Executive summary of “Chinese young consumers’ brand loyalty toward sportswear products: a perspective of self-congruity”

Citation

(2015), "Executive summary of “Chinese young consumers’ brand loyalty toward sportswear products: a perspective of self-congruity”", Journal of Product & Brand Management, Vol. 24 No. 4. https://doi.org/10.1108/JPBM-07-2015-903

Executive summary of “Chinese young consumers’ brand loyalty toward sportswear products: a perspective of self-congruity”

Article Type: Executive summary and implications for managers and executives From: Journal of Product & Brand Management, Volume 24, Issue 4

This summary has been provided to allow managers and executives a rapid appreciation of the content of this article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefits of the material present.

The sportswear market in China has grown massively over recent years to become the world’s second largest behind the USA. Increases in disposable income and better living standards are commonly cited as major reasons for phenomenal average growth of almost 30 per cent per annum.

Nike, Adidas and other global brands account for almost one-third of sportswear sold in China, while around another 20 per cent is attributed to several leading domestic brands. The huge market in China is, however, divided into various smaller markets based on size, level of economic development and the differing needs and spending power of consumers. Records show that the Chinese market is generally ordered by four tiers of cities ranging from the most developed and attractive to the least. International brands tend to focus on affluent consumers in first-tier cities, whereas domestic Chinese brands typically target segments in the medium and lower ends of the market.

But increased competition has seen a shift in emphasis meaning that global brands are now paying greater attention to markets in Tier 2 and Tier 3 cities. Analysts argue that this poses a risk to a brand’s image in that current customers might no longer identify with the brand and be more open to switching their allegiances. Retaining existing customers should thus be a major priority for sportswear brands operating in the Chinese market.

Brand loyalty has been subjected to substantial research attention and is typically purported to incorporate both attitudinal and behavioral dimensions. Such as “preferences, commitment and purchase intention” are reflected through attitudinal loyalty. Consumers indicate behavioral loyalty by purchasing the brand on a frequent or habitual basis. Different scholars have suggested that a positive relationship exists between the two dimensions. Various antecedents of brand loyalty are similarly proposed and classified as being:

• Cognitive: Based on information and incorporating such as knowledge and beliefs.

• Affective: Such antecedents include associations and other aspects which reflect someone’s brand-related feelings.

• Conative: Relating to “behavior dispositions” toward a brand. Switching costs would be one example.

The influence of various antecedents on brand loyalty has been well-researched, and evidence suggests that certain cognitive and affective elements are often particularly important. These include:

• Brand association: This refers to things which remind someone of a brand and can include product attributes, logos or situations of usage. Consumers are able to differentiate a brand on these associations, which also help in the building of valuable brand equity.

• Perceived quality, based on intrinsic and/or extrinsic cues: The first named concern product features, whereas brand name, logo, product packaging and advertising are among the most salient external cues. The latter cues are more influential when an individual is unable to evaluate quality based on direct product attributes alone.

Self-congruity is also becoming recognized as a potentially important antecedent of brand loyalty. Certain theoretical perspectives purport that individuals will favor brands whose image closely relates to their self-concept. By consuming such brands, people believe they can enhance both their social identity and self-esteem. Consumers therefore display greater positivity toward brands which best enable them to “express their sense of self”. Research indicates that higher levels of self-brand congruity results in attitudes and purchase intentions becoming more favorable.

Perception of competing brands is likewise strongly influenced by country-of-origin effects. Many studies have confirmed that people’s evaluation of products from a certain nation is strongly influenced by their existing knowledge about the country concerned. Nation stereotypes and reputations evoke certain images, and consumers also base their quality and reliability judgments on the country’s level of economic development. Within emerging economies, people typically evaluate global brands more highly than domestic alternatives in terms of product quality and performance. Different academics have found evidence of similar tendencies among Chinese consumers who additionally felt that consumption of international brands has a positive effect on social status and face.

Lu & Xu explore these issues in a study involving 333 subjects interviewed in the streets of a town in Shanghai. The majority of subjects were college students aged between 18 and 24, with males accounting for 61.9 per cent of the sample. These respondents were deliberately chosen for various reasons including their level of brand awareness, spending power and status as the youngest independent consumer segment.

Subjects were asked to reveal the brand they purchased most often. Frequency of purchase relative to other brands bought in the same category was also indicated. Analysts refer to this as share of category requirement. Statements addressed attitudinal brand loyalty, brand association and perceived quality with regard to the brand most frequently bought. Self-brand congruity was measured too.

A domestic Chinese sportswear brand was bought most often by 203 participants, with the remainder of the sample listing a global brand. Only 20 per cent of subjects made a purchase more than three times a year. Purchase frequency of their favorite brand compared to others indicated a generally low level of behavioral loyalty among those surveyed.

Further analysis confirmed expectations that brand-self congruity positively impacts on consumer brand association and perceived quality of sportswear products. Its direct influence on attitudinal brand loyalty was likewise indicated along with an indirect effect through brand association and perceived quality. Brand-self congruity’s indirect influence on behavioral brand loyalty via brand association, perceived quality and attitudinal brand loyalty was also evident.

Additionally, young Chinese participants showed more positive brand associations and stronger attitudinal loyalty toward global brands compared to domestic alternatives. But this was not reflected in their purchase behavior. The authors suggest that product availability and financial constraints might be at least partly responsible. In the opinion of other scholars, attitudinal loyalty can predict future behavioral loyalty when the right circumstances prevail.

Findings here illustrate that sportswear brands operating in the Chinese market should focus on building long-term relationships and invest as necessary. Lu & Xu point out that the prevailing tendency to purchase multiple brands could indicate willingness to switch among available offerings.

Identification of the consumer with firm and/or brand has previously been recognized as important. Marketers are consequently advised to create a brand image which resonates with the main group of current or potential customers. It is equally crucial to ensure that brands reflect the image of typical users. Communication efforts that help strengthen brand association and quality perceptions are likewise recommended.

According to the authors, current levels of behavioral loyalty need not overly concern global brands. They should instead acknowledge their appeal to young Chinese consumers and strive to improve the affordability of their products. This is especially significant to marketers extending to lower-tier Chinese cities. Global brands are additionally urged to improve design and development to create more positive brand associations in consumer minds. Efforts to differentiate offerings from domestic providers in China should include an emphasis on the unique aspects of the brand’s image.

Mediation effects of other variables like brand trust and economic value are potential avenues for future research. Another idea is to examine additional outcomes of brand-self congruity such as word of mouth. Investigating specific products within the sportswear category and using samples from different Chinese cities is also suggested.

To read the full article enter 10.1108/JPBM-05-2014-0593 into your search engine.

(A précis of the article “Chinese young consumers’ brand loyalty toward sportswear products: a perspective of self-congruity”. Supplied by Marketing Consultants for Emerald.)