly agree) regarding that the products of Adidas have good functional quality, 32% scored 4 (agree), 20% scored 3 (Neutral) and others response negatively.
Style
Style is visual appearance of a produce that creates affection to customers resulting in purchasing decision. In case of fashion brand, different trendy, fashionable and flexible style with exclusive attributes that suits best with consumers’ look are significant features of styles that results in brand loyalty toward a particular fashion brand. Ultimate users’ profile of survey in percentage indicates that 34% consumer scored 5 (strongly agree) regarding that The Adidas has different styles, 31% scored 4 (agree), 22% scored 3 (Neutral) and 14% express negatively. Ultimate Clients, profile of survey in percentage indicates that 36% consumer scored 5 (strongly agree) regarding that Product styles of Adidas do suit me well,
33% scored 4 (agree), 17% scored 3 (Neutral) and express negatively like 14%. Final Clients’ profile of survey in percentage indicates that 32% consumer scored 5 (strongly agree) regarding that Product styles of Adidas have exclusive attributes,31% scored 4 (agree), 22% scored 3 (Neutral) and not express positively like 15%. Final consumers’ profile of survey in percentage indicates that 32% consumer scored 5 (strongly agree) about that Product styles of Adidas are trendy and fashionable,32% scored 4 (agree), 20% scored 3 (Neutral) and not opines positively like 16%.
Brand Name
Brand name is the development and nourishment of identity, image, and quality over the long period of time. Attributes of brand name in case of Adidas sportswear includes good reputation, attractive brand image, representation of personality and aristocracy and offering high quality products at high price griping economics of scales that ultimately results in brand loyalty. Final respondents, profile of survey in percentage indicates that 30% customer scored 5 (Strongly agree) regarding that Adidas is a well reputed brand, 33% scored 4 (Agree), 23% scored 3 (Neutral) and others like 14%expresse negatively. Ultimate respondents, profile of survey in percentage indicates that 31% customer scored 5 (Strongly agree) regarding that the brand Image of Adidas encourages me to purchase, 35% scored 4 (Agree), 22% scored 3 (Neutral) and rest like 12%expresse negatively. Users, profile of survey in percentage indicates that 24% customer scored 5 (Strongly agree) regarding that I do choose Adidas regardless of price, 29% scored 4 (Agree), 25% scored 3 (Neutral) and others not express positively like 22%. Respondents’ profile of survey in percentage indicates that 29% customer scored 5 (Strongly agree) regarding that Adidas represents my own aristocracy and personality, 32% scored 4 (Agree), 21% scored 3 (Neutral) and rest of them like 18% express negative opinion.
Store Environment
design and look, and in-store stimuli are significant components of store environment influencing brand loyalty. Respondents customers, profile of survey in percentage indicates that 29% customer scored 5 (Strongly agree) regarding that Adidas stores located at convenience places, 33% scored 4 (Agree), 24% scored 3 (Neutral) and rest of them like 14% not expressed positive words. Respondents users, profile of survey in percentage indicates that 33% customer scored 5 (Strongly agree) regarding that Outlets of Adidas are sufficient, 33% scored 4 (Agree), 17% scored 3 (Neutral) and 17% not expressed positive opinions. Finally, respondents’ profile of survey in percentage indicates that 28% customer scored 5 (Strongly agree) regarding that interior exhibit of Adidas stores are nice-looking, 30% scored 4 (Agree), 19% scored 3 (Neutral) and rest of the respondents like 23% express negative words. Respondents customers, profile of survey in percentage indicates that 26% customer scored 5 (Strongly agree) regarding that Colour and music inside Adidas outlets are attractive, 27% scored 4 (Agree), 22% scored 3 (Neutral) and rest people like 25% express negatively.
Service Quality
Service quality refers to that service which is in line with customer expectations and that satisfies customer’s required demand. For providing quality service that create loyal customers, Sportswear brand need to train sales personnel well who should be eager to help customers, should be polite and friendly, should pose sober appearance. Final respondents customers, profile of survey in percentage indicates that 30% customer scored 5 (Strongly agree) regarding that Salesperson in Adidas stores is trained well, 32% scored 4 (Agree), 18% scored 3 (Neutral) and rest Respondents customers like 20% not express positively in their opinions. Ultimate respondents customers, profile of survey in percentage indicates that 28% customer scored 5 (Strongly agree) regarding that Salesperson in Adidas stores is eager to help, 29% scored 4 (Agree), 20% scored 3 (Neutral) and rest Ultimate respondents customers like 23% say negatively in their opinions when survey. Final respondent Users, profile of survey in percentage indicates that 28% customer scored 5 (Strongly agree) regarding that Salesperson in Adidas stores is polite and friendly, 30% scored 4 (Agree), 18% scored 3 (Neutral) and others like 24%not express positively in their opinion while surveying. Finally respondents’ clients, profile of survey in percentage indicates that 27% customer scores 5 (Strongly agree) regarding that Salesperson in Adidas stores shows sober appearance, 28% scored 4 (Agree), 19% scored 3 (Neutral) and other respondents express negative comment in their opinions.
Promotion
Promotion is marketing communication mix that referred as communication with customer through push or pull marketing. Attracting advertisement and attractive window display in store promote a customer to purchase after that (s)/he becomes loyal if (s)/he gets satisfied. Clients’ profile of survey in percentage indicates that 29% consumer scored 5 (strongly agree) regarding that Advertisements of Adidas are attractive,31% scored 4 (agree), 19% scored 3 (Neutral) and rest 21% respondents express in negative words in their opinions. Respondents’ profile of survey in parentage shows that 28% consumer scored 5(strongly agree) regarding that advertisements of Adidas promote me to purchase,30%scored 4(agree), 20% scored 3 (Neutral) and 22% opines negatively in their speech about advertisements of Adidas promote me to purchase. Final respondent Users time of survey, profile of survey in percentage indicates that 26% customer scored 5 (Strongly agree) regarding that Window displays in Adidas stores are attractive, 29% scored 4 (Agree), 20% scored 3 (Neutral) and others express not positively in their opinion at the time of survey.
Price
Price is vital factor to measure brand loyalty as high loyal customer is less price sensitive and less loyal customer is high price sensitive. When a customer gets loyal to specific product, price does not obstruct him to purchase but to create loyal customer a brand need to offer quality product providing superior value for money.
Customers’ profile of survey in percentage indicates that 23% customer scored 5 (Strongly agree) regarding that Increase of price does not obstruct me to purchase, 25% scored 4 (Agree), 23% scored 3 (Neutral) and others express negatively like 29%time of survey. Finally, respondents’ profile of survey in percentage indicates that 26% consumer scored 5 (strongly agree) regarding that Adidas provides superior value for money, 29% scored 4 (agree), 20% scored 3 (Neutral) and others response negatively in their opinions.
Product Quality
Q.01 Adidas products last longer compared to other brands
33 35 20 8 4
Q.02 The materials used by Adidas are comfortable.
36 33 19 9 3
Q.03 Adidas has products of diverse colour. 34 32 20 10 4 Q.04 The products of Adidas have good functional
quality.
34 32 20 10 4
Style Q.01 Adidas has different styles. 34 31 22 9 4
Q.02 Product styles of Adidas do suit me well. 36 33 17 8 6 Q.03 Product styles of Adidas have exclusive
attributes.
32 31 22 10 5
Q.04 Product styles of Adidas are fashionable and trendy.
32 32 20 10 6
Brand Name Q.01 Adidas is a well reputed brand. 30 33 23 10 4 Q.02 Brand Image of Adidas encourages me to
purchase.
31 35 22 7 5
Q.03 I do choose Adidas regardless of price. 24 29 25 12 10 Q.04 Adidas represents my own aristocracy and
personality.
29 32 21 10 8
Store
Environment
Q.01 Adidas stores located at convenience places. 29 33 24 9 5 Q.02 Outlets of Adidas are sufficient. 33 33 17 11 6 Q.03 Interior exhibit of Adidas stores are
nice-looking.
28 30 19 15 8
Q.04 music and Colour inside Adidas outlets are pretty.
26 27 22 16 9
Service Quality
Q.01 Salesperson in Adidas stores is trained well. 30 32 18 13 7 Q.02 Salesperson in Adidas stores is eager to help. 28 29 20 16 7 Q.03 Salesperson in Adidas stores is polite and
friendly.
28 30 18 14 10
Q.04 Salesperson in Adidas stores shows sober appearance.
27 28 19 17 10
Promotion Q.01 Advertisements of Adidas are attractive. 29 31 19 13 8 Q.02 Advertisements of Adidas promote me to
purchase.
28 30 20 13 9
Q.03 Window displays in Adidas stores are attractive.
26 29 20 14 11
Price Q.01 Increase of price does not obstruct me to purchase.
23 25 23 17 12
The result obtained based on answers of respondents’ from mean average score of brand loyalty attributes which is presented in Table 3. As per over result, the most significant factor is product quality. In the UK customers mainly choose product quality as the major factor that encourages them to be loyal toward Adidas. It is also observed from this research that the UK and Hong Kong customer loyalty behaviour are similar as consumers of both countries consider that the product quality is the most significant factor influencing their brand loyalty (Yee & Sidek 2008). A research on brand loyalty of sportswear by Lau et al. (2006) found that brand name and style influences brand loyalty behaviour of hard-core loyal costumers’ in the Hong Kong environment where communication mix influences brand switchers. So this research reveals that the mean average indicates product quality as the most vital parameter of brand loyalty in Adidas. Style, brand name, store environment, service quality, promotion, price is the consecutively next vital parameter of brand loyalty in Adidas sportswear customers.
Table 4.2: Ranking Factor of Brand Loyalty Factors Q.
No.
Questions Mean Ranking
Product Quality
Q.1 Adidas products last longer compared to other brands
3.85 1
Q.2 The materials used by Adidas are comfortable. 3.90 Q.3 Adidas has products of diverse colour. 3.82 Q.4 The products of Adidas have good functional
quality.
3.87
Mean Average 3.86
Style Q.01 Adidas has different styles. 3.82 2
Q.02 Product styles of Adidas do suit me well. 3.85 Q.03 Product styles of Adidas have exclusive attributes. 3.75 Q.04 Product styles of Adidas are fashionable and trendy. 3.74
Mean Average 3.79
Brand Name
Q.01 Adidas is a well reputed brand. 3.75 3
Q.02 Brand Image of Adidas encourages me to purchase.
3.80
personality.
Mean Average 3.66
Store Environm ent
Q.01 Adidas stores located at convenience places. 3.72 4 Q.02 Outlets of Adidas are sufficient. 3.76 Q.03 Interior exhibit of Adidas stores are
nice-looking.
3.55
Q.04 music and Colour inside Adidas outlets are pretty.
3.45
Mean Average 3.62
Service Quality
Q.01 Salesperson in Adidas stores is trained well. 3.65 5 Q.02 Salesperson in Adidas stores is eager to help. 3.55 Q.03 Salesperson in Adidas stores is polite and
friendly.
3.52
Q.04 Salesperson in Adidas stores shows sober appearance.
3.48
Mean Average 3.55
Promotion Q.01 Advertisements of Adidas are attractive. 3.60 6 Q.02 Advertisements of Adidas promote me to
purchase.
3.55
Q.03 Window displays in Adidas stores are attractive. 3.45
Mean Average 3.53
Price Q.01 Increase of price does not obstruct me to purchase.
3.30 7
Q.02 Adidas provides superior value for money. 3.46
Mean Average 3.38
Cronbach’s Alpha
Cronbach’s Alpha (coefficient alpha = α) results of each variable are listed in of Table 2. The result of Alpha varies from 0 to 1 where 1 represents the highest internal reliability and 0 represents the lowest internal reliability. According to Garson (2002), standard Alpha score is 0.7 or above though some researchers consider 0.6 as standard score. After testing seven independent variables as factors of brand loyalty, this observed that all variables are resulted internally reliable and scored above standard of 0.7. This is also observed that components of all dimensions of brand loyalty resulted Alpha score of 0.7034 which is above the standard.
Table 4.3: Reliability Analysis (Cronbach’s Alpha) of Factor of Brand Loyalty
Independent Variables Alpha
Product Quality 0.7545 Style 0.7352 Brand name 0.7631 Store Environment 0.7389 Service Quality 0.7243 Promotion 0.7498 Price 0.7124 Brand Loyalty 0.7034 ANOVA
One-Way ANOVA is tested between the factors of brand loyalty and income level. This test is conducted with a view to finding out the significance of relationship between factors of brand loyalty and income level. Table 4 represent the results of ANOVA test between factors of brand loyalty and income level. Four variables are observed to result significant positive relationship with income level which are product quality (.008), brand name (.001), service quality (.009) and promotion (.005). The overall results represents that the UK customer consider quality of product, quality of service, brand name, and promotion as factors of brand loyalty in case of Adidas sportswear. The high income customers tend to get more loyal to Adidas brand compared to low income customers. This is also revealed that the UK customers behave similarly to Hong Kong customers in case of branded sportswear because they tendency to favour brand names in buying sportswear (Lau et al 2006; Yee & Sidek 2008).
Income Product Quality Style Brand Name Store Environ ment Service Quality Promo Price Sig. .008 .955 .001 .095 .009 .005 .246 Mean £10,000 and bellow 12.152 10.185 14.473 13.374 14.413 12.288 7.578 £10,001-15,000 14.472 11.930 15.700 14.423 15.726 13.368 8.332 £15,001-20000 15.584 12.523 16.800 15.478 16.589 14.832 9.567 £20,001-25,000 16.252 13.287 17.587 16.680 17.663 15.728 10.824 £25,001 and above 17.500 14.219 18.542 17.532 18.523 16.145 12.553
Another one way ANOVA is conducted between races and parameters of brand loyalty with a view to finding out significance of relationship between races and factors of brand loyalty. Result represents that only two variables, brand name (.005 and price (.000) are significant. The result reveals that the UK customers significantly consider brand name and price as factor of brand loyalty towards Adidas in relation to races (Emadzadeh & Derakhshide 2012). This also found that Indian and Chinese customers highly favour brand name of Adidas and UK and USA customers favour brand name of Adidas less compare to Indian and Chinese. Table 4.5 Races versus Factors of Brand Loyalty
Product Quality Style Brand Name Store Environment Service Quality Promo Price Sig. .625 .195 .005 .595 .124 .254 .000
British 17.337 18.783 17.670 15.920 15.742 12.284 9.563 Other European 16.987 17.112 17.450 15.754 13.422 11.883 9.354 Indian 16.039 16.189 16.163 14.764 14.520 10.868 7.627 Chinese 16.304 16.550 16.965 15.135 15.121 11.232 8.894 USA 18.162 19.889 18.285 16.374 15.926 12.957 9.823 Hypothesis Test
Table 6 represent the result of hypothesis test. The research results show that customers favour Adidas when they observe function or benefits derived from sportswear is positive and this satisfaction influence them to favour the brand (Emadzadeh & Derakhshide 2012). For measuring relationship between the brand loyalty diameters and brand loyalty, significance of relationship among them is measured. The correlation of r=0.302 is considered a reasonable correlation (Cohen 1988). The result shows high correlations among variables of brand loyalty and brand loyalty presented in Table 6.
Table 4.6 Significance of brand loyalty factors with brand loyalty
Variables Pearson Correlation Sig. (2-tailed)a
Product quality .701 .001 Style .538 .169 Brand name .602 .003 Store environment .785 .002 Service quality .631 .000 Promotion .788 .005 Price .856 .001
