Deploy of Statistical Tests in analyzing the factors

IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol.7, No.1, Jan-Feb 2017

Deploy of Statistical Tests in analyzing the factors influencing the Consumer Fabric Brand Preference Jakkireddy Suresh Reddy1, Dept. of Management Studies, RGMCET,Nandyal,A.P. State,INDIA K A Ramana2, MBA Dept., AVRSVR,Nandyal,A.P. State,INDIA

Abstract The lifestyle of the large section of the people in India is changing very rapidly. There is a need to understand the emerging markets and consumers and this has become a big challenge for the marketers especially in designing, creating and managing powerful brands. Because of globalization process, Indians are getting tilted towards readymade apparels, specifically Multinational brands. Buying behavior of men on branded shirts is changing one. Number of people visits the showroom with a brand in mind because the quality and comfort of that brand are suitable for them. It becomes very vital for the corporate

to understand these relationships for successful design and execution of branding strategies. This study is with regard to the analysis of the factors influencing the consumer fabric brand preference. Most of the respondents were of in and around Nandyal town. Primary data was collected with the help of structured questionnaire administered to respondents in Nandyal city and the type of sampling was convenient sampling. To check the reliability and validity of the data collected various statistical tests were used. Based on different test results some of the relevant findings were derived which will be useful to find the attributes that influences the consumer fabric brand preference. The marketers can design suitable marketing strategies to overcome the different marketing issues. Keywords Brands, Brand Preference, Consumer, Price, Apparel 6


I. Introduction Product & Brand management holds the key in the present day globalised markets, particularly in Indian markets because India is a big country and the citizens too are very traditional. After few years of market duration many multibrand companies have entered into the Indian market. By the mid 1980's however the Indian customer thinking have started changing gradually, in addition with increasing urbanization, and changes in the social and economic status and life styles. As in many other industries in the nation, the move towards retail branding, specialized stores had increased in the Indian market. In this study, an attempt was made to study and analyze the factors influencing the consumer fabric brand preference. II. Review Literature Numerous studies in the past have provided considerable evidence that gender relates to consumers’ perceptions, attitudes, preferences and purchase decisions (Bakewell and Mitchell 2006; Sproles and Kendall, 1986; Canabal, 2001). Pathak and Tripathi (2009) made a study entitled “Customer Shopping Behavior among Modem Retail Formats: A Study of Delhi & NCR”. The Study is an exploratory research conducted in Delhi & NCR. It specifically focuses on customer shopping behavior in Indian

scenario among the modern retail formats (Sumathi, 2003). Objectives of the study are to find out the factors that affect the buyer's decisions among the modern retail formats and to evaluate the comparative strength of these factors in buying decision of the buyers. On the basis of primary as well as secondary research the authors note that retailers often over look the schemes and offerings expected by the customers and tried to impose their own offerings upon customers which ultimately cause the dissatisfaction (Fornell, et al., 2006; 2009). It is also observed that in the changing retailing environment, understanding the psyche of a customer is critical for success in retailing. Aggregate level picture may be misleading, as it averages the beats and the valleys. Hence, Individual understanding is desirable (Mishra, 2009). It is further stated that the Indian customers have become more sensitive to quality, customer service and status. She/he is ready to pay, sometimes, astronomical sums, provided their needs are satisfied. They are basically looking for an experience which is more of cognitive than physical (Biplab, (1998). III. Research Question The main purpose of this study is to find and analyze the factors influencing the consumer fabric 7


brand preference in and around the Nandyal town.

Nandyal Town and the following data is collected with preference of Six Fabric brands.

IV. Research Methodology Hypothesis Primary data was collected with the help of structured questionnaire administered to the respondents in and around Nandyal Town and the type of sampling was convenient sampling. Pilot study was conducted and the necessary additions and deletions were made in the questionnaire. Talking about the analysis part of questionnaires, firstly, the filled questionnaires were thoroughly studied to see if the responses are true and unbiased so that it does not mislead to some false results. The Population of Nandyal town is the research population for the research work. The sample unit for this particular research is readymade garments & cloth showrooms in and around Nandyal markets. V. Data Analysis using Statistical Tools V.1 A. Chi-Square Test-Goodness of Fit Chi-Square test goodness of fit is appropriate when there is one categorical variable. A sample of 204 consumers having the Family relative position as Uncle , Aunt etc & Neighbors, were taken randomly in and around the

Null Hypothesis, H0 = No Influence of Relatives over Fabric Brand Preference Alternative Hypothesis, H1 = Influence of Relatives over Fabric Brand Preference

Fabric Brand

Raymond Dicjam Vimal Park Avenue Van Heusen Allen Solly Total

Fabric Brand Preference due to influence of Relatives & Neighbors 52 21 24 28 30 45 200

Table V.1.1 Looking at the data, it is clear that most of the relatives and neighbors influence the consumers in preferring the Raymond fabric brand. But statistically, we have to find out whether this preference had arised due to chance. Therefore the appropriate test is Chi-Square test of goodness of fit.

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Fabric Brand Preference due to influence of Relatives & NeighborsObserved Frequency (O)

Fabric Brand Preference due to influence of Relatives & NeighborsExpected Frequency (E)

(O-E)2

Raymond

53

34

361

10.62

Dicjam

22

34

144

4.24

Vimal

24

34

100

2.94

Park Avenue

28

34

36

1.06

Van Heusen

31

34

9

0.26

Allen Solly

46

34

144

4.24

Total

204

204

Fabric Brand

23.35

Table V.1.2 Note: Under Null hypothesis of influence of Relatives over Consumer brand preference, expected frequencies for all fabric brands equals to 34.

No the the the

Applying the Chi-Square test formula, the computed value of Chisquare is 23.35 The critical value of Chi-Square at 5% level of significance for 5 degrees of freedom is 11.0705. So, the null hypothesis is rejected. Statistical Conclusion Since the computed chi-square value 23.35 > 11.0705 (Critical value), the inference is that relatives

influences the consumer brand preference i.e., there is statistical significance between the relatives and the consumer brand preference. V.2 B.Chi-Square Independence

Test

of

Chi-square test of Independence is appropriate when there is need to find the relationship between the two categorical variables. A representative stratified random sampling procedure was adopted covering the entire market using income as the basis of selection. The categories that were used in classifying income level are: Lower Income, Middle Income, Upper 9


Middle Income and High Income. A sample of 300 consumers participated in this study. The following data emerged from the study.

chosen the brand were shown in the cells. The Actual or Observed frequencies are as follows

Cross tabulation of Income levels and Brands. No.of customers Brands Income Levels

Raymond

Dicjam

Vimal

Park Avenue

Van Heusen

Allen Solly

Total

Lower Income

16

25

9

8

9

9

76

Middle Income

16

11

12

10

11

12

72

Upper Middle Income

15

10

7

6

9

6

53

High Income

26

20

15

18

9

11

99

Total

73

66

43

42

38

38

300

Table V.2.1 Expected Frequencies (These are calculated on the assumption of the null hypothesis being true: That is,

income level and brand preference are independent).

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Brands Income Levels

Raymond

Dicjam

Vimal

Park Avenue

Van Heusen

Allen Solly

Total

Lower Income

18.49

16.72

10.89

10.64

9.62

9.626

75.99

Middle Income

17.52

15.84

10.32

10.08

9.12

9.12

72

Upper Middle Income

12.89

11.66

7.59

7.42

6.71

6.71

52.98

High Income

24.09

21.78

14.19

13.86

12.54

12.54

99

Total

72.99

66

42.99

42

37.99

38

300

Table V.2.2 Compute the,

Each cell in the table below shows (O-E)²/(E) Brands Income Levels

Raymond

Dicjam

Vimal

Park Avenue

Van Heusen

Allen Solly

Total

Lower Income

0.33

4.1

0.32

0.65

0.03

0.04

5.47

Middle Income

0.13

1.47

0.27

6.34

0.38

0.9

9.49

Upper Middle Income

0.34

0.23

0.04

0.27

0.78

0.07

1.73

High Income

0.15

0.14

0.04

1.23

0.99

0.18

2.73

Total

0.95

5.94

0.67

8.49

2.18

1.19

19.42

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Statistical Conclusion Therefore , the value of C2 = 19.42 The critical value of c² depends on the degrees of freedom. The degrees of freedom = (the number of rows-1) multiplied by (the number of colums-1) in any contingency table.

Consumer preference

Fabric

A sample of 300 consumers were taken and collected their fabric brand purchases in a pleasant and in an unpleasant Atmospheres. Hypothesis

In our case, there are 4 rows and 6 columns. So the degrees of freedom =(4-1). (6-1) =15.

H0 : µ1 = µ2

At 5% level of significance, critical c² for 15 d.f =24.99.

Significance Level = 0.05

Therefore accept the null hypothesis and reject the alternative hypothesis. The inference is that consumer fabric brand preference and income levels are not closely associated. So, the companies need not consider the income levels at the time of positioning the fabric brands. But in most of the cases, the income levels and consumer brand preference are closely associated.

brand

H1 ; µ1 ≠ µ2

Fabric brand

Pleasant Store Atmospher e

Unpleasa nt Store Atmosph ere

Differe nce

Raymond

62

36

26

Dicjam

24

26

-2

Vimal

28

11

17

Park Avenue

24

14

10

Van Heusen

23

16

7

Allen Solly

21

15

6

182

11

Total Mean(X-bar)

10.67

But when it comes to the fabric brand preference, consumers don’t mind to purchase the costly brand though their income is low because the fabric had become a necessity.

Standard Deviation No. of observations ( n)

6

5.3 C. Paired Sample t-test was carried to test the influence of the Store Atmosphere on the

Degree of Freedon (df)

5

9.71

Table V.3.1

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t = Mean value- Hypothesized value

Location 1

Location 2

Location 3

25

54

39

22

29

32

t= 2.69

19

31

23

p value =0.02

26

36

31

Statistical Conclusion

21

29

32

Since the p value 0.02 < 0.05 , we reject the null hypothesis, concluding that there is a decent evidence that the store atmosphere influences the consumer fabric brand preference.

26

58

35

Standard Deviation √n

V.4 D. One Way ANOVA , One Factor with three independent levels Different fabric brand sales were observed at three different retail apparel locations shown as below. The fabric brands took for study are Raymond, Dicjam, Vimal, Park Avenue, Van Heusen, Allen Solly.

Table V.4.1 Anova: Single Factor Summary Groups

Count

Sum

Average

Varian ce

Location 1

6

139

23.166 66

8.566

Location 2

6

237

39.5

171.5

Location 3

6

192

32

28

Table V.4.2

Hypothesis H0 : µ1=µ2=µ3 H0 : µ1≠µ2≠µ3 α = 0.05 Retail Location is the factor/variable , which is of three levels.

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ANOVA Source of Variation

SS

Df

MS

F

p-value

F-Crit

Between Groups

802.111

2

401.055

5.782

0.013751

3.682

Within Groups

1040.333

15

69.355

Total

1842.444

17 Table V.4.3

Statistical Conclusion Since the calculated F-Value 5.782602 > 3.62232 F-Crit , we reject the Null Hypothesis , That is there is significant relationship between the Retail Locations and Consumer Fabric Brand Preference. So, we can conclude that retail locations influence the consumer fabric brand preference. VI. Conclusions and Implications This study analyzed and even reviewed the factors influencing the apparel brand in and around Nandyal town. However, it is believed that apparel brand’s visual and physical characteristics have a great influence on Consumer Attitude and Purchase Decision.

on consumer buying decision, limited studies were found investigating the relation between textile product attributes and consumer purchase decision. Most of these studies were concerned with preference of product attributes. Price of apparel products is a crucial factor affecting consumer purchase decision. VII. Limitations While conducting this research work, some of the respondents couldn’t respond properly. The research work is limited to only in and around Nandyal Town. The working professionals need to be contacted at prior appointment. Small sample size.

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VIII. References 1) Canabal, M. E. (2001). Decision making styles of young South Indian consumers: An exploratory study. College Student Journal, 36(1), 1219. 2) Dickson MA. US consumers' knowledge of and concern with apparel JFMM 1999; 3(1): 44-55 3) Jayashree, Y. (1998).Consumer behavior and fashion. Textile trends. 40:3343 4) Klerk HMd, Tselepis T. The early‐adolescent female clothing consumer: Expectations, evaluation and satisfaction with fit as part of the appreciation of clothing quality. JFMM 2007;11(3): 413-28

making styles. Journal of Consumer Affairs, 20(2), 267279 8) Simonson, I. , Nowlis, S.M.: The role of explanations and need for uniquenesss in consumer decision making: unconventional choices based on reasons, Journal of Consumer Research , Vol . 27(2000), No. 1, pp. 49-68 9) Statistical Analysis: Gupta S.P.Tungate, M. Fashion Brands: Branding Style from Armani to Zara,Kogan Page , ISBN-10: 074944299, Great Britain,(2005) 10) Yang K, Young AP. The effects of customized site features on internet apparel shopping. JFMM 2009; 13(1): 12839.http://dx.doi.org/10.1108/13 612020910939923

5) Pathak. S.V. and Aditya P. Tripathi., (2009). Consumer shopping behaviour among Modern Retail Formats: A Study of Delhi & NCR. Indian Journal of Marketing, 39(2), PP. 312 6) Radeloff DJ. Psychological types, color attributes, and color preferences of clothing, textiles, and design students. Cloth Textiles Res J. 1991; 9(3): 59-67 7) Sproles G. B. and Kendall, E. L. (1986). A methodology for profiling consumers’ decision

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Deploy of Statistical Tests in analyzing the factors

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