CHAPTER 1: INTRODUCTION

1.1 LOYALTY TOWARDS FAST FASHION STORES AMONG UNDERGRADUATES

Fast fashion brings the definition of quick response with latest styles in fashion world. It is
a low-cost fashion that imitate the luxury fashion. Perception of luxury fashion is having a
high quality clothes with expensive price. Due to expensive price, the clothes are not fully
sale so there will be clearance sale in the end of the season. Those who cannot afford have to
wait until the end of the season to get the clearance stock with lower price. The rapid
development of technologies spread information on fashion which change the consumer
lifestyle and increase demands in fast fashion. The retailers and suppliers realizes they need
to have quick response towards consumers behaviors in fashion. Undergraduate is a student
who studying for the first degree which is usually a teenager. Fast fashion make them look
trendy while saving money. The loyalty toward fast fashion store can be derived from stores
environment. A good environment of a store build a good image of fast fashion brand.
Positive and strong image of fast fashion store is one of the fundamental requirement to build
undergraduates loyalty towards the fast fashion store. If a store manage to create a good
environment which will derive a good image of fast fashion store and attract customers
including build loyal towards the store, they already successful in store differentiation. Most
of the stores that can do store differentiation is a quality store. This research is conducted to
observed the designed strategies used in attracting undergraduates towards the fast fashion
stores and consumer involvement in shopping, purchase and after-purchase attitudes and
behaviors.

1.2 FAST FASHION IN MALAYSIA

Fast fashion is described as a contemporary term used by fashion retailers to express that
their design moved from the catwalk quickly in order to capture the latest fashion trends.
Besides that, according to Designcouncil.org fast fashion is defined as the trend for fashion
retailers to buy their merchandise closer to the season and respond to trends as they emerge.
It is also a concept that will continue to affect the fashion industry and it will give a direct
effect on the way customers purchase and react to the latest trends.
In the Southeast Asia region, Malaysia is ranked as the 6th most popular nation with a
population of 28.6 million as of 2010. In terms of consumer segment, teenagers are the
largest and most significant in terms of spending power and purchase decision-making among
the young consumers in Malaysia. This consumer group is at their impressionable period,
which is believed that the foundation of brand loyalty is developed and extended to
adulthood. (Consumer Lifestyle in Malaysia, Euromonitor International, July 2011)
On top of that, Malaysia fast fashion industry is highly competitive with a large number of
international brands like Padini, Zara, Uniqlo and Giordano. The market now is no doubt
dominated by most of the international brands because of their brand establishment and
consistent global advertising campaign. (Lim Woan Er, Relating Consumer Attitudes and
Fast Fashion Consumption in a Malaysian Context, 2013)
Currently, the most apparent competition in Malaysia would be between two global brands
which is H&M and Uniqlo. ( focusmalaysia.my, 2014 ). Governmental effort to create
Malaysia as a shopping paradise by massive shopping campaigns like Mega Sales and Year
End Sale are likely to reinforce the apparel competition in the long run, transforming

Malaysia to a much fashion-conscious society. (Lim Woan Er, Relating Consumer Attitudes
and Fast Fashion Consumption in a Malaysian Context, 2013)
1.3 PROBLEM STATEMENT
In this research, there are several problem statements identified:

1) To identify whether the surrounding, facilities of the store, well customer service,
latest fashion and the customers emotion are the factors that influenced the
loyalty of undergraduates towards fast fashion stores.

2) To investigate the three basic criteria of fast fashion brand such as affordable
product, quick response production and fashionable product influenced the trends
of customers way of shopping.

1.4 PURPOSE OF STUDY

The purpose of this research study are to understand and evaluate the strategies
used by fashion companies to attract generation Y to their products. The investigating
is doing in terms of their pricing, design strategies and conditions that influence
consumers involvement. Descriptive and SPSS analysis (reliability test, correlation
analysis and regression) are used to investigate the collected data.

1.5 RESEARCH OBJECTIVES

Fast fashion is a success in fashion business and becomes a trend in Malaysia. This research
is aiming at:
1) Understanding how the fast fashion companies attract the undergraduates consumers
in terms of design strategies and quick response.
2) Investigating how these strategies and conditions influence the consumer
involvement.
3) Figuring out how consumer involvement would further influence their shopping,
purchase and after-purchase attitudes and behaviours.

1.6 RESEARCH QUESTIONS

From the research objectives that been state above, we come out with several questions to
specifically address several aspects in this research study in order to make sure that its
achieve overall research objectives :
1) To what extent does fast fashion companies able do design strategies and quick
response for attract the undergraduates?
2) Do undergraduates find that strategies and conditions influence they involvement?
3) To what extend undergraduates involvement about their shopping? And does it able to
influence their shopping, purchase and after attitudes and behaviours?

1.7 SIGNIFICANCE OF STUDY

The research study could provide information on the issues of loyalty towards fast fashion
stores for the University Science Malaysia (USM) Pulau Pinangs undergraduate students.
The issues of loyalty towards fast fashion stores are measured by several variables. USMs
undergraduate student which most of them known as Generation Y are characterized as
shopaholic and fashion addicts, which most of them are willing to spend on fashion item in
order to fulfil their needs. This study will be beneficial to the USM undergraduate student as
this study will provide the necessary information on the different variable that will affect the
level of loyalty towards fast fashion stores.

1.8 DEFINITION OF KEY TERMS

AMBIENT CUE: Ambient cues are those related to nonvisual and peripheral circumstances
in a store, such as music, lighting, temperature, and fragrance (Baker et al.2002).
DESIGN CUE: Design cue can be defined as store environmental factors that are more
visual in nature than are ambient factors (Baker at el.1994, 330).
SOCIAL CUE: Social cue refer to the number, type, and behavior of other customers and
sales personnel in the environment (Baker et al.1994, 331).
MERCHANDISE CUE: Merchandise cue refers to assortment of merchandise and
merchandise itself (Kumar 2010).

STORE LOVE: Store love stands for an individuals emotional attachment to a specific
store (Carroll and Ahuvia 2006), in other word, his or her love for the store would translate
into repeated store visits (Fournier 1994; Thomson, Macinnis, and Park 2005).
STORE LOYALTY: Store loyalty defined as a consumers intention to revisit a particular
store, usually does not change over time (Bloemer and Ruyter 1998).