RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

CHAPTER 1
Introduction
In every part of the world consumers always tend to choose different services and
products without knowing much about that products specification and the proper usage of
that product. Consumers are purchasing intentionally different brands which they havent
used before. In some cases, they buy without having much understanding about that new
product. Besides it is very hard to understand for every consumer about the
characteristics of that new product or service and this causes perplexity among the
purchaser for obtaining information about a new company which has entered in the
market recently. The researchers want to determine how popular Adidas is as a
sportswear brand by the impact level and reason of brand loyalty to Adidas. The
researchers also wants to know what influences most of the consumer why they buy
Adidas sportswear weather it is the brand name, quality, price or the strategy promotion
of Adidas sportswear. The purpose of this research is to investigate how the respondents
are influenced by the level and reasons of brand loyalty towards sportswear brand of
Adidas. The research result showed that there is positive significance relationship
between factors of level and reasons of brand loyalty. Many companies, especially those
in sportswear industry try to enhance brand loyalty among their customer. Level and
reasons of brand loyalty are a consumers conscious or unconscious decision expressed
through the intention or behavior to repurchase a particular brand continually. Brand

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

loyalty has been proclaimed to be the ultimate goal of marketing . The researchers choose
this topic because being one of the consumer and being marketing student the readers
identify what other specification of Adidas sportswear that makes them one of the most
top brand in the Philippines.
Background of the study
Many companies are improving their product to assure the needs of the customers.
Adidas sportswear is one of the most famous sportswear brands in the Philippines. For
some instances when a consumer decides to purchase a sportswear, he or she usually go
first for the family decision besides its satisfaction level, comfort, quality and price. Level
and reasons of brand loyalty is a function of both behavior and attitudes. It is a
consumers preference to buy a particular brand in product category. It occurs because
consumers perceive that the brand offers the right product features, image, or level of
quality at the right price. This perception becomes the foundation for new buying habits.
Consumer will initially make a trial product of brand and, when satisfied with the
purchase, tend to form habits and continue to purchase the same brand because the
product is safe and familiar. The purpose of this study is to gauge the level of customers
to Adidas and to identify the reasons why they patronize Adidas products.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Statement of the problem

The aim of this paper is to analyse various factors that affect the level and reason
for brand loyalty of the customer of Adidas sportswear. Specially it seeks to answer the
following question.

1. What is the demographic profile of the respondents

1.1 Age
1.2 Gender
1.3 Profession and income
2. What is the level of brand loyalty of Adidas sportswear customer
a. Very loyal
b. Loyal
c. Some what loyal
3. What is the major factor why customers by Adidas products?
4. What is the implication of findings to:
a. To the company
b. To the customers
c. Other sportswear brand

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Hypothesis
This paper intends to critically analyze the factors that influence sportswear customer
brand loyalty towards specific brand. The following hypotheses are consequent on the
basis of factors that influence brand loyalty.
Ho: There is no significant difference between factors including style, price, quality and
brand name of Adidas sportswear.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

Theoretical Framework
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The theoretical framework of this research is as follows.
This provides insight about level and reason of brand loyalty based on theory derived, by
reviewing advertisement on Adidas sportswear people will get the information about the
product. First in the style, Visual appearance of a produce product creates affection to
customer influencing to purchase is termed as style, Price, is the money spent to purchase
a product. When a customer gets loyal to specific product, price does not obstruct him to
purchase but to create loyal customer brand need to offer quality product providing
superior value for money. Product quality, Product quality that affects brand loyalty of
Adidas customer includes durability and performance of fabrics, color , size, cutting,
finishing, functionality ,and comfort features of sports wear, Brand name, Brand name is
the establishment and nourishment of identity, image, and quality over the long period of
time. Attributes of brand image in case of Adidas sports wear includes good reputation,
attractive brand image, this research framework would be a big help for both sellers and
consumer parts.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Conceptual Framework

LEVEL OF BRAND LOYALTY

Very loyal

QUESTIONNAIRES
Loyal

Somewhat loyal

INPUT

FACTORS/REASONSFOR
BRAND LOYALTY

PROCESS

Price
Stlye
Quality
Brand name

OUTPUT

Figure 1.
Research Study on the level and reasons of brand loyalty of Adidas
sportswear.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

The purpose of this research is to investigate how the respondents are influenced by level
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and reasons of brand loyalty of Adidas. Brand loyalty is important for an organization to
ensure that its product is kept in the minds of consumer and prevent them from switching
to other brands. Researchers show that it is not easy to obtain and maintain consumer
loyalty for companys product because there are many forces drawing consumer away
such as competition, consumer thirst for variety, etc . The figure above shows that there
are four , only five are shown in the figure above of brand loyalty which are price, style,
quality and brand name.
Significance of the Study
The outcome of the study of research on the level and reasons of brand loyalty of
Adidas sportswear will benefit the company.
Company- The result of this study will help the marketing strategy of Adidas
sportswear.
Customer The study will help the customer to understand when any new local
company enters into the market rather gaining much knowledge about the characteristics
and usefulness of the product.
Future researchers This study may serve as guide or reference for any related
research.
Competitors The study will help to gathered some information that they can
make their own strategy for their company.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

Scope and Limitations

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The scope of the study is limited to Adidas festival Branch only. The duration of the
study is from June 2015- October 2015.This includes all the product of Adidas
sportswear. This paper has chosen sample of 100 respondents in the selected area at
festival Mall Alabang.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY

OF ADIDAS SPORTSWEAR.

SAN
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CHAPTER
2 COLLEGE OF BUSINESS ADMINISTRATION
Related literature
Sportswear brands like Umbro, Puma, Reebok, Fila and Adidas are popular to sportswear
customers. Young people take Sportswear as a general and popular category because it is
identified by them with a greater flexibility, comfort and more relaxed lifestyle.
Manufacturers such as Adidas and nike started expanding their business definitely in the
Asia to achieve higher sales volime for their products. Lot of companies tries to increase
brand loyalty among their customers particularly in sportswear industry. Brand loyalty is
defined as a customers careful or careless decision which is represented by the
willingness or attitude of repurchasing continuosly a definite brand. The final goal of
marketing is popularly known as the brand loyalty. Brand loyalty suggests a customer
pledge of repurchasing the product of the brand through repeatedly purchasing a service
or a product and positives attitudes like promising word from them. This suggest that the
repeated purchase decision is greatly dependent on the performance quality of the product
or service and trust.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY 10

OF ADIDAS SPORTSWEAR.

Foreign study
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This study investigates brand loyalty and other brand performance metrics in the UK
sportswear market. It utilizes consumer purchase data kindly provided by Taylor Nelson
Sofres. The study finds that empirical regularities discovered by Andrew Ehrenberg and
colleagues apply to sportswear brands - including iconic brands such as Nike and Adidas.
The main findings are that (1) sportswear brands enjoy polygamous loyalty from their
buyers; (2) the market exhibits the classic double jeopardy pattern whereby smaller
brands have slightly lower loyalty; (3) consumers switch between sports brands
approximately in-line with their market share; and (4) a brands performance with respect
to any demographic-based consumer sub-group is approximately the same as it is in the
population generally. That is, sportswear brands tend not to have markedly different
appeal to particular demographic segments. Therefore, even iconic brands and selfexpressive, emblematic product categories show predictable patterns in brand
performance. These well-documented empirical patterns should be used by research
providers and brand managers to contextualize brand performance.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY 11

OF ADIDAS SPORTSWEAR.

Local study
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This study which began in August of last year revealed that among Filipino teens, the top
brand is Bench, followed by Jollibee, Nike, Jag Jeans, Adidas, Natasha, Nokia, Coke,
Avon, and Tribal. On the other hand, for Filipinos in their early twenties, Jag takes the
number one spot followed by Bench. Lee and Levis also made it into the top 10 for this
age group.
The TRU Study 2012 Philippines Edition is composed of 1,200 face-to-face interviews of
Filipinos from age 12-24 spanning across A,B,C,D and E households across the nation
including urban and rural areas. It is a valuable resource for companies to understand the
behaviors, preferences and purchasing habits of teens, ensuring that their strategies and
marketing campaigns communicate to and are relevant to their target audience.
The study also showed that Filipino teens average weekly spending is now estimated at
Php327, amounting to a total annual value of Php268.8 billion, roughly 18% higher from
last years Php278 average spending per week. On the Filipino young adults segment
which is just about half of the teen population, theres an estimated Php322 billion
spending capacity

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY 12

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Synthesis of the Review

The study is a valuable resource for companies to understand the behaviors, preferences
and purchasing habits of teens, ensuring that their strategies and marketing campaigns
communicate to and are relevant to their target audience.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY 13

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

CHAPTER 3

Research Design

The proponents use descriptive method for research. In this method, the researcher
interacts with the participant, uses surveys or interviews to collect the necessary
information. The researcher will use this method because of its productive ability in
future possibilities as well as good provision of basis in decision making and the best
methods for collecting information that will demonstrate relationship and describe the
world as it exists.

Respondents
The researcher used purposive sampling:
Purposive sampling- The respondents of the study are choose based on their
knowledge of the information required by the researcher.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY 14

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Primary data Primary data is data, which is collected by the researcher themselves.
This kind of data is new, original research information. Primary source enable the
researcher to get as close as possible to what actually happened and is hands on. A
primary source reflects the individual viewpoint of participant or observer. Primary
sources are first- hand information from a person who witnessed or participated in event.

Secondary data is using information that has already been produced by other people.
A secondary data is used by person usually not present at the event and relying on
primary source documents for information. Secondary source usually analyse and
interpret. Finding out about research that already exist will help from new research.

Data Gathering Procedure / Research Instrument

First- We will write a letter Adidas to Festival Mall permission to conduct a study about
their customer. We will distribute the survey forms o the respondents. We will collect all
the questionnaire, we will tally the data , Lastly the computation will determined the level
and reasons of brand loyalty of Adidas sportswear. And the research study on the level
and reasons of brand loyalty of Adidas sportswear was constructed and validate by the
adviser.

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY 15

OF ADIDAS SPORTSWEAR.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Statistical Treatment

To evaluate responses obtain from each respondent, we use the following:

Percentage

Percentage= f / N x 100 %
Likert scale- is a psychometric scale commonly involved in research that
employs questionnaires. It is the most widely used approach to scaling responses
in survey research, such as that the term is often used interchangeably with rating
scale, or are accurately the likert-type scale, even though the two are not
synonymous.

RANGE
0.0 - 1

REMARKS
Strongly disagree

1.01 - 2

Disagree

2.01 - 3

Agree

3.01 - 4

Strongly agree

Analysis of Variance

RESEARCH STUDY ON THE LEVEL AND REASONS OF BRAND LOYALTY 16

OF ADIDAS SPORTSWEAR.

The ANOVA Table

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BUSINESS ADMINISTRATION
Source of
Variation
Between
groups
Within
groups

Sum of Square

Total

TSS

SSB
(column)
SSW
(error)

df
k-1
k(n1)
nk-1

Mean Square
2

___SSB ___

S1 =

k-1

Tabular f
2

S1

S2 = __SSW___
k(n-1)

When the variance of two or more independent sample

f ay1,y2

f =_________
2

S2

differ, the test statistics that is

appropriate to determine the significance of such difference is the analysis of variance

( ANOVA) which makes use of the F ratio or variance ratio. The various groups being compared
are assumed to belong to a population with normal distribution, each group randomly selected
and independent form the other groups and variables form each group have standard deviations
that are approximately equal.