EXECUTIVE SUMMARY 2
Thisresearch elaborates the findings of a brand influence on customer’sintention to make a purchase. It uses the data collected from UNIQLOCo. Ltd, a leading cloth manufacturing company based in Japan.200 responseswere gathered to analyze how the brand name, reputation, and imageinfluence consumers purchase decisions. The report also analyses theincome level and its relation to a brand.
Regressionmethod was used to test the relationship between the variables. Acut-off probability of 0.05 was used to indicate the satisfactionrelationship between dependent and independent variables (Wheatleyand Chiu, 1977). According to Person Correlation Test, it wasdiscovered that the validity of purchase intention, brand image,name, and reputation was more than 0.5, while the reliabilityaccording to Cronbach’s Alpha was more than 0.7.
Thestudy found out that there is a higher correlation between purchaseintention and brand (image, reputation and name). It is for thatreason that UNIQLO has managed to remain as a leading corporation inthe business market as its products have a strong image, which isconsidered by customers as a mark of quality thus leading to strongerpurchase intention.
Also,the study found out logos, symbols and names that are associated withorganizations influence how customers make purchase decisions. Thestronger the brand name, the more likely it will influence consumersto buy its products as they seek its association.
Moreover,the study found out that an excellent brand name translates intopositive purchase intention, while negative brand reputation meanslow likelihood to influence a consumer to purchase a product. Brandreputation is always tied to the company’s values and mission.Those products that match the visions and values of the organizationare prone to induce consumers to purchase them.
Furthermore,Crosstab Tests were generated to identify the trend of income levelstowards brand name, image, and reputation (Wheatley and Chiu, 1977).It was found out that the higher the income, the more the consumersbecome conscious of a brand name, image, and reputation when theyintend to make purchase decisions, while consumers who have a lowincome are less likely to be influenced by brands (Wheatley and Chiu,1977).
Withthe above findings, the research recommends that to target a widersegment UNIQLO should expand their stores and utilize differentstrategies that are relevant to the target market. UNIQLO, shouldprovide low-income consumers with past season products at discountedprices and also, provide basic attire so as to capture the youth’smarket. Additionally, the report recommends that high-quality storesshould be opened, which target high-income earners who are consciousof a brand image, reputation, and name.
Also,UNIQLO can target the athletes by manufacturing sports attire as theyprobably travel a lot hence creating global awareness. Furthermore,the report recommends that UNIQLO changes their store`s displays tocolasorsthat emphasize brightness that will draw attention. Finally, thereport recommends that UNIQLO increases their product lines such asperfumes, watches, business cases, wallets among others to keep oncreating awareness of the brand.
Thus,the study has proven that there is a positive correlation between thethree variables of brand and customer’s intention to purchase. Onthe other hand, the level of income affects the consciousness ofconsumers differently. The higher the income, the higher the brandconsciousness, while the lower the income, the lower the brandconsciousness.
Wheatley,J.J. and Chiu, J.S., 1977. The effects of price, store image, andproduct and respondent
characteristicson perceptions of quality. Journalof Marketing Research,pp.181-186.