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

Case of Zara

By

Table of Contents

CHAPTER 01: INTRODUCTION1

Background of the Study1

Problem Statement2

Research Question2

Purpose of the Study2

Aim of the Study3

Thesis Outline3

Limitations of the Study3

Delimitations of the Study4

CHAPTER 01: LITERATURE REVIEW5

Fashion Consumption9

Consumer Behaviour9

Customers' Behaviour towards Sales People11

Zara14

Zara in Ireland15

Zara in Dubai16

Target Markets17

SWOT Analysis of Zara18

Strengths18

Weaknesses19

Opportunities19

Threats19

PESTEL Analysis19

Political Factors19

Economical Factors20

Social Factors20

Technological Factors21

Porter's Five Force Analysis21

Corporate strategy22

Analysis of Zara22

Strategy22

Structure23

System23

Style24

References25

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 product. The enthusiasm of sellers about a product allows them to attract many buyers. The best way to be enthusiastic is to believe in products. The lack of confidence of firms can reduce the probability of the success of its products.

According to Keller (2003), the importance of product knowledge cannot be denied. However, it is not enough for companies to possess the knowledge of their products but the knowledge of competitors' products is also important. Therefore, it can be accepted that product knowledge is an important factor that determines the success or failure of a transaction.

Fashion is a growing and important industry which is the centre of a number of research projects and studies. This study will analyse the importance of product information in the fashion industry, and focus on the case of Zara.

Problem Statement

The global fashion industry is experiencing fierce competition with large chains such as H&M, Zara, and other dominating the market. The competition from global fashion brands has made it imperative for fashion retail chains to adopt methods that help them survive and compete. The examination of customers' response towards fashion product can provide an insight to sellers. This information can be utilized by brands to understand the sensitivity of customers towards products. The lack of product knowledge makes it difficult for the sellers of fashion brands to attract and retain customers. This problem restricts the growth of fashion brands in the global fashion industry (Bäckström & Johansson, 2006, pp. 417).

Research Question

This research is based on the following research question:

How do Customers behave towards product information in fashion industry?

Purpose of the Study

The purpose of this study is ...