Customer Satisfaction in the Fashion Industry: H&M Case

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Introduction

Research design is a prominent and vital part of marketing researcher. By applying various methods of analyzing and interpreting data, one can form solutions to emerging problems and ensure the stable development of a company. In this process, choosing the most appropriate type of research design is especially important, as it allows the professional to meet their goals in the most effective manner. The decision is made by taking into consideration the main purposes of research and the result that is ought to be achieved. For the purposes of this paper, a look into the fashion industry will be taken, specifically the H&M brand. The company is a juggernaut of the industry, being the biggest fashion retailer in Europe. Operating in 74 countries, the company has managed to amass much profit and garner a considerable reputation. However, similar to other businesses, the issue of customer satisfaction affects H&M and their profits considerably. The paper will explore the levels of satisfaction within the brands customer base using a specific research method.

Hypothesis and its Limitations

The company, having had an ability to spread their influence around the globe, the worldwide response to their products varies. In some countries, customer satisfaction is measurably higher than in others. Studies on the relative customer satisfaction with H&M products have been conducted in the past, highlighting important trends and correlations. The study, named Customer satisfaction in the fashion industry. Case study of HM case company has explored the differences in customer perception in Sweden and China (Yu & Shi, 2013). The authors used a quantitative method to collect questionnaires from young adults between the ages between 18 and 25. Evaluating respondent attitudes towards pricing, product quality, design satisfaction, and brand awareness, the paper has found that customer satisfaction in Sweden is higher than in China (Yu & Shi, 2013). Taking this information into account, it can be hypothesized that each of these criteria affects customer satisfaction, especially customer service. At least 10% percent of Chinese interviewees seem to be dissatisfied with the customer service present in H&M.

Research Design

Types of Research Design

There are a number of research designs available, with some of the often-used ones being: exploratory research, descriptive research, and causal research. The first type, Exploratory research, is well suited for addressing problems with little coverage and specific issues concerning a business. This approach allows individuals to gain a more nuanced understanding of the topic, while not necessarily leading to a solution. It can aid a researcher in developing further hypophysis and defining the underlying issues more clearly. Exploratory research is most often conducted using existing information and studies on the topic, although the use of focus groups, personal interviews, and case analyses, among other approaches are also viable. The main drawback of this research method is that it does not offer complete results and instead promoted further discussion, which is not helpful as a short-term solution to a problem. Descriptive approach, on the other hand, is used to describe an idea or an occurrence that is being studied. Descriptions are usually sorted into categories and can be utilized to understand a specific phenomenon in more detail. The research method employs surveying methods, including questionnaires, personal interviews, and different kinds of surveys. While allowing researchers to become more familiar with the topic of their study, the approach does not directly address the underlying issues or reasons for the topics relevance. Causal Research is the last type, utilized to accomplish objectives the previous two are unable to meet. This research design approach is effective in examining the underlying causes of a specific outcome. Investigating cause-and-effect relations, this approach allows the researchers to understand the impact specific changes have on pre-existing conditions. Causal research explains the relationships between multiple variables.

Chosen Research Design

For the purposes of this paper, Causal research method will be employed to explore the correlation between customer satisfaction and the quality of service. This approach seems to be the most effective, as it allows the researcher to compare the trends and correlations of two variables. As outlined in multiple studies, the correlation between the customer service and peoples attitude is substantial.

Chang Lee, M. (2000). The Causal Relationship between Service Quality, Customer Satisfaction, and Profitability in Taiwan Banking Industry.

In the paper, the author examined how service quality affects the banking industry in Taiwan. Having created structural and measurement models to investigate the relationship between the two variables, the author has confirmed that in the case of Taiwanese banking, quality of service has a positive correlation with customer satisfaction and an increase in profits.

Ehsan, A., Hassan, D., Morteza, S., & Setareh, S. (2018). Examine the Causal Relationship between Satisfaction and Expectations of Product Quality and Services and the Post-Purchase Behavior of the Sport Consumers with the Mediating Role of Brand Awareness. Asian Exercise And Sport Science Journal, Vol.2(No.2).

The study has examined how service quality affects product quality expectations and customer satisfaction in the constraints of sport-oriented products. By using a 35-item questionnaire, the researchers have found that there is a significant causational relationship between the quality of customer service and their expectations about the product.

Huang, G., & Sudhir, K. (2020). The Causal Effect of Service Satisfaction on Customer Loyalty. Management Science.

An instrumental-variable approach was used by the authors to gain an estimate on the causal effect of service satisfaction on customer loyalty. Cross-sectional survey data were utilized to gather data previously collected. The result gathered suggest that the value of customer service satisfaction in developing brand loyalty is severely underestimated. The authors reinforce the notion that customer satisfaction needs further investment from companies and that their approach can be used in other case-specific studies.

Conclusion

This paper has explored some of the aspects of research design in regards to the marketing efforts of companies. The dissatisfaction with service quality in H&M retail stores was used as an issue, with the main hypothesis being that the Chinese audience is dissatisfied with the current level of store service. It is proposed that the Causal Research method will be effective in analyzing this issue, as it has shown its effectiveness in previous precedents.

Works Cited

Chang Lee, M. (2000). The Causal Relationship between Service Quality, Customer Satisfaction and Profitability in Taiwan Banking Industry.

Huang, G., & Sudhir, K. (2020). The Causal Effect of Service Satisfaction on Customer Loyalty. Management Science.

Yu, Y., & Shi, Z. (2013). Customer satisfaction in the fashion industry : Case study of HM case company.

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