Levi Strauss free essay sample

As one attempts to assess the business ethics of Levi Strauss and Nike in this writing assignment, we are again compelled to revisit the critical distinction of conduct that is legal, yet still unethical. In both instances, Levi Strauss and Nike behaved with the parameters of legal conduct, yet few would argue that profiting from exploitive work conditions is an ethical behavior of any socially responsible organization (broad view social responsibility). Obviously, it’s very tempting to just condense this argument to the point of â€Å"bad companies boosting profits from lower labor costs via exploiting foreign workers in sweatshops†. I am going to take a much broader approach here in my assessment, as complete fairness to the two corporations here requires a bit of an indictment of the legal, regulatory, political, and socioeconomic environment that they operate in. So, let’s start there †¦ how is it that both of these large corporations are permitted (and driven) to outsource (with relative impunity) labor to countries with poor labor laws? In order to fairly assess their conduct, one must first examine the system under which they operate. We will write a custom essay sample on Levi Strauss or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page How has corporate America gone down this path? Why do so many large U. S. corporations outsource labor en masse, which costs the U. S. economy so many jobs domestically? Let’s start by looking in the mirror and by that I mean you and I †¦ the U. S. consumer. Our thirst for cheap merchandise made overseas knows no limits. Do any of us look at the country of origin for goods, and if it’s non-U. S. do we even pause for a second to consider boycotting said goods due to loss of American jobs? Or boycott due to the nation of origin’s reputation for worker abuse? Of course we don’t. We want that Japanese high definition television from Wal-Mart that costs $100 less. We want the clothing from China or Indonesia that is 30% cheaper than similar brands made here. So, my first premise in this entire argument is that American consumers are NOT socially responsible in their purchasing habits. This lack of social responsibility on the demand side is a catalyst for Levi Strauss and Nike to seek cheaper labor overseas – for if they do not, their competitors assuredly will and they will be at a competitive disadvantage. Now, let’s assess the legal and regulatory environment under which both entities operate in the United States. Has Congress made it illegal to outsource labor to countries that they know are abusing their labor forces? In general, of course not. Congress maintains a blind eye to the problem, debating it over the years here and there in a politically motivated, half-hearted effort to occasionally placate certain voting segments (labor unions; displaced workers). Do they tougher their stance? Do they for one minute say to themselves, â€Å"this is really wrong, and socially irresponsible†? By inaction Congress is tacitly approving this practice, which of course is what powerful corporate lobbyists want. The profit motive has large U. S. corporations addicted to cheap labor now; Pandora’s Box has been opened and no one has the political will to attempt to close it. So let’s recap so far: we’ve indicted the U. S. consumer and our lawmakers in the legislative branch of the U. S. government (Congress) as major cultivators of the pro-outsourcing environment for which Levi Strauss and Nike must successfully operate under. Next on our list of socially irresponsible contributing parties – the judicial branch of the U.S. government. When the U. S. Supreme Court found in 2010 that the formation of so called â€Å"Super PACs† for campaign donations was legal, this gave corporations new powers under the law to, in effect, buy our government via opulent and obscene campaign spend funneled to candidates. The end result of this ruling is that corporations that profit greatly from outsourced labor are now able to pay for the elections of our Congressmen – and gee, wonder how this economic â€Å"favor† will be repaid when attempts to rein in outsourcing come up in Congress? Let’s move on to our two protagonists in this debate: Levi Strauss and Nike. Now that we’ve got the backdrop well in hand, and a reasonable person would agree that a massive systemic failure in the U. S. has allowed and promoted unchecked outsourcing of jobs, it’s time to discuss these two corporate giants and their respective behaviors here. Do these two corporations have a responsibility to monitor the conduct of the companies they do business within particular, their contractors and suppliers? As a personal believer in the broader view of corporate social  responsibility, I believe that they do. Notwithstanding the fact that all of this outsourcing is legal, and despite the mitigating factors that I’ve argued above that do alleviate these two companies of all of the blame – I still believe that they need to take the higher moral ground. Levi Strauss overall has conducted itself with far greater corporate social responsibility than Nike has, in my judgment. Strauss for many years withdrew from China due to their notoriety as a non-democratic country with abusive labor conditions. Regrettably, it had to re-enter China eventually to keep pace with competitors. Also, witness the way that Strauss treated its displaced U. S. workers as it (with some remorse) eventually had to close all its U. S. plants due to competition from outsourcers. Strauss gave generous severance and retraining dollars to the affected workers. In my estimation, Strauss has had to compromise its socially responsible corporate culture due to pressures from the warped competitive environment that was designed around them. It became a matter of survival for their corporation; their management had to adapt or risk failure and loss of the shareholders’ investments in the company. That is why I authored the overview above – I think it’s highly relevant to assessing Strauss’s conduct here. The system failed Levi Strauss – they wanted to behave under the broad definition of corporate social responsibility, but the demand for cheaper outsourced goods by consumers and the legality of outsourcing jobs (Congressional oversight failure) forced an adaptive change against their moral grain. Nike, however, is no apologist when it comes to their outsourcing. In fact, they are proud of it – even boasting that they pay outsourced workers higher than average wages for their region. To me, this is tantamount to bragging that â€Å"we don’t abuse those workers as badly as others do†. Frankly, that attitude offends my sensibilities and my personal set of ethical standards. I also deem it to be in direct conflict with the broader definition of corporate social responsibility. Lastly, I think that corporations have the obligation to take the ethical high ground and behave in a socially responsible manner (broad definition). That said, however, I do not believe that it’s a fair expectation to demand that high standard if adhering to same places the company’s very existence at risk due to systemic failures beyond their control. Levi Strauss attempted to â€Å"do the right thing†, but poor rules and oversight make competing in a broad ethical manner quite dangerous to its ultimate survival. Strauss’s example should serve as a wakeup call to U. S. consumers and our Congress: systemic change is needed, and it’s needed NOW. Levi Strauss free essay sample CUSTOMERS’ SATISFACTION LEVEL OF LEVI’S JEANS SEC-F Submitted To: Prof. Suptarishi Purkaystha Submitted by: Akanksha Gupta Komal Shanjan Sinha Tuhina Mandowara Shweta Puri Sujata Barua Akshay Sharma 09BSHYD1012 09BSHYD0386 09BSHYD0765 09BSHYD1032 09BSHYD0807 09BSHYD0866 09BSHYD0060 1 INDEX CONTENTS INTRODUCTION LITERATURE REVIEW HYPOTHESIS FORMATION DATA SAMPLE SIZE CONSOLIDATION RESEARCH METHODOLOGY ANALYSIS CONCLUSIONS REFERENCES ANNEXURES PAGE 3 5 8 9 11 12 20 22 24 2 INTRODUCTION The modern age is known as the â€Å"Age of Consumers†. In today? s cut-throat competition the consumer is considered as the â€Å"KING† and the main objective of the various organizations are aimed at keeping the consumer happy and satisfied. It is very important for each and every organization to keep its consumers satisfied in order to maintain its competitiveness in the market. However when we take a closer look, we find that the consumers satisfaction level towards a company and its leading products vary on one aspect or the other based on a variety of attributes (Kotler, 2009). We will write a custom essay sample on Levi Strauss or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Fashion is a highly customer oriented industry with innovative products, where there are large number of competitors giving you a intense competition. Thus companies have to come up with something different and unique keeping the target buyer group and the time factor in mind since in the fashion industry the product life cycle is very short. LEVI’S STRAUSS CO. : Statistics show that every day millions of customers go for shopping worldwide. Hence every company wants to attract customers and increase their customer base. To ensure this companies have to keep up with the latest fads for satisfying customer requirements. For those of us that want to wear jeans with style and make a fashion statement about who we are, then finding the right pair(s) of designer jeans is crucial to our social standing. Levis offers a great range of jeans for both men and women, but variety is not the only factor influencing Levi? s customer? s purchasing behavior. There may be other factors because of which customers are more or less satisfied which influences their repurchasing decision of Levis Jeans. Invented in 1873, Levis ® jeans are the original, authentic jeans. Levis ® brand is one of the most widely recognized brands in the history of the apparel industry. From updating classics with the latest finishes, fabrications and colors, to reinventing five-pocket jeans, they are always creating new and innovative products The company has also been worldwide appreciated for the perfect fit. The specialty of Levis lies in the fact that it is very empathetic towards people. A good pair of jeans can bring dignity and honor to everyone from common man to the high profile business men, across both the sex and irrespective of income groups. The search for decent jeans is a kind quest, with moments of translucent success alternating with tragedy failures. From its foundation in 1853 and patenting of riveted pants 20 years later, Levi Strauss has become an instantly recognizable global brand. With sales in more than 100 countries, the company employs 12,500 people worldwide. Nonetheless, the last six years have seen the company struggling to come out of a slide in sales. Traditional customers have started buying 3 cheaper or more fashionable clothes. Prices have come under pressure from clothing competitors and from retailers like Tesco buying Levis product on the â€Å"grey market†. Levis response involved product diversification and brutal trimming. Thus in this age of global trading for establishing one as a leading brand in different regions it is necessary to analyze the satisfaction level of customers in that region and cater to their needs by improving on attributes on which customer is not satisfied. Jeans are the nondurable goods, Nondurable goods are goods that are used up quickly or purchased frequently, as food and apparel. Jeans are now a very popular form of casual dress around the world, and have been so for decades. However, there are certain factors that affect their sales, in addition to increase in customer specific needs in recent time there are other factors which affect sales of apparel industry (in particular jeans) like recession, inflation and shortening of fashion products life cycle.. Consumer satisfaction is a desirable outcome for apparel manufacturers and retailers, since satisfied customers can lead to increased store patronage, repeat purchase and brand loyalty. Thus we seek to ascertain the factors for which Levis jeans users are satisfied to ensure that identifying these factors will result in the company implementing policies to increase the satisfaction level of its users thereby assuring increased sales in future. 4 LITERATURE REVIEW Consumer satisfaction is a desirable outcome for apparel manufacturers and retailers, since satisfied customers can lead to increased store patronage, repeat purchase and brand loyalty (Otieno, 2000). Many people have worked on relationship between satisfaction level of customer towards a particular brand and buying behavior of customers. Satisfaction is often used as a predictor of future consumer purchases (Newman and Werbel, 1973; Kasper, 1988). Satisfied customers have a higher likelihood of repeating purchases in time (Zeithaml et al. , 1996), of recommending others to try the source of satisfaction (Reynolds and Arnold, 2000; Reynolds and Beatty, 1999), and of becoming less receptive to the competitors offerings (Fitzell, 1998). Prior research on the economic impact of defecting customers suggests that service companies can boost profits by almost 100 per cent by retaining only five per cent of their customers (Reichheld and Sasser, 1990). Retaining existing customers is generally more profitable to companies than attracting new customers (Hawkins et al. , 1995; Sirohi et al. , 1998). Therefore, it is critically important for apparel industry in particular LEVI? S to identify customers desired service levels in relation to their patronage intentions. The expectations of nondurable goods such as jeans should become strong, stable and generally consistent with a product? s perceived performance (Johnson 1991). â€Å"Levi Strauss: an international marketing investigation†: by Demetris Vrontis and Peri Vronti talks of the Levis jeans business and investigates whether LEVI? S should choose global standardization or adaptation to local market conditions. The authors propose the Levis approach which combines aspects of both solutions as the best way to secure competitive advantage and satisfy its customers ensuring retention as well as increase of its customer base. The understanding of consumer behavior appeals to a set of different areas of knowledge/factors like psychological, cultural, social, genetics, anthropological (POLSA et. al 2002). On the basis of previous studies and research paper and literary articles from PROQUEST and EBESCO a number of variables were found to be responsible for influencing consumers to opt for a branded apparel, of which a 33 variables have been taken up in our study to understand whether they have any implication on the consumers? preference for a branded apparel or not. BRAND IMAGE (PREFERENCE FOR A PARTICULAR BRAND): Customers orientations towards shopping are considered to be important predictors of patronage behaviors, such as preference for brands as well as for certain stores (Darden and Howell, 1987; Gutman and Mills, 1982; Shim and Kotsiopulous, 1992b). Research on brand personality acknowledges that consumers often â€Å"humanize† brands. Respondents typically describe a brand using human personality traits such as extroversion, agreeableness, and dependability (Aaker, 1996; Aaker and Fournier, 1995). o their decision of buying a particular brand is highly influenced by brand image of that product. 5 QUALITATIVE VARIABLES: Jeans attributes such as fabrics, comfort, fit, durability have been defined in previous research (Kaiser et. al. 2003, chowdhary 2002, Enoch 1993, young 1980) as an important factor that contributes towards customer satisfaction about the product. STATUS: Research also associate meaning of wearing jeans(Enoch? s 19 93; Delong et al. 1998), apparels are often associated with status symbol, hence people wear a particular brand which adds or suits their status in the society. For instance in the USA and Europe, jeans have connotations of casualness and rebelliousness where as in Russia, jeans denote sophistication and high status and in Spain the high price turns them into a high fashion item. COMFORT: Brand name and comfort are found to be really important (young 1980) to people though degree of importance of these factors is variable. Here we can take the example of Americans, for who comfort matters above brand name whereas for the Chinese brand name matters most (Minglue marketing shanghai co ltd. 1998). CUSTOMER SERVICE EXPERINCE: There repurchase behavior of individuals are based on the company redressed their grievances in the past. Relationships of redress and repurchase have been examined with service retailing and with durable products but not with apparel products. Though limited research has been done on consumer complaint behavior and apparel purchases, but it is found that there is need to focus on complaints redressed time, response to enquiries and reliability of customer services(LaBarbera and Mazursky,1990) since these factors determines the satisfaction of customer towards the brand. DISCOUNTS: Discount outlets sell about one-fifth of all jeans in the $12. 4 billion U. S. market, according to research firm Mintel International Group Ltd. Hence Levi Strauss opts for the discount game at Wal-Mart? s. There has also been a strong growth in shopping at discount stores.. VALUE FOR MONEY: Fornell in his study found some interesting results about customer satisfaction and price. Price expectations are highly linked to quality and value. There was a direct relationship between expectations of the product and satisfaction (Fornell 1996). Thus we can say that the customer is satisfied if he gets quality in respect of the money he pay for the product. PRICE: Higher price seems to form high status feature along with affordability both of these factors are linked to the economic and demographic factors of the company (Rao 1989). Denim, formerly an affordable classic, has been changed into a product that is highly coveted and highly priced. Consumer? s satisfaction level depends on price as a measure of quality (Lichtenstein et al. , 1993, Veek Burns, 1995). The various studies conducted by Suri Monroe, 2002; Adaval Monroe, 2002; O? Cass Lim, 2002 lead to the conclusion that consumers in general on their market experience tend to decide on an acceptable price which they confirm with the quality of product and determine if it is too high or low . 6 ADVERTISING: There is large number of studies that focus on relationship between advertising, service quality and satisfaction issue of consumers (Lewis 1993). Advertisements are responsible for the creation of a brand image and brand loyalty among customers. Moreover the use of celebrity to endorse these brands has an impact on the brand image and brand loyalty (Aakar, 1991). It is found out that advertising can yield significant marketing advantages by increasing brand preference (Rajagopal, 2007) for a particular product. FASHION TRENDS: Just as the apparel industry is constantly changing, the denim industry is also struggling to keep a pace with it. Every year new cuts, colors, styles, stitching, etc. emerge (FORNELL 1996). So to keep pace with customer satisfaction level, fashion trend is an important variable. AVAILABILITY: Consumers want every design and style, color and shade offered by the company to be available in the company? store at all times thereby increasing customer satisfaction level towards the product. RANGE OF STYLE: Teenagers do not want to wear a brand that isn? t stylish enough. So in apparels range of styles offered by a company matters a lot adding to the customer satisfaction level towards a particular brand. RANGE OF SIZE: There should be a size that fits all. As people all over the world have different tastes as well as sizes , so a customer is satisfied more if the company offers him a design in many sizes so that one size fits him well. CONVENIENCE OF WASHING: Since convenience of washing of denim is an important factor towards adding customer satisfaction for buying a particular brand therefore in July of 2003, Levi Strauss Company finally decided to follow the successful example of others and launch a new casual clothing brand called Levi Strauss Signature targeted towards U. S. consumers for whom convenience of washing of denim is an important factor. PRODUCT PROPERTIES (DESIGN, COMFORT): The products? properties, like design, comfort, individuality, have a decisive role on apparel? buying behavior, which individually may vary depending on a set of factors, mainly on sex (Fischer and Arnold, 1994). DURABILITY OF CLOTHING: European markets are happy with standard weight denim but hotter climates require lighter weight denim and even brighter colors over lighter shades of denim. So the durability of clothing (DENIM) in various regions is an important factor regarding customer satisfaction about jeans So these are the variables we look for making our final questionnaire, comprising of 33 variables from the above mentioned parameters. HYPOTHESIS FORMULATION Null hypothesis, H0: Factors identified do not affect the level of satisfaction of the customer Alternate hypothesis, H1: Factors identified affect the level of satisfaction of the customer In this project we measured the levels to which the customers are satisfied with the product, Levi’s Jeans. This yielded the reasons for their buying preferences and the current level of satisfaction. By using the results of the analysis we will able to answer the problems: Are Levi’s Jeans Users Satisfied With What The Company Is Offering? And What Measures Need To Be Adopted To Increase Their Current Level Of Satisfaction? The rationale behind conducting this project is to recognize the extent to which Levi? s brand is satisfying the customers. Moreover we can gauge where the company lags in serving its customers so as to improve on measures on how we can retain them. The variables obtained would be helpful to understand the buying behavior of the customers . For example, the customers of the particular region want classic Levi? jeans instead of the new designs and those jeans are out of stock ,the satisfaction level of customers in that region is low, the company can improve on it by having an up to date stock of classic jeans. Retaining existing customers is generally more profitable to companies than attracting new customers (Hawkins et al. , 1995; Sirohi et al. , 1998. Therefore, it is critically important for apparel industry to identify customers desired service levels in relation to their patronage intentions. This is just an instance through which we are showing that how by recognizing the variables affecting the buying behavior of customer , the company can improve and work on to have more customer retention and brand loyalty. However, the real variables can only be determined after conducting the survey. 8 DATA SAMPLE SIZE CONSOLIDATIONS DATA The study was conducted to measure the satisfaction level of Levis jeans users. Data was collected through secondary as well as primary sources. Secondary sources included articles on jeans from internet, books, and journals. Primary data was obtained by conducting the survey on the sample size of 350 respondents. Relevant variables were generated and questionnaire was developed to obtain the same. Findings based on questionnaire filled were analyzed using SPSS software. QUESTIONNAIRE DESIGN Preliminary Decisions Required information: The questionnaire was designed with the view of finding out how much each of the identified factors affects the respondents? level of satisfaction in his / her purchase of the Levi? s jeans. Target respondents: As the research aims at identifying factors affecting customer satisfaction, the survey has been conducted on 350 respondents consisting of IBS students who were the users of the brand. SAMPLE SIZE Primary data was collected for which the target populations were the students of Hyderabad. The target sample size was of 350 however the data for 330 were analyzed, 20 respondents discarded due to inconsistency SAMPLING: The non random sampling technique was chosen, i. e. , the population elements? selection to form the sample depends, partly, on the researcher? judgment as only the existing customers of Levi? s jeans were taken as respondents. There are no known conjectures that a random element in the population may have a share in the sample. MEASUREMENT SCALE Likert Scale Likert scale indicate the attitudes of the respondents by checking how strongly they agree or disagree with carefully constructed statements that range from very positive to very negative 9 towar d attitudinal object. In our questionnaire we have designed questions of variables with different levels of response each denoting a particular preference. 1. 2. 3. . 5. Strongly Agree Agree Neutral Disagree Strongly Disagree (SA) (A) (N) (D) (SD) Desired pair of Levi? s jeans is easily available? SA A N D SD If the respondent answers as SA meaning 1, this means that he strongly agrees to the fact that the he is fully satisfied with the Levi? s jeans. This scale was selected by us as it is suitable for calculation purposes like arithmetic mean, standard deviation and co-relation coefficient etc. because the research we are conducting requires us to analyze the correlation between the variables, responses and also for factor analysis. GENERALIZABILITY Generalizability refers to the amount of flexibility in interpreting the data and ability to collect data from a wide variety of respondents. Also we consider flexibility to interpret data gathered from variety of respondents. In our survey, we have considered all close ended questions. So, the respondents just have to select their choices from the given options. Close ended questions in our survey helped us to collect and analyze the data because it provides us luxury to collect data in the identical format from wide variety of respondents. 10 RESEARCH METHODOLOGY PRELIMINARY INTRODUCTION We have taken the help of reports from various websites and databases including EBSCO and ProQuest in order to identify important secondary factors which influence the decision of users of Levi? s jeans. These databases feature highly-respected, diversified mix of scholarly journals, trade publications, magazines, and newspapers enabling us to identify variables for our study and design our questionnaire. Reliability Statistics Cronbachs Alpha . 828 N of Items 21 SAMPLING Primary data was collected for which the target populations were the students of Hyderabad. The target sample size was of 350 however the data for 330 were analyzed, 20 respondents discarded due to inconsistency 11 ANALYSIS Descriptive statistics is run and the output obtained shows the mean, standard deviation and variance, the sample size and missing values, if any. Mean These are the means of the variables used in the factor analysis. Std. Deviation These are the standard deviations of the variables used in the factor analysis. Analysis N This is the number of cases used in the factor analysis. 12 FACTOR ANALYSIS IN SPSS Factor Analysis is a technique for analyzing complex, multidimensional problems. It is used to Examine the underlying patterns or relationships for a large number of variables and condense the information to a smaller set of factors or components. Purpose of factor analysis Identify a set of dimensions that are latent Combine large number of objects into distinctly different groups or factors Create an entirely new set of factors for further analysis. For example, use the orthogonal factors to remove multi-collinearity in a regression analysis. The method used for running the factor analysis is Principal Component. In our case, we will continue with the default method keep Eigen value =1. The maximum number of iteration is kept at 25. KMO Bartlett’s Test The first table that we will get in the SPSS output is the „KMO and Bartlett? s Test?. The KMO (Kaiser-Meyer-Olkin Measure of Sampling Adequacy) tests whether the partial correlations among variables are small. In other words, it tells us whether the data that we have for factor analysis is good enough. A general guideline is KMO ; or = 0. 90 : Excellent 0. 80 to 0. 0 : Very Good 0. 70 0. 80 : Good 0. 60 to 0. 70: Fair 0. 50 0. 60: Bad ; or = 0. 5: Forget Normally KMO below 0. 60 is unacceptable. The Bartletts test of sphericity tests whether the correlation matrix is an identity matrix, which would indicate that the factor model is inappropriate. The significance level of this test should be lower than 0. 05 in order to proceed further. KMO and Bartletts T est Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartletts Test of Sphericity Approx. Chi-Square df Sig. .891 2356. 530 210 . 000 13 Interpretation In this case the KMO value is 89. % which according to the standards is considered VERY GOOD also the model is significant @ 5%. Hence the data seems to be acceptable for the study. COMMUNALITIES Communality of a variable is the proportion of the variance accounted by the factors included in the solution. The method used is Principle Component Analysis and the communalities are well above 0. 5 which indicates that all these factors can be considered for the Factor Analysis. However, if we feel that the variables that have low communality are important to our study, we may keep them and run the full factor solution (i. . the rotated component matrix) and see if the results obtained are meaningful. Interpretation The communality of Affordability- Price of the product variable is 0. 733 and the number of factors in the solution is 10, it implies that these 10 factors explain 73. 3 % of the variance of that particular variable. It is always good to remove those variables that have communality less than 0. 50. In our result there is only one variable „Convenience in washing’ (0. 467) whose values is 14 very are marginally less than 0. 5 so we do not remove them from our analysis. All the other variables have reasonably high communalities. The next table is the „Total Variance Explained? table. Eigen values are the variance explained by each factor. It is called the „initial Eigen value? because the factor solution that we have obtained is not rotated and thus may not be optimum. The percentage of variance is the proportion of variance explained by that factor to the total variance. Also notice that the number of factors that are shown in the output is restricted by the condition of Eigen value greater than 1. Interpretation For example, if the Eigen value is 6. 795, then the factor corresponding to this Eigen value i. e in this case FACTOR 1 explains 6. 795variance. The percentage of variance is the proportion of variance explained by the factor to the total variance. Also the number of factors that are shown in the output is restricted by the condition of Eigen value greater than 1. In this case, the first 6 factors have the Eigen values greater than 1 and they cumulatively explain 62. 67% of the variance, therefore we take into account only the first 6 factors to continue. 5 SCREE PLOT The next plot is the Scree Plot which is graph between Component (read factor, in your case) and Eigen value. This plot is a visual inspection as to how many factors explain your data suitably. Normally, the number of factors is chosen where the scree plots flatten out. The scree plot also gives you an idea as to whether you can relax your Eigen value greater than 1 criterion. Interpretation The Scree Plo t which is graph between factor and Eigen value. This plot is a visual inspection as to how many factors explain your data suitably. Normally, the number of factors is chosen where the scree plots flatten out. In this case the plot starts to flatten at 10. So we are considering the first 10 factors only. It also gives an idea as to whether we can relax the Eigen value greater than 1 criterion. Here we are not relaxing this condition. Rotated Component Matrix Like the „Component matrix? , the „Rotated Component Matrix? specifies the correlation between Rotated factors and the variables. Normally, a rotated factor loading of more than 0. 5 is considered to be high. The variable that has at least a factor loading of 0. is said to have highly loaded on to that factor. All variables that have high loadings are loaded on to that factor. 16 Rotated Component Matrix Component 1 Affordability- Price of the product Desired pair of levis jeans is easily available? Durability of clothing (Levis Denim) Durability of Stitching of Levis Jeans Comfortability of Levis jeans Variety/ Designs offered by Levis Strauss Ra nge of shades offered by the brand Range of fitting styles offered Range of sizes Convenience in washing Discounts/schemes offered by Levi Strauss Value for money w. r. product Levi’s responsiveness towards the latest fashion trends Reliability of customer services offered at Levis stores Response to enquiries regarding the porduct from the company Complaints redressed time Advertisements promotions of the product Location of Levis Stores Proximity of Levis Stores Layout of Levis stores Salesmens Promptness in service . 818 . 802 . 728 . 494 . 649 . 657 . 939 . 530 . 725 . 654 . 705 . 767 . 743 . 632 2 3 4 5 . 791 . 464 6 .631 .636 .767 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. A Rotation converged in 8 iterations. 17 Interpretation Absolute values less than 0. 45 have been suppressed. This was done to make the Rotated Component matrix look less cluttered as all factor loadings below 0. 45 would be suppressed but not deleted. From the final rotated Component matrix, all the variables have been loaded into the factors according to the value of their Loadings. And it can be observed that related variables have been collated under one factor. For example, variables like durability, affordability, comfortability, value for money latest styles have been collated under factor1 named QUALITY. Likewise all the other related variables are also combined into one factor whose names have been mentioned. Component Transformation Matrix The final table that is to be looked into is the „Component Transformation Matrix? is the correlation between your rotated and un-rotated factors. Model Summary a Predictors: (Constant), REGR factor score 6 for analysis 4, REGR factor score 5 for analysis 4, REGR factor score 4 for analysis 4, REGR factor score 3 for analysis 4, REGR factor score 2 for analysis 4, REGR factor score 1 for analysis 4 b Dependent Variable: How satisfied are you with the product? Interpretation 18 In regression, the validity of the factors is tested by comparing them with the dependant variable. For this purpose, the significance values at 95% significance level are tested. For a particular factor to be significant, the significance should be lesser than 0. 05. The adjusted R2 (coefficient of determination) shows the percentage of variance in the dependant variable that is explained by the independent variable. In this, the adjusted R2 value is 0. 418 which is good. Since the P value is less than 0. 05(0. 03 in this case) the model holds well. We can see from the normal PP Plot that the regression line is a fairly good estimation of the expected values. The F statistic value is high this shows that the explained variance is 5. 945 times the unexplained variance which again reiterates the validity of the regression model. Interpretation The model is significant at 5% significance level. 19 CONCLUSION The sample is a representative of the target population. The conclusion we can draw from the above statistical research is that the major factors are: Quality of Levi? s Jeans Levi? Store Designs Offered Customer Service Experience Price Discounts offered The above factors are the major indicators of the satisfaction level of the customers. We reject the null hypothesis that Factors identified do not affect the level of satisfaction of the customer as the model is significant at 5%. Hence we conclude that the identified factors significantly affect the level of satisfaction. 20 The variables the factors summary is given below : FACTORS Factor 1 OLD VARIABLES Durability of clothing, durability of stitching, comfort, range of sizes, NEW FACTORS Quality of Levi’s Jeans Levi? s responsiveness towards the latest fashion trends Factor 2 Factor 3 Location, Proximity, Layout Designs, range of fitting style, range of size offered by Levi? s Levi’s Store Designs Offered Factor 4 Reliability of customer services, Response to enquiries regarding the product from the company, Complaints redressed time, Salesmens Promptness in service Affordability, Desired pair of Levi? s jeans is easily available, Value for money Discounts/ Schemes offered Customer Service Experience Factor 5 Price Factor 6 Discounts offered Thus we seek to ascertain the factors for which Levis jeans users are satisfied to ensure that identifying these factors will result in the company implementing policies to increase the satisfaction level of its users thereby assuring increased sales in future. 21 REFERENCES Aaker, D. 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(2004), Levi Strauss: an international marketing investigation, Journal of Fashion Marketing and Management, ISSN: 1361-2026, Vol. 8 No. 4, pp. 38998) â€Å"Why Levi? still looks faded. † 2002. http://www. businessweek. com (19 Sept. 2004) Walton, Scott. â€Å"Low-cost, high-fashion. † 2004. http://www. azcentral. com (20 Sept. 2004). Youn, Soo. â€Å"Levi? s jeans going discount. † 2004. http://www. nydailynews. com (19 Sept. 2004). â€Å"Levi Strauss Company. † 2 004. http://www. levistrauss. com (20 Sept. 2004) http://www. ucimc. org (18 Sept. 2004) http://www. responsibleshopper. org (18 Sept. 2004) 23 ANNEXURES QUESTIONNAIRE Consumer Satisfaction level of Levi’s Jeans users * Required Do you possess a pair of Levi? Jeans? * Yes No How many pairs of Levi? s jeans do you have? * 1 2 3 More than 3 Gender Male Female Age How often do you purchase a pair of jeans? Occasionally Once every three months Once every 6 months Once a year In which of the following family income group? * Below 200, 000 200, 000 400, 000 400, 000 – 600, 000 above 600, 000 Your decision of buying towards THE BRAND Levi? s, depends upon: 24 Brand linked status Authenticity of products Publicity Versatility Are You satisfied with the product, Levi’s jeans on the following parameters. Tick appropriate satisfaction level. Affordability- Price of the product * 1 Strongly Agree 2 3 4 5 Strongly Disagree Desired pair of Levi? s jeans is easily available? * 1 Strongly Agree Durability of clothing (Levi? s Denim) * 1 Strongle Agree Durability of Stitching of Levi? s Jeans * 1 Strongly Agree Comfortability of Levi? s jeans * 1 Strongly Agree Variety/ Designs offered by Levis Strauss * 1 Strongly Agree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 25 Range of shades offered by the brand * 1 Strongly Agree Range of fitting styles offered * 1 Strongly Agree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree Range of sizes * 1 Strongly Agree Convenience in washing * 1 Strongly Agree Discounts/schemes offered by Levi Strauss * 1 Strongly Agree Value for money w. r. t product * 1 Strongly Agree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree Levi? s responsiveness towards the latest fashion trends 1 Strongly Agree 2 3 4 5 Strongly Disagree Reliability of customer services offered at Levi? s stores * 26 Strongly Agree 2 3 4 5 Strongly Disagree Response to enquiries regarding the porduct from the company * 1 Strongly Agree Complaints redressed time * 1 Strongly Agree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree Advertisements promotions of the product * 1 Strongly Agree Location of Levi? s Stores * 1 Strongly Agree Proximity of Levi? s Stores * 1 Strongly Agree Layout of Levi? s stores * 1 Strongly Agree Salesmens Promptness in service * 1 Strongly Agree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 2 3 4 5 Strongly Disagree 7 How satisfied are you with the product? 1 Satisfied 2 3 4 5 Dissatisfied CATEGORICAL DATA: PAIR OF JEANS 1: 1pair 2: 2pairs 3:3 pairs 4: More than 3 pairs GENDER 0: Male 1: Female AGE 1: 18-22yrs 2: 23-26yrs 3: 27above FREQUENCY OF BUYING JEANS 1: occasionally 2: once in three months 3: once in six months 4: once a year INCOME 1: less than 200,000 2: 200,000-400,000 3: 400,000-600,000 4. 600,000 above DECISION IS RELATED TO: 1: Brand Linked status 2: Authenticity of products 3: Publicity 4: Versatality 28 29