Methods in Business Research Proposal

Impact of perceived quality and advertisement

on customer purchase intention in female
clothing industry of Pakistan.

Submitted To

Dr. Zia Khan

Submitted By

Namra Islam Khan 20L-2135

Rabia Asghar 20L-2105
Maheen Amin 20L- 2704

MBA (1.5) (Section A)

FAST School of Management, National University of Computer & Emerging

Table of Contents
Introduction:.............................................................................................................................3
Research Questions..............................................................................................................3
Significance:..........................................................................................................................4
Problem Statement:..............................................................................................................4
Research Objectives:............................................................................................................5
Management question..........................................................................................................5
Definitions of Variables...........................................................................................................6
Consumer Purchase Intention:...........................................................................................6
Perceived Quality:................................................................................................................6
Advertising:...........................................................................................................................6
Literature Review.....................................................................................................................7
Relationship between Perceived Quality and Purchase Intention:..................................7
Relationship between Advertisement and Purchase Intention:.......................................8
Hypothesis development..........................................................................................................9
Conceptual Model and Framework........................................................................................9
Research Design.....................................................................................................................10
Measurement.......................................................................................................................10
Sampling Design.................................................................................................................10
Methodology........................................................................................................................10
Limitations..........................................................................................................................11
APPENDIX.............................................................................................................................12
References...............................................................................................................................13
 Impact of Perceived Quality and Advertisement on Purchase
Intention in Female Clothing Industry of Pakistan

Introduction:
Clothing industry in Pakistan is highly competitive with each brand having high consumer
perceived quality and advertisement techniques. Nowadays consumers not only seek
information but also share it with other consumers as according to their experience. In recent
few years, there is a boom in textile industry of Pakistan. Clothes produced in Pakistan are
becoming popular amongst local women. This business is gaining momentum as a good
designer dress is considered to be a status symbol in women. Due to the growth of media,
more alterations have occurred due to the advancement in communication and technological
channels competition is gaining strength. The main objective of this study is to explore and
observe the impact of perceived quality and advertisement on consumer purchase intention in
female clothing industry of Pakistan. In the modern era probably, every person is influenced
by advertisement. The new millennium is leading us through the most revolutionary and
dynamic alterations of any era in the chronicle of advertising as well. Also, the consumer
purchase intention is determined by the quality of the products desired by the customer.
Product quality is the foundation to build up consumer purchase intention. Deductive
approach is used to determine the variables influencing purchase intention of female clothing.
Advertising is the process which creates likelihood, understanding, tendency and inevitably
selection towards products and services. Consumers are not dogmatic and are willing
to purchase products if they perceive them to be of high quality. Perceived quality has a
positive impact on product judgment and purchase intention. It is very important to maintain
product quality in order to achieve customer intention to visit and purchase. Consumers can
effortlessly distinguish high quality products and make better decisions associated to their
purchase. The recommendations and suggestions are very helpful for managers and operators
of clothing industry. An advertisement has different aims including consumer’s attention
creating product awareness and developing a positive attitude towards products.

Research Questions:

What is the impact of perceived quality on purchase intention in female clothing industry of
Pakistan?
What is the impact of advertisement on purchase intention in female clothing industry of
Pakistan?

Significance:
The study has its significance as it will help the brands to understand the factors which can
influence customer purchase intention. It will help them understand the impact and
significance of perceived quality and advertisement on female clothing industry in relation to
customer perceptions of purchasing. The textile design and designers received recognition,
and the potential of this field was rediscovered for the local market, women designers were
the pioneers of this development. The study will provide the management of the clothing
brands with statistics and analytics to understand the relationship among three variables-
customer purchase intention through perceive quality and advertisement. It will guide the
management in making important decisions such as allocating resources to the factors which
play a key role in improving customer retention. The clothing industry to be extremely
competitive it is important for the brands to make sure that they not only make new
customers but also improve customer retention rate. This research can lead the brand owners
to increase customer inclination towards their products customer loyalty and revenues.
Advertising of clothing industry creates a personal and efficient method of reaching a
particular women community. It also allows a business to establish and maintain a unique
personality as well as strengthen their reputation which encourages women to support the
business. Perceived quality of women clothing industry is usually at the heart of what
customers are buying, and in that sense, it is a bottom-line measure of the impact of a brand
identity. This research focuses on analyzing the effect of perceived quality and advertisement
on consumer purchase intention keeping in view that both are controllable by the industry.
When perceived quality improves, generally other elements of consumer’s perception of the
industry improve. Advertising helps to sell new products to the consumers this way it helps
the product to be marketed in the industry efficiently and it is one way of reaching a mass
group of people quickly. In the current competitive context perceived quality and
advertisement is crucial in building and maintaining female clothing industry.

Problem Statement:
The fashion and clothing industry in Pakistan is experiencing accelerated growth and youth
which comprise approximately 32 percent of Pakistan’s population appear to be the guiding
force behind it. In recent years, the clothing sector has witnessed entry of some of the biggest
textile groups of the country, hence by the presence of more players, every marketer is
fighting for every customer, retaining customers is very difficult by having the same pattern.
It is extremely important how purchase intention can be controlled and accelerated in the
female clothing industry of Pakistan since clothing industry is one of the most competitive
and dynamic industry of Pakistan. As quoted by Chairman of All Pakistan Textile Mill
Association, Textiles accounts for approximately over 30 percent of value-added production.
Data from the Pakistan Bureau of Statistics suggests that demand for clothes has risen 81% in
the last decade, in terms of quantity, despite high increases in the prices of clothes.In a report
especially commissioned by Aurora, Gallup Pakistan estimated that between 2016 and 2019,
Pakistanis spent a total of 700 billion rupees on textiles (including clothes). It is therefore
crucial to garner insights into drivers of consumer purchase intention in order to enable
Pakistani retail marketers and corporate to realign their strategies to consumers’ expectations.
As consumer purchase intention is one of the primary inputs that marketing managers can use
to forecast the future sales and to determine how the actions they take will impact consumer’s
purchasing behavior. This study will help the brands to categorize among various aspects that
which factors have significant effect and positive correlation with purchase intention of the
consumers. With the question raised by management, how to increase consumer purchase
intention, this study tries to fulfill the question by measuring significant role of perceived
quality and advertisement that influences consumer purchase intention in female clothing
industry of Pakistan. Also, the findings of this study provide useful information for the
managers and marketers to gain good understanding about the female clothing industry of
Pakistan in their marketing decisions so that they can develop effective marketing strategies
to promote impulse buying and ultimately increase profitability.

Research Objectives:
 To determine the impact of perceived Quality in female clothing industry of Pakistan
 To determine the impact of advertising in female clothing industry of Pakistan.

Management question:
How to increase customer repurchase rate?
 Definitions of Variables
Consumer Purchase Intention:
“The individual’s intention to buy a service or a product from the same company by taking
into account the current suitability and likeliness of the circumstances”. [CITATION Hel \l 1033 ].
Shah et al., (2012) proposed “Purchase intention is the basic decision made by the customers
on the basis of motivation to purchase a specific item or brand”. “An implied promise that an
individual makes to himself to purchase the item again on his next visit to the marketplace”
(Fandos & Flavian, 2006).

Perceived Quality:
“Perceived quality is defined as the consumers’ judgment about an entity’s (service’s) overall
excellence or superiority (Zeithaml, 1987, in Rowley, 1998).” The consumer’s overall
assesment of the utility of a product based on perception of what is received and what is
given. ( Zeithaml, 1988).

Advertising:
“Advertising is defined as any paid form of non-personal presentation and promotion of
ideas, goods or service through mass media such as newspapers, magazine, television or radio
by an identified sponsor” (Kotler & Keller, 2012). It has been established that customers are
more likely to consider buying and using certain brand of what they can remember the brand
name and something about its attributes or benefits (Kotler and Armstrong, 2003; Belch &
Belch 2009; Olusola et al, 2011).
 Literature Review
Relationship between Perceived Quality and Purchase Intention:
Customers can evaluate perceived quality through specific item that meets the expectations of
the individuals. Quality is an important aspect as compared to price of items that can be the
achievement in bringing up aspects among different quality of products (Yoon & Kim, 2014).
One of the most important factors considered in decision making by customers for evaluating
quality of product. (Pappu, Pascale, & Raw, 2005). Positive and an explicit perceived quality
effect along with purchase intention had been shown by some of the researchers (Musharraf
& Ali, 2013). Having a considerable reaction at buying interest, poor perceived quality, it
may result in lower buying interest (Santoso, 2016). According to ambience that satisfy
customers signifies a higher purchase intention effect if customers that raise perceived quality
as comparison is made with authoritative facet. (Chaudhary, 2002). Judgment made by
customers about the product Excellency as perceived quality was considered different from
real quality, it presented specific product attributes and their overall evaluation judged by the
customers (Jin, 2013).

It is the characteristic that mostly influences consumers preference as well as most of the
industries. The perception of consumers regarding supremacy of items and also their
evaluation to meet the expectation regarding the product , as in general there are accepted
range from bad to good by which customer experience quality (Kayaman, Arasli & Taylor,
2007). Latterly, perceived quality generates the merit valuable gain that also encourages
purely to regain particular product (Lee H & Lee Y, 2000).

As per Saleem et al., (2015), Before purchasing any type of products and after using them,
there are some concepts about product quality that customers have initially in their minds,
purchase intention may be increases or decreases because of the direct interaction with the
product, also these variables may have a mutual impact on each other. Customers will
differentiate the essence of options as perceived quality plays a central part in decision
making. Specifically at the same the time customers do not have any particular information
about the certain products that they need to purchase, so it shows an unambiguous contact on
customers buying judgment along with adherence of product quality (Yee & San, 2011).
Through the previous experiences of customers and their feelings, it can be helpful for the
customer in accessing product quality (Zeithaml, 1988).

H1: Perceived Quality has a significant and positive impact on consumer purchase intention
Relationship between Advertisement and Purchase Intention:
Advertising is the promotion of goods, services, concepts, ideas and information through
media (pictorial, verbal, and scripted). It is a non-personal paid act by a renowned sponsor to
effect viewer’s behavior (Ayanwale et al., 2005 and Bovee, et al. 1995). In the process of
purchase intention, the customer decides to buy specific item or service by being persuaded
by the advertisements displayed through advertisement (Kraft and Weber, 2012). According
to Ling, Piew and Chai (2010), purchase intention is also used in analyzing impact of
advertising. It stimulates the factors that result into shopping and to come up with the impact
models to purchase again. However, emotional appeal in the other way are used by the
advertisers to emotionally associate with the mind of consumers for the item being
advertised. In such case, for example, unique emotional proposition is addressed in place of
unique selling proposition. The target of the advertisers using emotional appeals is to smartly
emphasize the psychological and social needs of the consumers (Kotler Armstrong, 2012). In
order to motivate the potential consumers to think that their advertised product is better as
compared to competitor’s product due to the additional features and advantages offered by
their product, the advertisers use such informative rational appeal messages (Kazmi and
Batra, 2009).

Purchase intention is a vital dependent variable for assessing effectiveness of advertisements

on multiple stages Jin, H. S., & Lutz, R. J. (2013). The intensity of advertisement appeal
directly affects the purchase intention (Wang Xia, 2012). Rational appeal advertising
messages focus on characteristics, facts and benefits of the products for the consumers to
influence them for a product. Such appeals highlight the quality, performance, efficiency or
value found in the product being advertised (Kotler Armstrong, 2012). Goldsmith, R. E.
(2002). determined that advertising can be strategized creatively through marketing appeals.
The advertisers can use them to influence the consumer perception of the product and to
make them believe that the product is of use to them. This finally leads to a boost in purchase
intention of consumer.

H2: Advertising has a significant and positive impact on consumer purchase intention
Hypothesis development
H1: Perceived Quality has a significant and positive impact on consumer purchase intention

H2: Advertising has a significant and positive impact on consumer purchase intention

Conceptual Model and Framework

H1
Perceived Quality

H2 Purchase Intention
Advertising

INDEPENDENT VARIABLES DEPENDENT VARIABLE

Research Design
Measurement
The questionnaire was developed to measure the following variables: Customer purchase
intention (Shih, 2010), advertisement (Pollay and Mittal, 1993), Perceived quality(Sweeney,
2001). These variables were measure through questionnaire that was extracted from different
articles. Items from 1-5 focuses on advertisement, items - focuses on perceived quality, Items
- focuses on our dependent variable customer purchase intention. Entire questionnaire was
modified to fit the purpose of study (Appendix). These all measurement questions were
dependent on 5-point Likert scales by psychologist Rensis Likert. This scale measure from 1
for strongly disagree to 5 strongly agree.

Sampling Design
The data used to test the research question is collected from the customers of female clothing
brands. All the respondents belong Lahore. All the data was collected from customers
directly. Our sample of 300 females were targeted in Lahore city. Data was collected from
College Students, University Students, employees, and Housewife who had shop from
different brands. We will use SPSS to compute sample statistics of collected data. Its
different programs like statistics program, modeler program, text analytic for survey program
will enable us to conclude our research results.

Methodology
Our research is Formal type of study which tends towards precise procedures and data source
specification to test the above-mentioned research questions. Ex post facto design will be
followed as the data will be collected without any preferential treatment. Our method of data
collection is Interrogative as the views of respondents are crucial to our research. We are
going to use questionnaire to collect quantitative data from our respondents to check the
dependency of customer purchase intention on advertisement and perceived quality. We will
be using SPSS to check the validity and reliability of our research. Our statistical study’s
purpose is to check the impact of advertisement and perceived quality on purchase intention
of the customers of female clothing industry quantitatively.

Limitations
The study had some limitation about research and conclusion to the topic. Firstly, the
research only targets the clothing industry rather than studying the purchase intention in
perspective of different industries. Therefore, the findings of our research can’t be
generalized to other industry or sector. Secondly, the sample collected has been randomly
based on people who shop from brands. It provides grounds to further test the subject by
concluding the impact of perceived quality and advertisement on the purchase intention of
the female clothing brand’s customers. The following variables could further contribute to
have a better understanding about customer purchase intentions in the clothing industry of
Pakistan.

APPENDIX

Impact of Perceived Quality and Advertisement on Purchase Intention in

Female Clothing Industry of Pakistan

Dear respondents as students of FAST NATIONAL UNIVERSITY OF COMPUTER AND

EMERGING SCIENCES. We are conducting a research to investigate “Impact of perceived quality
and advertisement on consumer repurchase intention in female clothing industry of Pakistan” Thank
you for agreeing to take part in this survey. Your participation is entirely voluntary, we will be
gaining your thoughts and opinions about your shopping style from various brands, think about your
favorite apparel brand and why you like to make purchase there. The survey will take about 5-8
minutes. All the information provided will be anonymous and will never be linked to you personally.
If there are items, you do not feel comfortable answering please skip to next. If you have any further
opinion or suggestion as a right to be a participant in this project feel free to mail at
l202135@lhr.edu.pk .
This questionnaire is targeted to female citizen of Lahore.

Age 16-20 21-24 25-29 30-34 35-39 40-44 More than

45
status College University Employment House
student student wife

Customer Purchase Intention[CITATION htt \l 1033 ]

1 I would like to buy products from this brand once more. 1 2 3 4 5
2 I recommend my favorable brand to other consumers 1 2 3 4 5
3 I am willing to pay money to buy from the brand offerings. 1 2 3 4 5
4 I consider buying from the brand if I need to buy something 1 2 3 4 5
Advertising ( Pollay and Mittal (1993))
5 In general, advertising presents a true picture of the products 1 2 3 4 5
advertised.
6 Advertising helps me keep up to update about products/services 1 2 3 4 5
available in the marketplace.
7 Advertising tells me which brands have the features I am looking 1 2 3 4 5
for
8 Because of advertising, people buy a lot of things they do not 1 2 3 4 5
really need.
9 Advertising makes people buy unaffordable products just to
show off.
Perceived Quality[CITATION Shi \l 1033 ]
10 The products of this brand have acceptable standard of quality 1 2 3 4 5
11 Quality of the products of this brand would stay consistent. 1 2 3 4 5
12 I feel good about what this brand offers to its customers
13 Products of this brand would not last a long time. 1 2 3 4 5

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