THE EFFECT OF BRAND IMAGE, BRAND QUALITY, AND BRAND EXPERIENCE TOWARDS BRAND LOYALTY THROUGH CUSTOMER SATISFACTION ON NIKE APPAREL IN SURABAYA

Abstract

Apparel industry plays a pivotal role in developing countries economy in terms of revenue generation and job creation. Due to the global sourcing and high level of price competition, apparel industry is facing a drastic change. Positive growth in the global apparel market is mostly caused by favorable demographic factors, rise in disposable incomes, change in consumer behavior and a substantial shift towards branded apparel. In 2016, sales of sportswear, increasing just fewer than 7% and outpaced all other categories for the third year in a row. The biggest part of that market is still held by the performance of sportswear, “sports-inspired is the category driving growth,” said Bernadette Kissane, Euromonitor’s apparel and footwear analyst, in the report. Over the past few years, activewear has turned into a huge part of everyday fashion and eaten into sales of regular clothes. Nike, Inc. was found on 8 September 1969. It involved in many things, which are design, apparel, selling athletic footwear, services, equipment, accessories, and marketing. Nike-owned retail store, internet website, and other independent distributors and licensees throughout the world are ways where Nike distributes its products. In 2017, Nike retained its position as the most valuable apparel brand in the world. Nike is proofed to have strong brand loyalty. Therefore, the researcher has planned to conduct the study of factors that influences Brand Loyalty of Nike. The data used in this test were collected from 142 respondents. Five-point Likert type was used to obtain respondent’s level of agreement. The eligibility of 142 respondents, they must have bought Nike apparel for at least three times in six months. The study revealed significant result of Brand Image towards Customer Satisfaction, Brand Experience towards Customer Satisfaction, Brand Quality towards Brand Loyalty, and Customer Satisfaction towards Brand Loyalty. As well as insignificant results of Brand Quality towards Customer Satisfaction and Brand Image towards Brand Loyalty. This research used descriptive analysis and multiple linear regression analysis with SPSS to test the relationship between variables. This research finding revealed that in order Nike to gain Brand Loyalty Nike should focus on improving its Customer Satisfaction. To increase Customer Satisfaction, Nike should focus on Brand Image, Brand Quality, and Brand Experience