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The Impact of Brand Loyalty on Customer Purchase Intention: An Empirical

Study on Basketball Shoe Brands of Adidas, Nike and Puma in Asia

Article · December 2020

DOI: 10.15640/jpesm.v7n2a3

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Journal of Physical Education and Sports Management

December 2020, Vol. 7, No. 2, pp. 17-25

ISSN 2373-2156 (Print) 2373-2164 (Online)

Copyright © The Author (s). All Rights Reserved.

Published by American Research Institute for Policy Development

DOI: 10.15640/jpesm.v7n2a3

URL: https://doi.org/10.15640/jpesm.v7n2a3

The Impact of Brand Loyalty on Customer Purchase Intention: An Empirical Study

on Basketball Shoe Brands of Adidas, Nikeand Puma

K. C de Silva1

, A. A. L. Madhushani2 & S. D. S Jayalath3

Abstract
This study incorporates with the determinants of brand loyalty to testify its impact on the customer

purchase intention. The sporting footwear product is one of the most comprehensively branded area

in sport setting. A quantitative research design was applied to examine the customer purchase

intention. This study was accomplished with special reference to Basketball shoe brands of Adidas,

Nike and Puma. The structured questionnaire was used as the main data collection method, 60

respondents equally from Sri Lanka, Japan, India, Nepal, China and Malaysia were selected as sample

by using convenience sampling method. The design model surveyed overall, segments and path

coefficients to emphasize the provision of independent variables vs. dependent variables. Based on

the findings, all the hypotheses were accepted which denotes brand image, customer satisfaction
and

brand experience impacts on customer purchase decision of Basketball players in the selected Asian

countries. The end results of this study also lead to a deeper understanding of a sportswear brand

loyalty concept and some implications for practitioners. Brand loyalty and Purchase intention is
more

intense dearth in sport setting and this study will bung up that literature gap.

Keywords: Brand loyalty, Customer Purchase Intention, Basketball shoe brands, Nike, Adidas, Puma

I – Introduction

Consumers purchase decision is immensely rely on their perception level. They develop relationship

or interaction with brands in accordance to their satisfaction. The bond or the strong link that a
customer has

to a certain product can be defined as Brand loyalty and firms try to keep their customers well
satisfied. Firms

believe that the satisfied customers become loyal and the loyal customers will bring more benefits to
the firm.

The more loyal customers are less vulnerable clients who would not be willing to change brand they
regularly

purchase (Keller, 2001).

The athletic footwear manufacturing is one of the most prominent branded area in the global
apparel

market. Estimates hold that over three quarters of the total active sportswear market, and nearly
80% of

authentic footwear, are branded. (Newbery, 2008). Branding vestiges the industry’s major source of

competitive advantage. With Stiffening competition among different producers, marketers vastly
focus on the
branding of their products (Jayalath & Madhushani, 2019).

1 Institution Affiliation : Department of Sports Sciences and Physical Education, Faculty of Applied
Sciences,

Sabaragamuwa University of Sri Lanka, P.O. Box 02, Belihuloya.

2 Institution Affiliation : Department of Sports Sciences and Physical Education, Faculty of Applied
Sciences,

Sabaragamuwa University of Sri Lanka, P.O. Box 02, Belihuloya.

3 Department of Sports Sciences and Physical Education, Faculty of Applied Sciences, Sabaragamuwa
University of

Sri Lanka, P.O. Box 02, Belihuloya. Email: lakshika@appsc.sab.ac.lk

18 Journal of Physical Education and Sports Management, Vol. 7, No. 2, December 2020

The demand for high quality Basketball shoes is immense, which is why the most performance

sneakers are expensive and available in limited supply. The best Basketball shoes ultimately supply
players

with added ankle support, durability and traction. There are three distinct types of Basketball shoes:
hightops, mid-tops and low tops.

High tops provide the best ankle support, mid- tops stop at ankle level enabling players to leverage

added movement and low- tops will allow players to best take advantage of speed and quickness.

The best performance Basketball shoes, according to David Wilson of The Adrenalist, are the Nike

Air Zoom Huarache 2K4, AddidasAdizero Crazy Light 2.0, Nike Air Force Max 2013 etc. All high

performance Basketball shoes differ in style, design and purpose. Even though appearance is a
sought-after

commodity when determining if a sneaker is good, it is important for players to understand why
certain types

of shoes are effective.

Sport-specific, and even sport condition-specific, shoes that are highly demands by athletes. Solid

brand loyalty impact on customer purchase decision and it help firms to establish and identity
themselves in

the market place (Aaker, 1996) and reduces vulnerability in competitors action leading to higher
margins and

greater Co-operation because of, these significant features and the need, players give their focus
more on

selection of the shoe. Buyer’s purchase decision for Basketball shoe is a well-planned and time taken
one
because the players are going to make rational decisions in order to get the shoes which has the
highest value

compared to the cost incur.

This study expecting to provide insights of what are the features that a player is looking in a

Basketball shoes, what are the most buying brands in the world, what kind of issues can be seen in
the

Basketball shoes and its market, the relationship and impact of brand loyalty on customer to decide
his

buying choices? Finally the researcher aims to provide best solutions for the companies in order to
do the

most corrective action and use the best strategy.

Ii – Literature Review

Brand

Aaker, Keller, Neumeier (2006, as cited in (Cho, 2011)), a brand includes a name, symbol, design, or

experience that helps consumers identify products, services, or differentiate offerings among
competitors.

Aaker, Solomon & Stuart (as cited in (Cho, 2011) a unique element (e.g., name, symbol, design) A
brand can

be acted as forensic tool, logo, company recognition system, images, personalities, and relationships
as an

added value (Parsa, et al., 2013).

Brand Image

According to (Park, et al., 1986), the construction and maintenance of the brand image is
prerequisite

to the brand management. Theoretically, all products and services could be demonstrated by
functional,

symbolic or experimental elements, through which brand image is established. Throughout prior
literature,

researchers define brand image mainly from four perspectives: blanket definitions, meanings and
messages,

personification, cognitive or psychological elements. Brand image has been studied extensively since
the 20th

century due to its importance in building brand equity.

In the increasingly competitive world marketplace, companies need to have a deeper insight into

consumer behavior and educate consumers about the brand in order to develop effective marketing
strategies. (Malhotra, 2005)

Brand experience

The term brand experience was first coined by (Brakus, et al., 2009) in the ‘Journal of Marketing’.
They

explored and integrated various concepts in the fields of cognitive science, marketing, philosophy
and

management practices to understand the meaning of this term, and stated that consumption;
products,

services and shopping experiences together constitute the overall brand experience. Brand- related
stimuli

constitute the major source of subjective, internal consumer responses, which we refer to as “brand

experience.

K. C de Silva, S.D.S Jayalath & A.A.L.Madhushani 19

Brand Loyalty

According to (Aaker, 1996), consumers tend to continue to purchase the same brand despite the

demonstrated benefits (including better features, lower price or convenience) by competitors’

products.

Brand loyalty is believed to be one of the main components of brand equity. The more loyal

customers there are the stronger position the brand has in the market and there are less vulnerable
clients

who would be willing to change brand they regularly purchase products from. The best marketing
strategy

retaining this customer segment that (Aaker, 1996) suggests is loyalty Programs. This could be done
by

providing loyalty cards, loyalty points program, and etc.

Customer satisfaction

Customer satisfaction is one of the most important and widely used concepts in marketing. In

Marketing, customer is known as the King. It shows the importance of the customers. The whole
process of

the company depends on the customers. (Peterson & Wilson, 1992). Tse& Wilton as cited in (Rizan,
2010)

states that the response to the evaluation of the perceived discrepancy between the expectations
and service

performance is called as the customer satisfaction.

Customer Purchase Decision

Consumer Behavior focuses on how consumer make the decisions to spend their available resources

(Time, Money, Efforts) on consumption related items. That includes what they buy, why they buy it,
when

they buy it, where the buy it, how often they buy it, how often they use it, How often they evaluate
it after the

purchase and the impact of such evaluations on future purchases.

Consumers can make buying decisions without evaluation and evaluate the brand during

consumption. On other hand the manufactures and small business also have to know the purchasing
decision

of the final consumers so as to target well the market according to specific products and services
required by

those consumers.

Iii- Results and Findings

The prime intent of this study is to explore the impact of brand loyalty on customer purchase

intention. Specifically, this study investigates Basketball shoe purchase decision which impact exact

determinants of brand loyalty, through the brand image, customer satisfaction and brand
experience.

Major Objective

• To identify the impact of Brand Loyalty on Customer Purchase Decision of Nike, Adidas and Puma
shoe

brands among

Asian Basketball players.

Specific Objectives

• To find the impact of each determinant of Brand loyalty on customer purchase decision.

• To find out the mostly used brand among Nike, Adidas and Puma shoe brands using by the
Basketball

players

• To come up with new suggestions to improve the customer purchase decision of Basketball
footwear.

Formulations of Hypotheses

H1: Brand Image will be positively affected on Purchase Decision for Basketball shoes

H2: Customer Satisfaction will be positivelyaffected on Purchase Decision for Basketball

H3: Brand Experience will be positively affected on Purchase Decision for BasketballShoes

Research Framework
The conceptual framework which includes Brand loyalty and its dimensions as the independent
variables and

customer purchase decision as the dependent variable can be shown as follows.

20 Journal of Physical Education and Sports Management, Vol. 7, No. 2, December 2020

Research approach

This study about the impact of Brand Loyalty on Customer Purchase Decision of Basketball shoes. .
Six

countries in Asia have been selected for comparison because the decision making can be different
from

country to country. The research focuses on confirming the opinion and to check which brand is the
best and

how brand loyalty influences on their decision making behavior. This research attempts to measure a
clearly

defined marketing phenomenon and this is used to test predetermined hypothesis and to find the
best

decisions that can be taken to improve the brands.

The study Sample

Sample size was calculated under the convenience sampling method. Since the research is done in

Asia and to compare the six countries chosen the researcher decided to collect data from equal
number of

respondents from each country.

Data analyzing

The data gathered through the structured questionnaire was entered in to SPSS 16.0 software (the

statistical package for the social sciences) computer based programme. For this research, the main
analysis

method used was Regression analysis. Multiple regression analysis shows how multiple independent
variables

relate to a dependent variable.

In the current research study, the researcher attempts to find the impact of brand loyalty
dimensions

such as brand image, brad experience and customer satisfaction on customer purchasing Behavior.
Hence,

customer purchasing behavior can be shown as the dependent variable and the dimensions of brand
loyalty

can be mentioned as independent variables.

Therefore, the equation for this research can be constructed as follows.

Where:

CPB = Customer Purchase Behavior

βo = Intercept/ constant of the equation

β = Slope

BI = Brand Image

Brand loyalty

Brand Image

Customer

Satisfaction

Brand

Experience

Customer

Purchase

Decision

Figure 1: Conceptual Framework

K. C de Silva, S.D.S Jayalath & A.A.L.Madhushani 21

BEX = Brand Experience

CS = Customer Satisfaction

εi = Random Error

Figure 2: The most preferred brand

Source: Research data (2018)

The majority of 58.3% from the sample is male who are in the ages between 20 and 29 years old and
%

of the sample is in a relationship. 100% of the sample is who are interested in sports and who
Basketball

players are and more than 50% of them are practicing regularly. For 75% of them, brand of the
Basketball

shoe is a considering factor in buying and Nike is the highest demanded brand based on the sample
data.

Validity Test (KMO)

Table1: Sampling Adequacy

Variable KMO

Value

Comment

Brand Image 0.817 Accepted

Customer

Satisfaction

0.497 Accepted

(Nearly 0.5)

Brand Experience 0.547 Accepted

Customer Purchase

Decision

0.776 Accepted

Source: (Survey Data, 2018)

KMO certifies whether the sample size is large enough to conduct the factor analysis and the value

should be greater than 0.5. In this study, the KMO values for all the variables are higher than 0.5
with

significance level of 0.000.

22 Journal of Physical Education and Sports Management, Vol. 7, No. 2, December 2020

Reliability of the Questionnaire

Table 2: Reliability Analysis

Variable KMO Value Comment

Brand Image 0.887 Accepted

Customer

Satisfaction

0.681 Accepted

Brand

Experience

0.602 Accepted

Customer

Purchase

Decision
0.787 Accepted

Source: (Survey Data, 2018)

The Alfa value should be more than 0.7 to be said that the questionnaire is reliable. In this research,

the alpha values were at a higher level than 0.7. Therefore, the researcher can conclude that the
questionnaire

used for the primary data collection is reliable.

Multicollinearity

Table3: Multicollinearity

Model Tolerance VIF

Brand Image 0.840 1.191

Customer Satisfaction 0.916 1.092

Brand Experience 0.888 1.125

Source: Survey Data (2018)

The tolerance values of all the variables are higher than 0.1 and VIF values are below 10. Therefore,

the regression analysis can be performed.

Multiple Regression Analysis For this research, the main analysis method used was Regression
analysis.

Multiple regression analysis shows how multiple independent variables relate to a dependent
variable.

(Higgiris, 2014).

Table 4: Summary Table

Model Summary

Mo

del

RR

Squar

Adjuste

Square

Std.
Error

of the

Estim

ate

Change

Statistics DurbinWatson

Square

Change

Change

.73

.54 .520 .3233 .545 22.32 1.418

a. Predictors: (Constant), BEX, CS, BI

b. Dependent Variable: CPD

Source: (Survey Data 2018)

K. C de Silva, S.D.S Jayalath & A.A.L.Madhushani 23

R2 indicates the explanatory power which means the degree to which extent that the variance of the
dependent

variable is explained by the independent variables.

According to Table 4, by looking at R 2

, it can be concluded that 55% of the variance of Customer

Purchase Decision is explained by brand image, customer satisfaction and brand experience. Only
45% of

variance of Customer Purchase Decision is explained by the other influencing factors which are not
covered

by the current study.

The B coefficient for brand image is 0.457 and it says that when brand image is changed by 1 unit

and it leads to a change of customer purchase decision by 0.457 units while other independent
variables
remain constant.

This conclusion of brand image can be presented with a 100% confidence level while the significance

level is 0.000 and therefore, hypotheses one (H1) can be accepted. The B coefficient for customer

satisfaction is 0.034 and it says that when customer satisfaction changes by 1 unit, then the
customer purchase

decision changes by -0.034 units. As this shows a significance value of 0.599 which is higher than
0.005,

therefore, the significance value shows the unacceptance of the negative relationship between
customer

satisfaction and customer purchase behavior. Therefore, the hypotheses 2 (H2) can be accepted
which says

there is a positive impact of customer satisfaction on customer purchase decision.

The B coefficient for brand experience is 0.192 and it says that the change of brand experience by 1

unit leads to a change of the customer purchase decision by 0.192 units and the significance level is
less than

0.000 and therefore, (H3) which denotes the impact of brand experience on customer purchase
decision can

be accepted.

Based on the above results, It can be concluded that H1, H2 and H3 can be accepted which denote

that brand image and brand experience impact on customer purchase decision of Basketball players
in the

selected countries in Asia. Therefore, the regression equation for the current study can be written as
follows.

Iv- Discussion

The main purpose of the study is to recognize the impact of brand loyalty on customer purchase
decision of

Basketball player in few countries in Asia.

Impact of Brand Image on Customer Purchase Decision

Brand image has been an important concept in consumer behavior research and is a crucial factor

influencing the purchasing of product decision. (Aaker, 1996). Therefore, brand image is a well-
accepted

important concept for brand loyalty and which motivates the purchase decision. According to the
current

research study, it reveals that the brand image has a positive impact on customer purchase behavior
than
other brand loyalty determinants and it emphasizes that brand image is a crucial factor in developing
and

maintaining loyal customers to the brands.

Impact of Customer Satisfaction on Customer Purchase Decision

Customer Purchase Decision

= 1.617+ 0.457 (BI) +0.034 (CS) + 0.192 (BEX) + 

24 Journal of Physical Education and Sports Management, Vol. 7, No. 2, December 2020

Kotler & Keller defines customer satisfaction as the approval or the disappointment of a person

when comparing their opinion about services received with their original service expectations. It can
be

concluded that when customer satisfaction is increased by 1 customer satisfaction, customer

purchase

decision is increased by 0.034 units. Therefore the companies should invest in improving customer

satisfaction and then it will lead to brand loyalty and finally it impacts on customer purchase
behavior.

Impact of Brand Experience on Customer Purchase Decision

Brand experience is created when customers use the brand; talk to others about the brand; seek out

brand information, promotions, and events, and so on (Ambler, 2004) According to the results of this

research, brand experience has a positive impact of 0.192 on customer purchase decision and this
can be

accepted since significance value is less than 0.05. This result motivates organizations to focus more
on new

concepts such as experiential marketing and improve brand experience.

V – Conclusion

The study is about the impact of Brand Loyalty on Customer Purchase Decision of selected countries

in Asia with special reference to Basketball shoe brands the study was conducted to sixty male
Basketball

players from Sri Lanka, India, Nepal, Japan, China and Malaysia were selected as the sample. Brand
image,

customer satisfaction and brand experience were taken as the independent variable dimensions and
customer

purchase decision was as the dependent variable. The study reveals that all the brand loyalty
dimensions have

a positive impact on customer purchase decisions while brand image is the highest impacting factor
for
customer purchase decision and brand experience next. It shows that brand image is the most
influential

factor which leads to brand loyalty for Basketball shoe brands when customers decide what to
purchase.

Moreover, Nike is the most preferred Basketball shoe brand in these six countries in Asia. Therefore,
it can

be concluded that brand loyalty impact on customer purchase decision.

One of the major purposes of the current research is to provide recommendations based on the

findings of brand loyalty and customer purchase decisions of Basketball shoe brands in Asia. In
overall, the

highest impact on customer purchase decision is from brand image. The research reveals that
majority is

aware and prefer Nike brand as a good shoe brand for Basketball playing. Therefore, the brands
should have

a good understanding about the perceptions of customers and to see their requirements. A
customer driven

quality strategy should be adopted because many of the companies use this method as a strategic
weapon.

Since there are many types of companies, this method will be a great strategy to achieve success.

The current advertising campaigns are acceptable for brands like Nike and Adidas. Other brands

should implement a massive advertising campaign through media platforms such as TV, paper and
social

media because, if the correct message goes to customer’s mind, they will perceive the brand and
that

perception will decide the purchase behavior of customers.

Moreover, for the improvement of brand experience, Service encounters should be carefully

managed. For this, the customer touch points where the customers engage with the purchase,
should be

strengthen and well maintained. By keeping a properly trained and motivated workforce, companies
can keep

the consistency of selling functions and customer interaction moments. This will help companies to
let their

employees have a good experience.

Companies can be used some promotional techniques such as discounts, coupons, entrance for

games etc. In common, companies should convey the messages properly because communication
doing a
vital role in giving the awareness, attracting and reminding. Customers who have a good brand
image, good

experience and satisfied are more loyal to the brands and brand loyalty will definitely lead to
customer

purchase decision in a positive way.

Enough information about products & services should be provided. Since the customers are

Basketball players, they highly rely on information before taking decisions. Therefore, by providing
enough

up to date information, Basketball shoe sellers can be able for building a loyal customer base.

K. C de Silva, S.D.S Jayalath & A.A.L.Madhushani 25

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VieNike - Statistics & Facts

Nike, Inc., which is an American multinational corporation, is the world's largest supplier and
manufacturer of athletic shoes and apparel, as well as a major supplier of sports equipment.
Some of the other big players within the industry are adidas, Puma, and Under Armour. Nike,
Inc. is the owner of a number of brands, including Nike, Converse, and Jordan, and the
company is headquartered in Beaverton, Oregon, United States.w publication stats