FACTORS ASSOCIATED WITH CUSTOMER LOYALTY FOR FASHION INDUSTRY - WOMAN HANDBAG

• Main Author: Verianie, Desy
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78615
• Institution: Institut Teknologi Bandung

Fashion industry has really high potential not only for domestic market, but for global market as well. In 2015, the sales of bags increase by 13% in current value terms due to an increasing number of middle class, and many stores opened in big cities in Indonesia. The growth in product sales become greater due to the demand of urban consumer. Industries have started to realize that in addition to seeking new customers, establishing an ongoing relationship with their regular customers is very important. In previous research study, companies with loyal customers have greater market shares and profitability. The objective of this study is to identify the specific factors affecting customer loyalty in fashion industry, especially woman handbag. This study is also gather some demographic information about respondents, and determine the relationship between those factors and customer loyalty. This research uses quantitative method and primary data are collected using questionnaires, while secondary data are gathered through literature review. Questionnaire from 402 respondents are collected, the author choses random sampling method to woman from age 15-49 years old in Jakarta, Bandung, Bekasi, Depok and Tangerang. The findings are tested by these statistical analysis; validity and reliability test, classical assumption test and multi linear regressions. From the previous study, author has found several significant factors that influenced customer loyalty. The factors are brand name, product quality, design, promotion, and service quality. From the test, it shows that all the factors effect customer loyalty significantly. The result found that service quality, product quality and design are the most significant influence affecting customer loyalty. Actually, all variables have strong relationship with each other and can define the customer loyalty for 63.5%. This research contributes to the development of start-ups by providing appropriate recommendation for fashion startups on how to build customer loyalty.