Managing Customers’ Loyalty in Fashion Branded: Experience from Indonesia

Abstract

The growth of the clothing industry in the Indonesian market and the global market is very rapid. The Uniqlo brand is classified as a fast fashion brand that is quite successful in managing product quality and image well. Analysis of the research can be seen that there are several challenges for Uniqlo in terms of service quality, and the value of customer perceptions of customer loyalty. This research was conducted to analyse the problems at Uniqlo Indonesia. The econometrics model in this study is the effect of service quality and customer perceived value on customer loyalty in fashion store namely Uniqlo. This study uses primary data cross section as many as 234 respondents. The analytical method in this study is Robust Least Squared Model. The results of the analysis of this study conclude that an increase in service quality and customer perceived value can significantly increase on customer loyalty. Every unit scale increase in service quality will increase the customer loyalty by 0.54-unit Likert scale, then every unit Likert scale increase in customer perceived value will increase customer loyalty by 0.29-unit Likert scale. This study suggests that the policy of service quality and customer perceived value is crucial to increase customer loyalty.