ETHNIC DIFFERENCES AND THEIR IMPACT ON FASHION BRAND PERCEPTION: THE CASE OF ZARA

ETHNIC DIFFERENCES AND THEIR IMPACT ON FASHION BRAND
PERCEPTION: THE CASE OF ZARA
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Abstract
This research clearly describes the importance of ethnicity in generating brand
preferences among customers. This section demonstrates a brief background,
significance and aims and objectives of the research. The writing demonstrates why
ethnicity is an important factor and how creates influence on brand preference,
considering customers race, age, and ethnicity. According to these factors, an
organisation must develop its products and promotional strategy to attract clients.
The researcher has also reviewed information provided by another researcher’s
literature reviews. This section demonstrates a brief introduction to the ethnic
differences among customers. Moreover, brief concept of brand perception is
provided and demonstrates how brand perception is generated among customers,
discussing factors that create the brand perception and different models of brand
perception which shows the step-by-step developing process.
For the research, the researcher is presenting primary and secondary data. For
collecting data, the researcher has used a deductive approach, descriptive design,
and positivism philosophy. The researchers have collected primary data by
conducting a survey strategy. The survey has been conducted by questioning a
sample of Zara customers so that their brand perception related data can be
identified. During conducting the research, the researcher has faced time-related
issues. Moreover, the researcher has followed the data collection act during
conducting the research.
The fourth chapter describes the collection of primary data. In this section, the
researcher is discussing the issues that are faced by the Zara regarding perception
of their bran by customers.
Last section includes summary of findings and recommendations for increasing
customer satisfaction and effectiveness of the company. One of the suggestions is
innovative method of market research and identifying the needs of customers and
applying of the findings on marketing strategy of the brand.
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Table of Contents
Chapter 1: Introduction.............................................................................................5
1.1 Background of the study:.................................................................................5
1.2 Background of the company:..............................................................................5
1.3 Aims and objectives of the research:..................................................................5
1.4 Research problems:............................................................................................6
1.5 Significance of the research:..............................................................................6
1.6 Structure of the dissertation:...............................................................................7
Chapter 2: A literature review.......................................................................................8
2.1 Introduction:........................................................................................................8
2.2 Ethnic differences among customers:.................................................................8
2.3 Brand perception:................................................................................................9
2.4 Factors influence on customer perception:.......................................................10
2.5 Impact of brand perception:..............................................................................12
2.6Keller brand equity model:.................................................................................12
2.7 Stimulus-response model:................................................................................14
2.8 Impact of the ethnic differences in brand perception:.......................................15
2.9 Conceptual framework:.....................................................................................16
2.10 Gaps in the research:......................................................................................17
Chapter 3: Research methodology.............................................................................18
3.1 Introduction:......................................................................................................18
3.2 Research approach:..........................................................................................18
3.3 Research philosophy:.......................................................................................18
3.4 Research design:..............................................................................................18
3.5 Data collection:..................................................................................................18
3.6 Sampling:..........................................................................................................19
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3.7 Data analysis:....................................................................................................20
3.8 Research limitation:..........................................................................................20
3.9 Ethical consideration:........................................................................................20
Chapter 4: Results/ findings and Analysis..................................................................21
4.1 Introduction:......................................................................................................21
4.2 Data findings:....................................................................................................21
4.3 Data analysis:....................................................................................................32
Chapter 5: Conclusion and recommendation.............................................................36
5.1 Conclusion:.......................................................................................................36
5.2 Recommendation:.............................................................................................37
Reference list:.............................................................................................................39
Appendix 1: Questionnaire.........................................................................................45
Appendix 2: Ethnic group in the UK...........................................................................48
Appendix 3: Insensitive design of Zara......................................................................49
Appendix 4: Comparative position of Zara.................................................................50
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Chapter 1: Introduction
1.1 Introduction to this chapter:
1.2 Background of the study:
Ethnicity refers to the category of people who are united in a group based on
similarities such as common language, society, ancestry, social or national
treatments and culture (Manthiou 2018). In the multicultural community, ethnicity is
one of the significant concepts that the marketers must consider during developing a
promotional strategy (Lu ,2015). Every ethnic group has its taste, lifestyle,
preferences, attitude, perception, and behaviour. Therefore, customers from the
different ethnic group always have different perception on a specific brand.
Customers generally develops their perception according to their culture and
ethnicity (Lu et al. 2015). Therefore, the organisation must consider ethnic
differences to develop various types of products and different promotional strategy.
This research is intended to improve brand perception of Zara by concentrating on
different ethnic group’s needs.
1.2 Background of the company:
Zara is one of the most popular Spain based fast fashion organisation that sell
different products such as shoes, accessories, perfumes, and beauty products (Zara,
2020). Presently, Zara is operating their business on worldwide basis and they have
2270 stores in all over the world (Zara ,2020). The parental company of Zara is
Inditex, which is the largest apparel retailer in all over the world (Zara, 2020).
According to the calculations of 2017, Zara has been showing is creating and
presenting on the market at least 20 clothing collections in every year. The present
revenue of the organisation is €18.021 million according to the calculation of 2018.
(Zara,2020)
The Justification of the study is that it is really important for the fashion brand like
Zara to know about the ethnicity as it has the impact on their business. It has been
analysed that it is really important to explore more about the cultures represented.
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Today societies are enthusiastic to wear a selection of different cultural fashions. It is
fashion that embraces and represents a culture and allows one to celebrate her
heritage and origin. So it is really necessary for Zara to show ethnicity so that they
can show cultural traits to the society. The fashion is being influenced by the cultural
changes such as modernization so it is really important for Zara to make use of
cultural ethnicity in their products. This can assist them in increasing their brand
value as well as their brand reputation. It will also support the company in growing
and achieving their goals and objectives.
1.3 Aims and objectives of the research:
The aim of this research is identifying the impact of ethnic differences on brand
perception of Zara. In order to achieve the above aim this study will follow the below
objectives -
 To identify the influence of the differences in the ethnicity on the brand
perception of Zara
 To critically understand the drivers of ethnic differences that influences the
brand perception
 To identify the challenges that are faced by Zara during managing the
differences in the ethnicity in their organisation that creates a negative brand
perception among customers
 To recommend a strategy which will be effective in enhancing the brand
perception of Zara.
 1.4 Research problems:
Business entities have faced difficult situation to draw the attention of customers due
the cultural differences. For increasing the efficiencies of the services, the
organisation must consider the culture or social issues so that it can be resolved with
efficiencies. Zara is the world’s largest retailer that has faced numerous complaints
due to their insensitive designs over recent years. (Populardemocracy, 2015). Over
the past few years, Zara was subject of many critics and became a negative hero in
some newspapers and journals headlines for offering on the market of racist or
insensitive designs (Assari ,. 2016).. This insensitive design mainly includes
embroidered swastika on the bag or a necklace with red lips and black face, which
was negatively accepted by part of their customers. During 2007, customers
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complained that Zara was selling an embroidered bag that includes Nazi swastika
(religion icon of the Eurasian culture).
After receiving number of complaints from the customers, the organisation declined
their bags from the market (Populardemocracy, 2015). Several examples clearly
demonstrate the fact that Zara do not have significant level of focus towards various
ethnic groups. This is because, there are number of examples that demonstrates
that Zara presented wrong concepts couple of times in 2013, Zara sold a necklace
that includes dark face with the bright red lipstick (Populardemocracy, 2015). This
necklace was demonstrating the racist makeup that was used during nineteenth
centuries in minstrel shows. In the year of 2014, Zara has developed controversies
by developing a t-shirt that displayed the word “white is the new black”. This t-shirt
shows type of a racist product made by hint of Zara which is a sign that the company
is losing focus on ethnic differences. Therefore, it can be said that Zara has faced
the controversies and criticism because of their unawareness and ineffective
marketing.
1.5 Significance of the research:
When a multinational organisation operates their brand in a different countries then
they are facing the task to satisfy multiplesatisfy multiple people who are belonging
from a different race, age, culture and ethnicity. Each country is presented people
belonging from various cultures, background, economic and ethnic group, which
sometimes creates difficulties for the organisation in recognising the differences
among people and in developing of a better promotional strategy (Lu et al. 2015).
This research mainly explores the ethnic differences among people and their
relationship with the brand perception. This research shows how ethnic differences
creates different beliefs, values, and expectations along with various customer
behaviours. (Assari ,. 2016). Therefore, it can be suggested that the marketers must
understand the differences in the feelings among the customers so that a better
promotional strategy can be created to draw the attention of every customer. The
research identifies various challenges that Zara is facing to attract and satisfy their
customers
1.6 Structure of the dissertation:
Dissertation contains five chapters. It includes the following:
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 Introduction section demonstrates a brief contextsa brief context, significance,
and objectives. It also consists of the aim and background of the study. It has
also provided the details related to justification of the research. It has also
provided the details about the research questions.
 Literature section describes the review of other author’s work. After that,
process of research conduction has been described. It has also provided the
base related to the theoretical framework.
 After this the researchers have discussed about the research methods which
are been used to analyse the end results. This section has provided the
details about how the data has been gathered.
 Then, the researchers have facilitated data gathering, analysis and
representation. At last, conclusion of overall research and recommendations
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