Professional Documents
Culture Documents
Jeans?
Marketing Research
Submitted by:
Group 1 Section
3
FT173001 Aarsha
Nandakumar
FT173003 Abhinav
Bhatnagar
FT173010 Akshay
Natarajan
FT173011 Amar Karam
Chandani
FT173017 Anurag Singh
FT173023 Avasarala
Chaitanya
FT173031 Dipayan Kundu
Table of Contents
Acknowledgements................................................................................................ 2
Introduction........................................................................................................... 3
Literature Review................................................................................................... 4
Objective............................................................................................................ 4
Research Methodology........................................................................................... 5
Qualitative Research........................................................................................... 5
Findings........................................................................................................... 5
Hypotheses...................................................................................................... 6
Data and Methodology........................................................................................... 7
Data Reliability Analysis........................................................................................ 8
Descriptive Analysis......................................................................................... 13
Regression Analysis.......................................................................................... 14
Factor Analysis.................................................................................................. 18
Factor Analysis with Rotation............................................................................20
Regression Analysis on Reduced Factors.............................................................24
Recommendations............................................................................................... 26
Appendix A Survey Questionnaire.....................................................................27
References........................................................................................................... 28
1 | Page
Acknowledgements
Besides the members of our group, there have been a few individuals who
have been instrumental in supporting and ensuring that the project is
successful.
We would like to thank Professor Dr. S. Bharadhwaj (Chair Professor of
Marketing) for his guidance at every step during questionnaire formation,
data analysis and conceptual inputs.
We would like to express our sincere gratitude to all respondents for their
unwavering support, co-operation and precious inputs especially during
the primary data collection stages. Their creative inputs and opinions
were vital to our projects success.
2 | Page
Introduction
Consumers, especially the youth, in cities both the metros and mini
metros are increasingly accepting denim as a core apparel category to be
worn as an everyday casual garment. Denim Jeans has been playing a
dual role in India serving both as a major fashion trend and helping to
break down barriers since jeans are worn by consumers across all of the
countrys economic strata and in both urban and rural areas. In India
unbranded denim products dominate the market with around 60 percent
share of the market. The share of brands in denim market stands at 40
percent. Most of the unbranded players operate on the lower price
segment of the market where brand loyalty is low. The emergence of
semi-urban areas across the country has opened a plethora of
opportunities for brands. Our market research aims to identify what
factors drive consumer loyalty in jeans.
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Literature Review
Objective
Brand loyalty is a consumer-based construct that is determined both by
behavioral response and psychological perception in the current time
period, as well as in prior time periods (Dick and Basu, 1994). To gain
insights into the factors that drive brand loyalty in Jeans a literature
review was done and we got the following insights.
The paper The effects of advertising spending on brand loyalty in
services studied empirically the relationships between impact of
advertising spending, perceived quality on brand loyalty. This study shows
that even though advertising spending does not directly influence brand
loyalty, it indirectly affects brand loyalty via positively enhancing
satisfaction and perceived quality. Thus the study proposed that
advertisements should be focused on creating stronger associations of the
brand with positive quality themes would influence brand loyalty via
positive effects on perceived quality and satisfaction. Thus based on this
literature review Advertisements was identified as one of the plausible
contributors to brand loyalty. Furthermore perceived quality and
customer satisfaction were also identified as significant contributors.
Impact of price on brand loyalty sensitivity by Emmy, Hotnair and Trini
gives insights into how the attribute price can indeed be more important
on decision making than that of quality, brand name and others. The
paper postulates that buyers, generally, have a range of acceptable prices
for considered purchases. Thus, buyers may not purchase a product when
price is perceived to be too high, neither when price is perceived to be too
low. Price also pertains to how buyers view a products price, as high, low or fair,
which ultimately affects consumers willingness to buy the product (Ahmad &
Vays 2011). Since price is an important instrument in shaping the performance
and ultimate destiny of both the product as well as the company, it is logical to
expect a positive and predictive relationship between price and brand loyalty.
4 | Page
Research Methodology
Qualitative Research
For qualitative research, we conducted in depth interview of 10 people
and laddering with 5 people
Few of the questions that were asked during in depth interviews and
laddering included the following:
Findings
Our initial insight was that most of our respondents had their preferred
brand for Jeans. But some of them were willing to change based on quality
and fit offered. They were open to buying new brands if they were offering
better quality, price and was available nearby.
1. Most of the respondent decided to go with their preferred brand
because of better quality. Availability of different styles and fit were
also identified as the factors contributing to brand loyalty.
2. According to our discussions If there is any brand, that has all the
positive aspects of the previous brand and also it gains over the
negative aspects too, then there were many who would still stick to
their brand, however some were willing to switch if the other brand
was cheaper.
3. Many respondents said that they would accept recommendation
from friend/family members if they suggest any other brand.
4. Most of them will recommend the brand to your friends/family
members to buy by showing reviews and positive stories.
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Variables
1. Brand loyalty
This variable will measure the brand loyalty towards the brand of
jeans
Independent variables
1. Availability
This variable will measure the availability of the brand within the
store.
2. Advertising
Variable will be capturing the attitude of respondent to the
brands advertisements.
3. Price
This variable will measure the respondents attitude towards
price of his brand.
4. Perceived quality
Variable will be capturing the attitude of respondent to the
brands quality.
5. Others Influence
Variable will be measuring if others choice of brand is same as
the respondents
6. Lifestyle
The variable will measure the attitude of the respondent to
lifestyle that the brand represents.
7. Varieties/Type
Variable will be measuring the availability of variations within the
brand.
Control variables
1. Age
2. Income
3. Gender
Hypotheses
Based on the Dependent and Independent variables we were able to
formulate the following hypothesis.
H1: There is significant positive relationship between availability and
brand loyalty
H2: There is a significant positive relationship between Advertisements
of the brand and brand loyalty
H3: There is a positive relationship between price and brand loyalty
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H4: There is a
brand loyalty
H5: There is a
loyalty
H6: There is a
H7: There is a
7 | Page
1. Brand Loyalty:
The Cronbach alpha is .798 which means that data is highly reliable. Refer below
table for output:
Reliability Statistics
Cronbach's
Alpha
.798
N of Items
4
Item-Total Statistics
Scale Mean if
Item Deleted
Brand_Loyalty_1
8.97
Scale
Variance if
Item Deleted
6.486
Corrected
Item-Total
Correlation
.576
Cronbach's
Alpha if Item
Deleted
.763
Brand_Loyalty_2
8.79
6.443
.608
.749
Brand_Loyalty_3
9.74
6.076
.591
.758
Brand_Loyalty_4
9.44
5.879
.667
.718
2. Availability:
On including all the constructs from the questionnaire, the value of Cronbach
alpha was very low, in fact, negative.
Reliability Statistics
Cronbach's
Alpha
-.083
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N of Items
3
Item-Total Statistics
Availability_1
Corrected
Item-Total
Correlation
.263
Cronbach's
Alpha if Item
Deleted
-1.254a
Availability_2
5.93
1.080
.132
-.768a
Availability_3
6.92
2.855
-.401
.641
Item-Total Statistics
Availability_1
Availability_2
3.52
.896
.473
Cronbach's
Alpha if Item
Deleted
.
.
3. Advertisement:
The Cronbach alpha value for this set of scales under the category is 0.712 which
refers to significant set of data.
Reliability Statistics
Cronbach's
Alpha
.712
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N of Items
3
Item-Total Statistics
Scale Mean if Scale
Item Deleted Variance if
Item Deleted
Advertisement_1 7.04
1.525
Corrected
Item-Total
Correlation
.655
Cronbach's
Alpha if Item
Deleted
.452
Advertisement_2 6.93
2.114
.392
.777
Advertisement_3 7.19
1.773
.561
.583
However, upon removing scale 2, we get highly significant data with a Cronbach
alpha of .777. Hence, remove scale 2 and considers remaining two. Please refer
below screenshot for newer Cronbach alpha.
Reliability Statistics
Cronbach's
Alpha
.777
N of Items
2
Item-Total Statistics
Scale Mean if Scale
Corrected
Item Deleted Variance if
Item-Total
Item Deleted Correlation
Advertisement_1
3.39
.608
.637
Advertisement_3
3.54
.684
.637
Cronbach's
Alpha if Item
Deleted
.
.
4. Price:
The Cronbach alpha value for this set of scales under the category is 0.749 which
refers to significant set of data.
Reliability Statistics
Cronbach's
Alpha
.749
N of Items
2
Item-Total Statistics
Price_1
10 | P a g e
3.86
.777
.604
5. Quality:
The Cronbach alpha value for this set of scales under the category is 0.789 which
refers to significant set of data.
Reliability Statistics
Cronbach's
Alpha
.789
N of Items
3
Item-Total Statistics
Scale Mean if Scale Variance
Item Deleted if Item Deleted
Quality_1
7.93
1.364
Corrected
Item-Total
Correlation
.649
Cronbach's
Alpha if Item
Deleted
.698
Quality_2
7.76
1.707
.640
.711
Quality_3
8.01
1.592
.614
.729
N of Items
2
Item-Total Statistics
Scale Mean if Scale
Corrected
Item Deleted Variance if
Item-Total
Item Deleted Correlation
Other_Influence_1
2.78
.661
.657
Other_Influence_2
3.04
.906
.657
Cronbach's
Alpha if Item
Deleted
.
.
7. Lifestyle:
The Cronbach alpha value for this set of scales under the category is 0.754 which
refers to significant set of data.
11 | P a g e
N of Items
3
Item-Total Statistics
LifeStyle_1
Cronbach's
Alpha if Item
Deleted
.623
LifeStyle_2
6.34
3.081
.565
.692
LifeStyle_3
6.38
3.145
.560
.697
8. Type:
The Cronbach alpha value for this set of scales under the category is 0.749 which
refers to significant set of data.
Reliability Statistics
Cronbach's
Alpha
.749
N of Items
2
Item-Total Statistics
Scale Mean if
Item Deleted
Type_1
3.82
Type_2
4.12
.620
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Construct
Brand_Loyalty
Availability
Advertisement
Price
Quality
Other_Influence
Reliability
(Cronbach Alpha)
.798
.641
.777
.749
.789
.787
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LifeStyle
Type
.754
.749
Descriptive Analysis
The collected data under each construct is then used and mean value for all
scales under scale is used to determine the valued under that construct. The
calculated data can be summarized as:
Descriptive Statistics
N
Minimum Maximum
Mean
Std.
Deviation
Brand_Loyalty
153
1.00
5.00
3.0784
.80473
Availability
153
1.00
5.00
3.4575
.84477
Advertisement
153
1.00
5.00
3.4673
.72700
Price
153
1.00
5.00
3.7320
.84687
Quality
153
1.00
5.00
3.9521
.59286
Other_Influence
153
1.00
5.00
2.9085
.80385
LifeStyle
153
1.00
5.00
3.2004
.82570
Type
153
1.00
5.00
3.9739
.69725
Valid N (listwise)
153
Regression Analysis
Now, we perform regression on the data, in order to identify the major factor
which impacts brands loyalty and have a significant effect on it.
The output obtained after running regression on the data is:
Descriptive Statistics
Brand_Loyalty
Advertisement
Price
Quality
Other_Influence
LifeStyle
Type
Availability
14 | P a g e
Mean
Std. Deviation
3.0839
3.4671
3.7270
3.9539
2.9079
3.1952
3.9803
3.4605
.80455
.72940
.84735
.59437
.80647
.82586
.69502
.84674
152
152
152
152
152
152
152
152
Sig. (1tailed)
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Quality
Other_Influ
ence
Oth
er_I
nflu
enc
e
Life
Styl
e
Typ Avail
e
abilit
y
.425 .302
.450 .219
.239
.249 .164
.181 .224
.261
.328 .246
.280 .367
.169
1.000 .383
1.00
.383
0
.305 .423
.255
.291 .242
.147
LifeStyle
.305 .291
Type
.423 .242
Availability
.239 .261 .169
.255 .147
Brand_Loya
. .007 .000
.000 .000
lty
Advertisem
.007
. .143
.001 .022
ent
Price
.000 .143
.
.000 .001
Quality
.000 .001 .000
. .000
Other_Influ
.000 .022 .001
.000
.
ence
LifeStyle
.000 .013 .000
.000 .000
Type
.003 .003 .000
.000 .001
Availability
.001 .001 .018
.001 .035
Brand_Loya
152 152 152
152 152
lty
Advertisem
152 152 152
152 152
ent
Price
152 152 152
152 152
Quality
152 152 152
152 152
Other_Influ
152 152 152
152 152
ence
LifeStyle
152 152 152
152 152
Type
152 152 152
152 152
Availability
152 152 152
152 152
Variables Entered/Removed
1.00
.303 .028
0
1.00
.303
.238
0
.028 .238 1.000
.000 .003
.001
.013 .003
.001
.000 .000
.000 .000
.018
.001
.000 .001
.035
. .000
.000
.
.364 .002
.364
.002
.
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
152
Variables Entered
Model
Variables Removed
Availability, LifeStyle,
Advertisement, Price,
Other_Influence, Type,
Qualityb
Method
. Enter
R Square
Adjusted R
Square
.578a
.334
.301
.67247
Type, Quality
ANOVAa
Model
Sum of
Squares
df
Mean
Square
Sig.
Regression
32.625
4.661
10.306
.000b
Residual
65.118
144
.452
Total
97.743
151
Unstandardized
Coefficients
Standardiz
ed
Coefficient
s
Sig.
-.219
.827
Std. Error
(Constant)
-.100
.455
Advertisemen
t
.039
.080
.035
.479
.633
Price
.088
.072
.093
1.220
.224
Quality
.339
.111
.250
3.044
.003
Other_Influen
ce
.077
.076
.077
1.013
.313
LifeStyle
.332
.074
.341
4.505
.000
Type
-.100
.093
-.086
-1.079
.283
Availability
.143
.070
.150
2.050
.042
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Beta
Interpretation of Output:
First, we look at the Model Summary and read for R square. This R square, also,
known as coefficient of determination gives the measure of how close the data is
to the fitted regression line. For the dataset used, it is coming out to be .341.,
which is a decent measure for fitting the regression.
Now, we look at ANOVA table and look for significance, we can see that the
significance is coming out to be .000 at 95% confidence level. This mean that the
result is highly significant.
Now, using the regression table, we can infer that there are three factors which
are significant that contribute towards brand loyalty. These factors are LifeStyle,
Quality and Availabilty. They all have a significance level below 0.5. Using the
beta coefficients, we can say that:
Brand Loyalty = 0.341 x LifeStyle + 0.250 x Quality + 0.150 x Availability
Thus, by increasing one unit of Lifestyle, Brand Loyalty is increased by 0.341
units; by increasing one unit of Quality, Brand Loyalty is increased by 0.250 units
and by increasing one unit of Quality, Brand Loyalty is increased by 0.150 units.
Thus, they should be concentrating more on the higher segment of society. They
seem to be more loyal towards a particular brand. This should be followed by
concentrating on better quality of jeans. And at last, they should focus towards
the availability of jeans in the market. All the factors have positive impact
towards creating brand loyalty.
Factor Analysis
Factor analysis is a statistical method used to describe variability among
observed, correlated variables in terms of a potentially lower number of
unobserved variables called factors. Factor analysis searches for joint variations
in response to unobserved latent variables. The observed variables are modelled
as linear combinations of the potential factors, plus "error" terms. The
information gained about the interdependencies between observed variables can
be used later to reduce the set of variables in a dataset. This reduced set of
variables can be used for further analysis.
Our main motive here is to identify reduce multi-collinearity between the
Communalities
variables by combining them. The
output of running factor analysis in SPSS is
displayed below:
Initial Extracti
on
Advertiseme
1.000
nt
Compon
Initial Eigenvalues
Price
1.000
ent
Quality
1.000
Total
%
of
Cumulativ
Other_Influe
1.000
Variance
e%
nce
LifeStyle
1.000
Type
1.000
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Availability
1.000
Total Variance
.513
Explained
1
2
3
4
5
6
7
2.525
1.065
.862
.776
.635
.605
.531
36.073
15.221
12.316
11.085
9.071
8.649
7.585
36.073
51.294
63.611
74.695
83.767
92.415
100.000
2.525
1.065
Component Matrixa
Component
Advertisement
Price
Quality
Other_Influence
LifeStyle
Type
Availability
.468
.608
.742
.599
.577
.701
.450
.542
-.279
-.008
-.201
-.431
-.022
.683
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36.073
15.221
36.073
51.294
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Advertisemen
t
Price
Quality
Other_Influen
ce
LifeStyle
Type
Availability
Initial
Extracti
on
1.000
.513
1.000
1.000
.447
.551
1.000
.400
1.000
1.000
1.000
.519
.492
.668
Initial Eigenvalues
Extraction Sums of
Squared Loadings
Rotation Sums of
Squared Loadings
3
4
5
6
2.52
5
1.06
5
.862
.776
.635
.605
.531
1
2
63.611
74.695
83.767
92.415
100.00
0
20 | P a g e
Component Matrixa
Component
Advertisement
Price
Quality
Other_Influenc
e
LifeStyle
Type
Availability
.468
.608
.742
.542
-.279
-.008
.599
-.201
.577
.701
.450
-.431
-.022
.683
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.137
.666
.648
.703
.059
.362
.620
.123
.715
.619
.051
-.088
.329
.816
.868
-.497
.497
.868
22 | P a g e
2. Quality
3. Other_Influence
4. LifeStyle
5. Type
On the basis of the identified characters, we can rename newly created factor 1
as Personal factors
For factor 2, contributing factors are:
1. Availability
2. Advertisement.
On the basis of the identified characters, we can rename the 2 nd newly created
factor as Promotion factors
These two factor can be further used for analysis and regression can be done for
these factors in order to identify the major contributors to the brand loyalty.
23 | P a g e
Mean
Std. Deviation
3.0839
0E-7
0E-7
.80455
1.00000000
1.00000000
152
152
152
Correlations
Personal Factor
Promotion
Factor
.000
Pearson Correlation
Personal Factor
Sig. (2-tailed)
1.000
N
Pearson Correlation
Promotion Factor
152
.000
Sig. (2-tailed)
152
1
1.000
152
152
Variables Entered/Removeda
Model
Variables Entered
Variables Removed
Personal_Factors,
Promotion_Factorsb
Method
. Enter
Model
R Square
.513a
Adjusted R
Square
.263
.253
.69517
Sum of
Squares
Df
Mean
Square
Regression
25.736
12.868
Residual
72.007
149
.483
Total
97.743
151
24 | P a g e
F
26.627
Sig.
.000b
25 | P a g e
Standardize
d
Coefficients
Sig.
54.692
.000
Std. Error
3.084
.056
Personal_Facto
rs
.382
.057
.475
6.755
.000
Promotion_Fact
ors
.156
.057
.194
2.762
.006
(Constant)
1
Unstandardized
Coefficients
Beta
26 | P a g e
Conclusion
Using Regression Analysis, we can conclude that for increasing brand loyalty, the
management should concentrate on improving should concentrate more on Life
Style followed by that on increasing Quality. Both of the two factors are, almost,
equally contributing towards the creating loyalty towards a brand.
Also, they should work towards availability if the product in the segment they are
targeting. This is one of the driving force. If the product is not available, they will
shift to another product.
We would recommend that for increasing Brand Loyalty, Management should
focus on increasing Personal Factors more rather than concentrating on
Promotional Factors as it is driving the brand loyalty towards the jeans. It is the
personal Experience of the Jeans that has driven its sales and brand loyalty
towards a particular brand.
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References
Dick, A.S. and Basu, K. (1994), Customer loyalty: toward on integrated
conceptual framework, Journal of the Academy of Marketing Science, Vol.
22 No. 2, pp. 99-113.
Hong-Youl Ha Joby John Swinder Janda Siva Muthaly, (2011),"The effects of
advertising spending on brand loyalty in services", European Journal of
Marketing, Vol. 45 Iss 4 pp. 673 691
Indrayani Emmy, Hotniar Siringoringo, Trini Saptariani, (2008), 'Impact of
Price On Brand Loyalty Sensitivity', Delhi Business Review X Vol. 9, No. 2,
pp. 17-25
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