juoul: ijazah: universiti malaysia sabah borang pengesahan
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juoul: ijazah: universiti malaysia sabah borang pengesahan
UNIVERSITI MALAYSIA SABAH BORANG PENGESAHAN STATUS TESIS@ JUOUL: PENYELIOIKAN OALAM PENENTUAN BAGI JENAMA KORPORAT OALAM INOUSTRI FESYEN 01 BAN OAR KOTA KINABALU, SABAH. IJAZAH: SARJANA PENGURUSAN PERNIAGAAN SESI PENGAJIAN: 2005 - 2007 Saya, HO SU SAN mengaku membenarkan tesis Sarjana ini disimpan di Perpustakaan Universiti Malaysia Sabah dengan syarat-syarat kegunaan seperti berikut: 1. 2. 3. 4. Tesis adalah hakmilik Universiti Malaysia Sabah. Perpustakaan Universiti Malaysia Sabah dibenarkan membuat salinan untuk tujuan pengajian saya. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara institusi pengajian tinggi. TIDAK TERHAD. Disahkan oleh (P:erT'd'Tis: HO SU SAN) (TANDATANGAN PERPUSTAKAWAN) Alamat: P. O. BOX 980, 90710 Sandakan, Sabah, Malaysia. Tarikh: 2007 (Penyelia: Pn. Dayangku Aslinah Abd . Rahim) Tarikh: CATATAN: @ Tesis dimaksudkan sebagai tesis Ijazah Doktor Falsafah dan Sarjana secara penyelidikan atau disertassi bagi pengajian secara kerja kursus dan penyelidikan atau laporan Projek Sarjana Muda (LPSM). A STUDY ON THE DETERMINANTS OF CORPORATE BRAND IMAGE IN THE FASHION RETAIL INDUSTRY HO SU SAN A dissertation submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration SCHOOL OF BUSINESS AND ECONOMICS UNIVERSITY MALAYSIA SABAH 2007 DECLARATION The material in this dissertation are original except for quotations, excerpts, summaries and references, which have been duly acknowledge. Ho Su San PS05-006(K)-025 6 July 2007 ACKNOWLEGDEMENT The completion of this study was made possible by the assistance, cooperation, ideas and input of various individuals. First of all, I would like to thank God for granting me the spiritual guidance, supports, perseverance and will to complete this study. I am very grateful to my husband and my family member for their constant support, understanding and patient. Secondly, my gratitude and appreciation also goes to my supervisor, Ms. Grace Phang and my co-supervisor, Dr. Fumitaka guided me through this study. I also would like to express my heartfelt gratitude to all my MBA lecturers and classmates for their support and inputs which eventually led to the betterment of my research. Special thanks for all those who have assisted me in SPSS analysis and also to those who have participated in this research. Your valued contribution is greatly appreciated. ii ABSTRACT Corporate brands are an increasingly important element of organizational and marketing strategy. Among the changes that businesses make as they move towards globalization is a shift in marketing emphasis from product brands to corporate branding. In an era when companies can no longer base their strategy on a predictable market or a stable preferential product range, the ground rules for competition change. Differentiation requires positioning, not of products, but the whole corporation. Accordingly, the values and emotions symbolized by the organization become key elements of differentiation strategies, and the corporation itself moves center stage. The proposed research takes a look at the determinants of the retail corporate branding for the fashion industry. The purpose of this research is to identify and study the different constructs of corporate brand management of retailers in the Kota Kinabalu. In summary, this study was analyzed by using various statistical analyses, which investigate the determinants of the corporate brand image for both the local and foreign fashion retails from the customers' perspective. Results showed that physical facilities and store atmosphere proves to have the most significant influence on corporate brand image for both the local and foreign fashion retails. Management implications and suggestions for future research are discussed. iii ABSTRAK PENYELID/KAN DALAM PENENTUAN BAGI JENAMA KORPORA T DALAM /NDUSTR/ FESYEN Jenama korporat semakin memainkan peranan yang penting da/am satu organisasi dan strategi pemasaran Antara perubahan da/am bidang pemiagaan ke arah g/obalisasi ia/ah pertukaran ha/a tuju dari jenama barangan kepada jenama korporat. Da/am era di mana sesebuah syarikat tidak dapat bergantung kepada strateginya da/am pasaran rama/an atau stabiliti dalam memberi keutamaan da/am sesuafu produk yang merupakan asas bagi suatu saingan pemiagaan. Perbezaan dalam sesebuah syarikat per/u memberi keutamaan da/am se/uruh korporat dan bukan hanya setakat barangan sahaja. Nilai dan emosi yang ditunjukkan o/eh suatu organisasi akan menjadi satu ciri ufama da/am membezakan strateg; bag; korporat tersebut untuk menarik perhatian para konsumer. Penye/idikan in; membincangkan penentu bagi jenama korporat dalam industri fesyen. Tujuan penye/idikan ini ia/ah untuk menentukan dan membincangkan perbezaan da/am pengurusan jenama korporat di sekitar Kota Kinaba/u. Kesimpulannya, thesis ini menggunakan pe/bagai ana/isis statistik bagi mendapatkan penentu untuk jenama korporat tempatan dan antarabangsa dari pandangan konsumer. Hasil kajian menunjukkan kemudahan dan keadaan butik je/as menunjukkan pengaruh yang penting da/am jenama korporat bag; pem;agaan fesyen tempatan dan antarabangsa. Imp/ikasi pengurusan dan cadangan bagi kajian seterusnya juga akan dibincangkan. iv TABLE OF CONTENTS Page TITLE PAGE DECLARATION ACKNOWLEDGEMENTS ii ABSTRACT iii ABSTRAK iv TABLE OF CONTENTS v LIST OF FIGURES ix LIST OF TABLES x LIST OF APPENDICES xii CHAPTER 1: INTRODUCTION 1.1 Overview 1 1.2 Research Problem 3 1.3 Rationale of the Study 4 1.4 Scope of Study 5 1.5 Objective of Study 6 1.6 Definition of Terms 5 1.6.1 Corporate Brand Image 5 1.6.2 Physical Facilities and Store Atmosphere 6 1.7 1.6.3 Price and Promotion 6 1.6.4 Product-Related Attribute 7 1.6.5 Customer Service 7 1.6.6 Corporate Identity 7 Summary and Organization of Remaining Chapters 8 v CHAPTER 2: LITERATURE REVIEW 2.1 Introduction 10 2.2 Brand 12 2.3 Corporate Branding 13 2.3.1 The Importance of Corporate Branding to Companies 17 2.4 Corporate Brand Image 18 2.5 Retail Strategy and Retailer Image 20 2.5.1 21 Fashion Retailing 2.6 Consistent Corporate Brand Through Staff 23 2.7 Determinants of Retail Corporate Brand Image 24 2.7.1 Physical Facilities and Store Atmosphere 28 2.7.2 Price and Promotion 30 2.7.2.1 Retailer Pricing Format 30 2.7.3 Product-Related Attribute 32 2.7.4 Customer Service 36 2.7.5 Corporate Identity 37 2.8 Consumers Demographic Characteristics 42 2.9 Summary 44 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Introduction 45 3.2 Theoretical Framework 45 3.3 Definition of Variables 47 3.3.1 Retail Corporate Brand Image 47 3.3.2 Physical Facilities and Sore Atmosphere 47 vi 3.3.3 Price and Promotion 47 3.3.4 Product-Related Attribute 47 3.3.5 Customer Service 48 3.3.6 Corporate Identity 48 3.3.7 Age 48 3.3.8 Gender 48 3.3.9 Occupation 48 3.3.10 Education Level 49 3.4 Research Hypothesis 49 3.5 Type of Study 51 3.6 Nature of Study 52 3.7 Instrument 52 3.8 Sample Design 53 3.9 Data Collection Method 54 3.9.1 Primary Data 54 3.9.2 Secondary Data 54 3.10 Data Analysis 55 3.11 Summary 56 CHAPTER 4: RESULTS 4.1 Introduction 57 4.2 Descriptive Statistics of Profile of Respondents 57 4.3 Reliability Test: Cronbach's Alpha 59 4.4 Statistics of Variable Overview 61 4.4.1 61 Descriptive analysis on independent variables vii 4.5 T - Test: Paired Sample T-Test 64 4.6 Hypothesis Testing 67 4.6.1 Hypotheses testing on the independent and dependent 68 Variables 4.6.2 4.7 Hypotheses testing on the moderating variable Summary of Findings 75 83 CHAPTER 5: DISCUSSION AND CONCLUSION 5.1 Introduction 85 5.2 Recapitulations of Study 85 5.3 Discussion and Implication of Study 86 5.3.1 The impact of physical facilities and store atmosphere 86 5.3.2 The impact of price and promotion 88 5.3.3 The impact of product-attribute related 89 5.3.4 The impact of customer service 90 5.3.5 The impact of corporate culture 91 5.3.6 The impact of corporate strategy 91 5.3.7 The impact of demographic as moderator 92 5.3.8 Managerial implications 93 5.4 Limitations of Study 97 5.5 Suggestions for Future Research 98 5.6 Conclusion 99 REFERENCES 100 APPENDICES 114 viii LIST OF FIGURES Page Figure 2.1 Strategic Planning Process 21 Figure 2.2 Abratt's Model 40 Figure 2.3 Stuart's Model 42 Figure 3.1 Theoretical Framework 46 ix LIST OF TABLES Page Table 2.1 Corporate Brand Characteristics 15 Table 3.1 Sample Design 54 Table 3.2 Statistical Method For Hypothesis Testing 56 Table 4.1 Respondent Profile 58 Table 4.2 Cronbach's Alpha 60 Table 4.3 Mean and Standard Deviation 63 Table 4.4 Paired Samples Test 66 Table 4.5 Ranked Variance of Determinants For Corporate Brand Image Table 4.6 Mu!tiple Hegression for Local Fashion Retail 68 Table 4.7 Analysis of Variance for Local Fashion Retail 68 Table 4.8 Variables in Equation of Local Fashion Retail 68 Table 4.9 Multiple Regression for Local Fashion Retail 71 Table 4 .10 Analysis of Variance for Local Fashion Retail 72 Table 4.11 Variables in Equation of Local Fashion Retail 72 Table 4.12 Hierarchical Regression with Moderating Variable 75 . 67 (Foreign Fashion Retail) Table 4.13 Hierarchical Regression with Moderating Variable - Age 76 (Foreign Fashion Retail) .Table 4.14 Hierarchical Regression with Moderating Variable - Gender 77 (Foreign Fashion Retail) Table 4.15 Hierarchical Regression with Moderating Variable - Occupation 79 (Foreign Fashion Retail) x Table 4.16 Hierarchical Regression with Moderating Variable - 81 Education Level (Foreign Fashion Retail) Table 4.17 Summary of Hypotheses 83 xi LIST OF APPENDICES Page Appendix I : Questionnaire 114 Appendix II : Descriptive Statistics 127 Appendix III: Descriptive Statistics - Moderator 132 Appendix IV : T - Test 134 Appendix V : Reliability Test 135 Appendix VI: Multiples Regression 143 Appendix VII: Hierarchical Regression 145 xii CHAPTER 1 INTRODUCTION 1.1 Overview Corporate brands are an increasingly important element of organizational and marketing strategy. Among the changes that businesses make as they move towards globalization is a shift in marketing emphasis from product brands to corporate branding. In an era when companies can no longer base their strategy on a predictable market or a stable preferential product range, the ground rules for competition change. Differentiation requires positioning, not of products, but the whole corporation. Accordingly, the values and emotions symbolized by the organization become key elements of differentiation strategies, and the corporation itself moves center stage. The proposed research takes a look at the determinants of the corporate brand image which focus on the fashion retail industry. Given the complex nature of brands and branding, many organizations often fail to consider the role that employees can play in realizing a company's brand strategy. Whether it's the actual impact on customer service levels or the influence on stakeholder perceptions, employee behavior impacts on company brand perceptions and ultimately affects the bottom line. As retail sector is more customer services oriented and has more domains for interactions of staff members directly with customers, there is a greater scope 'of translating and conveying the corporate brand of a retail firm through these interactions. The proposed research also focuses on how the different factors contributing towards the corporate branding image of a retailing firm, are strategically aligned and how this alignment is influenced by the performance and interaction of the customer services staff of the retail firm with the customers. The proposed research would identify the different factors that devise the constructs for corporate retail branding. It would identify the 1 different factors that contribute towards the corporate branding of a retail organization and how do the customer services employees translate and contribute towards the corporate branding of the retail organization. The last decade has seen major flux in retailing, especially in the grocery and general merchandise industry such as fashion retail industry. On one hand, the growth of promotions and private labels has been seen by many as an indicator of growing retailer power. On the other hand, the growth of discounters and warehouse clubs has put immense pressure on traditional retailers and significantly increased retail competition both within and between retail formats. Since a large portion of most retailers' revenue and profit comes from selling manufacturer brands, which many of their competitors also offer, building their own equity is a particularly challenging problem, but one with big potential rewards . Such equity insulates them from competing retailers, which has the direct impact of increasing revenue and profitability, and the indirect impact of decreasing costs as their leverage with brand manufacturers also increases. Although many important branding principles apply, retailer brands are sufficiently different from product brands that the actual application of those branding principles can vary. Retailer brands are typically more multi-sensory in nature than product brands and can rely on rich consumer experiences to impact their equity. Retailers also create their brand images in different ways, e.g., by attaching unique associations to the quality of their service, their product assortment and merchandising, pricing and credit policy, etc. In most consumer industries, the image of retailer brands also depends on the manufacturer brands they carry. Retailers use manufacturer brands to generate consumer interest, patronage, and loyalty in a store. Manufacturer brands operate almost as "ingredient brands" that wield significant consumer pull, often more than the retailer brand does. To the extent "you are what you sell," manufacturer brands help to create an image and establish a positioning for the store. 2 At the same time, retailers compete with manufacturers for consumer pull to increase their relative market power and their share of the total channel profit pie (Steiner, 1993). In doing so, they may sell some of their own brands. In fact, in industries like apparel, one can find several examples of retailers who carry only their own private label products. Private label products may have their own unique brand names or be branded under the name of the retailer. They allow the retailer to differentiate its offerings from competing retailers, although often without the support afforded manufacturers brands. It is critical important on understanding how a retailer should be positioned and how the brand assortment sold by the retailer is related to its image. Some retailers have managed their brands more effectively than others, as is evident in their performance. For instance, although overall U.S. retail profitability did not improve during the eighties and nineties, some retailers have fared exceedingly well (Ailawadi, Borin, & Farris, 1995). 1.2 Research Problem Fashion retailing is emerging as one of the most challenging areas of business activity in the world market. Uncertainties in demand, shrinking selling seasons, lengthening delivery lead times, increasing competition and thinning margins together make the job of the retailer truly daunting. The development of a strong brand in the domestic market, in terms of store image, product, and customer service, would seem to form the basis for long-term viability and .success in the markets. Concerns related to build up a successful corporate brand image are evident in the marketplace. Over the years, a majority of the consumers have realized that the corporate brand image have a direct impact on their buying behavior, satisfaction and loyalty issues. An important challenge facing fashion retailer is to identify which factors are the influences to build-up a strong corporate brand image. It is apparent that an enhanced 3 knowledge of the profile of this segment of consumers' and employees' would be extremely useful. The closer we more to an understanding of what causes individuals to perceive the corporate brand image, the better the management will be able to develop the marketing strategies specifically targeted at these consumers. The research questions highlighted in this paper are to verify the determinants of the corporate brand image and how does the customer perceive it as a brand image. In this regard, key issues concerning the relationship between the factors that influence the corporate brand image. Besides, the research paper also focused on the relationship between the determinants of the corporate brand image and demographic characteristics, for example age, gender, occupation and education level. A conceptual framework has been developed. Hence, the research question is, " To what extent does physical facilities and store atmosphere, price and promotion, product-related attribute, customer service and corporate identity will influence the corporate brand image in the local and the foreign fashion retail industry from the customers' perspective," 1.3 Rationale of the Study In exploring for the determinants and factors that might affect the perceptions of the corporate brand image from the customers, in the context of this study is both the local and foreign fashion retailer in Kota Kinabalu. This study is to investigate the determinants of the corporate brand image for the fashion retailer in Kota Kinabalu. Thus, it is hoped to assist both the local and the foreign fashion retailer to identify and understand the determinants and their significance that may influence the perceptions on the corporate brand image. And yet, this can lead to possibility for further improvement of programs for the strategic management for the fashion retail in Kota Kinabalu. 4 1.4 Scope of Study The scope of the research is to investigate the impact of physical facilities and store atmosphere, price and promotion, product-related attribute, customer service, corporate personality and corporate identity towards the corporate brand image in the fashion retail industry. The sample of this research will include the consumers in Kota Kinabalu area. 1.5 Objective of the Study The objectives of the study are: • To investigate the relationship between dependent variable (of corporate brand image for fashion retail) and independent variables (of physical facilities and store atmosphere, price and promotion, product-related attribute, customer service and ::r.: ....t. C£! corporate identity with demographic characteristics as moderators). c.r; ~.::,. • • fd To suggest policy measures to improve the strategic management for both local~ S; ~;~ U':t <t. and foreign fashion retail in Kota Kinabalu. ~~ ffi !:-.: To assess the consumers' perceptions on the corporate brand image for both thEF- ffi C!: z local and foreign fashion retail. 1.6 :::» Definition of Terms For the purpose of this proposed study, the following are the terms that may need to be further clarified to avoid confusion on what it means in the context of this study. 1.6.1 Corporate Brand Image A corporate brand image is the associations that consumers have in memory to the company or corporation making the product or providing the service as a whole. Corporate brand image is particularly relevant concern when the corporate or company brand plays a prominent role in the branding strategy adopted. In the 5 context of this research, both employees working in the fashion retail and the consumers will be tested on their perception on the corporate brand image that may influence their purchase behavior. 1.6.2 Physical Facilities and Store Atmosphere Physical facilities and store atmosphere refers to the internal and the external environment of the retail shop. The psychological impact of "the store's atmosphere crease a retail image in the shopper's mind, with the atmosphere influencing consumer behavior in three ways, by creating attention, messages and emotional, affective response (McGoldrick, 1990). In the context of this research, physical facilities and store atmosphere refers to the store's cleanliness, ambient features, interior and exterior design of the store and so forth. 1.6.3 Price and Promotion The price of the product or service is particularly important attribute association because consumers often have strong beliefs about price and value of a brand and may organize their product category knowledge in terms of the price tiers of different brands (Robert and Kenneth, 1989). The price from this research is the pricing policy for the brand that can create associations in consumer's minds to the relevant price tier or level for the brand in the category, as well as to its corresponding price volatility or variance (in terms of the frequency or magnitude if discounts, etc). The pricing strategy of the fashion retail in this research can influence the brand image as well. 6 1.6.4 Product-Related Attribute Product-related attribute refers to a product's physical composition or a service's requirements and are what determine the nature and level of product performance. Product-related attributes can be further distinguished according to essential ingredients and optional features, either necessary for a product to work, or allowing for customization and more versatile, personalized usage. In this study, productrelated attributes will be in terms of the merchandize quality, assortment and the style or design of the product. 1.6.5 Customer Service Customer service refers to any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything (Kotler, 1994). Customer services come in many different forms. Although the production of customer services is not necessarily tied to a physical product, but they often accompany goods in some way. In this context of study, there are a number of dimensions of customer service quality: reliability (ability to perform the promised service right at the first time), responsiveness (willing to help customers), competence (knowledge and skill of employee), empathy (caring, individualized attention provided), courtesy (friendliness of customer contact) and communication (keeping customers informed in language they can understand and listen to what they say). 1.6.6 Corporate Identity In the context of this study, corporate identity refers to a strategic manifestation of corporate-level vision and miSSion, underpinned by the strategies which a corporation employs in its operations or production (Melewar and Wooldridge, 7 2001). A strong emphasis is placed on ethical and cultural values, as well as organizational history and philosophy (Ind, 1992). According to Balmer (1998), corporate identity is a multidisciplinary field. It is a term used to identify the essence of what the firm is and thus incorporates many unique characteristics of the firms such as history, philosophy, culture, communication and the industry the firm operates in. Besides, the corporate identity also is inseparable from the corporate personality of the organization. 1.7 Summary and Organization of Remaining Chapters This study comprises of five chapters to theoretically and methodologically to explain the research. Following will be the summary and organization of the remaining chapters: Chapter 1 Introduction and Background - The purpose of this chapter is to present the overview of the research and its significance, the objectives, the scope of the study and finally the terms definition used in this context of research. Chapter 2 Literature Review - This chapter consists of the sufficient knowledge regarding the issues and terminologies within the field of the thesis. Chapter 3 Methodology - The purpose of this chapter is to give explanation to the .techniques and methodologies that will be used to conduct the research. A theoretical framework will be presented as well as the explanation of research hypotheses, type of study, nature of study, unit of analysiS, instrument, sample design, data collection and data analysis methods. 8 Chapter 4 Key Findings, Data Analysis and Interpretation - The fourth section illustrates the respondent profiles and research findings. Chapter 5 Discussion and Conclusion - This chapter will be interpret all the data and gathered information to draw a conclusion for the research. Apart from it, this chapter also includes the implications and limitations of research as well as provides some suggested directions for fUrther research on this topic. 9 CHAPTER 2 LITERATURE REVIEW 2.1 Introduction The marketing and apparel literature generally agrees on the subject of fashion leadership in that fashion leaders are more likely to be young consumers (Goldsmith et aI., 1991 ; Gutman and Mills, 1982; Horridge and Richards, 1984; Mason and Bellenger, 1974; Scrugge, 1977). When compared with other consumer groups, young fashion leaders are those consumers that consider fashion to be of great importance to their lifestyles. Fashion leaders have well defined convictions about taste, in particularly their own, and are champions of new styles and generally influence other consumers to adopt and buy the latest fashions (see Beaudoin et aI., 1998; Kaiser, 1990; Polegato and Wall, 1980; Schrank and Guiimore, 1973). When attempting to ascertain the reason for poor levels of performance, it is reasonable to assume that this may be due to ineffective positioning (Davies and Brooks, 1989), and a failure of the retailers positioning strategy. This is an integrated management activity that takes in elements of the retail mix such as merchandising, store formats, sales staff interaction, promotional efforts (Walters and Laffy, 1996) and unsurprisingly reputation. These factors create a point of differentiation, separate retailers from the competition, and create the retail brand. Intensifying retail competition and growing market saturation are continually forcing fashion retailers to devise more creative positioning and differentiation tools (Arnirani and Gates, 1993). Such pressures in this sector tend to give rise to improvements to fashion ranges, the re-evaluation of selections and, where necessary, realignments to brand image. 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