Application of Factor Analysis to Identify the Factors affect the Apparel Purchase Decision of Indian Customer

 

Samuel Wesley D1, Aditi Galada2, Ambuj Deepak Gautam3

1Professor, National Institute of Fashion Technology, Chennai, India.

2,3BFTech Alumni, National Institute of Fashion Technology, Chennai, India.

*Corresponding Author E-mail: samuel.wesley@nift.ac.in, dswesley@gmail.com, aditigalada@gmail.com

 

ABSTRACT:

Staying up to date on the current market trends, meeting customer requirements and having knowledge of strategies and offerings of competitor brands is extremely crucial for a brand to survive in today’s competitive world. With globalization, consumers have myriad choice and are extremely selective while making purchase decisions. With various apparel giants witnessing high fluctuations in their performance in the past few years it is evident that the market changes over time but the only this constant is customer’s quest for quality product. To find out the factors affecting the Indian customer’s buying decision, a statistical factor analysis was carried out which uncovered five prominent factors that affected sales of a garment is arrived, namely FIT, Assortment, Perceived Value, Characteristics and Prolongation. All these five factors affecting sales were authenticated by the statistical Reliability Test.

 

KEYWORDS: Factor analysis, reliability, customer preference, Indian apparel, garment fit.

 

 


1. INTRODUCTION:

India is one of the fastest growing economies with a projected CAGR of 10 per cent making it a lucrative market. In comparison to India, the developed markets of the US, Europe and Japan are expected to grow at a meagre rate of 2-3 per cent. According to an Investindia publication, the domestic textiles and apparel industry stood at $108.5 bn in 2019-20 of which $75 bn was domestically consumed while the remaining portion worth $28.4 bn was exported to the world market. Textiles and garments industry is expected to reach $190 bn by 2025-26 from $103.4 bn in 2020-21. Currently menswear is the major chunk of the market at 41% (Rs 72,000 crore) and is growing at a compounded annual growth rate (CAGR) of 9%. The gender wise apparel market segment is shown in Fig.1.

 

Figure 1: Gender Wise Market Segment; Source: India Retailing

 

Men segment (41%)

·       Found to be the major segment of the Indian apparel market.

·       Shirts and trousers form the major sub segments.

·       Denim and fitness wear are the fastest growing sub-segment

 

Women segment (38%)

·       Traditional/ethnic wear is the major sub-segment.

·       The robust growth in this segment is mainly attributed to the rising income levels, increase in the number of working women and more college going females. 

·       Craving for Western styles are also steadily increasing.

 

Kids segment (21%)

·       Forms the smallest yet the fastest growing segment

·       School uniforms form the largest sub-segment

 

One of the most critical factors determining the success of fashion retailers in India is the ability to gauge trends in consumer purchase decisions. The Indian fashion consumer is undergoing an evolution and is rapidly adapting to international fashion statements. Increasing disposable incomes, exposure to international events and fashion icons, and rising confidence levels are driving the changes in the consumer purchase behaviour. Some distinct consumer trends expected to impact the Indian fashion market are:

 

There was a time when fashion items were being purchased as and when required. Now-a-days, fashion clothing is more than a basic need; it is a reflection of aspiration, personality, and one of the biggest status symbols. The Indian fashion consumers can tell the difference between unbranded and branded apparel. They are able to decode the messages communicated by different brands on different occasions. The aspirational youth is also influenced by peer groups working with multinational companies and having international exposure. Though basic textiles and footwear continue to be a part of the consumer’s basket, the demand for aspirational fashion clothing and fashion accessories has increased substantially in recent years.

 

Although the fashion consumer is willing to spend more on clothing and accessories of choice, the consciousness of value received for the money spent has increased manifold. The weak economic outlook and higher inflation rates have also contributed to this heightened value consciousness. The consumer is inclined towards value and affordability, but, at the same time, there is an inherent need for a fashionable look.

 

Gagliano and Hathkote (1994) suggested that the perception of the quality of service strongly influences customer preferences. Jackson Donald (1999) identified factors that improve customer satisfaction. Johnson Kurt (1999) performed an elaborative study on making loyalty programs more rewarding in order to increase customer retention. Mattila and Wirtz (2001) showed the importance of enhancing store environment through music and scent to boost impulse buying behaviour and satisfaction. Summers and Hebert (2001) studied the influence of lighting on customer behaviour. The findings of the research showed that lighting could help attract and retain customers. Baker, Parasuraman, Grewal and Voss (2002) proposed that factors such as music, layout, crowd and convenience affected sales. Solgaard and Hansen (2003) proved that location, quality, clean surroundings, variety, layout and sales assistants were the most important factors. Fox, Montgomery and Lodish (2004) proposed customers are more influenced by variety and advertisement than to prices. Radha Krishna and Shylajan (2007) studied the influences of marketing and demographic factors on consumers’ buying behaviour towards branded articles. However, factors that attract customers to one exclusive brand outlet more than another remain uncovered. Aamir Hasan and Subhash Mishra (2014) state that shopping experience, store image and value for money are the prominent factors influencing customer shopping behaviour.

 

Factor analysis is a useful tool for investigating complex variable relationships. It allows researchers to investigate concepts that are not easily measured directly by collapsing a large number of variables into a few interpretable underlying factors. There are six main steps in a factor analysis:

1.     Selecting and measuring set of variables in a given domain

2.     Data screening in order to prepare the correlation matrix

3.     Factor extraction

4.     Factor rotation to increase interpretability

5.     Interpretation

6.     Reliability and validation

 

2. METHODOLOGY:

The objective of this study was to find factors that motivate customer to purchase from one brand more than another through a survey. Factor analysis was used to condense the copious variables into 5 prominent factors by detecting a structure in the relation between the variables.

 

A questionnaire consisting of 16 questions was prepared after a comprehensive review of previous research in the field. Each variable was analysed based on a 7-point Likert scale ranging from strongly agree to strongly disagree. The questionnaire consisted of two parts; part 1 included questions regarding the demographic characteristics of the customers and the part 2 (Table 1) consisted of variable related to shopping behaviour of customers at apparel retail outlets. Totally 480 customers from various parts of the country were surveyed. The participation in the survey was voluntary in order to ensure reliability.

 

The accuracy and quality of the data was increased by eliminating the data rows with missing values. Further, the rows with a standard deviation of 0 were identified and removed in order to eliminate outliers. The data was entered in SPSS and factor analysis was carried out. Further, the rows with values greater than 60% on the diagonal of anti-image correlation matrix were removed. Next, inverse relationships were checked through the identification of negative values in the rotated component matrix. The 16 variables were grouped under 5 factors through factor analysis. The reliability of the factor analysis was checked by analysing whether Cronbach’s alpha > 0.7, AVE > 0.5 and Cronbach’s alpha > AVE.

 

Table 1: Questionnaire – Part - 2

1

I expect fair price in comparison to similar products in market

2

I am willing to pay a premium for novel products

3

I prefer purchasing garments from reputed brands

4

I buy garments that have a good stitch and fabric quality

5

I purchase garments with easy wash care

6

Physical fit (such as tightness, length) carries importance

7

Aesthetic fit (overall appearance) carries importance

8

Functional fit (ease of movement) carries importance

9

Social fit (feedback & fitting in) carries importance

10

I pay attention to the material used in the garment

11

I try multiple garments until I can find the right size

12

I do not buy clothes that would make me stand out from others

13

I purchase from stores that provide variety

14

I prefer brands where collection is in corroboration with latest Fashion

15

I like trying new styles

16

I buy from stores where garments are available in a variety of colors

 

Table 2: Demographics

Variable

Category

N

n

%

Gender

Male

193

400

48.2

 

Female

207

400

51.8

Age Group

20-24

104

400

26.0

 

25-29

108

400

27.0

 

30-34

98

400

24.5

 

Above 35

90

400

22.5

Monthly Income

Less than 1,00,000

64

400

16.0

 

1,00,000 - 3,00,000

95

400

23.8

 

3,00,001 – 5,00,000

79

400

19.8

 

5,00,001 - 7,00,000

91

400

22.8

 

Above 7,00,000

71

400

17.8

 

Each question was answered based on a 7-point Likert scale as mentioned below:

1. Strongly agree; 2. Agree;  3. Somewhat agree;

4. Neutral; 5. Somewhat disagree; 6. Disagree;

7. Strongly disagree

 

3. RESULTS AND DISCUSSION:

The consolidated demographic details of the 480 respondents are given in the Table 2 and it shows that there were approximately equal number of male and female respondents. Moreover, there were almost equal number of respondents from every age group, that is, 20-24, 25-29, 30-34 and above 35. Lastly, most respondents were from the income category 1,00,000 – 3,00,000 and 5,00,001 – 7,00,000, followed by 3,00,001 – 5,00,000, above 7,00,000 and less than 1,00,000.

 

First, the survey responses with missing data were removed. Second, the standard deviation between the responses of each person surveyed were checked. If the responses has a standard deviation of 0, the response was eliminated from the dataset.

 

To ascertain the appropriateness of factor analysis Kaiser-Mayer-Oklin (KMO) measure of sampling adequacy (MSA) was performed. In this study the KMO was found to be 0.815, which indicates that the proportion of variance in the variables might be caused by underlying factors, i.e. the KMO value above 80% proves that the survey was valid.

 

As given in the Anti-Image Correlation Matrix shown in the Table 3, the values on the diagonal for all questions were above 0.600, these questions were eliminated from the dataset.

 

According to the rotated component matrix (Table 4), the variables were distributed into five factors.

 

The first factor, fit, consisted of variables related to the physical fit, aesthetic fit, functional fit and social fit. The second factor, assortment, includes influences such as variety, latest fashion, style and colour. The third factor, perceived value, consists of fair price, novel product and value for money. The fourth factor, comfort, consist of material, size and distinction. The last factor, prolongation is influenced by quality and wash care. The variables and factors has been summarized in Table 5.


 

Table 3: Anti-Image Correlation Matrix

 

Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10

Q11

Q12

Q13

Q14

Q15

Q16

Q1

.869a

-0.443

0.038

-0.211

0.088

-0.140

0.005

-0.059

0.163

-0.094

-0.073

0.114

0.078

-0.198

-0.046

0.084

Q2

-0.443

.852a

-0.423

-0.128

0.116

-0.020

0.191

-0.057

-0.080

0.036

-0.114

0.080

-0.005

-0.089

-0.189

0.127

Q3

0.038

-0.423

.881a

-0.380

-0.172

0.007

-0.215

0.042

0.048

-0.020

-0.006

-0.084

-0.007

0.093

0.037

-0.031

Q4

-0.211

-0.128

-0.380

.897a

-0.193

0.058

-0.272

0.139

-0.066

-0.003

-0.042

-0.076

0.035

0.076

-0.039

-0.009

Q5

0.088

0.116

-0.172

-0.193

.840a

-0.231

0.130

-0.250

-0.028

0.055

-0.110

0.092

-0.064

-0.051

-0.220

0.242

Q6

-0.140

-0.020

0.007

0.058

-0.231

.832a

-0.241

-0.549

0.059

0.028

-0.016

0.098

-0.084

-0.077

0.111

-0.058

Q7

0.005

0.191

-0.215

-0.272

0.130

-0.241

.881a

-0.259

0.056

-0.041

-0.044

0.053

-0.002

-0.047

-0.051

0.049

Q8

-0.059

-0.057

0.042

0.139

-0.250

-0.549

-0.259

.836a

-0.081

-0.022

-0.014

-0.152

0.045

0.164

-0.091

0.041

Q9

0.163

-0.080

0.048

-0.066

-0.028

0.059

0.056

-0.081

.749a

-0.739

-0.313

-0.154

0.113

0.020

0.054

0.012

Q10

-0.094

0.036

-0.020

-0.003

0.055

0.028

-0.041

-0.022

-0.739

.758a

-0.168

0.234

-0.281

0.054

-0.051

0.050

Q11

-0.073

-0.114

-0.006

-0.042

-0.110

-0.016

-0.044

-0.014

-0.313

-0.168

.898a

-0.090

0.267

-0.141

0.105

-0.152

Q12

0.114

0.080

-0.084

-0.076

0.092

0.098

0.053

-0.152

-0.154

0.234

-0.090

.706a

-0.613

-0.425

-0.038

0.099

Q13

0.078

-0.005

-0.007

0.035

-0.064

-0.084

-0.002

0.045

0.113

-0.281

0.267

-0.613

.725a

-0.387

-0.074

-0.016

Q14

-0.198

-0.089

0.093

0.076

-0.051

-0.077

-0.047

0.164

0.020

0.054

-0.141

-0.425

-0.387

.779a

0.068

-0.080

Q15

-0.046

-0.189

0.037

-0.039

-0.220

0.111

-0.051

-0.091

0.054

-0.051

0.105

-0.038

-0.074

0.068

.627a

-0.857

Q16

0.084

0.127

-0.031

-0.009

0.242

-0.058

0.049

0.041

0.012

0.050

-0.152

0.099

-0.016

-0.080

-0.857

.758a

 

Table 4: Rotated Component Matrix

 

 

Component

 

 

1

2

3

4

5

Q1

Physical fit (such as tightness, length) carries importance

0.854

 

 

 

 

Q2

Aesthetic fit (overall appearance) carries importance

0.801

 

 

 

 

Q3

Functional fit (ease of movement) carries importance

0.800

 

 

 

 

Q4

Social fit (feedback & fitting in) carries importance

0.791

 

 

 

 

Q5

I purchase from stores that provide variety

 

0.885

 

 

 

Q6

I prefer brands where collection is in corroboration with latest fashion

 

0.881

 

 

 

Q7

I like trying new styles

 

0.727

 

 

 

Q8

I buy from stores where garments are available in a variety of colors

 

0.705

 

 

 

Q9

I pay attention to the material used in the garment

 

 

0.969

 

 

Q10

I give emphasis to the finish of the garment

 

 

0.963

 

 

Q11

I do not buy clothes that would make me stand out from others

 

 

0.959

 

 

Q12

I expect fair price in comparison to similar products in market

 

 

 

0.936

 

Q13

I am willing to pay a premium for novel products

 

 

 

0.910

 

Q14

I prefer purchasing garments from reputed brands

 

 

 

0.757

 

Q15

I purchase garments with easy wash care

 

 

 

 

0.959

Q16

I buy garments that have a good stitch and fabric quality

 

 

 

 

0.929

 


Table 5: Summary of Variables & Factors

Factors

Factor Interpretation

(% variance explained)

Variables Included in the Factor

Fit

Eigenvalue (37.704)

Physical Fit (0.801)

 

Aesthetic Fit (0.854)

 

Functional Fit (0.800)

 

Social Fit (0.791)

Assortment

Eigenvalue (19.054)

Variety (0.885)

 

Latest Fashion (0.881)

 

Style (0.727)

 

Color (0.705)

Perceived Value

Eigenvalue (10.901)

Fair price (0.969)

 

Novel Product (0.963)

 

Brand Name (0.959)

Characteristics

Eigenvalue (9.955)

Material (0.936)

 

Finish (0.910)

 

Distinction (0.757)

Prolongation

Eigenvalue (6.535)

Quality (0.959)

 

Wash care (0.929)

 

Table 6: Ranking of Factors

Rank

Factor

Mean Values

1

Fit

4.79

2

Assortment

4.70

3

Perceived Value

4.69

4

Prolongation

4.31

5

Characteristics

4.14

 

From the Table 6, it is clear that fit is the most influential factor while purchasing a garment. This includes:

·       Physical fit: features of fit that are physically perceived when evaluating fit in terms of the relationship between clothing and body, such as tightness and length.

·       Aesthetic fit: features of fit that are visually perceived and assessed when looking at an individual’s dressed body, such as overall appearance related to the body and attractiveness.

·       Functional fit: features of fit that are perceived when the dressed body is moving for activities, related to restriction or lack of restriction of movement.

·       Social fit: feeling of well-being resulting from satisfaction with fit attained through feedback from others.

 

The second most important factor is assortment which includes:

·       Variety: number of options the customer can see before making a buying decision

·       Latest fashion: garments that corroborate with the current trends in the market

·       Style: innovative styles that provide customers with diversity for their wardrobe

·       Colour: a large number of colours in the collection

 

The third most influential factor is perceived value which includes:

·       Fair price: similar price as compared to the same product of another brand

·       Novel product: acceptable premium pricing for a new and original product

·       Brand name: perceived value of a brand

 

The fourth most dominant factor is prolongation which includes:

·       Quality: the stitch and fabric quality of the garment

·       Wash care: ease of maintenance through machine wash.

 

The least important factor is characteristics of the product such as:

·       Material: fibre composition and other properties of the fabric used in the garment

·       Finish: finishing process that the fabric or garment was exposed to

·       Distinction: garment that makes you stand out from others in a crowd.

 

The reliability of the factor analysis was checked by analysing whether Cronbach’s alpha > 0.7, AVE > 0.5 and Cronbach’s alpha > AVE and the conditions for reliability were satisfied as shown in Table 7.

 

Table 7: Reliability Test

Factor

Question

R

R2

α

AVE

Fit

Physical Fit

0.854

0.729

 

 

 

Aesthetic Fit

0.801

0.641

 

 

 

Functional Fit

0.800

0.640

 

 

 

Social Fit

0.791

0.625

0.910

0.659

Assortment

Variety

0.885

0.783

 

 

 

Latest Fashion

0.881

0.776

 

 

 

Style

0.727

0.529

 

 

 

Color

0.705

0.497

0.877

0.646

Perceived Value

Fair Price

0.969

0.939

 

 

 

Novel Product

0.963

0.928

 

 

 

Brand Name

0.959

0.919

0.969

0.929

Characteristics

Material

0.936

0.876

 

 

 

Finish

0.910

0.828

 

 

 

Distinction

0.757

0.574

0.911

0.759

Prolongation

Quality

0.959

0.919

 

 

 

Wash care

0.929

0.863

0.902

0.891

 

4. CONCLUSION:

The consumer survey conducted in order to understand the factors affecting the apparel sales were able to be identified using the factor analysis statistical tool. The factor analysis performed showed that the five factors, namely Fit, Assortment, Perceived Value, Characteristics and Prolongation made the garments more likable and gave them a higher probability of being purchased. Further, the reliability test done has proved that the identified five factors are valid in determining the apparel purchase decision making.

 

5. REFERENCES:

1.      Shin, Eonyou, "Exploring consumers' fit perceptions and satisfaction with apparel fit in general" (2013). Graduate Theses and Dissertations. 13184

2.      Ashdown, S. P. (2000). Introduction to sizing and fit research. Clemson, SC: Clemson Apparel Research.

3.      Beazley, A. (1999). Size and fit: The development of size charts for clothing - Part 3. Journal of Fashion Marketing and Management, 3(1), 66-84.

4.      Brown, P., Rice, J. (2001). Ready-to-wear apparel analysis. Upper Saddle River, NJ: Prentice Hall.

5.      Chattaraman, V., Rudd, N. A. (2006). Preferences for aesthetic attributes in clothing as a function of body image, body cathexis, and body size. Clothing and Textiles Research Journal, 24(46), 46-61.

6.      Esterberg, K. G. (2002). Qualitative methods in social research. Boston: McGraw-Hill.

7.      Fan, J., Yu, L., Hunter, L. (2004). Clothing appearance and fit: Science and technology. Cambridge, England: Woodhead

8.      Field, A. (2005). Discovering statistics using SPSS. Thousand Oaks, CA: Sage Publications.

9.      Frost, K. (1988). Consumer’s perception of fit and comfort of pants. (Unpublished master’s thesis), University of Minnesota, St. Paul.

10.   Jourard, S. M., Secord, P. F. (1955). Body cathexis and personality. British Journal of Psychology, 46, 130-138.

11.   Kim, H., Damhorst, M. L. (2010). The relationship of body-related self-discrepancy to body dissatisfaction, apparel involvement, concerns with fit and size of garments, and purchase intentions in online apparel shopping. Clothing and Textiles Research Journal, 239-254.

12.   Kinley, T. R. (2010). Fit and shopping preferences by clothing benefits sought. Journal of Fashion Marketing and Management, 14(3), 397-411.

13.   https://www.investindia.gov.in/sector/textiles-apparel#:~:text=Textiles%20and%20garments%20industry%20is,%2C%20yarn%2C%20fabric%20to%20apparel.

14.   Statista Research Department 2019, Indian Menswear Apparel Market, viewed 15 Feb 2020, < https://www.statista.com/statistics/share-of-men-s-apparel-market-by-category-india/>

15.   Philip Kotler (2011). “Kotler on Strategic Market Research” 14th Edition Chapter-4, Page 59

16.   Kala, M. (2015). To study gaps and customer perception for Menswear Private Label. Mumbai.

17.   Lew, M. Y. (2015). Analysis of Merchandise Mix of the brand-Honey and Competitive positioning of the brand- Candies. Mumbai.

18.   Adepeju Abimbola Opaleye, Adekunle Kolawole, Oliver Ekepre Charles-Owaba (2019). Application of Fuzzy Clustering Methodology for Garment Sizing. American Journal of Data Mining and Knowledge Discovery. Vol. 4, No. 1, 2019, pp. 24-31

 

 

 

Received on 06.07.2022         Modified on 08.08.2022

Accepted on 12.09.2022      ©A&V Publications All right reserved

Asian Journal of Management. 2022;13(4):330-334.

DOI: 10.52711/2321-5763.2022.00054