Business Statistics

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Letter of Transmittal

May 30, 2023


Fatematuz Zahra Saqui
Lecturer
Institute of Business Administration,
University of Dhaka

Subject: Submission of Academic Report on "Understanding The Factors Affecting Fashion


Preference and Apparel Buying Behavior of University Students"

Ma’am,

The report titled, “Understanding The Factors Affecting Fashion Preference and Apparel Buying
Behavior of University Students” was produced as a deliverable for an assignment for the
completion of the second semester of the BBA Course at the Institute of Business
Administration, as a part of our course ‘Business Statistics (K101)’under your direct supervision.

Please note that this term paper has been prepared under your supervision and no part of this
term paper will be shared, republished or disseminated without your authorization.

Sincerely,

Rumaisa Younus Wahi Roll: 12

Nusaiba Naim Roll: 34

Saba Tasnim Sraoshi Roll: 58


Group:6
Sazid Rahman Nabil Roll: 80
Section: B
Faiyaz Ahmed Roll: 102
BBA 30th
1.0 Introduction
Apparel is an essential in every individual’s life. In the modern world, however, apparel has
another purpose. The modern young apparel buyers are very conscious about their purchases as
they want to express themselves through their clothes. Hence the apparel industry is seeing a rise
in demand, especially among the university goers. The young adults, or university students as a
market segment are of great interest in both size and spending capacity.

This paper focuses on analyzing the factors which affect university students’ fashion preference
and apparel buying behavior. Multiple factors such as yearly expenditure, gender, online
shopping, stress induced buying were taken into consideration to see their effects on apparel
buying patterns. This paper seeks to understand whether these factors have any effects on
university students’ clothing purchasing habits.

2.0 Literature Review


University students show a great interest in clothes and fashion products. Spending capacity is a
crucial factor in apparel preference. Studies found that the level of price consciousness among
the consumers will influence their purchase decision (Gauzente and Roy 2012; Jayasingh and
Eze 2012).

Gender is another factor that shapes purchasing habits. According to the research, women’s
possibility to purchase an item in all segments in the fashion market except accessories was nine
percent higher than men (Stuart, 2019).

The increasing F-commerce and E-commerce are influencing youths as well. Consumers on
social networks are frequently exposed to information about products and consumption-related
activities, ranging from product ads by brands to friends’ conversations and opinions about
recent shopping experiences (Chevalier and Mayzlin 2006; Stephen and Galak 2012)

Oftentimes university students purchase fashion items with a view of relieving their stress.
Impulsive shopping in addition to having an emotional content can be triggered by several
factors, including: the store environment, life satisfaction, self-esteem, and the emotional state of
the consumer at that time (Gogoi and Shillong, 2020).
3.0 Objectives
3.1 Broad Objectives
Understanding The Factors Affecting Fashion Preference and Apparel Buying Behavior of
University Students.

3.2 Specific Objectives


The specific objectives that we aim to achieve in this paper are-

1. To find out the average money spent yearly by a university student on apparel.

2. To find out if male and female students spend the same or not on fashion items.

3. To find out which medium (online/ offline) students prefer more..

4. To find out whether stress affects the frequency of online shopping.

4.0 Methodology
The majority of the information in this paper is based on primary data that was gathered using
online tools. Secondary data is only used during literature review which occasionally served as a
basis for our hypotheses. These data will be used to test 4 hypotheses in different methods. The
hypothesis testing methods used in this paper are-

1. One Sample Population Mean with Unknown σ


2. Two Samples Population Mean with Unknown σ (Unequal Variance tested through F-
test). Solved using T-test.
3. One Sample test for population proportion
4.

All the levels of significance have been set at 0.05.The raw data were calculated with the help of
the data analysis tool and formulas in excel.
4.1 Sampling technique
Throughout this research, Non-Probability Sampling (Convenience Sampling) was used due to
the lack of a sampling frame or adequate information on the population. The data was taken in 4
scales of measurement – nominal (gender, preferred mode of shopping) ordinal (ratings of
stress), interval (stress score), ratio (annual spending on apparel, frequency of online purchase).

4.2 Sample size


The sample sizes varied for different hypotheses, but the overall number of responses taken as
samples was 140.

4.3 Data collection method


Primary Data was collected via a questionnaire survey. Google Forms was used to present the
survey online. To prevent bias, the data was gathered and used anonymously.

5.0 Analysis
5.1 Hypothesis 1
5.2 Hypothesis 2

5.3 Hypothesis 3: Majority of University students prefer online


shopping to offline shopping.

Step 1:
1.1: Two-tail or One-Tail?

One-tail (This is a right-tailed test).

1.2: State the null and alternate hypothesis

H 0: The number of students who prefer online shopping to offline shopping is less than or equal
to the number of students who prefer offline shopping. ( H 0: π ≤ 0.5)

H 1:The number of students who prefer online shopping to offline shopping is more than the
number of students who prefer offline shopping. ( H 1: π > 0.5)

1.3: Select the level of significance.

Level of significance (α) = 5%

Step 2:

We will use z-distribution since our sample size is greater than 30 and we are dealing with
population proportion.

p−π
Z test =

√ π (1−π )
n

0.314285714−0.5
=
√ 0.5 (1−0.50)
140

= -4.394802125

Step 3: Find the critical value for α =0.05

 Z 0.05= 1.959963985

Since it is a right- tail test, we take the positive critical value.


Step 4: Decision rule and decision

 Z test= -4.39 (test statistic)

 Z 0.05= 1.95 (critical value)

 Here, Z test is less than Z 0.05.

 Hence, do not reject H 0

Step 5: Conclusion and interpretation

From the chart we can find that the z test statistic is -4.39 which is far less than the z critical
value of 1.95. Our decision is to not reject the null hypothesis, which means our sample data do
not support that majority of university students prefer online shopping to offline shopping.

5.4 Hypothesis 4

6.0 Findings

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