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The Effect of Customer-Perceived Values and Brand

Images on Repurchase Intention at Primark Fashion


Retail

Rimeiza Izdihar Sanita Dhakirah, S.H., M.BA.


Business Administration Department Business Administration Department
State Politeknik Negeri Malang Politeknik Negeri Malang
Malang, Indonesia Malang, Indonesia
rimeizaizdihar@gmail.com sanita@polinema.ac.id

Abstract— Tight competition in the globalization era in The Annual Report released by ABF in 2016 explained that
retail fashion industry can threaten a business. Thus, fashion Primark prioritized several aspects as their values that made
companies should implement differentiation. The brief observation these retailers compete tightly with other large global
on Primark fashion retail, one of the go-to shopping places in the retailers in the UK.
United Kingdom (UK), discovered that the retail still needs to
improve to retain its customers. Therefore, this study aims to
Along with these issues and developments, changes
determine the effect of customer-perceived values and brand in keeping up with the times are getting faster, giving rise to
images on Primark fashion retail's repurchase intention. The high business competition in the fashion retail industry. For
samples were 95 awardees of IISMAVO students who repurchased Primark, a good image and increased customer loyalty to
Primark products in the UK from August 2022 to January 2023. repurchase are very important things to pay attention to.
The sample was selected using a purposive sampling method. With Based on the description of several phenomena and
a quantitative approach and explanatory research type, the data theories, it is necessary to conduct empirical research to find
were collected through a questionnaire and analyzed using IBM out the relationship between customer-perceived values,
SPSS Statistic 25. Multiple regression analysis and hypothesis brand images, and their repurchase intention. The
testing were used to examine the relationship between the
dependent and independent variables. This research indicated that
researchers wanted to research "the influence of customer-
Primark customers had a repurchase intention through the high perceived values and brand images on repurchase intention
customer-perceived values and brand images since these variables at Primark fashion retail (Study on Vocational Edition of the
influenced repurchase intention partially and simultaneously. 2022 IISMA Awardees in the UK).
II. LITERATURE REVIEW
Keywords— Customer-perceived values; brand images;
repurchase intention; Primark; fashion retail
A. Marketing
Tjiptono et al. (2020: 3) define marketing as a process of
generating, spreading, promoting, and pricing goods,
I. I NTR ODUC T ION services, and notions to provide purchasing relationships
One of the businesses that needs to with customers as well as build and maintain good relations
implement a repurchase intention strategy is the with stakeholders in a professional and fast-changing
fashion business, given today's intense environment. This definition concludes that marketing is a
competition. The United Kingdom (UK) is no prolonged process in a business from manufacturing
exception ; clothing has always been a big deal in products/services, reaching consumers, to implementing the
the UK. service after purchase.
Primark is one of the biggest retailers in the
B. Customer-Perceived Values
UK. With more than 187 stores, it has branches in
the UK, Spain, and the Netherlands. More than The concept of perceived values is very important
27,000 people work for the company. This retail for marketing because it helps businesses understand how
has the largest market share in the growing retail customers-perceived the businesses offerings and how the
sector in Ireland and the UK. businesses can create a more attractive value proposition
for their target

1
audience. According to Kotler (2009) (as cited in Praditya et III. RESEARCH METHOD
al., 2018), customer-perceived values describe customers' The research object used was Primark, a fashion
assessment of the difference between all advantages and all retail company. The research subjects were Indonesian
fees associated with the company's marketing offerings. students who received the Vocational Edition of the 2022
Therefore, the authors assumed the following hypothesis. IISMA (Indonesia International Student Mobility Award)
scholarship in the UK, who were customers or buyers of
H1: It is suspected that Primark's customer-perceived values Primark fashion retail more than once during one semester
have a positive influence on its customers’ repurchase of the IISMA program in the country. Samples were
intention. selected using a purposive sampling method and Slovin
C. Brand Images Formula. The sample was 95 valid respondents collected by
Consumers’ perception of a particular brand based Questionnaire from Google Forms. With a quantitative
on experiences, advertisements, and other interactions is approach and explanatory research type, multiple regression
referred to as a brand image. Kotler and Armstrong (2014: analysis and hypothesis testing were used to analyze the
relationship between variables by using IBM SPSS Statistic
233) (as cited in Sumba et al., 2020) define brand images as
25 software.
a set of beliefs about a certain brand. According to
Ayutthaya (2012), a positive brand image influences
repurchase intention; therefore, companies must create a IV. RESEARCH RESULT AND DISCUSSION
positive or good brand image and believe that consumers
can fulfill their needs and desires, which will foster their A. Validity and Reliability test
repurchase intentions for the goods and services offered.
Therefore, the authors assumed the following hypothesis. TABLE 1. VALIDITY TEST
Variables Items sig. alpha Informatio
n
H2: It is suspected that Primark’s brand images have a Custom X1.1
positive influence on the customers’ repurchase intention. er- X1.2
X1.3
D. Repurchase Intention Perceive X1.4
Repurchasing describes the real actions of customers d X1.5
Values X1.6
in buying back or using the same products (Jakada, 2016). X1.7 0.000 0.05 valid
According to Cronin et al. (2013), repurchase intention is (X1)
X1.8
customer behavior in which customers react positively to the X1.9
service quality of a brand and plan to re-visit or re- X1.10
communicate the company's products. This definition Brand X2.1
concludes that repurchase intention is an action that Image X2.2
X2.3
becomes a buyer's decision after making a purchase of a s (X2) X2.4
brand as a result of the level of satisfaction with the product X2.5 0.000 0.05 valid
or service offered by that brand in the past. Therefore, the X2.6
authors assumed the following hypothesis. X2.7
Repurcha Y1.1
se Y1.2
H3: It is suspected that Primark's customer perceived-values Y1.3
and brand images simultaneously influence customers' Intention Y1.4
repurchase intention. (Y) Y1.5
Y1.6 0.000 0.05
valid
Based on the descriptions above, the conceptual framework Y1.7
Y1.8
for this research is summarized in Fig. 1. Y1.9
Source: Data Processed (2023)
Based on Table 1, all items of variables are valid
because the score of significant < alpha is 0.05.

Fig. 1 Conceptual
Framework Source:
Data Processed (2023)

2
Based on the reliability statistics for the items of all D. Heteroscedasticity Test
variables, the Cronbach alpha for X1 is 0.741 > 0.6; thus,
The test was employed to see a dissimilarity of the
the questionnaire is considered reliable. Variable X2 (brand
residual variances from one observation to another. Analysis
images) shows that Cronbach's alpha is 0.771 > 0.6, which
by Ghozali (2018) stated that the absence of clear patterns
is also reliable. Last, variable Y (repurchase intention)
and the dots that disperse above and below the number 0 on
shows that Cronbach's alpha score is 0.868 > 0.6, which is
the Y axis imply no heteroscedasticity.
considered reliable.
B. Normality Test
The graphical method was tested to pay attention to the
distribution of data on the diagonal axis of the normal P-P
plot of the regression standardized residual graphic.

Fig. 3 Scatterplot
Source: IBM SPSS 25 for Windows

Based on Figure 3, the dots of data show no clear pattern,


and the data points spread randomly below and above the 0
value on the Y axis. This condition means no
heteroscedasticity problem (assumption is fulfilled).
Figure 2. Normal
P-P Plot Chart
E. Multiple Regression Analysis
Source: IBM SPSS
25 Windows Multiple regression analysis will examine the effect of
all X variables (predictors) on Y variables. The equation
from the research is as follows.
Based on Figure 2, the dots of data are around a diagonal
line; therefore, the data is distributed normally (assumption Y = -6.616 + 0.429X1 + 0.852X2 + e
fulfilled).
C. Multicollinearity Test
A good regression model should not have a relationship
between the independent variables. Therefore, a
multicollinearity test was used to determine the coordination
between the independent variables. The guidelines for
regression models free of multicollinearity are VIF < 10 and
tolerance ≥ 0.1.
The value is considered constant if the value of all X
variables (customer-perceived values and brand image)s
was 0, and the value of Y (repurchase intention) decreased
by 6.616. b1, a coefficient correlation of variable X1,
explained that if the value of X1 (customer-perceived value)
increased by 1 and the value of X2 was zero
(0), the value of Y (repurchase intention) would increase by
0.429. b2, a coefficient correlation of variable X2, explained
that if the value of X2 (brand image) increased by 1 and the
value of X1 was 0, the value of Y would increase by 0.852.

Based on table above, the VIF values of all X variables F. Coefficient of Determination
(X1 and X2) are less than 10 (1.696 for X1 and X2), and According to Sugiyono (2017), the coefficient of
tolerance values are 0.590 > 0.1. Therefore, the data is free determination (R2) or r (correlation) is used to find out how
from multicollinearity problems (assumption fulfilled). much the capacity of the independent variable can account
for the dependent variable.

3
Based on table (column f and sig.), the result of
simultaneous hypothesis testing is as follow.

H3: The value of F-calculated is 65.082 > F table 3.09 and f


sig. 0.000 < 0.05. These results conclude that H₀ is denied
According to table above, the value of adjusted R2 is 0.577 and Hₐ is received, indicating that the X variables altogether
(57.7%). This means the contributions of all X variables to have a simultaneous positive impact on the Y variable.
Y variables is 57.7%, and the remaining value (1-0.577= H. Discussion
0.423) or 42.3% is contributed by other variables that are Customer-perceived values became one of the
not included in this research. contributing variables towards Primark customers’ decision
G. Hypothesis Test in considering to repurchase since perceived values have an
t-test impact on customers after the purchasing. This research
The requirement for this test is t calculated > t table and discovered that hypothesis H1 ‘customer-perceived values
t sig. ≤ (α = 0,05). Therefore, H₀ is rejected, and Hₐ is partially have a positive influence on variable Y (repurchase
accepted. These results indicate that the X variable partially intention)’ is accepted. This means that the increase in
has a positive influence on the variable Y. customer-perceived values will be followed by the increase
TABLE 6. T-test results of repurchase intention. This research result supports
research by Pratama (2021) and Rahmanu (2019), who
discovered that the variable of customer-perceived value
(X1) partially had a positive influence on repurchase
intention.
Brand images (X2) is a multidimensional concept that
includes various characteristics, including quality,
dependability, affordability, and design. They are attached
to a brand to appeal to the market so that these brands can
Source: Data processed (2023) meet customers’ psychological and social needs. This
Based on the table (column t and sig.) above, the results of research revealed that hypothesis H2 ‘brand images partially
partial hypothesis testing are as follows. have a positive influence on variable Y (repurchase
H1: The value of t-calculated is 3.597 > the value of t-table intention)” is accepted. This result indicates that Primark’s
1.661 and t-sig. of 0.001 < 0.05. These results mean that H₀ famous and affordable brand images increase its customer’s
is rejected and Ha is accepted. Therefore, variable H1 repurchase intention. This result supports research by Lianto
(customer-perceived values) partially has a positive (2018) and Sastrawan (2021), who state that a brand image
significant influence on variable Y (repurchase intention). (X2) is a variable that positively, significantly, and partially
H2: The value of t calculated is 6.009 > the value of t-table influences repurchase intention.
1.661 and t sig. of 0.000 < 0.05. These results mean that H₀ The f-test yielded that hypothesis H3 ‘Primark’s
is rejected and Ha is accepted. Therefore, variable H2 customer-perceived values and brand images simultaneously
(brand images) partially has a positive significant influence influence the customers’ repurchase intention” is accepted.
on variable Y (repurchase intention). This result means variable X simultaneously has a positive
These findings indicate that paying more attention and significant influence on variable Y. This result supports
to customer-perceived values and brand images will increase research by Sastrawan (2021), who discovered that
the company’s customer’s repurchase intention. customer-perceived values and brand images simultaneously
influence repurchase intention on Gopay E-wallet users at
F-test Denpasar. The results of this research conclude that
The requirement for this test is If F calculated > F table Primark’s customer- perceived values together with their
and f sig. ≤ (α = 0.05), the hypothesis is accepted. strong brand.

V. CONCLUSION AND SUGGESTION

A. Conclusion
Customer-perceived values partially have a positive
Image can influence their customer decision in doing significant influence on repurchase intention at Primark
repurchase intention in a positive and significant ways fashion retail. In terms of customer-perceived values, it
when the X variable goes higher, so does variable Y. indicates that the values that Primark tries to provide
have successfully

4
reached its customers so that these customers end up making http://ejournal- s1.undip.ac.id/index.php/dbr
repeat purchases.
Brand images partially have positive significant Fajar Tri Hermawan. 2020. Pengaruh Bauran Pemasaran
influence on repurchase intention at Primark fashion retail. Terhadap Keputusan Pembelian (Studi Kasus Pada
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Sembilan.Semarang:Badan Penerbit Universitas
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