A Study of Luxury Fashion Brand - Essay Example

The Impacts of Social Media on Purchase Intention and Brand Loyalty of Chinese Young Consumers: A Study of Luxury Fashion Brand Table of Contents Table of Contents 2 1.0 Introduction 3 1.1 Rationale of choosing this topic 3 1.2 Importance of this paper 3 1.3 Aim and Objectives 3 2.0 Literature Review 4 2.1 Social Media 4 2.2 Purchase Intention 4 2.3 Brand Loyalty 5 2.4 Social Media and Purchase Intention 5 2.5 Social Media and Brand Loyalty 6 3.0 Methodology 6 3.1 Primary data vs. secondary data 6 3.2 Research Method 7 3.3 Data collection 7 3.4 Sampling 7 3.5 Data analysis 7 4.0 Limitation 8 Reference list 9 1.0 Introduction 1.1 Rationale of choosing this topic In the current era, luxury fashion retail brands are facing different type of challenges like economic crisis, currency exchange rates and globalised competition. Organisations are facing the challenge regarding maintaining proper market share and profitability (Chinomona and Sandada, 2013). Moreover, fashion retailers are concerned to increase brand loyalty and purchase intention in the global perspective. Customers are expecting high value addition and innovative features in the luxury products. Luxury fashion brands are mainly targeting youth customers. China is offering higher selling potentials to the fashion retailers as the number of youth population is high in the country (Balakrishnan, Dahnil and Yi, 2014). Thus, marketing activities are quite crucial for gaining brand loyalty and purchase intension. Social media is proving to be one of the best medium of marketing such luxury products. 1.2 Importance of this paper Social media is one of the most emerging marketing medium in the global business scenario. Recently, such marketing mediums are used highly used by the firms in order to attract customers from different economic and demographic segments. Social media portals are using Web 2.0 base, which offers higher interaction among the potential customers (Chu, Kamal and Kim, 2013). Current study will be outlining the impacts of social media marketing on brand loyalty and purchase intention of Chinese youth fashion customers. 1.3 Aim and Objectives The paper will be aiming to outline an in-depth analysis on the impacts of the social media on purchase intention and brand loyalty of luxury fashion brands. Objective of the study will be as follows: To investigate the impacts of social media on purchase intention of luxury fashion brands To critically evaluate social media marketing polices in improving brand loyalty. To recommend some advanced social media policies for the luxury fashion retailers 2.0 Literature Review 2.1 Social Media According to DeLuca (2011), social media is highly used in the Chinese regions. It has been observed that out of 1367 million Chinese populations, 642 million peoples are using internet actively and 629 million peoples are having active social media accounts. In addition, it has been observed that 506 million people are having active mobile social accounts (Das, 2014). It has been observed that Chinese people are using social media like Qzone, Tencent Weibo, Sina Weibo, Peng you and Renren. Therefore, it can be said that luxury fashion retailers will share the features of clothing products, pricing information, store information, product range and collecting feedbacks from the customers (Gunawan and Huarng, 2015). 2.2 Purchase Intention Denk (2010) stated that customers purchasing intention varies for different factors like shopping orientation, product interest, product types, experience of the previous purchase, and trust on the particular products. Such traits are observed in luxury fashion retail brand’s purchase intension. Harden and Heyman (2009) argued that the customers buying behaviours are affected by many factors like perceived value, celebrity endorser, customer knowledge, and product packaging. However, luxury product purchase intention is a bit different than the daily needed products. People will buy necessities in every situation. Joseph (2010) criticised that the clients will be paying for the consumption or utility they are expecting from a product. On the other hand, luxury fashion products purchase traits depends on fashion statement, inflated price and uniqueness. Chinese ethnicity also affects the purchase intensions of customers. Cultural factors are suggesting values and beliefs of customers (Harden and Heyman, 2009). 2.3 Brand Loyalty Kaptan and Pandey, (2010) stated that the brand loyalty is one of the crucial factors of gaining sustainability and growth in the market. However, luxury fashion retailers are facing challenge in maintaining brand loyalty. Demographic and cultural shifts are the main reasons of lower brand loyalty. Brand loyalty also depends on core offering which includes location or premises of the organisation, service provisions and offered product or service (Kim and Ko, 2010). On the other hand, Liang and Dang (2015) argued that brand loyalty also increases with the help of higher satisfaction and level of flexibility in products and services. Flexibility depends on the customer’s participation and ambivalence (Borstrock, 2014). Again, marketplace plays key factors in developing loyalty among the customers. Luxury fashion retailers have to utilise opportunity to change as to gain inactivity loyalty. Maintenance of the demographics and budget requirement will increase loyalty among the customers of luxury fashion retailer (Rehmani, and Ishfaq, 2011). 2.4 Social Media and Purchase Intention Online population is the major source of promoting the products and sharing products related information (Sin, Nor and AlAgaga, 2012). It can be said that social media promotions will create higher rate of sophistication among the existing and potential clients. Global firms are using the social media platforms in order to reach maximum number of customers. In the era of smart phones or mobiles, online and social platforms are highly used in terms of building interaction (Souiden and Pons, 2009). Thus, it can be said that social media affects purchase intentions of luxury clothing customers. 2.5 Social Media and Brand Loyalty Social media are used to increase the brand loyalty among the existing customers. It has been observed that 50% of the Chinese population are active internet users (Wang, Yu and Wei, 2012). It is more than many other Western countries which signifies more potential customer communication. Social networks are sourcing high rate of customer interaction and they will be more satisfied. In China, almost 600 million active social media accounts are observed. On the other hand, 500 million people are using the social media accounts via their mobile devices. Thus, leading luxury fashion retailers are using social media portals in maintaining higher interaction (WonjinJung, 2012). 3.0 Methodology 3.1 Primary data vs. secondary data In case of the study, data collection sources are very crucial stage which gathers relevant materials. Data sources are mainly two types like primary and secondary. Researcher can collect primary data through direct interaction process with the predetermined respondents. Such sources will be providing most appropriate information and knowledge about the impacts of social media on brand loyalty and customer buying behaviour (Gobo, 2011). On the contrary, secondary data sources represent some available and acknowledged evidence regarding the concerned topic. Such data can be obtained from books, journals, empirical researches, website blogs, and articles. Such data sources will help in citing more trustworthy information. In the current research, both the data sources will be used to provide more evidence in support of topic (Denk, 2010). 3.2 Research Method The researcher will be having the options of qualitative and quantitative researches. In the current study, quantitative research method will be selected in terms of gaining latest information on the impacts of social media on customers purchase interest and brand values. Such research method will be emphasising numerical data which helps in maintaining proper citing of evidence. In addition, numerical or quantitative approach will help in investigating on the change of sales and performance (Sandvik, 2010). 3.3 Data collection Data collection technique is another crucial stage for the study. Mainly, the study will be using quantitative approach so questionnaire survey will be used to collect data regarding the impacts of social media on the purchase interest and brand loyalty of the Chinese youths. In the current research, a set of 10 close ended questionnaires will be used in terms of gaining proper information regarding the concerned topic. Such questionnaire will be considering socio-economic, demographic and direct topic related question. The survey will be conducted through the online or social media (Denk, 2010). 3.4 Sampling In the current study, a sample of 100 Chinese youths of 18-25 years age will be selected to investigate on the current topic. Probability sampling and simple random method will be used to select the samples. The sample will be providing highest best possible idea on the impacts of the social media portals in increasing purchase interest and brand loyalty among youth luxury clothing customers of China (DeLuca, 2011). 3.5 Data analysis Collected data will analysed by the use of SPSS software. The software will frame the results in a graphical and tabular manner. Such data reports will be reporting fluctuations and discrepancies very well. Moreover, it will increase the quality of the research on the current topic (DeLuca, 2011). 4.0 Limitation Viability of collected data: Collected data on the impacts of social media on the purchase interest and brand loyalty of the Chinese youths might not viable. Time constraint in Research: The research might be facing the challenge for limited time period. The researcher needs to design the research very well so that they can mitigate the pressure of time. Processes must be designed by using a systematic Gantt chart framework (Gobo, 2011). Budget restrictions: The research will be conducted for educational purpose, so budgets restrictions are faced during the research. Reference list Balakrishnan, B., Dahnil, M. and Yi, W., 2014. The Impact of Social Media Marketing Medium toward Purchase Intention and Brand Loyalty among Generation Y. Procedia - Social and Behavioral Sciences, 148, pp.177-185. Borstrock, S. (2014). Do contemporary luxury brands adhere to historical paradigms of luxury?. Global Fashion Brands: Style, Luxury & History, 1(1), pp.231-248. Chinomona, R. and Sandada, M., 2013. Customer Satisfaction, Trust and Loyalty as Predictors of Customer Intention to Re-Purchase South African Retailing Industry. Mediterranean Journal of Social Sciences, 7(5), pp.157-161. Chu, S., Kamal, S. and Kim, Y., 2013. Understanding consumers responses toward social media advertising and purchase intention toward luxury products. Journal of Global Fashion Marketing, 4(3), pp.158-174. Das, G., 2014. Linkages of retailer personality, perceived quality and purchase intention with retailer loyalty: A study of Indian non-food retailing. Journal of Retailing and Consumer Services, 21(3), pp.407-414. DeLuca, C., 2011. Interpretive validity theory: mapping a methodology for validating educational assessments. Educational Research, 53(3), pp.303-320. Denk, T., 2010. Comparative multilevel analysis: proposal for a methodology. International Journal of Social Research Methodology, 13(1), pp.29-39. Gobo, G., 2011. Glocalizing methodology? The encounter between local methodologies. International Journal of Social Research Methodology, 14(6), pp.417-437. Gunawan, D. and Huarng, K., 2015. Viral effects of social network and media on consumers’ purchase intention. Journal of Business Research, 23(7), pp.215-219. Harden, L. and Heyman, B., 2009. Digital engagement. New York: AMACON. Joseph, J., 2010. The experience effect. New York: AMACOM. Kaptan, S. and Pandey, S., 2010. Brand imitation. 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Product recall crisis management: the impact on manufacturers image, consumer loyalty and purchase intention. Jnl of Product & Brand Mgt, 18(2), pp.106-114. Wang, X., Yu, C. and Wei, Y., 2012. Social Media Peer Communication and Impacts on Purchase Intentions: A Consumer Socialization Framework. Journal of Interactive Marketing, 26(4), pp.198-208. WonjinJung, Y., 2012. The Effects of Perceived Values of Mobile Shopping on Customer Loyalty and Purchase Intention. The business studies, 13(5), pp.203-226. Read More