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The Impact of Brand Loyalty

on Consumers Sportswear Brand Purchase


Pankaj Kumar Singh* and J K Pattanayak**

The paper seeks to find out the factors of brand loyalty towards sportswear brand purchase. The paper
reports the results of brand loyalty of 209 respondents aged from 18 to 40. The seven factors of brand
loyalty are price, brand name, style, product quality, promotion, store environment and service quality.
To collect the necessary data and test the hypotheses, a standard questionnaire was used and distributed
among 209 respondents. Factor analysis was conducted to reduce the variable into considerable
components. Pearson correlation was used to test the hypotheses. The results showed that there is a
positive relation between some of the factors of brand loyalty and the sportswear brand purchase.

Introduction
Brand loyalty plays an important role in developing and maintaining the goal of marketing
(Reichheld and Sasser, 1990). In India, brand loyalty is considered as an asset and
consumers are ready to pay more than usual for a brand (Wernerfelt, 1991). Companies,
especially those in the sportswear manufacturing, strive to increase brand loyalty among
their customers. Brand loyalty is expressed through the intention or behavior to
repurchase a particular brand continually. The repurchase decisions of consumers very
much depend on the trust and quality of the product or service (Chaudhuri and Holbrook,
2001). The main emphasis of marketing has shifted from winning new customers to
retention of existing ones (Aaker, 1991). In marketing, true brand loyalty consists of a
consumers commitment to repurchase the brand through constant purchase and also
customers have a high relative attitude towards the brand. This indicated that the
repurchase behavior mainly depends on the trust and quality of the product and service
(Chaudhuri and Holbrook, 2001). Customer loyalty determines how much of the
product is bought and how often the repeat purchases is made based on its features.
Established brands invest money and time in upholding brand identity, preserving brand
loyalty and developing new sports product lines so as to gain more market share.
Therefore, it is important for marketing managers to acquire more knowledge in brand
loyalty.
*

Research Scholar, Department of Management Studies, Indian School of Mines, Dhanbad, India; and is the
corresponding author. E-mail: pankajlive2@gmail.com

**

Professor and Head, Department of Management Studies, Indian School of Mines, Dhanbad, India.
E-mail: jkpattanayak@yahoo.co.in

40 2014 IUP. All Rights Reserved.

The IUP Journal of Brand Management, Vol. XI, No. 4, 2014

India is all set to be a huge market for the sportswear industry. Yee and Sidek (2008)
suggested that there are several factors that influence consumers brand loyalty towards
certain sportswear brands. Sportswear brands such as Nike, Adidas, Puma, Woodland,
Reebok and Fila are popular among consumers. For sportswear, loyalty has become central
to strategic marketing. Hu et al. (2010) showed that in competitive repeat-purchase
markets, loyalty is shaped more by the passive acceptance of brands than by strongly held
attitudes about them. Sportswear has become a universal and fashionable category among
young people as it identifies them with a more relaxed lifestyle, greater flexibility and
comfort. Sportswear brand often gives the young people a sense of relaxed lifestyle. With
the changing lifestyle of Indians (especially youngsters) with greater disposable income,
consumers have become more fascinated with the idea of integrating sportswear as a part
of their daily routine, resulting in greater spending on sportswear. In recent decades, the
Indian market orientation towards sportswear brand purchase has improved. Nowadays,
sportswear brands have a positive impact on the personality of the consumers and have
encouraged the manufacturer to increase their business. Owing to this changing scenario,
it is expected that the worth of sportswear market will touch 643 bn by 2014, growing
at a CAGR of around 34% during 2010-2014. In marketing, brand loyalty consists of a
consumers commitment to repurchase the brand repeatedly. This indicated that the
repurchase behavior mainly depends on the trust and quality of the product and service
(Chaudhuri and Holbrook, 2001).

Brand Loyalty and Its Constituent Factors


Brand loyalty is a very important concept to understand the consumer behavior (Lee and
Feick, 2001; and Wood, 2004). Consumers always perceive that the brand offers the right
product features, descriptions, or level of quality at the right price in a particular brand
category (Malinowska-Olszowy, 2005). This perception of consumers forms the basis for
regular buying habits and thus the consumer becomes loyal to the specific brand. Thus
loyalty is a deeply held commitment to re-buy or repurchase a preferred product/service
brand consistently in the future. Only loyal consumers repurchase the same product/
service brand over time even when there is an alternative brand present in the market,
and eventually loyalty can be measured by the commitment to repurchase in terms of
products and services (Ryan et al., 1999). This kind of loyalty can be of great advantage
to the firm as customers are ready to pay premium prices and it may cost less to serve and
can bring new customers to the firm (Reichheld and Sasser, 1990).
Amine (1998) distinguished two main constructs of brand loyalty, i.e., the behavioral
and attitudinal. The behavioral construct explains that the repeat purchase of a brand
over time by a consumer expresses their loyalty, while the attitudinal perspective assumes
that consistent buying of a brand is essential but not sufficient condition of true brand
loyalty. It must be complemented with a positive attitude towards brand to ensure that
the behavior will be pursued further. Thus brand loyalty is a function of both behavior
and attitude.
The Impact of Brand Loyalty on Consumers Sportswear Brand Purchase

41

Factors of Brand Loyalty


To create and retain brand loyal consumers, it is important to understand the major factors
that influence brand loyalty among them. This study focuses on seven brands loyalty
factors: brand name, price, product quality, style, promotion, store-environment and
service quality.

Brand Name
The development of brand name is an expensive and time-consuming process. According
to Kohli and Thakor (1997), brand name is the formation of an image or the expansion
of brand identity. Brand names that are famous among customers can disseminate product
benefits and this leads to higher recall of advertised benefits of the product than those
that are not (Malinowska-Olszowy, 2005). Famous brand names can always disseminate
product benefits and lead to higher recall over non-famous brand names (Keller, 2003).
There are so many unfamiliar and alternative brands available in the market place to
confuse the customers. So, to avoid this, consumers always prefer to trust well-known
brand names. The prominent brand names and their images catch the attention of
consumers to purchase the brand (Aaker, 1996), and bring about repeat purchasing behavior
and reduce price-related switching behavior of consumers (Cadogan and Foster, 2000).

Price
Price is perhaps the most important concern for average consumers. It serves as one of the
strongest loyalty drivers (Ryan et al., 1999). Consumers with high brand loyalty are less
price-sensitive and willing to pay premium price for their favored brand (Cadogan and
Foster, 2000). Loyal customers are ready to pay more even if the price increases because
they would prefer to keep away from any perceived risks (Swinker and Hines, 2007).
Purchase intention of consumers will not be easily affected by price if they have built
brand loyalty into the brand. In addition, they may have strong belief in price and value
of their favorite brands so that they can compare and evaluate price with alternative
brands (Evans et al., 1996; and Keller, 1998). Consumers satisfaction and judgments can
also be built by comparing price with perceived values and cost. If the perceived values
of the product are somewhat greater than cost, consumers will purchase that product
(Jones, 1998). According to Hu et al. (2010), price considerably influences the consumers
choice and propensity to purchase.

Product Quality
Mostly consumers may buy a brand or different brand because of the quality of the product.
Product quality can be defined as fitness for use or conformance to requirement (RussellBennett et al., 2007). The tangible quality of the sold product leads to repeated purchase
of a single brand or switch around several brands. These are the tangible aspects of the
brand. According to Frings (2005), the components of product quality of fashion
merchandise include size, suitability of materials, colors, function and the performance of
the merchandise. Functional characteristics of sportswear include being lightweight,
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The IUP Journal of Brand Management, Vol. XI, No. 4, 2014

waterproof, anti-sweat and finally durable. Material is important in product quality because
it affects the performance aspects of the product. Also, consumers relate personally to color
and generally select or reject because the color does or does not appeal to them (Frings,
2005). Durability becomes an important consideration in purchasing sportswear because
some consumers wear their sportswear to carry out heavy and bulky work (Gravin, 1988).

Style
The term style mostly refers to ones fashion or outer appearance. Style is the visual look,
which includes, silhouette, line and details affecting consumers perception towards a
brand (Frings, 2005; and Swinker and Hines, 2007). It is the overall combination of the
way you move, dress, talk or do anything for that matter. This includes all of our
psychological behavior like thoughts, emotions, interests and values. Abraham and
Littrell (1995) explained that the composite list of apparel attributes has been generated
and one of the conceptual categories is style. Consumers judgment depends on their levels
of fashion consciousness, so judgment will be governed by their opinion of what is
currently fashionable. Fashion consciousness is generally defined as an awareness of new
style, changing fashions and attractive styling, as well as the desire to buy something
trendy (Sproles and Kendall, 1986). According to Azevedo and Farhangmehr (2005),
brands that provide stylish look attract loyal consumers who are also fashion-conscious.

Store Environment
The positive features of the store are location, dcor and other stimulus effect on brand
loyalty. Omar (1999) emphasized that store environment was the single most important
factor in retail marketing success and their longevity. Consumers become loyal if they find
stores to be highly accessible during their shopping and satisfied with the stores assortment
and services (Evans et al., 1996). It also affects the consumers buying decisions (Abraham
and Littrell, 1995). The stimuli in the store, such as noise, smell, temperature, shelf space
and displays, sign and colors, affect consumers decision making and satisfaction with the
brand (Evans et al., 1996). In store, stimuli influence the degree of how long consumers stay
in the store and how many products consumers come into visual contact with in the store
(Evans et al., 1996). Background music played in the store may affect the attitude and
behavior of the customers who come to purchase (Milliman, 1982).

Promotion
A good product with better distribution and reasonable price will fail if its attributes are
not communicated to target customer. Promotion is considered as the fourth component
in marketing mix and a form of communication. Promotion, especially through
advertising, is important in establishing ideas or perceptions in the consumers minds as
well as differentiating brands in a particular product category. Through advertisement,
personal selling, sales promotion and publicity, a company promotes and communicates
about its product and brands in the market and influences the consumers purchase
behavior (Russell-Bennett et al., 2007). It greatly affects consumers viewpoint and
attitudes towards products and brands (Evans et al., 1996). It also helps consumers to build
The Impact of Brand Loyalty on Consumers Sportswear Brand Purchase

43

ideas to differentiate their brand from other brands. Thus effective advertisement can
attract brand switchers and create brand loyalty. Moreover, it is seen that effective
communication can persuade and motivate consumers to purchase the product the
advertisement has promoted (Czerniawski and Maloney, 1999).

Service Quality
A common definition of service quality is that the service should correspond to the
consumers expectations and satisfy their needs and requirements (Gronroos, 1999).
Service quality is a kind of personal selling and involves direct relation between a seller
and a potential buyer. The positive impact of salespeople and consumer association will
generally ensure long-term orientation of consumers towards the store brand. Consumers
are induced to shop more because the quality of service provided by the seller is of desired
standard. The salespeople and consumer relationships will generally result in long-term
orientation towards the store or brand. Salespersons performance stimulates bonding
through trust and will affect consumers perception towards the store or brand. According
to Gronroos (1999), the quality of a service perceived by the customers has three
dimensions: functional, technical and image. However, Richard and Allaway (1993)
advocated that only the financial quality attributes, in reality, explain and predict
consumers buying behavior. Moreover, personalization significantly influences consumer
experience and evaluation of service and in turn brand loyalty of consumers (Mittal and
Lassar, 1996; and Leung and To, 2001).

Methodology
To conduct this study, primary data were used to investigate the factors of brand loyalty
towards sportswear brand purchase. Primary data were collected by using a questionnaire
based on a five-point Likert scale and distributed among respondents aged from 18 to 40.
The data were collected from November 2013 to January 2014. The questionnaire
contained two sections: the first section was about consumers demographics and the
second section was about the factors of brand loyalty. The survey was carried out on a
random sample of 209 consumers. The survey was done at malls, colleges and branded
stores. Of the 209 responses collected, 200 valid responses were used for the empirical
analysis.
Table 1 shows that 24% of the respondents were aged between 18 and 25 years, 33%
between 26 and 30 years, 27% between 31 and 35 years, and 16% between 36 and 40 years.
The educational profile of the surveyed respondents indicates that 17% respondents had
diploma, 28% undergraduate degree, 34% Masters degree, and 21% were doing doctorate.
The occupational profile of the respondents indicated that 26% of the respondents were
students, 29% were doing private jobs, 21% were government employees, and 24% were
self-employed. About 10% of the respondents earned less than 10,000 a month, 33%
between 10,001 and 20,000, 28% between 20,001 and 30,000, while 18% earned
30,001-40,000. Only 11% respondents earned between 30,001 and 40,000. Pearson
correlation was used to test the hypothesis.
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The IUP Journal of Brand Management, Vol. XI, No. 4, 2014

Table 1: Demographic Profile of the Sample


Demographic Factor
Gender
Age

Qualification

Occupation

Income

Frequency

Percentage

Male

114

57

Female

86

43

18-25

47

24

26-30

67

33

31-35

54

27

36-40

32

16

Diploma

32

17

UG

57

28

Masters

69

34

Ph.D.

42

21

Student

53

26

Private Sector

58

29

Govt. Sector

42

21

Self-Employed

47

24

Less than 10,000

20

10

10,001-20,000

67

33

20,001-30,000

56

28

30,001-40,000

35

18

Above 40,000

22

11

Reliability and Validity


In Table 2, all the variables show a high degree of reliability using Cronbachs alpha. Seven
independent variable factors of brand loyalty were also tested by the researcher through
the questionnaire distributed among the respondents. For questionnaire, we used Likert
scale: 1 indicates strongly disagree; 2 indicates disagree; 3 indicates neutral; 4 indicates
agree; and 5 indicates strongly agree. The results are derived from the highest mean score
of factors of brand loyalty based on the respondents response.
Table 3 shows that most of the respondents (31%) were loyal to Adidas, while 23%
were loyal to Nike, Woodland, Puma, etc. This means that Adidas as a brand is familiar
to most of the respondents hence sellers need to focus on such brands. The results also
revealed that 21% of the respondents were not loyal to any brand. The above data provides
information as to what to focus on while promoting sportswear and can help in
formulating strategies to capture the market.
The Impact of Brand Loyalty on Consumers Sportswear Brand Purchase

45

Table 2: Reliability Test Results


Factors of Brand
Loyalty

Brand Name
The brand is reputable
Brand name and image attract me to purchase
Brand name is selected regardless of price
Brand name reflects my own personality
Product Quality
The size of the sportswear fits me very much
The materials used by the brand are comfortable
Sportswear brand has good functional quality
The brand has sufficient color choice of sportswear
The brand of sportswear is durable.
Service Quality
Salespeople of the stores are well trained
Salespeople of the stores are willing to help me
Salespeople of the stores are friendly and courteous
Salespeople of the stores have neat appearance
Store Environment
The brand has good store location
The brand has sufficient outlets
The interior display is attractive
Color and music inside the store are attractive
Style
The brand provides a wide variety of style
Style of the sportswear brand is suitable for me
Style of the sportswear brand has distinctive features
Style of the sportswear is trendy and fashionable
Promotion
Advertisement of the brand is attractive
Advertisement of the brand attracts me to purchase
Window displays are attractive
Price
The increased price would not hinder my purchase
The brand provides good value for money

Cronbachs
Alpha

Mean
Average

0.6778

4.00
3.70
3.60
3.48

0.6582

3.80
3.70
3.60
3.30
3.79

0.8770

3.70
3.60
3.50
3.60

0.7284

3.89
3.50
3.60
3.43

0.7993

3.67
3.51
3.56
3.60

0.7184

3.66
3.50
3.50

0.6628

3.12
3.87

Mean

3.69

3.63

3.62

3.60

3.58

3.55

3.49

Factors Influencing Brand Loyalty in Sportswear Purchase


Factor analysis was used and five factors were identified from 19 variables. These
are brand name, price, store environment, product quality and trust. The factors
extracted had Eigenvalues greater than 1 and accounted for 73% of the total
variance (Table 4).
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The IUP Journal of Brand Management, Vol. XI, No. 4, 2014

Table 3: Frequency Distribution of Most Preferred Brands


Brand

Frequency

Percent

Adidas

63

31.5

Reebok

49

24.5

Others (Puma, Nike, Woodland etc.)

46

23

None

42

21

Total

200

100

Table 4: Rotated Component Matrix


for Factors Influencing Brand Loyalty on Sportswear Purchase
1
Brand Name
The brand is reputable
Brand name and image attract me to purchase
Brand name is selected regardless of price
Brand reflects my own personality
Price
Increase of price not hinder my purchase
Brand provides good value for money
Store Environment
The brand has good store location
The brand has sufficient outlets
The interior display is attractive
Color and music are attractive
Product Quality
The size of the sportswear fits me very much
The materials used by the brand are comfortable
Sportswear brand has good functionality quality
The brand has sufficient color choice
The brand of sportswear is durable
Style
The brand provides a wide variety of style
Style of the sportswear brand is suitable for me
Style of sportswear brand has distinctive features
Style of the sportswear is trendy and fashionable

0.891
0.785
0.631
0.623

Components
2
3
4
0.202
0.043
0.104
0.003

0.008
0.332
0.259
0.554

0. 094
0.116
0.253
0.001

5
0.188
0.238
0.375
0.089

0.061
0.058

0.829
0.785

0.049
0.475

0.028 0.036
0.056 0.063

0.236
0.057
0.003
0.345

0.149
0.247
0.554
0.216

0.806
0.757
0.664
0.306

0.105 0.053
0.181 0.332
0.001 0.089
0.637 0.214

0.038
0.254
0.041
0.323
0.028

0.002
0.169
0.170
0.143
0.067

0.242
0.113
0.197
0.296
0.150

0.773 0.368
0.772 0.089
0.664 0.324
0.637 0.232
0.621 0.067

0.000
0.038
0.054
0.058

0.092
0.069
0.136
0.046

0.011
0.164
0.179
0.054

The Impact of Brand Loyalty on Consumers Sportswear Brand Purchase

0.340
0.174
0.469
0.343

0.862
0.787
0.779
0.689

47

Brand name accounted for 16% of the total variance. The factors correlated positively
with four variables. 82% of the respondents indicated that brand name influences the
brand loyalty, while 18% indicated that it does not have any influence (Table 5). Retailers
and manufacturers will thus have to focus on this factor while presenting products to the
consumers of sportswear.
Table 5: Factors Influencing Brand Loyalty
Brand Loyalty Factor

Influence

Does Not Influence

Brand Name

164 (82%)

36 (18%)

Price

100 (50%)

100 (50%)

Store Environment

126 (63%)

74 (37%)

Product Quality

180 (90%)

20 (10%)

90 (95%)

10 (5%)

Style

The factor price explained 27% of the total variance and correlated positively with two
variables. Half of the respondents indicated that price influences their brand loyalty.
These results are very much consistent with the findings of Yee and Sidek (2008), who
argued that price is one of the significant considerations for the average consumers. The
factor, store environment, accounted for 13% of the total variance and the factor
correlated positively with four variables. 63% of the respondents indicated that this factor
influences their brand loyalty, while 37% indicated it does not. This shows that window
displays and well-designed stores have appealing effect causing the customer to be loyal
to a particular brand. The image created by the trader or manufacturer also plays a vital
role in persuading the customers to be loyal to a brand. This is consistent with the findings
of Aaker (1991) that store attractiveness of the brand indirectly affects brand loyalty. The
factor, product quality, accounted for only 9% of the total variance. The factor correlated
positively with five variables. 90% of the respondents indicated that this factor influences
their brand loyalty, while 10% indicated it does not. As indicated by Swinker and Hines
(2007), the quality of the product is paramount since the consumers will always consider
the quality vis--vis the price. If the material of the product is not comfortable, the
consumers tend to reject the products and focus their attention on other products. Style
accounted for 8% of the total variance. The factor correlated positively with four variables.
95% of the respondents indicated that the style influences their brand loyalty, while 5%
indicated it does not. Style is very important while selecting the brand in sportswear. It
provides reputation to the brand.
Pearsons correlation was used to test the hypothesis that brand name, price, product
quality, store environment and trust have no relationship with brand loyalty. The
correlation between the brand name and brand loyalty was 0.561 (Table 6). This portrayed
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The IUP Journal of Brand Management, Vol. XI, No. 4, 2014

Table 6: Correlations for Brand Loyalty and Its Factors


Factors

Pearson Correlation

Significant (2-tailed)

Brand Name

0.561

0.002

Product Quality

0.304

0.002

Price

0.466

0.005

Style

0.146

0.171

Store Environment

0.369

0.001

Note: Correlation was significant at 0.01 level (2-tailed).

a fairly strong relationship that was statistically significant (p = 0.002). Product quality
was found to have a significant positive relationship with brand loyalty (r = 0.304 and
p = 0.002). This finding indicates that quality of the product plays an important role in
the consumer decision-making process. The research finding showed that price and brand
loyalty had a positive relationship (r = 0.466 and p = 0.005). Price was an important
consideration for most of the consumers. However, consumers with high loyalty were very
less price-sensitive and ready to purchase again and again. The correlation between style
of the sportswear brand and brand loyalty was not fairly strong and not statistically
significant (r = 0.146 and p = 0.171). This means that the consumers buying sportswear
do not focus on how stylish the outfit is. Store environment plays an important role in
creating brand loyalty. The results showed that store environment and brand loyalty were
positively related. The correlation between store environment and brand loyalty was
statistically significant (r = 0.369 and p = 0.001). From this, it is observed that consumers
pay much attention to store attributes while purchasing products.

Conclusion
The rationale behind this study is to examine how the consumers are influenced by factors
of brand loyalty while purchasing sportswear brands. Brand loyalty is important for an
organization to ensure that its product is remembered by consumers so that they do not
move to other brands. The study also showed that it was not an easy task to win and
sustain consumer loyalty because there were many forces drawing consumers away such as
competition, variety, consumers thirst, etc. The findings revealed that brand name plays
a significant role in influencing consumers to be brand-loyal. Additionally, the overall
findings of this study also show that consumers prefer product quality, price and store
environment as relevant factors attributable to brand loyalty. All these factors showed a
positive relationship with brand loyalty, except style which had no relationship. Finally,
the marketers should understand how the factors of brand loyalty can affect consumerbuying behavior in the market, which can help the marketers in segmenting consumers
for their brands and marketing communication.
Managerial Implication: Young consumers have the highest interest in sportswear brand.
They are the big spenders in the sportswear market. They are interested in expressing
The Impact of Brand Loyalty on Consumers Sportswear Brand Purchase

49

individuality and wearing latest and trendy apparels. They dispose of their old styled
fashioned wardrobe frequently. This period represents a change in lifestyle and a phase of
new wardrobe demand. As they have high interest in personal appearance, they tend to
spend more on sportswear brands. A large majority of the respondents were aged between
18 and 25 years old, and therefore marketers have to concentrate their efforts and
resources on this consumer segment. On the other hand, creating brand-loyal consumers
is difficult. Marketers need to continually improve their marketing programs to attract and
retain brand-loyal consumers. As competitions in the marketplace are getting increased,
consumers are supplied with the information on different brands. Marketers may focus on
making more consumers satisfied as well as making specific group of consumers more
satisfied. Therefore, marketers should concentrate on gaining knowledge of the factors
that can influence consumers to remain loyal to their own brands.

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The IUP Journal of Brand Management, Vol. XI, No. 4, 2014

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