COMPLETION REPORT
What Drives Malaysian Consumers' Affinity With Japanese Retail Brands? A Field Study onUniqlo and Daiso.
Dr. Jasmine Ai Leen Yeap (+1)
Postdoctoral Fellow
School of Management, Universiti Sains Malaysia
This study set out to uncover the elements that constitute great branding among two fast-rising, popular Japaneseretailers in Malaysia - Uniqlo and Daiso. Data collected from 2 focus groups and a survey of 618 Uniqlo customers
and 662 Daiso customers revealed several interesting and useful insights. Firstly, this study’s survey instrument,based on the Service Brand Verdict Model (SBVM) was proven to be a valid, reliable tool that can be used byresearchers who wish to conduct retail brand evaluations. The SBVM was successfully validated and shown to be
applicable across different retail formats such as apparel specialty retailers (e.g. Uniqlo) and also discount stores(e.g. Daiso). The addition of attachment (in place of the tried-and-true variable trust) as one of the brandoutcomes in the SBVM has enhanced the model overall, enabling it to capture the emotional bond that arises asone becomes satisfied with a brand. What results is a parsimonious and robust model that can better explain theprogression towards brand loyalty.
Secondly, it was found that branding elements which contribute to consumers’ affinity towards Japanese retailers
are mostly similar between Uniqlo and Daiso despite some notable differences. For both Uniqlo and Daiso,consumers’ feelings towards the brand, servicescape (store environment), uncontrolled communications (word-ofmouth and publicity) and merchandise are crucial components affecting consumers’ satisfaction towards the brand.
However, for an image-related brand like Uniqlo, consumers’ self-image congruence with the brand (resemblance
between their self-concept and the brand’s image and personality) also matters as a determinant of satisfaction
whereas for Daiso which sells functional household items, value-for-money was found to contribute significantly
to satisfaction. The role of satisfaction here is paramount because it is largely responsible for how the consumer
regards the brand (attitude) as well as whether the consumer develops an affinity (attachment) to the brand.
Consequently, all three outcomes of Uniqlo and Daiso’s branding attributes namely consumers’ satisfaction,
attitude and attachment led to their loyalty towards the brands.
Thirdly, the importance-performance matrix analysis (IPMA) revealed one essential branding practice which thetwo retailers can improve on. In particular, uncontrolled communications. The IPMA showed this branding aspect
as highly important in shaping consumers’ satisfaction towards the brand. Hence, both brands, especially Daiso
could benefit greatly by generating consistent media interest and ensuring that they keep customers satisfied inhopes that they will share their life-affirming brand testimonials with others.
On the whole, the findings of this study reaffirmed an important lesson in branding – that successful brands need toappeal to both the consumers’ head (mind; utilitarian needs) and the heart (feelings; emotional needs). Both Uniqloand Daiso have undeniably high quality merchandise sold in ambient stores supported by customer service, butwhat eventually won the affinity and loyalty of Malaysian consumers towards both brands was how the brands
made them feel happy, pleased and impressed. In building their brand loyalty among consumers, aspiring retailers
must constantly remember to combine credible product performance with strong imagery to evoke favourable
customer responses and reactions towards their brands.

Publication of the Results of Research Project:
Verbal Presentation (Date, Venue, Name of Conference, Title of Presentation, Presenter, etc.)

Thesis (Name of Journal and its Date, Title and Author of Thesis, etc.)

Book (Publisher and Date of the Book, Title and Author of the Book, etc.)
Two manuscripts to be sent to Scopus-ranked journals with open access options. Targeted publication time ofarticles would be by fourth quarter of 2017 (though this could still be subjected to the journal’s publishingschedule).