Marketing Research Method Proposal

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SAMPLEOFPASTSTUDENTREPORT.pdf

Executive Summary

In this research report, we have 102 participants to help us with an online survey to

determine whether the 3 factors which are quality, reliability, and experience affects young

consumers’ intention the purchase original Adidas sneakers. This report includes statement of

problem of why Adidas sneaker is one of the top of sports apparels’ sales. There will also be

3 research questions to be discussed, along with the objectives of this research. There will

also be discussions about research hypothesis with the independent variables and dependent

variable. Next, how and where the survey being conducted, sample plan and size, and targeted

population are the factors that we need to be considered. The development of questionnaire

can be found in this report in order to know how the questionnaire have been put together.

Table of the findings with 102 participants will be shown in this research report. The

limitations of conducting this survey will also be discussed to prevent wrong understandings

on the findings that had done in this survey.

Introduction

This proposal will be talking about how the research of “factors affecting young

consumers’ intention to purchase original brands/product” with the 3 factors that we have

chosen, which is quality, reliability, and experience. According to Sang and Hyun (2000),

these 3 factors are what the young consumers see in original brands. The brand and product

that this research will be Adidas sneakers. Adidas footwear are their original and initial

products when they first started off back in 1925 (Caula, 2013). The famous three stripes of

the logo and on the shoes were initially created to help add stability to the sneakers (adidas,

n.d.). Later on, they came up with an ideology of 3 guiding principles for the three stripes,

with it being “design the best shoe suitably to the necessity of sports, protect athletes from

injury, and make durable products” (adidas, n.d.). As we can all see that there is a growth in

demand of Adidas sneakers in the market in the recent years. Apparel and footwear are the

largest segments in the Adidas group (Statista, n.d.). Being the second in the global market

while still catching up to the top, they have produced 360 million pairs of shoes in 2016, it is

currently the highest figure to-date (Statista, 2018). On the other hand, talking about

counterfeit products, it has caused a major growth in the Chinese manufacturing scene, but it

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is for the wrong reasons of having reduced costs of manufacturing, transportation and

distribution (Anonymous, 2013). There are no interest in building a brand reputation from the

perspective of selling counterfeit products (Anonymous, 2013). The end result of a counterfeit

product may look as good as an original product, but by selling it at an immensely lower price

while obtaining a greater profit (Anonymous, 2013).

Statement of Problem

There are many other brands and apparels, but why is Adidas’ sneakers blooming in

the global market? As mentioned above, Adidas are quickly catching up to Nike as the top of

global market with their increase of sales. So what are the factors that are influencing the

consumers to have the urge to purchase Adidas sneakers? It goes up to over 500 percent

increase in price for customers that resells the infamous Adidas sneaker, Yeezy

(Lindsay-Diaz, 2017). It is stated that the shoe uses high-technology to produce it to be

comfortable and has a unique design to it, which meets the demand of the market nowadays

(Lindsay-Diaz, 2017). It is also a designer line product by Kanye West which helps to

promote their reliability on the shoes to the consumers. Ricadela (2016) stated NFL star

DeAndre Hopkins started off Houston Texans’ season by wearing sneakers designed by

rapper Kanye West, combining hip-hop culture and sports is a part of Adidas’ strategy that is

resonating with youths. This is how youths are attracted to the shoes because they feel like it

is reliable to have the same shoes as their idols or top celebrities. Adidas has also made use of

social media with Instagram which will attract more young consumers, where they had the

most liked sneaker account in 2015 (Sandison, 2016). Sandison (2016) also said that Adidas

gave their Twitter followers the chance to have their own preferences made up in green and

white of the Stan Smith tongue artwork, this helps the customer to feel that they are a part of

the campaign. These kind of interaction with customers will help Adidas to gain more trust

and therefore, consumers would buy their original products and not counterfeit products.

Consumers’ attitude in purchasing original products could also because of the reason

having bad experiences from past purchases of counterfeit products. Quality of counterfeit

products may be worse than original products by quite a margin and would probably cost

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more for consumers to purchase counterfeit than original products. If one did not get enough

research of a counterfeit product, you have got to expect that the quality will not be there and

if that is true, you are going to need another pair of sneakers sooner or later (Luangel, 2018).

For example, a counterfeit product that cost $100 can only last for 2 months, while an original

product of $300 can last for 2 years. Eror (2017) stated that a pair of counterfeit Air Max 97s

have already started to strain by only wearing it for a couple months. It is found that past

behaviour forms a habit with repeated performances (Triandewi & Tjiptono, 2013).

Triandewi and Tjiptono (2013) further stated that it can be anticipated that past purchase can

result in an intention to purchase in regards of either original or counterfeit products or

brands. In a study that Penz and Stottinger (2005) carried out, they indicate that the contrast is

that the original brand or product consumers buy genuine brands for what exclusive luxury

brands really mean, whereby on the other hand, counterfeit product consumers purchase just

the social acknowledgement and the status of genuine brands by paying lesser for it (Penz &

Stottinger, 2004).

Research questions

In this studies, we proposed that there are three factors to affect intention of young

consumers to purchase Adidas sneakers. They are quality, reliability and experience.

Product quality is the level of ability to demonstrate the function of a product. It

includes overall durability, reliability, accuracy, ease of operation, and maintenance of the

product as well as other product attributes (Chris, 2010). Quality means that a seller’s product

has certain selling points that the competitors’ product do not own (Chris, 2010). Product

quality is rapidly becoming an important competitive issue between manufacturers. Some

surveys indicate that consumers are dissatisfied with the quality of the products they have

purchased and the level of service. Recently, a North American company commercial

research shows that managers rated ‘production-to-high-quality standards’ as their main

concern (MITSloan, 1984). In 2003, there are 57% of respondents said the product’s quality

is more important (Bangret,2015). It seems that the major thinks that quality is one of the

main factor to consider when they purchase a product. Adidas sneakers are one of the most

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best selling brand among sneaker brands. We want to find out is it the quality which really

affect young consumer to purchase it but not the pirated sneaker.

Research Question 1:

How does quality affect intention of young consumers to purchase original Adidas sneakers?

The second factor influencing young consumers to purchase original Adidas sneakers

is reliability. As we all know, cheaper products are conveniently available but they do not

have durable life. In addition, comparing to the past, reliability of products are far more

concern by consumers. This trend has caused consumers’ expectation of reliability of

products has increased (Pawluk, 2013). The reliability of a product embodies the concept of

durability, successful operation or performance, and failure-free. This is an external property

that is of great interest to both manufacturers and consumers (Murthy, 2007). Thus, according

to the trend, reliability is one of the main concern of purchasing a product. One of the goal of

our research is to assess reliability, which is young consumers wear Adidas sneakers longer in

time with great performance influencing they purchase it.

Research Question 2:

How does reliability affect intention of young consumers to purchase original Adidas

sneakers?

Thirdly, young consumers purchase Adidas sneakers because of their past experiences

of wearing it. A company that focuses more on customers’ experience will find it easier to

compete with competitors because customers’ experience has became more important than

the product itself (Erik, 2018). mentioned that customers should be given good experiences

but not just a product. The process of purchasing is very emotional, the more customers are

satisfied, the more likely they will repurchase it. Product experience refers to the familiarity

of customer by accumulating the number of product-related experiences and the the product’s

ability to perform its related functions successfully (Hoch, 2002). Product experience is a

scenario that includes expressions such as personal feelings behavioral reactions and

physiological responses (Desmet, 2007). Thus, product experience is an effect that is leaded

by the interaction between the product and the consumer, which is young consumers and

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Adidas sneakers, it includes the degree to which consumers’ senses are satisfied, the

implications that young consumers add-on to Adidas sneakers and the feelings and sensations

that are caused.

Research Question 3:

How does experience affect intention of young consumers to purchase Adidas sneakers?

Research Objectives

The researchers believe that quality, reliability and experiences might be the factors

that affect young consumer to purchase Adidas shoes. In order to reach these objectives, a

survey to young consumers will be carried out. One questionnaire will be used and assigned

to young consumers to investigate the factors to affect young consumer to purchase Adidas

shoes.

Research Objective:

This purpose of this study is to investigate influences of quality, reliability and

experience to affect intention of young consumers to purchase original Adidas sneakers.

Research hypotheses

In order to reach this research goal, it is necessary to define the independent variable

and dependent variable of this research. The independent variables are quality, reliability and

experience of Adidas sneakers whereas the dependent variable is intention to purchase

original Adidas sneakers of young consumers.

The better the Adidas sneakers’ quality, the more the young consumer intent to

purchase it. Adidas is a company providing high quality shoes (Editorial, 2018). It also said

that among all Adidas products, shoes are the most famous product. Adidas continuously

manufacture and design large quantities of high quality shoes to meet the needs of consumers

including young consumers. These shoes require much consideration when they are

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manufactured. It is said that only the best and qualified quality of Adidas shoes which

including sneakers are being sent to all round the world for sales (Editorial, 2018).

H1: Quality positively influences the intention of young consumers to purchase original

Adidas sneakers.

In this research, we found that reliability also affecting intention of young consumers

to purchase Adidas sneaker . For example, Adidas Energy Cloud, one of the Adidas sneaker is

said to have excellent durability and comfortable to wear for all-day standing (Run Repeat,

2018). There is another example of reliability of Adidas sneaker which is Adidas Ultra Boost.

People that have tried it said that they are appreciate the reliability and durability of Adidas

Ultra Boost (Run Repeat, 2018). From the cases above, we can see that reliability is greatly

considered by consumers as well as young consumers to have more suitable and comfortable

sneakers.

H2: Reliability positively influences the intention of young consumers to purchase original

Adidas sneakers.

When young consumers had previously wore Adidas sneakers, they will base on their

experiences to choose whether will repurchase them or not for the next time. In our research,

we will choose experience as the factor to affect the intention of young consumers to

purchase Adidas sneakers is because that positive customer experience is very important

because customers are smart and they have the right to choose a competitor’s company if

their customers satisfaction is low (Ross Beard, 2014). When young consumers like their

experiences of wearing Adidas sneakers, they will purchase them again to recall their

satisfaction of wearing Adidas sneakers.

H3: Experience positively influences the intention of young consumers to purchase Adidas

sneakers.

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Research Method

The Target Population

Target Population means the group of individual who carries almost the same

characteristic, and in our proposal, our target population will be the young consumer between

ages 18-25 (Kate Mayer, 2016), who are willing to purchase Adidas sneakers or have

purchase Adidas sneakers before as our respondent. As we know, the self-image of Adidas

provide to us is young and sporty, it’s very close to young consumer image, this attracts

young consumer choose to purchase Adidas sneakers.

Sample plan and size

The sample size of our research will be 102 young consumers who live in Kuala

Lumpur. The reason we target young consumer in KL is the people who live in Kuala

Lumpur have a higher purchasing power than another place, because Kuala Lumpur is the

capital city of Malaysia, and the price of Adidas sneakers is expensive than another brand

sneakers, it means no everyone can afford it.

Development of Questionnaire

The questionnaire consists of 6 sections, first section will be our purpose for this

survey. For the section 2, we will ask about the basic information of the people. we will ask

their intention to buy original Adidas sneakers in 3rd section, the question is adopted from

Klein (2002) and Klein et al (1998). ​The section 4 will ask about is that quality of original

product is important to them, and the question adopted from ​Zed, H., Rashid, K., and Javeed,

M, (2011)​. The question on 5th section will ask about reliability, adopted from​ Nijssen and

Douglas (2004)​, and last section will ask their experience on original Adidas sneakers, the

measurement scale of all factors will be five-point scale format.

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Data Collection Method

For the data collection method, we have used online survey to collect our data. The

first benefit of the internet is we can receive a more details data because some people have

said when they have a face to face interview. Besides that, sometimes they won’t provide a lot

of useful information when the question is sensitive to them. Besides that, we can use online

to speed up our analysis, if using the traditional method to collect and analyze data, we will

spend a lot of time in analysis data.

Research results

According the descriptive statistics table above, we can find the mean which is the

average of all numbers, and the standard deviation which calculates the quantity expressing

by how much the participants of the survey differ from the mean value for the group. we can

conclude that the mean of 5.44 for age states that the average participants in this research

survey are from age 20 to 21 as their value in the SPSS data is 5 and 6 respectively. Besides

that, a high standard deviation of 1.48 means that age do have effect on different perception

on intention to purchase original Adidas sneakers. Next, we look at the row of salary which

have the mean of 1.80, which means that the average participants in this survey have a salary

of less than RM500 to RM1000 which have the value of 1 and 2 respectively in SPSS data.

With the standard deviation of 1.072, it is a high value which determined that the salary

influences the intention to purchase original Adidas sneakers.

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Here we can see the mode which represents the most frequent number that occurs in

the set of numbers (Khanacademy, n.d.). It had been stated that the intention mode is 5 and

whereas the quality and reliability mode are both at 4, which mean that most people agree that

the quality and reliability of original Adidas shoe affects the intention to buy original Adidas

sneakers. But the mode of experience falls at 3.5 which is between neutral and agree in the

questionnaire.

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From the table above, we can see that there are more male than female that have participated

in this survey with 56 and 46 participants accordingly.

Paired sample T Test

For the paired sample t-test, we can know about which independent variable was

performed well, by comparing the mean. From the SPSS output, we find that the average

mean of reliability, quality, and experience is 3.7222, 3.9044, 3.3529, the average mean of

quality is higher than reliability and experience, and the reliability is higher than experience.

For the pair 1, the Sig. value is 0001, the value is less than 0.05. When the Sig. is less than

0.05, we can conclude that there is no statistically difference between quality and reliability.

From the SPSS output, the mean number of quality was higher than the mean of reliability,

we can conclude that the performance of original Adidas sneakers quality is better than

reliability. For the pair 2, the Sig is 0.000, less than 0.05, there is a statistically significant

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difference between quality and experience, and the mean of quality is higher than experience,

which means the performance on quality will affect consumer intention to purchase the

original product than experience. For the pair 3, the Sig is 0.000, less than 0.05, there is a

significant difference between reliability and experience, and the mean of reliability is better

than experience, we can conclude that the performance of reliability of original Adidas

sneakers was better than the experience of original Adidas sneakers.

Linear Regression Analysis

The linear regression analysis is used to study the relationship between dependent

variable and independent variable. Bass on the output, the R value is 0.209, which indicates a

low degree of correlation, and the adjusted R square is 0.044, thus, 4.4% of the variances in

the dependent variable can be explained by the independent variable, which is very low

correlation between intention to buy and quality of original product. From the ANOVA table,

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our Sig is 0.035, which is lower than 0.05, it shows that the regression model statistically

significantly predicts the outcome variable. For the regression equation will be:

Intention to buy= 2.372+0.319 (Quality)

Based on the output, the R value is 0.014, which indicates a low degree of correlation,

and the adjusted R square is 0.000, its show that there is almost no correlation between

dependent variable and independent variable, which is intention to buy and reliability of

original product, it mean the reliability of original Adidas sneakers, will not affect the

intention to purchase original Adidas sneakers. Besides that, the R square value is -0.01, it

means the relationship between this two variable is negative, and our hypotheses assume that

reliability positively influences the intention to buy original product, is different with our

research result. From the ANOVA table, we know that our Sig is 0.888, which is higher than

0.05, this data show us that the regression model is not statistically significantly predicts the

outcome variable, it not a good fit data. From the coefficients table, we know the regression

equation is :

Intention to purchase= 3.534+0.022 (Reliability)

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For the linear regression between intention to buy and experience, the R value is

0.114, which indicates a low degree of correlation, and the adjusted R square is 0.013, thus,

1.3% of the variances in the dependent variable can be explained by the independent variable,

which is very low correlation between intention to buy and experience the product. From the

ANOVA table, we know that our Sig is 0.254, higher than 0.05, it means it not a good fit

data. In the coefficients table, our Sig is 0.254, this means the experience is not statistically

significant and does not seem to have an impact on the intention to purchase toward the

original Adidas sneakers, and the equation will be:

Intention to purchase=3.012+0.181 (Experience)

If we compare this three factors, the quality of the original product has the strongest impact

on intention to purchase the original product.

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Limitations

Even though the research have its own goals, there were some limitations that are

unavoidable. First, we are only limited to get responses from young aged group and mostly

from college and university students. Young consumers that are working might have different

perceptions towards buying original goods. The young consumers with different backgrounds

will probably have different purchasing practices. Sample size is also a limitation in this study

as we were to involve around 100 participants among our society, a larger sample size would

get a more generalised study outcome, as people from different regions will have different

perceptions of original and counterfeit products. Another limitation to the study might be

unethical answers, participants may not answer our questionnaire honestly, which will affect

our overall findings for the research. For example, there may be some participants who just

simply answer the questionnaire, which create conflicts when we are making conclusion with

the study outcomes. Adding on to that, different regions or areas will have different practices

in daily activities and also buying habits, there might be regions with few places to buy

counterfeit products. In contrast, there might be areas where original brands are not located

in, consequently, consumers may buy counterfeit products. Besides that, only 3 factors are

limited to be discussed and other factors like design, society influences are not being

discussed. For example, some people purchased original Adidas sneakers to resell it for a

higher price because they know that there are people would want to have it. Thus, the

demands for the shoes will be higher. Moreover, influences from their friends or family that

doing the business of reselling original Adidas sneakers which made great profit will also

affect them. There are also people that being influenced from the surroundings where original

Adidas sneaker is a must-have product in the society nowadays. Besides, this research report

shows that the data that we collected is not fit to the research report. This may cause by few

reasons. For this research question all the hypothesis we made in the beginning of the project

did not have the outcome we expected they would. There are probably many reasons for this,

it could be that in composing the questionnaire we made the wrong assumption of what the

answer would be.

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C​onclusion

In response to the objectives provided earlier in the report, a few conclusions can be

drawn. Our research is focused on how the factors, which is experience, reliability and quality

affect young consumer’s intention to purchase original Adidas sneakers. There are 102 targets

of this research reports. Our target consumers are between the age 16 to 27 and their gender

are 56 of male and 46 of female. We also do record for their salary, which most of them are

below RM500 per month. We can conclude that young consumers purchase original Adidas

sneakers is mostly due to the quality of original Adidas sneaker. Secondly, they prefer

original Adidas sneaker because of its reliability and the last factor is because of their

experience of using it. Therefore, it is proven that two of our hypothesis are right, which is

quality and experience are all positively influences the intention of young consumers to

purchase original Adidas sneaker. However, a hypothesis was proven wrong which is

reliability is actually negatively affect the intention of young consumers to purchase original

Adidas sneakers. It also concludes that age and salary are very significant factors that affect

intention to purchase original Adidas sneakers. In our research report, the dependent variable

is intention to purchase original Adidas sneakers while the independent variable is

experience, quality and reliability. The dependent variable can be explained by the

independent variable. From the research result, we know that quality of original Adidas

sneaker has most impact on young consumers to purchase it. Next, it is reliability and

experience has the least impact for young consumer to purchase original Adidas sneakers.

We have also found some limitation for our research project which is the our sample

size is not large enough. Besides, the participants may not answer the questionnaire honestly

which will also affect the research result. Next, there are only 3 factors to be discussed for

this research, therefore, there might be other factors that would be neglected that are

important to affect their intention to purchase original Adidas sneaker.

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Recommendation

Although we have finished our research, there is a lot of things that we need to

improve on our next research. The first thing is how we get responses from the young

consumers that is working. However, the mindset of young working consumer from the same

age group will have a different view and opinion towards counterfeit products. We need to

include their view in our future research to analyze a more specific result. The most important

issue that we need to improve and address is our data. After finish the research, we realize

that our dataset is not a good data to fit our research hypothesis. The correlation between the

dependent and the independent variable is below our estimation, especially the independent

variable, reliability, has a negative influence towards intention to purchase original Adidas

sneakers. For our future research, we will expand our sample size. For this report, we have

received 102 responses, but we think that this is not enough for us to interpret more specific

details. Lastly, for our future research, we will spend more time because the study is not

enough for our report. When we read more, we will seek out more questions that we need to

address and more knowledge that we do not know before. Although we cannot read all the

resources on the internet or library, but we will try our best to read more journal and resources

to do our research in the future.

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