Due: April 14th 2016

Secondary Research: Examine the importance of

young consumers in the sports industry and how to
build its brand loyalty

Professor: Emily Gaszynski

Business Research Methods (RSMT-5001)

Prepared by: Group 3

Adelia Yolanda, Atifa Mahmoodi, Hareet Chadha, Liuyin
Chen, Shumeng Dong, and Yao Zhang
Letter of authorization

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Table of Contents

Executive summary ......................................................................................................................... 4

1.0 Introduction ........................................................................................................................ 5

2.0 Background ......................................................................................................................... 5

3.0 Objectives............................................................................................................................ 5

4.0 Methodology....................................................................................................................... 6

4.1 Research design .............................................................................................................. 6

4.2 Sample Design ................................................................................................................. 8

4.3 Data collection and field work ........................................................................................ 9

4.4 Analysis ........................................................................................................................... 9

5.0 Results ................................................................................................................................. 9

5.1 Discussion: .......................................................................................................................... 10

6.0 Limitations......................................................................................................................... 11

7.0 Conclusions and recommendations.................................................................................. 12

8.0 Appendix ........................................................................................................................... 13

8.1 Data collection forms .................................................................................................... 13

8.3 General tables ..................................................................................................................... 18

8.4 Bibliography ........................................................................................................................ 30

8.5 Other support material ....................................................................................................... 33

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 Executive summary

Brand loyalty is one of the most important factors for business to develop and have sustained

growth. Companies that have large amount of loyal consumers tend to have a larger market share

compared to those who don’t. With the need to understand customers, the purpose of this study

is to explore the young consumers’ opinions, attitudes and beliefs towards Adidas and how brand

loyalty is created within this community.

After stating the objectives and sub-objectives, the study begins with a brief overview and the

history of the company being analyzed. Adidas is one of the most well-known sports brands in

the sportswear industry, and the demand for health and wellness related products is increasing

rapidly.

In order to understand the development of brand loyalty, primary data is collected through an

online questionnaire in Humber College. The online survey contains both quantitative and

qualitative design, it includes aspects such as demographics, brand awareness, brand usage and

brand attributes.

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1.0 Introduction
In recent years, more and more individuals are trying to boost their health through diet
and exercise. There is a tremendous opportunity exists for marketing to fitness-conscious
consumers (Vong, 2012). Consumers now look for products and services to help them
maintain and improve their health, changing the type of products they purchase for their
family, the sports they play, and how they spend their leisure time. The demand for health
and wellness-related products is increasing rapidly, and 31% of Canadian consumers are
willing to pay a premium for health enhancing products (Business Development Bank of
Canada, 2013).

2.0 Background
Sportswear industry has grown significantly and become a fashion trend among young
people. It appears that many people wear sportswear on a daily basis for comfort
purpose. Sportswear in Canada was one of the fastest growing apparel-related categories
in 2015. It was driven by increasingly active lifestyles in the wake of health and wellness
trends across many Canadian industries, as well as a continued interest in fitness and
exercise, and a traditional passion for sports (Euromonitor International, 2016).

Adidas was founded in 1949 and named after its founder "Adi" from Adolf and "Das" from
Dassler. Nowadays, Adidas is one of the largest sportswear brands in the world and it is
well known for its three stripes logo. The company offers a variety of products which
include footwear, clothing and accessories. Adidas Canada Ltd retained its second rank in
sportswear in Canada with a 7% value share in 2015 (Euromonitor International, 2016).

3.0 Objectives
We chose Adidas as our target company is because Adidas is one of the leaders in
sportswear industry and we would like to know the consumers’ view of this brand today
and how has purchasing behavior changed for the past years. The primary objective of
our research on Adidas is to explore young consumers’ opinions, attitudes and beliefs
towards Adidas and how brand loyalty is created within this community.

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 3.1 Sub-Objectives
a) Evaluate people’s current attitudes towards Adidas endorsement (athlete
or celebrities).
b) Define Adidas’ biggest target market and which target group is increasing
or declining?
c) Identify whether celebrities can fit in with the Adidas’ brand image and can
influence people in terms of fashion and trend.

4.0 Methodology
4.1 Research design
Our research is using descriptive study profiling the consumers’ attitudes towards
Adidas brand, while measuring their brand loyalty. The data for our findings were
collected from primary and secondary data. Primary data is a data that observed
or collected directly from first-hand experience (Business Dictionary, n.d.). We use
our survey results from the questionnaires as our primary data.

Meanwhile, secondary data is a data gathered and recorded by someone else prior
to and for a purpose other than the current project (Zikmund, Babin, Carr, &
Griffin, 2009, p. 161). In our case, we gathered our secondary data from external
sources, such as company website, journals, books and the internet. The survey is
include both quantitative and qualitative design, categorical and continuous
variable, covering the demographic, brand awareness, brand usage, brand
attributes and purchase intent. Demographic is the statistical data about the
characteristics of a population (Demographics, n.d.).

In our questionnaires, we use factors such as age, sex, level of education and
income level to examine the population. In the other hand, brand awareness helps
us to better understand on how familiar consumers are with Adidas brand. Brand
usage measures on how frequently do consumers purchase the product, and
finding out if they were purchasing from Adidas competitors. Brand attributes

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shows how the customer perceived Adidas brand, what do consumers think
Adidas brand should do for them and whether Adidas are meeting their
expectations. Getting consumers’ opinion about the brand attributes will help
Adidas understand where they are doing well, and what Adidas need to improve.
Purchase intent would examine the customer's buying habit and what products
were customers mostly purchased which will help Adidas to find the right niche.

There are five type of questions included in the questionnaires. The first one is
simple-dichotomy (dichotomous) question which requires the respondent to
choose one of two alternatives (Zikmund, Babin, Carr, & Griffin, 2009, p. 340). The
second one is determinant-choice question which requires the respondent to
choose one response from among multiple alternatives (Zikmund, Babin, Carr, &
Griffin, 2009, p. 340). The third one is frequency-determination question which
asks for an answer about general frequency of occurrence (Business Research
Method, pg. 340). The fourth is checklist question that allows the respondent to
provide multiple answers to a single question by checking off items (Zikmund,
Babin, Carr, & Griffin, 2009, p. 341). The last type is a contingency question, in
which the question need to be answered only when the respondent provides a
particular response to a question prior to it (Explorable, n.d.).

This questionnaire is designed to ensure relevancy and accuracy, accompanied by

status bar and interesting layout to keep respondents engaged. A copy of the
survey questionnaire is included in the appendix. This particular design suited well
to the study because it provide information regarding activities that will help
Adidas to increase their consumers brand loyalty. The online survey also provide
convenience for our respondents, since they were able to access the survey in
anywhere and anytime. In addition, gathering information via surveys is quick,
inexpensive, efficient, and accurate.

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 4.2 Sample Design
The population targeted for our study are young people in Toronto. Our sample
units are students in Humber Lakeshore College in the age group between 0-35
years old. They were selected by random sampling which means every individuals
within those constraints has equal and independent chance of being selected
(Business Dictionary, n.d.).

33 respondents were sampled and 30 respondents were completed the survey. In

other words, the response rate for this survey is 91%. The detailed statistics to
support this result is supplemented in the appendix. Sample size is correlated to
random sampling error. A smaller sample makes a larger error in estimates more
likely (Zikmund, Babin, Carr, & Griffin, 2009, p. 440).

Demographic Profile of Respondents

Gender Income(monthly)
Male 34% $1000 or below 32%
Female 66% $1001 - $2500 44%
Age $2501 - $3500 12%
Below 18 4% $3501 and above 12%
18 - 25 68% Marital Status
26 - 35 29% Unmarried 93%
36 - 45 0% Married 7%
Above 45 0% Other 0%
Education
High School 7%
Undergraduate 39%
Postgraduate 46%
Other 7%

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 4.3 Data collection and field work
This being a descriptive research, a close – ended questionnaire was prepared
using online tools. The sample was intended to capture demographic
heterogeneity (except for the age group) among the students at Humber College,
Lakeshore, which we believe represented our sample requirements of the
“young” people. The survey was sent out online on social networking sites,
blackboard and emails, garnering a quick and complete responses, which made it
easier to analyze the data.

4.4 Analysis
The data so collected was tabulated individually and the percentages represented
in pie charts that answered the questions pertaining to the respondents’ buying
behaviour towards sports goods in way of price, buying frequency, influencing
factors, preferences, Adidas’ standing against its competitors, the mode of
promotion etc. The responses to above were also compared against the
demographics, to get a better understanding of consumer’s brand loyalty on the
basis of gender, age, income and education.

5.0 Results
Within 34% male and 66% female interviewees, aged 18-25 at 68%, 26-35 at 29%. The
median of amount money spend on sports is in the range from $91 to $130 and standard
deviation is 1.51. The variance which is square of standard deviation for deciding brand
of sports affected by marketing is only 0.59. This figure shows the low brand loyalty, also
happened in brand choosing, since only 14% chose it before other brands. Product
features like comfort (32%), quality (29%) and the price (21%) voted by interviewees could
influence loyalty. Consumers more loyal shopping in Clothing (32%) and Sportswear
(25%), then sportswear (14%) and sporting equipment (7%). More than half of People
who engage Adidas brand interested in sports games, rather than the price (11%).
Internet promoted the latest product to help Adidas build brand relationship most at 57%,
as in-store promotion come at 36%. Please refer to Appendix C for details.

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5.1 Discussion:
The report outlines the findings of identifying and gain insights into the marketing
strategy that Adidas group is lacking in the North America. To figure out the reasons and
method of improvement, online questionnaire and interviews have been taken from
group to the public. Hypothesis, Adidas does meet the stylish and fair price requirement
from generation and competitive market among other brands.
There are 30 responses including 66% female and 34% male, mostly are from 18- 25 and
single.

Marketing mix in media is definitely making progress online and in-store promotion. After
finding out the new arrival, approximately 90% are willing to recommend. Based on all
the distribution data, price and promotion online and in-stores could do better to attract
the young generation in order to increase the market in North America.

The research can be regarded as a descriptive glimpse of the young consumer’ attitudes
and beliefs towards Adidas in the Canadian market and how brand loyalty is created
within this community. According to the data analyzed, it can be safely assumed that the
said consumer’s attitude doesn’t put Adidas as the frontrunner in the market.

Since the study targets the young consumer, the results were calculated representing the
age groups of 18 – 25 and 26 – 35 year olds. Illustrated in Appendix A, the majority of
respondents prefer Nike (57%) over all the other alternatives offered, including Adidas.
Also, 68% of the represented sample is not loyal to Adidas, as in, they would buy whatever
brand offers them a better value (Appendix A).

Independent Sample tests conducted compare the effect of demographic characteristic

of income on the frequency of purchase. 37% of respondent of income of $1000 or below
and 36% of people who make $1001~$2500 buy running shoes once a year. This is where
the majority lies (Appendix B).

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 Independent tests were also conducted to study the effect of age on the impact marketing
techniques like celebrity endorsement and team sponsorship on the choice of sports
brands. Herein, 45% of 18 – 25 year olds and 37% of 26 – 35 year olds are both somewhat
affected in sense that it doesn’t affect their choice a lot (Appendix B). When looking at
the effect of age on the preference on the products purchased, a significant number of
18 – 25 year olds, 30% of them buy clothing from Adidas (Appendix B). Whereas, 50% of
26 – 35 year olds prefer to get footwear the most. Majority of our sample purchases
Adidas products from retail stores. This includes 40% of 18 – 25 year olds and 62% of 26
– 35 year olds (Appendix B). The younger part of the represented population i.e. 70% of
the 18 – 25 year olds stay up-to-date on the new products via the internet. Whereas, 50%
of 26 – 35 year olds get to know about it in store (Appendix B).

6.0 Limitations
The study was conducted to gain insights into young people’s opinions on brand loyalty.
Studies that contain a large sample size tend to produce a narrower interval for the
results, which means a more precise results. Therefore, one of the limitations of this study
was the sample size. The population of the sample size was relatively small and the areas
for distributing the survey were narrow.

Another limitation was that the data was only collected from students on campus. Thus,
the results cannot be generalized. Using students as primary samples might create
restraints on external validity and the representativeness of the data was limited. Low
response rate is also another limitation of the research project. The study used online
survey to collect data, it’s possible that people tend to receive a large amount of messages
on a daily basis and it’s easy for people to delete the survey request. Thus it created
difficulties in interpreting the findings. To achieve better results for futures studies, a
larger scale of sample size should be selected. Furthermore, using a focused group might
help the researchers to gain more specific insights into consumers’ opinions, attitude and
beliefs.

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7.0 Conclusions and recommendations
In conclusion, as the aim of this study was to understand the consumption behavior of
young people towards Adidas and how to expand brand loyalty among this community,
therefor our target was young people in Toronto. The research is descriptive, a close
ended questions were prepared using online tools. The survey was quantitative and
qualitative in nature. Where primary data was collected through online survey. And
secondary data was collected from Humber library academic sources, and internet. The
survey had 30 responses including 66% female and 34% male, mostly are from 18- 25 and
single. Adidas do meet the stylish and fair price requirement from generation and
competitive market among other brands, however our finding demonstrates that there is
low brand loyalty where only 14% of the survey population choose Adidas compare to
other brands such as Nike, Reebok, and Puma. In terms of products features such as,
(comfort 32%), of the population.

Based on the survey findings, it’s recommended that Adidas should work on its product
quality and design to meet the expectations of people in this city. Additionally the prices
should be lower, and cutting style should be more fashionable to meet the young people’s
expectations. And also Consumers purchasing behavior is affected by the advertisement
and promotional offers such as sale, therefore it’s recommended that Adidas should
advertise through internet, domestic TV channels and endorse promotions.

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8.0 Appendix

8.1 Data collection forms

Dear Participants,

We are Humber Business School students conducting research to examine the importance of
youth consumers in the sport industry to build brand loyalty. Thank you for your time to take
part in this survey. Please be assured that all of your survey responses will be kept in the
strictest confidentiality and your identity will remain anonymous.

If you have any questions about the survey, please email us: group3@humbermail.ca

Completion instructions:

Please complete the provided questions in the questionnaire. Your answers have to reflect your
opinions as accurately as possible and answer factual questions to the best of your knowledge.

1. Gender
a. Male
b. Female
2. Age
a. Below 18
b. 18-25
c. 26-35
d. 36-45
e. above 45
3. Marital status
a. Married
b. Single
c. Other_________
4. Highest Education

a. High school

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 b. Undergraduate
c. Postgraduate
d. Others_________

5. Income group (monthly)

a. $1000 or below
b. $1001-$2500
c. $2501-$3500
d. $3501 or above
6. Which brands you would likely to purchase from when considering sporting products?
a. Nike
b. Adidas
c. Reebok
d. New balance
e. Skechers
f. Fila
g. Other_________

7. How much do you usually pay for the sports those items per year?
a. $30-60
b. $61-90$
c. $91-130$
d. $131 - 150
e. Above $150
8. What factors affect your choice of buying the sports merchandise you want the most?
a. Price
b. Comfortability
c. Quality
d. Convenience

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 e. Special offers
f. Stylishness
g. Other_________
9. How often do you wear your running shoes?
a. Almost Everyday
b. 2-3 times per week
c. At least once a week
d. A few times a month
e. Almost never
10. How often do you purchase a new pair of running shoes?
a. Once or more than once a month
b. Every 2-3 month
c. Every 6 month
d. Once a year
e. Less than once a year
f. Other_____________
11. How would you rank Adidas among other brands? (Highest (10) to Lowest (0) )
a. _____New balance
b. _____Reebok
c. _____Nike
d. _____Adidas
e. _____Puma
f. _____Fila
12. Are your choices of the sport brands affected by the types of marketing, such as
celebrity endorsement or team sponsorship?
a. Yes
b. Maybe

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 c. No
13. What do you purchase most from Adidas?
a. Sportswear (e.g. Team shirts, jersey)
b. Clothing (e.g. T-shirts, shorts)
c. Footwear
d. Accessories (e.g. sunglasses, hats etc.)
e. Sporting Equipment
f. I don't buy Adidas
14. How do you buy Adidas? (Select all that apply)
a. Adidas official website
b. Adidas showroom store
c. Outlet
d. Retailer Stores
e. Online retailer
f. I don't buy Adidas

15. Do you watch any North American sports game? If yes, What sports game do you relate
Adidas most to?
a. Yes, ________

b. No

16. Please rate how would you consider the value of Adidas in relation to its cost.
Note: A+ indicate high value, whereas F indicate low value
A+ A A-

B+ B B-

C+ C C-

D+D D-

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17. Which of the following do you associate Adidas brand with? Select all that apply
a. Sports
b. Soccer
c. Football
d. Basketball
e. Fitness
f. Running
g. Fashion
h. Quality
i. Expensive
j. Apparel
k. Men
l. Women
m. Active
n. Innovative

18. How loyal are you to Adidas?

a. I never buy Adidas
b. Not loyal at all (I buy whatever I feel like)
c. Somewhat loyal (sometimes I buy other brands too)
d. Very loyal (I only buy Adidas’ product)

19. Which aspects do you think Adidas need to improve on their products?
a. material/quality of products
b. cutting/style of products
c. promotion/discount/price of products
d. no need to improve
e. other ____

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20. How do you find out the latest product in the market? (Select all that apply)
a. Magazines
b. In-store promotion
c. TV
d. Internet
e. Other______

21. Which of the following is the most important for you as consumer when purchasing
Adidas?
a. Recommendation from friends and family
b. Advertisement
c. Celebrity endorsement
d. Quality of the product and design
e. Sale
f. I don't buy Adidas

22. Would you recommend Adidas (as a product) to your friends?

a. Yes b. No

8.3 General tables

Appendix A

Sports Brand Preference Loyalty Addidas

Nike 57% I never buy Adidas 4%
Adidas 14% Not loyal at all 68%
Reebok 7% Somewhat loyal 29%
New Balance 14% Very loyal 0%
Skechers 0%
Fila 4%
Other 4%

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Appendix B

Preference of Products purchased

18% 14%

7%

4%
32%

25%

Sportswear Clothing Footwear

Accessories Sporting Equipment I don't buy Adidas

Frequency of Purchasing Running Shoes

0%

7%
21% 11%

21%

39%

Once or more than once a month Every 2-3 Months

Every 6 months Once a year
Less than once a year Other

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Appendix B

Mode of Purchase

14% 14% 21%

21%

43% 25%

Adidas Official Website Adidas Showroom

Factory Outlet Retail Store
Online Retailer I don’t but Adidas

Impact of Marketing on Choice of

Sports Brand

29% 29%

43%

Yes Maybe No

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Appendix B
Medium of Promotion

11%
18%

36%
57%

18%

Magazines In-store promotions TV Internet Other

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Appendix C
1.age

2.Marital status

3.Education

4.Monthly income

22
5.Which sports you would like to purchase from when considering sports
products?

6.How much do you usually pay for sports items per year?

23
7.Factors affect the choice of buying

8. Frequency of wearing running shoes

24
25
9.Frequency of shopping a new pair of shoes

10.Rank Adidas compare to other brands

26
11.Are you choice of the sports brands affected by the types of marketing, such as
celebrity endorse

12. Most purchase from Adidas

13.

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14.Do you watch any North American Sports game? What sports game do you relate Adidas
most to?

Yes 39%
16.Which associate Adidas brand with?

17. Loyalty

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18. Which aspects should improve?

19. How do u find out the latest product of Adidas?

20. Most important as a consumer

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8.5 Other support material

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