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University of Wales 2011 A STUDY ON CONSUMER’S PERCEPTION OF SHOPPING IN ZARA By NGUYEN THI THUY LINH BACHELOR OF SCIENCES (HONS) BUSINESS ADMINISTRATION (MARKETING) UNIVERSITY OF WALES May 2011 1|Page University of Wales 2011 A STUDY ON CONSUMER’S PERCEPTION OF SHOPPING IN ZARA By NGUYEN THI THUY LINH Of Thames Business School Dissertation submitted to the University of Wales in partial fulfilment of the requirement for a degree of Bachelor of Sciences Business Administration 2|Page University of Wales 2011 DECLARATION I, Nguyen Thi Thuy Linh, hereby declare that this work does not contain any materials have not been accepted in whole part for any degree and or diploma in any institute, college or university I also declare that this is my original with my own words and investigation except the reference is stated in the text of this dissertation Nguyen Thi Thuy Linh 3|Page University of Wales 2011 ACKNOWLEGMENTS This dissertation can be done completely and finished well, that cannot lack of all the great support and encouragement of many people It is a pleasure to express and give many thank to those who always beside and assist me during the time when I started work till I finished on the dissertation First of all, my thanks and appreciation to my supervisor, Ms Sally Lo, who was kind enough to encourage, supervise and support me from first step of my dissertation She did not hesitate to take time and give the valuable information for my study I am grateful to my family; especially my mom for understanding and always watching after me, called me every day, and gave me courage and supports me when I was down My thanks must go to all my friends those are my close and best friends Thanks for always by my side take care, often encourages and expanded on my own work while I was doing my dissertation Proving more useful information, experiences and skills to assist my dissertation can be better Finally, I want to thank all of all the respondents who are participated in my survey questionnaire and shared helpful information to me 4|Page University of Wales 2011 Table of Contents List of Table List of Figure 10 Abstract .12 Chapter 1: Introduction 13 1.1 Background of the study .13 1.2 Objective of the study 14 1.3 Limitations 14 1.4 Organization of the study 14 Chapter 2: Literature Review 16 2.1 Consumer Behavior .16 2.1.1 What’s Consumer Behavior? .16 2.1.2 Advantage of understand consumer behavior .16 2.1.3 Decision Making Process 17 2.2 Branding 21 2.3 Marketing Strategy - Marketing Mix 22 2.3.1 Product 23 2.3.2 Price .23 2.3.3 Place (Distribution) .24 2.3.4 Promotion 24 2.3.5 People 25 2.3.6 Process 25 2.3.7 Physical Evidence 26 2.4 Overviews on fashion industry and Zara 26 Chapter 3: Methodology 27 3.1 Objective of the research .27 3.2 Research design 27 3.3 Data Collection 28 3.3.1 Secondary Data 29 3.3.2 Primary Data .29 5|Page University of Wales 2011 A Sample Design 29 B Data Collection Method 31 C Questionnaire 31 Chapter 4: Finding and Analysis 33 4.1 Demographics of Respondents 33 4.1.1 Gender Distribution .33 4.1.2 Age Distribution 34 4.1.3 Occupation and Marital status Distribution 35 4.1.4 Race .36 4.1.5 Personal Monthly Income 37 4.2 Findings on respondent’s perception 38 4.2.1 Factors affecting customer patronage 38 4.2.2 Shopping Location .40 4.2.3 Shopping Frequency 41 4.2.4 Monthly shopping expenditure .42 4.3 Shoppers’ View on Zara 43 4.3.1 Have you ever heard about Zara? .43 4.3.2 Have you ever bought Zara brand?? 44 4.3.3 Shopping Frequency in Zara .45 4.3.4 Zara’s Present Location 46 4.3.5 Zara’s salespeople .47 4.3.6 Zara’s present product variety 48 4.3.7 Findings on respondent feel on Zara’s products 51 4.3.8 Price of Zara’s products 52 4.3.9 Zara’s advertising 55 4.3.10 Zara’s Sales Promotion .56 4.3.11 Zara’s Layout .57 4.3.12 Adequacy of Changing Rooms and Mirrors 58 4.3.13 Waiting time at the Checkout counters 59 4.3.14 Customer’s Satisfaction .60 4.3.15 Recommendation 61 Chapter 5: Recommendation and Conclusion 62 6|Page University of Wales 2011 5.1 Branding 62 5.2 Marketing mix .62 5.2.1 Product 62 5.2.2 Price .63 5.2.3 Promotion 64 5.2.4 Place 64 5.2.5 People 64 5.2.6 Process 65 5.2.7 Physical 65 5.3 Recommendation 65 5.4 Conclusion 67 Bibliography .68 Appendix .71 7|Page University of Wales 2011 LIST OF TABLE Table 1: Distribution of respondents according to gender .33 Table 2: Distribution of respondents according to age .34 Table 3: Occupation and Material status 35 Table 4: Distribution of respondents according to race 36 Table 5: Distribution of respondents according to personal monthly income 37 Table 6: Distribution of respondents according to shopper habits and expectation.38 Table 7: Distribution of respondents according to shopping location .40 Table 8: Distribution of respondents according to shopping frequency 41 Table 9: Distribution of respondents according to shopping expenditure 42 Table 10: Distribution of respondents according to Zara’s awareness 43 Table 11: Distribution of respondents according to purchasing product 44 Table 12: Shopping frequency in Zara .45 Table 13: Respondents’ view on Zara present location 46 Table 14: Respondents’ view on Zara’s salespeople 47 Table 15: Respondents’ views on Zara products variety 48 Table 16: Respondents’ views on design 49 Table 17: Respondents’ views on loyalty based on their design .50 Table 18: Respondents’ views on mid-range price of Zara 52 Table 19: Respondents’ views on Zara’s present price 53 Table 20: Statistics of price assessment of respondents who have different income54 Table 21: Respondents’ views on Zara’s advertising .55 Table 22: Respondents views on Zara’s sales promotion 56 Table 23: Respondents’ views on Zara’s layout .57 Table 24: Respondents’ views on adequacy of mirrors 58 Table 25: Respondents’ views on adequacy of changing rooms .58 8|Page University of Wales 2011 Table 26: Respondents views on waiting time at the checkout counter 59 Table 27: Customers’ satisfaction of Zara 60 9|Page University of Wales 2011 LIST OF FIGURE Figure 1: Consumer Decision Making Process 18 Figure 2: Marketing Mix – 7Ps 22 Figure 3: Types of Research Design 28 Figure 4: Distribution of respondents according to gender 33 Figure 5: Distribution of respondents according to age 34 Figure 6: Distribution of respondents according to race 36 Figure 7: Distribution of respondents according to personal monthly income .37 Figure 8: Distribution of respondents according to shopper habits and expectation39 Figure 9: Distribution of respondents according to shopping location 40 Figure 10: Distribution of respondents according to shopping frequency 41 Figure 11: Distribution of respondents according to shopping expenditure 42 Figure 12: Distribution of respondents according to Zara’s awareness 43 Figure 13: Distribution of respondents according to purchasing product .44 Figure 14: Shopping frequency in Zara .45 Figure 15: Respondents’ view on Zara present location 46 Figure 16: Respondents’ view on Zara’s salespeople .47 Figure 17: Respondents’ views on Zara products variety 48 Figure 18: Respondents’ views on design 49 Figure 19: Respondents’ views on loyalty based on their design 50 Figure 20: Respondents’ views on mid-range price of Zara 52 Figure 21: Respondents’ views on Zara’s present price 53 Figure 22: Statistics of price assessment of respondents who have different income54 Figure 23: Respondents’ views on Zara’s advertising 55 Figure 24: Respondents views on Zara’s sales promotion .56 Figure 25: Respondents’ views on Zara’s layout 57 10 | P a g e