The Brand Loyalty of Sportswear in Hong Kong

Volume 5, Issue 1, Winter 2006

The Brand Loyalty of Sportswear in Hong Kong

Mei-mei Lau, Ph.D. Student, Institute of Textiles and Clothing, The Hong Kong Polytechnic University. [email protected] Man-tsun Chang, Assistant Professor, Institute of Textiles and Clothing, The Hong Kong Polytechnic University. [email protected] Ka-leung Moon, Assistant Professor Institute of Textiles and Clothing, The Hong Kong Polytechnic University. [email protected] Wing-sun Liu, Lecturer, Institute of Textiles and Clothing, The Hong Kong Polytechnic University. [email protected]

ABSTRACT

This paper reports the results of brand loyalty of 280 university students, aged from 18 to 24 years old. This study explores brand loyalty behavior on sportswear and examines key brand loyalty factors: brand name, product quality, price, style, store environment, promotion, and service quality. Consumers are classified into two categories by their degree on brand loyalty: hard-core loyal consumers and brand switchers. The study concludes that brand name, style, and promotion are the key brand factors which can distinguish hard-core loyal consumers and brand switchers. Brand name and style have more influence on the brand loyalty of hard-core loyal consumers, while promotion influences more on that of brand switchers. Product quality is perceived by both groups as the most important factor affecting their brand loyalty.

Keywords: Brand Loyalty, Hard-core Loyalty, Brand Switching, Sportswear Market

Introduction spring/summer 1999 (Dusi, 1999). As a consequence, different line of fashionable The market trend for wearing sportswear targeting the youth market has sportswear is particularly emerging in Hong been successfully launched by Adidas, a Kong. Nowadays, sportswear becomes a traditional sporting goods company, teaming common and popular category as it gives up with a well-known fashion designer – young people a more relaxed lifestyle and Yohji Yamamoto (HKTDC, 2004). greater versatility and comfort. Consumers wear athletic apparel not only in sports In the West, brand loyalty is activities, but also at home, in school, at recognized as an asset and consumers are work, or at leisure time. Moreover, there is a willing to pay more for a brand (Wernerfelt, prominent trend in the sportswear industry, 1991). However, there are fewer but more for which the casual design and athletic powerful retailers in the sportswear market, design is converging. Sports lovers combine so the competition is fierce in the sportswear their sports activities with leisurewear in market. Well-established brand names order to look smart and fashionable when continue to contribute investment and time they do exercise. A positive trend is in upholding brand identity, preserving confirmed in Italy on sales of sportswear for brand loyalty and developing new sports Article Designation: Refereed 1 JTATM Volume 5, Issue 1,Winter 2006 product lines so as to occupy more market 1969; Huang and Yu, 1999; Lee et al., 2001; share. Marketing managers realize the rising Wood, 2004; Yim & Kannan, 1999). It is “a trends of brand switching and recognize deeply held commitment to re-buy or re- customer retention as an easier and more patronize a preferred product/service reliable source of superior performance consistently in the future, thereby causing (Reichheld & Sasser, 1990). Therefore, it is repetitive same-brand or same brand-set important for marketers to acquire more purchasing, despite situational influences knowledge in brand loyalty. and marketing efforts having the potential to cause switching behavior” (Oliver, 1999, p. Much of the previous research has 34). Thus, brand loyalty has a well-known focused on the distinction between spurious financial payoff. Loyal consumers only and true loyalty (Bloemer & Kasper, 1995); repurchase the same brand over time even relationship among service quality, there is an alternative brand in the market, consumer satisfaction and store loyalty and eventually loyalty can be measured by (Sivadas & Baker-Prewitt, 2000); purchase the commitment to repurchase in terms of patterns (Lawrence, 1969); or characteristics products and services (Ryan et al., 1999). of consumers based on buying behavior, self-image, and demographics, and multi- Furthermore, four categories of brand buying (Ehrenberg & Goodhardt, consumers can be distinguished according to 1970). Research using factors on brand brand loyalty: hard-core loyal consumers, loyalty to distinguish hard-core loyal brand switchers, new users, and non-users consumers and brand switchers has not yet (Evans et al., 1996). Non-users tend not to been explored. Thus, the aim of this research be loyal to any brand and as for new users, is to distinguish brand loyal consumers and they are not so familiar with any brand at all. brand switchers in the Hong Kong youth These two categories are not to be the main sportswear market. From this study, we can focus in this study and therefore they will be provide useful information to brand excluded in this research study. Only hard- companies for developing their competitive core consumers and brand switchers will be branding strategies. focused in this study. Marketers often pay attention to identify the characteristics of This paper has four sections. First, we brand-loyal consumers and the degree of depict a theoretical background of brand brand loyalty of consumers so that they can loyalty, its factors, and put forth a directly and effectively focus their conceptual model to demonstrate marketing and promotional strategies on relationships of the variables. Then, we these consumers who share similar describe our research hypotheses, characteristics among the large population. methodology on research instrument design A consumer repeatedly purchases a and data collection. A survey questionnaire particular brand regardless the premium is administered to collect data from price of that brand has charged, is university students. Subsequently, we base considered as hard-core loyal consumers on our findings to classify respondents into (Evans et al., 1996). This loyalty involves hard-core loyal consumers and brand the last stage of purchase, in which switchers, and to distinguish consumers by consumers do not accept substitutes if they different factors of brand loyalty. Finally, have approached the brand (Copeland, we conclude with a discussion of our 1923). Price variations for consumers’ recommendation on strategies for sportswear favorite brand may only affect their marketers and future research directions. purchase quantity but not their brand choice decision. They stick with the brand rather Literature Review and Conceptual Model than switch. Thus, these loyal consumers do Brand Loyalty not need frequent advertising or price promotions to remind them (Yim & Kannan, Brand loyalty is an important concept 1999). in understanding consumer behavior (Day, Article Designation: Refereed 2 JTATM Volume 5, Issue 1,Winter 2006

On the other hand, one single brand This is important when those brands have does not necessarily satisfy all consumers’ only minor physical differences and are needs, so certain consumers tend to buy consumed in a social setting where the brand other brands as well. Brand switchers refer can make a visible image about the to consumers who use two or more brands consumer itself. On the other hand, fashion when a single brand does not satisfy all their magazines and fashion press elaborate on needs (Evans et al., 1996). Brand switching the designer’s collections to the full extent may occur in case of new product and thus reinforce better images to facilitate introduction and dissatisfaction on usual consumer recognition (Colborne, 1996). brand. Consumers can find a substitute brand that can fulfill their needs. Some Product Quality. Consumers may marketers will target on brand switchers repeat purchase the single brand or switch because they think that brand switchers have around several brands due to the tangible higher market potential (Schiffman & quality of the product sold. The components Kanuk, 2000). of product quality of fashion merchandise include size measurement, cutting or fitting, Factors of Brand Loyalty materia l, color, function, and the performance of merchandise. Fitting is a To create brand loyal consumers and to crucial aspect in garment selection because retain them, it is essential to understand the some fitted garments such as swimming major factors that influence brand loyalty suits and aerobic wear can ideally enhance among them. This study focuses on the six consumers’ general appearance (Frings, brand loyalty factors: brand name (Aaker, 2005). Material is important in product 1996; Cadogan & Foster, 2000; Jacoby & quality because it affects the hand feel, Chestnut, 1978), product quality (Frings, texture and other performance of the 2005; Garvin, 1988; McCormick & Scorpio, product. Also, consumers relate personally 2000) , price (Cadogan & Foster, 2000; Ryan to color, and usually select or reject a et al., 1999), style (Abraham & Littrell, fashion because the color does or does not 1995; May, 1971), store environment (Evans appeal to them or flatter their own coloring et al., 1996; Milliman, 1982), promotion (Frings, 2005). In addition, technologically (Czerniawski & Maloney, 1999; Evans et advanced and functional garments are al., 1996; May, 1971) , and service quality growing in demand (McCormick & Scorpio, (Mittal & Lassar, 1996). 2000) , so modern technology in terms of fabric function plays an important role in Brand Name. Famous brand name can sportswear market where new fabrics and disseminate product benefit and lead to applications are used to complement styles higher recall of an advertised benefit than a (HKTDC, 2004). Functional attributes in non-famous brand name (Keller et al., sportswear include quick-dry, breathable, 1998). There are many unfamiliar brand waterproof, odor-resistant, lightweight, names and alternatives available in the and/or, antimicrobial. Finally, durability is market place. Consumers may prefer to trust the use life of the garments. For instance, major famous brand names. Hard-core loyal some consumers wear their sportswear for consumers trust their favorite brand names heavy work and some for leisure and sports, and consistently repurchase these brands. so they need a lot of movement, and Those prestigious brand names and their durability becomes an important images attract consumers to purchase the consideration in purchasing sportswear brand (Aaker, 1996), affect repeat (Garvin, 1988). purchasing behavior, and reduce price related switching behaviors (Cadogan & Price. Price is probably the most Foster, 2000; Czerniawski & Maloney, important consideration for the average 1999). On the other hand, brand personality consumers. Price serves as the strongest provides links to the brand’s emotional and loyalty driver (Ryan et al., 1999). self-expressive benefits for differentiation. Consumers with high brand loyalty are less Article Designation: Refereed 3 JTATM Volume 5, Issue 1,Winter 2006 price sensitive (Cadogan & Foster, 2000). satisfied with the store’s assortment and Purchase intention of consumers cannot be services, these consumers may become loyal easily affected by price if they have built afterwards (Evans et al., 1996). Thus, store brand loyalty into the brand. These atmosphere is one of the factors involved in consumers are willing to pay a premium consumer decision making. The stimuli in price for their favored brand. In addition, store, such as the characteristics of other they may have strong beliefs in price and shoppers and salespeople , store layout, value of their favorite brands so that they noises, smells, temperature, shelf space and can compare and evaluate price with displays, signs, colors, and merchandise, alternative brands (Evans et al., 1996; affect consumers and serve as elements of Keller, 1998). Consumers’ satisfaction can apparel attributes (Abraham & Littrell, also be built by comparing price with 1995) , which may in turn, affect consumer perceived costs and values. If the perceived decision making and satisfaction towards the values of the product are greater than cost, brand (Evans et al., 1996; Greenberg et al., consumers will purchase that product. 1983). In-store stimuli also influence the degree of how long consumers stay in the Style. Style is a visual appearance, store, how many products consumers come which includes line, silhouette, and details into visual contact with, and what routes affecting consumer perception towards a consumers travel within the store (Evans et brand (Frings, 2005). According to Abraham al., 1996). On the other hand, music played and Littrell (1995), a composite list of in the background of the stores affects apparel attributes has been generated and attitudes and behavior (Milliman, 1982). one of the conceptual categor ies is style. The slow-beat musical selections leads to Consumers’ judgment depends on the higher sales volumes as consumers spend consumers’ level of fashion consciousness, more time and money. so judgment will be conditioned by their opinion of what is currently fashionable. Promotion. Promotion is a component Brands that supplied stylish sportswear in marketing mix which is a kind of attract loyal consumers who are fashion communication with consumers. Promotion conscious. Fashion leaders or followers includes the use of advertising, sales usually purchase or continually repeat promotions, personal selling and publicity. purchasing their fashion garments in stores Advertising is a non-personal presentation that are highly fashionable. They gain of information in mass media about a satisfaction of wearing the latest fashion and product, brand, company or store. It greatly style which can also fulfill their ego needs. affects consumers’ images, beliefs, and Duff (1999), who investigated the niche attitudes towards products and brands, and market in women’s sportswear, found that in turn, influences their purchase behavior sportswear shoppers were becoming more (Evans et al., 1996). Advertisements can fashion conscious and were demanding help establishing ideas or perceptions into products with more style. As a result, consumers’ minds, and differentiating consumers tend to prefer those items that products against other brands. Thus, good they can wear on different occasions or for advertisements can attract brand switchers different social situations. and create brand loyalty. Moreover, effective communication can persuade and Store Environment. Retail stores are motivate consumers to think about and even relatively closed environments. Positive take action to purchase the product the attributes of the store, which include store advertisement promoted (Czerniawski & location, store layout, and in-store stimuli, Maloney, 1999). Brand switchers may turn affect brand loyalty to some extent. Store into loyal consumers towards the brand. location and number of outlets are crucial in Eventually the success comes when the altering consumer shopping and purchasing marketer employs effective promotion patterns. If consumers are highly accessible strategies. to stores during their shopping trip and are Article Designation: Refereed 4 JTATM Volume 5, Issue 1,Winter 2006

Service Quality. Service quality is a responsiveness, personalization, and kind of personal selling, and involves direct tangibles) significantly influences consumer interactions between a salesperson and a experience and evaluation of service, in turn, potential buyer. Consumers shopped at affect the brand loyalty of consumers (Mittal specific stores because they like the service & Lassar, 1996; To & Leung, 2001). provided and they are assured of certain service privileges. Salesperson performances The Model Used in This Research Study stimulate bonding through trust among sales representatives and consumers, and will Reviewing the extant literature on affect consumers’ perception towards the brand loyalty, a research model was stores or brand (Cadogan & Foster, 2000; constructed to better explain on the two Leung & To, 2001). The impacts of major consumer types. The two different salesperson-consumer relationships will consumer types will have different generally result in long-term orientation of perceptions towards the factors of brand consumers towards the store or brand. Trust loyalty. When consumers are satisfied by the in salespersons appears to relate to overall aforesaid factors that affect their brand perceptions of the store’s service quality, loyalty, brand loyalty will be reinforced. and results in consumer total satisfaction Figure 1 displays the model used in this with the stores at the end. Additionally, research study. personalization (i.e. reliability, Different perceptions towards factors of brand loyalty Consumer types 1. Brand name 1. Hard-core loyal 2. Product quality consumers 3. Price 2. Brand switchers 4. Style 5. Store environment 6. Promotion 7. Service quality

Figure 1. Research Model of Brand Loyalty and Consumer Types

Research Methodology H3: Hard-core loyal consumers and brand switchers have different perceptions Hypotheses towards price. H4: Hard-core loyal consumers and brand The current study was a preliminary switchers have different perceptions investigation in the brand loyalty in Hong towards style. Kong sportswear market. The main aim is to H5: Hard-core loyal consumers and brand find out the different perceptions on the switchers have different perceptions brand loyalty factors between hard-core towards store environment. loyal consumers and brand switchers. Based H6: Hard-core loyal consumers and brand on the aforesaid literature review and switchers have different perceptions conceptual model, seven hypotheses were towards promotion. developed: H7: Hard-core loyal consumers and brand H1: Hard-core loyal consumers and brand switchers have different perceptions switchers have different perceptions towards towards service quality. brand name. H2: Hard-core loyal consumers and brand Sampling and Data Collection switchers have different perceptions towards product quality. A pilot study using in-depth interviews was conducted with 20 university students, Article Designation: Refereed 5 JTATM Volume 5, Issue 1,Winter 2006 who were aged from 18 to 24 years old. The purpose of this pilot study was to gather Brand Loyalty . In the questionnaire, a information about the usual brands that screening question was asked to find out the students were loyal to, and factors affecting respondents who had purchased sportswear brand loyalty which were useful in during the past year. Respondents who constructing the questionnaire. Results answered “no” were considered as non-users showed that brands that students usually and thus they were excluded in this study. purchased are Nike, Reebok, Fila, and Direct question about loyalty (i.e. Are you Adidas. According to the respondents, especially loyal to a brand?) allowed factors that affecting brand loyalty included marketers to segment consumers into hard- brand name, product quality, price, style, core loyal consumers or brand switchers. store environment, promotion, and service Respondents were then classified into hard- quality. Subsequently, we conducted a core loyal consumers and brand switchers pretest questionnaire survey in university based on this question. Next question asking campus. On the basis of the experiences respondents to list out the brands of 5 items with this pretest, the questionnaire was of sportswear they purchased lately was modified. used to identify whether respondents were really loyal to their favorite brands. A self-administered questionnaire was Respondents who bought only one brand directly distributed to 290 university were considered as new users. students aged from 18 to 24 years old. The survey was conducted in the canteens of a Factors of Brand Loyalty. In this part, university in Hong Kong through a respondents were asked to evaluate the convenience, non-probability sampling importance of the factors of brand loyalty method. We chose this age group because towards their favorite brands. The students from higher education are statements of the seven factors were adapted perceived as reasonable surrogate for the from previous research: brand name, product population of 18 to 24 years old (Wood, quality, price, style, store environment, 2004). Finally, 280 students accepted the promotion, and service quality. Five-point participation of interviews. The completed Likert scale questions were developed to questionnaires were used for this analysis. indicate respondents’ degree of agreement on each of the statement (1 = strongly Questionnaire disagree; 5 = strongly agree). Then, the data were analyzed using frequency, The final questionnaire was developed independent-samples t-test, and discriminant and modified based on the pilot test. It analysis. includes two parts and the statements are shown in Table I.

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Table I Research Instrument Questions Scale

Screening question Have you purchased any sportswear during the past year? Close-ended question Brand loyalty (Aaker, 1996) Are you especially loyal to a brand of sportswear? Close-ended question Which brand of sportswear in the following list do you prefer most? Close-ended question a) Nike b) Reebok c) Fila d) Adidas Please list the brands of 5 items of sportswear you purchased lately. Open-ended question Factors of brand loyalty Please indicate your level of agreement with the statements that best describe your feeling toward your favorite brand by circling the number (Note: 1=Strongly disagree; 5=Strongly Agree). Brand name (Aaker, 1996; Cadogan & Foster, 2000; Jacoby & Chestnut, 1978): Five-point Likert scale a) The brand is reputable. b) The prestigious brand name and image attract me to purchase from the brand. c) The brand name is selected regardless of price. d) The brand reflects my own personality. Product quality (Frings, 2005; Garvin, 1988; McCormick & Scorpio, 2000): Five-point Likert scale a) The size measurement of the sportswear fits me very much. b) The materials used by the brand of sportswear are comfortable. c) The brand has sufficient color choice of sportswear I need. d) Sportswear of the brand has good functional quality (e.g. breathable, waterproof, odor-resistant, light weight). e) Sportswear of the brand is durable. Price (Cadogan & Foster, 2000): Five-point Likert scale a) The increased price would not hinder my purchase intention. b) The brand provides good value for money. Style (Abraham & Littrell, 1995; May, 1971): Five-point Likert scale a) The brand of sportswear provides wide variety of styles for me to choose. b) Styles of the brand of sportswear are suitable for me. c) Styles of the brand of sportswear have distinctive features. d) Styles of the brand of sportswear are trendy and fashionable Store environment (Evans et al., 1996; Milliman, 1982): Five-point Likert scale a) The brand has good store locations and easy to access. b) The brand has sufficient outlets. c) The interior display of the brand is attractive. d) Color and music inside the stores are attractive and comfortable. Promotion (Czerniawski & Maloney, 1999; Evans et al., 1996; May, 1971): Five-point Likert scale a) Advertisements of the brand are attractive. b) Advertisements of the brand attract me to purchase more frequently. c) Window displays of the stores are attractive. Service quality (Mittal & Lassar, 1996): Five-point Likert scale a) Salespersons of the stores are well-trained and knowledgeable. b) Salespersons of the stores are willing to help me. c) Salespersons of the stores are friendly and courteous. d) Salespersons of the stores have neat appearance.

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Results and Discussion were examined by using discriminant analysis. Discriminant analysis was used to Classification result of hard-core loyal examine which factors can distinguish the consumers and brand switchers two groups of consumers (Kinnear & Gray, 2000). Then, independent-samples t-test was The sample was classified into hard- used to verify the findings obtained from core loyal consumers and brand switchers discriminant analysis. according to the question of “Are you especially loyal to a brand of sportswear?”. Stepwise discriminant analysis was Large majority of the respondents were used in this study to produce a linear brand switchers (80.7%) and the rest of them function that can distinguish between two are hard-core loyal consumers (19.3%). groups. It was performed by adding and Classification results of a discriminant subtracting factors using the statistics of analysis later in this study indicated that Wilks’ Lambda and the remaining factors 68.6% of respondents were correctly used in the discriminant function. All the classified into two groups: hard-core loyal variables were highly significant at the level consumers were accurately classified the of p < 0.001. The findings showed that the case as 64.8%, while brand switchers were discriminant function was highly significant accurately classified as 69.5%. They were (p = 0.000). Then, the independent variables both larger than 50%, and they were said to were screened by the stepwise procedure, be accurately classified. It is reasonable that and three variables were significant to be the majority of the respondents are classified included in the function. The discriminant as brand switchers because there are little loadings were reported under structure loyal consumers in the market. Since brand matrix and factors included were ranked switchers use two or more brands and are from highest to lowest by the size of the willing to buy new brands, they contribute to loading – indicating their discriminant a higher market potential for new brands or power. It was clear that the function was new market entrants. based on hard-core loyal consumers’ interpretation of their favorite sportswear Factors of Brand Loyalty brands in terms of brand name, style, product quality, price, store environment, In the following part, the difference of salesperson, and inversely on promotion. each factor of brand loyalty between hard- Table II shows the structure matrix of hard- core loyal consumers and brand switchers core loyal consumers.

Table II Structure Matrix on Hard-core Loyal Consumers Function

Brand name .710 Product quality .332 Price .190 Style .410 Store environment .130 Promotion -.381 Service quality .021 Note: Pooled within-group correlation between discriminating variables and standardized canonical discriminant functions. Variables ordered by absolute size of correlation within function.

The standardized canonical is used to indicate the relative importance of discriminant function coefficients (Table III) the independent variables (the seven factors showed three predictor variables were of brand loyalty) in predicting the dependent significant discriminators. The standardized variable (brand loyalty of hard-core loyal canonical discriminant function coefficient consumers and brand switchers). From the Article Designation: Refereed 8 JTATM Volume 5, Issue 1,Winter 2006 discriminant function, three brand loyalty largest contribution to the discriminant factors had the most discriminating power to function. Its coefficient was 0.789 and distinguish consumers who purchased represented the most powerful sportswear. They are brand name, style, and discriminating power for two groups of promotion. The higher the coefficient consumers. Promotion and style had less means, the higher the discriminating power discriminating power with the coefficient of to discriminate two groups of consumers -0.682 and 0.44 respectively. (Hair et al., 1998). Brand name made the

Table III The Standardized Canonical Discriminant Function Coefficients of Two Groups According to the Discriminating Factors Standardized canonical discriminant function coefficients Brand name .789 Style .440 Promotion -.682

Independent-samples t-test was used to switchers on brand name, style, and examine the difference between means of promotion (p < 0.05). brand loyalty of hard-core loyal consumers and brand switchers, and used to statistically Therefore, based on the results from test whether there are significant differences both independent-samples t-tests and between these two groups of consumers. In discriminant analysis, hypotheses 1, 4 and 6 this part, this test is used to confirm the were supported. There are difference in findings obtained from discriminant brand name, style and promotion affecting analysis. In Table IV, the t value showed brand loyalty between the two groups of that there is significant difference between consumers. Hypotheses 2, 3, 5, and 7 were hard-core loyal consumers and brand rejected.

Table IV Factors of Brand Loyalty between Hard-core Loyal Consumers and Brand Switchers Group means t-value Hard-core loyal Brand switchers consumers

Brand name 3.50 3.22 -.3856** Product quality 3.77 3.75 -.180 Price 3.06 2.96 -1.053 Style 3.62 3.46 -2.225* Store environment 3.30 3.25 -.621 Promotion 2.08 2.20 2.068* Service quality 3.52 3.47 -.603 Note: ** p < 0.01, * p < 0.05

On the other hand, Table IV showed Only promotion has the higher means for that two of the three variables, brand name brand switchers. and style have higher means for hard-core loyal consumers. This suggests that they As hard-core loyal consumers were have more influence on the brand loyalty. loyal to a particular brand, it is meaningful that they were greatly influenced by the

Article Designation: Refereed 9 JTATM Volume 5, Issue 1,Winter 2006 brand name. They were satisfied with the towards their favorite brands. However, reputation of the brand. They might hard-core loyal consumers do not need probably think that their personality fit with frequent advertising or price promotions. brand personality. The brand was selected They do not easily switch to alternative regardless the increase in price, so this is a brand because of promotion by other brands. true loyalty. Furthermore, the higher group means of style of hard-core loyal consumers To sum up, the main difference of indicated their better perceptions with the brand loyalty factors between hard-core wide variety of styles of their favorite loyal consumers and brand switchers are sportswear brands. This also indicated that brand name, style and promotion. The main the styles suit them very much. The styles of concern for hard-core loyal consumers is the brand had distinctive features and were brand name and style, while promotion is trendy and fashionable. These requirements more important to brand switchers. were consistent with the findings from previous research done by Li et al. (1995). Conclusions and Implications Their research found that athletes wanted styles to be both nice-looking and Managerial Aspects functional. The research also discovered that the requirements of the style of sportswear Consumers from ‘late teens’ and ‘early should be nice-looking, innovative, twenties’ have the highest interest in diversified and fashionable (Li et al., 1995). clothing. They are also the big spenders in These factors affect consumers to build up the sporting goods market. They are in the their brand loyalty towards their favorite period of expressing individuality and sportswear brands. beauty and wear up-to-date and trendy apparel. They dispose their old style apparel The difference of group means on frequently and results in frequent wardrobe promotion between hard-core loyal replacement. This period represents a consumers and brand switchers indicates the change in lifestyle and represents a phase of importance of promotion to brand switchers. new wardrobe demands. As they have high Previous research selected jeans for interest in personal appearance, they tend to measuring brand loyalty also shows that have greater clothing expenditure. quality, price, and promotion are the Nevertheless, the large majority of the variables for respondents to purchase this respondents aged from 18 to 24 years old are product category (Wood, 2004). The brand switchers. This can be explained by average group means on promotion of brand previous researches that this age group is switchers is larger compared with hard-core widely determined as low loyal when loyal consumers. The larger the average compared with other age groups (Day, 1969; group means, the more importance of the East et al., 1995; Uncles & Ehrenberg, 1990; factor. Brand switchers, especially women Wood, 2004). Therefore, marketers have to are the most impulsive about shopping and concentrate their efforts and resources on the least organized (Levy & Rook, 1999). this consumer segment, such as introducing Brand switchers are also relatively receptive new lines of fashion sportswear to target the to advertising that is strongly visual in youth market (HKTDC, 2004). character, shows activity, and impressions of energy. Brand switchers react to On the other hand, creating brand lo yal promotional advertising, coupons and consumers is difficult. Marketers need to special inducements more than hard-core continually improve their marketing loyal consumers. Promotion by other brands programs to attract and retain consumers. As could affect brand switchers’ purchase competition in the market place is getting decision. This induces the action of brand increased, consumers are supplied with switching among brands. Therefore, information on different brands. Thus, effective promotion of other brands would important views between “making more affect the brand loyalty of brand switchers consumer satisfied” and “making specific Article Designation: Refereed 10 JTATM Volume 5, Issue 1,Winter 2006 groups of consumers more satisfied” raised. sponsorship by brands such as the NBA and Making specific groups of consumers more Olympic games can create brand exposure in satisfied is more significant related to the market (Aaker & Joachimsthaler, 2000). company’s profitability level. Therefore, The cost of a sponsorship can be justified marketers now focus on brand switching solely by the brand name exposure achieved behavior in the market place. As a result, through event publicity. In addition, they concentrate on gaining knowledge in innovation remains as a key promotion factors that can affect consumers to become strategy for sportswear brands. Innovation and remain loyal to their own brands. Loyal concerns the functional ability of sportswear consumers may be willing to pay more for a in terms of absorbency, softness, air- brand. Consequently, branding gives permeability, and movement-matching style marketers an opportunity to develop and (Li et al., 1995). The promotion of maintain a loyal and profitable consumer innovative products can help attracting base (Reichheld & Sasser, 1990). It is consumers’ attention towards the brands. important that a sportswear company Consumers often read handtags to assist promises to consistently deliver specific sets their purchase decisions of sportswear and of features, benefits and services to its consumers are demanding technically and consumers (Kotler, 1994). functionally innovative sportswear. Therefore, promotion of superior functional Furthermore, marketers have to launch benefits of products can be used to draw the consumer retention program because the attention of brand switchers. cost of consumer retention is five times less expensive than the cost of recruiting a new Research Aspects customer (Gould, 1995; Reichheld & Sasser, 1990). There are three main benefits of This is an exploratory study of brand consumer retention: costs of consumer loyalty in Hong Kong sportswear industry, acquisition are reduced, higher margin are an area which could potentially contribute to gained as long lasting consumers are less marketing theory. Some suggestions are price sensitive, and sales are raised because made for future research. While university consumers buy more products from the students could represent the age group of 18 company they are loyal to. Instead of to 24 years old, future work is needed to attracting new consumers, companies would conduct on non-student population to like do more business with consumers in identify any differences. More, future order to retain current consumers and build research can be administered on how each up long-lasting consumer relationship. Thus, brand loyalty factors influence a consumer’s brand loyalty programs are designed to turn loyalty towards other product categories, one time buyers into buyers that will such as coffee, soap, toothpaste, and purchase the product again. detergents (Ehrenberg & Goodhardt, 1970; Wood, 2004). Finally, future research efforts Moreover, after analyzing the data, it could tackle questions related to additional was found that promotion is the most factors that would encourage consumers to efficient strategy in attracting brand recommend a product or service to others. switchers. In the sportswear market, Such factors might include other forms of promotion tends to reinforce brand switchers marketing communication, and loyalty to develop more solid brand loyalty towards programs that encourage consumer to sign sportswear. Youngsters follow the moves of up friends or at least promote the product or their favorite sport celebrities, so they buy service in question through favorable word- the same brand used by sport idols. Sporting of-mouth. goods companies promote their brand images by spending huge amount of money in sponsoring major sports events and individual sports celebrities in Hong Kong (HKTDC, 2004). Moreover, using Article Designation: Refereed 11 JTATM Volume 5, Issue 1,Winter 2006

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