What factors drive brand loyalty in Consumer

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

Market Research: What factors drive brand loyalty in Jeans?

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

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Market Research: What factors drive brand loyalty in Jeans?

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.

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Market Research: What factors drive brand loyalty in Jeans?

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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Market Research: What factors drive brand loyalty in Jeans?

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.

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Market Research: What factors drive brand loyalty in Jeans?

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:

What brand of jeans do you buy?

Did you like any particular brand? Why?
Did you replace your brand and chose to buy some other brand?
If yes, what are the aspects that made you replacing your brand?
If No, what are the made you to stick to the brand?
Are there any aspects you compromise to stick on your brand?
Suppose if there is any brand, that has all the positive aspects of
your Brand and also it gains over the negative aspects too! Do you
switch now?
Do you accept any recommendation from your friend/family
members if they suggest any other brand?
Do you recommend the Brand to your friends /family members to
buy? Example: By showing reviews, positive stories
How would you perceive someone if he/she is wearing your brand?

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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Market Research: What factors drive brand loyalty in Jeans?

Variables

Based on our literature review and qualitative analysis through in depth

interviews and laddering we have identified the following as our variables.
Dependent variable

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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Market Research: What factors drive brand loyalty in Jeans?

H4: There is a
brand loyalty
H5: There is a
loyalty
H6: There is a
H7: There is a

positive relationship between perceived quality and

positive relationship between Others influence and brand
positive relationship between lifestyle and brand loyalty.
positive relationship between Varieties and brand loyalty

Data and Methodology

Primarily we wanted to go for field survey, but the team couldnt go ahead
with this plan due to certain infeasibilities:

Lack of time, inability to take a leave from campus in order to

conduct the survey.
Field survey would have limited us to a single location population.

In our next step we prepared an online questionnaire which could we

could circulate to a diverse set of respondents. We performed an initial
pilot test to check the reliability of the constructs. The result of the test
was successful and we decided to send out the questionnaire.
This was followed by circulating the online survey to the batch of PGDM
students, our teams friend circle, family and acquaintances. We also used
social media platforms to collect responses from a wide diversity of the
population.
We decided to implement the Simple Random Sampling method for
selecting the best possible demonstration of the population of
consideration. The responses we received had significant arbitrariness or
randomness in order to make a rationally precise inference about the
population.
We got data from 152 respondents comprising of different age, Income
groups and gender diversity

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Market Research: What factors drive brand loyalty in Jeans?

Data Reliability Analysis

After collecting the required data from survey, firstly, we would have to verify the
quality of data that has been collected before moving forward. For this purpose,
of verifying quality and reliability of data, Cronbach Alpha is a good measure.
For a consistent dataset, we prefer to have a dataset having Cronbach alpha of
at least 0.6 or 60%. Also, we can remove a particular scale within a construct in
order to achieve the desired result or if we get a significantly higher Cronbach
alpha value by remove that scale.

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

Market Research: What factors drive brand loyalty in Jeans?

a. The value is negative due
to a negative average
covariance among items. This
violates reliability model
assumptions. You may want to
check item codings.

Item-Total Statistics

Availability_1

Scale Mean if Scale Variance

Item Deleted
if Item
Deleted
5.81
1.010

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

a. The value is negative due to a negative average covariance among items.

This violates reliability model assumptions. You may want to check item
codings.
However, upon removing the construct #3, the Cronbach alpha become
significant and the value of Cronbach alpha becomes .641. Refer below
mentioned table.
Reliability Statistics
Cronbach's
N of Items
Alpha
.641
2

Item-Total Statistics

Availability_1

Scale Mean if Scale Variance Corrected

Item Deleted if Item
Item-Total
Deleted
Correlation
3.40
1.044
.473

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

Market Research: What factors drive brand loyalty in Jeans?

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

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Scale Mean if Scale Variance Corrected Item- Cronbach's

Item Deleted if Item Deleted
Total
Alpha if Item
Correlation
Deleted
3.60
1.018
.604
.

Market Research: What factors drive brand loyalty in Jeans?

Price_2

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

6. Decision influenced by others

The Cronbach alpha value for this set of scales under the category is 0.787 which
refers to significant set of data.
Reliability Statistics
Cronbach's
Alpha
.787

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.

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Market Research: What factors drive brand loyalty in Jeans?

Reliability Statistics
Cronbach's
Alpha
.754

N of Items
3

Item-Total Statistics

LifeStyle_1

Scale Mean if Scale Variance Corrected

Item Deleted if Item Deleted Item-Total
Correlation
6.48
2.962
.624

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

Scale Variance Corrected Item-Cronbach's

if Item Deleted Total
Alpha if Item
Correlation
Deleted
.765
.620
.
.452

.620

Summary of Reliability Analysis

Thus, the reliability analysis of Independent Variables of complete data can be
summarized as:
Sl.
no.
1.
2.
3.
4.
5.
6.

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Construct
Brand_Loyalty
Availability
Advertisement
Price
Quality
Other_Influence

Reliability
(Cronbach Alpha)
.798
.641
.777
.749
.789
.787

Market Research: What factors drive brand loyalty in Jeans?

7.
8.

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LifeStyle
Type

.754
.749

Market Research: What factors drive brand loyalty in Jeans?

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

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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

Market Research: What factors drive brand loyalty in Jeans?

Correlations
Bran Adv Pric Quali
d_Loy ertis
e
ty
alty eme
nt
Brand_Loya
lty
Advertisem
ent
Price
Pearson
Correlati
on

Sig. (1tailed)

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Quality
Other_Influ
ence

1.000 .199 .286

1.00
.087
0
1.00
.286 .087
0
.425 .249 .328
.199

.302 .164 .246

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

.450 .181 .280

.305 .291

Type

.219 .224 .367

.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

Market Research: What factors drive brand loyalty in Jeans?

Variables Entered

Model

Variables Removed

Availability, LifeStyle,
Advertisement, Price,
Other_Influence, Type,
Qualityb

Method

. Enter

a. Dependent Variable: Brand_Loyalty

b. All requested variables entered.
Model Summary
Model
1
a

R Square

Adjusted R
Square

Std. Error of the

Estimate

.578a

.334

.301

.67247

. Predictors: (Constant), Availability, LifeStyle, Advertisement, Price, Other_Influence,

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

a. Dependent Variable: Brand_Loyalty

b. Predictors: (Constant), Availability, LifeStyle, Advertisement, Price,
Other_Influence, Type, Quality
Coefficientsa
Model

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

a. Dependent Variable: Brand_Loyalty

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Beta

Market Research: What factors drive brand loyalty in Jeans?

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

Extraction Sums of Squared

.447
Loadings
.551
Total
% of
Cumulativ
.400
Variance
e%
.519
.492
.668

Extraction Method: Principal

Component Analysis.

Market Research: What factors drive brand loyalty in Jeans?

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

Extraction Method: Principal Component Analysis.

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

Extraction Method: Principal

Component Analysis.

18 | P a g e

36.073
15.221

36.073
51.294

Market Research: What factors drive brand loyalty in Jeans?

a. 2 components extracted.
Interpretation of Output:
While observing the output of Facto Analysis, we look at Component matrix.
Using this data, we found that SPSS has classified data in two major factors.
However, on analysing further we find that there is, almost, equal contribution of
Advertisement in both factor. This equal contribution mean that the factor
analysis is not accurate either. We need to rotate data first and then, perform
facto analysis on rotated data to get accurate and better results.

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Market Research: What factors drive brand loyalty in Jeans?

Factor Analysis with Rotation

As stated above, normal factor analysis to rotate data was not giving us correct
information and was leading to erroneous results. Its major reason was equal
contribution of independent variable to both the newly created variables. So, in
order to get more accurate results, we are going to rotate the data and then,
perform factor analysis on it.
After performing rotation and factor analysis in SPSS, the output obtained is:
Communalities

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

Extraction Method: Principal

Component Analysis.
Total Variance Explained
Comp
onent

Initial Eigenvalues

Extraction Sums of
Squared Loadings

Rotation Sums of
Squared Loadings

Tota % of Cumul Total % of Cumul Total % of Cumul

l
Varian ative
Varian ative
Varian ative
ce
%
ce
%
ce
%

3
4
5
6

2.52
5
1.06
5
.862
.776
.635
.605

.531

1
2

36.073 36.073 2.525 36.073 36.073 2.165 30.933 30.933

15.221 51.294 1.065 15.221 51.294 1.425 20.362 51.294
12.316
11.085
9.071
8.649
7.585

63.611
74.695
83.767
92.415
100.00
0

Extraction Method: Principal Component Analysis.

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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

Extraction Method: Principal

Component Analysis.
a. 2 components extracted.

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Rotated Component Matrixa

Component
Advertisement
Price
Quality
Other_Influenc
e
LifeStyle
Type
Availability

.137
.666
.648

.703
.059
.362

.620

.123

.715
.619
.051

-.088
.329
.816

Extraction Method: Principal

Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 3
iterations.
Component Transformation
Matrix
Componen
t
1
2

.868
-.497

.497
.868

Extraction Method: Principal

Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
Interpretation of Output:
Using table Communalities, we can see that a major section of data has been
extracted and have contributed significantly in the identification of the factors.
On further analysis the data in the table Rotated Component Matrix, we find
that two factors have been identified by SPSS as major factors. Also, we notice
that the contribution of Independent variable is varying a lot in the two factor
identified. Thus, the rotation of data was successful.
In the identified factor, factor 1 is contributed by following independent
variables:
1. Price

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Market Research: What factors drive brand loyalty in Jeans?

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.

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Market Research: What factors drive brand loyalty in Jeans?

Regression Analysis on Rotated Factors

After doing factor analysis, we get two factors which do not have multicollinearity between them. Now, we perform linear regression on the two
computed factors and analyse them further to get the desired output.
Descriptive Statistics
Brand_Loyalty
Personal Factors
Promotion Factors

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

. Dependent Variable: Brand_Loyalty

. All requested variables entered.
Model Summary

Model

R Square
.513a

Adjusted R
Square

.263

Std. Error of the

Estimate

.253

.69517

a. Predictors: (Constant), Personal_Factors, Promotion_Factors

ANOVAa
Model

Sum of
Squares

Df

Mean
Square

Regression

25.736

12.868

Residual

72.007

149

.483

Total

97.743

151

a. Dependent Variable: Brand_Loyalty

b. Predictors: (Constant), Personal Factors, Promotion Factors

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F
26.627

Sig.
.000b

Market Research: What factors drive brand loyalty in Jeans?

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Coefficientsa
Model

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

a. Dependent Variable: Brand_Loyalty

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 .263.,
which is a good 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.
Looking at the coefficients table, significance for Personal Factor is .000 and for
Promotional factors is .006. These significance level are much lower than .05,
thus, at 95% significance level of test, both the factors in regression model are
highly significant.
Thus, factors affecting Brand Loyalty can be classified as Personal Factors and
Promotional Factors and both the factors have a significant impact on it.
From the Beta coefficients mentioned in the table, the function of y can be stated
as:

Brand Loyalty = 0.475 x Personal_Factors + 0.194 x Promotional_Factors

Using the above equation, we can conclude that,

1. Personal factors have a strong positive influence on Brand Loyalty. With a
unit increase in the Personal Factors, there is a change of 0.475 units in
Brand Loyalty.
2. Promotional factors have a strong positive influence on Brand Loyalty. With
a unit increase in the Promotional Factors, there is a change of 0.194 units
in Brand Loyalty.

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Market Research: What factors drive brand loyalty in Jeans?

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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Market Research: What factors drive brand loyalty in Jeans?

Appendix A Survey Questionnaire

1. Brand loyalty
I consider myself loyal to this brand.
I buy this brand of jeans whenever I can.
I feel this is the only brand of jeans that I want
I buy as much of this brand of jeans as I can.
2. Availability
My jeans is always available in all nearest stores
My jeans is available at all locations I shop in
My jeans do not take much time to replenish the stock in stores
3. Advertising
My jeans' ads are nice
Advertisements for my jeans is annoying
I enjoy most Advertisements from my jeans
4. Price
My jeans is value for money
In general, Im satisfied with the prices I pay for my jeans
5. Perceived quality
My jeans offer the best quality
My jeans give consistent quality
My jeans have excellent features
6. Others Influence
My friend owns the same brand of jeans that I do
My neighbor uses the same brand of jeans as I do
7. Lifestyle
The jeans that I wear speaks about who I am
I like to be associated with the jeans that I own and use
The type of jeans that I use enhances my societal image
8. Varieties/Type
My brand of jeans offers all kinds of fits that I want such as Slim,
Straight fit
My brand of jeans offers all kinds of colors that I want
9. Age
What is your age?
10. Income
What is your income range per annum?
11. Gender
What is your gender?
12. Others
How many times have you bought Jeans this year?
Which brand of jeans are you currently preferring to wear?

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Market Research: What factors drive brand loyalty in Jeans?

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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