Thai Fashion Brands and Consumer Behaviours - Literature review Example

Literature Review Introduction The fashion clothing industry has recently been of great interest to market researchers and practitioners (Bakewell et al., 2006). This is mainly because of the profitability associated with the industry. Therefore, several researches continue to focus on the consumer purchasing behaviour associated with fashion clothing. In general, the literature overview relating to the consumer purchasing behaviour illustrates several areas of interest in the fashion clothing industry. These include consumer loyalty, satisfaction, branding, market patronage and the value the consumers attach to shopping (Bäckström & Johannsson, 2006). However, within the broad diverse literature of fashion clothing industry, the focus primarily lies on two major areas. These two primary areas of focus in the fashion clothing industry include the consumer purchasing behaviour and the subsequent subjective outcomes of the consumer purchasing decisions. Indeed, the recognition of consumer satisfaction generating consumer lifetime value is evident (Bayley & Nancarrow , 1998). The nature of clothing and satisfaction are closely related to consumer purchasing behaviour. The current research utilizes Maslow hierarchy of needs theory to determine and evaluate the factors which affect the consumer purchasing behaviour associated with fashion clothing industry in Thailand. Several researches have established that consumer purchasing behaviour is significantly determined by the subsequent satisfaction that the consumers expect to derive from a given utility (goods or services). According to Richarme (2005), consumer purchasing decisions are usually based on the expected satisfaction from a utility. Therefore, the establishment and evaluation of the factors that influence consumer purchasing behaviour is of great importance in fashion clothing industry. Consequently, this area continues to be of great interest to researchers. This is majorly because the study of the factors that influence consumer behaviour provides further understanding of consumer trends associated with the fashion clothing industry. Thai Fashion Brands and Consumer Behaviours Thailand is an integral part of the Southeast Asia market, where luxurious fashion brands cannot choose nor afford to overlook. Since its integration into the market in the 1980’s, Thailand has recorded growth of the both the upper and middle classes. This has been one of the significant factors that have led to the increase in the consumption levels of the luxury fashion brands (Carpenter, 2008). In addition, the efforts made by the Thai government to promote Bangkok, Thai’s capital city, as the regional hub for luxurious fashion brands, has also made great contribution to the increased uptake of these luxurious fashion brands in the market (Schuttle&Ciarlante, 1998). In the recent past, there has been a decrease and constrained economic growth in Europe. However, the Southeast Asian region has experienced quite accelerated growth over the same period. Consequently, this has led to the rapid expansion of several European fashion brands into the Southeast Asia region. This includes the Thailand market, which is a very significant integral part in the Southeast Asia regional market (Darian, Tucci & Wiman, 2001). Typically, the western fashion brands are usually perceived to be of higher social status. However, in Thailand, the general cultural preference for almost all the social classes is the fine fashion clothing, which has been in existence in Thailand for generations (O’Cass, 2002). In addition, the majority of the female population in Thailand have become quite fashion conscious especially due to the media influence and perceptions related to the fashion clothing industry (Rocha & Hawkins, 2005). Therefore, many luxurious fashion brands, which have ventured into the Thai fashion industry, hire celebrities and public figures to market and promote their fashion brands. Factors Influencing Consumer Purchasing Decision Identity Consumer taste and preference have been established in previous studies, as one of the major factors which influence consumer purchasing decisions. This is mostly related to the features and traits that consumers believe give them a sense of identity. As a result, brand loyalty influences the consumer purchasing behaviour (Grunert, Esbjerg, Bech-Larsen, Brunso & Juhl, 2006). In general, consumers’ choice of brand is based on personal style, influence from celebrity and the image associated with certain fashion brands in the market (Bruce & Daily, 2006). Typically, fashion clothing is considered luxurious in nature. Consequently, consumers’ purchases associated with fashion clothing are majorly based on the satisfaction of higher emotional needs rather than basic needs (Balckwell & Talarzk, 1983). The higher psychological needs relates to the sense of identity that an individual derives from wearing certain fashion brands. These aspects which relate to a sense of identity derived from specific fashion brands are very subjective and personal, hence making the consumer purchasing behaviour associated with fashion clothing to vary among consumers. In addition, the personality of an individual significantly influences the consumer purchasing decisions. This is majorly based on the general perception that appearance says a lot of about an individual. Therefore, consumer purchasing behaviour is mostly guided by the consumer’s beliefs and personality. According to Wansik (2000), consumer awareness and desire to express their sociability influences their purchasing behaviour. As a result, fashion brands incorporate other socially acceptable products such as earrings, necklaces, shoes and handbags to their brands (Alvarez & Casielles, 2005). Celebrities also have major influence on consumers’ sense of identity. The lifestyle of celebrities as portrayed by the media shapes some individuals’ identity (Nia & Zaichokowsky, 2000). Therefore, some consumers purchase certain brands so as to ascribe to the lifestyle of their favourite celebrities. Hence, the image of celebrities as portrayed by the media through award shows, celebrity magazines, red carpet events and other events associated with celebrities, greatly influences the consumer purchasing behaviour (Liao & Wang, 2009). In Thailand, the preference of certain fashion brands can be closely related the celebrities’ identification with those particular fashion brands (Carpenter & Fairhust, 2005). Physical Factors Based on the recent trends in the fashion clothing industry, brands have incorporated body shape into their fashion designs. This has largely been attributed to the influence of shape and design of fashion clothing, on the consumer’s taste and preference. Hence, today most fashion designers make clothes that would fit the body shape of different consumers and also be appropriate for their age and occupation (Duff, 2001). Generally, consumers purchasing decisions associated with fashion clothes is based on the expectation that such clothes would fit them well and they would feel comfortable wearing such clothing (Solomon et al, 1999). Therefore, fashion brands have extended their clothing line to include clothes of all sizes. This ensures that consumers can choose their appropriate sizes from the available wide selection. In addition, the nature of care that a fashion cloth requires and the usefulness of a fashion cloth have also been established in previous researches to influence the consumer purchasing behaviour (Chadha & Husband, 2006). Cultural suitability of clothes also influences the consumer purchasing behaviour (Peter & Olsan, 2005). In Thailand, culture has a great influence on the perception related to the way of dressing. Therefore, as children grow, the influence of their societal culture shapes their perceptions related to the appropriate clothing to be worn. Some of the values that the consumers acquire based on cultural practices include the definition of comfort, youthfulness, expression of freedom, practicability, efficiency, and health concerns (Orsay, 2005). Therefore, existing cultural practices significantly influence and shape consumer purchasing behaviour. Individual’s Lifestyle The lifestyle of an individual influences the consumer purchasing behaviour. This is because the different types of clothing are usually also suited for different lifestyles (Newman, & Patel, 2004). Therefore, the consumer choices associated with fashion clothing are mostly related to the occupation and the general lifestyle of an individual. For instance, women who hold high positions in business organisations are usually compelled to make purchases that suit their status in society (Tian et al, 2001). Consequently, the bulk of clothes purchases of such women will consist of fashion clothing like business suits, which fit the perceived expected outlook of the positions held by these women. On the other hand, expectant women are likely to be compelled to purchase clothes that would make them feel comfortable and allow them to carry out their chores with much ease (Nueno & Quelch, 1998). Therefore, the aspect of design of fashion clothing is very important as it influences the consumer perception related to the style, value and the quality of different fashion brands. In addition, the social status of an individual greatly influences the consumer purchasing behaviour. Consumers, who identify themselves to belong to high social class, would tend to make efforts towards living a lifestyle that is associated with their social class. In most cases, consumers from high social classes avoid buying products that are priced cheaply. This is mainly due to the general perception that, what is priced cheaply is of low quality (Helman & De Chernatony, 1999). Consequently, the price like many of the many other items on sale has a big influence on the consumer purchasing decision. However, in Thailand, there still exist disparities associated with the consumer purchasing behaviour of non-luxury and luxurious fashion clothing (Wong & Ahuvia, 1998). Hence, to promote and develop the Thai fashion clothing, there is need to further study and identify the factors which influence consumer purchasing behaviour associated with fashion clothing in Thailand. Theoretical Framework The Maslow hierarchy of needs theory proposes that in order to fulfil the higher emotional needs like psychological needs, the lower more basic needs have to be met (Tatt, 2010). This implies that there are needs that consumers want to meet in their purchasing behaviour. Most of the fashion brands in Thailand are considered luxurious and this implies that most consumers of fashion clothing want to satisfy higher ranked needs. According to the Maslow hierarchy of needs, the most basic of needs will most likely influence a consumer’s choice of clothes. Therefore, if the clothes satisfy the basic needs of a person, the consumer will most likely buy other clothes to satisfy the other needs (Fishbein & Ajzen, 1975). The needs according to Maslow theory consist of physiological needs, safety, love/belonging, esteem and self actualisation. However, the physiological and self actualization needs have no immediate influence on the consumer’s choice of clothes. The urgent needs that influence the consumers’ choice of clothing are as described below; a. Safety Consumer’s safety needs relate to the consumers desire to satisfy their basic needs, which include food, shelter and clothing. This shows that with other factors excluded, clothes will always be considered a priority and basic need. However, some types of clothes like fashion clothing are usually considered to be luxurious. Therefore, even though clothes cannot be classified as a physiological need since they do not fall under the category of bodily needs, they can be classified amongst the most urgent of needs. According to ApawanLerkpollakarn, Dr.ArdipornKhemarangsan (2005, pp.1-2), a person’s health and well being influences the consumer to choose clothes that suit different weather conditions. The comfort, fitness and body shape of a person also influence the consumer purchasing behaviour. In addition, some consumers will go as far as analyzing the fabric of a cloth so as avoid allergies and health related complications that are related some types of fabric. b. Love/ Belonging According to Schutte & Ciarlante (1998), a lot of young people will choose their clothes based on the opinion of those who surround them. These people include parents, friends, love interest and siblings. This influence is sometimes extended to public figures such as celebrities. In several previous researches, a sense of pride and belonging has been identified as one of the major factors which influence the consumer purchasing behaviour. Furthermore, the clothes made within a country are greatly influenced by the cultures of the same country. This is mainly due to the cultural suitability associated with these clothes. Therefore, consumers purchase such clothes so as to satisfy their need and sense of patriotism. c. Esteem According to Solomon, Zaichkowsky & Polegato (1999), some consumers buy and wear clothes to modify their self esteem. Self concept by a person goes into three categories; ideal self, social self and actual self. Self esteem and the need to be respect by others greatly influences the consumer’s choice of clothes. People who want to feel good and be viewed in a positive manner will most likely purchase luxurious clothes (Goldsmith & Stith, 1992). Therefore, some consumers will go out of their way to buy clothes that they cannot afford. Typically, every individual would want to feel important, and some clothes usually have a way of making a person feel important and respected. For instance, a person in a suit will receive more respect than a person in a sweatshirt, even though the person in a sweatshirt may be actually more sophisticated than the suit wearer. Consequently consumers tend to purchase clothes that would mostly likely earn them respect and admiration from other people in the society. In addition, a person who wants to be recognised from the crowd will most probably wear clothes that serve that purpose (Kacen & Lee, 2002). These types of clothes with their unique styles bring out the uniqueness in the wearer. However, most of these clothes have luxurious elements incorporated in them such jewellery and unique designs, thus, most people cannot afford such fashion attires. Conceptual Frameworks and Hypotheses In this research study, the proposed model used was based on the Maslow hierarchy of needs theory. The theory states that in order for an individual to satisfy higher human needs such as emotional needs, the lower basic needs have to be satisfied first (Tian, Bearden & Hunter 2001). Nevertheless, this study also focused on the identification of factors, which influence consumer purchasing behaviour associated with fashion clothing in Thailand. In addition, this research also evaluated the association between gender, age and the expenditure on fashion clothing based on the consumers’ perception. According to the Maslow’s theory, human needs can be broadly categorized into physiological, safety, love/ belonging, esteem, and self actualization needs. Therefore, based on the Maslow hierarchy of needs, the category of a need will most likely influence a consumer’s choice of clothes. This implies that consumer purchasing behaviour is influenced by the desire of the consumer to satisfy a need. Therefore, if fashion clothes would satisfy the most basic of needs of a consumer, the consumer is likely to purchase the fashion clothes so as to satisfy the other needs (Tian, Bearden & Hunter 2001). Furthermore, the utility theory proposes that consumer purchasing decisions are usually based on the expected satisfaction from a utility (Richarme 2005). According to the utility theory, consumers are rational actors who can estimate the outcomes of their decisions and subsequently, select an outcome which would maximize their well being. Thus, consumer purchasing behaviour is typically guided by perceived outcome of the derived satisfaction. However, such perceptions of outcome with regard to the derived satisfaction are influenced by several factors such as the culture and prestige. Therefore, according to Richarme (2005), there has been improvement on the utility model to form a satisfactory model, which evaluates consumer purchasing behaviour based on a product’s value and the satisfaction derived from it. The conceptual flow chart illustrated in figure 1, shows the factors which influence consumer purchasing behaviour associated with fashion clothing. Included in the flow chart are identity, physical and factors related to an individual’s lifestyle. The illustration helps in the understanding of the consumer purchasing behaviour associated with fashion clothing in Thailand and the factors which influence the consumer purchasing decisions. In addition, the conceptual framework does not give restrictions to this study based on the previous theories from other researches, but allows this research study to establish any new finding related to the consumer purchasing behaviour associated with fashion clothing in Thailand. Figure 1: The conceptual framework guide Furthermore, this research study focused mainly on the impact of gender, age and income on the expenditure on fashion clothing in Thailand. Figure 2 shows the conceptual framework of this study. This research evaluated the impact of consumer income on the expenditure on fashion clothing in Thailand by determining the relationship between income of the respective consumers surveyed and how much they spent on fashion clothing. In addition, the impact of gender on the expenditure on fashion clothing and the impact of age on the expenditure on fashion clothing were also investigated. Figure 2: Conceptual Framework To attain the objectives of this study, it is prudent to develop and subsequently test the hypotheses that relate to the conceptual framework. Therefore, in this research study, there are three hypotheses, which evaluate the association between gender and expenditure on fashion clothing, the association between age and expenditure on fashion clothing, and the association between income and expenditure on fashion clothing. Gender and expenditure on fashion clothing Based on previous researches; gender differences also impacts on the consumer purchasing behaviour of fashion clothing. According to Weekes (2004), the expenditure on clothing differs between genders. Therefore, to evaluate further on the impact of gender on the purchasing of fashion clothing in Thailand, the first hypothesis in this study is as follows; Hypothesis 1 (H1): Gender significantly influences expenditure on fashion clothing. Age and expenditure on fashion clothing Littrell et al. (2005) established that consumer spending patterns differ among age groups. In the study, Generation X (born 1965-1975) were found to display greater fashion consciousness and importance on wearing of fashionable attire, compared to Baby Boomer (born 1946-1964) and Swing (born 1930-1945). According to Mitchell (2003), having a general liking, and significantly higher spending power, Generation X (born 1965-1975) were found to likely spend more on fashion attires. Therefore, to evaluate the impact of age on the expenditure on fashion clothing, the second hypothesis in this study states as follows; Hypothesis 2 (H2): Age influence expenditure on fashion clothing Income and expenditure on fashion clothing According to Weekes (2004), consumer spending is greatly determined by the income earned by the consumers. In the study, Weekes (2004) established that individuals who earn more income would tend to have greater expenditure. Therefore, to further evaluate the association between income and expenditure on fashion clothing in Thailand, the third hypothesis to be evaluated in this study is as follows; Hypothesis 3 (H3): Income influence expenditure on fashion clothing. In this study, it is expected that the association between gender and expenditure on fashion clothing will be established. In addition, this research study also expects to determine the relationship between age and the expenditure on fashion clothing, as well as the association between income of consumers and the expenditure on fashion clothing through testing the stated hypotheses. Summary The literature based on previous studies as provided in this chapter, have been insightful in illustrating the consumer behaviour associated with fashion clothing. The literatures showed that the purchasing behaviour vary among consumers in the market. The most significant factors that were established in most of these previous researches to influence the consumer purchasing behaviour included price of product, quality of the clothes, cultural suitability and the age of the consumers. The other major factors that have been established in past researches to influence purchasing decision of consumers include physical factors, lifestyle and psychological factors. These literatures also provided more understanding of the relationship among the factors that influence the consumer purchasing behaviour. Some of the relationships that have been evaluated and established in these previous studies include the impact of age on consumer spending and the impact of culture on consumer purchasing decisions. In the next chapter, the research method used in this study will be provided. 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