Factors Affecting Customer Habit Shifting from Global to Local Fashion Brands due to COVID-19
Nanette Aliyazahra1*, Mustika Sufiati Purwanegara1
1 School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia
*Corresponding Author: [email protected] Accepted: 15 August 2022 | Published: 1 September 2022
DOI:https://doi.org/10.55057/ijaref.2022.4.3.4
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Abstract: The COVID-19 outbreak which rapidly progressed causes human habit to shift in unexpected directions, with some aspects of habit irreversible. This shifting in habit made consumers have more actively reconsidered the fashion brands from which they purchase goods and services since the outbreak began. This study was conducted to determine the factors motivating consumers' habit shifting from global fashion brands to local fashion brands. This study uses a survey method in the form of questionnaires distributed via Google Forms to 421 respondents who have purchased global and local fashion brands during COVID-19 with particular domicile in Java Island. The research of this study obtained from data processing using Structural Equation Modeling (SEM). As the result, the findings that can be drawn from this study is that new online purchase habit affecting the nature of brand preference which influence customers of doing brand shifting from global to local fashion brands through online brand engagement, online brand interactivity, online brand experience and online brand satisfaction which influence customers of doing brand shifting from global to local fashion brands seen from customer’s self-concept congruence as well as brand image congruence.
These findings contribute to supporting local brands by providing insights on how to manage their brand to attract customers to purchase local brands in the future effectively.
Keywords: Brand Image, Brand Image Congruence, Self-concept Congruence, Brand Repurchase, New Online Purchase Habit, Brand Experience, Brand Satisfaction, Brand Interactivity, Brand Engagement, Brand Preference
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1. Introduction
The spread of COVID-19 has led to substantial changes in the fashion industry. The behavior of customers who could previously initiate physical contact through direct interaction, leading to a situation where customers are encouraged to avoid physical touch and be more cautious in direct interaction. COVID-19 has propelled customer trends toward digital commerce, resulting in an increase in the number of people who purchase online (Rudi Yanto et al., 2020).
Despite the fact that the pandemic has had a detrimental influence on the global economy, the e-commerce industry has seen a huge surge. According to Sirclo's analysis, the epidemic in Indonesia will result in 12 million additional e-commerce customers in 2020. On the one hand, the community is expected to sort out and prioritize needs. On the other hand, people want their basic needs to be met to the greatest extent possible. As more customers find themselves stuck at home, scrolling to each social network, customer engagement with apparel and fashion brands have steadily increased (McKinsey, 2020). While many fashion brands rely on customer allegiances and work hard to gain and keep new customers loyal, the pandemic has caused
previously established brand preference to shift. Customers have more actively reconsidered the fashion brands from which they purchase since the outbreak began.
Customers desired products that provided them with experiences based on their interaction with the brand (Baser, 2015). Thus, rather than the functional benefits of a product, what matters to a customer is how it enriches his or her life. As a result of their inability to speak directly with the company, fashion customers are experiencing varied levels of brand involvement (McKinsey, 2020). Brand experience in the context of online buying is thought to have an impact on brand satisfaction in order to acquire a competitive advantage and long-term sustainability (Xiao et. al., 2019). Brand experience has the power to influence not just brand satisfaction but also brand interactivity. Interactivity with a brand has been proposed as a forerunner to brand engagement (Kang et al.., 2020). Customers' motives for engaging in various sorts of engagement varied, and they add differently to the customers' own experience as well as the experience of other "potential" customers (e.g., in terms of customer satisfaction and perceived risk; Roy et al.., 2017).
The fashion brand marketing battle is predicted in the future where companies are trying to build a global brand that is favored by customers in various countries, even though local brands have long dominated a certain area (Tjiptono, Chandra, & Diana, 2004). The Visa study found that during the pandemic, public interest in online shopping and buying local fashion brands has increased. 68% of Indonesian customers consider local fashion brands more attractive in terms of price, 63% consider local fashion brands to be of the desired quality, and 62% think that these brands offer various discounts. Nonetheless, the trend of shopping for local fashion brands online will not only increase during the pandemic (McKinsey, 2021). According to a McKinsey survey, customer preferences have shifted to continue the online shopping behavior of local fashion brands after the end of COVID-19.
Customers are always seeking for a product that can provide them with functional, symbolic, emotional, epistemic, and situational benefits, thereby satisfying their needs and wants. The importance of how a brand is positioned through its brand image is critical, as is the need to control how these pictures are delivered to the general public (Jamal & Al- Marri, 2007). By saying that, customers are more likely to buy from brands whose advertised brand image is perceived to be similar to the customer's own self-concept. Mocanu (2013) discovered that when customers buy products, particularly highly visible products, they sometimes express their ideal self-concept (who they want to be) rather than their actual self-concept.
1.1.1 Problem Statement
Additionally, COVID-19 has impacted fashion customers and their purchase behaviors. During the pandemic, fashion shoppers were unable to attend physical stores owing to the total lockdown, and/or they avoided stores willingly to avoid contracting COVID-19. As a result, fashion shoppers have changed their buying channel from offline to online; this phenomenon is known as "store comes home" (Sheth, 2020, p. 281). As a growing nation rich in raw resources with enormous, easily affected prospective customers, the fashion industry continues to expand in the previously stated nation. As a potential commercial area, this industry is filled with several companies. Due to the abundance of possibilities, customers have the freedom to compare and evaluate the best alternatives. While many fashion firms rely on consumer loyalty and strive to acquire and retain new customers, the epidemic has shifted previously established brand preference. Since the outbreak began, customers have carefully reconsidered the fashion brands they purchase. Visa observed that the public's interest in online purchasing for local companies grew during the pandemic. Nonetheless, the tendency of purchasing local products
online will not only expand during the epidemic, but will also continue to grow (McKinsey, 2021). Customer preferences have shifted to continue the online shopping behavior of local fashion brands after the end of COVID-19.
Although fashion companies are providing a strategic response towards customers’ shifting to online under COVID-19, little is known about the factors motivating customers’ switching from global fashion brands to local fashion brands. In order to thrive in the digital world, the local fashion sector must innovate in order to grow businesses. Local brands are urged to pay constant attention to global fashion trends in order to remain competitive in the fashion industry and global retail sector as the product diversity and innovation of local brands is still perceived to be lower than foreign products (Kartikasari, 2020). The findings from previous study only allow fashion retailers and society to better understand fashion consumers’ channel switching to online stores under the pandemic (Youn, Lee, & Ha-Brookshire, 2021). Thus, it is timely to conduct research to understand the factors that make customers shifting their brand preference under COVID-19 as a result of the changes of online brand engagement, online brand interactivity, online brand experience and online brand satisfaction seen from customer’s self-concept congruence as well as brand image congruence.
1.1 Research Question
1) How are the changes of habit due to COVID-19 on brand repurchase?
2) Are there changes in self-concept due to COVID-19?
3) What are the factors that form habits after a new normal?
4) How are the changes of brand preference before, during and after COVID-19?
1.2 Research Objective
1) To explore the changes of habit due to COVID-19 on brand repurchase.
2) To explore the changes in self-concept due to COVID-19?
3) To explore the factors that form habits after a new normal.
4) To explore changes of brand preference before, during and after COVID-19.
1.3 Scope and Limitation
The research focuses on brand shifting from global fashion brands to local fashion brands, especially fashion, towards brand engagement, brand interactivity, brand experience and brand satisfaction, self-concept congruence and brand image congruence among Indonesian customers particularly in Java Island. Then, the research will identify the generation Z with the age range of 17 - 26 years old who purchase global fashion products and local fashion products during COVID-19.
2. Literature Review
2.1 Brand Preference
Brand preference is a habitual behavior that reflects customer attitudes toward a brand (Ebrahim et al., 2016). Brand preference also refers to the extent to which customers prefer services provided by one company over those provided by others (Hellier, Geursen, Carr, &
Rickard, 2003). It reflects their preference for a particular brand. When customers are exposed to other products of the same type and prefer one brand over another, this is referred to as brand preference (Hellier et al., 2003).
2.2 Brand Satisfaction
Marketing practitioners recognize that understanding customer satisfaction with brands is very important for developing a marketing strategy for goods and services (Pine & Gilmore 1998;
Schmitt 1999, 2003; Brakus et al., 2009). Managing customer satisfaction is generally considered to create a competitive advantage for the company, as well as a positive impact on the brand (Ismail, 2010). Over time, it can shape the brand experience and if it can last a long time stored in the customer's memory can affect customer satisfaction and loyalty (Oliver 1997;
Reichheld 1996).
2.3 Brand Engagement
According to the definition, brand engagement is "a psychological state resulting from collaborative, co-creative consumer experiences with a brand in service interactions" (Brodie et al., 2011, p. 260). Extending this perspective, Hollebeek et al. (2019, p. 166) define customer engagement as the "motivationally driven, voluntary investment of operant resources (including cognitive, emotional, behavioral, and social knowledge/skills), and operand resources in their brand interactions."
2.4 Brand Interactivity
The relatively fresh notion of brand interactivity focuses on the customers' perception of the brand's willingness and actual desire to connect with them (France et al.., 2016; Shao et al.., 2015). It also refers to customers' perceptions of genuine preference for a brand in the context of their interactions with the brand (France et al.., 2016). In this regard, customers are becoming increasingly engaged in interactions with respective brands (Merz et al., 2009; Islam et al., 2018; Fernandes and Moreira, 2019) as a result of continuous communication from the brand- side, which demonstrates the brand's desire to interact with and relate to customers.
2.5 Brand Experience
Brand experience can be defined as the customer's cognitive or perception of what he or she finds in the brand as a result of engagement and satisfaction (Schmitt, 2012). As seen by Chase and Dasu (2014), the impact of brand experiences on consumer recall is more enduring than product features or advantages. Following Tynan and McKechnie (2009), value is not an additional component of the brand; rather, it is developed as customers experience the brand, so that the brand is regarded as a rich source of experience that provides value to customers.
2.6 Customer Habit Change During COVID-19
A survey exploring customer habits before and after the COVID-19 crisis revealed that with the significant increase in the new personal online shopping usage, the pandemic has had an impact on brand experience – as they cannot visit the store physically – that influences their new purchasing habit (Mason et al.., 2020). As a result, a large proportion of customers have turned to online consumption for all business sectors including fashion. It is stated that there is 112% growth in customers purchasing fashion categories online during COVID-19 (McKinsey, 2020).
2.7 Brand Repurchase
Based on the most recent previous study, brand repurchase intention is the propensity for customers to purchase the same brand's products or services in a recurring manner. It is an expected, straightforward, and objective predictor of purchasing behavior (Kuo et al.., 2013).
Repeat purchase behavior happens when the product fulfills the customer's expectation and acceptance, which is a strong indicator that they will purchase and utilize it again in greater numbers (Schiffman and Kanuk, 2004).
2.8 Self-concept Congruence
Self-concept congruence theory is well established and has been applied in a study that focuses on symbolic purchasing behavior (Aguirre-Rodriguez, Bosnjak and Sirgy, 2012).
customers buy products and brands they believe to possess symbolic images similar and / or complementary to their self-image, that is, to achieve image congruence (He and Mukherjee, 2007). According to self-concept congruence theory, increasing the congruence between users' ideal & actual image and brand image has a positive impact on brand repurchase (Malär et al.., 2011).
2.9 Brand-image Congruence
The theory of brand congruence argues that individuals are more comfortable and satisfied with products/brands that are congruent with their actual or desired self-concept (Sirgy & Su, 2000).
A person's brand image congruence is a collection of beliefs, ideas, and impressions about a brand (Kotler and Armstrong, 2012). When customers consider a brand, their attitude is influenced by its brand image congruence with themselves.
2.10 Brand Image
Woisetchläger and Michaelis (2012) define brand image as the impressions produced in the memories of customers as a result of brand affiliation. Customers will generally prefer well- known brands when making a purchase, even if the price offered is quite high. Furthermore, previous research has shown that customers with a strong and favorable brand image are more likely to trust a brand and are more likely to purchase a specific brand because brand image increases their trust beliefs (Esch et al.., 2006).
2.11 Conceptual Framework
Figure 2.1 represents the conceptual framework used in this study based on the evaluation of the previous related study. The framework and variables are developed and integrated from Mocanu (2013), Farhat (2012), Wel, Akmar and Mokhtaruddin (2018), Soediono, Wedanaji and Adeline (2020), Cuong (2020), Ali et al.. (2020), Sahin, Zehir and Kitapçı (2011). Tsai, Chang and Ho (2015), Paramita et al.. (2021), Cuong (2020), Adhikari and Panda (2019), Liu et al.. (2017). As a result of the combination contained in this study showed in Figure 2.1.
Figure 1: Conceptual Framework
H1. Global brand-image is positively related to self-concept congruence.
H2. Global brand-image is positively related to global brand-image congruence.
H3. Self-concept congruence is positively related to global brand-image congruence.
H4. Self-concept congruence is positively related to local vs global brand repurchase.
H5. Global brand-image congruence is positively related to local vs global brand repurchase.
H6. Global brand-image is positively related to global & local brand satisfaction.
H7. New online purchase habit is positively related to local vs global online brand experience.
H8. Local vs global online brand experience is positively related to local vs global online brand satisfaction.
H9. Local vs global online brand experience is positively related to local vs global online brand interactivity.
H10. Local vs global online brand satisfaction is positively related to local vs global online brand preference.
H11. Local vs global online brand interactivity is positively related to local vs global online brand engagement.
H12. Local vs global online brand engagement is positively related to local vs global online brand preference.
3. Methodology
A quantitative method using online questionnaire was used in this study. The researcher use non-probability sampling methods since not all members of the population have an equal chance of selection. The measurement will be evaluated with a five-point Likert scale, 1 indicates strongly disagree and 5 indicates strongly agree. The questionnaire is distributed online to 421 respondents who have purchased global and local fashion brands during COVID- 19. Using the Statistical Package for the Social Sciences (SPSS) version 22, the questionnaire's validity and reliability are assessed after collecting responses from participants. PLS-SEM is then used to diagnose the study's framework, along with reliability test, validity test, collinearity test, structural path significance in bootstrapping, coefficient of determination (R2), stone-giesser (Q2), F square (f2) effect size, total indirect effect, total effect, and mediation result.
3.1 Partial Least Square (PLS-SEM) Analysis Results
This research discovered the causal modeling in the conceptual framework using Partial Least Square. In this study, the SmartPLS program was used to determine and quantify the relationship between all variables. As illustrated in Figure 4.1, the calculation result is as follows.
Figure 2: PLS-SEM Result
3.1.1 Outer Model Testing 3.1.1.1 Indicator Reliability Test
Indicator Reliability is determined by examining item reliability (validity indicator), as represented by the loading factor value. In this research, the loading factor value of the indicators on each research variable has met the requirements so that the data can be said to be valid.
3.1.1.2 Discriminant Validity
In this research, cross loading findings indicate that the correlation value between the construct and its indicators is stronger than the correlation value between the construct and other constructs. Thus, all constructs and latent variables show strong discriminant validity, with the indicators in the construct indicator block being superior to those in other blocks.
3.1.1.3 Validity Analysis
All constructs show an AVE value greater than 0.50, with the smallest value being 0.511 for global brand image. This value has met the requirements in accordance with the specified minimum AVE value limit of 0.50.
3.1.1.4 Internal Consistency Reliability
This research shows that the composite reliability value for all constructs is above the value of 0.7 means all constructs have good reliability in accordance with the required minimum value.
3.1.1.5 Collinearity Test
The collinearity test is determined by the VIF value based on the lack of collinearity when the VIF value is less than 5. In this research, the VIF value shows a number below 5 so that there is no collinearity problem.
3.1.2 Inner Model Testing
3.1.2.1 Coefficient of Determination (R2)
Coefficient of Determination (R2) used to determine the relationship between the independent and dependent variables. The coefficient of determination may be calculated as follows:
Table 1: Coefficient of Determination (R2)
Path Original
Sample (O)
Sample Mean (M)
Standard Deviation (STDEV)
T Statistics (|O/STDEV|)
R2
Global Brand Image -> Self Concept Congruence
0.354 0.364 0.049 7.206 0,138
Global Brand Image -> Global Brand Image Congruence
0.511 0.509 0.039 13.021 0,417
Self Concept Congruence ->
Global Brand Image Congruence
0.254 0.259 0.041 6.121
Self Concept Congruence -> Local vs Global Brand Repurchase
0.149 0.155 0.049 3.023 0,476
Global Brand Image Congruence -
> Local vs Global Brand Repurchase
0.612 0.612 0.041 14.858
Global Brand Image -> Local vs Global Online Brand Satisfaction
0.132 0.119 0.178 0.743 0,453
Local vs Global Online Brand Experience -> Local vs Global
Online Brand Satisfaction
0.605 0.596 0.057 10.624
New Online Purchase Habit ->
Local vs Global Online Brand Experience
0.510 0.522 0.036 13.984 0,544
Local vs Global Online Brand Experience -> Local vs Global Online Brand Interactivity
0.737 0.739 0.024 30.140 0,488
Local vs Global Online Brand Interactivity -> Local vs Global
Online Brand Engagement
0.699 0.700 0.026 26.567 0,280
Local vs Global Online Brand Satisfaction -> Local vs Global
Online Brand Preference
0.261 0.259 0.075 3.467 0,655
Local vs Global Online Brand Engagement -> Local vs Global
Online Brand Preference
0.619 0.621 0.057 10.810
According to Ringle, Da Silva and Bido (2014), the objective of R2 is to determine the percentage of dependent variable variances that the structural model can explain. For marketing research, an R2 score of 0.75 is high, 0.50 is moderate, and 0.25 is low (Wong, 2013).
3.1.2.2 Stone Geisser Test
The value of Q2 structural model testing is determined by examining Q2's value (predictive relevance). The following is Q2 result:
Q2 = 1-(1-0,1382) (1-0,4172) (1-0,4762) (1-0,4532) (1-0,5442) (1-0,4882) (1-0,2802) (1-0,6552)
= 1-0,000000363 = 0,999999636
According to Ghozali (2014), the value of Q2 may be used to determine how effectively the observed values and estimated parameters are created by the model. A Q2 value greater than 0 means the model is good, while a Q2 value less than 0 means the model is having predictive relevance. In this research, the Q2 value is larger than 0, indicating that the model's predictions are valid. Nest, is to assess the goodness of fit (GoF). The square root of the average value of R2 and the average value of Q2 are multiplied to generate this index (Wong, 2013).
GoF = 0.338
Based on Tenenhaus et al., (2005) study, the goodness-of-fit (GoF) criterion is applied to the complete model fit to ensure that the model adequately describes the observed data. The GoF values range from 0 to1, with 0.10 (small), 0.25 (medium), and 0.36 (large), indicating global validation for the PLS model (Hussain et al., 2018). This research model has a GoF value of 0.338, which indicates that it can explain the empirical data.
3.1.2.3 F Square Effect Size
The f-square effect size test attempts to determine the significance and magnitude of the latent variable's significant influence. The impact sizes of 0.02, 0.15, and 0.35 indicate minor, moderate, and high effects, respectively. The findings of the f square effect size are provided in the table below.
Table 2: F-square effect size
GBI SC GIC LGBR LGOBS NOPH LGOBEX LGOBI LGOBEG LGOBP
GBI 0.143 0.391 0.029
SC 0.097 0.034
GBIC 0.581
LGBR
LGOBS 0.117
NOPH 0.352
LGOBEX 0.604 1.191
LGOBI 0.954
LGOBEG 0.657
LGOBP
3.1.2.4 Mediation Test
A mediation test was undertaken to determine the validity of the mediating variable. All of the P values in this research are less than 0.05, suggesting that all of the mediating factors are correct. However, there is one mediating variable value which is higher than 0.05 (0.430) namely global & local brand satisfaction, this explains that global & local brand satisfaction cannot mediate the influence of global brand image on global & local online brand preferences.
3.1.3 Hypothesis Testing
On the basis of the Inner Model test findings, which comprise r-square output, parameter coefficients, and t-statistics, hypotheses are tested. Among other things, to determine if a hypothesis may be accepted or rejected by considering the significance value between constructs, t-statistics, and p-values. The hypothesis testing result can be taken from the bootstrapping results. In this research, rules of thumb with a significance threshold of p-value of 0.05 (5 percent) and a positive beta coefficient were applied. Table 3 demonstrates the result of hypothesis testing result:
Table 3: Hypothesis Testing Result
Hypothesis Structural Path Sample
Mean (M)
T Statistics (|O/STDEV|)
P Values
Decision H1 Global Brand Image -> Self Concept
Congruence
0.364 7.206 0.000 Accepted
H2 Global Brand Image -> Global Brand Image Congruence
0.509 13.021 0.000 Accepted
H3 Self Concept Congruence -> Global Brand Image Congruence
0.259 6.121 0.000 Accepted
H4 Self Concept Congruence -> Local vs Global Brand Repurchase
0.155 3.023 0.003 Accepted
H5 Global Brand Image Congruence ->
Local vs Global Brand Repurchase
0.612 14.858 0.000 Accepted
H6 Global Brand Image -> Local vs Global Online Brand Satisfaction
0.119 0.743 0.458 Rejected
H7 New Online Purchase Habit -> Local vs Global Online Brand Experience
0.522 13.984 0.000 Accepted
H8 Local vs Global Online Brand Experience -> Local vs Global Online
Brand Satisfaction
0.596 10.624 0.000 Accepted
H9 Local vs Global Online Brand Experience -> Local vs Global Online
Brand Interactivity
0.739 30.140 0.000 Accepted
H10 Local vs Global Online Brand Satisfaction -> Local vs Global
Online Brand Preference
0.259 3.467 0.001 Accepted
H11 Global & Local Online Brand Interactivity -> Global & Local
Online Brand Engagement
0.700 26.567 0.000 Accepted
H12 Global & Local Online Brand Engagement -> Global & Local
Online Brand Preference
0.621 10.810 0.000 Accepted
4. Conclusion and Recommendation
4.1 Conclusion
Based on research results, the answers to research questions are as follows:
1) How are the changes of habit due to COVID-19 on brand repurchase?
Recent findings on customer habits during the COVID-19 pandemic confirms and shows that the pandemic is changing customer habits (Koch and Frommeyer, 2020). Customers have more actively reconsidered the fashion brands from which they repurchase since the outbreak began.
Based on the results of respondents' answers, the highest value of brand repurchase is LGBR4, which is based on what respondents experienced with Local Fashion Brand Y, they are more likely to repurchase this brand's products after COVID-19. This explains that there is a change in habits due to COVID-19 on brand repurchases in which the respondents are more likely to not repurchase from Global Fashion Brand X. Instead, they will shift to Local Fashion Brand Y. Moreover, this habit changes are predicted to continue even after COVID-19 ends. Previous study stated that customers around the world have responded to the crisis and its associated disruption to normal customer experience by experimenting with new shopping habits and expressing a strong intent (65% or higher) to incorporate these behaviors in the future. In this research, it can be seen that LGBR 3 value (It is highly likely that I will repurchase Local Fashion Brand Y after COVID-19) is higher than LGBR 1 value (It is highly likely that I will repurchase Global Fashion Brand X after COVID-19). With that being said, customers are preferring to continue to repurchase Local Fashion Brands rather than Global Fashion Brand X even after COVID-19 ends.
2) Are there changes in self-concept due to COVID-19?
Referring to self-concept congruence theory, customers have favorable perceptions of products and brands perceived to be congruent with themselves because they seek self-consistency (Arslan, Y., & Sututemiz, N., 2019). In the case of retailing, the underlying source of motivation is customers' need for self-consistency, which is linked to brand repurchase (Kressman et al.., 2006). In this research, the respondents are having a change in terms of self- concept due to COVID-19. The result of the highest answer of self-concept is that during COVID-19, respondents are more considerate of the pros and cons before doing something compared to before COVID-19. This indicates there is a change in self-concept due to COVID- 19, where respondents are now always considering what advantages or disadvantages they will get before shopping for fashion brands compared to before COVID-19. High self-congruity
occurs when the identified brand image is perceived to match with the customer, whereas low self-congruity occurs when the customer perceives a minimal match between the brand image and the customer (O’Cass & Lim, 2002). With that being said, as most of the respondents choose to repurchase Local Fashion Brand Y due to COVID-19, they perceived Local Fashion Brand Y as their own self-concept more closely than Global Fashion Brand X compared to before COVID-19.
The change in self-concept congruence due to COVID-19 has also an impact on the global brand image congruence. This is supported with the lowest value of brand image congruence which says that the image of Global Fashion Brand X is a mirror image of how respondents would like others to see them. This means that due to COVID-19, Global Fashion Brand X no longer acted as a mirror image of how respondents would like to be seen by others. They also attempt to satisfy their internal compliance with the inner self by purchasing Local Fashion Brand Y that congruences to their self-image and more likely to match with respondents’ ideal self. Previous study argued that as customers' perceptions of congruence between self-image and brand image improve, so will their brand repurchase (He & Mukherjee, 2007; Malär et al.., 2011; Sung & Choi). This also aligns with previous discussion stating that during COVID-19, customers are preferring to repurchase Local Fashion Brand Y instead of Global Fashion Brand X compared to before COVID-19. Given that customers do not always base their purchases exclusively on a product's utility, but also with the congruence of customers' preferences in their self-concept and the image of the brand.
3) What are the factors that form habits after a new normal?
Based on the research results, the highest value of the new online platform purchase habit is that compared to before COVID, respondents often purchase clothes on e-commerce during COVID-19. It can be seen that the e-commerce environment eventually became a new habit of society in the new normal as the frequency of customers using it is increasing compared to before COVID-19. This is in line with the study conducted by McKinsey, revealing that 75%
of customers have tried a new shopping habit in response to economic pressures, store closings, and shifting priorities, with 20% trying a new digital shopping method. This result is in line with the theory which explains that customers have also reduced the frequency of visiting offline stores as they fear that there may be people who are positive for COVID-19 (UNCTAD, 2020). It is also stated that there is 112% growth in customers purchasing fashion categories online during COVID-19 (McKinsey, 2020).
The results of this study also convey that the new online platform purchase habit has a positive influence on local vs global online brand experience. A survey exploring customer habits before and after the COVID-19 revealed that with the significant increase in the new online shopping usage in e-commerce, the pandemic has had an impact on brand experience – as they cannot visit the store physically – that influences their new purchasing habit (Mason et al.., 2020). Furthermore, the emergence of online shopping has become a more important channel for marketers to fully understand and deliver a quality experience for customers (Shankar and Jebarajakirthy, 2019). Thus, this experience is the most basic reference for society because in online shopping people can shop more efficiently without the need to spend more, such as transportation and others. In doing online shopping, the e-commerce admin also plays a very important role in creating a shopping experience as customers can more freely ask questions about the products and get advice on the products they want to purchase.
4) How are the changes of brand preference due to COVID-19?
Based on the analysis that has been conducted, there are changes of brand preference due to COVID-19. This can be seen from the highest answer value from brand preference, namely whereas respondents would use Local Fashion Brand Y more than they would use Global Fashion Brand X, indicating that customers are more likely to prefer using Local Fashion Brand Y rather than Global Fashion Brand X prior to COVID-19. The result aligns with theory which stated that people in lockdown were cut their discretionary spending, became more picky, and shifted to local brands (Sumarliah et al.., 2021). With many online shoppers reporting a decrease in income (Hobbs, J.E., 2020), it is not surprising that more affordable brands, including local brands, were preferred at that time (Cai, R & Leung, X. Y., 2020). To be more specific, as COVID-19 went by, customers would be inclined to buy local brands over any other imported Global Fashion Brand X and they like Local Fashion Brand Y better than any other imported Global Fashion Brand X.
In line with these results, brand preference is directly influenced by brand satisfaction. It explains that in online shopping during COVID-19, people are more satisfied with buying Local Fashion Brand Y than Global Fashion Brand X since their expectation is more fulfilled.
Other than that, a theory explains satisfaction is defined as an effective response to purchase situations (Bennet et al.., 2005) and it has an impact on brand preferences as customers' brand preferences are formed through their life satisfactory experiences combined with accumulated satisfactory experience of related products, which is the process of recalling a brand (Riding &
Cheema, 1991). The statement is also supported by the lowest value gathered from global &
local brand satisfaction which shows most of the respondents are not happy with their decision to choose Global Fashion Brand X. Therefore, their unsatisfactory experience has an impact on the changes of people's brand preference due to COVID-19 whereas they prefer to use Local Fashion Brand Y compared to Global Fashion Brand X.
Alongside, this research found brand engagement plays an important role in brand preference.
The highest value of brand engagement is saying that while online shopping on e-commerce during COVID-19, compared to Global Fashion Brand X, Local Fashion Brand Y makes customers feel more positive and happier rather than before COVID-19. In addition, respondents prefer Local Fashion Brand Y based on their outstanding engagement with the brand that makes them think about it more. Moreover, customers feel engaged more with Local Fashion Brand Y during COVID-19 since it makes them prouder. Through the customer engagement, customer’s intent to reach their utilitarian, hedonic, or social product-or brand- related goals, thereby helping to build preference (Hollebeek and Macky, 2019). Hence, they prefer to purchase from Local Fashion Brand Y and prefer to continue using Local Fashion Brand Y after the COVID-19 compared to products from Global Fashion Brand X.
4.2 Recommendation
Based on the results of the study, the suggestions from this study are as follows:
4.2.1 Local Fashion Brand
In this research, the researchers have given the elements impacting customer behavior changing from global to local fashion firms owing to COVID-19. It can be inferred that the top factors that impact the brand preference shifting are brand satisfaction and brand engagement. Now that customers are able to purchase practically anything they like on whichever platform they choose, the e-commerce experience has radically changed. Hence, giving an exceptional e- commerce customer engagement is not only good for business, it’s a must for consumer intention to purchase. Local fashion brands are recommended to share information proactively
and help potential customers assess if the items or services are the correct match for them more rapidly. This may be helped by replying to consumers' inquiries in a quick and efficient manner so that the hussle in the check-out process is minimized. This might also drive customers to have greater communication with the brand. In addition, local brands may gather client feedback and improvise product / service quality so that customers are happy in buying local goods. By reacting to constructive feedback from consumers reviews, it will make customers believe that the companies are listening to what they want and closely correspond with what they need. On the other side, local companies may grasp the client pain points and obtain insights into customer behavior to be able to quickly adjust.
4.2.2 Future Studies
The limitation of this research is the narrow scope of the research. Researcher only focus on fashion brand products, especially clothing. This makes the results of this study cannot be generalized to make consumption patterns of the Indonesian people. The existing limitations make researchers hope that further researchers can expand the scope of research, such as in terms of industry and regional coverage, especially those that have a strong impact during the COVID-19 period. Further researchers are also advised to be able to see the phenomenon of changes in people's habits during the COVID-19 period so that research results can contribute to science.
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