references

JUOUL:
IJAZAH:
UNIVERSITI MALAYSIA SABAH
BORANG PENGESAHAN STATUS TESIS@
PENYELIOIKAN OALAM PENENTUAN BAGI JENAMA
KORPORAT OALAM INOUSTRI FESYEN 01 BAN OAR KOTA
KINABALU, SABAH.
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. Tesis adalah hakmilik Universiti Malaysia Sabah.
2. Perpustakaan Universiti Malaysia Sabah dibenarkan membuat salinan untuk tujuan
pengajian saya.
3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran
antara institusi pengajian tinggi.
4. TIDAK TERHAD.
(P:erT'd'Tis: HO SU SAN)
Alamat:
P. O. BOX 980,
90710 Sandakan,
Sabah, Malaysia.
Tarikh: 2007
Disahkan oleh
(TANDATANGAN PERPUSTAKAWAN)
(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

TITLE PAGE
DECLARATION
ACKNOWLEDGEMENTS
ABSTRACT
ABSTRAK
TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
LIST OF APPENDICES
CHAPTER 1: INTRODUCTION
1.1 Overview
1.2 Research Problem
1.3 Rationale of the Study
1.4 Scope of Study
1.5 Objective of Study
1.6 Definition of Terms
1.6.1 Corporate Brand Image
TABLE OF CONTENTS
1.6.2 Physical Facilities and Store Atmosphere
1.6.3 Price and Promotion
1.6.4 Product-Related Attribute
1.6.5 Customer Service
1.6.6 Corporate Identity
1.7 Summary and Organization of Remaining Chapters
Page
ii
iii
iv
v
ix
x
xii
1
3
4
5
6
5
5
6
6
7
7
7
8
v

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
2.2 Brand
2.3 Corporate Branding
2.3.1 The Importance of Corporate Branding to Companies
2.4 Corporate Brand Image
2.5 Retail Strategy and Retailer Image
2.5.1 Fashion Retailing
2.6 Consistent Corporate Brand Through Staff
2.7 Determinants of Retail Corporate Brand Image
2.7.1 Physical Facilities and Store Atmosphere
2.7.2 Price and Promotion
2.7.2.1 Retailer Pricing Format
2.7.3 Product-Related Attribute
2.7.4 Customer Service
2.7.5 Corporate Identity
2.8 Consumers Demographic Characteristics
2.9 Summary
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Theoretical Framework
3.3 Definition of Variables
3.3.1 Retail Corporate Brand Image
3.3.2 Physical Facilities and Sore Atmosphere
10
12
13
17
18
20
21
23
24
28
30
30
32
36
37
42
44
45
45
47
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47
vi

3.3.3 Price and Promotion
3.3.4 Product-Related Attribute
3.3.5 Customer Service
3.3.6 Corporate Identity
3.3.7 Age
3.3.8 Gender
3.3.9 Occupation
3.3.10 Education Level
3.4 Research Hypothesis
3.5 Type of Study
3.6 Nature of Study
3.7 Instrument
3.8 Sample Design
3.9 Data Collection Method
3.9.1 Primary Data
3.9.2 Secondary Data
3.10 Data Analysis
3.11 Summary
CHAPTER 4: RESULTS
4.1 Introduction
4.2 Descriptive Statistics of Profile of Respondents
4.3 Reliability Test: Cronbach's Alpha
4.4 Statistics of Variable Overview
4.4.1 Descriptive analysis on independent variables
47
47
48
48
48
48
48
49
49
51
52
52
53
54
54
54
55
56
57
57
59
61
61
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 Hypotheses testing on the moderating variable 75
4.7 Summary of Findings 83
CHAPTER 5: DISCUSSION AND CONCLUSION
5.1
5.2
5.3
5.4
5.5
5.6
Introduction
Recapitulations of Study
Discussion and Implication of Study
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
Limitations of Study
Suggestions for Future Research
Conclusion
REFERENCES
APPENDICES
85
85
86
97
98
99
100
114
viii

LIST OF FIGURES
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
Page
ix

Table 2.1
Table 3.1
Table 3.2
Table 4.1
Table 4.2
Table 4.3
Table 4.4
Table 4.5
Table 4.6
Table 4.7
Table 4.8
Table 4.9
Table 4.10
Table 4.11
Table 4.12
Table 4.13
. Table 4.14
Table 4.15
LIST OF TABLES
Corporate Brand Characteristics
Sample Design
Statistical Method For Hypothesis Testing
Respondent Profile
Cronbach's Alpha
Mean and Standard Deviation
Paired Samples Test
Ranked Variance of Determinants For Corporate Brand Image
Mu!tiple Hegression for Local Fashion Retail
Analysis of Variance for Local Fashion Retail
Variables in Equation of Local Fashion Retail
Multiple Regression for Local Fashion Retail
Analysis of Variance for Local Fashion Retail
Variables in Equation of Local Fashion Retail
Hierarchical Regression with Moderating Variable
(Foreign Fashion Retail)
Hierarchical Regression with Moderating Variable - Age
(Foreign Fashion Retail)
Hierarchical Regression with Moderating Variable - Gender
(Foreign Fashion Retail)
Hierarchical Regression with Moderating Variable - Occupation
(Foreign Fashion Retail)
Page
15
54
56
58
60
63
66
. 67
68
68
68
71
72
72
75
76
77
79
x

Table 4.16
Table 4.17
Hierarchical Regression with Moderating Variable -
Education Level (Foreign Fashion Retail)
Summary of Hypotheses
81
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

1.1 Overview
CHAPTER 1
INTRODUCTION
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

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, product­
related 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

2.1 Introduction
CHAPTER 2
LITERATURE REVIEW
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. The success of the brand (by reputation or by image), and its
10

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