Comparative Analysis on Customer Sensitivity on Production Information in Fashion Industry -

Case of Zara

By

Acknowledgment

I would like to acknowledge the contributions of my research supervisor, teachers, friends and parents who have supported me throughout this research.

Declaration

I declare that this research is based on my individual efforts, and the research has not been published before.

Abstract

This research aimed to understand the sensitivity of customers with product information. In this research, the industry of fast fashion was chosen because it has been growing rapidly. The focus of this research was on the case of Zara which is a fastest growing fast fashion brand. In order to conduct this research, a mixed research methodology was chosen which involves both quantitative and qualitative research methods. Primary data was gathered from duty managers and customers of Zara. According to the findings of this study, product information has an important role in the purchase decision of customers. Therefore, this is important for companies to ensure that their sales staff are equipped with updated information of products and latest offerings.

Table of Contents

CHAPTER 01: INTRODUCTION1

Background of the Study1

Problem Statement2

Research Question2

Purpose of the Study3

Aim of the Study3

Objectives of the Study3

Limitations of the Study3

Thesis Outline4

Delimitations of the Study4

CHAPTER 01: LITERATURE REVIEW5

Resource-Based View of the Firm8

Product Knowledge in Customer Service Experience9

Fashion Consumption10

Consumer Behaviour10

Customers' Behaviour towards Sales People11

Zara14

Zara in Ireland15

Zara in Dubai16

Target Markets17

SWOT Analysis of Zara18

Strengths18

Weaknesses18

Opportunities18

Threats19

PESTEL Analysis19

Political Factors19

Economical Factors19

Social Factors20

Technological Factors20

Porter's Five Force Analysis21

Analysis of Zara22

Strategy22

Structure23

System23

Style23

CHAPTER 03: METHODOLOGY24

Research Philosophy25

Research Strategy25

Research Instrument25

QUALITATIVE AND QUANTITATIVE DATA26

Primary and Secondary Sources27

Primary sources27

Secondary Sources27

Reliability and Validity27

Case study28

Method critique28

Sampling28

Data Analysis29

Research Structure29

CHAPTER 04: THEORETICAL FRAMEWORK30

Zara - Global Operations30

Standardization versus Adaptation30

Zara's Key Factors of Success32

Culture of the Middle East and Europe36

Middle Eastern Culture - Key Concepts and Values40

Cultural Differences between Middle East and Europe - Hofstede's Cultural Dimensions42

Power Distance43

Individualism versus Collectivism43

Uncertainty Avoidance44

Masculinity versus Feminity44

Long Term versus Short term Orientation44

CHAPTER 05: FINDINGS46

Interview Findings46

What you took into consideration when entering the market?46

How does Zara exchange product information with customers?46

How do the products of Zara differ in different markets?47

Findings from Questionnaire47

Demographic Profile47

CHAPTER 05: CROSS EXAMINATION AND CONCLUSION58

REFERENCES60

CHAPTER 01: INTRODUCTION

Background of the Study

Over the years, there has been a growing concern in customer sensitivity. This study seeks to perform a comparative analysis of customer sensitivity on production information in the fashion industry. According to Mohd et al (2006), businesses are facing diverse risks including variety of customers' needs and demands. Customer sensitivity is a trait that allows companies to understand customers in a better way as well as the markets. Today, firms are striving to improve upon the dimension of customer sensitivity.

The importance of product knowledge has been discussed by different researchers including Seung & Seidle (2012) and Ganesh, Raghunathan & Rajendran (2008). Product knowledge can be transferred to increased sales. It is not possible for companies to sell a product without highlighting the value that it can provide to customers. The knowledge of a product allows sellers to utilize different techniques for advertisement and promotion. Sellers are not only required to be knowledgeable but also enthusiastic about a ...